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HomeMy WebLinkAbout19960102_regularMINUTES OF THE REGULAR MEETING OF THE EDINA CITY COUNCIL HELD AT CITY HALL JANUARY 2,1996 I ROLLCALL Answering rollcall were Members Maetzold, Smith and Mayor Richards. CONSENT AGENDA ITEMS APPROVED Motion made by Member Smith and seconded by Member Maetzold adopting the Council Consent Agenda as presented. Rollcall: Ayes: Maetzold, Smith, Richards Motion carried. *MINUTES OF REGULAR MEETING OF DECEMBER 19, 1995 AND YEAR END MEETING OF DECEMBER 28,1995 APPROVED Motion made by Member Smith and seconded by Member Maetzold approving the Minutes of the Regular Meeting of December 19, 1995, and the Year End Meeting of December 28,1995. Motion carried on rollcall vote - three ayes. ORDINANCE NO. 1995-13 - AN ORDINANCE CREATING NEW CODE SECTION 740 REQUIRING LICENSING AND ANNUAL INSPECTIONS OF UNDERGROUND PARKING GARAGES OF MULTIPLE RESIDENTIAL BUILDINGS CONTINUED TO REGULAR MEETING OF FEBRUARY 20, 1996 Sanitarian Velde briefly reviewed Ordinance 1995-1 3’s purpose and scope. The proposed ordinance requires owners of multiple residential buildings with underground parking garages to annually purchase licenses and be inspected. The ordinance sets standards for maximum allowable carbon monoxide levels in living spaces and procedures for enforcement if violations occur. For more than twenty years the Edina Health Department has been providing this service and the Department has no intention of stopping. With adoption of the ordinance the City could partially recover the Health Department‘s costs. Sanitarian Velde stated that at the December 19, 1995 meeting Council granted the ordinance first reading. In addition, on December 12, 1995, the Health Department sent notices to 113 owners and managers of multiple residential buildings informing them that Council was considering the proposed ordinance. Sanitarian Velde reported that three or four owners called questioning the proposed ordinance. Public Comment Norm Bjomnes, 700 Weston Circle, owner of three buildings: Vemon Oaks at 5400 Vemon and the Lincoln Apartments at 5200 and 5240 Lincoln. Mr. Bjornnes presented a letter requesting that the Council reject the ordinance. He thinks there is no compelling public purpose for the ordinance citing there has been only five instances of carbon monoxide problems in the past two years. Mr. Bjomnes felt that the City should deal with these few “problem” owners and the remaining owners should not have to pay. Mr. Bjornnes stated that the funding of the proposed ordinance is unfair because Edina already taxes multiple residential owners at a higher rate. Mr. Bjornnes asked that Council appoint a committee and give it 120 days to study the issue and find alternatives to licensing. John Rocheford, Rockford, Inc., 4100 West 50th Street. Mr. Rocheford agreed with Mr. Bjornnes’ comments. He stated that he has had discussions with Mr. Velde regarding this issue and asked that an alternative to licensing be looked at. Mr. Rocheford stated he owns approximately 20 percent of the City’s 113 units with underground garages. Mr. Rocheford expressed concern that all owners pay for a few problem owners. Perhaps the City should address the ordinance but without the licensing provision. Carl Hanson, representing Harvey Hanson and Doug and Roy Olson, owners of Braemar Oaks Apartments, 7160 Cahill Road. Mr. Hanson informed the Council that they support Mr. Bjornnes’ position completely. Art Lowell owns two small ten-unit apartments on Parklawn Avenue both with underground garages. Mr. Lowell supports tenant safety, but expressed concern with one fee for all size units. He requested the City develop a tiered fee schedule. MinuteslEdina City Council 01/02/96 Peny Hanson, representing NHP, managers of Yorktown Plaza Apartments stated complete support of Mr. Bjornnes' position. Council CommentlDiscussion Mayor Richards asked the owners present if any of them currently test their buildings. Mr. Rocheford responded that they do not test, but make sure their equipment is working properly. In addition, the Edina Health Department periodically tests because Mr. Rocheford has seen test results over the years. Mayor Richards stated that Edina typically charges persons who benefit from services. He noted that Edina charges fees to users of the City's ambulance, and property owners with "false* alarms pay for their alarms. Mayor