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06-17-2019 CCMMeeting of the Elk River City Council Held at the Elk River City Hall Monday, June 17, 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, City Attorney Peter Beck, Finance Director Lori Ziemer, Assistant Finance Director Jesse Dorn, Planning Manager Zack Carlton, Senior Planner Chris Leeseberg, Stormwater Coordinator Brandon Wisner, Environmental Coordinator Amanda Bednar, and Deputy Clerk Jessica Miller 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 6:30 p.m. by Mayor Dietz. 2. Pledge of Allegiance Pledge of Allegiance was recited. 3. Consider Agenda Moved by Councilmember Wagner and seconded by Councilmember Westgaard to approve the agenda. Motion carried 5-0. 4. Consent Agenda Moved by Councilmember Ovall and seconded by Councilmember Wagner to approve: 4.1 Minutes ■ June 3, 2019, Regular ■ June 3, 2019, Closed 4.2 Check register, check numbers 9981 and 110700-110867 as outlined in the staff report. 4.3 Liquor store manager position description as outlined in the staff report. 4.4 Renewal of an On -Sale Brewer/Taproom and Off -Sale Growler License for Aegir Brewing Company LLC, valid July 1, 2019, through June 30, 2020. 4.5 Lease amendment 2019-11 with the Elk River Area Chamber of Commerce for city -owned property at 509 US Highway 10 effective through 2021. 4.6 Pay estimates as outlined in the staff report. 4.7 Resolution 19-20 authorizing transfer from Municipal Liquor Store Fund to Park Improvement Fund. City Council Minutes June 17, 2019 Page 2 4.8 Temporary On -Sale Liquor License to the City of Elk River for Elk RiverFest scheduled July 6, 2019, with the condition alcohol must be confined to an area enclosed by a fence with a secured, controlled access. Wrist band control is required for patrons 21 and over. 4.9 Updated financial management policies as outlined in the staff report. 4.10 Hire Mark Pistulka as building inspector effective July 8, 2019, as outlined in the staff report. 4.11 Hire Christopher Decker as maintenance mechanic effective July 8, 2019, as outlined in the staff report. 4.12 Authorization to conduct controlled archery deer hunts within select parks as outlined in the Deer Herd Management Plan. Motion carried 5-0. S. Open Forum No one appeared for Open Forum. 6.1 City of Elk River Volunteer of the Month Mayor Dietz presented the June Volunteer of the Month award to Bill LaVigne. He highlighted the following: ■ Board Member, Independent Community Bankers of MN • Sherburne County Economic Development Authority Board member ■ Sherburne County Area United Way Finance Advisory Committee member ■ Bank volunteer at CAER, Santa Day in the Park, Riverfront Concert series ■ Capital Campaign Committee member for his church ■ Former board member for Sherburne County Area United Way, Sherburne National Wildlife Refuge, Elk River Chamber of Commerce, and Zimmerman Area Chamber of Commerce 6.2 Comprehensive Annual Financial Report for the Year Ended December 3 I, 2018 Ms. Ziemer introduced Michelle Hoffman and Chris Knopik from CliftonLarsonAllen. Ms. Hoffman and Mr. Knopik presented an overview of the Comprehensive Annual Financial Report for the year ended December 31, 2018. Moved by Councilmember Westgaard and seconded by Councilmember Ovall to receive the Comprehensive Annual Financial Report for the Year ended December 31, 2018. Motion carried 5-0. ro�EaE� �r [NATURE] City Council Minutes June 17, 2019 Page 3 7.1 Conditional Use Permit: Private Kennel, Karen Randall, 19101 Zebulon Street Mr. Leeseberg presented the staff report. Mayor Dietz opened the public hearing. Douglas Larson, 14304 191St Avenue NW, questioned how the Conditional Use Permit will be enforced. He doesn't believe enforcement should be complaint based as he doesn't believe it is his responsibility to enforce a permit the city issues. Charlie Brandt, 19125 Zebulon St, indicated he was originally opposed to the request for a number of reasons but has changed his mind since speaking with Ms. Randall and her son and touring their home. He stated he would be happy to speak to any of the neighbors and encouraged them to speak to Ms. Randall if they have concerns. He stated the dog barking has been non-existent since the meeting and he no longer has concerns. There being no one else to speak to this issue, Mayor Dietz closed the public hearing. Mr. Leeseberg responded to Mr. Larson's comment about complaint based enforcement. He explained enforcement of many of our ordinances are complaint based. He indicated the community service officer visits the site as part of the licensing requirement but added staff can conduct unannounced site visits if the Council desires. Councilmember Westgaard felt this was a good example of how the application process for a Conditional Use Permit should work. He appreciates the applicant listening to and addressing neighbor concerns. He explained enforcement is the city's responsibility but it is impossible for the city to be everywhere 24/7 so it's important for neighbors and the general public to understand the conditions and report violations in the event conditions are not being adhered to. The Council discussed adding unannounced visits as a condition of the Conditional Use Permit. It was noted this is not done for other kennels. Consensus was to trust the applicant will follow the conditions and handle appropriately if complaints are received. Moved by Councilmember Westgaard and seconded by Councilmember Christianson to approve the Conditional Use Permit allowing a private kennel to Karen Randall, 19101 Zebulon Street, with the following conditions: 1. The private kennel shall be limited to thirteen (13) animal units. Additional animal units will require an amendment to the Conditional Use Permit. 