4.1. DRAFT MINUTES (2 SETS) 11-18-2013 VA
City of
Elk Meeting of the Elk River City Council
River Held at the Elk River City Hall
Monday, November 4, 2013
Members Present: Mayor Dietz, Councilmembers Westgaard,Wilson,Burandt, and
Motin
Members Absent: None
Staff Present: City Administrator Calvin Portner, Community Operations and
Development Deputy Director Manager Jeremy Barnhart,Park
Planner Chris Leeseberg, City Attorney Peter Beck,Economic
Development Director Brian Beeman, Police Chief Brad Rolfe,
Police Captain Bob Kluntz,Interim Street Superintendent Mark
Thompson, City Engineer Justin Femrite, Parks and Recreation
Director Michael Hecker,Building Maintenance Supervisor Gary
Lore,Parks Maintenance Supervisor Rodney Schriefels, Community
Operations and Development Director Suzanne Fischer, and City
Clerk Tina Allard
Call Meeting to %%,
Pursuant to due call and notice thereof,the meeting of the Elk River City Council
was called to order at 6:55 p.m. by Mayor Dietz. ,
2. Pledge of Allegiance
The Pledge of Allegiance was recited.
3. .Consider 11 /04/2013 Agenda
Moved by Councilmember Motin and seconded by Councilmember
Westgaard to approve the November 4, 2013, agenda. Motion carried 5-0.
4. Consider Consent Agenda
Mayor Dietz questioned a check written to Gray, Plant and Moody for legal services.
Staff explained that the services were to finish up on some microloan projects that
hadn't been completed at the time the city changed to new legal services.
Moved by Councilmember Wilson and seconded by Councilmember
Westgaard to approve the following consent agenda:
4.1. October 21, 2013 regular minutes.
4.2 Check register as outlined in the staff report.
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November 4,2013
4.3 Massage therapist license to Hannah Anderson for John Joseph Salon
valid to December 31, 2014.
4.4 Hire Jonathon Christie as patrol officer.
4.5 Resolution 13-64 Providing for the Redemption of Certain Outstanding
General Obligation Sewer Revenue Refunding Bonds, Series 2005B of
the City.
4.6 Position descriptions for Environmental Technician and Planner I.
Motion carried 5-0.
S. Open Forum
No one appeared for Open Forum.
6.1 Introduction of New Employee-Amy Humphrey
Chief Rolfe introduced Amy Humphrey who was hired as the police administrative
assistant.
Mayor Dietz welcomed Ms. Humphrey.
6.2 Certificate of Appreciation for Street Maintenance Employees
Chief Rolfe presented certificates of appreciation to street maintenance employees
Chris Teff and Mike Zappa for their prompt action in a crisis domestic situation.
Mayor Dietz thanked staff for their response.
7. Public Hearings
There were no public hearings.
8.1 Surface Water Management Plan and Stormwater Pollution
Prevention Program
Ms. Fischer presented the staff report and introduced Consultant Pete Willenbring.
Mr. Willenbring reviewed in detail the Surface Water Management Plan in the staff
report.
Ms. Fischer stated staff would come back with better budget numbers at the
November 18 worksession.
Moved by Councilmember Westgaard and Seconded by Councilmember
Burandt to accept the Surface Water Management Plan and the Stormwater
Pollution Prevention Program. Motion carried 5-0.
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November 4,2013
8.2 Kliever Lake Fields Model Home Agreement
Mr. Barnhart presented the staff report.
Moved by Councilmember Motin and seconded by Councilmember Wilson to
approve the Kliever Lake Fields 4th Addition Model Home Agreement. Motion
carried 5-0.
8.3 Comprehensive Plan Update
Mr. Barnhart updated the Council about the progress of the Community Advisory
Committee. He noted an open house is planned for December with a review to
Council in Februarys. He stated they would roll out some community outreach in the
next week through social media and community engagement on the website.
8.4 Economic Development Specialist Position Description
Mr. Beeman presented the staff report.
Moved by Councilmember Wilson and seconded by Councilmember Burandt
to approve the economic development specialist position description. Motion
carried 5-0.
8.5 Discuss Work Session Items
Mr. Portner presented the staff report.
The Council agreed a worksession wasn't needed for November 12 and the
personnel budget item could be discussed tonight.
9. Council Liaison Updates
The Council provided updates of the work of the various boards/commissions.
Moved by Councilmember Motin and seconded by Councilmember Wilson to
call a special meeting for 5:30 p.m., Tuesday, November 12, 2013 to discuss
personnel for the 2014 budget. Motion carried 5-0.
The City Council recessed at 7:40 p.m. in order to go into worksession.
The City Council reconvened at 7:44 p.m.
