HomeMy WebLinkAbout2001-10-16 Council Regular Meeting MINUTES
OF THE REGULAR MEETING OF THE
EDINA CITY COUNCIL
HELD AT CITY HALL
OCTOBER 16, 2001
7:00 P.M.
ROLLCALL Answering rollcall were Members Hovland, Masica and Mayor Maetzold. Absent
were Members Housh and Kelly.
CONSENT AGENDA ITEMS APPROVED Motion made by Member Masica and seconded by
Member Hovland approving the Council Consent Agenda as presented with the exception of
Agenda Item V.A., Exterior Steel Siding for Arneson Acres Park Building; VI.E., Resolution
Authorizing Agreement No. PW 44-11-01 Traffic Signal at CSAH 158 and Vernon Avenue with
Hennepin County; and VI.F., Amendment and Restatement of City of Edina Flexible Benefits
Plan.
Rollcall:
Ayes: Hovland, Masica, Maetzold
Motion carried.
*MINUTES OF REGULAR MEETING OF OCTOBER 2, 2001, APPROVED Motion made by
Member Masica and seconded by Member Hovland approving the Minutes of the Regular
Meeting of the Edina City Council for October 2,2001.
Motion carried on rollcall vote - three ayes.
RESOLUTION NO. 2001-76 - APPROVING AMENDMENTS TO GRANDVIEW TAX
INCREMENT FINANCING PLAN Manager Hughes explained in August 2000, the City/HRA
established a Hazardous Substance Subdistrict (HSS#1) comprised of the Grandview Square
project. HSS#1 was established for the purpose of financing the removal of, 1) asbestos from the
buildings acquired by the HRA, and 2) contaminated soil from the project area. HSS#1 was part
of the Grandview area Tax Increment Financing District. Pursuant to state law, property taxes
generated within a hazardous substance Subdistrict may be retained by the HRA for the purpose
of environmental cleanup.
When HSS#1 was established, the HRA budgeted $1,192,000 for environmental cleanup. Mr.
Hughes reported the HRA has incurred approximately $1,100,000 to date for such cleanup. A
very small area of contaminated soil remains within the project area that will need to be removed
before winter. He stated that bids were being solicited for award on November 5, 2001. Mr.
Hughes added although staff believed the remaining work would be within the budget, they
thought it prudent to formally amend the budget accommodating any potential overrun before
awarding the bid.
Mr. Hughes noted that thirty-day notice of public hearing for the modification has been provided
to the school district and county as required by state law. He provided a memo summarizing
comments received from the county and noted no comments had been received from the school
district.
Member Hovland made a motion to close the public hearing. Member Masica seconded the
motion.
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Minutes/Edina City Council/October 16,2001
Ayes: Hovland, Masica, Maetzold
Motion carried.
Member Hovland introduced the following resolution and moved its approval:
RESOLUTION NO. 2001-76
A RESOLUTION APPROVING AMENDMENTS
TO GRANDVIEW TAX INCREMENT FINANCING PLAN
AND MAKING FINDINGS WITH RESPECT THERETO
BE IT RESOLVED by the City Council of the City of Edina,Minnesota as follows:
1. The Housing and Redevelopment Authority in and for the City of Edina, Minnesota
(the "HRA") and the City have approved a redevelopment plan, as defined in
Minnesota Statutes, Section 469.002, subdivision 16, designated as the Grandview Area
Redevelopment Plan (the "Redevelopment Plan"), and a redevelopment project to be
undertaken pursuant thereto, as defined in Minnesota Statutes, Section 469.002,
subdivision 14 designated as Grandview Redevelopment Project No. 1 (the
"Redevelopment Project"), and that in order to finance the public redevelopment costs
to be incurred by the HRA and City in connection with the Redevelopment Plan and
the Redevelopment Project,the HRA and City have approved a tax increment financing
plan, pursuant to the provisions of Minnesota Statutes, Section 469.175, designated as
Grandview Tax Increment Financing Plan (the "Financing Plan"), which establishes a
tax increment financing district, as defined in Minnesota Statutes, Section 469.174,
subdivision 9, designated by the HRA as Grandview Tax Increment Financing District
(Hennepin County No. 1202) (the "District"). On April 17, 1997, December 7, 1999, and
August 15, 2000, the HRA and City approved amendments to the Redevelopment Plan,
Redevelopment Project and Financing Plan (the "Amendments"). The Amendments
approved on August 15, 2000, establishes Hazardous Substance Subdistrict No. 1 (the
"HSS") within the District and authorizes the use of tax increment from the HSS to pay
or reimburse costs of removal and remediation actions with respect to hazardous
substances or pollutants or containments or petroleum releases affecting or which may
affect property in the HSS and other related costs and expenses of such removal or
remediation actions. It has been proposed that the HRA approve amendments to the
financing Plan, as amended by the Amendments,which is entitled "Modification #1 of
Tax Increment Financing Plan for Hazardous Substance Subdistrict No. 1" (the "2001
Amendment"). The 2001 Amendment increases the authorized amount of tax increment
revenue from the HSS to pay costs of removal and remediation actions within the HSS
and increases the authorized principal amount of bonds to be issued to finance
remediation and removal actions within the HSS.
2. This Council on October 16, 2001, held a public hearing on the 2001 amendment after
notice of the public hearing was published in the official newspaper of the City not
less than ten (10) days prior to the date of the hearing. At such public hearing all
persons desiring to be heard with respect to the 2001 Amendment were given an
opportunity to express their views with respect thereto.
3. This Council has previously found that the District is a redevelopment district within
the scope of Minnesota Statutes, Section 469.174, subdivision 10 and the HSS is a
Hazardous Substance Subdistrict created under Minnesota Statutes, Section 469.175,
subdivision 7, and the 2001 Amendment will not change such prior findings. The 2001
amendment further serves the original goals and objectives of the City and HRA in
approving the Redevelopment Plan,the Redevelopment Project and the Financing Plan
and the 2001 Amendment, by redeveloping property in the City in order to prevent or
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Minutes/Edina City Council/October 16,2001
reduce blight, blighting factors and the cause of blight, and by providing needed
public facilities.
4. Pursuant to Minnesota Statutes, Section 469.175, subdivision 4,it is hereby found that:
A. The District, is a redevelopment district, as defined in Minnesota
Statutes, Section 469.174, subdivision 10, and the HSS is a Hazardous
Substance Subdistrict created under Minnesota Statutes, Section 469.175,
subdivision 7, for the reasons set forth in previous findings by this Council,
and the 2001 Amendment does not alter these previous findings.
B. The proposed development to be undertaken in accordance with the
Redevelopment Plan, as amended by the Amendments and the 2001
Amendment, in the opinion of this Council would not occur solely through
private investment within the reasonably foreseeable future and therefore
the use of tax increment financing is deemed necessary.
C. The Financing Plan, as amended by the Amendments and the 2001
Amendment, conforms to the general plan for the development of the City as
a whole.
D. The Financing Plan, as amended by the Amendments and the 2001
Amendment, will afford maximum opportunity consistent with the sound
needs of the City as a whole for the development of the area subject to
Redevelopment Plan by private enterprise.
E. The City confirms its election of the method of tax increment
computation set forth in Minnesota Statutes, Section 469.177, subdivision 3,
clause (a) with respect to the District.
Passed by the Council this 16th day of October 2001. Member Hovland seconded the motion.
Rollcall:
Ayes: Hovland, Masica, Maetzold
Motion carried.
PUBLIC HEARING CONDUCTED ON SPECIAL ASSESSMENTS: ASSESSMENTS LEVIED
Affidavits of Notice were presented, approved and ordered placed on file. Due notice having
been given, public hearings were conducted and action taken as recorded on the following
proposed assessments:
1. STREET RECLAMATION IMPROVEMENT NO. A-189
LOCATION: School Road, Ruth Drive And West 591h Street
Analysis of Assessment for Street Reclamation Improvement No. A-189 showed fifty-one
assessable lots with a total assessment of $114,671.02. The project consisted of reclaiming the
roadway, replacing curb and gutter and aprons and repaving the roadway. The term of the
special assessment would be ten years beginning in the year 2002.
Mr. Hoffman noted that comments had been received inquiring what the Edina School District
would be contributing to this project. The entrance to Concord School is located on School Road
therefore the School District would be assessed the total of $56,256.65 for twenty-four assessable
lots.
No public comment was heard.
Member Masica made a motion seconded by Member Hovland closing the public hearing on
Improvement No. A-189.
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Minutes/Edina City Council/October 16,2001
Ayes: Hovland,Masica,Maetzold
Motion carried
Motion made by Member Hovland and seconded by Member Masica approving the
assessment of Improvement No. A-189,as presented.
Rollcall:
Ayes: Hovland, Masica, Maetzold
Motion carried. (Assessment levied by Resolution later in Minutes)
2. STREET RECLAMATION IMPROVEMENT NO. BA-304
LOCATION: West 65th Street,Valley View Road To France Avenue
Analysis of Assessment for Street Reclamation Improvement No. BA-304 is $64,885.56, based
upon 961,778 square feet. The project included reclamation of the roadway and the addition of a
sidewalk. The term of the special assessment would be ten years beginning in 2002.
No written or public comments were received.
Member Hovland made a motion seconded by Member Masica closing the public hearing on
Improvement No. BA-304.
Ayes: Hovland, Masica, Maetzold
Motion carried.
Motion made by Member Masica and seconded by Member Hovland approving the
assessment of Improvement No. BA-304,as presented.
Rollcall:
Ayes: Hovland, Masica, Maetzold
Motion carried. (Assessment levied by Resolution later in Minutes)
3. STREET RECLAMATION IMPROVEMENT NO. BA-322
LOCATION: Drew Avenue
Analysis of Assessment for Street Reclamation Improvement No. BA-322, for Drew Avenue
showed a total assessment of $128,842.35 with 855,040 assessable square feet at $0.15. The street
improvement project included paving the road surface, curb and gutter, including a paved
pathway and re-landscaping of the area. The term of the special assessment will be ten years
beginning in the year 2002.
No written or public comments were heard.
Member Masica made a motion seconded by Member Hovland closing the public hearing on
Improvement No. BA-322.
Ayes: Hovland, Masica, Maetzold
Motion carried.
Motion made by Member Hovland and seconded by Member Masica approving the
assessment of Street Improvement No. BA-322,as presented.
Rollcall:
Ayes: Hovland, Masica, Maetzold
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Minutes/Edina City Council/October 16,2001
Motion carried. (Assessment levied by Resolution later in Minutes)
* 4. MAINTENANCE IMPROVEMENT NO. MG-01 CONTINUED TO NOVEMBER 20,
2001 Motion made by Member Masica and seconded by Member Hovland continuing the
public hearing for Maintenance Improvement No. M-01 - 501h & France Avenue Business
District to November 20,2001.
Motion carried on rollcall vote- three ayes.
5. MAINTENANCE IMPROVEMENT NO. MG-01 - GRANDVIEW LANE BUSINESS
DISTRICT
LOCATION: Grandview Lane Business District
Analysis for Assessment for Maintenance Improvement No. MG-01 showed a total cost of
$17,628.38 against 311,344 square feet at$0.0566 per square foot. One year assessment payable in
2002.
No written or public comments were received.
Member Hovland made a motion seconded by Member Masica closing the public hearing on
Improvement No. MG-01.
Ayes: Hovland, Masica, Maetzold
Motion carried.
Motion made by Member Masica and seconded by Member Hovland approving the
assessment of Maintenance Improvement No. MG-01, as presented.
Rollcall:
Ayes: Hovland, Masica, Maetzold
Motion carried. (Assessment levied by Resolution later in Minutes)
6. TREE REMOVAL IMPROVEMENT NO. TR-01
LOCATION: 5904 Wooddale Avenue, 4229 Country Club Road, 4017 Morningside Road,
4302 Eton Place And 4301 Morningside Road
Analysis of Assessment for Tree Removal Improvement No. TR-01 showed five parcels assessed
as follows for removal of diseased elm trees:
5904 Wooddale Avenue $1,033.05 3 year assessment
4229 Country Club Road $ 745.50 3 year assessment
4017 Morningside $ 426.00 3 year assessment
4302 Eton Place $ 426.00 3 year assessment
4301 Morningside Road $2,103.40 3 year assessment
No written or public comments were heard.
