City Council - 12/01/1981 APPROVED MINUTES
EDEN PRAIRIE CITY COUNCIL
TUESDAY, DECEMBER 1 , 1981 7:30 PM, CITY HALL
COUNCIL MEMBERS: Mayor Wolfgang H. Penzel , George Bentley, Dean
Edstrom, Paul Redpath and George Tangen
COUNCIL STAFF: City Manager Carl J. Jullie, City Attorney Rick
Rosow, Finance Director John D. Frane, Director
of Community Services Bob Lambert, City Engineer
Eugene A. Dietz , and Recording Secretary Karen
Michael
INVOCATION: Councilman George Bentley
PLEDGE OF ALLEGIANCE
ROLL CALL: Councilman Paul Redpath was absent.
I . APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS
The following items were added to the Agenda : VI . C. _ 2nd Reading of Ordinance
No. 81-27, Wooddale Baptist Church and VII I . 1 . Update on Governor' s Sudcet Cuts
and Thei r Impact on: _the _198_2 Ciy Budget.
MOTION: Bentley moved, seconded by Tangen , to approve the Agenda as amended and
published. Motion carried unanimously.
II . CONSENT CALENDAR
A. Clerk' s License List
B. Chan�c a Order for Communi ty Center
C. 2nd Reading of Ordinance No. 81-30, amending Ordinance No. 280, utility rates
D. Receive petition for Autumn Woods (Phase I Improvements and authorize feasi -
bi 1 y re�ort,� I .C..__52-016A Resolution No . 81-23�_ located at TH 101 north
of railroad tracks T
E. Receive 100 petition from ADI for interior public im rovements to City West
and authorize_pl_ans and specifications , I .C. 52-025 . Resolution No. 81-238
F. Receive Petition from ADI for improvements to Shady Oak Road and authorize
pre_ aration of feasibility report, I.C . 52-026 Resolution No. 81-239
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G. Approve change order for Franlo Road Improvements, I .C. 51-331 (Franlo
west of Preserve Boulevard
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H. Approve...change order for Willow Creek Road west of Flying Cloud Drive,
I .C. 51-382 -
MOTION: Edstrom moved, seconded by Bentley, to approve items A - H on the
Consent Calendar. Motion carried unanimously.
III. PUBLIC HEARINGS
A. Feasibility report for improvements for Westwood Industrial Park and
adjacent Properties, I .C. 52-015 Wesolution No. 81-237 Located south
of CSAH 62, between Baker and Industrial Drive
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City Manager Jullie stated Richard Anderson had requested this item
be continued for two weeks to allow time for details of the purchase
agreement on this property to be finalized. Al Michaels of Bury and
Carlson and John Shardlow,representing Franklin National Bank.,agreed ,
to the postponement.
MOTION: Edstrom moved, seconded by Tanaen, to continue this item to
the December 15, 1981 , meeting of the City Council at the request of
Richard Anderson. Mot ion carried unanimously.
IV. PAYMENT OF CLAIMS NOS. 9272 - 9517
MOTION: Bentley moved, seconded by Tangen, to approve Payment of Claims
Nos. 9272 - 9517. Roll call vote: Bentley, Edstrom, Tangen and Penzel
voted "aye. " Motion carried unanimously.
V. APPOINTMENTS
A. Appointment of citizen representatives to the Housing Task _Force
Penzel said letters had been received from Elayne Renier and Mike. Best.
Representing various commissions are: Jerry Kingrey, Parks , Recreation &
Natural Resources Commission; Bill Behrenbrinker, Development Commission
(Kent Barker will be the alternate) ; William Bearman and Hakon Torjesen,
Planning Commission; Duane Pidcock, Human Rights & Services Commission;
and George Bentley and Paul Redpath, City Council . Penzel suggested nom-
inations remain open since it is not expected the Task Force will meet
until January.
MOTION: Bentley moved, seconded by Edstrom, to approve the slate (above)
as read by Penzel and to keep nominations to the Housing Task Force open
for another month. Planning Director Enger will be an ex officio member
of the Housing Task Force. Motion carried unanimously.