10.1 Houlton Property Trunk Utility Assessments
Mr. Portner presented the staff report.
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November 4,2013
Bill Houlton family representative - Stated the family has options on what they can
do with their property but they want to have it be part of the community as a park.
He stated there is an outstanding assessment on the property and noted the property
would never be developed if the city acquires it so it doesn't seem fair for them to
have to pay the assessment when there is no benefit to the property.
John Houlton stated they never had intentions to develop the property. He stated he
thought there may have been a handshake agreement between the city and his dad
that the city would be open to considering a donation in lieu of charging assessments
if the property became a park.
Attorney Beck stated he would have had no right to make decisions about waiving
assessments. He stated he might have said something to the effect that if the
property became a park, then the City Council might consider waiving the
assessments. He further stated he doesn't recall hearing anything from an elected
official at the time that would've made this type of promise but he can't say it didn't
occur either.
John Houlton stated he understands and noted he was not involved in all discussions
of an agreement back then. He further stated he thought it would have been a
discussion with the city administrator and the City Council.
Mayor Dietz stated the issue he has is with setting precedent and keeping fairness
between the other property owners who already paid their assessment. He also
questioned how the city could forgive the interest. He noted the city only assessed 37
of the 330 plus acres of the property. He further stated these funds would be used to
help pay for the sewer plant expansion.
Bill Houlton stated the property would not be developed and the city would be
getting a wonderful asset at no cost. He stated this request is different because the
other assessed owners have developed their property.
John Houlton stated this property will never use the infrastructure so it wouldn't set
a precedent.
Councilmember Motin stated he doesn't think the entire assessment should be
waived. He further stated the property never would have been assessed if it were a
park so he could consider forgiving some of the assessment.
Councilmember Westgaard stated there have been valid points made all around. He
questioned what it would cost the city to go out and purchase land for a park and
stated he agrees with Councilmember Motin on reaching an arrangement to settle
this matter. He noted this is a unique parcel and many groups want to see it
preserved. He suggested appointing a Councilmember to be involved in working out
the assessment payment.
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November 4,2013
Councilmember Wilson stated this is a once in a lifetime opportunity to acquire this
parcel and believes the city would regret letting it slip away so the Council should
explore how to resolve the issue.
Mayor Dietz suggested Mr. Portner and Attorney Beck negotiate the assessment.
Mr. Portner stated the city should maintain the integrity of the assessment process
and staff will need feedback from Council on whether the fees and assessments
should be paid as they have been done. He clarified with Council that they want the
city to become a financial participant in the purchase of the land and instead of
waiving the assessment;the city would pay it from a funding source. Mr. Portner
stated typically park dedication funds are used to acquire park land but currently
funds are not available due to lack of development.
Councilmember Burandt agreed with paying the assessment in some way in order to
maintain the integrity of the assessment process.
Attorney Beck stated staff needs to discuss the matter further and will need direction
from Council. He stated staff will explore the possibilities and bring back the matter
for further Council direction.
10.2 Urbanized Area Expansion and Associated Transportation Planning
Ms. Fischer presented the staff report.
Councilmember Motin stated a concern was noted to the Met Council that this
agreement only covers a portion of Elk River. He stated the Met Council noted the
city could petition to have the rest of the city included at any time.
10.3 Wastewater Treatment Expansion Site Options
Mr. Femrite stated that since his staff report was written, Great River Energy (GRE)
has changed their minds and wants to keep the city on the 1.4 acre parcel instead of
the 5.5 acre parcel. He noted the city does prefer the 1.4 acre parcel. He stated staff
will proceed with the current expansion plans.
10.4 2014-2018 Capital Improvement Plan
Mr. Simon presented the staff report.
Mr. Lore presented the Building Reserve Fund.
Mr. Hecker reviewed the Park Improvement Fund.
Councilmember Westgaard questioned how the Houlton property acquisition could
affect the prioritization list of the Parks and Recreation Commission.
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November 4,2013
Mr. Hecker stated the property is not included for improvements in 2014.
Mr. Simon stated there is some flexibility in the plan to make changes if needed.
Councilmember Westgaard questioned if additional funds should be budgeted to get
buckthorn under control.
Mr. Hecker stated they'll never get buckthorn under control. He stated there is
$10,000 in the parks operating budget.
Mr. Hecker and Mr. Simon reviewed the lighting request for Oak Knoll Fields and
some options for payment.
Mayor Dietz stated the city should reward organizations that are willing to contribute
some funds to a city asset. He said these requests should rise to the top of the
priority list and he recommends the lighting project be done in 2014.
There was discussion on the size of the youth football program.
