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HomeMy WebLinkAboutCity Council Minutes 03-21-1994MINUTES REGULAR COUNCIL MEETING MARCH 21, 1994 The regular meeting of the Plymouth City Council was called to order by Mayor Tierney at 7:00 p.m. in the Council Chambers of the City Center, 3400 Plymouth Boulevard, on March 21, 1994. PRESENT: Mayor Tierney, Councilmembers Edson, Anderson, Lymangood, Helliwell, and Granath ABSENT: Councilmember Morrison STAFF PRESENT: City Manager Johnson, Assistant City Manager Lueckert, Community Development Director Hurlburt, Public Works Director Moore, Park Director Blank, Public Safety Director Gerdes, Finance Director Hahn, Fire Chief Kline, Planning Supv. Senness, Risk Management Coordinator Pemberton, City Attorney Barnard, and City Clerk Rauenhorst ITEM 3 PLYMOUTH FORUM No one appeared for the Plymouth Forum. ITEM 4-A OATHS OF OFFICE - FIREFIGHTERS Fire Chief Kline introduced four firefighters who have successfully completed their one year probationary training period and are now considered regular appointed firefighters. Clerk Rauenhorst administered oaths of office to John Blake, David Fasching, Gretchen Hurr, and Dwayne Tollefson. POEM 4-B RECOGNIZE HOMEOWNER ASSOCIATION WINNERS Mayor Tierney recognized representatives of Chelsea Woods and Creekside of Plymouth homeowner associations for receiving 1993 Association of the Year Awards in the national contest sponsored by the Community Association Institute. ITEM 4-C REPORT FROM STATE AUDITOR City Manager Johnson reviewed the conclusions and recommendations contained in the State Auditor's report received by the Mayor and Councilmembers on Plymouth employee compensation practices. Regular Council Meeting March 21, 1994 Page 2 MOTION was made by Councilmember Anderson, seconded by Councilmember Edson, to table the State Auditor's report on employee compensation practices to Item 9 -AA. Councilmember Lymangood suggested that the Council could receive the report at this time and also add the item for discussion later on the agenda. SUBSTITUTE MOTION was made by Councilmember Edson, seconded by Councilmember Anderson, to receive the State Auditor's report on employee compensation practices and table the item for further discussion to Item 9-A-1. Motion carried, six ayes. ITEM 5 APPROVE AGENDA MOTION was made by Councilmember Granath, seconded by Councilmember Helliwell, to approve the agenda. Motion carried, six ayes. ITEM 6 CONSENT AGENDA Items 6-A, 6-F, 6-K, 6-R, 6-V, and 6-W were removed from the Consent Agenda and moved for discussion to follow Item 8-A. MOTION was made by Councilmember Helliwell, seconded by Councilmember Granath, to adopt the Consent Agenda as amended. Motion carried, six ayes. ITEM 6-B APPROVE DISBURSEMENTS MOTION was made by Councilmember Helliwell, seconded by Councilmember Granath, to adopt RESOLUTION 94-141 APPROVING DISBURSEMENTS FOR THE PERIOD ENDING MARCH 11, 1994. Motion carried, six ayes. ITEM 6-C RENEW GARBAGE HAULER LICENSES MOTION was made by Councilmember Helliwell, seconded by Councilmember Granath, to adopt RESOLUTION 94-142 RENEWING GARBAGE HAULER LICENSES. Regular Council Meeting March 21, 1994 Page 3 Motion carried, six ayes. ITEM 6-D RENEW CONSUMPTION AND DISPLAY LICENSES MOTION was made by Councilmember Helliwell, seconded by Councilmember Granath, to adopt RESOLUTION 94-143 APPROVAL OF CONSUMPTION AND DISPLAY LICENSES. Motion carried, six ayes. ITEM 6-E APPROVE TAXI DRIVER LICENSE MOTION was made by Councilmember Helliwell, seconded by Councilmember Granath, to adopt RESOLUTION 94-144 APPROVING TAXI DRIVER LICENSE FOR BRENDA RAE PIIS. Motion carried, six ayes. ITEM 6-G METROOUIP. INC. - CONDITIONAL USE PERMIT (94015) MOTION was made by Councilmember Helliwell, seconded by Councilmember Granath, to adopt RESOLUTION 94-149 APPROVING CONDITIONAL USE PERMIT FOR METROQUH', INC., LOCATED AT 25TH AVENUE NORTH JUST WEST OF CHESHIR LANE (94015). Motion carried, six ayes. ITEM 6-H BILL HICKS & CO. - MPUD FINAL PLAT FOR PARKERS LAKE CORPORATE CENTER 4TH ADDITION (93139) MOTION was made by Councilmember Helliwell, seconded by Councilmember Granath, to adopt RESOLUTION 94-150 APPROVING MPUD FINAL PLAT FOR BILL HICKS AND COMPANY, LTD., FOR PROPERTY LOCATED AT THE SOUTHWEST CORNER OF 23RD AVENUE NORTH AND NIAGARA LANE NORTH (93139). Motion carried, six ayes. Regular Council Meeting March 21, 1994 Page 4 MOTION was made by Councilmember Helliwell, seconded by Councilmember Granath, to adopt RESOLUTION 94-151 SETTING CONDITIONS TO BE MET PRIOR TO FILING OF THE RELATED MPUD FINAL PLAT FOR BILL HICKS AND COMPANY, LTD., FOR PROPERTY LOCATED AT THE SOUTHWEST CORNER OF 23RD AVENUE NORTH AND NIAGARA LANE NORTH (93139). Motion carried, six ayes. ITEM 6-I REUBEN PRODAHL - LOT CONSOLIDATION (94013) MOTION was made by Councilmember Helliwell, seconded by Councilmember Granath, to adopt RESOLUTION 94-152 APPROVING LOT CONSOLIDATION FOR REUBEN PRODAHL AT 10020 26TH AVENUE NORTH (94013) Motion carried, six ayes. ITEM 6-J STUDY AFFORDABLE HOUSING AVAILABILITY MOTION was made by Councilmember Helliwell, seconded by Councilmember Granath, to adopt RESOLUTION 94-153 DIRECTING STAFF TO STUDY THE AVAILABILITY OF AFFORDABLE HOUSING IN PLYMOUTH. Motion carried, six ayes. ITEM 6-1, CHANGE ORDER NO. 2, 1993 STREET RECONSTRUCTION PROJECT 301 MOTION was made by Councilmember Helliwell, seconded by Councilmember Granath, to adopt RESOLUTION 94-154 APPROVING CHANGE ORDER NO. 2,1993 STREET RECONSTRUCTION, CITY PROJECT NO. 301. Motion carried, six ayes. ITEM 6-M SET HEARING ON VACATION OF EASEMENTS IN PLYMOUTH HILLS 3RD ADDITION (94017) MOTION was made by Councilmember Helliwell, seconded by Councilmember Granath, to adopt RESOLUTION 94-155 ORDERING PUBLIC HEARING ON THE PROPOSED VACATION OF A DRAINAGE AND UTILITY EASEMENT, LOTS 4 AND 5, BLOCK 1, PLYMOUTH HILLS 3RD ADDITION. Regular Council Meeting March 21, 1994 Page 5 Motion carried, six ayes. ITEM 6-N APPROVE CONSENT TO PUBLIC TRAIL EASEMENT ALONG NORTHERLY LINE OF BASS CREEK BUSINESS PARK MOTION was made by Councilmember Helliwell, seconded by Councilmember Granath, to adopt RESOLUTION 94-156 CONSENT TO PUBLIC TRAIL EASEMENT, BASS CREEK BUSINESS PARK 2ND ADDITION. Motion carried, six ayes. ITEM 6-0 AGREEMENT WITH MNDOT FOR SAFETY IMPROVEMENT PROJECT AT HIGHWAY 55 AT NORTHWEST BLVD., PROJECT 210 MOTION was made by Councilmember Helliwell, seconded by Councilmember Granath, to adopt RESOLUTION 94-157 APPROVING AGREEMENT, CITY OF PLYMOUTH AND MINNESOTA DEPARTMENT OF TRANSPORTATION, HIGHWAY 55/XENIUM LANE IMPROVEMENTS. Motion carried, six ayes. ITEM 6-P APPROVE PURCHASE OF REPLACEMENT UTILITY VEHICLE MOTION