4.1. DRAFT MINUTES (1 SET) 09-16-2019 VA
City of
Elk Meeting of the Elk River City Council
River Held at the Elk River City Hall
Tuesday, September 3, 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, Finance Director Lori Ziemer,
Fire Chief Mark Dickinson, Community Operations and
Development Director Suzanne Fischer,Economic Development
Director Amanda Othoudt, and Records S ecialist Katie Porath
I. Call Meeting to Order
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Pursuant to due call and notice thereof, the meeting of the Elk Riverty Council
was called to order at 6:33 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
Christianson to approve the agenda. Motion carried 5-0.
4. Consent Agend
Moved by Councilmember Westgaard and seconded by Councilmember Ovall
to approve:
4.1 August 5,2019, Regular Minutes.
August 19, 2019, Regular Minutes.
4.2 Check register, check numbers 9992-9995 and 111615-111784 as outlined
in the staff report.
4.3 Hire Police Officer Jeanette Nelson.
4.4 Storm Culvert Replacement Quote by Burski Excavating, Inc.
4.5 Second Amendment to Settlement Agreement 19-14 with John and
Elaine Dryer.
Motion carried 5-0.
S. Open Forum
No one appeared for Open Forum.
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September 3,2019
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8.1 Adopt Preliminary 2020 Tax Levy
Ms. Ziemer presented the staff report.
Mayor Dietz clarified information from the previous meeting. He asked if the issue
of whether or not the city should plow all of the sidewalks was resolved.
Councilmember Wagner recommended waiting until 2020 to decide if the council
wanted to add sidewalk plowing into the budget.
Mayor Dietz would like to get the budget to 7%which would mean cutting an
additional$313,000.
Councilmember Westgaard asked about funds for the Lake Orono dredging and
elections. He mentioned these are one-time costs that are affecting the budget
increase.
Mayor Dietz agreed the rest of the city should contribute toward the Lake Orono
dredging costs.
Councilmember Ovall stated the largest part of the budget was employees. Because
of the step increase there are at least two mare years of^pDassling,
abs,orbing those costs and
making up for past years with no raises
Councilmember Westgaard felt co ''ortresolution with an 8.5%
increase and working to find a way to cut$150,000 before the December deadline.
Moved by Councilmember Westgaard and seconded by Councilmember
Wagner to adopt Resolution 19-40 authorizing the preliminary property tax
levy for collection in 2020 as amended. Motion carried 4-1. Mayor Dietz
opposed.A"%...........
Moved by Councilmembet Wagner and seconded by Councilmember
Westgaard to set the budget meeting for December 2, 2019, at 6:30 p.m. at
which public comment will be taken. Motion carried 5-0.
Mr. Portner addressed phased retirement for the IT Manager as he has formally
requested a start effective November 24, 2019. A full-time IT Manager would be
hired to train under Mr. Pearson during this 18-month period. Mr. Portner would
Eke direction on whether or not to accept the request.
Council discussed the cost, succession planning,the value of the position to
infrastructure safety, and the backlog of IT projects that could be resolved during the
18-month transition period.
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September 3,2019
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Council discussed shortening the length of the phased retirement to save cost and
setting a precedent for phased retirements and ending up with 1 1/2 employees for
positions.
Mr. Portner stated the city is not obligated to grant phased retirement and few
employees are eligible.
Councilmember Christianson asked if there might be an opportunity to talk to Mr.
Pearson about the length of time needed to transition a new IT Manager into the
role.
Council agreed there are only a few positions in the city where an overlap makes
sense. They agreed to leave the item in the budget for an 18 month phased
retirement for the IT Manager position.
8.2 Councilmember Christianson update on Washington DC Trip
Councilmember Christianson gave an update on his recent trip to Washington D.C.
8.3 Discuss Work Session Items
Mr. Portner presented the staff report.
9. Liaison Updates
Council provided updates on the activities of the various boards and commissions as
also noted in the respective board's minutes.
Council recessed at 7:53 p . in order to go into work session. Council reconvened
at 7:58 p.m.
10.1 International Property Maintenance Code (IPMC)
Ms. Fischer presented the staff report.
The Council agreed the IPMC should be adopted into the building code.
10.2 Certificate of Occupancy Program
Ms. Fischer and Fire Chief Dickinson presented the staff report.
Fire Chief Dickinson said the city has adopted the state fire code for new businesses
but not for when they change building use. The proposed program would help from
a safety standpoint such as a lack of a draft stop could allow a fire to burn out of
sight in void spaces.
