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"[PPES
OF THE REGULAR mTING OF THE
EDINA CITY COUNCIL HELD AT CITY HALL
SEPTEMBm 8, 1992
ROUCU Answering rollcall were Members Kelly, Paulus, Rice, and Mayor
Richards.
consent agenda.
Member Smith entered the meeting at 7:03 P.M. after adoption of the
CONSENT AGENDA ITEMS ADOPTED Motion was made by Member Kelly and was seconded by
Member Paulus to approve and adopt the Consent Agenda items as presented.
Rollcall :
Ayes: Kelly, Paulus, Rice, Richards
Motion carried.
CONSTIT[TTION WEEK/CITIZENSHIP DAY PROCLAIMED
and was seconded by Member Kelly for adoption of the following proclamation:
EJHEREBS:
States of America to secure the blessings of liberty for ourselves and our
posterity;
WHEREAS: It is important that all citizens fully understand the provisions,
principles and meaning of the Constitution so they can support, preseme and
defend it against encroachment; and
EJHEREBS:
September 17 as CITIZENSHIP DAY and the week of September 17-23 as
CONSTITUTION REEK; and
VHEREBS:
guarantees of the Bill of Rights, equal protection of the law under the
Constitution, and the freedoms derived from it;
NOU, THEREFORE, I, Frederick S. Richards, as Mayor of the City of Edina, do
hereby proclaim September 17, as
CITIZENSHIP DAY
and the week of September 17-23 as
CONSTITUTION WEEK
and invite every citizen and institution to join in the national commemoration.
Proclaimed this 8th day of September, 2992.
Motion was made by Member Paulus
PROCLAMATION
We the People did ordain and establish a Constitution for the United
The President and the Congress of the United States have designated
The people of the City of Edina do enjoy the blessings of liberty, the
The proclamation was accepted by Florence Norback on behalf of the Daughters of
the American Revolution.
*MINUTES OF REGULAR MEETING OF AUGUST 17. 1992. APPROVED Motion was made by
Member Kelly and vas seconded by Member Paulus to approve the minutes of the
regular meeting of August 17, 1992.
Motion carried on rollcall vote - four ayes.
CONDITIONAL USE PERMIT GRANTED - CROSS VIEW LUTHERAN CHURCJ3 PARKING LOT EXPANSION
Presentation bv Planner
Planner Larsen recalled that Cross View Lutheran Church, located south of
McCauley Trail and west of Timber Trail, has applied for a Conditional Use Permit
for expansion of their existing parking lot.
heard by the Council on July 20, 1992, and was continued to allow the church time
to meet with affected neighbors on Timber Trail.
called for extending parking into a grassy area south of the existing parking lot
to create a total of 198 spaces, with an additional curb cut on Timber Trail.
The church has met with affected neighbors, most recently on September 1, 1992.
As a result of those meetings the church has modified the proposed parking plan,
the major element being elimination of the proposed southerly curb cut on Timber
The proposed request was first
The church's initial proposal
9/8/92
' 213
Trail.
northerly ingress/egress on Timber Trail.
landscaping along the buffer to the east and south side of the parking lot has
been submitted.
In response to Member Smith, Planner Larsen said the proposed landscaping plan
meets or slightly exceeds the City's ordinance requirement.
Member Rice, he said the proposed berm area would be irrigated and be maintained
as grass.
Some grading work is also proposed to improve the sight lines for the
A plan for irrigation and improved
In response to
I
Presentation bv ProDonent
Charles Sedgwick, member of Cross View Lutheran Church, explained that two
meetings had been held with the neighbors.
the initial plan was the south exit which has been eliminated in the modified
plan. The proposed berming meets code requirements for screening and would be
regraded to a 3:l slope for easier maintenance and be irrigated. Mr. Sedgwick
advised that Roger Lillemoe, Dundee Nursery, has drafted the landscaping plan for
the church. Mr. Lillemoe attended the meetings with the neighborhood and has
tried to respond to their concerns by strategically placing large trees in their
sight lines to provide screening.
