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01/07/2003 - City Council RegularAGENDA EAGAI~1 CITY COUNCIL -REGULAR MEETING EAGAN MUNICIPAL CENTER BUII,DING JANUARY 7, 2003 6:30 P.M. ROLL CALL & PLEDGE OF ALLEGIANCE II. OATHS OF OFFICE III. ADOPT AGENDA IV. CONSENT AGENDA o~ A. APPROVE MINUTES P / ~ B. PERSONNEL ITEMS /~ C. CHECK REGISTERS / D. APPROVE Lease Agreement between the City of Eagan and St. Croix Hazley Davidson / E. SET Special City Council meeting to interview Advisory Commission applicants - Januazy 14, 2003 ~ F. APPROVE fmal payment for Contract 01-12B (July 2000 Storm Mitigation -Landscaping Improvements) ~ G. APPROVE change in management at Holiday Stationstore #247, 3615 Pilot Knob Road pa,Q H. APPROVE change in management at Joe Senser's, 3010 Eagandale Place Pa, I. APPROVE name change on liquor license from Comer's Liquors Unlimited to Comer's Lone Oak Liquors a~ J. APPROVE Resolution authorizing publication of summary -Zoning Ordinance 7 ~K. APPROVE 2003 Trash Hauler License Renewal ~a~ L. APPROVE 2003 Pet Shop License Renewal V. 6:30 -PUBLIC HEARINGS ?A. VARIANCE, Dan and Cheryl Seanoa, A Variance request of 10 feet to the required 30 foot setback for a three season porch addition on Lot 9, Block 3, Lexington Pointe 2°d Addition, located at 4320 Hamilton Drive in the NE '/. of ` ~ Section 26. `17 B. VARIANCE, Millerville, Inc., A Variance request to allow an accessory building in the front yard on Lot 4, Block 1, Sunset 13's Addition, located at 785 Golden Meadow Road in the NW '/. of Section 25. ~t,~ ~~ C. REVEIr'UE REFUNDING BONDS. Consider issuance of $5,380,000 Multi-Family Housing Revenue Refunding V Bonds - Aspenwoods of Eagan Apartments. VI. OLD BUSINESS ~~r~. Recommendation and Award of Contract for Consultant Services, Holz Famz Master Plan n VII. Nlr W BUSINESS S~II. COMMUNITY CENTER UPDATE IX. LEGISLATIVE/INTERGOVERr~NTAL AFFAIRS UPDATE X. ADMINISTRATIVE AGENDA A. Comments by City Council, Ciry Administrator, and Department Heads ~~XI. ECONONIIC DEVELOPMENT AUTHORITY P XII. VISITORS TO BE HEARD (for those persons not on agenda) XIII. ADJOL~t:'KMENT XIV. EXECUTIVE SESSION 'T'he City of Eagan is committed to the policy that all persons have equal access to its programs, services, activities, facilities and employment without regard to race, color, creed, religion, national origin, sex, disability, age, marital status, sexual orientation, or status with regard to public assistance. Auxiliary aids for persons with disabilities will be provided upon advance notice of at least 96 hours. If a notice of less than % hours is received, the City of Eagan will attempt to provide such aid. 4~ : ~-4-' MEMO city of eagan MEMO TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: JANUARY 3, 2003 SUBJECT: AGENDA INFORMATION FOR JANUARY 7, 2003 CITY COUNCIL MEETING ADOPT AGENDA After approval is given to the January 7, 2003 City Council agenda, the following items are in order for consideration. Agenda Information Memo January 7, 2003 Eagan City Council Meeting CONSENT AGENDA The following items referred to as consent items require one (1) motion by the City Council. If the City Council wishes to discuss any of the items in further detail, those items should be removed from the Consent Agenda and placed under Old or New Business unless the discussion required is brief. A. APPROVE MINUTES ACTION TO BE CONSIDERED: To approve the minutes of the December 17, 2002 regular City Council meeting as presented or modified. ATTACHMENTS: • Minutes of the December 17, 2002 regular City Council meeting are enclosed on pages 3 through /0 MINUTES OF A REGULAR MEETING OF THE pRA F EAGAN CITY COUNCIL T Eagan, Minnesota December 17, 2002 A Listening Session was held on December 17, 2002 prior to the regular City Council meeting. There were no citizens who wished to speak. A regular meeting of the Eagan City Council was held on Tuesday, December 17, 2002 at 6:30 p.m. at the Eagan Municipal Center. Present were Mayor Awada and Councilmembers Bakken, Carlson, Fields and Tilley. Also present were City Administrator Tom Hedges, Senior Planner Mike Ridley, Duector of Public Works Tom Colbert, City Engineer Russ Matthys, City Attorney Mike Dougherty and Administrative Secretary/Deputy Clerk Mira McGarvey. AGENDA Item I, Public Hearings, regarding the Gift of Mary -Street and Utility Improvements, was moved to be the fast public hearing, and item Y of the Consent Agenda, regarding the Final Planned Development, Gift of Mary, was continued until later in the meeting to be considered at the time of the public hearing. Councilmember Tilley asked that item K, Consent Agenda, regarding 3820 Alder Lane, be pulled for discussion. Councilmember Bakken moved, Councihnember Fields seconded a motion to approve the agenda as amended. Aye: 5 Nay: 0 RECOGNITIONS AND PRESENTATIONS SAM'S CLUB -SAFE NEIGHBORHOOD HEROES PROGRAM Grant. Keith Hinderman, representing Sam's Club, made a presentation regarding the Safe Neighborhood Heroes EAGAN CITIZEN'S CRIME PREVENTION ASSOCIATION Chief of Police Therkelsen discussed the Citizen's Crime Prevention Association. Gary Fuchs of the Association made a presentation and donation to the City. LEXINGTON AVENUE -CONSTRUCTION EXCELLENCE AWARD City Administrator Hedges discussed the Construction Excellence Award presented by the Minnesota Department of Transportation for the reconstruction of Lexington Avenue. MAYOR AWADA AND COUNCILMEMBER BAKKEN -SERVICE AWARDS Councilmember Fields presented Mayor Awada and Paul Bakken with service awards for their service to the City. Mayor Awada served the City as a Councihnember from 1992-1998 and Mayor for the past four years (1999-2002). Councilmember Bakken served as an Eagan City Councilmember from 1999-2002. CONSENT AGENDA A. Minutes. It was recommended to approve the minutes of the December 2, 2002 regular City Council meeting, the December 2, 2002 Listening Session, the December 10, 2002 special City Council meeting and the December 10, 2002 special City Council retreat as presented. B. Personnel Items. 1. It was recommended to accept the resignation of Police Officer Thomas Fadden. 2. It was recommended to approve the hiring of David Letoumeau and James Proshek as Police Officers. 3. It was recommended to approve the hiring of Desiree Carlson as a Police Officer contingent upon successful completion of the psychological, medical, physical and drug testing exams. 3 Eagan City Council Meeting Minutes December 17, 2002 Page 2 DRAFT 4. It was recommended to approve the hiring of Troy Ruby as the dispatch supervisor in the Police Department. 5. It was recommended to approve the following: a. For regular non-collective bargaining employees, a compensation rate increase of 3.5% across the board effective the payroll period closest to January 1, 2003. b. With the exception of election judge rates, compensation rates for temporary, non- collective bargaining employees will be increased by up to 3.5%. c. Car expense allowances for the City Administrator and Department Heads will be increased by 3.5%. d. Mileage will be set at the IRS amount (the 2003 amount is 36 cents a mile). If the IRS increases or decreases this amount, the City's amount will automatically adjust to the new IRS rate. 6. It was recommended to approve salary range adjustments for the positions of Director of Administrative Services, Police Chief, Director of Public Works, Director of Parks and Recreation, City Engineer, Senior Planner, Assistant City Engineer, Maintenance Supervisor, Arena Manager, Building Inspectors, Engineer Technician, Senior Building Inspectors, Senior GIS Technician, and GIS Technician/Planner. C. Check Re isg tern. It was recommended to ratify the check registers dated December 5, 2002 and December 12, 2002 as presented. D. Trash Hauler License Renewals. It was recommended to approve 2003 Trash Hauler License Renewals for the following: Construction/Demo: BFI, Armor Waste Systems, Aspen Waste Systems, Lightning Disposal, Schill's Dumpster Service, WTI Waste Tech, Haul-Tech, Tennis Roll-Off, Superior Services, Twin City Refuse, All-Star Disposal, Randy's Sanitation. Multiple Dwelling/Commercial: BFI, Armor Waste Systems, Aspen Waste Systems, Haul-Tech, Triangle Services, Superior Services. Residential: BFI, Triangle Services, Nitti Sanitation, Tennis Sanitation, Superior Services. E. Tobacco License Renewals. It was recommended to approve 2003 Tobacco License Renewals for Blackhawk Liquor, Oriental Foods, and Yocum's Holiday 3831. F. Kennel License Renewals. It was recommended to approve 2003 Kennel License Renewals for Four Paws Pet Resort and Doc Marlo Kennel. G. Pet Shop License Renewals. It was recommended to approve 2003 Pet Shop License Renewals for Wal- Mart Store and Wet World. H. Eagan Business News. It was recommended to approve Lehrer-Schriner as the selected vendor for the Eagan Business News. I. Historic Roads and Trails. It was recommended to authorize funding for the Historic Roads and Trails Recognition Program. J. Radio Frequency Control Station Use Agreement. It was recommended to approve the Radio Frequency Control Station Use Agreement between the Metropolitan Radio Boazd and the City of Eagan. K. 3820 Alder Lane. Purchase agreement with REM Metro Services, Inc. for property at 3820 Alder Lane and to declare the expenditure eligible as a reimbursable expense for the purposes of the Cedar Grove Tax Increment Financing Redevelopment District. Pulled for discussion L. 2003 Enterprise Fund Budget. It was recommended to approve the proposed 2003 budgets for the three Enterprise Funds: Public Utilities (Water, Sanitary Sewer, Street Lighting, Storm Drainage, and Water Quality), Civic Arena, and Aquatic Facility (Cascade Bay). M. 2003 Special Revenue Funds Budget. It was recommended to approve budgets for the following Special Revenue Funds: Housing Fund, Police Forfeiture Fund, Economic Recovery Grant Fund, Cedarvale Special Services District Fund, and Cable TV Franchise Fees Fund. N. 2003 Burnsville/Eagan Telecommunications Commission and Burnsville/Eagan Community Television Budgets. It was recommended to approve the proposed 2003 budgets for Burnsville/Eagan Telecommunications Commission and Burnsville/Eagan Community Television. O. On-Sale Liquor and Sunday License. It was recommended to approve the On-Sale Liquor and Sunday license for Cerrito Colorado, Inc., dba El Loro Mexican Restaurant, 1428 Yankee Doodle Road. P. Change Order -Community Center. It was recommended to approve Change Order #8, Community Center. Q. Minutes Revision. It was recommended to approve the revision on page 4 of the November 26, 2002 Special City Council meeting. Eagan City Council Meeting Minutes December 17, 2002 Page 3 DRAFT R. Extension for Recording Conditional Use Permit. It was recommended to approve a 90-day extension of time to record a Conditional Use Pemut for Wal-Mart for property located at 1360 Town Centre Drive in the NW '/< of Section 15. S. Ordinance Amendment. It was recommended to direct the City Attorney's office to prepare an Ordinance Amendment to allow additional product signage, via a Conditional Use Permit, for commercial and industrial businesses. T. Modification to City Code. It was recommended to approve modifications to Chapter 11 of the City Code. U. Final Subdivision. It was recommended to approve a Final Subdivision to create two single family lots on approximately 1.06 acres located at 4565 Oak Pond Road. V. Final Subdivision and Final Planned Development. It was recommended to approve a Final Subdivision to create 38 lots on approximately 5.2 acres located north of Diffley Road across from Metcalf Junior High School in the SW '/, of Section 19. W. Easement Vacation, Final Subdivision and Final Planned Development. It was recommended to approve a Vacation of public drainage and utility easements within Lot 3, Block 1, Blackhawk Plaza; a Final Subdivision to create 44 lots and two outlots on approximately 8.3 acres located between Blackhawk Road and Highway 77, north