4.1. DRAFT MINUTES (2 SETS) 07-16-2018 VA
City of
Elk Meeting of the Elk River City Council
River Held at the Elk River City Hall
Monday, June 18, 2018
Members Present: Mayor Dietz, Councilmembers Olsen, Ovall,Westgaard, and Wagner
Members Absent: None
Staff Present: City Administrator Calvin Portner, City Attorney Peter Beck, Finance
Director Lori Ziemer, Parks and Recreation Director Michael
Hecker, Senior Planner Chris Leeseberg,Arena Manager Rich Czech,
Recreation Manager Steve Benoit, Recreation Coordinator Tim
Dalton, and Executive Secretary/Deputy City Clerk Jessica Miller
I. Call Meeting to Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council
was called to order at 6:01 p.m. by Mayor Dietz.
2. Pledge of Allegiance
The Pledge of Allegiance was recited. .;
3. Consider June 18, 2018, Agenda
Moved by Councilmember Westgaard and sec
Moved by Councilmember
Olsen to approve the June 18, 2018, agenda. Motion carried 5-0.
4. Consider,Consent Agend
Moved by Councilmember Westgaard and seconded by Councilmember
Olsen to approve the following consent agenda:
4.1 Minutes
■ May 30, 2018, Special
■ June 4, 2018, Regular
4.2 Check register, check numbers 106491-106656 as outlined in the staff
report.
4.3 Temporary On-Sale Liquor License to the City of Elk River for Elk
RiverFest,July 7, 2018, with the condition alcohol must be confined to
an area enclosed by a fence with secured, controlled access and limited
to the beer garden and grandstand. Wrist band control is required for
patrons 21 and over.
4.4 Annual Liquor License renewals submitted late as outlined in the staff
report.
4.5 2018 Mineral Excavation Licenses as outlined in the staff report.
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June 18,2018
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4.6 Quit Claim Deed to RP3 LLC conveying remaining interest in the park
dedicated with the plat of Miske Meadows.
4.7 Resolution 18-36 authorizing the transfer from the Municipal Liquor
Fund to the Park Improvement Fund.
4.8 Appoint Deputy Chief of Operations Aaron Surratt to acting fire chief
with a temporary pay adjustment effective June 13, 2018.
4.9 Resolution 18-37 acknowledging a contribution from First National
Bank of Elk River.
4.10A Resolution 18-38 acknowledging contribution from State Farm
Insurance Agent Kevin Gleitz.
4.10B Resolution 18-39 acknowledging contribution from HealthPartners
RiverWay Elk River.
4.10C Resolution 18-40 acknowledging contribution from Elk River Senior
Living.
4.11 Hire Megan Knopik as full-time liquor store clerk effective June 27,
2018.
4.12 Professional Services Agreement 2018-05 for transcription services with
Danielle Faulhaber.
Motion carried 5-0.
S. Open Forum
Senator Mary Kiffineyer provided an update on the Legislative session and
projects. She thanked city staff for participating in meetings and for assisting in the
Corridors of Commerce funding.
The Council thanked Senator Kiffineyer for her hard work.
6.1 Volunteer of the Month
Mayor Dietz presented the June Volunteer of the Month Award to Amanda
Stoltman. Mayor Dietz highlighted some of Ms. Stoltman's accomplishments
including:
■ Reads and visits with hospice patients at Guardian Angels Care Center.
■ Travels to the homes of hospice patients to spend time with them.
■ Serves as a commissioner for Elk River Youth Baseball.
■ Works on fundraiser, concessions, and team registration for Elk River Youth
Baseball.
■ Team manager for youth football, basketball, and baseball teams.
■ Classroom volunteer and carnival committee member at Parker Elementary
School.
■ Part of a mission team that will deliver aid to Haiti.
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June 18,2018
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7.1 Conditional Use Permit: Spectrum Athletic Complex Updates and
Expansions
Mr. Leeseberg presented his staff report.
Mayor Dietz opened the public hearing. There being no one to speak to this issue,
Mayor Dietz closed the public hearing.
