HomeMy WebLinkAbout19970804_regularMINUTES
OF THE REGULAR MEETING OF THE
EDINA HOUSING AND REDEVELOPMENT AUTHORITY
HELD AT CITY HALL
AUGUST 4,1997 - 7:OO P.M.
ROLLCALL Answering rollcall were Member Faust, Hovland, Maetzold and Mayor Smith. Member
Kelly entered the meeting at 7:08 P.M.
CONSENT AGENDA ITEMS APPROVED Motion made by Member Hovland seconded by
Member Maetzold to approve and adopt the Consent Agenda as presented.
Rollcall:
Ayes: Faust, Hovland, Maetzold, Smith
Motion carried.
*MINUTES OF THE REGULAR MEETING OF Julv 21. 1997. APPROVED Motion made by
Member Hovland and seconded by Member Maetzold approving the Minutes of the Regular
Meeting of July 21,1997.
Motion carried on rollcall vote - four ayes.
RESOLUTION OF APPRECIATION PRESENTED TO CAPTAIN WILLIAM HANSEN Mayor Smith
presented a Resolution of Appreciation to Captain William Hansen retired firefighter for 42 years of
commitment, dedication and responsibility to the Edina Fire Department.
*FINAL DEVELOPMENT PLAN FOR 391 7-3929 WEST 50TH STREET (EDINA PROPERTIES)
CONTINUED TO AUGUST 18, 1997 Motion made by Member Hovland and seconded by
Member Maetzold to continue to August 18, 1997, the final development plan for 3917-3929
West 50th Street, Edina Properties.
Motion carried on rollcall vote - four ayes.
FIRST READING GRANTED FOR ORDINANCE NO 1997-5 AN ORDINANCE AMENDING SECTION
815. ANTENNAS AND TOWERS Affidavits of Notice were presented, approved, and ordered placed on
file.
Planner Larsen noted the City Council has considered the subject ordinance a number of times, the last
time being May 5, 1997. After reviewing the draft and receiving comments from PCS and cellular
providers, the Council decided to conduct a workshop for the purpose of gathering technical information.
On June 23, 1997, the City Council conducted this workshop facilitated by Jeffrey Nelson of WW
Montgomery and Associates, a telecommunications consulting firm.
Planner Larsen outlined the revisions to draft Ordinance No. 1997-5:
0 Subdivision 6 of Subsection 815.05 has been revised to allow cat walks, crow's nests and
similar structures that are necessary for the maintenance of antennas.
0 A definition of commercial use antenna or tower has been provided.
0 Subdivision 1 of Subsection 815.06 has been modified requiring antenna setbacks to be the
same as accessory building setbacks rather than principal building setbacks.
0 Section 815.1 I has been revised slightly to describe the process the Board of Appeals must
use to consider modifications from the requirements of the Section.
Planner Larsen pointed out that the Board of Appeals would be considering modifications from the
requirements of Section 815 rather than granting variances. He added that Staff is also proposing
adoption of Ordinance No. 1997-11 providing additional powers and duties of the Zoning Board of
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MinuteslEdina City CouncillAuaust 4.1997
Appeals giving it powers to review request for modifications from the requirements of the Antenna
Ordinance after the Planning Commission reviews it as required by Code.
Public Comment
Peter Beck, representing ATT,
existing sites in Edina including
noted ATT is an existing provider of cellular service and has many
the Pentagon Park Penthouse and the facade of the Durham. Mr. Beck
stated the following concerns regarding the ordinance:
0 The ordinance as drafted will mean more poles because 75 feet is a minimum height for
antennas. They must get over the trees in order to work effectively. This is a greater concern
with PCS service than with cellular service.
0 Setbacks of four or six times the tower heights make it difficult to find cell sites
1,000 foot separation of towers severely limits tower location.
Setback location will end up putting the poles into the middle of the lots
Mr. Beck acknowledged he has addressed these issued many times with staff. He stated if these
issues are not resolved providers will not able to continue to provide service.
Tom Alexander representing APT, voiced concern regarding the 75 foot tower height and difficulties
caused by the setbacks of four and six times the tower height. Mr. Alexander requested the City map
potential locations.
Dave Hogen, Sprint PCS, stated he appreciated the time staff has spent working on the ordinance, but
Sprint has the same concerns as previously stated by Mr. Beck and Mr. Alexander.
I Mayor Smith suggested the providers help in diagramming potential sites for towers. Member Maetzold
suggested Council grant First Reading, but he would like to see something brought back covering
facade mounted antennas.
Mayor Smith asked the reasons the ordinance was written in its current form. Planner Larsen
responded the ordinance was written to attempt to provide the maximum protection to residential
property.
Member Maetzold made a motion to grant first reading to Ordinance No. 1997-5 amending
Section 815 Antennas and Towers of the Edina Code of Ordinances. Member Faust seconded the
motion.
Rollcall:
Ayes: Faust, Hovland, Kelly, Maetzold, Smith
First Reading granted.
ORDINANCE NO 1997-11. AN ORDINANCE AMENDING SECTION 850 . PROVIDING
ADDITIONAL POWERS AND DUTIES OF THE ZONING BOARD OF APPEALS REVIEWED AND
REFERRED TO PLANNING COMMISSION Mayor Smith noted the Council reviewed this portion of
the antenna ordinance and directed Ordinance 1997-1 I be referred to the Planning Commission for
review as mandated by the City’s Zoning Ordinance.