The neighbors' biggest concern with
Public Comment
Catherine Hapka and Dreip Sapayah, 6323 Timber Trail, pointed out that after the
two meetings with the neighbors two issues remained: 1) traffic, which has been
addressed by elimination of the southerly curb cut, and 2) landscaping plans.
Concerns about the landscaping were berm height, possible installation of islands
in the lot, and scheduling of another meeting by the church to review the plans.
They also pointed out that the affected neighbors have not been advised that the
issue would be on the agenda at this meeting and asked that the Council postpone
their decision to allow them to review the landscaping plan.
In response, Roger Lillemoe, Dundee Nursery, said that he had met with one of the
neighbors, Noah Hurley. Together they surveyed the area from the Hurley's deck
and concluded the location of one tree would help screen the lot from the home.
Mr. Lillemoe stated that he was willing to work with each neighbor individually
regarding placement of the trees.
suggested that the trees be planted below the crest of the berm so that the
fullest part of the tree would do the screening.
slope of the berm, not the height, would be changed for ease in mowing. In
addition, the sight lines for the northerly ingress/egress would be improved.
To insure the greatest amount of screening he
Further, Mr. Lillemoe said the
Council Comment/Action
Mayor Richards asked if the August 26, 1992, letter from Cross View Lutheran
Church, which,mentioned the City Council meeting for Tuesday, September 8, was
mailed to all Timber Trail residents; Mr. Sedgwick confirmed that it was. Mayor
Richards then inquired about the church's future plans and the schedule for the
project if approved. Mr. Sedgwick said the church's five-year growth plan
projects over 1200 members and the City's ordinance requires the church to
provide off street parking.
the weeds.
by laying down asphalt, installing the irrigation and planting of trees.
could begin within ten days after approval and portions of the project could go
OR simultaneously.
Mayor Richards commented that he felt the church has done a diligent job of
communicating with the neighbors. Member Paulus noted that if the'affected
neighbors had read the church's August 26th letter they should have been aware of
this meeting.
If approved, the first thing would be elimination of
Then the berm would be graded and re-shaped. That would be followed
Work
9/8/92
Member Smith then maved adoption of the following resolution:
WHEXEAS, the procedural requirements of Code Section 850 (the Zoning Ordinance)
have been met; and
UHlBEAS, it has been determined that the Findings as required by Code Section 850
have been satisfied;
NOW, THEREFORE, BE IT RESOLVED that the Edina City Council hereby grants a
Conditional Use Permit to Cross View Lutheran Church, 6645 McCauley Trail, for
parking lot expansion.
Motion was seconded by Member Paulus.
214
RESOLUTION GRBNTING CONDITIONAL USE PWMT
I
Rollcall :
Ayes: Kelly, Paulus, Rice, Smith, Richards
Motion carried.
PRELIMINARY PLAT APPROVAL CONTINUED TO 10/05/92 FOR MKRK DALQUIST ADDITION
Presentation bv Planner
Planner Larsen reminded Council that the property proposed for subdivision is
located south of Interlachen Boulevard and west of Schaefer Road with a gross
area of approximately 10.5 acres. Currently, there is a new single family home
under construction in the southwesterly portion of the property. The applicant
has submitted a subdivision request that would create four additional buildable
lots to be accessed by the extension of Harold Woods Lane.
served by a driveway off of Schaefer Road.
The fifth lot is
The proposal was heard by the Council on July 20, 1992, and was referred back to
the Planning Commission.
based on the changed facts of setbacks for the conservation easement adjacent to
the ponds and also the City Attorney’s opinion relative to the definition of lot
width. The Commission again recommended denial of the proposal on a 8 to 2 vote.
Planner Larsen informed Council that about 2:45 P.M. this date staff became aware
through a transmittal from the Minnesota Environmental Quality Board (EQB) that a
petition had been submitted to them with the required 25 or more signatures
requesting an Environmental Assessment Worksheet (EAW) be prepared to consider
environmental impacts of the proposed subdivision. The required process is as
follows: 1) Petition submitted to EQB, 2) EQB designates responsible governmental
unit (RGU), 3) RGU has 30 business days to make determination on need for EAW,
4) City Council may decide to order EXW or reject petition based on written
findings of fact.
only recourse would be district court.
