HomeMy WebLinkAbout09/11/2012 CITY OF APPLE VALLEY
Dakota County, Minnesota
September 11, 2012
Minutes of the special meeting of the City Council of Apple Valley, Dakota County, Minnesota,
held September 11, 2012, at 7:00 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 Dougherty, Acting Parks and Recreation Director Adamini, Public Works Director
Blomstrom, Recreation Superintendent Breuer, Assistant City Administrator Grawe, Human
Resources Manager Haas, Finance Director Hedberg, City Engineer Manson, Community
Development Director Nordquist, Police Chief Rechtzigel, Liquor Operations Director Swanson,
and Fire Chief Thompson.
Mayor Hamann-Roland called the meeting to order at 7:01 p.m. Everyone took part in the Pledge
of Allegiance to the flag.
APPROVAL OF AGENDA
MOTION: of Bergman, seconded by Grendahl, removing item 4.I — Minnesota Valley Transit
Authority Agreement and Bylaws, adding item 4.S — Proclaim September 15, 2012,
as "Spare Key Appreciation Day in Apple Valley", and approving the agenda for
tonight's meeting, as amended. 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. 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 Hooppaw, seconded by Goodwin, approving all remaining items on the consent
agenda. Ayes - 5- Nays - 0.
CONSENT AGENDA ITEMS
MOTION: of Hooppaw, seconded by Goodwin, approving the minutes of the regular meeting
of August 23, 2012, as written. Ayes - 5- Nays - 0.
CITY OF APPLE VALLEY
Dakota County, Minnesota
September 11, 2012
Page 2
MOTION: of Hooppaw, seconded by Goodwin, approving the minutes of the special meeting
of August 28, 2012, as written. Ayes - 5- Nays - 0.
MOTION: of Hooppaw, seconded by Goodwin, adopting Resolution No. 2012-169 accepting,
with thanks, the donation of $100.00 from James Kaufmann for Valleywood
Clubhouse. Ayes - 5- Nays - 0.
MOTION: of Hooppaw, seconded by Goodwin, adopting Resolution No. 2012-170 accepting,
with thanks, the donation of $100.00 from Tom and Terri Kennedy for Valleywood
Clubhouse. Ayes - 5- Nays - 0.
MOTION: of Hooppaw, seconded by Goodwin, adopting Resolution No. 2012-171 accepting,
with thanks, the donation of $100.00 from Ardis Moen, on behalf of Valleywood
Ladies 18-Hole League, for Valleywood Clubhouse. Ayes - 5- Nays - 0.
MOTION: of Hooppaw, seconded by Goodwin, adopting Resolution No. 2012-172 accepting,
with thanks, the donation of $100.00 from Carol Rohde for Valleywood Clubhouse.
Ayes - 5 - Nays - 0. .
MOTION: of Hooppaw, seconded by Goodwin, adopting Resolution No. 2012-173 accepting,
with thanks, the donation of $250.00 from Bill and Carla Mathwig for Valleywood
Clubhouse. Ayes - 5- Nays - 0.
MOTION: of Hooppaw, seconded by Goodwin, adopting Resolution No. 2012-174 accepting,
with thanks, the donation of $1,000.00 from Valleywood Ladies 18-Hole League
for Valleywood Clubhouse. Ayes - 5- Nays - 0.
MOTION: of Hooppaw, seconded by Goodwin, approving issuance and revision of a lawful
gambling exempt permit, by the State Gambling Control Board, to School of
Environmental Studies Education Foundation, for use on Apri122, 2013, at the
School of Environmental Studies, 12155 Johnny Cake Ridge Road, and waiving
any waiting period for State approval. Ayes - 5- Nays - 0.
MOTION: of Hooppaw, seconded by Goodwin, approving issuance of a 2012 Christmas Tree
Sales Lot License to William Brabec d/b/a Silver Bell Christmas Tree Farm, for use
on Lot 2, Block 1, East Valley Plaza 3rd Addition (between Upper 141st and 140th
Streets), as described in the City Clerk's memo dated September 7, 2012. Ayes - 5
- Nays - 0.
