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HomeMy WebLinkAbout19840213_special202 MINUTES OF THE SPECIAL MEETING OF THE EDINA CITY COUNCIL HELD AT CITY HALL FEBRUARY 13, 1984 Answering rollcall were Members Bredesen, Richards, Schmidt, Turner and Mayor Courtney. BID AWARDED FOR SALE OF $2,300,000 GENERAL OBLIGATION TAX ANTICIPATION CERTIFI- CATES OF INDEBTEDNESS. Pursuant to a Resolution of the Council adopted February 6, 1984, authorizing the sale of $2,300,000 General Obligation Tax Anticipation Certi- ficates of Indebtedness and directing negotiation for bids thereon, it was reported that two sealed bids have been received by the City Finance Director- Treasurer prior to the meeting. ulated and are as follows: . The bids have been publicly opened, read and tab- Bidder First National Bank of Minneapolis Price Interest Rate $2,300,000 5.70% American National Bank & Trus; Company-St. Paul $2,300,000 5.90% Member Bredesen then introduced the following resolution and moved its adoption: RESOLUTION RELATING TO AND PROVIDING FOR BORROWING MONEY IN ANTICIPATION OF THE RECEIPT OF TAXES; AUTHORIZING THE ISSUANCE OF $2,300,000 GENERAL OBLIGATION TAX ANTICIPATION CERTIFICATES OF INDEBTEDNESS, AWAEDING THE SALE THEREOF,'FIXING TEIE FORM AND DETAILS THEREOF, PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND PROVIDING FOR A DEBT SERVICE FUND THEREFOR BE IT RESOLVED by the City Council of the City of Edina, Minnesota (the City), as follows: Authority. purposes in the amount of $6,343,000. amounts receivable by the City from collections in 1984 of general taxes levied in 1983 for general City purposes, will not be received in time to meet all expenditures necessary to be made for the purposes for which such taxes have been levied. City, in accordance with the provisions of Minnesota Statutes, Section 412.261, as amended, to borrow money by the issuance of its General Obligation Tax Antici- pation Certificates of Indebtedness in the total principal amount of $2,300,000 (the Certificates), of the City and the total aggregate principal amount of which does not exceed the total current taxes for general City purposes to be deposited in the general fund which are uncollected at this time, plus cash on hand in such fund. purpose this Council hereby authorizes the issuance of the Certificates upon the terms and conditions set forth therein. Section 2. Sale. Pursuant to Minnesota Statutes, Section 475.60, subdivision 2, the requirements as to public sale do not apply to the issuance of the Certificates by the City, if the Certificates are sold in accordance with the most favorable of 'two or more proposals solicited privately. The City Finance Director-Treasurer has solicited on behalf of the City two or more proposals for the purchase of the Certificates. The solicitation of such bids by the City Finance Director-Treasurer is hereby approved and ratified. Two sealed bids for the purchase of the Certifi- cates were received prior to the time of this meeting. The bids have been opened and publicly read and considered, and the purchase price, interest rate and net interest cost under the terms of eacfi bid have been determined. The most favorable offer received is that of First National Bank of Minneapolis, Minnesota, to purchase the Certificates at a price of $2,300,000 with interest at the rate of 5.70% per annum, payable at maturity. Manager are hereby authorized and directed to execute a contract on the part of the City for the sale of the Certificates to such purchaser. the unsuccessful bidders shall be returned forthwith. "General Obligation Tax Anticipation Certificates of Indebtedness". shall be dated as of the date of delivery to the purchaser thereof and shall bear interest, payable at maturity, at the rate per annum stated in Section 2 hereof. The Certificates will be in bearer form, numbered consecutively, and in the demoni- nation of $50,000 each, unless other denominations (which must be in integral multiples of $50,000) are requested by the purchaser on or before February 15, 1984. basis of the number of days elapsed in a 360-day year. The Certificates shall mature on July 31, 1984, without option of prior payment. the interest on the Certificates shall be payable to bearer at the office of the City Finance Director-Treasurer. Council estimates that (i) the Certificates will not be outstanding after a period ending thirteen months after the date on which the Certificates are issued and (ii) that the amount of the Certificates authorized