4.1. DRAFT MINUTES (2 SETS) 08-06-2018 VA
City of
Elk Meeting of the Elk River City Council
River Held at the Elk River City Hall
Monday, July 16, 2018
Members Present: Mayor Dietz, Councilmembers Olsen, Ovall,Westgaard, and Wagner
Members Absent: None
Staff Present: City Administrator Calvin Portner, City Attorney Peter Beck, Senior
Communications Coordinator Kaylin Clement, Planning Manager
Zack Carlton, Finance Director Lori Ziemer, Police Chief Ron
Nierenhausen, Recreation Coordinator Tim Dalton, Farmer's
Market/Event Coordinator Karen Wingard, Parks and Recreation
Director Michael Hecker, Senior Planner Chris Leeseberg, Planning
Intern Ben Picone, Recreation Manager Steve Benoit, Economic
Development Director Amanda Othoudt, Recreation Administrative
Coordinator Tonya Love, Arena Manager Rich Czech, ERMU
Finance and Office Manager Theresa Slominski and Records
Specialist Katie Porath
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. a
3. *moved
Consider July 16, 2018 Agenda
by Councilmember Westgaard and seconded by Councilmember Ovall
to approve the July 16, 2018, agenda with Item 4.5 pulled from consent for
separate consideration. Motion carried 5-0.
4. Consider Consent Agenda
Moved by Councilmember Westgaard and seconded by Councilmember
Olsen to approve the following consent agenda:
4.1 June 18, 2018, Regular Minutes
July 2, 2018, Regular Minutes
4.2 Check register, check numbers 9944 and 106829-107020 as outlined in
the staff report.
4.3 Compensation Plan Update
4.4 Flashing Crosswalk Installation on Twin Lakes Road
4.5 Removed
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4.6 Resolution 18-43 approving an amendment to Tax Abatement
Agreement for Mowry Properties, Inc
4.7 Deer Herd Management Plan
4.8 Resolution 18-44 granting final plat approval for Riverplace Second
Addition Case No. P 18-07
Motion carried 5-0.
Councilmember Ovall abstained due to potential conflict of interest.
4.5 Moved by Councilmember Westgaard and seconded by Councilmember
Olsen to adopt Resolution 18-45 approving loan agreement for Orluck
Industries Project. Motion carried 4-0. Ovall abstained.
S. Open Forum
Mary Ostmoe, 18257 Trott Brook Pkwy NW, asked the Council to consider adding
a stop sign to the corner of 182"d Ave NW or 183Td Ave NW. She stated Trott Brook
Park has a great deal of pedestrian and vehicle traffic and a stop sign may help to
slow down cars along Trott Brook Pkwy. Mayor Dietz instructed the city engineer to
look into the possibility and bring it back to the Council at the August 6, 2018,
Council Meeting.
Jack Lorge, 19490 Lowell St,wanted more clarity if the $1.5 million for senior
center improvements in the proposed referendum question would be used to fix the
current Activity Center or for a new location. Mayor Dietz shared the decision had
not been made yet and would unlikely be made prior to the General Election in
November.
Pat Briggs, 633 Upland Ave, expressed concerns and questions regarding the status
of his building permit for the Jackson Hills project at 725 6"'St. Due to the
complexity of his concerns,Mayor Dietz recommended Mr. Briggs submit them in
writing to the city administrator by the close of the following business day and they
could be addressed at the July 23, 2018, Special City Council Meeting.
6.1 Volunteer of the Month
Mayor Dietz introduced and presented a plaque to Jim Acers as the Volunteer of the
Month recipient for July. He noted many accomplishments including:
■ Active member of Elk River Lutheran Church involved in music ministry,
stewardship, finance and facilities committees, and visiting of shut-ins
■ Delivers Meals on Wheels
■ Serves on Central Minnesota Boy Scout Council
■ Organizes annual Elk River Boy Scout breakfast
■ Visits several Boy Scout camps in the area
■ Member of the U of M Alumni Band
■ Member of the Elk River German Band
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6.2 Minnesota Recreation and Park Association (MRPA) Award of
Excellence -William H. Houlton Conservation Area
Mr. Hecker presented the staff report.
Alyssa Fram, a representative from MRPA,presented Mayor Dietz and Mr. Hecker
with the 2017 MRPA Award of Excellence for the William H. Houlton Conservation
Area.
6.3 Communications Report
Ms. Clement presented the staff report. She reviewed statistics and popular search
terms from the city's social media platforms.
6.4 Elk RiverFest Update
Mr. Hecker presented the staff report.
Mayor Dietz thanked staff for their work in organizing the event and has heard
mostly positive comments from attendees. He recommended staff review the event
and come back to the Council in the fall or winter with recommendations to make it
better next year.
7.1 Conditional Use Permit: Iglesia Luz de Cristo, Institutional Use, 633
Upland Avenue
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.
Mayor Dietz asked if parking may be an issue.
Mr. Carlton stated that there were 60-80 people pro)ected to attend but the parking
lot could allow for approximately 120 attendees.
