4.1. DRAFT MINUTES (3 SETS) 03-03-2014 VA
City of
Elk Meeting of the Elk River City Council
River Held at the Elk River City Hall
Monday, February 3, 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 Manager Jeremy Barnhart, Finance
Director Tim Simon, Fire Chief John Cunningham,Economic
Development Director Brian Beeman, and Executive
Secretary/Deputy City Clerk Jessica Miller
I. Call Meeting to Order
v
Pursuant to due call and notice thereo ;"' e meeting of the Elk River City Council
was called to order at 6:30 p.m. by Mayor Dietz.
2. Pledge of Allegiance
The Pledge of Allegiance was recited.
3. Consider 02 /03/2014 Agen a;
Moved by Councilmember Westgaard and seconded by Councilmember
Motin to approve the February 3, 2014, agenda. Motion carried 5-0.
4. ':.,Consider Consent Agenda I%W
Moved by Councilmember Wilson and seconded by Councilmember
Westgaard to approve the following consent agenda:
4.1 Minutes
• January 6, 2014, regular
• January 6, 2014, closed
4.2 Check register as outlined in the staff report.
4.3 Special event permit to Zylstra Harley Davidson for various events in
2014 as outlined in exhibit A of the staff report, subject to the following
conditions:
1. The event planner is required to notify surrounding businesses,
residents, and organizations within 500-feet of the property. The
city will provide a template of the notice that must be distributed.
The city will provide a list of the property owners who must be
notified. Event planner must submit an affidavit that the notice
was distributed.
City Council Minutes Page 2
February 3,2014
2. Inspection of the outside area will take place prior to each outside
event when there is a tent.Applicant must contact the fire marshal
at 763.635.1110 for an inspection after the tent area has been set up.
3. The tent shall be removed within one day of the event and the site
returned to its previous condition.
4. Event parking may not obstruct public roadways or render them
unsafe for vehicle or pedestrian traffic.
5. If traffic becomes a problem around the temporary site, the area
shall be delineated with a barrier to restrict traffic.
6. No electrical services shall be across any drive or walking surface.
7. All temporary signs shall receive a permit prior to display.
4.4 Position description for street maintenance lead as outlined in the staff
report.
Motion carried 5-0.
S. Open Forum
No one appeared for Open Forum.
6.1 Recognition of Fire Officers and Oath of Office for Fire Officers
Mayor Dietz recognized Captain George Anderson,Lieutenant Terry Elliot, and
Lieutenant Gary Lore for their service as officers to the Fire Department. Mayor
Dietz presented Lieutenant Lore with a Certificate of Appreciation. Chief
Cunningham stated that Captain Anderson and Lieutenant Elliot were unable to be
present and accepted the certificates on their behalf.
Mayor Dietz administered the Oath of Office to Captain Timothy Marchiafava,
Lieutenant Joe Evenson, and Lieutenant Mark Lees.
Mayor Dietz stated that he is receiving a number of questions relating to increases in
homeowner insurance premiums due to the city's ISO rating. He requested Chief
Cunningham discuss this at a future televised meeting.
7.1 Sportech Forgivable Loan
Mr. Beeman 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 Motin and seconded by Councilmember Burandt
to approve a Forgivable Loan in the amount of$111,155.13 to Sportech and
authorize the execution of associated agreements. Motion carried 5-0.
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City Council Minutes Page 3
February 3,2014
8.1 Natures Edge Business Center Phase II
Mr. Barnhart presented the staff report.
Councilmember Motin stated he was expecting Phase II of the plan to conform to
the FAST study and although he is in favor of additional industrial,he is not in favor
of changing what is currently planned. He added that this change has not been
mentioned at the EDA or Citizen Advisory Committee meetings and believes it is
premature to exclude these groups from this discussion.
Councilmember Westgaard indicated he is hesitant to allow this change because he
would like to avoid spot zoning.
Mr. Barnhart explained he is a proponent of adhering to plans but his impression
from the EDA was that they were expecting industrial growth which is not
supported in the current plan. He added that this item was not brought before the
EDA and Citizen Advisory Committee due to timing of the grant application.
