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1984-01-07CITY OF MOUND MOUND, MINNESOTA AGE'N DA MOUND CITY COUNCIL SPECIAL DISCUSSION MEETING 9:00 A.M. SATURDAY, JANUARY 7, 1984 A Review of the State of the City (Begin by Reviewing Enclosed Newspaper Article) Tonka Building Re-Use Review Recent Memo's Letters from City Planner & Assessor Future Plans Update on Town Square and Lost Lake Projects Public Works Building Where Do We Go From Here? Enclosed Memo's - Bonestroo Associates, Inc. - Miller-Schroeder - City Attorney Enclosed is Pertinent Bond Information Review of County Road 15 Design Proposal Plus Alternatives Letter Regarding Herb Peck's Request to Vacate Lake Shore Other Business From The Council CITY of MOUND 5341 MAYWOOD ROAD MOUND, MINNESOTA 55364 (612) 472-1155 DArE: TO: FROM: RE: JANUARY 5, 1984 CITY COUNCIL JON ELAM ENCLOSED COMMENTARY FROM WALL STREET JOURNAL If one substituted the word "city" in place of "firm" through out this article it would, I think, effectively portray the challenges we face in managing the City of Mound in the future. I thought it might be a good place to take off from in our Saturday work session. FRIDAY, DECEMBER 30. 1983: ~:-,::, ;~ ....... - ," · · ' ' ' Room in ~ ~,' ~U~ ad h~l~. Yet ~: ~t ~ ~w ~v~ ~y bye ever ma~ a ~-~ pla~ ~' o~n. ~d ~ 'not ~e m~ ~t ~a~ment ~ ~ ' h ~e U.S. it ~ ~ble m~ ~ md~ to ~pwve, ~e.q~- ~ble ~1~ e~) ~.of ~e h~ ~ ~d ~y ~n ~er ~ pm~ '~d ~~ ~. , ~a~levd:~al~e' hM~b~g · e ~d-~. ~ we t~d~ ~ ~e m-' out ~ ~e ~em~t ' ~ve'~. we ~ have W b~d c~- ~m~'~ have ~er ~ ove~ pmmo~on ~ ~e ~ple ~'t "b~t our'; ~ ~d ~ fl~ ~d ~e ~ ~ve ~ even mo~ ~ of a new J~, of p~on-~ ~ ~ ~n b~. merit ~d ~ n~ ~lam. ~i~y ~ ~ 1~ d~, ~e ~g nw~ ~m~y ~bl~ ~ or ~m~ who ~lv~ ~e p~ t i o ~ t~ntk pon~~,.~ ~-~e ~g wom~ who m~e ~- pm~on~ ~d ~t ~ p~nt m ,~e ~ or ~e ~cmg ~ ~at It Fo~-~ly ~: '~d w~t ~ ~n~'~d ~e' '~at ~ I do Wm~e aej~'b~r. - ~r. it~ mo~ ~~. mo~ ~e~. ~ Uon n~ ~en~E ~a~?" ~d we ~'have W le~ l~r ~c ~ say; "~' mon~ ~d ~m~ o~er me~. ~ W W ~: "We pl~ to ~ble 3030 Harbor Lane North, Suite 104 Minneapolis, Minnesota 55441 612/553-1950 TO: Jon Elam, City Manager FRDM: Mark Koegler, City Planner DATE: January 4, 1984 SUBJ: Tonka Buildings In response to your memorandum of December 28, 1983, I would like to offer scme ~eneral continents and then specifically focus on the Balboa proposal's ccmpatibility with the existin~ ordinance. My initial reaction, to the proposal was negative because i have serious reservations about both the use itself and, more importantly, about the duration of the 412,000 square feet of mini-storage in the Tonka building. This concern st~s frc~ a belief that such a use is not in the best long-term interest of the City of Mound since it is neither a major tax revenue producer nor will it generate mars; new jobs. All concerr~ about the City's long-term best interests must be balanced against the owner's right to reasonably use his or her property. After thinking about the proposal, my initial reaction has softened. The short-term use of Tonka as mini-storage may be acceptable if it helps attain a more intensive long-term usage. Long-term use of Tonka as mini-storage remains, in my opinion, unacceptable. In all likelihood, ecor~omics will preclude long-term use of the structure for storage. At this point, further ca~ents on the details of the proposal are premature. If the proposal proves to have merit and the building is used on an interim basis as a mini-storage facility, it should be done under the conditions of a binding agreement and time schedule and as part of a comprehensive redevelopment plan for the usage of the Tonka structure. The Tonka site is presently zoned' I-1. Under the provisions of the zoning ordinance, warehousing is a permitted use and assembly/storage of transportation equipment is listed as a conditional use. The ~alboa proposal calls for the storage .of boats and recreational vehicles and containerized storage of other materials. The containerized storage appears to be permitted under I-l, and the boat storage falls under the conditional use provisions. Jon Elam Page Two January 4, 1984 The existing zoning