The Commission reconsidered the proposed subdivision
In either case, the decision of the Council is final and the
Planner Larsen advised the Council that hearings on this proposed subdivision
have extended nearly to the 120 day limit set by statute.
made within that period, which would expire before the next Council meeting on
September 21, 1992, the application would be deemed approved. He recommended
continuing the public hearing to either September 21 or October 5 for decision by
the Council on the need for the EXW based on the findings. However, in order for
this to happen, acquiescence from the developer would be necessary to allow
continuation beyond the 120 days.
If a decision is not
Mayor Richards asked Ron Clark, on behalf of the developers, if he would
acquiesce for a continuation and noted that he would not be present on September
21.
Member Rice said he was irritated by the fact that a considerable amount of time
already has been spent on this proposal and further, that because the petition
was received so late today, it was unreasonable to expect that findings could be
prepared for this meeting. Mayor Richards said he was frustrated because some
residents do not seem to have confidence in local government that all the facts
Mr. Clark responded that they would agree to a continuation.
9/8/92
have been presented in this case as evidenced by the petition for an EAW.
said he felt the Council has been sensitive to all the questions that have been
raised regarding the proposed subdivision and asked for public comment.
Public Comment
Betsy Robinson, 5021 Ridge Road, informed the Council that the petition was filed
because the neighbors felt they were not receiving adequate information on
drainage and grading which is a major consideration for that low land and how
much fill may be required for building pads that would conform to the City code.
The information provided has been for building pads that require variances which
would have an affect on the wetlands.
for the proposed subdivision. Ms. Robinson said she had filed the petition with
the state on Friday, September 4, 1992, as she had just learned that this option
existed. Further, she felt staff had been uncooperative in her endeavor to
attain information about the proposed subdivision.
concerned about the proposed subdivision and felt it is being forced upon them.
He
I
Also, a wildlife study has not been done
The neighborhood is very
Ted Pier, 5021 Ridge Road, stated he sensed Council’s anger at the community for
taking a legal avenue to protect their interests and to further assess the impact
this proposal would have on the community. He said he did not understand why the
Schall home under construction would be grandfathered in and questioned why the
access road is not subject to setback requirements when it is a part of the same
subdivision. As a concerned citizen, Mr. Pier said he would support an
evaluation of the impact this construction project would have on the community.
Ann Putnam, 5208 Larada Lane, informed Council they had bought their home during
the drought.
Their back yard has been very wet and their lot is the lowest in their
subdivision.
watertable and result in more water on their lot.
Louis Starita, 604 Blake Road, noted that he had appeared before Council to
request a 75 foot setback for a division on his property. At that time the
Council voted that the 25 foot variance request was not appropriate even though
the Planning Commission had recommended approval. Because he felt that the
Dalquist preliminary plat ‘will be approved, he said it might be perceived that
larger developers get a different kind of consideration over smaller homeowners.
If it were approved, he would be prepared to come back and again ask that his
property be given the same courtesy.
They were not from Minnesota and did not understand wetlands.
She voiced concern that the proposed subdivision could change the
Ed Glickman, 5217 Schaefer Road, felt the full Council should vote on whether the
preliminary plat should be approved.
Ingrid Mantyh, 6413 Interlachen Boulevard, said they were denied a 10 foot
setback variance last year and asked why the rules are not followed.
Council Comment/Action
Member Smith made a motion to continue the hearing on preliminary plat approval
for the Mark Dalquist Addition to September 21, 1992.
second.
Motion failed for lack of
Member Rice made a motion to continue the hearing on preliminary plat approval
for the Mark Dalquist Addition to October 5, 1992, so that findings of fact can
be drafted regarding the need for an environmental assessment worksheet.
was seconded by Member Kelly.
Member Rice asked who would prepare the findings and pay the cost.
Rosland explained that staff would prepare the findings of fact.
costs would be the responsibility of the developer, however, since this is a
Motion
Manager
Normally the
9/8/92
request made by the opponents the City would have to absorb the cost. 216
Ms. Robinson asked for an opinion of whether a stop work order should be issued
on Lot 1.
was issued for that home to be constructed.
building permit was issued at a time when no petition was pending so the permit
is valid.
