HomeMy WebLinkAbout2001-12-18 Council Regular Meeting MINUTES
OF THE JOINT MEETING OF THE
EDINA CITY COUNCIL
AND THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT CITY HALL
DECEMBER 18, 2001
8:00 P.M.
CALL TO ORDER Mayor Maetzold called the regular meeting of the Edina City Council to
order at 8:01 p.m. He noted the Council had delayed their meeting because of the Hopkins School
District Election.
ROLLCALL Answering rollcall were Members Housh, Hovland, Masica and Mayor Maetzold.
Member Kelly entered the meeting at 8:15 P.M.
CONSENT AGENDA ITEMS APPROVED Motion made by Member Masica and seconded by
Member Housh approving the Council Consent Agenda as presented.
Rollcall:
Ayes: Housh, Hovland, Masica, Maetzold
Motion carried.
*MINUTES OF THE REGULAR MEETING OF DECEMBER 4, 2001, SPECIAL MEETING OF
SEPTEMBER 19, 2001, AND SPECIAL MEETING OF DECEMBER 4, 2001,APPROVED
Motion made by Member Masica and seconded by Member Housh approving the Minutes of
the Regular Meeting of the Edina City Council for December 4, 2001; Special Meeting of
September 19, 2001; and Special Meeting of December 4, 2001.
Motion carried on rollcall vote -four ayes.
EMPLOYEE RECOGNITION Mayor Maetzold thanked Engineer Francis Hoffman for his 28
years of service and acknowledged his extraordinary dedication, loyalty and commitment to the
City. Mr. Hoffman explained that he felt lucky to have been able to spend his career working in
Edina. He thanked the Council for their support over the years.
*HEARING ON VACATION OF PORTION OF SPRUCE ROAD CONTINUED TO
TANUARY 15, 2002 AND 60 DAY EXTENSION GRANTED Motion made by Member Masica
and seconded by Member Housh to continue the hearing on the vacation of Spruce Road until
January 15,2002, and to grant a 60 day extension from action and vacation of street.
Motion carried on rollcall vote -four ayes.
RESOLUTION NO. 2001-101, FINAL PLAT APPROVED WITH CONDITIONS FOR OLDE
VERNON 3RD Planner Larsen stated the Council had granted Preliminary Plat approval for this
5-lot addition to the Olde Vernon development on October 16, 2001. They had made a condition
of the approval, that the lots be made a part of the Olde Vernon Homeowners Association. Mr.
Larsen reported that the developer had faxed a signed agreement to this condition to the City
was ready to proceed to final plat.
Member Hovland asked if the final plat conformed to the preliminary plat. Mr. Larsen replied
that the plat had not been modified.
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Minutes/Edina City Council/December 18,2001
Member Hovland introduced the following resolution and moved its adoption:
RESOLUTION NO.2001-101
A RESOLUTION APPROVING
FINAL PLAT FOR OLDE VERNON 3RD ADDITION
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 December 18, 2001, be and is hereby granted final plat
approval.
BE IT FURTHER RESOLVED that the approval of the Final Plat of Olde Vernon 3rd
Addition incorporates the plat into the existing homeowner's association.
Passed and adopted this 18th day of December 2001.
Member Masica seconded the motion.
Rollcall:
Ayes: Housh,Hovland, Masica, Maetzold
Motion carried.
ORDINANCE NO. 850-A22 GRANTED FIRST READING APPROVING PRELIMINARY
REZONING AND RESOLUTION 2001-103 APPROVED AMENDING COMPREHENSIVE
PLAN - 4015 WEST 65TH STREET (STEVEN SCOTT DOVE COMPANY AND CRAIG
COMPANY) Affidavits of Notice were presented, approved and ordered placed on file.
Presentation by Planner
Planner Larsen explained a request has been received from Steven Scott Development Company
and The Craig Company to amend the Comprehensive Plan designation from office to High-
Density Residential Rezone from Planned Office District, POD-1 to Planned Residence District,
PRD-4. The proposal would raze all existing site improvements to allow the construction of a
four-story, 100-unit apartment building on the 3.34-acre site. The building would sit over a two-
level, 193 space parking garage. There would be an additional 35 surface parking spaces on the
north side of the building. the development consists of two building that would be connected by
a single story office and amenity space. He noted the requested redevelopment required no
variances from the City.
Mr. Larsen said the Planning Commission recommended amending the Comprehensive Plan
designation conditioned upon: 1) Final Rezoning, 2) Watershed District Permits; 3) Easement
Vacation and Rededication; and 4) Sewer Line Relocation at Developer's Expense.
Member Masica asked for verification that the proposed redevelopment would lessen traffic in
the area. Mr. Larsen replied that the site could handle an 80,000 square foot office which would
generate approximately 1,100 car trips daily. The 100-unit residential apartments were projected
to generate only about 700 trips daily and then they would not be at peak traffic hours given he
likely tenants.
Member Housh asked if the Council were to approve the requested redevelopment, but the
developer failed to proceed what would happen to the property, specifically the rezoning. Mr.
Larsen replied that the zoning would revert to what it was prior to the request.
Mayor Maetzold noted that Commissioner Brown had voted no on the proposal and stated he
thought further study should happen before any further redevelopment occurred in this area.
