PRESENT

PRESENT: Mayor Doug Anderson; and Council members Phil Forseth, Scott Hoke, J. Kevin Anderson, and Tim McNeil

ABSENT: none

ALSO PRESENT: Administrator Samantha Orduno, City Clerk Sandra Borders, City Planner/Zoning Administrator Erin Stwora, Police Chief Richard Pietrzak, Public Works Superintendent Rick Hass, Fire Chief Jim Nordmeyer, City Engineer Mark Hanson, City Attorney George Hoff, and Administrative Assistant/minute-taker Debbie Maveus

CALL TO ORDER - 7:05 p.m.

PLEDGE OF ALLEGIANCE

APPROVAL OF AGENDA

Mayor Anderson suggested moving Item K – Hennepin County Road #202 Improvements up to after Open Forum.

MOTION: Motion made by Forseth, seconded by K. Anderson, to approve the Agenda of the May 22, 2007 Regular Council Meeting, as amended.

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

MOTION DECLARED PASSED.

CONSENT AGENDA:

A. Approval of Council Meeting Minutes of May 8, 2007

B. Council Work Sessions Minutes of May 8, 2007

C. Payment of Claims – May 22, 2007

D. On-Sale 3.2 Beer License – St John the Baptist Church – August 4^th and August 5, 2007

E. Consideration of Resolution 33-2007; Interfund Transfers for 2006 Audit

S.R.#67-2007

F. Consider Nature’s Crossing Letters of Credit S.R.#68-2007

Administrator Orduno requested the addition to Payment of Claims of 1) S.R. Weidema for Contract for SW Dayton Sewer/Water Project in the amount of $820,996.74 and 2) Pershing, LLC – Retainage on Weidema Contract in the amount of $43,210.35. It was noted they were both Payment #3.

MOTION: Motion made by Forseth, seconded by McNeil, to approve the Consent Agenda of May 22, 2007, as amended.

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

MOTION DECLARED PASSED.

OPEN FORUM

Cindy Olson was present from the Mobile Home Park to mention concerns of vehicles with out current tabs and other junk or lack of permit issues she is hoping can be addressed to clean up that area. She relayed that a small committee has been formed to help deal with City rules/regulations not being enforced. Mayor Anderson suggested talking with Park Management, recommending the Park enforce their rules. Attorney Hoff informed that the City does have jurisdiction there, and it was suggested specific complaints be reported to the City. Chief Pietrzak suggested she speak with him regarding the problems.

ITEM K – FINAL PLAN/COOPERATIVE AGREEMENT NO. PW16-51-07, HENNEPIN

COUNTY ROAD #202 IMPROVEMENTS (GOOSE LAKE ROAD), 109^TH

AVENUE TO ELM CREEK ROAD S.R.#73-2007

Engineer Hanson’s report reviewed that at their November 14^th meeting, the Council reviewed the preliminary plans for Hennepin County Road #202 presented by the County. The County is now requesting Dayton approve the final plan and Cooperative Agreement No. PW16-51-07 between the two agencies. County representatives were present to present the final plans, which now includes the redesigned alignment on the north end of Goose Lake Road to avoid removing existing trees on the west side of Goose Lake Road. They passed out a layout prepared by Howard R. Green Company showing the CR 202 Project Location, Design Progress, Removal and Construction Plans and Cross Section with the revisions, and the Project Schedule – with completion planned for late 2008, depending on DNR easement timing. There was explanation on how construction plans would tie in with Champlin’s Hayden Lake Road Project.

A few residents were present and had questions of the County representatives mostly regarding the trees on the west end and right-of-way issues. It was relayed that once the right-of-way issues are taken care of, they will go out for bids. Residents were told late this fall they anticipate getting the first lift on the road, then it could remain open during the winter, with construction starting up again in the spring.

The City Attorney is preparing an agreement between Kevin Faulds and the City, addressing the easement, assessments for utilities/street, connection charges with Champlin for utilities, and future vacation of road easements after Goose Lake Road is turned back to the City from Hennepin County.

The cost sharing of the $2,457,199 between Hennepin County, Champlin and Dayton, per the agreement, was reviewed. Dayton’s cost is to be financed by Nature’s Crossing escrow ($415,000 – with a maximum of $30,000 more). The assessment to the Faulds property is $16,957 and will be financed based on the agreement still being prepared. The remaining cost (about $133,000) would be financed by Dayton, but proposed to be collected as transportation charges on future lots in this area.

The Council had some questions about developer Tom Dehn’s portion of the cost, which Engineer Hanson informed.

