4.1. DRAFT MINUTES 11-04-2013 VA
City of
Elk Meeting of the Elk River City Council
River Held at the Elk River City Hall
Monday, October 21, 2013
Members Present: Mayor Dietz, Councilmembers Wilson, Burandt,Westgaard, and
Motin
Members Absent: None
Staff Present: City Administrator Calvin Portner, Community Operations and
Development Director Manager Suzanne Fischer, Finance Director
Tim Simon,Economic Development Director Brian Beeman,
Economic Development Intern Chanda Knoof, Park
Planner/Planner Chris Leeseberg, Planning Intern Zack Carlton,
ERMU Director of Operations Troy Adams,WWTP Chief Operator
Gary Leirmoe,WWTP Lead Operator Matt Stevens, City Attorney
Peter Beck, and Senior Administrative Assistant Jennifer Johnson
Call Meeting to Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council
was called to order at 6:00 p.m. by Mayor Dietz.
2. Pledge of Allegiance
The Pledge o Allegiance'was recite :±`
3. Consider 10 /21/2013 Agenda
Mayor Dietz removed item 8.4 and requested it be placed on the November 4, 2013,
agenda. He also requested item 4.5 be removed from the consent agenda for
i discussion.
Moved by Councilm'ember Wilson and seconded by Councilmember Motin to
approve the October 21, 2013, agenda with the above-noted changes. Motion
carried 5-0.
4. Consider Consent Agenda
Moved by Councilmember Westgaard and seconded by Councilmember
Wilson to approve the following consent agenda:
4.1 October 7, 2013, Closed and October 7, 2013, Regular Council Minutes.
4.2 Check register as outlined in the staff report.
4.3.a Natures Edge Business Center Final Pay Estimate as outlined in the
staff report.
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October 21,2013
4.3.b 2013 Street Improvements Pay Estimate 4 as outlined in the staff
report.
4.4 Petition,Waiver, and Agreement for 19404 Norfolk Street as outlined in
the staff report.
4.6 Ordinance 13-14 Amending the Redemption and Disposition of
Impounded Animals as outlined in the staff report.
4.7 Hire Amy Humphrey as Senior Administrative Assistant in the Police
Department at pay grade 6, Step A, effective October 28, 2013.
Motion carried 5-0.
4.5 Fire Department On-Call Captain and Lieutenant Position
Descriptions
Mr. Portner stated the staff report request should only be to approve the position
descriptions as outlined but not the pay adjustments at this time. The pay
adjustments would be considered at a future meeting in December.
Moved by Councilmember Burandt and seconded by Councilmember
Westgaard to approve the Fire Department On-Call Captain and Lieutenant
Position Descriptions as outlined in the staff report. Motion carried 5-0.
S. Open Forum
No one appeared for Open Forum.
6.1 City of Elk River Volunteer of the Month — Mayor Dietz
Mayor Dietz introduced,read,and presented a plaque to Jean Becklin,Volunteer of the
Month for October. He noted the following volunteering accomplishments:
■ CAER Food Shelf
■ Bib-making for Little Lambs Daycare
■ Lutheran World Relief volunteer
■ Meals on Wheels
■ Cancer Crusade
■ Cap and mitten-maker for the 2013 Christmas tree
■ Yearly provider of Duane Becklin Memorial high school scholarship award
6.3 Proclamation Announcing Minnesota Manufacturers Week
Ms. Knoof presented the staff report requesting the Council proclaim the week of
October 21 —25, 2013, as Minnesota Manufacturers Week.
Moved by Councilmember Burandt and seconded by Councilmember Motin
to proclaim October 21—25, 2013, as Minnesota Manufacturers Week. Motion
carried 5-0.
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October 21,2013
7.1 Elk River Landfill, Inc., Solid Waste Facility License Amendments
Ms. Fischer presented the staff report.
Mayor Dietz opened the public hearing. There being no one to speak to this issue,
Mayor Dietz closed the public hearing.
Moved by Councilmember Westgaard and seconded by Councilmember
Wilson to approve the Elk River Landfill, Inc., Solid Waste Facility License
Amendments as outlined in the staff report. Motion carried 5-0.
7.2 Ordinance Amendment: Signs, OA 13-02
Mr. Carlton presented the staff report. He asked that the public hearing be opened
and continued to November 18, 2013, to allow time for the Planning Commission to
meet on November 12 and review and provide comments to the Council.
Mayor Dietz opened the public hearing. There was no one to speak on this issue.
Moved by Councilmember Wilson and seconded by Councilmember Motin to
continue the public hearing regarding the Ordinance Amendment for Signs,
OA 13-02, until November 28, 2013. Motion carried 5-0.
7.3 Conditional Use Permit: Keith Steies, 11044 - 167`" Avenue, Case No.
CU 13-10
Mr. Carlton presented the staff report. He stated the applicant would be allowed two
years to complete the conditions upon approval of the Conditional Use Permit
(CUP).
Mayor Dietz opened the public hearing.