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City Council Minutes -3 December 1, 1981
VI. ORDINANCES & RESOLUTIONS
A. 2nd Reading of Ordinance No. 81-20, rezoning from Rural to I-2 for West-
wood Industrial_ Park by Richard W. Anderson, Inc and developer's agreement
MOTION: Tangen moved, seconded by Edstrom, to continue this item to
the December 15, 1981 , Council meeting. Motion carried unanimously.
B. Resolution No. 81-240, granting pr,eliminar approval for Housing Revenue
Bonds for Edenvale^Apartments in the amount of 7,765,000.00
City Attorney Rosow addressed the Housing Revenue Bonds issue since it
is a new procedure for the Council .
Russell Prince, Juran & Moody, spoke to the proposal and introduced those
involved with the project who were in the audience: Scott Bader, Z & S
Management Co. ; James Cooperman , architect; Bill Brussman, Northland Mort-
gage Co. ; and Catherine Bartlett, bond counsel with the Dorsey firm.
Bentley asked if the rent of individual apartments would be affected because
of the means of financing. Prince said the rents charged would be reviewed
periodically by HUD and would have to be in line with the rents charged in
the community. Bentley asked if this type of funding were not available,
would the amount of rent charged be appreciably different. Brussman said
the project would not be financially feasible without this type of financing;
there is virtually no money available.
Edstrom asked if there is a limit on the rents charged to the subsidized
units but not on the other units. Brussman said there is , but it is all
based on the market.
Tangen asked what the breakdown was of subsidized units . Brussman said
there would be 6 one-bedroom units and the remained (29) would be two-bedroom
units. They would be scattered throughout the building.
Tangen asked about the recreational facilities in the area. Lambert said
the Edenvale East Neighborhood Park would be developed and would serve this
building. Tangen asked if this would be developed in conjunction with the
building. Lambert said it would be developed as occupancy occurs.
Penzel asked how Housing Revenue Bonds compare with Municipal Industrial
Revenue Bonds. Finance Director Frane said the guarantees by HUD and the
up-front money required makes the Housing Revenue Bonds less risky than the
Municipal Industrial Revenue Bonds . Penzel asked if there was a limit as
to the total sum of Housing Revenue Bonds which might be issued by a City.
Barlett said there is no limit, under State law, for multi-family.
83ntley said he is basically opposed to this concept of bonding. He noted
the need for subsidized housing has been expressed in Staff memos; however,
if the City is going to get into the housing business then the cost to the
renter should be reduced.
City Council Minutes -4 December 1 , 1981
Penzel noted this is a difficult market. He had met with Congressman Frenzel
earlier in the day at which time the matter of discretionary funds was
discussed and the fact they will be cut in 1982. Penzel said the questions
are: is there a market and is there a need to meet this market. Penzel
recognizes a need does exist and intends to vote in favor.
MOTION: Edstrom moved, seconded by Tangen, to adopt Resolution No. 81-240,
granting preliminary approval for Housing Revenue Bonds for Edenvale Apart
ments in the amount of $7,765 ,000.00 Motion carried with Bentley voting
no.
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C. 2nd Reading of Ordinance No . 81-27, Wooddale Baptist Church
Penzel said he was concerned because a signed Developer' s Agreement was a
not attached as is the customary policy prior to second reading of an
ordinance. City Manager Jullie said this item had been added to the
Agenda today, at the request of the developer, due to problems with their
closing date. r
Fred Hoisington, Brauer & Associates , said the closing date is the 18th.
Tangen said he does not like to vote on something he has not seen and
would be willing to attend a special meeting if the need to accommodate
Wooddale Baptist' s closing date posed a problem.
MOTION: Tangen moved, seconded by Edstrom, to continue this item to the
December 15, 1981 , meeting. Motion carried unanimously.
VII . REPORTS OF OFFICERS, BOARDS & COMMISSIONS
A. Reports of Council Members
Penzel - reported on his meeting with Representative Frenzel . The general'
message was that the money from Washington is going to be cut. Penzel said
the Council should schedule public hearings for early 1982 to receive citizen
input on where cuts might be made in the City Budget.