Mayor Dietz asked who would do the inspections and how would the city find the
businesses that need to be inspected.
Chief Dickinson responded the fire department would inspect. If the city adopted
these changes into an ordinance businesses would be required to be inspected.
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September 3,2019
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Councilmember Westgaard asked how often the fire department currently inspects
all properties.
Fire Chief Dickinson said the goal was every 2-3 years but inspections occur every 3-
4 years due to staffing levels.
Ms. Fischer stated many businesses do not pull a permit and the goal is to improve
upon this. It's important to know if the new business is compatible with the prior
intended building use—both for safety and code enforcement.
Councilmember Wagner was concerned this is just an :,; oop for new business
owners to jump through.
Fire Chief Dickinson stated the goal was not to hinder business growth but to keep
business owners safe when they enter a new building. The fire code has already been
adopted,just not the change in use.
Councilmember Ovall asked how the change in use would be identified, especially
within a retail space.
Councilmember Wagner feared some businesses may see it as a threat and the city is
trying to control them.
Councilmember Ovall said the curr so*
p'focess is challenging and can get hung up
during inspections and permitting.
Ms. Fischer stated a major cause of permit delays is due to incomplete or inaccurate
applications and supporting documents.
Councilmember Westgaard thought the fire department currently has the authority
to go into any business for the purpose of knowing what is in that building.
Fire Chief Dickinson stated they don't know if a building changed use between the
3-4 year inspection periods.
Councilmember>Westgaard asked if the city was complicating the business inspection
process. He asked about having enough staff to do these new inspections.
Fire Chief Dickinson will return with additional information.
10.3 Development Concept Review
Ms. Othoudt presented the staff report.
Jesse Hartung and Troy Siemers were in attendance to discuss their development
concept. They were hoping for council's support of the project plan and a reduction
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September 3,2019
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in Sewer Availability Charge (SAC),Water Availability Charge (WAC), and building
fees.
Councilmember Ovall stated they liked the concept but the location is a challenge. It
would be difficult on downtown businesses to lose parking,introduce additional
traffic and housing, and development options are limited due to geography.
Mr. Hartung felt he could replace all of the parking spaces and provide parking for
the new tenants.
Councilmember Westgaard pointed out businesses have their service delivery in the
rear and that would be taken away with the proposal. Also,if a pedestrian skyway
was built over Main Street,where would it land on the south side?
Mayor Dietz was concerned about a negative reaction from downtown businesses,
particularly those on Jackson Street.
Mr. Hartung agreed parking and traffic are two of the biggest issues. The new
apartments would bring more people downtown to support the local businesses.
Councilmember Ovall mentioned a number of downtown business owners seem to
be open to selling or improving their structure.
Councilmember Wagner felt there were some big unanswered questions, such as
financing, traffic, and business needs on Jackson Street.
Councilmember Christianson said it would be beneficial to know the community's
appetite for this proposal.
Councilmember Wagner said that if it were going to be a TIF district then there
would be public investment and the public would be providing input.
Mr. Hartung agreed community engagement was important. His request tonight was
whether the city is interested in selling their land. He felt he didn't have enough
information to give the public answers.
Mayor Dietz said they would check with City Attorney Peter Beck to see if the
council could give Modern Construction some sort of guarantee to give Mr. Hartung
time to explore his options.
Councilmember Wagner added she did not want the owners of Jackson Street
properties coming later to say they didn't know about this project.
Ms. Othoudt clarified an option agreement would allow the developer an
opportunity to explore the development of a site and allow them to complete their
due diligence during a set period of time. The council would be the sole authority on
whether this project would move forward. There would be an understanding with an
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September 3,2019
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option agreement that the council is willing to sell the property if the council
approves the development concept.
Mr. Hartung asked about a reduction in WAC and SAC fees.
Council needs to know the implication of fee reduction to the taxpayers, especially if
taxpayer dollars were involved.
Mr. Siemers said they could come back to the council to answer additional questions
and put together a better picture of the project.
Councilmember Westgaard asked if there could be some f drawing c
rendering to illustrate how parking would look.
Mr. Hartung responded that the picture would depend on whe usinesses on
Jackson Street are interested in selling or updating their buildings.
40 'idkII. Adjournment
There being no further business,Mayor Dietz adjourned the meeting of the Elk
River City Council at 9:27 p.m.
Minutes prepared by Katie Porath.
John J. Dietz,Mayor
Tina , City Clerk
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