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HomeMy WebLinkAbout12/10/2009 CITY OF APPLE VALLEY Dakota County, Minnesota December 10, 2009 Minutes of the regular meeting of the City Council of Apple Valley, Dakota County, Minnesota, held December 10, 2009, at 8:00 o'clock p.m., at Apple Valley Municipal Center. PRESENT: Mayor Hamann- Roland; Councilmembers Bergman, Goodwin, Grendahl, and LaComb. ABSENT: None. City staff members present were: City Administrator Lawell, City Clerk Gackstetter, City Attorney Dougherty, City Engineer Manson, Public Works Director Blomstrom, Assistant Finance Director Broughten, Assistant City Administrator Grawe, Finance Director Hedberg, Parks and Recreation Director Johnson, Police Chief Johnson, Community Development Director Nordquist, Police Captain Rechtzigel, Human Resources Manager Strauss, Liquor Operations Director Swanson, and Fire Chief Thompson. 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 Bergman, seconded by Grendahl, approving the agenda for tonight's meeting as written. 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. Mr. Ed Kearney, Chamber of Commerce President, thanked Mayor Hamann- Roland, Councilmember Bergman, Tom Lawell, Bruce Nordquist and Maggie Dykes for helping with the joint survey of businesses along Cedar Avenue. He further thanked the City for sharing the results with Dakota County. Mayor Hamann -Roland thanked the businesses for taking the time to meet during this busy time of year. She added that Apple Valley is better and stronger because of the partnership between the City and the Chamber. Mr. Kearney stated business in Apple Valley was actually better than expected. He added that the most recent job report from Dakota County indicates Apple Valley has a 6.5 percent unemployment rate which is better than most of the state and most of the country. Mayor Hamann -Roland said one of the things she heard during the surveys was that there is a strong loyal customer base and strong sense of community in Apple Valley. CITY OF APPLE VALLEY Dakota County, Minnesota December 10, 2009 Page 2 Mr. Kearney noted that it sends a good message to the public and the businesses when they see the Chamber and the City work together. Councilmember Bergman asked that the survey be shared with all the members of the City Council. 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 requested moving item 4.N to the regular agenda. MOTION: of LaComb, seconded by Bergman, moving consideration of item 4.N - Approve 2010 Labor Agreement with AFSCME Council 5, Local No. 479, to the regular agenda, and approving all remaining items on the consent agenda. Ayes - 5 - Nays -0. CONSENT AGENDA ITEMS MOTION: of LaComb, seconded by Bergman, approving the minutes of the regular meeting of November 24, 2009, as written. Ayes - 4 - Nays - 0 - Abstain - 1 (LaComb). MOTION: of LaComb, seconded by Bergman, setting the 2010 City Council meeting schedule, in accordance with the adopted policy on the second and fourth Thursdays of each month unless the following Friday is a holiday, as listed in the City Clerk's memo dated December 7, 2009. Ayes - 5 - Nays - 0. MOTION: of LaComb, seconded by Bergman, adopting Resolution No. 2009 -182 approving issuance of a lawful gambling exempt permit, by the State Gambling Control Board, to Post 1776 American Legion Riders, for use on February 7, 2010, and waiving any waiting period for State approval. Ayes - 5 - Nays - 0. MOTION: of LaComb, seconded by Bergman, adopting Resolution No. 2009 -183 approving issuance of a lawful gambling exempt permit, by the State Gambling Control Board, to Post 1776 American Legion Riders, for use on May 15, 2010, and waiving any waiting period for State approval. Ayes - 5 - Nays - 0. MOTION: of LaComb, seconded by Bergman, adopting Resolution No. 2009 -184 approving issuance of a lawful gambling exempt permit, by the State Gambling Control Board, to Post 1776 American Legion Riders, for use on August 21, 2010, and waiving any waiting period for State approval. Ayes - 5 - Nays - 0. MOTION: of LaComb, seconded by Bergman, adopting Resolution No. 2009 -185 approving issuance of a lawful gambling exempt permit, by the State Gambling Control CITY OF APPLE VALLEY Dakota County, Minnesota December 10, 2009 Page 3 Board, to Post 1776 American Legion Riders, for use on October 16, 2010, and waiving any waiting period for State approval. Ayes - 5 - Nays - 0. MOTION: of LaComb, seconded by Bergman, adopting Resolution No. 2009 -186 approving issuance of a lawful gambling exempt permit, by the State Gambling Control Board, to Post 1776 American Legion Riders, for use on November 27, 2010, and waiving any waiting period for State approval. Ayes - 5 - Nays - 0. MOTION: of LaComb, seconded