of Diffley Square in the SE '/< of Section 20; approve a Final Planned Development for Greyhawk for construction of 43 townhome units and one existing single-family home. X. Final Subdivision. It was recommended to approve a Final Subdivision to create nine single family lots on 4.6 acres located at 1470 Englert Road, west of Pilot Knob Road. Y. Final Plat and Final Planned Development- Gift of Mary. Continued until Public Hearingfor Proiect 874. Z. Final Planned Development. It was recommended to approve a Final Planned Development Agreement for Phase II of the Eagan Senior Housing Addition (building 1) located on the south side of Town Center Drive, east of Denmark Avenue and north of O'Leary Lake in the NE '/< of Section 15. AA. Project 886. It was recommended to authorize the preparation of a Feasibility Report for Project 886 (Lone Oak Road Upgrade -Highway 55 to Inver Grove Heights border) by WSB & Associates, Inc. BB. 2003 Consulting En ing_ eering_Rates. It was recommended to approve an amendment to the Fee Schedule Appendix for the current Consulting Engineering Contracts for services to be provided in 2003. CC. Project 828. It was recommended to approve Change Order #1 to Project 828 (Ches Mar Pond) for the Home Modification Contract (Schweich Construction) in the amount of $2,205. DD. Contract 01-12B. It was recommended to approve Change Order No. 1 to Contract 01-12B (July 2000 Storm Mitigation -Landscaping Improvements) and authorize the Mayor and City Clerk to execute all related documents. EE. Contract 01-04. It was recommended to approve Change Order No. 6 to Contract 01-04 (Central Parkway / Northwood Parkway and Community Center -Street, Utility and Grading Improvements) and authorize the Mayor and City Clerk to execute all related documents. FF. Contract 01-05. It was recommended to approve Change Order No. 3 to Contract O1-OS (Cedar Grove Access Modifications) and authorize the Mayor and City Clerk to execute all related documents. GG. Contract 01-07. It was recommended to approve Change Order No. 4 to Contract 01-07 (Lexington Avenue -Street and Utility Improvements) and authorize the Mayor and City Clerk to execute all related documents. HH. Set Public Hearine. It was recommended to set a public hearing date to consider revocation of the Interim Use Permit for outdoor storage of equipment and trailers approved on October , 1, 2002 for property owned by Mr. Jim Oberg, located in a Neighborhood Business zoning district, south of Red Pine Lane between Highway 3 and Biscayne Avenue in the SE '/, of Section 36. II. Premise Permit Renewal. It was recommended to approve Premise Permit Renewal for Mendota Heights Athletic Association to conduct pull-tab operations at Valley Lounge, 3385 Sibley Memorial Highway and LaFonda Restaurant, 3665 Sibley Memorial Highway. JJ. Contract 01-12A. It was recommended to approve the fmal payment for Contract 01-12A (July 2000 Storm Mitigation -Landscaping Improvements0 in the amount of $1,821.50 to North Country Landscape and Design and accept the improvements for perpetual City maintenance subject to wanranty provisions. KK. Extension for Recording Final Plat. It was recommended to approve an extension of time to record the final plat for Cedar Villas, located west of Nicols Road and north of Erin Drive in the SW '/. of Section 30. Councilmember Bakken moved, Councihnember Tilley seconded a motion to approve the balance of the Consent Agenda. Aye: 5 Nay: 0 s Eagan City Council Meeting Minutes December 17, 2002 Page 4 ~aAFr K. 3820 Alder Lane. Purchase agreement with REM Metro Services, Inc. for property at 3820 Alder Lane and to declare the expenditure eligible as a reimbursable expense for the purposes of the Cedar Grove Tax Increment Financing Redevelopment District. A brief discussion was held regarding future development of the property. Councihnember Tilley moved, Councihnember Bakken seconded a motion to approve a purchase agreement with REM Metro Services, Inc. for property at 3820 Alder Lane and to declare the expenditure eligible as a reimbursable expense for the purposes of the Cedar Grove Tax Increment Financing Redevelopment District PUBLIC HEARINGS PROJECT 874, GIFT OF MARY STREET AND UTILITY IMPROVEMENTS City Administrator Hedges introduced this item regarding Project 874 (Gift of Mary Addition Street and Utility Improvements). City Engineer Matthys gave a staff report. Mayor Awada opened the public hearing. Three citizens spoke, two expressing their concerns regarding assessment amounts, and one questioned if there would be signalization at Highway 55. Council and staff discussed assessment deferral options, and stated there would be a future assessment hearing. Director Colbert responded that the intersection meets the spacing guidelines for a Trunk Highway but that a signal won't be considered by MnDOT until it meets their volume or safety warrants and priority funding becomes available. There being no further public comment, Mayor Awada closed the public hearing and turned discussion back to the Council. Councihnember Tilley made a statement regarding the Copeland's lack of information in relation to funding of the project. Mayor Awada stated it was not the concern of the City regarding how the project will get funded, and the issue at hand is the utility project. Councilmember Fields moved, Councihnember Bakken seconded a motion to approve Project 874 (Gift of Mary Addition Street and Utility Improvements), authorize the preparation of detailed plans and specifications, and the acquisition of easements through the quick-take eminent domain process, if necessary (approval valid for two years) Aye: 4 Nay: 1 Tilley opposed. FINAL PLAT AND FINAL PLANNED DEVELOPMENT -GIFT OF MARY Councilmember Fields moved, Councilmember Carlson seconded a motion to approve a Final Plat (Gift of Mary) consisting of one lot for property located south of Lone Oak Road and north of Hwy. 55 and bordering on Inver Grove Heights, in the NE '/, of Section 12. Aye: 4 Nay: 1 Tilley opposed Councihnember Fields moved, Councilmember Carlson seconded a motion to approve a Final Planned Development for a children's home and on-site school and community center. Aye: 4 Nay: 1 Tilley opposed PROJECT 680 CLIFF ROAD STREET & UTILITY IMPROVEMENTS FINAL ASSESSMENT HEARING City Administrator Hedges stated that staff requested this item be rescheduled to allow renotification of affected property owners. Councilmember Bakken moved, Councihnember Fields seconded a motion to reschedule the public hearing to February 4, 2003 for consideration of the Final Assessment Roll for Project 680 (Cliff Road -Street and Utility Improvements). Aye: 5 Nay: 0 6 Eagan City Council Meeting Minutes December 17, 2002 D R A F T Page 5 PROPOSED 2003 PROPERTY TAX LEVY City Administrator Hedges discussed the proposed 2003 property tax lery. Mayor Awada opened the public hearing. There being no public comment, she closed the.public hearing and turned discussion back to the Council. Mayor Awada moved, Councilmember Fields seconded a motion to approve the proposed 2003 property tax levy as follows: Aye: 5 Nay: 0 Approve the proposed 2003 property tax levy as follows: General Revenue: General Fund $ 16,514,300 Equipment Revolving Fd 800,000 Major Street Fd 1,102,500 Gen Facilities R&R Fd 110,250 Subtotal General Revenue 18,527,050 Debt service: Community Center bonds 1,038,800 Total City-wide Levy $ 19,565,850 Cedarvale Special Services Dist. 2 000 PROPOSED 2003 GENERAL FUND BUDGET City Administrator Hedges introduced this item regarding the proposed 2003 General Fund budget. Mayor Awada opened the public hearing. There being no public comment, she closed the public hearing and turned discussion back to the Council. Councilmember Carlson moved, Councilmember Bakken seconded a motion to approve the proposed 2003 General Fund budget. Aye: 5 Nay: 0 ISSUANCE OF $12,975,000 MULTI-FAMILY HOUSING REVENUE REFUNDING BONDS - THOMAS LAKE APARTMENTS City Administrator Hedges introduced this item regarding the issuance of tax-exempt revenue refunding bonds and taxable revenue bonds for the Thomas Lake Apartments. Duector of Administrative Services gave a staff report. Mayor Awada opened the public hearing. There being no public comment, she closed the public hearing and turned discussion back to the Council. Councilmember Fields moved, Councihnember Carlson seconded a motion to adopt a resolution authorizing issuance of $12,975,000 tax-exempt revenue refunding bonds and $3,325,000 of taxable revenue bonds for the Thomas Lake Apartments under Minnesota Statutes, Chapter 462C. Aye: 5 Nay: 0 ISSUANCE OF $5,380,000 MULTI-FAMILY HOUSING REVENUE REFUNDING BONDS - ASPENWOODS OF EAGAN APARTMENTS Mayor Awada stated that Aspenwood's bond counsel has requested this item be continued to the January 7, 2003 City Council meeting. 7 Eagan City Council Meeting Minutes December 17, 2002 Page 6 ~RaFr Councilmember Carlson moved, Councihnember Tilley seconded a motion to continue the public hearing on the issuance of $5,380,000 multi-family housing refunding revenue bonds to the January 7, 2003 meeting. Aye: 5 Nay: 0 PROJECT 751R, CLIFF ROAD TO BUTWIN ROAD FINAL ASSESSMENT HEARING City Administrator Hedges introduced this item regarding the final assessment roll for Project 751R (Dodd Road, Cliff Road to Butwin Road). Public Works Duector Colbert gave a staff report. Mayor Awada opened the public hearing. Nine citizens spoke expressing their opposition to the proposed assessments. Steve Sullivan, representing Dakota County, requested the Council consider continuing consideration of that portion of the assessment that pertains to the regional park until the regional park assessment rate has been agreed upon. There being no further public comment, Mayor Awada closed the public hearing and turned discussion back to the Council. Mayor Awada and Councihnembers discussed the options for payment of the assessment and/or defennent. Based on staff information and recommendation, it was agreed that the street related assessments for Parcel 10- 03600-050-27 be eliminated (substandard size) and Parcel 10-03600-030-26 be reduced from two to only one lot equivalent (structure location precludes lot split). Mayor Awada moved, Councihnember Bakken seconded a motion to approve the modified final assessment roll for Project 751R (Dodd Road, Cliff Road to Butwin Road -Street, Utility and Trail Improvements) and authorize its certification to Dakota County for collection with the following caveats -interest would only accrue on any unpaid balances effective on and from June 30.2003 instead of December 17, 2002 and authorize the postponement of all additional (greater than one) lot equivalents for potential future subdivisions if the property owners enter into an appropriate agreement by June 30, 2003. Aye: 5 Nay: 0 PROJECT 850, DODD ROAD, DIFFLEY ROAD TO ETHAN I CAMBERWELL DRIVE FINAL ASSESSMENT HEARING PROJECT 862, DODD ROAD, ETHAN /CAMBERWELL DRIVE TO WESCOTT ROAD FINAL ASSESSMENT HEARING Public Works Director Colbert gave a staff report regarding the final assessment roll for Project 850 (Dodd Road to Ethan Drive /Camberwell Drive -Street, Utility and Trail Improvements) and Project 862 Dodd Road, Ethan /Camberwell Drive to Wescott Road. Mayor Awada opened the public hearings for both projects. John Bueller, representing 4145 Dodd Road requested that his property be reduced to only one lot equivalent. There being no further public comment, Mayor Awada closed the public hearing and turned discussion back to the Council. It was agreed that Mr. Bueller's property be reduced to only one lot equivalent. Councilmember Awada moved, Councihnember Tilley seconded a motion to approve the modified final assessment roll for Project 850 (Dodd Road, Diffley Road to Ethan Drive /Camberwell Drive -Street, Utility and Trail Improvements) reducing the street related assessment for Parcel 10-32990-010-11 from two to one lot equivalents and authorize its certification to Dakota County for collection. Aye: 