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Home My WebLink About12/08/2022 CITY OF APPLE VALLEY Dakota County, Minnesota December 8, 2022 Minutes of the regular meeting of the City Council of Apple Valley, Dakota County, Minnesota, held December 8, 2022, at 7:00 o'clock p.m., at Apple Valley Municipal Center. PRESENT: Mayor Hooppaw; Councilmembers Bergman, Goodwin, and Grendahl. ABSENT: Councilmember Melander. City staff members present were: City Administrator Lawell, City Clerk Gackstetter, City Attorney Dougherty, Parks and Recreation Director Carlson, Deputy Police Chief Dahlstrom, Police Chief Francis, Finance Director Hedberg, Acting Community Development Director Lovelace, Fire Chief Russell, Public Works Director Saam, and Planner/Econ. Dev. Specialist Sharpe. Mayor Hooppaw called the meeting to order at 7:00 p.m. Everyone took part in the Pledge of Allegiance to the flag. APPROVAL OF AGENDA MOTION: of Grendahl, seconded by Goodwin, approving the agenda for tonight's meeting, as presented. Ayes -4 -Nays - 0. AUDIENCE Mayor Hooppaw 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 Hooppaw 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 items on the consent agenda with no exceptions. Ayes-4 -Nays - 0. CONSENT AGENDA ITEMS MOTION: of Bergman, seconded by Goodwin, approving the minutes of the special meeting of November 18, 2022, as written. Ayes - 3 -Nays - 0 - Abstain- 1 (Grendahl). MOTION: of Bergman, seconded by Goodwin, approving the minutes of the regular meeting of November 22, 2022, as written. Ayes-4 -Nays - 0. MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2022-189 accepting, with thanks,the donation of$3,099.00 from Dakota County Heroes for CITY OF APPLE VALLEY Dakota County, Minnesota December 8, 2022 Page 2 use by the Apple Valley Police Department K-9 Program for a ballistic vest for K- 9 Bergil. Ayes -4 -Nays - 0. MOTION: of Bergman, seconded by Goodwin, approving the renewal and issuance of On- Sale 3.2 Percent Malt Liquor Licenses for 2023, per the list attached to the City Clerk's memo, subject to receipt of the necessary documents. Ayes - 4 -Nays - 0. MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2022-190 setting a public hearing, at 7:00 p.m., on January 12, 2023, on the application for On-Sale Intoxicating Liquor License and Special License for Sunday Liquor Sales by QRA Enterprise, LLC, d/b/a X-Golf Apple Valley, 7541 148th Street W. Ayes - 4 -Nays - 0. MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2022-191 setting a public hearing, at 7:00 p.m., on January 12, 2023, on the application for Concessionaire On-Sale Intoxicating Liquor License and Special License for Sunday Liquor Sales by SSA Group, LLC, 13000 Zoo Boulevard. Ayes - 4 - Nays - 0. MOTION: of Bergman, seconded by Goodwin, adopting Resolution No.2022-192 establishing precinct boundaries and Polling Places for 2023 elections. Ayes -4 - Nays- 0. MOTION: of Bergman, seconded by Goodwin, setting the 2023 City Council meeting schedule, in accordance with 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. Ayes -4 -Nays - 0. MOTION: of Bergman, seconded by Goodwin, setting a special informal City Council meeting, at 8:30 a.m., on April 14, 2023, at Valleywood Golf and Events, 4851 McAndrews Road, for the purposes of goal setting. Ayes - 4 -Nays - 0. MOTION: of Bergman, seconded by Goodwin, setting a special informal City Council meeting, at 8:30 a.m., on April 14, 2023, at Valleywood Golf and Events, for the purpose of discussing goals with City staff. Ayes -4 -Nays - 0. MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2022-193 adopting the Dakota County All-Hazard Mitigation Plan, as attached to the Deputy Police Chief s memo. Ayes -4 -Nays - 0. MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2022-194 decertifying Tax Increment Financing District No. 14. Ayes -4 -Nays - 0. MOTION: of Bergman, seconded by Goodwin, approving the reduction of Natural Resources Management Permit financial guarantees for 12121 Galaxie Avenue from CITY OF APPLE VALLEY Dakota County, Minnesota December 8, 2022 Page 3 $9,900.00 to $2,000.00 and Orchard Path Phase Two from $22,500.00 to $4,800.00.00, as listed in the Natural Resources Technician's memo. Ayes -4 - Nays - 0 MOTION: of Bergman, seconded by Goodwin, approving the reduction of financial guarantees for Applewood Pointe from $2,612,213.00 to $1,282,388.00, Apple Ford Lincoln from$347,500.00 to $165,145.00, Lakeside of Diamond Path from $262,500.00 to $202,500.00, and Apple Valley Industrial - Opus Development from$438,411.00 to $338,411.00, as listed in the Community Development Department Assistant's memo. Ayes -4 -Nays- 0. MOTION: of Bergman, seconded by Goodwin, adopting Resolution No.2022-195 awarding the agreements for Apple Valley Fire Station#2 & Improvements to#1 & #3,to various contractors for various amounts. Ayes -4 -Nays - 0. MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2022-196 rejecting bids for Bid Category 3B Precast Concrete for Apple Valley Fire Station#2 & Improvements to #1 & #3. Ayes-4 -Nays - 0. MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2022-197 levying Special Assessment Roll No. 687, for Pahl Family Limited Partnership II, in the total amount of$26,820.42. Ayes -4 -Nays - 0. MOTION: of Bergman, seconded by Goodwin, approving assessment Agreement-Trunk Charges with Pahl Family Limited Partnership II for Pahl's Market, located at 6885 160th Street W., for trunk utility connection charges, as attached to the City Engineer's memo, and authorizing the Mayor and City Clerk to sign the same. Ayes -4 -Nays - 0. MOTION: of Bergman, seconded by Goodwin, approving the Stormwater Maintenance Agreement with Pahl Family Limited Partnership II for Pahl's Market, located at 6885 160th Street W., as attached to the City Engineer's memo, and authorizing the Mayor and City Clerk to sign the same. Ayes - 4 -Nays - 0. MOTION: of Bergman, seconded by Goodwin, approving the agreement for Purchase and Delivery of Audio &Video Equipment with AVI Systems, Inc., in the amount of $67,987.74, as described in the Assistant City Administrator's memo, and authorizing the Mayor and City Clerk to sign the same. Ayes -4 -Nays - 0. MOTION: of Bergman, seconded by Goodwin, approving the Community Waste Abatement 2023 Grant Agreement with Dakota County and the Cities of Apple Valley, Burnsville, Eagan and Lakeville, d/b/a Dakota Valley Recycling, as attached to the Assistant City Administrator's memo, and authorizing the Mayor and City Clerk to sign the same. Ayes -4 -Nays - 0. CITY OF APPLE VALLEY Dakota County, Minnesota December 8, 2022 Page 4 MOTION: of Bergman, seconded by Goodwin, accepting Apple Valley Police Facility Concrete Flooring, as complete and authorizing final payment on the agreement with Swedebro, Inc., in the amount of$28,000.00. Ayes -4 -Nays - 0. MOTION: of Bergman, seconded by Goodwin, approving the personnel actions as listed in the Personnel Report dated December 8, 2028. Ayes- 4 -Nays- 0. MOTION: of Bergman, seconded by Goodwin,to pay the claims and bills, on the check register dated November 16, 2022, in the amount of$913,033.79; and November 22, 2022, in the amount of$742,651.77. Ayes -4 -Nays - 0. END OF CONSENT AGENDA 2023 CITY BUDGET AND PROPERTY TAX LEVY Mr. Hedberg presented the 2023 proposed budget and tax levy. He reviewed the changes since the preliminary budget, as well as the budget development process, budget climate, items of note, budget objectives and highlights. All properties in the City received mailed notice of the Truth-in-Taxation meeting and the notice included the proposed property taxes for 2023 based on preliminary budgets and tax levies approved in September. The impact of the property tax levy on the 2023 median valued home of$352,800,that experienced a 16.74% increase in market value, will result in the City's portion of property taxes increasing approximately $111 annually. The General Fund revenues and expenditures are $40,432,085. Mr. Hedberg stated the final property tax levy for 2023 is $32,039,000, which is an increase of 7.42%or$2,214,000 from 2022. He pointed out Apple Valley's budget includes funding for the annual street maintenance program and property owners are not specially assessed for these improvements. The entire budget is available on the City's website. Mr. Hedberg stated that if the Council does not complete the actions this evening, it can come back at the next meeting. The adopted levy must be certified to the Dakota County Auditor by December 28, 2022. Discussion followed regarding market value exclusion, the median valued home, and income tax deductions related to property taxes. Mayor Hooppaw opened the public comment portion of the Truth-in-Taxation hearing. He asked for questions or comments from the public. Mr. Ted Seglum, 12921 Exley Avenue, asked about the budget process and