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Minutes/Edina City Council/December 18, 2001
Mr. Larsen said he could not elaborate on Mr. Browns decision, but noted that the current
proposal was viable and did not need any variances to proceed.
Member Kelly entered the meeting at this point. The time was 8:15 p.m.
Presentation by Developer:
Craig Alshouse, Craig Company President, introduced Scott Bader, president of Steven Scott
Company. Mr. Alshouse explained that he and Mr. Bader were co-developers of the former
Edina Realty building owned by the Rovick brothers.
Mr. Alshouse stated they felt there was a need for high-end rental housing in Edina. They would
be marketing to working people from the hospital, empty nesters, and professional people. The
apartments will be one bedroom, one bedroom plus den, two bedroom, two bedroom plus den
and four penthouses. The developers intent was for a very residential classic design. Each unit
will have its own washer and dryer. Every unit will have at least one underground parking staff.
Many units will have working fire places. The redeveloped building will cover 43% of the lot
versus the current 46% coverage.
Member Hovland asked what exterior and interior building materials were planned. Dennis
Sutliffe, ESG Architects noted the design was preliminary, but was representative of the final
result. The exterior will be mostly brick and stone, perhaps synthetic stone precasts. He added
the Final Plan's roof scapes will be as shown on the preliminary design.
The Council asked the developers about the possibility of some of the units being made
affordable in view the Minnesota Livable Communities Act. They discussed their desire to make
sure Edina residents have affordable housing available to them. Mr. Alshouse explained that at
this point in the development including affordable housing was just not feasible.
Member Kelly asked what Edina's code was for parking. Mr. Larsen answered that the Code
required two parking stalls per unit with at least 1.25 of these stall underground. The proposed
development more than meets this standard.
Member Housh asked the potential rents. Mr. Alshouse replied at this time it was thought rent
would run between$1,300-$2,300 per month with the four penthouses at a higher rate.
Public Comment
Peter Pustorino, 4005 West 65th Street, stated he was a member of the partnership that owned the
building directly to the east of the proposed redevelopment. Mr. Pustorino expressed his
concern with how much closer the proposed new building will be built to his office building. He
added that in his opinion, this will make it very difficult for him to retain his existing tenants and
potentially rent to new tenants due to the loss of view brought about by the new building.
Mayor Maetzold asked if Mr. Pustorino thought that landscaping could lessen this impact. Mr.
Pustorino said he did not know.
Member Hovland and Mayor Maetzold pointed out that loss of view has not historically been a
reason for not allowing a re-development proposal to proceed. Member Hovland asked the City
Attorney if any law existed that in his opinion would preclude the approval of the requested re-
development. Attorney Gilligan replied that he did not think loss of view constituted legal
means to disapprove a development proposal.
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Minutes/Edina City Council/December 18,2001
Motion of Member Hovland seconded by Member Kelly to close the public hearing.
Ayes: Housh,Hovland, Kelly, Masica,Maetzold
Motion carried.
Member Hovland introduced the following Ordinance and moved to grant it first reading:
ORDINANCE NO. 850-A22
AN ORDINANCE AMENDING THE ZONING ORDINANCE NO. (850)
BY REZONING PROPERTY TO PRD-4
FROM POD-1
THE CITY COUNCIL OF THE CITY OF EDINA,MINNESOTA, ORDAINS:
Section 1. Subsection 850.06 of Section 850 of the Edina City Code is amended by adding the
following thereto:
"The extent of the Planned Residential District,PRD-4 is enlarged by the addition of
the following property:
Lots 1 and 2,Block 2, SOUTHDALE OFFICE PARK SECOND ADDITION
The extent of the POD-1 Planned Office District is reduced by removing the property
described above."
Section 2. Effective Date: This ordinance shall be in full force and effect upon adoption and
publication according to the law.
Member Masica seconded the motion.
Rollcall:
Ayes: Housh,Hovland, Kelly, Masica, Maetzold
Motion carried.
Member Hovland introduced the following resolution and moved its adoption:
RESOLUTION NO. 2001-103
AMENDING THE COMPREHENSIVE PLAN
FOR THE 4015 West 65TH STREET
BE IT RESOLVED by the City Council of the City of Edina, Minnesota that the
Comprehensive Plan of the City be amended by changing the designation from Planned
Office District,POD-1,to Planned Resident District, PRD-4 for the property described as:
Lots 1 and 2,Block 2, SOUTHDALE OFFICE PARK SECOND ADDITION.
Adopted this 18th day of December,2001.
Member Masica seconded the motion.
Rollcall:
Ayes: Housh,Hovland, Kelly, Masica, Maetzold
Motion carried.
*60-DAY EXTENSION FROM ACTION APPROVED FOR PRELIMINARY PLAT FOR
BLAKE HEIGHTS Motion made by Member Masica and seconded by Member Housh
approving the 60-day extension from action for the Preliminary Plat for Blake Heights.
Motion carried on rollcall vote-four ayes.
*BID AWARDED FOR POND SEDIMENT REMOVAL AT BRAEMAR BOULEVARD AND
VALLEY VIEW ROAD (IMP. NO. STS-273) Motion made by Member Masica and seconded
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Minutes/Edina City Council/December 18,2001
by Member Housh for award of bid for removal of pond sediment in Nine-Mile Creek at
Braemar Boulevard and Valley View Road to recommended low bidder, Arnt Construction
Company, Inc., at$14,448.80.