FIRST READING GRANTED FOR ORDINANCE NO. 1997-9. AN ORDINANCE REPEALING
SECTION 420 - EXCAVATION AND ENACTING SECTION 421 - RIGHTS-OF-WAY I MANAGEMENT Assistant Manager Hughes noted the Council reviewed a draft of the proposed
Ordinance 1997-9 repealing Section 420 and enacting Section 421 Rights-of-way Management, July
21 , 1997. Staff met with representatives of NSP, Minnegasco, USWest, KMC Telecom and Paragon.
Staff has reviewed their comments and recommendations concerning the proposed ordinance and
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MinuteslEdina Citv CouncillAuaust 4.1997
presented the new draft ordinance to Council redlined to show new and deleted language as
compared to the original draft.
Staff recommended Council grant First Reading to' this Ordinance. Additional comments and I recommendations will be forthcoming and will be presented at the August 18, 1997, regular meeting.
Mayor Smith noted correspondence dated August 1, 1997, had been received from Richard Pilon,
Senior Administration EngineedPermit Engineer with Minnegasco.
Member Kelly made a motion granting First Reading to Ordinance No. 1997-9, An Ordinance
Repealing Section 420, Excavations and Enacting Section 421, Rights-of-way Ordinance.
Member Hovland seconded the motion.
Rollcall:
Ayes: Faust, Hovland, Kelly, Maetzold, Smith
First Reading granted.
FIRST READING GRANTED FOR ORDINANCE NO 1997-10. AN ORDINANCE AMENDING
SECTION 185 PROVIDING NEW AND REVISED FEES FOR RIGHTS-OF-WAY MANAGEMENT
Assistant Manager Hughes explained Ordinance No. 1997-10 provides for new and revised fees and
charges with respect to management of City rights-of way.
Recently enacted telecommunications right-of-way legislation (Minnesota Sessions Laws 1997,
Chapter 123) restricts the types of fees which may be imposed upon telecommunication right-of-way
users. The law provides that fees must be 1) based upon the actual cost incurred by the City in
managing the right-of-way, 2) based upon an allocation among all users of the right-of-way which
shall reflect, proportionate costs, 3) imposed on a competitively neutral basis, and 4) imposed in a
manner so that above ground users of rights-of-way do not bear costs incurred to regulate
underground users of rights-of-way. Chapter 123 also provides that the City costs that may be
recovered are those associated with registering applicants, issuing, processing and verifying permit
applications, inspections, maintaining or moving user equipment during right-of-way work,
determining the adequacy of restoration, restoring work inadequately performed, and revoking right-
of-way permits.
Based upon Chapter 123, staff estimated the costs associated with City rights-of-way management.
According to itemized estimates, categories were established according to: 1 ) registration costs; 2)
costs to issue permits and inspect work, and 3) costs to maintain our GIS system. Assistant Manager
Hughes said based upon an estimated cost, the proposed fees were included in Ordinance No. 1997-
9. These fees were developed based upon our right-of-way permit applications processed during the
last two years. During years, the City issued slightly more than 250 permits and an estimated 20,000
lineal feet of underground utility extensions were installed. In 1996, fees derived from these permits
totaled approximately $7,000. Under the proposed fee structure, staff estimates the same number of
permits and utility extensions will result in over $30,000 in annual fees. The actual amount will vary
from year-to-year depending upon the number of permits issued and the extent of utility installations.
Based upon these estimates, staff believes that the proposed Ordinance will result in fees which are
commensurate with costs. Staff recommends the Council re-evaluates this fee schedule annually to
determine if fees continue to be commensurate with costs.
One of the right-of-way users, Paragon Cable, is required to pay a franchise fee to the City pursuant
to their franchise agreement. Although franchise agreements with Minnegasco and NSP allow for
franchise fees, the City has not imposed such fees to date. The franchise fee paid by Paragon is
based upon their use of our right-of way and a reimbursement of the City's costs associated with their
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MinuteslEdina City CouncillAuaust 4.1997
use. Staff does not recommend Paragon or any other right-of-way user that pays a franchise fee
should be required to pay additional fees pursuant to this Ordinance.
As with the Right-of-way Management Ordinance, a copy of the proposed Fee Ordinance was
distributed to the existing utilities as well as KMC Telecom and OCI. Staff recommends First Reading.
Public Comment
Stuart Fraser NSP Community Service Manager, thanked staff for the opportunity to work on the
model ordinance with City staff. With few minor changes NSP feels the Ordinance will work well and
feels comfortable with it.
George Blackwell, USWest, said USWest has enjoyed a solid working relationship with the City and
wishes for it to continue. Upon receiving the draft Ordinance at a late hour, USWest asked if they
might have additional time to prepare comments relative to the document. Mr. Blackwell noted a
Statute is in place relating to a task force who will respond to the Public Utilities Commission with
their recommendation regarding: I) degradation costs, 2) state wide standards and 3) high-density
corridors, relating more to the downtown area. USWest, historically has been opposed to paying
franchise or user fees but the proposed fees do not reflect this. Mr. Blackwell asked if the fee
structure could be examined after one year to see if the fees remain equitable.