Motion made by Member Hovland and seconded by Member Masica closing the public
hearing for assessment of Improvement No. TR-01.
Ayes: Hovland, Masica, Maetzold
Motion carried.
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Minutes/Edina City Council/October 16,2001
Motion made by Member Hovland and seconded by Member Masica approving the
assessment of Improvement No. TR-01,as presented.
Rollcall:
Ayes: Hovland, Masica, Maetzold
Motion carried. (Assessment levied by Resolution later in Minutes)
7. AQUATIC WEEDS IMPROVEMENT NO. AQ-01
LOCATION: Arrowhead, Indianhead Lakes and Minnehaha Creek Millpond
The area proposed to be assessed for said improvement contains all lots riparian to Arrowhead
Lake, Indianhead Lake and Minnehaha Creek Millpond.
ARROWHEAD LAKE ASSESSMENT
Analysis of Assessment for Aquatic Weeds Improvement No. AQ-01 for Arrowhead Lake
chemical treatment showed a total of $8,932.57 proposed to be assessed against 33 homes at
$270.68 per home. One year assessment payable in 2002.
Alan Cater, 6316 Post Lane, commented he lived on the west end of Arrowhead Lake. The east
end of the lake looked great. He stated his belief that other methods of treatment would be more
effective especially on the east end. Vince Cockriel, Park Superintendent explained the west end
of Arrowhead Lake was deeper and traditional methods of weed treatment do not work. Mr.
Cater noted other concerns with the pond. Mr. Cockriel said the DNR has control of the pond
and the concerns would need to be directed to them.
No written comments were received.
Motion made by Member Masica and seconded by Member Hovland closing the public
hearing on Improvement No. AQ-01.
Ayes: Hovland, Masica,Maetzold
Motion carried.
Motion made by Member Masica and seconded by Member Hovland approving the
assessment of Improvement No. AQ-01,as presented.
Rollcall:
Ayes: Hovland, Masica, Maetzold
Motion carried. (Assessment levied by Resolution later in Minutes)
INDIANHEAD LAKE
Analysis of Assessment for Aquatic Weeds Improvement No. AQ-01 for Indianhead Lake
showed a total cost of $12,527.97 against 33 homes at $379.64 per home. One year assessment
payable in 2002.
No written or public comments were received.
Motion made by Member Masica and seconded by Member Hovland closing the public
hearing on Improvement No. AQ-01.
Ayes: Hovland, Masica, Maetzold
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Minutes/Edina City Council/October 16,2001
Motion carried.
Motion made by Member Masica and seconded by Member Hovland approving the
assessment of Improvement No. AQ-01,as presented.
Rollcall:
Ayes: Hovland, Masica, Maetzold
Motion carried. (Assessment levied by Resolution later in Minutes)
MINNEHAHA CREEK MILLPOND
Analysis of Assessment for Aquatic Weeds Improvement No. AQ-01 for Minnehaha Creek
Millpond showed a total cost of $6,442.58 against 63 homes at $102.26 per home. One year
assessment payable in 2002.
No written or public comments were received.
Motion made by Member Masica and seconded by Member Hovland closing the public
hearing on Improvement No. AQ-01.
Ayes: Hovland, Masica Maetzold
Motion carried.
Motion made by Member Masica and seconded by Member Hovland approving the
assessment of Improvement No. AQ-01 as presented.
Rollcall:
Ayes: Hovland, Masica, Maetzold
Motion carried. (Assessment levied by Resolution later in Minutes)
The proposed assessment rolls were now on file in the office of the City Clerk and open to public
inspection.
Following the presentation of the analysis of assessments and approval, Member Masica
introduced the following resolution and moved its adoption:
RESOLUTION NO. 2001-77
RESOLUTION LEVYING SPECIAL ASSESSMENTS
FOR VARIOUS PUBLIC IMPROVEMENTS AND PROJECTS
WHEREAS, pursuant to proper notice duly given as required by law, the Edina City Council
has met and heard and passed upon all written and oral objections to the proposed
assessments for improvements listed below:
Street Improvement No. A-189
Street Improvement No. BA-304
Street Improvement No. BA-322
Maintenance Improvement No. MG-01
Tree Removal Improvement No. TR-01
Aquatic Weeds Improvement No. AQ-01
BE IT RESOLVED by the City Council of the City of Edina, Minnesota, as follows:
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1. Each assessment as set forth in the assessment rolls on file in the office of the City Clerk for
each aforementioned improvement is hereby accepted and shall constitute the special
assessment against the lands named therein, and each tract of land therein included is hereby
found to be benefited by the improvement in the amount of the assessment levied against it.
2.The assessment shall be payable in equal installments,the first of said installments together
with interest at a rate of seven and one-half percent (711/z%) per annum, on the entire
assessment from the date hereof to December 31,2002,to be payable with the general taxes for
the year 2002. To each subsequent installment shall be added interest at the above rate for one
year on all unpaid installments. The number of such annual installments shall be as follows:
NAME OF IMPROVEMENT NO. OF INSTALLMENTS
Street Improvement No. A-189,Levy No.15228 10 years
Street Improvement No. BA-304, Levy No. 15229 10 years
Street Improvement No. BA-322, Levy No. 15230 10 years
Maintenance Improvement No. MG-01,Levy No.15224 1 year
Tree Removal Improvement No. TR-01,Levy No.15231 3 years
Aquatic Weeds Improvement No. AQ-01,Levy No.15225 1 year
3. The owner of any property so assessed may, at any time prior to certification of assessment
to the County Auditor, pay the whole of the assessment on such property, with interest
accrued to the date of payment,to the City Treasurer,except that no interest shall be charged if
the entire assessment is paid within 30 days from the adoption of this resolution and they
may, at any time thereafter, pay to the City Treasurer the entire amount of the assessment
remaining unpaid,with interest accrued to December 31 of the year in which such payment is
made. Such payment must be made before November 15 or interest will be charged through
December 31 of the next succeeding year.
4. The clerk shall forthwith transmit a certified duplicate of this assessment to the County
Auditor to be extended on the property tax lists of the County. Such assessment shall be
collected and paid over in the same manner as other municipal taxes.
Adopted this 16th day of October 2001.
Member Hovland seconded the motion.
Rollcall:
Ayes: Hovland, Masica, Maetzold
Motion carried.
RESOLUTION NO. 2001-78 APPROVING FINAL PLAT - OLDE VERNON THIRD
ADDITION AND RESOLUTION NO. 2001-79 APPROVING THE PRELIMINARY PLAT FOR
OLDE VERNON II, LEO EVANS, ET AL, (SOUTHEAST QUADRANT OF VERNON
AVENUE AND OLINGER ROAD) Affidavits of Notice were presented, approved and ordered
placed on file.
Presentation by Planner
Planner Larsen explained in 1997 the Council approved 26 units on the site. The City has
received a request for the development of the two additional units on the westerly portion of the
property bringing the total units requested to 28. The request also included Final Plat approval
for Olde Vernon 3rd Addition for three building sites on the westerly part of the site that were
part of the overall development plan. The Planning Commission considered the request at their
September 26, 2001, meeting and recommended approval of the Final Plat of Olde Vernon 3rd
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Minutes/Edina City Council/October 16,2001
Addition and approval of the amendment to the overall development plan adding the two
additional units. The Planning Commission conditioned their approval upon all of the units
becoming part of the Olde Vernon Homeowners Association. Fred Richards, Attorney,
represented the property owner, Leo Evans.
Fred Richards, Attorney, 7225 Fleetwood Drive, representing Leo Evans, asked why should a
current Council depart from a decision made by a past Council. The proposal first came forward
for 26 units and now two additional lots were being requested. Mr. Richards stated this was an
attempt to complete the unfinished picture. He added the same builder would complete the last
two units. The density would hardly be affected with the addition of the two units, which will
enhance the area giving a finished look to the development. Mr. Richards pointed out that no
variances would be needed and that the Homeowners Association of Olde Vernon, City staff,
and the Planning Commission all have recommended approval of the proposal.
Council comment
Member Masica asked what had changed since the proposal was approved. Mr. Richards
answered the project was built and the Homeowners Association does not want to maintain the
open space. Member Masica asked why the association did not want the open space. Mr.
Richards added the association was not troubled with the addition of two homes. Member
Masica inquired whether a walking path had ever been included in the proposal. Mayor
Maetzold recalled it was just an idea early in the development of the area, but had not been part
of the final approval of the development.
Mayor Maetzold asked for more elaboration on the necessity of this type of development. Mr.
Richards commented this type of home was in high demand by families wishing to stay in Edina
in a single family home,but without outside work.
Member Masica asked if Leo Evans would be considering the purchase of the Wegner property.
Mr. Richards said assuming the Preliminary Plat and Final Plat proposals receive approval, Mr.
Evans sold all his property in Edina and has no intention of being further involved. Member
Masica asked for more information on the walking path. Mr. Larsen said the original 1996
proposal depicted 34 units in two-unit buildings with a path down to a gazebo on Hawkes Lake.
The proposal would not have been approved because buildings are not allowed to be built within
100 feet of a body of water
Member Hovland asked if the zoning requirements were met. Mr. Larsen answered the district
was PCD-1, the lowest density, multi-family zone, and with the addition of the two units the
proposal would meet zoning requirements. Mr. Hovland inquired whether any variances were
required. Mr. Larsen answered no.. Member Hovland asked if the current landscaping complies.
Mr. Larsen stated the City believes this to be an uncompleted project. Member Hovland said
correspondence has been received requesting that Outlot A be kept as open space. Does the City
have any jurisdiction over keeping the open space. Attorney Gilligan said no. Member Hovland
asked if another development plan could come forward. Mr. Gilligan said yes.
Mayor Maetzold questioned whether the original plan with 34 units exited onto Olinger. Mr.
Larsen said yes.
Member Masica inquired whether there was a legal definition of an outlot. Mr. Larsen said it was
historically not a buildable lot. Member Masica commented about a letter in the packet from a
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Minutes/Edina City Council/October 16,2001
resident who was not informed of the Planning Commission meeting. Mr. Larsen said there was
no requirement to notify residents of a Planning Commission meeting, only a public hearing
before the Council.
Resident comment
Tom Seifert, 5901 Merold Drive, said a proposal came forward in 1982 for the 9.8 acres with 26
lots and in 1996 a proposal was presented for 34 units. Originally, the area was zoned R-1 and the
developer asked that the property be rezoned to PCD-1. The plan for 34 units was deemed too
dense and ultimately 26 units were approved. In 1998, the corner parcel was the subject of
discussion of how many units could be allowed on the property. Mr. Seifert stated the number of
units had been determined to be 26 in 1982, 1996 and 1998. He asked the Council to deny the
request for a change in the number of units and maintain the 26 as previously approved.
Dennis Wegner, 5705 Olinger Road, said he would also like this development finished.
Comments have been made that the rear part of his property was perceived, both from the air
and from the contractor's, to be part of Olde Vernon. He reiterated that in the future, a request
would be forthcoming asking to subdivide his property.
Rick Solum, Olde Vernon resident and president of the association, said residents of Olde Vernon
would like this plat approved. He stated the Old Vernon Association believes the best use of the
parcel would be for five lots.
Member Masica made a motion, seconded by Member Hovland to close the public hearing.
Ayes: Hovland, Masica, Maetzold
Motion carried.
Mayor Maetzold said he agreed that 28 units fit the area. He noted this type of development was
very desirable for Edina. He stated he sees no reason not to approve this request.
Member Hovland explained the reason he voted in 1998 for no expansion was that only two units
had been constructed and the type of development was a new concept. Now that the
construction can be viewed he would approve the plan as proposed for Olde Vernon 3rd addition
and change the number of units from 26 to 28. Member Hovland noted the request met all the
Edina Code requirements.
Member Masica indicated she saw no compelling reason why this parcel should not be
developed as presented. She added the tax base would increase, as well as finishing up an
unfinished piece of property. She would like a tree line as a buffer between the two areas, and
consistency, uniformity and quality of construction to be maintained on the two additional lots.
Mr. Larsen explained a landscape plan was in place for the first two phases and staff will re-
verify the plan.
