CITY COUNCIL MEETING

MOTION: Motion made by Forseth, seconded by McNeil, to approve the Consent Agenda of June 12, 2007, as amended.

Ayes: D. Anderson, Forseth, Hoke, K. Anderson, McNeil Nays: none

MOTION DECLARED PASSED.

OPEN FORUM

Matt Herman was present for Al Herman, his father, who lives at 12701 Cedarwood Court, asking that his father be added for the Sewer Assessment Deferral, since he was on disability through insurance, prior to the cut off date, but just now was granted officially by Social Security as disabled. The Council explained that the deferment would not mean no assessment, but deferment only, and requested confirmation by documentation. Attorney Hoff suggested a formal motion and receipt of the documentation by Staff, for on the next Consent Agenda, and there was CONSENSUS by the Council.

Greg Plasencia, from 11231 Arrowood Circle in the Donahue Dells Addition, stated he had been in favor of sewer for years, but just found out from an excavator that he may not be able to save his well for irrigating their gardens and much added expense, because of its proximity to the sewer utilities. He requested a variance or permit to drill another well, because of garden needs, asking for City assist in dealing with the Minnesota Department of Health. It was relayed that his current septic system was located in the back yard and well in the front, installed by the builder of the development. The homeowner provided information and there was CONSENSUS to have Staff work with the resident.

Mr. Tom Gump was present from the Beard Group to present a $73,265.00 check to give to the City of Dayton, since the City of Rogers and Township of Hassan have approved a development fees agreement for its Stones Throw Development there. He provided a one page agreement, asking that the check be held in trust until the Fee Agreement is signed. Administrator Orduno mentioned a couple minor issues, which Mr. Gump informed he agreed with, from the City’s perspective.

MOTION: Motion made by Forseth, seconded by K. Anderson, to approve the signing of the Payment Deposit Deferral Agreement for the Phase II Northwest Hennepin County Sub-Area Transportation Study, as presented, waiving the reading.

Ayes: D. Anderson, Forseth, Hoke, K. Anderson, McNeil Nays: none

MOTION DECLARED PASSED.

COUNCIL BUSINESS

ITEM L – DISCUSSION OF RESIDENT REQUEST REGARDING WATER/SEWER CONNECTION S.R.#78-2007

Engineer Hanson reported that resident Doug Schmoyer from 13251 South Diamond Lake Road, who was present, contacted him to inform that the proposed 1 inch water and 4 inch sewer connection will not be adequate for the distance his house sets from the road (about 1,100 ft.), dramatically increasing the cost. He is requesting a few options, including excusing the property from the project or leaving the assessment, but extending the hook-up period.

Administrator Orduno reported that the Council has taken all formal actions regarding the approval process for the NE Dayton Improvement Project, but has authority on exceptions. Engineer Hanson believes the option of allowing the resident to be exempt from the mandatory connection within five years, and allowing him to connect when properties on Teakwood (CSAH 133 in the future) have access to water and sewer may provide a solution. It was noted that their property would still be assessed according to the assessment role, since the project has begun and financing is finalized.

Attorney Hoff suggested a resolution be prepared, recommending it go back to Staff for its preparation. There was discussion of three possible options for the timeline.

MOTION: Motion made by Hoke, seconded by McNeil, to direct the item back to Staff to draft the appropriate resolution for the next Council Meeting.

Ayes: D. Anderson, Forseth, Hoke, K. Anderson, McNeil Nays: none

MOTION DECLARED PASSED.

ITEM M – FIRE CHIEF & FIRE INSPECTOR WAGES S.R.#79-2007

Chief Nordmeyer is requesting the Council approve an increase in wage for the Fire Chief and Fire Inspector positions, as it has been several years since the last. It was suggested the Chief’s rate increase to $13.00/hour (as it is currently over $3.00/hour below the Department Secretary) and the Inspector’s to $11.00/hour. Funds were budgeted in the 2007 Budget for increases for both employees. At their current call rate, the Fire Department’s 2007 Payroll Budget will have a $12,000 balance at yearend.

It was relayed that the effective date could be January 1st or June 1, 2007, which is their next payroll cycle. Current wages were provided for a comparison, including Chief - $9.25/hour, Fire Marshall - $20.00/hour, Fire Inspector - $8.25/hour, and Department Secretary - $12.38/hour. Chief Nordmeyer corrected that the estimated hours noted in his report should be semi-annual, not annual.