by Bergman, approving renewal and issuance of On -Sale and Off -Sale 3.2 Percent Malt Liquor Licenses for 2010, as attached to the City Clerk's memo dated December 7, 2009. Ayes - 5 - Nays - 0. MOTION: of LaComb, seconded by Bergman, adopting Resolution No. 2009 -187 approving submitting the application for Fiscal Year 2010 Dakota County Community Development Block Grant (CDBG) funding of $137,340.00 for the Housing Rehabilitation Revolving Loan Program as attached to the City Planner's memo dated December 7, 2009, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0. MOTION: of LaComb, seconded by Bergman, adopting Resolution No. 2009 -188 approving plans and specifications for Energy Efficiency and Conservation Block Grant (EECBG) Lighting Retrofits Project; and authorizing advertising for receipt of bids, at 10:00 a.m., on January 19, 2010. Ayes - 5 - Nays - 0. MOTION: of LaComb, seconded by Bergman, adopting Resolution No. 2009 -189 approving plans and specifications for Energy Efficiency and Conservation Block Grant (EECBG) HVAC and Building Automation Improvements Project; and authorizing advertising for receipt of bids, at 10:00 a.m., on January 19, 2010. Ayes - 5 - Nays - 0. MOTION: of LaComb, seconded by Bergman, approving the Cost Participation Agreement for Liquor Store No. 2 with James and Phyllis Shelton, and PDQ Food Stores, Inc., and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0. MOTION: of LaComb, seconded by Bergman, approving the Water Quality Improvement Cost Share Program Agreement with Sharon Cartwright for biofiltration garden, in the amount of 314.84, and authorizing the Mayor and City Clerk to sign the same. Ayes -5- Nays -0. MOTION: of LaComb, seconded by Bergman, approving the Water Quality Improvement Cost Share Program Agreement with Sonia and Brent Schulz for shoreline buffer, in the amount of 469.11, and authorizing the Mayor and City Clerk to sign the same. Ayes -5- Nays -0. CITY OF APPLE VALLEY Dakota County, Minnesota December 10, 2009 Page 4 MOTION: of LaComb, seconded by Bergman, approving the Agreement for Sentence to Service (STS) Program Work Crews for 2010 with Dakota County, in the amount of $24,245.52, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0. MOTION: of LaComb, seconded by Bergman, approving the Agreement for Security and Fire Monitoring System for Redwood Community Center, with General Security Services Corporation (GSSC), in the amount of $4,875.63, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0. MOTION: of LaComb, seconded by Bergman, adopting Resolution No. 2009 -190 awarding the contract for AV Project 2009 -131, Deep Wells Nos. 5, 10, and 14, and Water Treatment Plant Low Zone Pump 3 Maintenance, to Keys Well Drilling Company, the lowest responsible bidder, in the amount of $92,210.00. Ayes - 5 - Nays - 0. MOTION: of LaComb, seconded by Bergman, approving First Amendment of Agreement Regarding Design and Installation of Municipal Improvements for Apple Valley East Family Addition and Waiver of Objection to Special Assessments, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0. MOTION: of LaComb, seconded by Bergman, accepting AV Project 2009 -108, Falcon Ridge Middle School Rain Garden Improvements, as complete and authorizing final payment on the contract with Friedges Contracting, in the amount of $104,471.15. Ayes -5- Nays -0. MOTION: of LaComb, seconded by Bergman, accepting Traffic Control Signal System Painting as complete and authorizing final payment on the agreement with Hiller Brothers Construction, Inc., in the amount of $12,000.00. Ayes - 5 - Nays - 0. MOTION: of LaComb, seconded by Bergman, accepting AV Project 2009 -101, 2009 Street Maintenance Project as complete and authorizing final payment on the contract with McNamara Contracting, Inc., in the amount of $179,590.85. Ayes - 5 - Nays - 0. MOTION: of LaComb, seconded by Bergman, accepting 2009 Concrete Removal and Replacement Services as complete and authorizing final payment on the agreement with Ron Kassa Construction, Inc., in the amount of $7,474.70. Ayes - 5 - Nays - 0. MOTION: of LaComb, seconded by Bergman, adopting Resolution No. 2009 -191 amending City's Health Reimbursement Arrangement, and authorizing the Mayor and City Council to execute the necessary documents. Ayes - 5 - Nays - 0. CITY OF APPLE VALLEY Dakota County, Minnesota December 10, 2009 Page 5 MOTION: of LaComb, seconded by Bergman, approving hiring the seasonal employees listed in the Personnel Report dated December 10, 2009. Ayes - 4 - Nays - 0 - Abstain - 1 (Hamann- Roland). MOTION: of LaComb, seconded by Bergman, setting a special informal City Council meeting, at 4:30 p.m., on December 14, 2009, at the Municipal Center, for the purpose of discussing Cedar Avenue