MOTION: of Hooppaw, seconded by Goodwin, adopting Resolution No. 2012-175 approving
2012 Special Assessment Roll No. 611, for hearing purposes, in the total amount of
$136,723.28 for delinquent utility account charges, and setting the public hearing,
at 7:00 p.m., on October 11, 2012. Ayes - 5- Nays - 0.
CITY OF APPLE VALLEY
Dakota County, Minnesota
September 11, 2012
Page 3
MOTION: of Hooppaw, seconded by Goodwin, adopting Resolution No. 2012-176 approving
2012 Special Assessment Roll No. 612, for hearing purposes, in the total amount of
$2,682.00 for delinquent false alarm charges, and setting the public hearing, at 7:00
p.m., on October 11, 2012. Ayes - 5- Nays - 0.
MOTION: of Hooppaw, seconded by Goodwin, adopting Resolution No. 2012-177 approving
2012 Special Assessment Roll No. 613, for hearing purposes, in the total amount of
$7,164.04 for delinquent mowing and debris removal charges, and setting the
public hearing, at 7:00 p.m., on October 11, 2012. Ayes - 5- Nays - 0.
MOTION: of Hooppaw, seconded by Goodwin, adopting Resolution No. 2012-178 setting a
public hearing, at 7:00 p.m., on October 11, 2012, to consider vacating easements
and right-of-way in The Legacy of Apple Valley North. Ayes - 5- Nays - 0.
MOTION: of Hooppaw, seconded by Goodwin, declaring certain City property as surplus;
authorizing disposal of surplus City property by a public sale; and approving the
Agreement and Addendum with MDI Auctions, an authorized vendor of K-
BID.com, to conduct an online auction of surplus property from September 12
through September 26, 2012, as attached to the Public Works Supervisor's memo
dated September 11, 2012, and authorizing the Mayor and City Clerk to sign the
same. Ayes - 5- Nays - 0.
MOTION: of Hooppaw, seconded by Goodwin, declaring certain City property as surplus;
authorizing disposal of unclaimed and surplus property by a public sale; and
approving the Agreement with MDI Auctions, an authorized vendor of K-BID.com,
to conduct an online auction of unclaimed and surplus property from September 28
through October 10, 2012, as attached to the Public Works Supervisor's memo
dated September 1 l, 2012, and authorizing the Mayor and City Clerk to sign the
same. Ayes - 5- Nays - 0.
MOTION: of Hooppaw, seconded by Goodwin, approving the purchase of one Cartegraph
License with no future subscription annual renewal fees, as described in the
proposal attached to the Public Works Director's memo dated September 11, 2012.
Ayes-S-Nays-0.
MOTION: of Hooppaw, seconded by Goodwin, approving the Joint Powers Agreement with
Vermillion River Watershed Joint Powers Organization for cost share grant funding
of AV Project 2011-143, Long Lake Retrofit BMPs, as attached to the Assistant
City Engineer's memo dated September 11, 2012, and authorizing the Mayor and
City Clerk to sign the same. Ayes - 5- Nays - 0.
MOTION: of Hooppaw, seconded by Goodwin, adopting Resolution No. 2012-179 awarding
the contract for AV Project 2011-143, Long Lake Retrofit BMPs, to Minnesota Dirt
Works, Inc., the lowest responsible bidder, in the amount of $134,304.05. Ayes - 5
- Nays - 0.
CITY OF APPLE VALLEY
Dakota County, Minnesota
September 11, 2012
Page 4
MOTION: of Hooppaw, seconded by Goodwin, approving the Design Agreement with D.R.
Horton, Inc., for design services relating to AV Project 2012-134, the proposed
Cortland Addition, in an estimated amount of $35,300.00, and authorizing the
Mayor and City Clerk to sign the same. Ayes - 5- Nays - 0.
MOTION: of Hooppaw, seconded by Goodwin, approving the Project Development
Agreement with Ameresco, Inc., for energy audit, and authorizing the Mayor and
City Clerk to sign the same. Ayes - 5- Nays - 0.
MOTION: of Hooppaw, seconded by Goodwin, approving the Agreement for Cooler poor
Replacement Project at Liquor Store No. 2, with AA Equipment Company, in the
amount of $15,916.63, and authorizing the Mayor and City Clerk to sign the same.
