050196 CC SP AgP
CJ:TY COOl'\1CJ:L SPBCJ:AL DBTJ:RG
CJ:TY 01' SBOItBWOOD
WEDNESDAY, MAY 1, 1996
AGlUTDA
1 . CON'V'B.RB CJ:TY COtJ'R'CJ:L DB'1'J:NG
A. Roll Call
McCarty
Mayor Bean
Stover
Benson
Shaw
B. Review Agenda
C. Proclamation - Older Americans I Month
2 . CONSJ:DBRA'l'J:ON 01' A 1I0'1'J:ON 'l'O ADOP'1' A RBSOLU'J.'J:ON
APPROVJ:NQ PLAlfS AB1) SPBCIJ'J:CA'l'J:ONS AND
AU'J.'BOR.J:ZJ:NG ADVBR.'l'J:SEIIBN'l' 01' BJ:DS I'OR 'I'D
SOt1'1'BSBORB SBHJ:OR COIlllltJ1.lJ:'l"Y CBIftBR. ( At t . - # 2
Proposed Resolution and Plans and Specifications)
3 . ADJOURN
CITY OF SHOREWOOD
PROCLAMATION
WHEREAS, the success of our City is measured by the well-being of our
citizens, who are reaping the benefits of the architects of our society, the men and women
who had the vision and dedication to make Shorewood a leader in providing an
environment that allows older citizens to age with dignity; and
WHEREAS, the quality of life for all individuals in our communities would
diminish without the capable older citizens who provide diverse volunteer services
addressing such concerns as the development of our youth, nutrition, health care, refugee
resettlement and historic and environmental preservations; and
WHEREAS, we acknowledge the contributions older citizens make and their
continuing efforts to add strength, security and diversity to our quality of life; and
WHEREAS, older citizens continue to merit our respect and gratitude, whether
they quietly enrich the lives of their own families or engage in volunteer and community
service; they are an invaluable source of knowledge and experience; and
WHEREAS, as role models and mentors, older citizens are a tremendous asset to
our City and are valued for the wisdom and energy they contribute.
NOW, THEREFORE the Shorewood City Council does hereby proclaim the
month of May 1996 to be
OLDER AMERICANS MONTH
Robert B. Bean, Mayor
ATIEST:
James C. Hurm, City Administrator
MAYOR
Robert Bean
CITY OF
SHOREWOOD
COUNCIL
Kristi Stover
Bruce Benson
Jennifer McCarty
Doug Malam
5755 COUNTRY CLUB ROAD · SHOREWOOD, MINNESOTA 55331.8927 . (612) 474-3236
MEMORANDUM
TO:
Mayor and City Council
Jim Hurm
Larry Brown $
FROM
DATE:
April 29, 1996
RE:
Senior Community Center
Approval of Plans and Specifications
Attached are excerpts from the plans for the Senior/Community Center. Portions of the plans which
highlight the floor-plan, site work, landscaping, and elevations are included for your review and com-
ment. Pages not included in the plan set were heating, electrical, and structural packages. Certainly
questions with regard to these matters will be addressed at the meeting.
Background Information
The existing building site is located immediately northeast of the Badger well house and immediately
north of the Badger ball fields.
The City of Shorewood has agreed to donating the land on which the building for the Senior/Community
Center is to be constructed. The total area of the lot to be created for the building is approximately 0.60
acres. This is in excess of the 0.5 acre minimum for the current zoning for the property. A legal des-
cription and layout of the lot to be created is indicated in attachment 1. The City of Shorewood will need
to process this subdivision prior to the commencement of construction.
This facility will also share parking facilities associated with the Badger ball fields. Therefore, an
easement for parking has also been included for the Senior Center which encompasses an area of 0.72
acres as part of attachment 1.
Site Plan and Parking
The proposed parking area provides 47 parking stalls with 2 of these stalls being handicap parking areas
near the front entrance. This ratio of handicap parking stalls to standard parking stalls is in accordance
with the American with Disabilities Act (ADA). Parking areas are proposed as a bituminous surface
with B-612 concrete curb and gutter.
