HomeMy WebLinkAbout19891106_regular.I
MN[pIIES
OF REGULAR llEETING OF THE
EDIHB CITY COUNCIL HELD AT CITY HAIL
NOVEMBER 6, 1989
R0T.LCAT.L Answering rollcall were Members Kelly, Rice, Smith and Mayor Richards.
Mayor Richards announced that Member Paulus was representing the Council at the
School District Strategic Planning Retreat.
AMERICAN EDUCATION WEEK PROCLAIMED
Rice for adoption of the following proclamation:
WJBREAS, the citizens of our community have long recognized the historic link
between education and a strong,f?ee nation; and
WJBREAS, our public schools have enabled generations of American families to build
upon the lessons of the past to achieve the dreams of tomorrow; and
WJBREAS, America's system of public education relies not only on the skills and
dedication of teachers, school administrators, and education support staff, but
also on the encouragement and support of the entire community,
NOW, 'SHEREPORE, I, Frederick S. Richards, serving as Mayor of the City of Edina,
do hereby proclaim November 12-18, 1989 as
I urge all citizens to reaffirm their commitment to our public schools and to
recognize the critical role that learning plays in the preservation of liberty.
SIGNED this 6th day of November, 1989. ,
Motion of Member Smith was seconded by Member
PROCLAMATION - -CAN EDUCATION WEEK
AMERICAN EDUCATION WEXK
Motion carried unanimously.
EMPLOYEES JIM KNUTSON AEb BOB KOJETIN COMMENDED Manager Rosland introduced Jim
Knutson and commented that he started working for the City in December of 1986 as
an accountant.
Finance Director.
has generated most of the management reports for the Council.
stated that Mr. Knutson has accepted the position of Finance Director for the City
of Anoka.
budgeting' process.
well in his new position.
In January of 1988 he was promoted to the position of Assistant
He said that Mr. Knutson has been a most valued employee and
Manager Rosland
Mayor Richards commended Mr. Knutson for his excellent work in the
Members of the Council joined in the commendation wishing him
I
Manager Rosland then introduced Bob Kojetin, noting that he was hired as a
Recreation Supervisor in March of 1962, was promoted to Assistant Parks &
Recreation Director and in October of 1977,became the Director of Parks and
Recreation.
Minnesota, the United States and in other countries around the world.
he brought back the sport of bandy and introduced it to this country.
Rosland said it was his privilege to attend a ceremony on October 28 at which Mr.
Kojetin was inducted into the Minnesota Softball Hall of Fame.
Council joined in the commendation.
.
During those years Mr. Kojetin has promoted the game of softball in
In exchange
Manager
Members of the
CONSENT AGENDA ITEW ADOPTED
Member Smith to approve and adopt the consent agenda items as presented.
Motion was made by Member Kelly and was seconded by
Rollcall :
Ayes: Kelly, Rice,. Smith, Richards
Motion carried.
*MTNUTES OF THE JOMT HRA/COUNCIL MEETING AND REGULAR MEETING OF OCTOBER 16. 1989
APPROVED
approve the Minutes of the Joint HRA/CouncilMeeting of October 16, 1989 and the
Minutes of the Regular Meeting of October 16, 1989.
Motion carried on rollcall vote, four ayes.
Motion was made by Member Kelly and was seconded by Member Smith to
99
*TAT DIVISION APPROVED FOR 4700 AND 4704 MEXILANE
and was seconded by Member Smith for adoption of the following resolution:
Motion was made by Member Kelly
6
100 11/6/89
aESOLUTION
WHEREAS, the following described tracts of land constitute various separate
parcels :
Lot 60 and Lot 60A, ROLLING GREEN SECTION TU0
.and
Lot 1, Block 1, G"WR JOHNSON'S REARRANGEMCNT, Rolling Green;
WHEREAS, the owners of the above tracts of land desire to subdivide said tracts
into the following described new and separate parcels (herein called "Parcels"):
Parcel A - Lot 60 and that part of Lot 60A, ROLLING GREEN SECTION TU0
and that part of Lot 1, Block 1, "GUNt?AR JOHNSON'S REARRANGEHEN!C, Rolling
Green", according to the recorded plats thereof, which lie northerly of the
following described line and its extensions:
Commencing at the southeast corner of said Lot 60A; thence northwesterly
along the easterly line of said Lot 60A, a distance of 17.00 feet to the
point of beginning of the line to be described; thence southwesterly,
passing through a point on the south line of said Lot 60A distant 72.00
feet westerly from said southeast corner; and said line there terminating;
3
and
Parcel B - That part of Lot 608, ROLT.,ING GREEN SECTION TU0 and that part of
Lot 1, Block 1, GUNNBa JOHNSON'S EEARRANGEKENT, Rolling Green", according to
the recorded plats thereof, which lie southerly of the following described
line and its extensions:
Commencing at the southeast corner of said Lot 60A; thence northwes$erly
along the easterly line of said Lot 60A, a distance of 17.00 feet to the
point of beginning of the line to be described; thence southwesterly,
passing through a point on the south llne of said Lot 60A distant 72.00
feet westerly from said southeast corner; and said line there terminating;
WEEREAS, it has been determined that compliance with the Subdivision and Zoning
Regulations of the City of Edina will create an unnecessary hardship and said
Parcels as separate tracts of land-do not interfere with the purposes of the
Subdivision and Zoning Regulations as contained in the City of Edina Ordinance
Nos. 801 and 825;
NOW, THEREFORE, it is hereby resolved by the City Council of the City of Edina
hereby approved and the requirements and provisions of Ordinance No. 801 and
Ordinance No. 825 are hereby waived to allow said division and conveyance thereof
as separate tracts of land but are not waived for any other purpose or as to any
other provision thereof, and subject, however, to the provision that no further
subdivision be made of said Parcels unless made in compliance with the pertinent
ordinances of the City of Edina or with the prior approval of this Council as may
be provided for by those ordbances.
Motion carried on rollcall vote, four ayes.
-
,that the conveyance and ownership of said Parcels as separate tracts of land is
SECOND READING FOR ORDINANCE NO. 804 (REGUIATING PLATS AND SUBDIVISIONS) AND
ORDINANCE NO. 825-A30 (REOUIRING LBRGER HINrHUH LOT AREAS FOR CERTAIN LOTS IN R-1
DISTRICT AND FIRST RJUDING OF ORDINANCE NO. 825-A33 (REQUIRING INCREASED SIDEYARD
SETBACKS FOR CERTAIN LOTS IN R-1 DISTRICT CONTINUED TO 11/20/89 Planner Craig
Larsen recalled that at the October 16, 1989 meeting the Council granted First
Reading of the proposed Subdivision Ordinance No. 804 and related amendments to
the Zoning Ordinance (Nos. 825-A30 and 825-A32). At the same time the Council
identified four issues requiring further consideration: 1) Mailed notice of the
. proposed subdivision by applicants, 2) Massing, 3) Data concerning neighborhood
properties , and 4) Shall deny" language.
In addition, comments were made concerning the issue of uniformity.
was made that because the definition of neighborhood is a floating and changing
concept, two lots side by side may have considerably different lot size minimums
applicable to them and therefore the ordinance does not have "uniform regulations"
as required by statute.
uniform in their language and application.
The argument
The City Attorney has opined that the regulations are
However, the application of those
11/6/89 101
regulations may cause differing results.
lots does not mean the regulat2ons are not uniform. Therefore, he believes the
ordinance does meet the statutory requirements of uniformity. However, because
discrepancies can result between two lots side by side, at least in theory, a
revised dgfinition of neighborhood is recommended as follows:
The fact that the results differ between
"Neighborhood: All lots in the Single Dwelling Unit District, as established
by the Zoning Ordinance, which (i) touch, abut or adjoin any part of the
proposed plat or subdivision, and (ii) are wholly or partially within 350
feet of any part of such lots and parcels which so touch, abut or adjoin the
proposed plat or subdivision, except, however, that there shall be excluded
from (i) and (ii) above lots used for publicly owned parks, playgrounds,
athletic facilities and golf courses, and lots used for conditional uses as
established by the Zoning Ordinance.
If the neighborhood includes only a part of a lot, then the whole of that lot
shall be included in the neighborhood. As to streets on the perimeter of the
proposed plat or subdivision, the 350 feet shall be measured from the common
line of the street and the proposed plat or subdivision."
Planner Larsen explained that essentially what this does is remove the plat
requirement from the definition so that all nearby properties would be covered by
the same neighborhood definition.
revised definition would be applied in various areas of the City.
Graphics were presented illustrating how the
Planner Larsen then spoke to each of the four issues summarized as follows:
Mailed Notice - Add a new paragraph (3) in Sec. 10(b) after the language
required to be on signs as follows:
"(3) The applicant shall also give mailed notice to each owner of property
within.the neighborhood of the proposed plat or subdivision, as such owners
and their addresses are shown on the records of the City. The notice shall
advise of the plat.or subdivision, the number of lots proposed to be created,
the area, depth and width of the proposed lots and the address and phone
number of the applicant."
Subsequent provisions in the ordinance will then provide that the Commission
shall hold a hearing upon determination by the Planner that the required mailed
notice will have been mailed and the required signs will have been erected for at
least 10 days prior to the hearing, but that the Commission may hold its hearing
even if such notice is not given and such signs erected.
Massing - The Planning Commission, on November 1, 1989, considered Zoning
Ordinance amendments increasing interior side yard setbacks on certain lots.
increased setbacks would reduce the impression of massiveness by increasing the
required space between new homes.
following two approaches (current requirements are included for reference):
The
The Planning Commissio~ considered the
Front Side Interior Rear
Current Street Street Side Yard Yard
Single Dwelling Unit 30 15 10 25
buildings on lots 75 feet
or more in width
Attached garage 5
102 11/6/89
Front Side Interior Rear
Current
Single Dwelling Unit
buildings on lots less
-than 75 feet in width
Alternative 1
Single Dwelling Unit
buildings and attached
garages on lots 100 feet
in width or more
Street Street Side Yard Yard
30 15 5 25
30 20 10 35
Alternative- 2'
Interior Side Yard Setbacks :
On lots having a lot width of 85 feet or more the minimum interior side
yard setback shall be increased by one foot for each five feet, or
portion thereof, that the lot width exceeds 85 feet.
Graphics were presented illustrating the current setback requirements and also the
alternatives.
The Planning Commission and staff recommend Alternative 2 which creates a sliding
scale formula for determining interior side yard setbacks.
setbacks would remain unchanged.
All other minimum
A major concern of the Planning Commission was the potential impact of the
increased minimum setbacks on existing homes.
prevent or significantly alter plans for additions to existing homes. The
Commission recommended that existing homes with conforming setbacks be exempt from
the new requirements. New homes and total reconstructions would be subject to the
new setback requirements.