was made by Councilmember Helliwell, seconded by Councilmember Granath, to adopt RESOLUTION 94-158 AUTHORIZING TRANSFER OF FUNDS AND PURCHASE, FIRE DEPARTMENT UTILITY VEHICLE. Motion carried, six ayes. ITEM 6-O SET ASSESSMENT HEARING FOR 1993 TREE REMOVAL ROLL 2 MOTION was made by Councilmember Helliwell, seconded by Councilmember Granath, to adopt RESOLUTION 94-159 DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR 1993 REMOVAL AND DESTRUCTION OF DISEASED TREES, ROLL 2. Motion carried, six ayes. MOTION was made by Councilmember Helliwell, seconded by Councilmember Granath, to adopt RESOLUTION 94-160 PUBLIC HEARING ON PROPOSED ASSESSMENT, 1993 REMOVAL AND DESTRUCTION OF DISEASED TREES, ROLL 2. Regular Council Meeting March 21, 1994 Page 6 Motion carried, six ayes. ITEM 6-S CHANGES TO EMPLOYEE FLEXIBLE BENEFIT ACCOUNT PLAN MOTION was made by Councilmember Helliwell, seconded by Councilmember Granath, to adopt RESOLUTION 94-161 APPROVING CHANGES TO EMPLOYEES FLEXIBLE BENEFIT ACCOUNT PLAN. Motion carried, six ayes. ITEM 6-T AWARDING BID FOR TREE AND STUMP REMOVAL MOTION was made by Councilmember Helliwell, seconded by Councilmember Granath, to adopt RESOLUTION 94-162 AWARDING BID FOR THE 1994 TREE AND STUMP REMOVAL CONTRACT. Motion carried, six ayes. ITEM 6-U RENTAL OF PLYMOUTH CREEK AMPHITHEATER MOTION was made by Councilmember Helliwell, seconded by Councilmember Granath, to adopt RESOLUTION 94-163 APPROVING RENTAL AGREEMENT FOR CHRISTIAN MUSIC FESTIVAL. Motion carried, six ayes. ITEM S-A TRAFFIC CONCERNS ON PEONY LANE/19TH AVENUE/URBANDALE LANE/SHADYVIEW LANE Public Works Director Moore stated that Mr. Curtis Olson came before the Council at the February 28 Forum with concerns about speeding on Peony Lane, 19th Avenue, Urbandale Lane, and Shadyview Lane between County Road 6 and 26th Avenue. The City has previously installed signage in this area, but Mr. Olson has requested several additional measures to address speed, including installation of an "all -way" stop at 20th Avenue and Urbandale Lane. Curtis Olson, 18215 19th Avenue North, stated that speeding is the key issue, but an added problem is out of control vehicles. He has witnessed hit and run accidents, pedestrians jumping to the curb, dogs killed, and vehicles in his yard. He stated this is particularly a dangerous situation because this serves as the extension of the trail system. He suggested that in addition to the four-way stop at 20th Avenue and Urbandale Lane, the City consider installation of speed humps. Regular Council Meeting March 21, 1994 Page 7 MOTION was made by Councilmember Lymangood, seconded by Councilmember Granath, to adopt RESOLUTION 94-164 INSTALLATION OF STOP SIGNS, approving a four-way stop at Urbandale Lane and 20th Avenue for a one-year period to be reviewed by the Council no later than March 1, 1995. Councilmember Lymangood stated that staff had recommended reconsidering the issue in one year and then installing the four-way stop if the traffic situation has worsened. He would prefer that the Council authorize the installation now. If it is effective, the Council can make the installation permanent in one year. Motion carried, six ayes. Staff was directed to notify Mr. Olson and the surrounding homeowners when the issue is placed on the agenda for review in one year. ITEM 6-A APPROVAL OF MINUTES Councilmember Lymangood suggested a correction to the December 6 minutes, Page 19, to read "Mayor Bergman stated that a 4/5 vote is required to approve the land use guide plan change, and since a 4/5 vote does not appear to be achievable, the item did not pass." He recommended another correction to the December 20 minutes, Page 21, to read "Councilmember Vasiliou indicated she was ill and left the meeting at 10:00 p.m." Clerk Rauenhorst stated that Attorney Barnard recommended a clarification of the January 3 minutes, Page 9, to read "In response to a question by Councilmember Granath regarding the voting requirement, Attorney Barnard stated that the state law 2/3 voting requirement supersedes the City Code voting requirement and, therefore, a 5/7 vote for a seven member Council is needed." MOTION was made by Councilmember Lymangood, seconded by Councilmember Helliwell, to approve the minutes of the December 6, December 20, and January 3 regular meetings with the three corrections. Motion carried, six ayes. ITEM 6-F CONTRACTOR PROPERTY DEVELOPERS COMPANY - FINAL PLAT FOR QUAIL HOLLOW (93134) Councilmember Lymangood asked if Councilmembers and the applicant for the Quail Hollow final plat, located on both sides of Schmidt Lake Road at Trenton Lane North, would consider reduction of the minimum yard setbacks in the proposed subdivision in order to preserve the wetlands. Regular Council Meeting March 21, 1994 Page 8 Community Development Director Hurlburt explained that Condition 11 of the recommended approving resolution provides that minimum yard setbacks for blocks 1, 2, and 3 shall be 35 feet for front yards, 50 feet from Schmidt Lake Road, 15 feet for side yards and 25 feet for rear yards. She stated the Council has approved 25' front yard setbacks on previous projects. Thomas Graham, the applicant, stated he has no objection to this change. Councilmember Lymangood stated that the preliminary plat for this area was approved in 1988. He stated he is not trying to stop development, but believes that the more the wetlands are protected, the less it will cost the City in the future. He asked if Mr: Graham would be willing to install markers at the wetland boundary so that homeowners know they cannot mow beyond that point. He also asked if there is a way to ensure that future homeowners couldn't put decks in the wetlands. Mr. Graham stated the Army Corps of Engineers requires delineation of the wetland boundary with plantings. A sign will also be installed at each lot corner indicating the wetland boundary. He has no objection to a covenant placed against the lots indicating that a deck could not extend into the wetland. MOTION was made by Councilmember Lymangood, seconded by Councilmember Helliwell, to adopt RESOLUTION 94-145 APPROVING FINAL PLAT AND DEVELOPMENT CONTRACT FOR CONTRACTOR PROPERTY DEVELOPERS COMPANY FOR PROPERTY LOCATED AT SCHMIDT LAKE ROAD AND TRENTON LANE NORTH (93134), and RESOLUTION 94-146 SETTING CONDITIONS TO BE MET PRIOR TO FILING OF THE RELATED FINAL PLAT FOR "QUAIL HOLLOW" FOR PROPERTY LOCATED AT SCHMIDT LAKE ROAD AND TRENTON LANE NORTH (93134), amending Condition 11 to provide that blocks 3, 4, and 5 shall have 25' minimum front yard setbacks, and adding Condition 14 that appropriate markers for the wetland will be installed and a covenant (to be approved by the City) will be placed on the deeds indicating that no structures could be built in the wetlands. Motion carried, six ayes. Regular Council Meeting March 21, 1994 Page 9 MOTION was made by Councilmember Helliwell, seconded by Councilmember Anderson, to adopt RESOLUTION 94-147 ADOPTING ASSESSMENTS, CITY PROJECT NO. 405, QUAIL HOLLOW ADDITION, SCHMIDT LAKE ROAD SANITARY SEWER, WATER, GRADING, CONCRETE CURB AND GUTTER, RIGHT-OF-WAY INCLUDING CONDEMNATION AND INTEREST, and RESOLUTION 94-148 ADOPTING ASSESSMENTS, CITY PROJECT NO. 404, SANITARY SEWER AND WATERMAIN AREA - QUAIL HOLLOW ADDITION. Motion carried, six ayes. ITEM 6-K 1994 MANAGEMENT PLAN, BUDGET, AND AGREEMENT FOR TRANSIT SUBSIDY FOR METROLINK AND DIAL -A -RIDE SERVICES Chris Slack, 2135 Weston Lane, stated the taxpayers and Council need more information on the transit service. Questions such as how it is being used, number of riders, service alternatives, and funding should be discussed in more detail. Public Works Director Moore recommended that the Council approve the proposed contract between the City and the Regional Transit Board for transit services of Plymouth Metrolink and Dial -a -Ride. He stated none of the funds for the program are from the General Fund. Program funding is from the transit budget which receives funds under the opt -out program. He briefly described the opt -out system and explained that Plymouth taxpayers are being levied tax dollars for transit service from the Metropolitan Council. If Plymouth does not use the money, it will be allocated to the metropolitan system. He stated that residents are welcome to attend the monthly meetings of the Plymouth Advisory Committee on Transit to learn more about the transit system. Manager Johnson said that not much information was presented during the budget review on the transit operation. He stated that more detailed information could be provided for the 1995 budget process. Councilmember Helliwell stated she wants to move forward with the approval as the transit program is important to residents of the City with no private transportation. MOTION was made by Mayor Tierney, seconded by Councilmember Edson, to adopt the proposed resolutions and to discuss the transit service further during 1995 budget discussions. Councilmember Lymangood suggested that because of the complexity of this issue, it may be better studied and understood with a Council subcommittee Regular Council Meeting March 21, 1994 Page 10 structure. The subcommittee could study the issue and make a recommendation to the entire Council. Councilmember Granath agreed it would be a good topic for a subcommittee. Councilmember Helliwell, Councilmember Granath, and Mayor Tierney indicated they would be willing to serve as the subcommittee on this issue. Councilmember Edson stated that one of the primary objectives is to deal with the cost effectiveness and financial aspects of the service. He agreed with Councilmember Helliwell that the Plymouth Advisory Committee on Transit deals more with the customer service aspects of the transit service. He suggested that the Council subcommittee could initially meet with the Plymouth Advisory Committee on Transit to obtain information. SUBSTITUTE MOTION was made by Mayor Tierney, seconded by Councilmember Anderson, to adopt RESOLUTION 94-165 APPROVING THE 1994 APPLICATION TO THE REGIONAL TRANSIT BOARD FOR THE PROVISION OF PLYMOUTH METROLINK AND PLYMOUTH DIAL -A - RIDE SERVICES AND AUTHORIZING THE EXECUTION OF CONTRACTS REQUIRED FOR THE IMPLEMENTATION OF THE APPLICATION, and establishing a subcommittee of Councilmembers Granath, Helliwell, and Mayor Tierney to study the transit issue and report back to the Council for consideration with the 1995 budget. Motion carried, six ayes. ITEM 6-R REGULATING ICE FISHING HOUSES ON MEDICINE LAKE Councilmember Granath stated that Ward 3 residents are concerned about the amount of debris left on Medicine Lake and its shoreline by ice fishers. He suggested that the City study what regulatory options are available to address this problem and to make ice house users accountable. Councilmember Lymangood suggested that staff be directed to review the regulatory options and to contact the City of Medicine Lake for their input on this issue. MOTION was made by Councilmember Lymangood, seconded by Councilmember Granath, to adopt RESOLUTION 94-166 AUTHORIZING STAFF TO STUDY REGULATION OF ICE FISHING HOUSES ON MEDICINE LAKE, and to direct staff to contact the City of Medicine Lake for their input, with a report back on the issue prior to September 1, 1994. Motion carried, six ayes. Regular Council Meeting March 21, 1994 Page 11 ITEM 6-V APPOINTMENT OF CONSULTANT FOR NEIGHBORHOOD PARK Councilmember Lymangood stated the Policy on Selection of Consultants provided in the staff report is dated September 16, 1985. He stated the list of consultants has changed since that time and the policy should be updated. Councilmember Edson agreed the list should be updated. The current financial consultant and the last research firm retained for a survey is not included on the list. In response to a question by Councilmember Helliwell, Park Director Blank stated that a list of five park consultants has been adequate because there have been very few park consulting projects. Councilmember Edson said the City is using Barton-Ashmann on other park projects. He asked why the same firm would not be used for this project for consistency. Director Blank explained that this is small project and staff is looking at an opportunity to use another firm to get diverse ideas. MOTION was made by Councilmember Lymangood, seconded by Councilmember Edson, to adopt RESOLUTION 94-167 APPOINTING PARK CONSULTANT. Motion carried, six ayes. MOTION was made by Councilmember Edson, seconded by Councilmember Anderson, to direct staff to recommend an updated consultant selection list to include all consultants the City is currently using, as well as a minimum of four consultants for each category, with a report back prior to the 1995 budget hearings. The list is to include rates of each consultant where available. The recommendation should be made following a solicitation and open bidding process, and staff is authorized to apply fair and reasonable criteria to narrow the field. Chris Slack, 2135 Weston Lane, stated the bidding process will eliminate a lot of firms that cannot meet the minimum requirements. Motion carried, six ayes. Regular Council Meeting March 21, 1994 Page 12 ITEM 6-W STUDY REGULATION OF LOUD CAR STEREOS Councilmember Granath suggested that staff be requested to study the options the City has