4 Nay: 0 Bakken abstained. Councihnember Awada moved, Councihnember Tilley seconded a motion to approve the fmal assessment roll for Project 862 (Dodd Road, Ethan Drive/Camberwell Drive to Wescott Road -Street, Utility and Trail Improvements) and authorize its certification to Dakota County for collection. Aye: 5 Nay: 0 Eagan City Council Meeting Minutes December 17, 2002 Page 7 NEW BUSINESS DRAFT FRIENDS OF PATRICK EAGAN PARK RESOLUTION City Administrator Hedges introduced this item regarding a resolution drafted by Friends of Patrick Eagan Park regarding a greenway area in central and southern Eagan. John Conrad representing Friends of Patrick Eagan Park made a brief presentation. Councilmember Carlson moved, Councilmember Tilley seconded a motion to approve a resolution prepared by Friends of Patrick Eagan Park regarding a greenway area in central and southern Eagan. Aye: 5 Nay: 0 2003 FEE SCHEDULE ESTABLISHING FEES FOR VARIOUS CITY SERVICES, SUPPLIES AND MATERIALS City Administrator Hedges introduced this item regarding the 2003 Fee Schedule establishing fees for various City Services, supplies and materials. Director of Administrative Services VanOverbeke gave a staff report. Councihnember Carlson moved, Councilmember Fields seconded a motion to adopt a resolution approving the 2003 Fee Schedule establishing fees for various City services, supplies and materials (tubing fees for Trapp Farm Park will remain the same as 2002 pending Committee review. Tobacco License Fees will be reviewed after report regarding violations in 2002). Aye: 5 Nay: 0 PRELIMINARY SUBDIVISION (ZEHNDER PONDS) BRAD SWENSON City Administrator Hedges introduced this item regarding a preliminary subdivision to create two single- family lots upon approximately 1.4 acres located north of Lone Oak Road between Pilot Knob Road and Lone Oak Lane. Senior Planner Ridley gave a staff report. Councilmember Bakken moved, Councilmember Tilley seconded a motion to approve a Preliminary Subdivision to create two single-family lots upon approximately 1.4 acres located north of Lone Oak Road between Pilot Knob Road and Lone Oak Lane in the SE '/, of Section 4, subject to the following conditions : Aye: 5 Nay: 0 1. The developer shall comply with these standards conditions of plat approval as adopted by Council on February 2, 1993: A1, B1, B2, C1, C2, D1 and E1. 2. The property shall be platted. 3. Architectural designs and construction methods for new construction within the development shall incorporate sound attenuation standards sufficient to achieve an interior sound level of 45 dBA as compared with a noise level of 65 DNL. 4. The developer shall be responsible for installing and maintaining erosion control measures in accordance with City engineering standards. The development is also subject to the City's recently codified land disturbance and erosion control regulations. 5. A public improvement project providing for a pipe from, and acquisition of ponding easement over, Pond HDP-1, shall be approved by the City Council prior to final subdivision approval for this development. 6. All well and septic systems within the subdivision shall be abandoned in accordance with City and Dakota County standards. 7. This development shall dedicate restricted access, as required by Dakota County, along Lone Oak Road. 8. Across easement providing for vehicle ingress and egress and maintenance of the shared driveway shall be prepared for review and approval by the City Attorney prior to fmal subdivision approval. 9. This development shall meet the City's water quality requirements through cash dedication in lieu of treatment ponding. 10. Erosion control practices should be properly installed and effectively maintained throughout the development process to prevent and minimize soil loss and negative impacts to down-gradient resources and water quality. 9 Eagan City Council Meeting Minutes D R A F T December 17, 2002 Page 8 11. The applicant shall submit a revised tree preservation pan, considering staff s calculations and providing for required tree mitigation in the amount of 14 Category A trees, or an equivalent combination of Category B or Category C trees. 12. Tree Protective measures (i.e. orange colored silt fence or 4 foot polyethylene laminate safety netting) shall be installed at the Drip Line or at the perimeter of the Critical Root Zone, whichever is greater, of significant trees/woodlands to be preserved on-site. 13. The applicant shall contact the City Forestry Division and set up apre-construction site inspection at least five days prior to the issuance of the grading permit to ensure compliance with the approved Tree Preservation Plan and placement of the Tree Protection Fencing. 14. This development shall be responsible for a cash parks dedication and a cash trails dedication for two lots payable prior to release of the plat for recording at the rates then in effect. ADMINISTRATIVE AGENDA An update regarding the December 16, 2002 Operations Committee Meeting (Community Center) was given. The Committee requested action by Council to authorize the following: • Add additional cabinetry to the east meeting room • Hiring freeze for the Community Center until the Committee makes a staffmg recommendation to Council • Change the paint color in the locker rooms and bathrooms (currently painted green) Councihnember Bakken moved, Councihnember Fields seconded a motion to authorize a hiring freeze for the Community Center, awaiting a recommendation by the end of January, 2003. Aye: 5 Nay: 0 Councilmember Bakken moved, Councihnember Fields seconded a motion to authorize additional cabinetry be constructed in the east meeting room. Aye: 5 Nay: 0 Mayor Awada moved, Councilmember Fields seconded a motion to authorize repainting the Community Center locker rooms and rest rooms that are currently painted green. Aye: 3 Nay: 2 Bakken and Tilley opposed. Councilmember Tilley requested that Item X of the Consent Agenda be opened for reconsideration. Mayor Awada moved, Councihnember Bakken seconded a motion to reconsider item X of the Consent Agenda: Final Subdivision, Waters Edge -McDonald Construction, Inc. Aye: 5 Nay: 0 Mayor Awada moved, Councilmember Bakken seconded a motion to approve the Final Subdivision, Waters Edge -McDonald Construction, Inc. Aye: 4 Nay: 0 Tilley abstained. Mayor Awada called a recess at 10:10 pm and immediately convened a meeting of the Economic Development Authority. After adjournment of the EDA, the Mayor reconvened the Council meeting at 10:15 pm, concluded the cable broadcast portion and introduced "Visitors to be Heard". There being no public comment, the Council meeting was adjourned at 10:16 pm. Date Deputy City Clerk If you need these minutes in an alternative form such as large print, Braille, audio tape, etc., please contact the City of Eagan, 3830 Pilot Knob Road, Eagan, MN 55122, (651) 681-4600, (TDD phone: (651) 454-8535). The City of Eagan is committed to the policy that all persons have equal access to its programs, services, activities, facilities and employment without regard to race, color, creed, religion, national origin, sex, disability, age, sexual orientation, marital status or status with regard to public assistance. /O Agenda Information Memo January 7, 2003 Eagan City Council Meeting B. PERSONNEL ITEMS Item 1. Clerical Technician III/Community Development-- ACTION TO BE CONSIDERED: To approve the hiring of Gina Roggenbuck as a Clerical Technician III in Community Development. Item 2. Part-time Seasonal Broomball/Boot Hockey Officials-- ACTION TO BE CONSIDERED: To approve the hiring of Randy Boyden, Keith Wallace and Brad Champlin as part-time seasonal broombalUboot hockey officials. Item 3. Part-time Seasonal Preschool Program Instructor-- ACTION TO BE CONSIDERED: To approve the hiring of Denice King as a part-time seasonal preschool program instructor. Item 4. Resignation/Police Officer-- ACTION TO BE CONSIDERED: To accept the resignation of Police Officer Robert Rollins. Item 5. Time Spent Profile Review-- ACTION TO BE CONSIDERED: To approve the change in status for the Water Resources Technician position from Compensation Range G to Compensation Range H as a result of a Time Spent Profile review. /1 Agenda Information Memo January 7, 2003 Eagan City Council Meeting C. RATIFY CHECK REGISTERS ACTION TO BE CONSIDERED: To ratify the check registers dated December 19, 2002, December 26, 2002 and January 2, 2003 as presented. ATTACHMENTS: • Check registers dated December 19, 2002, December 26, 2002 and January 2, 2003 are enclosed without page number. /a Agenda Information Memo January 7, 2003, Eagan City Council Meeting Aaarove a Lease Agreement Between the City of Eagan and St. Croix Harley Davidson ACTION TO BE CONSIDERED: The action is to approve a lease agreement between the City of Eagan and St. Croix Harley Davidson. The approval of this lease will enable the police department to lease two motorcycles for one year at a total cost of two dollars. FACTS: • The Eagan Police Department will use the motorcycles for traffic enforcement and other outreach programs to promote traffic safety throughout Eagan. • Donated funds from the Eagan Citizen's Crime Prevention Association will be used to equip the motorcycles with safety equipment. • The lease agreement was reviewed by the Eagan City Attorney and suggested changes to the document were made. ATTACHMENTS Lease Agreement ' ~ ~ ~ _ ~/• /~ 2003 HARLEY-DAVIDSON FLHTPI LEASE THIS AGREEMENT is made and entered into this 7~' day of January, 2003 by and between St. Croix Hazlet'-Davidson, Inc., a Wisconsin corporation (hereinafter the "Lessor") and the City of Eagan, a Minnesota municipal corporation (hereinafter the "Lessee"), for the purpose of lending to the Lessee Harley-Davidson Motorcycles. RECITALS WHEREAS, this Agreement is entered into by the City under the authority of Minn. Stat. §§412.21 l and 412.221. WHEREAS, the City is desirous of leasing motorcycles for its police department use in patrol and law enforcement duties and the Lessor or desirous of leasing certain motorcycles to the City for a reasonable cost. WHEREAS, it is in the best interest of the City and its residents for it to lease the motorcycles from the Lessor under the terms and conditions of this Agreement. NOW, THEREFORE, based on the foregoing, the Parties hereto agree as follows: 1. Equiyment. 2003 Hazlet'-Davidson Police Motorcycles with the complete description provided on the attached specification sheet. The model will be FHLP-I with windshield (hereinafter the "Motorcycles"). 2. Agreement Tenns. This Agreement shall be effective as of the date of execution for a period of twelve (12) months. Motorcycles leased under this Agreement aze to be used for police and related activities only. No more than one person shall be on a Motorcycle leased under this Agreement and the person operating the Motorcycle shall be authorized by law and City police policy to operate the motorcycle. 3. Payment Period. Lessee shall pay one yeazly lease payment of One Dollar ($1.00) per Motorcycle. Payment does not include the cost of optional or additional equipment not otherwise included in the specifications of the Motorcycles leased hereunder as set forth in Paragraph 1 abave, full maintenance or insurance costs. 4. Insurance. At its own expense, the Lessee shall cant' casualty insurance and public liability and property damage insurance sufficient to protect the full value of the Motorcycles, and to protect the Lessor from liability in all events. The Lessee shall carry workman's compensation insurance covering all of its employees working on or about the Motorcycles. Upon request, Lessee shall furnish to Lessor certificates or other satisfactory evidence of all insurance coverage described above as required terms and conditions of this Agreement. / `f 5. Hold Harmless Indemnification Between Parties. The Lessee hereby agrees to protect, defend, indemnify and hold harmless the Lessors up to the limits of the municipal immunity as provided by state statute from and against any and all losses, penalties, damages, settlements, costs, chazges or other expenses or liabilities arising out of the negligence of the Lessee or its employees in the use or operation of the Motorcycles leased hereunder, but not for any loss, claim, damage, action or the like arising out of the negligence acts of the Lessor. Nothing in this Agreement shall be construed to waive any rights, privileges, immunities, or tort damage limitations available to the City under federal or state law, in the event any person or party brings claim against the City as a result of the use or operation of a Motorcycle leased under this Agreement. 