Richards added that if the City conducts inspections all taxpayers should not be sharing in that cost. Property owners could test their buildings annually using an agency approved by the Health Department and submit results. Inspections have been going on for years perhaps its time for the persons benefitting from these services to pay for them. The Council viewed a slide presentation in December showing deteriorated ventilation systems in some existing Edina properties. We expect single family homeowners to look after their own property, however, in apartments tenants expect owners to look after the property. The proposed licensing program will help the City ensure property owners complete proper maintenance. Mr. Bjomnes asked if there currently is an ongoing inspection system. Sanitarian Velde responded that the Health Department inspects approximately 75% of the properties annually. Member Smith commented that the State Uniform Building Code requires ventilation in underground garages. Multiple family residences have many people depending upon owners for proper maintenance. The slides presented in December showed that sealants from twenty years ago were failing. If the City had not been in checking for carbon monoxide levels, these conditions could cause problems. People rely on the City to guarantee necessary maintenance is done for their health and safety. Member Smith stated it appears we can review some alternatives regarding fees and procedures. Member Maetzold stated his belief that carbon monoxide is definitely a health and safety concern and the City must eliminate these risks to apartment dwellers. Since the inspections have been ongoing for twenty years, formalizing the process with reasonable fees charged to users of the service seems appropriate. Mayor Richards suggested continuing second reading of this ordinance allowing the review of the alternatives suggested. In addition direct Sanitarian Velde to contact the owners soliciting their viewpoints on methods of regulation either through private testing or licensing by the City. Member Smith moved continuing second reading of Ordinance No. 1995-13 until February 20,1996, and directing Sanitarian Velde to contact property owners and report findings. Member Maetzold seconded the motion. Ayes: Maetzold, Smith, Richards Motion camed. "BID AWARDED FOR ENGINEERING PURCHASE OF COMPUTER HARDWARE Motion made by Member Smith and seconded by Member Maetzold awarding the bid for the Engineering Department computer hardware to the recommended low bidder, AmeriData at $5,837.00 plus tax. Motion camed on rollcall vote - three ayes. DATE FOR PARK REFERENDA SET FOR MAY 7,1996 DISCUSSION OF SENIOR CENTER PROPOSAL CONTINUED TO FEBRUARY 5,1996 Mayor Richards said that one reason the Park Referenda was on the agenda was to allow all five Council Members to discuss the Referenda. The Council briefly discussed the referenda's timing, community response from the Park Department's meetings, the dollar amount of the referenda and the Senior Citizens' request for a free standing center. Page 2 MinuteslEdina City Council 01/02/96 Manager Rosland noted that staff is requesting direction on two issues of the referenda: setting the date and the total referenda amount to be voted on. Manager Rosland requested Council set the referenda’s date, but wait until a future meeting to discuss the amount of the referenda and the Senior Center. Mayor Richards directed staff to place the Park Referenda on the February 5, 1996 Council agenda allowing development of additional information regarding the referenda dollar amount and the senior center proposal. Motion by Member Smith, seconded by Member Maetzold setting the date of May 7,1996 for the Park Referenda. Ayes: Maetzold, Smith, Richards Motion camed. *RESOLUTION ADOPTED DESIGNATING DIRECTOWALTERNATE FOR SUBURBAN RATE AUTHORITY Member Smith introduced the following resolution seconded by Member Maetzold and moved adoption: RESOLUTION DESIGNATING DIRECTOR AND ALTERNATE DIRECTOR TO SUBURBAN RATE AUTHORITY BE IT RESOLVED by the City Council of the City of Edina, Minnesota as follows: John C. Wallin is hereby designated to serve as a Director of the Suburban Rate Authority, and Eric R. Anderson is hereby designated to serve as Alternate Director of the Suburban Rate Authority for the year 1996 and until their successors are appointed. Adopted this 2nd day of January 1996. Motion