2. No more than six (6) animal units shall be allowed outdoors at once. 3. The removal of animal waste shall comply with Section 10-9. All on-site waste shall be picked up and properly disposed of twice a week. 4. All dog waste shall be cleaned up immediately when dogs are off-site. 5. The applicant shall receive a private kennel license from the city. 6. No more than two (2) animals per supervisor shall be allowed outside of the fenced area. F01EaE1 91 NATURE City Council Minutes June 17, 2019 Page 4 7. No dogs designated as dangerous or potentially dangerous are allowed to be kept on-site, and the keeping of such dog shall be grounds for revocation of the permit. Motion carried 5-0. 7.2 Planned Unit Development Amendment: Allow Bus Garage at 13439 1951' Lane, Evans Park, Inc./DBA Guardian Angels by the Lake 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 Ovall and seconded by Councilmember Wagner to authorize an amendment to the approved Planned Unit Development (PUD) site plan as the standards set forth in Section 30-654 have been satisfied. Motion carried 5-0. 7.3 Conditional Use Permit: Auto Sales, 16501 US Highway 10, East Central Sports Mr. Leeseberg indicated the applicant has withdrawn their application and no action is needed. 7.4 Interim Use Permit: Institutional Use (School) Inside Elk River United Methodist Church at 1304 Main Street, Three Rivers Montessori Charter School Mr. Leeseberg presented his staff report. Mayor Dietz opened the public hearing. There being no one to speak to this issue, Mayor Dietz closed the public hearing. Moved by Councilmember Christianson and seconded by Councilmember Westgaard to approve an Interim Use Permit to allow Three Rivers Montessori Charter School to locate inside Elk River United Methodist Church, 1304 Main Street, with the following conditions: 1. The Interim Use Permit will expire June 17, 2025. 2. Bus loading and unloading shall occur on Main Street or 4`s Street. 3. Parent drop-off and pick-up shall only occur in the parking areas of the subject parcel. Motion carried 5-0. 10 1 E 8 E 1 II NATME City Council Minutes Page 5 June 17, 2019 7.S Variance: Side Yard Setback, Scott Lillestrand, 12426 193rd Lane Mr. Leeseberg presented the staff report. Mayor Dietz opened the public hearing. Scott Lillestrand, 12426 193`d Lane, property owner, indicated he revised the site plan and received a letter of support from the neighbor on the variance side since the Board of Adjustments meeting. He explained he believes the variance is in harmony with the general purpose and intent of the ordinance because there would be 38 feet between habitable spaces. He thanked the Councilmembers for accepting his invitation for a site visit. There being no one else to speak to this issue, Mayor Dietz closed the public hearing. Councilmember Christianson indicated he believes the variance is in harmony with the general purpose and intent of the ordinance as it achieves at least 20 feet between habitable spaces. He added the letter of support from the affected neighbor is a plus. The Council concurred. Councilmember Wagner added she appreciated the invitation for a site visit and feels it helped her decision. Mayor Dietz questioned if approving this variance sets a precedent. Mr. Leeseberg indicated variances are considered on a case by case basis. Mr. Beck added specific case law exists dictating that granting one variance request does not imply approval of the next request. Moved by Councilmember Christianson and seconded by Councilmember Ovall to approve the request by Scott Lillestrand,12426193`d Lane, for a side -yard setback variance as the Council finds the conditions of granting a variance have been met. Motion carried 5-0. 7.6 Simple Plat: LG Acres, 14323 Ranch Road 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. Moved by Councilmember Westgaard and seconded by Councilmember Wagner to adopt resolution 19-21 for final plat for LG Acres with the following conditions: 1. Park dedication shall be paid for one (1) dwelling unit at the rate applicable when the subdivision is released for recording. 2. The plat shall not be released for recording until the wetland delineation has been approved. 3. Any item or condition found indicating the site is likely to yield information important to pre -history or history shall immediately be reported to the city. Further, the city reserves the right to stop work KF A I I t r 4iURE City Council Minutes Page 6 June 17, 2019 authorized in its approval until the site is appropriately investigated and work is authorized. Motion carried 5-0. 