6. Liens. The Lessee shall not directly or indirectly create, incur, assume or suffer to exist any mortgage, pledge, lien, chazge, encumbrance or claims on or with respect to the Motorcycles, except with respective rights of the Lessor as herein provided. Lessee shall promptly, at is own expense, take such action as chazge, encumbrance or claim not expected above if the same shall azise at any time due to Lessee's action or inaction. 7. Terms and Fees. The Lessee shall pay all appropriate taxes or fees, or similar charges imposed by virtue of the Lessee's ownership, possession or use of the Motorcycles during the term of this Agreement. 8. Care and Use of Equipment. The Lessor agrees to maintain the Motorcycles pursuant to the manufacturer's standard and preventive maintenance procedures and recommendations. All repairs and maintenance shall be made at St. Croix Hazley-Davidson, Inc., 2060 Highway 65, New Richmond, Wisconsin 54017. The Lessee, at its own cost and expense, shall ensure delivery of the Motorcycles to the above address at regular maintenance intervals set up by Lessor in accordance with the service schedule as provided in the owners manual. The Lessee shall protect the Motorcycles from deterioration other than normal wear and tear. The Lessee shall use the Motorcycles for police related activities only, without abuse, and shall not make modifications, alterations or additions to the Motorcycles (other than normal operating accessories or controls) without the written consent of the Lessor, which shall not be unreasonably withheld. The Lessor shall have the right, after notifying Lessee, and during regular business hours to enter upon the premises where the Motorcycles aze located in order to inspect, observe or otherwise protect the Lessor's interest, and the Lessee shall afford them the reasonable opportunity to do so. 9. Damaggor Deterioration of Motorcycles. In the event the Motorcycles are partially damaged or destroyed due to the negligent action of the Lessee or its employees prior to the end of the term of this Agreement, the Lessee will promptly have the Motorcycles repaired and restored to their original condition and working order at their expense. In the case of theft or total loss of any of the Motorcycles, the replacement value of each Motorcycle shall be Fifteen Thousand Three Hundred and No/100 Dollars ($15,300.00). /S 10. _Rider Responsibility and Privileges. The Lessee shall be responsible for keeping the Motorcycle(s) clean and for reporting any repairs needed to the Lessor. The Lessee may allow riders to use the Motorcycles to travel to and from work, provided that the Motorcycles are fully insured by the Lessee and that the distance to and from work is no more than thirty (30) miles each way. 11. Events of Default and Remedies. Lessee shall be deemed to be in default of this Agreement upon the happening of any of the following events of default: (A) Lessee fails to make payment of the lease or other payments required hereunder; or (B) Lessee fails to comply with any other term, covenant, or condition contained herein. Upon the occurrence of any event of default as specified above, should Lessee fail to remedy such event or default with all reasonable dispatch within a period of thirty (30) days, Lessor shall have the right, after written notice to the Lessee, to pursue any of the following remedies: (1) Repossession of the Motorcycles, including the right to sell or lease the Motorcycle for the account of the Lessee, and hold Lessee liable for all payments up to the effective date of such sale or lease. Lessor may hold Lessee liable for the difference of payments which would be due under the Agreement and the amount received by the Lessor for the sale or lease of the Motorcycles upon default. (2) Any action at law or in equity may appear necessary to collect the payments then due and thereafter to become due, or to enforce performance and observance of any obligation, agreement or covenant of Lessee under this Agreement. Lessor shall be deemed to be in default under this Agreement upon failure to comply with term, covenant or condition herein. 3 /6 LESSEE: CITY OF EAGAN, a Minnesota municipal corporation By: Patrick J. Geagan Date Its: Mayor By: Maria Karels Date Its: City Clerk LESSOR: ST. CROIX HARLEY-DAVIDSON, INC., a Wisconsin corporation By: _ Its: Date /7 AGENDA MEMO JANUARY 7, 2003 CONSENT AGENDA: Special City Council meeting for January 14, 2003. ACTION TO BE CONSIDERED: Set a Special City Council meeting for January 14, 2003 at 4:30 p.m. FACTS: January 14, 2003 has been designated as the date to interview Advisory Commission applicants. /£~ Agenda Information Memo January 7, 2003 F. CONTRACT Ol-12B, JULY 2000 STORM MITIGATION LANDSCAPING IMPROVEMENTS ACTION TO BE CONSIDERED: Approve the final payment for Contract Ol-12B (July 2000 Storm Mitigation -Landscaping Improvements) in the amount of $62,812.91 to Switzer's Nursery and Landscaping, Inc., and accept the improvements for perpetual City maintenance subject to warranty provisions. FACTS: • Contract Ol-12B provided for the landscaping improvements associated with some of the stone sewer improvements completed as part of the July 2000 Super Stone, including Beacon Hill/ Penkwe Way (Area #6 -Project 824), Evergreen Park/Ponds BP-15 & BP-16 (Area #5 -Project 831) and Beaver Dam Road/Pond AP-22 (Area #3 -Project 839), as outlined and discussed in the Preliminary Design Report (April 2001). • These improvements have been completed, inspected by representatives of the Public Works Department, and found to be in order for favorable Council action of final payment and acceptance for perpetual maintenance subject to warranty provisions. /9 Agenda Information Memo January 7, 2003 ~, ~. APPROVE CHANGE IN MANAGEMENT ON LIQUOR LICENSE AT HOLIDAY STATIONSTORE #247 ACTION TO BE CONSIDERED: To approve a change in management on the off-sale beer license for Holiday Stationstore #247 located at 3615 Pilot Knob Road. FACTS: • A change in management has occurred at the above referenced location. The new manager of Holiday Stationstore #247, Michael Kjar, has completed the necessary forms and paid the appropriate investigation fee. • The Eagan Police Department has conducted an investigation of the new manager and finds no reason for denial. ~-I-. ~ APPROVE CHANGE IN MANAGEMENT ON LIQUOR LICENSE AT JOE SENSER'S ACTION TO BE CONSIDERED: To approve a change in management on the on-sale liquor license for Joe Senser's located at 3010 Eagandale Place. FACTS: A change in management has occurred at the above referenced location. The new manager of Joe Senser's, Steven DeZiel, has completed the necessary forms and paid the appropriate investigation fee. The Eagan Police Department has conducted an investigation of the new manager and finds no reason for denial. ~D Agenda Information Memo January 7, 2003 ~ APPROVE NAME CHANGE ON LIOUOR LICENSE FROM COMER'S LIQUORS UNLIMITED TO COMER'S LONE OAK LIOUORS ACTION TO BE CONSIDERED: To approve a name change on the liquor license for Comer's Liquors Unlimited, located at 3090 Courthouse Lane Unit 2, to Comer's Lone Oak Liquors. FACTS: • Comer's Liquors Limited, the entity that holds the on-sale liquor license formerly doing business as Comer's Liquors Unlimited, 3090 Courthouse Lane, has requested a name change to doing business as Comer's Lone Oak Liquors. There was no change in stock ownership or management of the off-sale liquor store. Staff does not find any reason to deny the name change. a~ Agenda Information Memo .lanuary 7, 2003 Eagan City Council Meeting f ~. APPROVE SUMMARY OF ZONING ORDINANCE FOR PUBLICATION ACTION TO BE CONSIDERED: Approve the summary of a complete update of Chapter 11 of the Eagan City Code entitled "Land Use Regulations (Zoning)" for publication. FACTS: The Zoning Ordinance Amendment to Chapter 11 was approved at the regular City Council meeting held September 17. 2002. Subsequently, it was discovered that certain recent amendments to Chapter 1 1 had not been incorporated and, as such, the revised Chapter 1 1 was adopted by Council action at their regular meeting of December 17, 2002. It is appropriate for the City Council to authorize the publication of the moditied Chapter 11. ATTACHMENTS: (I) The official swnmary of Chapter 11 is attached as pages ~ 3 through ~a The following is the official summary of the following ordinance approved by the City Council of Eagan on December 17, 2002: ORDINANCE NO._ SECOND SERIES An ordinance of the City of Eagan, Minnesota, adopting a complete update of Chapter I 1 of the Eagan City Code entitled "Land Use Regulations (Zoning)". The ordinance addresses the following items: 11.10 Intent and Purpose ................................................................................................... 11.20 Rules of Language Construction .............................................................. 11.30 Definitions ............................................................................................................................ I 11.40 General Provisions Subc1. 1. Application ......................................................................................................... ?, ,Subd. 2. Separability ........................................................................................................ ~ ~ Subd. 3. Lot provisions .................................................................................................... ~, .Subd =1. Required yards and open space .......................................................................... ~~ Subd. ~. Accessory buildings and structures .................................................................... 23 Subd. 6. Traffic visibility ................................................................................................. ?~ Subd 7. Public utility service .......................................................................................... ?~ Subd. 8. Structures in public rights-of-way ...................................._................................ ?~ Subd. 9. Nonconforming structures and uses ................................................................... ?~ 11.50 Administration and Enforcement Suhd. 1. Enforcing Officer ............................................................................................... ~7 Subd 2. Board of Adjustments and Appeals ................................................................... 27 Subd. 3. Variances ............................................................................................................ ?8 .Subd. a. Conditional Use Permits .................................................................................... ?9 Subd 5. Zoning Amendments .......................................................................................... 30 Subd. 6. Interim Use Permits ........................................................................................... 32 11.60 Use Districts and Overlays Subd. 1. Classification ................................................................................................. 34 Subd. 2. Zoning map ................................................................................................... 34 Subd. 3. A Agricultural ~' - .Subd. 4. E Estate ................................................................................................ 