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City Council - 02/02/1982 APPROVED MINUTES 4r EDEN PRAIRIE CITY COUNCIL TUESDAY, FEBRUARY 2, 1982 7:30 PM, CITY HALL i COUNCIL MEMBERS: Mayor Wolfgang H. Penzel , George Bentley, Dean Edstrom, Paul Redpath and George Tangen ` i i COUNCIL STAFF: City Manager Carl J. Jullie, City Attorney Roger Pauly, Finance Director John D. Frane, Planning Director Chris Enger, Director of Community Servic' Bob Lambert, Director of Public Works Eugene A. Dietz, City Forester Stuart Fox, and Recording Secretary Karen Michael INVOCATION: Mayor Wolfgang H. Penzel PLEDGE OF ALLEGIANCE i ROLL CALL: Councilman Dean Edstrom was absent E I . APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS The following items were added to the Agenda : III . C. Resolution for March 16, 1982 Liquor Referendum Resolution No. 82-33 ; IX. A. 1. Penzel - a. Uses at Community Center; and IX. A. 1. Penzel - b. Grill House. 4L MOTION: Redpath moved, seconded by Bentley, to approve the Agenda as amended and published. Motion carried unanimously. I II. MINUTES A. Joint City Council/Development Commission. Meeting held Tuesday, January 19, 198 r MOTION: Tangen moved, seconded by Redpath, to approve the minutes of the Joint City Council/Development Commission Meeting held Tuesday, January 19, 1982 as published. Motion carried unanimously. B. Regular City Council Meeting held Tuesday, January 19, 1982 MOTION: Redpath moved, seconded by Bentley, to approve the minutes of the City Council Meeting held Tuesday, January 19, 1982, as published. Motion carried unanimously. C. Special City Council Meeting held Tuesday, January 26, 1982 4 Add: Roll Call : Council members George Bentley and George Tangen were absent. page 1: I. Motion: change "Tangen" to "Redpath. " page 2: p.2. , first line: change "3" " to* "5" . "" III. Motion.: change '"Tangen" to "Redpath." IV. Motion: change "Bentley" to "Penzel ." City Council Minutes -2- February 2, 1982 MOTION: Redpath moved, seconded by Penzel , to approve the minutes of the Special City Council Meeting held Tuesday, January 26, 1982, as amended and published. Motion carried with Bentley and Tangen abstaining. III . CONSENT CALENDAR A. Clerk' s License List t B. Final plat approval for Eden Prairie Center 3rd Addition (Bank site at north- east corner of TH 169/Schooner Blvd. ) (Resolution No. 82-31) C. Resolution for March 16, 1982 Liquor Referendum (Resolution No. 82-33) R MOTION: Bentley moved, seconded by Redpath, to approve items A - C on the Consent Calendar. Motion carried unanimously. IV. PUBLIC HEARINGS A. Mitchell Lakes Estates 2nd Addition by Karl Peterson. Request to revise the COR PUD, rezone from Planned Study to Office, and preliminary plat 3 lots on approximately 4.21 acres, for construction of 3 office buildings . Located in the sost'lr;2st :quadrant of TH 5 and Co. Rd. 4 behind Superamerica Gas Station t (Resolution No. 82-25 - PUD; Ordinance No. 82-03 - Rezoning; and Resolution No. 82-26 - Preliminary Plat) Lee Johnson, representing the developer, addressed the proposal and reviewed past proposals for this site. Johnson said Peterson is anxious to begin j the project as he has outgrown his present location. ' i Planning Director Enger noted the Planning Commission had reviewed this proposal at its meeting on January 11, 1982. At that time the Planning Commis- sion voted to approve the proposal subject to Staff recommendations contained in the January 4, 1982, Staff Report and with the following additions : Outlot "A" should be deeded to the City; parking lot lighting should be no higher than 20' with cut-off luminars; and that approval be subject to site plan and building plan review by the Planning Commission if there are major changes to the plan. j The Planning Commission expressed concern about Outlot "A" regarding access by Superamerica. Bentley asked the width of the cul-de-sac road. Enger said it would be approximately 28' wide with a 50' right-of-way. Bentley asked what percentage of the most northerly building would be used by the printing facility. Johnson said about one third. Bentley inquired as to the zoning at Dr. Bonnett's pre- sent Veterinary Clinic. Enger said it is either Regional Service or Office -- in this case the zones over-lap that category. MOTION: Bentley moved; seconded by Redpath, to close the Public Hearing and to adopt Resolution 82-25, approving the Mitchell Lake Estates Second Addition Planned Unit Development and Amending the Guide Plan. Motion carried unanimously. City Council Minutes -3- February 2, 1982 MOTION: Bentley moved, seconded by Redpath, to give 1st Reading to Ordinance 82-03, rezoning from Planned Study to Office. Motion carried unanimously. MOTION: Redpath moved, seconded by Bentley, to adopt Resolution 82-26, app roving oving the preliminary plat of Mitchell