Member Masica introduced the following resolution approving the final plat for Olde Vernon
3rd Addition; conditioned upon its inclusion into the Olde Vernon Homeowners Association
and moved its adoption:
RESOLUTION NO. 2001-78
A RESOLUTION APPROVING
FINAL PLAT FOR OLDE VERNON 3rd ADDITION
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Minutes/Edina City Council/October 16,2001
BE IT RESOLVED by the City Council of the City of Edina, Minnesota that that certain
plat entitled, "Olde Vernon 3rd", platted by Leo Evans, et al, and presented at the regular
meeting of the City Council on October 16,2001, be and is hereby granted final plat approval.
BE IT FURTHER RESOLVED that the approval of the Final Plat of Old Vernon 3rd is
conditioned upon the lots being made a part of the Olde Vernon Homeowners Association.
Passed and adopted this 161h day of October 2001.
Rollcall:
Ayes: Hovland, Masica, Maetzold
Motion carried.
Member Hovland introduced the following resolution and moved its adoption:
RESOLUTION NO. 2001-79
A RESOLUTION APPROVING
PRELIMINARY PLAT FOR
OLDE VERNON II, LEO EVANS, ET AL
BE IT RESOLVED by the City Council of the City of Edina,Minnesota,that that certain
plat entitled, "OLDE VERNON II", platted by LEO EVANS, ET AL, and presented at the
regular meeting of the City Council on October 16, 2001, be and is hereby granted preliminary
plat approval conditioned upon inclusion of Olde Vernon II in the Olde Vernon Homeowners
Association.
Passed and adopted by the Edina City Council on the 161h day of October 2001.
Member Masica seconded the motion.
Rollcall:
Ayes: Hovland, Masica, Maetzold
Motion carried.
VARIANCE APPEAL FRONT YARD SETBACK VARIANCE FOR 5705 EWING AVENUE
SOUTH STREET Affidavits of Notice were presented, approved and ordered placed on file.
Presentation by Assistant Planner
Assistant Planner Aaker explained that the Zoning Board of Appeals heard the request from Judi
and Brent Gray of 5705 Ewing Avenue for a 4-foot front yard setback variance to allow a tuck-
under garage with a first and second floor expansion on September 6, 2001. Two members voted
to allow the setback variance and two voted against the request. The Board decided to continue
action on the item to allow the homeowner to amend their request. The Grays came back before
the September 20, 2001 Zoning Board having moved their addition back four feet, but still asking
for a variance to construct a front entry overhang supported by columns that would encroach
into the front yard setback by four feet. The Zoning Board unanimously approved the variance
for the modified plan.
Ms. Aaker reported that Steven and Amy Friedrichs of 5701 Ewing Avenue (north of the subject
property) appealed the variance on September 28, 2001, stating their objection was the addition
would result in an obstruction of views from the Friedrichs home. Ms. Aaker noted receipt of an
e-mail from David Standberg, 3708 West 57th Street, opposing the variance. The Planning
Department also received e-mails from Del Steckler of 5709 Ewing Avenue and Greg Peters of
5700 Ewing Avenue supporting the variance request.
Member Hovland asked if this type of variance has become common for the Zoning Board to
approve. Ms. Aaker replied that the Board has previously granted several variances where an
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overhanging entry was allowed to encroach into the setback as long as it was only supported by
posts.
Resident Comments
Brent Gray, 5705 Ewing Avenue, proponent presented data he had compiled of his contacts and
attempted contacts with the Friedrichs regarding the proposed addition, variance and the
subsequent appeal of the variance. Mr. Gray stated he did not agree that the Friedrichs sight line
would be compromised because:
➢ An arborvitae currently in the Gray's front yard on the north side next to the house is six
feet in front of the house and ten feet tall.
➢ The Friedrichs have bushes on either side of their front stoop that extend approximately
four feet from the front of their house.
➢ The southerly neighbor, Del Steckler has a hedge that is six and one half feet tall and runs
from the back of the property all the way to Ewing Avenue.
➢ The proposed entry will be an overhand only supported by pillars and not solid walls.
Steve Friedrichs, 5701 Ewing Avenue, appellant, stated that he objected to not being notified of
the second zoning board meetings. Mr. Friedrichs explained that his objections to the variance
included:
➢ The height of the proposed entryway canopy and pillars;
➢ Railings on the steps will also be intrusive;
➢ Overall objection to the addition height; and
➢ Criteria for variance was not met-no undue hardship demonstrated.
Mr. Friedrichs went on to say that the addition will have three exposed floors. He felt that a huge
shadow would be cast on his home by the large addition. Mayor Maetzold and Member
Hovland both explained that the only thing under consideration was the entry overhang, which
caused the variance. The addition was not an issue at this hearing.
James Whitter, Architect for proponent, stated the Grays have been before the Zoning Board two
times. They met with the Friedrichs after the first meeting and showed them the proposed plans.
The only way to create a proper entry on the Grays home is to use the overhang. Mr. Whitter
stated he felt the addition was an improvement to the house design.
Member Hovland noted that the hardship as he understood it in this case was the existing
home's entry was at the setback and if the owners were to meet the Code requirement with the
addition the entire existing house would need to be moved back four feet.
Member Masica agreed and added that she thought a compromise has already been offered since
the original design had been pushed back.
Member Masica made a motion closing the public hearing seconded by Member Hovland.
Ayes: Hovland, Masica, Maetzold
Motion carried.
Member Hovland introduced the following resolution and moved its adoption:
RESOLUTION NO. 2001-80
GRANTING VARIANCE FROM
FRONT YARD SETBACK FOR
5705 EWING AVENUE SOUTH
Page 12
Minutes/Edina City Council/October 16,2001
WHEREAS, the Edina Zoning Board of Appeals met and unanimously approved the request
for a four-foot front yard setback variance from Brent and Judi Gray of 5705 Ewing Avenue
South; and
WHEREAS, Steve and Amy Friedrichs, 5701 Ewing Avenue appealed the aforementioned
variance on September 28, 2001; and
WHEREAS, the Edina City Council heard the objections at a public hearing on October 16,
2001.
NOW, THEREFORE BE IT RESOLVED by the Edina City Council that the four-foot front yard
set back variance to allow the construction of a front entry overhang supported by posts is
hereby granted and approved.
Passed and adopted this 161h day of October 2001.
Member Masica seconded the motion.
Ayes: Hovland, Masica, Maetzold
Motion carried.
*PRELIMINARY PLAT CONTINUED TO NOVEMBER 5, 2001, FOR PARKWOOD KNOLLS
26TH ADDITION, REPLAT OF OUTLOT A PARKWOOD KNOLLS 25TH ADDITION -
PARKWOOD KNOLLS CONSTRUCTION COMPANY Motion made by Member Masica and
seconded by Member Hovland to continue the Preliminary Plat for Parkwood Knolls 26th
Addition, Replat of Outlot A Parkwood Knolls 25th Addition for Parkwood Knolls
Construction Company to November 5,2001.
Motion carried on rollcall vote - three ayes.
*ORDINANCE NO. 2001-8 CONTINUED TO NOVEMBER 5, 2001 - AMENDING SECTION
900 LIQUOR OF THE CITY OF EDINA CODE OF ORDINANCES Motion made by Member
Masica and seconded by Member Hovland to continue Ordinance No. 2001-8, Amending
Section 900 Liquor of the City of Edina Code of Ordinances to November 5,2001.
Motion carried on rollcall vote- three ayes.
AWARD OF BID CONTINUED TO NOVEMBER 5, 2001, FOR EXTERIOR STEEL SIDING
FOR ARNESON ACRES PARK BUILDING Member Hovland asked the award of bid for
exterior steel siding for the Arneson Acres Park Building be removed from the consent agenda
for further information. Mr. Hughes noted that the project would be completed this fall with steel
siding. Steel siding was chosen because it would be maintenance free and would match the
greenhouse on the Arneson Acres grounds. If another siding material were considered, the
project would need to be completed in the spring.
Member Hovland asked the award of bid be continued until the November 2, 2001 meeting
allowing further examination of the building to see if another product might work better.
Member Hovland made a motion to continue the award of bid for exterior steel siding for the
Arneson Acres Park Building to November 5,2001. Member Masica seconded the motion.
Ayes: Hovland, Masica, Maetzold
Motion carried.
Page 13
Minutes/Edina City Council/October 16,2001
TRAFFIC SAFETY STAFF REVIEW FOR OCTOBER 1, 2001, APPROVED Coordinator
Bongaarts shared information regarding traffic counts in the Parkwood Knolls area. The area
consisted of approximately 547 homes in 1999. Parkwood Knolls has several entrances.
1. Dovre Drive receives a high volume of traffic from 4-6 P.M. Monday through
Friday. The count taken during that time was 1746.
2. Malibu Drive takes the brunt of the Dovre Drive traffic.
3. Interlachen Boulevard empties onto Blake Road (northeast entrance).
4. Idylwood -carries local traffic (128 cars/day).
5. Knoll Drive-carries local traffic (62 cars/day).
6. View Lane- traffic counts are less today than in 1999.
7. Schaefer Road - traffic counts are less today than in 1999.
8. Sauder Circle- traffic counts are less today than in 1999.
Mr. Bongaarts explained these figures were not out of line. He reported results of one license
plate check he completed; of the 71 vehicles he checked, 52 were licensed to Edina; 15 were
outside of Edina and four were unknown. Comparing the speed surveys with 1999 resulted in a
drop of speed of up to three miles per hour. Mr. Bongaarts presented a breakdown of the 6,801
cars surveyed on each street operating ten miles per hour over the speed limit.
Member Hovland asked what conclusion could be drawn for speed control in the area. Mr.
Bongaarts said what would probably be the best thing would be speed humps.
Member Masica asked if this area was suffering more than other areas in Edina. Mr. Bongaarts
said Mn/DOT has taken traffic counts of State Aid streets and the traffic numbers were amazing.
He added that numbers would be examined following the installation of the Vernon/Gleason
signals. He suggested that sidewalks need to be installed in the area.
Mr. Hughes noted the traffic consultant had talked about traffic calming options, but not about
when they were warranted. He encouraged waiting until the signals were installed to see what
the impact was on the area.
Member Masica made a motion approving the October 1, 2001, Traffic Safety Staff Review,
Section A:
1. Installation of fluorescent yellow-green 'school advance' signs on Doncaster
Way to serve as reminders of the school and the possibility of children in the
immediate area;
2. Installation of 'left turn only' arrow for traffic turning left to westbound Vernon
in the left northbound Interlachen Lane. The right northbound Interlachen Lane
to be designated for straight ahead traffic and traffic making right turns to
eastbound Vernon. Staff recommends installation of no parking signs from
Vernon to Brookside on east side of Interlachen Boulevard and complies with
the City's on-street parking policy for commercial areas;
Section B and C. Member Hovland seconded the motion.
Ayes: Hovland, Masica,Maetzold
Motion carried.
Page 14
Minutes/Edina City Council/October 16,2001
ON-SALE INTOXICATING LIQUOR LICENSE APPROVED - P.RCHANG'S CHINA
BISTRO, INC. Mr. Hughes said P.F.Chang's China Bistro, Inc., has applied for an on-sale
intoxicating liquor license and on-sale Sunday license for period October 17, 2001 until March 31,
2002. They will occupy space in the new addition at Southdale Shopping Center. Mr. Hughes
explained the Planning Department, Health Department and Police Department have
investigated the application and recommend approval.
Member Masica made a motion to close the public hearing on the on-sale intoxicating liquor
license and on-sale Sunday license to P.F. Chang's. Member Hovland seconded the motion.
Ayes: Hovland, Masica, Maetzold
Motion carried.
Member Hovland made a motion approving the on-sale intoxicating liquor license and on-sale
Sunday license to P.F. Chang's China Bistro, Inc., dba/P.F.Chang's located in the Southdale
Center for period October 17,2001,until March 31,2002. Member Masica seconded the motion.
Ayes: Hovland, Masica, Maetzold
Motion carried.
'RESOLUTION NO. 2001-81 SETTING HEARING DATE OF NOVEMBER 20, 2001, FOR
VACATION OF PORTION OF SPRUCE ROAD Motion made by Member Masica and
seconded by Member Hovland introducing the following resolution and moving its adoption:
RESOLUTION NO. 2001-81
CALLING FOR PUBLIC HEARING
ON VACATION OF PUBLIC STREET RIGHT-OF-WAY
FOR PORTION OF SPRUCE ROAD
BE IT RESOLVED by the City Council of the City of Edina as follows:
1. It is hereby found and determined that the following described property should be
considered for vacation in accordance with the provisions of Minnesota Statutes,
Section 160.29 and 462.348, Subd. 7:
2. This Council shall meet at 7:00 P.M. on the 20th day of November, for the purpose of
holding a public hearing on whether such vacation shall be made in the interest of the
public.
