HomeMy WebLinkAbout2005-06-21 Council Regular Meeting MINUTES
OF THE REGULAR MEETING OF THE
EDINA CITY COUNCIL
HELD AT CITY HALL
JUNE 21, 2005
7:00 P.M.
ROLLCALL Answering rollcall were Members Housh, Hulbert, Masica, Swenson and Mayor
Hovland.
CONSENT AGENDA ITEMS APPROVED Motion made by Member Swenson and seconded by
Member Housh approving the Council Consent Agenda as presented with the exception of
Agenda Item IV.E., Re-siding and Painting Grange Hall Building - Tupa Park, and Agenda Item
V.C.,Use of Developers Fund for Arneson Acres Park Water Service.
Rollcall:
Ayes: Housh, Hulbert,Masica,Swenson, Hovland
Motion carried.
*MINUTES OF THE REGULAR MEETING OF TUNE 7, 2005, APPROVED Motion made by
Member Swenson and seconded by Member Housh, approving the Minutes of the Regular
Meeting of the Edina City Council for June 7,2005.
Motion carried on rollcall vote - five ayes.
JULY 2005 PROCLAIMED AS RECREATION AND PARKS MONTH Mayor Hovland proclaimed
the month of July as Recreation and Parks Month in Edina and encouraged residents to join in
recognizing the importance of our nation's parks and recreation facilities and to support places that
bring a higher quality of life, safer places to play and healthy alternatives through recreation
programming.
Member Housh made a motion approving the month of July 2005 being proclaimed as Recreation
and Parks Month in Edina. Member Hulbert seconded the motion.
Ayes: Housh, Hulbert,Masica,Swenson, Hovland
Motion carried.
*RESOLUTION NO 2005 - 49 APPROVED - 5516 - 5520 FRANCE AVENUE SOUTH (BRAD
COLEHOUR) Motion made by Member Swenson and seconded by Member Housh introducing
the following resolution and moving its adoption:
RESOLUTION NO. 2005-49
APPROVING A LOT DIVISION FOR
5516 - 5520 FRANCE AVENUE SOUTH
WHEREAS,the following described properties are at present one tract of land:
Lot 3, Block 1, BEARDS ELMWOOD TERRACE, HENNEPIN COUNTY,
MINNESOTA
WHEREAS, the owner has requested the subdivision of said tract into separate parcels
(herein called"parcels") described as follows:
PARCEL A: That part of Lot 3, Block 1, BEARDS ELMWOOD TERRACE, Hennepin
County, Minnesota,lying North of the following described line:
Commencing at the Northeast corner of said Lot 3; thence South 0 degrees 04 minutes 00
seconds West along the East line of said Lot 3 a distance of 42.26 feet to the point of
beginning of the line to be described;thence North 89 degrees 42 minutes 13 seconds West
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Minutes/Edina City Councilaune 21,2005
63.06 feet; thence South 0 degrees 00 minutes 00 seconds West 0.54 feet; thence North 89
degrees 42 minutes 13 seconds West 54.12 feet; thence North 0 degrees 15 minutes 55
seconds East 6.05 feet; thence North 89 degrees 42 minutes 13 seconds West 24.32 feet to
the West line of said Lot 3 and there terminating.
PARCEL B: That part of Lot 3, Block 1, BEARDS ELMWOOD TERRACE, Hennepin
County,Minnesota,lying South of the following described line:
Commencing at the Northeast corner of said Lot 3; thence South 0 degrees 04 minutes 00
seconds West along the East line of said Lot 3 a distance of 42.26 feet to the point of
beginning of the line to be described;thence North 89 degrees 42 minutes 13 seconds West
63.06 feet; thence South 0 degrees 00 minutes 00 seconds West 0.54 feet; thence North 89
degrees 42 minutes 13 seconds West 54.12 feet; thence North 0 degrees 15 minutes 55
seconds East 6.05 feet; thence North 89 degrees 42 minutes 13 seconds West 24.32 feet to
the West line of said Lot 3 and there terminating.
WHEREAS, the requested subdivision is authorized under Code Section 810 and it has
been determined that compliance with the Subdivision and Zoning Regulations of the City of
Edina will create an unnecessary hardship and said newly created Parcels as separate tracts of land
do not interfere with the Subdivision and Zoning Regulations as contained in the Edina City Code
Sections 810 and 850;
NOW, THEREFORE, it is hereby resolved by the City Council of the City of Edina that the
conveyance and ownership of the above described tracts of land (PARCEL A and PARCEL B) as
separate tracts of land are hereby approved and the requirements and provisions of Code Sections
850 and 810 are hereby waived to allow said division and conveyance thereof as separate tracts of
land but only to the extent permitted under Code Sections 810 and 850 subject to the limitations set
out in Code Section 850 and said Ordinances are now waived for any other purpose or as to any
other provisions thereof, and further subject,however,to the provision that no further subdivision
be made of said Parcels unless made in compliance with the pertinent Ordinances of the City of
Edina.
Adopted this 21st day of June 2005.
Motion carried on rollcall vote-five ayes.