3 7 Subd. S. R-1 Residential Single District ................................................................ 39 Subd. 6. R-1 S Residential Single -Small Lot District ............................................ 41 Subd. 7. R-2 Residential Double District .............................................................. 43 .Subd. 8. R-3 Residential Townhouse District ....................................................... 4~ Subd 9. R-4 Residential Multiple District ............................................................ 47 SubcL 10. LB Limited Business District ................................................................. 49 Szrbd. I1. NB Neig)iborhood Business District ....................................................... 5? Subd. 12. GB General Business District ................................................................. » Subd. 13. CSC Community Shopping Center District .............................................. ~8 Subd. Id. I-1 Limited Industrial District ................................................................ 60 Subd I.i. 1-2 General Industrial District ................................................................ 63 ,Subd. 16. R-D Research and Development Park District ......................................... 6> ,Subd' 1 i. BP Business Park District ...................................................................... 67 Subd. 18. PD Planned Development District .......................................................... 69 Subd. 19. P Park District ...................................................................................... 78 ,Subd. 20. PF Public Facilities/institutional District ............................................... 79 .Subd. 21 T Transitional Zoning District ............................................................. 81 11.65 S - Shoreland Overlay District ...................................................................................... 8? 11.66 FP - Floodplain Overlay District ................................................................................. 1 I 11.70 Performance Standards Szrbd I. Purpose ........................................................................................................ I I A ,Subd. 2. Land reclamation and mining ...................................................................... 1 1 ~~ Subd 3. Building Permit and Certificate of Occupancy ........................................... I I ~~ ,Strbcl. -l. Off-street parking and outdoor storage ........................................................ 1 1 ~~ .Subd ~. Minimum required off-street parking .......................................................... I ~ 1 Subd. 6. Joint parking facilities ................................................................................. 1?, Subd. 7. Parking space design ................................................................................... I ? ; ,Subd. 8. Parking lot setbacks ..................................................................................... 1 ~' Subd. 9. Parking ramps .............................................................................................. I?3 Subd. 10. Residential drivewavs .................................................................................. 1 Strbd. 11. Off-street loading areas ............................................................................... I Subd 12. Landscaping ................................................................................................ 124 Subd 13. Tree preservation ......................................................................................... 1; 0 Strbcl l,t. Hours of operation ....................................................................................... 136 Subd. Li. Additional requirements, exceptions and modifications ............................. 136 Subd 16. Fences .......................................................................................................... 13 7 Subd. 17. Convenience store design.....• ...................................................................... I i7 Subd. 18. Commercial car washes ............................................................................... 138 Subd 19. Design and construction requirements for Multiple Family, Office, Commercial, Industrial, and Public and Institutional developments........... I38 Subd 20. Outdoor display by businesses, outdoor storage, temporary outdoor events. and seasonal outdoor sales .......................................................................... 143 Subd 21. Home occupations ....................................................................................... 145 Subd 22. Manufactured Home Park developments ....:............................................... 145 Subd. 23. Antennae, satellite dishes, wind energy conversion systems and towers.... 14h ,Subd. 2.1. Site plan review ........................................................................................... 151 Subd. 25. Placement, erection, and maintenance of signs ........................................... 152 Copies of the entire text of this ordinance are available for inspection by any person durin~~ normal business hours at the office of the City Clerk at the Eagan Municipal Center, 3830 Pilot Knob Road , Ewan, Minnesota 55122. Effective date: This ordinance shall take effect upon its passage and publication. a~ AGENDA MEMO JANUARY 7, 2003 CONSENT AGENDA: K. 2003 Trash Hauler License Renewal ACTION TO BE CONSIDERED: Approve 2003 Trash Hauler License renewal for Veit Container, Buckingham Companies, Adex Group and Keith Krupenny. FACTS: • The applications have been reviewed by staff and deemed in order. ~s AGENDA MEMO JANUARY 7, 2003 CONSENT AGENDA: L. 2003 Pet Shop License Renewal ACTION TO BE CONSIDERED: Approve 2003 Pet Shop License renewal for Petco. FACTS: • The application have been reviewed by staff and deemed in order. a6 Agenda Information Memo January 7, 2003, Eagan City Council Meeting V. PUBLIC HEARINGS A. VARIANCE TO FRONT YARD SETBACK FOR THREE SEASON PORCH 4320 HAMILTON DRIVE (Cheryl and Dan Seanoa) ACTIONS TO BE CONSIDERED: To approve a 10 foot variance to the required 30 foot front yard setback, to build a three season porch at 4320 Hamilton Drive; subject to the conditions suggested in the staff report. FACTS: • There is an existing deck in the proposed location of the porch. • The existing deck encroaches 10 feet into the required setback. • The porch addition will utilize the existing deck floor; therefore the porch should not increase the encroachment of the existing deck. • The porch will be 16 feet by 28 feet. • The porch will not interrupt the site line of traffic and is not in the clear view triangle. ATTACHMENTS (1): Planning staff report, pages to a~ PLANNING REPORT CITY OF EAGAN REPORT DATE: December 19, 2002 APPLICANT: Cheryl and Dan Seanoa CASE: 26-VA=35-12-02 HEARING DATE: January 7, 2003 PROPERTY OWNER: Cheryl and Dan Seanoa APPLICATION DATE: December 11, 2002 REQUEST: Variance PREPARED BY: Sheila O'Bryan LOCATION: 4320 Hamilton Drive COMPREHENSIVE PLAN: LD, Low Density ZONING: PD, Planned Development SUMMARY OF REQUEST Cheryl and Dan Seanoa are requesting a l 0 foot variance to the required 30 foot front yard setback for a three season porch addition, located at 4320 Hamilton Drive. AUTHORITY FOR REVIEW City Code Chapter 11, Section 11.40, Subdivision 3C states that the Council may grant a variance and impose conditions and safeguards only if: 1. The Council shall determine that the special conditions applying to the structures or land in question are peculiar to such property or immediately adjoining property and do not apply generally to other land or structures in the district in which said land is located, and that the granting of the application is necessary for the applicant. 2. The granting of the proposed variance will not be contrary to the intent of this Chapter and the Comprehensive Guide Plan. 3. That granting of such variance will not merely serve as a convenience to the applicant, but is necessary to alleviate demonstrable hardship or difficulty. CODE REQUIREMENTS The City Code requires a 30 foot front yard setback in the R-1 Zoning District. This planned development was approved expecting to maintain all minimum required setbacks. as Planning Report -Cheryl and Dan Seanoa January 7, 2003 Page 2 BACKGROUND/HISTORY This property is part of the Lexington South Planned Development. There was an amendment to the Planned Development in 1987 to rezone this property from Community Shopping Center (CSC) Planned Development to Single Family (R-1) Planned Development. The Planned Development amendment allowed for smaller single family lots that were expected to comply with R-1 zoning requirements. EXISTING CONDITIONS This property is situated at the corner of Lexington Pointe Parkway and Hamilton Drive. The house is set back about 40 feet from the north property line (Lexington Pointe) and about 30 feet from the west property line (Hamilton Drive). There is an existing deck on the back of the house EVALUATION OF REQUEST This single family home is located on an 11,586 square foot corner lot. The home was constructed in 1989. As part of the Planned Development Agreement the lots were allowed to be smaller than the required minimum 12,000 squaze feet for single family homes in the R-1 district. There is a maximum allowable 20% building coverage in the R-1 District. Including the house, garage and proposed addition the lot coverage would be 18%. The proposed 16'X28' addition would replace the existing deck, which encroaches 10 feet into the required 30 foot setback. ~5 4320 Hamilton Drive -west view Planning Report -Cheryl and Dan Seanoa January 7, 2003 Paee 3 The deck was in existence when the applicant purchased the property. The deck already encroaches into the front yard set back 10 feet. Essentially the applicant would like to use the base of the deck for the floor in the three season porch; this will not increase the already existing encroachment. The proposed three season porch would not block the site line for oncoming traffic and is clearly outside of the 30 foot clear view triangle. The property line to the north angles slightly towards the back of the lot establishing a different setback for the rear of the addition from the front of the addition. The rear of the addition is closer to the property line than the front of the addition because of the slanting lot line. APPLICANT'S ESTIMATE OF HARDSHIP The location for the three season porch is based on the layout of the house. The porch will be located off the kitchen which is most convenient for the intended use of the porch. There is an existing deck in the porch location; the base of the deck will be used for the porch. Cheryl's mother also lives in the house and having fewer stairs to contend with is ideal. SUMMARY/CONCLUSION The applicants are requesting a 10 foot variance to the 30 foot front yard required setback for a 16'X28' three season porch addition. The existing deck is proposed to be the floor in the three season porch which encroaches 10 feet into the setback. This property is on a corner lot and is zoned Planned Development. ACTION TO BE CONSIDERED To approve a 10 foot variance to the required 30 foot front yard setback for a three season porch addition located at 4320 Hamilton Drive; subject to the following conditions: If within one year after approval, the variance shall not have been completed or utilized, it shall become null and void unless a petition for extension has been granted by the council. Such extension shall be requested in writing at least 30 days before expiration and shall state facts showing a good faith attempt to complete or utilize the use permitted in the variance. 2. The materials and color of the addition shall match the existing principle structure. 3. The addition shall be subject to all other R-1, Single Family Residential zoning standards. 