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11-17-2014 CCMMeeting of the Elk River City Council Held at the Elk River City Hall Monday, November 17, 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, Park Planner Chris Leeseberg, Communications Coordinator RaeAnn Gardner, City Attorney Peter Beck, City Engineer )us tin Femrite, Park Planner /Planner Chris Leeseberg, Chief Wastewater Operator Matt Stevens, and City Clerk Tina Allard 1. 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 of Allegiance was recited. 3. Consider I 1 /17/2014 Agenda Moved by Councilmember Westgaard and seconded by Councilmember Wilson to approve the November 17, 2014, agenda. Motion carried 5 -0. 4. Consider Consent Agenda Moved by Councilmember Westgaard and seconded by Councilmember Motin to approve the following consent agenda: 4.1 Check register as outlined in the staff report. 4.2 Pay estimates for the public works facility and Nature's Edge Business Center Phase II as outlined in the staff report. 4.3 The 4`h microloan program, funding by State of Minnesota Investment Funds, intended to support job generating businesses. 4.4 Partnership Agreement with Retired and Senior Volunteer Program. (RSVP). 4.5 Resolution 14 -64 adopting and levying special assessments for costs incurred to connect to city water and sanitary sewer lines. 4.6 Resolution 14 -65 adopting and levying assessment for abatement of city code violations. City Council Minutes November 17, 2014 Page 2 4.7 Resolution 14 -66 adopting and levying assessments for unpaid electric services as of September 30, 2014. 4.8 Resolution 14 -67 adopting and levying assessment for unpaid garbage collection services as of September 1, 2014. Resolution 14 -68 adopting and levying assessment for unpaid sewer services as of September 30, 2014. 4.9 Resolution 14 -69 adopting and levying assessment for unpaid water utility services as of September 30, 2014. 4.10 Hire Jolene Richter as part -time secretary/ receptionist to start December 1, 2014. Motion carried 5 -0. 5. Open Forum No one appeared for Open Forum. 7.1 Conditional Use Permit: Hong Ce, Lin for Hajime Restaurant, 18850 Dodge Street Mr. Leeseberg 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 Conditional Use Permit, Case No. CU 14 -19 with the following conditions: 1. The CUP is not a building permit and the applicant must apply for and receive approval of required building permits before construction may begin. 2. The building shall meet all building and fire codes. 3. The applicant must apply for and receive approval of all required sign permits before signage may be installed. Motion carried 5 -0. 7.2 Coin - Tainer Business Subsidy Review Mr. Barnhart presented the staff report. Mayor Dietz opened the public hearing. Moved by Councilmember Motin and seconded by Councilmember Wilson to continue the public hearing to December 15, 2014. PO1fa[1 9Y U City Council Minutes Page 3 November 17, 2014 --------- -------------------- 7.3 Ordinance Amendment Reduceng Required V'eMcle Stacking Space for Bank Drive - Through Lanes Mr. Leeseberg 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 how it was decided to reduce the number to two for vehicle stacking. Mr. Leeseberg noted it was two vehicles per lane for stacking. He stated moare people are banking online so there isn't the need for longer stacking lanes. Moved by Councilmember Westgaard and seconded by Councilmember Wilson to adopt Ordinance 14 -15 amending Section 30 -903, entitled Minimum Number of Parking Spaces of the City of Elk River, Minnesota City Code to modify parking requirements for banks. Motion carried 5 -0. 7.4 Ordinance Amendment Modifying Signage Regulations for Permitted Home Occupations Mr. Leeserberg presented the staff report Attorney Beck arrived at 6.11 p.m 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 Westgaard to adopt Ordinance 14 -16 amending Section 30 -801, entitled Home Occupations of the City of Elk River, Minnesota, City Code to modify sign regulations for home occupations. Motion carried 5 -0. 7.5 Ordinance Amendment to Allow Truck Sales and Service in Highway Commercial DistrP ct (C3) as Conditional Use Mr. Leeseberg 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 asked what the current zoning is for Saxon Motors in the Focused Area Study (FAST). It was noted it is in the Highway Commercial District (C3). P I 1 1 R I I I T NATURE City Council Minutes November 17, 2014 Page 4 Councilmember Motin commented that this would then allow truck sales and service for Saxon, but with the changes expected from FAST (later on the agenda tonight); this area would then not be allowed truck sales and service. Staff noted this is correct. Moved by Councils- nember Filson and seconded by Councilmember Westgaard to adopt Ordinance 14 -17 amending Section 30 -1024 (d) (2), entitled Highway Commercial District of the City of Elk River, Minnesota, City Code to allow trucks and services as a conditional use. Motion carried 5- 0. 