ORDINANCE NO. 2005-5 APPROVED AMENDING SECTION 900 TO ALLOW THE ISSUANCE
OF ON-SALE INTOXICATING LIQUOR LICENSES TO RESTAURANTS WITH 200 OR FEWER
SEATS IN THE PCD-2 SUBDISTRICT Manager Hughes noted the Council had at their June 7, 2005,
meeting held a public hearing to consider whether to amend City Code Section 900 increasing the
maximum number of seats allowed for a restaurant with an on-sale intoxicating liquor license in the
PCD-2 Zoning District. Mr. Hughes said all PCD-2 Districts would be amended, not just the 50th &
France Business District. He noted that Attorney Gilligan had reviewed Minnesota Statutes as
requested by Council at the June 7th meeting and determined that the City had the authority to limit
the total number of liquor licenses in each separate PCD-2 zoning district and to limit the number of
licenses issued to restaurants in a separate PCD-2 zoning district which were larger than a certain
size. Mr. Hughes reported that the standards or criteria imposed by the City for issuance of a liquor
license must be of an objective nature and the City may not impose subjective standards or criteria to
the issuance of liquor licenses.
Mayor Hovland noted the Council had closed the public hearing at their June 7th meeting, however,
they also asked the requestors of the ordinance amendment meet with the 50th and France Business
Association, so he suggested the Council re-open the public hearing to allow the interested parties to
report the results of their meeting.
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Minutes/Edina City Council/lune 21,2005
Member Masica made a motion to re-open the public hearing on Ordinance No. 2005-5. Member
Swenson seconded the motion.
Ayes:Housh,Hulbert,Masica,Swenson,Hovland
Motion carried.
Public Comment
Grethe Langeland Dillon, stated she was the president of the 50th & France Business Association, the
owner of the Calhoun Insurance Agency and a resident of the County Club area. Ms. Dillon said that
the Board of the 50th& France Business Association voted to welcome the addition of the Parasole
Restaurant to the area. She reported the vote was close and that several members had reservations
about the parking issue. Ms. Dillon said the Association was glad for the opportunity to meet with
Parasole and discuss their proposed restaurant. Ms. Dillon stated that the 50th & France Association
was a small community made up of many small business owners. She said their concern was not only
over parking for patrons of the restaurant, but also employees parking in the ramps. Current
employers in the area have a majority of their staff take public transportation and some restrict the
location employees may park. Ms. Dillion said the Association has struggled for a long.time with
management and regulation of parking. Member Masica asked if the employees were to park off-site
would the concerns of the Association be lessened. Ms. Dillon replied that would be very helpful.
Greg Gadle, President of Parasole Restaurant Holdings, stated that it should be remembered that if
parking was not adequate, then Parasole would not be successful in the venture. Mr. Gadle added
that if the proposed Odeon restaurant were asking for a wine and beer license, the size of the
restaurant would not be an issue. He said that the issue before the Council was not parking,but was
whether to amend the ordinance to allow a larger restaurant in a PCD-2 District to have an on-sale
intoxicating liquor license. Mr. Gadle added that many of his employees would be users of mass
transit and they would consider making arrangements for employee parking off site if necessary to
ensure their restaurant's success.
Member Housh asked for clarification whether the lunchtime volumes and average check referred to
by Parasole in their presentation was the industry average and if it was similar to the other Parasole
restaurants. He also asked if Parasole had a lease agreement with Mr. Curtin. Mr. Gadle replied that
the industry average for lunch business was between 20 and 23 percent of total business and that they
anticipated the average lunch check to be ten dollars. Mr. Gadle said they were very close, but that
not everything had been finalized. He stated they hope for a November opening of the restaurant.
Mayor Hovland asked if Parasole had conducted any parking surveys and commented the ten dollar
lunch average seemed a bit light. Mr. Gadle said they were using the parking survey numbers
reported by City staff and reminded that the ten dollar lunch check was an average.
Member Swenson asked how many employees would be expected to be on-site during lunch time.
Mr. Gadle said between ten and twenty employees would be on-site.
Wayne Kostroski, 4815 Maple Road, 3910 West 50th Street, stated he was the owner of Tejas
Restaurant. Mr. Kostroski said he felt that Parasole was a quality restaurant operator and would be a
welcome addition to the 50th & France Business area. However, he stated he was not in favor of
allowing them to be the driving force behind amending the City's liquor regulations. Mr. Kostroski
said his concern was based both as a business person and resident. He asked what was the
compelling reason to change the ordinance at this time. The 50th & France area was already going to
be undergoing a large change with the Haugland Development whose effect on parking was
currently not known. Mr. Kostroski suggested waiting until further study was done and urged the
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Minutes/Edina City Council/lune 21,2005
Council to take more time to consider the requested change. In addition, he stated he felt that the
figures presented to the Council were not accurate and no decision should be made until accurate
information could be looked at in detail. He said that lunch in Edina was more spread out than
previously stated, expressed concern about employee parking for the new restaurant; questioned Mr.
Curtin's statements about adequate parking on the corner; and requested the Council postpone
making a decision to gather more information.
