4.1. DRAFT MINUTES (3 SETS) 04-15-2019 VA
City of
Elk Meeting of the Elk River City Council
River Held at the Elk River City Hall
Monday, March 18, 2019
Members Present: Mayor John Dietz, Councilmembers Garrett Christianson,Nate
Ovall,Matt Westgaard, and Jennifer Wagner
Members Absent: None
Staff Present: City Administrator Calvin Portner, Senior Planner Chris Leeseberg,
Police Chief Ron Nierenhausen, Fire Chief Mark Dickinson, Human
Resources Manager Lauren Wippe and Deputy 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 6:09 p.m. by Mayor Dietz.
2. Pledge of Allegiance
The Pledge of Allegiance was recit
3. Consider March 18, 2019, Agenda
Mayor Dietz asked for item 4.5, the Pinewood Agreement, to be removed and
discussed after consent.
Moved by Councilmember Westgaard and seconded by Councilmember Ovall
to approve the March 18, 2019, agenda as amended. Motion carried 5-0.
4. Consider Consent Agenda
Moved by Councilmember Wagner and seconded by Councilmember
Christianson to approve the following consent agenda as amended:
4.1 March 4, 2019, minutes.
4.2 Check register, check numbers 109770-109918 as outlined in the staff
report.
4.3 City of Otsego Dispatch Agreement No 19-07 as outlined in the staff
report.
4.4 Health Rewards Program Policy as outlined in the staff report.
4.6 Resolution 19-09 conveying portions of the Cleveland Avenue right-of-
way to Sherburne County to complete a roundabout.
Motion carried 5-0.
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March 18,2019
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4.5 Pinewood Management Agreement No. 19-08
Mayor Dietz confirmed some details of the agreement including termination notice
and who is responsible for maintenance costs.
Mayor Dietz asked Mr. Singer if he has the list of equipment replacement costs he
mentioned during the discussion in February. Mr. Singer indicated he has the list and
thought he sent it over but will send it again.
Mayor Dietz explained he is comfortable with the lease but has concerns about
equipment replacement costs. He questioned if the Council has an interest in
obtaining an appraisal to see what the course is worth. Councilmember Ovall
indicated it may be difficult to get an appraisal without showing income history.
Councilmember Wagner questioned if Mr. Singer would still come before the
Council for equipment purchases. Mr. Porti-ler indicated the Council would have full
discretion when reviewing the Pinewood budget each year.
Councilmember Ovall stated as part of the agreement the city pays Elk River Golf
Club a management fee and the Golf Club gets the profits. He questioned if some of
the capital improvement costs could be covered with profits from Pinewood.
Mr. Singer explained the Golf Club is already taking a risk on day-to-day expenses
and if treated like a rental unit the owner would be responsible for maintaining the
property.
Mayor Dietz stated Elk River Golf Club is doing a great job managing Pinewood and
he is comfortable proceeding with the lease and covering capital expenditures. He
noted the agreement can be revisited if necessary.
Councilmember Westgaard indicated if the Council is interested in selling Pinewood
it could be discussed at a future work session. He noted Elk River Golf Club will
need to begin preparing for golf season so he's hesitant to delay the agreement.
Mr. Singer questioned if the Elk River Golf Club would be notified immediately if
the city considered putting Pinewood up for sale. Mayor Dietz indicated he would
Eke the Golf Club to be notified any time the Council is discussing Pinewood.
Moved by Councilmember Westgaard and seconded by Councilmember Ovall
to approve Agreement 19-08 Pinewood Management Agreement. Motion
carried 5-0.
S. Open Forum
No one appeared for Open Forum.
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March 18,2019
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6.1 Volunteer of the Month
Mayor Dietz introduced and presented a plaque to Dan and Bonnie Fixell as the
March Volunteers of the Month. He noted the following accomplishments:
■ Food Rescue—Target to CAER
■ Deliver Community Education brochures
■ United Way volunteers
■ Work at Community Connect events
■ Eve of the Arts volunteers
■ High School Theater ticket sales
■ Deliver Empower t-shirts
■ United Way Grants Committee members
■ RiverCenter Christian Ministries members
7.1 River Walk Apartments - 17354 Zane Street NW
A. Right-of-way vacation: Zane Street NW
B. Simple Plat: River Walk
Mr. Leeseberg presented the staff report. He stated no action is needed as the
applicant has withdrawn all four applications associated with the River Walk project.