Moved by Councilmember Ovall and seconded by Councilmember Wagner to
approve Conditional Use Permit CU 18-12 to operate an Institutional Use
(church) at 633 Upland Ave NW with the following condition:
1. The Building Official and Fire Marshal must inspect the property for
existing life/safety concerns. Any identified concerns must be
addressed prior to recording the CUP.
Motion carried 5-0.
7.2 Easement Vacation: Jake Lundsten for 20' Drainage and Utility
Easement, 21 101 Olson Circle
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Mr. Picone 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 Ovall asked if the previous easement pipe would cause any issues.
Mr. Carlton responded that the pipe from the unused easement is sealed on both
ends with concrete and is no longer active.
Moved by Councilmember Westgaard and seconded by Councilmember
Olsen to adopt Resolution 18-46 to vacate a portion of a drainage and utility
easement. Motion carried 5-0.
7.3 Conditional Use Permit: Digital Sign for the First National Bank of Elk
River, 19157 Freeport St.
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.
Mayor Dietz asked if First National Bank would only be allowed to advertise their
own business on the sign.Mr. Leeseberg confirmed they would only be allowed to
use the sign for their business.
Moved by Councilmember Olsen and seconded by Councilmember
Westgaard to approve Conditional Use Permit CU 18-07: Digital Sign for the
First National Bank of Elk River— 19157 Freeport Street in accordance with
Section 30-654. Motion carried 5-0.
7.4A ERX Motorpark- 21591 U.S. Hwy. 169 NW-Zone Change from
Commercial Reserve Transition (CRT) to XCR
Mr. Leeseberg presented the staff report.
Mayor Dietz opened the public hearing.
Mike Swanson, 21310 Brook Rd NW,is not as concerned about noise as he is with
future expansion taking over his neighborhood and decreasing property values. Mr.
Swanson stated he was concerned with ERX purchasing properties as they become
available in order to continue to expand.
Mayor Dietz clarified with City Attorney Beck that,if ERX wished to build
additional racetracks, they would need additional Council approval.
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Jake Lundsten, 21101 Olson Circle NW, felt the noise level of ERX was excessive,
especially when bands played until 11:00 p.m. He wondered if anything could be
done to reduce noise travel.
Mayor Dietz closed the public hearing.
Moved by Councilmember Westgaard and seconded by Councilmember
Olsen to adopt Ordinance 18-10 amending the City of Elk River Zoning Map
to Rezone Commercial Reserve Transition (CRT) to Extreme Commercial
Recreation (XCR) Case No. ZC 18-02. Motion carried 5-0.
7.413 ERX Motorpark— 21591 U.S. Hwy 169 NW— Conditional Use Permit
allowing Off-Road Racing, Active Recreation and Physical Endurance,
Live Entertainment, Festivals, Research and Development,
Conference and Event Center, and Swap Meets
Mr. Leeseberg presented the staff report.
Mayor Dietz opened the public hearing.
Heidi Goodin from ERX Motorpark addressed the Council asking for the proposed
hours of operation be changed to stay open on Thursdays until 10:00 p.m.
Lindsey Swanson, 21310 Brook Rd NW, clarified she is not opposing ERX
wanting to race on their property. Her concern is with the safety of the horses she
takes care of at Swanson Stables. She feels there may be danger to animals which are
under her care if people who are camping or drinking wander on to her property.
Mayor Dietz asked Ms. Goodin to address security concerns.
Ms. Goodin stated ERX had increased security from two to five overnight security
guards and that two Elk River police officers would also be on site during events.
She also invited Ms. Swanson to ERX for a site visit and said the distance from ERX
to the Swanson's property would be a lengthy hike for someone to undertake.
Norm Lemmon, 11216 Brook Rd, expressed concern with the noise levels from
ERX during events. He believed allowing up to 15 events in a year was too much.
Mr. Swanson suggested the speakers for the stage face toward the highway or dump
rather than toward residential areas. He also pointed out sound travels farther in the
winter.
Ms. Goodin addressed the stage placement. If the stage faces Highway 169 there is a
concern the flashing lights may slow down cars. The current stage location also takes
advantage of a natural elevation for seating.
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Mr. Lemmon stated the event during the past weekend had a very loud
spokesperson.
Mr. Lundsten agreed he can clearly hear the bands from his property and it would be
nice to figure out a way to dampen the sound.
Mayor Dietz asked Ms. Goodin how many concerts ERX has per year.
Ms. Goodin said there are typically 1-2 concerts per year.
Mayor Dietz closed the public hearing.
Mayor Dietz attended the event at ERX on Saturday. He agreed the loudspeaker
seemed especially loud;however, overall, the event was well organized. He took a
tour of the newly added 80 acres on the property and it did seem like there was
substantial foliage which may act as a natural sound barrier. He agreed with the
change in hours to stay open until 10:00 p.m. on Thursdays.