The new setback requirements could
I .
Data Concerning Neichborhood ProDerties - Section 12 proposes that data be
,obtained from a source acceptable to the Planner.
verify the source of information but would not necessarily require a registered
land surveyor.
This would allow staff to
--
"Shall denv" Lanmatze - The following paragraph could replace the "shall
deny" language of Section 14(c) with "shall consider". Attorney Erickson
continues to favor the shall deny language.
Council sufficient latitude in judging subdivisions and is a much stronger defense
against claims of discrimination or unequal treatment.
He feels that it does allow the
"(c) In addition to the foregoing matters, the Commission, in connection
with its recommendation to the Council, and the Council in determining
whether to approve or disapprove a proposed plat or subdivision, shall
specifically and especially consider the following matters:
(1)
(2)
Whether the proposed plat or subdivision complies with the
policies, objectives or goals of the Comprehensive Plan.
Whether the proposed plat or subdivision complies with the
policies, objectives, goals or requirements of the Zoning Ordinance,
including, without limitation, the lot size and dimension requirements of the
Zoning Ordinance, and the Flood Plain Overlay District and Heritage
Preservation Overlay District of the Zoning Ordinance, as varied by variances
therefore, if any, granted pursuant to the Zoning Ordinance.
or -e of improvements proposed to be placed thereon, may be
detrimental to the health, safety or general welfare of the public.
(3) Whether the design of the proposed plat or subdivision, or design
(4) Whether the proposed plat or subdivision conforms to and complies
11/6/89 103
with the requirements of applicable state law.
policies, objectives, goals or requirements of this ordinance, as varied by
variances therefrom if any, granted pursuant to this ordinance.
(5) Whether the proposed plat or subdivision complies with the
Planner Larsen also directed the Council's attention to several minor additions to
the proposed Zoning Ordinance Amendment No. 825-A30 regarding larger minimum lot
areas. He then asked for discussion and direction on the issues. He concluded
the presentation with the recommendation that Second Reading for the Ordinances be
continued to the November 20, 1989 meeting for these reasons: 1) It will allow
staff to (i) incorporate changes or revisions made by the Council and (ii) review
the Ordinance to insure the provisions are consistent throughout the Ordinance;
and 2) It will allow time to publish notice of the Zoning Ordinance amendment on
setbacks. Staff would also ask for authorization to contact some of the local
builders of single family houses to review the proposed ordinances and to testify
at the public hearing on November 20.
Mayor Richards suggested that each of the four specific issues be discussed by the
Council Members together with any comments from the audience with the intent that
action on the ordinances would be continued to November 20.
Mailed Notice - Member Rice proposed that.there be consistent language for the
mailed notice. Planner Larsen responded that staff could prepare a form to be
used by the applicant in mailing the notice. Mayor Richards said that Member
Paulus questioned and that he also was concerned about the provision that the
Planning Commission may hold its hearing even if such notice and the required sign
has not been erected. He suggested that the proponent be mandated to mail the
notice and erect the sign before the City would begin the application process.
Member Smith said he concurred. Member Rice asked how staff would know that the
proponent had complied.
include a provision that the proponent would have to certify that the notice had
been mailed and the sign had been erected.
Mayor Richards suggested that the ordinance language
Michael Bolen, 5207 Doncaster Way, expressed his concern that the revised
definition of neighborhood would shrink it down to properties 350 feet from a
proposed subdivision and in effect would be getting away from the original plat
and the rights of the original land owners within the plat. It would provide a
narrow base for calculating the medians in that area and they would become
meaningless. He said that it would also be a problem with regard to the mailed
notice in that it would not notify the broader neighborhood.
.
Following discussion, Mayor Richards stated that it was the consensus of the
Council that the language should require the applicant to certify that the notice
had been mailed and the sign was erected before the application would be processed
for public hearing.
Massinq - Member Smith spoke to the Planning Commission's recommendation that
existing homes with conforming setbacks be exempt from the new requirements and
that new homes or total reconstruction would be subject thereto.
that there would then be two standards regarding setbacks in the community.
Planner Larsen said the Planning Commission thought it important that we not
prevent people from constructing additions to existing homes.
the question that if existing homes were grandfathered in that it be only for a
reasonable period of time.
it would not address the massing issue and pointed out that the Council would have
the power to grant a variance from the requirements for any future case.
Kelly stated she would support that.
He commented
Member Rice raised
Mayor Richards argued against grandfathering because
Member
104
Michael Bolen said that there is nothing in the ordinance that would address the
covenants and the character and symmetry of the original plat. He suggested that,
as matter of policy, the Council might want to reserve the right to consider those
matters if they felt it was in the best interests of the neighborhood in order to
preserve values. He implied that granting of variances would effect the character
and symmetry of neighborhoods.
Member Rice asked what the restrictions were on hard surface coverage and height
for single family homes.
25% and that the maximum height is 30 feet measured at the front of the house.
Planner Larsen answered that lot coverage is limited to
Data - Mayor Richards stated that staff has addressed the issue by allowing
applicants to supply data as to adjoining properties without being required to
incur the expense of a registered land surveyor.
Tim Keane, Larkin Hoffman, said he was appearing on behalf of Steven Utne, 5257
Lochloy Drive.
computation as to size and dimensions of all lots within the defined neighborhood
would put an extraordinary burden on an applicant.
suggested that when an application is triggered that could be a function of City
staff.
would be reviewing it as a matter of course to confirm dimensions and lot area.
Mr. Keane commented that the requirement to provide the
As an alternative, he
He said that the City has most of this information on file and that staff
"Shall Denv" Lanrmage - Mayor Richards observed that alternative language has been
drafted to replace the "shall deny" language with "shall consider" as it relates
to matters in judging subdivisions. Planner Larsen said that those are elements
reiterated that Attorney Erickson still believes strongly in the shall deny
language and feels that it gives the Council latitude in making its decisions.
Tim Keane suggested that the language be offered as guiding rather than mandatory
and would also include the standard for median finding of the lot area, width and
depth. He said it would be sufficient that it guide the Council and the Planning
width and depth would have a cumulative effect of being prohibitive in the
consideration of any subdivision of an existing or in-fill lot.
lots regardless of depth or area in consideration of the surrounding neighborhood,
it would be practically impossible to have that lot meet the finding of the median
width.
standard to an in-fill subdivision or the creation of a lot in an existing
neighborhood.
as large, as wide and as deep as the median of all other lots in the neighborhood.
He said he differed with the new standard in that it would not uniformly apply to
all those similarly situated within a district, only those who wished to subdivide
a lot. Mr. Keane concluded by asking, that if it was sufficient when the
subdivision was originally approved that the minimum standards were acceptable for
that neighborhood, why now increase them to the median as the new standard for
that neighborhood.
Michael Bolen commented that if the "shall deny" language is changed to "shall
consider" it might be wise to include the factor of character and symmetry of the
neighboxhood for Council consideration in making its decision..
that we would be losing sight of what people relied on when they purchased and
developed their properties.
Member Kelly said that she would prefer the original "shall deny" language as
recommended by Attorney Erickson.
viewpoint and that he did not think the Council should give up its prerogatives.
Member Smith said that at this point he was unable to understand the differences.
Mayor Richards said he agreed with Member Rice on this issue. With regard to the
-.
'that have gone into all Council decisions on subdivisions in the past. He
- . Commission in their findings. A strict application of finding of the lot area,
For pie shaped
Mr. Keane said that the ordinance would be applying a new and different
That new standard would be that the lot would have to be at least
He said he felt
I Member Rice said he was of the opposite .
11/6/89
massing issue/setbacks, Member Smith said that he
105
would like some history on the
transition of grandfathering in
information as to how this would
City's-prior application of two standards and the
to aid him in a decision. Member Kelly asked for
affect the corridor area of York and Xerxes Avenues where there are relatively
small lots with one car garages. Planner Larsen responded that as written now the
new setback requirements would only affect lots over 85 feet in width.
Richards commented that the moratorium has been in effect for a long time and that
the Council should move forward and act on the ordinances.
Mayor
Member Rice made a motion to continue the hearings on Ordinance No. 804 Regulating
Plats and Subdivisions, Ordinance No. 825430 Requirhg Larger Minimum Lot Breas
for Certain Lots in R-1 District and Ordinance No. 825433 Requiring Increased
Sideyard Setbacks in R-1 District to November 20, 1989. Motion was seconded by
Member Kelly.
Ayes: Kelly, Rice, Smith, Richards
Motion carried.
NO ACTION TAKEN ON SECOND READING OF ORDINANCE NO. 825-A32 <TO AILOW PRIVATE CLUBS
IN THE PC-1 COMMEXCIAL DISTRICT Planner Larsen recalled that the Council had
granted First Reading of Ordinance No. 825-A32 at its meeting of October 16, 1989.
The amendment would allow private clubs that do not exceed 2,500 square feet of
gross floor area to locate in the PC-1 District.
Reading and adoption of the ordinance amendment.
Member Rice asked if the amendment would allow other non-profit private clubs
other than the Edina American Legion to move into the PC-1 Districts.
Larsen responded that by zoning requirements it would allow them to locate in the
three PC-1 Districts, e.g. Valley View/Wooddale, 44th/France and 7Oth/Cahill.
Member Smith expressed concern that, although the amendment would accommodate the
Edina American Legion, it could open up those areas to privates clubs that are not
Staff would recommend Second
Planner
I. there now.
Member Rice asked if the ordinance language could be more specific.
although he was sympathetic with the request of the Legion, he was somewhat
concerned about what might happen in the future if the amendment were passed.
Planner Larsen said that by including the square footage requirement it would
limit the size of the private club which is consistent with the way other uses are
controlled in other zoning districts. There are also other controls in place such
as those on liquor and rents which should prevent a full scale American Legion or
V.F.W. Post from locating in these districts.
question that private clubs are not defined in the ordinance.
He said that,
Member Rice also raised the
Member Smith observed that the Edina American Legion now has an on-sale beer
license and that he would not like to see that in the PC-1 Districts. He said
that he could not support amending the Zoning Ordinance solely for the reason that
the Edina American Legion wanted to relocate to the 7Oth/Cahill area.
Manager Rosland commented that the Legion has been part of the Edina community for
many years and that there is empathy for that organization and asked if they could
be grandfathered in.
and suggested that staff attempt to further refine the amendment language to make
it more limiting.
Planner Larsen said that a use variance cannot be granted
Following further discussion, Mayor Richards said that there did not appear to be
support for a 4/5 vote to adopt the ordinance amendment.
taken.
No formal action was
PUBLIC EIEARING CONTINUED TO 11/20/89 ON VACATION OF OLD COUNTY ROAD RIGHT OF WAY
(LEO EVANS PROPERTY): REQUEST REFERRED TO STAFF FOR RECOMMENDATION Affidavits of
11/6/89 ~. 106
of Notice were presented, approved and ordered placed on file.
