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HomeMy WebLinkAbout12/09/2004CITY OF APPLE VALLEY Dakota County, Minnesota Dec ember 9 , 200 4 Minutes of the regular meeting of the City Council of Apple Valley, Dakota County, Minnesota, held Dec ember 9 th, 200 4 , 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 Mueller, City Attorney Dougherty , City Engineer Gordon , Finance Director Ballenger, Assistant Fi nance Director Broughten , Assistant to the City Administrator Grawe, Public Works Director Heuer, Parks and Recreation Director Johnson, Police Chief Johnson, Community Development Director Kelley, Police Captain Lohse, City Planner Lovelace, Human Resourc es Manager Strauss, and Fire Chief Wassmund. 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 Erickso n, seconded by Bergman , approving the agenda for tonight’s meeting as amended . Ayes - 5 - Nays - 0. AUDIENCE - RECOGNITION FOR COMMITMENT TO HIGHER EDUCATION Mayor Hamann - Roland asked if anyone was present to address the Council, at this time, on any item not on this meeting’s agenda. Dr. Ron Thomas, President of Dakota County Technical College; Dr. Cheryl Frank, President of Inver Hills Community College; and Dr. John Pyle, of St. Mary’s University; were present to thank the Council for its support and spoke about the success of the higher education partnership now operating in the old City Hall building. They presented a plaque to the City recognizing its commitment to higher education. CONSENT AGENDA MOTION: of Goodwin , seconded by Bergman , moving consideration of 2005 street light rates and Vall eywood Golf Course and Ice Arena fees to the regular agenda and approving all remaining items on the consent agenda. Ayes - 5 - Nays - 0. CONSENT AGENDA ITEMS MOTION: of Goodwin , seconded by Bergman , approving the minutes of the regular meeting of Novem ber 2 3rd , 200 4 , as written. Ayes - 5 - Nays - 0. CITY OF APPLE VALLEY Dakota County, Minnesota December 9, 2004 Page 2 Resolution No. 2004 - 252 MOTION: of Goodwin , seconded by Bergman , a dopting accepting, with thanks, the donation of $1,562.50 from the American Heart Association toward the purchase of an Automated External Defibrillator (AED) for use by the Fire Department . Ayes - 5 - Nays - 0. MOTION: of Goodwin , seconded by Bergman , approving a Revised D.A.R.E. and Police Liaison Services Agreement with Independent School District No. 196, for 2004 - 2005, as attached to t he Police Chief’s memo dated December 1 , 2004, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0. MOTION: of Goodwin , seconded by Bergman , appointing Kern, DeWenter, Viere, Ltd., as auditors for the year 2004 , at a cost of $3 6,000.00, a nd authorizing the Mayor and City Clerk to execute the Letter of Understanding, as attached to the Finance Director’s memo dated December 6 , 200 4 . Ayes - 5 - Nays - 0. MOTION: of Goodwin , seconded by Bergma n, a pproving renewal and issuance of 3.2 Percent Malt Liquor Licenses for 200 5 , as attached to the City Clerk ’s memo dated Dec ember 6 , 200 4 . Ayes - 5 - Nays - 0. Resolution No. 2004 - 253 MOTION: of Goodwin, seconded by Bergman, adopting restating, amending, and adding fees and charges for ce rtain City services effective January 1, 2005. Ayes - 5 - Nays - 0. MOTION: of Goodwin , seconded by Bergman , approving revised City Attorney’s fees for 200 5 legal services as attached to the Assistant to the City Administrator’s memo dated December 9 , 20 0 4 . Ayes - 5 - Nays - 0. Resolution No. 200 4 - 2 54 MOTION: of Goodwin , seconded by Bergman , adopting establishing revised uniform land values for calculating cash in lieu of land contributions for public land dedications resulting from subdivisions, at $ 1 5 0 ,000 per acre for single family residential, $1 75 ,000 per acre for multiple family residential, $ 10 0,000 per acre for industrial, and $2 6 0,000 per acre for commercial uses. Ayes - 5 - Nays - 0. MOTION: of Goodwin , seconded by Bergman , a pproving a setbac k variance to allow for construction of a future house to within 20 feet of the front lot line on Lot 2 , Block 2 , Palomino Hills (403 Cimarron Road), as recommended by the Planning Commission . Ayes - 5 - Nays - 0. MOTION: of Goodwin , seconded by Bergman , approving reduction of subdivision financial guarantees for New Horizon Childcare Center , from $ 31,042 .00 to 0; and New Horizon Childcare Center NRMP , from $ 5 , 437 . 