A Residential Community on Lake Minnetonka's South Shore
~.r.
Senior Community Center
April 29, 1996
Page 2 of3
Recent revisions to the site plan include the deletion of a separate lot which was to be located where the
existing public works garage is to be demolished. This change was completed to minimize total pavement
area, concrete curbing, and associated storm sewer, thereby reducing costs to the project. The total
number of parking stalls remains as originally proposed in the concept. Stalls were moved adjacent to the
access drive west of the site to keep the same number of stalls.
Site Demolition
The original parking lot plan mandated that the portion of the "old Public Works garage" be demolished
to provide room for parking. Under the revised plan, this building could remain as is. Staff is
recommending that this portion of the building be demolished as originally planned to avoid heavy
equipment on the newly constructed parking lot. Costs associated with the demolition will be charged
back to the budget line created through the Capital Improvement Program. A separate bid item has been
created to track costs associated with this portion of the work.
Sanitary Sewer and W atermain
Sanitary sewer service will be extended from an existing manhole between the structure to be demolished
and the hockey rink. Unfortunately, options for the sanitary sewer service dictate that the depth of the
sewer is as little as 4.0 feet. Installation will include 4.0 inches of high density insulation and sand
bedding to prevent freezing. Although this is less than optimum, remaining alternatives were cost
prohibitive.
Water service is to be provided to the building by extending the 6 inch watermainfrom the existing
hydrant immediately east of the Badger well house to the proposed building.
Grading, Drainage, and Erosion Control
The site includes minor grading on the building site. However. major grading will occur to create a "dry
pond" immediately south of the parking area, and realignemnt of the ditch section east of the building
pad. The pond is necessary to maintain the existing run-off rate due to the increase in impervious
surface. Drainage from the pond will outlet into the drainage swale east of the buil~ng site. and
ultimately into the adjacent wetland east of the site. Due to the close proximity of the ball fields, this
pond is proposed as a dry pond versus a permanent pool. The 100 year high water level is 961.5 which is
well below the elevation of any adjacent structures in the area.
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Senior Community Center
April 29, 1996
Page 3 of3
The plans do not address erosion controls. Among items that are recommended, are the installation of
heavy duty silt fence between the building pad and ditch line, a rock construction entrance adjacent to
County Road 19, and several ditch checks along the proposed ditch realignment east of the building pad.
Construction Methods
To protect the investment the City has made in the City Hall parking lot, staffis recommending that a
wooden snow fence be extended across the access point to the City Hall parking lot. This will prevent
heavy construction vehicles from damaging the City Hall parking lot. Access will be maintained to the
site via County Road 19 until the parking lot pavement has been placed, and the heavy building
construction has been completed.
Estimated Construction Costs
At the time of this report, a construction estimate for the building demolition, grading, drainage, parking
lot construction, and soils corrections was received from OSM Associates, and is included as attachment
2 for your reference. Costs associated with this work was estimated at $190,380.00. City staffhad not
received the construction estimate for the remaining portion of the project. It is anticipated that this will
be presented at the City Council meeting on Wedrtesday for your consideration.
Recommendations
Staff is recommending approval of the plans and specifications, pending approval of the total construction
estimates, subject to the following conditions:
1. A revised landscape plan shall be submitted to the Director of Planning for his review and
approval prior to the release of plans for bidding purposes (refer to memo from Brad Nielsen
dated April 26, 1996- attachment 3)
2. The proposed plans be revised to include appropriate erosion controls as outlined herein.
3. Plans are to be revised to include temporary installation of a construction fence which would
prohibit construction access through the City Hall parking lot until such time as major
construction is completed.
4. A subdivision shall be submitted to the City Council for consideration, at a future date, which
addresses the subdivision being proposed to convey property to the South Shore Community
Center.