ordinance is ambiguous re(3arding permitted and conditional uses in the I-1 district. In the near future, the Planning C(~mission should consider further delineation of uses within the zone. Regarding the Balboa proposal, however, it seems appropriate to process the application as a conditional use. If approved as a conditional use, a written conditional use permit could be drafted clearly defining time schedules, conditions and other restrictions. Staff should be able to reccn~nend conditioru~ upon receipt of a formal proposal and additional background information on Balboa Construction. A.THOMAS WURST, P.A. CURTIS A. PEARSON, JOSEPH E. HAMILTON, P.A. JANES D. LARSON, ~.A. THOMAS F: UNDE~WOOD~ ~A. ~OGER ~. ~ELLOWS LAW OFFICES WURST, PEARSON~ HAMILTON, LARSON & UNDERWOOD MINNEAPOLIS, MINNESOTA 55402 January 5, 1984 TELEI~HONE (612) $38- 4200 Mr. Jon Elam City Manager City of Mound 5341 Maywood Road Mound, MN 55364 Re: Tonka Corporation BUildings' Dear Jon: This will acknowledge receipt of your letter of December 28, 1983. I have reviewed your 'letter of December 28 to the City Council along with the background information and your letter of January 3, 1984, and you and I have discussed this by telephone. I have also dis- cussed the proposals with Mark Koegler, the City Planner. It is my understanding that you would like to have me check the industrial zoning classification which is Section 23.640 of the city code and explain how their proposal fits into the industrial per- mitted use or conditional use section. You further wanted to know if the ordinance should be strengthened and whether conditions should be established for approval. There is nothing in any section of our ordinance which relates directly to storage of boats or recreational vehicles. Mark and I agree that the planning commission should, for the long term, review all of the commercial and industrial uses, making comparisons with other ordinances from other cities. Our ordinance is very bare bones in this respect. Under Section 23.640.3 conditional uses do consist of assembly or storage of a number of products, including transportation equipment. One could reasonably argue that a boat or a recreational vehicle would be transportation equipment and that therefore it is authorized by the ordinance as a conditional use. As a conditional use, the City can draw up reasonable conditions to' apply to the conditional use permit. I suggest that you and the City planning department consider Section 23.505 which is covered on pages 25 through 30 of our zoning code. There are a number of big checkpoints which we should be considering in preparing the conditional use permit. WURST, PEARSON, HAMILTON, LARSON & UNDERWOOD Mr. Jon Elam Page 2 January 5, 1984 You and I have further discussed this and it is my understanding that the Balboa Construction Company.wants'to enter into a develop- ment contract with the City. I certainly do not see any reason why the City can not negotiate the proper conditions and enter into such a contract. I would stress that in the development of the conditional use permit and any development contract, a great deal of thought go into the conditions since this particular piece of property has such a pre- dominant effect on the whole City. If you have'any other questiOns or comments concerning the use or anything contained in this opinion, please feel free to contact me. Very truly y~rs/~ City Attorney CAP:ms ASSESSOR A-2103 Government Center 300 South Sixth Street Minneapolis, Minnesota 55487 January 4, 1984 Mr. Jon Elam Mound City Manager 5341Maywood Road Mound, MN 55364 Dear Jon: Re: Tonka Properties The property referred to in your letter dated December 28, 1983, has a court petition pending. With this petition on file and a court date set, we would rather not respond to some of your questions at this time. We will be contacting the petitioner's attorney regarding the possible'purchase by Bilboa Construction Co., Inc. The 1982 and 1983 values are the same at $3,349,500. At this time we do not intend to change the value for the 1984 assessment. Whatever. the outcome is in regards to the petition, the rate for taxes runs 4.37% of value. Sincerely, Milton Hilk Principal Appraiser MH:jb HENNEPIN COUNTY an equal opportunity employer TOWN SQUARE FROJE~T AREA FROFER~Y cuR~ USE e 10. 