carried on rollcall vote - three ayes. *RESOLUTION DESIGNATING DlRECTORlALTERNATE DIRECTOR OF LOGIS Member Smith introduced the following resolution, seconded by Member Maetzold and moved adoption: RESOLUTION DESIGNATING DIRECTOR AND ALTERNATE DIRECTOR TO LOGIS BE IT RESOLVED by the City Council of the City of Edina, Minnesota as follows: John C. Wallin is hereby designated as a Director of LOGIS and Kenneth E. Rosland is hereby designated as Alternate Director of LOGIS for the year 1996 and until their successors are appointed. Adopted this 2nd day of January 1996. Motion carried on rollcall vote - three ayes. *RESOLUTION DESIGNATING OFFICIAL NEWSPAPER Motion made by Member Smith and seconded by Member Maetzold for adoption of the following resolution: RESOLUTION DESIGNATING OFFICIAL NEWSPAPER BE IT RESOLVED by the Edina City Council that the Edina Sun-Current be and is hereby designated Motion carried on rollcall vote - three ayes. as the Official Newspaper for the City of Edina for the year 1996. *SIGNATORY RESOLUTION ADOPTED Motion made by Member Smith and seconded by Member Maetzold for adoption of the following resolution: SIGNATORY RESOLUTION BE IT RESOLVED by the Edina City Council that the persons holding office as Mayor, Manager and Treasurer of the City of Edina, be, and they hereby are authorized to act for this municipality in the transaction of any banking business with First Bank National Association, Americana State Bank of Edina, Fidelity Bank, Norwest Bank Minnesota NA, Richfield Bank and Trust, Co. and National City BanWSouthdale Office (hereinafter referred to as the “Bank”) from time to time and until written notice to any Bank to the contrary, to sign checks against said accounts, which checks will be signed by the Page 3 MinuteslEdina City Council 01/02/96 Mayor, Manager and City Treasurer. Each Bank is hereby authorized and directed to honor and pay any checks against such accounts if signed as above described, whether or not said check is payable to the order of, or deposited to the credit of, any officer or officers of the City, including the signer or signers of the check. *RESOLUTION AUTHORIZING FACSIMILE SIGNATURES Motion made by Member Smith and seconded by Member Maetzold for adoption of the following resolution: RESOLUTION AUTHORIZING THE USE OF FACSIMILE SIGNATURES BY PUBLIC OFFICIALS Motion carried on rollcall vote - three ayes. BE IT RESOLVED by the Edina City Council that the use of facsimile signatures by the following named persons: FREDERICK S. RICHARDS - Mayor KENNETH E. ROSLAND JOHN WALLIN - Treasurer - City Manager on checks, drafts, warrants, warrant-checks, vouchers or other orders of public funds deposited in First Bank National Association, Americana State Bank of Edina, Fidelity Bank, Norwest Bank Minnesota NA, Richfield Bank and Trust, Co. and National City BanWSouthdale Office, be and hereby is approved, and that each of said persons may authorize said depository banks to honor any such instrument bearing his facsimile signature in such form as he may designate and to charge the same to the account in said depository bank upon which drawn as fully as though it bore his manually written signature and that instruments so honored shall be wholly operative and binding in favor of said depository bank although such facsimile signature shall have been affixed without his authority. Motion carried on rollcall vote - three ayes. I *RESOLUTION ADOPTED DESIGNATING DEPOSITORIES FOR PUBLIC FUNDS OF THE CITY Motion made by Member Smith and seconded by Member Maetzold for adoption of the following resolution: RESOLUTION DESIGNATING DEPOSITORIES BE IT RESOLVED by the Edina City Council that the First Bank National Association, Americana State Bank of Edina, Fidelity Bank, Norwest Bank Minnesota NA, and Richfield Bank and Trust, Co., authorized to do banking business in Minnesota, be and hereby are designated as Official Depositories for the Public Funds of the City of Edina, Counfy of Hennepin, Minnesota, until January 1, 1997. Motion carried on rollcall vote - three ayes. RESOLUTION DESIGNATING NATIONAL CITY BANWSOUTHDALE AS OFFICIAL DEPOSITORY CONTINUED TO MEETING OF JANUARY 16,1996 Mayor Richards recommended continuing the adoption of the resolution designating National City BanklSouthdale as an official depository for City funds to the meeting of January 16, 1996 when a full complement of Council members would be