David Burley, 5349 Whiting Avenue, presented a table of data that he gathered from the Twin Cities
Organic Restaurants Association. Mr. Burley stated that at his Edina restaurant lunch began at 11:00
a.m. and went until 3:00 p.m. He said that there was not always convenient parking available and
patrons complain about parking.
Carol Britton, owner of SkinKlinic, 3916 West 50th Street, 3960 Saxony, stated that as a Board member
of the 50th & France Association she wanted to embrace the new restaurant because she believed it
would bring new vitality and energy to the area. She said she felt that people would come just
because it was busy and they would want to also go to the"busy" restaurant.
Member Masica asked if Parasole has any plan under consideration for off-site parking. Mr. Gadle
answered that they were willing to look at potential solutions,but asked that they be allowed.to open
and then see if a problem occurred. He reiterated that parking had to work for the restaurant in order
for them to be successful.
Member Swenson made a motion to close the public hearing seconded by Member Housh.
Ayes:Housh, Hulbert,Masica,Swenson,Hovland
Motion carried.
Council Discussion/Action
Member Housh asked what other were the potential uses for which the site could be used. Member
Housh speculated that potentially other uses could put greater stress on parking and traffic than a
200-seat restaurant. Mr. Hughes replied that any retail, office, or medical use would be allowed. The
space could also be a restaurant with a wine and beer license. He said about the only prohibited uses
would be a very large department store or a car dealership. Mr. Hughes reiterated that parking was
typically a day time issue and that after 5:00 p.m. ample parking existed.
Member Swenson asked if it would be possible to look at restaurants on a case by case basis and
change the zoning if appropriate. Attorney Lindgren replied that the Council can limit the number of
licenses issued in a PCD-2 District, but he said they could not change the ordinance for one site at a
time. The code would need to be amended for entire zoning districts and a limit on the number of
licenses set if desired.
Member Masica stated her support for the amendment. She said she appreciated the concern
regarding parking availability, but felt the new restaurant would help keep the area energized and
vital. Member Masica said she believed the market should be left to drive how many restaurants
settle in the area and the Council should not enact any limits at this time.
Member Housh stated he appreciated the discussion, and added the evolution of changes in Edina's
stance on service of liquor should be reviewed. The Council has always looked at and decided
whether or not a particular change would be good for the City as a whole. He said he agreed the
proposed restaurant would add vitality to the area.
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Minutes/Edina City Council/june 21,2005
Member Hulbert stated the Council should remember that the issue was not one particular restaurant,
but: rather an amendment to City Code. She recommended limiting the number of large restaurants
with on-sale liquor licenses in the PCD-2 District until the 50th & France Area Development Plan can
be:reviewed and put into place.
Member Swenson said that two weeks ago she also felt that the market should drive the number of
restaurants in the area, but she had come to agree with Member Hulbert and could see limiting the
number of restaurants in a PCD-2 District.
Mayor Hovland thanked all involved in the discussion acknowledging that a balance was needed to
keep the area vital, but not overwhelmed. He agreed this was somewhat intangible because of the
unknown impact of the new Haugland development. Mayor Hovland said that while he could see
both sides of the issue, he felt that he also did not want to create a monopoly by allowing only one
restaurant in the area. He also said he felt the market should drive which restaurants were operating
in an area.
Member Swenson stated she was persuaded to allow the market to drive what restaurants operate in
the area and would support the amendment.
Member Housh made a motion approving the following ordinance:
EDINA ORDINANCE NO. 2005-5
AN ORDINANCE AMENDING SECTION 900
TO ALLOW THE ISSUANCE OF ON-SALE INTOXICATING LIQUOR LICENSES TO
RESTAURANTS WITH 200 OR FEWER SEATS IN THE PCD-2 SUBDISTRICT
THE CITY COUNCIL OF THE CITY OF EDINA ORDAINS:
Section 1. Subd. 5 of Subsection 900.09 are amended to read as follows:
Subd. 5 On-Sale Intoxicating Liquor Licenses. In addition to the requirements of Subd.
1 of this Subsection, no On-Sale Intoxicating Liquor License shall be granted to i) any
establishment other than a restaurant or hotel located in the PCD-2, PCD-3, POD-2
Subdistricts or the Mixed Development District as established by Section 850 of this Code
ii) any amusement or recreation establishment including amusement arcades, bowling
centers, pool halls or establishments offering amusement devices as defined by Section 215
of this Code. In addition, no On-Sale Intoxicating Liquor License shall be granted to any
establishment located in the PCD-2 Subdistrict which will contain more than 200 seats;
provided, however, a premises in the PCD-2 Subdistrict holding a wine license issued by
the City which was in effect on December 31, 1998, and which contains more that 200 seats
may be issued an On-Sale Intoxicating Liquor License but the licensed premises shall not
be thereafter expanded to include more seats than existed on December 31, 1998. For
purposes of the preceding sentence, outdoor, seasonal dining areas shall not be included in
the seat count provided that such outdoor seating comprises 20 percent or less of the total
seating capacity of the licensed premises.
Section 2. This Ordinance shall be in full force and effect upon passa e.