MOTION: Motion made by Forseth, seconded by McNeil, to approve the Final Plans and Cooperative Agreement between Dayton and Hennepin County, for County Road #202 from 109^th Avenue to Elm Creek Road, as presented.

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

MOTION DECLARED PASSED.

COUNCIL BUSINESS

ITEM G – CONCEPT TRANSPORTATION STUDY FOR NORTH CENTRAL DAYTON (GOLD

NUGGET) S.R.#69-2007

Engineer Hanson reported that Gold Nugget, Inc. met with Staff and has requested what is expected from them to develop their property from a transportation perspective. Reference was made what would be their responsibility for improvements and/or realignment of Dayton River Road and North Diamond Lake Road. A proposal was prepared which identifies the scope, work tasks/costs, cost responsibility and schedule for the Concept Transportation Study, which Gold Nugget has agreed to fund. The total cost of the Study was estimated at $8,000. The plan is for a presentation to the Council in July or August.

MOTION: Motion made by McNeil, seconded by Hoke, to authorize the preparation of a Concept Transportation Study for North Central Dayton, to be fully paid by Gold Nugget, Inc.

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

MOTION DECLARED PASSED.

ITEM H - DRAFT 2008-2012 CAPITAL IMPROVEMENT PLANS (C.I.P.’S) S.R.#70-2007

Administrator Orduno’s report reviewed that last year was the first year the City developed a Capital Improvement Plan (CIP) that provided a comprehensive representation of the capital needs, project descriptions, and costs proposed, with priorities, for the next five years. She suggested the draft provided the information needed, so the Council can begin to make decisions about capital expenditures over the next five years. She relayed that the Park Commission has reviewed the draft CIP and the Public Safety Commission should in early June. The Department Heads were all available to answer questions.

Staff is requesting that the Council review and comment on the draft CIP, so it can be finalized for formal approval June 12th. The specifics of the CIP expenditures were detailed in the CIP Summary. Administrator Orduno asked for direction and the Council wishes on the appropriate ceiling for annual Equipment Certificate issues, as it will be necessary to develop a timeline and process for the third issue for 2008 and 2009. Mayor Anderson reviewed the prior Council’s intent to issue about $250,000 in equipment certificates for a period of 5 years, and have payments scheduled on the levy, for a perpetual funding of the capital improvement items.

Administrator Orduno mentioned some building expansion needs in the future for Public Works and the Police Department, as they are outgrowing their facilities, and the additional Fire Barn and City Hall space issues was brought up by the Council. The anticipated equipment certificate needs were reviewed, with a noted increase in the fire engine costs of $170,000, and Chief Nordmeyer explained. The Council discussed the one structure fire in three years, and wondered about a lesser fire truck or sharing services with other communities, because of the high cost of Fire Department equipment. Orduno responded about shared contracts between cities that have worked well, relaying it was a policy decision. The Council discussed combining the Public Works Department with another department or a shared facility with Rogers/Hassan. The Council suggested discussing this more at a Work Session. Orduno suggested a Facility Study be done to help answer these questions.

Other Council discussion involved the use of some General Fund revenues for Park items, because of the Park Dedication Fund being insufficient, high computer costs and recommendations for bids, and the need for over the counter protective glass for City Hall. It was suggested that be discussed at the Work Session, and it was set for 5:30 p.m., Tuesday, June 12^th, before the next Council Meeting. Each Department will go through their items for 2008 and 2009, Administrator Orduno informed.

ITEM I – RECLASSIFICATION AND RECRUITMENT OF CLERK 3 POSITION

S.R.#71-2007

Administrator Orduno reported that the City’s 15-year veteran Clerk III, Deb Geagan, has provided notice of retiring as of July 30, 2007. A review of the current position description and anticipated future needs is required to determine how to best serve both the internal and external operations of the City, and Orduno recommended the Council upgrade the position from a 32 hour/week position to a 40 hour/week position now, instead of as budgeted for 2008.

The current compensation range of $14.06 - $19.77 is less than current Metro standards for comparable cities, but since the Compensation Study will be done soon, Administrator Orduno recommended re-evaluating at that time. She suggested the job title be more appropriately changed to Finance Clerk, and that the recruitment process begin, with a hiring goal of mid-late June, since Ms. Geagan’s last working day is June 28^th. Her recommendation was for a two-week window for applications, then interviews and Council approval, to possibly allow a few days of training.

She explained that the additional 8 hours would be mostly sewer and water services, which could be funded by the Sewer/Water Fund.

