HomeMy WebLinkAbout19890710_regular272 IEIXTlZS
OF THE REGUIAR. HEZTING OF THE
EDINA CITY COUNCIL HELD AT CITY HALL
JIJLY 10, 1989
ROILCALL Answering rollcall were Members Kelly, Paulus, Rice, Smith and Mayor
Richards.
CONSENT AGENDA ITEMS ADOPTED Motion was made by Member Smith and was seconded by
Member Rice to approve and adopt the consent agenda items as presented.
Rollcall :
Ayes: Kelly, Paulus, Rice, Smith, Richards
Motion carried.
*HEARING DATE SET FOR PLANNING HATTERS Motion vas made by Member Smith and was
seconded by Member Rice setting July 24, 1989 as hearing date for the following
Planning matters:
1) Conditional Use Permit - Christ Presbyterian Church, 6901 Normandale Road -
Building Expans ion.
2) Conditional Use Permit - Grace Church of Edina, 5300 France Avenue South -
Building lhpansion and Remodeling
3) Pre1hinar-y Plat Approval - The Homes of Centennial Lakes - Hedberg Site -
Generally located south of Parklawn Av and north of I?. 76th St.
Motion carried on rollcall vote, five ayes.
BID AWARDED FOR 3.4 CUBIC YARD ARTICULATED LOADER
the total cost bid process which the City began using in 1984 for this type of
equipment.
guaranteed re-purchase on each machine.
of purchasing is very cost effective versus straight low bid.
Motion was made by Member Smith and was seconded by Member Rice for award of bid
for a 3.4 cubic yard capacity articulated wheel loader to recommended bidder,
Ziegler, Inc., at $29,509 with a guaranteed re-purchase within 5 years on a new
machine.
Engineer Fran Hoffman explained
The total cost bid process provides guaranteed maintenance and
Experience has indicated that this method
I
Ayes: Kelly, Paulus, Rice, Smith, Richards
Motion carried.
BID AWARDED FOR 2.4 CUBIC YARD ARTICULATED LOADER Motion was made by Member Smith
and was seconded by Member Rice for award of bid for a 2.5 cubic yard capacity
articulated wheel loader to recommended bidder, Ziegler, Inc., at $88,963 with
trade and guaranteed re-purchase of $47,500 for a net of $45,963.00.
Ayes: Kelly, Paulus, Rice, Smith, Richards
Motion carried.
*BID AWARDED FOR PER&WENT STREET SURFACING WITH CONCRETE CURB & GUTTER
COUNTY Motion vas made by Member Smith and was seconded by Member Rice for award
of bid for Permanent Street Surfacing With Concrete Curb & Gutter Improvement No.
BA-278 (Link Road, Eden Avenue & Traffic Signal Improvementfvernon Av) to
recommended low bidder, Midwest Asphalt Corporation, at $233,458.60.
Motion carried on rollcall vote, five ayes.
Motion was made by Member Smith and was seconded by Member Rice for adoption of
the following resolution:
WHEREAS, Agreement for participation in the construction of County State Aid
Highway No. 158 between Eden Avenue and 300 feet North of Link Road as shown on
the City Engineer's plans, Hennepin County Project No. 8945, Agreement No. PU
36-11-89, has been prepared and presented by the County, and
WHEREAS, Plans for Hennepin County Project No. 8945 showing proposed alignment,
profiles, grades, and cross sections for the reconstruction of County State Aid
IMPR0V"T NO. BA-278 <LINK ROAD): RESOLUTION ADOPTED APPROVING AGRE- WITH
RESOLUTION
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273
Highway No. 158, within the limits of the City, as a City Project, have been
prepared and presented by the City;
NOW, THEREFORE, IT IS RESOLVED: That said Agreement be in all things approved.
BE IT FURTHER RESOLVED: That the Mayor and Manager are authorized to sign
Agreement No. PW 36-11-89, Hennepin County Project No. 8945.
Motion carried on rollcall vote, five ayes.
*BID AWARDED FOR PERMANENT STREET SWACING WITH CONCRETE CURB & GUTTER. SIDEWALK
AND STORM SFNER IMPROVEMENT NOS. BA-283 AND STS-190
Smith and was seconded by Member Rice for award of bid for Permanent Street
Surfacing with Concrete Curb & Gutter, Sidewalk and Storm Sewer Improvement Nos.
BA-283 and STS-190 to recommended low bidder, G. L. Contracting, Inc., at
$584,693.07.
I Motion carried on rollcall vote, five ayes.
*BID AWARDED FOR CARDBOARD BALERS
seconded by Member Rice for award of bid for two cardboard balers for the Pork
Avenue and Vernon Avenue Liquor Stores to recommended low bidder, Olympic Baler,
at $7,500.00.
Motion was made by Member
Motion was made by Member Smith and was
Motion carried on rollcall vote, five ayes.
*BID AWARDED FOR 13.600 RECYCLING CONTAINERS
was seconded by Member Rice for award of bid for 13,600 recycling containers to
recommended low bidder, Buckhorn, Inc., at $79,560.00.
Motion carried on rollcall vote, five ayes.
Motion was made by Member Smith and
*BID AWARDED FOR OUTDOOR WARNING SIREN
seconded by Member Rice for award of bid for one outdoor warning siren to
recommended low bidder, Federal Warning Systems, at $9,687.50.
Motion was made by Member Smith and was
Motion carried on rollcall vote, five ayes.
RESOLUTION ADOPTED SPECIEYING PORTION OF MAVELLe DRIVE VACATED
recalled that approval of the 24 foot easement to be retained for Mavelle Drive
had been continued from the June 19, 1989 meeting and that staff had been asked to
check on the illuminated sign on the Sandell and Mavelle intersection. He said
that the sign conforms with all requirements of Ordinance No. 451 and that the
owner has agreed to limit the illumination only to periods when the store is open.
