4.1. DRAFT MINUTES 02-18-2014 0,ty(A
E1 Meeting of the Elk River City Council
Weer Held at the Elk River City Hall
Tuesday, January 21, 2014
Members Present: Mayor Dietz, Councilmembers Wilson,Burandt,Westgaard, and
Motin
Members Absent: None
Staff Present: City Administrator Calvin Portner, Community Operations and
Development Deputy Director Jeremy Barnhart, Finance Director
Tim Simon, Fire Chief John Cunningham, Park Planner Chris
Leeseberg,Planner Zack Carlton, City Attorney Peter Beck, and
Senior Administrative Assistant/Recordi Secretary Jennifer
Johnson
1. Call Meeting to Order /
Pursuant to due call and notice thereof th eerin of the Elk*iver City Council
' iii! j/
was called to order at 6:22 m. or,,,,,,,
p• b Y Mayor
2. Pledge of Allegiance Aleepena
The Pledge of Allegiance was recited,
op Vii„
3. Consider 01/21/20 Agenda
d1011 iiiii/ ,Mayor Dietz requested tem 4:�from the consent agenda, and asked to add
item 6.5, a b "wry.. ockey Day Minnesota.
�j
Moved b c uncilme er Westgaard and seconded by Councilmember
Wilson to amp ve thenuary 21, 2014, agenda. Motion carried 5-0.
4. Consider Consent Agenda
Moved by Councilmember Wilson and seconded by Councilmember
Westgaard to approve the following consent agenda:
4.1 December 2, 2013,Joint Council/HRA Meeting Minutes.
4.2 Check register as outlined in the staff report.
4.3 Call for Public Hearing for February 3, 2014, for the Sportech
Forgivable Loan Application.
4.4 Resolution #14-05 Acknowledging Donations to the Police
Department as outlined in the staff report.
Motion carried 5-0.
City,Council Minutes Page 2
January 21,2014
4.5 Bank of Elk River Amended Business Subsidy Agreement
Councilmember Wilson recused himself from voting on this item due to a conflict of
interest.
Moved by Councilmember Westgaard and seconded by Councilmember
Burandt to approve the Bank of Elk River Amended Business Subsidy
Agreement as outlined in the staff report. Motion carried 4-0 with
Councilmember Wilson recusing himself.
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 Dusty Bredlow as
Volunteer of the Month for January 2014. He noted the following volunteering
accomplishments:
• Member of the Elk River Area Chamber of Commerce's Board of Directors, and
member of the executive, fall event, and Shiver Elk River committees
• Meals on Wheels volunteer
• United Way Spring Fashion Show volunteer
• Volunteers at various events sponsored by his employer
• Past accomplishments include Salvation Army bell ringer,ERHS science fair judge,
Gift Anonymous and CAER food shelf volunteer
6.2 Accept the Certificate of Achievement for Excellence in Financial
Reporting
Mr. Simon presented the staff report.
Moved by Councilmember Motin and seconded by Councilmember Wilson to
accept the Certificate of Achievement for Excellence in Financial Report as
outlined in the staff report. Motion carried 5-0.
6.3 Zylstra Harley-Davidson HOG Chapter Hydrant Clearing Recognition
Chief Cunningham presented the staff report. He presented members of the HOG
Chapter with a certification of appreciation.
6.4 Beyond the Yellow Ribbon Committee Update
Mayor Dietz stated the Beyond the Yellow Ribbon (BTYR) Steering Committee
chairperson,Don Heinzman,has moved out of the city; therefore, community
W 0E0 0 'P
City Council Minutes Page 3
January 21,2014
outreach events are now being organized by Henry Griner. Mayor Dietz noted the
primary objective of BTYR is to increase community presence by connecting and
assisting military families while their loved ones are deployed serving our country. He
noted the challenges in connecting with the families due to privacy issues so Mr.
Griner is contacting Army National Guard and Air National Guard units that have
members in the greater Elk River area to provide them with information on how
BTYR can help their families.
6.5 Hockey Day Minnesota Update
Mayor Dietz expressed his appreciation with staff and all the community entities
involved in Hockey Day Minnesota. Councilmember Wilson stated he was impressed
with how the community took advantage of the opportunities to provide week-long
activities at the Handke Pit, especially to youth,which in turn provided great
exposure and memories for Elk River.