Bus Rapid Transitway project. Ayes - 5 - Nays - 0. END OF CONSENT AGENDA AFSCME LABOR AGREEMENT Councilmember Grendahl thanked AFSCME Council 5, Local No. 479, employees for agreeing to a zero percent increase in 2010 and recognizing the situation the City is in. Mayor Hamann- Roland said the Council very much appreciates the AFSCME employees for voting to partner with the City and agreeing to no general wage increase. Councilmember Goodwin said he has never seen this before. He appreciates that the union understands this difficult situation and wants to be part of this effort. MOTION: of Grendahl, seconded by Hamann- Roland, approving the 2010 Labor Agreement with AFSCME Council 5, Local No. 479, maintenance employees, as attached to the Human Resources Manager's memo dated December 7, 2009, and authorizing execution of the necessary documents. Ayes - 5 - Nays - 0. Mayor Hamann- Roland recognized the non -union employees who are also receiving a zero percent increase in 2010. PROPERTY TAX LEVY & 2010 CITY BUDGET Mr. Lawell reviewed the budget development process and the previous dates the Council met regarding the 2010 budget. He noted that during the goal setting session in March, the Council gave very clear direction to staff to hold the line on the City's share of the property tax bill for the typical Apple Valley home. All properties in the City received mailed notice of the truth and taxation meeting. The notice included proposed property taxes for 2010 based on preliminary budgets and tax levies approved in September. Staff is recommending the budget be adopted this evening; however, if the Council needs additional time to consider it, adoption can be postponed to December 22, 2009. The adopted amount must be certified to Dakota County by December 28, 2009. Mr. Lawell then reviewed the budget assumptions and budget highlights. Mr. Hedberg stated he received several calls regarding property valuation. He reviewed the timeline line for setting property valuations and noted it is a two -year process. He added there is nothing the City can do at this meeting relative to property valuation. Approximately 34.7% of the tax bill residents pay goes to the City. The remainder goes to the school district, Dakota County, or other CITY OF APPLE VALLEY Dakota County, Minnesota December 10, 2009 Page 6 taxing jurisdictions. He explained how a median - valued home's tax dollars are divided in 2009 and 2010 between those various taxing jurisdictions. There are three fund types included in the budget: the General Fund, Special Revenue Funds, and Enterprise Funds. Before transfers, the 2010 proposed Budget Revenues are $47,206,192 and Budget Expenses are $47,570,250 in addition to $2,665,000 in capital outlay. The 2010 proposed General Fund Budget is $25,741,243 compared to $26,221,590 in 2009. The proposed property tax levy for 2010 is $22,839,554, which is an increase of .94% from 2009. He then presented a graphic depicting State Aid funds the City has historically received. The City does not anticipate receiving any funds from the State in 2010. General Fund Expenditures are divided into four categories: Personnel Services, Commodities /Other, Street Improvement Program, and Capital Outlay. Mr. Hedberg described 2009 and 2010 comparisons by category. The General Fund total is 1.8% less than in 2009. He then explained how the levy is divided amongst the various funds. Mr. Hedberg presented a comparison of taxable market values by property classification. The median valued residential home experienced a 7.6% decline in taxable value. Approximately 92% of the residential properties received a 7% or greater decrease in their property value. Those same properties should receive a decrease of approximately $5.00 or more in the City's portion of their property taxes. He also presented tax calculations on a median valued home of $217,600 with a 7.6% decrease in property value. The Tax Capacity Rate is 39.848. He then reviewed comparisons in Dakota County on median value homes, preliminary levy changes, tax extension rates, and city taxes. Mr. Hedberg stated he received 10 phone calls regarding the Truth in Taxation notice and one email message which was copied and delivered to the Council earlier this evening and has been entered into the official record. Two of the calls indicated the budget should be cut because of the economy. The remaining calls had to do with valuation, property ownership, or other matters. Mr. Hedberg described various property tax refund programs available to residents. He noted the ongoing challenges include maintaining a "structurally balanced budget ", the impacts of the slowing housing market and economy, and State fiscal issues. Mayor Hamann- Roland opened the public