Mayor Dietz expressed concerns with the five-year limitation on the Interim Use
Permit. He stated he would hate to see Spectrum spend money on fields if the
Interim Use Permit expires in five years. Mr. Leeseberg explained staff hopes an
ordinance amendment allowing these uses under Conditional Use Permits will be in
place by the end of the year. He noted once the amendment is made, Spectrum can
apply for a Conditional Use Permit which would allow the use to continue until the
authorized use ceases for more than six months.
Mayor Dietz asked if the Interim Use Permit can be renewed if the ordinance
amendment allowing this use as a Conditional Use Permit isn't approved. Mr.
Leeseberg stated Spectrum can apply for an extension when the current Interim Use
Permit expires.
Moved by Councilmember Wagner and seconded by Councilmember Olsen
to approve an Interim Use Permit to Spectrum for athletic complex updates
and expansions with the condition it shall expire on June 30, 2023. Motion
carried 5-0.
7.2A ERX Motorpark: Ordinance Amendment Allowing Conditional Uses
to the XCR Zoning District
Mr. Leeseberg presented his 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 Westgaard and seconded by Councilmember
Olsen to adopt Ordinance 18-09 amending Section 30-1 and Section 30-1027,
XCR Extreme Commercial Recreation. Motion carried 5-0.
7.213 ERX Motorpark: Conditional Use Permit: Allow Off-Road Racing,
Active Recreation and Physical Endurance, Live Entertainment,
Festivals, Research & Development, Conference & Event Center, and
Swap Meets
Mayor Dietz opened the public hearing. There being no one to speak to this issue,
Mayor Dietz continued the public hearing to July 16, 2018.
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Moved by Councilmember Wagner and seconded by Councilmember
Westgaard to continue the public hearing to July 16, 2018. Motion carried 5-0.
7.3 Simple Plat: Katnis Elveru Addition
Mr. Leeseberg presented the staff report.
Mayor Dietz opened the public hearing.
Mary Katnis Elveru,property owner—stated she disagrees with staff s requirement
of a 50-foot right-of-way as she believes it will affect her quality of living by coming
only six inches from her house. She noted she is simply trying to split the land to
give her daughter and son-in-law a lot to build on.
There being no one else to speak,Mayor Dietz closed the public hearing.
Mr. Leeseberg indicated he spoke with the city engineer and staff is requesting the
50-foot right-of-way for future infrastructure needs.Attorney Beck added the 50-
foot right-of-way is consistent with the city's Transportation Plan and with other
approved plats.
Councilmember Westgaard stated he understands the applicant's concerns but is
hesitant about reducing the right-of-way. He explained how 165"'Avenue is
identified in the Transportation Plan as an east-west corridor and obtaining the
appropriate right-of-way later could be a challenge.
Moved by Councilmember Westgaard and seconded by Councilmember
Olsen to adopt Resolution 18-41 approving final plat of Katnis Elveru Addition
with the following conditions:
1. Surface Water Management Fee shall be paid for one (1) lot at the rate
applicable at the time the final plat is released for recording.
2. Park Dedication shall be paid for one (1) dwelling unit at the rate
applicable when the subdivision is released for recording.
3. Staff approval of updated plat after comments regarding wetland
delineation have been incorporated.
4. Any item or condition found indicating the site is likely to yield
information important to pre-history or history shall immediately be
reported to the city. Further, the city reserves the right to stop work
authorized in its approval until the site is appropriately investigated and
work is authorized.
Motion carried 5-0.
8.1 Athletic Facilities Master Plans
Mr. Hecker presented his staff report.
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Mayor Dietz stated he spoke to the school district superintendent about the city
possibly purchasing Hales Field. He stated the school may be interested in partnering
with the city but is not interested in selling the field.
Councilmember Ovall indicated parking is an issue at the Oak Knoll Athletic
Complex. Mr. Portner noted the school district is in the process of master planning
and they may be looking at adding parking to the area as well.
Mayor Dietz questioned if franchise fee funding can be used for parking lot
improvements. Mr. Portner stated he will have to review the ordinance language. He
noted the Council has discretion to change the ordinance as they see fit.
