HomeMy WebLinkAbout19461108_SPECIAL52 / 10/23/L,6
I €!E IT FURTHER R%SQLKiLD that the Clerk be directed to advertise for
bids for proposals for doing the work described in said plans and speci-
fications in The Hennepin county Review ,and the Construction Bulletin 011
October 31, Xovember 7 and 14, 1946 and said bids to be opened on
21ovember 25, 1946.
Kotion to zdont the 8esolution was seconded by Xillson, and on Rollcall
there :.rere four ayes_rsznd no y?ajrs, as follows:
Hawthorne, aye; and 'hristopher, aye; and the Resolution vas adopted,
rkllson, aye; hey, aye;
of the Vill&e Co~ncil
IIqor
Pltnning Codssion,
confirmed bp Council VRS seconded by Haxthorne and carried,
presented name of S.S. Thorpe, JF. for appoin-tment of
Notion by Utley ahat proposed appointment be
Notion by Utleg that papent for police uniforms be made by Vi1la"g.e for
benefit of the men, with repayment to be made by payroll deduction in not
more than sLs months, r.ns seconded by kwthorne and carried.
Attorney !findhorst reported that statwbory limitations on construction of
Village Hall- apply onl:r where it is necessiry to borrcx, in which case the
mztter must corne to the vote of the pebple.
Attorney Yindhorst reoorted on procedure for establishing Chnrter Commission.
He wqs requested to file detailed written report.
14otion bp Hawbhorne, that Till27e Attorney be directed Lo draft ordinance
prohibiting hunting in Z&na, was seconded b::. i&llson and cerried.
Letter of August 23, from LOA. Dyregrov, concerning village contribution
toward initial e-xpense of determining relative cost to &Rural Hennepin
of the present county government, tms again discussed. No action taken.
Xillson reported receiving letter from Douglas Rees, complimenting Village
crew and engineer on repair of road--Halifrur Avenue from 52nd to 54th
Street.
There Eeing no further butihess to come before the Council, Hauthorne
moved for adjournment. llotion seconded
dll members of the Council were present, as was &. Perry Roore of Stinchfield
Nackall, Crounse and Koore .
Trustee Utlep offered the following Resolution and moved its adoption:
t,&TBE.U Section 9 of the water franchise issued to Country club District
Service Company by the Village of Sdina provides that the Villa;;e mag pwchse
the plant and property of the Country club District Service Compaii3~, used and
useful, in connection uith the water supply system installed in the VillaTe of'
Ed- under that franchise, and
YHEEBS said section 9 movides forthe determination of a price for said
plant and property bx appraisal in the event the psrties are unable to qree
unon a price, and
1W46
c
a t FJHEREAS a Board of Appraisers was appointed under said Section
and that Board has made and filed cn October 17, 1946, with the Clerk of the
Village an appraisal report dated ctober 15, 1946, and
?JHEiXBhS said appraisal report has been fully considered by this
Colmcil, and
'kJHEREAS said appraisal report reads in part as follows:
Country Club %trict Service Go. initiating the appointment of
these appraisers refers specifically to that part of the water
system and plant, now used and useful, owned by and belonging to
*he Country 'lub District Service Co, (See copy of notice and
resolution attached.)
ttThe resolution of the Village council and the notice to the
"The Board is cognizant of the fact that there is a consider-
able difference of opinion between the principals .to this poceeding
as to an exact definition of the property so owned;this difference
being largely due to different interpretations placed on the recent
Supreme Cou& opinion, by the Village officials and by the officers
of the Country Club District Service. Co.
I1Because of this conflict in the definition of oi?mership, the
data regarding reproduction costs have been set forth separately,
in such manner that a total fair value of the used and useful
portion of the water-works system, as appraised, can be readily
determined by a proper combination of applicable figures given in
this renort after the ownership has been defined by competent
authority,
rTYour bozrd of appraisers has not attempted to interpret the
recent decision of the Supreme 'ourst of the State of Ninnesota or
to otherwise determine title to any of the several portidns of the
water works system in the Village of Edina, or of the equities of
the two parties therein. We believe ow function, under the terns
of the franchise, is only to determine the reproduction cost of the
system, and that the disputes as to ownership, equities, etc. should
be detemined by the principals themselves or by a court of competent,
' * jfir2Sdiclion.