Councilmember Westgaard stated the Mayor has a good point in that when there are
organizations that come forward with financial commitments to make park
improvements, then the city should make it a priority as well. He further stated the
city should determine the funding for the $62,000 balance from the park
improvement operating budget rather than taking extra from the Capital
Improvement Plan. He stated other projects should then be moved into 2015.
Councilmember Motin stated he thinks this is a good opportunity and he would
prefer to see the money come out of designated funds that were supposed to go to
the arena (option 2 in staff report) versus taking it out of surplus. He stated he
doesn't like the idea that because an organization comes forward and is willing to pay
for a project,then all of a sudden the city should change its priorities and is
concerned with the precedent it sets. He further stated shifting other projects to later
years affects other groups as well.
It was noted that each request would need to be considered carefully and other
factors, such as participation,would need to be considered.
The Council concurred with Option 2 as outlined in the staff report.Which will be a
budget amendment to adjust a budgeted transfer from the liquor store fund to the
Ice arena that will not be needed in 2013 to fund the difference between the cost and
the donations. The $30,000 in donations that will come in 2015-2017 will go back to
the liquor store fund and not the park improvement fund.
Michael indicated an agreement will come back outlining the donations and official
acceptance of the donation.
10.5 2014 General Fund Budget Update
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November 4,2013
Mr. Simon presented the staff report.
Health Insurance
Mr. Portner discussed the city's health insurance costs and trends.
Mr. Simon stated the city received one-time funds of$16,000 from the federal
government for a retiree program that is required to be used to offset employee
benefits.
Mr. Portner requested Council to utilize these funds to offset health insurance costs.
Mr. Portner asked the Council to consider using this money to offset the costs a little
to bring to marginal rate.
Councilmember Motin requested employees be updated to know this is a one-time
increase of 2.5% additional due to the federal funding available.
Council consensus was to use the federal funds for to offset health insurance costs.
Personnel
Mr. Portner asked for clarification regarding two positions: fire department deputy
chief and police drug task force detective. He further stated the other position to be
considered is the human resources technician,which is undergoing an evaluation that
isn't quite finished yet.
It was suggested to pay for the human resources position from council contingency
if it is needed in 2014.
Mayor Dietz asked for confirmation on how the Council feels about the positions in
the 2014 budget.
Councilmember Motin stated he is okay with the positions that are currently
proposed in the budget.
Councilmember Wilson concurred.
Councilmember Westgaard noted that it is a lot of positions and more than what
we've added in recent years. He stated he understands that we went down on staff in
recent years and understands that as we are starting to grow,the city wants to add
some staffing back. He stated he is concerned about how fast the city and staffing is
growing because it is more difficult to adjust the budget once staffing is onboard. He
stated looking at the numbers and listening to the police chief,he felt the drug task
force detective is a needed position.
Councilmember Motin stated he doesn't disagree that there should be a person on
the drug task force but the question is,is who should be paying for it. He noted that
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November 4,2013
Sherburne County is not paying for any other city's staff to be on task force. He
understood that we have 25% more crime but that the city also pays that much more
in taxes to Sherburne County.
Councilmember Burandt stated it would be a nice position to have but believes the
county should pay for it.
Councilmember Westgaard stated he didn't realize other cities weren't contributing
and thinks the task force position should not be in the budget.
Mayor Dietz stated it is too soon to add the deputy fire chief of operations position
based on fire task force comments. He noted the city recently changed officer job
descriptions which will take time to work through. He stated he is nervous about
trying to do too much at one time in the Fire Department. He further stated he
would like to replace the fire deputy chief of operations with the task force detective.
He further stated he doesn't believe there is a need for a full-time parks maintenance
employee and he would like to see it placed at 6-7 months.
Councilmember Burandt stated the parks maintenance employee could assist with
managing buckthorn in the winter months.
Mayor Dietz stated there is no need to have the special meeting on November 12
with the Council being comfortable with the positions proposed in the 2014 budget.
Excess Funds
Mayor Dietz questioned if the Council agreed to remove the $79,500 excess in the
budget from the final tax levy.
Mr. Simon noted the Council may want to consider the stormwater management
plan when discussing the excess amount.
Councilmember Motin noted it could be difficult to find a person who can for a 6-7
months per year.
Mr. Schreifels stated it would be challenging to find an employee for a 6-month
position and the person would most likely have a different skill set. He stated this
position could assist with snowplowing and tree maintenance in the winter months
II. Adjournment
There being no further business,Mayor Dietz adjourned the meeting of the Elk
River City Council at 9:34 p.m.