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DESCRIn'ION OF PARCEL TO BE DEEDED TO 1HE SENIOR CE.N'I'ER
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That part of Lot ~ Block 2. ECHO HIllS 2ND ADDITION, and of Lot Zl, AuditoTS
Subdivision No. 133, accordiDg to the plats on file in the office of the Co1m1y Recorder,
Hennepin Couuty, Minnesota, described as follows:
C~""""'-nc:ing at a. point in the centerline of Smithtcwn Road. distant 645.00 feet
easterly from. an intersection of the northerly exreu..qon of the west line of said. Lot
1:1 with said centerline; thence southerly patallel with the west. line of said Lot Z1 a.
distance of 34.19 feet to the point of beginning of the land to be ~Oed; th~
South 00 degrees 29 m:imItes 57 seconds East, assumed bearing, along a line parallel
with the west line of said Lot r! and the west line of said Lot 12 a dista.r1ce of 104.00
feet; thence South 76 degrees 20 minuteS 42 s~rk East 45.00 feet; thence South
15 degrees 30 minutes 36 seconds East 45.00 feet; thence South 76 degrees 20
.miImtes 42 seconds East 57.OS feet; thence North 66 degrees 48 mimlteS 24 seconds
East 34.92 feet; thence North 34 degrees 2S minutes 43 seeonos East 30.00 feet;
thence North 00 degrees 29 mim1tes 57 seconds West, parallel with the west line of
said Lots 12 and 'Z7, a distance of 160.00 feet to a. point in the north line of said Lot
12; thence South 84 degrees 37 minutes 48 secoom West 94.66 feet; thence South 74
degrees 29 minutes 24 SecondC1 West 68.00 feet to the point of begfrming.
Said parc:el eoml:tin!C 26,000 square feet more or loss.
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Together with a perm:mom easement for parkiDg purposes over, 1111der and across that part
of said Lol$ 12 and 21 descnDed as follows:
Commencing at a point in the centerline of Smithtown Road distant 645.00 feet
easterly from. an ,intersection of the northerly extension of the west line of said Lot
r7 with said centerline; thence South ao degrees 29 minn'te$ 57 seecmd!l East 138.19
feet to the southwest comer of the above described parcel and to the point of
beginning of the easement to be described; thence South 00 degrees 29 mimlteS 57
secontf!l East 27.00 feet; thence South 74 degrees 29 minuteS 24 s~!C West. 4.00
feet; thence South 15 degrees 30 minutes 36 seeondJ Em 55.00 feet; thence South
74 degrees 29 mimltes 24 M<XJ",d, West 55.00 feet; thence North 15 degrees 30
NOT%& No bGuDdu1 sarwyWlllk _pdlImId_to lUpNllia
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Description
Page 2
minutes 36 seconds West SS.oo feet; thence South 74 degrees 29 minuteS 24 seconds
West 9LOOfeet; thcDce South 00 dOFees 29 minutes 57 seconds East 139.77 feet;
thence North 74 degrees 29 minutes 24 seconds East 284.59 feet; thence North 00
degrees 29 rmnn'tes 51 ~tfs West S8.60 feet; the1u:e North 34 degrees 25 rn;nl1teS
43 secoads Bast 22.40 feet to tbe southea.ster1y comer of the above described parcel;
thence westerly and DOrthwesterly a1on& the southwesterly line of said above
descnbc:d parcel to the pcim of begitmit1g.
Together with the right of iD&ress and egress to and from the Country Cub Road.
Comai:as 31.452 squaro feet more or less.
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Crawinq Title
No.
EXHIBIT
5572.00
Sheet No.