Councilmember Wagner also went out to ERX for a tour. She noted the amount of
ERX event participants eating and shopping locally and believes the facility has a
positive economic impact.
Mr. Leeseberg mentioned one of the Planning Commissioners was strongly opposed
with the speakers facing east.
Councilmember Westgaard expressed concern that, as ERX continues to expand,
they will want more events. He questioned whether there should be a buffer between
residents as more events are added. In the past, dirt bike racing was noted on the
additional 80 acres and came near to neighboring fences. He understands ERX needs
to exist and isn't aware of people having wandered off the property in the time that
ERX had been operating. There should to be a way for ERX and their neighbors to
coexist.
Councilmember Westgaard has received citizen complaints about road closures in
the event area,particularly in the Ridges of Rice Lake. He wondered if these road
closures were city or state dictated.
Mr. Leeseberg stated road closures were determined through the Minnesota
Department of Transportation (MnDOT).
Chief Nierenhausen addressed the rationale behind the road closures.
Mayor Dietz asked how many events per year required road closure.
Ms. Goodin estimates these road closures are necessary 4-5 times per year and
require a formal written plan be submitted to MnDOT.
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Councilmember Ovall agreed the 10:00 p.m. closure on Thursdays was fine with
him. He found the tour informative and felt the ERX ownership was attempting to
be accommodating.
Councilmember Wagner wants to be clear on the newly added 13"' condition. She
wondered if it covered all noise,including concerts and questioned how should
concerts reduce their noise after 10:00 p.m.
Mr. Swanson asked if the sound levels can be tested at a later date if the speakers are
pointing east and the volume seems excessive.
Councilmember Wagner suggested 1-2 total concerts per year go to 11:00 p.m.
City Attorney Beck did not recommend exceeding the state noise standard.
Councilmember Wagner contemplated if the Council should implement the 13"'
condition now or revisit it later.
Mr. Leeseberg pointed out that live entertainment is a newly allowed event at ERX.
City Attorney Beck said conditions cannot be added to a Conditional Use Permit
(CUP) after it has been passed. However,if a condition went in and the city saw a
problem,it could be revisited to adjust and strike a balance.
Councilmember Wagner asked if it was reasonable for ERX to apply for a special
event permit when they wanted a concert to go past the time allowed in the MPCA
Guide to Noise Control.
City Attorney Beck and Councilmember Westgaard recommended leaving as staff
proposed. If challenges arise the CUP can be revisited in the future and they could
still apply for Special Event permits.
Mr. Carlton pointed out that approving the condition as written would give the
Council a noise standard to come back to in the future should the tested noise levels
be exceeded.
Moved by Councilmember Westgaard and seconded by Councilmember
Olsen to approve Conditional Use Permit CU 18-10 with the following
conditions to satisfy the standards set forth in Section 30-654:
1. No more than five Special Event Recreational Camping events per
year can occur on the aggregate properties that are encompassed with
this Conditional Use Permit request.
2. The hours of operation shall be:
a. Sunday through Wednesday 7:00 a.m. —9:00 p.m.
b. Thursday 7:00 a.m. —10:00 p.m.
c. Friday and Saturday 7:00 a.m. —11: 00 p.m.
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d. Five (5) exceptions per year, by special event permit, will be granted
for extended hours to midnight
3. A containment system plan, for along Highway 169, shall be submitted
by August 26, 2018, and the system shall be installed by December 1,
2018. If a containment system cannot be in place by this date, no
events shall occur on the track labeled "Regional Track" until one is
in place.
4. No motorized events shall occur on the southern 80 acres (75- 110-
4400) within 1, 000 feet of any residence, livestock shelter, and/-or
arena that were erected prior to the date of the recording of this
Conditional Use Permit and must be setback 50 feet from the east,
south, and west property lines.
5. Camping areas shall be as identified on the site plan dated 6/13/2018
and shall not be closer than 50 feet to any property line.
6. An amendment to this Conditional Use Permit will be required for
future expansions/-additions not shown on the site plan dated
6/13/2018.
7. The Safety and Crisis Communication Plan be updated to state: Two
(2) Elk River police officers shall be required per every 2,000 attendees.
8. Staff approval of the Safety and Crisis Communication Plan.
a. This shall be reviewed yearly.
9. Staff approval of an on- site traffic/ distribution plan that
demonstrates:
a. Logical on-site distribution of participants, spectators, and public
safety.
b. Adequate on-site stacking for admission and egress.
c. Adequate off-site stacking for access and egress without impacting
U.S. Highway 169.
10. The Aggregate Commercial 4th Addition plat shall be recorded.
11. The Aggregate Commercial 5th Addition plat shall be recorded.
12. The approved Conditional Use Permit (CU 16--30) will become void.
13. Noise generated on the property via the Conditional Use Permit shall
comply with those outlined in the MPCA Guide to Noise Control.
Motion carried 5-0.
7.5 Zone Change: C2 (Office District) to R I c (Single Family Residential
and DD (Downtown District)
Mr. Picone presented the staff report.