Mr. Hecker stated these master plans would be added to the Parks Master Plan as
addendums.
Moved by Councilmember Olsen and seconded by Councilmember Wagner
to approve the Athletic Facilities Master Plans for Dave Anderson Athletic
Complex (DAAC), Oak Knoll Athletic Complex (OKAC), and the Youth
Athletic Complex (YAC). Motion carried 5-0.
The Council recessed at 6:54 p.m. in order to go in to work session. The meeting
reconvened at 7:02 p.m.
9.1 2019 Budget
Ms. Ziemer presented the staff report.
The Council discussed the 2019 budget process.
Ms. Ziemer indicated she would like to schedule two budget dedicated work sessions
rather than discussing after regular Council meetings. Tentative dates were
discussed. The Council scheduled special budget work sessions for Monday,July 23
and Monday,August 13 at 4 p.m.
9.2 Ballard*King Financial Analysis
Mr. Czech presented the staff report.
The Council reviewed the Ballard*King Financial Analysis Report. Mr. Portner
explained the figures included in the report are conservative and revenue that cannot
be counted on or things we don't have a good handle on were not included.
Councilmember Ovall indicated he didn't believe we are comparing apples to apples
without including operational expenses for the Senior Activity Center and Lions Park
in the multipurpose and arena proposals.
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Mr. Portner stated staff can pull the budget figures for the Senior Activity Center and
Lions Park and add to the arena proposal and add the activity center revenues to the
multipurpose proposal. He noted the goal will be to reduce expenses and increase
revenue no matter which option is selected.
Councilmember Wagner questioned if the Arena Commission and staff are
comfortable with this report. Mr. Portner indicated the report has been reviewed by
staff and the commission and after a few minor questions,they agree with the report.
9.3 Parks and Recreation Commission Park and Trail Project Priorities
Mr. Hecker presented the staff report. The Council discussed the priority list as
presented by the Parks and Recreation Commission. Parks and Recreation
Commission Chair Anderson was present to answer questions.
Mayor Dietz questioned if the franchise fee can be used for the parking lot.
Councilmember Wagner indicated she believes upgrading Orono Park will have a
huge impact on the community as a whole because it has the potential to serve the
entire community with several amenities. Mayor Dietz agreed some parks can be
done in phases but Orono would be better finished all at once since the park appeals
to all ages.
Councilmember Olsen noted the parking lot and trails at Orono should be a top
priority.
Mr. Hecker indicated costs will be defined and brought back for Council to decide
which projects they wish to include.
Mayor Dietz indicated lights at the Youth Athletic Complex (YAC) are a top priority
for him. He is also interested in working with the school district to make Hales Field
a signature ballfield as he believes it is an excellent location for a field and
compliments Oak Knoll field.
Councilmember Olsen liked the idea of partnering more with the school district.
Parks and Recreation Commission Chair Dave Anderson noted the commission
would like to see the Orono Park Master Plan fully completed whereas only top
priorities were selected from other parks.
Mayor Dietz asked the Council to prioritize the list with the understanding items will
be completed as funding allows. It was noted the list may be bigger than funding
allows so further prioritization may be required.
Council consensus was for the following priority list:
1. Complete Orono Park Master Plan.
2. Restrooms at the existing YAC.
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3. Lighting at Hales Field to make signature ballfield.
4. Multipurpose field expansion (3 fields) at YAC in lieu of lights.
5. Additional field lighting.
6. Paved parking.
7. Playground at YAC.
Councilmember Westgaard believes current fields should be updated before adding
playgrounds and believes paving should be included. Mr. Portner stated staff will
work paving plans in to existing plans.
Councilmember Ovall is not sure how he feels about using franchise fee money for
parking lot improvements as he does not want to deplete the funding. Mr. Portner
stated staff will review the plans and see if it can work. He added there may be other
funding options.
Council consensus was to include the four trails as listed in the priority list. The
Council asked for the trails to be left on the list without expense estimates until
actual costs are estimated.