To date the Planning Department has had no complaints concerning the sign.
Engineer Hoffman
Member Smith introduced the following resolution and moved its adoption:
WHJBWAS, a resolution of the City Council, adopted the 6th day of February, 1989,
fixed a date for a public hearing on a proposed vacation of a portion of Mavelle
Drive;
WIERJUS, two weeks' published and posted notice of said hearing was given and the
hearing was held on the 6th day of March, 1989, at which time all persons desiring
to be heard were given an opportunity to be heard thereon; and
WIERJUS, the Council deems it to be in the best interest of the City and of the
public that said street vacation be made; and
WHJBWAS, the Council has considered the extent to which the vacation affects
existing easements within the area of the vacation and the extent to which the
vacation affects the authority of any person, corporation, or municipality owning
or controlling electric, cable television or telephone 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 street
or portion thereof vacated to maintain, repair, replace, remove, or otherwise
attend thereto;
NOW, TEIEREPORE, BE IT RESOLVED by the City Council of the City of Edina, Hennepin
County, Minnesota, that the following described portion of Mavelle Drive be and is
hereby vacated effective as of July 10, 1989:
RESOLUTION VACATING MAVET.3.E DRIVE
.
7 / 10/89 274
That part of Havelle Drive as dedicated in "Stow's Edgemoor Addition" and in
Stow's Edgemoor Addition, Block 9, Replat", described as follows: I Commencing at the Southwest comer of Lot 1, Block 1, Stow's Edgemoor
Addition, thence South along the Uesterly line of said Lot 1, extended
South 34.00 feet to the actual point of beginning; thence South along
the further extension of the Uest line of said Lot 1, 36.00 feet; thence
East and parallel with the South line of Lot 1, 200.00 feet; thence
North parallel with the extended Uest line of Lot 1, 36.00 feet to a
point 34.00 feet South of the Southeast corner of Lot 1; thence Uest
parallel with the South line of.said Lot 1, 200.00 feet to the point of
beginning and there terminating.
BE IT F[TBTHEB BESOLVED that the Clerk is authorized and directed to cause a notice '
of completion of proceedings to be prepared, entered in the transfer record of the
Counw Auditor, and filed with the County Recorder in accordance with Minnesota
Statutes, Section 412.851.
Motion for adoption of the resolution was seconded by Member Rice.
Rollcall :
Ayes: Kelly, Paulus, Rice, Smith, Richards
Resolution adopted.
BUDGET ASS~IOIVS PRESENTED Manager Rosland presented the 1990 Budget
Assumptions and explained that they are based on a 3% levy limit, with a proposed
increase in salaries of 3%. Working under the old tax law the maximum levy limit
would be 7%.
September it is uncertain what the levy limitation will be.
purposes staff has revised the figures to reflect a 5% levy limit.
under the old law, the City must certify some form of levy.
that we certify the 5% levy limit and then work out the 1990 Budget.
is looking for direction from the Council as to the levy limit they would
consider.
He said that until the special session of the Legislature in
For discussion
Staff would recommend
By August 1,
Also, staff
Graphics were presented showing proposed expenditures, revenues and new programs
that reflected 3% and 5% levy limits and the property tax effects on residential
homes.
Following discussion, it was the consensus of the Council that staff be directed
to prepare a draft 1990 Budget that would in total not exceed a 5% increase, that
salaries be held at a 3% increase, with a total for new programs of approximately
$302,000 and to certify a levy limit that would not exceed the 5% increase.
WEED SPRAYING POLICY REVIEWED Parks Director Bob Kojetin reviewed his written
report on the City's weed spraying policy. The report noted that on April 17,
1989, the Park Foreman and Park Director had met with Betty Kent from the
Minnesota Coalition of Concerned Citizens Group for Herbicides and Pam Nelson, a
concerned citizen. The discussion centered on the chemicals that have been used
in the parklands, what is currently being used, and the use of 2-4-D.
following suggestions were developed: 1) To discontinue use of 2-4-D, 2) To post
parks whenever a chemical is used, 3) To educate the public to use non-2-4-D on
lawns, and 4) To try to educate the public to use an all natural fertilizer.
The
It was noted that the Edina Garden Council sold a product called Sustain which is
a natural organic fertilizer. This product has been used in some garden areas in
the City and staff will be experimenting with this fertilizer at Arneson Acres
Park to see how grasses react to it.
Director Kojetin presented the following recommendations as a weed spraying
policy:
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7110189
275
1.
2. Write articles for newsletters to educate residents on the use of non-2-4-D
3. Use non-2-4-D spray applications in all general use areas.
4.
5.
Post parks whenever any type of spray is applied.
sprays and natural fertilizers.
Use 2-4-D on heavily used turf such as athletic fields and the golf course
when necessary.
Experiment with using natural fertilizers on turf areas as they become
available on the market.
Following discussion, it was the consensus of the Council that the City continue
with the weed spraying policy as recsmmended by staff.
JOINT POWELIS AGREm - MNNESOTA DRIVE CONTINUED TO 7/24/89
Hoffman presented an update on Road Improvement No. BA-270 - West 77 1/2 Street
(roadway connecting Minnesota Drive with West 77th Street).
chronological listing of events on the project noting that in December of 1987 the
Council authorized the project and negotiations began on right of way for the new
road. He explained that the project has proceeded slowly for several reasons: 1)
Staff became aware with the Centennial Lakes project that there might be some
materials that would benefit this project, and 2) There might be some cost savings
if the roadway could be constructed jointly with the development of the vacant lot
on the west end of the National Car Rental property; currently there are two
parties interested in developing it.
has not proceeded.