Mayor Dietz left the Council chambers at 8:20 p.m.
Mayor Dietz returned to the Council chambers at 8:22 p.m.
Councilmember Olsen left the Council chambers at 8:23 p.m.
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Mayor Dietz opened the public hearing. There being no one to speak to this issue,
Mayor Dietz closed the public hearing.
Moved by Councilmember Ovall and seconded by Councilmember Wagner to
adopt Ordinance 18-11 amending the City of Elk River Zoning Map to Rezone
certain properties from C-2 (Office Commercial) to R-1c (Single-Family
Residential) and DD (Downtown District) Case No. ZC 18-02. Motion carried
4-0. Councilmember Olsen was outside the Council Chambers.
7.6 Ordinance Amendment: Wetland Setbacks, City of Elk River
Mr. Carlton presented the staff report.
Councilmember Olsen returned to the Council Chambers at 8:26 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 Westgaard and seconded by Councilmember
Olsen to adopt Ordinance 18-12 amending Chapter, 30-1852, Performance
Standards, of the City of Elk River, Minnesota, City Code. Motion passed 5-0.
8.1 Resolution: Issuance of$10,000,000 Electric Revenue Bonds, Series
2018A
Ms. Ziemer presented the staff report.
Theresa Slominski from ERMU was present to answer any questions.
Mayor Dietz asked if the city was backing any of these bonds and if taxpayers would
be responsible at all.
Ms. Ziemer responded that residents would not be responsible to repay.
City Attorney Beck stated the city is the only entity with the authority to issue bonds.
Moved by Councilmember Wagner and seconded by Councilmember Ovall to
adopt Resolution 18-47 approving the issuance of Electrical Revenue Bonds,
and authorizing certain other actions to be taken by the Elk River Municipal
Utilities Commission with respect to the issuance of Electric Revenue Bonds,
Series 2018A. Motion carried 5-0.
8.2 2019 Benefit Level for Elk River Fire Relief
Ms. Ziemer presented the staff report.
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Mayor Dietz explained that the fund was receiving a significant return on
investment. Currently,if every fire fighter retired tomorrow there would still be
money in the account. He believes it is a good idea to reward fire fighters and the
increase may act as an incentive for fire fighters to stay the 20 years.
Moved by Councilmember Wagner and seconded by Councilmember Olsen
to approve an increase for the Elk River Fire Relief Association (ERFRA)
benefit level to $7,120 per year of service effective January 1, 2019. Motion
carried 5-0.
Councilmember Ovall made a motion for a short recess.
Council recessed at 8:37 p.m.
Council reconvened at 8:43 p.m.
8.3 Select Recreation Facility Option for the Local Sales Tax Referendum
Mayor Dietz asked each Councilmember to choose one of the two options, Option 1
a $35,000,000 referendum and Option 2 a $25,000,000 referendum,and give a reason
behind their choice.
Councilmember Olsen chose Option 1 because it satisfies the conditions of Lion
John Weicht Park as well as the rink and a repurposed the activity space. It is a long-
term solution.
Councilmember Westgaard chose Option 1 because it covers a broader base of
community interests. It offers a multipurpose recreational facility and is a better
project going forward in long-term planning for the city.
Councilmember Ovall stated concerns that there were some missed opportunities
which he hopes do not result in a failed referendum. He hopes there are no issues
with the Lions' support. He wishes an economic impact study had been done and
feels the currently proposed plan is landlocked for future expansion. He felt a
community survey would have been beneficial after additional projects had been
added to gauge resident support. Having too few fields and rinks can wear things out
prematurely if they are overused and the proposed plan includes a solution for future
maintenance. Councilmember Ovall supported Option 1.
Councilmember Wagner was happy all five Council members seemed to be on the
same page and supported Option 1 taking into account future growth within the city.
Mayor Dietz stated he had previously proposed cheaper options and would have like
to have seen a community survey. However, doing a community survey now would
delay the projects another two years. He reviewed each item on the proposed project
and how it would benefit all residents. The 0.5% sales tax would equate to a 50 cent
tax per $100 spent. If the referendum does not pass, the money to make the repairs
would have to be acquired through property taxes. According to a study from the
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University of MN Extension Service, $19 million of the total cost would be paid
through the sales tax from Elk River residents and$16 million would be paid by
people from other communities who shop in Elk River. Most of the items on the
proposed referendum list deal with quality of life issues and is what people use to
decide where to live and work. He also wished to clarify it was not a permanent sales
tax; once the total amount has been collected,the sales tax will end. With this in
mind,he chose Option 1 as it seemed the best opportunity to acquire the necessary
money at the least impact to residents. He is hoping clear communication can be
provided to the voters early in September and,if anyone has doubts or questions,
they will have the time to get answers prior to the general election. He sees this
project as a tremendous benefit to all citizens.