7.2 Ordinance Amendment: Commercial Kennels in C3 District
Mr. Leeseberg presented the staff report.
Mayor Dietz opened the public hearing. There being no one to speak to this issue,
Mayor Dietz closed the public hearing.
Moved by Councilmember Christianson and seconded by Councilmember
Wagner to adopt ordinance 19-05 amending section 30-1024, highway
commercial district. Motion carried 5-0.
7.3 Ordinance Amendment: Temporary Signs
Mr. Leeseberg presented the staff report.
Mayor Dietz opened the public hearing. There being no one to speak to this issue,
Mayor Dietz closed the public hearing.
Moved by Councilmember Westgaard and seconded by Councilmember
Christianson to adopt ordinance 19-06 amending section 30-867, district
regulations. Motion carried 5-0.
7.4 Ordinance Amendment: Rezone Community Commercial Districts
(C4) to Highway Commercial (C3)
Mr. Leeseberg presented the staff report.
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March 18,2019
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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 Christianson and seconded by Councilmember
Wagner to adopt ordinance 19-07 rezoning all C4 community commercial
districts to C3 highway commercial. Motion carried 5-0.
7.5 Simple Plat: Mark and Lori Amborn, 13432 Meadowvale Road
Mr. Leeseberg presented the staff report. He noted the public hearing is already open
and should be continued to April 15.
Moved by Councilmember Wagner and seconded by Councilmember
Christianson to continue the public hearing for this item to the April 15, 2019,
City Council meeting. Motion carried 5-0.
7.6 Ordinance Amendment: Home Occupations
Mr. Leeseberg presented the staff report.
Mayor Dietz opened the public hearing. There being no one to speak to this issue,
the public hearing was continued to April 15, 2019.
Moved by Councilmember Christianson and seconded by Councilmember
Westgaard to continue the public hearing for this item to the April 15, 2019,
City Council meeting. Motion carried 5-0.
8. General Business
There was no general business.
Council recessed at 6:35 p.m. in order to go into work session. Council reconvened at 6:38
p.m.
9.1 Healthy for Life Wellness Incentive Program
Ms. Wipper presented the staff report.
The Council questioned how human resources would insure employees were
meeting the requirements of the program. Ms. Wipper indicated she feels staff has a
pretty good handle on being sure employees are doing what they say they are.
Ms. Wipper explained based on Council direction, the program was broken down in
to four categories to make it look more like the police WIP program.
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March 18,2019
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Ms. Wipper indicated staff reviewed costs of adding a biometric feature. She stated
the least expensive option was $29.00 per employee,which is $2,500 if everyone
participated. It was noted these same biometrics can be completed during an
employee's physical typically for no additional charge.
Ms. Wipper explained the policy is meant to encourage and provide incentives for
employees to be healthy. She stated studies show healthy employees reduce
healthcare costs, absenteeism,and presenteeism. She noted when the new pay plan
was put in place it was built to averages with a 1.5%gap between our top pay and
top pay of comparable cities with the intent of implementing a program like this to
allow employees to come closer to the top pay of our comparables.
The Council had concerns with there being too many items and it being too easy to
reach the goal. Ms.Wipper indicated by breaking the program up in to categories
similar to the WIP program and removing the tobacco cessation points, employees
will have to strive a little harder to meet the goals.
Ms. Wipper distributed a draft tracking scorecard.
Councilmember Westgaard questioned if there is any indication health insurance
premiums would be reduced with implementation of this program. Ms. Wipper
indicated it is difficult to say because we are pooled with a larger group for our health
insurance premiums. She noted it is in our best interest to remain in the health
insurance pool.
Councilmember Westgaard stated two months at a health club may not be long
enough to earn 100 points. He suggested lengthening the time frame or dropping the
point value, or both.
Mayor Dietz clarified this program starts over each year. Ms. Wipper indicated it
does.
Ms. Wipper stated language would be included allowing the program to end or
change at any time at the city's discretion.
Councilmember Ovall suggested a monthly point allocation.
Consensus of the Council was to remove points for attending the employee
appreciation event.
Councilmember Wagner explained she is not on board with this program. She likes
some of the ideas of the fitness program but she has a really hard time adding this to
the budget and doesn't feel tax dollars should be used this way. She believes there are
multiple incentives to work here including access to a nice workout room and
summer hours. She noted she would feel differently if there was proof health
insurance premiums would be reduced.
