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08-07-2017 CCM�'�- Meeting of the Elk River City Council .ft.r- ver Held at the Elk River City Hall Monday, August 7, 2017 Members Present: Mayor Dietz, Councilmembers Olsen, Ovall, Westgaard, and Wagner Members Absent: None Staff Present: City Administrator Calvin Portner, Finance Director Lori Ziemer, Parks Maintenance Supervisor Tim Sevcik, Parks and Recreation Director Michael Hecker, Recreation Manager Steve Benoit, Economic Development Director Amanda Othoudt, Parks Superintendent Tim Sevcik, Community Operations and Development Director Suzanne Fisher, Senior Planner Chris Leeseberg, and City Clerk Tina Allard Call Meeting to Order Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called to order at 6:30 p.m. by Mayor Dietz. 2. Pledge of Allegiance The Pledge of Allegiance was recited. Consider 08/07/2017 Agenda The Mayor stated Item 4.4, Appmve Purcbase Agreements for 706 puinn Avenue and 709 Proctor Avenue, has been added to the consent agenda. Moved by Councilmember Westgaard and seconded by Councilmember Wagner to approve the August 7, 2017, agenda as amended. Motion carried 5- 0. 4. Consider Consent Agenda Moved by Councilmember Wagner and seconded by Councilmember Westgaard to approve the following consent agenda: 4.1 Check register, check numbers 9903-9904 and 102487-102731 as outlined in the staff report. 4.2 Development Agreement for Eagles Marsh Third Addition. 4.3.A Special Event Permit for the Thumbs Up High 5K scheduled for Saturday, September 30, 2017, subject to the following conditions: 1. The event planner is required to notify businesses, residents, and organizations abutting the route. The city will provide a template of the notice that must be distributed. The city will also provide a list of the properties to be notified. The event planner must submit an affidavit the notices were distributed. City Council Minutes .August 7, 2017 Page 2 2. Applicant must obtain property owner permission for use of private property. 3. ERPD will provide two reserve officers /community service officers to assist with traffic control for the race. Applicant must contact Police Captain Darren McKernan (763.635.1202) at least two weeks in advance to arrange for police reserves. 4. Walkers/numers are to utilize sidewalks, trail systems, or road shoulders throughout the entire route. No road closures will be permitted. It is each runner's responsibility to ensure the streets/intersections are safe prior to crossing. 5. A route marshal shall be placed every 1000 feet along the race route to keep walkers, runners, and rollerbladers on the sidewalk per MN Statute 169.21. Bike riders are permitted to ride on the shoulder of the roadway with the flow of traffic following statutory requirements of MN Statute 169.221. Route marshals will not direct traffic. 6. Staggered start of five minutes between different race groups. 7. Registration form will include rules and regulations. 8. Race marshal shall give a safety brief to all participants prior to the start of the race explaining the rules. 9. Applicants shall be responsible for garbage clean—up immediately following the event. 10. Applicant is responsible for arranging delivery of barricades and/or cones by contacting Street Superintendent Mark Thompson at 763.635.1122. 11. No paint allowed anywhere on route. Chalk or cones may be used on the sidewalks only. 12. Tents must meet applicable state and fire building code requirements. No stakes shall be pounded into the pavement. 13. Applicant must provide enough portable toilet facilities through a private contractor to accommodate the expected attendance. 4.3.11 Special Event Permit to Elk River Municipal Utilities for a ribbon cutting and grand opening to celebrate the rollout of the electric vehicle charging program on Wednesday, September 13, 2017, subject to the following questions: 1. The event planner is required to notify businesses, residents, and organizations within 500 -feet of the event. Downtown businesses will be notified of the parking lot closure. The city will provide a template of the notice that must be distributed. The city will also provide a list of properties to be notified. The event planner must submit an affidavit that the notices were distributed. 2. Closure of the Main Street Parking Plaza will be permitted from 4:00 p.m. to 9:00 p.m. Wednesday, September 13, 2017. Applicant is responsible for barricading parking lot. Parking lot must be completely cleared prior to removal of the barricades. 3. Applicant is responsible for arranging delivery of barricades and/or cones by contacting Street Superintendent Mark Thompson at 763.635.1122. NATURE City Council Minutes August 7, 2017 Page 3 4. Applicant is responsible for garbage clean-up immediately following the event. 