Mayor Richards said his understanding was that a valid building permit
Attorney Gilligan opined that the
Mayor Richards then called for vote on the motion.
Ayes: Kelly, Paulus, Rice, Smith, Richards
Motion carried.
*LOT DIVISION APPROVED FOR LOTS 17. 18. 19. AND PART OF LOT 20. BLOCK 10,
NORMANDAIX 2ND ADDITION
Member Paulus for adoption of the following resolution:
VHEREBS, the following described property is at present a single tract of land:
Motion was made by Member Kelly and was seconded by
RESOLUTION
Lot 17, Lot 18, Lot 19, and the South 1/2 of Lot 20, Block 10,
NORHANDALE 2ND ADDITION
WHEREAS, the owner has requested the subdivision of said tract into separate
parcels (herein called "Parcels") described as follows:
Lot 17 and the South 35 feet of Lot 18, Block 10, NORHANDALE 2ND ADDITION
and
The northerly 15 feet of Lot 18, all of Lot 19, and the South 25 feet
of Lot 20, Block 10, NORMANDAIX 2ND ADDITION
VHEREBS, it has been determined that compliance vith 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 Code
Sections 810 and 850;
NOU, THEREFORE, it is hereby resolved by the City Council of the City of Edina
that the conveyance and ownership of said Parcels as separate tracts of land is
hereby approved and the requirements and provisions of Code Sections 810 and 850
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
code sections of the City of Edina or with the prior approval of this Council as
may be provided for by those sections.
Motion carried on rollcall vote - four ayes.
*HEBRING DA!CE OF 09/21/92 SET FOR PLANNING MATTER Motion was made by Member
Kelly and was seconded by Member Paulus setting September 21, 1992, as hearing
date for the following Planning matter:
1) Preliminary Rezoning - Planned Residence District PRD-2 to Double Duelling
Unit District R-2 and Preliminary Plat Approval - Vernon Hill Addition
Motion carried on rollcall vote - four ayes.
BROWNDALE BRIDGE FEASIBILITY STUDY AND TRAFFIC ANALYSIS GIVEN
explained that the Browndale traffic review is part of a larger issue.
initially started reviewing the Browndale/Country Club area as part of a
rehabilitation/modification of the Browndale Bridge.
only restricted structure in the City based on weight limits.
Engineer Hoffman
Staff
The bridge is currently the
Staff had started collecting traffic data in the neighborhood this summer to
establish base line conditions.
questioning speed and volumes in the Country Club District. Additionally, a
petition was received from Browndale residents regarding speed and volume.
Engineer Hoffman observed that action taken to date involved the Traffic Safety
Committee recommendation and Council approval of that recommendation as follows:
Residents had noticed this process and began
9/8/92
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1)
2)
3)
4)
5)
Conduct speed surveys with an unmarked police vehicle during morning,
evening and noon rush hour periods,
Conduct same during the period of 4:OO-6:00 P.M. on Sundays,
Incorporate this data with the current study being undertaken, but
specifically cite the rush hour figures,
Contact Edina Public School District and relay concerns of children
crossing Browndale Avenue to get to the bus stop, and
Conduct a sight line survey on Edgebrook Drive to ascertain if parking
should be prohibited on the west side of Browndale Avenue.
I
Staff would continue to collect traffic volume and license survey information in
the Country Club District to identify existing conditions. Additional issues to
be addressed would be:
A.
B.
Evaluate structural and functional adequacy of the bridge,
Develop and evaluate alternative solutions with input from the State
Historical Society, Minnehaha Creek Watershed, Minnesota Department of
Natural Resources, etc.,
Depending upon the input from the agencies above, conduct a traffic
analysis for each possible solution.
Develop a feasibility report for Council review in mid-1993.
C.
D.
The above items would need the assistance of structural and traffic engineers.
Consultant costs could range from $5,000 to $15,000 depending upon the level of
alternative solutions. Funds for the consulting engineer would be from the
capital plan as depicted in the 1992 budget for Browndale Bridge.
anticipated that any improvements to the bridge would be done in 1994-1995.