Engineer Hoffman said that National Car Rental continues to be concerned about the
traffic that drives through their .property.
their position that they would pay up to $200,000 for a portion of the actual
construction of Minnesota Drive that was completed on the south side of their
site.
(paragraph 4), prepared by the City Attorney, clearly responds to the City's
position on the roadway (Minnesota Drive).
Edina shall pay to Bloomington as Edina's share of the construction cost
($200,000) shall be the amount assessed to National Car Rental.
Engineer Hoffman said it is his recommendation that the City should proceed with
the construction of the West 77 1/2 Street project as the next link and to begin
negotiations for acquisition of right of way. Also, that the Mayor and Manager be
authorized to execute the Joint Powers Agreement between the City of Edina and the
City of Bloomington.
Following considerable discussion, Mayor Richards asked that additional
information be presented to the Council that would preclude not using state aid
funds in total for the proposed link roadway (West 77 1/2 Street) and that this be
placed back on the July 24, 1989 Council Agenda.
Engineer Fran
He reviewed the
However, to date the proposed development
National Car Rental has confirmed
Engineer Hoffman pointed out that the draft Joint Powers Agreement
Essentially, it states that the amount
CHAMBERLAIN LETTER REGARDING AIRPLANE NOISE NOTED Mayor Richards referred to a
letter from Mark and Mary Ellen Chamberlain, 7004 Bristol Boulevard, concerning
increased airplane noise.
monitoring the airport issue and that there is no doubt that the airport is moving
the flights around to distribute the noise.
City's position is to keep the airport in its present location. Mayor Richards
said that policy should be communicated to the Chamberlains. Manager Rosland said
that he would contact them and explain the City's position concerning the airport.
Manager Rosland commented that staff has been
Member Paulus recalled that the
*RESOLUTION ADOPTED SETTING HEARING DATE FOR VACATION OF DRAINAGE EASEMENT (LOT 6,
BLOCK 1. INDIAN HI- WEST - 6729 APACHE RD
was seconded by Member Rice for adoption of the following resolution:
Motion was made by Member Smith and
RESOLUTION CALTJNG PUBLIC HEBRING ON
VACATION OF EASEMENT FOR DRAINAGE AND UTILITY PURPOSES
7/10/89 276
BE IT RESOLVED by the City Council of the City of Edina, Hennepin County,
Minnesota, as follows:
1.
drainage and utility purposes should be considered for vacation, in accordance
with the provisions of Minnesota Statutes, Section 412.851 and 160.29:
It is hereby found and determined that the following described easement for
That part of Lot 6, Block 1, INDIAN HII;Is WEST, according to the recorded
plat thereof, described as follows:
01 minutes 29 seconds West,’assumed bearing, a distance of 30.00 feet along
the east line of said Lot 6; thenceSouth 89 degrees 58 minutes 31 seconds
West a distance of 10.00 feet to an angle point in the westerly line of the
drainage and utility easement as shown on said plat of INDIAN HIZ;LS UJ3ST and
the point of beginning of the land to be described; thence North 26 degrees
35 minutes 02 seconds West a distance of 13.20 feet along said westerly line;
thence on a bearing of North a distance of 13.35 feet; thence on a bearing of
West a distance of 6.68 feet to said westerly line; thence North 26 degrees
35 minutes 02 seconds West a distance of 19.96 feet along said westerly line;
thence on a bearing of North 15.26 feet; thence on a bearing of West a
distance of 3.63 feet; thence on a bearing of North a distance of 7.15 feet;
thence on a bearing of West a distance of 4.50 feet; thence on a bearing of
North a distance of 12.76 feet; thence on a bearing of West a distance of
10.36 feet; thence on a bearing of South a distance of 3.17 feet to the
southerly line of said drainage and utility easement; thence on a bearing of
East a distance of 2.47 feet along said southerly line to an intersection
vith said westerly line of the drainage and utility easement; thence South 26
degrees 35 minutes 02 seconds East a distance of 83.87 feet along said
westerly line to the point of beginning.
Commencing at the Southeast corner of said Lot 6; thence North 0 degrees
,
2.
included in paragraph 3 hereof for the purpose of holding a public hearing on
whether such vacation shall be made in the interest of the public.
3. The Clerk is authorized and directed to cause notice of the time, place and
purpose of said hearing to be published once a week for tvo weeks, in the Edina
Sun-Current, being the official newspaper of the City, the first publication at
least 14 days prior to the date of such hearing and to post such notice, at least
14 days prior to the date of such hearing, in at least three (3) public and
conspicuous places within the City, as provided in Minnesota Statutes, Section
412.851.
This Council shall meet at the time and place specified in the form of notice
Such notice shall be in substantially the following form:
NOTICE OF PWUC HEBRING
ON VACATION OF EASEMENT FOR DRAINAGE AND UTILITY PURPOSES
IN THE CITY OF EDINA, HENNEPIN COUNTP, MINNESOW
.
NOTICE IS HEBEBY GIVEN that the City Council of the City of Edina, Hennepin
County, ILI.IIIlesota, will meet at the Edina City Hall, 4801W. 50th Street on
August 7, 1989 at 7:OO p.m., for the purpose of holding a public hearing on the
proposed vacation of the following easement for drainage and utility purposes:
(Same as legal description of vacation in paragraph 1. above)
All persons who desire to be heard with respect to the question of whether or not
the above proposed street 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
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7/10/89 277
which any or all of any such easements, and such authority to maintain, and to
enter upon the area of the proposed vacation, shall continue.