SHOREWOOD . MINNESO'l'A
SIll. r iii _AMhWAfI2L&,I&oOClt
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ENGINEER's ESTIMATE
OSH PRC.lECT NUMlE~ 96011.01
ORR-SCIIELEfC-l'!AYEItOJI .. ASSOCIATES
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PRa.lECT: SClIJTH SHOaf SENIOR CENTER
crTY OF $HOR1!l<<loO PRO.I. NO.:
SHOR8<<)QO. MINNESOTA
8'1': PAUL T. IIORNBY, P.!.
fAl tillllted fAlt I_ted Eatilll(lt.:l
I tlIm No Spec No Delcrlpticn Clulnti ty Ll'Itta lkli t Price It8m TotaL
------ --------_.--~------_._------------ --......--- -.------... -------- ---------
, 2101.SOZ CLEARING " TRu ZOO.OO 800.00
2 2101.5OT GRUIIING " nw: ZOO.OO 800.00
.5 2103.501 BUILDING REMOVAL 1 LWlP UI 10,000.00 10.000.00
4 2104.501 REMOVAL SIWER PIPE (STORK) 41' L.F. 3.00 1,257.00
5 2104.501 REMOVAL CURB " GUTTER 10 L.'. 5.00 SO. 00
, 21 04. S01 REMOVAL SANITARY SERVICE PIPE 80 L.F. 5.00 4OD.00
7 2104.503 ItDI)VAL BlTUMIt40US PAVENENT ZOO S.F. 3.00 600.00
8 2104.509 REMOVAL CATCIf WIN 1 EA 200.00 200.00
9 2104.513 SAWING BlTUMINWS PAVE. (fULL DEPTHl 30 L.F. 3.00 lID. 00
10 2104. 52! "'l.YAGE HYDRANT It VALVE 1 LEAl) 1 fA 600.00 400.00
11 2105.501 COMMON EXCAVATION (PLAN QlJllHTI 4200 C. Y. 4.00 '6,800.00
12 2105.522 SELECT GAAHULAA BORRQI (LV) 2450 C. '1'. 12.00 29.400.00
13 2105.SZS TOPSOIL 80RRlIl (LV) 1500 c. '1'. 10.00 15,000.00
14 2211.501 AGGREGAT! lASE CL 5 1001 CRUSHED ROCK 1160 TON 9.00 10,440.00
15 2331.508 TYP! 41 WfNUNIi COARSE MIX. ~Q TON 28.00 8,12a.DD
16 2331.514 TYPE 31 SASE COARSE MIX 455 TON 24.00 10,920.00
17 Z357 .502 8ITUMINOUS "^T!RIAL FOIl TACK COAT 170 Gl\L 2.00 340.00
11 0451.602 GRANULAA FOUHOATION 100 TCN 10.00 1,000.00
19 2501.S1S 24u RC PIPE APROH W/TRASH GUIIRD 1 EA 1,SOIl.00 1,500.00
2Q 2502.541 6IlPERF. PVC PIP! ORAIN 450 L.F. 10.50 4,725.00
21 2503.511 6" PVC PIPE SEWER SOR 35 SERVICE PIPE IS L.F. 18.00 108.00
22 2503.511 an PVC PIPE SEWER $OA 3S 313 L.F. 20.00 6.260.00
a 2S03.541 128 RCP. DESIGII 3006, CL v 24 L. F. 25.00 600.00
Z4 2503.541 21- RCP. OES 3006, CL III 232 L.F. !D. DO 6.960.00
25 2SD3.541 248 ReP. PES 3006, CL III 117 L.F. 35.00 4,095.00
26 0503.602 COMECT TO EXISTING 1'WfII000ES (SAN) 1 EA 500.00 SOD. 00
'ZT 0503.602 CONNECT TO EXIST. "" (STM.1 2 fA 500. GO 1,000.00
Z8 2506.508 CONSTRUCT MH DES. SANITARY (0'-10') 2 EA 1,200.00 2,400.00
29 2506. soa ~ MH DES. STORM (0'-10') 1 EA 1,200.00 1 ,200.00
30 25Q6.509 CDJISTRUCT' tATCK WIN DES 2'X3' 2 EA 1,QIlO.00 2.000.00
31 25Q6.509 CONSTRUCT CATCH WIN MANHOl.E 2 EA 1,200.00 2,400.00
32 2506.516 CASTINQ ASSEHBL Y (Fill 1 I:A 3011.00 300.00
33 2506.522 ADJUST FMffl . RING CASTING 4 IA 150.00 600. DO
34 2506.SPE 4u POLYSTYReNE INSULATION 425 SQ YO 22.00 '.350.00
3S 2511.501 ItANDOM lU PffAp CL II I 15 C.'/'. ~.OO 600.00
36 2511.515 GiOTEXTILE FlL TElt TYPE IV 25 SQ. 'I'D. 2.00 SO. DO