It is
Staff would complete the above and return with this information to the Traffic
Safety Committee in November.
to consider in November, 1992.
$3,000.
The Council would have a report and recommendation
Initial evaluation costs would be approximately
Member Rice made a motion approving the schedule of activities for the Browndale
Bridge feasibility study with a report back to the Council on November 16, 1992.
Motion was seconded by Member Paulus.
Ayes: Kelly, Paulus, Rice, Smith, Richards
Motion carried.
VACANCY NOTED ON THE EDINA FOUNDATION BOARD
there is a vacancy on The Edina Foundation Board and asked that names of anyone
interested in serving be submitted to him.
Mayor Richards informed Council that
APPOINTMEN!i! MADE TO COMMUNITY EDUCATION SERVICES BOARD Mayor Richards advised
the Council that he intended to appoint Jeannine M. Nayes to the Community
Education Services Board. Member Smith made a motion for consent of the Mayor's
appointment of Jeannine M. Nayes to the Community Education Services Board as a
member-at-large, for a term ending June 30, 1993. Motion was seconded by Member
Rice.
Ayes: Kelly, Paulus, Rice, Smith, Richards
Motion carried.
*HEARING DATE OF 10/19/91 SET FOR FJINE AND BEER LICENSE FEES Motion was made by
Member Kelly and was seconded by Member Paulus setting October 19, 1992, as
hearing date for a proposed increase in wine and beer license fees.
Motion carried on rollcall vote - four ayes.
1993 RECYCLING CONTRACT APPROVED
Recycling Coordinator Chandler on the 1993 Recycling Contract which included 5
cost comparison chart. The Recycling Commission would recommend acceptance of
Manager Rosland submitted a report preparedby
218 9/8/92
-~
the Woodlake proposal to provide city-wide recycling service with the following
terms: 1) three year contract, 2) add mixed mail to the collection in May, 1993,
3) include pickup of household batteries, 4) special drop-off in spring for
telephone books, 5) curbside placement of recyclables, 6) proviso for profit
sharing if the value of materials rises above the current level, and 7) year-end
program review and option to change pickup point.
introduced Kevin Tritz and Craig Seim from Woodlake and Lev Wood, member of the
Recycling Commission. Mr. Tritz commented that over the years there has been a
tremendous increase in the recycling efforts in Edina - from 1600 tons in 1989 to
a projected 4000+ tons in 1992 and that the program speaks for itself.
The Woodlake proposal of August 24, 1992, includes the following options:
#1 Continue the existing program
B Coordinator Chandler
Single family $2.60/unit/month
Multi-unit $2.00/unit/month
Continue existing program and add mixed mail in May, 1993
Single family $2.72/unit/month
Multi-unit $2.10/unit/month
Single family $2.35/unit/month
Multi-unit $2.10/unit/month
#2
#3 Curbside program and add mixed mail in May, 1993
Discussion by the Council Members centered on the issue of curbside pickup versus
garage side pickup of recyclables and the $60,000 cost for garage side pickup. It
was suggested that the Recycling Commission be given the charge to educate both
the residents and the haulers where the containers are to be placed before and
after pickup.
Member Smith made a motion to approve the Woodlake proposal of August 24, 1992,
to provide city-vide recycling service to include Option #2 - Continue existing
program of garage side pickup and add mixed mail in Hay of 1993, and with the
additional proviso that the City could opt to change the collection point at the
end of any year. Member Rice seconded the motion.
Rollcall :
Ayes: Kelly, Paulus, Rice, Smith, Richards
Motion carried.
METROPOLITAN CODNCIL REGIONAL BREAKFAST MEETINGS FOR LOCAL OPPICIBIS NOTED
Manager Rosland advised that an invitation had been received from Mary E.
Anderson, Metropolitan Council Chair, inviting local officials to a breakfast
meeting on either September 23 or 29, 1992.
to talk about regional issues the Metropolitan Council is dealing with and
provides local officials a chance to talk about the impact.
encouraged Council Members to attend one of the meetings.
The meetings provide an opportunity
Manager Rosland
Member Rice raised the issue of response to the Metropolitan Council's "Metro
2015" document.
on September 21.
