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052891 CC Reg Min '/. . 'CITY OF SHOREWOOD ~GULAR CITY COUNCIL MEETING TUESDAY. MAY 28. 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 1 M I NUT E S SPECIAL WORK SESSION 6:30 P.M. Gary Groen of Abdo, Abdo and Eick explained the 1990 audit to the City Counci 1 . He reported that their was no qualification attached to the audit this year. Groen explained that the General Fund is the primary operating fund of the City and that 61% of the revenue is obtained from property taxes. JAY BERKLEY - RESIDENT objected to the use of the term profit in one section of the report. CALL TO ORDER Mayor Brancel called the meeting to order at 7:05 P.M. PLEDGE OF ALLEGIANCE ROLL CALL . Present: . Mayor Brancel, Councilmembers Gagne, Stover. Daugherty and Lewis, City Administrator Hurm, City Attorney Froberg, City Engineer Dresel, City Finance Director Rolek. REVIEW AGENDA Daugherty moved. Gagne seconded. to approve the agenda with the following corrections: 1. Mayor Brancel asked that No.7 and No.5 be reversed on the agenda. Motion carried - 5/0 APPROVAL OF MINUTES A. Special City Council Workshop Meeting - May 6, 1991 Gagne moved. Stover seconded. to approve the Special City Council Workshop Minutes of May 6. 1991. Motion carried - 5/0 1 . B. . . 'CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING TUESDAY. MAY 28. 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 2 Regular City Council Meeting - May 13, 1991 Gagne moved. Stover seconded. to approve the Regular City Council Minutes of May 13. 1991 with the following corrections: 1. Pg. 6 - last line of John Askins' comments - "Stover said the Council should approve any appointments to committees." 2. Pg. 7 - Froberg asked that the mot i on be changed to read: " wave the second reading" 3. Pg. 8 - Froberg asked that said be deleted in the second par. of the Attorney's Report. Motion carried - 5/0 C. Continue/Board of Review Meeting - May 20. 1991 Gagne moved. Stover seconded. to approve the Continuation of the Board of Review Minutes of May 20. 1991. Motion carried - 5/0 CONSENT AGENDA RESOLUTION NO. 46-91 47-91 48-91 49-91 Gagne moved. Stover seconded. to approve the following Consent Agenda: A. Motion to Accept and Approve the 1990 Audit Report Gary Groen from Abdo, Abdo and Eick. B. Adopt Resolution No. 46-91 "A Resolution Approving Liquor License - Vine Hill Market." C. Adopt Resolution No. 47-91 "A Resolution Approving Liquor License - Minnetonka Country Club." D. Adopt Resolution No. 48-91 "A Resolution Approving Liquor License - American Legion Post 259 E. Adopt Resolution No. 49-91 "A Resolution Approving Shoreland Grant Agreement with the DNR - State of Minnesota." Attorney Froberg asked that the following paragraph be inserted in place of the first paragraph in Resolution No. 49-91: "Whereas the Lake Minnetonka Conservation District is an organization responsible for the water management of Lake Minnetonka and" Motion carried - 5/0. ::;.~ 'CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING TUESDAY, MAY 28, 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 3 . COUNCIL CHAMBERS LIGHTING PROPOSAL - Letter from Lake Minnetonka Cable Communications. JENNIFER WATTS - Lake Minnetonka Cable Communication - Administrator Ms. Watts presented two options for lighting the Council chambers. 1. Option A: install four Altman fresnel lights with 1000 watt lamps to the ceiling. The cost would be $1389.14 minimum and $1939.28 maximum. 2. Option B: install track lighting using 150 watt bulbs. The cost would be $1151.14 minimum and $1171.28 maximum. Watts said the Council should discuss what problems they have with the video quality and then make their decision. She said she can recommend lighting designers to provide a plan. Councilmember Gagne said he has been told by residents that the videos do not look good. Councilmember Stover said she has never been in favor of the proposal. Councilmember Daugherty said the track lighting is cheaper but he wants to make sure it works. The Council agreed to table the matter. . PROPOSED RESOLUTION - AWARD BIDS OLD MARKET ROAD INTERSECTION IMPROVEMENTS. RESOLUTION NO. 51-91 City Engineer Dresel explained the plans for the Old Market Road Intersection. He said the Bond Purchase Agreement does not cover the entire frontage road and the extension of the watermain will be funded separately. Dresel said the bids received were higher than expected. The cost was expected to be $1,136,000 and the low