BY ORDER OF THE EDINA CITY COUNCIL
Marcella H. Daehn, City Clerk
Motion carried on rollcall vote, five ayes.
PUBLIC HEARING CONDUCTED: RESOLUTION ADOPTED AUTHORIZING ISSUANCE AND SALE OF UP
TO $17.000.000 HOSPITAL SYSTEH REVE"E BONDS (FAIRVIEW HOSPITAL AND HEALTHCARE
SERVICES1 Affidavits of Notice were presented, approved and ordered placed on '
file. Doug Robinson, Administrator of Fairview Southdale Hospital, presented the
request of Fairview Hospital and Healthcare Services that the City issue revenue
bonds to finance improvements and equipment at Fairview Southdale Hospital. In
response to the Council, he presented graphics illustrating the hospital's long
range plan and pointed out projects that have been completed within the last 12
months and that would be refinanced through the proposed bond issue.
of a new expanded emergency room facility is planned to begin within the next 6-8
months. Expansion in the mature phase of the hospital (next 5-8 years) is
proposed to include a new east wing.
Construction
Mr. Robinson stated that Fairview Southdale is a member of a larger corporate
organization by the name of Fairview Hospitals and Healthcare Services which is a
multi-unit hospital organization with headquarters in downtown Minneapolis and
which operates three hospitals in the metro area, two in out-state Minnesota and
Wisconsin and one in Des Moines, Iowa. In recent years it has been a very
successful hospital corporation, based on its financial performance as well as its
ability to expand and broaden the offering of services provided to the communities
served.
Mr. Robinson said the request is to obtain authorization for issuance by the City
of Edina of up to $17,000,000 in hospital revenue bonds to be used for various
facilities and equipment acquisitions at Fairview-Southdale.
projects such as the intensive care unit opened last fall, maternity unit which
was remodeled last August, magnetic residence imaging facility to be completed
soon, radiology equipment, heart diagnostics center just completed, and new
emergency room facilities.
go towards funding either the parking ramp structure being built on site or the
medical office building which is under construction currently.
proposing the bond issue at this time to reposition their liquidity position so
that they may maintain their bond rating.
increasing concerns on the cost of health care services, they want to be diligent
and conscientious in managing their resources.
Mr. Robinson observed that the financing requests the City to serve as a conduit
for issuance of the bonds; the hospital would be the obligator on the bonds. In
order to compensate the City they are prepared to make a donation of $50,000 which
they would like to see go for some type of public health service program.
Mayor Richards asked for additional information concerning their "liquidity
position". Jim Fox, Treasurer for Fairview Hospitals, explained that the
liquidity requirement is actually their cash balance.
of cash that they try to keep on their balance sheet.
financing project on an annual basis, which would be more expensive, they try to
build several years of financeable projects and then go in for an issue every one
to three years. The liquidity requirement they try to maintain is cash to cover
50 days of expenses so that if their revenues stopped they could stay in business
50 days. The ratio of assets to debt they try to keep is approximately
$1.00:$.50. Including this additional potential of $17,000,000 they are just over
$.SO of liabilities for each $1.00 of assets. Mr. Fox observed that over the last
two to three years they have spent down their cash position on their balance sheet
and what they are trying to do is to replenish that cash balance.
These include
Mr. Robinson clarified that none of the dollars would
He said they are
Living in times where there are
.
They have a minimum amount
Rather than go in for a
7/10/89 27%
Member Smith asked if the cash depletion has been spent on other locations than
Edina and if the bond issue financing through the City of Edina will be
transferred to other corporate locations. Mr. Fox stated that the projects to be
reimbursed are strictly at Edina; that is where they have been doing the majority
of their capital expenditures over the last three years.
three years Fairview Southdale Hospital picked up 60% of the capital spent by the
corporation.
completed a $6,000,000 bond issue with that city earlier this year.
Member Paulus asked how the City could be sure that these moneys are appropriated
for the projects that have been mentioned.
are held by a trustee and the corporation has to submit documentation of what the
money was spent on in order to get reimbursement or actually submit the bill for
what the equipment is being used for.
Mayor Richards asked about the security for repayment of the bond debt.
said that this is a general revenue type security where the revenues of the
corporation are pledged, it is not asset based financing. The pledge is basically
the security of Fairview Community Hospitals to continue to generate cash flow and
maintain viability.
issued through have a negative asset pledge, so technically the assets cannot be
pledged to anyone.
corporation were to default.
.
Basically, over the last . - Another majority of that has been at Des Moines and Fairview just
Mr. Fox explained that these moneys
.
Mr. Fox
The structure of the master indenture that these bonds are
The assets would be available to the bond holders if the
Member Kelly asked about the previous donations to the City for the bond issues in
1982 and 1985 and also the percentage of patients that are Edina citizens.
Manager Rosland said that for the $4,500,000 bond issue in 1982 the hospital
donated $32,500 to the City.
provided "in kind" services and computer equipment for the paramedic program.
Mr. Robinson said that as part of that they have also been picking up the
contribution for the medical director for the paramedic service.
approximately one third of their patients are from Edina.
In 1985 for the $12,000,000 bond issue the hospital I He stated that
Mayor Richards said he was concerned about the hospital's ability to service the
bond indebtedness and the impact for the City.
that the bonds would be rated and that Standard & Poor's and Moody's would be
doing a credit analysis.
the A-1 category and they expect the same rating for the proposed bond issue. He
mentioned that the City of Edina's general obligation bond rating is AA and that
an A-1 rating for the hospital bonds would be a good criteria for approval of the
bond issue. Mr. Robinson mentioned that their bond rating puts them in a category
with the top 40 out of some 4,000 hospital corporations in the country.
