HomeMy WebLinkAbout12/20/2011 CITY OF APPLE VALLEY
Dakota County, Minnesota
December 20, 2011
Minutes of the regular meeting of the City Council of Apple Valley, Dakota County, Minnesota,
held December 20, 2011, at 8:00 o'clock p.m., at Apple Valley Municipal Center.
PRESENT: Mayor Hamann-Roland; Councilmembers Bergman, Goodwin, Grendahl, and
Hooppaw.
ABSENT: None.
City staff inembers present were: City Administrator Lawell, City Clerk Gackstetter, City
Attorney Hills, Public Works Director Blomstrom, Assistant City Administrator Grawe, Acting
Human Resources Manager Haas, Finance Director Hedberg, Parks and Recreation Director
Johnson, City Engineer Manson, Police Captain Marben, Community Development Director
Nordquist, Acting Police Chief Rechtzigel, 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 Goodwin, seconded by Bergman, removing item 4.G — Direct Urban Affairs
Advisory Committee to Study Alternative Energy Sources for Residential
Properties from the agenda; moving item 4.I — Approve Mediated Settlement
Agreement with Bostrom Sheet Metal Works, Inc., Modern Piping, Inc., EDI
Architecture, Inc., and HVAC Reps, Inc., to the regular agenda; and approving the
agenda for tonight's meeting, as amended. Ayes - 5- Nays - 0.
MEDIATED SETTLEMENT AGREEMENT
Councilmember Grendahl asked for an explanation of the revised handouts relating to the
Mediated Settlement Agreement.
Mr. Johnson said the fluid cooler in the Hayes Community and Senior Center has been defective
from the day it was installed. Over the last two years, the City attempted to resolve the issue
with the four vendors involved. An agreement was reached during mediation. The attorneys for
the various parties continue to tweak the agreement. The revised memo includes a motion
approving the agreement subject to final revisions approved by the City Administrator and City
Attorney.
MOTION: of Hooppaw, seconded by Bergman, approving the Mediated Settlement
Agreement with Bostrom Sheet Metal Works, Inc., Modern Piping, Inc., EDI
Architecture, Inc., and HVAC Reps, Inc., as attached to the Parks arid Recreation
Director's memo dated December 16, 2011, subject to final revisions and changes
as approved by the City Administrator and City Attorney, and authorizing the
Mayor and City Clerk to sign the same. Ayes - 5- Nays - 0.
CITY OF APPLE VALLEY
Dakota County, Minnesota
December 20, 2011
Page 2
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. No one requested to speak.
CONSENT AGENDA
Mayor Hamann-Roland asked if the Council or anyone in the audience wished to pull any item
from the consent agenda. There were no requests.
MOTION: of Bergman, seconded by Goodwin, approving all remaining items on the consent
agenda. Ayes - 5- Nays - 0.
CONSENT AGENDA ITEMS
MOTION: of Bergman, seconded by Goodwin, approving the minutes of the regular meeting
of December 8, 2011, as written. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, approving issuance of an off-site gambling
permit, by the State Gambling Control Board, to Apple Valley Hockey
Association, for use on January 12, 2012, at the Apple Valley Senior High
School, 14450 Hayes Road, and waiving any waiting period for State approval.
Ayes - 5 - Nays - 0.
MOTION: of Bergman, seconded by Goodwin, approving issuance of a lawful gambling
permit to conduct excluded bingo, by the State Gambling Control Board, to
Eastview Lighting Touchdown Club, for use on February 26, 2012, at Rascal's —
Apple Valley Bar & Grille, 7721 147th Street W., and waiving any waiting period
for State approval. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, approving issuance of a new 2012 Fuel
Dispensing Facility Permit to Dana Marathon, LLC, d/b/a Dana Marathon, 14050
Pilot Knob Road, as described in the City Clerk's memo dated December 16,
2011. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, approving issuance of a new 2012 Off-Sale
3.2 Percent Malt Liquor License to Dana Marathon, LLC, d/b/a Dana Marathon,
14050 Pilot Knob Road, as described in the City Clerk's memo dated December
16, 2011. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, approving issuance of a new 2012-2013
License to Sell Tobacco and Tobacco Products to Dana Marathon, LLC, d/b/a
Dana Marathon, 14050 Pilot Knob Road, as described in the City Clerk's memo
dated December 16, 2011. Ayes - 5- Nays - 0.