"Your board likewise expresses no opinion as to ownership of
extensions of the distribution lines constructed and financed by
contributions in aid of construction made by customers desiring
water service since 1937, and which, as of December 31st, 1945,
is shorvri by company audits to amount to '$14,776.53.
and
. Xf€EIZE;AS said appraisers failed to make armr mention in said appraisal
report of "advances in aid of constructiontt, hereinafter referred to, and
3HEi3E4~S said appraisal report assigns a total valuation of 5150.91b.66
to the items mentioned on page 9 of said report, and the Village is iiok
willing 'AO wm$. 350,914.66, or any larger suq, as a correct a?praisal
or price for purchase of said plant and propert;?, and
'dHJG?EA4S the valuations assigned to the various individual'items of the
plant and property referred to in said appraisal report are acceptable to the
believes that said appraisal rsport and franchise should be construed as
permitting the Village to accept the valuations assigned to said various
individual items so that those valuations can be used by the parties or a
court to determine the proper mice to be paid by the Village for the plant
and poperty of the Country 'lub District Service Compz~ny, used and useful,
in connection with szid water supply system, by combining the valuations
assigned to the various individuzl items of the plant and property referred
to in said aqpraisal report which are owned by said Company and by making
apnropriate deductions to be determined. by the parties or a court for various
items of said plant and property referred to in said appraisal report which
are owned by the Village or by the residents of the Village and also by
making equitable deductions, to be determined by the parties or a court,
for such sums as the Village claims were paid by the residents to the said
Country Club District Service Company or Thorpe Bros. for certain parts of
the plant and property referred to in said Zppraisal by the parties or a
court, for such sums as were paid by the residents or contractors to the
Village council and the Village Council has been advised by its at-i;ornep and
Country District Service
construction of certain items
Compm~ either as contributions in aid of
or as advances in aid of construction of
certain items, such coxkbations and dedu.ctions to be made in the same
fashi_on as if the VillaTe were proceeding to acquire title by eminent
do&in proceedings, and
~rHE;REAS the Vi2lage wishes to reject said appraisal report unless said
renort and franchise are construed as aforesaid, and
Y'HXTZEdS said Section 9 procides that in the event the Villa:;e of Edina
is dissatisfied v5th the price fived by the appraisal, the Village may, within
thirty days after filing of the appraisal, notify said Country Club District
Service Company in writing and the Village shall thereafter not be obliged
to accept said appraisd or purchase usaid plant and property and that other-
. ;.rise said appraiszl shall be binding upon the Village;
MOY THZBFOBE, BE IT WSOLVSD by the Council of the Village of Edina
thzt the Village of Edina should, and it hereby does, accept the valuations
and prices assigned to the various individual items ofthe plant and property
referred to in Faid Z>praisal report if said appraisal report ,and the fran-
chise be const-rued as permitting the Village to accept the valuations assi,gned
to the various individual items referred to in said report and to have said
valuations combined and to have deductions made therefrom as previously men-
tioned and tc thus determine the price to be paid under said franchise for the
plant and property of the Country 'lub District Service company, used and use-
ful, in connection with the mter supply system installed in the Village of
Xdina under said r.rater franchise.
R33SOLWD FUREUR that if the appraisal report and the franchise connot be
construed as set forth in the proceding paragraph of this resolution, then the
Village should, and it hereby does, notify the Country Club District Service
Company in xriting thzt the Village is dissati3fied uith the price fixed by -the
appraisal, that the Village rejects said appraisal, and that the Village shall
not, under such circmstances, be obligated to accept said appraisal or purchsse
said plant and property oft he Company.
