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HomeMy WebLinkAbout19910819_regular173 llINUTES OF TEE REGmda MEETING OF THE EDII?A CITY COUNCIL HELD AT CITY HAIL AUGUST 19, 1991 ROUCATL Answering rollcall were Members Kelly, Paulus, Rice, Richards. CONSENT AGENDA ITEMS APPROVED Motion was made by Member Smith by Member Rice to approve and adopt the Council Consent Agenda presented. Rollcall : Ayes: Kelly, Paulus, Rice, Smith, Richards Motion carried. *MINUTES OF REGULAR LIEETING OF AUGUST 5. 1991 APPROVED Motion Smith and Mayor and was seconded items as was made by Member Smith and was seconded by Member Rice to approve the Council Minutes of the Regular Meeting of August 5, 1991. Motion carried on rollcall vote, five ayes. PRETJHINARY AND FINAL PLAT APPROVED FOR JY"D VHITPJEY ADDITION <LOT 2, BLOCK 1, HMR WOODS) Presentation bv Planner Planner Larsen informed Council that, as requested at the August 5, 1991, meeting, the developers have submitted an alternative four lot plat for Lot 2, Block 1, Muir Woods for comparison with the five lot plat originally presented. The four lot plat would retain the public street almost identical to the five lot proposal and one of the middle lots along Valley View Road has been eliminated. All lots in the four lot plat and the proposed five lot plat exceed the median lot size and dimensions of the 500 foot neighborhood and no variances are required for either plat. The Planning Commission recommended the following conditions to preliminary plat approval : 1, 2. 3. 4. 5. Development Agreement - Including disposition of Outlot A so as to not preclude access for the adjacent property by virtue of right of way or dedication. Developers Agreement for Public Improvements - The agreement includes a maximum seven percent street grade for the new public street; the developers are requesting that be modified to eight percent. review and approve all retaining walls necessary adjacent to the public street. prior to construction of new homes. Final Plat Approval. Subdivision Dedication. Conservation Agreement. The City Engineer would Removal of all trees would be approved by the Planning Department Presentation for DeveloDers Mike Gair, representing the developers, presented boards illustrating the alternative four lot subdivision and explained how the individual homesites could be accessed taking into account the very difficult terrain. alternative that was considered whereby the public road would end approximately at the southwesterly boundary of Lot 1, with private drives to Lots 3 and 4. disadvantage would be the potential problems and concerns raised by private drives upwards of 400 feet. immediately to the west. From a site design perspective, the proposed four lot proposal would maintain public access, eliminate the private driveways, provide access continuity to the west and would give best high elevation access to the two lots on the upper level. He pointed out an The It would also preclude public access to the property 174. 8/19/91 Mr. Gair then spoke to the five lot subdivision that was before the Council on two previous occasions and was the subject of the Planning Commission's action. He presented the following points in support of the five lot plat: 1) All lots exceed the lot width, lot depth and lot area requirements and are consistent with the symmetry and geometry of adjoining properties. minimal impact on the character of the area and the conservation easement will preserve the existing vegetation along Valley View Road. View Road will provide safe sight distances. 4) Storm water drainage system will reduce drainage onto neighboring properties. 5) The homesites will be high quality, will have good amenities, will be well situated within the topography to encourage market responsiveness. Mr. Gair concluded by commenting that the development of the five lot subdivision would not be detrimental to the character of the area and urged the Council to give favorable consideration to the five lot subdivision with an eight percent road grade. I 2) The subdivision will have 3) Access from Valley Public Comment Mayor Richards noted correspondence had been received from G.E. Knudsvig, 6920 - Dakota Trail; Celia & Orrin-Eames, 7011 Valley View Road; and Mary Cary, 6908 Dakota Trail, generally in support of the subdivision. Jim Denovick, proposed developer of the Peper property, said that the eight percent road grade is very important to maintain the trees and to provide access to the west. Daniel Spiegel, 7104 Valley View Road, presented current enlarged photographs of the area. His concern was that the heavily wooded look of the area be preserved. Council Comment/Action Mayor Richards commented that the developers have provided the information requested by the Council in submitting a four lot subdivision. Council has indicated that some type of subdivision of the property will occur. Mayor Richards then called for action by the Council. Collectively, the Member Rice inquired as to the kind of controls in the developers agreement would insure the public improvements. developers failed to perform the City could have the work completed and the costs could be charged back against the property. clarification of the development agreement regarding Outlot A. explained that the agreement calls for Outlot A to be dedicated for a public street; or alternatively, to dedicate it as right of way to provide access to the property to the west without intervention by a third party. commented that he favored the five lot, eight percent grade subdivision. spoke to the concerns that had been expressed by the neighbors and how he felt they had been addressed. Further, that the proposed subdivision meets all the ordinance requirements, is a good project and should go ahead. Attorney Erickson explained that if the Member Rice also asked for Planner Larsen Member Rice He Member Smith commented that he was one who had asked to see a legitimate four lot subdivision and that he appreciated the presentation pointing out the negatives. He said he would support the five lot subdivision as originally presented. Member Rice made a motion for preliminary approval of the five lot subdivision, with a public road grade of eight percent, subject to: 1) Development Agreement, 2) Developers Agreement for Public Improvements, 3) Final Plat Approval, 4) Conservation Easement, and 5) Subdivision Dedication, and moved adoption of the