bid received was $1,044,615.70 with additional costs raising the figure to $1,344,340. Dresel said additional State funds can make UP the difference in cost. He said the hookup charge for the three commercial properties in the development will pay for the extension of the watermain east of Waterford I I I . Daugherty said it was his understanding that the cost of the project was not to exceed $1,136,000. He also said he thought the $99,000, deposited by Trivesco, was not refundable if the project was not completed. He said it was his understanding that this money was to be used to cover the City's costs. . City Attorney Froberg said there is no written agreement concerning a project limit of $1,136,000. There might have been an understanding among Council members but nothing in writing. Froberg said there is a provision in the bond purchase agreement permitting the Council to cancel the agreement if the project cost exceeds $1.136 million but the $99,000 must then be refunded to Trivesco. He read Pg. 3 of the Bond Purchase Agreement. " CITY OF SHOREWOOD .REGULAR CITY COUNCIL MEETING TUESDAY, MAY 28, 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 4 . "If the actual aggregate amount of the public improvements and the other fees and costs itemized above exceeds $920,000, after deduction of the $216,000 of State Aid Funds, the City shall not be obligated to issue the bonds provided the City refunds to Trivesco all of the $99,000." Daugherty said he does not remember the agreement that way. Gagne asked if the engineering and administratie fees have exceeded the $99,000. Finance Director Rolek and Dresel said yes they have. Lewis said the City is being put in the position of continuing with the project because too much money has already been spent. Stover said the financing has been discussed a lot. She said no interest income or State Aid System funds were figured in the $1.1 million figure. Daugherty also thought the contingency fees were too low. JEREMY STEINER ATTORNEY-TRIVESCO Steiner said, if the public improvements exceed $1.1 million and the City does not complete the project, then the $99,000 is refunded to Trivesco. He sees no reason for not using the State Aid System funds because Mn/Dot has requested additional requirements for the intersection. Lewis said the City should not approve the funding without final approval from Mn/Dot. . Dresel said there has always been a time constraint with the project. OSM has asked Mn/Dot to approve the project during the design phase. He said, of the State sources of funding, the Mn/Dot Signal Funds are the most vulnerable. Daugherty asked if the State Aid Funds were calculated in the 316/91 agreement. Dresel said they were not. He has been pursuing the funds and had planned to use them for early retirement of the bonds. Daugherty said a contingency fund of 8% seems small. He asked how this compares to other projects. City Administrator Hurm said the contingency fund should be 10% or $102,000. However, there was no room for more than $81,603. Lewis asked why the Engineering fees were up. Dresel said OSM's contract estimates 15%. Lewis said this project is becoming a great expense to the taxpayers of Shorewood. Gagne said there could be a larger cost if the project does not proceed. Stover said the City did a special census to qualify for State Aids Funds and therefore, she sees no reason not to use them. Lewis said the City is just spending money to spend. He said there are many ways to handle traffic problems and an intersection and strip mall is not good. . Daugherty asked Dresel how sure he is of the State money. Dresel said that pursuing these State funds is part of his job. The money could have been used to retire the bonds early, but will now have to be used for the project. 4 . . . 'CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING TUESDAY, MAY 28, 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 5 Daugherty asked what would happen if the $46,000 in Mn/Dot Signal Funds is deleted. Dresel said the contingency fund could be used. PROPOSED RESOLUTION APPROVING SALE OF RESOLUTION NO. 50-91 BONDS CONCERNING OLD MARKET ROAD INTERSECTION IMPROVEMENTS Froberg said the bond resolution was prepared by the law firm of Wurst, Lawson, Underwood and Mentz, the City's bond counsel. He then introduced Tom Underwood, the bond attorney. TOM UNDERWOOD - ATTORNEY presented the Bond Purchase Agreement. He said the bonds will mature on one date, February 1. 