MOTION: Motion made by Forseth, seconded by McNeil, to approve as presented, effective June 1, 2007.

Ayes: D. Anderson, Forseth, Hoke, K. Anderson, McNeil Nays: none

MOTION DECLARED PASSED.

ITEM N – N.E. DAYTON AREA 1-6 PROJECT:

1) CONFIRM DAYTON POLICY FOR TREES, LANDSCAPE, & IRRIGATION IN EXISTING RIGHT-OF-WAY/EASEMENTS S.R.#80-2007

Engineer Hanson reported that as part of the NE Dayton Area 1-6 Project and similar projects in Dayton, the improvements constructed in existing public right-of-way (ROW)/easements may impact trees, landscape, and irrigation. The past and present policy addressing these impacts include that items are at risk, but that the City will work with the property owner to the extent it can, to save trees, landscape, and irrigation. However, if required, they would remove the items, if needed, to construct the infrastructure.

The property owner at their own expense can remove and/or relocate trees, landscape, and irrigation, if they choose, and the City will restore the damaged area with seed and/or sod, Engineer Hanson informed. Staff is recommending the Council confirm the present policy regarding ROW/easements impacted by constructing public infrastructure improvements.

Council member McNeil stated he liked policy, but had concerns of the loss of mature trees and making sure residents continue to beautify their property, possibly looking at some options. It was explained that right-of-ways/easements are not the residents’ property, noting that residents have had opportunity to move some trees during the project, but sometimes it is not possible.

MOTION: Motion made by Forseth, seconded by McNeil, to confirm the present policy as presented, regarding the impact to trees, landscape, and irrigation in existing public right-of-way/easements impacted by constructing public infrastructure improvements.

Ayes: D. Anderson, Forseth, Hoke, K. Anderson, McNeil Nays: none

MOTION DECLARED PASSED.

2) CONSIDERATION OF N.E. DAYTON EASEMENT OFFERS S.R.#81-2007

Engineer Hanson reviewed that May 22^nd the Council approved payments for easements in the amount of $52,532 for NE Dayton Areas 1-6 Project, noting that easement acquisitions are a project cost and financed in the bond sale for this year’s construction. He reported that Staff continues to meet with property owners to finalize permanent and temporary easements for the NE Dayton areas 1-6 projects.

The status of the easements to date, were summarized by Engineer Hanson, including the 25 temporary easements at no cost. He provided a letter dated June 7, 2007, including payments for the three additional permanent easements for the Council to consider. The Attorney’s office would prepare the appropriate documents to execute the easements and payments, with any changes brought back to the Council.

Council member McNeil mentioned a call he received regarding a Dayton River Road property temporary easement and tree issue. Engineer Hanson relayed that the transplanting of some trees is provided for in the project. He responded that $300,000 was budgeted for easements and he provided documentation, dated June 7^th, listing the Easement Tabulation. Attorney Hoff explained the process for if an easement is needed, and no agreement is made.

MOTION: Motion made by Hoke, seconded by Forseth, to accept the easements as described in Engineer Hanson’s memo.

Ayes: D. Anderson, Forseth, Hoke, K. Anderson, McNeil Nays: none

MOTION DECLARED PASSED.

ITEM O – RESOLUTION #35-2007: RELEASE OF WICHT INDUSTRIAL PARK FROM RES. #40-2005 (WAIVER OF PLAT)

RESOLUTION #36-2007: RELEASE OF WICHT INDUSTRIAL PARK FROM THE AGREEMENT S.R.#82-2007

Planner Stwora’s report reviewed that in July of 2005, the Council approved a Waiver of Plat and entered into an agreement with Cemstone Products Company and John Wicht as a preliminary step to the Wicht Industrial Park development. Prior to the platting of the Industrial Park, the City recorded documents relaying the conditions that had to be met for platting to occur. Now that the land is platted, the recorded documents can be released, Planner Stwora informed, noting they continue to appear as encumbrances on the property and the landowners are requesting the release.

The development contracts have been recorded and the obligations of the landowners are included in development agreements, so Staff had recommended the Council release them from Resolution No. 40-2005 (Waiver of Plat) and the Agreement. Planner Stwora relayed that an overdue escrow account with Mr. Wicht, and City policy of not processing without payment in full by the applicant, has Staff now suggesting payment be made before approval.