MOTION: Motion made by McNeil, seconded by K. Anderson, to reclassify the Clerk III Position to a Finance Clerk and a full-time position, and authorize the commencement of the recruitment process, as presented.

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

MOTION DECLARED PASSED.

ITEM J – OPTIONS FOR C.S.A.H. #81/HOLLY LANE EXTENSION & 113^TH AVENUE

INTERSECTION IMPROVEMENTS S.R.#72-2007

Engineer Hanson reviewed that the Council at their February 27^th Meeting, requested Staff move forward to include a traffic signal at the new CSAH 81/Holly Lane Extension and 113th Avenue intersection. He reported that Ken Kuhn (Cemstone) and Michael Patterson (King Solutions, Inc.), the benefiting property owners, were invited to a May 15th meeting to review the CSAH #81 Improvements being considered at the new intersection. It was suggested by Hennepin County and City Staff that the option be reviewed with them. The property owners and Hennepin County recommended moving forward with Option A, which includes a traffic signal and expanding the existing roadbed, an additional cost over the existing option presented in the feasibility report and at the public hearing of about $360,000.

The Budget Update, dated May 2007, for Wicht Industrial Park/SW Dayton Phase IA, compares the preliminary report estimate to the low bid/estimate project costs for Contract 1 and 2 based on Option A for Contract 2. The difference between the Preliminary Report and low bid/estimate for Contract 1 & 2 is $101,990 - less than $360,000 in part due to favorable bids received last fall and the federal railroad crossing funding. Unknown costs are finalizing easement costs for Holly Lane and costs associated with Contract 2.

The next step is for the Council to decide if (Option 1) a Public Hearing should be scheduled to identify the additional cost for Option A, or if (Option 2) bids for Contract 2 should be received first, and then based on them, an updated overall project budget determines the need for a Public Hearing.

Engineer Hanson explained that Option 2, with some good bids, estimates could be low. He noted that the Miller Auto easement negotiation is still needed. There was discussion of contributing some of the costs to future development along that area, as many businesses would benefit. The Council agreed the City should bear part of the burden, since it is the whole area.

There was CONSENSUS by the Council to move forward with the CSAH #81/New Holly Extension & 113^th Avenue Intersection Improvements, and direct Staff to proceed with Option 2 - Finalize Plans/Specifications for CSAH 81 Improvements @ Holly Lane Extension and 113th Avenue based on Option A. Plans/Specifications would be approved June 26, 2007 with bids being received in July, after which, the City Council would evaluate the need for a public hearing.

Engineer Hanson reviewed that on April 24th, the Council awarded the five contracts for NE Dayton Areas 1-6 to LaTour Construction, S.R. Weidema, Kuechle Underground, Traut Well Drilling, and Landmark Structures. Staff has met with each property owner and negotiated obtaining the five easements required to construct the project, and each have verbally agreed to the terms listed. The acquisition costs are part of the project costs and will be financed by the Project.

Engineer Hanson reviewed his memo, dated May 17^th, including the considered payments for each permanent easement. He relayed that once the Council is agreeable, Staff and the Attorney’s office will prepare the appropriate documents to execute the easements and payments. The Council had questions and discussed the Baumgartner easement on the Noon Drive cul-de-sac, giving away a $22,000 utility charge for 1,000 feet, and the Kruse easement on Overlook Road, only because of it not being recorded with their plat. Engineer Hanson explained both issues. It was confirmed that the Baumgartners’ would pay the utility fee at a higher rate later. It was relayed Kruse does not want the cul-de-sac there and has requested $0.75 per sq. ft., totaling $8,750 instead of $0.50/$5,745. There was CONSENSUS by the Council to only offer the $0.50/$5,745.

Lastly, the Council discussed the Hayden Hills Golf Course and talk of a development proposal being worked on and how that could affect the City’s decision on their easement. Attorney Hoff responded to the Council’s request of memorializing something that indicates that the amount that is paid in the easement acquisition is a deferred cost of the project, which will be assessed upon future development – a development deferral. He relayed that there is a provision to do such. It was mentioned that the developer has stated that he expects he will be refunding that cost.

MOTION: Motion made by Hoke, seconded by McNeil, to direct the City Attorney to prepare purchase agreements consistent with the Bonestroo letter and discussion that occurred at the May 22^nd, 2007, Council Meeting, for presentation to property owners.