Lake Estates 2nd Addition subject to the recommendations contained in the January 4, 1982. Staff Report and Planning Commission. Motion carried unanimously. MOTION: Bentley moved, seconded by Redpath, to direct Staff to draft a i Developer's Agreement including the recommendations of the Staff and Planning Commission. Motion carried unanimously. B. Public Hearing on proposed improvements on Mitchell Road and Technology Drive, I .C. 52-010 Resolution No. 82-32, ordering improvements City Manager Jullie noted the dates of the published notices regarding this Public Hearing and stated notices had been sent to all the owners of record which would be included in the assessment area. Director of Public Works Dietz spoke to the proposal . The area included was divided into five segments for purposes of discussion. These were: "A" - Wallace Road on the west to the east property line of SGL; "B" - the east ` property line of SGL to Mitchell Road; "C" - Mitchell Road east to Purgatory Creek; "D" - Purgatory Creek east to Schooner Boulevard; and "E" - Mitchell Road from Highway 5 south to Scenic Heights. This project was started by a petition regarding the feasibility of a cul-de-sated road from Mitchell Road west to the western property line of CPT. At about the same time a petition was received from MTS asking the City to look at the feasibility of extending the roadway from Mitchell Road to Schooner Boulevard. Also at this time the City was considering expansion of facilities on Mitchell. Road and it was de- termined this could be included in the project. Costs for the various segments are estimated to be: "A" - $438,000; "B" - $335,000; "C" - $802,000; "D" - $894,000; and "E" - $694,090; for a grand total of $3,200,000. The assessments would be spread out over a 17 year period. Dietz noted that segment "D" has some major soil problems. It would be, according to the feasibilty report, advantageous not to construct that segment at this time thereby allowing some soil consolidation time which would hold down costs. Dietz said the Council might wish to discuss the method of assessing segment "A." If changes are made in the method of assessing "A" then the Public Hearing on that portion would have to be continued to a later date. Bentley asked about the intersection of Technology Drive and Schooner Boulevard. Dietz said it is shown to be a 90 degree intersection. Tangen inquired as to whether or not signals are planned at the intersection of TH 5 and Wallace Road. Dietz said a consultant had investigated that possi- bility but the State feels the signals are not warranted at this time. Also, channelization would have to be done in conjunction with a signalization pro- ject. Costs prohibit that at this time. City Council Minutes -4- February 2, 1982 Penzel noted land would become developable in segment "D" which would make that portion assessable to those properties . He asked that this be looked into further. Chuck Kozar, General Manager and Vice President, J. E. Braas Co. , 7970 Wallace Road, asked if any surveys had been made of employees in the Wallace Road area and where they live. Penzel stated not only the employees would be using Technology Drive but also suppliers and customers. Penzel noted the decisions to be made this evening are to determine whether or not the project is feasible and whether or not it is in repsonse to a community need. The actual decision on how to assess the project costs will be determined at a later date at an assessment hearing. 1 Bentley asked if any traffic surveys had been made relative to the heavy school bus traffic on Wallace Road. Wallace Neal , Neal Slate Company, 7975 Wallace Road, said he came tonight to lobby for a signal at TH 5. He would like the City to continue its efforts to see one is installed at that intersection. Penzel said the signalization t of this intersection has been in the plans for years, but has not yet reached ` } the top of the priority list. Dick Kast, Executive Vice President, Metro Machine and Engineering Corp. , 8001 Wallace Road, felt Metro Machine would not benefit from the roadway under discussion. He favors a signal at TH 5 and Wallace Road. Dora Penning, S.M. Osgood Company, 7960 Wallace Road, questioned congestion which might develop at the new intersection of Technology Drive and Mitchell Road. Neal said the people north of TH 5 have a hard time getting in and out of that, area -- that area is becoming more and more congested all the time. Tim Pierce, 16669 Honeysuckle Lane, stated the board of the Eden Prairie Unite Methodist Church has not had an opportunity to review this. Peter Beck, representing CPT, said they had petitioned for section "B" of the project and support construction of that segment. They have been taken aback 5 by the cost of the project. It is their feeling that segment "A" is not