present. RESOLUTION ADOPTED UPDATING CITY SPECIAL ASSESSMENT DEFERMENT POLICY Assistant Manager Hughes explained that in 1977, the City Council adopted a Special Assessment Deferment Policy pursuant to State Law. This policy permitted homeowners, age 65 and older, to defer special assessments if the homeowner met a two-part test: first that the homeowner's total household income could not exceed $1 5,000 annually, and secondly, the special assessment's first annual installment, either alone or when combined with other special assessments, exceeded 2% of the total household income. The period of deferment is indefinite, but according to law terminates: Upon the death of the owner, Upon the sale or transfer of the property, Upon the loss of the homestead status of the property, or Whenever the City determines that a hardship no longer exists. I. 2. 3. 4. Page 4 .. .’. <.’7.., Minutes/Edina City Council 01/02/96 Assistant Manager Hughes stated that the City has not updated the deferment policy since its adoption in 1977. In particular, the City has not increased the $15,000 income limit therefore, fewer individuals qualify for the deferment. After reviewing the intent of the policy, staff determined that a fixed income limit could be eliminated, while retaining the criteria that only assessments exceeding 2% of an individual’s total household income are eligible for deferment. This ‘‘2%” criterion effectively restricts homeowners that can qualify for the deferment. The proposed amendment to the deferment policy eliminates the fixed income requirement and incorporates other technical modifications to the policy. Staff recommended adoption of the updated policy. Member Maetzold introduced the following resolution and moved its adoption: RESOLUTION WHEREAS, by Minnesota Statutes, Sections 435.193 through 435.195, the City is authorized and empowered to defer the payment of special assessments against homestead property owned by a person 65 years of age or older or retired by virtue of a permanent and total disability for whom payment of such special assessment would be a hardship; and WHEREAS, the City Council of the City of Edina deems it desirable and in the best interests of the City of Edina and its citizens to implement such authority and power by establishing standards, guidelines and procedures for the granting and processing of such deferments; NOW, THEREFORE BE IT RESOLVED, that the following standards, guidelines and procedures are hereby established and adopted: ELIGIBILITY STANDARDS The applicant must be 65 years of age or older or retired by virtue of a permanent and total disability, and The applicant must own the property for which deferment is requested, either alone or in joint tenancy with a spouse who also lives with the applicant in the same property, but who need not be 65 years of age or older or permanently and totally disabled, and The property for which deferment is requested must be classified and taxed as homestead property by the City Assessor as of the date the application for deferment is made, and The first year‘s installment of the proposed special assessment must, either alone or in the aggregate with installments of other special assessments due against the property and payable in the first year of the proposed assessment, total more than two percent of the applicant’s total household income as defined by Minnesota Statutes, Chapter 290A. INTEREST RATE Any special assessment deferred pursuant to this policy shall bear interest at the rate of one(1) percentage point in excess of the rate of interest charged on the special assessment had it not been deferred, but not, however, in excess of the maximum rate permitted by law. PROCEDURES The applicant for deferment must file a completed application and affidavit with the City Assessor prior to the day the City is required to certify the first year‘s installment of the special assessment to Hennepin County for collection with the following year‘s taxes. All applications for deferment shall be made on forms prepared and supplied by Hennepin County and the City of Edina. The City Assessor shall include in any and all mailed notices of public hearings with respect to special assessments, a statement explaining the deferment policy hereby adopted. The City Assessor shall transmit all deferments granted pursuant to this policy to the Hennepin County Auditor for recording with the Office of the County Recorder, Hennepin County, Minnesota, so as to give notice of such deferment to all future owners and encumbrancers of the property for which a deferment has been granted. 