Hoffman explained that the request for vacation of the Old County Road right of
way on the Leo Evans property, generally located east of Vernon Avenue and Olinger
Road, is unusual because the City has no interest of record in the subject land.
He explained that the property owner involved is attempting to clarify any
interest that the City may have in property that has a description therein of the
"Old County Road" or "Old Eden Prairie Road". The request is to vacate any right
of way interests that the City may have for public roads except for existing right
of way as related to Olinger Road and Vernon Avenue. Staff would recommend
vacating right of way interests that the City may have in the subject parcel with
reservation of the existing utility easement for sanitary sewer.
Engineer Fran
James Ostendorf, 9001 E. Bloomington Freeway, stated that he was the attorney
representing Leo Evans, proponent, in the registration of title to the subject
property.
interest of the City of Edina in the road described as "Old County Road" or "Old
Eden Prairie Road" on the property.
the State of Minnesota and Hennepin County.
that the subject road was not a County road.
letters from the State of Minnesota and Hennepin County disclaiming any interest
in the road and had therefore concluded that the City of Edina may have an
interest therein. He noted the following implications: 1) Road could have been
abandoned, 2) A quit claim deed could be obtained, or 3) Vacation of the wad
could be granted. As to abandonment, he said that is difficult because there
seems to be no record as to who owned the road.
been contested as to who owns the underlying property to the road.
-that part of this property lying south of the centerline of the road was initially
conveyed out in about 1920. In 1930 everything north of the north line of the
road was conveyed to a particular individual who claims ownership of the north
half of the road.
this matter before the Examiner of Titles for a decision. The vacation by the
City of Edina of any interest in the right of way for the road would expedite that
process.
He explained that the Examiner of Titles raised the issue of the
He said he had researched this matter with
Mr. Ostendorf advised that he had
Maps going back to 1918 indicated
As to a quit claim deed, it has
He explained
Mr. Ostendorf concluded by saying that he would like to bring .
Mayor Richards raised the question, if indeed the City of Edina owns or has an
interest in the road, why the City should give up its public interest without
compensation. Mr. Ostendorf said that apparently there is an easement and the
issue would be whether or not that has been used by the City.
is a curb cut at the corner of Olinger Roadflernon Avenue and that in the past
there has been dumping on the property.
Engineer Hoffman explained that the City's policy has been that if the City is
using or has an interest in an easement the recommendation would be that it be
retained. In this case, discussion with the City Attorney indicated: 1)
Uncertainty that the City has an interest in the road, 2) The City is not using
the property today as a road, and 3) Normal process would be vacating the easement
for roadway if the City is not using it or has a need for it.
He noted that there
Member Smith made a motion to continue the hearing on the request for vacation of
the Old County Road right of way to November 20, 1989 and that the matter be
referred to the City Attorney for review of facts and recommendation. Motion was
sec0nde.d by Member Kelly.
Ayes: Kelly, Rice, Smith, Richards
Motion carried. _.
*AWD OF BID FOR COIJXCTION OF GARBAGE/REFUSE FOR CITY PROPERTIES CONTIN[TED TO
11/20/89 Motion was made by Member Kelly and was seconded by Member Smith to
continue award of bid for collection of garbage/refuse for City properties to
November 20, 1989.
Motion carried on rollcall vote, four ayes.
11/6/89 10.7
*BID AWARDED FOR VAN VBLKENBURG PARK LIGHTING Motion was made by Member Kelly and
was seconded by Member Smith for award of bid for Van Valkenburg Park lighting to
recommended lov bidder, CSI Electric, Inc., at $129,500.00.
Motion carried on rollcall vote, four ayes.
*BID AWARDED FOR FENCE REPIACEMEJTC - BRAEMAR GOLF COURSE DRIVING RAMGE Motion Y~S
made by Member Kelly and was seconded by Member Smith for avqrd of bid for fence
replacement - Braemar Golf Course Driving Range to recommended lov bidder, Crowley
Company, Inc., at $9,435.00.
Motion carried on rollcall vote, four ayes.
*BID AWARDED FOR FIVE GOLF CARTS
by Member Smith for award of bid for five (5) golf carts to recommended low
bidder, Versatile Vehicles, Inc., at $14,100.00.
Motion carried on rollcall vote, four ayes.
Motion was made by Member Kelly and was seconded
BIDS REJECTED FOR DRY ELECTROSTATIC TRANSFER COPIER: TO BE REBID Motion was made
by Member Kelly and was seconded by Member Smith to reject all bids for a dry
electrostatic transfer copier and directing that the copier be re-bid.
Motion carried on rollcall vote, four ayes.
*BID AWARDED FOR REPRIGERATION - GRANDVIEW LIQUOR STORE
Kelly and was seconded by Member Smith for award of bid for refrigeration at the
Grandview Liquor Store to recommended low bidder, Merit Supply, at $12,281.40.
Motion carried on rollcall vote, four ayes.
Motion was made by Member
PUBLIC HEARING CONDUCTED ON BEER LICENSE FEES Pursuant to due notice given, a
public hearing was conducted to consider increasing the fees for beer licenses in
accordance with Chapter 104 (H.F. lk05), 1989 Legislative Session. Mayor Richards
called for public comment on the proposed license fee increase.
objection was heard and no written objections had been received hereto.
Member Smith moved approval of the proposed increase in beer licenses as
presented.
No comment or
Motion was.seconded by Member Kelly.
I
Ayes: Kelly, Rice, Smith, Richards
Motion carried.
RECYCLING PROGRAM UPDATE PRESENTED Janet Chandler, Recycling Coordinator, noted
that at the October 2, 1989 meeting there was some dissatisfaction expressed by
the Council concerning certain aspects of the Recycling Program, in particular the
issue of container placement. It was also reported that the drivers were not
returning the containers to the garage as per the contract with BFI, Inc. despite
the fact that this information was publicized through the recycling pamphlet,
articles in the Edina Sun-Current and television.
Coordinator Chandler reported that staff had met with BFI representatives to work
out a plan that has improved the situation. Subsequently, portions of each of the
five recycling routes were checked out by the Coordinator and the-BFI Supervisor.
The BFI drivers were again instructed’on the correct procedure and were told that
they would be observed from time to time.
concluded that the drivers’ performance improved considerably during the month of
October. Recycling program information
and reminders about placement of garbage, recyclables and yard waste will be
included in the Edina newsletter scheduled for distribution to each household in
January.
Coordinator Chandler also explained the procedure for missed pickups and late
set-outs of recyclables.
to residents who call the Recycling Hot Line.
From the observations made, it was
Spot checks will continue in the future.
BFI has also been working to improve telephone courtesy
11/6/89 10%
In conclusion, Coordinator Chandler stated that the Recycling Program is growing;
participation and tonnage data show a steady rise.
check has been received from Hennepin County for funding of the Recycling Program,
including the container rebate.
participation percentages.
She reported that the first
She then reviewed a chart showing tonnage and
John Moorland, BFI, reported that he has worked with the individuals who are
answering the Recyling Hot Line to improve the manner in which calls to BFI are
being handled.
performance has improved with regard to container placement/return. Mr. Moorland
said that he was pleased with the tonnage which has increased each month and that
for the month of October total tonnage was 293 tons.
BFI now has a fairly stable group of route drivers whose
Member Smith asked if BFI was experiencing any difficulties in marketing the
recyclables.
being stockpiled.
on processing and they are going directly to the market with the rest of the
materials.
to meet contract levels.
have backup which is critical to recycling.
Member Rice commented that before the change from daylight savings time to central
daylight time the recycling truck was coming to his house before daylight which
meant that residents would have to place out their recyclables in the dark. He
also questioned the driver's habits with regard to traffic safety.
said that drivers should not be starting their routes before daylight.
the drivers have been given guidelines which they are supposed to follow and that
he would appreciate knowing immediately about any safety violations.
Mr. Moorland said that everything is moving out and that none is
Currently, BFI is working with a company that is concentrating
He said BFI is having difficulty in keeping up with the volumes needed
They are also working on regional marketing so that they
Mr. Moorland
He said he
Member Kelly said that residents have raised the question of the need for pickup
every week.
to put out every week.
greatly increase with weekly pickup. . communicated to the residents.
very difficult to administer.
Mr. Moorland said that many residents do not have enough recyclables
However, participation and tonnage levels are generally
Member Kelly suggested that information be
Mr. Moorland added that every other week'pickup is
'Mayor Richards commented that, from his observations and from the tonnage reports,
a good job is being done with the Recyling Program. Member Smith asked how Edina
compared with other cities and also how the yard waste would be handled next year.
Coordinator Chandler said that only Bloomington and St. Louis Park have a higher
participation rate than Edina.
problems with compost sites the County has assured that the compost program will
continue next year.
Although Hennepin County has recently had some
RESOLUTION ADOPTED IN SUPPORT OF COUNTY FUNDING FOR STOReJZRONTflOUTH ACTION AND
SOUTH "EPM HUMAN SWVICES COUNCIL Jeff Workinger, appeared on behalf of
Storefrontflouth Action, and expressed the concerns they and other human service
agencies supported by Hennepin County are currently undergoing.
legislation, Hennepin County has been subjected to very tight funding limits for
these programs.
approximately $103 , 000 from Storefrontflouth Action's budget. Losing this vital
source .of funding could potentially force a reduction of services in Edina.
behalf of Storefront/Youth Action and other agencies who are receiving County
funding and providing human services in Edina, Mr. Workinger said he would
recommend that the Council adopt a resolution urging the Hennepin County
Commissioners to continue their support until a method for evaluating and
prioritizing the quality and level of services can be put in place.
Due to recent
The result is that Hennepin County has proposed cuts of
On
Mayor Richards said he would support the recommendation.
Members that he had made an appearance with Mr. Workinger on October 31, 1989 to
He informed the Council
11/6/89 109
let the County know how important the City views Storefrontflouth's program and
what they have done for the City over the past 12 years.
same is true for South Hennepin Human Services Council. He said he appreciated
the dilemma that the County is in but that it is a timing issue inasmuch as the
City of Edina has already gone through its budget process for the coming year.