commented on the proposed tax increase and the State surplus. He said he does not see the accountability. He believes taxes are a burden on everyone and especially those with a fixed income. Councilmember Goodwin said he is frustrated that the City has no control over many of the things that impact property taxes. Discussion continued. CITY OF APPLE VALLEY Dakota County, Minnesota December 8, 2022 Page 5 Mr. Kannan Venkataraman, 14433 Flax Way, commented on inflation and increased charges and fees for various services as well as the increase in his property value. He is concerned about the proposed property tax increases because he is on a fixed income. He suggested the Council be more conservative. He also asked about the purpose of the meeting. Mayor Hooppaw responded. Discussion followed. Councilmember Goodwin added that the City is going to be building a fire station, which is long overdue and needed due to the City's growth. Discussion continued. Councilmember Grendahl pointed out 10 percent of the budget goes toward the road fund. She stated she does not think that is sustainable. She also asked about the increases in the water and sewer funds. Councilmember Goodwin stated he is happy with our road reconstruction program. Compared to the condition of other cities' roads,Apple Valley's roads are in much better condition. Mr. Seglum said he would like the Council to hold the line with the taxpayers' money. The Council and audience members continued discussion. Councilmember Bergman offered Mr. Seglum his budget book. Councilmember Grendahl suggested waiting to vote on the budget until all members were present. Mayor Hooppaw suggested the Council provide Mr. Hedberg their feedback in advance so that additional detail or information may be presented at the next meeting. Mr. Hedberg said the challenge this year was the valuation increases and shift in taxes to residential properties. When valuations of one property class change more than another property class, the property tax burden shifts to the properties increasing at a greater rate. Councilmember Bergman shared his property tax information and how the amounts changed over the last year. He then listed all the items his monthly increase in property taxes is going to cover. Discussion continued. MOTION: of Bergman adopting the resolution approving setting the City tax levy collectible in 2023 at $32,039,000 and approving 2023 budgets with total revenue of $85,273,986 and expenditures of$88,645,140. Motion failed for lack of a second. CITY OF APPLE VALLEY Dakota County, Minnesota December 8, 2022 Page 6 MOTION: of Goodwin tabling consideration of the resolution approving setting the City tax levy collectible in 2023 at$32,039,000 and approving 2023 budgets with total revenue of$85,273,986 and expenditures of$88,645,140 to the December 22, 2022, City Council meeting. Motion failed for lack of a second. MOTION: of Bergman, seconded by Hooppaw, adopting the resolution approving setting the City tax levy collectible in 2023 at$32,039,000 and approving 2023 budgets with total revenue of$85,273,986 and expenditures of$88,645,140. Ayes -2 -Nays - 2 (Goodwin and Grendahl). MOTION: of Goodwin, seconded by Grendahl, to continue the public meeting on the 2023 budget and tax levy to the December 22, 2022, City Council meeting. Ayes -4- Nays - 0. LIQUOR FUND TRANSFER FOR 2022 MOTION: of Goodwin, seconded by Grendahl, adopting Resolution No. 2022-198 approving the transfer of$680,000.00 from the Liquor Fund to the General Fund and $150,000 from the Liquor Fund to the Valleywood Vehicle and Equipment Replacement Fund for 2022. Ayes -4 -Nays - 0. SCHULER SHOES Mr. Sharpe reviewed the request by LB Apple Valley, LLC, for site plan/building permit authorization to construct a 7,920 sq. ft. retail store for Schuler Shoes at 15560 English Avenue. The Planning Commission reviewed this item on November 2, 2022, and unanimously recommended approval. MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2022-199 approving the site plan and authorizing issuance of a building permit to allow construction of a 7,920 sq. ft. retail building on Lot 2, Block 1, LB at Orchard Place, subject to conditions as recommended by the Planning Commission. Ayes - 4 -Nays - 0. APPLE VALLEY SQUARE 7TH ADDITION, POPEYES RESTAURANT Mr. Sharpe reviewed the request by Apple Valley Minnesota Realty,LLC, for a subdivision by preliminary plat,required parking stall