reall. necessary; if "A" were not built, segment "B" would not have to be as wide as it is shown; they question whether a 5' sidewalk is really necessary. They dol not oppose the road and do not wish to hold up construction as they hope the new road is open when the addition to their building is ready. . John Otterlei , 4704 Merilane, Edina, said he cannot see the benefit of segment "A" and would prefer to see a semaphore at TH 5 and Wallace Road. Paul Strand, representing MTS, said his company had petitioned for segment "C and they support the project. They would like to see segment "D" pursued at the earliest possible time. They are concerned that development will be delay ' if segment "D" is not undertaken - Mitchell Road traffic is increasing. 1 City Council Minutes -5- February 2, 1982 Penzel said perhaps the Council might wish to consider reviewing segment "A" and reexamining the assessment portion of segment "D. " MOTION: Bentley moved, seconded by Tangen, to continue the Public Hearing on segments "A" and "D" to March 2, 1982; to close the Public Hearing on segments "B" , "C" , and "E" and to adopt that portion of Resolution 82-32 which orders utility and street improvements for segments "B" , "C" , and "E. " Motion carried unanimously. Bentley asked for more specific information on a time line for segment "D" (relative to compaction, etc. ) k Tangen requested Staff to check on the possible signalization of Wallace j Road and TH 5. C. Removal of diseased elm trees from private property_ (Resolution No. 82-28) City Manager Jullie reviewed the procedure for removing diseased elm trees from private property. Bentley asked what the assessment period is . City Forester Fox said the normal period is one year. City Attorney Pauly said a provision of the Ordinance is that the period of assessment is not to exceed five years, Jullie noted the Council 's option regarding the assessment period is usually determined at the assessment hearing in the Fall . F Joe Dolejsi , 6445 West 192nd, said he was not able to get to the diseased trees on his property until his crops were out and this was not possible last Fall . Because of the weather conditions this Winter, he has not been able to remove the trees but hopes to have them out by the end of March or the 15th of April , weather permitting. Fox said April lst is the deadline according to State Law. Bentley asked if the contractors who do the tree removal would be delayed due to the weather conditions this year, Fox said this a slow time of year for these particular contractors and the cost is lower as a result. The snow cover would not be a factor. Fox will work with Dolejsi on his specific problem. Fox will advise the Council of any problems which still exist at the time of the March 16, 1982, Council Meeting. MOTION: Tangen moved, seconded by Bentley, to close the Public Hearing and to adopt Resolution 82-28, ordering a public improvement for the removal of diseased elm trees. Motion carried unanimously. 0. Request for Municipal Industrial Development Bonds in the amount of 2,800,000.00 for Twin City Christian Homes Resolution No. 82-30 Bruce Farrington, President, Twin City Christian Homes , spoke to the request. Farrington introduced Clayton Stranlie and Donna Smiler of Miller & Schroeder Municipals, Inc. ; Dan Bloomquist, Corporate Counsel Jerry Stifter, McGladrey, Hendrickson & Co. , who was responsible for the feasbility study; Elsworth Johnson, Board Chairman of First American Companies , health care consultant; Barry Rose who represents the developers; and Dan Heredon and Michael Contact who are with the project, City Council Minutes -6- February 2, 1982 Farrington stated Twin City Christian Homes is affiliated with the Minnesota Baptist Conference. The fifteen members of the Board of Twin City Christian Homes are all voluntary members appointed by the Conference Stewards representing a cross-section of occupations. Twin City Christian Homes has agreements to: 1) develop, own, and operate the nursing home facility; 2) manage the condominium project subject to ratification by the honeowner's association; and 3) provide resident ser- vices to residents of the condominiums. Farrington said they would like to start construction on the building this Spring; construction would take about one year. The facility will have 60 beds and would be about 22,000 ! square feet in area. Farrington noted they have been incorporated since f 1970 and this is their first project. s Clayton Stranlie spoke to the private placement versus public offering question noting the private placement market is not good at this time and the interest rates are high. { Finance Director Frane said he had reviewed the figures supplied by McGladrey, Hendrickson& Co. with auditors for the City and had found the cash flow situ- ation on the preliminary