3. The City Clerk is authorized and directed to cause notice of said hearing to be
published once a week for two weeks in the Edina Sun-Current, the official newspaper
of the City, to post such notice, in at least three public and conspicuous places, as
11 in substantial) the following
provided in Minnesota Statutes. Such notice shall be
P Y g
form:
(Official Publication)
CITY OF EDINA
4801 WEST 50TH STREET
EDINA, MINNESOTA 55424
NOTICE OF PUBLIC HEARING ON VACATION OF PORTION
OF PUBLIC STREET RIGHT-OF-WAY
(SPRUCE ROAD) IN THE CITY OF EDINA,
HENNEPIN COUNTY, MINNESOTA
NOTICE IS HEREBY GIVEN that the City Council of the City of Edina, Minnesota will meet
on November 20th, 2001, at 7:00 P.M. in the Council Chambers at 4801 West 50th Street for a
public hearing for the proposed vacation of the following described portion of spruce Road
street right-of-way:
Page 15
Minutes/Edina City Council/October 16,2001
PROPOSED SPRUCE ROAD VACATION DESCRIPTION:
That part of Spruce Road lying west of the northerly extension of the east line of
Block 3, Mendelssohn, according to the recorded plat thereof,Hennepin County,
Minnesota, and east of the northerly extension of the west line of said Block 3;
and
PROPOSED ALLEY VACATION DESCRIPTION:
That part of the Alley through Block 3, Mendelssohn, according to the recorded
plat thereof, Hennepin County, Minnesota, lying north of the easterly extension
of Lot 2,said Block 3,and lying south of the north line of said Block 3.
PROPOSED ARTHUR STREET VACATION DESCRIPTION:
That part of Arthur Street lying south of the southerly line of Spruce Road and
northerly of a circle with a radius of 45.00 feet, the center of said circle is
described as follows:
Commencing at the southwest corner of Lot 2, Block 3, MENDELSSOHN,
according to the recorded plat thereof, Hennepin County, Minnesota:
thence North 00 degrees 07 minutes 48 seconds West along the west line of
said Block 3, assumed bearing, a distance of 78.40 feet; thence South 89
degrees 52 minutes 12 seconds West a distance of 20.00 feet to the center of
said circle
All persons who desire to be heard with respect to the question of whether or not the above
proposed street right-of-way and utility and drainage vacation is in the public interest and
should be made, shall be heard at said time and place. The Council shall consider the extent to
which such proposed street vacation affects existing easements within the area of the
proposed vacation and the extent to which the vacation affects the authority of any person,
corporation, or municipality owning or controlling electric,telephone or cable television poles
and lines, gas and sewer lines, or water pipes, mains, and hydrants on or under the area of the
proposed vacation, to continue maintaining the same or to enter upon such easement area or
portion thereof vacated to maintain, repair, replace, remove, or otherwise attend thereto, for
the purpose of specifying, in any such vacation resolution, the extent to which any or all of
such easement, and such authority to maintain, and to enter upon the area of the proposed
vacation, shall continue.
Adopted this 16th day of October 2001.
Motion carried on rollcall vote-three ayes.
*D'AMICO APPEAL OF LIQUOR ADMINISTRATIVE PENALTY CONTINUED TO
NOVEMBER 5, 2001 Motion made by Member Masica and seconded by Member Hovland
approving continuing the appeal by D'Amico of a liquor administrative penalty to November
5,2001.
Motion carried on rollcall vote- three ayes.
RESOLUTION NO. 2001-69 AUTHORIZING AGREEMENT NO. PW 44-11-01 TRAFFIC
SIGNAL AT CSAH 158 AND VERNON AVENUE WITH HENNEPIN COUNTY Member
Hovland asked removal of the Traffic Signal at CSAH 158 and Vernon Avenue with Hennepin
County (PW 44-11-01) from the consent agenda for additional information. Mr. Hughes
explained on September 4, 2001, the Hennepin County Board approved a City request to have a
traffic signal installed at Vernon Avenue and Gleason Road intersection. The County sent an
administrative agreement to the City for execution with five major points. Following review City
staff recommended the Mayor and Manager be authorized to sign the Cooperative Agreement.
He said staff concluded we would proceed with the installation with the understanding that no
funds would be contributed from the County.
Page 16
Minutes/Edina City Council/October 16,2001
Assistant Engineer Houle indicated the cost of the signal was $138,000.00 and will be paid for out
of State Aid Funds. The County will provide $15,000.00 for cabinet controllers, etc.
Member Hovland introduced the following resolution and moved its adoption and
authorizing the Mayor and Manager to sign the cooperative agreement for the
Vernon/Gleason traffic signal:
RESOLUTION NO. 2001-69
A RESOLUTION APPROVING
CONSTRUCTION COOPERATIVE AGREEMENT
FOR VERNON AVENUE (CSAH 158) AND GLEASON ROAD
AGREEMENT NO. PW 44-11-01
WHEREAS, the City of Edina and Hennepin County have been working on a traffic
signal control system at Vernon Avenue (CSAH 158) and Gleason Road; and
WHEREAS, the City of Edina desires to install said traffic signal and Hennepin County
has provided a construction agreement to allow for such installation; and
NOW THEREFORE, BE IT RESOLVED, that the City of Edina recommends that a
traffic signal be installed at the Vernon Avenue and Gleason Road intersection by the City of
Edina and authorize the Mayor and Manager to sign said agreement No. PW 44-11-01.
Passed and adopted this 16th day of October 2001.
Member Masica seconded the motion.
Ayes: Hovland, Masica, Maetzold
Motion carried.
RESOLUTION NO. 2001-61, APPROVED, AMENDING AND RESTATING THE CITY OF
EDINA'S FLEXIBLE BENEFITS PLAN Member Masica asked removal of the Amendment and
Restatement of City of Edina Flexible Benefits Plan from the Consent Agenda for further
information.
Mr. Hughes explained the purpose of the resolution was to comply with ERISA (Employment
Retirement Insurance Security Act) and the DOL (Department of Labor) which require every ten
years that a Flexible Benefits Plan was in effect, the local entity restate and distribute the plan to
participating employees.
Member Masica introduced the following resolution and moved its adoption.
RESOLUTION NO. 2001-61
A RESOLUTION AMENDING/RESTATING
THE CITY OF EDINA'S FLEXIBLE BENEFIT PLAN
WHEREAS, the City of Edina previously adopted the City of Edina Flexible Benefit
Plan on March 1,1990; and
WHEREAS, the City of Edina desires to amend and restate such Plan as presented to
the Board of Directors; and
NOW, THEREFORE, BE IT RESOLVED, that the City of Edina Flexible Benefit Plan be
and the same is amended, restated and adopted in the form presented to the Board of
Directors, effective as of January 1, 2002;and
BE IT FURTHER RESOLVED, that any authorized persons of the City are hereby
authorized to make such contributions from the funds of the City as are necessary to carry out
the provisions of said plan at any time; and
BE IT FURTHER RESOLVED, that in the event any conflict arises between the
provisions of said Plan and the Employee Retirement Income Security Act of 1974 (ERISA) or
Page 17
Minutes/Edina City Council/October 16,2001
any other applicable law or regulation (as such law or regulation may be interpreted or
amended), the Company shall resolve such conflict in a manner which complies with ERISA
or such law or regulation.
Adopted this 16th day of October 2001.
Member Hovland seconded the motion.
Ayes: Hovland, Masica,Maetzold
Motion carried.
FIREARMS PERMIT REQUEST DENIED Chief Siitari stated the resident at 6504 Aspen Road
requested a permit to allow use of a pellet gun or .22 caliber rifle to shoot raccoons or opossums
trapped in his yard. Section 1000.03 of the City Code prohibits the discharge of weapons in any
part of the City without a permit from the Council.
Mr. Siitari said raccoons were a protected animal under MN State Statute, Section 97B.655, but
the statute would allow property owners to take raccoons or opossums that were causing
damage. If an opossum was killed, a conservation officer must be notified within 24 hours. The
resident stated in his October 4, 2001, letter that he feeds birds, which has attracted the animals.
Mr. Siitari stated he recommended the requester remove the birdseed or trap and release the
animals.
Member Masica made a motion denying the request by a resident at 6504 Aspen Road to shoot
nuisance animals with a pellet gun or.22 caliber rifle. Member Hovland seconded the motion.
Ayes: Hovland,Masica, Maetzold
Motion carried.
*RESOLUTION NO. 2001-82 APPROVING SIDEWALK IMPROVEMENT PROTECT S-082,
(5615 WOODCREST DRIVE) Member Masica introduced the following resolution seconded
by Member Hovland:
RESOLUTION NO. 2001-82
ORDERING SIDEWALK IMPROVEMENT NO.S-082
5615 WOODCREST DRIVE
WHEREAS, Mr. and Mrs. Charles Hann, 5615 Woodcrest Drive petitioned by letter
dated July 26, 2001, to the Mayor and City Council, requesting sidewalk replacement at 5615
Woodcrest Drive due to settling of the panels;and
WHEREAS, the letter dated July 26, 2001, stated their waiver of rights for a public
hearing to assess the sidewalk replacement costs under Minnesota State Statute, Chapter 429;
and
WHEREAS, the letter dated July 26, 2001, further states their waiver of rights to a Final
Assessment Hearing and agree to pay a sum not to exceed$2,400.00.
NOW, THEREFORE BE IT RESOLVED that the Council has been fully advised of the
pertinent facts, and does hereby determine to proceed with the construction of said
replacement, including all proceedings which may be necessary in eminent domain for the
acquisition of necessary easements and rights hereby designated and shall be referred to in all
subsequent proceedings as Improvement No. S-082, replacement of sidewalk at 5615
Woodcrest Drive.
BE IT FURTHER RESOLVED THAT Improvement No. S-082 replacement of sidewalk
at 5615 Woodcrest Drive is hereby ordered to proceed as proposed.
Adopted this 16th day of October 2001.
Motion carried on rollcall vote-three ayes.
Page 18
Minutes/Edina City Council/October 16,2001
*RESOLUTION NO. 2001-83 SETTING HEARING DATE OF NOVEMBER 20, 2001, FOR
IMPROVEMENT NO. SA-1 AND SA-2,WEED TRIMMING Motion made by Member Masica
and seconded by Member Hovland introducing the following resolution and moving its
adoption:
RESOLUTION NO. 2001-83
A RESOLUTION SETTING
PUBLIC HEARING DATE OF
NOVEMBER 20,2001, FOR
IMPROVEMENT NO. SA-1 AND SA-2
WEED TRIMMING
BE IT RESOLVED BY THE CITY COUNCIL OF EDINA, MINNESOTA that a public
hearing shall be held on the 201h of November 2001, in the Council Chambers at City Hall at
7:00 P.M. to consider Improvement No. SA-1 and SA-2 for weed trimming in the area of
McCauley Trail and Indian Hills Road in the City of Edina; and
BE IT FURTHER RESOLVED, that the City Clerk shall give mailed and published
notice of such hearing and improvement as required by law.
Adopted this 16th day of October 2001.
Motion carried on rollcall vote- three ayes.
CONCERN OF RESIDENT Jean Calott, 6505 McCauley Circle, explained she rides the MTC bus
approximately four times a week to work. The Park and Ride lot at the Community Center was
located on the south side and had about 15-20 cars daily using the lot. In the spring, the
Community Center said they would not allow parking in their lot. The Park and Ride was then
moved to Concord Avenue, and then to a cul-de-sac on 591h Street. Ms. Calott questioned why the
Community Center does not serve the community. Mr. Hughes said this was a controversial
issue. The School District, owner of the Community Center, decided their lots could not
accommodate the added burden of Park and Ride parking. When Park and Ride was re-located
to a City street, the City objected because of City ordinances. Toda y the Southdale lot and the
Colonial Church lot serve Edina with Park and Ride. Mr. Hughes added that the MTC does not
need the City's permission to designate a Park and Ride lot.