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March 18,2019
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Councilmember Westgaard indicated he doesn't completely disagree. He would like
to see the topics refined a little more and parameters set. He would like staff to
continue working on the program.
Mayor Dietz explained the city has taken big strides recently to be more competitive
in pay and it may be too soon to implement another incentive. He added he would
Eke to see this program mirror the police program and he would like to see a copy of
the police program to see how it can be incorporated. He also suggested having a set
dollar amount rather than a percentage so every employee receives the same
incentive.
Councilmember Westgaard questioned if employees have been polled to gauge
interest. Ms.Wipper indicated they have not. Councilmember Westgaard suggested
figuring out what topics employees are interested in.
Councilmember Ovall commented in his experience wellness programs are better
received when run by employees rather than compulsory.
Council consensus was for Ms. Wipper to provide a copy of the police department
WIP program for review and revisit.
9.2 Public Safety Building Needs
Chief Nierenhausen and Chief Dickinson presented the staff report.
Mayor Dietz expressed an interest in obtaining an architectural study for expansion
of the public safety facility and questioned the process. Mr. Portner indicated
generally we put out a scope of the project and companies would bid on putting
together an analysis.
Council consensus was to solicit bids for an architectural study for the police
department expansion (garage and upper level) and the upgrade and expansion of
fire station 2 with a possible addition of a third fire station located on the east side of
the city.
9.3 Public Works Apprenticeship Program
Mr. Femrite presented the staff report.
Councilmember Westgaard questioned how the apprentice program would differ
from seasonal employees. Mr. Femrite explained the level of training for the
apprentices would be more extensive. He noted seasonal employees are only on
board for three months and do not receive extensive training. He added seasonal
employees will still be utilized.
Councilmember Ovall indicated he doesn't disagree with the concept. He questioned
if we have the capacity to train and mentor the apprentices. Mr. Femrite indicated it
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March 18,2019
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would require some time management but thought we could make it work with
hopes that by investing time to train apprentices,time and money could be saved
later.
Mayor Dietz questioned if this would fit for high school students. Mr. Femrite
explained the program is geared towards high school graduates as this is a yearlong
program. He indicated they are still working on the pay and titling as they have to be
sensitive to the unions. He noted staff is working with human resources on the
details.
Mayor Dietz questioned what incentives are available upon completion of the
yearlong apprentice program. Mr. Femrite stated the goal is to train these employees
to create a bench of qualified applicants available when resignations or retirements
are presented.
Mr. Portner added we could also provide an excellent reference if the apprentice did
a good job but we don't have any positions available.
Councilmember Wagner stated she believes there would be an interest as many high
school students don't know what they want to do or where they want to go when
they graduate. She added it would also be a good fit for someone making a career
change. She believes it will serve as a yearlong interview for the city to see if people
would be a good fit. Councilmember Westgaard concurred.
Councilmember Christianson questioned if this is a union position. Mr. Femrite
indicated we are proposing it would be non-union filling a laborer position. Mr.
Portner added he will continue discussions with the union representative.
Councilmember Christianson questioned if it was possible to transition a seasonal
worker to the yearlong apprenticeship. He indicated at the company he works for
they train all seasonal employees but if they find one that is exceptional they do
additional training. Mr. Femrite added he does try to retain and provide additional
training to the better seasonal staff.
Mr. Femrite indicated staff will formalize the program identifying pay,benefits, and
other details and bring back to the Council for formal approval.
9.4 Pavement Management Funding
Mr. Femrite presented the staff report.
Councilmember Wagner questioned if it makes sense to look at the city's pavement
needs as a whole including new parking lots rather than just existing streets.
Councilmember Westgaard indicated the intent of the franchise fee is to get away
from assessments and questioned the impact of adding trails and parking lots in to
the franchise fee fund. He stated liquor store funds have been added to the Park
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Improvement Fund and it's never enough to complete the projects. He was
concerned including parking lots and trails could deplete the fund.
Mayor Dietz explained he doesn't believe the intent is to add parks or trails, just
about maintaining what we have. He noted there is no way the Park Improvement
Fund can afford to fix the Orono parking lot. He doesn't have an issue with using
some of the franchise fee money as long as the fund is seeing substantial numbers
each year. He stated the Council should decide what the franchise fee money can be
spent on.
Councilmember Wagner indicated her intent isn't to replace park equipment, just the
parking lot asphalt.