TZESOLVED FURTHER th3.t the Village of Edina should, and it hereby does,
offer to ray the Country Club District Service Compaq for %he plant ,and
property of the CountrF Club District Service Company, used ,and useful, in
connection v&th the mter supply system installed irr the Villzge of Edina, under
said franchise, the Trice properly detemninable under said appraisal report,
that is, the sum of "15,4l2.32, plus an additional sum equal to said Company's
"book costs for any densions made subsequent to lhrch 1, 1946, other than
for the oak Drive edension x'dch TF.S contracted in 1945 and is included in11
the valuation, and also plus an additional swn equal to the fair 2nd reasonable
value of "any srmll 'cools and equipment and my r.n'cer meters in uiiich
items were omitted from the appraisal, and the fair and reasonable value of
any real estate, mlls, buildings and pumping equipment acquired since 16rch I,
19.46, 2nd used as a part of said :.rater supply sgstem.
determined as f 01 lorn :
Said sum of %6,~&2.32 is
Total valu%tion of a11 the plant and pronerty
referred to in seid a>!przisnl repod, per
pap 9 of apprzisd report $150, 914.66
Xinus the f olloving items:
1.
2.
3.
&.
5.
Valuation of the original distribution
sxstem installed in 1923, 1924, 1926
and 1928, per page 9
Valuation of the real estate, per
page 9
Valuation of the tank and tower,
installed in 1923, per pa~e 9
lGontribution in aid of constructionIt
referred to on yzye 5
Ealmce payable upon Itadvance in aid
of constructiont! per corqm-qr' s book on
Decenber 31, 1345
Leaving Vne aforessid price of
$54,902.28
3,200,OO
A,, 403 . 53
U, 776 53
Said offer is made on the understanding that the aforesaid plant and
property of the Company shall be conveyed to the Village of Edina by
the Country club District Service Company, free and clear of any liens,
claims or encumbrances, other than the claims of residents of the ViIlage
to opmership of all or any part thereof, but upon the understanding that
the Village shall assume and agree to pay any balances payable to the
persons wllo made the aforesaid advances in aid of construction which
showed a balance of $7,220.00 at the close of 1945, Sucitable adjustments
to the total sum offered trill be made for any contributions in aid of
construction received or refunded by the company since December 31, 1945,
and for any payments made by the Company in reduction of said balance of
$7,228,00, up to the time of purchase, and also suitable adjustments will
be made for any accounts receivable or accounts payable of said company
which may be taken over by the Village in connection xith the purchase.
the Country club %strict Service Company execute and deliver to the
Village a proper deed of conve;sTarmce covering the plant and properby of %he
Country club District Service Company, used and useful, in connection with
water supply system installed in the Village of Edina under said franchise,
upon the Villagels paymeot or securing of the price proffered in the
preceding paragraph of this resolution.
ESOLVXD FURTHER that the Village should, and does heroby, demand that
J3XSOLV.D FURT.EER that the Clerk of the Village shall forth.c.Ji'clh send
an offer, demand and no-t-ice to -the Country club District Service Company
in the form attached hereto, marked E,uhibit A and hereby made a 'part here-
of, fbgether with a copy of this resolution.
%SOLVED FURT€BR that in the event that the Country club District
Service Company accepts the Village's offer to pay, as aforesaid, then
the Villa.ye shall Lake appropriate steps to pay or secure the payment of
said purchase price, obtain a proper deed of conveyance covering said
plant and property and take all other action necessaryto consummate the
transaction.
ILESOLVXD FUIiTHZR that in the event the Country club District Service
Comyany-shall reject said proffer of payment, expressly or by inaction,
then Nessrs. Stinchfield, Hackall, Brounse & Moore, special attorneys
for the Council of the Village of Edina, shall forthwith institute and
maintain an action in the District Court of €?innesota in and for Hennepin
County, against said-Company to rgquire the Company to convey the plant
and property of the Cmmtr~ club qistrict Service Company, used and use-
ful, in connection with the wzter supply system installed. in the Village
of Edina under said franchise, to the Village of Edina upon papent of
such sum as the Cour'c shall deem equitably payable therefor by the Village
based on the valuations determined by said appraisal adjusted by using
aqxopriate combinations of valuations of individual items and eqkLable
deductions as a.'orementioned under said Section 9 of the franchise, whether
that sum be more or less than the sm proffered as aforesaid.