Motion carried on rollcall vote - four ayes.
*BID AWARDED FOR SIX SQUAD CARS FOR POLICE DEPARTMENT Motion made by
Member Masica and seconded by Member Housh for award of bid for six (6) full-size police
squad cars, Police Interceptor model, Crown Victoria, to Superior Ford under State of
Minnesota Cooperative Purchasing Agreement Contract 426133, at$128,550.00.
Motion carried on rollcall vote - four ayes.
*BID AWARDED FOR ONE UNMARKED SQUAD CAR FOR POLICE DEPARTMENT
Motion made by Member Masica and seconded by Member Housh for award of bid for one
unmarked squad car for the Police Department to Hinckley Chevrolet under State of
Minnesota Cooperative Purchasing Agreement under Contract No. 426228, at$19,275.00.
Motion carried on rollcall vote - four ayes.
*BID AWARDED FOR CITY PHONE SYSTEM UPGRADE Motion made by Member Masica
and seconded by Member Housh for award of bid for hardware and software upgrade to the
City phone system to sole bidder, Matrix Communications, at$15,000.00.
Motion carried on rollcall vote-four ayes
*RESOLUTION NO. 2001-104 PUBLIC HEARING DATE SET FOR JANUARY 15, 2002, FOR
VACATION OF PORTION OF CIRCLE WEST Motion made by Member Masica and
seconded by Member Housh introducing the following resolution and moving its adoption:
RESOLUTION NO. 2001-104
CALLING FOR PUBLIC HEARING ON VACATION
PUBLIC STREET RIGHT-OF-WAY
PORTION OF CIRCLE WEST
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 15th day of January 2002, 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 provided in Minnesota
Statutes. Such notice shall be in substantially the following form:
Official Publication)
CITY OF EDINA
4801 WEST 50TH STREET
EDINA, MINNESOTA 55424
NOTICE OF PUBLIC HEARING ON
VACATION OF PORTION PUBLIC STREET
RIGHT-OF-WAY (CIRCLE WEST)
IN THE CITY OF EDINA
HENNEPIN COUNTY MINNESOTA
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Minutes/Edina City Council/December 18,2001
NOTICE IS HEREBY GIVEN that the City Council of the City of Edina, Minnesota will meet
on January 15, 2002, at 7:00 P.M. in the Council Chambers at 4801 West 50th Street for it public
hearing for the proposed vacation of the following described portion of Circle West street
right-of-way and alley right-of-way:
Circle West Vacation
That part of Circle West as dedicated on the plat of Hilldale according to the
recorded plat thereof, Hennepin County, Minnesota, lying Easterly of the
following described line:
Beginning at the Westerly corner of Lot 1, Block 4, Hilldale,thence Northeasterl,(
along a tangential curve, said tangent has an assumed bearing of North 42
degrees 35 minutes 06 seconds West, concave to the East having a radius of
160.00 feet, a distance of 134.06 feet and a central angle of 48 degrees 00 minute,
23 seconds to a point on the Northerly line of Circle West as platted in Hilldale;
thence Southeasterly a distance of 36.05 feet more or less to a point along the
Northerly line of Circle West according to the Recorded Plat of Hilldale, said
point being the Southwest corner of Lot 6, Block 1, Meadowbrook Oaks
according to the recorded plat thereof, situated in Hennepin County, Minnesota;
thence Southerly to the point of beginning and there terminating.
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.
BY ORDER OF THE EDINA CITY COUNCIL
Debra A. Mangen, City Clerk
Dated: December 18,2001
Motion carried on rollcall vote-four ayes.
FEASIBILITY REPORT ON WILLSON ROAD SIDEWALK (IMP S-049) RECEIVED Assistant
Public Works Director Houle explained the Council initiated the sidewalk project along Willson
Road and Normandale Road. The project is feasible from an engineering viewpoint. Identifying
funding sources for this sidewalk is difficult due to the fact that this route is not on our
Municipal State Aid System, is outside of any designated school walking zone and the majority
of adjacent properties are either trunk highway or private golf course. The feasibility study
includes two funding options for the east side:
Option A: City of Edina (70%)
Office Building at 5200 Willson Road (15%)
Perkins Restaurant at 4917 Eden Avenue (15%)
Option B: City of Edina (100%)
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Minutes/Edina City Council/December 18, 2001
Mr. Houle noted he has been contacted by persons requesting a sidewalk to Normandale Court
to Eden Avenue. However the present project is funded will set precedent for the Normandale
project. Mr. Houle commented he is requesting direction from the Council to properly notify
property owners of an impending assessment.
Council comments received included: the primary need for the sidewalk is for 4-5 times a year
when the High School has football games on Friday night; the issue is for safety; traffic is heavy
on the road both of high school athletes and walkers; is this part of the Capital Improvement
Plan; is the lifetime the same for bituminous and concrete; Is it a requirement that assessments
are only levied on the side of the road the sidewalk is on; are there places where a combination of
office/commercial where no assessments were levied; was there no interest from the school
district in the project; could the school district be assessed; could a public hearing be called for
the project; if safety is an issue, the problem is created by the school district; the only way to be
safe is to separate vehicles from foot traffic; funding would be better spent with a walking path
around Braemar, etc; and can not lend support without school district involvement; at the
scheduled joint meeting with the school district the sidewalk could be an agenda item.