7.1 Conditional Use Permit: Noodles and Company for Restaurant, 18130
Zane St. NW, Case NO. CU 13-15
Mr. Carlton presented the staff report.
Mayor Dietz opened the public hearing.
Colin Kuechle, 32692— 695th Avenue,Kimball MN, representing Noodles &
Company, stated he is excited to bring his restaurant to a great community like Elk
River.
There being no one else to speak to this issue,Mayor Dietz closed the public
hearing.
Moved by Councilmember Westgaard and seconded by Councilmember
Burandt to approve the Conditional Use Permit for Noodles and Company to
operate a Class I restaurant at 18130 Zane St. NW with the following
conditions:
1. The Conditional Use Permit is not a building permit and the applicant
must apply for and receive approval of all required permits before
construction may begin.
2. The applicant must apply for and receive approval of all required sign
permits before signage may be installed.
Motion carried 5-0.
7.2 Cornerstone Auto
a. Preliminary Plat of Jabez 2nd Addition, Case No. P 14-01
b. Resolution for Final Plat
C. Conditional Use Permit for Vehicle Sales in C3 Zoning District,
Case No. CU 14-01
W 0E0 0 'P
City Council Minutes Page 4
January 21,2014
Mr. Carlton presented the staff report.
Mayor Dietz opened the public hearing.
Steve Rohlf,representing Cornerstone Auto, stated while they understood the need
to plan for future transportation needs for Natures Edge Business Park, they
objected to the city's condition of requiring them to construct the proposed 1701h
Lane to industrial standards,which is a higher standard than their use requires, and
according to the applicant's engineer, an additional expense of approximately
$12,000.
There being no one else to speak to this issue,Mayor Dietz closed the public
hearing.
The Council asked for clarification regarding the adjoining property and agreements
made between the applicant and the owner. Mr. Carlton provided clarification.
Councilmember Burandt asked if there were any alternative options the city could
consider regarding the cost of upgrading the road.
Mr. Carlton stated the road is identified in the Focused Area Study (FAST) as a
connecting road to the future industrial park, and is meant to be constructed to
handle future industrial traffic in accordance with the FAST plan.
Mayor Dietz asked who was responsible for construction of 1701h Lane.
Mr. Carlton stated the applicant is responsible for construction of 1701h Lane.
Councilmember Motin asked if the city had the option of paying the difference out
of the Development Fund of the cost between a normal and an industrial standard
road.
Mr. Simon stated he would defer to Counselor Beck for any legal thoughts,but the
city Development Fund could be used.
Mr. Beck stated typically it would be required that the road be constructed following
the city's transportation plan and design requirements with the applicant paying the
cost for construction. The city could build it but would then assess the total cost of
construction back to the applicant.
Councilmember Westgaard asked if the city would be maintaining the road.
Mr. Carlton stated in this situation, a cul-de-sac was required due to the dead end
road and the location of the cul-de-sac affected an adjoining wetland. The applicant
agreed to be responsible for maintaining 170th Lane including plowing to allow for
P0WIEWE0 8V
NANWRE
City Council Minutes Page 5
January 21,2014
emergency vehicles tuntil the connection is made. He stated it would be publicly
owned but sub)ect to a private maintenance agreement.
Moved by Councilmember Westgaard and seconded by Councilmember
Wilson to approve the Preliminary Plat for Jabez 2nd Addition with the
following conditions:
1. Access restriction shall be placed along Highway 10 and 171"Avenue.
2. Development agreement shall be signed outlining costs and
responsibilities to the satisfaction of the City Attorney.
3. The subdivision drawings shall be submitted to the City in an
electronic format (.dwg file) as required by City Ordinance and land
use application.
Motion carried 5-0.
Moved by Councilmember Motin and seconded by Councilmember Wilson to
approve Resolution #14-06 approving the Final Plat for Jabez 2nd Addition
with the following conditions:
1. Access restriction shall be placed along Highway 10 and 171"Ave.
2. Development agreement shall be signed, outlining costs and
responsibilities to the satisfaction of the City Attorney.