Following discussion, Member Kelly introduced the following resolutions and moved
their adoption for forwarding to the Hennepin County Board of Commissioners:
Mayor Richards said the
RESOLUTION IN SUPPORT OF
STOREF'RONTflOUTH ACTION
WHERJUS, Hennepin County is considering total elimination of their support in the
amount of $103,876 for Storefrontflouth Action's Youth Counseling Program, and
WHEREAS, during 1989 to date the Youth Counseling Program has sewed 561 City of
Edina youth and in 1989 has provided Over 4,000 hours of counseling and education
to these young people and their families, and
WHEREAS, there is no effective alternative service for these people, and
WHEREAS, this type of early intervention in young lives actually saves in terms of
human resources, as well as reducing future costs of law enforcement, chemical
abuse treatment and institutional costs of Edina and to Hennepin County, and
WHEREAS, discontinuing this service will ultimately result in substantial
increases in human and financial costs to society;
NOW, THEREFORE, BE IT RESOLVED that the City of Edina requests the Hennepin County
Commissioners to continue to appropriate the current level of funding necessary to
Storefrontflouth Action in 1990.
ADOPTED this 6th day of-November, 1989.
RESOLUTION IN SUPPORT OF
SOUTH HENNEPM ElMW SERVICES COUNCIL
WHEREAS, the Hennepin County 1990 proposed budget eliminates all funding for
Community Planning and Coordination and Citizen Participation Process to the Human
Services Councils, including South Hennepin Human Services Council (SHHSC); and
WHEREAS, elimination of these funds will significantly impair the function of
SHBSC which is the sole entity charged with responsibility of human services
planning and coordination between and amount the four cities in the South Hennepin
area; and
WHEREAS, elimination of these funds will totally dissolve the formal process for
solicitation of citizen input as to guidelines to determine priorities in area
human service funding; and
WHERJWS, SHBSC has in the past shown itself to play an important and beneficial
role in human services and development and delivery;
TBEREFORE, BE IT RESOLVED that the City of Edina requests the Hennepin County
Commissioners to continue to appropriate the current level of funding necessary to
SHHSC in 1990.
ADOPTED this 6th day of November, 1989.
.
Motion for adoption of the resolutions was seconded by Member Smith.
Rollcall :
Ayes: Kelly, Rice, Smith, Richards
Resolutions adopted.
DATE OF 11/22/89 SET FOR MEETING WITH HERITAGE PReSERVATION BOARD REGARDING ST.
PATRICK CHURCH SITE
suggest a date for a meeting of the Council with the Heritage Preservation Board
and representatives of the Historical Society concerning the St. Patrick Church
site at 70th Street/Cahill Road.
Manager Rosland recalled that the Council had asked staff to
He said the proposed date was November 15.
Following discussion as to availability, the Council Members informally agreed to
meet with the Heritage Preservation Board/Historical Society on Wednesday,
November 22 at 3:30 p.m.
1116 189 110
COUNCIL PARTY FOR EDIWMITE AUCTION DETERMPJED Mayor Richards proposed the
following Council party to be auctioned at EDINAMITE on November 18: Five Course
Dinner Party for ten people at the Mayor's home with a riddle to be solved with
each course. For each riddle solved the bidder would get back 10% of the amount
bid.. Member Rice stated that a private source would match whatever is bid for the
dinner with the money to be designated for the Edina Art Center.
discussion, the Council informally agreed to the dinner party as suggested by
Mayor Richards.
I Following
(Member Kelly left the meeting during discussion of the next agenda item.)
S0uTHDBI;E REOUEST FOR PlUVATE FUNDING OF PUBLIC SAFETY SERVICES DISCUSSED
Rosland recalled that at its meeting of September 5, 1989 the Council had heard a
proposal by Southdale management for funding of a fulltime police officer that
would be stationed at Southdale Center.
data on the proposal and bring back recommendations for Council's consideration.
Manager
The Council had directed staff to develop
Manager Rosland directed the Council's attention to a memorandum on the subject of
Private Funding of Public Safety Services dated November 3, 1989 from Craig
Swanson, Chief of Police. The recommendations were summarized as follows:
Continued analysis and negotiation should be the first action. The Center
Companies should be encouraged to consider funding two (2) officers. In lieu of
that, Southdale can hire parttime officers to provide police visibility.
shift from public to private funding should only be done on an informed basis due
to the expectations created.
Department should totally manage the officer and assignment.
Member Smith asked if there is any way the City could assess for police services
based on commercial densities because of the frequency of calls for police service
to Southdale. Attorney Gilligan responded that there are none. However, by
special legislation the City could set up a Special Service District for the
Southdale area and could charge for increased service provided to the district.
ne
If the current proposal is accepted, the Police
,Member Rice commented that he was troubled with the whole idea of buying special
services although he was sympathetic to the Southdale commercial area and their
need for heightened security. He said he was familiar with the special service
appropriate for certain services.
he felt the City provides a supreme level of service and that he would not support
any one entity receiving anything above that. If Southdale feels it does require
additional security service, he would encourage Southdale to hire off-duty police
or increase their own security force.
support the proposal in its present form.
-district having experienced that on another entity and that it would be
However, he said that in the area of security
Member Rice concluded that he would not
Member Smith said he differed in that he felt it would be a level of service
appropriate. to the situation and density. He said he did not think it was a cut
and dried issue one way or another.
to require a higher level of calls for police service, the City may have to look
at a way of saying to Southdale that they have to put that cost into the cost of
doing business.
Chief of Police.
Mayor Richards commented that he would not support a special service district or
special treatment for any area.
fund police, fire and park services out of the general fund as general functions
of City government.
If a commercial area like Southdale continues
Member Smith said he agreed with the recommendations made by the
He said it has been the policy of the City to
Manager Rosland said he would communicate to Southdale management that at the
present time the City will continue the present level of service to be funded
11/6/89 111
through the general fund.
dedicating a police officer to one area.
(Member Kelly returned to the meeting at this point on the agenda.)
Further, that the City does not want to look at
No formal action was taken.
*RESOLUTION ADOPTED APPROVING 1990-91 COHWDNITP HEALTH SERVICES AGREEWENT WITH
HENNEPIN COUNTY Motion vas made by Member Kelly and vas seconded by Member Smith
for adoption of the following resolution:
RESOLUTION
BE IT RESOLVED by the City Council of the City of Edina, Minnesota that it hereby
authorized and directs the Mayor and Clerk to execute Agreement No. 810779,
between the County of Hennepin and the City of Edina, for the period of January 1,
1990 through December 31, 1991 for the purpose of providing Community Health
Services in the City of Edina.
Resolution adopted on rollcall vote, four ayes.
H0V"D LEaEB REGARDING BLAKE ROAD REFERRED TO TRAFFIC SAFETY COMMITTEE Manager
Rosland called the Council's attention to a letter from James B. Hovland, 5201
Blake Road, regarding excess speeds by vehicles on Blake Road and suggesting the
placement of stop signs as a solution.
that the letter be referred to the Traffic Safety Committee for their
recommendation and that Mr. Hovland be so advised.
It was informally agreed by the Council
*PETITION FOR 0-AL STREET LIGHTS - EDEN PRAIRIE ROAD REPERRED TO ENGINEERING
DEPAR!l'MENT
refer the petition from residents on Eden Prairie Road for ornamental street
lights to the Engineering Department for processing.
Motion was made by Member Kelly and vas seconded by Member Smith to
Motion carried on rollcall vote, four ayes.
*PETITION FOR 0-AL STREET LIGHTS - DELANEY BOULEVARD REPERRED TO ENGRJEWING
DEPARTMENT
refer the petition from residents on Delaney Boulevard for ornamental street
lights to the Engineering Department for processing.
Motion vas made by Member Kelly and was seconded by Member Smith to .
Motion carried on rollcall vote, four ayes.
BACH LETTER REGARDING DEER ACKNOWLEDGED Manager Rosland referred to a letter
dated November 6, 1989 from Ron and Kay Bach, 6625 Dakota Trail, regarding the
deer within the City's boundaries. The Bachs stated that they enjoy the presence
of the deer in their neighborhood and that several neighbors share their positive
attitude.
negative comments about the deer and asked to be advised before any action might
be taken to remove or destroy the deer.
They said they had heard that some residents have been expressing
Manager Rosland advised that Arden Aanestad, an Edina resident, serves on the DNR
task force on deer and that Assistant Manager Hughes has talked with him. The DNR
is addressing the problem by trying to control the main deer herd in the Minnesota
River Valley. Mr. Aanestad said he would keep staff informed as to the results of
the task force report. Mayor Richards asked that when the report is received that
staff notify all residents who have been concerned about the deer population.
RTB CERTIFICATE OF APPRECIATION TO CITY NOTED
that he, Manager Rosland and Ceil Smith had attended a recent breakfast meeting of
the.Regiona1 Transit Board (RTB). Michael Ehrlichmann, RTB Chair, had presented a
Certificate of Appreciation to the City of Edina in recognition of the City
seeking special legislation to create the transit system to serve the southeast
area of the City.
to communicate with all municipalities in the metropolitan area in response to
criticism that there is not fair representation on the RTB.
Mayor Richards advised the Council
I
Chairman Ehrlichmann had indicated that the RTB is attempting
UPDATE GIVEN ON EDINA JOINT PUBLIC RELATIONS EFFORT
several months ago the Edina Chamber of Commerce had a one day planning retreat
Manager Rosland reported that
11 16 I89 112
which he had attended. Dr. Smyth, Edina School District Superintendent, was also
present. Manager Rosland said he had made several comments, one of which
e.g. Edina is a great place in which to live, work and play.
indicated that the School District is committed to promoting this general
ob j ective . U - referenced the challenge from the Council to better communicate the Edina word,
Dr. Smyth had
A follow-up meeting was held three weeks ago at which representatives of the
Chamber, School District and City discussed how this kind of communication could
possibly be achieved through a joint effort.
go back, discuss this and bring back ideas on how to get out that message at a
meeting scheduled for December 15.
agenda for input and discussion by the Council.
It was agreed that each entity would
Manager Rosland said this was put on the
Mayor Richards said he had attended the last meeting and had raised the question,
"Do we really have a commonality of interest or purpose of what we would want to
communicate through a joint publication?'! It was suggested that a questionnaire
be circulated among the three groups to determine if there is a common objective.
He suggested that the Council Members individually complete the questionnaire, and
then determine if there is a consensus as to where the Council is coming from
which could be taken back.
Member Smith said he thought the Council's consensus was to tell the Edina story
to other governmental officials that Edina is a good example of the way to run
local government.
Statement.
He also said we should keep in mind the City's Mission
Member Smith said he would support further efforts on this.
Member Rice said that he also would support this project and suggested that it
might be good to get the information compiled by the focus groups of the Futures
Commission. Assistant Manager Hughes stated that this information has already
been sent to the Board of Education and that it could be sent to the Chamber as
well.
and distinct from the City's current communications effort.
. responded that it would be..