0 Page 5 MinuteslEdina City Council 01102196 BE IT FURTHER RESOLVED, that the City Council shall not be prohibited from determining that a hardship exists, and that a deferment should be granted on the above terms and Conditions, even if the eligibility requirements are not met by an applicant, provided that the Council finds that: There are exceptional and unusual circumstances not covered by the foregoing standards and guidelines, and If granted, the deferment will have been made in a nondiscriminatory manner, and The granting of the deferment will not give the applicant an unreasonable preference over other applicants. 0 0 BE IT FURTHER RESOLVED, that failure of the City to give notice pursuant to this policy or the granting or denial of any deferment shall not invalidate any special assessment otherwise made and levied by the City of Edina pursuant to applicable statutory requirements. Member Smith seconded the motion. Rollcall: Ayes: Maetzold, Smith, Richards Resolution adopted. RESOLUTION CALLING FOR SALE OF TAXABLE GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS - SERIES 1996A Assistant Manager Hughes explained at the November 20,1995, meeting, the City Council authorized staff to proceed with steps necessary for refunding the 1988 and 1989 General Obligation Taxable Bonds used for the Centennial Lakes project. Staff worked with Springsted, Inc., and prepared a resolution and Terms of Proposal. Staff recommends the Council adopt the resolution setting a sale date of February5,1996. Assistant Manager Hughes introduced Dan O’Neil from Springsted, Inc. Member Maetzold inquired where the funds would be invested. Dan O’Neil, Springsted, Inc., explained the funds are placed in an escrow account waiting for a 1997 call. Member Maetzold asked if the negative arbitrage is recorded against the City‘s reserves. Attorney Gilligan noted that the negative arbitrage is reflected with a higher outstanding indebtedness. Member Smith introduced the following resolution and moved adoption: RESOLUTION CALLING FOR THE SALE OF TAXABLE GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS -SERIES 1996A BE IT RESOLVED by the City of Edina, Minnesota (the City), as follows: Section 1. Purpose. The City presently has outstanding its General Obligation Taxable Tax Increment Bonds, Series 1988, dated as of October I, 1988, and 1989. To refund a portion of such tax increment bonds it is hereby determined to be in the best interest of the City to issue its Taxable General Obligation Tax Increment Refunding Bonds, Series 1996A (the Bonds), pursuant to Minnesota Statutes, Chapter 475 and Section 469.178. Section 2. Terms of Proposal. Springsted Incorporated, financial consultant to the City, has presented to this Council a form of Terms of Proposal for sale of the Bonds, which is attached hereto and hereby approved and shall be placed on file with the City Clerk. Each and all of the provisions of the Terms of Proposal are hereby adopted as the terms and conditions of the Bonds and of the sale thereof. Springsted Incorporated is hereby authorized to solicit bids for the Bonds on behalf of the City on a negotiated basis. Section 3. Sale Meeting. This Council shall meet at the City Hall on Monday, February 5, 1996 at 7:OO P.M., for the purpose of considering sealed proposals for the purchase of the Bonds, and of taking such action thereon as may be in the best interests of the City. Page 6 MinuteslEdina Citv Council 01/02/96 Motion for adoption of the foregoing resolution seconded by Member Maetzold. Rollcall: Ayes: Maetzold, Smith, Richards I Resolution adopted. CLAIMS PAID Member Smith made a motion to approve payment of the following claims as shown in detail on the Check Register dated December 28,1995, and consisting of three pages: General Fund $1 8,197.25; C.D.B.G. $3,275.00; Communications $108.55; Working Capital $779.67; Art Center $4,131.79; Golf Course Fund $2,218.44; EdinboroughlCentennial Lakes $1,111.19; Utility Fund $3,702.27; Liquor Dispensary Fund $54.58; TOTAL $33,578.74. Motion seconded by Member Maetzold. Rollcall: Ayes: Maetzold, Smith, Richards Motion carried. There being no further business on the Council Agenda, Mayor Richards declared the meeting adjourned at 755 P.M. Page 7