Ayes - 5 - Nays - 0.
MOTION: of Hooppaw, seconded by Goodwin, approving the Agreement for Apple Valley
Family Aquatic Center Boiler Repair, with Twin Cities Boiler Repair, Inc., in the
amount of $12,574.00, and authorizing the Mayor and City Clerk to sign the same.
Ayes-S-Nays-0.
MOTION: of Hooppaw, seconded by Goodwin, approving the Agreement for AV Project
2012-107, 2012 Stormwater Sediment Removal, with Kevin Casey, LLC, in the
amount of $29,757.08, and authorizing the Mayor and City Clerk to sign the same.
Ayes-S-Nays-0.
MOTION: of Hooppaw, seconded by Goodwin, approving Change Order No. 2 to the contract
with LaTour Construction, Inc., for AV Project 2011-105, Flagstaff Avenue
Extension, in the amount of an additional $13,520.00. Ayes - 5- Nays - 0.
MOTION: of Hooppaw, seconded by Goodwin, approving Change Order No. 1 to the contract
with Curbside Landscape & Irrigation, in the amount of an additional $265.00; and
accepting AV Project 2011-150, Lebanon Cemetery Irrigation System, as complete
and authorizing final payment in the amount of $12,060.00. Ayes - 5- Nays - 0.
MOTION: of Hooppaw, seconded by Goodwin, accepting Liquor Store No. 1 Interior
Remodel - Millwork and Shelving as complete and authorizing final payment on
the agreement with Designed Cabinets, Inc., in the amount of $9,336.00. Ayes - 5-
Nays - 0.
MOTION: of Hooppaw, seconded by Goodwin, approving hiring the paid on call volunteer
firefighters and part-time employee, and resignation of employee, as listed in the
Personnel Report dated September 11, 2012. Ayes - 5- Nays - 0.
CITY OF APPLE VALLEY
Dakota County, Minnesota
September 1 l, 2012
Page 5
MOTION: of Hooppaw, seconded by Goodwin, setting a special informal City Council
meeting, at 5:30 p.m., on September 27, 2012, at Valleywood Golf Course. Ayes -
5 - Nays - 0.
MOTION: of Hooppaw, seconded by Goodwin, proclaiming September 15, 2012, as "Spare
Key Appreciation in Apple Valley". Ayes - 5- Nays - 0.
END OF CONSENT AGENDA
FIREFIGHTERS' RELIEF ASSOCIATION BOOYA FUND RAISER
Fire Chief Thompson introduced Firefighter A1 Olson, the 2012 Booya Chairperson, and
Firefighters Colleen Elvin and Laura Basballe.
Firefighter Olson described activities planned for the Apple Valley Firefighters Relief
Association's 34th annual booya fund raiser on September 15, 2012, at Fire Station No. 1.
Everyone is invited to attend. The event starts at 11:00 a.m. Activities such as bingo, silent
auction, dunk tank, bake sale, and kids' games continue throughout the day. Raffle tickets are
available in advance from all firefighters.
Mayor Hamann-Roland thanked all the volunteers for their time and efforts in coordinating the
booya as well as the businesses for their generous support.
EVERCARE SENIOR LIVING HEALTH CARE REVENUE REFUNDING BONDS
Mr. Hedberg reviewed the request for host approval to the issuance of Health Care Revenue
Refunding Bonds by the City of Moorhead for Evercare Senior Living, LLC, Projects. The bonds
will benefit the Centennial House of Apple Valley. A portion of the proceeds will be used to
refund the Apple Valley Economic Development Authority Health Care Revenue Bonds of 2005
in addition to 2008 bonds issued through the City of Eagan that financed a care facility 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. He noted
there is no financial obligation or liability for the bonds by the City of Apple Valley or the
Economic Development Authority.
Discussion followed.
Mayor Hamann-Roland called the public hearing to order at 7:22 p.m. to consider giving host
approval to the issuance of a Health Care Refunding Bonds by the City of Moorhead for Evercare
Senior Living, LLC, Projects. The Mayor asked for questions or comments from the Council and the
audience. There were none and the hearing was declared closed at 7:23 p.m.