to be issued does not exceed Section 1. The City has levied in 1983 taxes for general City It is found and determined that the - To meet such expenditures it is therefore necessary and expedient for the the proceeds of which will be deposited in the general fund For this Such offer is hereby accepted, and the Mayor and City The good faith checks of Section 3. Terms of Certificates. The Certificates shall be denominated The Certificates I ~ The interest payment required on the Certificates shall be computed on the The principal of and Section 4. Statement of Expenditures and Receipts; Arbitrage Certificate. The 21 i3 1 84 203 the maximum anticipated cumulative cash flow deficit to be financed by such tax collections and other funds for the period during which the Certificates will be outstanding, as contemplated by the regulations of the Internal Revenue Service, 26 CFR Part 1, Section 1.103-14(~)(1) (the Regulations), promulgated under Section 103(c) of the Internal Revenue Code of 1954, as amended (the Code), The City Finance Director-Treasurer is directed to prepare a statement of esti- mated expenditures and receipts during the period for which the Certificates will be outstanding, for the purpose of verifying the correctness of this estimate. In the event that such statement does not verify this Council's estimate, the 1 amount of the Certificates shall be reduced to such amount as will not exceed such maximum anticipated cumulative cash flow deficit. Prior to the issuance of the Certificates, the Mayor and City Manager shall execute and deliver to the purchaser of the Certificates a certificate as contemplated in Section 1.103-13 (a)(2)(ii) of the Regulations stating the facts, estimates'and circumstances on the basis of which it is not expected that the proceeds.of the Certificates will be used in a manner that would cause the Certificates to be "arbitrage bonds'' within the meaning of Section 103(c) of the Code. Section 5. Form of'certificates. The Certificates shall be typewritten in substantially the following form: I UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF EDINA- GENERAL OBLIGATION TAX ANTICIPATION CERTIFICATE OF INDEBTEDNESS No. - $ KNOW ALL MEN BY THESE PRESENTS that the City of Edina, Hennepin County, Minnesota (the City), acknowledges itself to be indebted and for value received hereby promises to pay to bearer, upon presentation and surrender hereof, the principal sum of D 0 L L A R S ($ 1 in lawful money of the United States of America thereon payable on that date in the amount of $ , being at the rate of percent ( per annum, upon presentation and surrender of this Certificate of Indebtedness at the office of the City Finance Director-Treasurer, in Edina, Minnesota. For the prompt payment of this Certificate of Indebtedness, both principal and interest as aforesaid, the proceeds of the taxes assessed on account of the funds against which this Certificate of Indebtedness is issued and . the full faith and credit of the City are hereby irrevocably pledged. all of like date and tenor, except as to serial number [and denomination], in the aggregate principal amount of $2,300,000 issued against and for the use of the general fund of the City, for which fund the total amount embraced in the general taxes levied in 1983, collectible in 1984, is $ , and is issued pursuant to and in accordance with the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota on July 31, 1984, without option of prior payment, with interest I I I This Certificate of Indebtedness is one of an issue i - Statutes, Section 412.261 and Chapter 475, in.anticipation .of the receipt of general taxes heretofore levied by the City for general purposes, which taxes at the date of issuance hereof remain unpaid and are due and payable in the current calendar year and as to which no penalty for nonpayment has attached. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by law to be done, to exist and to be performed precedent to and in the issuance of this Certificate of Indebtedness have been done, do exist and have been performed in due form, time and manner as requrred by law and that the issuance of this Certificate of Indebtedness does not cause the indebtedness of the City to exceed any statutory or constitutional limitation. IN WITNESS WHEREOF, the City o'f Edina, Hennepin County, State of Minnesota, has caused this Certificate of Indebtedness to be signed by the Mayor and the City Manager and has caused its official seal to be affixed hereto, and has caused this Certificate of Indebtedness to be dated this - day of February, . * 1984. ATTEST: 2/13/ 84 204 Section 6. Execution and Delivery. The Certificates shall be prepared under the direction of the City Clerk and the City Finance Director-Treasurer, in sub- stantially the form heretofore prescribed. When prepared, the Certificates shall be signed on behalf of the City by the Mayor and City Manager and the seal of the City shall be affixed thereto. In the absence or disability of the Mayor, the Certificates shall be executed by the Acting Mayor, and in the absence or dis- ability of the City Manager the Certificates shall be executed by Mark Bernhard- son as Assistant City Manager. When the Certificates have been so executed and authenticated, the City Finance Director-Treasurer shall cause the Certificates to be delivered to the purchaser thereof upon receipt of the purchase price. The purchaser shall not be obligated to see to the application of the purchase price. The proceeds of the Certificates, except any premium paid by the purchaser, shall be deposited in the general fund of the City and used solely to pay claims duly approved and allowed with respect to current operating expenses of the kinds and within the amounts provided in the official budget of the City for the year ending December 31, 1984. A tax in the amount of $6,343,000 has been levied for the purposes of the general fund and is payable, according to law, one-half on or before May 15, 1984, and one- half on or before October 15, 1984. The proceeds of this tax shall be credited to the debt service fund created in Section 8 hereof as received until the amount in the debt service fund is sufficient to pay the principal and interest due on the Certificates on July 31, 1984, at which time the proceeds of this tax shall be credited to the general fund. Section 8. Debt Service Fund. A special debt service fund (the Fund) is created and shall be maintained by the City Finance Director-Treasurer as a bookkeeping account in the financial records of the City separate from all other funds for the payment of the principal of and the interest on the Certificates. The premium, if any, received from the purchaser shall be credited to the Fund. From the proceeds of the tax referred to in Section 7 there shall be credited to the Fund an amount which, added to the premium, if any, and investment income therefrom, equals the amount required to pay the principal and interest due on July 31, 1984, with respect to the Certificates. appropriated to the Fund for the payment of such principal and interest. such payment and cancellation of the Certificates, any balance in the Fund shall be transferred to the general fund. pledged for the payment of the principal of and interest on the Certificates and, in accordance with Minnesota Statutes, Section 412.261 and 475.61, the City covenants and agrees that it will levy and cause to be extended upon all taxable property within its corporate limits such additional taxes, if any, as may be required for the payment of such principal and interest in full. The City Clerk is hereby authorized and directed to file a certified copy of this resolution with the Hennepin County Director of Property Taxation, together with such other information as he shall require, and to obtain from said Director of Property Taxation, a certificate that the Certi- ficates have been entered on his bond register as required by law. The officers of the City and the Hennepin County Director of Property Taxation are hereby authorized to prepare and furnish to the purchaser of the Certificates and the attorneys passing on the legality of the issuance thereof certified dopies of all proceedings and records of the City relating thereto and to the financial condition and affairs of the City, and all such certified copies, including any heretofore furnished, shall be deemed representations of the City as to facts recited therein. The City covenants and agrees with the holders from time to time of the Certificates that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Certificates to become subject to taxation under the Code, and regulations, . amended' regulations and proposed regulations issued thereunder, as now existing or as hereinafter amended or proposed and in effect at the time of such action. Section 7. Use of Proceeds of Certificates. This amount is irrevocably After The full faith and credit of the City are Section 9. Registration. . Section 10. Certifications. Section 11. Covenant. ATTEST : y$&%* &=&..