I Member Rice asked if this joint public relations effort would be separate
Mayor Richards
CONCERN VOICED REGARDING OPEN HOUSE PARTY ORDINANCE VIOLBTIONS Member Smith
expressed his concern about the lack of enforcement of the Open House Party
Ordinance in connection with the participation of members of the Edina High School
homecoming court at a party on October 6.
stated that two individuals ages 16 and 17 were arrested for drinking and that
they were released to their parents.
action but that the message going around the school is that "they got off".
suggested that the City do a better job of providing background to the general
public as to the appropriateness and degree of difficulty the police officers have
in meting out uniform justice when the facts are buried.
because this has become a public issue maybe it would be good to have a report on
the matter from the Police Department.
ordinance has been passed he would expect it to be enforced.
want a report on the incident because the City Manager has the responsibility of
supervising the City departments.
Council's support to the Police Department by making sure the ordinance has the
strength necessary for enforcement.
Newspaper accounts of the incident
He said he was not going to judge that
He
Member Kelly said that
Mayor Richards commented that once an
He said he would not
Member Smith clarified that he wanted to convey
BROOKVIEGT HEIGHTS NEIGHBORHOOD BURGLBRTES DISCUSSED Member Smith said that he
assumed all the Council had been contacted by residents in the Brookview Heights
neighborhood concerning the recent burglaries. He said he was grateful for the
attention provided by the Police Department to that area.
are not confident that they are getting the complete picture on everything they
should do to prevent ongoing burglaries.
I However, the neighbors
11/6/89 113
Chief Swanson said that the Brookview Heights area had nine burglaries over a two
month period and rightfully so became alarmed.
the group and arranged for a meeting of the neighbors with the Police Department
relating to neighborhood security, etc. with another meeting scheduled for
November 9. In addition, the Police Department is providing full service of the
Crime Prevention Coordinator who has scheduled 10 meetings. The Police Department
has consulted with Mr. Weir on everything from neighborhood patrols to alarm
systems.
Chief Swanson said that there is not the manpower available for that and he knew
of nothing more that could be done.
CALLS NOTED ABOUT STORM SEWER PIPES Member Kelly said she had received several
calls from residents who were concern about children playing in the storm sewer
pipes at Blake Road and Vernon Avenue.
well as other pipes in the area as to safety measures that could be taken to
prevent children from accessing the pipes.
FEES AND CHARGES FOR 1990 DISCUSSED Member Rice asked when the Council would be
taking formal action of the proposed fees and charges for 1990 because he had some
questions concerning them.
conjunction with adoption of the 1990 Budget at the Council Meeting of December 4.
FORMAT FOR STREET LIGHTING PETITIONS QUESTIONED
difference in format of the petitions submitted for street lighting, noting that
some are misleading in that there is no information that the cost will be
assessed. Manager Rosland explained that the City does have a standard form which
generally is used. However, occasionally residents circulate petitions which they
have drafted themselves and which do not contain information as to assessment for *
improvements. ’
the residents are notified of the improvement hearing and the areas proposed to be
assessed.
RESIGNATION OF OTTO BpIlftE FROM E” RELATIONS COMMISSION ANNOUNCED
Richards called to the Council’s attention a letter dated November 1, 1989 from
Otto Byhre stating that he is resigning from the Human Relations Commission.
suggested that the Council submit names of individuals for appointment to fill the
vacancy.
Bill Weir became the spokesman for
One of the criticisms was that detectives were not on duty at night.
*
She asked that this location be checked as
Manager Rosland said that action would be taken in
Member Rice questioned the
When those petitions are processed by the Engineering Department
Mayor
I
He
LWC 1990 PROPOSED CITY POLICIES AND PRIORITIES DISCUSSED
the Council’s attention to the League of Minnesota City 1990 Proposed City
Policies and Priorities.
the membership at the League‘s Policy Adoption Meeting on November 16, 1989 at the
Hotel Sofitel in Bloomington.
represent the City and that any Council Members who wished to attend should
contact Susan Wohlrabe for registration.
are carry-overs from prior years. If the Council Members have any specific
policies with which they are uncomfortable they should so advise.
asked that any issues be conveyed to Manager Rosland by November 13 so that he
could then contact the Council Members to obtain a consensus prior to the adoption
meeting.
Meqber Smith spoke to the following policies:
1) Arbitration clause to more economically settle disputes without going through
the court system, and 2) Reinstate the authority of a governmental body to assess
for a judgement to reduce the need for insurance.
follows: Gouher State One-Call - In support of exempting cities from the Gopher
State One-Call excavation system.
ethic standard that public officials disclose personal interest in real property
in the state valued at more than $2,500.
Manager Rosland directed
These policies will be considered for final adoption by
Manager Rosland said he would be attending to
He indicated that many of the policies
Mayor Richards
Tort Liabi-litv and Insurance -
Member Rice commented as
Ethics in Government - Strongly objects to the
No formal action was taken.
114 11/6/89
RESOLUTION ADOPTED RELBTING TO $12.970.000 GENERAL OBTXGATION TAX INCREMENT
REFUNDING BONDS, SERIES 1989: AUTJ3ORIZING ISSUANCE. AWARDING SALE. FIXING FORM AND . DETAIIS. PROVIDING FOR EXECUTION AND DELIVERY THWEOF AND SECURITY THEREFOR The
City Clerk presented affidavits showing publication of the Notice of Bond Sale for
the $12,970,000 General Obligation Tax Increment Refunding Bonds, Series 1989 of
the City in a legal newspaper having general circulation in the City, and in a
daily or weekly periodical published in a Minnesota City of the first class, which
circulates throughout the state and furnishes financial news as a part of its
service, as required by law. The affidavits were examined, found to comply with
the provisions of Minnesota Statutes, Chapter 475 and directed to be filed in the -
office of the City Clerk.
I
The City Manager reported that four sealed bids for the $12,970,000 General
Obligation Tax Increment Refunding Bonds, Series 1989, had been received prior to
the time designated in the Notice of Bond Sale for the opening of bids. Pursuant
to the Notice of Bond Sale and Terms and Conditions of Sale the bids have been
opened, read and tabulated, and the terms of each have been determined to be as
follows :
Total Interest
Interest Bid for Cost - Net
Name of Bidder Rates Principal Average Rate
FIRST BANK N.A. MINNEAPOLIS 6 .OO-1991 $12,833.815.00 $9,372,193.75
DAIN BOSWORTH INCORPORATED 6 .lo-1992 6.8639%
NORWEST INVESTMENT SERVICES, INC. 6.15-1993
PIPER JAFmY & HOPWOOD 6.20-1994
INCORPORATED 6.30-1995
THE NORTHERN TRUST COMPANY 6 -40-1996
Allison-Williams Company 6.45-1997
American National Bank 6.50-1998
and Trust 6.60-1999
Juran & Moody, Inc. 6.75-2001
Cronin & Company, Inc., Chicago 6.70-2000
Miller, Johnson and Kuehn, Inc. 6.80-2002
Miller & Schroeder Financial,
Smith Barney, Harris Upham &
Baird & Go., Incorporated
Criag Hallum
Dougherty, Dawkins, Strand &
Youst Incorporated
John G. Kinnard & Go.
Marquette Bank Minneapolis
Moore Juran and Company, Inc.
M.H. Novick & Company, Inc.,
Park Investment Corporation
Summit Investment Corporation
Inc .
~ Go. Incorporated
Minneapolis
SHEARSON LEHMAN HUTTON, INC .
PRTJDENTIAL-BACHE CAPITAL
FUNDING
& GO.
SMITH BARNEY, HARRIS UPHAM
DEAN WITTER REYNOLDS, INC.
6.85 -2003
6.90-2004
7.00-2005/06
6.50-1991/96 $12,814,360.00 $9,396,130.83
6.55-1997 6.8815%
6.60-1998/99
6.70-2000/01
6.75-2002
6.85-2003
6.90-2004
6.95-2005/06
11/6/89 115
Name of Bidder
GRIFFIN, 'KUBIK, STEPHENS
& THOMPSON, INC.
HARRIS TRUST AND SAVINGS BANK
BEAR, STEARNS & CO.
KIDDER, PEABODY & CO., CHICAGO
Bank of Oklahoma, N.A.
Hutchinson, Shockey, Erley
Mercantile Bank N.A. St. Louis
Stern Brother & Co.
William Blair & Company
Van Kampen Merritt Inc., Lisle
& co.
Total Interest
Interest Bid for Cost - Net
Rates Principal Average Rate
6.00-1991 $12,814,360.00 $9,483,708.33
6.10-1992 9.9456%
6.20-1993
6.30-1994
6.40-1995
6.50-1996
6.60-1997/98
6.70-1999
6.80-2000/01
6.90-2002/03
7.00-2004/06
6.60-1991/98 $12,814,920.00 $9,487,730.00
6.65-1999 6.9485%
6.75 -2000
6.85-2001
6.95-2002/06
A. Webster Dougherty & Co., Inc.
Illinois Company, Inc.
Prescott, Ball & Turban, Inc.,
New York
Manager Rosland pointed out that the sale would provide present value savings of
$426,958.70 which exceeds the goal set by Council of at least $400,000.
Member Smith introduced the following resolution and moved its adoption:
RESOLUTION RELATING TO $12,970,000 GENERAL
AUTHORIZING THE ISSUANCE, AWARDING THE SALE, FIXING THE FORM
THEREOF AND THE SECURITY THEREFOR
OBLIGATION TAX INCRlBEXC REFUNDING BONDS, SERIES 1989;
AND DETAILS, PROVIDING FOR TEE EXECUTION AND DELIVERY
BE IT aESOLvpD by the City Council of the City of Edina, Minnesota (the City), as
follows :
Section 1. Authorization and Sale.
1.01. Authorization. Pursuant to Minnesota Statutes, Section 469.178 and
Chapter 475 the City has issued its General Obligation Tax Increment Bonds, Series
1985 (the Series 1985 Bonds) in the original principal amount of $12,000,000. The
Series 1985 Bonds were issued to provide funds to finance public redevelopment
costs paid or incurred by the Housing and Redevelopment Authority in and for the
City of Edina, Minnesota (the HRB) or the City in connection with a redevelopment
project being undertaken by the HRA pursuant to the Southeast Edina Redevelopment
Plan (the Redevelopment Plan) of the HRA. The Series 1985 Bonds are payable from
tax; increments derived from the tax increment financing district established by
the HRA pursuant to the Redevelopment Plan which is designated by Hennepin County
as District No. 1201 (Tax Increment Financing District No. 1201). In addition, to
finance public redevelopment costs of the Redevelopment Plan, the ERA has
established another tax increment financing district covering property in the area
subject to the Redevelopment Plan, which is designated by Hennepin County as
District No. 1203 (Tax Increment Financing District No. 1203). Tax Increment
Financing District No. 1201 and Tax Increment Financing District No. 1203 are
hereinafter together referred to as the "Districts". The Series 1985 Bonds are
116 11/6/89
presently outstanding in the amount of $11,850,000.
that it can effect a substantial annual debt service savlngs by refunding the
outstanding bonds described abave which are callable for redemption and prepayment
by the Ciw in advance of their maturities in accordance vith Minnesota Statutes,
Section 475.67; and the City hereby authorizes the issuance and sale of
$12,970,000 in aggregate principal amount of general obligation refunding bonds
(the Bonds) on the terms set forth in this resolution, the proceeds of which,
together vith other available moneys of the City, shall be used for this purpose,
pursuant to Minnesota Statutes, Section 475.52.