5. No stakes shall be pounded into the pavement or anywhere in the parking lot. 6. Tents must meet applicable state and fire building code requirements. Applicant is responsible for contacting Fire Marshal Cliff Anderson at 763.635.1110 to schedule an inspection of the tents prior to use. 4.3.0 Special Event Permit amendment for Broadway Bar and Pizza to hold a car show on Sunday, August 27, 2017, subject to the following original conditions: 1. The event planner is required to notify surrounding businesses, residents, and organizations. The city will provide a template of the notice that must be distributed and a list of property owners to notify. The event planner shall provide an affidavit showing the notice was distributed. The notification must address the anticipated increase in street parking. 2. On -street parking is used for customers only. All display vehicles must be confined to Broadway Bar and Pizza property. 3. Applicant must receive permission for use of any private property. 4. 167`s Avenue must remain open to two-way traffic. 5. Liquor is only permitted inside the building and on the patio, and must be strictly enforced by bar staff. 6. Exterior sound systems/music must comply with city noise ordinance. 7. Applicant must contact Fire Marshal Cliff Anderson at 763.635.1110 (during regular City Hall business hours) prior to or during event set up for walk-through inspection of the property to ensure proper accessibility to the buildings and adjacent properties is maintained during the event. 8. Applicant is responsible for garbage clean-up immediately following the event. 4.4 Purchase Agreement No. 17-19 with Quinn Avenue, LLC., and Purchase Agreement No. 17-20 with Wayne and Teresa Scott. Motion carried 5-0. 5. Open Forum Alyssa Johsnon, Elk River Area Food Coop — Stated the coop would eventually like to have a storefront. She discussed membership and the need to get more people involved in order to help build the store. Mr. Portner noted they are looking for assistance on getting membership information out to more people. Staff was directed to assist the coop. 1RNIRER Rt INATURE City Council Minutes August 7, 2017 Page 4 Dr. Michelle Eddy — Stated she is a chiropractor and owner of Focused Health and Wellness Center and she is also speaking on behalf of Dr. Nicole Dotson, owner of Intrinsic Wellness Center. Ms. Eddy stated they recently leased space at 12580 192"' Court. She stated their broker and landlord were under the impression massage services were allowed at this location and they had advertised the property as such. She stated they recently found out zoning laws don't allow massage therapy and they wouldn't have signed a lease if they had known this information. She requested the area be rezoned to allow massage services. Mr. Leeseberg stated massage is considered a personal service, which is not listed as a permitted or conditional use in the Il District. He stated medical, optical, and dental offices are allowed because labs are listed as a permitted use and these types of services typically do lab work. He stated a lot of the uses in this multi -tenant building are falling under the lab use. He stated if a doctor has a massage therapist working under them as an employee, then from a zoning standpoint, it's a non -issue. He stated in this situation, the massage therapist would be leasing space from the doctor's office and operating as an independent contractor/business. He stated the ordinance language is ambiguous in regards to this type of situation. He stated Council direction is needed on whether the massage therapist must be an employee of the doctor's business or if the Council would allow any massage/personal services in the I1 zoning district. He stated staff would most likely not be supportive with allowing massage therapy in this zoning district but an evaluation of the history of the zoning should be reviewed for intent. Council directed staff to further research the matter. 6.1 Introduction of New Employees New employees were introduced to Council as noted in the staff report. Council welcomed them to the city. 6.2 Proclamation: October IS, 2017, as Pregnancy and Infant Loss Remembrance Day Mayor Dietz read the proclamation. Moved by Councilmember Olsen and seconded by Councihnember Ovall to proclaim October 15, 2017, as Pregnancy and Infant Loss Remembrance Day. Motion carried 5-0. 6.3 Resolution Encouraging Residents to Attend the State Capital Grand Opening Mr. Portner presented the staff report. p011AEI II MATURE City Council Minutes August 7, 2017 Page 5 Moved by Councilmember Wagner and seconded by Councihnember Westgaard to adopt Resolution 17-42 encouraging the people of Elk River to attend the grand opening of the Minnesota State Capitol. Motion carried 5-0. 7. Public Hearings There were no public hearings. 