AI Swintek, Minnegasco, told the Council that 14,000 customers are served by Minnegasco in Edina
and they will pay $368,000 in personal property taxes in 1997. He concurred that a good, workable
right-of-way management policy takes time and is pleased that they were part of the process. Mr.
Swintek concluded that Minnegasco feels comfortable with the Ordinance and appreciate being
recognized as a franchised utility within the Ordinance.
Mayor Smith reminded Council the purpose of charging fees for the management of rights-of way is
not to make money, only to cover costs. I
Member Faust made a motion granting First Reading to Ordinance No. 1997-10, an Ordinance
Amending Section 185 of the City Code to Provide New and Revised Fees for the Management
of City Rights-of-way. Member Maetzold seconded the motion.
Rollcall:
Ayes: Faust, Hovland, Kelly, Maetzold, Smith
First Reading granted.
*BID AWARDED FOR PLAYER STRUCTURES FOR COURTNEY FIELD BALLFIELDS AT
BRAEMAR PARK CONTRACT NO. 97-IIPK Motion made by Member Hovland and seconded
by Member Maetzold for award of bid for Courtney Field player structures in Braemar Park
ballfields, I, 2, and 3, Contract No. 97-11PK, to sole bidder, Earl Weikle & Sons, at $61,534.00.
Motion carried on rollcall vote- four ayes.
*BID AWARDED FOR IRRIGATION SYSTEM AT PAMELA PARK Motion made by Member
Hovland and seconded by Member Maetzold for award of bid for an irrigation system at
Pamela Park to recommended low bidder, Miley’s Sprinkler Systems at $15,999.72.
Motion carried on rollcall vote - four ayes.
*BID AWARDED FOR POLICE DEPARTMENT 127 db OUTDOOR WARNING SIREN. POLE AND
INSTALLATION Motion made by Member Hovland and seconded by Member Maetzold for
award of bid for Police Department 127 db outdoor warning siren, pole and installation to
recommended low bidder, Killmer Electrical Company at $1 5,806.00.
Motion carried on rollcall vote - four ayes.
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MinuteslEdina Citv CouncillAuaust 4.1997 1.
a.
JULY 22. 1997. STORM UPDATE PRESENTED Mayor Smith noted several residents had been
affected by the heavy rains experienced from late June through July, especially July 22, 1997. He
invited those persons to address their concerns to the Council, explaining that after all the. citizens
had a chance to be heard, City staff would present an assessment of the situation and the Council
would discuss options.
I
Public Comment
Carrie Pappas, 4521 Tower Street, had sewage back up into her home. Ms. Pappas asked how many
systems backed up and if there was an ordinance requiring sump pumps to be pumped into the yard.
Ms. Pappas did not live here in 1987 and was assured her home was not in danger. When she called
the City and asked what to do she was told to install a shut off valve. Ms. Pappas believes the City
should pay for installation of a shut off valve to affected homes.
Joan Niemark, 4517 Tower Street, presented pictures depicting sewage that came in through the
basement toilet. Ms. Niemark felt the City should have been more forthcoming in disclosing health
risks. Her home has gone from a finished to an unfinished basement. Ms. Niemark's insurance had a
$5,000.00 cap. Installation of a sewer shut off valve would cost approximately $1,500.00. If everyone
on the street installed a shut off valve where would the sewage go. Is installing such a valve adequate
protection.
Carol Niemers, 4508 Millers Lane, expressed concern over the value of her home. She stated many
citizens now live in a fearful, uncomfortable situation. Ms. Niemers wants a time table from the City
with how they intend to address this situation. She stated neighbors felt paranoid regarding the high
water level on the north side of Lake Cornelia. Ms. Niemers thanked the clean up crews for their
assistance.
Polly Prendergast, 6321 Ashcroft Lane, thanked City staff who helped pump out her home and
Assistant to the City Manager Smith for dealing with Ms. Prendergast with great courtesy. Ms.
Pendergast bought her home one year ago and the former owner did not disclose any event of
previous water problems. Ms. Prendergast did not have sewer backup insurance. She believes the
City should pay for the installation of any sewer shut off valves.
Namas Sahar, 6336 St. Johns Avenue, has lived in his home for 17 or 18 years. He lived through the
1987 storm and estimated his damage was approximately $54,000.00. Mr. Sahar stated it took eight
years to redo the first floor of his home. He did have insurance, but it had a $5,000.00 cap and did not
cover his furnace, washer, dryer or freezer. Mr. Sahar expressed concern regarding the health issue
of sewer backing up into homes. Hiring professionals to clean up could have cost about $15,000, so
Mr. Sahar did the clean up himself.
Zika Srejovic, 18 Wooodland Road, has lived for fourteen years in the same house. In 1987 his home
was flooded and again now he had four feet of sewage in his basement. Mr. Srejovic estimated his
damage to be $90,000.00. He does not believe that sump pumps could cause the extreme problems
suffered by himself and neighbors. Mr. Srejovic believes Edina has an old sewer system that must be
corrected. He expressed concern regarding the value of his home.
Mary Hadadd, 4501 Tower Street, stated she agrees with the concerns expressed by previous
speakers. She added neighbors has heard several rumors and would like the City to report the truth.