report to be 'reasonable. Bentley asked if Twin City Christian Homes had received approval from the Metropolitan Council for this facility. Farrington said they had obtained a "Certificate of Need" from the State Department of Health. City Attorney Pauly asked Farrington if the. Baptist Conference would be in a position to provide the City with an indemnification agreement ,if this were L a public issue,to cover any losses which the City might sustain as a result of the issue. Dan Bloomquist, corporate counsel , said it is not a question of whether or not they could indemnify the agreement, but rather one of procedure3 -- the question has not been posed to them in that way. Pauly asked what assurances will Twin City Christian Homes have prior to the sale of bonds that the project will be built and completed within the budget. Farrington said they have a contract with Abio Debco for a fixed price and that price will hold unless the bids come in at 5% over that; they would not close on the financing until the bids are in. On the equipment they already have a fixed price. Pauly noted that the City will be getting an indemnificat agreement on a project which will be coming up later on tonight' s Agenda. Bentley said he has a problem with the equipment item since the policy has been not to approve equipment. Frane said the amount of equipment in relation to the total amount of the bond is rather small . A spokesman for the proponent noted the reimbursement structure is such that it must be spread out over a ter year period. Bentley inquired further about the necessity for indemnification. Pauly said the financial responsibility of this entity has not been proven; its assests are only those which are included in this package. If the project should not be successful , the purchasers would be looking for a solvent entity. The probability is that there would be no financial' loss to the City, but there is also the possibility that a class action suit could be pioneered. If the member churches were able to provide the City with an indemnification agreement, it would provide the City with a good deal of comfort. City Council Minutes -7- February 2, 1982 Bloomquist said indemnification could be taken up with the Conference. He said the likelihood of any exposure by the City is limited due to the nature of Industrial Revenue Bonds. Penzel noted that although the City "a must proceed on good faith, the concerns must be addressed. Bloomquist said the Conference is behind the project by way of approvin Twin City y Christian Homes. He asked if indemnification would be for 1� the expenses { of the City, or 2) the total project. Farrington expressed concern about the length of time it would take for the Conference to act upon an indemni- fication agreement and which would then make it impossible to begin construc- i tion according to their present time table. jPauly said indemnification to the City of any losses which would be sustained d as the result of any liability to the bond holders who might prevail in an } action against the City is what he was referring to. Farrington said their problem in agreeing to obtain indemnification is the major uncertainty in getting this in six weeks and the fact that major costs will be incurred in the next six to eight weeks . Ellsworth Johnson noted getting indemnification would require an annual meeting of the Conference. Farrington said the con- 1 S tingencies would make the project almost impossible and would be a significant burden. ' MOTION: Redpath moved, seconded by Tangen, to close the Public Hearing and y to adopt Resolution 82-30, giving preliminary approval to Twin City Christian i Homes for MIDB' s in the amount of $2,600,000.00. Motion carried unanimously. t E. Adoption of City Comprehensive Guide Plan and Housing Assistance Plan (Reso- lution No. 82-27 MOTION: Tangen moved, seconded by Bentley, to close the Public Hearing and to adopt Resolution 82-27, adopting the Eden Prairie Comprehensive Guide Plan Update and Housing Assistance Plan. Motion carried unanimously. V. PAYMENT OF CLAIMS NOS. 10216 - 10378 MOTION: Tangen moved, seconded by Redpath, to approve Payment of Claims Nos. 10216 - 10378. Roll call vote: Bentley, Redpath, Tangen and Penzel voted "aye. " Motion carried unanimously. VI . REPORTS OF ADVISORY COMMISSIONS There were none. VII . PETITIONS, REQUESTS & COMMUNICATIONS A. Request to set Public Hearing for February 16 , 1982, for Liquor License submitted by Abby' s Restaurant Enterprises MOTION: Redpath moved, seconded by Bentley, to set February 16, 1982, as the date for a Public Hearing for a liquor license submitted by. Abby' s Restaurant Enterprises. Motion carried unanimously. Penzel requested the City Attorney to check on the seating capacity of the restaurant in light of City Ordinances and whether or not there is any reference to distance from churches in the State Statutes. 