Mayor Dietz indicated he does not have an issue with funding parking lot
improvements on city-owned land and streets and asked for Mr. Femrite's opinion.
Mr. Femrite explained the franchise fee was set based on projections for larger street
projects over 10 years. He indicated those projections showed the maintenance
needs will plateau and we should see a period of fund growth when we have caught
up on maintenance. He added he can't speak for how the bid climate may change.
10. Adjournment
There being no further business,Mayor Dietz adjourned the meeting of the Elk
River City Council at 8:11 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, April I, 2019
Members Present: Mayor John Dietz, Councilmembers Garrett Christianson and Matt
Westgaard
Members Absent: Councilmembers Nate Ovall and Jennifer Wagner
Staff Present: City Administrator Calvin Portner,Economic Development Director
Amanda Othoudt, and City Clerk Tina Allard
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 6:30 p.m. by Mayor Dietz.
2. Pledge of Allegiance
The Pledge of Allegiance was recited.
3. Consider Agenda
Moved by Councilmember Westgaard and seconded by Councilmember
Christianson to approve the agenda. Motion carried 3-0.
4. Consider Consent Agenda
Moved by Councilmember Christianson and seconded by Councilmember
*Westgaard to approve the following consent agenda:
4.1 Check register, check numbers 9975-9977 and 109919-110061 as
outlined in the staff report.
4.2Adopt Ordinance 19-08 assigning a new street address for the property
identified as PID#75-403-0060 of the City of Elk River, Minnesota.
4.3 Purchase 3,000 gallon water tender from Midwest Fire Company for
$287,007.
4.4 On-Sale Wine License, 3.2 Percent On-Sale License and permission to
sell Strong Beer to Henrickson LLC dba/Pompeii Pizzeria valid May
1, 2019 through June 30, 2020.
4.5 Hire Jenna Fabish as assistant city engineer effective May 6, 2019.
Motion carried 3-0.
S. Open Forum
No one appeared for Open Forum.
City Council Minutes Page 2
April 1,2019
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6. Presentations, Awards, and Recognition
There were no presentations.
7.1 Amended Redevelopment Plan for City of Elk River
Ms. Othoudt presented the staff report. (presentation)
Mayor Dietz opened the public hearing. There being no one to speak to this issue,
Mayor Dietz closed the public hearing.
Councilmember Westgaard commended the Housing and Redevelopment Authority
for implementing the expansion of this successful program.
Moved by Councilmember Westgaard and seconded by Councilmember
Christianson to adopt Resolution 19-20 approving amended and restated
Redevelopment Plan for owner-occupied housing and rehabilitation program.
Motion carried 3-0.
8.1 Discuss Work Session Items
Mr. Portner presented the staff report.
Councilmember Christianson asked for a review of the policy regarding clearing
snow from sidewalks. He discussed concerns with boundary areas and questioned
why some are cleared by the city but others or not. He suggested and all or nothing
Policy.
Mayor Dietz concurred.
It was noted the Snow and Ice Control Policy was on a future work session agenda
for discussion.
Mayor Dietz questioned when there would be an update on The LORE (Lake
Orono Restoration and Enhancement project). Cal stated the association is not ready
but noted it would be on a future agenda.
9. Council Liaison Updates
Council provided updates of the various advisory groups as noted in the respective
group minutes. Items to not include:
Library Board
■ Communication methods
■ Bylaw review
■ Facilty walk through
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April 1,2019
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■ Telescopes can be checked out
Elk River Municipal Utilities
■ Wage and benefit committee update
■ Annual report review.
■ Reliability report review
Region 7W1'
■ Twin Lakes Road project ranking
Fire Relief Board
■ Need to determine plan for a CD at Bank of Elk River
10. Work Session
There were no work session items.
11. Adjournment
There being no further business,Mayor Dietz adjourned the meeting of the Elk
River City Council at 6:45 p.m.
John J. Dietz,Mayor
Tina Allard, City Clerk
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City of
Elk Meeting of the Elk River Board of Appeal and Equalization
River Held at Elk River City Hall
Monday, April 8, 2019
Members Present: Mayor Dietz, Councilmembers Christianson,Westgaard, and Wagner
Members Absent: Councilmember Ovall
Staff Present: Deputy Clerk Jessica Miller
Also Present: County Assessor Greg Olson, Residential Appraiser Krista Thoe,
Residential Appraiser Beth Boysen,Agricultural Specialist Kristi
Botzek, and Commercial/Ind strial. \raiser lliam Riley
Call Meeting to Order
Pursuant to due call and notice thereof,the meeting ver Board of
Appeal and Equalization was called to order at 6:00 p.m. by Mayor Dietz.