!7 2511.515 GEDTEXTIlE FILTER TYPE v 3700 SQ. 'I'D. 2.00 7,400.00
38 2521.501 4" CONCRErE \6\LK 160 SIt. FT. 2.00 320.00
!9 2531.501 CONCRETE CIG DES 1612 1570 L.F. 7.00 10,990.00
40 0564.602 PAINT HSSG (ffANDICAPPED S'l'HBOLI EPOXY 2 EA so. 00 100.00
41 0564.603 41i SOLID LINE - WHITE PAINT 400 L.F. 0.50 200.00
42 257'1.541 TIWfSPlANT TREE 3 TREE 500.00 JOO.OO
43 251'3.502 SILT FlHCE. "fAn DUTY 1300 L.F. 3.00 3,900.00
44 ~.S01 SEEDING 1.6 ACRE 1.000.00 1.600.00
45 257S.50S SODDING TYPE LAWN 3220 SQ. 'I'D. Z.25 7,245.00
46 2611.502 CONNECT TO exISTING WATER MAIN 1 EACIi 500.00 500.00
47 2611.502 IITDRANT 1 EA 1,300.00 1,300.00
48 2611.502 61f GATE VALVE AND BOX 1 EACH sac. 00 500.00
49 2611.502 6" x 12" WET TAP UNCL. VALVE) , EA 1,sao.ao 1,500.00
50 2611.503 6. DIP CL 52 Sit L. F. 25.00 2,100.00
OF 2
ZOc3: OOSSV HSO* ATTACHMENT 2
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MEMORANDUM
TO:
FROM:
DAlE:
RE:
Fll..E NO.
MAYOR
Robert Bean
COUNCIL
Kristi Slover
Bruce Benson
Jennifer McCarty
Doug Malam
CITY OF
SHOREWOOD
5755 COUNTRY CLUB ROAD. SHOREWOOO. MINNESOTA 55331..8927 · (612) 474.3236
Mayor and City Council
Brad Nielsen
26 April 1996
Senior Center - Final Plans
405 (95.07)
With the exception of the landscape plan, final plans have been submitted for the South
Shore Senior Center. Based on our review of these plans they are considered to be
generally consistent with the approved conditional use pemrit for the center. There is one
change worth noting, however. The original site plan included a small parking lot located
immediately west of the Badger Well building. This was necessary to meet the parking .
space requirement in the Zoning Code and to provide an adequate turn-around for fire
trucks. As you can see on the attached site plan (Exhibit A), this parking area has been
eliminated to reduce costs. The parking spaces have been replaced along the entry drive so
as to comply with the Code. With respect to emergency vehicles, the Fire Marshal has
indicated that if the southernmost landscape island in front of the building is reduced in
size, ftre trucks would be able to back "around it to get out. He has also recommended that
the entrance drive between the senior center parking area and the Badger Field parking be
posted "No Parking - Fire Lane". We have asked the Fire Marshal to put his comments in
writing, which should be available by Wednesday night's meeting.
Preliminary landscape plans which were approved with the conditional use permit (Exhibit
B) are not adequate for bidding purposes. At such time as the ftnal plan is submitted it
should include tree protection measures for existing trees in the northwest comer of the
property. Given the desire to expedite the bidding process, the Council may wish to
approve the plans and specs subject to approval of the landscape plan by the Planning
Director.