Kathy Specht, 16330 Highway 10—representing the property,owner to the south
of the applicant's property, asked questions about the length of time the applicant
would have to install a fence and the exact location of the fence and whether or not
it be placed on or offset from the property,line. She also stated the brush piles that
were placed on her property,by the applicant have still not been completely removed.
Mr. Carlton stated,based upon current city ordinance, the fence installation would
be installed entirely on the applicant's property. A setback amount could also be
agreed upon as a condition.
There being no one else to speak,Mayor Dietz closed the public hearing.
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October 21,2013
Counselor Beck clarified that if the CUP were granted subject to certain conditions,
the applicant would have two years to meet the conditions and establish the use
before the CUP expires.
Mr. Carlton stated his understanding of the ordinance was that upon approval of the
CUP, applicants can operate their businesses while specified pending conditions
were finalized within two years, or the permit would then become void.
Counselor Beck stated an escrow could be required to ensure timely completion of
items which are unable to be finished due to seasonal conditions.
Mr. Leeseberg commented that with virtually every CUP that is issued, applicants
can operate their business immediately but are allowed time to complete on-site
requirements within a specified time period,but if conditions are not met, the CUP
can be revoked.
Mayor Dietz continued the item to later in the meeting in order to allow Counselor
Beck time to verify the ordinance requirements in question.
8.1 Set Public Hearing for Black Hawk Woods Housing Tax Increment
Financing (TIF)
Mr. Beeman presented the staff report. Mikaela Huot from Springsted gave a
PowerPoint presentation,which explained the evaluation process of the tax
increment financing (TIF) request submitted by Senior 30 Elk River Limited
Partnership,the project developer, and outlined Springsted's review based upon the
information provided by the developer and the city.Ms. Huot explained the interest
rate would be the rate on the TIF note,the city securing the TIF note.
Councilmember Motin expressed concerns with the interest rate being so high.
Mr. Simon stated the final interest rate could be negotiated.
Roger Derrick, representing Senior 30 Elk River Limited Partnership,thanked
Springsted for completing the TIF evaluation process. He also provided his
perspective of TIF being used for this affordable housing project.
Councilmember Wilson noted it is a policy question of whether or not the Council
will support these types of projects. He also expressed concerns with the worksheet
used to calculate the project ranking. The project,ranked as "moderate"based on a
high, moderate,low, and not eligible scale,used an application review worksheet that
included questions focusing more on commercial/industrial development with job
creation goals rather than affordable housing.
Ms. Huot suggested the application,along with the city's existing TIF policy, be
evaluated, noting a specific worksheet directed at affordable housing could be
created and used for future project requests. Mr. Beeman noted the current policy
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October 21,2013
was last updated in 2006. Ms. Huot stated Springsted could apply a different scoring
system worksheet that was geared to affordable housing and thereby providing a
more accurate score.
Councilmember Motin agreed with Councilmember Wilson's comments regarding
the worksheet scoring system and its use for an affordable housing TIF project.
Councilmember Westgaard also concurred with Councilmember Wilson's comments
and stated he would like to see a different scoring system worksheet used to
determine a more accurate score.
Councilmember Burandt also concurred with Councilmember Wilson's comments
and felt the need would be high for senior housing needs. She questioned if the
project location would be able to provide access to health care or offer
transportation options.
Mr. Beeman recommended Council allow Springsted to assist staff in the preparation
and completion of a housing worksheet that would provide a more accurate ranking
for this particular project.
Springsted suggested the Council hold a workshop to discuss housing TIFs and to
review examples from other cities. It was the consensus of the Council to have
Springsted return on November 4 with an updated housing worksheet.
7.3 Conditional Use Permit: Keith Steies, 11044 - 167`" Avenue, Case No.
CU 13-10
Mayor Dietz recalled this item.
Counselor Beck clarified that in order for the business to be established,the
applicant must meet the conditions. Council has the authority to delegate to staff
extensions of time on conditions related to seasonal items, such as landscaping, etc.
Council could also grant a specific period of time for a specific item such as a fence,
allowing an appropriate time to complete.
Mayor Dietz asked how the Council should handle this particular application with
numerous items requiring an extension of time to complete, such as concrete
curbing,landscaping, fencing, and the excavation of a pond.
Mr. Carlton stated landscaping and grading work, concrete,pavement work, and
fencing could be deferred until spring.
Mr. Steles stated the fencing was going to be a part of his original plan but didn't
think it was included in the final site plan, and felt it would be a future consideration
to add the fence. He noted the landscaping,grading,pavement, and concrete work is
required to be completed in a certain order, depending on the season and weather
conditions.
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October 21,2013
Mr. Carlton stated a fence is shown on the final plans, and therefore, the fence
would be approved as part of the permit.
Counselor Beck stated Council can approve the plans without the need for a fence.
Councilmember Wilson asked if the Planning Commission has seen the final plans.
Mr. Carlton stated the Planning Commission approved the CUP not having seen the
final plans. He also stated staff had not received the final landscaping plan from the
applicant.