2. Board of Appeal and Equalization
Greg Olson,Sherburne County Assessor, indicated the purpose of the Board of
Appeal and Equalization is to consider and review 2019 estimated market values and
property classifications for taxes payable in 2020.x
Information prese fed on the a `s' ssrrment proce` ii sand statistics for the City
of Elk River 2019 assessments.
The Board of Appe Equalization heard appeals as outlined below:
1. �Robertlley, Parcel Identification Number 75-458-0120
Mr. Dilley expressed concern over seniors on fixed income not being able to
afford tax increases. He suggested the Council implement a program for seniors
capping value increases at$5,000 a year. Mayor Dietz and Ms. Thoe explained to
Mr. Dilley neither the Council nor the county assessor have authority to do that.
They suggested Mr. Dilley speak to his legislative representative.
Mr. Olson indicated the legislature sets the class rates. He noted rising valuations
for senior citizens is a national problem and there are programs at the state
allowing seniors to obtain a reverse mortgage to help pay for taxes.
Mr. Dilley indicated his value increased approximately$50,000 in two years with
no improvements made to his house. He understands he lives on a lake and lake
properties are increasing but he doesn't see how it is his problem if people want
to pay a lot to live on a lake.
Board of Appeal and Equalization Minutes Page 2
April 8,2019
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Ms. Thoe noted for the 2018 assessment (taxes payable in 2019) water properties
increased about 12%when other residential increased about 9% but she stated
county staff is following the Department of Revenue's requirement for value
increases.
Mr. Olson indicated Mr. Dilley met with him last fall and they did agree on a
decrease for 2019. The Council pointed out with the decrease for 2019, the net
increase over two years was $22,600.
Moved by Councilmember Christianson and seconded by Councilmember
Westgaard to make no change to parcel 75-458-0120. Motion carried 4-0.
2. Rich Shulz, Parcel Identification Number 75-454-0120
Mr. Shulz indicated he feels his property is overvalued. He indicated he believes
his property has been miscategorized 80% office space, 20%retail when it
should have been 80% retail&20% office, for the last 10 years. He believes it
should be 15% office and 85% retail based on his current tenants.
Mr. Riley distributed handouts on what he feels are comparable properties. Mr.
Shulz stated his building is considered above average at almost$55 a square foot
and he feels he should be in the average category. He requested a $120,000
decrease in his value with his property coming in at around $45-$47 a square
foot.
Mr. Riley noted $120,000 decrease is huge and that he is working on a
compromise with Mr. Shulz. He noted he is recommending a decrease of$8,600
as outlined on the handout. He added he would like to work with Mr. Shulz
towards an income valuation if Mr. Shulz is willing to provide that information.
Councilmember Westgaard questioned if Mr. Riley and Mr. Shulz can continue
to work together and report back at a reconvene meeting.
Mr. Olson indicated he would consider reducing Mr. Shulz's valuation to $49 a
square foot based on averages from the handout.
Moved by Mayor Dietz and seconded by Councilmember Christianson to
adjust the value of parcel 75-454-0120 from a building value of$696,000 to
$621,900. Motion carried 4-0.
3. Richard and Michelle Nietfeld, Parcel Identification Number 75-571-0110
Ms. Thoe distributed a handout on the above parcel.
Moved by Councilmember Wagner and seconded by Councilmember
Westgaard to adjust parcel 75-571-0110 from $339,000 to $326,000 as
recommended by the county assessor. Motion carried 4-0.
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Board of Appeal and Equalization Minutes Page 3
April 8,2019
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4. Ancc Erelkmn0l LLC, Parcel Identification Number 75-661-0105
Mr. Riley distributed a handout on the above parcel.
Moved by Councilmember Westgaard and seconded by Councilmember
Christianson to make no change to parcel 75-661-0105 as recommended by
the county assessor. Motion carried 4-0.
3. Adjournment
There being no further business,Mayor Dietz adjourned the meeting of the Elk
River Board of Appeal and Equalization at 7:28 p.m.
Minutes prepared by Jessica Miller.
John J. Dietz,Mayor
Tina Allard, City Clerk
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