available to regulate excessively loud car stereos. Maplewood recently adopted an ordinance on this issue and staff should obtain a copy of their ordinance for consideration. MOTION was made by Councilmember Lymangood, seconded by Councilmember Granath, to adopt RESOLUTION 94-168 AUTHORIZING STAFF TO STUDY REGULATION OF LOUD CAR STEREOS, with a report back by June 1, 1994. Motion carried, six ayes. ITEM 8-11 CARLSON REAL ESTATE COMPANY. PRELINUNARY/FINAL PLAT FOR SAM'S CLUB (94010) Community Development Director Hurlburt stated the Planning Commission recommended approval of the Preliminary Plat/Final Plat for Carlson Center 12th Addition. The plat is to create three commercial lots including the proposed Sam's Club site. This application does not include submittal of a site plan, or related formal grading plans or utility plans. Other than the applicant, no one was present at the public hearing on this item. MOTION was made by Mayor Tierney, seconded by Councilmember Edson, to approve the preliminary plat and final plat for Carlson Real Estate Company for Carlson Center 12th Addition. Motion failed on a tie vote with Edson, Lymangood, and Tierney voting ayes; Granath, Anderson, and Helliwell voting nays. Mayor Tierney suggested that the item could be tabled to the next meeting when seven members may be present. Councilmember Lymangood requested an opinion from the City Attorney on how the Council could proceed. Attorney Barnard stated that the motion did not pass; therefore, it could be considered at the next Council meeting. Councilmember Edson asked if there is a time constraint during which the Council must act on this application. Regular Council Meeting March 21, 1994 Page 13 Director Hurlburt responded that when a preliminary plat application is received, the City has 120 days in which to act. If the City Council failed to act in that time, the request would be deemed approved. The time period on this application will not elapse for six to eight weeks. Councihnember Lymangood stated the City Attorney has indicated it is important for those voting against the motion to indicate the reasons for their vote. Attorney Barnard explained that in situations of zoning and conditional use permits, those voting against the request should state their findings. In the case of platting and subdivision items, if the applicant complies with all requirements of the ordinance, the vote on it becomes a ministerial act - not a discretionary act of the Council. Director Hurlburt stated that all zoning ordinance requirements for B-2 zoned property have been met and all lots are within the code requirements. MOTION was made by Mayor Tierney, seconded by Councilmember Anderson, to table the request to April 4. Motion carried: five ayes; Helliwell nay. ITEM 8-C REQUEST OF CARLSON HOLDINGS, INC., TO ISSUE TAX Manager Johnson stated that in 1984 the City issued $7,000,000 of Tax Exempt Tax Increment Bonds to finance construction improvements within the Carlson Tax Increment District #1. The majority of the issue was used for the interchange at I-494 and Carlson Parkway. The bonds were to be repaid from tax increments generated by the construction improvements within the development. Development within the district did not occur as fast as anticipated, and resulted in tax increment shortfalls. In 1992, the City authorized the issuance of $7,755,000 Revenue Refunding Bonds to refund the 1984 bonds. The staff did not recommend the refinancing, but the refunding was approved by the City Council. That refunding issue was backed by the tax increments generated within the district and surety bond guaranteeing the payment of these bonds. The bond indenture for the 7,755,000 issue provides that these bonds be repurchased on April 1, 1994. Manager Johnson stated that Carlson Properties is now proposing to repurchase the 1992 issue in accordance with the 1992 bond indenture, and finance the repurchase with the issuance of new bonds. If refinancing is not provided for the mandatory repurchasing, Carlson Properties may remarket the 1992 issue without the surety coverage from St. Paul Insurance Companies. There is a potential for having less than high quality bonds on the streets with the City's name on them. Regular Council Meeting March 21, 1994 Page 14 Carlson Holdings, Inc., has agreed to pay the City an administrative fee of 1/8 of one percent on the outstanding principal each year. This is the maximum that can be applied to an issue such as this. The fee will amount to about $7,800 in the first year, and decrease each year thereafter as the principal is paid off. The issuance of these bonds will have no other financial impact on the City since these bonds are not to be backed by the City. Manager Johnson recommended two corrections to the proposed resolution. The amount of the refinancing issue should be changed to $6,255,000 and the reference to the $10 million qualification should be deleted. Councilmember Lymangood stated the principal reason the initial financing was given was in anticipation of development in the area which has not occurred. He spoke against authorization of the refunding bonds, and asked who typed the original version of the proposed resolution. Finance Director Hahn stated the City Attorney's office prepared the resolution. Dan Nelson, Best and Flanagan, explained that the bonds could have qualified under the $10 million qualification, but that decision was not made by Carlson until the first draft of the resolution had been prepared. MOTION was made by Councilmember Lymangood, seconded by Councilmember Granath, to deny authorization to Carlson Holdings, Inc., to issue Tax Exempt Revenue Refunding Bonds. Councilmember Lymangood shared his reasons for supporting denial of the request: 1) The original issue was for $7 million in 1984. 2) In 1992, the issue was for $7.7 million - an increase from 1984. Staff did not recommend the refinancing in 1992. 3) The former City Manager stated in his 1992 staff report that he failed to see "how the City or its citizens benefit from this request. For reasons best known to Carlson, they failed to undertake the construction which would have created the property values needed to generate the tax increments needed to finance this debt." 4) Development has been occurring at a reasonable pace in the City of Minnetonka. Tax increments within the Minnetonka district have exceeded projections needed to service the debt. 5) Also from the 1992 former Manager's staff memo, "The failure of the district to generate the required tax increments is attributable solely to Carlson." 