2000. Interest will accrue and will compound semi-annually. He said the agreement requires mandatory redemption prior to maturity, if the increments are available. The developer must disclose the speculative nature of these bonds should they be transferred to another potential buyer. Underwood said par. 10. last sentence. of the agreement will change. It will say: "If for any reason the City has not obtained Mn/Dot approval of the improvements by Dec. 31, 1991, all bond proceeds shall be used to redeem and prepay the bond in the manner provided in this resolution." He said further language will be added to tie the rate of interest payable on the bonds to the rate of interest on the income that had been received due to investment of bond proceeds. Gagne asked who takes care of the costs to the City if Mn/Dot does not approve the intersection. Rolek said there will be no more expense until they approve. Brancel asked Froberg why the date of Dec. 31. 1991 was inserted in the agreement. Froberg said this could be the absolute last date to expect approval. Lewis asked about additional fee incurred after the sale of the bonds. Daugherty says the additional language in the clause ties up the City and is not necessary. Daugherty said the clause specifically prevents the City from recovering costs involved in the project due to the approval of an outside source (Mn/Dot) and he said he doesn't like that. Froberg said that Mn/Dot has already preliminarily approved the plans and the only thing they might do is require alterations. Lewis said the City would have to come up with additional funds for any alterations. Froberg agreed. Stover asked if a clause could be included that stated the bond proceeds are returned but the interest is retained to recover costs. Rolek said the interest will cover the cost of the bond issuance but not the total costs of the project. Gagne said the costs are already $135,000. He asked Dresel if he expects Mn/Dot approval. Dresel said yes. 5 . . . 'CITY OF SHOREWOOD ~EGULAR CITY COUNCIL MEETING TUESDAY. MAY 28. 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 6 Brancel asked if the City is liable for the interest on the bonds when they change hands. Underwood said the only source of payment for the bonds is the revenue from the project. The City is not responsible. JEREMY STEINER - Steiner said the bonds will be issued in $5000 denominations and will be numbered from 1 to 184 and will be redeemed that way. Stover asked if the change in par. 10 is part of the resolution or if it is negotiable. Underwood said the Council can accept the change or reject it. Gagne asked how the City will cover it's costs. He said the City is entitled to recover it's costs. BOB THISTLE OF SPRINGSTED, INC. explained that the excess proceeds are the $920,000 plus any interest earned. If there is no Mn/Dot approval, a new date can be established or the project can be dropped. The City could also add a clause stating that the City's costs will be deducted from the balance, as a point of negotiation. Gagne does not want to approve the agreement without guaranteeing the City's costs. Lewis said the City should get Mn/Dot approval first. Stover asked what additional costs will be involved in the bond issuance up to Mn/Dot approval. Rolek said there are costs for Underwood's work and Springsted's work. Brancel asked Froberg why a clause cannot be inserted to cover the City's costs. Froberg said the clause could be inserted, however it is out of the developer's control to obtain the approval of Mn/Dot. He said a clause can be inserted by Underwood that would allow the City to retain bond proceeds sufficient to cover it's costs. Steiner said the City could retain enough of the bonds to cover it's costs. Thistle said this would be acceptable but only if the increments were still available. Stover moved, Gagne seconded, to change paragraph 10 of the Bond Agreement to allow the City to retain bond proceeds in an amount sufficient to cover up to $150,000 of the City's costs. Motion carried - 5/0. BREAK - 9:00 TO 9:10 Froberg said the Council should accept the Financial Analysis before it adopts any further resolutions. 