First Reading: June 7,2005
Second Reading: June 21,2005
Published: June 30,2005
Attest
Debra A. Marigen; City,, lerk James B. Hovland, Mayor
Member Masica seconded the motion.
I:ollcall:
Ayes: Housh, Masica,Swenson, Hovland
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Minutes&dina City Council/lune 21,2005
Nay: Hulbert
Motion carried.
ORDINANCE NO. 2005-6 APPROVED AMENDING SECTION 445 ALLOWING
ADMINISTRATIVE DECISION ON WAIVER OF WATER SERVICE IN MULTIPLE DWELLING
UNITS WITH WAIVER OF SECOND READING Mr. Hughes said the Council at their June 7, 2005
meeting heard an appeal from a resident who had been denied a waiver by the Construction Board of
Appeals from the requirement of Edina's Code for separate sewer and water connections for double
dwelling unit buildings or townhouses. The Council granted a waiver from the Code regulation for
that resident. Mr. Hughes said the staff had in response to the Council researched the current Code
Section 445.04 to ascertain the reason for its adoption. Mr. Hughes reported the current language had
been adopted in October 1976. He stated the Council minutes showed no discussion and added staff
speculated the code was adopted to allow the City the ability to shut off water service for non-
payment. Mr. Hughes said current practice of the City was to assess past due water bills in lieu of
discontinuing water service.
Mr. Hughes stated staff felt the waiver requirements should remain,but be modified to permit staff to
grant the waivers under certain conditions. He said the revised language would allow the building
official to grant a waiver if it could be demonstrated that the sewer and water connections were in
compliance with building code requirements. The appellant would retain their right to appeal a
waiver denial to the Construction Board of Appeals and the City Council.
Member Masica asked if the change would only apply to double unit dwellings and asked what the
typical size OF water service was used on new homes. Building Official Kirchman responded that the
amendment would only affect double unit dwellings. He said most new homes have either a one inch
or one and one half inch service.
Member Hulbert made a motion to grant first reading and waive second reading of the following
ordinance:
ORDINANCE NO. 2005-6
AN ORDINANCE AMENDING SECTION 450 AND 850
OF THE CODE OF ORDINANCES
REGARDING INDIVIDUAL WATER
CONNECTIONS IN THE
DOUBLE UNIT DWELLING DISTRICT (R-2)
AND THE PLANNED RESIDENCE DISTRICT(PRD)
THE CITY COUNCIL OF THE CITY OF EDINA,MINNESOTA,ORDAINS:
Section 1. Subsection 445.05 of Section 445 of the Edina City Code is hereby amended to
read as follows:
"445.05 Waiver. Notwithstanding anything herein to the contrary, any connection requirement
may be waived by the Building Official upon request of the owner of the property for which.the
waiver is requested and upon a finding being made by the Building Official that the sewer and
water connections are in compliance with building code requirements,and that the waiver will not
be substantially detrimental to the public welfare or to other lands or improvements in the
neighborhood of the property. If the waiver is from the requirements of Subsection 445.01, such
waiver shall be granted upon the condition that the owner of such property or properties shall
comply with Section 710 of this Code. If the waiver is from the requirements of Subsection 445.02,
such waiver shall be granted upon the further condition that the owner or owners of the property
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Minutes/Edina City Council/iune 21,2005
or properties shall execute and deliver to the City a recordable agreement, in form and substance
acceptable to the Manager,providing:
A. That the City shall not be liable to any owners or occupiers of the property or properties
for any damage or injury to persons or property resulting from a lack of the required
separate and independent connections;
B. That all owners of the property or properties served by less than the required separate
and independent connections shall share equally in any costs incurred as a result of not
having the required separate and independent connections and shall pay equally all sewer
and water charges made for services to such property or properties;
C. That the City may determine the charges for water and sewer usage by allocating
consumption equally among all properties using the common connection and totaling the
separate charges based upon such allocation;
D. That the City may discontinue water and sewer services to such property or properties
pursuant to Section 1100 of this Code even though such discontinuance will affect property
in addition to that of the persons causing the delinquency;and
E. That, if the property or properties are thereafter platted or subdivided or submitted to
the Minnesota Uniform Condominium Act, to permit the sale of individual townhouses or
individual lots or individual dwelling units, the City may require that, in connection with
such platting or subdivision or submittal, each such individual townhouse, lot or dwelling
unit shall have sewage disposal lines and water lines connected directly and separately
from all other townhouses or lots to the sanitary sewer mains and water mains serving such
townhouse, lot or dwelling unit."
Section 2. Subsection 850.12, Subd. 5,paragraph B shall be amended to read as follows:
"A. Sewer and Water Connections. Each dwelling unit must be separately and
independently connected to public sanitary sewer and water mains or shall have been granted a
waiver thereof in accordance with Section 445 of this Code."
Section 3. Subsection 850.13, Subd 7 paragraph E shall be amended to read as follows:
"E. Sewer and Water Connections for Townhouses. Each townhouse shall be separately
and independently connected to public sanitary sewer mains and water mains or shall have been
granted a waiver thereof in accordance with Section 445 of this Code."