RESOLUTION NO. 2001-75 - A RESOLUTION RELATING TO THE SALE OF GENERAL
OBLIGATION RECREATIONAL FACILITY BONDS, SERIES 2001A Rusty Fifield of Ehler's &
Associates, explained three bids were received for the $4,620,000 General Obligation Recreational
Facility Bonds, Series 2001A. Things that would be accomplished with this sale would be
refunding the outstanding maturities of the 1992C Recreational Facility Bonds and providing
new money for improvements to the golf course clubhouse and Aquatic Center. Mr. Fifield
reported the low bidder was Dain Rauscher, Inc. at 3.6919%. The results of sale allowed the total
savings to go from a projected $200,000 to a near $280,000. Mr. Fifield stated this was a very
successful bond sale.
Mr. Fifield noted the City has received confirmation of the existing bond ratings as: Aaa from
Moody's and AA+ from Standard and Poors.
Staff recommends approval of the sale of the General Obligation Recreational Facility Bonds,
Series 2001A in the amount of $4,620,000.
Member Hovland introduced the following resolution and moved its adoption:
Page 19
Minutes/Edina City Council/October 16,2001
RESOLUTION NO. 2001-75
A RESOLUTION RELATING TO$4,620,000 GENERAL OBLIGATION
TAX INCREMENT BONDS, SERIES 2001A;AUTHORIZING THE SALE,
FIXING THE FORM AND DETAILS, AND PROVIDING FOR THE EXECUTION
AND DELIVERY THEREOF AND THE SECURITY THEREFOR
Issuer: City of Edina,Minnesota
Governing Body: City Council
Kind,date,time and place of meeting: A regular meeting held Tuesday,
October 16,2001 at 7:00 o'clock p.m.,at the City Hall, Edina,Minnesota.
Members present: Hovland,Masica and Mayor Maetzold
Members absent: Housh and Kelly
Documents Attached:
Minutes of said meeting (including):
I, the undersigned, being the duly qualified and acting recording officer of the
public corporation issuing the bonds referred to in the title of this certificate, certify that the
documents attached hereto, as described above, have been carefully compared with the
original records of said corporation in my legal custody, from which they have been
transcribed; that said documents are a correct and complete transcript of the minutes of a
meeting of the governing body of said corporation, and correct and complete copies of all
resolutions and other actions taken and of all documents approved by the governing body at
said meeting, so far as they relate to said bonds; and that said meeting was duly held by the
governing body at the time and place and was attended throughout by the members indicated
above,pursuant to call and notice of such meeting given as required by law.
WITNESS my hand officially as such recording officer this 16th day of
October 2001.
Debra Mangen
City Clerk
It was reported that 3 sealed bids for the bonds had been received at the time
and place designated in the Terms of Proposal approved by resolution of the Council at the
meeting held on October 16, 2001, and included in the Official Statement circulated by the
Issuer's financial advisor on behalf of the Issuer. The bids received were as follows:
Name of Bidder Bid for Principal Interest Rate Net Interest Cost
(see attached bid tabulation)
Member James Hovland then introduced the following resolution and moved its
adoption:
RESOLUTION RELATING TO $4,620,000 GENERAL OBLIGATION
RECREATIONAL FACILITY BONDS, SERIES 2001A; AWARDING
THE SALE, FIXING THE FORM AND DETAILS, PROVIDING FOR
THE EXECUTION THEREOF AND THE SECURITY THEREFOR
BE IT RESOLVED by the City Council of the City of Edina, Minnesota
(the "Issuer"),as follows:
Section 1. Authorization and Sale.
1.01. Authorization and Outstanding Bonds. The Issuer has presently
outstanding its General Obligation Recreational Facility Refunding Bonds, Series 1992C,
initially dated as of November 1, 1992 (the "Prior Bonds"). This Council, by a resolution
Page 20
Minutes/Edina City Council/October 16,2001
adopted on September 19, 2001, authorized the sale of $4,620,000 General Obligation
Recreational Facility Bonds, Series 2001A (the "Bonds") of the Issuer, pursuant to Minnesota
Laws 1961, Chapter 655 (the "Act"), and Minnesota Statutes, Chapter 475, in order to currently
refund on January 1, 2002 the Prior Bonds maturing in the years 2003 through 2009 which
aggregate $3,035,000 in principal amount (the "Refunded Bonds") and to finance
improvements to the municipal golf and swimming facilities of the Issuer. The Bonds shall
be payable primarily out of the net revenues (the "Net Revenues") to be derived from the
municipal golf courses, ice arena, swimming pool and liquor stores of the Issuer. There is
currently payable out of all or a portion of the Net Revenues the Prior Bonds, the General
Obligation Recreational Facility Bonds, Series 1992A of the Issuer, initially dated as of
November 1, 1992 (the "1992A Bonds") and the General Obligation Refunding Bonds, Series
1999B of the Issuer,initially dated as of May 1,1999 (the "1999 Bonds").
1.02. Findings. It is hereby found, determined and declared that the Net
Revenues in the fiscal year ended December 31, 2000 totalled $2,702,200, which amount
exceeds the maximum amount of principal and interest to become due in any future fiscal year
on the Bonds, the Prior Bonds, the 1992A Bonds and the 1999 Bonds as adjusted to reflect the
redemption of the Refunded Bonds from the proceeds of the Bonds and the payment of
interest on the Bonds from proceeds of the Bonds until applied to refund the Prior Bonds. It
is determined that the estimated Net Revenues will be sufficient, together with other sources
pledged to the payment thereof, to pay the principal of and interest on the Bonds, the Prior
Bonds,the 1992A Bonds and the 1999 Bonds when due.
1.03. Sale of Bonds. The Issuer has retained Ehlers & Associates, Inc., as
independent financial advisors in connection with the sale of the Bonds. Pursuant to
Minnesota Statutes, Section 475.60, subdivision 2, paragraph (9), the requirements as to public
sale do not apply to the issuance of the Bonds. Bids have been received in accordance with
t h e
Terms of Proposal approved by the resolution adopted by this Council on September 19
2001 authorizing the sale of the Bonds, and the Council has publicly considered all sealed bids
presented in conformity with the Terms of Proposal. The most favorable of such bids is
ascertained to be that of Dain Rauscher Inc., of Minneapolis, Minnesota (the "Purchaser"), to
purchase the Bonds at a price of $4,592,121.25 plus accrued interest on all Bonds to the day of
delivery and payment, on the further terms and conditions hereinafter set forth.
1.04 Award of Bonds. The sale of the Bonds is hereby awarded to the Purchaser
and the Mayor and Manager are hereby authorized and directed on behalf of the Issuer to
execute a contract for the sale of the Bonds in accordance with the terms of the bid. The good
faith deposit of the Purchaser shall be retained and deposited by the Issuer until the Bonds
have been delivered and shall be deducted from the purchase price paid at settlement. The
good faith checks of other bidders shall be returned to them forthwith.
1.05. Issuance of Bonds. The Issuer is authorized by the Act to secure the Bonds
by the covenants and agreements hereinafter set forth. All acts, conditions and things which
are required by the Constitution and laws of the State of Minnesota to be done, to exist, to
happen and to be performed precedent to and in the valid issuance of the Bonds having been
done, existing, having happened and having been performed, it is now necessary for the
Council to establish the form and terms of the Bonds, to provide security therefor and to issue
the Bonds forthwith.
Section 2. Form of Bonds. The Bonds shall be prepared in substantially the
following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF EDINA
Page 21
Minutes/Edina City Council/October 16,2001
GENERAL OBLIGATION RECREATIONAL FACILITY BOND,
SERIES 2001A
Date of
Interest Rate Maturi Original Issue CUSIP
% January 1, November 1,2001
REGISTERED OWNER: CEDE &CO.
PRINCIPAL AMOUNT: DOLLARS
THE CITY OF EDINA, Hennepin County, Minnesota (the "Issuer"),
acknowledges itself to be indebted and, for value received, hereby promises to pay to the
registered owner named above, or registered assigns,the principal amount specified above,on
the maturity date specified above, with interest thereon from the date of original issue
specified above, or from the most recent interest payment date to which interest has been paid
or duly provided for, at the annual rate specified above. Interest hereon is payable on January
1 and July 1 in each year, commencing July 1, 2002, to the person in whose name this Bond is
registered at the close of business on the 15th day (whether or not a business day) of the
immediately preceding month, all subject to the provisions referred to herein with respect to
the redemption of the principal of this Bond before maturity. The interest hereon and, upon
presentation and surrender hereof at the office of the Finance Director, in Edina, Minnesota,
as Registrar, Transfer Agent and Paying Agent (the "Bond Registrar"), or its successor
designated under the Resolution described herein, the principal hereof, are payable in lawful
money of the United States of America by check or draft of the Issuer or the Bond Registrar if
a successor to the Finance Director as Bond Registrar has been designated under the
Resolution described herein.
This Bond is one of an issue in the aggregate principal amount of$4,620,000 (the
"Bonds") all of like date and tenor except as to serial number, interest rate, redemption
privilege and maturity date, issued pursuant to a resolution adopted by the City Council on
October 16,2001 (the "Resolution"),for the purpose of financing improvements to the Issuer's
golf and swimming facilities and to refund certain of the Issuer's outstanding general
obligation bonds previously issued to finance improvements to the Issuer's recreational
facilities and is issued pursuant to and in full conformity with the provisions of the
Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota
Laws 1961, Chapter 655, and Minnesota Statutes, Chapter 475. This Bond is payable primarily
from the net revenues of the golf courses, ice arena, swimming pool and liquor stores of the
Issuer pledged to the payment of the Bonds by the Resolution, but the Issuer is required by
law to pay maturing principal hereof and interest thereon out of any funds of the Issuer if net
revenues are insufficient therefor. The Bonds are issuable only as fully registered bonds in
denominations of$5,000 or any multiple thereof, of single maturities.
Bonds maturing in the years 2003 through 2008 are payable on their respective
stated maturity dates without option of prior payment,but Bonds having stated maturity dates
in the years 2009 through 2017 are each subject to redemption and prepayment,at the option of
the Issuer and in whole or in part, and if in part, in the maturities selected by the Issuer and,
within any maturity,in$5,000 principal amounts selected by lot,on January 1,2008 and on any
date thereafter, at a price equal to the principal amount thereof to be redeemed plus accrued
interest to the date of redemption.
At least thirty days prior to the date set for redemption of any Bond, notice of the
call for redemption will be mailed to the Bond Registrar and to the registered owner of each
Bond to be redeemed at his address appearing in the Bond Register,but no defect in or failure
to give such mailed notice of redemption shall affect the validity of the proceedings for the
redemption of any Bond not affected by such defect or failure. Official notice of redemption
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Minutes/Edina City Council/October 16,2001
having been given as aforesaid, the Bonds or portions of the Bonds so to be redeemed shall,
on the redemption date, become due and payable at the redemption price herein specified and
from and after such date (unless the Issuer shall default in the payment of the redemption
price) such Bond or portions of Bonds shall cease to bear interest. Upon the partial
redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner
without charge,representing the remaining principal amount outstanding.
As provided in the Resolution and subject to certain limitations set forth
therein, this Bond is transferable upon the books of the Issuer at the principal office of the
Bond Registrar, by the registered owner hereof in person or by his attorney duly authorized in
writing upon surrender hereof together with a written instrument of transfer satisfactory to
the Bond Registrar, duly executed by the registered owner or his attorney; and may also be
surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or
exchange,the Issuer will cause a new Bond or Bonds to be issued in the name of the transferee
or registered owner, of the same aggregate principal amount, bearing interest at the same rate
and maturing on the same date, .subject to reimbursement for any tax, fee or governmental
charge required to be paid with respect to such transfer or exchange.
The Issuer and the Bond Registrar may deem and treat the person in whose
name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or
not, for the purpose of receiving payment and for all other purposes, and neither the Issuer
nor the Bond Registrar shall be affected by any notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED acts,
conditions and things required by the Constitution and laws of the State of Minnesota to be
done, to exist, to happen and to be performed precedent to and in the issuance of this Bond in
order to make this Bond a valid and binding general obligation of the Issuer according to its
terms, have been done, do exist, have happened and have been performed in regular and due
form as so required; that in and by the Resolution, the Issuer has pledged to the payment of
the principal of and interest on the Bonds so much of the net revenues of the Issuer's golf
courses, ice arena and liquor stores as shall be required to pay such principal and interest and
on a parity with the pledge of such net revenues to the payment of other outstanding bonds of
the Issuer; if needed to pay the principal and interest on this Bond, ad valorem taxes will be
levied upon all taxable property in the Issuer without limitation as to rate or amount; and that
the issuance of this Bond does not cause the indebtedness of the Issuer to exceed any
constitutional or statutory limitation.