Consensus of the Council was to make no change to the zoning of this area.
8.2 Discuss Work Session Items
Mr. Portner reviewed upcoming work session discussion items as outlined in his staff
report.
Council recessed at 6:59 p.m. in order to go into a work session meeting. The meeting
reconvened at 7:03 p.m.
9.1 Plat of Jabez Park Dedication Fees
Mr. Barnhart presented the staff report.
Councilmember Motin expressed concern with Elk River Ford being used as
precedent for ERX. He indicated the code adopted in 1982 states it is reasonable to
require the amount of land equal to 10% of undeveloped land proposed to be
subdivided to be set aside for park dedication. He explained Elk River Ford was
already in place and had 9 acres developed prior to adoption of this requirement in
1982; therefore,they were only charged park dedication on the additional
development acreage when they replatted in 2006.
Councilmember Motin further explained that ERX land has never been platted and
park dedication was not discussed during the Interim Use Permit approval as the
land was not proposed to be developed. He stated that based on code, ERX should
pay park dedication on the entire 26.02 acres since the property has not been
previously platted or developed.
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City Council Minutes Page 4
February 3,2014
Councilmember Westgaard explained that he was on the Planning Commission in
2006 when Elk River Ford replatted and the rationale at the time was based on the
first sentence in section 30-327 of the code. He stated his opinion is park dedication
should be charged when land is being developed.
Mr. Barnhart stated that the city cannot require anyone to plat and added many
properties in the commercial reserve area won't need to plat or replat unless they
plan to build or change their use.
Mayor Dietz questioned if ERX could create oudots. Mr. Barnhart stated that yes,
ERX could create oudots and park dedication is not charged on oudots until they are
platted to be developed.
Councilmember Wilson questioned if the Elk River Ford and ERX is an apples to
apples comparison. Mr. Barnhart indicated that he considers a portion of ERX
already developed;therefore,he believes it is a valid comparison based on the
definition of development.
Councilmember Burandt noted that she does not want to create a hardship for ERX
and would like to work out a payment agreement with them.
Council consensus was for ERX to be charged park dedication for the entire 26.02
acres proposed to be platted. Council also expressed an interest in working out an
agreement with ERX for payment of the park dedication fees over time.
Mayor Dietz disagreed stating that he believes ERX is similar to Elk River Ford and
should not be charged park dedication for the portion already developed. He
requested staff amend the language in the code so this issue does not happen again.
9.2 Energy City Commission
Mr. Barnhart presented the staff report and reviewed the draft ordinance.
Councilmember Motin suggested amending the school representative language to
include a representative from a school located in Elk River.
Consensus of the Council was for this item to be formally approved at the next
meeting.
9.3 Planning Commission
Mr. Barnhart presented the staff report. He reviewed the results of the survey.
Councilmember Westgaard stated that he believes having seven members provides
more diversity when considering various issues. Councilmember Motin concurred
adding that seven members will be helpful when the Commission gets busier.
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City Council Minutes Page 5
February 3,2014
Council concurred with the remainder of the ordinance amendments. Council
consensus was for this item to be formally approved at the next meeting.
9.4 Hockey Day Minnesota Expenses
Mr. Portner presented the staff report. He reviewed the city expenses and listed the
items for which he felt the city should seek reimbursement. He stated that his
recommendation is to seek reimbursement for only the items that are not taxpayer
supported, such as the Ice Arena and items which would be charged out to other
entities operating in the city. He added that many of the costs are associated with
items that would have been carried out as part of our typical city services. Mr.
Portner stated that he is recommending requesting reimbursement of$16,500.
Mayor Dietz explained that when the city agreed to partner for Hockey Day,he
realized that a majority of the expense would fall on the city. He added the school is
not seeking reimbursement. He stated the event provided unparalleled advertising
and marketing benefits to the city and he would like to see $4,500 of the requested
reimbursement covered by the Economic Development Authority.