6 . . . " CITY OF SHOREWOOD .REGULAR CITY COUNCIL MEETING TUESDAY, MAY 28, 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 7 Gagne moved, Stover seconded, to accept the Financial Analysis of Old Market Road Intersection dated 5/28/91 and to set a closing date for the bond sale for 5/30/91 at 2 P.M. Motion carried - 3/2 (Lewis and Daugherty) Lewis and Daugherty reiterated their positions that there is potential additional excess costs and that the City should wait for the final approval from Mn/Dot. Stover moved, Gagne seconded, to adopt RESOLUTION NO. 50-91 "A Resolution Awarding the Sale of $920,000 Tax Increment Revenue Bonds of 1991; Fixing their form and Specifications; Directing their Execution and Delivery; and Providing for their Payment. Motion carried - 3/2 (Lewis and Daugherty) Gagne moved, Stover seconded, to adopt RESOLUTION NO. 51-91 "A Resolution Accepting Bid and Awarding Contract for Street and Watermain Improvement Waterford 3rd Phase Addition - Old Market Road." Motion carried - 3/2 (Lewis and Daugherty) Froberg said "Hardrives Inc." should be inserted in the proposed resolution as the lowest bidder on the project. PROPOSED RESOLUTION APPROVING FINAL PLAT AND RESOLUTION NO. 52-91 AUTHORIZE THE EXECUTION OF P.U.D. AGREEMENT - WATERFORD PHASE III. Froberg said that Councilmember Lewis had some concerns with the wording of the P.U.D. agreement. Lewis wanted "the City" substituted for "City Engineer" in certain sections of the document that required final inspection and approval. Dresel said the Council does approve the inspections based on his recommendations. Dresel said this could become a lot of work for the Council. Gagne said the staff should handle these inspections. Daugherty said he wants overall approval by the Council. Froberg said Lewis also wanted "the City" substituted for "City Attorney" in the section pertaining to the alternative security agreement. Gagne asked Lewis his reasoning behind his change. Lewis said the wording pertaining to escrow is ambiguous and he said the entire process was left up to the Attorney. Froberg said that with an alternative security agreement there is no escrow account. The developer has a line of credit with the bank that the City can draw on if the development is not completed. He said the City Engineer approves all disbursements from this account. '7 . . . -CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING TUESDAY, MAY 28, 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 8 Lewis also wanted to add a paragraph prohibiting the sale of the property to other unreputable developers. Froberg said that Trivesco would remain responsible to the City even if they sold the property to another developer. He said paragraph 32 handles this type of sale. Jeremy Steiner - said the City is only approving two multiple family dwellings and they have a lot of control over the development. Trivesco can assign it's rights but not it's obligations under this agreement. The Council agreed to delete line 4 on Pg. 10, Par. 25 as follows: "which approval shall not be unreasonably withheld" Gagne moved. Stover seconded, to adopt RESOLUTION NO. 52-91 "A Resolution Approving the Plat of Waterford 3rd Addition." Motion carried - 3/2 (Daugherty and Lewis) RESOLUTION APPROVING SIMPLE SUBDIVISION COMBINATION AND LOT WIDTH VARIANCE - ALMQUIST/ASKINS RESOLUTION NO. 53-91 Stover moved, Lewis seconded, to adopt RESOLUTION NO. 53-91 "A Resolution Approving Subdivision and Combination of Real Property." Motion carried - 5/0 on a roll call vote. RESOLUTION ACCEPTING BID AND AWARDING CONTRACT FOR SHADY HILLS DRAINAGE SYSTEM RESOLUTION NO. 54-91 Lewis moved, Gagne seconded, to adopt RESOLUTION NO. 54-91 "A Resolution Accepting Bid and Awarding Contract for Shady Hills Drainage System." Motion carried - 5/0 on a roll call vote. A RESOLUTION ACCEPTING BID FOR WATER RESOLUTION NO. 55-91 TREATMENT PLANT FOR THE SOUTHEAST AREA TRUNK WATER SYSTEM Hurm explained that A & K Construction is the low bidder on the project. However, Rochon Corp. becomes low bidder if the brick option is chosen. Stover asked Daugherty and Lewis how the neighborhood felt about the project. Lewis said they will defer to the decision of the Council. She asked Noel Vogen of Associated Consultants, if he knew of the works of the two companies. He said he is familiar with the work of A & K Construction. He said Rochon is new to this type of work but has sub- contrators that are experience in pump installation. He said he does not recommend either one. El '. CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING TUESDAY. MAY 28. 