MOTION: of Bergman, seconded by Hooppaw, adopting Resolution No. 2012-180 giving
host approval to the issuance of Health Care Refunding Bonds by the City of
Moorhead for Evercare Senior Living, LLC, Projects. Ayes - 5- Nays - 0.
CITY OF APPLE VALLEY
Dakota County, Minnesota
September 11, 2012
Page 6
PROPOSED 2013 CITY BUDGET AND PROPERTY TAX LEVY
Mr. Hedberg presented the proposed 2013 budget and t� levy. He reviewed the budget timeline.
Staff recommends the Council set the public budget meeting, formerly called the Truth-in-
Taxation hearing, for December 13, 2012, which is a regularly scheduled Council meeting. The
County will then send parcel specific notices to all property owners the second or third week in
November, informing them of the meeting on December 13. He reviewed the budget challenges
for 2013, noting market values are still declining. He then reviewed a table showing a comparison
of taxable market values by property class payable in 2012 and 2013, with apartments showing a
10.57% increase. The 2013 proposed budget requires a total levy of $22,890,946, an increase of
$865,697 or 3.9% from 2012. He pointed out that once the preliminary budget is adopted, the
total levy amount may decrease, but not increase.
Mr. Hedberg then reviewed the various property tax levy components. The largest component is
the General Fund, which is $18,444,570 for 2013. He also reviewed the budget highlights. Two
significant assumptions included in the proposed budget are the redirection of a debt service levy
to the street maintenance program and the decertification of T� Increment Financing District 13.
Mr. Hedberg presented a chart depicting the categories and percentages that make up the 2013
General Fund revenues. The biggest share of General Fund revenue comes from property taYes.
The City will not receive any Local Government Aid in 2013. He also showed how the fund
expenditures are divided between Personnel Services, Commodities/Other, and Capital Outlay and
a 2011-2013 comparison by expense category. He then highlighted various details in the
Enterprise Funds.
In addition, he explained multiple charts relative to the proposed 2013 levy and presented the tax
impact on four sample homes. Approximately 90.7% of the homes will receive a reduction in the
City portion of their taxes of $5 or more. The impact of the 2013 levy on the median-valued
home, valued at $185,800, that experienced a 5.9% decrease in value, will result in the City
portion of property taxes decreasing by 1.6% or approximately $14.
Mr. Hedberg said the Council is requested to adopt a preliminary budget and property tax levy and
set the date for the public budget meeting.
Mr. Ed Kearney, Apple Valley Chamber of Commerce President, said recently the City presented
the proposed budget to the Chamber of Commerce Board of Directors. On behalf of the Board, he
commended the City Council and staff for having great leadership and foresight in preparing the
2013 budget. He stated the City leaders in Apple Valley are actually keeping things in check and
it is amazing what the City has done over the years. He added that the method the City devised to
fund road reconstruction protects homeowners from paying approximately $2,500 in assessments
and gives businesses a competitive edge over other communities. The Chamber Board hopes the
Council will pass the proposed budget. He indicated homeowners should feel confident knowing
the budget was independently scrutinized by various business members.
CITY OF APPLE VALLEY
Dakota County, Minnesota
September 11, 2012
Page 7
Councilmember Goodwin noted 90.7% of the homeowners will receive a decrease in the City
portion of their tax bi1L He added that over 90% of the homeowners have received a reduction of
City property taxes in four of the last five years. He then pointed out that homeowners in cities
that assess all or a portion of their road reconstruction can end up with an assessment of $8,000 to
$18,000 in addition to their tax levy. He is familiar with other communities that are looking at
raising their taxes 12% to 16%.
Councilmember Grendahl said she always supports the preliminary levy because the amount can
always go down but it cannot go up. However, she thinks they can sharpen their pencils and
collect more revenue.
Councilmember Hooppaw stated he would like to see some commercial comparisons.
Mr. Hedberg said there are two variables needed for the calculation on a commercial property bill.
One is the State's property tax rate, which is not released until October 1. The other one is the
fiscal disparities and the County is still calculating it.