John J. Dietz,Mayor
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City Council Minutes Page 9
November 4,2013
Tina Allard, City Clerk
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City of
Elk Joint Special Meeting of the Elk River City Council
River and Housing and Redevelopment Authority
Held at Elk River City Hall
Monday, November 4, 2013
Members Present: Mayor Dietz, Councilmembers Westgaard,Wilson,Burandt, and
Motin
HRA Commissioners Chuba,Knester, and Toth
Members Absent: None
Staff Present: City Administrator Calvin Portner, Community Operations and
Development Deputy Director Manager Jeremy Barnhart,Director
of Economic Development Brian Beeman, Finance Director Tim
Simon, Community Operations and Development Director Suzanne
Fischer, and City Clerk Tina Allard
I. Call Meeting to Order -X N,
Pursuant to due call and notice thereof, the meeting of the Elk River City Council
was called to order at 5:50 .,m..b._Mayor Dietz.
2. Pledge of Allegiance
The Pledge of Allegiance was recited.
3. Discuss Tax Increment Financing Housing Policy
Mr. Beeman presented the staff report. He introduced Springsted Consultant
�.Mikaela Hout.
Ms. Hout discussed the following:
• Role of an HRA/EDA.
• Mission/objectives for tax increment financing.
• Importance of establishing criteria/policies based on what the market will
support.
• Public purpose benefits.
• City's policy for use of Tax Increment Financing
• City's project qualifications.
• What drives the need for public financing assistance.
• What role the community wants to play to encourage development.
• Development efforts a city makes may affect the city's financial reputation.
Ms. Hout reviewed a survey that was sent our earlier to Council and Housing and
Redevelopment Authority members.
Joint Special City Council&HRA Minutes Page 2
November 4,2013
Councilmember Wilson questioned the minimum numbers and when they were
established.
Ms. Hour noted the policy was amended in May 2006 but adopted in 1991 and stated
staff could check on how reasonable the numbers are for current tax increment
financing projects.
Mayor Dietz questioned Council and HRA on whether and how TIF should be used
for housing.
Ms. Hout stated they should consider if it is their objective that TIF be used for
housing. If so,then the policy should have some language to allow the city to explore
options. If no,then this change should be made clear in policy. She further stated the
city could limit the types of housing they would like to consider, such as making it
available only for senior housing.
Commissioner Toth questioned the criteria for the scoring sheet and had concerns
with it being too flexible and setting precedence when allowing exceptions.
Ms. Hout stated the policy acts as general guidelines for the city and would be
flexible and dependent upon community need.
Mayor Dietz suggested the policy be flexible enough so each project can stand on its
own.
Councilmember Westgaard stated he is not opposed to keeping housing as a
consideration in TIF districts but he is not sure if the city should narrow down to
development versus a redevelopment scenario. He'd like to allow for TIF for
housing but put it as a lower priority over other types of applications. He'd like to
stay more on the conservative side from the risk component.
Commissioner Kuester stated the commission hasn't covered much with housing
and believes the current project is an opportunity to go to market when there is a
need in the community for senior housing. She stated the Mayfield Study backs up
the need for senior housing.
Commissioner Toth commented he likes the set up the city has with the MN Central
Housing Partnership. He agreed on the need for some housing work done in the
city. He stated TIF may be an avenue worth exploring but it needs to be done
carefully with a new evaluation criteria and looking to the long-term benefits for the
community.
Commissioner Chuba stated he feels it is important for the city to have life cycle
housing with a range of affordable housing for the young and elderly. He stated the
TIF financing should be flexible, but issues need to be worked out, such as how
much TIF to allow,how long it should be good for,and how much increase in value
is expected.
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Joint Special City Council&HRA Minutes Page 3
November 4,2013
Councilmember Motin stated he would not like to see TIF for housing purposes but
if the city votes to have it,then the developer would need to meet some other need
such as being in an area that also needs redevelopment or close to where it will help
a commercial area. He stated the Maxfield Study was done from the viewpoint of,if
you build it, they will come,rather than based on a community need. He also noted
there are other funding options available for developers.
Councilmember Burandt concurred with Commissioner Chuba regarding life cycle
housing and felt the need for having different types of availability for all income
levels. She felt there is a need to be flexible with the TIF policy and that TIF for
housing should be included. She stated there will be more seniors in the near future
and the city needs to plan for them coming back to their community.
Councilmember Wilson stated housing has not been addressed over the years by the
HRA. He stated he would like to address the city policy and limit TIF to senior
housing. He stated there is a gap between what Guardian Angels offers,which is low
income housing,versus affordable housing.
Roger Derrick stated people are already here and they need help now.
Commissioner Toth stated he has no issue with using TIF but the city needs well
maintained criteria.
Ms. Hout stated they would look at the changes that are needed to the existing policy
and prepare a new scoring worksheet based on the discussion tonight.
4. Adjournment
There being no further business,Mayor Dietz adjourned the meeting at 6:55 p.m.
John J. Dietz,Mayor
Tina Allard, City Clerk
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