- City Clerk The motion for the adoption of the foregoing resolution was duly seconded by Member Schmidt, and upon vote being taken thereon the following voted in favor thereof : Rollcall : Ayes: Bredesen, Richards, Schmidt, Turner, Courtney Nays: None whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor, which was attested by the City Clerk. I 1 , i j 1 ! I I I' i 1 i ! i i I f 2/13/84 205 I\. c') IQ m ORDINANCE NO. 117 MORATORIUM ON MULTIPLE FAMILY PERMIT ISSUANCE ADOPTED; SECOND READING WAIVED. Comprehensive Zoning Ordinance conducted at the last meeting the Council had Attorney Erickson recalled that at the continued hearing on the discussed adoption of an ordinance imposing a moratorium on buildings containing three or more dwelling units for the purpose of protecting the planning process. A draft ordinance has been prepared which would prohibit construction of such buildings to and including March 8, 1984. Kenneth has applied for a building permit on his undeveloped lots on Lincoln Drive and that the Building Department is proceeding to review those plans. Because the Council is in the process of considering a new zoning ordinance, it may be that if the proposed building proceeds in the normal course, the permit could be issued before the ordinance is adopted which may result in difficulties with the ordinance as subsequently adopted. the freedom to make decisions on the ordinance without having a building permit issued and possible construction underway. buildings containing three or more units and would affect all residential proper- ties in excess of R-2 District zoning in the City. other properties would be affected by the moratorium in addition to those three identified at the last meeting. Mr. Hughes pointed out that the following may be: 1) the Biltmore site on Vernon Avenue, 2) the Haymaker project on the west side of Summit Avenue, 3) Kyllo Development project at Vernon Avenue and the Crosstown, and 4) a site at 78th'Street and Cahill Road. He advised that he has contacted all the owners, advised them of this meeting and invited them to appear. Bredesen then offered Ordinance No. 117 and moved its adoption, waiving Second Reading, as follows: Mr. Erickson explained that Wallace The moratorium would give the Council It would apply to all residential Member Turner asked if any I Member ORDINANCE NO. 117 AN ORDINANCE PROHIBITING CONSTRUCTION OF NEW BUILDINGS CONTAINING THREE OR MORE DWELLING TJNITS AND PROHIBITING THE ADDITION OF DWELLING UNITS TO EXISTING BUILDINGS CONTAINING THREE OR MORE DWELLING UNITS THE CITY COUNCIL OF THE CITY OF EDINA, MINNESOTA ORDAINS: Section 1. Purpose. The Edina Comprehensive Plan (the "Plan") was approved by the Edina City Council on December 21, 1981 and approved by the Metropolitan Council on October 8, 1981, all pursuant to Minnesota Statutes Sections 473.851 through 473.872 (the "Metropolitan Land Planning Act"). the Metropolitan Land Planning Act, Edina is now conducting stufies for the purpose of considering adoption of official controls, including a zoning ordinance and a subdivision ordinance, to implement the Plan, and has conducted and scheduled hearings to consider adoption of a new comprehensive zoning ordinance to implement . the Plan. other things, the number of dwelling units on properties developed and to be deve- loped with buildings containing three or more dwelling units. new ordinances are being considered, proposals for, and applications for permits to allow, construction of new buildings and additions of dwelling units to existing buildings containing three or more dwelling units continue to be made. Therefore, in order to protect the planning process and the health, safety and welfare of the citizens of Edina, it is necessary and desirable to impore the following moratorium. Sec. 2. Moratorium. From the effective date of this ordinance to and including Pursuant to the Plan and I The zoning ordinance being considered will regulate and control, among However, while the March 8, 1984, subject to earlier termination or extention'by the Edina City ._ Council, the Edina City Council and the Edina City staff shall not: ~ (1) accept, or continue to process, any application for rezoning, or any new plat or subdivision; (2) accept any applications for, continue to process or issue any building permits; or ' (3) accept any applications for, or continue to process, any variances from any existing platting, subdivision or building ordinances of the City which will or may result in the construction of new buildings containing three or more dwelling units or the addition of dwelling units to existing buildings con- taining three or more dwelling units. upon its passage and publication. Sec. 3. Effective Date. This ordinance shall be in full force and effect ATTEST : -??pcwe%%-&L.