Member Paulus expressed her concern about the hospital's future expansion plans
that may require variances and that would further impact that area of the City.
She said that if the bond issue is approved by the Council that we should be clear
to communicate that the impact on that corner is limited.
Attorney Jerry Gilligan stated
Past ratings on Fairview Hospitals bonds have been in
Member Smith commented that he would like to have a presentation by Fairview
Southdale Hospital of their long range plans and also what the economic benefit
would be to the community.
Mayor Richards observed that if the proposed bond issue is approved that action
would not preclude him from saying no to a future proposal for expansion of that
facility, but that he did not feel a prior restraint should be placed on the
hospital.
bonds would not impact the marketability and favorable rating for the City's
bonds.
He said his concern would be that issuance of the hospital revenue
7110189 279
Member Rice stated that he considered Fairview Southdale Hospital to be a
tremendous regional asset and of great benefit to the community.
In response to Member Smith, Mr. Robinson said that, in terms of the benefit to
the community, Fairview Southdale Hospital provides services to approximately 30%
of the citizens of Edina each year. Most residents are served by the hospital in
one way or another within three to four years.
regional resource; there is no way that the business they get from the Edina
residents alone can make it go.
to draw from the residents in the entire region.
As to the economic benefit, Mr. Robinson pointed out that the hospital is the
largest employer in Edina with 2,000 employees in the hospital itself. Without
the hospital there would not be the large medical complex that surrounds it which
easily employs another 2,000 people. He noted that a number of physicians that
use the hospital are residents of the City and have offices in the area.
hospital is the hub of the medical campus and is the drawing factor that brings
practices into the area and specialists that expand the scope of services that are
available to the community.
He added that it is a southwest
Because this is an expensive business they need
._
The
With regard to the hospital's long range plans, Mr. Robinson said that the east
tower expansion would only be built if there is the demand for it 10 or more years
out. There is the design, capacity and features to accommodate that expansion but
it likely is a long time out and may never be built.
they recently updated their long range facility plan and shared that with City
staff a few months. That update does not call for the bed tower to go up; one
more floor or so may be required but they are looking at options to avoid doing
that.
Mr. Robinson mentioned that
Member Rice interjected that future expansion may involve variances and that any
action taken by the Council at this meeting with regard to the proposed bond issue
would not obligate the Council concerning any expansion proposal in the future.
Member Kelly said she agreed with Member Rice's comment that the hospital is an
asset to the community but that Edina is also an asset to the hospital, e.g. the
location, the amenities the City offers, etc. She indicated that she would
support the bond proposal but urged the hospital to keep the lines of
communications open as they develop their facility in the future.
Member Paulus commented she too would support the bond proposal for the reason
that the moneys would be for improvements that, basically, are in place and that
those benefits are already being felt by the community.
projects are basically internal within the existing structure.
that clarity and honesty in communications in the future as the hospital develops
is of prime importance because of the great sensitivity between the community and
the hospital.
Further, that the
She reiterated
Mayor Richards then called for public comment on the bond proposal.
Member Smith then introduced the following resolution and moved its adoption,
subject to a cash donation in one lump sum of $50,000 at closing without any
restraints:
Hearing none,
RESOLUTION AUTHORIZING "HE ISSUANCE AND SAT3 OF
UP TO $17,000,000 AGGREGATE PRINCIPAL AMOUNT OF
HOSPITAL SYSTEM REVENUE BONDS, SERIES 1989A
(FAIRVIEW HOSPITAL AND HEALTHCARE SERVICES) OF
THE CITY BND THE EXECUTION OF DOCUMENTS
BE IT RESOLVED by the City Council (the "Council") of the City of Edina, Minnesota
(the "City"), as follows:
Section 1. Recitals and Findings.
280 7/10/89
(A) This Council has received a proposal from Fairview Hospital and
Healthcare Services, a Minnesota non-profit corporation ("Fairview"), which owns
and operates Fairview Southdale Hospital (the "Hospital") located in the City,
that the City finance a portion or all of the cost of a proposed project under
Hinnesota Statutes, Sections 469.152 through 469.165 (the "Act"), consisting of
various additions and improvements to the Hospital and the acquisition and
installation of items of equipment in the Hospital (the "Project").
accordance with the Act and Section 147(f) of the Internal Revenue Code of 1986,
as amended, on the proposal to undertake and finance the Project all parties who
appeared at the hearing were given an opportunity to express their views with
respect to the proposal to undertake and finance the Project and interested
persons were given the opportunity to submit written comments to the City Clerk
before the time of the hearing.
comments (if any) and such other facts and circumstances as this Council deems
relevant, this Council hereby flnds, determines and declares as follows:
the welfare of the State of Minnesota requires the provision of
necessary health care facilities, so that adequate health care services are
available to residents of the State of Minnesota at reasonable cost;
described in Section 469.152 of the Act;
that revewe bonds of the City could be issued and sold upon favorable rates and
terms to finance the Project; and
finance capital projects consisting of properties, real or personal, used and
useful in connection with a revenue producing enterprise engaged in providing
health care services, including hospitals and related medical facilities.
This Council hereby finds that the issuance and sale of up to
$17,000,000 aggregate principal amount of the City's Hospital Revenue Bonds,
Series 1989A (Fairview Hospital and Healthcare Services) (the "Series 1989 Bonds")
pursuant to the Act is in the best interest of the City and the City hereby
determines to issue and sell such Series 1989 Bonds.
1989 Bonds vi11 be lent (the "Loan") by the City to Fairview, in order to finance
the Project and pay certaln costs of issuance of the Series 1989 Bonds.