Council consensus was to seek reimbursement in the amount of$12,000.
10. Council Liaison Updates
The Council provided updates of the work of the various boards/commissions.
11. Adjournment
There being no further business,Mayor Dietz adjourned the meeting of the Elk
River City Council at 8:27 p.m.
Minutes prepared by Jessica Miller.
John J. Dietz,Mayor
Tina Allard, City Clerk
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City of Closed Meeting of the Elk River City Council
Elk Held at Elk River City Hall
ami
River Tuesday, February 18, 2014
Members Present: Mayor Dietz, Councilmembers Wilson,Westgaard,Burandt, and
Motin
Members Absent: None
Staff Present: City Administrator Calvin Portner, City Attorney Peter Beck, Finance
Director Tim Simon, and City Clerk Tina Allard
Also Present: Attorney Tom Scott from Campbell Knutson
I. Call Meeting To Order le
Pursuant to due call and notice thereof, the meeting the Elk River City Council
was called to order at 6:07p.m. by Mayor Dietz.
2. Closed Meeting
Council discussed land use litigation with their attorney per MN Statute 13D.05,
Subd. 3(b).
3. Adjournm '
There being no further business,Mayor Dietz adjourned the closed meeting of the
Elk River Ci ._Council .t_6:38 p.m.
John J. Dietz,May .
Tina Allard, City Clerk
VA
City of
Elk Meeting of the Elk River City Council
River Held at the Elk River City Hall
Tuesday, February 18, 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 Manager Jeremy Barnhart, Finance
Director Tim Simon, Fire Chief John Cunningham,Planner 1 Zack
Carlton,Park Planner Chris Leeseberg, City Engineer Justin Femrite,
Economic Development Director Brian Beeman, City Attorney Peter
Beck, and City Clerk Tina Allard
I. Call Meeting to Order C X,
Pursuant to due call and notice thereof, the meeting of the Elk River City Council
was called to order at 6:10 p. by Mayor Dietz.
2. Pledge of Allegiance
The Pledge of Allegiance was recited.
3. Consider 02 /18/2014 Agenda
Council pulled Item 4.9 from the Consent Agenda and added Item 8.5 titled,
-Commercial Reserve District,to the General Business portion of the agenda.
Moved by Councilmember Westgaard and seconded by Councilmember
Wilson to approve the February 18, 2014, agenda as amended. Motion carried
5-0.
4. Consider Consent Agenda
Moved by Councilmember Westgaard and seconded by Councilmember
Burandt to approve the following consent agenda:
4.1 January 21, 2014, Regular Council Minutes.
4.2 Check register as outlined in the staff report.
4.3 Hire Kristin Mroz as Environmental Technician effective February 20,
2014.
4.4 Adopt Ordinance 14-02 amending Section 2-352, Membership;
Officers; Compensation of Members, and 2-355, Meetings and Rules of
Procedures, Relating to the Energy City Commission.
City Council Minutes Page 2
February 18,2014
4.5 Adopt Ordinance 14-03 amending Section 2-297, Membership, and 2-
299, Meetings and Rules of Procedure, Relating to the Planning
Commission
4.6 Quote from Sam's Lawn Care, Inc. for Twin Lakes Road landscaping
improvements at a cost not to exceed $30,625.50
4.7 Tax Increment Financing Policy outlined in the staff report.
4.8 Tax Abatement Policy as outlined in the staff report.
4.10 Hire Jake Larson as Fulltime Liquor Store Clerk effective February 19,
2014.
4.11 Purchase Skid Steer with accessories and attachments as outlined in
the staff report.
Motion carried 5-0.
4.9 Business Subsidy Policy as outlined in the staff report.
Councilmember Motin discussed changes made to the Business Subsidy Policy by
the Economic Development Authority at their 5:30 p.m. meeting. He noted that
Number 23 (Section II) be incorporated into Number 1 and Number 21 so people
reviewing the policy see they could still qualify for a business subsidy and may not
need a public hearing and have limited reporting form requirements.