following resolution: RESOLUTION APPROVING PIWXWWRY PLAT FOB JYL4ND WHITREP ADDITION BE IT RESOLVED by the City Council of the City of Edina, Minnesota, that that certain plat entitled "JYLAND UEITNKZ ADDITION", platted by Uhitney Peyton and Nancy Peyton, and Jyland Uhitney, Inc., and presented at the regular meeting of 8/19/91 175 the City Council of August 19, 1991, be and is hereby granted preliminary plat approval. Motion was seconded by Member Kelly. Rollcall : Ayes: Kelly, Paulus, Rice, Smith Nays: Richards Resolution adopted. Mayor Richards commented that he had voted against the proposed subdivision because of the density. the past two months, final plat approval be granted also. He suggested that, since this matter had been heard for Member Paulus then introduced the following resolution and moved its adoption, subject to: 1) Development Agreement in the form provided to the Council, but, as to Outlot A, granting to City, without cost, full and unconditional use of Outlot A for public road purposes, and otherwise on terms and conditions to be approved by the City Planner and attorney, 2) Developers Agreement for Public Improvements, 3) Forty foot Conservation Easement and 4) Subdivision Dedication in the amount of $40,000.00. RESOLUTION APPROVING FINAL PLAT FOR JPLBND VBITNEY ADDITION BE IT RESOLVED by the City Council of the City of Edina, Minnesota, that that certain plat entitled "JPLBND UHI!R?EY ADDITIONw, platted by Whitney E. Peyton and Nancy 0. Peyton, husband and vife, and Jyland Development, Inc., a Minnesota corporation, and presented at the regular meeting of the City Council of August 19, 1991, be and is hereby granted final plat approval. Motion was seconded by Member Kelly. Rollcall : Ayes: Kelly, Paulus, Rice, Smith, Richards Resolution adopted. (Member Smith left the meeting temporarily at 7:45 P.M.) ORDINANCE NO. 825-A42 ADOPTED GRANTING FINAL REZONING FROM 8-2 DOUBLE DUELLING UNIT DISTRICT TO R-1 SINGLE DUELLING UNIT DISTRICT FOR LOTS 4 & 5. BLOCK 1, LANDMARK ADDITION Affidavits of Notice were presented, approved and ordered placed on file. Presentation bv Planner Planner Larsen informed Council that the subject property comprises two lots of the five lot Landmark Addition which was platted and rezoned in 1988. Currently, all lots remain vacant. Three of the lots front on Lincoln Drive and two front on an unimproved section of Malibu Drive which is rough graded and graveled only. The proposed rezoning would affect the two lots (Lots 4 and 5) with frontage on Malibu Drive and would allow the construction of single dwelling homes. remaining three lots would remain zoned R-2 to be developed as such. The Lot 4 measures approximately 120 feet by 150 feet and contains an area of 17,017 square feet. and an area of 18,777 square feet. standards for R-1 zoning. Lot 5 has a width of approximately 140 feet, a depth of 149 feet Both lots are in excess of the minimum The Comprehensive Plan designates this area as Low Density Attached Residential which is consistent with the present R-2 zoning. single family zoning compatible with low density residential. requested would be consistent with the Comprehensive Plan. However, the Plan considers The rezoning At its meeting of July 31, 1991, the Planning Commission recommended approval of the requested rezoning subject to a developers agreement and bond covering construction of an improved public street to serve the lots. reminded Council that for a final R-2 rezoning the Council would see nothing more Planner Larsen 8/19/91 176 .. than this. of Second Reading, subject to the condition that an approved street be provided before building permits would be issued. Larsen said there are no concerns with sewer connection charges or special assessments that would run with the land. Mayor Richards called for public comment on the proposed rezoning. or objections were heard. If Council were to approve the rezoning to R-1, he recommended waiver In response to Mayor Richards, Planner I No comments Member Rice introduced Ordinance No. 825-A42 for First Reading and moved waiver of Second Reading as follows, conditioned on execution of a developers agreement and bond covering construction of an improved public street to serve the lots prior to issuance of building permits: ORDINANCE NO. 825-A42 AN ORDINANCE AMENDING THE ZONING ORDINANCE (NO. 825) BY BEZONING PROPERTY FROM R-2 DOUBLE DUEIXING UNIT DISTRICT TO R-1 SINGW DU"G UNIT DISTRICT THE CITY COUNCIL OF THE CITP OF ED=, MINNESOTLL, ORDAINS: Section 1. the following thereto: "The extent of the Single Dwelling Unit District (Et-1) is enlarged by the addition of the followhg property: bts 4 and 5, Blockl, LANDMARK ADDITION. The extent of the Double Dwellhg Unit District (a-2) is reduced by remoolCng the property described from the 8-2 District." Sec. 2. This ordinance shall be in full force and effect upon its e Section 6 of Ordinance No. 825 of the City is amended by adding and publication. I ATTEST: -gf&UJL%U City Clerk Motion for adoption of the resolution was seconded by Member Paulus. Rollcall : Ayes: Kelly, Paulus, Rice, Richards Resolution adopted. FIEZBL DEVELOPMENT PLAN FOR BUILDING EXPANSION APPROVED FOR COmluRB TIREDIRES PLUS. 5400 FRANCE AVENUE SO. Affidavits of Notice were presented, approved and ordered placed on file. Presentation bv Planner Planner Larsen explained that the subject property is located in the southwest quadrant of West 54th Street and France Avenue and is developed with a Tires Plus service center of 1670 square feet. space, thus tires are being stored in areas outside the building. In an effort to bring the tire storage into compliance with the zoning ordinance, as well as generally upgrading the entire site, the proponents are requesting approval of a plan which would add 930 square feet of storage space to the west side of the existing building. or four feet six inches taller than the existing structure. height would allow for a tiered storage system plus accommodating delivery trucks to enter and off-load inside the addition. The building affords very little storage The 15 x 62 foot addition would be 19 feet six inches high, The additional Planner Larsen noted that, even with the improvements to the site, there will be several features that would remain non-conforming: 1) Lot Area. The ordinance requires a minimum 20,000 square feet lot area be provided for an automobile senice use, conforming