Agreement"), to be entered into between the City and Fairview, a copy of which has
been presented to the Council at this meeting and which has been revieved to the
extent deemed necessary, Fairview will issue to the City its Series H Note (Edina
Issue No. 3) (the "Series H Note"). The Series H Note will be issued under the
Master Trust Indenture (the "Master Indenture"), dated as of August 1, 1978,
between Fairview and First Bank National Association, as trustee (the "Master
Trustee"), as supplemented by Supplemental Indenture No. 16 ("Supplemental
Indenture No. 16") to be entered into between Fairview and the Master Trustee.
Under the Series If Note Fairview will unconditionally agree to repay the Loan made
by the City under the Note Purchase Agreement in specified amounts and at
specified times sufficient to make the necessary payments of principal of,
premium, if any, and interest on the Series 1989 Bonds, when due. In addition,
the Note Purchase Agreement contains provisions relating to the payment by the
Company of administrative costs of the City and the Bond Trustee (as hereinafter
defined), indemnification, insurance and other agreements and covenants which are
required by the Act or which are permitted by the Act and which the City and
Fairview deem necessary or desirable to the sale of the Series 1989 Bonds.
Pursuant to an Indenture of Trust and Pledge, (the "Bond
Indenture") to be entered into between the City and Noruest BankMinnesota,
National Association, as Trustee (the "Bond Trustee"), a copy of which has been
presentedto the Council at this meeting and which has been reviewed to the extent
deemed necessary the City assigns and pledges all of its right, title and interest
in the Note Purchase Agreement (except for certain rights for administrative costs
and for indemnification), the Series H Note, the Master Indenture and the
t
(B) At a public hearing, duly noticed and held on July 10, 1989, in
Based on the public hearing, such written
(i)
(ii)
(iii)
the Project would further the general purposes contemplated and
this Council has also been advised by representatives of Fairview
(iv) the City is authorized by the Act to issue its revenue bonds to
I (C)
The proceeds of the Series
(D) Pursuant to a Note Purchase Agreement (the "Note Purchase
(E) I
i'llOl89
281
Supplemental Indenture to the Bond Trustee.
among other things, sets the interest rates, maturity dates and redemption
provisions for the Series 1989 Bonds, establishes the various funds and accounts
for the deposit and transfer of money and contains other provisions which are
required by the Act or which are permitted by the Act and which the City and
Fairview deem necessary or desirable in connection with the sale of the Series
1989 Bonds.
City payable solely from amounts payable by Fairview under the Series M Note,
other than to the extent payable from the proceeds of the Series 1989 Bonds.
Series 1989 Bonds shall not be payable from or charged upon any funds other than
the revenue pledged to the payment thereof, nor shall the City be subject to any
liability thereon. No holder or holders of any Series 1989 Bond shall ever have
the right to compel any exercise of the taxing power of the City to pay any such
Series 1989 Bond or the interest thereon, nor to enforce payment thereof against
any property of the City except the Series H Note.
not constitute a debt of the City within the meaning of any constitutional or
statutory limitation.
Boston Corporation, Dain Bosworth Incorporated and Piper, Jaffray & Hopwood
Incorporated (the "Underwriters") pursuant to a Contract of Purchase (the
"Contract of Purchase") between the City, Fairview and The First Boston
Corporation, on behalf of the Underwriters, a copy of which has been presented to
the Council at this meeting and which has been reviewed to the extent deemed
necessary.
A draft of a Preliminary Official Statement, related to the Series
1989 Bonds, has been presented to the Council at this meeting and has been
reviewed to the extent deemed necessary. The Preliminary Official Statement will
be distributed by the Underwriters to potential purchasers of the Bonds.
In order to provide for
the financing of the Project, the City hereby authorizes the issuance of the
Series 1989 Bonds as revenue bonds under the Act, to be designated "City of Edina,
Minnesota, Hospital System Revenue Bonds, Series 1989A (Fairview Hospital and
Healthcare Systems)" in the aggregate principal amount of up to $17,000,000.
final terms of the Series 1989 Bonds including the principal amount, maturity
schedule, interest rates, provisions for redemption of the Series 1989A Bonds
prior to their stated maturity and purchase price to be paid by the Underwriters
has not as yet been determined.
directed to approve the final terms ,of the Series 1989 Bonds on behalf of the
City; provided that the principal amount of the Series 1989 Bonds does not exceed
$17,000,000, the final stated maturity date of any Series 1989 Bonds is not in
excess of 30 years from the date of issuance of the Series 1989 Bonds, and no
interest rate on any Series 1989 Bond exceeds 9% per annum.
be conclusively evidenced by their execution of the Contract of Purchase as
provided in Section 6 hereof.
on behalf of the City by the manual or facsimile signatures of the Mayor and the
City Manager, and its corporate seal (which may be in facsimile) shall be
thereunto affixed, imprinted or engraved. The Bond Trustee is hereby designated
as authenticating agent pursuant to Minnesota Statutes, Section 475.55.
the officers who shall have signed or sealed any of the Series 1989 Bonds shall
cease to be such officers of the City before the Series 1989 Bonds so signed and
sealed shall have been actually authenticated by the Trustee or delivered by the
City, such Series 1989 Bonds nevertheless may be authenticated, issued and
delivered with the same force and effect as though the person or persons who
signed or sealed such Series 1989 Bonds had not ceased to be such officer or
officers of the City.
The Bond Indenture and the Note Purchase Agreement are hereby made a part of this
Resolution as fully as though set forth in full herein and are hereby approved in
In addition, the Bond Indenture,
(P) The Series 1989 Bonds will be special limited obligations of the
The
The Series 1989 Bonds shall
(G) The Series 1989 Bonds will be purchased from the City by The First
(H)
Section 2. Authorization of Issuance of Bonds.