7.7 Conditional Use Permit: Salvage Yard, Copart of Connecticut, Inc., 15932 Jarvis Street 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. Councilmember Wagner indicated she received a call questioning traffic safety on Highway 10 in this area with hauling vehicles in and out of this business. She also questioned if this use meets the city's beautification goals for the area along the Northstar corridor. She indicated the Planning Commission suggested a fence and tree plantings, which will go a long way in screening the area. Councilmember Ovall stated he has also heard concerns about traffic volume and safety in that area and without a controlled intersection adding more traffic may be unsafe. Mayor Dietz questioned if a majority of the vehicle deliveries will be coming east or west. The applicant's representative indicated from the metro area. Moved by Councilmember Westgaard and seconded by Councilmember Christianson to approve the Conditional Use Permit authorizing operation of a salvage yard at 15932 Jarvis Street with the following conditions: 1. Update the site plan to show the presence of an approved surface (bituminous, class 5, or concrete) on all driving and parking areas. 2. Schedule a site visit with the building official and fire marshal to review the existing building and complete any required code updates. 3. Update submitted plans to demonstrate compliance with local stormwater management requirements. 4. Staff approval of a SWPPP demonstrating how contaminated runoff will be treated. 5. Increase the 100% opaque fence height to eight feet along Jarvis Street and for 500 feet along the railroad. The remaining 100% opaque perimeter fencing shall be no less than six feet. Submit an example of the proposed screening for review and approval. 6. All fencing shall be dark green in color to reduce visual impacts around the property. Final color must be approved by city staff. 7. Add mature tree screening along the entire property line abutting the railroad. Motion carried 4-1. Councilmember Wagner opposed. p 0 V I A I I t r NATURE City Council Minutes Page 7 June 17, 2019 ----------------------------- 7.8 Pines at Elk River, LLC — 18461 Twin Lakes Road a. Ordinance Amendment: Zone Change: Business Park (BP) to Planned Unit Development (PUD) b. Conditional Use Permit: PUD c. Preliminary Plat: Tall Pines PUD 2nd Addition Townhome Development d. Final Plat of Tall Pines PUD 2nd Addition Mr. Carlton presented his staff report. Mayor Dietz opened the public hearing. Fred Trapp, 18521 Line Avenue, Die Concepts, expressed concerns about 15 new properties being adjacent to his place of business and potentially having noise and traffic concerns with his existing business. Mr. Carlton indicated screening would be required in an attempt to address these concerns. There being no one else to speak to this issue, Mayor Dietz closed the public hearing. Councilmember Wagner questioned if there would be pedestrian access to Twin Lakes Road or along Line Avenue. Mr. Carlton indicated pedestrian access is not proposed at this time. Councilmember Wagner stated this would be important to her. Councilmember Wagner also expressed concerns with the new homes coming in and complaining about the existing business directly to the north. She indicated she cannot support putting more homes in an area with already heavy traffic at least until MnDOT releases their final plans for the area. Mr. Carlton indicated the Council has 120 days to act on this item so a decision could be delayed for another 60 days to see if MnDOT releases their plans for the area. Councilmember Christianson indicated the area is already a traffic disaster and he would like to see the plans from MnDOT prior to moving forward. Mayor Dietz questioned how right-of-way would be obtained to install sidewalks in this area. Mr. Carlton explained staff would work to obtain the appropriate right-of-way and figure out what works. He added this area is a big focus for local access and connections. Mayor Dietz explained his concern with changing the zoning from Business Park to PUD and has concerns on how it would affect Die Concepts. He also indicated he would like to see traffic projections if Line Avenue was a cul-de-sac. Counciltnember Westgaard expressed similar concerns about the zone change adding it seems weird to sandwich residential between industrial. He added it would be good to know MnDOT's long-term transportation plans before this property develops. Attorney Beck indicated approving a zone change is considered discretionary and at the ioption of the Council. IN"A"T" 11 7 City Council Minutes June 17, 2019 Page 8 Moved by Councihnember Westgaard and seconded by Councilmember Wagner directing staff to draft a resolution of denial to be brought back to the City Council. Motion carried 5-0. 7.9 Ordinance Amendment: Institutional Uses Mr. Leeseberg presented the staff report. Mayor Dietz opened the public hearing. There being no one to speak to this issue, Mayor Dietz continued the public hearing to the July 15, 2019, City Council meeting. 