3. A letter of credit or other security acceptable to the city be provided in
the amount of 100% of the cost of public improvements.
4. Upon completing all of the improvements and having them accepted
by the city, a warranty bond in the amount of 25% of the improvement
costs shall be submitted to the city for a one year period.
5. Surface water management fee in the amount required by the city at
the time of final plat be paid prior to releasing the plat for recording.
($1,287 per acre, 2014 rate)
6. Sealcoat fee in the amount to be determined by the city engineer be
paid to the city prior to releasing the plat for recording.
7. Park dedication shall be paid for the one buildable lot at the rate
applicable at the time the plat is released for recording. Current rate
for commercial is $7,444 per acre.
8. All required wetland and grading permits must be obtained prior to
commencing work on the site.
9. Grading and erosion control plan and development plan be submitted
and approved by the city engineer prior to the issuance of grading
permits.
10. All grading will need to be certified prior to the issuance of building
permits.
11. Water availability charge be paid prior to releasing the plat for
recording.
12. Any item or condition found that indicates the site is likely to yield
information important to pre-history or history shall be reported to the
city immediately. Further, the city reserves the right to stop work
W 0E0 0 'P
City Council Minutes Page 6
January 21,2014
authorized in its approval until the site is appropriately investigated
and work is authorized.
Motion carried 5-0.
Moved by Councilmember Motin and seconded by Councilmember
Westgaard to approve the Conditional Use Permit request for automobile
sales in the C3 zoning district with the following conditions:
1. As a Conditional Use Permit (CUP) is not a building permit, the
applicant must apply for and receive approval of all required permits.
2. Address all comments from staff in the comment letter dated
December 18, 2013, before the CUP is issued.
3. Address all staff comments regarding stormwater management,
ensuring the project meets the latest requirements for treatment and
retention.
4. Service and overhead shall be of a similar color to the precast concrete
panels.
5. Cornerstone Auto agrees to maintain "1701h Lane" until the road is
extended to 1701h Court in Natures Edge Business Park.
6. The property shall be platted, and recorded, prior to the release of the
building permit.
Motion carried 5-0.
7.3 Conditional Use Permit: Tiller Corporation for Mineral Excavation
and Hot-Mix Plant, Case No. CU 14-03
7.4 Conditional Use Permit: C.S. McCrossan for Mineral Excavation, Case
No. CU 14-02
Mr. Leeseberg presented the staff report for both items.
Mayor Dietz opened the public hearings.
Christina Morrison,representing Tiller Corporation, stated she was present to
answer any questions.
There being no one else to speak to this issue,Mayor Dietz closed the public
hearings.
Moved by Councilmember Westgaard and seconded by Councilmember
Motin to approve the Conditional Use Permit Amendment for Tiller
Corporation for Mineral Excavation and Hot-Mix Plant with the following
conditions:
1. The applicant shall execute a CUP Agreement outlining the terms and
conditions of approval of the mining operations.
2. A mineral extraction license shall be obtained annually.
W 0E0 0 'P
City Council Minutes Page 7
January 21,2014
3. The following conditions shall be addressed to the satisfaction of the
city's environmental consultant:
a) The anticipated groundwater elevation at the site is anticipated to
range from 954 on the east and 951 on the west. The applicant shall
provide complete references for available groundwater elevations. The
applicant must also address the use of the historic high groundwater
levels in establishing the excavation base grades. The "Excavation
Plan," C2 must be modified to reflect these anticipated groundwater
elevations.
b)The plan of operation does not identify where the phasing of mining
(and reclamation) will occur and the timing for each phase. The site
must be excavated in an orderly fashion to reduce the area of open
mining at any one time. In particular, it is recommended that the
northern portion of the site be reclaimed prior to initiation of mining in
the new parcel proposed for the expansion. The future location of the
main operations area and office, now located in the southeast corner of
the northern parcel, must be identified on the (phasing) Excavation
Plan, C2. The Excavation Plan must also show the locations of topsoil
and backfill soils which will be used in reclamation. The soil volumes
of the anticipated phases must be indicated in the application and on
the Excavation Plan. This information shall be submitted by March 1,
2014.