1993 PROPOSED CITY BUDGET LEVY ADOPTED
September 1, 1992, the Council concluded their review of the 1993 Proposed City
Budget line by line with no formal action taken.
the proposed budget; no comments were heard.
Mayor Richards suggested that this. be discussed by the Council
Mayor Richards recalled that on
He asked for public comment on
Member Paulus said she had a philosophical issue in that the Council had sent a
directive that this budget would not include new, creative programming. At the
September 1, 1992, meeting the Human Relations Commission asked for $2,000 as a
reserve fund to be used for programs that might come up so that they would not
have to come before Council again to acquire funding. Member Paulus said she
9/8/92 .A
' 219
objected to including the request in the budget because it was for no specific
program.
Member Rice voiced concern about the affect on the community with not replacing
the one narcotics officer.
operating without the narcotics officer now and therefore it is difficult to
assess whether there is any increase in drug activity. However, Edina does not
have the indigenous narcotics trafficking environment (e.g. bars, etc.) but
things occur in some of the housing projects and in the commercial areas.
said he would like a narcotics officer but not at the expense of something else.
The Edina Public Schools do have the D.A.R.E. program and are attempting to put
something like that in every grade level.
With no further comments, Mayor Richards called for a motion on the 1993 Proposed
Budget .
Chief Swanson responded that the Police Department is I
He
Member Paulus introduced the following resolution and moved approval:
RESOLUTION ADOPTING PROPOSED BUDGET
FOR THE CITY OF EDINA FOR !l'HE YEAR 1993, AND
ESTABLISHING PROPOSED TAX Lew FOR T'EE YEAR 1993
PAYABLE IN 1993
THE CITY COUNCIL OF THE CITY OF EDINA, Ml3NESOTA, DOES RESOLVE AS FOLTiOWS:
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:
The Budget for the City of Edina for the calendar year 1993 is hereby
TOTAL GENERAL FUND $14,471,815
Estimated receipts other than General Tax Levy are hereby proposed as
TOTAL ESTIMATED RECEIPTS $ 3,146,700
That there is proposed to be levied upon all taxable real and
FOR GE3ERAL FUND $11,325,115
Adopted this 8th day of September, 1992.
ATTEST : Mayor
*d.W%-
City Clerk
Motion for adoption of the resolution was seconded by Member Kelly.
It was the consensus of the Council that the contingency budget be increased from
$60,000 to $62,000 and that the Human Relations Commission budget be ,decreased by
$2,000 accordingly.
On the budget item of $28,000 for AMM and LMC membership dues, it was the
consensus of the Council that those organizations be put on notice that the City
may not renew the memberships, and that a final decision be made upon final
adoption of the 1993 Budget in December. Mayor Richards then called for vote on
the motion.
Rollcall :
Ayes: Kelly, Paulus, Rice, Smith, Richards
Resolution adopted.
PUBLIC HEARING HELD ON PROPOSED ISSUANCE OF REFUNDING BONDS: RESOLUTION ADOPTED
CALLING FOR SALE
the proposed issuance by the City of Edina of General Obligation Recreational
Facility Bonds and various refunding bonds.
Pursuant to due notice given, a public hearing was conducted on
9/8/92 220 . Finance Director Wallin explained that the recreational facility bonds are to
finance the purchase and construction of Normandale Golf Course, the construction
of the new nine holes at Braemar and the recent pool renovation. The bond issues
proposed to be refunded are:
G.O. Tax Increment Bonds, Series 1988
G.O. Tax Increment Bonds, Series 1989
$ 9,425,000
7,800,000 I
G.O. Golf Course Bonds, Series 1985 550,000
G.O. Recreational Facility Bonds, Series 1988 2,295,000
G.O. Recreational Facility Bonds, Series 1989 1,560,000
G.O. Utility Revenue Bonds, Series 1988 1,865,000
G.O. Improvement Bonds, Series 1989 1,045,000
Under Federal tax law, the City may only refund these bonds one time.
advance refundings the City would redeem all of the bonds maturing on or after
their call dates.