CITY OF APPLE VALLEY
Dakota County, Minnesota
December 20, 2011
Page 3
MOTION: of Bergman, seconded by Goodwin, approving extension of the Agreement with
the Apple Valley Chamber of Commerce, for provision of Convention and
Visitors Bureau (CVB) services, through December 31, 2012, as attached to the
Assistant City Administratar's memo dated December 20, 2011, and authorizing
the Mayor and City Clerk to sign the same. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, approving the Apple Valley Convention and
Visitors Bureau (CVB) 2012 budget and marketing plan as attached to the
Assistant City Administrator's memo dated December 20, 2011. Ayes - 5- Nays
-0.
MOTION: of Bergman, seconded by Goodwin, approving revised City Attorney fees for
20121ega1 services, as attached to the Assistant City Administrator's memo dated
December 20, 201 L Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, approving the reduction of financial
guarantee for Cobblestone Lake South Shore Sth Addition, from $465,370.00 to
$84,037.00, as listed in the Community Development Department Assistant's
memo dated December 20, 2011. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, approving the Joint Powers Agreement with
Dakota County for traffic signal maintenance as attached to the Public Works
Director's memo dated December 14, 20ll, and authorizing the Mayor and City
Clerk to sign the same. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, approving the Professional Services
Agreement with Cartegraph Systems, Inc., for database conversion services, as
attached to the Public Works Director's memo dated December 20, 201 l, and
authorizing the Mayor and City Clerk to sign the same. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, approving the Engineering Consulting
Agreement with Bolton & Menk, Inc., for engineering services, as attached to the
City Engineer's memo dated December 20, 2011, and authorizing the Mayor and
City Clerk to sign the same. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, approving the Engineering Consulting
Agreement with Foth Infrastructure & Environmental, LLC, for engineering
services, as attached to the City Engineer's memo dated December 20, 2011, and
authorizing the Mayor and City Clerk to sign the same. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, approving the Engineering Consulting
Agreement with KLM Engineering, Inc., for engineering services, as attached to
the City Engineer's memo dated December 20, 2011; and authorizing the Mayor
and City Clerk to sign the same. Ayes - 5- Nays - 0.
CITY OF APPLE VALLEY
Dakota County, Minnesota
December 20, 2011
Page 4
MOTION: of Bergman, seconded by Goodwin, approving the Engineering Consulting
Agreement with Short Elliott Henderson, Inc., for engineering services, as
attached to the City Engineer's memo dated December 20, 2011, and authorizing
the Mayor and City Clerk to sign the same. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, approving the Engineering Consulting
Agreement with Stantec Consulting Services, Inc., for engineering services, as
attached to the City Engineer's memo dated December 20, 2011, and authorizing
the Mayor and City Clerk to sign the same. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, approving the Engineering Consulting
Agreement with TKDA, Inc., for consulting engineering services, as attached to
the City Engineer's memo dated December 20, 2011, and authorizing the Mayor
and City Clerk to sign the same. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, approving the Engineering Consulting
Agreement with Wenck Associates, Inc., for consulting engineering services, as
attached to the City Engineer's memo dated December 20, 2011, and authorizing
the Mayor and City Clerk to sign the same. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, approving the Agreement for 2012 Water
Treatment Chemicals — Chlorine and Hydrofluorosilicic acid with DPC Industries,
Inc., in an amount not to exceed $55,000.00, and authorizing the Mayor and City
Clerk to sign the same. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, approving the Agreement for 2012 Water
Treatment Chemicals — CAIROX Potassium Permanganate with Hawkins, Inc., in
an amount not to exceed $12,500.00, and authorizing the Mayor and City Clerk to
sign the same. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, approving the Agreement for AV Project
2011-154, Arc Flash Analysis and Electrical Inspection, with Master Electric
Company, Inc., estimated in the amount of $63,075.00, and authorizing the Mayor
and City Clerk to sign the same. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, approving the Agreement for AV Project
2012-110, Location Marking and Clearance of Electric and Communication
Facilities, with Premier Lighting, Inc., estimated in the amount of $2,000.00, and
authorizing the Mayor and City Clerk to sign the same. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, approving the Agreement for AV Project
2011-152, Sanitary Sewer Lining, with Veit & Company, Ine., in the amount of
$10,390.00, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5
- Nays - 0.