c) The details for screening berms on the north side of 221" Street must
be provided. The suitability of the berms for site screening must be
further demonstrated by the applicant. Details have not been provided
on security fencing for the new parcel in the southern portion of the
site.
d) Sand and gravel mining at the groundwater table increases the
vulnerability of groundwater resources at the site to contamination
from chemicals and petroleum products. The Groundwater Protection
Plan provided in the application discusses the use of oils and asphalt
cement. This must be expanded to address the potential presence of
all types of hazardous substances and petroleum products and present
an inventory of these chemicals and petroleum products relative to the
groundwater resources at the site. Protective measures must address
the location of fueling operations of site equipment and all types of
transfers related to petroleum and chemicals. The location(s) of spill
containment equipment must be indicated on the Excavation Plan.
e) The applicant must identify contingency procedures for mechanical
sweeping in the event that sediment removal on public roadways is
deemed appropriate by the City of Elk River.
f) The applicant must provide a more detailed plan which identifies the
placement of control measures for water runoff and sediment erosion
for all areas which do not drain to the interior settling ponds. This
must include description of control measures and locations where they
are placed. Appropriate control measures are temporary vegetative
W 0E0 0 'P
City Council Minutes Page 8
January 21,2014
seeding, mulch, buffer zones, earthen dikes, drainage swales, sediment
traps, riprap, sediment basins and silt fencing.
g)The requirement for Topsoil Preservation (Sec. 42-96) is not
addressed. The Plan of Operation must identify the volumes of soils
required for reclamation and the future locations of soil stockpiles.
h) Final slopes on the northern portion of the site and the west property
boundary of the southern parcel for McCrossan are indicated as 3:1
slopes,which exceed the required maximum of 4:1. This may be
acceptable, however the thickness of topsoil will need to be increased
and provisions for drainage/erosion control need to be addressed.
Erosion control measures for slope areas where surface water runoff is
concentrated must be identified.
i) The reclamation plans requires the backfilling of soil from the mining
grade to the final contours. An earthwork balance assessment of soil
volumes for reclamation must be provided by the applicant to insure
that sufficient volumes of soil are maintained onsite to meet the
reclamation earthwork needs.
j) The Reclamation Plan indicates future potential roadways. The north-
south frontage road in the southern portion of the site indicates a
grade as steep as 20%. The plan must be modified to accommodate a
typical roadway grade.
k) The Reclamation Plan must indicate the locations and plantings for
the re-vegetation of the mined areas.
1) Mining which occurs in the vicinity of the wetland will decrease the
drainage area for the wetland, as proposed. There is a potential that
the hydraulic characteristics of the wetland will be changed resulting
in a change in the related biological conditions. These potential
impacts to the wetland must be addressed in accordance with the
Minnesota Wetland Conservation Act (WCA).
m) The applicant shall be responsible for the cost and construction of all
road improvements, including turn lanes, as required by the township,
Sherburne County or MnDOT. The city reserves the right to require
the applicant to pay for road maintenance of haul routes.
n) Dust control is required for all roads and within the site,when it is
determined that dust is creating a public nuisance or otherwise
adversely affecting adjacent properties.
o) All activities on the site shall be conducted in a manner that is
consistent with operating permits issued by the city, county, state,
federal and other agencies. A copy of any and all permits related to the
operation of the site shall be submitted to the city for their reference.
p)Vehicles and equipment not in operable condition or materials not
associated with the mineral extraction/excavation activity shall not be
kept or stored at the site.
q)The site shall be mowed or maintained to control noxious weeds and
other vegetation.
4. Approval of this CUP shall expire if activity has not commenced within 2
years of the date of approval, or if the uses ceases for a period of 6 months
W 0E0 0 'P
City Council Minutes Page 9
January 21,2014
or longer. Failure to obtain an annual license will be evidence of
cessation of use.
5. Setbacks of 35 feet from north and south property lines, and 20 feet from
east property line shall be maintained. No mining activity shall be
permitted within the setback area without staff approval.
6. The need of buffering and or screening in light of surrounding land uses
shall be evaluated at the time of annual license renewal and shall be
installed when directed by the city to protect surrounding land uses.