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 9 . Gagne moved. Daugherty seconded. to adopt RESOLUTION NO. 55-91 IIA Resolution Accepting A & K Construction as lowest bidder for items I. 2 and 3 and alternate 3 to item 1. and Awarding them the Contract for Water Treatment Plant for the Southeast Area Trunk Water System. II Motion carried - 5/0 REVIEW PROPOSED ORDINANCE AMENDING SECTION 903.03 OF THE SHOREWOOD CITY CODE PROVIDING FOR WATER USE AND SERVICE AND SCHEDULE A PUBLIC HEARING DATE ON ORDINANCE Gagne said the City should charge only the properties that are affected now for the water treatment plant. Daugherty asked if there could be a rebate to those charged now when others hookup. Rolek and Hurm said that a rebate method is hard to administer. Stover moved. Gagne seconded. to include only the properties included in the S. E. Area Trunk Water System of Shorewood in the area to be assessed for the water treatment plant. Motion carried - 4/1 (Daugherty) . Gagne said the Council needs another meeting to discuss the water issue. Stover moved. Gagne seconded. to have the City Engineer prepare the assessment roles for the S. E. Area Water Treatment Project. Motion carried - 5/0 Vogen said he can assist in the preparation. MATTERS FROM THE FLOOR. Jay Berkley of Amesbury wanted the sign on the easement between Bayswater and Garden roads replaced. He said the City plowed the easement this winter and it is being used as a road. No action was taken at this meeting. The Council will review the matter at the next Council meeting. Dresel said the Council should check with Public Works Director Zdrazil. STAFF REPORTS: A. ATTORNEY'S REPORT . Froberg said there has been no meeting between the neighbors regarding the Johnston's First Addition and asked the Council to table the matter to it's next meeting. 9 . . . 'CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING TUESDAY. MAY 28. 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 10 Gagne moved. Stover seconded. to table the Johnston's First Addition Preliminary Plat Approval until the next Council meeting. Motion carried - 5/0 B. ENGINEER'S REPORT No Report. C. PLANNING DIRECTOR'S REPORT Hurm reported for the Planner on the status of the salt and sand shed. He said the size of the building will be different if Tonka Bay and Excelsior are involved. He said he will be talking to the Cities. Stover said he should give them a deadline of July 8th, so there is no delay for another year. Daugherty said he should also look at any potential EPA impact in drawing up a lease agreement. D. ADMINISTRATOR'S REPORT Hurm said the LMC Annual Conference will be held June 11-14 BREAK - 11:08 TO 11:12 Hurm said there will be a binder of information for the Council to read. This will include all bulletins mailed to the City. He asked the Council to approve a permanent transfer of funds from the General Fund to the Park Capital Improvement Fund. Daugherty moved. Lewis seconded. to direct that a Resolution be prepared agreeing to transfer $26.000 from the General Fund to the Park Capital Improvement Fund. Motion carried - 5/0 COUNCIL REPORTS. A. MAYOR BRANCEL Brancel said there will be a discussion on the Rental Housing Code June 17, 1991 at 7:30 P.M. B. COUNCILMEMBER GAGNE The Senior Housing Task Force will be formally presenting their recommendations to the Planning Commission. 10 , . CITY OF SHOREWOOD , REGULAR CITY COUNCIL MEETING TUESDAY. MAY 28. 1991 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 11 . C. COUNCILMEMBER STOVER Stover asked the Council to approve the contract to inspect for Milfoil in Christmas Lake. Stover moved. Gagne seconded. to contract with Lake Restoration to inspect for milfoil weed in Christmas Lake in spring and fall. Motion carried - 5/0 D. COUNC I LMEMBER LEWI S No Report E. COUNC I LMEMBER DAUGHERTY No report. ADJOURNMENT SUBJECT TO THE PAYMENT OF CLAIMS Stover moved. Daugherty seconded. to adjourn the meeting at 11:28 P.M. Motion carried - 5/0 . GENERAL AND LIQUOR FUNDS - ACCOUNT NUMBER 00-00166-02 Checks issued since May 9, 1991 Check No. 6761-6804 LIQUOR $ 73,458.70 TOTAL CHECKS ISSUED GENERAL $ 12,021.62 $ 85,480.32 Checks for Council approval Checks No. 6805-6843 TOTAL CHECKS FOR APPROVAL $ 73,969.44 TOTAL CHECK APPROVAL LIST $ 89,706.74 CHECK REGISTER FOR MAY 21. 1991 PAYROLL . Checks no. 205144/205179 11 . . . . ' ?CITY OF SHOREWOOD , ijEGULAR CITY COUNCIL MEETING TUESDAY, MAY 28, 1991 LIQUOR $3,195.71 CHECK REGISTER FOR MAY 7. 1991 PAYROLL Checks No. 205102/205143 LIQUOR $3,034.49 RESPECTFULLY SUBMITTED Katie Snyder Recording Secretary :L:2 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 12 GENERAL $12,541. 59 TOTAL CHECKS ISSUED $15,737.30 GENERAL $13,190.70 TOTAL CHECKS ISSUED $16,225.19