It was noted this item will come back at the July 2 meeting once estimated costs are
available.
Mayor Dietz asked how the Council feels about including$1 million for Lake Orono
dredging. The Council was ok with considering the funding.
9.4 Recreation Facilities Discussion
Mr. Portner presented the staff report.
Parks and Recreation Commission Chair Anderson stated the Parks and Recreation
Commission voted 6-1 to recommend option 2. He explained the commission
discussed this at length in an interest to make the project as inclusive as possible for
all demographics balancing sports, seniors, splash pad, etc.
Mayor Dietz distributed a handout outlining his options. He stated he believes the
only real difference between option 1 and 2 is the field house and he is having a
difficult time with the $10 million price tag for adding a field house.
Councilmember Westgaard indicated he would like to stay below$35 million and he
feels option 2,including the trails,will be within that number. He noted he feels like
the Council has one chance to do this project correctly and he would like to see a
multipurpose facility constructed.
Councilmember Wagner understands being cognizant to the taxpayers but feels we
will regret not going in to it with the bigger picture. She stated she's heard from
many residents in the last few months that they would like to see the Council plan
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bigger and not just do the smallest, cheapest project. She keeps hearing residents are
willing to invest in a project as long as they know exactly what they are investing in.
Councilmember Ovall indicated the project has morphed since 2016 and he has
wrestled with the amount but it appears support for using the sales tax increase to
fund the project is overwhelming. He explained the economic impact won't be the
same for everyone so a number between$27 and $35 million may not turn people
off to the project. He added there will be economic impacts with bringing in
additional revenue. He stated he has also heard from residents they would like the
Council to focus on long-term needs rather than just maintaining what we have.
Councilmember Olsen explained he believes change is tough for some people but
towns that don't change are dying out and he would like to see Elk River compete
with neighboring communities who are building facilities. He added he would like to
see some money spent on updating Lions Park.
Mayor Dietz stated he reached out to other mayor's regarding field houses and
bubbles and was told having a joint agreement with the school district is the only
way it works. Mr. Portner indicated he can obtain figures from the City of Plymouth.
Councilmember Wagner questioned what happens if the sales tax option fails. She
stated her plan B would be the $17 million option to fix the arena.
Councilmember Ovall stated he sees the city having to spend closer to $20 million if
the sales tax option fails as the activity center and Lions Park will still need to be
maintained.
The Council stated this discussion will be resumed at the July 2 meeting when
estimated costs are available. Councilmember Ovall noted he would like the
revenue/expenses/operating costs for the activity center that were not included in
the Ballard*King Study.
10. Adjournment
There being no further business,Mayor Dietz adjourned the meeting of the Elk
River City Council at 8:56 p.m.
Minutes prepared by Jessica Miller.
John J. Dietz,Mayor
Tina Allard, City Clerk
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VA
City of
Elk Meeting of the Elk River City Council
River Held at the Elk River City Hall
Monday, July 2, 2018
Members Present: Mayor Dietz, Councilmembers Olsen, Ovall,Westgaard, and Wagner
Members Absent: None
Staff Present: City Administrator Calvin Portner, Planning Manager Zack Carlton,
and City Clerk Tina Allard
I. Call Meeting to Order 4&1
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.
3. Consider July 2, 2018, Agent.
Moved by Councilmember Wagner and seconded by Councilmember Ovall to
approve the July 2, 2018, agenda. Motion carried 5-0.
4. Consider Consent Agenda Ae ...
Moved by Councilmember Ovall and seconded by Councilmember Westgaard
o approve the following consent agenda:
4.1 Check register, check numbers 9941-9943 and 106657-106828 as
outlined in the staff report.
4.2 Temporary On-Sale Liquor License to Church of St. Andrew for
September 16, 2018 with condition alcohol must be confined to an area
enclosed by a fence with secured, controlled access and age
verification is required.
4.3 Set Canvassing Board meetings for primary election for Friday, August
17, 2018 at 8:00 a.m. and general election for Friday, November 9, 2018,
at 8:00 a.m.