4. The addition shall not encroach more than 10 feet into the required 30 foot front yard setback. 30 Eagan boundary Location Map ~ Slreet Centerline Parcel Area building Footprint n~ ~ ~ L ~ ~ G' C ~ ~ LB~C o 6 G `~ ~ ~~~ ~ r ~f~ c • ~ 1 ~ \~ . r~~ U y ~,. ~ ~ ~ 6 t C ~ ~G ~~ ~. v ~ ~ ``G "~`:., _ ~..~ ~ ~ e ~ c ~ ~ ~ ~` ~ c e ~ CL•^C> CMG ^ qy[ C p ~ „~ ~ 8 D ~ ~ © C 4C L` C G ~" ~~ ° F ~ ~' ~G~'~t....C'Q "°' _~.'.' ~ ~, E ._s ~.. `l n ~ or r ~ ---- r c ` • ~. u ~ ~ C *ea 7 - - C G - L C • L C a 3 ' ~ ~ ~ ~ C "" '~ s w a _ °~ %s s ~, ' '~, ~ Sub'ect Site ~~ L C ~ ~ G ~ , _ ~ p i ~: ~ ~' - ~ c .„w~ r r~ ~~~ Jas ~ - '` ~[5 ~t ~~•• < ~y L = ~ q e - V €~ ~ J ~, ~; ~ ~ c ~ . 6 C v r c ,~~ ii !:r ~,- ~ < <; ~~ e._ ~ ~ ca !, „~ ~ v ~ ~ ~' ~ t °° Q ' .~ a .= ~ ~ ' L r f~ ~ G S`' V _ u s >• , -, ,._w v .' ,, ; _. ,~ --~ G ~ ~ ~; o ~ 1000 D 1000 2000 Feet Development/Developer: 4320 Hamilton Dr. Application: Variance ~/ Case No.: 26-VA-35-12-02 Map Pn[parstl ualnp ERSI Mcyiaw 3.1. Paru1 Wse map tlau provftletl by Dakota County Land Survey DepanmBM and Ia current as of March 2002. DED FOR REFERENCE USE ONLY N W E City of Eagan ps ~ tie ~,: ~ S ~ ~, TNIS MAP IS INTEN The City of Eagan and Dakota County do not guarantee the accuracy of this Information and are S Community Development Department not responsible for errors or omissions. Written narrative describing the request or proposal: We aze Dan and Cheryl Seanoa residents of Eagan and wish to petition for a variance to put up a three-season porch on an existing deck. We purchased our home at 4320 Hamilton Drive, Eagan, in February 1997, shortly before Dan retired from the U.S. Army. It is a beautiful home with a beautiful deck and we aze very happy in Eagan and have no intention of ever moving again. We had planned to convert either the upper deck off the living room or the lower deck off the kitchen into athree-season porch. We chose the lower deck because of the convenience of it being off the kitchen and we enjoy using the deck for meals. We also have Cheryl's mother living with us and since she stays on the lower level of the house she would only have a few stairs to contend with rather than two flights. For these two reasons we chose the lower deck as our best option. As we got into the final stages of planning and applying for permits through our builder, Stellaz Roofing and Remodeling, we found out that the previous owners had installed the deck and did not apply for the proper permits. We also found out that there was a problem with the setback and had to apply for a variance for this project. We want to use the existing deck for the floor and just put a roof and a 36" boazd wall and the remainder screen wall up so we can enjoy the area more throughout the yeaz. I understand the cities concern for this project but I assure you we also have the cities concerns in mind and take great pride and care in our home and yazd. The sight line at the corner of Hamilton Drive and Lexington Point Parkway will not be obstructed by this home improvement since there is about 50 feet from the corner to the site line of the project. Motorists will be able to view traffic just as cleazly as they always have been in the past. We hope to begin the project in eazly January and complete it within one month. The plans have been approved and we are just waiting on approval of this request. We respectfully request approval of this request and assure you as Eagan homeowners we will continue to maintain our home and yard with the utmost pride and respect. Sincerely, e6Z- ~-~-~v~.~. Dan~heryl Seanoa 3~ OJ-V i v TRI-LAND CO. S,TE PLAN FOR - SURVEYING SERVICES THORSON HOMES 1260 YANKEE DOODLE ROAD EAGAN, MINNESOTA 55126 LEGAL DESCRIPTION LOT.~,BLOCK~, LEXINGTON POINTE 2nd ADD. ACCORDING TO THE RECORDED PLAT THEREOF DAKOTA COUNTY,MINNESOTA SCALE: 1"=30' - p p,RKW P~o.a R~a~ O9 05• p1N~E p,3 op N P~~ ~ ~ ~„^22• O 98o.9R.~40`.~g 45 i~,, •3 J~ N~2 ,NA'M' , b. 9 T \ ati e o \ •~~ 9 o b. ~: \Js sei p ~~~ o o yc~ jO \ O \ m ,~ '~ W y ~ ~ ~~ • / ,~ o0 ~~ '9~ ~ ; ~` ~ / ~ ~\ jab `\ r• vy 02 B ~°}~ '/ e LOT ~~ a .ss .~ 8 63~p . 9 i ti~ ' LEGEND INVERT ELEVATION AT SERVICE EXTENSION= o DENOTES IRON MONUMENT PROPOSED GARAGE FLOOR ELEVATION^ ~~~;~_~~',-~~ ~ DENOTES WOOD HUB SET PROPOSED FIRST FLOOR ELEVATION = ~7~_ DENOTES EXISTING SPOT PROPOSED BASEMENT FLOOR • 0.E NATION E LE VAT i ON DENOTES PROPOSED SPOT ELEVATION NOTE : VERIFY ALL FLOOR HEIGHTS WITH ~ DENOTES DRAINAGE DIRECTION FINAL HOUSE PLANS 1 Mr~by c~rtlty itwt this survey, plan or ~ report woa propond py n-t or under my ~~ nn~~i.!/_ ~ l A ~r 4.a' ,~. dir~et supMVisian and thot I am a duly &adl~y J, $ , Mn. Rt9. No. IS235 R~pi:t~r~d Lond Surveyor unON' the Lows of the Stoto of Minn~soto. Datt ~ ~D~c9~~~,~ ~~ r a ~ ~ ~ 4 ~ ~ ~ ~ ~ :~ ~ Ul .~ ` £ C ~ ~ J ~ T 2 J {.J ~ ~ J ~^` ~ ~~ ~.'l /' r ~ .7 j r J ,1 ? M S I :v ~~'t J ,~ J Agenda Information Memo January 7, 2003 Eagan City Council B. VARIANCE -RAY MILLER ACTION TO BE CONSIDERED: To approve a Variance to allow a detached garage in the front yard of property located at 785 Golden Meadow Road, legally described as Lot 4, Block 1, Sunset 13th Addition in the NW'/4 of Section 25. FACTS: • This lot was platted in May, 2002 as part of Sunset 13`'' Addition and contains the original house that was existing on the property prior to the subdivision. • The subdivision is now complete and the plat has been recorded. • This detached garage has been relocated and it now sits between the house and the public street. • A Variance to relocate the existing detached garage into the front yard of this lot containing the existing house was sought at the time of preliminary subdivision approval in December of 2001. The City Council denied the Variance at that time with the primary reason being that if the garage were attached to the home the Variance would not be needed. • The applicant's narrative indicates practical difficulties in attaching the garage to the house or in locating it elsewhere on the lot because of the placement of windows on the south side of the house, the existing layout of the house prevents a direct access between the house and garage, a rear yard location would require a longer driveway and there are physical obstacles to rerouting such a driveway. • The garage location satisfies required structure setbacks. The existing house is set back farther than the minimum required 30 feet, and the placement of the garage in the front yard establishes the front setback line on this property at 30 feet, which is consistent with other properties along Golden Meadow Road. ATTACHMENTS: (1) Variance Report, pages ~ through 3~ PLANNING REPORT CITY OF EAGAN REPORT DATE: December 27, 2002 APPLICANT: Ray Miller PROPERTY OWNER: Stuart and Roberta Pinsky REQUEST: Variance LOCATION: 785 Golden Meadow Road CASE: 25-VA-37-12-02 HEARING DATE: January 7, 2003 APPLICATION DATE: Dec. 20, 2002 PREPARED BY: Pamela Dudziak COMPREHENSIVE PLAN: LD, Low Density Residential ZONING: R-1, Single-Family Residential SUMMARY OF REQUEST Ray Miller is requesting approval of a Variance to allow a detached garage in the front yard on property located at 785 Golden Meadow Road, legally described as Lot 4, Block 1, Sunset 13tH Addition in the NW '/4 of Section 25. AUTHORITY FOR REVIEW City Code Chapter 11, Section 11.40, Subdivision 3C states that the Council may grant a variance and impose conditions and safeguards only if: 1. The Council shall determine that the special conditions applying to the structures or land in question are peculiar to such property or immediately adjoining property and do not apply generally to other land or structures in the district in which said land is located, and that the granting of the application is necessary for the applicant. 2. The granting of the proposed variance will not be contrary to the intent of this Chapter and the Comprehensive Guide Plan. 3. That granting of such variance will not merely serve as a convenience to the applicant, but is necessary to alleviate demonstrable hardship or difficulty. CODE REQUIREMENTS The City's zoning ordinance requires two enclosed parking stalls be provided for asingle-family dwelling. Detached accessory buildings maybe located in side or rear yards only. Detached 36 Planning Report -Ray Miller January 7, 2003 Page 2 accessory buildings cannot be placed in a front yard, which is defined as that area between the front lot line and the front building or setback line. BACKGROUND/HISTORY This lot is part of the Sunset 13th Addition subdivision, which was platted in May 2002. Sunset 13th Addition created three new lots west of the existing house. The detached garage was located further west of the house on the original development site. With the subdivision of the land, the original detached garage was relocated to the same lot as the existing house. The developer requested this same Variance with the Preliminary Subdivision for Sunset 13th Addition. The City Council approved the Preliminary Subdivision, but denied the Variance request, in December 2001. The stated reason was that if the garage were attached to the house, a Variance would not be necessary. EXISTING CONDITIONS Following the subdivision of the property, this lot was sold and the garage moved onto the lot. The garage location is between the existing house and Golden Meadow Road, which places it in the front yard. The garage satisfies the minimum structure setbacks from all property lines, including the 30-foot front yard setback, however, the City's zoning ordinance requires that detached accessory buildings be located only in side or rear yards. Consequently, a Variance is needed to allow the garage to remain detached and in its current location. EVALUATION OF REQUEST The location of the detached garage in the front yard between the house and the street is requested because it is the most suitable location for the garage on the lot. Attaching the garage to the house is not practical because of windows located on that side of the house. Aside yard location is not an option because side setbacks could not be satisfied. A rear yard location would result in greater disturbance to the land to bring the driveway past the existing home to the rear yard. Additionally, a rear yard location would be less convenient for access between the house and garage. The house is set back farther than the minimum 30 feet required, and the placement of the garage in front of the house maintains a consistent structure setback of 30 feet between this lot and the other adjacent lots. APPLICANT'S ESTIMATE OF HARDSHIP The developer has submitted a narrative that addresses the Variance request. The developer discusses other options that would not involve aVariance -- eliminate the garage, locate the garage further north on the property, or attach the garage to the south side of the home. Eliminating the garage is no longer an option because the City Code now requires two enclosed parking spaces for each single-family dwelling. 3~ Planning Report -Ray Miller January 7, 2003 Page 3 The applicant states that relocating the garage to the north side of the house (rear yard) would require a much longer driveway and would be difficult to reroute because of physical obstacles within the yard. The applicant indicates that placement of the garage in front of the house provides a consistent building setback with the other lots in the neighborhood since the existing house is set back farther than 30 feet. The primary reason for denial of this Variance request at the time of Preliminary Subdivision approval was that attaching the garage to the house would eliminate the need for the Variance. The applicant indicates that there are practical difficulties presented by attaching the garage due to the placement of windows on that side of the house, which would block daylight to the home. Also, there is no doorway for access directly between the dwelling and garage, and the layout of the house does not accommodate such a doorway. SUMMARY/CONCLUSION The applicant is requesting a Variance to allow a detached garage in the front yard at 785 Golden Meadow Road. This request was denied by the Council in December 2001, with the primary reasoning that attaching the garage to the house would eliminate the need for a Variance. The Variance is requested because of practical difficulties in attaching the garage to the house or locating it elsewhere on the lot. Aesthetically, whether the garage is attached or detached, the location and orientation of the garage on the property would not change. ACTION TO BE CONSIDERED To approve a Variance to allow a detached garage in the front yard on property located at 785 Golden Meadow Road, legally described as Lot 4, Block 1, Sunset l3'" Addition. If within one year after approval, the variance shall not have been completed or utilized, it shall become null and void unless a petition for extension has been granted by the council. Such extension shall be requested in writing at least 30 days before expiration and shall state facts showing a good faith attempt to complete or utilize the use permitted in the variance. 