Mr. Houle responded the lifetime of bituminous is 10-15 years and for concrete 15-20 years; area
assessments have been done in school areas and are based on school walking zones; most
combination locations are State Aid routes; the school's finance committee was approached about
their interest in the project but the route was not within their walking zones and felt no
obligation to contribute to the project cost;
Attorney Gilligan added the test would be whether the school district would benefit with the
project. Manager Hughes added if the school district consented to the sidewalk, it would be
lawful to assess the property over a period of time and thereby finance their share.
No formal action was taken.
*2002 PUBLIC HEALTH NURSING CONTRACT APPROVED Motion made by Member
Masica and seconded by Member Housh approving the 2002 Nursing Contract to Bloomington
Division of Public Health for$191,871.00.
Motion carried on rollcall vote - four ayes.
*2002-2003 YOUTH RISK BEHAVIOR ENDOWMENT CONTRACT APPROVED Motion
made by Member 1 and seconded by Member 2 approving the contract to the Bloomington
Health Division for Youth Risk Behavior services for calendar years 2002-2003, at$45,377.00.
Motion carried on rollcall vote -four ayes.
RESOLUTION NO. 2001-99, PUBLIC HEARING HELD ON REDEVELOPMENT PLAN
Affidavits of Notice were presented, approved and ordered placed on file.
Manager Hughes explained a series of actions are required by the City Council and the HRA in
order to complete the sale of the Public Project Revenue Bonds Series 2002. As discussed in
previous meetings, the bonds will be used to:
• Remodel and construct an addition to the library next door to City Hall in order to
use it as a new police station; and
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Minutes/Edina City Council/December 18,2001
Construct a new City hall located behind the existing building or remodel the
existing facility for use by the departments that will remain in the building; and
In order to complete the sale of bonds, the following steps must be taken:
1. Conduct a public hearing on the establishment of a Public Facilities Redevelopment
Plan and Redevelopment Project.
2. Award the sale of the Public Project Revenue Bonds Series 2002
3. Authorize execution of a ground lease and lease agreement for the public facilities
project.
Mayor Maetzold opened the public hearing.
Mark Rupp, Ehlers and Association, 3060 Center Point Drive, Roseville, MN explained the City
received three bids for the proposed bond sale. Mr. Rupp stated that since the proposed bonds
were not General Obligation bonds they typically received a rate 1/2 step below the G.O. Bond
rating. The low bid of 5.1725% True Interest was received from RBC Dain Rauscher, Inc. The
bonds have a projected closing date of January 15,2002.
Mr. Hughes explained the interest rate would cause future years levy to need to be increased by
$25,000 each year since the debt service will actually be $1,025,000 annually for the nineteen-year
term of the bond.
Member Housh asked if the difference between building a new facility versus a remodel would
be$1,500,000.00. Manager Hughes answered yes this would be on a gross cost basis.
Mayor Maetzold asked what the process would be. Manager Hughes said the finance portion is
the beginning for the Police Department with bids being solicited for award at the February 19,
2002, meeting. Having the financing in place is extremely important. He added that refined cost
estimates for a new City Hall would be presented to the Council at a work session.
David Kroos, BKV Group, estimated they would need between one and one-half to two months
to do a general layout and image sketches of a proposed building.
Manager Hughes commented this could happen somewhat simultaneously when the Police
Station bids are being awarded.
Member Housh inquired whether bidding both projects at the same time would allow better
economy's of scale. Mr. Kroos said under normal circumstances that would be the case. He
added currently a good bidding window exists for the Police Station. If it were put on hold to
wait for the City Hall project to formulate, that window would be lost.
Mayor Maetzold said conversations he has had with residents lately express the wish that a new
building would"fit-in" with the neighborhood.
Member Housh questioned the useful life of a renovated structure versus a new structure. He
assumed if the renovation were done appropriately, the useful life would be substantial. He
questioned whether the point was significant. Manager Hughes explained that no matter how
good a job is done with the renovation,what remains is a 50 year old infrastructure.
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Minutes/Edina City Council/December 18,2001
Mr. Kroos, concurred with Mr. Hughes that even the renovations completed in 1980 and 1988 are
showing signs of deterioration. There would be significant on-going maintenance on the current
building.
Mr. Housh asked if long-term operating expenses in a new structure would be much less, and
asked what these costs would be. Mr. Hughes said however City Hall would be renovated,
energy costs would be higher than with a new building. Mr. Housh asked if hard figures could
come forward later in the process. Mr. Hughes said staff attempted to located a industry
standard that compares energy costs with a renovated building versus a new building. They
were unable to do so.
Member Hovland that the Council as a whole has the same concerns as Mr. Housh and if the
process continues, they will have all the information necessary to make an informed decision
when the time comes.
Mayor Maetzold opened the public hearing for public comment.
No public comments were received.
Member Kelly made a motion closing the public hearing, seconded by Member Housh.
Ayes: Housh, Hovland, Kelly, Masica, Maetzold
Motion carried.