There was discussion of having leverage with Wicht, without affecting Cemstone. Attorney Hoff agreed with Staff’s recommendation, but suggested tabling this. It was relayed that there is still a Letter of Credit amount of about $30,000 left, which Hoff agreed would get their attention, and not affect Cemstone. Planner Stwora informed that a credit line is needed with Wicht, as expenses continue. Hoff suggested tabling this, and between Staff and his office, outlining the options for the Council.

MOTION: Motion made by Forseth, seconded by K. Anderson, to TABLE Resolution #35-2007, regarding the property owner’s release from Resolution No. 40-2005 (Waiver of Plat) and Resolution #36-2007, regarding the release of the property owners from the Agreement, waive the readings, to bring back in a couple weeks.

Ayes: D. Anderson, Forseth, Hoke, K. Anderson, McNeil Nays: none

MOTION DECLARED PASSED.

ITEM P – DISCUSSION OF HISTORIC VILLAGE RESIDENTS WHO HAVE NOT HOOKED UP TO CITY SEWER &/OR WATER S.R.#83-2007

Planner Stwora reported that Ordinances #2000-8 and #2001-02 where approved in 2000/2001, stating that properties in the Historic Village Sewer and Water Project area must be connected to the system within five years, which was April 8, 2006. A letter was sent out in August 2005, and again in May of 2007 to the nine who have not hooked up to sewer or water and two not hooked up to water.

The letter requested property owners contact the City with a plan for connection by May 30, 2007. Planner Stwora reported on the status, including three applying for permits for connection, five intending to hook up in the future. There are no penalties in either of the approved ordinances, so she asked the Council for Staff direction, reviewing four possible options. She relayed that current minimum fees are being paid, but didn’t initiate response to hookup. The issue of health concerns and the affect on the two rivers was discussed and the possibility of similar problems with the current City utility projects being constructed. Stwora reviewed what other cities do in similar situations.

The Council discussed the options, stating that fees have not worked. They suggested more than minimum fee, and getting City approval to investigate the septic systems not hooked up to the City utilities. A letter stating the final connection date of October 1, 2007, or the City would hook them up and assess them, including administrative and legal fees was mentioned.

There was a suggestion for stronger language for the NE Dayton Project, and Attorney Hoff stated his office could review it. It was recommended a significant fee start the day after the 5 year requirement hookup time period. Attorney Hoff was directed to prepare the letter for the October 1^st deadline and consequences. Staff was directed to look into grant possibilities and check with the County for those with financial concerns.

MOTION: Motion made by Hoke, seconded by Forseth, to send a letter from the Attorney’s office, as discussed.

Ayes: D. Anderson, Forseth, Hoke, K. Anderson, McNeil Nays: none

MOTION DECLARED PASSED.

ITEM Q – DISCUSSION OF BRAD BETHKE ADMINISTRATIVE SUBDIVISION S.R.#84-2007

Planner Stwora reviewed that in October of 2005 the Council approved an Administrative Subdivision for Brad Bethke at 18141 Robinson Circle, which expired in October 2006, due to the applicant not providing signatures for the agreement and recording it. Mr. Bethke is now requesting the subdivision be completed. She reviewed a couple options with the Council, noting that this was one of the properties that had not hooked up to City sewer and water in the Historic Village. She suggested the requirement of hooking up the property, before he gets approval of the Administrative Subdivision extension.

MOTION: Motion made by Forseth, seconded by K. Anderson, to allow the extension of the Administrative Subdivision, after Mr. Bethke hooks up to City utilities, as was required.

Ayes: D. Anderson, Forseth, Hoke, K. Anderson, McNeil Nays: none

MOTION DECLARED PASSED.

ITEM R – RESOLUTION #38-2007: APPROVING THE 2008-2012 CAPITAL IMPROVEMENT PLAN (C.I.P.) S.R.#85-2007

Administrator Orduno reported that in 2006, the City developed its first formal 5-year Capital Improvement Plan (CIP). The Draft 2008-2012 CIP was presented to the Council May 22, 2007, and they requested a Work Session prior to the Council Meeting to allow more discussion of the proposed expenditures.

She explained that the adoption of the CIP is required prior to the development of the 2008 Budget.

Regarding changes from the May 22^nd Draft CIP, Administrator Orduno noted that for General Operations, two of the proposed 2008 expenditures were moved from the list of Equipment Certificate recommended expenditures to General Fund expenditures – the handicap accessible doors and front desk glass enclosure for City Hall.