This Bond shall not be valid or become obligatory for any purpose or be entitled
to any security or benefit under the Resolution until the Certificate of Authentication hereon
shall have been executed by the Bond Registrar by the manual signature of the Bond
Registrar, or in the event the Finance Director is no longer acting as Bond Registrar, one of the
authorized representatives of the Bond Registrar.
IN WITNESS WHEREOF, the City of Edina, Hennepin County, Minnesota, by
its City Council, has caused this Bond to be executed by the facsimile signatures of the Mayor
and the Manager and has caused this Bond to be dated as of the date set forth below that all
Date of Authentication:
CITY OF EDINA
City Manager Mayor
CERTIFICATE OF AUTHENTICATION
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Minutes/Edina City Council/October 16,2001
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
By
City Finance Director,as Bond Registrar
The following abbreviations, when used in the inscription on the face of this
Bond, shall be construed as though they were written out in full according to applicable laws
or regulations:
TEN COM--as tenants UNIF TRANS MIN ACT. . . . . . . . . . Custodian. . .
in common (Cust) (Minor)
TEN ENT--as tenants under Uniform Transfers to Minors
by the entireties Act. . . . . . . . . . . . . . . . . . . . . . . . . .
(State)
JT TEN-- as joint tenants
with right of
survivorship and
not as tenants in
common
Additional abbreviations may also be used.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers
unto the within Bond
and all rights thereunder, and hereby irrevocably constitutes and appoints
attorney to transfer the within Bond on the-books
kept for registration thereof,with full power of substitution in the premises.
Dated:
PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER NOTICE: The signature(s) to this
OF ASSIGNEE: assignment must correspond with the name as
it appears upon the face of the within
Bond in every particular,without alteration,
/ / enlargement or any change whatsoever.
Signature(s) must be guaranteed by an
"eligible guarantor institution"
meeting the requirements of the
Bond Registrar,which requirements
include membership or participation
in the Securities Transfer Association
Medalion Program (STAMP) or such
other"signature guaranty program"
as may be determined by the Bond
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Minutes/Edina City Council/October 16,2001
Registrar in addition to or in
substitution for STAMP, all in
accordance with the Securities
Exchange Act of 1934, as amended.
Section 3. Bond Terms; Registration; Executive and Delivery.
3.01. Maturities, Interest Rates, Denominations, Payment, Dating of Bonds. The
Issuer shall forthwith issue and deliver the Bonds, which shall be denominated "General
Obligation Recreational Facility Bonds, Series 2001A." The Bonds shall be dated as of
November 1, 2001, shall be issuable in the denominations of $5,000 or any integral multiple
thereof, shall mature on January 1 in the years and amounts set forth below, and Bonds
maturing in such years and amounts shall bear interest from date of issue until paid or duly
called for redemption at the rates per annum set forth opposite such years and amounts as
follows:
Year Amount Rate Year Amount Rate
2003 $525,000 2.25% 2011 $70,000 3.90%
2004 565,000 2.60 2012 75,000 4.05
2005 585,000 2.85 2013 75,000 4.15
2006 610,000 3.10 2014 80,000 4.30
2007 615,000 3.35 2015 80,000 4.45
2008 550,000 3.55 2016 85,000 4.55
2009 550,000 3.70 2017 90,000 4.65
2010 65,000 3.80
The Bonds shall be issuable only in fully registered form, of single maturities.
The interest thereon and, upon surrender of each Bond at the principal office of the Registrar
described herein, the principal amount thereof, shall be payable by check or draft issued by
the Registrar. Each Bond shall be dated by the Registrar as of the date of its authentication.
3.02. Interest Payment Dates. Interest on the Bonds shall be payable on
January 1 and July 1 in each year, commencing July 1, 2002, to the owners thereof as such
appear of record in the bond register as of the close of business on the fifteenth day of the
immediately preceding month, whether or not such day is a business day. Interest on the
Bonds will be computed on the basis of a 360-day year consisting of twelve 30-day months and
will be rounded pursuant to the rules of the Municipal Securities Rulemaking Board.
3.03. Registration. The Issuer shall appoint, and shall maintain, a bond
registrar, transfer agent and paying agent (the Registrar). The effect of registration and the
rights and duties of the Issuer and the Registrar with respect thereto shall be as follows:
(a) Register. The Registrar shall keep at its principal office a bond register in
which the Registrar shall provide for the registration of ownership of Bonds and the
registration of transfers and exchanges of Bonds entitled to be registered,transferred or
exchanged.
(b) Transfer of Bonds. Upon surrender to the Registrar for transfer of any Bond
duly endorsed by the registered owner thereof or accompanied by a written instrument
of transfer, in form satisfactory to the Registrar, duly executed by the registered owner
thereof or by an attorney duly authorized by the registered owner in writing, the
Registrar shall authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Bonds of a like aggregate principal amount and maturity,
as requested by the transferor. The Registrar may, however, close the books for
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Minutes/Edina City Council/October 16,2001
registration of any transfer after the fifteenth day of the month preceding each interest
payment date and until such interest payment date.
(c) Exchange of Bonds. Whenever any Bond is surrendered by the registered
owner for exchange, the Registrar shall authenticate and deliver one or more new
Bonds of a like aggregate principal amount, interest rate and maturity, as requested by
the registered owner or the owner's attorney duly authorized in writing.
(d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be
promptly cancelled by the Registrar and thereafter disposed of as directed by the
Issuer.
(e) Improper or Unauthorized Transfer. When any Bond is presented to the
Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied
that the endorsement on such Bond or separate instrument of transfer is valid and
genuine and that the requested transfer is legally authorized. The Registrar shall incur
no liability for its refusal, in good faith, to make transfers which it, in its judgment,
deems improper or unauthorized.
(f) Persons Deemed Owners. The Issuer and the Registrar may treat the person
in whose name any Bond is at any time registered in the bond register as the absolute
owner of such Bond, whether such Bond shall be overdue or not, for the purpose of
receiving payment of, or on account of, the principal of and interest on such Bond and
for all other purposes, and all such payments so made to any such registered owner or
upon the owner's order shall be valid and effectual to satisfy and discharge the liability
of the Issuer upon such Bond to the extent of the sum or sums so paid.
(g) Taxes, Fees and Charges. For every transfer or exchange of Bonds (except for
an exchange upon a partial redemption of a Bond), the Registrar may impose a charge
upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other
governmental charge required to be paid with respect to such transfer or exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become
mutilated or be lost, stolen or destroyed, the Registrar shall deliver a new Bond of like
amount, number, interest rate, maturity date and tenor in exchange and substitution for
and upon cancellation of any such mutilated Bond or in lieu of and in substitution for
any such Bond lost, stolen or destroyed, upon the payment of the reasonable expenses
and charges of the Registrar in connection therewith; and, in the case of a Bond lost,
stolen or destroyed,upon receipt by the Registrar of evidence satisfactory to it that such
Bond was lost, stolen or destroyed, and of the ownership thereof, and upon receipt by
the Registrar of an appropriate bond or indemnity in form, substance and amount
satisfactory to it, in which both the Issuer and the Registrar shall be named as obligees.
All Bonds so surrendered to the Registrar shall be cancelled by it and evidence of such
cancellation shall be given to the Issuer. If the mutilated, lost, stolen or destroyed
Bond has already matured or been called for redemption in accordance with its terms,it
shall not be necessary to issue a new Bond prior to payment.
3.04. Appointment of Initial Registrar. The Issuer hereby appoints the Finance
Director, as the initial Registrar. In the event that the Issuer determines to discontinue the
book entry-only system for the Bonds as described in paragraph (c) of Section 2.07, or DTC, as
defined in Section 3.07, determines to discontinue providing its services with respect to the
Bonds and a new securities depository is not appointed for the Bonds, the Issuer will
designate a suitable bank or trust company to act as successor Registrar if the Finance Director
is then acting as Registrar. The Issuer reserves the right to remove any Registrar upon thirty
(30) days' notice and upon the appointment of a successor Registrar, in which event the
predecessor Registrar shall deliver all cash and Bonds in its possession to the successor
Registrar.
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Minutes/Edina City Council/October 16, 2001
3.05. Redemption. Bonds maturing in the years 2003 through 2008 are payable
on their respective stated maturity dates without option of prior payment,but Bonds maturing
in 2009 through 2017 are each subject to redemption, at the option of the Issuer and in whole
or in part, and if in part, in the maturities selected by the Issuer and, within any maturity, in
$5,000 principal amounts selected by the Registrar by lot, on January 1, 2008 and on any date
thereafter, at a redemption price equal to the principal amount thereof to be redeemed plus
accrued interest to the date of redemption.
At least thirty days prior to the date set for redemption of any Bond, the Issuer
shall cause notice of the call for redemption to be mailed to the Registrar and to the registered
owner of each Bond to be redeemed, but no defect in or failure to give such mailed notice of
redemption shall affect the validity of proceedings for the redemption of any Bond not
affected by such defect or failure. The notice of redemption shall specify the redemption date,
redemption price, the numbers, interest rates and CUSIP numbers of the Bonds to be
redeemed and the place at which the Bonds are to be surrendered for payment, which is the
principal office of the Registrar. Official notice of redemption having been given as aforesaid,
the Bonds or portions thereof so to be redeemed shall, on the redemption date, become due
and payable at the redemption price therein specified and from and after such date (unless the
Issuer shall default in the payment of the redemption price) such Bonds or portions thereof
shall cease to bear interest.
Bonds in a denomination larger than $5,000 may be redeemed in part in any
integral multiple of $5,000. The owner of any Bond redeemed in part shall receive without
charge, upon surrender of such Bond to the Registrar, one or more new Bonds in authorized
denominations equal in principal amount to be unredeemed portion of the Bond so
surrendered.
3.06. Preparation and Delivery. The Bonds shall be prepared under the
direction of the Manager and shall be executed on behalf of the Issuer by the signatures of the
Mayor and the Manager; provided that said signatures may be printed, engraved, or
lithographed facsimiles thereof. In case any officer whose signature, or a facsimile of whose
signature, shall appear on the Bonds shall cease to be such officer before the delivery of any
Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes,
the same as if such officer had remained in office until delivery. Notwithstanding such
execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or
benefit under this Resolution unless and until a certificate of authentication on such Bond has
been duly executed by the manual signature of the Registrar, or in the event the Finance
Director is no longer acting as Registrar, an authorized representative of the Registrar.
Certificates of authentication on different Bonds need not be signed by the same
representative. The executed certificate of authentication on each Bond shall be conclusive
evidence that it has been authenticated and delivered under this Resolution. When the Bonds
have been so executed and authenticated, they shall be delivered by the Manager to the
Purchaser upon payment of the purchase price in accordance with the contract of sale
heretofore made and executed, and the Purchaser shall not be obligated to see to the
application of the purchase price.
3.07. Securities Depository. (a) For purposes of this Section the following terms
shall have the following meanings:
"Beneficial Owner" shall mean, whenever used with respect to a Bond, the
person in whose name such Bond is recorded as the beneficial owner of such Bond by a
Participant on the records of such Participant, or such person's subrogee.
"Cede & Co." shall mean Cede & Co., the nominee of DTC, and any successor
nominee of DTC with respect to the Bonds.
"DTC" shall mean The Depository Trust Company of New York, New York.
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Minutes/Edina City Council/October 16,2001
"Participant" shall mean any broker-dealer, bank or other financial institution
for which DTC holds Bonds as securities depository.
"Representation Letter" shall mean the Representation Letter from the Issuer to
DTC previously executed by the Issuer and on file with DTC.