4.4 Resolution 18-42 appointing election judges for the 2018 elections.
Motion carried 5-0.
S. Open Forum
No one appeared for Open Forum.
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6. Presentations, Awards, and Recognition
There were no items.
7. Public Hearings
There were no items.
8.1 Discuss Work Session Items
Mr. Portner presented the staff report.
9.1 Council Liaison Updates
Council provided updated on the activities of the various boards and commissions.
Library Board
■ Budget to be discussed at next meeting.
Heritage Preservation Commission
■ No update.
Parks and Recreation
■ Councilmember Olsen commended the work of the commission.
Planning Commission
■ Six items will be coming forward to Council at a future meeting.
Elk River Municipal Utilities
■ Grace period included on billing.
■ Electric/water sales up.
■ Minnesota Municipal Power Agency update.
Energy City
■ Germany trip update.
■ Recommend sharing Energy City updates regularly.
Chamber Government Relations Committee working on a business development
survey. A Cyber security and Region 7W update were also provided.
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Council recessed at 6:42 p.m. in order to go into work session. Council reconvened
at 6:46 p.m.
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10.1 Zoning to Reduce Lot Sizes
Mr. Leeseberg presented the staff report. He reviewed the developable land outside
the Urban Service Area,potential lot numbers when manipulating lot sizes, the
Comprehensive Plan,population estimates,and transportation. He discussed lot
sizes and the need for land for a primary and secondary septic system.
Councilmember Ovall questioned if there is anything allowed with a 2.5 acre lot that
couldn't be done on a 1.5 acre lot.
Mr. Leeseberg noted yes and cited some examples such as smaller accessory
structures and the disallowance of chickens.
Mayor Dietz expressed concerns with changing everything located north of County
Road 33 to allow 1.5 acre lots and questioned if Mr. Christianson's request could be
the only allowance. He suggested looking at the whole 2.5 acre area and evaluate if
there are certain sections that lend itself as a better fit to be 1.5 acre lots versus the
2.5 acres. He stated he is not in favor of changing everything north of County Road
33 from 2.5 to 1.5 acres. He felt Mr. Christian's request was unique. He stated he
prefers the 1.5 acre lot size, not the 1 acre option requested.
He stated staff would like to avoid utilizing the Planned Unit Development process
for this type of development.
Councilmember Wagner stated she doesn't feel the city needs to change the entire
area north of County Road 33 to the 1.5 acres. She stated wetlands can hinder
development on some property. She suggested looking at certain wetland areas and
rezone them to allow for the smaller lot sizes, noting it would take some work to
figure out.
Mayor Dietz questioned if Council could review this on a case by case basis as each
development comes forward.
Mr. Portner stated Council would be creating spot zoning and possibly other issues
but there may be alternative solutions based on other zoning criteria.
Mr. Leeseberg stated Council would need to be careful with the spot zoning and
would need criteria developed in order to say no to other future developments.
Mayor Dietz questioned if it would take some work for staff to review the whole
area to determine what would be best for 1.5 acres versus 2.5 acres.
Mr. Leeseberg stated it would be a significant amount of work and tine to perform
the level of detail requested.
Councilmember Ovall asked if there is any guidance or other community examples
regarding cluster developments and community septic systems.
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Bill Christianson stated he was involved with a project that allowed one acre lots
with some restrictions and they were required to maintain primary and secondary
septic locations. He stated he understands the idea of a 1.5 acre lot versus a 1 acre lot
due to septic concerns. He discussed the market noting 2.5 acres lots gets to be too
much for families as the kids grow up and out. He stated it's not the idea of more
lots but of creating a nicer development for the empty nester or retiree. He stated he
has done cluster plats on .5 acre lots,but expressed concerns with some common
community septic issues such as who will pay costs if a failure. He stated there is a
need in the market for some type of balance between the .5 acre size and the 2 acre
lot size.
Councilmember Westgaard questioned if the cluster development is an option under
the R1a zoning district.
Mr. Leeseberg stated it is available but today it would be difficult to obtain
agreement on the development due to complex, shared septic issues inherent with
these types of developments.