Marcia Dreis, 6332 Limerick Lane, stated she did not have sewage, however, her home had ankle
deep water from seepage. Ms. Dreis had the Utility Department out to see the storm sewer near her
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MinuteslEdina City CouncillAuuust 4.1997
home. She stated the storm sewer cover blows off and her back yard turns into a lake during any
substantial rain and she would appreciate the City looking into this issue.
Gordon Johnson, 6409 Doron Lane, stated he was also speaking for his neighbors the Muellers, 6405
Doron Lane who were not able to attend. They experienced both storm water and sewage back up.
Mr. Johnson expressed concern regarding health issues and house values and wondered what to do.
I
Pam Berling, 4129 West 62"d Street, expressed concern regarding health risks. She had four inches
of sewage in her basement. Does she now remove her paneling and what needs to be done to her
cedar closet. Ms. Berling is afraid of this happening again. She noted there is a lift station across from
her home that is checked daily by City staff, however, the morning of the 22nd she did not see any
City staff checking that lift station. Ms. Berling asked if there is a correlation in living by a man hole
and having sewage back up into her home.
Earl Holdrige, 4132 West 62nd Street, noted there is a truck at the lift station daily, but no truck
appeared on the 22"d. Mr. Holdrige presented a circular distributed in the neighborhood by Barbara
Hultman alleging that the property around Pamela Park is now a flood plain. He asked for verification
of this information. Mayor Smith assured Mr. Holdrige staff would check into the information on the
flyer.
Karen Dovolis, 6325 Ashcroft Lane had 26 inches of sewage in her basement. Her basement is now
destroyed. Ms. Dovolis also had storm water approaching her house from St. Johns. She has had to
sand bag her home to protect it. The rain water issue needs to be dealt with and the sewers need to
be corrected.
U Richard Lund, 6324 Millers Lane, stated his home was flooded in 1987 and sewage flooded it again
this year. He had a similar amount of sewage this year as in 1987 when he was led to believe the
sewer back up was a one time occurrence. Mr. Lund wants answers. He added he called the City's
Utility Department almost a week ago and had not yet received a return call.
Don Bonstrom, 6328 Millers Lane, expressed concern that the changes to Lake Cornelia have
caused a portion of the problem. He noted that the north side of Lake Cornelia is four feet higher than
the south side even a week after the rain. Mr. Bonstrom hypothesized changes to the storm sewer
that helped homes south of Lake Cornelia have caused damage to the north side. He asked that this
be investigated and reported to the neighbors.
Ruth Eilers, 6201 Halifax, has been in her house for seven years. This is the second time she has
been flooded. Three years ago her basement was flooded and it has been redone. Now, what should
she do. She has concern about the disclosure she will have to make upon a sale and the value of the
home for resale. Ms. Eilers added she feels angry that all sewer improvement work appears to be
around commercial areas.
John Thill, 6336 Millers Lane, stated it seemed to him that all the damage is related to the Pamela lift
station. For this occurrence he is covered by insurance. Mr. Thill feels the City is failing to keep the
sewer system up to date. He noted the storm drain at St. Johns and 64'h Street had water spouting
out of it four feet high. Mr. Thill also feels the Lake Cornelia storm sewer work has caused problems.
He reminded that Lake Cornelia and Lake Nancy all run together. He acknowledged the underground
water table is very high, but feels the City must to do something.
Arnie Ryan, stated he lives at 63d and Ashcroft. Mr. Ryan bought his grandmother's home about a
year ago. This is a house she had lived in for thirty-five years. He had sewage back up into his
basement causing extensive damage. Mr. Ryan also expressed concern for health issues in clean up.
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MinuteslEdina Citv CouncillAuaust 4.1997
He stated his back yard turns into a lake anytime there is over a one inch rainfall and he must
sandbag his home. The storm sewers converge at his house, run over the curb and into his back
yard.
Dave Bush, 4208 Philbrook, stated he moved into hjs home in 1989 and had purchased the home
i .- ,
from his in-laws. In I987 the house was flooded. This time they had rain water seepage of about 2-4"
each day. He has over 100 feet of exposed sewer in the back yard and outbuildings had 2-4 feet of
water for several days. Mr. Bush noted there is a four foot storm sewer pipe that is never more than
1/3 full. He added his brother-in-law used to walk in the storm sewer as a kid over to Tower and told
him the pipe did not look right, but he could not be more specific.
Byron Zotailey, 5504 Parkwood Lane, noted a home he owns on Ashcroft Lane had $15,000-$20,000
of damage so he commiserates with the neighbors. Mr. Zotailey believes this is a community problem
and must be solved by the community as a whole. The issue has serious legal and political
implications. He expressed concern that if the intent was to solicit comments, no notice of the
meeting was sent to homeowners. Mr. Zotailey stated several citizens had the same experience in
I987 and were reassured that the City had taken care of the problems. He asked what was done in
response to the I987 flood, were more neighborhoods affected with sewer back up now or in 1.987.
Mr. Zotailey stated he believes that in the affected neighborhoods the sanitary sewer is not a confined
system and asked if this was true or not. If not, then where does the pressure come from to cause the
back up. He asked the City to respond to these concerns.
Staff Presentation
City Engineer Hoffman noted that staff believes approximately 300 homes experienced either sewer
backup or water seepage following the July 22, I997 rain storm. He introduced Assistant Engineer
Wayne Houle to give details of the event.