7.6 Ordinance Amendment to Create Southern Twin Lakes Road Business District (Focused Area Study -FAST) Mr. Barnhart presented the staff report. He explained that this ordinance is creating a new zoning district, which is intended to incorporate all of the sub- zones /mini- neighborhoods associated with the FAST. He stated this ordinance will codify the uses that are appropriate for each zone, architectural standards, design guidelines, and setbacks. Mr. Barnhart reviewed a map highlighting the new district. He noted certain areas in the new zoning district that would retain their current zoning, such as the business park and the planned unit developments. Mr. Barnhart noted that by the Council approving this new zoning district, they are not rezoning any property in the district. He stated the rezoning for this entire area will come back to Council at a later date. Mr. Barnhart explained in detail the sub - districts in the new Southern Twin Lakes Road Business District: 1. The Point District (high- density residential with focus on the river) 2. The Pinnacle District (light industrial) 3. Office Village (office /showrooms) 4. The Hinge (community commercial, retail, and office) 5. East Elk Diver Gateway (highway business - destination retail /high density residential) 6, Station Area Village (commuter rail type uses) 7. Hillside Heights (mixed use residential) 8. River West Residential (Single and attached family residential) Mayor Dietz opened the public hearing. Steve Rohlf, 12821 188th Avenue - Noted two written statements should have been included in the Council's packet. He stated he wants to verify that car lots are allowed in The Hinge as a conditional use. . It was noted yes by the Council. 0 1 1 R I I I T I City Council 11Nfinutes November 17, 2014 Page 5 Mr. Rohlf disagreed with staffs comments about access being an issue for car lot sites. He stated visibility is an issue but that car lots are a destination stop. Mr. Rohlf stated he would like to verify that Lot 4, Block 1, of Mississippi Ridge Second Addition still remains in a Planned Unit Development (PUD) as a commercial lot. Mr. Barnhart stated the city is not proposing to rezone any lots that are currently zoned as a PUD. Mr. Rohlf further noted an item on a future Planning Commission agenda to add Lot 4, Block 1, to an official map as a road. He stated this process will make the lot unsellable to anyone and felt this would be considered inverse condemnation. He stated he would like to extend an offer to discuss this matter with Council before the Planning Commission meeting. The mayor and city attorney noted this item would come to the Council after it is reviewed by the Planning Commission. Mr. Rohlf suggested a negotiation for sale of the property to the city. Mr. Rohlf stated having high density residential along the Mississippi River doesn't seem like a good fit for the Wild and Scenic Designation due to the scenic designation rule about seeing roof tops from the river. Mayor Dietz closed the public hearing. Councilmember Motin stated he didn't see trucking companies incorporated as any of the uses. Mr. Barnhart stated new uses weren't added to the district. He noted current trucking companies are governed by their own PUD and if a company wanted to expand, they would need to come back to Council via the conditional use permit process. Councilmember Motin noted Morrell Trucking Company has indicated they may want to purchase property currently under city ownership. He stated trucking isn't included as a use in this district Attorney Beck stated the most likely process would be for them to rezone the land into a PUD from its subzone in the Twin Lakes District. Councilmember Westgaard expressed concern for the number of non- conforming businesses that would be created by this ordinance amendment. He noted business community concerns about rezoning this area. He stated there should be further discussion on the points where staff and the Planning Commission don't agree. pV0VEelI I NAWREJ City Council Minutes November 17, 20114 Page G Council consensus was for this item to come back to two worksessions with Half the sub - districts being discussed at each meeting and for the incoming Councilmembers to be invited to participate. Council also requested the following: 1. Maps be provided as part of the packet for the presentation. 