Council questioned the Planned Unit Development (PUD) option.
Mr. Leeseberg stated staff is working on fazing them out mainly because they are not
codified and they can be difficult with enforcement/follow-up.
Councilmember Westgaard stated he wasn't inclined to change all the R1c zoning
north of County Road 33 to 1.5 acres but believes there are certain parcels with
hindrances he would be open to allowing some smaller lots and finding the
mechanism to be able to do it and felt the PUD was the best solution.
Mayor Dietz suggested the applicant apply for a PUD this year because it's going to
take staff some time to sort out lot sizes for land north of County Road 33.
Mr. Leeseberg asked for more direction on what the determination is for a 1.5 acre
lot noting geographical issues.
Mayor Dietz suggested working with the city attorney on this determination,noting
all Council want to work in the 1.5 acre option but is not sure how to do it.
Councilmember Westgard stated the Council wants to maintain some inventory of
2.5 acre lots and how can this be accomplished such as do we keep the more rural
areas furthest from urban service area.
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10.2 Athletic Complex and Recreation Project Financing
10.3 Direct Staff to Prepare Local Option Sales Tax Referendum
Resolution
Mayor Dietz stated tonight Council will be discussing what projects will go on the
local sales tax referendum. He requested this item then come back to Council on July
16 for a formal vote with ballot language determined at the special meeting
scheduled July 23.
Councilmember Wagner noted costs reviewed at a previous Council meeting for
high priority trail connections only included actual trail construction costs and not
right-of-way acquisition costs. She requested this information be spelled our more
clearly for future projects.
Mr. Sevcik noted it would be a challenge to know or determine right-of-way costs.
He noted the trails may not all be completed at once and sometimes can be based on
future available opportunities, such as part of a county project.
Councilmember Ovall noted he requested an apples to apples breakdown of the
options because the Ballard*King analysis was incorrect.
Mr. Portner stated an apples to apples comparison can't be done because no other
community has a field house that compares to the current one in the architectural
plans. He stated the one most similar is with the City of Andover. He discussed the
many differences and noted Elk River's project is a 30,000 square foot building while
Andover's is 20,000 square foot. He stated Andover's revenue in 2017 was $231,436,
which is consistent with what Ballard*King projected for Elk River. He discussed the
many differences between Elk River and the City of Plymouth. He stated Plymouth's
revenue was $413,400.
Councilmember Ovall stated he was talking about the economies of scale and
efficiencies you would have if the building was a community center. He questioned if
this option was off the table. He stated Council had talked about the community
center option and, for him,what wasn't presented in that proposal was an apples to
apples comparison of the efficiencies you would gain by having all the staffing and
programming done under one roof because there wouldn't be the expense of
running separate facilities.
Mr. Portner stated the single facility in the Ballard*King analysis did include the
percentage of revenue over expense.
Mayor Dietz stated the analysis projected a negative number.
Councilmember Ovall stated it wasn't an apples to apples comparison because we
did not have the expenses for the senior center.
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Mayor Dietz stated he was under the impression that Council was moving forward
with either Option 1 or Option 2 for the facility diagrams and not the community
center. Councilmember Olsen concurred.
Council discussed their thoughts on the distribution of funds and reached consensus
on the following two options to be considered at the July 16 meeting.
Option 1
$26 million Recreational Facility (arena building)
$1.5 million Senior Center Facility
$1 million Lake Orono Dredging
$2 million Trails
$2.5 million Lake Orono Park
$2 million Youth Athletic Complex
$35 million TOTAL
Option 2
$16 million Recreational Facility (arena building)
$1.5 million Senior Center Facility
$1 million Lake Orono Dredging
$2 million Trails
$2.5 million Lake Orono Park
$2 million Youth Athletic Complex
$25 million TOTAL
Council noted a discussion needs to occur about a fallback plan in case the sales tax
referendum fails.
II. Adjournment
There being no further business,Mayor Dietz adjourned the meeting of the Elk
River City Council at 8:16 p.m.
John J. Dietz,Mayor
Tina Allard, City Clerk
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