13. 14. ~5. 16. 17. 18. 19. 20. 21. '22. 23. 24. 25. 26. Medical Properties, Inc. Eugene Bickmann Thomas L. Giesen/Paul E. Busche City of Mound M, E, Mueller Mound Builders (Johnson) State Land Dept, Broich Agency Broich Agency City of Mound City of Mound ~i N, Johnson Medical Properties Medical Properties M, E. Mueller. M, E, Mueller Geo. Shepherd/John R, Morrison Geo, Shepherd Great Northern RR/Conco Parking Lot Garage House Parking Lot Tom Thumb Vacant Vacant Super Valu Parking Lot Alley LYNWOOD BLVD' 2O Anderson Building Bakery Mound Clinic Alley Mueller Pharmacy Alley Laundromat Vacant Coast-to-Coast PARK OF LOT ~Z -% · '~-' .CHURCH RD q, ;HURCH RD Town Square · ..Mound, MN o.1 ~o O' -0 . Lynwood Blvd Utilities Sanitary Sewer Water Storm Sewer Manhole or Catch Basin TOk'.N. ~-QDARE PROJECT AREA (10) (21') (22) (~) (24) (25) (14) (15) (16) (17) (18) (19) (26) 13-117-24-32-0161 MEDICAL PROPERTIES, INC. 13-117-24 33 0027 EUGENE BICKMANN 13-117-24 32 0125 THOMAS GIESEN/PAUL BUSCHE 13-117-24 43 0129 CITY OF MOUND 13-117-24 33 0001 M. E. MUELLER 13-117-24 33.0058 MEDICAL PROPERTIES, INC. 13-117-24 33 0059 MEDICAL PROPERTIES, INC. 13-117-24 33 0060 M. E. MUELLER 13-117-24 33 0061 M. E. MUELf.FR 13-117-24 33 0062 GEO.' SHEPHERD/JOHN MORRISON 13-117-24 33 0063 GEO. SHEPHERD 13-117-24 33 0041 STATE LAND DEPT. 13-117-24 33 0042 BROICH AGENCY/SUPER VALU 13-117-24 33 0043 BROICH AGENCY 13-117-24 33 0044 CITY OF MOUND 13-117-24 33 0045 CITY OF MOUND 13-117-24 33 0046 WILL N. JOHNSON 13-117-24 33 0064 WILL N. JOHNSON (BLDG.) GREAT NORTHERN R.R. (LAND) 1983 ASSESSOR ' S TAX MARKET VALUE 1276.14 LAND 2O700 3635.24 62400 24200 849.15 19000 26200 .00 0 0 3888.94 11600 80800 8179.78 13800 176700 APPRAISED VALUE 63000 125000 52000 825OO 95000 285000 ASSESSED 8901 35738 8324 38232 80415 61.22 1400 0 2300 602 115000 1993.70 6500 42500 19600 34.98 800 0 1100 344 1688.52 5600 35900 48OOO 16600- 101.71 2500 0 5000 1000 .00 0 0 5100 0 94 96 . 35 26400 194200 245000 45000 1360.28 31100 0 93358 13373 .00 0 0 1100 ,0 100000 .00 0 0 2371 . 17 6400 51300 1513.37 34600 (R.R.) 50000 165000 23311 14878 36450.55 242800 631800 1485100 354676 VALUE OF T~ EXEMPT PROPERTIES': VALUE OF R.R. PROPERTY: TOTAL $185,700 130,000 1,193,300 DIFFFERENCE BETWEEN ASSESSOR'S VALUES & APPRAISAL REPORT - $291,800 $~. P,~/, ,,f,f~..,,~ pl,.,~. 6f.2.656J/600 January 4, 1984 City of Mound 5341 Maywood Rd. Mound, Mn. 55364 Attn: Mr. Jon Elam City Manager Re: Preliminary Cost Breakdown Estimated Construction Payments Proposed Public Works Building City of Mound, Minnesota File No.~21402 O~lo G. ~onestroo. P.~. Robert W. Ro~ene, P.E. Joseph C. Anderlik, P.E. Bradford A. Lemb~rg, Richard E. Turner, P.E. James C. Olson, P.E. Glenn R. Cook, P.E. Keith A. Gordon, P.E. Thomas E. Noyes. P.E. Richard W. Foster, P.E. Robert G. Schunicht. Marvin L. $orrala, P.E. Donald C. 8urgardt, P.E. Jerry ,4. Bourdon, P,E, Mark A. Hanson, P.E. Ted K. Field, P.E. Michael T. Rautmann, Robert R. Pfc#erie, P.E. Charles A. £rickson Leo M. pawelsky Harlan M. Olson Dear Jon, Following is our est±mated breakdown and payout schedule during construction of ~he proposed public works building. This is as discussed at our meeting of Wednesday, January 4, 1984. The estimates are based on the report mean cost estimates and on a normal con- struction period commencing in mid April or early May. We have also, for this letter, assumed Alternate No. II. If no work is to be done on retrofit of the existing building, you can use a proportionate' factor. 1. Desi'gn fees - Upon completion of plans and specifications $ 44,460 2. Contractor Payments - Assume start of construction on April 15. ($653,845) a. May 5% $ 32,692 b. June 5% 32,692 c. July 30% 196,154 d. Aug. 20% 130,769 e. Sept. 18% 117,692 f. Oct.~ 5% 32,692 g. Nov. 5% 32,692 h. Dec. 7% 45,770 i. Jan.