Assistant Engineer Houle explained the situation following the July 22, 1997, storm with a visual
presentation explaining:
STORM OF 1987
a) followed a dry period
b) 14 inches of rain fell between July 20 and 24
c) rainfall amount caused surface water problems
0 STORM OF 1997
a) average rainfall per storm 1-3 inches or approximately 16 inches from June 27 through
July 22
b) caused surface water to 'percolate'
c) increased the ground water table
d) created subsurface water problem
FUNCTION OF STORM SEWERS:
drain "clean water"
direct rain and snowmelt runoff
direct foundation drain systems
b design of storm sewers is for catch basins for small storms and ponds for large
storms
FUNCTION OF SANITARY SEWERS: I
b handle "dirty water", e.g. toilets, showers, washing machines, etc.
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MinuteslEdina City CouncillAuuust 4.1997
transported to metro waste water treatment facilities
b design includes normal usage of 274 gallons per day per house I GROUND WATER fGW)
increases because of overland flow and standing water in lakes, ponds and streams
CAUSES OF WATER IN HOMES:
a) foundation drains
b) sumppumps
c) manhole cover leakage
d) manhole and pipe leakage
e) roof leaders (downspouts and roof drains)
I) Sanitary Sewer Backup Caused by:
2) Ground Water Seepage
3) Overland Flooding
LOCATION OF FLOODING - NORTH EAST QUADRANT
0
general seepage
minimal overland flooding
homes experienced sanitary sewer backups along two trunk lines
LOCATION OF FLOODING - SOUTH EAST QUADRANT
0
0 general seepage
homes experienced sanitary sewer backups along trunk sanitary sewer lines
LOCATION OF FLOODING - SOUTH WEST QUADRANT
sanitary sewer backups
overland flooding of one home and Braemar Golf Course
general seepage
LOCATION OF FLOODING - NORTH WEST QUADRANT
minor overland flooding
general seepage
homes experienced sanitary sewer backups along trunk sanitary sewer line
Engineer Hoffman concluded that at this time staff cannot with certainty explain how or why the home
experienced flooding, but that staff recommends:
0
0
Hire an outside consultant engineering firm to analyze the Trunk Sanitary Sewer System
Utilize current engineering consultant to evaluate storm water system
Staff will analyze surface water issues
Mayor Smith asked how the City’s insurance carrier is responding to citizens’ questions. Assistant to
the City Manager Smith informed that all claims are passed onto the City’s insurance carrier, the St.
Paul Companies. The claims adjuster is Lisa Pederson and all claimants should hear from Ms.
Pederson soon. Any citizen desiring to make a claim should call City Hall and the claim will be
submitted to the St. Paul Companies.
Council Discussion/Action
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MinuteslEdina City CouncillAuaust 4.1997
Mayor Smith asked how many of the 19,000 single family homes was staff aware of that experienced
difficulty. Engineer Hoffman noted the City picked up debris from between 300 to 400 homes after the -
3,
storm.
Council members asked the following questions of staff:
Does the Waste Water Commission have regulations regarding discharge of sump pumps
into sanitary sewer?
0 Where does Edina’s sewage go for treatment?
Could consultants inventory how many sump pumps are directed into the sanitary system?
Was a consultant hired in 1987 and what were their findings?
If a consultant reviewed the 1987 event should they have predicted the 1997 event?
The Council expressed concerns relating to the cause of the disaster, the condition of the sewer, the
capacity of both the sanitary and storm sewer systems, how to inform residents regarding flooding,
consultant findings, and clean up after a disaster.
Mayor Smith summarized the recommendations and directions from Council as follows:
0 Review group water situations
0
Outside consultants will review the capacity and integrity of the sanitary and storm sewer
systems.
Develop information for distribution to the public on: How to Protect, How to Clean Up and
I nsu rance Coverage’s Available
Member Maetzold made a motion authorizing the City Manager to hire a consultant engineer to
review the City’s sanitary sewer system. Member Hovland seconded the motion.
Ayes: Faust, Hovland, Kelly, Maetzold, Smith
Motion carried.
*UPDATE PRESENTED ON TURN OF CENTURY DATE CHANGE FOR CITY COMPUTERS
Motion made by Member Hovland and seconded by Member Maetzold acknowledging receipt
of an update on turn of the century date change for the year 2000 for City computers.
I
Motion carried on rollcall vote - four ayes.
*PETITIONS RECEIVED FOR EDINA BOULEVARD STORM SEWER: MCGUIRE ROAD
DRAINAGE IMPROVEMENT: AND GLEASON ROAD AND WEXFORD ROAD STORM SEWER
IMPROVEMENT Motion made by Member Hovland and seconded by Member Maetzold
acknowledging receipt of petition from Carrie Ruppert and Michael Misewicz, 461 5 Edina
Boulevard and Jill and John Trautz, 461 3 Edina Boulevard requesting storm sewer
improvements; Linda Helland, 5720 McGuire Road requesting improved drainage in McGuire
Park and from Michael McShane, 7137 Gleason Road, R. A. Coonrod 7133 Gleason Road and
Lee Chapman, 7032 Wexford Road requesting storm sewer improvement and to refer the
petitions to engineering for processing as to feasibility.
Motion carried on rollcall vote - four ayes.