CITY OF APPLE VALLEY
Dakota County, Minnesota
December 20, 2011
Page 5
MOTION: of Bergman, seconded by Goodwin, approving the Agreement for AV •Project
2011-151, 2011 Cured in Place Pipe Repairs, with Visu-Sewer, Inc., in the
amount of $38,770.00, and authorizing the Mayor and City Clerk to sign the
same. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, approving Change Order No. 1 to the
contract with Veit & Company, Inc., for AV Project 2011-142, Pond Cleanouts,
in the amount of an additional $7,160.00. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, accepting AV Project 2011-139, Roof
Replacement — Central Maintenance Facility Areas 1 and 4, as complete and
authorizing final payment on the contract with A-Plus Roofing Company, in the
amount of $40,100.00. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, accepting AV Project 2011-102, Garden
View Drive Improvements, as complete and authorizing final payment on the
contract with Bituminous Roadways, Inc., in the amount of $69,434.83. Ayes - 5
- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, accepting AV Project 2010-134, Galaxie
Pond Flood Mitigation, as complete and authorizing final payment on the contract
with Max Steininger, Inc., in the amount of $8,313.25. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, accepting AV Project 2011-101, 2011 Street
Improvement Project, as complete and authorizing final payment on the contract
with McNamara Contracting, Inc., in the amount of $154,639.24. Ayes - 5- Nays
- 0.
MOTION: of Bergman, seconded by Goodwin, accepting AV Project 2009-102, Whitney
Pond Strom Water Improvements, as complete and authorizing final payment on
the contract with Minnesota Dirt Works, Inc., in the amount of $90,405.97. Ayes
-S-Nays-0.
MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2011-218
approving fund balance reporting and governmental fund type definitions
included in Government Accounting Standards Board Statement (GASB) No. 54.
Ayes - 5 - Nays - 0.
MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2011-219
committing 2011 General Fund balance for specific items. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2011-220 amending
the 2012 Employee Pay and Benefit Plan. Ayes - 5- Nays - 0.
CITY OF APPLE VALLEY
Dakota County, Minnesota
December 20, 20ll
Page 6
MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2011-221 restating
the employee Health Reimbursement Arrangement (HRA) and approving the
Administration Agreement; and authorizing the Mayor and City Clerk to sign the
necessary documents. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2011-222 restating
the employee Flexible Benefits Plan and approving the Administration
Agreement; and authorizing the Mayor and City Clerk to sign the necessary
documents. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded by Goodwin, approving hiring the seasonal employee and
resignation of employee listed in the Personnel Report dated December 20, 2011.
Ayes - 5 - Nays - 0.
END OF CONSENT AGENDA
PAVEMENT MANAGEMENT PROGRAM AND SPECIAL ASSESSMENT POLICY
Mr. Blomstrom said during the Pavement Management Program and Special Assessment Policy
discussion at the November 22, 2011, meeting, the City Council directed staff to solicit more
public input. Staff has since met With Chamber of Commerce Board representatives and
Chamber members. In addition, staff continues to reach out to property owners, residents, and
institutional representatives. Additional public input meetings will be held in January.
The City's public infrastructure, which includes streets, the water distribution system, sanitary
sewer, and storm sewer, is by far the City's largest asset. Maintaining this asset is a challenge
with which every city struggles. In order to manage it effectively, long-term goals and targets
must be established. He stated there are two primary issues for the Council to consider: first,
what is the target benchmark for the street system, and second, what means should be used to
pay for them. He noted this issue was first identified in March 2009 at a goal setting session.
Since that time, the Council has discussed this topic at several public meetings. Staff is still
seeking input from the public, so no action is requested this evening.
He then reviewed the presentation on the Pavement Management Program, which highlighted the
development and growth of the public street system, the purpose of pavement condition ratings,
and the importance of pavement preservation. He presented various comparisons to other
communities as well as projected funding needs. He noted that if the City's goal is to maintain
the current overall pavement condition for the City's street system at a rating of 73, there would
be an annual funding gap of approximately $960,000.