Member Kelly introduced the following resolution and moved its adoption:
RESOLUTION NO. 2001-99
RESOLUTION APPROVING PUBLIC FACILITIES
REDEVELOPMENT PLAN AND REDEVELOPMENT PROJECT
BE IT RESOLVED by the City Council of the City of Edina, Minnesota as follows:
1. The Commissioners of the Housing and Redevelopment Authority in and for the
City of Edina, Minnesota (the "HRA") have approved the Public Facilities Redevelopment
Plan (the "Redevelopment Plan") and the Public Facilities Redevelopment Project (the
"Redevelopment Project") to be undertaken pursuant thereto in order to provide the City an
improved City Hall and to renovate the Hennepin County Library to be acquired by the City
for use as a public safety facility by the City.
2. This Council on December 18, 2001, held a public hearing on the Redevelopment
Plan and Redevelopment Project 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 Redevelopment Plan
and Redevelopment Project were given an opportunity to express their views with respect
thereto.
3. The land in the area subject to the Redevelopment Plan would not be redeveloped
with improved public facilities without the financial assistance of the HRA, and the
Redevelopment Plan will provide improved public facilities which are needed to serve the
Edina community, and the Redevelopment Plan and Redevelopment Project conform to the
general plan for the development of the City of Edina as a whole.
Passed by the Council this 18th day of December,2001.
Member Hovland seconded the motion.
Rollcall:
Ayes: Housh, Hovland, Kelly, Masica, Maetzold
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Minutes/Edina City Council/December 18,2001
Motion carried.
RESOLUTION NO. 2001-98 APPROVING THE EXECUTION OF A GROUND LEASE/LEASE
AGREEMENT Following a brief Council discussion, Member Kelly introducing the following
resolution and moved its adoption:
RESOLUTION NO. 2001-98
RESOLUTION AUTHORIZING THE EXECUTION OF A GROUND LEASE
AND A LEASE AGREEMENT PROVIDING FOR THE RENOVATION AND
REMODELING OF A CITY HALL AND A PUBLIC SAFETY FACILITY AND
THE LEASE THEREOF BY THE CITY,AND APPROVING THE FORM OF A
RESOLUTION AND AN OFFICIAL STATEMENT
WHEREAS, the City of Edina (the "City") desires to provide adequate facilities for
maintenance and public safety;and,
WHEREAS, pursuant to Minnesota Statutes, Sections 465.71 and 471.64, the City is
authorized to enter into leases of real property, with an option to purchase, provided that the
City retains the right to cancel said lease-purchase contract at the end of any fiscal year during
its term;and,
WHEREAS, pursuant to said statutory authority,the City proposes to enter into a Lease
Agreement, dated as of January 1, 2002 (the "Lease"), with the City of Edina Housing and
Redevelopment Authority (the "Authority"), as lessor, and the City, as lessee, pursuant to
which the Authority will acquire, renovate, remodel and furnish a City Hall and a Public
Safety Facility (the "Facilities"),and the City will lease the Facilities from the Authority;and,
WHEREAS, the Authority (a) authorized the sale of its $12,410,000.00 Public Project
Revenue Bonds, Series 2002 (City of Edina Annual Appropriation Lease Obligations) (the
'Bonds"), to finance the cost of acquiring, remodeling, renovating and furnishing the
Facilities pursuant to action of the Board of Commissioners of the Authority on November 20,
2001 and (b) proposes to adopt a final resolution awarding the sale of the Bonds on December
18,2001 (the"Bond Resolution);
WHEREAS, a form of the Lease and the Bond Resolution have been submitted to and
reviewed by this Council, along with the form of a proposed Ground Lease,to be dated as of January
1, 2002 (the "Ground Lease"), between the City, as lessor, and the Authority, as lessee, pursuant to
which the City will ground lease to the Authority the real estate upon which the Facilities are located
(as permitted by Minnesota Statutes, Section 465.035).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Edina that the
City hereby approves the form of the Lease and Ground Lease and the Mayor and City Manager are
authorized and directed to execute, attest and deliver the Lease and Ground Lease on behalf of the
City. All of the provisions of the Lease and Ground Lease, when executed and delivered as
authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if
incorporated verbatim herein and shall be in full force and effect from the date of execution and
delivery thereof. The Lease and Ground Lease shall be substantially in the form submitted to this
Council with such necessary and appropriate variations, omissions and insertions as permitted or
required, or as the Mayor, in his discretion, shall determine, and the execution thereof by the Mayor
shall be conclusive evidence of such determination.
BE IT FURTHER RESOLVED that the City Council hereby approves the form of the
Official Statement, relating to the Bonds (the "Official Statement"), a draft of which has been
submitted to and received by this Council, and hereby ratifies and confirms its use and distribution
to potential purchasers of the Bonds.
BE IT FURTHER RESOLVED that the City hereby approves the terms of the Bond
Resolution and the sale of the Bonds pursuant thereto, and approves the terms of the Bonds as set
forth in said Bond Resolution and the Indenture(as defined in the Bond Resolution).
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Minutes/Edina City Council/December 18,2001
BE IT FURTHER RESOLVED AS FOLLOWS:
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 Purchaser and other participating
underwriters in the primary offering of the Bonds to comply with amendments to Rule 15c2-12
promulgated by 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 City 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 City 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. The City has complied in all material respects with any undertaking previously entered into
by it under the Rule. If the City fails to comply with any provisions of this section, 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, 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 constitute a default under the Bonds
or under any other provision of this resolution. As used in this section, 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.