8.1. Ice Arena Architectural Services Mr. Portner presented the staff report. Council noted, prior to the referendum, they had discussed what next steps would be necessary, if the referendum failed, due to the need to fix failing city buildings having reached their lifespan. Councilmember Olsen questioned the status of Lions Park Center. Mr. Pormer stated the plan would be to add some community space to the arena facility. He stated it would replace the community space of Lions Park Center. He noted Lions Park Center is also in need of repairs. He stated the new footprint of the arena will take out the girls' softball field, so it will be moved to Lion John Weicht Park with an additional field constructed for ease of programming. Mayor Dietz expressed the following: • During discussions, prior to the referendum, repair costs to the arena were estimated at approximately $12-15 million. Current data shows the arena would now cost about $21 million, plus $3.5 million if the activity center is revamped or $1.75 million if it is moved to the YMCA. • He would consider another referendum. • This is a huge impact to tax payers. ■ Receiving comments from the public about youth hockey's contribution. ■ Receiving comments about other sources of revenue available to pay for the arena. Why should all residents have to pay for a hockey arena? • New arena concepts don't illustrate community space. • Where is the city at with the YMCA regarding the activity center? Mr. Portner discussed the three options originally proposed by the task force for repairing city buildings. a) Construction of a new multipurpose facility referendum projected to cost $30 - $33.5 million. b) Improvements to existing facilities consistent with stakeholder expectations were projected to $23 - $32 million c) The last option included basic repairs and improvements to keep the existing buildings functioning projected to be about $10 million NATURE City Council Minutes August 7, 2017 Page 6 Mr. Panner further stated the arena needed to move forward now due to school district tinting needs with their facility improvements. He noted the activity center options will be brought to Council at a later date. He stated the arena is in bad shape and needs large expenditure repairs. He stated decisions are needed now on the arena so the city is not paying for quick fix repairs knowing a remodel may soon happen. Mayor Dietz stated the newer portion of the arena is structurally sound and should last for many more years. He stated it makes the most sense to keep the current ice sheet and add one more. He stated he is willing to spend funds on architectural drawings but the finished product will come down to funding. He stated he is willing to have another election at a lower dollar amount in November 2018. He asked if there has been any thought of selling the arena to youth hockey for $1. Mr. Portner stated he asked the school district about purchasing the arena and they had no interest. He stated youth hockey most likely would have no interest in maintaining a facility, noting it needs a lot of capital improvements in order for it to continue to operate. He discussed past funding efforts provided by youth hockey. Mr. Pormer stated the arena can be value engineered and the city can get alternate bids for wants/needs but the costs will be approximately $25 million. He discussed how the impacts to tax payers can be manipulated, such as once the police station is paid off, taking those funds and putting them towards the arena payment. Councilmember Ovall expressed concerns with taking these funds from the government building fund for the arena because there could be additional city services needed in current growth areas, such as a fire station on the east side. Councilmember Ovall questioned if the Parks and Recreation Commission endorses the plans for the softball field movement at lion John Weicht Park and whether this move is consistent with the Parks and Recreation Master Plan. Mayor Dietz commented Lion John Weicht Park doesn't get much use for being in the center of the city. He stated the fields would not have an adverse effect on the park. Councilmember Ovall questioned if the park didn't get use because of the lack of investment in it; noting there is high density housing and schools surrounding it. He noted the fields would be a significant investment and questioned what would be better for the general population for this specific park. Councilmember Olsen concurred with Councilmember Ovall. Mayor Dietz noted the school may not be willing to swap the land needed for the arena expansion if they didn't get the fields in the park. Moved by Councilmember Westgaard and seconded by Councilmember Wagner to authorize drafting of a request for proposal for architectural Pn1Enta 11 NATURE City Council Minutes August 7, 2017 Page 7 services for an Elk River Ice Arena remodel and expansion. Motion carried 5- 0. 