A corrected copy of the resolution was provided to the Council. Administrator Orduno reviewed the changes suggested at the Work Session, including the following: Riversbend Park – leave the $7,500 in for a ½ Basketball Court, but have the Park Commission chose if it should be a 1/2 , whole, or two ½ courts, & irrigation system/reseeding $25,000 will change from just General Fund to General Fund, Park Dedication Fees, and CDAA; General Operations – move the front office area glass and handicapped accessible door to 2009; the exercise equipment and TV/Furniture for the Senior Center has been moved to 2009; Fire Department - Fire engine will be spread over 3 years, instead of two, at $100,000/$100,000/$140,000 for years 2008/2009/2010. She relayed that the CIP sheets and narrative would be changed accordingly.

MOTION: Motion made by McNeil, seconded by K. Anderson, to waive the reading and adopt Resolution #35-2007, as presented, approving the 2008-2012 Capital Improvement Plan (CIP), as amended.

Ayes: D. Anderson, Forseth, Hoke, K. Anderson, McNeil Nays: none

MOTION DECLARED PASSED.

ITEM S – MEGA HOMES INVITATION

Mayor Anderson noted the Mega Homes Invitation to visit their model homes in Nature’s Crossing Development and to learn of their promotional for Dayton on Thursday at noon. As there was not time for posting, Council members Kevin Anderson and McNeil were volunteered to go.

REPORT OF OFFICERS

MAYOR UPDATES

Mayor Anderson mentioned his application for the League of Minnesota Cities Board and the Mr. Tom Gump is planning on having a meeting this Thursday regarding the I-94/Brockton Interchange and Sub-Area Transportation Study.

COUNCIL UPDATES

Council member Kevin Anderson mentioned concerns of residents in Historic Village regarding speeders and the safety of kids at the crosswalk there, suggesting making the pedestrian crossing more visible. There was discussion that it was a Hennepin County issue, being it’s a county road, and possible options were mentioned. Chief Pietrzak stated he would check with Champlin or the County about borrowing their equipment or placing something there. Council member Forseth asked about the possibility of adding flashing lights at the Dayton School crosswalk on South Diamond Lake Road, as well.

Council member Forseth mentioned the Golfing for Kids Tournament on Monday, June 25^th at Sundance Golf Course put on by the Dayton Lions and Dayton Parent/Teacher Association, to raise money for the two schools. He informed anyone could contact him for a registration form.

Council member McNeil updated that the Heritage Day festival was going on as scheduled. He informed the Committee is considering a commemorative button this year, hoping to use the new logo, if decided on in time.

CITY ADMINISTRATOR

Administrator Orduno corrected the amount of the Change Order 1 of NE Dayton Contract 3 to $33,444.72, instead of ~~$33,429.57~~ and requested a motion to formal the action.

MOTION: Motion made by McNeil, seconded by K. Anderson, to approve the Change Order 1 for Contract 3, at an amount of $33,444.72.

Ayes: D. Anderson, Forseth, Hoke, K. Anderson, McNeil Nays: none

MOTION DECLARED PASSED.

Next, Orduno informed that the City’s receptionist was ill and out of the office several weeks and another employee would be retiring next month, leaving the office short on Staff. She requested some temporary help to assist with phones and front desk for the summer, recommending as many hours as possible from college student, Caitlyn Lothian, at a rate of $10 per hour, as soon as possible. She relayed there is money in the budget to do a budget amendment/transfer.

MOTION: Motion made by Forseth, seconded by McNeil, to approve the temporary employment, as recommended by the Administrator.

Ayes: D. Anderson, Forseth, Hoke, K. Anderson, McNeil Nays: none

MOTION DECLARED PASSED.

CITY PLANNER

Planner Stwora updated the Council on the Logo Contest process. She then handed out a Community Development Committee Report, dated May 15, 2007, regarding the 2007 Local Planning Assistance Grant Program. She relayed there is money available to assist cities in their Comprehensive Plan Update, and Dayton is on the list to receive $20,000, which would pay half of their loan back. Next, Stwora informed that June 21^st was the next Comprehensive Plan Task Force Meeting to go over the policies and goals, and June 28^th would be the public meeting to present them, then before the Council July 10^th at a Work Session, before the Council Meeting.

CITY ENGINEER

Engineer Hanson updated that Goose Lake Road will now not be bid this year, with Hennepin County has informed it probably will not take place until January 2008.

ADJOURNMENT

MOTION: Motion made by Hoke, seconded by K. Anderson, to adjourn.

Ayes: D. Anderson, Forseth, Hoke, K. Anderson, McNeil Nays: none

MOTION DECLARED PASSED.