(b) Information To Be Disclosed. The City will provide, in the manner set forth in
subsection (c) hereof, either directly or indirectly through an agent designated by the City, the
following information at the following times:
(1) on or before 365 days after the end of each fiscal year of the City, commencing with
the fiscal year ending December 31, 2001, the following financial information and
operating data in respect of the City (the Disclosure Information):
(A) The audited financial statements of the City for such fiscal year, 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
City, 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 City, 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 City; 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
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Minutes/Edina City Council/December 18,2001
available of the type contained in the Official Statement under headings:
Current Property Valuations, Larger Taxpayers, Direct Debt, Overlapping
Debt, Debt Rations, Tax Levies and Collections, Net Tax Capacity Rates,
Population Trend and Employment/Unemployment.
Notwithstanding the foregoing paragraph, if the audited financial statements are not available
by the date specified, the City 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 City 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 (c) or the SEC. If the document incorporated by reference is a final official
statement, it must be available from the Municipal Securities Rulemaking Board. The City
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 City have materially changed or been discontinued, such Disclosure
Information need no longer be provided if the City includes in the Disclosure Information a
statement to such effect; provided, however, if such operations have been replaced by other
City operations in respect of which data is not included in the Disclosure Information and the
City 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 is amended as permitted
by this paragraph (b)(1) or subsection (d), then the City 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;
(1) 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
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Minutes/Edina City Council/December 18,2001
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 City to provide the Disclosure Information required under
paragraph (b)(1) at the time specified thereunder;
(B) the amendment or supplementing of this section pursuant to subsection (d),
together with a copy of such amendment or supplement and any explanation
provided by the City under subsection (d)(2);
(C) the termination of the obligations of the City under this section pursuant to
subsection (d);
(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 City.
(c) Manner of Disclosure. The City 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 at the request of the City 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 City in this section shall remain in effect so long as any Bonds
are Outstanding. Notwithstanding the preceding sentence, however, the obligations of
the City under this section shall terminate and be without further effect as of any date
on which the City 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 City to comply with the requirements of this section 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 (and the form and requirements of the Disclosure Information) may be
amended or supplemented by the City 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 this Council filed in the office of the recording officer of the City
accompanied by an opinion of Bond Counsel, who may rely on certificates of the City
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 City or the type of operations conducted by the City,
Page 13
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Minutes/Edina City Council/December 18,2001
or (b) is required by, or better complies with,the provisions of paragraph(b)(5) of the
Rule; (ii) this section 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 City 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.
(3) This section is entered into to comply with the continuing disclosure provisions of the
Rule and should be construed so as to satisfy the requirements of paragraph (b)(5) of
the Rule.
BE IT FINALLY RESOLVED that this resolution shall be in full force and effect from and
after its passage and that a certified copy hereof be provided to the Authority.
Passed and adopted this 18th day of December,2001.
Member Hovland seconded the motion.
Ayes: Housh,Hovland,Kelly, Masica,Maetzold
Motion carried.
ORDINANCE NO. 2001-10, INCLUDING PUBLIC HEARING ON LIQUOR FEES,
AMENDING CODE SECTION 185 INCREASING CERTAIN FEES APPROVED Affidavits of
Notice were presented, approved and ordered placed on file.
Mr. Hughes noted that consideration of the 2002 fees and charges included a public hearing on
the proposed liquor license fees. He added that the City had eliminated the manager's licenses
during 2001 and a portion of the proposed increase in the on-sale intoxicating license fee was due
to this elimination, plus a CPI adjustment.
Member Hovland indicated that he was uncomfortable eliminating a fee and then raising another
fee to recover the loss of the first one. Member Kelly said he felt that some kind of CPI increase
was warranted, but he agreed with Mr. Hovland. Mayor Maetzold indicated his agreement with
both colleagues. Member Masica also echoed this opinion.
Public Comment
Wayne Kostroski, 4815 Maple Road, stated he also owned Tejas Restaurant at 50th and France.
Mr. Kostroski said he praised the Council and staff for their work with liquor licensees and
enforcement. However, he requested the Council's help in making the state bring the cost of
"club" licenses more in line with on-sale intoxicating licenses. Mr. Kostroski said he felt it unfair
for clubs to pay such a small fee when they can serve the same liquors as on-sale licensees.
No further public comment was offered.
Motion of Member Hovland, seconded by Member Housh closing the public hearing.
Ayes: Housh,Hovland, Kelly, Masica, Maetzold
Motion carried.
Page 14
Minutes/Edina City Council/December 18, 2001
Member Kelly made a motion adopting Ordinance No. 2001-10 setting certain fees and charges
for 2002 as follows:
ORDINANCE NO. 2001 -10
THE CITY COUNCIL OF THE CITY OF EDINA ORDAINS:
Section 1. The following described fees of Schedule A to Code Section 185 are amended to
read as follows:
SECTION SUBSEC. PURPOSE OF AMOUNT FEE
FEE/CHARGE NO.