If you have any questions relative to the fmal plans, please do not hesitate to contact me
prior to Wednesday night's meeting. "
cc: Jim Hurm
Larry Brown
Rick Wessling
ATTACHMENT 3
A Residential Community on Lake Minnetbnka's South Shore
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REVISED SITE PLAN
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PRELIMINARY LANDSCAPE PLAN
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CITY OF SHOREWOOD
RESOLUTION NO. 96-_
A RESOLUTION APPROVING
PLANS, SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR
BIDS FOR THE SOUTHSHORE SENIOR COMMUNITY CENTER
WHEREAS, on April 30, 1996, the City Council authorized TSP/EOS
Architecture to prepare plans and specifications for the Southshore Senior Community
Center.
NOW, THEREFORE BE IT RESOLVED by the City Council of
Shorewood, Minnesota as follows:
1. That such plans and specifications, dated May 1, 1996, are hereby
approved.
2. That the City Engineer shall prepare and cause to be inserted in the official
newspaper and in "Construction Bulletin" an advertisement for bids upon
the making of such improvement under such approved plans and
specifications. The advertisement shall specify the work to be done, shall
state that bids will be received by the Clerk until 2:00 p.rn., on May 28,
1996, at which time they will be publicly opened in the Council Chambers
of the City Hall by the City Clerk, will then be tabulated, and will be
considered by the Council at 7:00 p.m. on June 10, 1996, in the Council
Chambers, and that no bids will be considered unless sealed and filed with
the Clerk and accompanied by a cash deposit, cashier's check, bid bond or
certified check payable to the Clerk for five per cent (5%) of the amount of
such bid.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF
SHOREWOOD this 1st day of May, 1996.
ROBERT B. BEAN, MAYOR
ATTEST:
JAMES C. HURM, CITY ADMINISTRATOR
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PrP.l;minary Only - Not for Construction
Submittal March 12, 1996
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CITY OF
SHOREWOOD
5755 COUNTRY CLUB ROAD. SHOREWOOD, MINNESOTA 55331-8927 · (612) 474-3236
MEMO
TO:
FROM:
DATE:
RE:
Mayor and Councilmembers
AI Rolek, Finance Director t1IJ--
April 30, 1996
Senior Center Financing
As you know, the City Council adopted a resolution approving the lease purchase
agreement with Norwest for financing the construction of the Southshore Senior
Community Center. The closing was anticipated to take place by the last day in April.
However, it was brought to my attention last week by our bond approving attorney, Steve
Bubul of Kennedy & Graven, that because the building is to be leased to a non-profit entity
rather than operated directly by the joint powers cities, we are required to hold a public
hearing. This is necessitated by federal regulations governing this type of public financing.
We are required to publish notice of the hearing at least fifteen days prior to the public
hearing. Due to the publishing schedule of our official newspaper and our Council meeting
schedule, May 28 is the earliest regular meeting date possible to hold the public hearing.
Following the public hearing, a new resolution would be adopted by the City Council
approving the lease-purchase agreement. We anticipate that the transaction with Norwest
would be closed on May 29, at which time the City would receive the money. It is not
anticipated that this delay would have an adverse affect on the interest rate, but we will
continue monitor the ~arket closely in this regard.
The construction budget calls for interest earned on the retained construction funds to be
used as an additional financing source for the project. The fund is to be established by May
4 to meet conditions of the joint power agreement, and to take full advantage of interest
earnings. In the interim period between fund establishment and actual receipt by the City of
dollars from Norwest at the end of May, the City may make a temporary transfer from the
General Fund balance to the Senior Center Construction Fund. The cost in lost interest to
. the City is basically a wash since we will not be paying interest on the lease funds during
this period.