6) Staff did not recommend the Council refinance the existing debt if the refinancing extended beyond 4-1-94. 7) On April 23, 1985, Mayor Davenport wrote to the President of Carlson Properties Inc., stating, "Tom, I must reiterate again, my and the City Council's keen disappointment in the learning that this project is again being delayed." 8) Carlson Regular Council Meeting March 21, 1994 Page 15 Real Estate Company's Sr. Vice President of Finance wrote to the former City Manager, "This would primarily benefit Carlson Properties Inc." 9) The preliminary term sheet dated 2-5-92 discussed the mandatory purchase requirement of Carlson Companies. 10) The issue started with $7 million some 10 years ago and now is at $6.255 million. The amount of principal paid down is very small relative to the projections. Councilmember Anderson supported Councilmember Lymangood's comments, which he stated are thorough and accurate. Louis DeMars, Miller and Schroeder Financial, representing Carlson Companies introduced Kent Richie from Faegre and Benson, the underwriter's counsel. Kent Richey, 4665 Goldenrod Lane, stated there are $7 million plus in bonds. The reason the bond amount increased was that a reserve fund was inserted into the second bond fund in 1992 and this facilitated the release of the City obligation. He stated it was an advantage for the City to switch from general obligation debt to revenue debt, for which the City does not have obligation. Mr. Richey stated the bonds issued in 1992 were an interim financing method, and the project is now built. There is an obligation of Carlson Companies to purchase the bonds backed by St. Paul Fire and Marine. He stated that Carlson is asking for the City's cooperation so that Carlson will realize about $120,000 each year for up to 18 years in reducing financing costs through a structure that has been recommended by Miller and Schroeder. He stated the existing bonds pledge tax increment revenues of the City; whereas, the proposed structure would remove the tax increment revenues pledge of the City. Carlson and First Bank will be responsible for backing the bonds. He stated the lower interest rates, as well as credit enhancement from First Bank, result in dramatically dropped rates and substantial savings for the Carlson Companies. He stated that in connection with the remarketing in 1992, the City agreed they would take all steps reasonably requested by the remarketing agent. Mayor Tierney stated the interchange is a benefit to the City, and the City will receive administrative fees if this issue is approved. Councilmember Granath asked that if the Council denies the issue, is it safe to assume that Moody's would not lower the City's credit rating. Finance Director Hahn believed that is a safe statement. He explained Moody's considers the amount of industrial revenue bonds the City has issued, but it is unlikely they would lower the City's rating. Regular Council Meeting March 21, 1994 Page 16 Councilmember Helliwell stated that she voted to allow Carlson to refinance its bond issue in 1992 based on the arguments presented by Carlson Companies. However, nothing has been built since then. Motion to deny carried: five ayes; Tierney nay. ITEM 8-D PUBLICITY REQUESTS OF PLYMOUTH CIVIC LEAGUE Wes Clemens, 5615 Evergreen Lane, represented the Plymouth Civic League. He stated the 22nd annual Music in Plymouth will be held on June 29. Target Greatland will again sponsor the fireworks, and funding for the Minnesota Orchestra and other events is paid through contributions from the City of Plymouth, concession sales, family members and small business contributions. He stated that last year only 98 families joined the Civic League. Bev Kottas, 3380 Sycamore Lane, explained that the Civic League's commitment to get the Minnesota Symphony Orchestra adds significantly to the cost of the event. She said that part of the reason for the decreasing family memberships is the memberships need to be better advertised. In the past, the City included publicity for the memberships on the utility bill; however, the utility bill format has been amended and memberships have decreased. She requested that the City consider possible use of the utility bill for greater publicity for the event, an ad in the Plymouth News, and/or an insert in the Plymouth New with a return coupon for family memberships. Ms. Kottas stated her company has donated advertising for a return coupon membership for this year that will be delivered door-to-door, but she asked that the City do it in the future. She is aware that ads for organizations have not been allowed in the Plymouth News in the past. However, she suggested that this advertising could be allowed because of the City's participation in the event. Assistant Manager Lueckert stated the City Council's policy is to permit businesses in the City to purchase ad space in the recreation booklet portion of the Plymouth News. She recommended that the policy be amended to allow groups that have a tangible link to the City to purchase ad space in the recreation booklet and the Plymouth News. Mayor Tierney asked if there are other groups that may qualify under the proposed policy. Assistant Lueckert stated the Plymouth Crime and Fire Prevention may also qualify under the policy and desire to purchase ad space for broader visibility of the organization. Regular Council Meeting March 21, 1994 Page 17 Councilmember Helliwell spoke in favor of the policy change and suggested that the Plymouth Historical Society may also benefit from this policy change. MOTION was made by Mayor Tierney, seconded by Councilmember Helliwell, to adopt RESOLUTION 94-169 ADOPTING REVISED ADVERTISING POLICY FOR CITY PUBLICATIONS, and RESOLUTION 94-170 ADOPTING POLICY ON REGULATING SUBMISSIONS TO THE CITY NEWSLETTER. Councilmember Anderson asked if the City Attorney has reviewed the proposed policy language. Attorney Barnard responded that the policy has been reviewed and he does not' believe it is unlawful. Councilmember Anderson asked if there is any potential issue of religious or other groups qualifying under the policy which could pose legal concerns for the City. Attorney Barnard stated the biggest concern is defining the type of group. This policy would restrict only to groups with a tangible link to the City. Councilmember Lymangood stated he has no concerns with the three groups previously mentioned which all have significant links to the City. He asked if the policy could be limited to approval for those three groups and provide that other groups could petition the City Council for approval. Attorney Barnard recommended a consistent policy, noting that he has concerns about a