300 300.02 Redemption of $19.00 15
Subd 2 Impounded
Animals
300 300.02 Disposal of $27.00 19
Subd. 2 animal
450 450.27 Subd 4 Public or semi- $415.00 per annum for each pool 81
public swimming enclosed part or all of the year
pool license $220.00 per annum for each outdoor
bath or pool 82
$120.00 per year for each bath or pool
83
605 605.07 Special Hazard Class I: General hazard and fire 97
Permit safety inspections requiring a special
hazard permit: $100.00
Class II: Special hazard inspection
involving various hazardous
materials and/or processes in
occupancies of buildings less than
3000 sq. ft. in area: $150.00
Class III: Special hazard inspection
primarily directed at,but not limited
to,buildings or occupancies 3000 sq.
ft. or larger where any of the
following are present: Multiple
hazards,Storage handling, and/or
processes involving dangerous or
toxic materials, substances and/or
processes; or Occupancies in which
valuation or high valuation presents
unique circumstances: $250.00
625 625.03 Sprinkler Permit Per Number of Heads: 110
Fees 201 plus $350.00 for first 200
+ $1.25 each addri 1.
head
716 716.02 Recycling Service Single Family-$5.19/quarter 131
Double Bungalow-$5.19/quarter 132
Apts/Condos (2-8 units) 133
$3.87/ uarter
721 721.03 Food Establishment High Risk Food-$490.00 135
Medium Risk Food-$315.00 136
Low Risk Food-$85.00 137
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Minutes/Edina City Council/December 18,2001
721 721.03 Food Establishment Base Fee-$105.00 138
Food Vehicle-$125.00 141
Additional Facility-$105.00 142
Push Cart-$185.00 143
Itinerant Food-$105.00 144
721 721-03 Minimum $75.00 148
Subd. 1 Restaurant Plan
Review Fee-
735 735.03 Supervised Group $35.00 154
Home
Boarding/Lodging $85.00 155
House license
820 820.01 Filing of $330.00 170
application for
vacation of street,
alley or easement
900 900.07 Subd 1 Liquor License Fees
(per year)
-On-Sale $8,240.00 206
Intoxicating
-Off-Sale 3.2 Malt $515.00 207
Liquor
-On-Sale 3.2 Malt $515.00 210
Liquor
-Temporary On- $63.00 216
Sale 3.2% Malt
Liquor
1020 1020 False Automatic $110.00 220
Alarm
1040 1040.08 Loudspeaker $17.00 225
Permit
1100 1100.03 Subd 2 Sewer Service:
-Single Family, -To and including 1600 cubic 235
Town Houses, feet$30.24/quarter
Two-Family -From 1601 cubic feet&over 236
Dwellings, $1.89/100 cubic feet
Apartment
building with four
or less dwelling
units
-Apartment $1.89/100 cubic feet of water used 237
building with more during the quarter whichever is
than four dwelling greater
units:
-Commercial and $1.89/100 per cubic feet of water 238
industrial used during the quarter,whichever
buildings, is greater
including schools
and churches
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Minutes/Edina City Council/December 18,2001
1100 1100.03 Subd 2 Water service: 1. $0.70/ 100 cubic feet for areas 242
of City, except areas
described below.
2. Excessive use charge 244
$0.23/100 cubic ft.
Meter charge: Up to 3/4 inch meter-$8.57 qtr 245
1 inch meter-$11.65 qtr
11/4 inch meter-$13.30 qtr
1 1/2 inch meter-$14.96 qtr
2 inch meter-$24.10 qtr
3 inch meter-$91.48 qtr
4 inch meter-$116.44 qtr
1105 1105.01 Subd 1 Service Availability $1,200.00 per SAC unit x number of 250
Charge (SAC) SAC units computed as pursuant to
Subsection 1105.01,Subd. 1 of this
Code
1110 1110.03 Storm Water $6.00 per quarter pursuant to 255
Draina e Charge formula in Subs. 1110.03
1230 1230.07 Sidewalk cafe $579.00 261
permit
1300 1300.02 Subd 1 Refuse or Recycling $275.00 per year for first vehicle 270
Hauler's License $85.00 per year for add'1 vehicle
1325 1325.03 Tobacco Sale $300.00 per location 280
License
Section 2. The effective date of this Ordinance shall be January 1, 2002.
n
Attest
City Clerk Mayor
Member Hovland seconded the motion.
Rollcall:
Ayes: Housh, Hovland, Kelly, Masica, Maetzold
Motion carried.
RESOLUTION NO. 2001-100 - PUBLIC HEARING ADOPTING THE 2002 ANNUAL
OPERATING BUDGET Member Housh asked if the City's insurance had been reviewed before
final budget preparation. Mr. Hughes answered that the budget had been increased to cover
potential increases. He pointed out that the City had checked with their agent and that its
increases were single digit so the budget should be adequate. Further an insurance reserve had
been established and built over the past few years.
Mayor Maetzold called for public comment. No one appeared.
Member Housh made a motion closing the public hearing. Member Masica seconded the
motion.
Ayes: Housh,Hovland, Kelly, Masica, Maetzold
Motion carried.