with a lot area of 13,037 square feet. The proposed site would be non- 2) Building Setbacks. Currently, a 32.9 foot rear setback exists. The required 3) 177 8/19/91 rear setback is 25 feet. The new addition would provide a non-conforming 16.9 foot setback. The required side street setback is 45 feet; the current and proposed side street setback would be 34.8 feet. Parking Setbacks. Currently, bituminous extends to the lot line, parking spaces are not delineated and a zero setback situation exists. requires a minimum 20 foot parking setback be maintained from all streets. Five foot setbacks are proposed for the parking spaces abutting West 54th Street and France Avenue. The ordinance The exterior of the existing building would be refaced with stucco; red glazed tiles will be used as trim. The site would be reconfigured to allow eleven customer parking spaces; four along the south property line; four abutting France Avenue and three spaces abutting West 54th Street. would be provided along the west property line. Two employee parking spaces Tire storage has been a long standing problem for the site. would address the inadequate storage situation, and provide the following improvements: The proposed plan 1. 2. 3. 4. 5. 6. Accommodate all tire storage within the building. Eliminate two curb cuts on the northeast corner of the property. Re-configure parking and traffic flow, and provide a five foot parking Provide a loading area within the building keeping drive aisles clear. Provide for landscaping to screen the site from the south property line as well as enhancing the site with greenspace and shrubbery. Relocate trash and recycled tires to a screened enclosure abutting the west property line. setback. Staff would recommend approval subject to: 1) Landscape plan approval and bonding and 2) Staff approval and permits for all exterior signage. At its meeting of July 31, 1991, the Planning Commission recommended approval of the final development plan, subject to staff conditions and the additional condition that a band of decorative tiles be wrapped around the building. Presentation for ProDonent Mike Diamond, representing Tires Plus, commented that they would be upgrading what was originally an old service station and are attempting to make it a modern facility that would be appropriate for the community. Mayor Richards called for public comment on the request for final development plan approval. No comment or objection was heard. Council Comment/Action Mayor Richards inquired if the use of the land would change. responded that the intensity of use is based on the number of service bays, which would remain the same. expansion would provide permanent indoor storage. Planner Larsen Tires are currently stored in a trailer, the proposed Member Rice obsekved that this will be an improvement to the area, will be the least intense use of a PCD-4, and he would support the proposal. Member Rice introduced the folloving resolution and moved its adoption, subject to: 1) Landscape plan approval and bond, 2) Staff approval and permits for all signage, and 3) Installation of decorative tile band on all sides of the building : RESOLUTION APPKOVING FINAL DEVELOPMEWi! PW FOR CONDURA TIRES PLUS BE IT RESOLVED by the City Council of the City of Edina, Minnesota, that the Final Development Plan for Condura Tires Plus, 5400 France Avenue South, 178 8/19/91 presented at the regular meeting of the City Council of August 19, 1991, be and is hereby approved. Motion was seconded by Member Paulus. Rollcall : Ayes: Kelly, Rice, Paulus, Richards Motion carried. I RESOLUTION ADOPTED AHENDING COMPREHENSIVE PLAN LBPJD USE HAP Presentation by Planner Planner Larsen recalled that the matter of amending the land use map of the Comprehensive Plan had been considered by the Council at its study session in March, 1991, and had been continued pending hearings relative to development at 44th and France. of the Comprehensive Plan, developed in the late 1970's and adopted in 1980, to make it consistent with the Redevelopment Plan adopted during establishment of tax increment financing districts. The proposed amendments would affect parcels in three commercial areas: 1) 44th and France, 2) Wooddale and Valley View Road, and 3) Grandview. No changes are required for the 70th and Cahill area. The tax increment districts for 44th and France and Valley View and Wooddale were decertified in June, 1991. decertification does not affect the adopted Redevelopment Plan for each district. Tax increment districts remain in effect for Grandview, and 70th and Cahill. He explained that this is an attempt to revise the land use map This The Planning Commission recommended amending the land use map to make it consistent with the adopted Redevelopment Plan with two exceptions: 1. 44th and France, Area 1. The Planning Commission recommended that Area 1 remain designated as Single Family and not be changed to Low to Medium Density Residential as shown on the Redevelopment Plan. Grandview, Area 4. designated as Industrial. 2. The Planning Commission recommended that Area 4 remain The Planning Commission felt the strongest position to take at Grandview, given the variety of redevelopment proposals that have been considered, would be to leave it designated as Industrial. Mayor Richards called for public comment on the proposed amendments to the Comprehensive Plan Land Use Map. No comment or objections were heard. Member Kelly introduced the following resolution and moved its adoption: BESOLTJTION ADOPTED AMENDING COMPREHENSIVE PL4N BE IT RESOLVED by the Edina City Council that the Comprehensive Plan of the City be amended vithin the Redevelopment Plan Areas at 44th & France Avenue, Uooddale and Valley View Road, and Grandview, to show the land uses as illustrated on the map for each of said areas attached to and made a part of these Minutes. Motion was seconded by Member Paulus. Rollcall : Ayes: Kelly, Paulus, Rice, Richards Resolution adopted. *BID AWARDED FOR STANDBY GENERATOR Motion was made by Member Smith and seconded by Member Paulus for award of bid for one standby generator to recommended low bidder, Interstate Detroit Diesel, at $15,200.00. Motion carried on rollcall vote - five ayes *BID AUABDED FOR IHPR0v"T NO. BA-295 BITUMINOUS OVERLAY AT 50TH & FRANCE Hotion was made by Member Smith and was seconded by Member Rice for award of bid for Imprmznent EA-295, bituminous mill3ng and overlay