Notice of Bond Sale and the Official Statement prepared by the City for
distribution to potential purchasers of the Bonds.
taken into account by the purchaser in determining what to bid for the Bonds.
In these
This redemption provision was clearly stated on the Bonds, the
This redemption provision was
Director Wallin observed that when this matter was first brought to the Council
several weeks ago interest rates were a little better.
buyer's index was at 6.06% to 6.05%.
based on a bond buyer's index of 6.31%.
about 6.24%.
the General Obligation Recreational Facility Bonds and the various refunding
bonds. Director Wallin noted that Fifield, Springsted, Inc., financial advisor
and bond consultant for the City, was present to answer any questions as well as
At that time the bond
The packet information for this meeting was
This week the rates have gone down to
Staff would recommend adopting a resolution calling for the sale of
Attorney Gilligan.
James Phelps, 4611 Tomes Circle, and member of the Alternate Revenue Source
Committee, commented that refunding is a popular thing to do for the same sort of
reason that homeowners are refinancing mortgages.
well-respected firm, capable of giving good advice.
whether rates would go even lower.
He noted that Springsted is a
It is a judgement call
In response to Member Rice as to estimated cost savings and refunding costs,
Director Wallin confirmed that, based upon the index of 6.31%, net savings are
estimated at $1,239,058, with present value savings estimated $808,418. Costs
related to the proposed refunding would include bond consultant fees, bond
counsel fees, Moody's and Standard & Poor's bond rating fees, and underwriter's
discount. Mr. Fifield interjected that estimated total costs would be
approximately $100,000 - $110,000, excluding the underwriter's discount.
He added that two subjective criteria are used to recommend refunding: 1) Minimum
savings of 6% present value of refunded interest expense (the proposed bonds to
be refunded are over lo%), and 2) savings factor as a ratio of cost of issuance.
Mayor Richards asked what would happen if interest rates change so that the
estimated savings are not there.
rejected if the market indicates an unacceptable level.
City's general fund low reserves would affect our bond rating.
answered that the key in the rating strategy is the general fund reserve.
Moody's looks hard at that given the whimsy of the state's fiscal policy.
Typically, Moody's has not treated cities with as heavy a hand as they have
school districts, but they will look at what philosophically the Council has set
as policy for maintaining what they would determine to be reasonable operating
reserves. Attorney Gilligan interjected that if interest rates spiked up, the
intent would be to proceed with the new money issue and cut off the refunding
issues.
Director Wallin said any and all bids can be
Member Rice asked if the
Mr. Fifield
9/5/92
. +‘221
Member Smith introduced the following resolution and moved adoption:
RESOLUTION CBIlLING FOR THE SALE OF GENEBBL
OBLIGATION RECREATIONBL FACILITY BONDS, SERIES 1992A,
GENERAL OBLIGATION TAX INCREMENT REFONDING BONDS, SEBIES 1992B,
GENERBL OBLIGATION RECREATIONBL FACILITY REFONDING BONDS,
SERIES 1992C, GENERAL OBLIGATION UTILITY REVENITE REPUNDING
BONDS, SERIES 1992D, BND GENERBL OBLIGATION
IMPROVEMENT REFTINDING BONDS, SEBIES 19923
BE IT RESOLveD by the City of Edina, Minnesota (the City), as follows:
of the City to issue the following series of bonds of the City (coLlectively, the
Bonds) for the following purposes:
to Minnesota Laws 1961, Chapter 655 and Minnesota Statutes, Chapter 475, to
finance the acquisition and betterment of municipal recreational facilities of
the City.
B. General Obligation Tax Increment Refunding Bonds, Series 1992B,
pursuant to Minnesota Statutes, Chapter 475, to refund the General Obligation Tax
Increment Bonds, Series 1988 of the City, initially dated as of October 1, 1988,
maturing in the years 1997 through 2009, and the General Obligation Tax Increment
Bonds, Series 1989 of the City, initially dated as of April 1, 1989, maturing in
the years 1999 through 2009.