5 0 to 0. Ayes - 5 - Nays - 0. CITY OF APPLE VALLEY Dakota County, Minnesota December 9, 2004 Page 3 MOTION: of Goodwin , seconded by Bergman , approving Change O rder No. 1 to the contract with Frontier Construction Co. for Project 02 - 196, Legacy of Apple Valley North Utility and Street Improvements, in the amount of an additional $49,271.60 . Ayes - 5 - Nays - 0. MOTION: of Goodwin , seconded by Bergman , a ccepting installation of Playground Equipment at Newell Park as final and authorizing final payment on the contract with Webber Recreation al Design, Inc., and Miracle Recreation Equipment Co. , in the amount of $35,000.00 . Ayes - 5 - Nays - 0. MOTION: of Goodwin , seconded by Bergman , approving hiring Kathy Jo Price for the position of Payroll Technician as listed in the Personnel Report dated December 9 , 200 4 . Ayes - 5 - Nays - 0. MOTION: of Goodwin , seconded by Bergman , a pproving hiring Scott F. Swanson for the position of Liquor Operations Manager as listed in the Personnel Report dated December 9 , 200 4 . Ayes - 5 - Nays - 0. MOTION: of Goodwin , seconded by Bergman , approving hiring the seasonal employees as listed in the Personnel Report dated Dec ember 9 , 200 4 . Ayes - 5 - Nays - 0. END OF CONSENT AGENDA STREET LIGHTING SYSTEM RATES FOR 2005 Councilmember Bergman said surveys done at different times have shown that there are a number of street lights that are not operating. He also expressed concern about the length of time it takes for Dakota Electric to repair some of the lights. Greg Miller, CEO of Dakota Electric Association, was present and said the practice has been that when citizens call and report street lights not working, they are repaired. Thi s year 545 lights have been repaired. The average response time is one to two days and lights are generally repaired within three days. In commercial areas, there is a rotation schedule where lights are replaced every three years. There was a problem wi th a particular light on County Road 42 that should not have taken as long to repair as it did. Councilmember Goodwin asked if other cities have a procedure on surveying and reporting lights and whether the City should be involved in some type of repair p arts inventory to help with the process. Mr. Miller said most cities rely on citizen reporting or have their snow plow drivers report lights. It was noted that the City newsletter contains an article asking citizens to report outages and details on where to call. Mayor Hamann - Roland noted the street light rates increased by 25 percent for 2004 and 2005 and asked whether there could be more incremental increases in the future. Mr. Miller commented o n the CITY OF APPLE VALLEY Dakota County, Minnesota December 9, 2004 Page 4 Public Utility Commission rate approval process wh ich involves a study and is generally approved as a one - step increase. Street light charges are set at a fixed rate, per structure, per year. Resolution No. 2004 - 255 MOTION: of Goodwin, seconded by Bergman, adopting setting street lighting system rates e ffective January 1, 2005, setting monthly rates for single family at $1.64, multiple at $1.24 per unit, commercial in ring route at $8.15 per acre, and other commercial at $4.33 per acre. Ayes - 5 - Nays - 0. C OBBLESTONE LAKE PLANNED DEVELOPMENT AMENDMEN T M r. Lovelace reviewed his memo, dated Dec ember 6 , 200 4 , concerning proposed amendments to the performance standards for Z one 2 of Planned Development No. 703, Cobblestone Lake. Zone 2 includes Egret Lodge townhomes approved November 9, 2004, and was or iginally intended for multi - story condominium buildings. The site was determined to be a better location for townhomes, but amendments to some of the design standards are required to bring them into conformance under the planned development . Ordinance No. 7 63 MOTION: of G oodwin , seconded by Grendahl , passing a mending A rticle A28 of A ppendix F of the City Code regarding permitted uses and minimum standards and requirements in Zone 2 of Planned Development No. 703 (Cobblestone Lake) ; as recommended by the P lanning Commission . Ayes - 5 - Nays - 0. PROPERTY TAX LEVY & 200 5 CITY BUDGET Mr. Lawell described the budget process and meetings held to consider setting the property tax levy and 200 5 City budget including a public hearing on December 6 , 200 4 . Mr. B allenger presented the background information and details of the budget and tax levy as covered at the public hearing. Councilmember Grendahl said the City’s tax levy has increased 85% since 2000 (49% without state aid statistics) while population has gro wn nine percent. In 2000, cash flow reserves were at 37% and 69% is projected for 2004. Growth in 2003 and 20 04 should be able to