I, therefore, recommend that the City Council set a public hearing for May 28 at 7:45 p.m.
on the issuance of a lease-purchase agreement for the Senior Community Center; further,
that the Council authorize a temporary transfer of its share of the cost of the construction
cost from the General Fund to the Senior Center Construction Fund until the lease money is
received.
cc: James Hurm
A Residential Community on Lake Minnetonka's South Shore
C:rn' OF SHOREWOOD]t MINNESOTA
NOTICE OF PUBLIC BEARING ON
ISSUANCE 01' LEASE-PURCBASE OBLIGATION
NOTICE IS HEREBY GIVEN that the City Council of the City of Sho:rewood,
Minnesota (the 1tCity1t), will meet OD. Tuesday, May 28, 1996, at 7:45 o'clock: p.m.,
at the City offices, 5755 Count'l'y Club Road, Shorewood, Minnesota, to conduct a
public hearing on a proposal that the City undertake to issue a lease-purchase
obligation in an amount up to approximately $:ll1,OOO (the 1tObligationfl), to finance
a portion of the cost of a senior comrnunity center (the "Project1t) to be owned jointly
by the cities of Deephaven, Excelsior,. Greenwood, Shorewood, and Tonka Bay. The
proposed Project will be leased to Friends of the South Lake Minnetonka Senior
Centet', a Minnesota nonprofit corporation. The Project consists of the aequisition,
construction and equipping of an approximately 8,400 square foot commu:aity facility
located at 5735 Country Club Road in the City of Shorewood. The Obligation will be
a lease and purchase option by the City, as lessee, of the City's interest in the
Project, subject to the City's annual right of non-appropriation and termination of
the Obligation.
All pet'Sons interested may appear and be heard at the time and place set forth
above.
Dated: [Date of publication]
9
CITY OF SHOREWOOD, MINNESOTA
By Is/ James Hurm
City Administrator
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CITY OF
SHOREWOOD
5755 COUNTRY CLUB ROAD. SHOREWOOD, MINNESOTA 55331.8927 · (612) 474-3236
MEMO
TO:
FROM:
DATE:
RE:
Mayor and Councilmembers
AI Rolek, Finance Director C2Il..-
April 30, 1996
Senior Center Financing
As you know, the City Council adopted a resolution approving the lease purchase
agreement with Norwest for financing the construction of the Southshore Senior
Community Center. The closing was anticipated to take place by the last day in April.
However, it was brought to my attention last week by our bond approving attorney, Steve
Bubul of Kennedy & Graven, that because the building is to be leased to a non-profit entity
rather than operated directly by the joint powers cities, we are required to hold a public
hearing. This is necessitated by federal regulations governing this type of public financing.
Weare required to publish notice of the hearing at least fifteen days prior to the public
hearing. Due to the publishing schedule of our official newspaper and our Council meeting
schedule, May 28 is the earliest regular meeting date possible to hold the public hearing.
Following the public hearing, a new resolution would be adopted by the City Council
approving the lease-purchase agreement. We anticipate that the transaction with Norwest
would be closed on May 29, at which time the City would receive the money. It is not
anticipated that this delay would have an adverse affect on the interest rate, but we will
continue monitor the ~arket closely in this regard.
The construction budget calls for interest earned on the retained construction funds to be
used as an additional financing source for the project. The fund is to be established by May
4 to meet conditions of the joint power agreement, and to take full advantage of interest
earnings. In the interim period between fund establishment and actual receipt by the City of
dollars from Norwest at the end of May, the City may make a temporary transfer from the
General Fund balance to the Senior Center Construction Fund. The cost in lost interest to
. the City is basically a wash since we will not be paying interest on the lease funds during
this period.
I, therefore, recommend that the City Council set a public hearing for May 28 at 7:45 p.m.
on the issuance of a lease-purchase agreement for the Senior Community Center; further,
that the Council authorize a temporary transfer of its share of the cost of the construction
cost from the General Fund to the Senior Center Construction Fund until the lease money is
received.
cc: James Hurm
A Residential Community on Lake Minnetonka's South Shore