RESOLUTION ADOPTED APPROVING GENERAL OBLIGATION TEMPORARY TAX INCREMENT
FINANCING BOND SERIES 1997B Assistant Manager Hughes explained that on July 21, 1997, the
HRA authorized entering into Purchase Agreements with respect to the acquisition of the Lewis
Engineering and Kunz Oil properties. Staff recommended that this acquisition should be financed
through the issuance of an internal bond between the City and the HRA whereby reserve balances of
other districts are leant temporarily to the Grandview Tax Increment District. The attached documents
provide for the issuance of $2,500,000 in bonds for this purpose. Staff recommends adoption.
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MinuteslEdina City CouncillAuaust 4.1997
Member Kelly introduce the following resolution and moved its adoption:
RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE,
PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR
THE PAYMENT OF GENERAL OBLIGATION TEMPORARY
TAX INCREMENT BONDS,
SERIES 1997B IN THE PRINCIPAL AMOUNT OF UP TO $2,500,000
I
BE IT RESOLVED by the City Council of the City of Edina, Minnesota (the “Issuer”), as
Section I. Authorization and Sale.
1.01
follows:
Authorization. This Council hereby determines that it is necessary and in the
best interest of the Issuer to issue and sell its General Obligation Temporary Tax Increment
Bonds, Series 1997B in the principal amount of up to $2,500,000 (the “Bonds”) pursuant to
Minnesota Statutes, Section 469.1 78, subdivision 5(a) to finance the costs of acquisition of
property, the demolition of existing structures located thereon and other site preparation
costs (such acquisition, demolition and site preparation are herein called the “Project”) to be
undertaken by the Housing and Redevelopment Authority of Edina, Minnesota (the “HRA”) as
a part of the Grandview Area Redevelopment Plan of the HRA.
&&. The Bonds will be purchased by the HRA from advances made from time to
time from surplus funds on hand in the project fund for the 50* and France Tax Increment
Financing District of the HRA (the “Fund”) which are not presently needed for the purposes of
the fund prior to the maturity of the Bonds. After issuance the Bonds will be held as an asset
of the Fund.
I .02
Section 2.
2.01
Bond Terms: Reaistration: Execution and Delivery.
Issuance of Bonds. All acts, conditions and things which are required by the
Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be
performed precedent to and in the valid issuance of the Bonds having been done, now
existing, having happened and having been performed, it is now necessary for the City
Council to establish the form and terms of the Bonds, to provide security therefor and to issue
the Bonds forthwith.
Maturity Date: Interest Rate: Denominations and Pavment. The Bonds shall be
originally dated as of the date of original issue thereof, shall be in the denomination of $5,000
each, or any integral multiple thereof, of single maturities, shall mature on three years from
their date of issue, and shall bear interest from date of issue until paid or duly called for
redemption at the annual rate of 4.50% on the amounts from time to time advanced
thereunder, which annual rate the Issuer, upon consultation with its financial advisor, has
determined to be a fair rate of interest in light of current market conditions. The Bonds shall
be issuable only in fully registered form and only to the HRA. The Bonds may not be
transferred to any other owner; however the Issuer may refund the Bonds and reimburse the
HRA by the issuance of long term bonds of the Issuer or additional temporary bond of the
Issuer in accordance with the provisions of Minnesota Statutes, section 469.1 78, subdivision
5(a). The principal of and the interest on the Bonds shall be payable by transfer of funds from
the Bond fund created in Section 3.02 hereof to the HRA.
Interest Pavment Dates. Interest on the Bonds shall be payable on each August
I and February I, commencing February I, 1998, and on the maturity date of the Bonds, to the
HRA as the registered owner of the Bonds.
Redemption. The Bonds shall be subject to redemption and prepayment at the
option of the Issuer, in whole or in part, and if in part in multiples of $5,000, on any date at a
price equal to the principal amount thereof and accrued interest to the date of redemption. No
formal notice of redemption need be given. Upon partial redemption of any Bond, a new Bond
or Bonds will be delivered to the HRA representing the remaining principal amount
outstanding.
I
2.02
2.03
2.04
I
Page 10
MinuteslEdina Citv CouncillAuuust 4.1997 I% . );La*..’ i ,.. e,
I *?
8, .,I/
8, ‘ >*
2.05
2.06
Appointment of Pavina Aaent. The Issuer hereby appoints the Finance Director
of the City of Edina s the paying agent for the Bonds (the Paying Agent).
Execution. Authentication and Delivery. The Bonds shall be prepared under the
direction of the Finance Director and shall be executed on behalf of the Issuer by the manual
signatures of the Mayor and the City Manager. In case any officer whose signature shall
appear on the Bonds shall cease to be such officer before the delivery of any Bond, such
signature shall nevertheless be valid and sufficient for all purposes, the same as if he or she
had remained in office until delivery. When the Bonds have been prepared and executed. The
Finance Director shall deliver the Bonds to the HRA upon payment of the purchase thereof.