Notice of the sale of the Bonds was duly published as
required by Wmnesota Statutes, Section 475.60. Pursuant to the Notice of Bond
Sale and the Terms and Conditions of Sale, four (4) sealed bids for the purchase
of the Bonds were received at or before the time specified for receipt of bids.
The bids have been opened and publicly read and considered, and the purchase
price, interest rates and net interest cost under the terms of each bid have been
determined.
Association, of Minneapolis, Minnesota and associates (the Purchaser), to purchase
the Bonds at a price of $12,833.815.00, plus accrued interest from the date of the
Bonds to the date of delivery thereof, the Bonds to bear interest at the rates set
forth in Section 3.01.
City Manager are hereby authorized and directed to execute a contract on the part
of the City for the sale of the Bonds with the Purchaser.
of the unsuccessful bidders shall be returned forthwith.
1.03. Performance of Reuuirements. All acts, conditions and things which
are required by the Constietion and laws of the State of Minnesota to be done, to
exist, to happen and to be performed precedent to and in the valid issuance of the
Bonds having been done, existing, having happened and having been performed, it is
not necessary for this Council to establish the form and terms of the Bonds, to
provide security therefore and to issue the Bonds forthwith.
subdivision 17, this Council hereby estimates that the tax increments from the
Districts pledged herein to the payment of the Bonds are sufficient to pay when
due the principal of and interest on the Bonds.
The City presently estimates
1.02 Sale of Bonds. .
The most favorable proposal received is that of First Bank National
The proposal is hereby accepted, and the Mayor and the
"he good faith checks
1.04. Maturities. Pursuant to Minnesota Statutes, Section 475.54,
Section 2. Form of Bonds.
2.01. Bond Form. The Bonds shall be prepared in substantially the following
form:
[Face of the Bonds1
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
--
CITY OF EDINA
GENERAL OBLIGATION TAX INCREMENT REFUNDING BOND
SERIES 1989
No. $-
Rate Ma tu r i ty Original Issue CUSIP Date of
November 1, 1989
REGISTERED
OWNER
PRINCIPAL
AMOUNT
SEE REVERSE
FOR CERTAIN
DEFINITIONS
DOLLARS
THE CITY OF EDINA, Hennepin County, Minnesota (the City), acknowledges itself to be indebted and, for value
received, hereby promises to pay to the registered owner named
above, or registered assigns, the principal amount specified
11/6/89 117
..
above, on the maturity date specified above, with interest
thereon.from the date of original issue specified above, or the
most recent interest payment date to which interest has been paid or duly provided for, at the annual rate specified above,
payable on January 1 and July 1 in each year, commencing
July 1, 1990, to the person in whose name this Bond is
registered at the close of business on the 15th day (whether or
not a business day) of the immediately preceding month, all
subject to the provisions referred to herein with respect to
the redemption of the principal of this Bond before maturity.
The interest hereon and, upon presentation and surrender hereof
at the principal office of the Bond Registrar hereafter
designated, the principal hereof, are payable in lawful money
of the United States of America by check or draft of First
Trust National Association, in St. Paul, Minnesota, as Bond
Registrar, Transfer Agent and Paying Agent (the Bond
Registrar), or its successor designated under the Resolution
described herein.
Additional provisions of this Bond are contained, on
the reverse hereof and such provisions shall for all purposes have the same effect as though fully set forth hereon.
any purpose or be entitled to any security or benefit under the
Resolution until the Certificate of Authentication hereon shall have been executed by the Bond Registrar by manual signature of
one of its authorized representatives.
This Bond shall not be valid or become obligatory for
IN WITNESS WHEREOF, the City of Edina, Hennepin
County, State of Minnesota, by its City Council, has caused
this Bond to be executed by the facsimile signatures of the Mayor and the City Manager and by a printed facsimile of the
official seal of the City and has caused this Bond to be dated
as of the date set forth below.
Dated of AuthenticatJon:
(Facsimile Signature)
City Manager
(Facsimile Signature)
Ma yo r
(Facsimile Seal)
CERTIFICATE OF AUTHENTICATION
This is one.of the Bonds delivered pursuant to the
Resolution mentioned within.
FIRST TRUST NATIONAL ASSOCIATION,
as Bond Registrar
BY Authorized Representative
[Reverse of the Bonds]
This Bond is one of an issue in the aggregate principal
amount of $12,970,000 (the "Bonds"), issued pursuant to a
resolution adopted by the City Council on November 6, 1989 (the
"Resolution") to refund outstanding general obligation tax
increment bonds of the City. The Bond is issued pursuant to
and in full conformity with the provisions of the Constitution
and laws of the State of Minnesota thereunto enabling,
including Minnesota Statutes, Section 469.178 and Chapter 475.
In addition, for the full and prompt payment of the principal
and interest on the Bonds as the same become due, the full faith, credit and taxing power of the City have been and are
irrevocably pledged. The Bonds are issuable only as fully registered bonds, in denominations of $5,000 or any multiple thereof, of single maturities.
-- I
I
!
I
I
118 11/6/89
Bonds maturing in the years 1991 through 1996 are
payable on their respective stated maturity dates without
option of prior payment, but Bonds having stated maturity dates in the years 1997 through 2006 are each subject to redemption
and prepayment, at the option of the City in whole or in part,
and if in part, in inverse order of maturities and in $5,000
principal amounts selected by lot, within any maturity, on
January 1, 1996 and on any interest payment date thereafter, at
a price equal to the principal amount thereof to be redeemed
plus interest accrued to the date of redemption. At least
thirty days prior to the date set for redemption of any Bond,
.notice of the call for redemption will be mailed to the Bond
Registrar and to the registered owner of each Bond to be
redeemed at his address appearing in the Bond Register, but no
defect in or failure to give such mailed notice of redemption
shall affect the validity of proceedings for the redemption of any Bond, not affected by such defect or failure. Official
notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein
specified, and from and after such date (unless the City shall
default in the payment of the redemption price) such Bonds or
portions of Bonds shall cease to bear interest. Upon partial
redemptinn of any Bond, a new Bond or Bonds will be delivered
to the registered owner without charge, representing the
remaining principal amount outstanding.
As provided in the Resolution and subject to certain
limitations set forth therein, this Bond is transferable upon
the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by his
attorney duly authorized in writing upon surrender hereof
together with a written instrument of transfer satisfactory to
the Bond Registrar, duly executed by the registered owner or
his attorney; and may also be surrendered in exchange for Bonds
of other authorized denominations. Upon such transfer or
exchange, the City will cause a new Bond or Bonds to be issued
in the name of the transferee or registered owner, of the same
aggregate principal amount, bearing interest at the same rate
and maturing on the same date, subject to reimbursement for any
tax, fee or governmental charge required to be paid with
respect to such transfer or exchange. ..
The City and the Bond Registrar may deem and treat'the
person in whose name this Bond is registered as the absolute
owner hereoE, whether this Bond is overdue or not, for the
purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar shall be affected by
any notice to the contrary.
that all acts, conditions and things required by the
Constitution and laws of the State of Minnesota to be done, to
exist, to happen and to be performed precedent to and in the
issuance of this Bond in order to make it a valid and binding general obligation of the City according to its terms have been
done, do exist, have happened and have been performed in regular and due form as so required; that prior to the issuance
hereof, the City has pledged and appropriated tax increments to
be derived by the City from tax increment districts in the City to a sinking fund established for the payment of the Bonds;
that, if necessary for the payment of principal and interest on
the Bonds, ad valorem taxes are required to be levied upon all
taxable property in the City, which levy is not limited as to
rate or amount; and that the issuance of this Bond does not
cause the indebtedness of the City to exceed any constitutional
or statutory limitation.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED .
I I -1
I
I
11/6/89 119
I
I-
f.
The following abbreviations, when used in the
inscription on the face of this Bond, shall be construed as
though they were written out in full according to the
applicable laws or regulations:
TEN COM -- as tenants UNIF TRANS MIN ACT ..... Custodian..... in common (Cust) (Minor )
TEN ENT -- as tenants
by the entireties
under Uniform Transfers to
JT TEN -- as joint tenants Minors
with right of . survivorship and Act... ...................
not as tenants in (State)
common
Additional abbreviations may also be used.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby Sells,
assigns and transfers unto #
the within Bond and all rights thereunder, and hereby
irrevocably constitutes and appoints
attorney to transfer the within Bond on the books kept for
registration thereof, with full power of substitution in the
premises.
Dated:
PLEASE INSERT SOCIAL SECURITY assignment must correspond with
OR OTHER IDENTIFYING NUMBER the name as it appears upon the
OF ASSIGNEE: face of the within Bond in every
NOTICE: The signature to this
particular, without alteration
or any change whatsoever.
by a commercial bank or trust
i' / Signature(s) must be guaranteed
company or by a brokerage firm
having a membership in one of
the major stock exchanges.
11/6/89 120
2.02. Form of Certificate. A certificate in substantially the folloving
I form shall appear on the reverse side of each Bond, folloving a copy of the text . to the legal opinion of Bond Counsel:
opinion rendered by Bond Counsel on the issue of Bonds of the City of Edina which
includes the within Bond, dated as of the date of delivery of and payment for the
Bonds.
We certify that the above is a full, true and correct copy of the legal
(Facsimile signature) (Facsimile signature)
Section 3. Band Terms. Execution and Deliverv.
3.01. Maturities. Interest Rates. Denominations. Payment. and Datinz of
bonds.
denominated "General Obligation Tax Increment Refunding Bonds, Series 1989". The
Bonds shall be issuable in the denomination of $5,000 each or any integral
multiple thereof, shall mature on January 1 in the years and amounts set forth
belov, and Bonds maturing in such years and amounts shall bear interest from date
of issue until paid or duly called for redemption at the rates per annum shown
opposite such years and amounts as follovs:
City Wger Mayor
The City shall forthwith issue and deliver the Bonds, which shall be
Year
1991
1992
1993
1994
1995
1996
1997
1998
Amount
$185,000
130,000
160,000
170,000
555,000
1,060,000
1,055,000
1,045,000
Rate
6.00%
6.10
6.15
6.20
6.30
6.40
6.45
6.50
- Year
1999
2000
2001
2002
2003
2004
2005
2006
Amount
$1,035,000
1,025,000
1,115,000
1,100,000
1,085,000
1,070,000
1,100,000
1,0.80,000
Rate
6.60%
6.70
6.75
6.80
6.85
6.90
7.00
7.00 I The Bonds shall be issuable only in fully registered form. The interest thereon
and, upon surrender of each Bond, the principal amount thereof, shall be payable
by check or draft issued by the Registrar described herein. Each Bond shall be
dated as of its date of initial authentication.