discretionary system where the Council would have to select one group and not another. He stated that staff can fairly administer the proposed policy. Motion carried, six ayes. ITEM 8-E CITY CENTER EXPANSION SCHEDULE Councilmember Lymangood suggested that the City Center expansion schedule be included with Item 9-H, topics for future study sessions. MOTION was made by Mayor Tierney, seconded by Councilmember Lymangood, to table the City Center expansion schedule to Item 9-H. Motion carried, six ayes. Mayor Tierney called a five minute break. Regular Council Meeting March 21, 1994 Page 18 ITEM 9-A-1 REPORT FROM STATE AUDITOR ON EMPLOYEE COMPENSATION PRACTICES Manager Johnson stated the State Auditor's Report on Employee Compensation Practices contained several recommendations. He stated a travel policy and revised employee reimbursement policy could be drafted for Council review in about a month. The third recommendation of a new written policy for salary and benefit compensation would take several months to complete. Mayor Tierney stated the Council is pleased to see report as many months have passed since it was requested. She believes it has helped clear the air. She stated the Council would like to see it appropriately addressed, and she believes most of the issues have already been addressed by this and the previous Councils. Councilmember Edson stated this issue has been pending for 1 1/2 years, and he thanked the State Auditor for the report. He stated the report indicates that the specific responsibility for compensation issues rests with the City Manager and the City Council. He stated that prior to taking office in 1992, he attended the 1990 and 1991 budget study sessions and hearings, and these types of benefits were never disclosed to the entire Council. He stated there may have been individual Councilmembers who knew about these benefits. Councilmember Edson stated staff should be appropriately and competitively compensated, and the compensation should be open. He also believes the statements in the State Auditor's report that staff members thought things were being done in an appropriate manner. The Council is responsible for moving ahead and setting compensation policies, and there is no place for some of the benefits given. He is interested in having the City Manager prepare a list of recommendations responding to the State Auditor's report so that all benefit programs are annually reviewed and approved by the Council. Councilmember Lymangood stated this issue is sensitive to the City and it is the Council's task to move forward and institute the recommendations in the report so there will not be a repeat of what occurred. Because the report indicates that both the Council and the City Manager are responsible for compensation practices, he suggested that a committee would be a good idea. He also requested that a copy of the report be provided to the former City Manager. Manager Johnson stated a copy has already been provided. Councilmembers Edson, Anderson, and Helliwell indicated their interest in serving on a committee on this issue. Regular Council Meeting March 21, 1994 Page 19 MOTION was made by Mayor Tierney, seconded by Councilmember Lymangood, to establish a subcommittee of the City Council in conjunction with staff to review the State Auditor's report and make recommendations to the full Council for consideration. The City Manager will be one of the members, and he is to select two to three additional staff members, with a report to be provided to the Council by July 1, 1994. Councilmember Anderson stated that he would like the motion to include having the City Attorney respond as to whether the City should seek reimbursement not only from the former City Manager on first-class airline travel and other items, but also for clothing allowances, health club memberships, and other benefits not authorized by statute or that were questionable in the report. He would like the City Attorney to be included in the subcommittee, or to have a report back from the City Attorney, as there may be an issue of seeking reimbursement from the former City Manager and from other staff members who received these benefits through 1992. Councilmember Helliwell stated she will not support asking employees to reimburse what they received. She stated staff members were given these benefits believing it was allowed and approved by the Council, and it is time to look toward the "Plymouth Pledge" and move forward. Mayor Tierney agreed and stated that the State Auditor only indicated that some things were "questionable". She noted that one of the reimbursement requests was submitted and paid three months after the former City Manager had been dismissed. She stated this involves staff and procedures - not the City Attorney. Mayor Tierney read the last portion of the State Auditor's letter which commends the current City Councilmembers for taking significant steps to alleviate the divisiveness on the Council. She also commended the City Council for alleviating the previous Council divisiveness, as well as the previous Council to taking steps to address most of the issues raised in the report. Councilmember Anderson stated that divisiveness is not the issue in this case. The City Council has a legal obligation to uphold the law. He stated the State Auditor specifically suggests that legal counsel be brought in to advise on a number of issues in the report. Mayor Tierney stated that some Councilmembers who have gone through this entire issue would not support having the City Attorney involved, unless separate legal counsel were retained to advise on this issue. Councilmember Lymangood stated he is confident that the subcommittee will review and fully investigate the findings of the report. If something significant is Regular Council Meeting March 21, 1994 Page 20 learned that the Council should pursue, the subcommittee can make that recommendation to the Council before the full report is presented. Councilmember Edson stated he believes the Council's responsibility is to respond to every suggestion made by the State Auditor. Motion carried, six ayes. ITEM 9-A 1994 RISK MANAGEMENT REPORT Risk Management Coordinator Pemberton presented the 1994 Risk Management Report. MOTION was made by Councilmember Helliwell, seconded by Mayor Tierney, to accept the report. Motion carried, six ayes. ITEM 9-13 AWARD OF PROPERTY AND LIABILITY INSURANCE Risk Management Coordinator Pemberton recommended that the Council review the proposals submitted and award the contract for the 1994-1995 property and liability insurance to the League of Minnesota Cities Insurance Trust, St. Paul