pay for the taxes and there should be no other increases. Capital project funds are already included or covered within spec ific funds such as the water and sewer fund. She suggested the State Auditor’s 2002 special study on municipal enterprise activities be reviewed. It looked at such things as fund transfers from utilities to subsidize other funds. She would like to use t he $1,100,000 projected as Market Value Homestead Credit (MVHC) in the budget and not increase property taxes. Councilmember Goodwin referred to his November 23, 2004, memo and said he agrees cash flow reserve s should be dis c ussed and he would like to see a specific policy approved. He supports the proposed budget. He commented on the loss of state aid and noted that a sample home with a CITY OF APPLE VALLEY Dakota County, Minnesota December 9, 2004 Page 5 market value increase of 10% without the loss of state aids would not see an increase in the City’s share of property taxes. Councilmember Bergman commented on fund balance discussion and said he disagrees that the State should tell cities to reduce fund balances when it is facing a deficit because of its actions. He asked what will happen with the balance of trunk char ges when the City is fully developed. He also asked where the road escrow fund deficit is shown. Mr. Ballenger said trunk r ates are set so that the balance should be zero when development is completed. The road escrow, or major street fund, is contained within the capital project fund s total and is shown as a summary only. Resolution No. 200 4 - 2 56 MOTION: of Erickso n, seconded by Goodwin , adopting approving setting the City tax levy collectible in 200 5 at $1 7,929,158 and approving 200 5 budgets with total revenue of $ 40,308,271 and expenditures of $3 6,476,539 . Mayor Hamann - Roland said the 2005 budget includes establishing a Future Capital Project Fund. The City’s auditor reviewed the proposed reserve policy and supports it as reasonable. The City has re ceived two bond rating increases in the past year which shows the City is doing a good job of dealing with financial issues . Councilmember Grendahl asked for clarification on whether depreciation costs are included in the budget. Mr. Ballenger said they are. Councilmember Goodwin noted that they are as far as past costs, but replacement costs are not covered . Vote was taken on the motion. Ayes - 3 - Nays - 2 (Bergman and Grendahl). Councilmember Bergman said he agrees with staffing included in the bu dget, but voted in opposition because he wanted to see negative sports arena and road escrow fund balances taken care of tonight . GENERAL FUND RESERVES POLICY & FUND ALLOCATION Mr. Lawell reviewed his memo dated December 6, 2004, concerning general fund reserves policy and fund allocation. Councilmember Goodwin’s November 23rd memo laid out five steps toward accomplishing this and three are proposed tonight. The reserve policy suggests maintaining a five - year average of accounts payable and encumbrances , compensated absences, and six months of operating expenditures in the general fund . It allows for fluctuation and provides for an annual review of the adequacy of reserve balances. In approving the 2005 budget, a Future Capital Project Fund was establi shed with initial revenue of $1,112,271 from MVHC. Under the reserve policy, a bout $2,900,000 is available in the 2005 budget for transfer to this fund from the general fund . Mr. Lawell reviewed potential internal fund transfers that have been previously discussed. The y are the $650,622 deficit in the Sports Arena Fund, resulting from facility improvements, and the CITY OF APPLE VALLEY Dakota County, Minnesota December 9, 2004 Page 6 $2,511,918 deficit in the Road Escrow Fund. After the Council considers the policy, it can then consider fund allocations . Councilmember Go odwin’s memo also suggested a timetable of March 2005 for prioritizing capital projects and considering a policy on the Water and Sewer Fund Balance. Councilmember Grendahl said in 2000 the City did not have six months of cash flow available and survived on 37%. She believes the City has other funds available for cash flow. MOTION: of Goodwin, seconded by Hamann - Roland, adopting the City of Apple Valley Reserves Policy for financial funds as attached to the City Administrator’s memo dated December 6, 200 4 . Ayes - 4 - Nays - 1 (Grendahl). MOTION: of Goodwin, seconded by Erickson, approving the transfer of $2,908,758 from the General Fund to the Future Capital Project Fund in accordance with the Reserves Policy for financial