Edstrom - called attention to the meeting to be held on December 15, 1981 ,
by the Association for Metropolitan Municipalities to discuss Legislative
Policies for 1982.
B. Report of City Attorney_
There was no report.
C. Report of City Manager
1. Hennepin County_ Solid Waste System
City Manager Jullie spoke to his memorandum of November 27, 1981,
regarding correspondence from Hennepin County Commissioner Robb.
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City Council Minutes -5- December 1, 1981
Edstrom said it should be pointed out in further communications
that Eden Prairie already has a landfill and we have some concerns
about that landfill
Tangen said the impact of the truck traffic on the transportation
system should be noted. These vehicles do contribute to these pro-
blems and cause congestion.
Bentley inquired if any progress has been made for a monitoring system
to prevent disposal of hazardous waste. Edstrom said nothing specific
has been done.
D. Report of Director of Community Services
1. Staring Lake Park Trail draft easement with VoTech
Director of Community Services Lambert spoke to his memorandum of
November 24, 1981, which addressed this issue.
MOTION: Bentley moved, seconded by Edstrom, to approve the draft
easement agreement with Hennepin County VoTech regarding the proposed
trail around Staring Lake . Motion carried unanimously.
2. Update of City Trail Systeri-?-1an
Director of Community Services Lambert noted the plan was drafted as
a comprehensive guide for- future trail requirements . The update pre-
sented this evening is the update of the trails plan approved by the
Parks , Recreation and Natural Resources Commission .
Penzel asked why the soft-surface trails in floodplain areas were not
shown. Lambert said they can be added.
It was the consensus of the Council to have this item referred back to
Staff for further refinement.
3. Kiosk Information Center - Round Lake Park
Director of Community Services Lambert addressed his memorandum of
November 24, 1981, in which the Kiosk Information Center was discussed.
MOTION: Tangen moved, seconded by Edstrom, to authorize Staff to
proceed with the Kiosk Information Center at Round Lake Park and to
seek funding from sources other than City funds. Motion carried
unanimously.
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4. Neighborhood Park Shelter Program
Lambert, Director of Community Services, spoke to his memorandum
of November 24, 1981, in which he addressed the Neighborhood Park
Shel ter Program.
Edstrom suggested the City hold off because of the cost. Tangen
agreed the timing is not good. Neither is opposed to the program;
but with cost cutting being looked at in all areas , this is not
the time to embark on a program like this. Bentley felt it was pre-
mature to embark on any type of program for Park Shelters at this
time.
Penzel asked for some sketches which will contrast the types of
shelters under discussion .
By concensus this item was continued to the January 19, 1981 , meeting
of the Council .
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VIII . NEW BUSINESS
I. Update on Governor' s Budget Cuts and Their Impact on the 1982 City Budget
City Manager Jullie said he had received an "Action Alert" from the
League of Minnesota Municipalities outlining what might be expected in
the way of budget cuts . Local government aid in 1.982 will be cut by at
least 20. 70. To Eden Prairie this means $95 ,000 will be cut from our
f $452,000 local government aid allocation. The shade tree program will
C be cut; the percentages are not known yet, but we have budgeted $35,000
and expect to cut about $20,000 of that. Federal revenue sharing will be
cut at least 10% which will mean $15,400 of the $154,000 budgeted. This
amounts to about 3% of the total City budget or $130,000. Jullie stated
he would relay possible budget cuts in a memorandum to the Council . The
Legislature is looking at December 18, 1981 , as a target date for making
cuts.
Penzel said Congressman Frenzel had indicated the Federal government would
be cutting all Federal grant programs. Penzel said maybe a 10% cut is an
optimistic view. Bentley noted the public is becoming aware of the cost of
government services.
IX. ADJOURNMENT
MOTION: Tangen moved, seconded by Edstrom, to adjourn the meeting at 9:29
p.m. Motion carried unanimously,