Fire and Marine Insurance Company, and the Hartford Steam Boiler Inspection and Insurance for a total cost of $190,772. He said that on October 18, 1993, the Council appointed T.C. Field & Company as the property/casualty agent of record at an annual fee of $7,600. This has resulted in an annual savings of about 10,100. He stated that competitive bids were not sought because there is no competitive market at this time. Councilmember Lymangood stated that other potential bidders should provide the City with a letter confirming they do not have an interest in bidding the City's insurance for 1994-1995. Coordinator Pemberton responded to questions about the services provided by T.C. Field & Company. Councilmember Edson requested that the company provide the Council with a written report, similar to those received from other consultants, which would summarize the services they have performed and conclusions and recommendations. Regular Council Meeting March 21, 1994 Page 21 MOTION was made by Councilmember Edson, seconded by Mayor Tierney, to adopt RESOLUTION 94-171 AWARDING THE CONTRACT FOR INSURANCE FOR THE 1994/1995 INSURANCE PROGRAM, and to request that the insurance agent provide an annual report on services and market prior to the annual reappointment date. Coordinator Pemberton requested that the Council also address whether they are interested in the new open meeting law violation covefage. This coverage would cover 80 percent of legal fees up to a $20,000 maximum per elected official for alleged violations of the open meeting law. The annual premium charge for this coverage is $3,523. Mayor Tierney asked if this specific coverage could be added later. Coordinator Pemberton stated yes, but the Council may wish to consider the advantages of the coverage. Manager Johnson stated the insurance covers unintentional violations of the Open Meeting Law. Councilmember Granath cited a number of recent cases of unintentional Open Meeting Law violations. Councilmember Anderson stated he believes it is unreasonable for Councilmembers to have to individually hire an attorney to defend themselves for an Open Meeting Law violation. Councilmember Helliwell stated that Councilmembers can avoid violation situations by not meeting in a quorum except at an official meeting. She would like to study the issue further before acting. MOTION was made by Councilmember Granath, seconded by Councilmember Edson, to amend the main motion to include the Open Meeting Law coverage at a per annum premium cost of $3,523. Councilmember Granath stated that litigation can be brought for appearance of a violation. Councilmembers could spend a considerable amount on legal defense, whether or not there was a violation. Councilmember Lymangood stated that he will support the Open Meeting Law defense coverage because he has seen the details of some recent cases where very unlikely circumstances or a series of phone calls was considered a violation. Regular Council Meeting March 21, 1994 Page 22 Councilmember Edson agreed that it is not sufficient to just avoid meeting in number sufficient for a quorum. He noted there are issues where three votes could defeat a motion. In some cases, three people discussing an issue could be brought as a reason for an Open Meeting Law violation. Mayor Tierney stated she will support the coverage if the Council reviews it in one year. Councilmembers Granath and Edson added this to their respective amendment motion and second as a friendly amendment. They indicated that the issue should be reviewed within one year. Motion to amend carried: five ayes; Helliwell nay. Main motion as once amended carried, six ayes. ITEM 9-C 1994 HEALTH, DENTAL, AND LIFE INSURANCE BENEFITS FOR MOTION was made by Mayor Tierney, seconded by Councilmember Lymangood, to adopt RESOLUTION 94-172 APPROVING THE 1994 HEALTH, DENTAL AND LIFE INSURANCE BENEFITS FOR NON -REPRESENTED CITY EMPLOYEES. Motion carried, six ayes. ITEM 9-D AND 9-E ACQUISITION OF PROPERTY Councilmember Lymangood asked if the Park and Recreation Advisory Commission (FRAC) was aware that three properties would have to be acquired to accommodate the street alignment they recommended for West Medicine Lake Park. Park Director Blank responded "yes". He showed a 1971 photo of the area which showed that 13 homes and businesses were in existence. The City has acquired all but three of those properties. MOTION was made by Mayor Tierney, seconded by Councilmember Edson, to adopt RESOLUTION 94-173 AUTHORIZING THE ACQUISITION OF PROPERTY AT 11808 18TH AVENUE, and RESOLUTION 94-174 AUTHORIZING THE ACQUISITION OF PROPERTY AT 11814 18TH AVENUE. Councilmember Granath requested a roll call vote. Regular Council Meeting March 21, 1994 Page 23 Councilmember Anderson asked if the Park and Recreation Advisory Commission has made a finding that these acquisitions need to be done. Director Blank stated that PRAC has been working on this park plan for three to four years. It has been included in the Capital Improvements Program and the plan has been consistent for several years. He stated the two lots proposed for acquisition are needed for the proposed West Medicine Lake Park plan. Councilmember Helliwell stated she has heard a number of concerns about the proposed park in the past few weeks. She realizes this park has been proposed for some time, but she would have favored deferring the acquisitions if one property owner had not already planned to move. She asked when the Council authorized staff to negotiate for these acquisitions. Director Blank responded that the Council authorized staff to negotiate for the acquisitions in December, 1993. Councilmember Granath stated he will support the motion because he does not want to inconvenience the two families living in the homes to be acquired. However, he has reservations about the entire proposed park plan. He is receiving resident feedback about the cost, size, and traffic impacts of the proposed park. He wants to be cautious and not move too quickly forward. Director Blank stated that PRAC was directed by the Council to prepare a Master Plan for the park. The timetable for development of that park is solely at the discretion of the City Council. Motion carried, six ayes. ITEM 9-F APPOINTMENTS TO BOARD AND COMMISSIONS MOTION was made by Mayor Tierney, seconded by Councilmember Edson, to adopt RESOLUTION 94-175 APPOINTMENT TO WEST HENNEPIN HUMAN SERVICES PLANNING BOARD, appointing Sandy Hewitt. Motion carried, six ayes. MOTION was made by Mayor Tierney, seconded by Councilmember Lymangood, to adopt RESOLUTION 94-176 APPOINTMENT TO BOARD OF ZONING ADJUSTMENTS AND APPEALS, appointing