Form of Bonds. The Bonds shall be prepared as a single typewritten bond in
substantially the following form:
I
2.07
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF EDINA
GENERAL OBLIGATION TEMPORARY TAX INCREMENT BOND, SERIES 1997B
Interest Rate Maturity Date Date of Oriainal Issue CUSIP
4.50% ,2000 ,1997 N/A
REGISTERED OWNER: HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA,
MINNESOTA
PRINCIPAL AMOUNT: TWO MILLION FIVE HUNDRED THOUSAND DOLLARS ($2,500,000)
THE CITY OF EDINA, COUNTY OF HENNEPIN, MINNESOTA (the ccIssuer”),
acknowledges itself to be indebted and hereby promises to pay to the registered owner named
above the principal sum specified above or such amount thereof as has been advanced
hereunder on the maturity date specified above, with interest thereon on the un-paid principal
amount at the annual rate specified above, payable on August I and February I of each year,
commencing February I, 1998, and on the maturity date specified above to said registered
owner, subject to the provisions referred to herein with respect to the redemption of the
principal of this Bond before maturity. For the prompt and full payment of such principal and
interest as the same respectively become due, the full faith and credit and taxing powers of
the Issuer have been and are hereby irrevocably pledged.
This Bond is one of an issue in the aggregate principal amount of up to $2,500,000
issued pursuant to a resolution adopted by the City Council on August 4, 1997 (the
rrResolutiony’) to provide funds to finance certain public improvements to be undertaken as a
part of the Grandview Area Redevelopment Plan of the Housing and Redevelopment Authority
of Edina, Minnesota (the “HRA”), and is issued pursuant to and in full conformity with the
Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota
Statutes, Chapters 469 and 475.
This Bond is subject to redemption and prepayment at the option of the Issuer, in
whole or in part, and if in part in multiples of $5,000, on any date, at a price equal to the
principal amount thereof plus interest accrued to the date of redemption. No formal notice of
redemption shall be required. Upon partial redemption of this Bond, a new Bond will be
executed and registered in the name of the registered owner named above, representing the
remaining principal amount outstanding.
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MinuteslEdina Citv CouncillAuaust 4.1997
THIS BOND MAY NOT BE TRANSFERRED TO ANY OWNER OTHER THAN THE
HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA, MINNESOTA BUT THE CITY MAY
REIMBURSE THE HOUSING AND REDEVELOPMENT AUTHORITY OF EDINA, MINNESOTA
AND REFUND THIS BOND BY THE ISSUANCE OF LONG TERM BONDS OF THE ISSUER OR
ADDITIONAL TEMPORARY BONDS OF THE ISSUER IN ACCORDANCE WITH THE PROVISIONS
OF MINNESOTA STATUTES, SECTION 469.178, SUBDIVISION 5(a).
I
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts,
conditions and things required by the Constitution and laws of the State of Minnesota to be
done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond
in order to make it a valid and binding general obligation of the Issuer in accordance with its
terms, have been done, do exist, have happened and have been performed as so required;
that the Issuer has established its General Obligation Temporary Tax Increment Bonds, Series
1997B Bond Fund and has appropriated thereto ad valorem tax increments to be derived from
the Grandview Area Tax Increment Financing District (Hennepin County No. 1202) of the HRA
to be applied to the payment of the principal of and interest on the Bond; that to the extent
that the principal of and interest on the Bond cannot be paid when due from tax increment
revenues or other funds appropriated for that purpose, the Bond shall be paid from proceeds
of general obligation bonds of the Issuer offered for sale in advance of the maturity date of the
Bond; but the Issuer has pledged its full faith and credit and taxing powers for the payment of
the principal of and interest on the Bond when due, and if the Bond and the interest thereon
are not paid in full when due, the Issuer is required to levy upon all taxable property within its
corporate limits, without limitation as to rate or amount, an ad valorem tax in an amount
sufficient to pay such principal and interest. It is further certified, recited, covenanted and
agreed that if the Bond is not paid in full at maturity, in addition to any other remedy
authorized or permitted by law, the Issuer may execute and deliver to the registered owner
hereof, in exchange for the Bond on a par-for-par basis, new general obligation temporary tax
increment bonds maturing within one year from their date of issue and bearing interest at the
rate of interest set forth in the resolution authorizing their issuance, not exceeding the
maximum rate permitted by law and that the issuance of this Bond, together with all other
indebtedness of the Issuer outstanding on the date hereof and on the date of its actual
issuance and delivery, does not cause the indebtedness of the Issuer to exceed any
constitutional or statutory limitation of indebtedness.
IN WITNESS WHEREOF, the City of Edina, Hennepin County, Minnesota, by its City
Council has caused this Bond to be executed on its behalf by the signatures of the Mayor and
City Manager and has caused this Bond to be dated as of the Date of Original Issue set forth
above.
4
CITY OF EDINA, MINNESOTA
City Manager Mayor
Section 3. Security Provisions.
3.01. General Obliaation Temporary Tax Increment Bonds. Series I99713 Construction
Fund. There is hereby established on he official books and records of the Issuer a General
Obligation Temporary Tax Increment Bonds, Series 199713 Construction Fund (the
Construction Fund). To the Construction Fund there shall be credited from any amounts
advanced under the Bond and from the Construction Fund there shall be paid by the City or
Page 12
MinuteslEdina City CouncillAuuust 4.1997
HRA all costs and expenses of the Project and the issuance of the Bonds. After payment of all
costs of the Project, the Construction Fund shall be discontinued and any Bond proceeds and
other funds remaining therein shall be transferred to ^the General Obligation Temporary Tax
Increment Bonds, Series 1997B Bond Fund.