Section 2. Effective Date. This ordinance shall be in full force and effect after its
adoption and publication according to the law.
First Reading: June 21, 2005
Second Reading: Waived
Published:., .June 30,2005
l !qi
Attest r��
Debra A. Mangen,City Clerk - James B. Hovland, Mayor
Member Housh seconded the motion.
r:ollcall:
Ayes: Housh, Hulbert, Masica,Swenson, Hovland
Motion carried.
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Minutes/Edina City Council/tune 21,2005
*BID AWARDED FOR FAIRWAY DRAINAGE SYSTEM - BRAEMAR GOLF COURSE Motion
made by Member Swenson and seconded by Member Housh for award of bid for Braemar Golf
Course fairway drainage system to recommended low bidder,Hartman Companies at$17,751.00.
Motion carried on rollcall vote-five ayes.
*BID AWARDED FOR 2005 FIRE PUMPER (CONTINUED FROM JUNE 7, 2005) Motion made by
Member Swenson and seconded by Member Housh for award of bid for a 2005 fire engine/pumper
1500 GPM to recommended low bidder,Custom Fire Inc. (Freightliner M2112) at$263,207.00.
Motion carried on rollcall vote-five ayes.
*BID AWARDED FOR SCHAEFER ROAD, STREET AND UTILITY IMPROVEMENT NOS. A-
216, SS-418, STS-205,WM-442,CONTRACT 05-7 Motion made by Member Swenson and seconded
by Member Housh for award of bid for Schaefer Road, Road, Street and Utility improvements,
Improvement Nos. A-216, SS-418, STS-205, WM-442 Contract 05-7, to recommended low bidder,
Midwest Asphalt Corporation at$264,290.00.
Motion carried on rollcall vote-five ayes.
AWARD OF BID FOR EDINBOROUGH PARK POOL RENOVATION Director Keprios explained
the Edinborough Park Pool's filtration and circulation system needed to be renovated. Currently there
was no over-flow capacity system (balance/surge tank) in place for displacement of water during
heavy use times. The renovation will replace the labor-intensive and worn existing DE filtration
system with a new sand filtration system requiring less manpower to maintain on a daily basis. Staff
estimated the cost of the project to be approximately $60,000. The Engineer's estimate was $91,000.00.
Mr. Keprios noted that five vendors paid for specifications for the project;however, only one bid was
received from Abhe and Svoboda,Inc.,Pool Construction at$86,937.00.
Member Swenson inquired when the pool was constructed and if the filtration was at the end of its
useful life. Mr. Hughes responded it was built in the 1980's. Adam Saboe, Gremmer & Associates,
Inc., Consulting Engineers said that twenty years for the existing type of system was at the end of its
full life span.
Member Hulbert asked what the life span will be on the new filtration system. Mr. Saboe said twenty
years of service should be expected with the new system.
Member Masica asked where in the process was an engineer's expertise sought. Mr. Keprios
responded staff typically prepared the budget for inclusion in the Capital Improvement Program and
a consultant was hired when the actual specifications and bid were being prepared.
Member Housh asked if only receiving one bid when five specification packets were obtained by was
typical. Mr. Saboe said the project had tight time constraints which may be the main reason why only
one bid was received.
Member Swenson made a motion approving the award of bid for the Edinborough Park Pool
renovation project to recommended sole bidder, Abhe & Svoboda, Inc. & Pool Construction, Inc.,
at$86,937.00. Member Masica seconded the motion.
Ayes: Housh, Hulbert,Masica,Swenson,Hovland
Motion carried.
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Minutes/Edina City Council/iune 21,2005
AWARD OF BID FOR GRANGE HALL BUILDING PAINTING AND RE-SIDING (TUPA PARK)
Member Masica removed the award of bid for Grange Hall building painting and re-siding for
additional information. She inquired whether this would be a total re-siding project. Mr. Keprios said
that only boards that have rotted on Grange Hall would be replaced with a cedar product.
Motion made by Member Swenson and seconded by Member Housh for award of bid for Grange
Hall building painting and re-siding to recommended low bidder,Westurn Roofing and Siding at
$23,414.00.
Ayes: Housh,Hovland,Masica,Swenson, Hovland
AWARD OF BID FOR INSURANCE RENEWALS: WORKERS' COMPENSATION, GENERAL
LIABILITY AND PROPERTY Assistant to the City Manager Smith explained that three insurance
coverage's were up for renewal. She introduced Mr. Bill Homeyer, Harris-Homeyer Company, the
agent who writes the Workers' Compensation Insurance with League of Minnesota Cities Insurance
Trust (LMCIT).
Member Housh inquired whether even higher deductible quotes were possible to obtain. Mr.
Homeyer said the deductible amounts began at $250.00 and escalated incrementally. He added not
many insurance companies were interested in insuring municipalities.
Member Swenson asked for an explanation of the experience modifier. Mr. Homeyer said it was a
mathematical formula that was applied to the City's cost of claims.
Member Masica asked how long the cities that were queried had policies with the $10,000 deductible
clause. Ms. Smith said the cities she contacted had been insured with the $10,000 deductible for three
to five years.