Moved by Councilmember Wilson and seconded by Councilmember Motin to adopt
the Business Subsidy Policy with the changes noted above. 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 Don McRae Volunteer of
the Month for February. He noted the following volunteering accomplishments:
• Only charter member still remaining in the Elk River Lions Club.
• Helped founded the Lions Club back in 1971.
• Collects eye glasses for the Lions.
• Organizes 55 Alive classes for the Lions.
• Assisted with conversion of the former Elk River Bank to the Elk River
Lutheran Church.
• Served 2 years on Elk River City Council.
• Precinct caucus chair for the DFL.
• Collected garbage from local highways.
• Donated 14 gallons of blood.
Council congratulated Mr. McRae and thanked him for his hard work.
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City Council Minutes Page 3
February 18,2014
6.2 Recognition of 23 Years of Service: Liquor Store Employee JoAnn
Warren
Liquor Store Manager Dave Potvin discussed Ms. Warren's employment with the
store and stated she makes everyone laugh every day and they looked forward to
working with her. He further stated she will be missed by staff and customers.
The Mayor read the proclamation and presented it to her.
The Council thanked Ms. Warren for her years of service to the city.
7.1 Conditional Use Permit: Anytime Fitness, Case No. CU 14-04
Mr. Carlton presented the staff report.
Councilmember Motin stated he has represented the applicant in the past but there is
not benefit to him for voting on this item.
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
Burandt to approve Conditional Use Permit, Case No. CU 14-04 to Anytime
Fitness to operate a physical recreation facility in the Hillside Crossing
Planned Unit Development, 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 Lot Split: CPE Exchange, Case No. LS 14-01
Mr. Carlton 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.
Councilmember Motin questioned if there is enough land in the 1.5 acre parcel to
allow for a different use, such as an industrial building with sufficient parking.
Staff stated yes,noting the minimum lot size in the Park is 1 acre.
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City Council Minutes Page 4
February 18,2014
Councilmember Motin stated he would not be in favor of an expansion of Spectrum
School in this location due to complaints he's received regarding parking and
pedestrian movement.
Moved by Councilmember Westgaard and seconded by Councilmember
Burandt to approve Lot Split, Case No. LS 14-01 to split a 4.12 acre parcel into
two parcels as shown in the Minor Subdivision Survey in the staff report.
Motion carried 5-0.
8.1 Quiet Zones Update and Notice of Intent
Mr. Femrite presented the staff report and a presentation regarding quiet zones and
the supplemental safety measures requested at each intersection by Burlington
Northern Santa Fe and Federal Rail. He noted the last sentence that is a question
under the Great River Energy section (page 2) in the Notice of Intent should be
removed and was just an internal staff note.
Council questioned if the county is supportive of quiet zones on the three county
road intersections.
Staff stated there is support among county staff but there have not been any
conversations with commissioners yet and that this item will need to go to the
county board for consideration.
Moved by Councilmember Wilson and seconded by Councilmember
Westgaard to approve the Notice of Intent (with the change noted above) to
establish a quiet zone, and direct staff to distribute the notice to all affected
agencies in accordance with Federal Quiet Zone rules. Motion carried 5-0.
8.2 Billboards
Mr. Carlton presented the staff report.
Councilmember Motin stated billboard advertising doesn't need to be expanded in
the city.
Councilmember Westgaard stated it comes down to looking at this as a principle or
conditional use. He stated reducing the lot size is not the right answer because it
opens up issues on the industrial development side. Councilmember Westgaard
stated he doesn't want to see the billboards get as populated as they currently are on
Highway 10 but he does feel they serve a purpose for local businesses for
advertising. He stated by allowing a conditional use, the property would not be
limited by its industrial use,which could still remain the primary purpose of the
property.
There was discussion on the number of billboards that would be allowed with a
conditional use versus a principle use.
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City Council Minutes Page 5
February 18,2014
Councilmember Burandt concurs with Councilmember Westgaard.