RZSOLVBD FURTH3R that in the event that the Court, in such action,
shall order the Company to convey said plant and property of the Comnany
as aforesaid, then the Village shall take appropriate steps to nay or
secure the payment of the sm so determined, shall cbtain a proper deed
o€ conve;irance from the company covering said plant and property and shall
take all other action necessary to consumate the transaction,
EXHIBIT A
Country Club District Service' Company
4611 kiooddale Avenue
Ninne apoli s , 1,Iinne s ot a
Gentlemen :
11s you know, the Board of Appraisers Sled with me on Oc6ober 17,1946,
a report dated October 1-5, 1946, wherein the appraisers have made vi!xations
of the plant md property referred to in that report.
this appraisal report wassnt to you by the Appraisers.
A duplicate copy of
At a meetin? held on Iiovernber 8, 19&6, the VillaFe council of Xdina adopted
a Fiesolution relating to the purchsse of the plant and property referred to in
that report. A* copy of the resolution is sent to you herevith pursuant to the
terms of the resolution,
In accordance withthe resolution, the Villa,;e of Edina hereby proffers to
you the price of $66,4l%.32, plus the additional ams referred to in the
resolution, under the terms stated in the resolution, and demzmds that you ex-
ecute 2nd deliver to the Village of Edina a proper deed of conveyance covering
the plant and property of your conpany, used and useful, in connection .;riLh the
water supply system installed 5.n the Villare 02 Sdina under the mter franchise,
upon the papent or securing of the total price so proffered by the Village.
It is reau-ested that rou advise the Vi'lln-e Council, in miting, whether
or not you accept this proffer.
r;ill proceed forthwith to mke payment or secure payment of the total price
proffered.
If you accept the proffer, then the Villare
Your attention is particularly directed to t:e second resolving clause of
the resolution, and written notice is hereby given to you of the conclusions of
the Villafe therein stated.
The proceedings for the purchase of this plant and property by the Villase
have already been long delayed and it is imperative that we now act promptly
on the appraisal. Therefore, we must request that you have written reply in
the hands of the Village council within twenty days from the date of this letter,
If, no written reply is received within twenty days, then the Villa#Te will
conclude that you are not willing to eo through with the sale under the terms of
the franchise voluntarily and the Village rill institute action against you to
obtain conveFance of the plant wd property as outlined in the resolution.
Very truly yours,
Itotion to adopt
there were five
aye; Hawthorne,
the Resolution was seconded by Trustee tJillson, and on Rollcall
ayes and no naTs as follows:
are; and Christopher, aye; and the Resolution was sdop-Led,
I.Kllson, aye; Utler, 2ye; Zonne,
ATTEST :
Pr&iCie#di of the Vill!age Council\
Clerk read letter fro= Hwold T. Lehto, Bssistmt State Supzmisor of Eusiness
Educztion, denying the aDplication of the Villare of Edina for on-the-job
training for KKJirn v. Xoffmm, police officer. Kotion by Zonne that ;iillim
V. Hoffman be employed as police officer at $5175.00 per iionth, and that the
Village ray Hoffmn that portion of his salzry which was to have been covered
by the Government; namely, ;65.00 per nohth, from t'ne date of his employment to
the present date, ?:as seconded bp 'Jillson and carried.
'
I-Iotion by Hawthorne thzt election clerks and judges be pzid at the r8te of sixty
cents per hour for voting rind counting tine spank at the General Election of
November 5, 19.46, ins seconded by Utley and carried.
There being no further business to cone before the Council, Christopher's 1Jotion
for adjourment ms seconded by Hawthorne and carried,