-Final 5% 32~692 100% $653,845 3. Inspection fees - Spread over the construction period 16,350 8754b Page 1. City of Mound Mound, Mn. 55364 Re: File No. 21402 January 4, 1984 The above figures and percentages are based on experience of other similar projects. If there are any questions on the project, please feel free to contact our office. Yours very truly, BONESTR00, ROSENE, ANDER~IK & ASSOCIATES, INC. Bradford A. Lemberg, P.E. O BAL: ii cc: Mr. Ernie Clark @ Miller-Schroeder 8754b Page 2. 444#75 WATERWORKS, SEWERS, DRAINS, STORM SEWERS '/616 CHAPTER 444 WATERWORKS, SEWERS, DRAINS, STORM SEWERS '?.-/..01A~.~..07 [Repealed, 1949 c 119 s 110] ~?..075 WATERWORKS SYSTEMS, MAIN SEWERS, SEWAGE DISPOSAL PLANTS. Subdivision 1. Authorization. Any city, except cities of the first class oper- ating under a home rule charter, or any statutory city is hereby authorized and empowered to build, construct, reconstruct, repair, enlarge., improve, or in any other manner obtain waterworks systems, including mares, valves, hydrants, service connections, wells, pumps, reservoirs, tanks, treatment plants, and other appurtenances of a waterworks system, and sewer systems, sewage treatment works, disposal systems, and other facilities for disposing of sewage, industrial' waste, or other wastes, all hereinafter called facilities, and to maintain and operate the same inside or outside its corporate limits, and to acquire by gift, purchase, lease, condemnation or otherwise any and all land and easements required for that purpose. The authority hereby granted shall be in addition to all other powers with reference to such facilities otherwise granted by the laws of this state or by the charter of any such city. Counties, except counties in the seven county metropolitan area, shall have the same authority granted to cities by this subdivi- sion except for ~,reas of the county organized into cities and areas of the county incorporated within a sanitary district established by special act of the legislature. Subd. 2. Financing. For the purpose of paying 'the cost of building, con- structing, reconstructing, repairing, enlarging, improving, or in other manner obtaining such facilities or any portion thereof, any such city or county may issue .and sell its gensral obligations, which may be made payable primarily from taxes or from special assessments to be levied to pay the cost of the facilities or from net revenues derived from water or sewer service charges or from any other nontax revenues pledged for their payment under charter or other statutory authority, or from any two or more of such sources; or it may issue special obligations, payable solely, from such taxes or special assessments or from such revenues, or from any two or more of such sources. Real estate tax revenues should be used only, and then on a temporary basis, to pay general or special obligations when the other revenues are insufficient to meet the obligations. All such obligations shall be issued and sold in accordance with chapter 475. When special assessments are pledged for the payment of such obligations, they shall be authorized and issued in accordance with the further provisions of chapter 429, or of the municipality's charter if it authorizes such obligations and the governing body determines to proceed thereunder. When net revenues are pledged to the payment of the obligations, together with or apart from taxes and special assessments, such pledge shall be made in accordance with' the further provisions of subdivision 3. Subd. 3. Charges; net revenues. For the purpose of paying for-the con- struction, reconstruction, repair, enlargement, improvement, or other obtainment and the main'tenance, operation and use of such facilities, the governing body of PUBLIC INDEBTEDNESS 8164 475.58 OBLIGATIONS; ELECTIONS TO DETERNRNE ISSUE. Subdivision 1. Approval by majority of electors; exceptions. Obligations authorized by law or charter may be issued, by any municlpality upon obtaining the approval of a majority of the electors voting on the.question of issuing the obligations, but an election shall not be required to authorize obligations issued: (1) to pay any unpaid judgment against the municipality; (2) for refunding obligations; . . (3) for an improvement, which obligation