Councilmember Motin suggested a specific date be agreed upon so requirements
could be met in a timely manner.
After discussion,it was decided to add condition#5: Curbing to be completed by
June 30, 2014. Landscaping to be completed by December 31, 2014.
Councilmember Motin asked what the process is if these items are not completed.
Counselor Beck suggested in this instance, a letter of credit condition could be
included to ensure items are completed, and if not completed by the date specified,
the city could use those funds to complete them.
After discussion,it was decided to add condition#6: Applicant to secure a letter of
credit equal to the amount of outstanding work to be completed.
Councilmember Westgaard asked about the fencing concerns brought by Ms. Specht,
and asked if anything specific needs to be addressed in this case regarding location of
the fence, or would current city ordinance be sufficient to ensure proper placement
of the fence.
Counselor Beck stated in his opinion it was not necessary to add an additional
condition as current city ordinance would dictate the placement of the fence.
Moved by Councilmember Westgaard and seconded by Councilmember
Burandt to approve the Conditional Use Permit (CUP) to Keith Steies for
automobile sales at 11044 167b Avenue, subject to the following conditions:
1. All comments of the city planner letter dated October 16, 2013, shall be
addressed.
2. Approval of a landscape plan, meeting all city ordinances.
3. Approval of a final site plan that achieves logical internal traffic
movement.
4. As a CUP is not a building permit, the applicant shall obtain all required
permits, including approvals from the Fire Chief, City Engineer, and
MnDOT.
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October 21,2013
5. Curbing to be completed by June 30, 2014. Landscaping to be installed by
December 31, 2014.
6. Secure a letter of credit equal to the amount of outstanding work requiring
completion.
Motion carried 5-0.
6.2 Introduction of New Employees
Street Superintendent Mark Thompson introduced part-time Streets Office
Assistants Marcy Bodin and Diane Juettner.
8.2 Resolution Authorizing Application to Parks Legacy Grant Program
for Funds to Assist in the Acquisition of Houlton Property
Mr. Hecker presented the staff report and PowerPoint presentation. Steve Hobbs
representing The Conservation Fund was also present to answer questions about the
project.
Mayor Dietz asked if an amount of the grant had been determined and if there was
any feel for whether or not the grant would be awarded. He also asked if the grant
program required matching funds from the city.
Mr. Hobbs indicated the approximate amount of the grant request would be $1.9 or
2 million,but no exact amount was available at this time. He stated this acquisition
was a very unique opportunity and noted while it was difficult to speculate,he was
hearing very positive feedback about the project.
Moved by Councilmember Wilson and seconded by Councilmember Burandt
to approve Resolution 13-63 Authorizing an Application to the Parks Legacy
Grant Program for Grant Funds to Assist in the Acquisition of the 335-Acre
Houlton Property as outlined in the staff report. Motion carried 5-0.
8.3 Ordinance Amendment: Collection of Electric Utility Charges and
Fees
Mr. Adams presented the staff report.
Mr. Beck expressed his concerns with signing off on this amendment but noted the
League of Minnesota Cities'review and evaluation of the statutes,which established
that cities have the statutory authority to assess delinquent electric charges, and
thereby allowing the certification of delinquent electric charges and fees for
collection with real estate taxes.
Moved by Councilmember Motin and seconded by Councilmember
Westgaard to approve Ordinance Amendment 13-17 adding Section 78-332
Collection of Electric Utility Charges and Fees to Chapter 78 Utilities, Article
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October 21,2013
IV Electric Systems, Division 3 Rates and Charges, as outlined in the staff
report. Motion carried 5-0.
The City Council recessed at 7:58 p.m. in order to go into work session.
The City Council reconvened at 8:02 p.m.
9.1 Community Operations and Development Staffing
Ms. Fischer presented the staff report, explaining the increased workloads in both
the planning and environmental departments,warranting the need to hire for both
the Planner I and Environmental Technician positions. She explained the desire to
align programs with city objectives and reviewed the shifting responsibilities
throughout the Community Operations and Development department.
Mayor Dietz asked questions regarding the allocation of funds for the
Environmental Technician position.
After discussion,it was the consensus of the Council to place the position
descriptions of the Planner I and Environmental Technician on the November 4,
2013, consent agenda for approval and authorization to begin the hiring process to
fill the positions.
9.2 2014 Budget
Mr. Simon presented the staff report.
Mr. Leirmoe and Mr. Stevens reviewed the Wastewater Enterprise Fund goals and
requested budget. Staff reviewed the funding for the wastewater treatment plant
expansion in 2014. A 3%rate increase is proposed for 2014.
Staff also indicated that on the November 4, 2013, consent agenda,they will be
calling in the 2005B bonds for repayment.
10. Adjournment
There being no further business,Mayor Dietz adjourned the meeting of the Elk
River City Council at 9:04 p.m.
Minutes prepared by Jennifer Johnson.
John J. Dietz,Mayor
Tina Allard, City Clerk
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