Councilmember Wilson felt the conditional use would give the property owner more
flexibility to make use of their property for a financial benefit. He stated he doesn't
see this as a detriment to the community due to the number of potential signs.
Mayor Dietz agreed.
Staff was directed to move forward with an ordinance amendment permitting
billboards as a conditional use in the I-2 zoning district.
8.3 Nature's Edge Phase II, Resolution for DEED Grant, and Select
Engineer
Mr. Femrite presented the staff report.
Moved by Councilmember Westgaard and seconded by Councilmember
Burandt to adopt resolution 14-08 for Business Development Infrastructure
Application. Motion carried 5-0.
Moved by Councilmember Motin and seconded by Councilmember Wilson to
approve up to $89,900 in professional service expenses to Hakanson Anderson
and Associates, Inc. for design and construction management services on
Nature's Edge Business Center Phase II. Motion carried 5-0.
8.4 Insurance Service Office (ISO) Rating
Chief Cunningham presented the staff report and a presentation.
Mayor Dietz stated some citizens who blame the ISO rating on increased insurance
costs have contacted him and asked about this topic. He stated he contacted his own
insurance company who noted the main reason for insurance increases is due to the
number of claims filed in Minnesota recent history. He stated the agent further noted
that an ISO rating between I and 8 would not affect insurance policy costs.
8.5 Commercial Reserve District
Mayor Dietz questioned if Council would be willing to direct planning staff to start
the mining study earlier than normal because there is a citizen who wants to build a
large project in the area.
Council concurred and directed staff to bring the scope and budget back at a future
meeting.
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City Council Minutes Page 6
February 18,2014
Mr. Barnhart stated he would bring Council the scope and budget of the project. He
further stated he originally intended to start the project this summer when he had
staff more trained into positions.
Councilmember Motin stated the Comprehensive Plan Action Committee plans to
put in a provision for the commercial reserve district to move forward sooner then
what was originally planned. He noted this would not be a short-term plan,will take
time to complete, and there may not be an answer this year for the citizen. He noted
the Council has to look at what fits for the area and how the entire area will be
affected for the long-term.
Mayor Dietz questioned if the plan could be done by the end of year.
Mr. Barnhart noted the scope would outline the expectations and it will take several
months because other things need to be considered such as transportation and any
potential conflicts or issues that arise during the planning process.
Council recessed at 7:53 p.m. in order to go into worksession.
Council reconvened at 8:00 p.m.
9.1 Board/Commission Interviews
Council interviewed applicants for the various board and commission openings.
Terms are valid March 1, 2014 to February 28, 2017.
Moved by Councilmember Motin and seconded by Councilmember
Westgaard to appoint Jim Hamann, Matt Westgaard,Jason Hoskins, and
Chris Tanaka to the Energy City Commission. Motion carried 5-0.
Moved by Mayor Dietz and seconded by Councilmember Motin to appoint
Lance Lindberg and Debra Mortensen to the Heritage Preservation
Commission. Motion carried 5-0.
Moved by Councilmember Motin and seconded by Councilmember
Westgaard to appoint Brian Ballenger, Ryan Holmgren, and Michael Larson
to the Ice Arena Commission. Motion carried 5-0.
Moved by Mayor Dietz and seconded by Councilmember Westgaard to
appoint Michael Niziolek and James Nystrom to the Parks and Recreation
Commission. Motion carried 4-1. Councilmember Motin opposed.
Councilmember Motin stated he had no issues but noted he would like to give a new
applicant a chance to serve on the commission.
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City Council Minutes Page 7
February 18,2014
Moved by Councilmember Burandt and seconded by Councilmember Motin
to appoint Jill Larson-Vito to the Planning Commission. Motion carried 5-0.
Moved by Mayor Dietz and seconded by Councilmember Westgaard to
appoint Allan Nadeau to the Utilities Commission. Motion carried 5-0.
10. Adjournment
There being no further business,Mayor Dietz adjourned the meeting of the Elk
River City Council at 8:22 p.m.
John J. Dietz,Mayor
Tina Allard, City Clerk
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