comment portion of the Truth in Taxation meeting at 8:41 p.m. She asked for questions or comments from the public. There were none and the hearing was declared closed at 8:42 p.m. Councilmember Goodwin noted the City is charging less for property taxes in 2010 than it did in 2009. The General Fund Expenditures for 2010 are 1.8% less than in 2009. He further noted 91.7% percent of the residents will receive a reduction in the City portion of their property taxes. Councilmember LaComb stated the budget process takes a full year to complete. She pointed out the goal set by all five members of the Council at the goal setting session in March has been met. Although it was a difficult process, the services citizens typically see will continue, yet their taxes are not going to go up. She believes it shows "stability ". CITY OF APPLE VALLEY Dakota County, Minnesota December 10, 2009 Page 7 Councilmember Bergman commended staff for meeting the goal set at the goal setting session. At the same time, there were additional things different members of the Council would have liked to have seen added or deleted. He believes the budget takes a conservative approach. There may be other things that will need to be looked at later, but he is satisfied with the approach taken today. Councilmember Grendahl said she feels the budget is going in the right direction, but there is still excess. She commented about the funds allocated to the Contingency Fund. She would prefer rolling the unspent portion of the money over from year to year rather than taxing for it again. She asked if there has been any savings with the implementation of the Dakota Communications Center (DCC). She further questioned where the ALF Ambulance refund went. Mr. Hedberg said the ALF Ambulance refund amounted to just over $300,000 and was placed in the Capital Improvements Project Fund. Councilmember Grendahl asked about franchise fee expenditures and if the City was spending the amount received. Mr. Hedberg responded that roughly one -half of the franchise fees received in the Operating Budget come from water and sewer utilities and are used to support General Fund operations. The other franchise fees are from cable and are used to support Cable TV. Councilmember Grendahl asked where the Dakota Electric franchise fees go. Mr. Hedberg answered that those fees do not go into the Operating Budget but are used to pay back the bonds issued to make the improvements at the substations. Councilmember Grendahl asked if the City spends the amount received each year. Mr. Hedberg said yes. The money received will continue to make debt payments through 2010. Councilmember Grendahl suggested the City look at how much it is subsidizing some of the recreational programs. She noted the park bond referendum referenced improvements at Redwood pool, but she does not think the City has to spend all the money approved. She stated the revenues from Redwood pool have been declining. She asked for final numbers for 2009. Mr. Hedberg believed the data Mr. Johnson presented two nights ago were the final numbers. Mayor Hamann- Roland added that 2009 was an unseasonably cool summer, which may explain why the numbers are particularly low this year. Councilmember Grendahl stated she believes the projected revenues may also be askew. Mayor Hamann- Roland stated the City may be competing against itself with the Aquatic Center and Kelley Park. CITY OF APPLE VALLEY Dakota County, Minnesota December 10, 2009 Page 8 Councilmember Grendahl is concerned Apple Valley is starting to provide services for everyone south of the river. She is unsure if it is Apple Valley citizens using Redwood Pool and other facilities. She noted there are also a number of non - residents using the senior center. Based on the costs and attendance, she estimates the City is subsidizing approximately $500 for each person using the senior center and $5 for each person using Redwood Pool. The City needs to recognize the amount it is subsidizing for these programs and whether it should be subsidizing costs for people who do not live in Apple Valley. She also asked to see projections on the Liquor Fund. Mayor Hamann- Roland noted the Liquor Fund has transferred approximately $3.5 million to the General Fund over the last 11 years. Councilmember Goodwin stated he looks at the Contingency Fund differently. First, the budget was already cut significantly. In September, the Council set its preliminary levy $1,165,000 below the levy limit. That was a gamble. Second, the Council is hoping for a zero percent wage increase for employees, but contracts have not yet been finalized with all of the unions. The City has only gone below the levy limit twice in the 14 times levy limits were imposed. If the City had gone