8.4 Resolution: Local Option Sales Tax Referendum
Moved by Councilmember Westgaard and seconded by Councilmember
Wagner to adopt a resolution relating to imposition of a Local Option Sales
and Use Tax and the issuance of bonds for the purposes of making
$35,000,000 in certain park improvements and recreational facility
improvements. Motion carried 5-0.
Moved by Councilmember Westgaard and seconded by Councilmember
Wagner to adopt Resolution 18-48 relating to the imposition of a Local Option
Sales and Use Tax and issuance of bonds for purposes of certain park
improvements and Recreational Facility Improvements. Motion carried 5-0.
Councilmember Westgaard returned to the Public Forum comments made by Mr.
Lorge and asked the Council if they wanted to define specifically where the $1.5
million appropriated for the senior center improvements would be designated. He
wanted to know the status of the YMCA plans.
Mr. Portner said the next steps included having senior member representatives tour
the YMCA and the YMCA determine what they would have to add and prepare for a
draft agreement.
Mayor Dietz brought up a recent article he read stating many cities are not putting
money into senior specific facilities but integrating the senior citizen group with
other age groups.
Councilmember Olsen agreed seeing different age groups together was a good idea.
Councilmember Wagner had a discussion with Mr. Lorge on "Why do you like the
current facility so much?" His response was he liked the sense of community the
current facility provided. He believed going to the YMCA may segregate the senior
citizens and they would not see their friends as easily.
Councilmember Wagner stated another thing to consider would be people who are
not in the 55+ age group yet but are heading that direction.What type of facility
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would they prefer?Whatever they decide to do,it is important to maintain the sense
of community.
Councilmember Olsen believed a much greater amount of senior citizens used the
YMCA versus the Activity Center. The YMCA is also a draw for others outside the
community.
Mayor Dietz has talked to seniors about two choices, stay at their current facility or
go to the YMCA,but perhaps there is another option to move them into the new
recreational facility once it is built.
Councilmember Westgaard asked if the Council wants to look at the location of the
senior center prior to sending out literature in September.
Councilmember Olsen asked what level of detail they needed to reach before the
referendum.
Councilmember Wagner would like to consider, as a group, the goal of the Senior
Center. She suggested the Council gather their thoughts and questions and return to
the topic at the next meeting.
Mayor Dietz said it would be great if they could reach some sort of decision at the
August meeting.
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Council recessed at 9:21 p.m. in order to go into work session. Council reconvened
at 9:24 p.m.
9.1 Public Works/Community Development Reorganization
Mr. Portner presented the staff report.
Mayor Dietz liked the proposed department reorganization. He asked if eliminating
duties from the fire chief position would decrease the pay.
Mr. Portner said the position was a director-level position and there would be the
same accountability requirements and,therefore,the same pay.
Councilmember Westgaard asked if there was a budget impact to what was
proposed.
Mr. Portner stated not in what was being presented.
Mayor Dietz questioned whether it would have been more difficult to find someone
as multifaceted as the previous fire chief.
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Mr. Portner said it was difficult to know and the city hopes to get a good pool of
candidates for their recently posted fire chief position.
9.2 Chief Cunningham Severance Request
Mr. Portner presented the staff report. He reviewed the organization of the fire
department at the time Chief Cunningham had started working for the City of Elk
River.
Mayor Dietz wondered if Chief Cunningham had approached anyone with the short
staffing issue at the time it was occurring or if he assumed the responsibilities
himself.
Councilmember Ovall questioned why he had not had any conversations regarding
compensation prior to his departure.
City Attorney Beck stated Chief Cunningham's request had been cordial but he has
engaged an attorney. He suggested Council would have to check with employment
law to see if such a request could even be fulfilled.
Councilmember Westgaard was confused on why the subject came up after he had
left employment. He stated exempt employees are expected to step in when needed
and should not be scheduling themselves for the duty officer shifts.
Councilmember Ovall agreed it was strange that it didn't appear to be an issue until
after leaving employment.
Mayor Dietz agreed Chief Cunningham should have talked to the city administrator
after the policy was changed and the Council at the time could have made a decision.
City Attorney Beck stated it was a unique situation but recommended sticking to the
written severance policy.
Mayor Dietz asked the Council to make a decision rather than checking into whether
it is allowed or not. Their opinion would likely not change.
The Council directed City Attorney Beck to prepare a letter for Chief Cunningham's
attorney denying his request.
10. Adjournment
There being no further business,Mayor Dietz adjourned the meeting of the Elk
River City Council at 9:58 p.m.
Minutes prepared by Katie Porath
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John J. Dietz,Mayor
Tina Allard, City Clerk
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City of
Elk Special Meeting of the Elk River City Council
River Held at the Elk River City Hall
Monday, July 23, 2018
Members Present: Mayor Dietz, Councilmembers Olsen, Ovall,Westgaard, and Wagner
Members Absent: None
Staff Present: City Administrator Calvin Portner, Finance Director Lori Ziemer,
Building Official Bob Ruprecht,Economic Development Director
Amanda Othoudt,Human Resources Manager Lauren Wipper,IT
Manager Bob Pearson,Building Maintenance Supervisor Gary Lore,
Parks and Recreation Director Michael Hecker, Recreation Manager
Steve Benoit,Parks/Streets Maintenance Supervisor Tim Sevcik, City
Engineer Justin Femrite, Stormwater Coordinator Brandon Wisner,
Building Official Bob Ruprecht, and City Clerk Tina Allard
I. Call Meeting to Order x 1%0�'
Pursuant to due call and notice thereof, the meeting of the Elk River City Council
was called to order at 4:01 p.m.b Mayor Dietz.