Page 17
Minutes/Edina City Council/December 18,2001
Member Masica introduced the following resolution and moved its adoption for the City's
2002 Operating Budget:
RESOLUTION NO. 2001-100
RESOLUTION ADOPTING THE BUDGET FOR
THE CITY OF EDINA FOR THE YEAR 2002,AND
ESTABLISHING TAX LEVY FOR YEAR 2002,
PAYABLE IN 2002
THE CITY COUNCIL OF THE CITY OF EDINA MINNESOTA DOES RESOLVE AS
FOLLOWS:
Section 1: The Budget for the City of Edina for the calendar year 2002 is hereby adopted as after
this set forth, and funds are hereby appropriated therefore:
GENERAL FUND
GENERAL GOVERNMENT
Mayor and Council $ 70,468
Administration 915,569
Planning 348,434
Finance 512,723
Election 110,264
Assessing 698,641
Legal and Court Services 366,000
TOTAL GENERAL GOVERNMENT $ 3,022,099
PUBLIC WORKS
Administration $ 142,019
Engineering 666,096
Streets 4,064,007
TOTAL PUBLIC WORKS $ 4,872,122
PROTECTION OF PERSONS AND PROPERTY
Police $ 5,790,711
Civilian Defense 42,927
Animal control 79,651
Fire 3,437,420
Public Health 481,275
Inspections 609,844
TOTAL PROTECTION OF PERSONS/PROPERTY $ 10,441,828
PARK DEPARTMENT
Administration $ 600,374
Recreation 268,164
Maintenance 1,935,960
TOTAL PARK DEPARTMENT $ 2,804,498
NON-DEPARTMENTAL EXPENDITURES
Contingencies $ 80,000
Special Assessments/City 25,000
Property
Capital Plan Appropriation 50,000
Fire Debt Service 84,000
Employee Programs 123,354
Commissions/Special Projects 200,971
TOTAL NON-DEPARTMENTAL EXPENDITURES $ 563,325
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Minutes/Edina City CounciMpecember 18,2001
TOTAL GENERAL FUND $ 21,703,872
DEBT SERVICE OF THE HRA PUBLIC PROJECT $ 1,000,000
BONDS
Section 2. Estimated receipts other than the General Tax Levy are proposed as hereinafter set
forth:
GENERAL FUND
Other Taxes $ (145,000)
Licenses and Permits 1,839,500
Municipal Court Funds 810,000
Department Service Charges 1,730,916
Other 170,100
Transfer from Liquor fund 525,000
Income on Investments 113,200
Aid-Other Agencies 369,900
Police Aid 300,000
TOTAL ESTIMATED RECEIPTS $ 5,713,616
Section 3. That there is proposed to be levied upon all taxable real and personal property in
the City of Edina a tax rate sufficient to produce the amounts hereinafter set forth:
GENERAL FUND $ 15,990,256
LEVY FOR PAYMENT OF HRA PUBLIC PROJECT $ 1,000,000
BONDS
Passed and adopted by the City Council on December 18,2001.
Member Housh seconded the motion.
Rollcall:
Ayes: Housh, Hovland, Kelly, Masica, Maetzold
Motion carried.
2002-2006 CAPITAL IMPROVEMENT PLAN ADOPTED Mr. Hughes noted that adoption of
the 2002-2006 Capital Improvement Plan funded only the 2002 portion of the plan. He pointed
out the 2002 high lights: Edina aquatic center, fire protection Braemar Arena, upgrade to Golf
Dome restrooms, Vernon Liquor Store Remodel, and Senior Center furnishings. Following a
brief Council discussion, Member Hovland made a motion to adopt the 2002-2006 Capital
Improvement Plan. Member Kelly seconded the motion.
Rollcall:
Ayes: Housh, Hovland, Kelly, Masica, Maetzold
Motion carried.
*CONFIRMATION OF CLAIMS PAID Member Masica made a motion and Member Housh
seconded the motion approving payment of the following claims as shown in detail on the
Check Register dated December 6, 2001, and consisting of 35 pages: General Fund $991,962.64;
CDBG Fund $3,280.00; Communications Fund $3,604.01; Working Capital Fund $75,491.53;
Construction Fund $13,965.63; Art Center Fund $15,810.84; Golf Dome Fund $5,392.73; Aquatic
Center Fund $12,698.00; Golf Course Fund $4,252.04; Ice Arena Fund $4,998.25;
Edinborough/Centennial Lakes Fund $11,158.49; Liquor Fund $158,519.52; Utility Fund
$5,050.41; Storm Sewer Fund $1,771.66; TOTAL $1,307,955.75; and for approval of payment of
claims dated December 13, 2001, and consisting of 42 pages consisting of: General Fund
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Minutes/Edina City Council/December 18,2001
$207,557.66; CDBG Fund $6,924.11; Communications Fund $8,831.79; Working Capital Fund
$86,019.02, Construction Fund $440,784.87; Art Center Fund $7,248.24; Golf Dome Fund
($55.30); Golf Course Fund $3,801.92; Ice Arena Fund $4,949.80, Edinborough/ Centennial
Lakes Fund $2,266.53; Liquor Fund $157,004.16; Utility Fund $168,441.45; Storm Sewer Fund
$5,240.33;Recycling Fund$29,618.50;Payroll Fund$440,000.00;TOTAL: $1,568,633.08.
Motion carried on rollcall vote-four ayes.
There being no further business on the Council Agenda, Mayor Maetzold declared the meeting
adjourned at 10:10 P.M.
City Clerk
Page 20