38 E»ssn Boundsry Location Map ~:~~ 'M Bulldins Footprlrtt j • L ~ r~ sit :, v k _ _ ~ / "~ `~' ~ •• ~ A ~ ~ a v ~ ~ ®`m e ~ P ~ a. 1, ma - • s •• ~. 4 ~ ~ , 9 s ' A •' o° e o ~ "- ~+ e sm + e s a t o A A ~ a~ 8 t3 eiaan 1000 ~~ ~®.~li ~ ~ ~~ I I ~ ~ a ~ l ®m .~ ~,, 1 IT~Ta6l ~ ~~P ~' ~ */ /+ e 0 a ® aW q 8 vo ®~~ ®d \~ a~ +r1a~v=y~ d, ® li ~~ $~~ I~9 ~ ~ ~~~~w~~ ~ ~ !d ~~ ro +p 1 ~ a .~ > ~ aaa Fa . a . ~ s N s 8 ee,5 , y ,f + ~ o a 7soaPr ! ~ 7 ~ ' . ~ f a ~ e+` ,. a 1i _ • .` ~ i ~ ~ oo ~~ ~ ~ 4 ' i c ~ c u t e ~ srrm u. a 0 1000 2000 Feet Development/Developer. Millerville, Inc. I Application: Variance Case No.: 25-VA-37-12-0 ~ (,~ / Yuw 7.1. p.rcN Ww Mep deu prorfeMA Map pnpand uafnp ER& Are by D.koY County Land Survey DapannrM and la etutent u W S.pMmb.r 2002 N City of Eagan This MA- IS INTENDED FOR REFERENCE USE ONLY w e M r N N E S 0 'T A Ce.rnwreny Wvlepnr.rrt MpeRrr.nl TM Clty of Easan and Dokota County do not susnntoo tho aeeuncy of this IMornation and arc not rosponsiblo fw coon p Otllleslons. S Surveyor's Certificate SURVEY FOR :stuart do Roberto Pinsky DESCRIBED AS :Lot 4, Block 1, SUNSET 13TH ADDITION City Of Eagan, Minnesol0 antl re5ervin9 easements of record. N89°49'14"E 104.22 N 3 i0 ~-• a •-' o 0 z s,}-. 7 I I I I I I I I I L- - - - - - - - - - I I - ~ I I I 1 I I I I I I I I 1 I I I ~ 1 I I I I I 1 ' I' I I ~ ~~ 1 ' I I I I I 1 ' I' I If • I 1 I f I I I I I I ~ j, I I °d6~, 1 ~ I I o` ~ ~ ~ ' a r I ' I I ~+ •R~~ I I ; ~ S% I 19 59-~ I ,,~ . I 6 00 ^;' ~ I I ' ~ C 1 ~ ~ I ~j I I ;8 ~ \Y I ° ;ti A I ' t3 00 ~ I ~::- `" '~ I ~- I - - - - - I ~ I I I ~ I N89°44'36"E 103. 6 g5 LDEN MEADOW ROA LOT S0. FOOTAGE = 27,904 PROPOSED ELEVATIONS Top of Foundation = Garage Floor = Basement Floor = Aprox. Sewer Service = Proposed Elev. Existing Elev. _ Drainage Directions = Denotes Ofisei Stoke = SCALE: ~ Mrn - 30 feel V V 5 i D BENCHMARK, MIN. SETBACK REQUIREMENTS Front - House Slde - Rear - Garage Side - I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT REPRESENTATION JOB N0: HEDL UND OF THE BOUNDARIES OF THE ABOVE DESCRIBED PROPERTY AS SURVEYED 02R-606 BY ME OR UNDER MY DIRECT SUPERVISION AND DOES NOT PURPORT TO ROOx. PAGE SHOW IMPROVEMENTS OR ENCROACHMENTS, ExCEPT AS SHOWN. PLANNING £NG/N££R/NC SURV£YlNG 2005 Pin Ook Drive / /~) Eogon, MN 55122 GATE 13~/1fo/Q~ _ `" CAD FILE Phone: (651) A05-6600 J R Y D. LINDGREN, L SURVEYOR Fa^ (651) A06-6606 ~ ~ / / /~ INN OTA LICENSE NU BER 14376 .~ ,. ~f/ rh To: City of Eagan From: Ray L. Miller, President of Millerville, Inc. Date: December 18, 2002 Re: Request for Variance at 785 Golden Meadow The purpose of this memo is ~ give a brief hisb~ry of events and to follow with a justification for the variance to not attach the garage ~ the house at 785 Golden Meadow. Upon preliminary plat approval for Sunset 13~' Addition in December of 2001 a variance was also requested in order to move the e~asting garage (which was located 50 feet from the house) adjacent to the existing house. The variance was requested because the garage was not proposed as attached to the house. There were four options in moving the garage: 1. Not to move the garage at all. Rather, leave the house without a garage. This option was not chosen because it was not consistent with the rest of the neighbofiood, i.e. all houses in the area have a garage. 2. Move the garage to the North side of the property. This was not a preferred option because the driveway wrould be bng and near impossible to route to the back of the property given the location of a boulder in a landscaped area of about 7' in diameter. 3. Move the garage to the South side of the house. Although the house sits at an angle when comparing it to those in the area, the garage could be set at the 30' set back and give the appearance of consistency with the rest of the neighborhood. 4. Move the garage to the South side of the house and attach it ~ the house. This option would not require a variance but it would present a hardship to the new owners of the property. The hardship is based on the existence of i°wce~gress windows in the lower level and one double window in the living room that would be eliminated by attaching the garage. ~;, ,~r The Council was presented with all tbr€e options and the reasons for our request of option #3. was not at the Council meeting because of another important meeting. I chose to attend the other meeting because I felt the Staff and I had come to agreement and that the Council would take the recommendation of the Staff to approve the variance. I was therefore not able to explain the issues surrounding option #4. The council chose option #4 and denied the variance because they claimed the garage could be attached and no hardship was known. Here are the reasons for the hardship if the garage were bo be attached: 1. The egress window located in the only bwer kvel bedroom would be eliminated. 2. The window in the lower level family room would be eliminated. 3. The window in the main level living room would be eliminated. 4. Alt three windows are located on the southern side of the house. Attaching the garage would eliminate all southern exposure of the sun to the house. 5. Usually a garage is attached to give access to the house from the garage. In this case access to the house would not make sense due m the existing fbw of the house. Half of the southern side of the house is a wall of cabinets in the kitchen. The other half of the wall is living room with the existing window. An entrance at that bcation would not make design sense. 6. In the December 2001 meeting, the Council suggested a "breezeway' as an alternative but this would still eliminate the windows and the southern exposure. ~~ The matter is now more complicated than it was originally. The complications are of my own volition and, in hindsight, poor choices were made on my part because of the situation of the denied variance. Let me explain in hopes to vindicate myself. I would ask that the following would be kept as a private matter between the Staff, Council the Pinskys and me. After the original variance was denied I had the choice of demolishing the existing garage rather than moving it. I didn't feel it would be in the best interest of the neighborhood design or the potential new owner of the existing home m do so. I researched the definition of "attached". I found nothing definitive. I decided th move the garage and "attach" it, but in a non~onventional manner. My first mistake was that I did not seek the advice of the Staff in doing so. I book on the reasoning of asking for forgiveness rather than permission. My plan was m attach the structures with an open roof, much like that of a trellis. The walkway between the garage and the house would be landscaping and pavers. The trellis would provide for the sun to give southern exposure bo the house and all three windows would remain in tact. In August I sold the original house to Roberta and Stuart Pinsky. The garage had not yet been moved but I made promises that it would. I did tell them of my plans m "attach" the garage but I did not tell them of the denied variance. In addition, earlier in the year prior to the sale of the house, I had contracted with a remodeler to finish the rest of the basement. That work was unfortunately done without the use of a permit. Some of the items from the remodel were not completed when the house was dosed with the Pinsky's. I also did a poor job of completing them within a reasonable time frame. The Pinsky's were very upset about the discovery of the above items and had every right to be. However the Pinsky's and I have worked through those issues and are now in agreement to move forward and work together to request this variance. Incidentally, all this occurred at a time when I lost my job (last March) and felt that the only career choice I had was bo pursue my 15 year hobby of building homes. The pressure ~ make a living for my family and my normal personality tendency to push the envelope rather than following all the rules has brought me to this situation. Needless do say, these are all excuses. They do, however, further explain the situation. I hope, however, that you will not look at this as a self-induced hardship but rather consider the previous situation as the important facts of the matter. ~y Agenda Information Memo January 7, 2003 Eagan City Council Meeting C. CONSIDER ISSUANCE OF $5.380.000 TAX-EXEMPT MULTI-FAMILY HOUSING REVENUE REFUNDING BONDS. AND $3,420.000 TAXABLE MULTI-FAMILY HOUSING REVENUE BONDS- ASPENWOODS APARTMENTS ACTION TO BE CONSIDERED: To adopt a resolution authorizing issuance of $5,380,000 tax-exempt revenue refunding bonds and $3,420,000 of taxable revenue bonds for the Aspenwoods Apartments under Minnesota Statutes, Chapter 462C. FACTS: • The City was contacted by representatives of the Aspenwoods Apartments about refunding revenue bonds currently outstanding under the City's name. The City bears no obligation in such conduit debt issues; the sole responsibility for repayment rests with the Aspenwoods Apartments ownership. • On November 19, the Council set the public hearing for December 17, at which time the hearing. was continued to January 7 at the Aspenwoods' request. • The issue represents a refinancing of $5,580,000 debt originally issued through the City in 1994. The complete financing package has atwo-part structure: $5,380,000 of tax-exempt debt and $3,420,000 of taxable debt. The taxable debt is being retired first as it is at a higher interest rate. • Because there has been little principal paydown on the original amount issued nine years ago, the City engaged its fiscal advisor, Springsted, Inc. (at the expense of, and with the concurrence of, the Aspenwoods Apts. ownership) to review the transaction for propriety. • Springsted has not fully completed its investigation, but expects to have a final report of recommendations by the time of the Council meeting. The preliminary findings express the following concern: - Nearly $3,000,000 of the proceeds will be paid to the owners, as opposed to paying down the debt and/or reinvesting funds into the project. From a public purpose perspective, it is difficult to support deferral of payment of tax-exempt bonds in order to put cash in the hands of the owners. • The City's bond counsel, Steve Rosholt, of Faegre & Benson has preliminarily reviewed the required documents on behalf of the City, and, the policy concern raised by Springsted notwithstanding, feels the documents are in order. yS • The following will be present and available to answer questions at the hearing: o Sherrill Oman, Fredrikson & Byron, bond counsel for the transaction o Mark Appelbaum, representing Piper Jaffray, the underwriter o Kathy Aho, Springsted, Inc. o Mark Jensen, representing the borrower ATTACHMENTS: • Enclosed on pages ~ and ~ is a copy of Springsted's preliminary findings and recommendations on the transaction. The resolution approving issuance of the bonds is ten pages long