Loading...
07-16-2018 CCMMeeting of the Elk River City Council 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 Pormer, 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 1. Call Meeting to Order Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called to order at 6:00 p.m. by Mayor Dietz. 2. Pledge of Allegiance The Pledge of Allegiance was recited. 3. Consider July 16, 2018 Agenda Moved 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 City Council Minutes Page 2 July 16, 2018 ----------------------------- 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 comer of 182"d Ave NW or 1834 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's 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 lOifAEI er NATURE City Council Minutes Page 3 July 16, 2018 ----------------------------- 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 projected 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. vorlsEo s1 IAME City Council Minutes Page 4 July 16, 2018 ----------------------------- 7.2 Easement Vacation: Jake Lundsten for 20' Drainage and Utility Easement, 21 101 Olson Circle 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 heating. 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. 7AA 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. P�B1HE1 Bt MATURE City Council Minutes Page 5 July 16, 2018 ----------------------------- Mayor Dietz clarified with City Attorney Beck that, if ERX wished to build additional racetracks, they would need additional Council approval. 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. 7AB ERX Motorpark - 21 S91 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. P 0 1 1 R I I Ir NATU l y City Council Minutes July 16, 2018 Page 6 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. 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. 10VIRf1 I1 NATURE City Council Minutes Page 7 July 16, 2018 Ms. Goodin estimates these road closures are necessary 4-5 times per year and require a formal written plan be submitted to MnDOT. 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 13a' 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 Councihnember 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: PANEAEI AT NATURE City Council Minutes July 16, 2018 Page 8 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. 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. NATURE City Council Minutes Page 9 July 16, 2018 Councilmember Olsen left the Council chambers at 8:23 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 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 -lc (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 ERMi 1 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. PONEAEI Bt riATUR� City Council Minutes July 16, 2018 Page 10 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 Councihnember 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 1 0 W f R I I I t NATURE City Council Minutes July 16, 2018 Page 11 would have to be acquired through property taxes. According to a study from the 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 Councihnember 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. Mt. Pormer 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. P 0 V I A I G 8 Y P/rk r U P City Council Minutes July 16, 2018 Page 12 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 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. Councilmembet 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. 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. Pormer 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. Portnet 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. Pormer stated not in what was being presented. NQ 1 VRE City Council Minutes July 16, 2018 Page 13 Mayor Dietz questioned whether it would have been more difficult to find someone as multifaceted as the previous fire chief. 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. PIM//I'RIII1 A 1 U1!D City Council Minutes July 16, 2018 Minutes prepared by Katie Porath Tina Allard, City Clerk Page 14 ADGA' AEO BI ice"