'
The
I
The Mayor and City Manager are authorized and
Such approval shall
Section 3. Execution of Bonds. Each Series 1989 Bond shall be executed
If any of
I
Section 4. Execution of Bond Indenture and Note Purchase Apreement.
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7/10/89 282
the form submitted to this meeting, and the Mayor and City Manager are hereby
authorized and directed to execute, acknowledge and deliver the Bond Indenture and
the Note Purchase Agreement on behalf of the City with such changes, insertions
and Omissions therein as do not change the substance of the Bond Indenture or Note
Purchase Agreement and as may be approved by the Mayor and Ciity Manager, such
approval to be evidenced conclusively by their execution of the Bond Indenture and
the Note Purchase Agreement.
distribution by the Underwriters to potential purchasers of the Series 1989 Bonds
of a Preliminary Official Statement in substantially the form submitted to the
Council at this meeting, and the distribution by the Underwriters of an official
statement by the Underwriters to purchasers of the Bonds in substantially the form
of the Prelkhary Official Statement. The City has not and will not participate
in the preparation of the Preliminary Official Statement and has made no
independent investigation with respect to the information contained therein or in
the appendices thereto, and the City assumes no responsibility for the
sufficiency, accuracy or completeness of such information.
is hereby made a part of this Resolution as fully as though set forth in full
herein and is hereby approved in the form submitted to this meeting and, upon the
determination of the terms of the Series 1989 Bonds (vithin the limit set forth in
Section 2 hereof) and the execution of the Contract of Purchase by FairViev and
the Underwriters with the Mayor and City Manager are hereby authorized and
directed to execute the Contract of Purchase on behalf of the City, with such
further changes, insertions or omissions therein as do not change the substance of
the Contract of Purchase and as may be approved by the Mayor and City Manager,
such approval to be evidenced conclusively by their execution of the Contract of
Purchase.
officers of the City are hereby authorized and directed to execute and deliver all
other documents which may be required under the terms of the Bond Indenture, the
Note Purchase Agreement or the Contract of Purchase, and to take such other action
as may be required or appropriate for the performance of the duties imposed
thereby or to carry out the purposes thereof.
Section 8. Absence or Disabilitv of Officers. In the absence or
disability of the Mayor, the City Manager or any other officer of the City named
in any instrument to be executed on behalf of the City in connection with the
issuance of the Series 1989 Bonds, the acting Mayor, Assistant City Manager or
other officer may execute such instrument.
officer of the City shall be conclusive evidence of its approval.
Develoument.
Development, with attachments, is hereby approved, and the Mayor and City Xmager
are authorized to execute said documents on behalf of the City. In accordance
with Section 469.154, Subdivision 3 of the Act, the Mayor and City Manager are ,
hereby authorized and directed to cause the Application to be submitted to the
Minnesota Department of Trade and Economic Development for approval of the
Project. The Mayor, City Manager, City Attorney and other officers, employees and
agents of the City are hereby authorized and directed to provide the Department
with any prelimhary lnformation needed for this purpose.
given to the Issuance of the Series 1989 Bonds is subject to the receipt by the
City of the approval by the Hknesota Department of Trade and Economic Development
of the Project in accordance with Mhesota Statutes, Section 469.154, subdivision
3, and the Series 1989 Bonds shall not be issued by the City until such approval
is received by the City.
Section 10.
directed, upon the issuance of the Series 1989 Bonds thereafter to comply with the
provisions of Section 469.154, Subdivisions 5 and 7 of the Act.
hereby designated for all purposes of the Note Purchase Agreement, the Bond
Section 5. Offerinp Documents. The City hereby consents to the
Section 6. Execution of Contract of Purchase. The Contract of Purchase
Section 7. Other Actions. The Mayor, the City Manager and all other
The execution of any instrument by an
Section 9. Anlication to Minnesota Department of Trade and Economic
The Application to the Minnesota Department of Trade and Economic
The approval hereby
Compliance With Act. The Mayor and City Manager are
Section 11, Desiaation of Citv Representative. The City Manager is
7/10/89
/, 283
Indenture and the Contract of Purchase as the City official authorized to execute
on behalf of the City certificates, requests or consents as provided in the Note
Purchase Agreement, the Bond Indenture and the Contract of Purchase.
Adopted by the City Council of the City of Edina, Minnesota, this 10th
day of July, 1989.
ATTE3T : Mayor a
City Clerk
Motion for adoption of the resolution was seconded by Member Kelly.
Member Paulus moved to amend the motion that the donation to the City be
designated for public health purposes.
of a second.
Rollcall :
Ayes: Kelly, Paulus, Rice, Smith, Richards
Resolution adopted.
Motion to amend the motion failed for lack
Mayor Richards then called for rollcall vote on the main motion.
VACANCY ON C0MM"ITY EDUCATION SERVICES BOARD AND APPOINTMENT TO EDINA FOUNDATION
BOARD DISCUSSED Member Smith reminded the Council of the vacancy on the Community
Education Services Board and volunteered to contact potential nominees and bring a
recommendation to the next Council meeting.
from James Van Valkenburg, Chair of The Edina Foundation Board, advising that the
term of Bob Sherman (City appointee) expired on June 30. He asked the Council to
give him any comments concerning appointments to these two Boards and said this
would be placed on the next agenda for action.
Mayor Richards referred to a letter
AMM BRJUKFAST MEETING ON 7/20/89 NOTED
invitation to an AMM breakfast meeting on July 20 at 7:30 a.m., Hopkins House.
The purpose of the meeting is: 1) To provide city officials the opportunity to
help establish the yearly AMM agenda and work program, 2) To appraise city
officials- of major program and issue priorities as seen by the AMM Board and
staff, and 3) To discuss the AMM Legislative Contact Program.
be made by noon on July 18.