for 50th & France, to recommended lov bidder, Hardrives, Inc., at $19,005.00. Motion carried on rollcall vote - five ayes. 179 8/19/91 *BID AWARDED FOR SELF-PROPEIJXD HYDROSTATIC DRIVE CHIPSPREADER Motion was made by Member Smith and was seconded by Member Rice for award of bid for self- propelled hydrostatic drive chipspreader to recommended low bidder, HacQueen Equipment, Inc., at $58,873.00. Motion carried on rollcall vote - five ayes. *BID AWARDED FOR PARTICIPATORY WA'I'ER PLAY STRlJCTtraE FOR HlJNIC1PA.L POOL Motion was made by Member Smith and was seconded by Member Rice for award of bid for a participatory water play structure for the municipal pool to sole bidder, Amusement Leisure Equipment, Ltd., at $31,195.00. Motion carried on rollcall vote - five ayes. BID AWART)ED FOR SEASONAL BANNEW - 50TH & FRANCE Assistant City Manager Hughes presented the following bids for the fabrication of autumn banners for the 50th & France Business District: Banner Creations at $5,090.00 and Windtales at $5,158.64. 50th & France renovation project. Creations as the low bidder. He explained that these were costs included in the budget for the Staff would recommend award of bid to Banner Mayor Richards reported that correspondence had been received from Carol Rothe and Pat Dow of Windtales urging the Council to reject the low bid and award it to their small, minority Edina company. Carol Rothe, Windtales, spoke in support of the bid submitted by Windtales and mentioned banner work they have done. In response to Member Paulus, Assistant Manager Hughes said that no priority is given to bids from Edina firms or to minorities. specifications are met, the recommendation would be to award the bid to the lowest responsible bidder and Banner Creations met all the criteria. He explained that as-long as Assistant Manager Hughes said, in response to Member Kelly, that the banners are part of the City's renovation project at 50th and France. parking ramp and other elements of the project are partially paid by assessment, and partly by the tax increment process. were sent to four known companies that produce banners, one of which was Windtales. Creations made the winter banners, and the material and warranty specifications for the autumn banners were similar to those. The streetscape, He explained that the specifications Only two of the four companies elected to submit bids. Banner Member Paulus made a motion for award of bid for autumn banners for 50th and France to recommended low bidder, Banner Creations, at $5,090.00. Member Rice seconded the motion. Rollcall : Ayes: Kelly, Paulus, Rice, Richards Motion carried. TRAFFIC SAFETY COMMITTEE MLmJTES OF 8/13/91 APPROVED reviewed the recommended action in Section A of the Traffic Safety Committee Minutes of August 13, 1991. Engineer Hoffman briefly No public comment or objection was heard. Member Rice made a motion to approve the following recommended action listed in Section A of the Traffic Safety Committee Minutes of August 13, 1991: To install "STOP" signs on West 60th Street to control eastbound and westbound traffic at Chowen Avenue South, To install "ONE-HOUR PAWING" signs from 3904 to the west boundary of 3920 Sunnyside Road and-"!J!WO-HOUR PARKING" in front of the properties at 3930 and 3940 Sunnyside Road, To install "HO PARKIXG ANYTIME" signs for two car-lengths in front of 5100 France Avenue South, To construct a pedestrian pathway along the south side of West 76th Street from Edinborough Way and to the Centennial Lakes bridge, then under the West 76th Street bridge and northward to connect to the existing amphitheater path. 8/19/91 180 and to achowledge Sections B and C of the Minutes. Motion was seconded by Mayor Richards. Ayes: Kelly, Paulus, Rice, Richards Motion carried. AmITORvS REPORT PRESIZKLED John Wallin, Finance Director, introduced Kelli Bourhis, Manager and Steve Laible, Partner from Peat Marwick, and City staff that worked on the 1990 City audit. of the Council regarding the audit and the management letter. He said the auditors would respond to questions In response to recommendations in the management letter, Director Wallin reported that the accounting policies and procedures manual continues to increase in scope and size, and with the auditors help it will improve yearly. policies are in the final stages and will be presented to the Council in September. Updated purchasing Mayor Richards asked the auditors to focus on the issues that the citizens and the Council, as policy makers, should be aware of. Mr. Laible informed Council that two documents are issued as a part of the audit: the Comprehensive Annual Financial Report, and an opinion letter which is probably the most important objective of the audit. standards that all Certified Public Accountants must follow. The financial statements are prepared primarily by City staff with assistance from Peat Marwick regarding technical matters and compliance with generally accepted accounting principles. Communication is on-going with City staff throughout the year with regard to technical changes in the area of financial reporting for governmental units. The work of the auditors is governed by a set of The audit is unrestricted in scope, meaning the auditors delve into any area of financial matters appropriate in order to come to a conclusion on the fairness of financial presentation. Peat Marwick has concluded that the financial statement does present fairly, and in accordance with generally accepted accounting principals, the financial position of the City and the results of its operations for the year ended December 31, 1990. Regarding the opinion letter, of internal control. 