Mr. Blomstrom then presented three program funding options: Option 1— road improvement
levy, Option 2- special assessments and levy, and Option 3— balanced levy adjustment. He
gave specific examples of how the residential assessment rate and commercial/industrial
assessment rate under Option 2 might apply to parcel specific properties.
CITY OF APPLE VALLEY
Dakota County, Minnesota
December 20, 2011
Page 7
Mr. Hedberg reviewed the tax impacts of the three funding options on the median valued home, a
home valued at $300,000; and commercial properties valued at $500,000, $2.4 million, and $9
million. He explained that the additional funds needed for the Pavement Management Program
could be levied beginning in 2018, which is when some debt service levies will be paid off.
Mr. Ed Kearney, Chamber of Commerce President, said they had three meetings with the City
regarding this issue in the last week and one-half. He thanked City staff for continuing to
research this matter and coming up with the third option. He said no one he has talked to
questions the need of a Pavement Management Program, but he believes additional time is
needed to help educate the public. The Chamber Board asked him to read a letter representing
the Chamber's position. He then read the letter.
Mayor Hamann-Roland suggested the City hold an open house for the public to learn more about
this topic.
Mr. Kearney offered the Chamber's services relative to communicating information to the
businesses.
Mr. Blomstrom described how staff is intending to move forward and asked for feedback from
the Council.
Councilmember Goodwin said he has three points he wants to make. First, every city in the
comparison group uses special assessments and several of them assess a higher percentage of the
project than Apple Valley is considering under Option 2. He noted the City of Eagan assesses 75
percent of the project's total cost. Second, in order to assess a property, a city must be able to
show a benefit to the property. With the value of homes decreasing, it may be more difficult to
show a benefit to the property. Third, he stated this is the eighth public meeting at which the
Council has discussed this topic.
Councilmember Grendahl noted only one of those meetings were on cable TV. She is not in
favor of Options 1 or 2. She is pleased there is a third option and that staff has received
additional public input. She has received comments about money being used for Valleywood
while there is not enough money available for road reconstruction and assessments are being
considered. She suggested the unspent money from the Operating Budget be used for roads. She
agrees with using the existing fund balance unti12018 as identified in Option 3. At that time, it
will need to be revisited. She is hopeful the economy will improve and there will be enough new
dollars to make up the difference.
Councilmember Bergman said he is glad there has been more public discussion. He noted the
Council began discussion on this topic in 2009 and then commented on the importance of roads
that are in good condition. He believes Option 3 is a viable solution, but is willing to delay a
decision for another month or so in order to further educate the public and gather additional
input.
CITY OF APPLE VALLEY
Dakota County, Minnesota
December 20, 2011
Page 8
Councilmember Hooppaw thanked the public for attending the meeting. He asked staff to post
the presentation on the City's website. At the City Council candidate forum last fall, he said
some big decisions were going to need to be made in the next few years and there will only be
one chance to make the right decision. This is one of tl�ose decisions. He does not want to start
down one path today and five years from now decide it would be better to go another way.
Because this needs to be a long-term decision, he is also willing to wait on the decision. He
noted assessments may be the norm for other communities, but it does not necessarily make it
the best way. He thanked staff for coming up with Option 3. He is not ready to make a decision
on what would be right in 2018. He expressed concerned about the impact inflation might have
on Option 3, because it is not something the City can control.
Mayor Hamann-Roland noted the laws regarding assessments may also be different in 2018.
Mr. Blomstrom said the Council will need to decide if it wants to use assessments to help pay for
road reconstruction. Whatever funding combination is decided upon will be a long-term
commitment and he wants to make sure everyone is comfortable with it. He commented on the
difficulty of gathering public input but stated they would make every effort to get the message
out.
Councilmember Goodwin noted there are other needs identified in the Capital Improvements
Program, many of which are public safety related. He also wanted the public to realize that
down the line Apple Valley's levy may be higher than other communities if it does not assess a
portion of its road reconstruction. Lastly, he clarified the money going towards the Valleywood
clubhouse is a loan and will be paid back by Valleywood Golf Course.