2. Pledge of Allegiance
The Pledge of Allegiance was recited.
3.1 Compensation Plan Follow-up
Mr. Portner presented the staff report.
Moved by Councilmember Olsen and seconded by Councilmember
Westgaard to approve two adjustments to the Compensation Plan:
■ Senior Citizen Programmer position in 4N rather than 3N.
■ Top pay for Administrative Assistant (fire) to be equivalent to prior pay
plan.
Motion carried 5-0.
3.2 Hire Full-Time Liquor Store Clerk
Mr. Portner presented the staff report.
Moved by Councilmember Westgaard and seconded by Councilmember
Olsen to approve the hiring of Nicole Petty as full-time liquor store clerk
effective August 14, 2108. Motion carried 5-0.
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3.3 2019 Budget
Ms. Ziemer presented the staff report.
Councilmember Westgaard stated the total dollar impact of the
assumptions/estimates would be have for future reference.
Various staff reviewed their goals and proposed budgets for 2019.
Administration
Councilmember Ovall noted he had a contact he could share for scanning services.
Human Resources
Council consensus was to evaluate other software solutions for the city
administrator performance evaluation.
Information Technology
Mayor Dietz stated he'd like the capital outlay items paid from 2018 excess funds.
Council recessed at 5:17 pm. and reconvened at 5:37 p.m.
3.4 Jackson Hills, 725 6" Street Development Complaints
Patrick Briggs, Briggs Companies and developer for Jackson Hills,was at the Council
meeting but then left at approximately 5:15 p.m.
Mr. Carlton presented the staff report. He stated because this is a Tax Increment
Financed (TIF) project a development agreement is required prior to beginning
construction. He stated this development agreement required soil corrections prior
to the issuance of the building permit. He further stated the soil corrections were
required to be inspected and certified by ITT,Inc. for the soil reclamation. He
reviewed the timeline of the project as noted in his handout. He stated Mr. Briggs
repeatedly challenged the building permit process. He discussed standard practices
regarding the issuance of permits. He stated after repeated emails and calls from Mr.
Briggs over concerns of bias regarding his project, staff then sent Mr. Briggs plan to
the State Department of Labor and Industry for an independent review. Mr. Carlton
also noted the check written for the building permit did not clear the bank as the
account had been closed. He stated,to date,the city has not received the building
permit fees due from Mr. Briggs.
Councilmember Ovall requested clarification if it was the proposal all along to send
the plans to the state for review based on previous Council action.
Mr. Carlton stated the plan review would have been completed by the city but all
future inspections would be done by an independent party. He stated it was the
threat of going to the state with unspecified complaints about Mr. Ruprecht, from
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Mr. Briggs, that was the catalyst for sending the plans to the state for independent
review.
Councilmember Ovall stated this helps him understand the gap in the timeline.
Mayor Dietz stated Mr. Briggs referenced a statement made to him by Building
Official Bob Ruprecht indicating he could get his permit with a 4-5 week turnaround.
He stated Mr. Briggs is claiming it has taken him over 17 weeks to get his permit.
Mr. Ruprecht stated a typical turnaround time for plan review is 4-5 weeks. He stated
this comment was not referenced specifically to Mr.Briggs project but to typical
projects within the city overall.
Mayor Dietz clarified of Mr. Ruprecht that he never stated to Mr. Briggs everything
was in order in his plans and he would get his permit in 5 weeks.
Mr. Ruprecht stated Mr. Briggs got that understanding from a May 3, 2018, meeting
in which he,Mr. Ruprecht, stated he is done with the plan review and once
everything is ready Mr. Briggs can get his permit Mr. Ruprecht stated where the
translation may have went wrong is he hadn't clarified further there were other
requirements to be met but rather only meant things were done from his end of the
project.
Mayor Dietz questioned if Mr. Ruprecht, at the time,was aware Mr. Briggs applied
for TIF and would need to meet development agreement requirements.
Mr. Ruprecht stated he knew there were other requirements needed but the
developer's agreement, at that time,was going back and forth between staff and Mr.
Briggs and hadn't been executed yet. He stated when Mr. Briggs kept sending emails
about the May 3 meeting; he kept it in a chain of emails that were attached to the
developer's agreement negotiations. In a phone conversation with Mr. Briggs,he told
Mr. Briggs he needs to request the status of the plan review in an email that isn't
attached to the developer's agreement because he didn't'want his response perceived
as though everything was good to go with the development agreement as well.