1) the accounting policies and procedures manual, 2) investment policy and procedures, and 3) construction contracts. Mr. Laible said the recommendations were matters He briefly commented on those recommendations regarding: With respect to the overall results of operation for the year, Mr. Laible commented that the City began the year on a balanced budget. The results were within one percent which is considered very good and the City has a fund balance that can withstand minor fluctuations during the year. Mayor Richards asked Mr. Laible to respond to the controls on the City's enterprise funds. Mr. Laible said the City's primary safeguard has to be its system of internal control. evaluated and any weakness would be reported in the auditors' opinion letter. Mr. Laible said that, over the years that they have studied and evaluated the system, they believe that the controls in those areas are reasonable and there are no glaring deficiencies. suggestion that staff be given authority to approve change orders up to 10 percent of the original contract price. that would be appropriate. change orders, there should be a a trail for the auditors. As part of the audit, that system is reviewed and Mayor Richards also asked for comment on the staff I Mr. Laible said as' a general guideline Even though there is discussion and awareness of Member Rice asked what one recommendation in the management letter was the most important. Mr. Laible responded that the recommendation concerning construction contracts is important because that can represent real dollars. The other two 8/19/91 recommendations are primarily housekeeping or good business types of practice. Mayor Richards expressed the Council's appreciation for the report. BOARD APPOJXTEES TO SOUTH HENNEPIN REGIONBL PLANNING OFFICE DISCUSSED. Rosland reminded Council that the model for the South Hennepin Regional Planning Office recently approved calls for each city council to appoint two members from its Human Relations Commission and one council member to serve a two-year term on the Regional Citizen Advisory Board. It is hoped that these appointments should be made by the September 23, 1991 Council Meeting. Mayor Richards said it would be helpful if the Human Relations Commission members were asked if any member is willing and desires to be appointed to the Board. advise him of any preferences they may have as to appointment of Commission members. Manager He also asked the Council to (Member Smith re-entered the meeting at 8:42 P.M.) RESOLUTION ADOPTED RATIFYING SPECIAL LAW - CHAPTER 125. H.F. 1551 Manager Rosland noted that a memorandum had been received from LeRoy Lisk, President of the Edina Firemens' Relief Association, requesting municipal ratification of Chapter 125, H.F. 1551. This special law was adopted by the 1991 Legislature modifying limitations on survivor benefit coverage for members of the Association. removes the age 18 restriction on dependent children. children survivor benefits to age 23 if in an accredited educational program, and benefits to a disabled child requiring a guardian for life. The City would incur no cost for these changes. The amendment removes the remarriage penalty for widows and also It would also allow Member Rice introduced the following resolution and moved adoption: RESOLUTION RATIFYING CHAPTER 125, MINNESOTA LAWS, 1991 BE IT RESOLVED by the City Council of Edina, Minnesota, that it hereby approves Chapter 125, Minnesota Iaws, 1991, as required by law and pursuant to Minnesota Statutes, Section 645.021, Subd. 2, and, BE IT FUBTHEB RESOLVED that the City Clerk is directed to file with the Secretary of State a certificate of approval as required by Minnesota Statutes, Section 645.021, Subd. 3. Motion was seconded by Member Smith. Rollcall : Ayes: Kelly, Paulus, Rice, Smith, Richards Resolution adopted. DATES SET FOR TRTITH IN TAXATION HEARINGS that the City is required to advise Hennepin County of its Truth in Taxation hearing date(s) by September 3, 1991. Truth in Taxation hearings for all governmental bodies must be held in the period beginning November 15 and ending on December 20, 1991. days but no more than fourteen business days after the first public hearing. Manager Rosland reminded the Council Continued hearings must be held at least five business Following discussion, Member Smith made a motion setting Monday, November 18, 1991 at 7:OO P.M. and December 4, 1991 at 7:OO P.M. as Truth in Taxation hearing dates. Motion was seconded by Member Rice. Ayes: Kelly, Paulus, Rice, Smith, Richards Motion carried. *HEARING DATE OF 9/23/91 SET FOR SPECIAL ASSESSMENTS Motion vas made by Member Smith and was seconded by Member Rice setting September 23, 1991, as hearing date for special assessments. Motion carried on rollcall vote - five ayes. WN-SALE KINE AND 3.2 BEER LICENSE APPROVED FOR CIATTI'S ITALIAN RESTAURANT 182 SI 1919 1 Motion was made by Member Smith and was seconded by Member FKce approving the issuance of an On-sale Wine License and On-sale 3.2 Beer License to Ciatti's Italian Restaurant at 3220 W. 70th Street. Motion carried on rollcall vote - five ayes. DATES SET FOR ORDINANCE CODIFICATION DISCUSSION After a brief discussion, the Council concurred on the following dates for ordinance codification discussion to be held at Arneson Acres: Saturday, October 26, 1991 - 8:OO A.M. to 12:OO Noon Saturday, November 23, 1991 - 8:OO A.M. to 12:OO Noon RECYCLING COMMISSION RESIGNATION NOTED Mayor Richards informed Council that a letter of resignation had been received from Virginia Sweeny stating that she is unable to complete her term on the Recycling Commission. He asked that names be submitted to him of individuals interested and willing to serve on the Commission. RESOLUTION ADOPTED APPROVING CDBG YEAR XVII SUBRECIPIENT AGREEKEW Planner Larsen explained that the Housing and Urban Development (HUD) had approved the year XVII Community Development Block Grant (CDBG) Program which allocated $149,973.00 to the City of Edina. agreement with Hennepin County to expend those funds. been executed for the past program years. The agreement would require that the City follow federal guidelines and regulations in implementing the program. After execution of the agreement, and receipt of the allocated funds, the programs established by Council in April, 1991, could be implemented. The Council must execute the subrecipient A similar agreement has Member Kelly introduced the following resolution and moved its adoption: RESOUITION AUTHORIZl3!7G MAYOR AND CITY "AGEEL TO EXE- ~CIP~ A- VITH HEIJNEpIN COUNTY FOR THE URBAN HEANEPIEil COUNTY CO- DEVEU)pMeffJI BU)CK GRANT PROGRAM VHEBEdS, the City of Edina has executed a Joint Cooperation Agreement with Hennepin County for the purpose of participating in the 1991 (Year XVII) Urban Hennepin County Community Development Block Grant Program; and WHEREAS, Hennepin County is the recipient of an annual grant from the U.S. Department of Housing and Urban Development for purposes of the program and the City is a subrecipient under the program and receives a share of the grant; and WHEREAS, program regulations require that the City and County execute a Subrecipient Agreement which