to the levy limit, he would have supported Councilmember Grendahl's notion to take the money out of the Contingency Fund. He then commented about Redwood Pool. Although many things were discussed, including rebuilding it, what was decided upon prior to the park bond referendum was to make the pool viable for another 8 to 10 years. If usage continues to decline, the pool may go away after that period. It is also one of the reasons he did not want to see a lot of money spent to refurbish it. Councilmember Goodwin stated he has had very few calls regarding the proposed levy and budget. Everyone is in this together. Each member of the Council owns a home and also pays property taxes. Many members of the Council have suffered, as has the general public and economy, with reduced wages or job loss. He finds it unbelievable the City is asking for fewer dollars next year than it asked for in 2009. He is doubtful that it can continue, but is proud of staff for putting this budget together for 2010. Councilmember Bergman said he would have preferred the refund from ALF Ambulance be used for public safety instead of going into the Capital Improvements Projects Fund. He noted that one of the main considerations for the DCC joint venture was the acquisition of the 800 MHz radios. Because that equipment was so costly, the cities came together. That goal was accomplished. There have been issues with the DCC. As matters come up, they are working them out. He asked staff what the financial impact has been. Mayor Hamann- Roland clarified the glitch in the Dakota Communications Center system has since been worked out. Mr. Lawell explained the DCC was formed to consolidate the five dispatch centers in an effort to reduce costs and improve services. Apple Valley had the oldest equipment console of the five dispatch centers and needed to upgrade to an 800 MHz radio system. Although the information CITY OF APPLE VALLEY Dakota County, Minnesota December 10, 2009 Page 9 relative to the DCC financial impact is not available tonight, staff will provide it to Council following the meeting. He pointed out an added benefit to belonging to a consolidated dispatch center, besides having a more reliable system, is the CodeRed notification system. Councilmember Grendahl questioned whether the wages for the eight dispatchers were ever subtracted from the Police Department budget. Mr. Hedberg stated he does not have that history. However, the wages and benefits amounts listed in the 2010 budget are tied directly to current employees on the roster. Mr. Lawell reminded the Council that the conversion to the DCC took place in phases. In January 2007, which was one year prior to the dispatchers leaving this building, they became employees of the Dakota Communications Center. The last time the dispatchers' salaries were reflected in the City's budget was 2006. Councilmember Grendahl asked about the amounts budgeted for various utilities such as electric, natural gas, and propane /water /sewer. When comparing actual usage for the first half of the year to the amount budgeted for the whole year, she thinks the amounts seem inflated. Mr. Hedberg said the area being referred to summarizes all the expenses in the General Fund. He stated a fair amount of time and effort was spent on estimating each program area. He recommended being cautious when merely doubling mid -year expenses. For example, electricity consumption is highest in the summer. The first half of the year numbers only includes June, which is just the beginning of summer. Councilmember Grendahl asked why the amount for propane was so high. Mr. Hedberg said he believes the amount listed is for propane, water, and sewer. Councilmember Grendahl said she believes the City can do a little bit tighter budgeting. Councilmember Goodwin clarified that what Councilmember Grendahl is referring to as a savings account is the Capital Improvements Projects Fund. People may disagree on the principle of that type of fund. However, he believes the City should put some money aside each year for capital improvement projects. In the next 10 to 15 years there are some major capital improvements projects that are going to be needed. Apple Valley is a relatively new community. When comparing per capita expenditures for public streets, as provided by the State Auditor, Apple Valley looks very good. The reason is city streets generally last 30 — 40 years. Roads are expensive to rebuild. Older cities are spending a lot more money per capita fixing roads. The City does not have to save money for these anticipated expenses, but he believes a future Council will wish that this Council planned for these improvements. Mayor Hamann- Roland indicated many other communities assess for road construction