Mayor Dietz questioned another email sent in April by the economic development
director stating once the developer's agreement is signed Mr. Briggs can get his
building permit within 24 hours.
Ms. Othoudt stated she was referring to the building and grading permits and it is up
to the building department when they issue them.
Mayor Dietz stated he offered Mr. Briggs a Special Council Meeting to approve the
developer's agreement. He stated it should have been obvious to Mr. Briggs, by
reading the developer's agreement, he would not be able to get his building permit
until the grading was completed and approved by ITT, Inc. Mayor Dietz questioned
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if it was a long standing city policy to not give a plumbing permit until after the
building permit is issued.
Mr. Ruprecht stated yes.
Mayor Dietz stated Mr. Briggs believes Beehive Homes was able to violate the
policy.
Mr. Ruprecht stated this is incorrect. He stated Beehive Homes was issued a
foundation permit in November 2017. He stated the state plumbing plan review was
approved on January 6, 2018, and the city issued the plumbing permit around
January 24, 2018, and wasn't able to do an inspection until April due to frozen
ground.
Mayor Dietz stated he was told by another staff person that Mr. Briggs may have
been referring to some work being done in the city street.
Mr. Carlton stated this is correct. He stated the utilities needed to be extended north
of the adjacent development,in order for Beehive Homes to access the public
facilities. He stated Mr. Briggs may have been referring to the extension of public
utilities,which has nothing to do with the issuance of a building permit.
Mr. Ruprecht further stated the city issued a foundation permit for Beehive Homes
in November because they wanted to get the footings in before the frost. He stated
the city does this quite often, after obtaining certain information,but the city has
always done it where they issue the foundation permit and collect all fees. He stated
the city could issue Mr. Briggs a foundation permit if he paid his fees. He stated in
this case,the city would issue the foundation permit,then the plumbing permit,and
then the building permit.
Mayor Dietz questioned if the state comments on the plan preclude anything from
happening before Mr. Briggs can move forward.
Mr. Ruprecht stated nothing has to go back to the state. He stated the answers from
the state comments need to be provided to the city. He stated some of them have to
be answered before issuance of the foundation permit,which Mr. Briggs should be
able to provide quickly. He stated most of the comments should be simple to
respond to but they need to be provided by Mr. Briggs architect.
Attorney Beck clarified that a foundation permit is enough of a building permit that
Mr. Briggs could pull the plumbing permit. He cited the Beehive Homes example.
Mayor Dietz noted Mr. Carlton spoke with Mr. Brigg's plumber,Voss Plumbing and
Heating, and Voss confirmed they are aware this is standard policy in most cities for
the building permit to be issued before the plumbing permit.
Mr. Carlton stated this is correct.
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Councilmember Wagner questioned if the city has the ITT, Inc. report and their
approval, expressing further concerns if this is a suitable location for this building.
Mr. Ruprecht stated yes and he is comfortable with the report.
Councilmember Wagner questioned what assurance the city has this building is being
constructed on solid ground for decades to come because the building is receiving
public dollars.
Mr. Carlton stated this is the reason the city added requirements to the developers
agreement.
Mayor Dietz questioned whether liability is on the city or ITT,Inc. if something
were to go wrong.
Attorney Beck stated there is case law supporting the city in this case. He stated the
city is better off because of the level of study and analysis and corrections that were
completed.
Mayor Dietz asked staff to send Mr. Briggs a copy of the information presented
tonight.
Councilmember Ovall thanked staff for their time in putting this information
together understanding how much staff time and resources were utilized. He stated
after review he feels the timeline was very clear.
Mayor Dietz also stated he appreciates how professional staff has been on this
project.
Attorney Beck stated nothing has been done any differently in this situation than
with any other applicant.
Mr. Portner stated staff will prepare a summary and a letter to Mr. Briggs.
3.3 2019 Budgets, Continued
Recreation
Council discussed marketing and duplication of services between other entities.
Mr. Hecker noted he has met with community education to discuss program
duplication and noted both entities would like to work together to market and cross
promote programs.
Mr. Benoit explained he'd like to bump the recreation coordinator from 29 to 32
hours per week. He noted the importance of early event planning for Elk RiverFest,
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along with expansion of the farmer's market. He started they are considering adding
a wintertime market and some one day smaller scale special events.
Councilmember Wagner questioned if an app had been considered for recreational
programming.
Mr. Benoit stated currently the industry trend has been for counties to utilize apps.
He stated they have been looking into it but it's not where the city needs the
technology to be yet. He stated they haven't seen app use with other cities yet and
have been making the website the primary focus.
Mayor Dietz asked staff if there is any way to track staff time cost for Elk RiverFest.
Mr. Portner stated they could work on putting together estimates.
Mr. Hecker noted the revenue brought into the event from the beer garden.
Mayor Dietz stated he hopes to get more service organizations to participate in the
future and to do the work so it's not all on city staff.
Councilmember Olsen stated he received many complements about Elk RiverFest.