Attorney Hoff mentioned the MN Department of Human Services temporary utility easement for 14080 Rosewood Lane being granted at no cost. He explained that the Council needs to authorize that, but mentioned the provision on revocation on 90 days notice, which Engineer Hanson felt could be worked through. On the indemnification, Hoff suggested putting in a paragraph which would read at 7.3 “Nothing herein shall waive or limit the City’s rights, limits, and immunities afforded in Minnesota Statutes 466.01 at Sect.” He recommended the utility easement be approved with that change.

MOTION: Motion made by Forseth, seconded by McNeil, to approve the MN Department of Human Services utility easement, with the change stated above.

Engineer Hanson reviewed the Contract 1 was awarded to LaTour Construction in the amount of $6,951,753.26. In January, the Council held a Work Session to define the project cost for the NE Dayton Areas 1-6 Projects, and it was decided to reduce the pavement width of South Diamond Lake Road and to eliminate a storm sewer lift station and redirect the storm drainage for the area north of the golf course to the Mississippi River. Change Order 1 of Contract 1, Areas 1 & 2, is for that purpose. Staff recommends the Council approve Change Order 1, reducing the contract in the amount of $39,904.57, relaying that it is included in the project cost and bond sale.

MOTION: Motion made by McNeil, seconded by K. Anderson, to approve Change Order 1 for NE Dayton Contract 1, Areas 1 & 2, as presented, reducing the contract in the amount of $39,904.57.

Engineer Hanson reviewed that Contract 3 was awarded to Kuechle Underground in the amount of $3,456,876.57. He informed that Change Order 1 moves the sanitary sewer lift station previously designed at the west end of Overlook Road to Rivers Bend Park on the west side of Rosewood Lane, so no obtaining of an easement was necessary.

Staff is recommending the Council approve Change Order 1 for NE Dayton Contract 3, Area 5, increasing the contract in the amount of $33,429.72, due to changed site conditions and a change in the sewer piping flowing to the new lift station site. It was relayed that this cost is partially offset by the monetary value that would have been offered to the property owner for easements at the original lift station design site.

MOTION: Motion made by McNeil, seconded by Hoke, to approve Change Order 1 for NE Dayton Contract 3, Area 5, as presented, increasing the contract in the amount of $33,429.72.

Engineer Hanson passed out information regarding Contract 1, explaining that as the project is moving along, they are finding de-watering issues and challenges working with property owners. He presented a storm sewer extension proposal at Galloway Park that will be reviewed with Champlin - an addition of $22,504. Also, an issue at Raintree Plaza and their proposal to delete sewer to their two properties, would deduct about the same amount - $22,205.50. He explained that this information could become Change Order 1 for the LaTour Project. The Council got clarifications, and suggested any improvements to the drainage in the future should be Champlin’s issue.

Mayor Anderson reported on the I-94/Brockton Legislation that did not pass this session, and the setbacks because of politics. He informed a meeting will take place to strategize some ideas.

Administrator Orduno added, regarding the I-94/Brockton – Phase II Transportation Study, that the City still does not have an agreement or payment from the Beard Group for their $73,000 share of the Study, and the City continues to incur costs. The Beard Group’s attorney has not contacted Attorney Hoff, so she asked for direction from the Council. The Council suggested regrouping and holding off TAC meetings until the end of next week, or until there is knowledge of their funding. She relayed that the MnDot portion of $10,000 has probably been used up.

MOTION: Motion made by Forseth, seconded by McNeil, to halt the TAC and limit the expenditures until such time that the contribution is received or a plan.

Secondly, Administrator Orduno mentioned the Logo Contest the Council authorized, and passed out a list of dozens of entries for the slogans. She asked how the Council wanted to proceed for judging, suggesting the need for a committee to select a winner. The Council suggested each City Commission pick their five favorite, including the Council at their next meetings, and bring those back to the Council for review. Council member Forseth volunteered to help.

Chief Pietrzak reported that the last psychological test was back for part-time police officer candidate, David Eidsmo, and her requested approval for him.

MOTION: Motion made by Forseth, seconded by McNeil, to approve David Eidsmo as part-time police officer.

Chief Pietrzak reported that the Administrative tags were prepared, and that he can start issuing them tomorrow.

Planner Stwora reported on the four neighborhood meetings for the Comprehensive Plan process, totaling about 300 people, and noted that 350 surveys had been received back. She relayed that Thursday night was the Community-wide Visioning Process, and the Council was invited. She mentioned the City Commission appointment openings at the end of June; a list will be provided to the Council at their next meeting, and tentative scheduling for interviews for June 26th.

Engineer Hanson distributed the schedule for the CSAH #121 (Hayden Lake Road) closures in Champlin.