Member Housh questioned how this deductible would be handled in the City's budget. Mr. Hughes
responded the budget for insurance would be estimated and with dependency on the reserve to fill in
the gap. Mr. Housh inquired why St. Paul Travelers Insurance, the company that writes the other
lines of insurance would not write the Workers' Compensation. Mr. Homeyer said St. Paul Travelers
no longer wrote Workers' Compensation polices.
Ms. Smith said the budget has $385,000 earmarked for the Workers' Compensation insurance which
would be approximately$50,000 over the anticipated deductible premium.
Member Housh made a motion for award of bid for Workers' Compensation Insurance for policy
year July 1, 2005 -July 1,2006,to recommended sole bidder,League of Minnesota Cities Insurance
Trust(LMCIT) at$355,230.00 with a$10,000.00 deductible.Member Hulbert seconded the motion.
Ayes: Housh, Hulbert,Masica.Swenson, Hovland
Motion carried.
Ms. Smith explained that the quote for the City's General Liability Insurance which covers,
Equipment, Liquor Liability, Pollution, Employee Benefit, Law Enforcement Liability, Employee
Practices Liability, Public Entity Management Liability, Auto and Terrorism. The total quotation was
for $474,854 and depicts a 2.1% reduction in the total premium.
Member Masica asked why the Liquor Liability portion of the policy increased. Mr. Homeyer
explained the premium was based upon volume of business and was not subject to audit. The only
portion of the General Liability policy that was audited was the auto.
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Minutes/Edina City Council/Tune 21,2005
Member Housh said while he realized St. Paul Travelers has been a positive carrier of the City's
General Liability insurance he questioned what other carriers would be interested in writing this type
of policy. Mr. Homeyer said if a similar carrier existed,his agency has solicited quotes from them.The
League of Minnesota Cities would be an option but the last time they quoted,rates were very high.
Member Masica made a motion for award of bid for General Liability Insurance for policy year
July 1, 2005,to July 1, 2006,to recommended sole bidder, St. Paul Travelers at$474,854.00. Member
Swenson seconded the motion.
Ayes:Housh,Hulbert,Masica,Swenson,Hovland
Motion carried.
Ms. Smith indicated the final insurance renewal was for Property, Boiler& Machinery, Inland Marine
and Crime insurance. Three quotations were received with St. Paul Travelers being the low bidder.
Ms. Smith introduced Jack Carroll from the AON Risk Services,Inc. of Minnesota to answer concerns.
Mr. Carroll commented that the quotation depicted a 30% decrease from last year's premium. One
reason that the premium amount was lower was that the market was on the way down.
Member Masica made a motion for award of bid for Property, Boiler and Machinery, Inland
Marine and Crime Insurance for policy year July 1, 2005, to July 1, 2006, to recommended low
bidder, St. Paul Travelers,at$76,736.00. Member Swenson seconded the motion.
Ayes: Housh, Hulbert,Masica,Swenson,Hovland
Motion carried.
'BID AWARDED FOR PUMP REPLACEMENT FOR 72ND STREET LIFT STATION #6 -
IMPROVEMENT NO. LS-34 Motion made by Member Swenson and seconded by Member Housh
approving the award of bid for pump replacement for the 72nd Street Lift Station #6, Improvement
No.LS-34,to recommended sole bidder,Electric Pump,at$15,560.72.
Motion carried on rollcall vote-five ayes.
APPEAL OF CONSTRUCTION BOARD OF APPEAL DECISION FOR MARK HORNIG (5313-
5315 MALIBU DRIVE) APPROVED Affidavits of Notice were presented, approved and ordered
placed on file.
Mr. Hughes noted that the adoption of the previous Ordinance renders the appeal of the Construction
Board of Appeal decision for Mark Hornig moot. He suggested the Council grant the appeal subject to
the Ordinance adopted previously.
No comments were received from the public.
Member Swenson made a motion closing the public hearing, seconded by Member Housh.
Rollcall:
Ayes: Housh,Hulbert,Masica,Swenson,Hovland
Motion carried.
Member Swenson made a motion granting the appeal of the Construction Board of Appeal
decision for Mark Hornig,subject to Ordinance No. 2005-6,as approved.
Rollcall:
Ayes: Housh, Hulbert,Masica,Swenson,Hovland
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Minutes/Edina City Council/Tune 21,2005
Motion carried.
'TRAFFIC SAFETY STAFF REVIEW OF TUNE 7, 2005, APPROVED Motion made by Member
Swenson and seconded by Member Housh approving the Traffic Safety Staff Review of June 7,
2005, Section A;
1. Installation of "Disabled Child Area" signs along the 7500 Block of West Shore Drive;
and
2. Placement of "No Parking" signs on the north side of Biscayne Boulevard between
Newport Drive and Deville Drive;and
Section B. and C.
Motion carried on rollcall vote-five ayes.