2. See the type of business currently in the sub- districts and what impact this ordinance amendment will have on them. Attorney Beck stated rezoning for the Southern Twin Lakes Road Business District could be included as part of the woAsession discussions. Mr. Barnhart stated part of the reason he separated the rezoning from the district creation was to have less confusion for the business owners on what specifically is being discussed. Council consensus was to designate Mayor Dietz and Councilmember Westgaard to meet with Mr. Rohlf regarding his property. 7.7 Ordinance Amendment Adopting 2015 Fee Schedule and Reso6uCon for Summary PubUcation of the Ordinance Ms. Allard presented the staff report. Mayor Dietz opened the public hearing. Debbie Rydberg, Elk River Area Chamber of Commerce — Stated she has heard many businesses complain about the sewer access charge and asked the Council to review whether a fee increase of 3% is necessary. Mayor Dietz closed the public hearing. Mr. Simon stated the city has established a long -term funding plan for the Wastewater Treatment Facility and is currently going through the process of a large $17 million expansion project. He stated the city evaluates the cost of new connections and sewer rates over a long -term so there are no huge spikes in city fees and noted the goal is to maintain them at a steady, level rate. Mayor Dietz stated the city used to have large spikes in the sewer and water access fee before moving toward this long -term steady planning process. Moved by Councilmember Motin and seconded by Councilmember Nilson to adopt. 1. Ordinance 14 -18 adopting the 2015 Master Fee Schedule of the City of Eik liver, Minnesota, City Code. Motion carried 5 -0. POGEAE® I UVE City Council Muiutes November 17, 2014 Page 7 2. Resolution 14 -70 approving summary publication of Ordinance 14 -19, an ordinance adopting the 2015 Master Fee Schedule. Motion carried 5 -0. 6.1 City of Elk River Volunteer of the Month - Mayor Dietz Mayor Dietz introduced, read, and presented a plaque to Eric Waldoch Volunteer of the Month. He noted the following volunteering accomplishments: ■ Annual conference chair and past president for the MN Technology Engineering Education Association. • Trustee at Elk River United Methodist Church. • Trustee chair for 12 years of the Elk River United Methodist Church. • Facilitated the car repair program for Community Aid Ell River (CAER). • Repairs motorized equipment for the Elk River Sportsman's Club. B. p Wastewater Treatment Facility Expansion Project Mr. Stevens presented the staff report. He discussed the revised budget, timeline of the project, pictures indicating where changes will occur, and reviewed next steps in the process. 13.2 Stormwater Pond Dredging Mr. Femrite presented the staff report. Moved by Councilmember Wilson and seconded by Councilmember Westgaard to accept the bid from Frattalone Companies in the amount of $137,445.24 to dredge the Orono and Highland /Jackson stormwater ponds. Motion carried 5 -0. 8.3 2015 Street Improvement 1. Design Alternative for Jarvis Street and 165th Avenue 2. Increase in Engineering Fees 3. Resolution Establishing Parking Restrictions Along Jarvis Street and 165th Avenue 4. Resolution Requesting a Variance from Standard Standards for Geometric Design 5. Resolution Requesting Advancement of Municipal State Aid Funds Mr. Femrte presented the staff report. Moved by Councilmember Motin and seconded by Councilmember Westgard to approve a 36 foot wide street for Jarvis Street and 165`'' Avenue. Motion carried 5 -0. City Council Minutes Page 8 November 17, 2014 Moved by Councihrnember Westgaard and seconded by Councilmember Motin to approve an increase in engineering fees as outlined in the staff report. Motion carried 5T-0. Moved by Courncilrnember Wilson and seconded by Councilmetxmber Westgaard to adopt the following resolutions: 1. Resolution 14 -71 establishing parking restrictions on particular municipal state aid routes. 2. Resolution 14 -72 requesting a variance from standard for state aid operation for Project No. S.A.P. 204- 135 -041. 