4 City Council Minutes -8- February 2, 1982 VIII . ORDINANCES & RESOLUTIONS A. Final approval for Municipal Industrial Development Bonds in the amount of 2,OOO,000.00 for Parker-Hannifin i ` Finance Director Frane spoke to his memo of January 26, 1982, which reviewed the request by Parker-Hannifin. Clark Harvey, bond counsel representing Parker-Hannifin, was present. MOTION: Redpath moved, seconded by Tangen, to adopt Resolution 82-29, granting final approval for Parker-Hannifin Corporation for MIDB's in the amount of $2,000,000.00. Motion carried unanimously. ` IX. REPORTS OF OFFICERS, BOARDS & COMMISSIONS A. Forts of Council Members 1. Penzel- a. Uses at Community Canter: Penzel said he has received a request to use the conference rooms at the Community Center for ping pong. He had also discussed with Chuck Pappas , Community Center Manager, the installation of video games at the Center. The pros and cons of the video game proposal were discussed and it was determined the Center should be used for active as opposed to passive recreation; although the revenue from the games would be substantial , the problems of supervision do not warrant them at this time. The concensus was to provide an area for ping pong as well as the necessary equipment. b. Grill House: Penzel said he has heard rumors that a 9 committee is about to be created to renovate the Grill House. Because it is a City owned building, Penzel felt it would be wise to convey to the Historical and Cultural Commission that they make recommendations to the Council as to whom should be appointed to this committee. The Council will ask the Historical and Cultural Commission for their recom mendations and will appoint a committee in the near future. B. Report of City Attorney City Attorney Pauly spoke to his memorandum of February 2, 1982, in which he addressed the besignation of Official Newspaper. He noted that affidavits indicate both newspapers qualify as legal newspapers: The Prairie Register has not published a Statement of Ownership. Rolfsrud's affidavit (Eden Prairie Nei has been filed with the County Auditor making it prima facie evidence. The Eden Prairie (News is therefore a legal newspaper. MOTION: Bentley moved, seconded by Tangen , to ratify the action taken at the January '5, 1982, meeting of the City Council designating the Eden Prairie News as the City's legal newspaper. Motion carried unanimously. Ted Allen, attorney for the Prairie Register, requested a copy of the affidavi' filed by the Eden Prairie News. City Council Minutes -9- February 2, 1982 r C. Report of City Manager 1 . Set Public Hearing for Review of 1982 Budget Adjustments Tangen requested Staff take another look at the reduction in the tree program and the dust oiling of gravel roads prior to the Nearing. MOTION: Redpath moved, seconded by Tangen, to set February 16, 1982, as the date for review of the 1982 budget adjustments. Motion carried unanimously. 2. Update on Landfill Expansion Proposal City Manager Jullie recommended that Donohue & Associates , Inc. be retained by the City as engineering experts to advise the City regarding technical aspects of the proposed landfill expansion. Fee would be based upon actual hours of service provided plus incidental expenses. All costs related thereto would be charged to an escrow deposit supplied by BFI at j time of application. MOTION: Redpath moved, seconded by Bentley, to hire Donohue & Associates , Inc. as engineering experts as recommended by City Manager Jullie; to request a $20,000 escrow deposit from BFI to be used for consultant ser- vices; and to authorize Staff to obtain the necessary documentation prior to acceptance of BFI ' s application for expansion. Motion carried unanimously. 3. Discussion of Richfield/Eden Prairie Combined Police Dispatching Captain Keith Wall was present to discuss the memorandum of December 18, 1981, regarding the issue of the police dispatching system. He noted the j Richfield Police Department' s philosophy of operation is very similar to that of the Eden Prairie Department and therefore their operations would + be compatible. MOTION: Bentley moved, seconded by Redpath, to ask City Manager Jullie to write a letter to the City of Richfield requesting a Resolution from the Richfield City Council expressing their interest in establishing a joint powers operation regarding police dispatching. Once approval has been indicated by the City of Richfield, Staff should proceed with the selection of a consultant to conduct a feasibility study of a possible Richfield/Eden Prairie radio cluster arrangement. Motion carried unani- mously. X. NEW BUSINESS There was none. . XI. ADJOURNMENT MOTION: Redpath moved, seconded by Tangen, to adjourn the meeting at 11:03 p.m. Motion carried unanimously. 4