USE OF DEVELOPERS FUND FOR ARNESON ACRES PARK WATER SERVICE APPROVED
Member Housh asked that the use of the Developers Fund for Arneson Acres Park water service be
removed from the Consent Agenda for more information. He asked about the sidewalk and
renovations planned in the area and whether a safety railing was included in the plan. He said there
appeared to be quite a hazardous drop-off. Mr. Houle said there would be a safety railing installed
that will separate the sidewalk from the street and boulder retaining wall.
Member Housh made a motion approving use of the Developers Fund to provide for new 2" pipe
service from the water main at 70th Street to the Arneson Acres Park, Historic Museum and Terrace
Room building water service. Member Hulbert seconded the motion.
Ayes: Housh, Hulbert, Masica,Swenson, Hovland
Motion carried.
'COMMUNITY EDUCATION SERVICES BOARD APPOINTMENTS APPROVED Motion made
by Member Swenson and seconded by Member Housh appointing Ann Swenson, as the Council
Representative and Linda Presthus as the Park Board Representative on the Community Education
Services Board for a term to June 30, 2006.
Motion carried on rollcall vote -five ayes.
'CONFIRMATION OF CLAIMS PAID Member Swenson made a motion and Member Housh
seconded the motion approving payment of the following claims as shown in detail on the Check
Register dated June 9, 20905, and consisting of 27 pages: General Fund $163,543.74;
Communications Fund $1,135.07; Working Capital Fund $15,289.21; Construction Fund $5,789.56;
Art Center Fund$4,607.82; Golf Dome Fund$1,002.01; Aquatic Center Fund$21,771.58; Golf Course
Fund $21,569.10; Ice Arena Fund $3,037.44; Edinborough/Centennial Lakes Fund $437.60; Liquor
Fund $146,294.99; Utility Fund $101,175.62; Storm Sewer Fund $12,724.09; Recycling Fund $10.64;
PSTF Agency Fund $2,997.32; TOTAL $501,385.79; and for approval of payment of claims dated
June 15, 2005, and consisting of 39 pages: General Fund $187,133.86; CDBG Fund $3,610.00;
Communications Fund $4,788.39; Working Capital Fund $13,240.17; Construction Fund $1,012.80;
Art Center Fund $7,521.70; Golf Dome Fund $3,351.59; Aquatic Center Fund $100,383.27; Golf
Course Fund $37,670.40; Ice Arena Fund $8,183.87; Edinborough/Centennial Lakes Fund $9,999.19;
Liquor Fund$184,847.47; Utility Fund$316,751.43; Storm Sewer Fund$995.04;PSTF Fund$1,223.74;
TOTAL $880,712.92.
Motion carried on rollcall vote-five ayes.
BOND SALE APPROVED - GENERAL OBLIGATION PARK AND RECREATION REFUNDING
BONDS, SERIES 2005A; GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS,
SERIES 2005B; TAXABLE GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS,
SERIES 2005C; AND GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS,
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Minutes/Edina City Council/iune 21,2005
SERIES 2005D Assistant City Manager Anderson reminded the Council he had estimated at the June
7, 2005, Council meeting the potential bond savings. He introduced Mark Ruff and Bruce DeJong
from Ehlers and Associates, with results of the sale. Mr. Ruff reminded the Council that all the bonds
were refunding bonds.Mr. Ruff indicated a meeting had been held with City staff,Standard&Poor s
and Moody's Investors Service, Inc., noting that the City retained their "Aaa" bond rating with
Moody's and an "AAA" rating with Standard & Poor s. Mr. Ruff said this was not a common
occurrence with a city the size of Edina. Mr. Ruff noted that upon completion of the sale, the total
gross debt service savings will be $1.75 million dollars. In today's dollars that amount would be $1.3
million dollars. He explained that because the TIF District would end early savings would accrue not
only to the City but also to the school district and Hennepin County residents.
Mr. Ruff said the first Bond was a Park and Recreation Refunding Bond, Series 2005A, an issue that
occurred several years ago. The winning low bidder was Cronin & Company, Inc. of Minneapolis,
MN. Three bids were received. The size of the issue was reduced to $5,375,000 with present value
savings of$565,886.82, $16,618.00 higher than projected.
Member Masica inquired who buys most of the municipal bonds. Mr. Ruff responded two large
purchasers were Piper Jaffray & Company, and RBC Dain Rauscher, Inc. Cronin & Company was a
smaller firm but they work with large national firms.
Mr. Hughes asked who were the end purchasers of these bonds. Mr. Ruff responded that they were
primarily funds and individual buyers.
Member Swenson introduced Resolution No. 2005-50 and moved its adoption authorizing the sale
of $5,375,000 General Obligation Park and Recreation Refunding Bonds, Series 2005A to the low
bidder, Cronin &Company,Inc. Member Housh seconded the motion.
Ayes: Housh,Hulbert,Masica,Swenson, Hovland
Motion carried.
Mr. Ruff indicated that the General Obligation Tax Increment Refunding Bonds,Series 2005B received
six bids with the low bidder being Piper Jaffray & Company of Minneapolis, at $10,520,000. The
present value savings came in at$291,986.41.