Interest Payment Dates.
January 1 and July 1 in each year, commencing July 1, 1990, to the owner of record
thereof as of the close of business on the fifteenth day of the immediately
preceding month, whether or not such day is a business day.
registrar, transfer agent and paying agent (the Registrar).
registration and the rights and duties of the City and the Registrar with respect
thereto shall be as follovs: - (a) RePister. The Registrar shall keep at its principal corporate trust
office a bond register in which the Registrar shall provide for the registration
of ownership of Bonds and the registration of transfers and exchanges of Bonds
entitled to be registered, transferred or exchanged.
Bond duly endorsed by the registered owner thereof or accompanied by a written
instrument of transfer, in form satisfactory to the Registrar, duly executed by
the registered ovner thereof or by an attorney duly authorized by the registered
owner n writing, the Registrar shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Bonds of a like aggregate
principal amount and maturity, as requested by the transferor.
however, close the books for registration of any transfer after the fifteenth day
of the month preceding each interest payment date and until such interest payment
date.
owner for exchange, the Registrar shall authenticate and deliver one or more new
Bonds of a like aggregate principal amount andmaturie, as requested by the
registered owner or the owner's attorney duly authorized in writing.
3.02. Interest on the Bonds shall be payable on
3.03. Registration. The City shall appoint, and shall maintain, a bond
The effect of
(b) Transfer of Bonds. Upon-surrender to the Registrar for transfer of any
The Registrar may,
(c) Exchange of Bonds. Whenever any Bond is surrendered by the registered
11/6/89 121
(d) Cancellation. All Bonds surrendered upon any transfer or exchange shall
be promptly cancelled by the Registrar and thereafter disposed of as directed by
the City.
Registrar for transfer, the Registrar may refuse to transfer the same until it is
satisfied that the endorsement on such Bond or separate instrument of transfer is
legally authorized. The Registrar shall incur no liability for its refusal, in
good faith, to make transfers which it, in its judgment, deems improper or
unauthorized.
in whose name any Bond is at any time registered in the bond register as the
absolute mer of such Bond, whether such Bond shall be overdue or not, for the
purpose of receiving payment of, or on account of, the principal of and interest
on such Bond and for all other purposes, and all such payments so made to any such
registered owner or upon the owner's order shall be valid and effectual to satisfy
and discharge the liability of the City upon such Bond to the extent of the sum or
sums or paid.
(g) Taxes. Fees and Charges. For every transfer or exchange of Bonds
(except for an exchange upon a partial redemption of a Bond), the Registrar may
impose a charge upon the owner thereof sufficient to reimburse the Registrar for
any tax, fee or other governmental charge required to be paid vith respect to such
transfer or exchange.
become mutilated or be lost, stolen or destroyed, the Registrar shall deliver a
new Bond of like amount, number, maturity date and tenor in exchange and
substitution for and upon cancellation of any such mutilated Bond or in lieu of
and in substitution for any such Bond lost, stolen or destroyed, upon the payment
of the reasonable expenses and charges of the Registrar in connection therewith:
and, in the case of a bond lost, stolen or destroyed, upon filing with the
Registrar of evidence satisfactory to it that such Bond was lost, stolen or
destroyed, and of the ownership thereof, and upon furnishing to the Registrar of'
an appropriate bond of indemnity in form, substance and amount satisfactory to it,
in which both the City and the Registrar shall be named as obligees. All Bonds so
surrendered to the Registrar shall be cancelled by it and evidence of such
cancellation shall be given to the City. If the mutilated, lost, stolen or
destroyed Bond has already matured or been called for redemption in accordance
with its terms, it shall not be necessary to issue a new Bond prior to payment.
agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55,
subdivision 1.
Trust National Association, St. Paul, Minnesota, as the initial Registrar. The
Mayor and the City Manager are authorized to execute and deliver, on behalf of the
City, a contract with First !Crust National Association, as Registrar. Upon merger
of consolidation of the Registrar with another corporation, if the resulting
corporation is a bank or trust company authorized by law to conduct such business,
such corporation shall be authorized to act as successor Registrar. The City
agrees to pay the reasonable and customary charges of the Registrar for the
services performed. The City reserves the right to remove any Registrar upon
thirty (30) days' notice and upon the appointment of a successor Registrar, 2n
which event the predecessor Registrar shall deliver all cash and Bonds in its
pos.session to the successor Registrar and shall deliver the bond register to the
successor Registrar.
further order of this Council, the City Finance Director shall transmit to the
Xegistrar from the Bond Fund, moneys sufficient for the payment of all principal
and interest then due.
Bonds maturing in the years 1991through 1996 shall not
be subject to redemption prior to maturity, but Bonds maturing in/the years 1997
through 2006 shall each be subject to redemption and prepayment, at the option of
the City, in whole or in part, and if in part, in inverse order of maturities and,
(e) Imp roper or Unauthorized Transfer. When any Bond is presented to the
<f) Persons Deemed Owners. The City and the Registrar may treat the person
(h) Mutilated. Lost. Stolen or Destroyed Bonds. In case any Bond shall
'
I
(i) Authenticatinp Agent. The Registrar is hereby designated authenticating
3.04. Amointment of Initial Registrar. The City hereby appoints First
On or before each principal or interest due date, without
3.05. Redemption.
11/6/89 122'
within any maturity, in $5,000 principal amounts selected by the Registrar by lot,
on January 1, 1996 and on any interest payment date thereafter at a price equal to
redemption.
Bond, the City Manager shall cause notice of the call for redemption to be mailed
to the Registrar and to the registered owner of each Bond to be redeemed, but no
defect in or failure to give such mailed notice of redemption shall affect the
validity of proceedings for the redemption of any Bond not affected by such defect
or failure.
redemption price, the wmbers, interest rates and CUSIP numbers of the Bonds to be-
redeemed and the place at which the Bonds are to be surrendered for payment, vhich
is the principal office of the Registrar.
been given as aforesaid, the Bonds or portions thereof so to be redeemed shall, on
the redemption date, become due and payable at the redemption price therein
specified and from and after such date (unless the City shall default in the
payment of the redemption price) such Bonds or portions thereof shall cease to
bear interest.
In addition to the notice prescribed by the preceding paragraph, the City
shall also give, or cause to be given, notice of the redemption of any Bond or
Bonds or portions thereof at least 35 days before the redemption date by certified
mail or telecopy to the Purchaser and all registered securities depositories then
in the business of holding substantial amounts of obligations of the character of
the Bonds (such depositories now being The Depository Trust Company, of Garden
City, Hew York; Midwest Securities Trust Company, of Chicaga, Illinois; Pacific
Securities Depository Trust Company, of San Francisco, California; and
Philadelphia Depository &t Company, of Philadelphia, Pennsylvania) and one or
more national information services that dissem3nate information regarding
municipal bond redemptions; pravided that any defect in or any failure to give any
notice of redemption prescribed by this paragraph shall not affect the validity of
the proceedings for the redemption of any Bond or portion thereof.
Bonds in a denomination larger than $5,000 may be redeemed in part in any
integral multiple of $5,000.
receive, upon surrender of such Bond to the Registrar, one or more new Bonds in
authorized denominations equal in principal amount to the unredeemed portion of
the Bond so surrendered.
direction of the City Manager and shall be executed on behalf of the City by the
signatures of the Mayor and the City Manager, and shall be sealed with the
official corporate seal of the Ciw; provided that said signatures and the
corporate seal may be printed, engraved, or lithographed facsimiles thereof.
case any officer whose signature, or a facsimile of whose signature, shall appear
on the Bonds shall cease to be such officer before the delivery of any Bond, such
signature or facsimile shall nevertheless be valid and sufficient for all
purposes, the same as if such officer had remained in office until delivery.
Notwithstanding such execution, no Bond shall be valid or obligatory for any
purpose or entitled to any security or benefit under this resolution unless and
until a certificate of authentication on such Bond has been duly executed by the
manual signature of an authorized representative of the Registrar. Certificates
of authentication on different Bonds need not be signed by the same
representative.
conclusive evidence that it has been authenticated and delivered under this
resolution.
delivered by the City Manager to the purchaser thereof upon payment of the
purchase price in accordance vith the contract of sale heretofore made and
executed, and the purchaser shall not be obligated to see to the application of
the purchase price.
- the principal amount thereof to be redeemed plus interest accrued to the date of
At least thirty days prior to the date set for redemption of any
The notice of redemption shall specify the redemption date,
Official notice of redemption having
I The owner of any Bond redeemed in part shall
3.06. PreDaration and Deliverv. The Bonds shall be prepared under the
In
The executed certificate of authentication on each Bond shall be
When the Bonds have been so executed and authenticated, they shall be
I Section 4. Security Provisions.
4.01. Escrow Ag-reement. There has been presented to this Council a copy of
an Escrow Agreement relating to'the Series 1985 Bonds, between the City and an
escrow agent (the Escrow Agreement). The form of the Escrow Agreement is hereby
1116.189 123
approved and is ordered to be placed on file in the office of the City Clerk.
Mayor and City Manager are hereby authorized and directed to execute and deliver
the Escrow Agreement on behalf of the City in substantially the form herein
approved with such changes as may be approved by the City Manager and City
Attorney, which approval shall be conclusively evidenced by the execution and
delivery of the Escrow Agreement by the Mayor and City Manager.
Bonds and funds of the City or HRA available therefor shall be deposited with the
escrow agent as provided in the Escrow Agreement in the amount set forth in the
Escrow Agreement.
4.02. Bond Fund. A Bond Fund is hereby created, as a special fund and -
designated on the books of the City as the 1989 Tax Increment Refunding Bonds Bond
Fund (the "Bond Fund"), to be held and administered by the City Finance Director
separate and apart from all other funds of the City.
interest on the Bonds to be issued at the same time as the Bonds to pay a portion
of the costs of the Project shall be payable from the Bond Fund.
of the Bonds or any additional bonds issued pursuant to Section 4.04 hereof and
made payable from the Bond Fund, are outstanding and any principal thereof or
interest thereon unpaid, the City Finance Director shall maintain the Bond Fund,
as a separate and special account to be used for the payment of the principal of,
premium, if any, and interest on the Bonds, and on all other general obligation
bonds now or hereafter issued by the City and made payable therefrom, to finance
costs incurred by the City in accordance with the Plan in aid of the Project and
any other redevelopment project to be undertaken in accordance with the Plan. The
City hereby irrevocably appropriates to the Bond Fund (a) the accrued interest on
the Bonds, (b) the tax +crements derived from Tax Increment Financing District
No. 1203 received by the City from the Authority to pay the Bonds, (c) tax
increment derived from Tax Increment Financing District No. 1201which are
appropriated by the City to the Bond Fund from the Bond Fund established by the
City in connection with its General Obligation Bonds, Series 1981 pursuant to
SectZon 4.04 of a resolution adopted by the City Council on October 5, 1981 (the
1981 Bond Resolution), and (d) any other moneys appropriated or pledged by the
terms of this Resolution to the Bond Fund.
to use amounts in the Bond Fund (other than the amounts initially deposited
therein upon the issuance of the Bonds) to finance or pay directly costs paid or
incurred by the City pursuant to the Redevelopment Plan in connection with any
redevelopment project to be undertaken in accordance with the Redevelopment Plan.