MAYOR RICHARDS NOMINATED TO REGIONAL TRANSIT BOARD
had submitted his name for consideration for appointment to the Regional Transit
Board and that he will be interviewed on July 25.
applied for appointment from District 4 are Mayor Mary Anderson from Golden Valley
and Mayor Joy Robb from Robbinsdale.
PARK AND RECREATION DEPARTMENT COMMENDED ON JULY 4 CELEBRATION Member Paulus
commended the Park and R.ecreation Department on the 4th of July Celebration. She
. said it was handled well and promoted good community relations. People had
commented that it was better than ever. Member Rice said that the fireworks were
fabulous.
off fireworks and that a Police Officer had handled the situation very
professionally.
Mayor Richards informed the Council of an
Reservations should
He said he would try to attend the meeting.
Mayor Richards stated that he
He noted that others that have
He referred to an incident involving several youths who were shooting
BROWN WATER REPORTED Member Paulus reported that she had received several phone
of calls concerning brown water in the Country Club area.
update the Council on this subject.
calls from her area also regarding brown water.
She asked that staff
Member Kelly commented that she has received
HOLIDAY STATION CONGRATULATED FOR LANDSCAPING UPGRADE Member Rice commented that
the Holiday Station on Interlachen Boulevard has upgraded the landscaping on their
property and asked if the Garden Council gave awards for this type of improvement.
.2 8 4 7/10/89
He said that their landscaping has been a magnificent turnaround from the previous
condition.
their thoughts as to some type of award for commercial landscaping.
PROPERTY AT 5233 IKCEXIACEIEN BOULEVARD DISCUSSED
property at 5233 Interlachen Boulevard has grass that is uncut and has five
vehicles parked, one of which is on the lawn.
complaints regarding this address.
that he would check into it.
complain and that staff would try to work with the property owner.
ZOTALEY LETTW CONCERNING WASTE REHOVALBCYCLING PROGRAM SERVICE AND COSTS NOTED
Member Smith said he had received a phone call from Byron Zotaley, 5504 Parkwood
Lane, concerning the service level and costs for waste removal and the recycling
program.
convey his concerns.
evaluating the new recycling program and that BFI's service in his block was just
fine but that there may have been homes that were missed.
I Manager Rosland said this could be referred to the Garden Council for
Member Kelly noted that the
She asked if there have been any
Chief Swanson said they have had no calls but
Manager Rosland said that one neighbor had called to
.-
He had asked Mr. Zotaley to write the Mayor and Council Members to
Member Smith suggested that it is too early to begin
CENSUS MEETING FOR ELECTED OFFICIBLS REFERRED TO STAFF
meeting notice for elected officials to be held in Duluth with regard to the 1990
Census.
Mayor Richards referred to
He referred the notice to the Manager for follow-up.
HC QUI"? T.ETTER SUGGESTING CLEBN-UP DAY NOTED Mayor Richards referred to the
letter he had received from A. E. McQuinn, Edina resident and businessman,
expressing his annoyance and frustration by trash that lines streets and freeways.
He suggested that this subject be placed on the agenda for the September Council
Study Session for discussion.
COMMENDATION GIVEN ON 25TH ANNDEXSARY EVENT FOR BRAEMAR GOLF COURSE
Richards commended the Park Board, the Park & Recreation Department and the golf
course staff for the 25th Anniversary Celebration of Braemar Golf Course held on
July 9.
event but to also be a part of the community by participation in the activities.
FINATXIAL REPORT ON ENTERPRISE FUNDS REQUESTED Mayor Richards suggested that an
agenda item for a future Council meeting be a update on the City's enterprise
funds. This would provide an opportunity for the Council to reflect on those
funds and what they mean from the standpoints of economics and delivery of
services to the community.
Mayor
He said it exemplified staff's willingness not only to set up for the
UPDATE GIVEN ON HAWTHORNE SUITES HOTEL Mayor Richards made reference to Member
Rice's memorandum of July 10, 1989 concerning a recent meeting with staff from the
Hawthorne Suites and subsequent letter from Kevin Poorman, Vice President and
General Counsel which indicated that Hawthorne is working on a new proposal to be
submitted to the City.
data and that this could be discussed at an upcoming meeting.
Mayor Richards suggested that the Council Members keep the
DRAFT PERSONFlEL ORDINANCE AND EMPLOYEE HANDBOOK PRESENTED TO COUNCIL Manager
Rosland passed out to the Council draft copies of Personnel Ordinance No. 122 and
the Employee Handbook for their review.
and that this has been a long and tedious process. The draft documents have been
carefully reviewed by the City Attorney and the Personnel Ordinance No. 122 will
be placed on the July 24 agenda for Council consideration and eventual adoption.
*kcLBMs PAID Motion vas made by Member Smith and vas seconded by Member Rice to
approve payment of the following claims as per pre-list dated 07/10/89: General
Fund $194,443.59, C.D.B.G. $1,217.00, Communications $821.60, Art Center
$9,406.42, Capital Fund $6,824.55, Swimming Po01 Fund $5,599.69, Golf Course Fund
$17,135.32, Recreation Center Fund $2,411.60, Gun Range Fund $239.92, Edinborough
He noted that the last update was in 1972
I
7/10/89
Park $8,788.32, Utility Fund $250,631.79, Storm Sever Utility $1,028.30, Liquor
Dispensary Fund $23,674.78, Construction Fund $110,126.59, Total $632,349.47.
Motion carried on rollcall vote, five ayes.
There being no further business on the Council Agenda, Mayor Richards declared the
meeting adjourned at 10:45 p.m.
285
City Clerk