7. Wash operations shall not be permitted unless a plan for protecting
ground water and surrounding environment is approved by the city's
environmental consultant.
8. Hours of operation shall be allowed to be seven (7) days a week, 24 hours
a day.
9. The need for revised reclamation plans in light of surrounding
infrastructure needs shall be evaluated at the time of annual license
renewal. In areas where mining is complete, reclamation shall be
installed when directed by the city to protect surrounding land uses.
Motion carried 5-0.
Moved by Councilman Westgaard and seconded by Councilmember Wilson
to approve the Conditional Use Permit for C.S. McCrossan for Mineral
Excavation with the following conditions:
1. The applicant shall execute a CUP Agreement outlining the terms and
conditions of approval of the mining operations.
2. A mineral extraction license shall be obtained annually.
3. Approval of this CUP shall expire if activity has not commenced within 2
years of the date of approval, or if the use ceases for a period of 6 months
or longer. Failure to obtain an annual license will be evidence of
cessation of use.
4. Setbacks of 50 feet from north property lines, and 20 feet from west and
south property lines shall be maintained. No mining activity shall be
permitted within the setback area without staff approval to avoid
windrows.
5. The need of buffering and or screening in light of surrounding land uses
shall be evaluated at the time of annual license renewal and shall be
installed when directed by the city to protect surrounding land uses.
6. The applicant shall work with the city engineer to locate the berming
along 221"Avenue.
7. Wash operations shall not be permitted unless a plan for protecting
ground water and surrounding environment is approved by the city's
environmental consultant.
8. The applicant shall be responsible for the cost and construction of all
road improvements, including turn lanes, as required by the Township,
Sherburne County or MnDOT. The city reserves the right to require the
applicant to pay for road maintenance of haul routes.
W 0E0 0 'P
City Council Minutes Page 10
January 21,2014
9. Dust control is required for all roads and within the site, when it is
determined that dust is creating a public nuisance or otherwise adversely
affecting adjacent properties.
10. All activities on the site shall be conducted in a manner consistent with
operating permits issued by the city, county, state, federal and other
agencies. A copy of any and all permits related to the operation of the site
shall be submitted to the city for their reference.
11. Vehicles and equipment not in operable condition or materials not
associated with the mineral extraction/excavation activity shall not be
kept or stored at the site.
12. The site shall be mowed or maintained to control noxious weeds and
other vegetation.
13. Mining which occurs in the vicinity of the wetland will decrease the
drainage area for the wetland, as proposed. There is a potential that the
hydraulic characteristics of the wetland will be changed resulting in a
change in the related biological conditions. These potential impacts to
the wetland must be addressed in accordance with the Minnesota
Wetland Conservation Act (WCA).
14. Hours of operation shall be allowed to be seven (7) days a week, 24 hours
a day.
Motion carried 5-0.
7.5 BWB Holdings, LLC/ERX Properties LLC, Case No. P 13-04
a. Preliminary Plat
b. Resolution for Final Plat
Mr. Leeseberg presented the staff report. He stated he had received some emails
earlier in the day from the applicant with questions regarding responsibility for
payment of park dedication and surface water management fees and addressed those
questions.
Mayor Dietz opened the public hearing.
Todd Plaisted, 15781 Andre St.,Ramsey,representing ERX Motor Park,requested
the Council consider reducing or deferring payment of approximately$48,000 in
Park Dedication Fees until the land was developed. His request was based upon the
land's current use as a motor park with no current plans to develop the land. The
land being acquired would be used as overflow parking. He explained MnDOT's
request to realign the entrance off of Highway 169 as one of the main reasons for
this request.
Councilmember Westgaard stated he felt based upon this unique situation,if it were
legally allowed he was not opposed to postponing the requirement of payment of
park dedication fees until the time the property was formally developed and not
under an Interim Use Permit.
W 0E0 0 'P
City Council Minutes Page 11
January 21,2014
Councilmember Motin stated he doesn't want to set precedence for postponing
payment of park dedication fees and getting burned in the future if plans should
changes and no fees are received.