sets forth the specific implementation processes for activities to be undertaken with program funds; BE IT RESOLVED, that the Edina City Council hereby authorizes and directs the Mayor and the City Manager to execute Subrecipient Agreement, County Contract Number A07501, on behalf of the City. Adopted this 19th day of August, 1991. c - Mayor Motion was seconded by Member Smith. Rollcall : Ayes: Kelly, Paulus, Rice, Smith, Richards Resolution adopted. PROPOSED 1992 BUDGET RESOLUTION ADOPTED Mayor Richards called for additional discussion on the proposed 1991 Budget, following the proposed budget assumptions presentation by staff and discussion by Council at the Special Council Meeting held at 5:OO P.M. this date. 183 8/19/91 Member Smith said that, based on the assumption that the City would spend the $13,577,622 in the 1991 Budget, he could support an increase- in expenditures of $200,000 (1.5% rounded down) for a proposed 1992 Budget of $13,777,622 so as to keep keep the tax increase down to a bare minimum. Manager Rosland said the City must also certify the real estate tax increase which would be approximately .70%, with the balance of the proposed budget made up from other revenues. Member Rice commented that he would not support the 1992 Budget as proposed because he felt the City should not give up its option to certify the maximum levy limit, although he may not support the maximum when the final 1992 Budget is adopted in December. Member Smith then introduced the following resolution and moved its adoption: RESOLUTION ADOPTING PROPOSED BUDGET FOR THE CITY OF EDINA FOR THE YEAR 1992, AND ESTABLISHING PROPOSED TAX LEW FOB THE YEAR 1992 PAYABLE IN 1992 THE CITY COUNCIL OF THE CITY OF EDINA, MINNESOTA, DOES RESOLVE AS FOLLOWS: Section 1. proposed as follows: Section 2. follows : Section 3. personal property in the City of Edina a tax rate sufficient to produce the amount as follows: Adopted this 19th day of August, 1991. The Budget for the City of Edina for the calendar year 1992 is hereby TOTAL GENERAL PUND $13,781,286.00 Estimated receipts other than General Tax Levy are hereby proposed as TOTAL ESTIMATED RECEIPTS $ 3,324,525.00 That there is proposed to be levied upon all taxable real and FOR GENERAL PUND ATTEST City Clerk Motion was seconded by Member Paulus. Rollcall : Ayes: Paulus, Smith, Richards ' Nays: Kelly, Rice Resolution adopted. RESPONSE TO BE SENT TO SCHOOL BOARD REGARDING POTENTIAL CO~ITY CJfNTER RELOCATION Mayor Richards informed Council that the School Board will be considering the recommendation of its 'Blue Ribbon' Committee regarding a possible switch of the Community Center to South View Junior High School and the present Community Center becoming the middle school and has asked for the City's response. Manager Rosland has been directed to draft a letter for his signature advising the School Board of the City's past financial involvement and current contract commitments for the Senior Center located in the Community Center. UPDATE GIVEN ON CROWN VETCH ISSUE Manager Rosland updated Council on the status of the crown vetch growth at 4404 West 58th Street. had authorized an attempt to abate the issue with the property owner, Diane Lindgren. Attorney. Currently, Ms. Lindgren has maintained the crown vetch at the height of eight to ten inches required by ordinance. difficulty with stating that the crown vetch is rank vegetation. recommend dropping the litigation and requests direction from the Council. He recalled that the Council That effort failed and litigation was begun by the City's Prosecuting The City weed inspector now has Staff would Member Kelly observed that, after visiting the site, the crown vetch is cut to the appropriate length, is less offensive and Ms. Lindgren is cooperating with 184 8/ 19/9 1 the ordinance requirements. potential fire hazard after the growing season. Further, she would like a definitive answer as to To preserve the issue, Member Smith suggested that the City Attorney be directed to negotiate a settlement based on the maintenance of the crown vetch and on that basis to then dismiss the pending lawsuit. Member Kelly made a motion to direct the City Prosecuting Attorney to negotiate a settlement based on the property owner maintaining the crown vetch to comply with the ordinance and that the pending lawsuit then be dropped. lack of second. Mayor Richards stated that, because the motion had failed, the conclusion was to proceed with the litigation. . Motion failed for RESOLUTION ADO= AUTHORIZING SAU ANJ.l ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS - U. ASSISTED LIVING CORPORATION I that this is the final hearing concerning the multifamily housing revenue bonds for the Walker Methodist project at Parklawn Avenue and York Avenue. believes that the bond documents respond to the conditions imposed by the Council at the time of preliminary approval: 1) The closing statement provides for the payment of a $25,000.00 fee to the City, 2) The documents provide that the owner will not claim that the property is exempt from the payment of real estate taxes, and 3) An unconditional guaranty for the repayment of principal and interest has been provided by Walker Methodist, Inc. Assistant Manager Hughes explained Staff The Housing Revenue Bonds would be backed solely by the revenues of the project and would not be general obligations of the City. are insufficient, bond holders would rely on the guaranty for the repayment of principal and interest. If the revenues of the project Assistant Manager Hughes noted that Walker Methodist, Inc., is the proposed guarantor of the bonds and is a non-profit corporation which acts as the parent corporation of numerous affiliates and subsidiaries. Although Walker Methodist may not have direct access to the funds necessary to honor the guaranty, they have submitted that they have substantial powers of persuasion and control over their affiliates and have been the guarantor of similar bonds on past occasions. In addition to the guaranty, the bond documents provide for the following: 1) Bonds will be sold in minimum denominations of $100,000.00, and 2) The bonds will be offered only to institutional investors having sufficient knowledge and experience to evaluate the merits and risks of the investment and who are not purchasing the bonds for the purpose of distributing them to individual investors. In conclusion, Assistant Manager Hughes stated