3. Resolution 14 -73 for implementation of Municipal State Aid Streets Fund advance. Motion carried 5 -0. Council recessed at 7:17 pm. Council reconvened at 7:23 p.m. 9.1 Wayfinding Program Mr. Portner stated consultants from Visual Communications and the Fact - finding Committee are present tonight to provide their input regarding wayfinding signage. He reviewed existing signage and some future signage projects that various departments are working toward completing. Jesse Yungner and Constance Carlson discussed how they worked with the fact - finding and wayfinding committee. They reviewed wayfinding signage design options, outlining how and why certain design elements were selected. Mr. Portner stated the consultant listened to both the fact - finding and wayfinding committee to identify expectations and community destinations. They then toured the city and formed some of their thoughts and perspectives of Elk River. They created their initial designs considering the items the committee expressed as important and included some of the community's history and highlights improve wayfinding. They utilized local input and matched it with an outsiders perspective. Mr. Richard Lang explained the sign hierarchy. He stated the sign plan will be a blueprint for the city and outlines in detail how each sign will look, including such things as font style and size, sign type and materials. He stated his staff will need to do some field testing to determine how a sign will work and meet with construction experts to determine the best value at which a particular sign can be built. He stated they value engineer signage and try out different parts and features to see what will provide the best value and still work for its location. Mr. Lang noted the city welcome sign in Orono Park would cost approximately $50,000- 60,000 to build today. Mr. Lang revealed a preliminary map with a key messages mock -up to show the Council the type of data that would be provided in a wayfinding plan. CIVERII I NATUREI City Council Minutes November 17, 2014 Page 9 Mayor Dietz stated several of the signs shown have stonework in them but this type of stone is not native to Elk River. He stated the city has a lot of gravel pits and maybe something more native should be used, such as rock. Councilmember Westgaard noted that the downtown Rivers Edge Park has the limestone look throughout. Mayor Dietz stated it would be valuable for the consultant to look at the city's sign equipment in order to see how much can be done in- house. He stated he likes Option A. He stated he wants to keep a simple approach and not add more design elements to signage than needed. Councilmember Wilson concurred. He expressed concern about the investment the city has in its logo and that it should be carried through in wayfinding signage. He stated he wants the logo more obvious rather than subtle. He understands why the limestone look was chosen but doesn't feel it is representative of the city. He stated Elk River rock or boulders would be more representational. He stated he preferred Option A. He stated the vertical gateway signage had more appeal to him. Councilmember Motin stated he has no issues with the limestone type rock in the designs as they go well with the downtown. He stated he doesn't necessarily feel every sign needs to be consistent and have the same look to them and suggested that park signs have one look and another sign type have another look. He expressed concerns with the original signage not having costs attached with them when presented to Council at a previous meeting. He questioned how issues can be remedied based on uniformity of signage, such as the rules signage in some parks. He stated he likes the use of the city logo and would like to see it done in a way that if the city changes its logo, the city logo portion of the sign can be changed out. Councilmember Westgaard concurred. He stated he likes the limestone look and feels it makes the signs look rich and nice. He stated a goal wasn't set out at the beginning that the committee had to use only materials found in Elk River. He stated the city has already made a conscious effort in the downtown park and questioned why the city would depart from using that same concept; otherwise it may look more disjointed. He stated he likes a vertical sign over horizontal signage. He stated he doesn't think the city needs to have the logo on gateway signage because its purpose is primarily to say welcome to Elk River visitors. He suggested using the watermark at time or the cutouts (not an all or nothing situation use, but to watermark at times without necessarily the elk logo). He stated he likes the international pictograms and they're easily identifiable as to what is located in the park. He stated the city needs to clean up and organize its signage and make a conscious effort to make them all the same as they need replacing. He stated he likes the traditional and contemporary option. He stated he likes the concept of the option (Option B) with the elk antlers but without the antlers that hang off the signage (the watermark). 