Notwithstanding the foregoing, no portion of tax increments derived from Tax
Increment Financing District No. 1203 shall be used to pay principal and interest
on that portion of the Bonds which have been issued to refund the portion of the
Series 1985 Bonds used to fund interest reduction programs undertaken by the ERA
pursuant to Minnesota Statutes, Section 469.012, subdivisions 7 to 10.
The full faith and credit and taxing
power of the City shall be and are hereby irrevocably pledged for the prompt and
full payment of the principal of and interest on the Bonds.
the tax increment from the Districts and other funds herein pledged for the
payment of the Bonds will be collected in amounts not less than five percent in
excess of the amounts needed to meet when due the principal of and interest on the
Bonds so required by Minnesota Statutes, Section 475.61.
valorem taxes are now levied to pay the Bonds or the interest to come due thereon,
pursuant to Minnesota Statutes, Section 469.178, subdivision 2. If the money on
hand in the Bond Fund should at any time be insufficient to pay principal and
interest due on all bonds payable therefrom, such amounts shall be paid from any
other fund of the City and such other fund shall be reimbursed therefor when
sufficient moneys are available in the Bond Fund. If on October 1 in any year the
sum of the balance in the Bond Fund plus the amount of tax increment to be derived
from the District is not sufficient to pay when due all principal and interest to
become due on all bonds payable therefrom in the following calendar year, or the
Bond Fund has incurred a deficiency in the manner provided in this Section 4.03, a
direct, irrepealable, ad valorem tax shall be levied on all taxable property
within the corporate limits of the City for the purpose of restoring such
The
Proceeds of the
The principal of and
So long as any
The City expressly reserves the right I
.
4.03. Full Faith and Credit Pledged.
It is estimated that
Consequently, no ad
1-2 4. 11/6/89
accumulated or anticipated deficiency in accordance vith the provisions of this
Resolution.
bonds payable from the Bond Fund and tax increments to be derived from the
Districts as maybe requiredto finance costs of other projects to be undertaken
in accordance with the Redevelopment Plan.
4.05. Additional Bonds Under 1981 Bond Resolution. Since the Bonds will be
payable in part from tax increment derived from Tax Increment Financing District
No. 1201, the Bonds constitute "additional bonds" payable from the Bond Fund
established by the 1981 Bond Resolution and are authorized to be issued by Section-
4.07 of the 1981 Bond Resolution.
authorized to execute and deliver on behalf of the City such documents as may be
appropriate to evidence the pledge and appropriation of the tax increments from
District by the Authority to the City to pay the Bonds.
When any Bond has been discharged as pravided in
this section, all pledges, covenants and other rights granted by this resolution
to the holders of such Bonds shall cease, and such Bonds shall no longer be deemed
to be outstanding under this Resolution. The City may discharge its obligations
with respect to any Bond thereto which is due on any date by depositing vith the
paying agent on or before that date a sum sufficient for the payment thereof in
full; or, if any Bond should not be paid &en due, it may nevertheless be
discharged by depositing with the paying agent a sum sufficient for the payment
thereof in'full with interest accrued to the date of such deposit.
also discharge its obligations with respect to any prepayable Bond according to
its terms, by depositing with the paying agent on or before that date an amount
'equal to the principal, interest and redemption premium, if any, which are then
due, provided that notice of such redemption has been duly given as provided
herein.
any Bonds, subject to the provisions of law now or hereafter authorizing and
regulating such action, by depositing irrevocably in escrow, with a bank qualified
by law as an escrow agent for this purpose, cash or securities which are
authorized by law to be so deposited, bearing interest payable at such times and
, at such rates and maturing on such dates as shall be required to pay all
principal, interest and redemption premiums to become due thereon to maturity or
said redemption date.
Investment of Honevs. Arbitraae. Desimation of Bonds as Oualified Tax Exempt
Oblipations and Official Statement.
The City Clerk is hereby authorized and
directed to file a certified copy of this resolution with the County Auditor of
Hennepin County, together with such other hformation as the County Auditor shall
require, and to obtain from said County Auditor a certificate that the Bonds have
been entered on his bond register as required by law.
Certification of Proceedinas.
Auditor of Henneph County are hereby authorized and directed to prepare and
furnish to the purchaser of the Bonds and to Dorsey SI Whitney, Bond Counsel,
certified copies of all proceedings and records of the City, and such other
affidavits, certificates and information as may be required to show the facts
relating to the legality and marketability of the Bonds as the same appear from
the books and records under their custody and control or as otherwise known to
them, apd all such certified copies, certificates and affidavits, including any
heretofore furnished, shall be deemed representations of the City as to the facts
recited therein.
6.03.
time to time of the Bonds 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
Bonds to become subject to taxation under the Internal Revenue Code of 1986, as
amended (the Code), and the Treasury Regulations promulgated thereunder (the
Regulations), and covenants to take any and all actions within its powers to
I 4.04. Additional Bonds. The City reserves the right to issue additional
4.06. Execution of Documents. The Mayor and City Manager are hereby
Section 5. Defeasance.
The City may
-I The City may also at any time discharge its obligations with respect to
.
Section 6. County Auditor Registration. Certification of Proceedinm.
6.01. Countv Auditor Registration.
6.02. The officers of the City and the County
I Tax Covenant. The City covenants and agrees with the holders from
11/6 189
f L 125
ensure that the interest on the Bonds will not become subject to taxation under
the Code and the Regulations.
of Treasury an information reporting statement in the form and at the time
prescribed by the Code.
officers of the City charged with the responsibility for issuing the Bonds
pursuant to this resolution, are authorized and directed to execute and deliver to
the purchaser thereof a certificate in accordance with the provisions of Section
148 of the Code, and Sections 1.103-13, 1.103-14 and 1.103-15 of the Regulations,
stating the facts, estimates and circumstances in existence on the date of issue
and delivery of the Bonds which make it reasonable to expect that the proceeds of
the Bonds will not be used in a manner that would cause the Bonds to be arbitrage
bonds within the meaning of the Code and Regulations.
proceeds of the Bonds in such a manner as to cause the Bonds to be "arbitrage
bonds" within the meaning of Section 148 of the Code and applicable Regulations;
to this end, the City shall:
(i) maintain records identifying all "gross proceeds" (as defined in
Section 148(f)(6)(B) of the Code) attributable to the Bonds, the yield at which
such gross proceeds are invested, any arbitrage profit derived therefrom (earnings
in excess of the yield on the Bonds) and any earnings derived from the investment
of such arbitrage profit;
(ii)
issuance of the Bonds, the annual determinations of the amount, if any, of excess
arbitrage required to be paid to the United States by the City (the Rebate
The City vi11 cause to be filed with the Secretary
6.04. Arbitrape Certification. The Mayor and City Manager, being the I'
6.05. Compliance With Rebate Requirement. The City will not use the
make, or cause to be made as of the anniversary date of the
Amount) ;
(iii) pay, or cause to be paid, to the United States at least once
every five Bond Years the amount, if any, which is required to be paid to the
United States, including the last installment which shall be made no later than 60
days after the day on which the Bonds are paid in full; and
(iv)
amounts until six (6) years after the Bonds have been fully paid.
In order to comply wXth the foregoing requirements, the City Finance Director
shall determine the Rebate Amount within 30 days of each anniversary date of the
issuance of the Bonds and upon payment in full of the Bonds and shall deposit such
Rebate Amount in a separate account and shall separately account for the earnings
from the investment of the Rebate Amount. In the event the foregoing requirements
conflict with the requirements of the Regulations promulated under Section 148(f)
of the Code, the requirements of such Regulations shall be controlling.
6.06. Official Statement. The Official Statement, dated as of October 24,
1989, relating to the Bonds prepared and distributed by Public Financial Systems,
Inc., the financial consultant for the City, is hereby approved, and the officers
of the City are authorized in connection with the delivery of the Bonds to sign
such certificates as may be necessary with respect to the completeness and
accuracy of the Official Statement.
and directed to call for redemption on January 1, 1996, all of the Series 1985
Bonds maturing on or after January 1, 1997.
necessary notices of redemption to be published and mailed in connection with the
redemption of the Series 1985 Bonds.
retain all records of the annual determination of the foregoing
.
6.07. Redemption of Refunded Bonds. The City Manager is hereby authorized
The City Manager shall cause the
Adopted by the City Council on November 6, 1989.r
ATTEST : 4i5 h4
6 myor %& -7%.
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by
Member Rice and upon vote being taken thereon, the following voted in favor
thereof:
Kelly, Rice, Smith, Richards
126- 11/6 789
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted, and was signed by
the Mayor, whose signature was attestedby the City Clerk.
CLAIMS PAID Motion was made by Member Kelly and vas seconded by Member Sm€th to
approve payment of the following claims as per pre-list dated 11/6/89: General
Fund $137,427.82, C.D.B.G. $2,025.00, Conmnmications $258.46, Art Center
$3,471.59, Capital Fund $247.37, swimming Pool Fund $128.00, Golf Course Fund $13,434.47, Recreation Center Fund $7,263.17, Gun Range Fund $744.11, Edinborough .
Park $16,421.74, Utility Fund $261,372.09, Storm Sever Utility $1,521.00, Liquor
Dispensary Fund $13,737.42, Construction Fund $76,631.05, Total $534,691.63 and
for confirmation of payment of the following claims dated 9/30/89: General Fund
$440,334.47, Art Center $1,645.41, svimming Pool Fund $3,381.77, Golf Course Fund
$20,339.46, Recreation Center Fund $7,749.35, Gun Range Fund $617.21, Edinborough
Park $18,236.99, Utility Fund $70,162.69, Storm Sever Utili- $180.44, Liquor
Dispensary Fund $243,921.68, Construction Fund $177,850.40, Total $984,419.87.
None
Motion carried on rollcall vote, four ayes.
There being no further business on the Council Agenda, Mayor Richards declared the
meeting adjourned at 10:52 p.m.