8.1 Lake Orono Improvement District Mr. Wisner and Ms. Bednar presented the staff report. Attorney Beck indicated staff's conclusion is the petition meets all of the requirements of statute, including validated signatures and the DNR confirmed boundary, in order for the City Council to enter in the Order of Establishment of the Orono Lake Improvement District if they desire. Councilmember Christianson questioned the scientific research when determining boundaries on where the lake ends and the river begins. Tom Hovey, Water Regulation Unit Supervisor, MN Department of Natural Resources, indicated in determining boundaries they look at the ordinary high water mark. He explained the high water mark for a reservoir is defined as the normal summer operating elevation. He further explained modeling is used to determine water levels given different flows, outlets, pipes, etc. He stated the DNR determined the reservoir does extend past 189`' Avenue and therefore, 189th Avenue properties are considered within the Lake Orono boundary. Patrick Plant, Chair of the Lake Orono Water Quality Committee, offered Lake Zumbro is a reservoir that has an existing lake improvement district. Mark Person, 13726 189`h Avenue NW, indicated statute requires a natural boundary and the DNR confirmed this is not a natural boundary as it is controlled by a dam therefore it doesn't qualify under the statute the Orono Lake Improvement District is proposed under. Attorney Beck stated the boundary is determined by the DNR but his review of statute does not identify a distinction between a lake and a reservoir. He indicated he believes Lake Orono with boundaries as determined by the DNR is an appropriate body of water for a lake improvement district but added ultimately the city is interpreting and applying statutes administered under authorization of the DNR. 1IVEaII ti rAWRE City Council Minutes Page 9 June 17, 2019 ----------------------------- Councilmember Westgaard thanked everyone for their input and for attending the meeting. He explained the City Council's job is to determine if the petition has met the criteria to establish a lake improvement district and he is comfortable approving. He stated the number of signatures tells the Council a majority of property owners are in favor. He indicated Council oversight on the budget and the board of directors gives him some comfort. He explained there is an appeal process in place through the DNR for those who do not feel their property belongs in the district which is outside of Council control. Councilmember Wagner indicated the Council is considering the petition establishing a lake improvement district, not setting budgets or identifying projects at this time. She indicated a majority of the residents seem to be in favor of the lake improvement district with the majority of opposition coming from residents along 189th Avenue. She explained she is comfortable with the DNR explanation of the boundary. She believes the lake improvement district will give the residents a voice and believes the districts have worked well in other areas. Councilmember Ovall concurs with Councilmembers Westgaard and Wagner on the Council's decision this evening being consideration of the petition. He believes the improvement district is a good mechanism for communicating and advocating lake improvements. He stated there is a civic process in place for those in opposition. Councilmember Christianson added he sees this as an opportunity for residents along the lake to take control over their backyard rather than the government. He understands concerns of those along 189`'' Avenue but cannot disagree with the scientific evidence supporting the boundary. Mayor Dietz indicated a key factor for his decision is that a majority of lake residents are in favor of the district. He said the lake improvement district means everyone on the lake can be involved and he doesn't see a downside to establishing the district. He likes that the district can elect a board and provide recommendations to the City Council. He said he did have concerns about the boundary but the DNR has addressed those concerns and the city needs to rely on the DNR as experts. He added lake dredging is a priority for the city. He said the city was providing $100,000 of the $750,000 that may be assessed to property owners because the city owns property on Lake Orono. Also, the city has already secured $1.5 million from the state and allocated $1 million from LOST funds to help pay for a dredging project. Moved by Councihnember Christianson and seconded by Councilmember Westgaard to adopt resolution 19-22 Making Findings of Fact and Approving an Order Establishing the Orono Lake Improvement District. Motion carried 5-0. 