C. General Obligation Recreational Facility Refunding Bonds, Series 1992C,
pursuant to Minnesota Statutes, Chapter 475, to refund the General Obligation Tax
Golf Course Bonds, Series 1985 of the City, initially dated as of September 1,
1985, maturing in the years 1997 through 2000, the General Obligation
Recreational Facility Bonds, Series 1988 of the City, initially dated as of
October 1, 1988, maturing in the years 1999 through 2009, and the General
Obligation Recreational Facility Bonds, Series 1989 of the City, initially dated
as of April I, 1989, maturing in the years 1999 through 2009.
D. General Obligation Utility Revenue Refunding Bonds, Series 1992D,
pursuant to Minnesota Statutes, Chapter 475, to refund the General Obligation
Utility Revenue Bonds, Series 1988 of the City, initially dated as of October 1,
1988, maturing in the years 1995 through 1999.
E. General Obligation Improvement Refunding Bonds, Series 19923, pursuant
to Minnesota Statutes, Chapter 475, to refund the General Obligation Improvement
Bonds, Series 1989 of the City, initially dated as of April 1, 1989, maturing in
the years 1996 through 2001.
consultant to the City, has presented to this Council forms of Terms of Proposal
for each series of Bonds, which are attached hereto and hereby approved and shall
be placed on file with the City Clerk.
Terms of Proposal are hereby adopted as the terms and conditions of the Bonds and
of the sale thereof. Springsted Incorporated, as independent financial advisers,
pursuant to Minnesota Statutes, Section 475.60, Subdivision 2, paragraph (9) is
hereby authorized to solicit bids for each series of Bonds on behalf of the City
on a negotiated basis.
Section 3.
Monday, October 5, 1992, at 7:OO P.B. for the purpose of considering sealed bids
for the purchase of the Bonds, and of taking such action thereon as may be in the
best interests of the City.
Section 1. Purpose. It is hereby determined to be in the best interests
A. General Obligation Recreational Facility Bonds, Series 19921, pursuant
Section 2. Terms of Proposal. Springsted Incorporated, financial
Each and all of the provisions of the
Sale Meeting. This Council shall meet at the City Hall on
ATTEST : 1 Mayor
City Clerk
Motion for adoption of the foregoing resolution was seconded by Member Paulus.
222 9/8/92
Rollcall :
Ayes: Kelly, Paulus, Rice, Smith, Richards
Resolution adopted.
I DATES SET FOR "RUTEi IN TAXATION HEBRINGS Manager Rosland reminded Council that
the City is required to inform Hennepin County of its Truth in Taxation hearing
date(s) by September 15, 1992. Truth in Taxation hearings for all governmental
bodies must be held in the period beginning November 30 and ending on December
21.
14 business days after the first public hearing.
Continued hearings must be held at least five business days but no more than
Following a brief discussion, Member Paulus made a motion setting Monday,
November 30, 1992, at 7:OO P.M. for the Truth in Taxation hearing and December 9,
1992, at 7:OO P.M. as the continued hearing date.
Motion was seconded by Member Smith.
Ayes: Kelly, Paulus, Rice, Smith, Richards
Motion carried.
*CLBIMs PAID Motion vas made by Member Kelly and vas seconded by Hember Paul-
to approve payment of the following claims as shown in detail on the Check
Register dated September 3, 1992, and consisting of 32 pages: General Fund
$471,074.06; Cab;e $6,417.82; Working Capital Fund $12,293.87; Art Center
$8,909.47; Pool $5,307.75; Golf Course $37,759.18; Arena $18,422.58; Gun Range
$340.04; Edinborough/Centennial Lakes $22,892.45; Utilities $310,599.60; Storm
Sever $5,518.87; Liquor Dispensary $65,192.76; Construction fund $1,081.67; TOTAL
$965,810.12; and for confirmation of payment of the following claims as shown in
detail on the Check Register dated August 14, 1992, and consisting of 15 pages:
General Fund $170,416.68; Pool $58,339.50; Golf Course $7,000.00; Utilities
$281.67; Liquor Dispensary $272,309.26; TOTAL $508,347.11.
Motion carried on rollcall vote - four ayes.
There being no further business on the Council Agenda, Mayor Richards declared
the meeting adjourned at 9:50 P.M.
..
City Clerk