funds. Councilmember Grendahl said she prefers not to increase the tax levy when the City has these funds available. Councilmember Erickson said he has always acknowledged that fund balances were going to be used toward capital projects but there was never a specific fund for them. Vote was taken on the motion. Ayes - 4 - Nays - 1 (Grendahl). Councilmember Bergman asked whether fund deficits are going to be addressed. Councilmember Erickson said he would consider them, but would prefer an opportunity to discuss them before actin g. MOTION: of Goodwin, seconded by Hamann - Roland, approving the transfer of $650,622 from the Future Capital Project Fund to the Sports Arena Fund . Ayes - 4 - Nays - 1 (Grendahl). MOTION: of Goodwin, seconded by Hamann - Roland, approving the transfer of $150,000 from the Future Capital Project Fund to the Road Escrow Fund. Councilmember Erickson asked whether there is an urgency to act on this item. Mr. Ballenger said the City has indicated to Moody’s rating agency that the deficit would be paid off ove r time and they were satisfied with that answer. Each year approximately $50,000 is budgeted toward that as well as any excess State Aid Street funds . Vote was taken on the motion. Ayes - 4 - Nays - 1 (Grendahl). ORDINANCE AMEND ING FEES CONTAINED IN CITY CODE CITY OF APPLE VALLEY Dakota County, Minnesota December 9, 2004 Page 7 The City Clerk reviewed proposed amendments to fee schedules contained in the City Code as described in her memo dated December 6 200 4 . Fee adjustments are proposed for building, heating, and plumbing permits; cemetery services; public improvem ents; peddler/solicitor and tree work licenses; planning and development fees; and increas ing the mandated Metropolitan Council Environmental Services service availability charge from $1, 350 .00 to $1, 4 50 .00. MOTION: of Goodwin , seconded by Erickso n, waivi ng the procedure for a second reading Ordinance No. 7 6 4 and passing amending the Fee Schedule Appendix of Title III of the City Code by adjusting certain fees and charges effective January 1, 200 5 . Ayes - 5 - Nays - 0. VALLEYWOOD GOLF COURSE & ICE ARENA RAT ES Mr. Johnson reviewed the recommendation on 2005 rates for Valleywood Golf Course and the Ice Arenas as attached to his memo dated December 6, 2004. The golf course will be offering new 20 and 10 round cards for use on weekdays. Ice rental will rem ain unchanged at $165.00 per hour for prime time and $110.00 for non - prime time. Councilmember Bergman asked if the golf course fee structure allows for funding to make improvements to the course. Mr. Johnson said the fees cover operating costs , but do n ot cover capital improvement costs such as a clubhouse. MOTION: of Bergman, seconded by Goodwin, setting the 200 5 fee schedules for Valleywood Golf Course and Apple Valley Sports Arena and Hayes Park Arena ice rental, as attached to the Parks and Recreati on Director’s memo dated December 6 , 200 4 . Ayes - 5 - Nays - 0. MVTA PARK AND RIDE PARKING Councilmember Grendahl said the Minnesota Valley Transit Authority (MVTA) will lose the use of Watson’s parking lot for overflow park and ride parking January 1st . It was hoped this space could be used until the new transit hub on Pilot Knob Road is completed in another year. Part of the parking shortage results from the increasing number of Lakeville residents using the service. Mr. Kelley said, due to Federal funding of the MVTA’s parking lot, it cannot impose restrictions, but some type of permitted on - street parking is being considered. Councilmember Goodwin said this is an issue Lakeville needs to address and it should be brought to their attention. MOTION : of G oodwin , seconded by Hamann - Roland, directing that a letter to Lakeville be drafted, for the Mayor’s signature, concerning transit options and funding for their residents and the Mayor and City Administrator meet with Lakeville officials to discuss th e issue . Ayes - 5 - Nays - 0. CITY OF APPLE VALLEY Dakota County, Minnesota December 9, 2004 Page 8 COMMUNICATIONS & CALENDAR The Council received a memo dated Dec ember 6 , 200 4 , with a calendar listing upcoming events. CLAIMS AND BILLS MOTION: of Bergman, seconded by Goodwin, to pay the claims and bills, check register s dated November 30, 2004, in the amount of $9,091,526.83; December 1, 2004, in the amount of $18,626,876.63; and Dec em ber 8 , 200 4 , in the amount of $ 19,611,911.73 . Ayes - 5 - Nays - 0. MOTION: of G oodwin , seconded by Grendahl , to adjourn. Ayes - 5 - Nay s - 0. The meeting was adjourned at 11 : 1 8 o’clock p.m.