3.02. General Obliaation Temporary Tax Increment Bonds. Series 1997B Bond Fund.
So long as any of the Bonds are outstanding and any principal of or interest thereon unpaid,
the Treasurer shall maintain a separate debt service fund on the official books and records of
the Issuer to be known as the General Obligation Temporary Tax Increment Bonds, Series
1997B Bond Fund (the Bond Fund), and the principal of and interest on the Bonds shall be
payable from the Bond Fund. The Issuer irrevocably appropriates to the Bond fund:
(a) any excess proceeds of the Bonds transferred to the Bond fund pursuant to
Section 3.01 above;
(b) ad valorem tax increments described in the last paragraph of this Section 3.02 to be
received from the HRA;
(c) to the extent necessary, the proceeds from the sale of definitive general obligation
tax increment bonds, or the proceeds of a series of additional general obligation temporary
tax increment bonds, required to be sold by the Issuer in accordance with Minnesota Statutes,
Section 469.178, subdivision 5, to provide funds for the payment of the principal of the Bonds
at maturity and thereby reimburse the HRA; and
The moneys on hand in the Bond fund from time to time shall be used solely to pay the
principal of and interest on the Bonds.
Pursuant to Minnesota Statutes, Section 469.1 78, subdivision 2, the Issuer has entered
into a pledge agreement with the HRA whereby the HRA will pay to the Issuer from tax
increments generated by the Grandview Area Tax Increment Financing District (Hennepin
County No. 1202) of the HRA tax increments sufficient, with any other funds appropriated by
the Issuer to the Bond Fund, to pay when due the principal of and interest on the Bonds.
Payments received by the Issuer pursuant to the agreement will be deposited into the Bond
Fund.
Pledge of Taxina Powers. For the prompt and full payment of the principal of
and interest on the Bonds as such payments respectively become due, the full faith, credit
and unlimited taxing powers of the Issuer shall be and are hereby irrevocably pledged. It is
hereby determined that the funds appropriated to the Bond Fund as set forth in Section 3.02
hereof will produce amounts not less than five percent in excess of the amounts needed to
meet when due the principal and interest payments on the Bonds, and therefore no ad
valorem taxes are required to be levied at this time. Nevertheless, if the balance in the Bond
fund is at any time insufficient to pay all interest and principal then due on all Bonds payable
therefrom, the payment shall be made from any fund of the Issuer which is available for that
purpose, subject to reimbursement from the Bond Fund when the balance therein is sufficient,
and the City Council covenants and agrees that it will each year levy a sufficient amount of ad
valorem taxes to take care of any accumulated or anticipated deficiency, which levy is not
subject to any constitutional or statutory limitation.
Exchanue of Additional Temporary Improvement Bonds. In accordance with
Minnesota Statutes, Section 469.178, subd.5, if the Bonds are not paid in full at maturity, in
addition to any other remedy authorized or permitted by law, the Issuer may issue to the HRA,
in exchange for the Bonds then held by the HRA on a par-for-par basis, new general obligation
temporary tax increment bonds maturing within one year from their date of issue and bearing
interest at the rate of interest set forth in the resolution authorizing their issuance not
exceeding the maximum rate permitted by law.
(d) the ad valorem taxes described in 3.03 hereof.
u
3.03
3.04
Section 4. Certification of Proceedings.
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MinuteslEdina City CouncillAugust 4.1997
4.01 Reaistration of Bonds. The City Clerk is hereby authorized and directed to file a
certified copy of this resolution with the County Auditor of Hennepin County and obtain a
certificate that the Bonds have been duly entered upon the Auditor's bond register.
Authentication of Transcript. The officers of the Issuer and the County Auditor
are hereby authorized and directed to prepare and furnish to the HFW and to Dorsey &
Whitney LLP, Bond Counsel, certified copies of all proceedings and records relating to the
Bonds and such other affidavits, certificates and information as may be required to show the
facts relating to the legality and marketability of the Bonds, as the same appear from the
books and records in their custody and control or as otherwise known to them, and all such
certified copies, affidavits and certificates, including any heretofore furnished, shall be
deemed representations of the Issuer as to the correctness of all statements contained
therein. Member Maetzold seconded the motion.
4.02
Adopted this 4'h day of August, 1997.
Attest:
Rollcall:
Ayes: Faust, Hovland, Kelly, Maetzold, Smith
Resolution adopted.
Mayor
CLAIMS PAID Member Maetzold made a mo1.m to approve payment of the following claims as
shown in detailed on the check Register dated July 30, 1997, and consisting of 32 pages:
General Fund $1 85,212.29; C.D.B.G. $2,625.00; Communications $1,457.39; Working Capital
$1 0,191.04; Art Center $12,171.98; Swimming Pool fund $4,581 .I 8; Golf Course Fund
$37,448.33; Ice Arena Fund $13,153.46; Gun Range Fund $34.56; EdinboroughlCentennial
Lakes $35,467.46; Utility Fund $314,661.08; Storm Sewer Utility Fund $5,455.43; Liquor
Dispensary Fund $182,398.01 ; Construction Fund $12,873.00; Park Bond Fund $7,250.02;
TOTAL $824,980.23. Member Faust seconded the motion.
Rollcall:
Ayes: Faust, Hovland, Kelly, Maetzold, Smith
Motion carried.
There being no further business on the Council Agenda, Mayor Smith declared the meeting
adjourned at 1152 P.M.
City Clerk
Page 14