is payable wholly or partly from the proceeds of special assessments levied upon property specially ~benefited by the improvement, or of taxes levied upon the increased value of property within a district for the development of which the improvement is undertaken, including obligations which are the general obligations of the municipality,.ff the municipali- ty is entitled to reimbursement in whole or in part from the proceeds of such special assessments or taxes and not less than 20 percent of the cost of xhe improvement is to be assessed against benefited property or is estimated to be received from such taxes within the district; (4) payable wholly from the income o! revenue producing c6nveniences'; (5) under the provisions of a home rule charter which permits the issuance of Obligations of the municipality without election; and (6) under the provisions of a law which permits the issuance of obligations of a municipality without an election. Subd. la. Resubmission limitation. If the electors do not approve the issuing of obligations at an election required by subdivision 1, the question of authorizing the obligations for the same purpose and in the same amount' may not be submitted to the electors within a period of 180 days from the date the election was held. If the question of authorizing the obligations for the same purpose and in the same amount is not approved a second time it may not be submitted to the electors within a period, of one year after the second election. Su]~d. 2. Funding, refunding. Puny city, town or school distr~ct' whose out-. standing gross debt, including all items referred to in section 475.51, subdivision 4, exceed in amount 6 2/3 percent of its assessed va]u~ may issue bonds under this · subdivision for the purpose of funding' or refunding such indebtedness or any part thereof. A list of the items of indebtedness t6 be funded or refunded shall be made by the recording officer and treasurer and filed in the office of the recording officer. The initial reso]thion of the governing body shall refer to this subdivision as authority fOr the issue, state the amount of bonds to be issued and refer to the list of indebtedness to be funded or refunded. This resolution shall be published once each week for two successive weeks in a legal newspaper published in the municipality or if there be no such newspaper, in a legal newspaper published in the county seat. Such' bonds may be issued without the submission of the question .of their issue to the electors un]ess within ten days after the second publication of the resolution a petition requesting such election signed by ten or more voters who are taxpayers of the municipality, shall be filed with the recording officer. In event such petition is filed, no bonds shall be issued hereunder unless authorized by a majority of the electors voting on the question. History: 1927 c 131 s 4; 1949 c 682 s 8; 1951 c 422 s 4; 1955 c 298 s 1; 1969 c446s I; 1971 c886s 1; 1971c903s3; 1973c 123 art 5 s 7; 1974c380s8,9 (1938-6) 475.59 MANNER OF SUBMISSION; NOTICE. When the governing body of a municipality resolved to issue bonds for any purpose requiring the approval of the electors, it shall provide for submission of the proposition of their issuance at a general or special election or town or school Election Requirements Generally speaking, all bond issues must receive the approval of the voters before being sold. The frequent exceptions are those bonds issued:32 1. To pay any unpaid .judgment against the city. 2. To refund other bonds. When the bonds are payable wholly or part- ly from the proceeds of special assessments, including bonds guaranteed by the full faith and credit of the city (this exception does not apply if less than 20% of the cost to the city of the improvement is to be repaid through special assessments).33 4. Repayable wholly from the income of reve- nue-producing facilities, 5. Under the provisions of a law permitting the issuance of obligations without an election. When an election is required, it must be conduc- ted in the same manner as any other election. The · question may be submitted to the voters at either a general or special election. Notice is to be given in the manner prescribed by law, but it must also state the. maximum amount and the Purpose of the proposed issue. Each purpose for which bonds are to. 