and the property owner may get a bill for $10,000 for the improvements. Down the road, Apple Valley may CITY OF APPLE VALLEY Dakota County, Minnesota December 10, 2009 Page 10 have to do something similar. Hopefully, because the City is planning for these types of expenditures, the impact on residence will be less. Councilmember Grendahl said in 2007, $4.4 million was taken out of the Contingency Fund and in 2008, $838,000 was taken out. She asked where that money came from. Mr. Hedberg explained that at the end of each year the amount not needed in accordance with the fund balance policy is transferred out of the fund. Councilmember Grendahl said it is nice to say the City is planning for 15 years from now, but if a resident is unemployed and they need to replace their roof, they do not have money to pay for those extra expenses right now. Councilmember Goodwin said it is a value judgment. Mayor Hamann -Roland added that when our citizens are hurting financially, the last thing they want is also to have their services and quality of life taken away. Residents see there are challenges across the state and throughout the country. They also have concerns regarding jobs and reduced health benefits. Although the budget may not be perfect, it is going in the right direction and it is a good budget in which 92% of the residential property owners will receive a decrease in the City portion of their property taxes. She added that stability is clearly important. Councilmember Goodwin commented about individual preferences relative to saving for future expenditures. Even though the City is saving money for capital improvements, it is unrealistic to believe there will be enough money to take care of everything needed in the future. Councilmember Bergman suggested the Council discuss how much money the City should hold in reserve at an informal meeting or at the goal setting session. There are some capital improvements projects that he believes are essential and will need to be addressed within the near future. He supports the use of a reserve balance. Mayor Hamann- Roland stated adequate reserves are necessary in these uncertain times. The State will not be giving the City Local Government Aid (LGA) and there is also a possibility of Market Value Homestead (MVH) being eliminated completely. Reserves are another tool which give the City some sense of stability. MOTION: of Goodwin, seconded by LaComb, passing Ordinance No. 871 amending Section 30.05 of the City Code by eliminating the scheduled salary increase for the Mayor and City Council Members effective January 2, 2010. Councilmember Grendahl said she supports the ordinance amendment but clarified that the scheduled increase for the entire City Council was only about $1,000.00. Councilmember Goodwin said the amendment is symbolic. CITY OF APPLE VALLEY Dakota County, Minnesota December 10, 2009 Page 11 Mayor Hamann- Roland added that the Council is setting a standard. Vote was taken on the motion. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by LaComb, adopting Resolution No. 2009 -192 approving setting the City tax levy collectible in 2010 at $22,839,554 and approving 2010 budgets with total revenue of $48,322,839 and expenditures of $51,343,163. Ayes - 4 - Nays - 1 (Grendahl). Mr. Hedberg presented the proposed water, sanitary sewer, and storm water rates for 2010 and explained the reasoning behind the proposed changes. Staff is recommending increases in each and noted the need for increasing the rates is very evident. Staff is further recommending that over the next six to nine months the Finance and Public Works Departments take a long -term look at the utility rates, work on a detailed utility rate study, and analyze the capital investment and cost allocation. The overall combined rates for water, sanitary sewer, and storm water represent approximately a 3.1 percent increase from 2009 for the average residential utility customer. Residents with low water consumption will experience an increase of approximately 2.5 percent. There is no proposed change on the street light utility rate. Councilmember Goodwin noted the increase for storm water is not small. He noted Apple Valley has more storm water now than it had in the past and occasionally areas of town get flooded. It is important to manage the storm water so these areas do not flood. Mayor Hamann- Roland said it is also important to look at water usage and the City's capacity to supply the water. Mr. Hedberg reminded the public that the City has a conservation rate structure in place. The cost for water escalates by thresholds based on the amount of water used. MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2009 -193 setting the sewer and water rates and related