- Mayor 4 P City Clerk Motion for adoption of the ordinance with waiver of Second Reading was seconded by Member Turner. Wayne Vandervort, representing Wallace Kenneth, reiterated Mr. Kenneth's opposition to the proposed rezoning of his property. He suggested that Wallace Kenneth's 2/13/84 206 R-4 District property be exempt from the rezoning proposed under the new Compre- hensive Zoning Ordinance and that the City proceed to issue the building permits in due course. For the record, he stated that Mr. Kenneth will comply with all appli- cable building codes, that he has submitted construction plans and to the best of his ability he believes they do conform, and that he will make any modifications required. seconded the motion because she felt it was important to protect the planning process, that she is still studying the issue of how this property will be affected by the new Comprehensive Zoning Ordinance and that the mortatorium is appropriate. Mayor Courtney then called for a rollcall vote on the motion to adopt the ordinance imposing a moratorium. Following considerable discussion, Member Turner stated that she had I Rollcall : Ayes: Bredesen, Richards, Schmidt, Turner, Courtney Ordinance adopted. ORDINANCE NO. 171-A14 (LICENSE FEE FOR AMUSEMENT MACHINES) ADOPTED ON SECOND READING. Mr. Rosland recalled that Ordinance No. 171-A14 adjusting the license fee for amuse- ment machines had been given First Reading at the Council Meeting of February 6, 1984.' No objectiong being heard, Member Schmidt offered Ordinance No. 171-AJ-4 for Second Reading and moved its adoption as follows: ORDINANCE NO. 171-A14 AN ORDINANCE &ENDING ORDINANCE NO. 171 TO ADJUST THE AMOUNTS OF CERTAIN FEES- THE CITY COUNCIL OF THE CITY OF EDINA, MINNESOTA, ORDAINS: Section 1. The amounts of Fee Nos. 5a and 5b of Schedule A to Ordinance No. 171is hereby amended to read as follows: ORD.. SEC.' NO. NO. PURPOSE OF FEE/CHARGE AMOUNT FEE NO. -- 211 5 Nachine or Amusement Device $25.00 annually per 5 establishment, plus $5.00 per machine for all machines described in Section 1 Sec. 2. This ordinance shall be in full force and effect immediately upon its passage and publication. Motion for- adoption of the ordinance was seconded by Member Turner. Rollcall : Ayes : Bredesen , Richards, Schmidt , Turner, Courtney Ordinance adopted. ATTEST : 4 . _. City Clerk ORDINANCE NO. 211-A2 (REGULATING AND LICENSING AMUSEbENT MACHINES) ADOPTED ON SECOND READING. Mr. Rosland stated that Ordinance No. 211-A2 regulating and licensing amuse- ment machines was granted First Reading at the February 6, 1984 Council Meeting. {As recommended by staff and the City Attorney, the prohibition on persons under the age of 18 from playing or using amusement devices is deleted and the term "amusement device" is redefined. Member Richards questioned the rationale for deleting the prohibition on persons under the age of 18. Attorney Erickson replied that presently the City is not enforcing the age restriction, it has been-challanged as unconstitu- tional and discriminatory without basis, and the City has a curfew ordinance which together with state statutes would allow the Police Department to respond tn.any prahlem regarding the use of amusement machines by persons under the age of 18. Following discussion on the issue of the age prohibition, Member Schmidt offered Ordinance No. 21142 for Second Reading and moved its adoption as follows: I ORDINANCE NO. 211-A2 AN ORDINANCE AMENDING ORDINANCE NO. 211 TO DELETE "BECHANTCAL" FR9M THE ORDINANCE TITLE, TO MEND THE DEFINITION OF MACHINE AND TO REPEAL THE RESTRICTION ON OPERATION OF MACHINES BY PERSONS UNDER THE AGE OF 18 YEARS THE CITY COUNCIL OF THE CITY OF EDINA, MINNESOTA ORDAINS: Section 1. Sec. 2. Definition. Section 1 of Ordinance No. 211 is hereby amended to read "Section 1. Definition. The term "machine" or amusement device" as used herein means any machine, contrivance or device, including, without limitation, video, electronic or mechanical, of any of the foilowing types: operates, or may be operated, .as a game, contest or other amusement only and which contains no automatic payoff device for the return of money, coins, The