variance, Conditional Use Permit for Class II restaurant, variance for a separation distance of a Class II restaurant from a residential use, and a site plan/building permit authorization for a Popeyes restaurant. The site is located at the northwest corner of Cedar Avenue and 153rd Street W. The Planning Commission held a public hearing on October 19, 2022, and recommended approval of the items on November 2, 2022. Discussion followed. CITY OF APPLE VALLEY Dakota County, Minnesota December 8, 2022 Page 7 MOTION: of Goodwin seconded by Grendahl, adopting Resolution No. 2022-200 approving the preliminary plat of Apple Valley Square 7th Addition into two lots, with conditions as recommended by the Planning Commission. Ayes- 4 -Nays - 0. MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2022-201 approving a 65-parking-stall variance from 405 stalls to 340 stalls on Lot 1, Block 1, Apple Valley Square 7th Addition, with conditions as recommended by the Planning Commission. Ayes -4 -Nays - 0. MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2022-202 approving a Conditional Use Permit to allow a Class II restaurant with drive- through and a variance to reduce the required separation distance for a Class II restaurant from a residential use from 1,000 ft. to 506 ft. on Lot 2, Block 1,Apple Valley 7th Addition, with conditions as recommended by the Planning Commission. Ayes -4 -Nays - 0. MOTION: of Bergman, seconded by Grendahl, adopting Resolution No. 2022-203 approving the site plan and authorizing issuance of a building permit to allow construction of a 2,519 sq. ft. Popeyes restaurant on Lot 2, Block 1, Apple Valley Square 7th Addition, subject to conditions as recommended by the Planning Commission. Ayes - 4 -Nays - 0. 2023 FEE SCHEDULE Ms. Gackstetter reviewed the proposed Fee Schedule. Fee adjustments are proposed for the cemetery, City fees and materials, consultant and engineering services, building inspections and permits, licenses and permits, subdivision and development fees, utility fees, and zoning. The fees would be effective January 1, 2023. 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 Consumer Price Index. No comments from the public have been received regarding the proposed changes. Councilmember Grendahl recommended holding the public hearing tonight and postponing the action until the next meeting. She would like more information on the water and sewer rates. Mayor Hooppaw called the public hearing to order at 9:02 p.m. to consider the Fee Schedule which sets fees and charges for various products and services effective January 1, 2023. The Mayor asked for questions or comments from the Council and the audience. There were none and the hearing was declared closed at 9:03 p.m. MOTION: of Grendahl, seconded by Bergman,tabling consideration of the 2023 Fee Schedule, by adjusting certain fees and charges effective January 1, 2023,to the December 22, 2022, City Council meeting. Ayes -4 -Nays - 0. CITY OF APPLE VALLEY Dakota County, Minnesota December 8, 2022 Page 8 CALENDAR OF UPCOMING EVENTS MOTION: of Bergman, seconded by Grendahl, approving the calendar of upcoming events as included in the Deputy City Clerk's memo, and noting that each event listed is hereby deemed a Special Meeting of the City Council. Ayes-4 -Nays - 0. CLOSE MEETING Mayor Hooppaw requested a motion to close the meeting under the exceptions to the open meeting law to develop or consider offers or counteroffers for the possible purchase of Parcel ID Number 01- 47900-01-010. MOTION: of Bergman, seconded by Goodwin,to enter into a closed meeting and convene in closed session to develop or consider offers or counteroffers for the possible purchase of Parcel ID Number 0 1-47900-01-010. Ayes -4 -Nays - 0. The Council convened in the Regent Conference Room at 9:08 p.m. In attendance were Mayor Hooppaw; Councilmembers Bergman, Goodwin, and Grendahl; City Administrator Lawell; City Clerk Gackstetter; City Attorney Dougherty; Deputy Police Chief Dahlstrom; Police Chief Francis; Finance Director Hedberg; and Public Works Director Saam. The meeting was tape recorded as required by law. The Council reconvened in open session at 9:21 p.m. MOTION: of Goodwin, seconded by Grendahl,to adjourn. Ayes - 4 - Nays - 0. The meeting was adjourned at 9:22 o'clock p.m. Respectfully Submitted, WMAJ Pamela J. Gac s tt r, ity Clerk Approved by the Apple Valley City Council on 12/22/22 Clint Hooppaw, Mayor