'NATURE] City Council Minutes November 17, 2014 Page 10 Councilmember Burandt stated they all had some features about them that are nice and would represent Elk River well. She stated the city needs to look at the costs and which sign option would be most conducive to that. She stated she likes the idea of placing signage over time and being consistent with the signage look. She stated she wouldn't be opposed to any of the options. Councilmember Morin expressed concern with readability and commented on the Northstar signage. Mayor Dietz asked for comments from the fact - finding committee.. Jennifer Wagner, stated she would be hesitant to put the city logo on the signage in case the logo were to change in future years and suggested the sign be designed so it can be removed easily. She questioned if anyone can remember what any other city's logo looks like. She stated the logo is not what identifies the city and isn't going to dictate whether outsiders like the sign or not. She stated she loves the watermark and the waves with the die cutting and think they are important design elements. She stated she likes using the copy of the Powered by Nature brand, but not the logo as it will become outdated and people will wonder why it was used. She also noted how important readability is for signage and referred to the Northstar signage. She stated the limestone is in the downtown park, which is a true gem of the entire city. Mr. Lang stated there is use of different types of stone throughout the community and the limestone reflects who the newer suburbs are. Councilmember Wilson disagreed and stated Elk River is not a new suburb. He stated this is describing us like we want to become a Maple Grove and it's not who we are, but, he stated, maybe it's because he has lived here all his life. He stated this city has taken a lot of the essence of what's important in this community and replaced it with what's popular today and has no meaning to it. He referenced the river rock at Handke Pit and how nice it was for a backdrop for the Hockey Day Minnesota event. Ms. Wagner stated she understands the need to maintain history but she also understands the city needs to look into the future and think of the solidarity of color. She noted it is so much easier to look for the same color signs in a community when you are trying to locate different areas. Councilmember Wilson stated he agrees consistency is needed. Debbie Rydberg, Fact - finding Committee — Stated she would like to see the signage remain more natural /neutral, since the community is powered by nature. She stated the reds, blues, and oranges, or a defusing color are not needed because everyone has their own opinion as to what a color stands for and the community is diverse. She stated she saw a lot of plants being used and expressed concerns about upkeep and maintenance in all seasons. She stated she likes the use of natural elements, such as metals. INATUREI City Council Minutes November 17, 2014 Page 11 Charlie Blesener, Fact - finding Committee — Stated he likes the idea of having a plan, similar to the St. Paul example shown, and it makes sense for the cite to adopt a long -term plan. He stated he liked the vertical look the best. He stated all capital letters shouldn't be used because it's more difficult to read. He liked Option 1 the best and didn't care for the red lettering in another option. He stated he liked the subtle elements such as the antler watermark in the background. Dave Anderson, Fact - finding Committee — Stated he liked Option 1 the best but he is not sure he likes it better than the current sign near Orono Park. He noted the sign does need to be upgraded to the current city elk logo. He stated he prefers the elk logo on the gateway signage. He stated he prefers natural stone over limestone but noted it's hard to build things out of round rocks. He stated there are some park signs the need to be upgraded. He questioned if the city is behind the times and should consider creating an Elk River navigation app for mobile technology. He stated he would like to see the signage be low maintenance with the landscaping. Cal questioned how much more public input the Council would like for this project and asked if they wanted it sent to the boards and commissions or want to see updated designs based on comments received this evening. He noted money is in a number of departmental budgets for signage. He stated we are Elk River but there are a lot of people who come from other communities to spend time and money at our businesses and the city wants to maximize their experience in the community. Councilmember Morin stated it would be