8.2 Hilltop Woods Estates Second Addition, 20655 Victoria Drive a. Easement Vacation b. Plat Mr. Carlton presented the staff report. p 0 1 E a E I 1 1 NATURE City Council Minutes June 17, 2019 Page 10 Attorney Beck explained denial of this request based on the length of the cul-de-sac may not be valid since a variance for the cul-de-sac length is in place. He added denial based on a 25 -year old Development Agreement may also not be valid, and stated he found no recorded covenant against future development and believes if that was the intent it would have been recorded. He indicated the City Council has the least amount of discretion on subdivision requests and this lot does comply with all of the city's requirements for a subdivision. He added the applicant is proposing to split a lot at the end of the cul-de-sac but nothing about the cul-de-sac is changing. Councilmember Westgaard questioned if a variance remains in place forever once granted. Attorney Beck indicated yes, the variance was granted in 1993 for the length of the cul-de- sac. Mayor Dietz questioned if all Developer Agreements expire. Attorney Beck indicated they typically do. He explained a Developer Agreement is put in place to govern the installation of public improvements for developments. He further explained ideally the Developer Agreement will be satisfied once the conditions of the agreement are met and the city issues a certificate of completion. He noted Conditional Use Permits and Planned Unit Developments stay with the property forever and typically if the desire is for a term for approval in a Developer Agreement or part of a land use approval to be permanent, a separate covenant or document will be recorded against the property. Attorney Beck noted a Developer Agreement governs the development whereas a land use approval governs use of the property. Mayor Dietz indicated he would like future Developer Agreements to include a paragraph explaining the terms and expiration. Councilmember Westgaard stated he doesn't see a basis for denial if everything complies with current city ordinance. Attorney Beck commented the only issue that's arguable is the Developer Agreement and he doesn't believe the agreement compels denial. Attorney Beck recommended staff prepare a resolution of findings for approval and one for denial and bring back for Council consideration. This will give the Councilmembers time to reflect on the discussion and come to a decision. Councilmember Wagner liked the idea of preparing both resolutions and having time to decide since new information was presented this evening. Councilmember Christianson concurred. Attorney Beck noted the public hearing is closed but staff will accept additional information in writing from the applicants and public prior to this issue coming back. Councilmember Westgaard noted he would like to see a copy of the Simple Plat showing the cul-de-sac. ! 0[ E B E I I r NXA�VRE City Council Minutes Page 11 June 17, 2019 ----------------------------- tom` Moved by Councilmember Westgaard and seconded by Councilmember Christianson directing staff to prepare a resolution of approval and a resolution of denial for consideration on July 15. Motion carried 5-0. 8.3 Ordinance Amendment: Adopting a Sales and Use Tax Mr. Portner presented the staff report. Moved by Councilmember Westgaard and seconded by Councilmember Wagner to adopt ordinance 19-13 adopting a sales and use tax. Motion carried 5-0 Council recessed at 9:07 p.m. in order to go in to work session. Council reconvened at 9:14 p.m. 9.1 Heritage Preservation Commission Interview The Council interviewed Zachary Griffiths for the Heritage Preservation Commission. Moved by Councilmember Christianson and seconded by Councilmember Wagner to appoint Zachary Griffiths to the Heritage Preservation Commission for a term to begin immediately and expire on February 28, 2021. Motion carried 5-0. 9.2 Concept Review: Off -Premises Religious Signage Councilmember Christianson disclosed he attends this church. Mr. Carlton presented the staff report. Counciltnember Westgaard indicated he believes the simplest thing to do is to allow the sign on the abutting lot, even if that lot is across the street. He has no issue with the church redoing their sign. His issue is who will want a billboard next. He suggested looking at language allowing sign placement on an adjacent lot as long as it's owned by the church. Attorney Beck indicated some cities have language allowing two lots to be counted as one for zoning purposes in such cases. He noted unintended consequences should be considered. Mr. Carlton indicated staff is recommending the ordinance amendment be limited to religious uses and schools. He added religious uses with more than 1,000 lineal feet of frontage are eligible for additional signage. Council consensus was for staff to draft an ordinance amendment as discussed and bring back for Council approval at the first meeting August. 9.3 Connect with Council 0 Mr. Portner presented the staff report. NATUREI City Council Minutes June 17, 2019 Page 12 Councilmember Christianson indicated his idea was for residents to bring issues forward in a less formal setting. Mayor Dietz stated gathering somewhere there is already a crowd would be good since generating a crowd is difficult. He suggested a booth at the Farmer's Market. The Council liked that idea. Discussion took place about possibly partnering with the Chamber of Commerce on some events as well. Councilmember Westgaard noted it can be difficult for some co -u- ncilinembers to make day or early evening events due to work schedules and commutes. 10. Adjournment There being no further business, Mayor Dietz adjourned the meeting of the Elk River City Council at 9:37 p.m. Minutes prepared by Jessica Miller. 4JTin4JTietz,IWyor ' L Tina Allard, City Clerk NATURE