He suggested expanding some events to the Handke Center.
Mayor Dietz stated many people felt it was a great way to enjoy community.
Mr. Hecker discussed the $11,000 for the bump in the recreation coordinator hours
and requested it start this year so early event planning can begin.
Mr. Portner stated there is one dilemma with this position that makes it different.
He stated staff has to track benefit eligibility,per the Affordable Care Act,which is
triggered at 30 hours a week. He discussed how careful the city has to be in tracking
hours throughout the year. He stated the recreation coordinator had to put in many
extra hours early in the year for spring/summer events but now the city has to thin
the hours down and this is when the coordinator is needed due to early planning for
2018 events.
Councilmember Wagner stated Karen Wingaard, as the recreation coordinator,is
one of biggest assets to the city,noting she does a phenomenal job and she would
Eke to keep her as the recreational coordinator.
Council consensus was to add$11,000, to begin July 1, toward the recreation
coordinator position for 2018.
Engineering
Mr. Femrite discussed position changes and noted the change to the public works
position will create a void with the engineer role. He stated he would continue to
participate in project management for larger city projects, such as the arena and
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Highway 169 Redefine, but the additional engineer position would be responsible for
project management on a smaller scale.
Mayor Dietz stated when the reorganization was originally discussed, staff stated
there wouldn't be a lot of additional funding needed. He stated the city is now
looking at adding$120,000 for an engineer.
Mr. Portner stated the city would still need additional assistance with the Highway
169 Redefine project. He stated staff discussed adding a temporary position but with
the current employment market,it would be difficult to find someone who would
want the position. He further noted people who apply for engineer-type positions
have more lucrative private sector options.
Street Maintenance
Mayor Dietz asked how the new integration with parks maintenance is working.
Mr. Sevcik stated it's working out well and there is much better communication.
Stormwater Management
It was noted storm water fees are recommended to increase 5% and Elk River's rates
are very modest compared to other communities.
Ms. Ziemer reviewed requested positions and a summary of capital outlay for the
departmental budgets presented tonight.
Mayor Dietz noted he'd like to look at moving some stuff to the 2018 budget.
Referendum and Activity Center 55+
Mr. Portner requested consent to engage 292 Design in creating concepts and cost
estimates for senior space planning at the existing senior activity facility and for the
multipurpose recreational facility.
Councilmember Westgaard stated he'd like to see what $1.5 million gets for both
scenarios.
Mr. Portner stated the YMCA is a challenge due to the current timeline for the
referendum. He stated the YMCA needs to first draft a document outlining
specifications/needs for senior programming before an architect can draw up any
plan.
Councilmember Wagner expressed frustration because conversations had been held
with the YMCA over 9 months ago. She stated she thought when Council gave
approval to move forward,YMCA staff would work to put something together.
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Mayor Dietz stated it is an issue because they won't have the information needed by
the November referendum.
Councilmember Wagner stated it is unfortunate because the YMCA is one of the
city's best amenities and she would like to evaluate all possible options before
determining the best solution.
Councilmember Westgaard questioned if staff has been able to stress the importance
and interest of this project to the YMCA. He questioned if the YMCA is interested
in adding senior services.
Councilmember Olsen stated YMCA staff met with city staff and senior
representatives and they took a tour of the activity center.
Mr. Portner stated YMCA staff indicated they only needed to see how our facility
was being utilized in order to draft their document.
Councilmember Wagner questioned if city staff felt they did their due diligence and it
is reasonable to believe the project is currently in the YMCA's court. She questioned
if anything can be done this week or if there is anything she can do.
Councilmember Olsen stated it wasn't the city's intent for a location to be chosen by
the November referendum.
Mr. Portner stated the YMCA was very hesitant to put together architectural plans
because they have to create their needs document first. He stated he hasn't
connected with YMCA staff in a while. He noted there are a lot of moving pieces
and it's more complicated than saying the city wants a certain size building. He stated
the YMCA also has ideas about what they want to see in a facility.
Mayor Dietz discussed his communications with the seniors and noted how well they
are communicating with each other about this project. He stated there are indications
the seniors are more positive about moving to the multipurpose recreational facility.
Councilmember Ovall questioned why there would be more positive buzz to be at
the recreational facility versus the YMCA.
Councilmember Westgaard stated it may be tied to location and paid membership.
Mayor Dietz stated the seniors don't have a good feeling about moving into the
YMCA due to past experiences.
Councilmember Wagner stated younger demographics (younger seniors or soon to
be seniors) like the YMCA,but the city could also consider action pieces at the
recreational facility, such as walking trails and pickle ball courts.
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Council consensus was to engage 292 Design for providing
evaluations/options for senor programming at the senior activity facility and
the multipurpose recreational facility and to bring back the discussion at the
August 6 Council meeting.
4. Adjournment
There being no further business,Mayor Dietz adjourned the meeting of the Elk
River City Council at 8:11 p.m.
John J. Dietz,Mayor
Tina Allard, City Clerk
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