procedures, effective January 15, 2010. Ayes - 5 - Nays -0. MOTION: of LaComb, seconded by Goodwin, adopting Resolution No. 2009 -194 setting the storm water drainage rates, effective January 15, 2010. Ayes - 5 - Nays - 0. MOTION: of Grendahl, seconded by LaComb, adopting Resolution No. 2009 -195 approving the transfer of $440,000.00 from the Liquor Fund to the General Fund for 2009. Ayes -5- Nays -0. PHOENIX RESIDENCE CARE FACILITIES REVENUE NOTE Ms. Jennifer Boulton, of Briggs and Morgan, reviewed the request for host approval to the issuance of a Care Facilities Revenue Note, Series 2009, by the City of West St. Paul for The Phoenix Residence, Inc. The Phoenix Residence, Inc., wants to use tax- exempt conduit revenue CITY OF APPLE VALLEY Dakota County, Minnesota December 10, 2009 Page 12 bonds to refinance their existing taxable debt on a number of its facilities in the east metro area, including two facilities in Apple Valley. Federal and state law requires facilities refinanced with tax - exempt bonds to receive public approval following a public hearing in the jurisdiction the facility is located. She said there is no new construction or improvements; it is merely the refinancing of existing facilities. She noted neither Apple Valley nor West St. Paul will be responsible or have any liability for the bonds. Mayor Hamann - Roland called the public hearing to order at 9:41 p.m. to consider giving host approval to the issuance of a Care Facilities Revenue Note by the City of West St. Paul for The Phoenix Residence, Inc., Phoenix Residence Project. The Mayor asked for questions or comments from the Council and the audience. There were none and the hearing was declared closed at 9:42 p.m. MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2009 -196 giving host approval to the issuance of a Care Facilities Revenue Note, Series 2009, by the City of West St. Paul for The Phoenix Residence, Inc., Phoenix Residence Project. Ayes -5- Nays -0. ORDINANCE AMENDING CHAPTER 111 REGARDING ALCOHOLIC BEVERAGES Ms. Gackstetter reviewed the proposed ordinance amending Chapter 111 of the City Code entitled Alcoholic Beverages amending Section 111.31 regulating hours of operation for on -sale liquor, wine, and 3.2 percent malt liquor licensees and Section 111.53 regulating hours of operation for consumption and display licensees. The ordinance currently restricts the sale of 3.2 percent malt liquor for licensees holding only an On -Sale 3.2 Percent Malt Liquor License before 12:00 noon on Sunday. It also restricts the consumption and display of intoxicating liquor before 12:00 noon on Sunday. The revised ordinance would allow the sale of wine; 3.2 percent malt liquor; intoxicating liquor, provided the licensee holds a Special License for Sunday Liquor Sales; and the consumption and display of intoxicating liquor, at 10:00 a.m. on Sunday. The amended time is consistent with state statute. The Police Department does not have any objections to the proposed amendment. Staff recommends waiving the second reading. MOTION: of Grendahl, seconded by Goodwin, waiving the procedure for a second reading and passing Ordinance No. 872 amending Chapter 111 of the City Code regulating Alcoholic Beverages. Ayes - 5 - Nays - 0. ORDINANCE AMENDING FEES CONTAINED IN CITY CODE The City Clerk reviewed proposed amendments to the Fee Schedule Appendix of Title III of the City Code. Fee adjustments are proposed for City fees and materials, consultant services, building inspections and permits, licenses and permits, and utility fees and zoning. The fees would be effective January 1, 2010. She noted the proposed rates more accurately reflect the City's costs. Some changes were recommended as a result of the fee study and some were increased according to the annual Engineering News Record Construction Cost Index. Staff recommends waiving the second reading. CITY OF APPLE VALLEY Dakota County, Minnesota December 10, 2009 Page 13 Councilmember Goodwin said some of the fees which are being amended are a result of the fee study. He asked when the fee study was completed. Ms. Gackstetter said she believes the final report was received at the end of 2008. Councilmember Grendahl questioned if the fee associated with building a deck is new. Mr. Blomstrom clarified there is a fee for building a deck, but it is calculated differently. Currently, it is calculated based on valuation. Staff is recommending a flat rate. It may result in a slight increase in the amount received; however, the proposed rate was recommended as a result of the fee study. Councilmember Grendahl asked if the City has received any comments regarding the proposed changes. Councilmember Goodwin suggested the Council consider tabling the item until the next meeting so that