that, based upon the guaranty and the other items mentioned, staff believes that the City is reasonably protected from risks associated with the bond issue and would recommend adoption of a resolution authorizing the sale and issuance of the bonds. In response to Member Rice, David Grant, Counsel for Walker Methodist, stated that it is anticipated that the entire bond issue would be purchased by IDS Financial Services for their own account, with no retail sale of the bonds. Further, Edina residents would not have preference for occupancy in the housing facility as it would be open to anyone. occupants will come from Edina, and in particular, from 7500 York. The expectation is that the majority of Member Paulus introduced the folloving resolution and moved its adoption: BESOLUTION REXATING TO Um ASSISTED TJVING CORPORATION I; AUTHORIZING THE SATZ AND ISSUANCE OF 23mLTIFAHILY HOUSING SERIES 1991 ATAD MULTIFAMILY HOUSING REVENUE NOTE (U. REVENUE BONDS (U. ASSISTED LIVING CORPORATION I) 185 8/19/91 ASSISTED LIVING CORPORATION I) SEBIES 1991B; APPROVING THE FORMS AND AUTHORIZING EXECUTION BND DELIVERY OF DOCIMENTS REUTING TO SUCH BOmS BND NOTE BE IT BESOLVED by the City Council of the City of Edina, Minnesota (the "City") as follows: Section 1. Recitals. Municipal Housing Act) to adopt a housing plan for the City and to administer thereunder one or more housing programs or developments, including multifamily housing developments, and to sell and issue revenue bonds or obligations to make loans to finance such developments, payable solely from the revenues of the developments. that pursuant to the Municipal Housing Act the City issue its Hidtifamily Housing Revenue Bonds (Walker Assisted Living Corporation I), Series 1991 (the Bonds) and its Multifamily Housing Revenue Note (Walker Assisted Living Corporation I), Series 1991B (the Note) to finance the development and construction by the Corporation of a new multifamily rental housing facility (Project 1991) designed and intended primarily for frail elderly persons. to issue the proposed bonds was held upon published notice, and all interested persons given an opportunity to be heard with respect thereto, and the housing program has been submitted to the Minnesota Housing Finance Agency for review, all as required by applicable law. Bonds and Note have now been prepared and submitted to the City Council. First Trust National Association, as Trustee, whereby the City prescribes the terms and conditions for the issuance of the Bonds, including the form of the Bonds ; Agreement), between the City and the Corporation, whereby the City agrees to lend the proceeds of the Bonds to the Corporation for the purposes described in Section 1.02 of this Resolution, and the Corporation agrees (i) to construct Project 1991, (ii) to repay the loan in installments at times and in amounts sufficient to pay the principal of, premium, if any, and interest on the Bonds in full and when due, (iii) to maintain certain insurance, and (iv) to pay all costs and expenses of the City and to indemnify the City and hold it harmless; between the Corporation and the Trustee, whereby the Corporation grants to the Trustee a mortgage lien upon the property therein defined as the Mortgaged Property, as security for payment of the principal of and interest on the Bonds; Methodist, Inc., (the Guarantor) to the Trustee, whereby the Guarantor guarantees the full and prompt performance of all of the term, covenants and conditions to be performed by the Corporation under the Bond Loan Agreement and the Bond Mortgage ; (e) a Bond Purchase Agreement, between Piper, Jaffray 6r Hopwood Incorporated (the Underwriter), the City and the Corporation, whereby the Underwriter offers to purchase from the City and the City offers to sell to the Underuriter the Bonds upon the terms and conditions therein specified, and the Corporation agrees to such terms and conditions; 1.01. The City is authorized by Mbnesota Statutes, Chapter 462C (the 1.02. Walker Assisted Living Corporation I (the Corporation) has proposed 1.03. A public hearing on the proposed housing program and on the proposal 1.04. (a) an Indenture of Trust, dated as of August 1, 1991, between the City and Forms of the following documents (the Documents) relating to the (b) a Loan Agreement, dated as of August 1, 1991, (the Bond Loan (c) a Mortgage Agreement, dated as of August 1, 1991, (the Bond Mortgage), (d) a Guaranty Agreement, dated as of August 1, 1991, from Walker (f) an Official Statement, whereby the Bonds are offered to investors; (g) a form of Note containing its terms and conditions; (h) a Loan Agreement, dated as of August 1, 1991 (the Note Loan Agreement), between the City and the Corporation, whereby the City agrees to issue the Note to Avery Edina Limited Partnership, a Minnesota limited partnership (the Note Purchaser) in consideration for services provided and to be provided to the Corporation pursuant to the terms of a Development Agreement, dated as of August 1, 1991, between the Corporation and VES Development, and the Corporation agrees 81 19/9 1 186 to repay the loan in installments at times and in amounts sufficient to pay the principal of, premium, if any, and interest on the Note in full and when due; (i) an Assignment of Loan Agreement, dated as of August 1, 1991, from the Note Purchaser, whereby the City assigns all its right under and interest in the Note Loan Agreement to the Note Purchaser; (j) a Mortgage Agreement, dated as of August 1, 1991, (the Note Hortgage), between the Corporation and the Note Purchaser, whereby the Corporation grants to the Note Purchaser a mortgage lien upon the property therein defined as the Mortgaged Property, as security for payment of the principal of and interest on the Note; payment for semdces provided and to be provided pursuant to the terms of the Development Agreement ; and Trustee and the Note Purchaser, whereby the Trustee and the Note Purchaser agree to certain conditions regarding the exercise of the Note Purchaser's remedies under the Note Loan Agreement and the Note Mortgage. Section 2. Findinns. authorized by the Municipal Housing Act to issue the Bonds and the Note and it is in the ptiblic interest that the City issue the Bonds and the Note on the terms and conditions specified in the Indenture of Trust and the form of the Note, respectively. As provided in the Indenture of Trust and the form of the