word "Mechanical" in the title of Ordinance No. 211 is hereby deleted. as follows: 11 (a) a machine which upon the insertion of a coin, slug or other token 2/ 13/ 84 207 merchandise,'checks, tokens or any other thing or item of value; provided, however, that such machine may be equipped to permit a free play or game; or gun ranges, and machines patterned after baseball, basketball, hockey and similar games and like machines which may be played solely for amusement and not as gambling devices, and which machines are played by the insertion of a coin or coins or at a fee fixed and charged by the establishment in which such machines are located; or such as, but not limited to, kiddie cars, miniature airplane rides, mechanical horses, and other miniature mechanical devices, not operated as a part of or in connection with any carnival, circus, show, or other entertainment or exhibition .It Sec. 3. Fees. The fee for the license required by this ordinance shall be Sec. 4. Op-eration by Minors. (b) miniature pool tables, bowling machines, shuffle boards, electric rifle (c) amusement devices designated for and used exclusively by children, as provided from time to time by Ordinance No. 171 of the City. Section 10 of Ordinance No. 211 restricting operation of machines by persons under the age of 18 years, is hereby repealed in its entirety. Sec. 5. This ordinance shall be in full force and effect upon its passage and publication. Motion for adoption of the ordinance was seconded by Member Turner. Rollcall : Ayes: Bredesen, Schmidt, Turner Nays: Richards, Courtney Ordinance adopted. P.Z-*p& c- ATTEST : ayor %ii 3- M City Clerk COMPREHENSIVE PLAN FOR 1980 REVIEWED. Mr. Hughes advised that the Edina Compre- hensive Plan was approved by the Council in December, 1981 and should now be up- dated to include the following: 1) demographic data from the 1980 Census, 2) addition of a Mixed Use Land designation, 3) changes prompted by the new Comprehensive Zoning Ordinance, 4) capital improvement program, 5) service level analysis, 6) the Bloomington/Edina land trade and 7) the Hedberg park land. He stated that any changes would have to be reviewed by the Metropolitan Council. Any addftional items vhich the Council feels should be considered should be given to the staff. Member Turner pointed out that possibly these should be reviewed: 1) the housing chapter, 2) accessory housing, and 3) the density bonus for meeting certain - criteria. Mr. Hughes advised that the Metropolitan Council is starting to revise the housing chapter in the Metropolitan Development Guide and it may be wise to wait until that is completed before changing the housing chapter. Aily changes to 'to the Plan would be made after the adoption of'the Zoning Ordinance. Richards asked that staff prepare a list of suggested topics so that the Council could reflect upon them prior to a discussion of them. No formal action was taken. Member- PROGRESS ON EDINBOROUGH PROJECT DISCUSSED. Mr. Rosland advised that the developers have been meeting with staff on a weekly basis and hope to make a formal presenta- tion to the Council in the month of March. as follows: spaces, to be built in quadruples .with 3 units in each, 2) two office buildings of approximately 140,000 square feet, 3) a 17-story building housing the elderly, with a monthly rental fee, 2 meals a day provided, a restaurant, and cleaning and laundry service, and 4) an enclosed park with some outdoor facilities and parking. The first phase of the project would include the elderly housing building, one office building, the park and a basic leg of the townhouse units. taken. He then briefly outlined the project 1) marketing concept - 400 townhouse units with underground parking No action was LEAGUE OF MINNESOTA CITIES LEGISLATIVE CONFERENCE NOTED. Mr. Rosland informed the Council that the League of Minnesota Cities Legislative Conference is scheduled for March 13 and 14, 1984, in St. Paul, and that any Members wishing to attend should let him know so that reservations can be made. COUNCIL/LEGISLATORS BREAKFAST SCHEDULED FOR FEBRUARY 15. Mr. Rosland advised that an agenda has been prepared for the Council/Legislators Breakfast scheduled for February 15, 1984, in the Manager's Conference Room and that Representatives Mary Forsythe and Sidney Pauly, Senator Don Storm and Commissioner Richard Kremer will be meeting with the Council Members. There being no further business on the agenda, the meeting was adjourned by Mayor Courtney at 8:30 p.m. City Clerk