Brent Hislop, of Synergy Land Company, and representing Bridgewater Bank Land
Holdings (BWB), stated the real principle function of this is to assist with MnDOT's
desire to create a new access point (215Th Street) and felt this proposal was the
simplest in nature given the complexity of the properties involved.
Councilmember Wilson asked if there was a difference in fees industrial rate per acre.
Mr. Leeseberg stated commercial and industrial fees are charged per acre, and are
more expensive than residential,which is charged per unit.
Councilmember Wilson asked if parks are used by people and not industries or
commercial entities,why those fees were higher than residential.
Mr. Leeseberg explained the fees were approved by the Council and how fees were
imposed are dependent upon the use.
Councilmember Motin asked if park dedication fees were paid on the current area
defined as ERX and if not paid,when was the appropriate time to pay Park
Dedication Fees.
Mr. Barnhart stated staff applied Park Dedication to the proposed plat consistent
with the Council direction for a similar project, Elk River Ford,in 2006. He noted
that in both cases,land was developed, and then platted into a larger lot. Park
Dedication was applied to the previously undeveloped portion of the lot.
Counselor Beck stated that in order for staff to remain consistent with past practice,
staff applied a similar principle to this applicant's request.
Mayor Dietz stated he would agree to setting up a payment plan.
Councilmember Motin stated he didn't agree with staff's interpretation and how it's
being handled, and wondered if the ordinance needs to be modified.
Councilmember Westgaard asked if the city is in conflict with the commercial reserve
guidelines that were imposed a few years ago by approving this final plat.
Mr. Barnhart stated no, and noted the benefits with this type of plat.
Councilmember Westgaard stated he didn't feel staff's recommendation was wrong
as it remained consistent with what has been done in the past.
Councilmember Motin felt it necessary to review this should a similar situation come
forward in the future.
P 0WIEHE0 8 'P
City Council Minutes Page 12
January 21,2014
Counselor Beck stated he would prefer to come back at the February 3, 2014,
meeting to approve the final plat with a clear statement and agreement, unless that
would interfere with the applicant's plans.
There being no one else to speak to this issue,Mayor Dietz closed the public
hearing.
Moved by Councilmember Westgaard and seconded by Councilmember
Motin to approve the Preliminary Plat with the following conditions:
1. Access control shall be dedicated from Lot 1, Block 1.
2. No increase in storm water onto MnDOT right of way
3. Any access to Highway 169 shall be approved by MnDOT.
4. Except for the north 100' of the west property line of Lot 1 Block 1, as
indicated on the plat, Highway 169 access to and from the plat shall be
limited to Oudot C.
5. A variance (V13-10) will need to be recorded prior to the plat being
recorded.
6. The development shall meet all applicable fire codes.
7. A wetland buffer of 25 feet applies to all wetlands and a structure
setback of 20 feet from the buffer applies. An exhibit shall be prepared
and included in the literature provided to potential buyers.
8. Wetland boundaries shall be posted in a manner acceptable to the city.
9. A 25-foot easement adjacent to the outside edge of delineated wetlands
to note,preserve and protect the required no-touch buffer.
10. A NPDES permit is required prior to final approval of construction
drawings.
11. All required subdivision/park information shall be provided in an
electronic format (.dwg file) as required by city ordinance and land use
application prior to recording of the plat.
12. This approval of the preliminary plat shall expire after 1 year, unless
the property owner or owner's agent has submitted a final plat or letter
of request for extension.
13. The Surface Water Management Fee for 12.75-acres (the undeveloped
portion of the new ERX site), minus the area of delineated wetlands, in
the amount required by the city at the time of final plat release shall be
paid prior to releasing the plat for recording. Current 2014 rate is
$1,287/acre.
14. Necessary drainage and utility easements shall be dedicated on the
plat as required by the city.
15. Grading and erosion control plan and development plan be submitted
and approved by the city engineer prior to the issuance of building
permits.
16. Park dedication shall be provided in the following manner:
a. In the form of cash for 12.75-acres (the undeveloped portion of
the new ERX site), minus the area of delineated wetlands, at
W 0E0 0 'P
City Council Minutes Page 13
January 21,2014
the rate applicable at the time of Final Plat approval. The
current 2014 industrial rate is $2,485 per acre.