'be issued must be voted upon separately. The election is invalid when two separate purposes are contained in a single question for the consideration of the voters. Thus, for example, it would be im- proper to submit a proposal to issue bonds for the construction of a city hall and the acquisition of a power and light utility in a single election ques- 'tion.34 sue, tl~e question of authorizing the obligations for the same purpose and in the same amount may not be resubmitted within a period of 180 days from the date the election. ~vas held. If submitted a sec- ond time after 180 days and not approved, the ex- act same question may not be submitted for at least one year after the second election.35 issue Date: 4/01/~ Date Prir, cioal 4/01/85 0.00 0.000 4/01/86 15,000.00 9.000 4/01/87 15,000.00 9.000 4/01/88 15,000.00 9.000 4/01/89 15,000.00 9.000 4/01/90 20,000.00 9.000 4/01/91 20,000.00 9.000 4/0i/92 25,000.00 9.000 4/01/93 25,000.00 9.000 4/01/94 ~,'~ 000.00 9.000 4/01/95 30,000.00 9.000 4/0i/96 30,000.00 9.000 4/0i/97 35,000.00 9.000 4/01/98 40,000.00 9.000 4/01/99 407000.00 9.000 4/01/00 45,000.00 9.000 4/01/01 50,000.00 9.000 4/01/02 55,000.00 9.000 4/0i/03 60,000.00 9.000 4/01/04 65,000.00 9.000 int crest 56,250.00 56,250.00 54,900.00 53,550.00 52,200.00 50,850.00 49,050.00 47,250.00 45,000.00 42,750.00 40,500.00 37,800.00 35,100.00 31,950.00 28,350.00 24,750.00 20,700.00 16,200.00 ti,250.00 5,850.00 56,~50.00 71,250.00 69,900.00 68,550.00 67,200.00 70,850.00 69,050.~0 72,250.00 70,000.00 67,750.00 70,~00.00 67,800.00 70, i00.00 ~,950.~0 68,350.00 69~750.00 70,700.00 71,200.00 71,250.00 70,850.00 TOTALS 625,000.00 760,500.00 I,~8~,~ ~ 500.00 Accrued Interest to 5/01/84 = Total Bond Years = Gross Ir, tek-est Cnst Average Coupnn NiC = Average Life = Discount ~_~ 98.3 = $ 4,687.50 760,500.00 9.000% 9.129% I3.52 Years 10,937.50 Reoc, rt Dated: 1/04/84 File: b:MND3, dbt CITY of MOUND December 12, 1983 5341 MAYWOOD ROAD MOUND, MINNESOTA 55364 (612) 472-1155 TO: CITY COUNCIL FROM: CITY MANAGER This seems to be one of those weeks where people pose some very tough problems and I need to turn to you for direction. Mr. Herb Peck came to see me for about an hour and a half to discuss a long standing (20 years) gripe he has with the City of Mound. He owns the property on the attached map in green. It seems that in 1960 or there about, the City began plans to extend Lynwood Blvd. to Fairview. In order to do that, the City needed to acquire the land that is located in what is now the street right-of-way.(Part of Lots 6 & 7, Block 2) He was agreeable to allow this road and grant the. easement for the road, .but in exchange he wanted the City to vacate a part of the l~keshore platted as Lake Blvd. A vacation of a section of Lake Blvd. on the parcel to the West was approved by the City and became private lakeshore. A stretch was also vacated at the North end of Block 1 to the East. He feels the City let him down when.the Council voted 3-2 to deny his vacation application. He feels that it isn't so much a vacation that he sought, but it was a land exchange for the land he gave the City for Lynwood Blvd. Anyway for at least 18 years he has lived with the fact that he feels he was not treated the same as the other residents around him and now he wishes to try to correct this wrong or he will sell his property and move to a house he has been building on the Mississippi Riger in Elk River. That, of course, is not a reason to vacate a road, but I offer it as background. My question is. Would any of you even consider vacating 60' of lakeshore? If you are inclined to view this as an open case, I'll encourage him to apply for the vacation. If not, then I'll tell him as I already did, that the time may not be appropriate to entertain any public vacation of lakeshore on Lake Minnetonka. Please share your advice with me, as if you were in my position. Thanks. JE:fc --'"'8 m 19 ODRIDGE RD .~