difficult to send to the commissions because there will be many varied ideas on signage design. He stated there are many different representatives and viewpoints here tonight and it will be difficult creating signs based on the differences in comments expressed. Mayor Dietz suggested the consultant come up with one option that centers on the current city logo and one without it. There was discussion about using Option A and changing it out with the elk logo and the field stone versus the limestone. Various Council and comrmttee members were split on the use of Option A and Option 1. Councilmember Motin further expressed concern about using the Powered by Nature logo because it hasn't taken off in the community. He expressed concern with it being drilled into the stone and trying to replace it later. Mr. Lang stated the drill holes in the stone would be an easy fix with different techniques. Mr. Anderson asked if the existing sign in Orono Park could be utilized as gateway throughout the city. P ff w E R E l 8 Y INATUREI City Council Minutes November 17, 2014 Page 12 Mr. Portner asked the consultant about using the existing elements of the Orono Park sign and creating a wayfinding plan from it. Mr. Lang stated the Orono Park sign as a gateway sign is very strong and he isn't sure how it would transfer through the whole signage system. He stated he isn't sure there are characteristics that are unique enough to create a sign system around it and suggested adapting it to fit for Orono Park. Council consensus was to take Option 1 and incorporate some items discussed tonight, such as changing out the logo and trying different elements of the limestone and fieldstone. 902 Starmwaterr Utflky Fee Program Mr. Femrite presented the staff report. He reviewed communications efforts to engage the public about how to fund the stormwater program. He discussed survey questions regarding whether the community wanted a fee based program or for funding to be taken from property taxes. He noted that more people chose the fee based program. Mr. Femrite discussed the feasibility report. He stated the report recommends $3 per month on residential parcels and a residential equivalency rate for all the commercial and industrial properties based on their impervious surfaces. The report didn't discuss how the city should distinguish between a rural or urban residential property. Mr. Femrite stated staff is working on a draft ordinance. He reviewed a proposed fee structure. He suggested a tiered rate for residential properties, such as $3 for urban service residents, $2 per month for rural residential and other properties (non - single family residential) would contribute $21 per acre of impervious surface per month. He stated at these rates, the city would generate about $418,000 annually for the stormwater program. Mr. Simon stated a new enterprise fund would be created for the stormwatet program. He noted many cities have it classified as an enterprise fund since user charges are typically the funding source. With creation of a storm sewer enterprise fund, like all other similar funds, depreciation of assets is included in the budget. A resolution to close out the current surface water management fund and transfer any remaining assets to the new enterprise fund will be done as part of the program approval. Mr. Femrite stated the impact fees charged to developers are being kept in the fee schedule in order to keep the fee low for residents and businesses. Mr. Femrite compared some other cities and asked the Council to focus not on the amount of the other community's stormwater fee, but rather the trend of their fees increasing. He stated the general trend, in other cities, is the fee has been increasing to meet the needs of the new regulations for their reissued permits. He stated this is INATUREJ City Council Minutes November 17, 2014 Page 13 different than the street franchise fee in that this stormwater fee may need to be re- evaluated every few years. Mr. Fen-rite reviewed the future schedule for this program. Council consensus was to continue moving forward with the stormwater fee. 9.3 2015 Budget Mr. Simon reviewed adjustments to the proposed 2015 budget and noted the levy from 2.05% down to 1.66 %. He mentioned the tax rate drop. He asked for any final questions or comments before the public presentation of the proposed budget in December. No comments were received and Council direction was to prepare the final resolution. 10. Adjournment There being no further business, Mayor Dietz adjourned the meeting of the Elk River City Council at 9:08 p.m. WJ�ietz, or T ina Allard, City Clerk " J \ r V E