Motion carried 5-0.
Council directed staff to work with Counselor Beck to prepare a resolution for final
plat for the February 3,2014,meeting with language outlining details for payment of
the park dedication fees on the additional acreage, and details outlining an agreement
for deferral for repayment for three years.
Counselor Beck suggested Council discuss this at a future worksession to provide
staff direction in adding additional language to the subdivision ordinance that would
provide a clearer direction on applying park dedication fees to undeveloped land.
Council agreed to add to the February 3,2014,worksession.
8.1 Issuance of Electric Revenue Refunding Bonds, Series 2014A
Mr. Simon presented the staff report. He introduced Elk River Municipal Utilities
financial advisor,Terri Heaton from Springsted,who was available to answer any
questions.
Moved by Councilmember Wilson and seconded by Councilmember
Westgaard to approve Resolution #14-07 approving the issuance of Electric
Revenue Refunding Bonds, and authorizing certain other actions to be taken
by the Elk River Municipal Utilities Commission with respect to the issuance
of electric Revenue Refunding Bonds, Series 2014A, as outlined in the staff
report. Motion carried 5-0.
8.2 Billboard Lot Sizes
Mr. Barnhart presented the staff report regarding billboards in the I2 zoning district.
He stated Counselor Beck would present his findings.
Counselor Beck confirmed his concerns that by setting a different minimum lot size
for one use within the same zoning district would violate the state statutory
requirement for uniformity on regulations within a zoning district. He explained you
could have different requirements by zone,but within one zoning district,you can't
have a different standard for different uses, that the city is required to have
uniformity within a district.
Councilmember Westgaard stated from his perspective,billboards do have a place,
purpose, and value in the city and isn't opposed to having them, and wasn't opposed
to seeing them in specified areas such as the two major corridors leading into and
out of the city.
Mayor Dietz asked if the city would allow billboards in the I2 zone on one-acre lot
sizes.
W 0E0 0 'P
City Council Minutes Page 14
January 21,2014
Mr. Barnhart stated billboards are allowed in both the I2 and C3 zones on one-acre
lot sizes as a principle use.
Mayor Dietz wondered if the Council had any desire to change the one-acre zoning
requirement to allow a billboard in the I2 zoning district.
Councilmember Westgaard stated he didn't feel that would be beneficial and would
lead to issues with industrial development and lot size. It would also create more
headaches from a development standpoint.
Councilmember Westgaard asked if they could be considered as a secondary use, or
accessory use.
Counselor Beck stated the billboard wouldn't fall into the current city ordinance
definition of accessory use.
Councilmember Burandt asked if another term could be applied.
Counselor Beck stated another term could be added to the ordinance but would
need to be carefully considered.
Steve Anderson, representing Franklin Outdoor Advertising, stated that he felt the
performance standards currently in place for the city's code were very responsible for
the city, but restrictive to allowing more billboards. He suggested lifting the principle
use language from the ordinance and change it to a permitted or conditional use in
the I2 zone,which would allow for a few additional opportunities for billboards to
be placed in the I2 zone.
Counselor Beck suggested a conditional use permitting process would be best if the
city were looking for a way to accommodate more billboards.
Mr. Barnhart stated he felt this would be a different issue if the ordinance didn't
allow billboards at all,but the ordinance does allow billboards and noted perhaps the
ordinance isn't supporting this instance because it isn't conforming with the
intention of this particular business owner.
After some discussion,it was the consensus of the Council to have staff work with
Counselor Beck to analyze and research options to allow a conditional use permitting
process for billboards and bring back their findings at a future meeting.
8.3 Wayfinding Sign Program
Ms. Gardner presented the staff report.
Councilmember Westgaard stated the presentation at the last meeting was very
informative and would recommend hiring of Visual Communications to create a
wayfinding sign program.
P 0WIEHE0 8 'P
City Council Minutes Page 15
January 21,2014
Mayor Dietz stated he liked the presentation and felt the city needed a signage plan,
but wasn't comfortable with the cost of$65,000.
Councilmember Motin agreed that a signage plan is needed but wasn't comfortable
with the cost.