(b) The Bonds shall be initially issued as separately authenticated fully
registered bonds, and one Bond shall be issued in the principal amount of each stated
maturity of the Bonds. Upon initial issuance,the ownership of such Bonds shall be registered
in the bond register in the name of Cede & Co., as nominee of DTC. The Registrar and the
Issuer may treat DTC (or its nominee) as the sole and exclusive owner of the Bonds registered
in its name for the purposes of payment of the principal of or interest on the Bonds, selecting
the Bonds or portions thereof to be redeemed, if any, giving any notice permitted or required
to be given to registered owners of Bonds under this resolution, registering the transfer of
Bonds, and for all other purposes whatsoever; and neither the Registrar nor the Issuer shall be
affected by any notice to the contrary. Neither the Registrar nor the Issuer shall have any
responsibility or obligation to any Participant, any person claiming a beneficial ownership
interest in the Bonds under or through DTC or any Participant, or any other person which is
not shown on the bond register as being a registered owner of any Bonds, with respect to the
accuracy of any records maintained by DTC or any Participant,with respect to the payment by
DTC or any Participant of any amount with respect to the principal of or interest on the Bonds,
with respect to any notice which is permitted or required to be given to owners of Bonds
under this resolution,with respect to the selection by DTC or any Participant of any person to
receive payment in the event of a partial redemption of the Bonds, or with respect to any
consent given or other action taken by DTC as registered owner of the Bonds. So long as any
Bond is registered in the name of Cede & Co., as nominee of DTC, the Registrar shall pay all
principal of and interest on such Bond, and shall give all notices with respect to such Bond,
only to Cede & Co. in accordance with the Representation Letter, and all such payments shall
be valid and effective to fully satisfy and discharge the Issuer's obligations with respect to the
principal of and interest on the Bonds to the extent of the sum or sums so paid. No person
other than DTC shall receive an authenticated Bond for each separate stated maturity
evidencing the obligation of the Issuer to make payments of principal and interest. Upon
delivery by DTC to the Registrar of written notice to the effect that DTC has determined to
substitute a new nominee in place of Cede & Co., the Bonds will be transferable to such new
nominee in accordance with paragraph (d) hereof.
(c) In the event the Issuer determines that it is in the best interest of the
Beneficial Owners that they be able to obtain Bonds in the form of bond certificates, the
Issuer may notify DTC and the Registrar, whereupon DTC shall notify the Participants of the
availability through DTC of Bonds in the form of certificates. In such event,the Bonds will be
transferable in accordance with paragraph (d) hereof. DTC may determine to discontinue
providing its services with respect to the Bonds at any time by giving notice to the Issuer and
the Registrar and discharging its responsibilities with respect thereto under applicable law.
In such event the Bonds will be transferable in accordance with paragraph (d) hereof.
(d) In the event that any transfer or exchange of Bonds is permitted under
paragraph (b) or (c) hereof, such transfer or exchange shall be accomplished upon receipt by
the Registrar of the Bonds to be transferred or exchanged and appropriate instruments of
transfer to the permitted transferee in accordance with the provisions of this resolution. In the
event Bonds in the form of certificates are issued to owners other than Cede & Co., its
successor as nominee for DTC as owner of all the Bonds, or another securities depository as
owner of all the Bonds,the provisions of this resolution shall also apply to all matters relating
thereto, including, without limitation, the printing of such Bonds in the form of bond
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Minutes/Edina City Council/October 16,2001
certificates and the method of payment of principal of and interest on such Bonds in the form
of bond certificates.
Section 4. Use of Proceeds and General Obligation Recreational Facili Bond
Construction Fund. Proceeds of the Bonds in the amount of $3,035,000, are irrevocably
appropriated to pay and redeem the principal amount of the Refunded Bonds on or before
January 1, 2002. Any accrued interest on the Bonds shall be deposited in the Sinking Fund
created pursuant to Section 5 hereof. All other proceeds of the Bonds shall be deposited in a
separate Series 2001A General Obligation Recreational Facility Bond Construction Fund (the
"Construction Fund") which shall be created and maintained on the books of the Issuer as a
separate account. The Construction Fund shall be used solely to defray expenses of the
Improvements and of costs of issuance of the Bonds. Upon completion and payment of all
costs of the Improvements, any amounts remaining in the Construction Fund shall be credited
and paid to the Sinking Fund created pursuant to Section 5 hereof. The remaining proceeds of
the Bonds shall be deposited in the Sinking Fund created pursuant to Section 4 hereof.
Section 5. General Obligation Recreational Facility Bond Sinking Fund. The
Bonds shall be payable from a separate Series 2001A General Obligation Recreational Facility
Bond Sinking Fund (the Sinking Fund) which shall be created and maintained on the books
of the Issuer as a separate debt redemption fund until the Bonds, and all interest thereon, are
fully paid. There shall be credited to the Sinking Fund the following:
(a) Any amount initially deposited therein pursuant to Section 4 hereof.
(b) All taxes levied and all other money which may at any time be received for
or appropriated to the payment of the principal of or interest on the Bonds, including the Net
Revenues herein pledged and appropriated to the Sinking Fund and all collections of any ad
valorem taxes levied for the payment of the Bonds.
(c) The sum of $2,896.54 from Net Revenues, which amount shall be credited to
a separate subaccount in the Sinking Fund as a reserve for the Bonds as required by the Act,
and which amounts equal the average annual amount of principal and interest to become due
on the Bonds and is required to be deposited therein pursuant to the Act.
(d) Any other funds appropriated by the Council for the payment of the Bonds.
Section 6. Pledge of Net Revenues. The Net Revenues are hereby irrevocably
pledged and appropriated to the payment of the Bonds and interest thereon when due and the
maintenance of the reserve account required by the Act. The pledge of the Net Revenues to
the payment of the Bonds and maintenance of the reserve account on a parity with the pledge
of such net revenues to the payment of the Prior Bonds, the 1992A Bonds and the 1999 Bonds.
Nothing herein shall preclude the Issuer from hereafter making further pledges and
appropriations of the Net Revenues for payment of additional obligations of the Issuer
hereafter authorized if the Council determines before the authorization of such additional
obligations that the estimated Net Revenues will be sufficient, together with any other
sources pledged to the payment of the outstanding and additional obligations,for payment of
the outstanding bonds and such additional obligations. Such further pledges and
appropriations of Net Revenues may be made superior or subordinate to, or on a parity with,
the pledge and appropriation herein made.
Section 7. Pledge of Taxing Powers. For the prompt and full payment of the
principal of and interest on the Bonds as such payments respectively become due, the full
faith, credit and unlimited taxing powers of the Issuer shall be and are hereby irrevocably
pledged. It is, however, presently estimated that the funds appropriated pursuant to Section 5
hereof will provide sums not less than 5% in excess of principal and interest on the Bonds
P P P
when due, and therefore no tax levy is presently required.
Section 8. Defeasance. When all of the Bonds have been discharged as provided
in this section, all pledges, covenants and other rights granted by this resolution to the
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Minutes/Edina City Council/October 16,2001
registered owners of the Bonds shall cease. The Issuer may discharge its obligations with
respect to any Bonds which are due on any date by depositing with the Registrar on or before
that date a sum sufficient for the payment thereof in full; or, if any Bond should not be paid
when due,it may nevertheless be discharged by depositing with the Registrar a sum sufficient
for the payment thereof in full with interest accrued from the due date to the date of such
deposit. The Issuer may also discharge its obligations with respect to any prepayable Bonds
called for redemption on any date when they are prepayable according to their terms, by
depositing with the Registrar on or before that date an amount equal to the principal, interest
and redemption premium,if any,which are then due,provided that notice of such redemption
has been duly given as provided herein. The Issuer may also at any time discharge its
obligations with respect to any Bonds, subject to the provisions of law now or hereafter
authorizing and regulating such action, by depositing irrevocably in escrow, with a bank
qualified by law as an escrow agent for this purpose, cash or securities which are authorized
by law to be so deposited, bearing interest payable at such time and at such rates and
maturing or callable at the holder's option on such dates as shall be required to pay all
principal, interest and redemption premiums to become due thereon to maturity or said
redemption date.
Section 9. County Auditor Registration, Certification of Proceedings,
Investment of Money,Arbitrage,Official Statement and Fees.
9.01. County Auditor Registration. The Manager is hereby authorized and
directed to file a certified copy of this Resolution with the County Auditor of Hennepin
County, together with such other information as the County Auditor shall require, and to
obtain from said County Auditor a certificate that the Bonds have been entered on his bond
register as required by law.
9.02. Certification of Proceedings. The officers of the Issuer and the County
Auditor of Hennepin County are hereby authorized and directed to prepare and furnish to the
Purchaser and to Dorsey & Whitney LLP, Bond Counsel to the Issuer, certified copies of all
proceedings and records of the Issuer, and such other affidavits, certificates and information
as may be required to show the facts relating to the legality and marketability of the Bonds as
the same appear from the books and records under their custody and control or as otherwise
known to them, and all such certified copies, certificates and affidavits, including any
heretofore furnished, shall be deemed representations of the Issuer as to the facts recited
therein.
9.03. Covenant. The Issuer covenants and agrees with the holders from time to
time of the Bonds that it will not take or permit to be taken by any of its officers,employees or
agents any action which would cause the interest on the Bonds to become subject to taxation
under the Internal Revenue Code of 1986, as amended (the "Code"), and Regulations
promulgated thereunder (the Regulations), as such are enacted or promulgated and in effect
on the date of issue of the Bonds, and covenants to take any and all actions within its powers
to ensure that the interest on the Bonds will not become subject to taxation under such Code
and Regulations. The improvements financed by the Prior Bonds and the improvements to be
financed by the Bonds are public recreational facilities available for use by members of the
general public on a substantially equal basis. The Issuer will not enter into any lease, use
agreement or other contract respecting the improvements financed by the Prior Bonds or the
Bonds or security for the payment of the Bonds which would cause the Bonds to be
considered "private activity bonds" or "private loan bonds" pursuant to Section 141 of the
Code.
9.04. Arbitrage Rebate. The Issuer shall take such actions as are required to
comply with the arbitrage rebate requirements of paragraphs (2) and (3) of Section 148(f) of
the Code.
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Minutes&dina City Council/October 16,2001
9.05. Arbitrage Certification. The Mayor and the Manager, being the officers of
the Issuer charged with the responsibility for issuing the Bonds pursuant to this resolution,
are authorized and directed to execute and deliver to the Purchaser a certification in
accordance with the provisions of Section 148 of the Code, and the Regulations, stating the
facts, estimates and circumstances in existence on the date of issue and delivery of the Bonds
which make it reasonable to expect that the proceeds of the Bonds will not be used in a
manner that would cause the Bonds to be arbitrage bonds within the meaning of the Code and
Regulations.
9.06. Official Statement. The Official Statement relating to the Bonds, dated
October 5, 2001, prepared and distributed on behalf of the Issuer by Ehlers & Associates, Inc.,
is hereby approved. Ehlers & Associates, Inc. is hereby authorized on behalf of the Issuer to
prepare and distribute to the Purchaser a supplement to the Official Statement listing the
offering price, the interest rates, selling compensation, delivery date, the underwriters and
such other information relating to the Certificates required to be included in the Official
Statement by Rule 15c2-12 adopted by the Securities and Exchange Commission under the
Securities Exchange Act of 1934. Within seven business days from the date hereof, the Issuer
shall deliver to the Purchaser a reasonable number of copies of the Official Statement and
such supplement. The officers of the Issuer are hereby authorized and directed to execute
such certificates, as may be appropriate concerning the accuracy, completeness and sufficiency
of the Official Statement.
Section 10. Continuing Disclosure.
(a) Purpose and Beneficiaries. To provide for the public availability of certain
information relating to the Bonds and the security therefor and to permit the original
purchaser and other participating underwriters in the primary offering of the Bonds to comply
with amendments to Rule 15c2-12 promulgated by the Securities and Exchange Commission
(the "SEC') under the Securities Exchange Act of 1934 (17 C.F.R. § 240.15c2-12), relating to
continuing disclosure (as in effect and interpreted from time to time, the "Rule"), which will
enhance the marketability of the Bonds, the Issuer hereby makes the following covenants and
agreements for the benefit of the Owners (as hereinafter defined) from time to time of the
Outstanding Bonds. The Issuer is the only "obligated person" in respect of the Bonds within
the meaning of the Rule for purposes of identifying the entities in respect of which
continuing disclosure must be made.
If the Issuer fails to comply with any provisions of this Section 10, any person
aggrieved thereby, including the Owners of any Outstanding Bonds, may take whatever
action at law or in equity may appear necessary or appropriate to enforce performance and
observance of any agreement or covenant contained in this Section 10, including an action for
a writ of mandamus or specific performance. Direct, indirect, consequential and punitive
damages shall not be recoverable for any default hereunder to the extent permitted by law.