Mayor Hovland asked for more information on the comparative savings on the bond. Mr. Ruff
explained the projected savings on the bond was approximately $241,493.04 with the results of the
sale being approximately$50,000 higher,
Member Swenson introduced Resolution No. 2005-51 and moved its adoption authorizing the sale
of$10,520,000 General Obligation Tax Increment Refunding Bonds, Series 2005B to the low bidder
Piper Jaffray&Company. Motion seconded by Member Housh.
Ayes: Housh,Hulbert,Masica,Swenson,Hovland
Motion carried.
Bruce DeJong elaborated that there was a huge amount of interest in these taxable tax increment
bonds as there were very few AAA bonds that come to the market. Ten bids were received with a
fairly tight spread in the range of bids. Mr. DeJong said results of the sale were at $6,220,000 with
comparative savings of $209,067.33 or approximately $14,911.35 higher than was anticipated
previously.
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Minutes/Edina City Councioune 21,2005
Member Masica inquired whether the national interest in these bonds was because of the City's AAA
rating. Mr. DeJong said he believed this was the case. Mr. Ruff added the call dates on the bonds have
a short term call date and there were not many AAA taxable issues.
Member Swenson introduced the Resolution No. 2005-52 and moved its adoption authorizing the
sale of $6,220,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 2005C to
low bidder Piper Jaffray&Company. Member Housh seconded the motion.
Ayes: Housh,Hulbert,Masica,Swenson,Hovland
Motion carried.
Mr. DeJong said Series 2005D, tax increment bonds received three bids with the low bidder being
Piper Jaffray & Company of Minneapolis at $3,505,000. The present value savings was $229,532.12.
The final maturity date of 2013 with a call date of 2012 reduced the number of bidders.
Member Masica questioned the information that stated that, "recent Minnesota tax legislation could
have an adverse effect on the values of bonds". Mr. Ruff said the risk factor does not affect the
underlying security of the bonds yet there were things outside of the Edina's control that may affect
their investment.
Member Swenson made a motion approving the Resolution No. 2005-53 authorizing the sale of
$3,505,000 General Obligation Tax Increment Refunding Bonds, Series 2005D to low bidder Piper
Jaffray &Company. Member Housh seconded the motion.
Ayes: Housh, Hulbert,Masica,Swenson,Hovland
Motion carried.
Mayor Hovland and Member Masica commended staff with maintaining the AAA and Aaa Bond
Ratings from Standard&Poors and Moody's for another year.
COUNCIL CONCERNS:
Member Hulbert noted at the recent Transportation Commission meeting,a vote was taken to include
a voting student member on the Commission. Mr. Hughes said after the Planning Commission meets,
an ordinance amendment could be prepared for the next Council Agenda.
Member Hulbert presented a pictorial proposal to encourage a feasibility study of the area for
possible construction of a Multi-Purpose Trail along the Soo Line Spur. Member Hulbert noted that
funding for the project would need to be applied for by July 29,2005. She shared information on:
• Current Status of the Location;
• Corridor of Destinations Across Edina;
• Metro-Wide Connections; and
• Reasons to Build a Multi-Purpose Trail
Mr. Houle shared that about two years ago, funds were solicited for a trail from Vernon Avenue to
the west LRT line of approximately two miles of trail. One million dollars of Federal Funds as well as
State Aid Funds were acquired for the 2007-2008 project. Staff was working on preliminary designs
presently with consultants and the City of Hopkins. The application took four to six months to
complete. Mr. Houle noted that to apply for the funding,a$10,000 cost was would be incurred.
Mr. Hughes suggested staff attend the informational meeting scheduled for June 29, 2005, and report
back to the Council at the July 5,2005,meeting.
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Minutes/Edina City Council/Tune 21,2005
TENTATIVE COUNCIL WORK SESSION SCHEDULED FOR JULY 19, 2005 Following a brief
Council discussion, a Council Work Session dealing with municipal consent, was tentatively
scheduled for July 19,2005,at 5:30 P.M.
MAYOR HOVLAND AND MAYOR PRO-TEM HOUSH APPOINTED TO COMPENSATION
COMMITTEE TO REVIEW CITY MANAGER'S SALARY PACKAGE Member Swenson made a
motion appointing Mayor Hovland and Mayor Pro-tem Housh to serve on a Compensation
Committee to review City Manager Hughes salary package. Member Hulbert seconded the motion.
Ayes: Housh,Hulbert,Masica,Swenson,Hovland
Motion carried.
OPENINGS ON ASSOCIATION OF METROPOLITAN MUNICIPALITIES (AMM) 2005 POLICY
BOARD NOTED Mr. Hughes indicated that applications for serving on the 2005 Policy Committee of
the Association of Metropolitan Municipalities (AMM) Board were included in the packets. He
encouraged the Council to volunteer for these openings.
EMPLOYEE RECOGNITION RECEPTION TO BE HELD JUNE 23, 2005 Mr. Hughes encouraged
the Council's attendance at the Employee Recognition Reception on June 23, 2005, at Braemar Golf
Course Clubhouse.
There being no further business on the Council Agenda, Mayor Hovland declared the meeting
adjourned at 9:55 P.M.
i l\
City Clerk
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