8.2 Dave Anderson Athletic Complex Irrigation Replacement Mr. Sevcik presented the staff report. Council discussed funding and consensus was to utilize the 2016 excess fund balance. Council noted staff would need to work with youth football on a schedule for games and installation of the irrigation system. Mayor Dietz expressed concerns for the lack of maintenance to these fields but understands repairs were on hold due to the community center referendum. He stated Council needs to consider allocating funding to improve this complex. He suggested using the excess funds in reserves. Moved by Councilmember Olsen and seconded by Councilmember Wagner to install a new irrigation system and drill a new 6 inch well in the amount of $119,382.35. Motion carried 5-0. 8.3 Election Emergency Plan Ms. Allard presented the staff report. Moved by Councilmember Olsen and seconded by Councilmember Ovall to accept the Election Emergency Plan. Motion carried 5-0. 8.4 Discuss Work Session Items Mr. Portner presented the staff report. Councilmember Wagner stated the Salk School assistant principal contacted her about the process for getting a crosswalk installed at Highland Avenue crossing Jackson Avenue because students cross at this location to access retail businesses. The principal had noted a few close calls with accidents. Councilmember Wagner commented crosswalks throughout the city should be evaluated for efficiencies and asked about options such as lighting. Mr. Portner noted it may be a matter of creating an educational campaign to the students. 9.1 Council Liaison Updates Council provided updates on activities of the various boards and commissions. POMEAEO B1 II ATURE City Council Minutes August 7, 2017 Page 8 Council recessed at 7:42 p.m. in order to go into work session. Council reconvened at 7:46 p.m. 10.1 Proposed Aquaponics Facility Presentation Ms. Othoudt presented the staff report. Akash Haider, Founder and SEO of Stars Hollow — Explained aquaponics and discussed the process for his company, Stars Hollow, start up as outlined in his PowerPoint presentation. Councilmember Wagner questioned if there would be fish odor to the surrounding area. Mr. Haider said no. Councilmember Ovall questioned if project financing has been established. Mr. Haider stated he is working with Vision Bank, Golden Valley, MN. He stated they have 34 produce groups, including grocery stores who want them to start growing. Councilmember Westgaard questioned what infrastructure may be needed by Mr. Haider for his operation. Ms. Othoudt stated none from the city. She stated staff is working on the financing structure but wanted to gauge Council interest in pursuing this project further. She stated financing could be a combination of county, state, and city funding. She stated this is a great idea and is becoming popular around the state. Mayor Dietz stated he liked the employment numbers. Council stated they are willing to pursue the project further as it seems to fit the area and job creation. Councilmember Ovall stated it sounds like a great project but he is concerned with what the city would do with such a large building if the business failed. 10.2 Recreational Programming Mr. Portner presented the staff report. He questioned the city's goals for recreation programming. Mayor Dietz stated recreation programming has grown and he did feel there are areas of duplication. He agreed the city should review programming. He noted participation is down 14% since the guide was discontinued. He questioned what other cities do for programming. Mr. Benoit stated the City of Rogers operates through community education with city support. It was noted the City of Otsego has started some of their own programming. P0111E1 81 NATURE City Council Minutes August 7, 2017 Page 9 Councilmember Wagner expressed concerns with some kids not being able to participate in programming if the city cuts the duplicated ones because community education may not be able to take on more to handle the capacity. She stated this could create other community issues when kids don't have something constructive to do. She stated she agrees with thinking entrepreneurial about what the city can accomplish. Mr. Pormer stated he thinks the city can work together with the school district. He stated the goal is to maximize and enhance what is currently in place. Councilmember Ovall questioned what the city does for outside reviews, networking groups, and 360 reviews. He stated he would like to hear from the parks and recreation department on what they do well at and what needs improvement. He questioned the qualitative analysis and marketing and asked what the data is conveying. He noted community education is a marketing machine and has a good penetrate rate. It was noted community education can promote within the schools, but school district policy does not allow for outside promotions/marketing to students. Councilmember Westgaard stated it is getting more difficult to meet everyone's needs/requests, yet the city and school district are taxing the same group of people. He stated we need to find solutions to work together and not compete, but supplement, which takes coordination and communication. Councilmember Olsen stated it would be impossible to completely eliminate competition but we can try to minimize it. Council consensus is to work with the school district to discuss programming and how we can work together to provide community needs/wants. 