Councilmember Hooppaw said he knows putting the budget together is a lot of work. He
appreciates how everyone works together for the same goaL
Councilmember Bergman stated the Council is constantly looking at ways to minimize spending.
He added that they are not done looking for ways to save money.
Mayor Hamann-Roland reminded homeowners that their tax bill reflects their Homestead Market
Value Exclusion (HMVE) rate not the market value of their home. She thanked staff for its work
on the budget.
MOTION: of Goodwin, seconded by Hooppaw, adopting Resolution No. 2012-181 approving
the proposed 2013 budgets, with total revenue of $54,373,837.00 and expenditures
of $66,496,190.00, and approving the proposed tax levy collectible in 2013 of
$22,890,946.00 consisting of $21,599,570.00 for general purposes and
$1,291,376.00 for debt purposes. Ayes - 5- Nays - 0.
MOTION: of Bergman, seconded Goodwin, setting a public budget meeting on the proposed
2013 budgets and tax levy, at 7:00 p.m. on December 13, 2012. Ayes - 5- Nays -
0.
DECERTIFY TAX 1NCREMENT FINANCING DISTRICT 13
Mr. Hedberg said Tax Increment Financing District 13, also known as Fischer Market Place, has
reached a point where it should be decertified. If approved, approximately $1.3 million of tax
capacity will be returned to the tax rolls, which in turn, will generate additional tax revenue on
which the 2013 proposed budget relies. The decertification would be effective at the end of the
year.
CITY OF APPLE VALLEY
Dakota County, Minnesota
September 11, 2012
Page 8
Discussion followed.
MOTION: of Bergman, seconded by Grendahl, adopting Resolution No. 2012-182
decertifying Tax Increment Financing District No. 13. Ayes - 5- Nays - 0.
STAFF COMMUNICATION
Mr. Lawell provided an update on the 147th Street Transit Station improvements, bid results, and
Council discussion from the informal meeting. Based on the bid results, the City Council decided
not to proceed with the Phase II improvements. The letter to the Metropolitan Council states in
part: "The City is disappointed that the life cycle cost of the improvement has now risen to almost
$3 million, an amount that is well beyond what a single city should be expected to pay for an
improvement to the regional transit system".
The City Council discussed its disappointment in the bid results, its concern for the public
crossing Cedar Avenue, the importance of the skyway for development along the corridor, and the
required threshold for reimbursement.
Mr. Blomstrom updated the Council on various road and construction projects.
Councilmember Grendahl suggested holding a City-wide party promoting the City once Cedar
Avenue is completed.
Mr. Grawe reminded everyone about the Residential Fall Clean-up Day on Saturday, September
22, 2012, from 8:00 a.m. to 1:00 p.m., at Quarry Point Park.
COUNCIL COMMUNICATIONS
Councilmember Goodwin reminded everyone on proper campaign sign placement.
Mayor Hamann-Roland invited the public to the Metropolitan Council Thrive MSP 2040 Forum at
the Wescott Library in Eagan on September 20, 2012, from 5:30 p.m. to 7:30 p.m.
Councilmember Hooppaw welcomed the newest class of firefighters that were officially hired this
evening.
CALENDAR OF UPCOMING EVENTS
MOTION: of Hooppaw, seconded by Grendahl, the calendar of upcoming events as included
in the City Clerk's memo dated September 11, 2012, and noting that each event
listed is hereby deemed a Special Meeting of the City Council. Ayes - 5- Nays - 0.
CITY OF APPLE VALLEY
Dakota County, Minnesota
September 1 l, 2012
Page 9
CLAIMS AND BILLS
MOTION: of Bergman, seconded by Grendahl, to pay the claims and bills, check registers
dated August 30, 2012, in the amount of $385,773.00; and September 5, 2012, in
the amount of $263,665.53. Ayes - 5- Nays - 0.
MOTION: of Goodwin, seconded Grendahl, to adjourn. Ayes - 5- Nays - 0.
The meeting was adjourned at 8:57 o'clock p.m.
Respectfully Submitted,
� �►acJ�o�,�'u�
Pamela J. Gac stetter, City Clerk
Approved by the Apple Valley City Council on q� 2�- �2