residents will have an opportunity to provide feedback. He asked the newspapers for help in informing the residents about the proposed fee schedule. MOTION: of Goodwin, seconded by Bergman, tabling consideration of the ordinance amending the Fee Schedule until December 22, 2009. Ayes - 5 - Nays - 0. Councilmember Grendahl questioned whether the City has any liability if someone fell through a deck the City recently inspected. Mr. Dougherty said no. Councilmember Grendahl said she has a problem with charging for a permit when the City, or any government entity, does not have any liability. She asked what the permit is for if it is not to ensure good quality. Mr. Dougherty explained the inspector is looking to see whether or not the industry standard, which the City has adopted, has been met. It is not a guarantee. The City is not looking out for an individual, but is looking out for the community standard. PLANNING COMMISSION VACANCY Mayor Hamann- Roland invited individuals seated in the audience who submitted applications for the Planning Commission vacancy to state their names. Mr. David Monn, Mr. Paul Scanlan, and Mr. Bill Woodson introduced themselves. Ms. Gackstetter reviewed her memo dated December 7, 2009, regarding the Planning Commission vacancy. CITY OF APPLE VALLEY Dakota County, Minnesota December 10, 2009 Page 14 The Mayor called for nominations for the vacancy. Councilmember Grendahl nominated Tom Falkenberg, Dave Labno, David Monn, Gregory Rogers, Paul Scanlan, Brenton Schulz, Natan Vogman, and Bill Woodson. There being no further nominations, the Mayor declared the nominations closed. MOTION: of Grendahl, seconded by Goodwin, accepting the seven nominations for Planning Commission. Ayes - 5 - Nays - 0. MOTION: of Grendahl, seconded by Goodwin, amending the previously adopted appointment process to reduce the number of candidates by selecting five of the names appearing on the ballot. Ayes - 5 - Nays - 0. The City Clerk prepared ballots and the City Attorney distributed them to the Council who were asked to each select five names from the eight nominees. After selections were made, they were tallied, and the City Attorney announced that six names remained. MOTION: of Grendahl, seconded by Goodwin, amending the previously adopted appointment process to reduce the number of candidates by selecting four of the names appearing on the ballot. Ayes - 5 - Nays - 0. The City Clerk prepared ballots and the City Attorney distributed them to the Council who were asked to each select four names. After selections were made, they were tallied, and the City Attorney announced that four names remained. MOTION: of Grendahl, seconded by Goodwin, amending the previously adopted appointment process to reduce the number of candidates by selecting three of the names appearing on the ballot. Ayes - 5 - Nays - 0. The City Clerk prepared ballots and the City Attorney distributed them to the Council who were asked to each select three names. After selections were made, they were tallied, and the City Attorney announced that the three names remained. MOTION: of Grendahl, seconded by Goodwin, amending the previously adopted appointment process to reduce the number of candidates by selecting two of the names appearing on the ballot. Ayes - 5 - Nays - 0. The City Clerk prepared ballots and the City Attorney distributed them to the Council who were asked to each select two names. After selections were made, they were tallied, and the City Attorney announced that two names remained. The City Clerk prepared ballots and the City Attorney distributed them to the Council who were asked to each select one name. After selections were made, they were tallied, and the City Attorney announced that Paul Scanlan received the majority of votes. CITY OF APPLE VALLEY Dakota County, Minnesota December 10, 2009 Page 15 MOTION: of LaComb, seconded by Goodwin, adopting Resolution No. 2009 -197 appointing Paul Scanlan to the Planning Commission for a term expiring March 1, 2010. Ayes - 5 - Nays - 0. Mayor Hamann- Roland thanked all the applicants who applied and expressed interest in the position. CALENDAR OF UPCOMING EVENTS MOTION: of LaComb, seconded by Grendahl, approving the calendar of upcoming events as included in the City Clerk's memo dated December 7, 2009, 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 24, 2009, in the amount of $646,104.78, December 2, 2009, in the amount of $6,358,451.16, and December 9, 2009, in the amount of $1,138,882.69. Ayes -5- Nays -0. MOTION: of Grendahl, seconded by Goodwin, to adjourn. Ayes - 5 - Nays - 0. The meeting was adjourned at 10:11 o'clock p.m. Respectfully Submitted, {ya a di2ot 0 Pamela J. Gtetter, City Clerk Approved by the Apple Valley City Council on IZ-- 22"09