Note, the Bonds and the Note are and shall be special, limited obligations of the City. Neither the full faith and credit or the taxing power of the City is or shall be pledged to payment of the principal of, premium, if any, or interest on the Bonds and the Note. The principal of, premium, if any, and interest on the Bonds and the Note shall be payable solely from the sources specified in the Indenture of Trust and the form of the Note, respectively. No Bond or Note or any provision of the Bond Loan Agreement, Indenture of Trust, Note Loan Agreement or other document shall be at any time construed to constitute an indebtedness or obligation of any sort of the State of Minnesota or the County of Hexmepin. Section 3. Authorization and Amroval. the precise aggregate principal amounts, interest rates, maturity dates and amounts, redemption dates and prices, and purchase price of the Bonds and the Note have not been finalized. authorized to approve those details of the Bonds and the Note, without further action by this Council, provided that: $6,700,000, no interest rate for the Bonds shall exceed 9% per annum, none of the Bonds shall mature later than 40 years from date of issue and the purchase price of the Bonds (without regard to any "original issue discount") shall not be less than 98% of their principal amount; and (ii) the aggregate principal amount of the Note shall not exceed $450,000, the interest rate for the Note shall not exceed 16% per annum and the Note shall not mature later than 40 years from date of issue. When the details of the Bonds and the Note have been finalized pursuant to Section 3.01, the Mayor and City Manager are hereby authorized and directed, in the name and on behalf of the City, to execute and deliver the Indenture of Trust, Bond Loan Agreement, Bond Purchase Agreement, Note Loan Agreement, Assignment of I&an Agreement and Investment Letter in substantially the forms thereof now on file with the City Clerk. Trust shall be executed by facsimile or manual signatures of the appropriate officers of the City and shall be delivered to the Trustee for authentication and for delivery to the Underwriter upon payment by the Underwriter of the purchased price specified in the Bond Purchase Agreement. be executed by facsimile or mauual signatures of the appropriate officers of the (k) an Investment Letter, vhereby the Note Purchaser accepts the Note in (1) an Inter-Creditor Agreement, dated as of August 1, 1991, between the It is hereby found and determined that the City is I 3.01. It is recognized that as of the date of adoption of this Resolution, Therefore, the Mayor and the City Manager are (i) the aggregate principal amount of the Bonds shall not exceed 3.02. The forms of the Documents are hereby approved. I 3.03. The Bonds in substantially the form prescribed by the Indenture of 3.04. The Note in substantially the form presented to this Council shall 8/19/91 187 City and shall be delivered to the Note Purchaser upon payment by the Note Purchaser of the purchase price specified in the Investment Letter, The City consents to the use by the Underwriter, in accordance vith applicable securities laws and regulations, of the Official Statement, and authorizes its preparation and distribution in substantially the same form but including such details as interest rates, prices, maturity amounts, redemption dates and redemption prices omitted from the draft Official Statement. The City has not participated in the preparation of the Preliminary Official Statement or Final Official Statement, has not made an independent investigation with respect to the information contained therein and assumes no responsibility for the accuracy or completeness of the information contained therein. directed to do all acts and things, and to execute all documents, necessary in connection vith the issuance of the Bonds and the Note. Hanager is absent or unable to execute any document herein authorized to be executed by either or both of them, such document may be executed by the acting Hayor or by the Assistant City Manager. any document shall include such additions and amendments thereto or deletions therefrom as the officers executing such document on behalf of the City may find necessary or desirable, and the execution of any document by an officer of the City shall be conclusive evidence of its approval and authorization hereunder. The Hayor and City Manager are authorized and directed to prepare and furnish to the Underwriter and to Dorsey & Uhitney, Bond Counsel, certified copies of all proceedings and records of the City relating to the Bonds and the Note, as ehey appear from the books and records of the City. certificates and affidavits, including any heretofore furnished, shall constXate representations of the City as to the truth of all statements contained therain, Passed and adopted by the City Council of the City of Edina, HinnespC-ZiIthis 3.05. 3.06. The officers and employees of the City are hereby authorized and If the Hayor or City The approval hereby given to the form of All such certified copies, 19th day of August, 1991. ATTEST : City Clerk Motion was seconded by Member Kelly. Rollcall : Ayes: Kelly, Paulus, Rice, Smith, Richards Resolution adopted. *CLAIMS PAID Motion was made by Hember Smith and was seconded by Hember Rice to approve payment of the following claims as shown in detail on the Check Register dated 8/10/91 and consisting of 35 pages: $675.15; Communications $399.50; Art Center $7,428.51; Capital Fund $4,868.85; Swimming Pool Fund $4,830.17; Golf Course Fund $39,059.67; Recreation Center Fund $8,734.40; Gun Range Fund $774.17; Edinborough Park $25,184.10; Utility Fund $49,640.40; Storm Sewer Utility $2,333.21; Liquor Dispensary Fund $120,340.52; Construction Fund $666,709.41; IMP Bond Redemption R2 $696.25, TOTAL $1,845,120.45; and for confirmation of payment of the following claims as shown in detail on the Check Register dated 7/31/91 and consisting of 16 pages: General Fund $113,557.90; Art Center $150.82; Swimming Pool Fund $5,586.17; Golf Course Fund $11,165.98; Recreation Center Fund $453.92; Gun Range Fund ($36.40); Edinborough Park $1,119.68; Utility Fund $2,545.56; Storm Sewer Utility $75.00; Liquor Dispensary Fund $217,504.81; TOTAL $352,123.44. General Fund $913,446.14; C.D.B.G. There being no further business on the Council Agenda, Mayor Richards declared the meeting adjourned at 9:55 P.M.