10.3 Park Improvement Planning/Funding Mr. Portner presented the staff report. He stated the city should have a replacement schedule to spread costs out more evenly throughout the years and provide the Parks and Recreation Commission and Council with a systematic plan of expectations. He discussed athletic complexes and noted they are a competitive business and teams/tournaments will go to communities with better facilities. He noted when teams come to town and see Elk River facilities; it paints a certain image of the community. He noted the city requires others to pave their parking lots but doesn't pave their own. He stated all the parks facilities require ongoing funding once they are acquired/created and there are timing and funding issues with them. Mr. Pormer discussed the draft replacement plan and stated an investment is needed for park improvements/maintenance because the only current funding source is 45% of liquor store profits. He stated most cities have other funding sources such as a steadily increasing levy. He stated the city has missed 25 years' worth of funding so Elk River residents are currently not ready for this expense. He discussed the overall NATUR City Council Minutes August 7, 2017 Page 10 budget and how it needs different/new sources of funding to operate or the city needs to stop doing certain things. He discussed some funding options with TIF/Tax abatement once districts are decertified. Mr. Portner noted the city needs large amounts of cash to keep operating the park system. He discussed current methodology and it's inequities to various user groups. He asked Council to think about what they want/don't want, how they feel about funding, and about a dedicated funding source. It was noted expected costs, as outlined in the draft replacement plan, are approximately $19 million over 30 years, which equates to about $630,000 per year, and does not include trails or future park buildout as the city grows. Councilmember Westgaard stated this helps put planning needs into perspective. He stated Council needs to make some decisions and noted these numbers don't include the arena, activity center, or the golf course. He questioned if there would be opportunities for sponsorships and advertising and if we are completely leveraging these funding sources. Mr. Portner stated the city doesn't have staff with experience to obtain sponsorships and advertising and currently has a contract with Decklan Group. He stated there is a position being requested in the budget that would provide for some of this type of marketing. He further questioned what someone is willing to pay for sponsorships in Elk River and noted you don't typically see most cities with them and the cities that do, have unique business situations. He noted the Council will have to make a lot of tough decisions, the city can't be all things to all people, and it is okay to cut services. Councilmember Wagner stated the city would be remiss if it didn't look into naming or sponsorship rights. She stated companies want to know the return on their investment. Councilmember Ovall asked if anything prohibits the city from getting endowments and it may be another avenue to consider. 10.4 2018 Budget Ms. Ziemer presented the staff report. Various staff presented their budgets. Mayor Dietz stated he couldn't support a $150,000 increase to the IT budget. Planning Councilmember Ovall stated he has a contact at the MN Dept. of Human Services and they perform contracted HIPPA compliant scanning services. Environmental Councilmember Ovall questioned the need for environmental to review every building permit. He asked if there could be potential improvement in streamlining process to flee up Amanda's time if the city teaches planning and zoning how to t01fRtI BI NATURE City Council Minutes Page 11 August 7, 2017 ----------------------------- review environmental requirements. He suggested setting up risk rates for deterrnirning whether further review is required. Mr. Portner noted previous issues citing the example of a builder getting an incorrect survey because the wetland delineation laws changed, mapping not always being current, and some need for field work. He further stated there are different expectation levels now because Elk River is an MS4 city. He also discussed the site plan review process. Ms. Bednar noted most reviews are quick and it is helpful being on the front end of the application before an applicant gets too far into the process. Council requested an update on Pinewood financials. Mayor Dietz stated the City Council will be going into a closed meeting per MN Statute 13D.05, Subd. 3c to develop or consider offers or counteroffers for the sale of real property of 9950 165th Avenue NW. II. Adjournment There being no further business, Mayor Dietz adjourned the meeting of the Elk River City Council at 10:14 p.m. Q ! URE