and, therefore, has not been included in the packet, but is available for review by the Council upon request. ~6 85 SEVENTH PLACE EAST, SUITE 100 SAINT PAUL, MN 55101-2887 651.223.3000 FAX: 651.223.3002 // E-MAIL: ad~-isorsCspringsted.com // SPRINGSTED Adl~isors ro the Pi~blie Secror January 3, 2002 Mr. Thomas Pepper, Chief Financial Officer City of Eagan 3830 Pilot Know Road Eagan, Minnesota 55122 RE: Aspenwoods Apartments Refinancing Dear Mr. Pepper: 00 The City of Eagan has been asked to approve the issuance of taxable and tax-exempt bonds to refund the tax-exempt bonds currently outstanding for the Aspenwoods Apartments and to fund certain other costs. The City has asked Springsted to review the transaction and comment on the advisability of City participation. The information concerning the project that follows has been supplied by U.S. Bancorp Piper Jaffray, the bond underwriter. No documents have been provided for the financing itself, and we have relied on related materials, verbal representations and documentation provided by U.S. Bancorp Piper Jaffray ("USBPJ") for transactions similar to the proposed bond issues. Background The Aspenwoods Apartments were first funded in 1984 with part of the issuance of the Minnesota Housing Finance Agency's (the "MHFA") Insured Multifamily Bonds (FHA Mortgage/MBIA Bond Insurance) (the "1984 Bonds"). The 1984 Bonds funded three projects. The documents provided indicate that the bonds to be issued for Aspenwoods totaled $6,210,000 and were expected to be repaid over a period starting in 1986 and ending in 2008. In 1994, the 1984 Bonds were refunded by bonds issued by the City of Eagan. Documents indicate that the bond amount did not exceed $5,500,000, but the actual original amount of principal issued was not included in the materials provided. The 1994 Bonds were special, limited obligations of the project having no recourse to City resources, but payable only from certain revenues of the project. The property was constructed in the mid-1980's and consists of 162 units at an average rental rate projected at $852/unit for 2003. Units are offered to the general public for rent. The financing terms require that 20% of the units be held available to households at or below 80% of median income for the metropolitan statistical area. The City has indicated that the property has been managed in a way that has not caused a disproportionate burden on City services. ~~ CORPOR4TE OFFICE: SAINT PAUL, MN Visit our ~•ebsite at ~cwv~•.springsted.com IOWA KANSAS MIA'NESOTA VIRGINIA WASHINGTON, DC WISCONSIN Mr. Thomas Pepper January 2, 2003 Page 2 The Proposal The City has received a request to do a refinancing of the 1994 Bonds. The proposed issue would be tax-exempt, variable rate, and credit enhanced by Fannie Mae. The bonds wilt be 7-day variable rate bonds and carry either a "Aaa" or "AAA" bond rating. A $3,240,000 taxable loan will be made directly to the borrower. The use of the proceeds is detailed later in this letter. The proposed tax-exempt issue can not exceed the amount of outstanding tax-exempt bonds under federal law. It appears that $5,280,000 of the 1994 Bonds remain outstanding, therefore the tax-exempt portion of the proposed financing is limited to $5,280,000. Costs in addition to the $5,280,000 will be financed with the taxable loan. Additional amounts being financed will go to the general partnership who have title to the property. The managing partners of the general partnership have been involved in the project since its inception, although originally as general partners of the limited partnership that developed the project initially. The sources and uses for the proposed financing are as follows: SOURCES Tax-exempt Bond Proceeds $5,280,000 Taxable Loan Proceeds 3420,000 TOTAL $8,700,000 USES 1994 Bond Principal $5,280,000 30 Day Escrow at 12% 52,077 SUBTOTAL 1986 Bonds $5,332,077 Reimburse Partner Capital Costs 1,208,053 Reimburse Partner Operating Shortfalls 954,181 Distribution to Partners of "Unfunded Investment Return" 770,689 SUBTOTAL Partner Payments $2,932,923 Bond Issuance Costs 435,000 TOTAL $8,700,000 Fannie Mae As with the recently approved Thomas Lake financing, credit underwriting for the project is being done by a delegated underwriter servicer ("DUS") of Fannie Mae. A DUS is an entity that has been approved to act on behalf of Fannie Mae to do credit underwriting for financings. If approval of the loan(s) is received, Fannie Mae will provide credit enhancement for the bonds that will result in their being rated either "Aaa" or "AAA", the highest bond ratings available. Acting as the DUS on this financing, Berkshire Mortgage, Bethesda, Maryland, is responsib{e for doing due diligence on the property and the financing projections. This review, the Fannie Mae credit enhancement, and the resulting high quality rating on the bonds should provide the City with comfort that the financing has been financially reviewed and is expected to be repaid in a timely fashion. We have not undertaken any review of Berkshire, but will do so if the City so requests. Their web site indicates that they are a national commercial and multifamily lender and mortgage banker. Various news articles suggest that they are active on a diverse geographical basis and in a variety of significant transactions. Y~" Mr. Thomas Pepper January 2, 2003 Page 3 Principal Deferral The proposed financing results in deferral of repayment of the principal on the tax exempt bonds. It is unclear from the materials provided how much of the original borrowing has been repaid to date. It has been represented to us that the taxable bonds will be retired first, following which the balance in a "Principal Reserve Fund" wilt be funded to an amount of $1,056,000. Finally, the principal of the tax-exempt bonds will be retired. The bonds will have a single maturity date and money will be deposited according to a schedule that will provide for amortization of all the bonds over a thirty year period. It has been represented to us that the taxable bonds are expected to be redeemed in late 2021. The Principal Reserve Requirement is expected to be fully funded by early 2025 and the tax-exempt bonds would begin to be retired in early 2025 with final redemption in early 2033. The Principal Reserve Fund is limited in its use to funding of capital improvements (if approved by Fannie Mae) and/or retirement of principal on the bonds. General Comments & Recommendations Springsted has general concerns about the deferral of tax-exempt principal repayment on this project and the use of proceeds. Materials provided by USBPJ suggest that the partnership's cash return on investment has been less than initially expected and that capital contributions have been made by the partnership to support the project from 1990 through 1994. Proceeds of the combined bond issues will provide nearly $3,000,000 to the partnership for what is categorized as prior capital investments, reimbursement of payments for operating shortfalls, and to increase what was a lower than anticipated investment return. The limited historical information provided suggests some support for these assertions; however, they are mostly evidenced by the project information for the period prior to the City's involvement and before the change in title that apparently occurred in 1994. (Please note that there is ongoing involvement of the original managing partners throughout as noted above, despite the real estate title change in 1994.) As represented in the materials provided, partnership distributions from 1995 to present have been at attractive levels. Although the project has an affordability standard (20% of the units at 80% of median income), it is not an onerous one and financing approval must rely more on the preservation of reasonably priced and managed general rental units as opposed to an argument that lower income affordable housing is being preserved through the deferral of payment of the tax exempt bonds. We understand the desire of the partnership to receive financial recognition of their efforts to date, however from a public purpose perspective, it is difficult to support the deferral of tax exempt bonds to accomplish this objective. We a reluctant to make a premature recommendation at this time and will continue discussions with the financing group and be prepared to provide a firm recommendation for the Council's consideration next week. Sincerely, Kathleen A. Aho, CIPFA President klb ~9 Agenda Information Memo January 7, 2003 Eagan City Council Meeting A. RECOMMENDATION AND AWARD OF CONTRACT FOR CONSULTANT SERVICES, HOLZ FARM MASTER PLAN ACTION TO BE CONSIDERED: APPROVE Holz Farm Master Planning Services from Brauer and Associates not to exceed $30,000. FACTS: • On September 17, 2002, Council authorized staff to proceed with the process of developing a Master Plan for Holz Farm Park and its interpretive site. • Council authorized staff to conduct the RFP process and bring forth recommendations for consultant services. • A representative from Friends of the Farm and the Advisory Parks Commission participated in the proposal review and interview process. • In mid-December 2002, after interviewing several firms, the interview panel found Brauer and Associates to be the strongest firm for the task. • A Master Plan for Holz Farm was included in the 2002 Parks CIP request with an estimated allocation not to exceed $30,000. The Brauer fee proposal meets this requirement, while other interviewed firms exceeded this amount. ATTACHMENTS: • None S~ Agenda Information Memo January 7, 2003 Eagan City Council Meeting VIII. COMMUNITY CENTER UPDATE Per the direction of the City Council, an update on the Community Center will be included as an agenda item on each regular City Council agenda until the center is . operational. ACTION TO BE CONSIDERED: To consider the recommendations of the Operations Committee from the January 3, 2003 Committee meeting. FACTS: • The Operations Committee met on Friday, January 3 to further discuss the Community Center budget. • The 1/03/03 Operations Committee meeting notes, as well as the FF&E Community Center budget will be included in the Administrative packet on Monday, January 6. • The Committee set a standing time for future Operations Committee meetings for 8AM each Wednesday. OPERATIONS COMMITTEE RECOMMENDATION: • The Committee recommends that the Council not act on the decision to phase in building components until the Operations Committee has further reviewed the budget scenarios. • Teen Center: Attached without page number on pages, through ~is the recommendation of the Operations Committee regarding the layout of the teen center. • Sliding Hill: The Committee is recommending that the sliding hill at Central Park remain closed for this year, and consequently, that no fee be charged for the Trapp Farm sliding hill (reverse decision made at 12/13/02 workshop). • The committee is recommending that a list be prepared with the names of persons that are allowed to enter the Community Center while under construction, which would include the City Councilmembers (there continue to be issues of unaccompanied citizens entering the construction site) si t East, overlooking pond Glass wall Stone H Stone wal 0 This is the basic room layout. The next attachment is what I see as the plan. all =iF.'1 r" sa ~- East, overlooking pond Sifti~glfable Magazine ar Height Table%hairs Standard Height Table/chairs with a view Juke Box ° O O Change machine .~~ ~ ~ 0 Pool Tale canopy Doorway •- ~ Arcade games ~~ Air Hockey This dearly defines the room as part passive, part active. The dimensions are off, but you will get the gist of what I have planned here. Tables are dustered, with nice view of pond and center N area is passive with coud~ltable duster. Another duster for table games. The pool tables are centered in the room. Juke Box bads NE comer. Arcades: where the cabinetry was with electrical. Air Hockey abuts the wail as you walk in. Ali in all, the room flows. S"3