Moved by Councilmember Westgaard and seconded by Councilmember
Wilson to approve the hiring of Visual Communications to create a
wayfinding signage program for the city as outlined in the staff report. Motion
carried 4-1 with Mayor Dietz opposing.
8.4 Draft Letter for Houlton-Olson Farm Property Assessments
Mr. Portner handed out and explained the details of a letter reviewed by the city
attorney,which outlined the agreement between the city and the Houlton-Olson
family with regard to the deferred trunk water and sewer assessments.
Mayor Dietz expressed concerns with the possibility of failing to ensure a guaranteed
return to recover the rest of the assessment, and asked what would happen if the
current farmer would decide to stop farming the land.
Councilmember Wilson stated he understood his concern and given the current
farming market,felt there would be enough interest in someone continuing to farm
the land should the current farmer decide not to farm.
Councilmember Motin stated he agreed with Mayor Dietz and felt unnerved by not
ensuring any guarantee of recouping the assessment cost. He asked if a contingency
lease could be entered into for decreasing in covering any shortfall.
Mr. Portner stated these parameters reflect negotiations with the Houlton-Olson
family in the simplest way to recapture the property assessments.
Mayor Dietz stated he would like to see if there were other sources of revenue to
offset any shortfall.
Councilmember Motin asked if the current lease rate could ever be increased.
Mr. Portner stated as of result of the conversations with the Houlton-Olson family
and the current farming operating conditions,both he and the Houlton's feel the
price per acre could be increased more than what's currently charged.
Councilmember Burandt stated given current conditions at this time, she felt the risk
was low.
P' 0WIE8E0 8Y
City Council Minutes Page 16
January 21,2014
Moved by Councilmember Westgaard and seconded by Councilmember
Wilson to approve the letter of understanding between the Houlton-Olson
family as presented. Motion passed 4-1 with Mayor Dietz opposing.
Mayor Dietz recessed the regular meeting at 8:17 p.m. He reopened the worksession
at 8:28 p.m.
9.1 Standard and Poor's Rating Methodology and Assumptions Update
Mr. Simon presented the staff report. He introduced Terri Heaton from Springsted,
who provided a presentation and answered questions by outlining information on
the new Standard and Poor's rating methodology.
She offered insight on what other cities experienced during recent rating reviews and
what the city can expect moving forward in preparation of issuing wastewater bonds
later this year. She also discussed that we will be having Standard& Poor's out for a
site visit in May.
9.2 2014 Intersection Enhancement Projects
Mr. Femrite presented the staff report.
It was the consensus of the Council to proceed with staff's recommendations to
install stop signs that begin to flash as a vehicle approaches the intersection at the
location of Proctor Road and Highland Road,with funds to come from the
intersection improvement enhancement portion of the 2014 Capital Improvement
Plan.
Councilmember Westgaard provided an additional suggestion of boulevard tree and
foliage trimming to aid in sightline improvements along Jackson Avenue.
Staff was directed to provide additional trimming in that area.
9.3 Wastewater Treatment Plant Expansion Update
Mr. Femrite presented the staff report. Seth Peterson, the city's consultant from
Bolton&Menk,provided a presentation outlining the treatment plant expansion
design status, cost estimates, design process timelines, and estimated project
completion date.
Mr. Peterson asked the Council for their feedback regarding two options available to
process and dispose of bio-solids treatment. The options to consider were as follows:
1) Dry the bio-solids to a cake of 20% solids, then land apply to our site; or
2) Dry the bio-solids to a 20% solids cake, process through a dryer to produce
a"Class A"product,which would then be used for fertilizer on golf courses,
parks, etc.
P0WIEWE0 8V
NANWRE
City Council Minutes Page 17
January 21,2014
The cost of option 2 would raise the project cost by approximately$10-15 million
dollars. Mr. Leirmoe supported Option 1.
After discussion,it was the consensus of the Council to choose Option 1 as outlined
above.
10. Adjournment
There being no further business,Mayor Dietz adjourned the meeting of the Elk
River City Council at 9:33 p.m.
Minutes prepared by Jennifer Johnson
John J. Dietz,Mayor
Tina Allard, City Clerk
P0WIEWE0 8V