Robert Dahlmann. Motion carried, six ayes. Regular Council Meeting March 21, 1994 Page 24 MOTION was made by Mayor Tierney, seconded by Councilmember Edson, to adopt RESOLUTION 94-177 APPOINTMENT TO HUMAN RIGHTS COMMISSION, appointing Saundra Spigner. Motion carried, six ayes. ITEM 9-G AUTHORIZE FUNDING OF CAPITAL EQUIPMENT FOR DESIGN ENGINEERING DIVISION Public Works Director Moore recommended that $73,000 be appropriated from the Project Administration Fund to purchase capital equipment for the engineering design division. Councilmember Lymangood stated that during budget discussions, staff indicated that there will be a net savings associated with the engineering design division. Director Moore stated the anticipated savings are budgeted into the General Fund revenues and disbursements. The Financial Advisory Committee previously recommended that any savings be directed to the Street Reconstruction Fund - not the General Fund. Councilmember Helliwell stated she did not like the concept of the design engineering division because she did not believe it would save money for the City. However, she will support purchase of the equipment because the program has already been approved. Councilmember Lymangood requested that staff provide a report in 12 to 18 months on whether the anticipated savings have been achieved. Director Moore stated this will be provided as part of the budget process. A savings of $40,000 to $80,000 in subsequent years of the program is anticipated. MOTION was made by Councilmember Edson, seconded by Councilmember Lymangood, to adopt RESOLUTION 94-178 APPROVING FUNDS FROM PROJECT ADMINISTRATION FUND FOR PURCHASE OF CAPITAL EQUIPMENT FOR ENGINEERING DESIGN DIVISION. Motion carried, six ayes. ITEM 9-H TOPICS FOR FUTURE STUDY SESSION SCHEDULE Manager Johnson suggested some amendments in topics for the upcoming study session schedule. Regular Council Meeting March 21, 1994 Page 25 Councilmember Helliwell stated that study sessions have been starting at 5:30 p.m., but several Councilmembers have been unable to arrive at the beginning of the meeting. The Council needs to consider whether to amend this schedule. She is not opposed to the subcommittee concept, but she feels it is her responsibility to personally attend all study sessions if possible. She requested that review of the conflict of interest policy remain on the March 28 study session agenda. Councilmember Lymangood stated that the full Council is having a difficult time meeting to conduct study sessions. He stated that a division of labor through a subcommittee structure may be able to address this difficulty. He stated that any subcommittee meetings would be posted, open meetings and any councilmember could attend. Councilmember Edson stated that subcommittees are a good idea for selected topics. This system isusedby the county board and the legislature. Mayor Tierney stated that she believes one of the problems is that the Council has not conducted a goals and objectives meeting. Councilmember Anderson suggested that the first item of business at the next study session on March 28 should be to establish study session topics and schedules, and to decide whether to use the subcommittee structure. Councilmember Granath supported the subcommittee concept. He noted that if there is not agreement among subcommittee members, a split report can be issued. He supports trying anything that may help the Council study issues in a more efficient manner. Councilmember Lymangood suggested that the March 28 meeting be held at 5:45 p.m. in order to get maximum attendance. MOTION was made by Councilmember Edson, seconded by Councilmember Granath, to establish a study session for 5:45 p.m. on March 28 to establish study session priorities and consider the subcommittee structure, with 15 minutes devoted to conflict of interest policy. Motion carried, six ayes. ITEM 8-E CITY CENTER EXPANSION SCHEDULE Assistant Manager Lueckert stated that earlier in the meeting the Council tabled the City Center expansion schedule for discussion with this item. She stated there is a deadline consideration with respect to the Plymouth News. Regular Council Meeting March 21, 1994 Page 26 Councilmember Lymangood stated the Council previously agreed in concept that the overcrowding of staff in the City Center must be addressed and the Council agreed to move forward in some way. No decision has yet been made about the Council Chambers. MOTION was made by Councilmember Anderson, seconded by Councilmember Edson, to table the City Center expansion schedule to March 28, and to direct staff to draft a Plymouth News article that indicates the Council is exploring options to move forward with the project. Motion carried, six ayes. ITEM 9-I RESOLUTION SUPPORTING TERM LIMITS Councilmember Granath stated the topic of term limits is before the legislature and this is a good time for the Council to express its opinion on the issue. He supports allowing the voters to vote on the question of term limits in the form of a state constitutional amendment. Mayor Tierney stated she received one phone call from a resident opposed to term limits. She doesn't believe the Council should take action on this proposed legislation without hearing from the citizens. Councilmember Lymangood stated that if the words "local officials" are deleted, he will support the resolution. He stated that the City's lobbying organizations have taken a position against term limits. If City dollars are going toward issues to which the Council is opposed, the organizations should know and the citizens should know. He stated studies show that 80 percent of citizens support term limits, and the language in the proposed resolution supporting term limits is rather general. Councilmember Helliwell stated she does not believe this is a local issue. Although she personally supports term limits, she doesn't believe the Council should be addressing the issue. Councilmember Granath agreed that the Council should work on local issues as a general rule; however, the currently proposed term limit legislation would affect local officials just as the recent ethics bill affects local officials. MOTION was made by Councilmember Granath, seconded by Councilmember Lymangood, to adopt RESOLUTION 94-179 SUPPORTING LEGISLATION IMPLEMENTING TERM LUVIITS FOR ELECTED OFFICIALS, deleting the words "local officials" from the resolution. Regular Council Meeting March 21, 1994 Page 27 Motion carried: Anderson, Lymangood, Granath, Edson ayes; Helliwell and Tierney abstained. MOTION was made by Councilmember Edson, seconded by Mayor Tierney, to adjourn the meeting at 11:35 p.m. y Clerk