Notwithstanding anything to the contrary contained herein, in no event shall a default under
this Section 10 constitute a default under the Bonds or under any other provision of this
resolution.
As used in this Section 10, "Owner" or "Bondowner" means, in respect of a
Bond, the registered owner or owners thereof appearing in the bond register maintained by
the Registrar or any "Beneficial Owner" (as hereinafter defined) thereof, if such Beneficial
Owner provides to the Registrar evidence of such beneficial ownership in form and substance
reasonably satisfactory to the Registrar. As used herein, "Beneficial Owner" means, in respect
of a Bond, any person or entity which (i) has the power, directly or indirectly, to vote or
consent with respect to, or to dispose of ownership of, such Bond (including persons or
entities holding Bonds through nominees, depositories or other intermediaries), or (b) is
treated as the owner of the Bond for federal income tax purposes. As used herein,
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Minutes/Edina City Council/October 16,2001
"Outstanding" when used as of any particular time with reference to Bonds means all Bonds
theretofore, or thereupon being, authenticated and delivered by the Registrar under this
Resolution except (i) Bonds theretofore canceled by the Registrar or surrendered to the
Registrar for cancellation; (ii) Bonds with respect to which the liability of the Issuer has been
discharged in accordance with Section 8 hereof; and (iii) Bonds for the transfer or exchange or
in lieu of or in substitution for which other Bonds shall have been authenticated and
delivered by the Registrar pursuant to this Resolution.
(b) Information To Be Disclosed. The Issuer will provide, in the manner set
forth in subsection (c) hereof, either directly or indirectly through an agent designated by the
Issuer,the following information at the following times:
(1) on or before 365 days after the end of each fiscal year of the Issuer,
commencing with the fiscal year ending December 31, 2001 the following financial
information and operating data in respect of the Issuer (the "Disclosure Information"):
(A) the audited financial statements of the Issuer for such fiscal year,
accompanied by the audit report and opinion of the accountant or government
auditor relating thereto, as permitted or required by the laws of the State of
Minnesota, containing balance sheets as of the end of such fiscal year and a
statement of operations, changes in fund balances and cash flows for the fiscal
year then ended, showing in comparative form such figures for the preceding
fiscal year of the Issuer, prepared in accordance with generally accepted
accounting principles promulgated by the Financial Accounting Standards
Board as modified in accordance with the governmental accounting standards
promulgated by the Governmental Accounting Standards Board or as otherwise
provided under Minnesota law, as in effect from time to time, or, if and to the
extent such financial statements have not been prepared in accordance with such
generally accepted accounting principles for reasons beyond the reasonable
control of the Issuer, noting the discrepancies therefrom and the effect thereof,
and certified as to accuracy and completeness in all material respects by the
fiscal officer of the Issuer;and
(B) To the extent not included in the financial statements referred to in
paragraph (A) hereof, the information for such fiscal year or for the period most
recently available of the type set forth below, which information may be
unaudited, but is to be certified as to accuracy and completeness in all material
respects by the Issuer's financial officer to the best of his or her knowledge,
which certification may be based on the reliability of information obtained from
governmental or third party sources:
Current Property Valuations;Larger Taxpayers;Direct Debt;
Overlapping Debt;Debt Ratios;Tax Levies and Collections;Net
Tax Capacity Rates; Population Trend;
Employment/Unemployment
Notwithstanding the foregoing paragraph, if the audited financial statements
are not available by the date specified, the Issuer shall provide on or before such date
unaudited financial statements in the format required for the audited financial statements as
part of the Disclosure Information and, within 10 days after the receipt thereof, the Issuer
shall provide the audited financial statements.
Any or all of the Disclosure Information may be incorporated by reference, if it
is updated as required hereby, from other documents, including official statements, which
have been submitted to each of the repositories hereinafter referred to under subsection (b) or
the SEC. If the document incorporated by reference is a final official statement, it must be
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Minutes/Edina City Council/October 16,2001
available from the Municipal Securities Rulemaking Board. The Issuer shall clearly identify
in the Disclosure Information each document so incorporated by reference.
If any part of the Disclosure Information can no longer be generated because the
operations of the Issuer have materially changed or been discontinued, such Disclosure
Information need no longer be provided if the Issuer includes in the Disclosure Information a
statement to such effect; provided, however, if such operations have been replaced by other
Issuer operations in respect of which data is not included in the Disclosure Information and
the Issuer determines that certain specified data regarding such replacement operations would
be a Material Fact (as defined in paragraph (2) hereof), then, from and after such
determination, the Disclosure Information shall include such additional specified data
regarding the replacement operations.
If the Disclosure Information is changed or this Section 10 is amended as
permitted by this paragraph (b)(1) or subsection (d), then the Issuer shall include in the next
Disclosure Information to be delivered hereunder, to the extent necessary, an explanation of
the reasons for the amendment and the effect of any change in the type of financial
information or operating data provided.
(2) In a timely manner, notice of the occurrence of any of the following events
which is a Material Fact (as hereinafter defined):
(A) Principal and interest payment delinquencies;
(B) Non-payment related defaults;
(C) Unscheduled draws on debt service reserves reflecting financial
difficulties;
(D) Unscheduled draws on credit enhancements reflecting financial
difficulties;
(E) Substitution of credit or liquidity providers, or their failure to perform;
(F) Adverse tax opinions or events affecting the tax-exempt status of the
security;
(G) Modifications to rights of security holders;
(H) Bond calls;
(I) Defeasances;
(J) Release, substitution, or sale of property securing repayment of the
securities; and
(K) Rating changes.
As used herein, a "Material Fact" is a fact as to which a substantial likelihood exists
that a reasonably prudent investor would attach importance thereto in deciding to buy, hold
or sell a Bond or, if not disclosed, would significantly alter the total information otherwise
available to an investor from the Official Statement, information disclosed hereunder or
information generally available to the public. Notwithstanding the foregoing sentence, a
"Material Fact" is also an event that would be deemed "material" for purposes of the
purchase, holding or sale of a Bond within the meaning of applicable federal securities laws,
as interpreted at the time of discovery of the occurrence of the event.
(3) In a timely manner, notice of the occurrence of any of the following events or
conditions:
(A) the failure of the Issuer to provide the Disclosure Information
required under paragraph (b)(1) at the time specified thereunder;
(B) the amendment or supplementing of this Section 10 pursuant to
subsection (d), together with a copy of such amendment or supplement and any
explanation provided by the Issuer under subsection (d)(2);
(C) the termination of the obligations of the Issuer under this Section 10
pursuant to subsection (d);
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Minutes/Edina City Council/October 16,2001
(D) any change in the accounting principles pursuant to which the financial
statements constituting a portion of the Disclosure Information are prepared;and
(E) any change in the fiscal year of the Issuer.
(c) Manner of Disclosure. The Issuer agrees to make available the information
described in subsection (b) to the following entities by telecopy, overnight delivery, mail or
other means,as appropriate:
(1) the information described in paragraph (1) of subsection (b),to each then nationally
recognized municipal securities information repository under the Rule and to any state
information depository then designated or operated by the State of Minnesota as
contemplated by the Rule (the "State Depository"),if any;
(2) the information described in paragraphs (2) and (3) of subsection (b), to the
Municipal Securities Rulemaking Board and to the State Depository,if any;and
(3) the information described in subsection (b),to any rating agency then maintaining a
rating of the Bonds and, at the expense of such Bondowner, to any Bondowner who requests
in writing such information, at the time of transmission under paragraphs (1) or (2) of this
subsection (c), as the case may be, or, if such information is transmitted with a subsequent
time of release,at the time such information is to be released.
(d) Term;Amendments;Interpretation.
(1) The covenants of the Issuer in this Section 10 shall remain in effect so long as any
Bonds are Outstanding. Notwithstanding the preceding sentence,however,the obligations of
the Issuer under this Section 10 shall terminate and be without further effect as of any date on
which the Issuer delivers to the Registrar an opinion of Bond Counsel to the effect that,
because of legislative action or final judicial or administrative actions or proceedings, the
failure of the Issuer to comply with the requirements of this Section 10 will not cause
participating underwriters in the primary offering of the Bonds to be in violation of the Rule
or other applicable requirements of the Securities Exchange Act of 1934, as amended, or any
statutes or laws successory thereto or amendatory thereof.
(2) This Section 10 (and the form and requirements of the Disclosure Information) may
be amended or supplemented by the Issuer from time to time, without notice to (except as
provided in paragraph (c)(3) hereof) or the consent of the Owners of any Bonds, by a
resolution of the City Council filed in the office of the Clerk of the Issuer accompanied by an
opinion of Bond Counsel, who may rely on certificates of the Issuer and others and the
opinion may be subject to customary qualifications, to the effect that: (i) such amendment or
supplement (a) is made in connection with a change in circumstances that arises from a
change in law or regulation or a change in the identity, nature or status of the Issuer or the
type of operations conducted by the Issuer, or (b) is required by, or better complies with, the
provisions of paragraph (b)(5) of the Rule; (ii) this Section 10 as so amended or supplemented
would have complied with the requirements of paragraph (b)(5) of the Rule at the time of the
primary offering of the Bonds, giving effect to any change in circumstances applicable under
clause (i)(a) and assuming that the Rule as in effect and interpreted at the time of the
amendment or supplement was in effect at the time of the primary offering; and (iii) such
amendment or supplement does not materially impair the interests of the Bondowners under
the Rule.
If the Disclosure Information is so amended, the Issuer agrees to provide,
contemporaneously with the effectiveness of such amendment, an explanation of the reasons
for the amendment and the effect, if any, of the change in the type of financial information or
operating data being provided hereunder.
Section 11. No Designation of Qualified Tax-Exempt Obligations. The Bonds
shall not be designated as "qualified tax-exempt obligations"for purposes of Section 265(b)(3)
of the Code.
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Minutes/Edina Ci!y Council/October 16,2001
Section 12. Severability. If any section, paragraph or provision of this
resolution shall be held to be invalid or unenforceable for any reason, the invalidity or
unenforceability of such section, paragraph or provision shall not affect any of the remaining
provisions of this resolution.
Section 13. Headings. Headings in this resolution are included for convenience
of reference only and are not a part hereof, and shall not limit or define the meaning of any
provision hereof.
Section 14. Authorization of Payment of Certain Costs of Issuance of the Bonds.
The Issuer authorizes the Purchaser to forward the amount of Bond proceeds allocable to the
payment of issuance expenses to U.S. Trust Company, Minneapolis,Minnesota, on the closing
date for further distribution as directed by the Issuer's financial advisor, Ehlers & Associates,
Inc.
Adopted this 16th day of October, 2001.
Member Masica seconded the motion.
Rollcall:
Ayes: Hovland, Masica, Maetzold
Motion carried.
'CLAIMS PAID Member Masica made a motion and Member Hovland seconded the motion
approving payment of the following claims as shown in detail on the Check Register dated
October 4, 2001 and consisting of 31 pages: General Fund $282,555.11; Communications Fund
$2,073.11; Working Capital Fund $6,787.53; Construction Fund $35,098.50; Art Center Fund
$3,315.12; Aquatic Center Fund $1,453.59; Golf Course Fund $6,462.61; Ice Arena Fund $630.72;
Edinborough/Centennial Lakes Fund $4,249.80; Liquor Fund $156,678.64; Utility Fund
$44,780.78; Storm Sewer Fund $4,780.60; HRA Fund $450,000.00; Payroll Fund $425,000.00;
TOTAL $1,423,866.11; and the following claims as shown in detail on the Check Register dated
October 10, 2001, and consisting of 34 pages: $592,655.41; CDBG Fund $7,708.00;
Communications Fund $7,683.98; Working Capital Fund $86,406.06; Construction Fund
$456,429.38; Art Center Fund $501.15; Golf Dome Fund $743.61; Aquatic Center Fund $1,761.02;
Golf Course Fund $16,294.64; Ice Arena Fund $5,862.83; Edinborough/Centennial Lakes Fund
$8,957.31; Liquor Fund $147,633.75; Utility Fund $3,546.03; Storm Sewer Fund $2,393.94;
Recycling Fund$29,743.50;TOTAL $1,368,320.61.
Motion carried on rollcall vote- three ayes.
There being no further business on the Council Agenda, Mayor Maetzold declared the meeting
adjourned at 10:30 P.M.
City Clerk
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