The Council and staff held discussion.
Mr. Blomstrom noted there is a long list of projects identified to be funded through the Future
Capital Projects Fund. The concern is whether the Fund can bridge the gap through 2018.
MOTION: of Goodwin, seconded by Hooppaw, directing staff to hold open houses and
obtain additional public input regarding funding options and present the findings
at the January 26, 2012, meeting. Ayes - 5- Nays - 0.
Mr. Terry Cook, 6431 132nd Street W., said he is also representing Ed Martin, Jim Houlihan,
and Judy Nelson. He agrees the City needs a Pavement Management Program. He expressed
concern with delaying a difficult decision too long. He favors some form of a City-wide levy.
He pointed out the roads residents live on are not the only roads on which they drive. He then
pointed out the advantages of a City-wide levy.
TAX 1NCREMENT FINANCING DISTRICT NO. 13
Mr. Hedberg said staff is requesting the City Council hold a public hearing on a Spending Plan
for Tax Increment Financing District No. 13 and consider adopting the Spending Plan. He then
reviewed the presentation describing the Spending Plan.
CITY OF APPLE VALLEY
Dakota County, Minnesota
December 20, 2011
Page 9
Councilmember Grendahl asked why the Spending Plan identifies $4 million when there is only
$2.6 million available.
Mr. Hedberg said the total amount that could be used was included in the Plan. He noted the
Plan does not authorize any expenditures; it only establishes a tool that can be used at a future
date if the Council so desires.
Mayor Hamann-Roland called the public hearing to order, at 9:45 p.m., to consider the Spending
Plan for Tax Increment Financing District No. 13. The Mayor asked for questions or comments
from the Council and the public. There were none and the hearing was declared closed at 9:46
p.m.
MOTION: of Hooppaw, seconded by Bergman, adopting Resolution No. 2011-223
approving the Spending Plan for Tax Increment Financing District No. 13. Ayes -
5 - Nays - 0.
ORDINANCE AMENDING FEES CONTAINED IN CITY CODE
Ms. Gackstetter gave the second reading of the proposed ordinance amending the Fee Schedule
Appendix of Title III of the City Code. Fee adjustments are proposed for the cemetery, City fees
and materials, consultant and engineering services, building inspections and permits, subdivision
and development fees, and utility fees. The fees would become effective in January. She noted
the proposed rates more accurately reflect the City's costs. Some changes were also
recommended as a result of increased fees being charged the City and some were increased
according to the Engineering News Record Construction Cost Index. No comments from the
public have been received regarding the proposed changes.
MOTION: of Goodwin, seconded by Bergman, passing Ordinance No. 928 amending the
Fee Schedule Appendix of Title III, Chapter 35, of the City Code by adjusting
certain fees and charges effective January 6, 2012. Ayes - 5- Nays - 0.
COMMUNICATIONS
Mr. Lawell informed the City Council that Phil Pearsall, one of the original Apple Valley
Councilmembers, recently passed away. Staff and City Council extended their condolences to
the Pearsall family.
Councilmember Bergman acknowledged Matt Lawton's resignation and wished him well in his
new endeavor. He then requested information regarding the Pavement Management Program
open houses be broadcast on cable TV.
CITY OF APPLE VALLEY
Dakota County, Minnesota
December 20, 20ll
Page 10
Mr. Lawell stated the City has successfully secured two Livable Communities Demonstration
Account (LCDA) grants from the Metropolitan Council. He thanked the Mayor and staff for
their efforts in obtaining these grants.
CALENDAR OF UPCOMING EVENTS
MOTION: of Grendahl, seconded by Goodwin, approving the calendar of upcoming events
as included in the City Clerk's memo dated December 16, 2011, 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 Grendahl, seconded by Bergman, to pay the claims and bills, on the check
register dated December 15, 2011, in the amount of $989,590.26. Ayes - 5- Nays
- 0.
MOTION: of Bergman, seconded by Grendahl, to adjourn. Ayes - 5- Nays - 0.
The meeting was adjourned at 9:56 o'clock a.m.
Respectfully Submitted,
�a�rna� �a,ci�o�
Pamela J. Gackstetter, City Clerk
Approved by the Apple Valley City Council on l— I 2-12