10-07-2019 CCMMeeting of the Elk River City Council
Held at the Elk River City Hall
Monday, October 7, 2019
Members Present: Mayor John Dietz, Councilmembers Garrett Christianson, Nate
Ovall (6:39 p.m. due to HRA meeting), Matt Westgaard, and Jennifer
Wagner
Members Absent: None
Staff Present: City Administrator Calvin Portner, Economic Development Director
Amanda Othoudt, Parks and Recreation Director Michael Hecker,
Recreation Manager Steve Benoit, Public Works Director Justin
Femrite, Environmental Coordinator Amanda Bednar, Public Works
Supervisor Tim Sevcik, Police Chief Ron Nierenhausen, 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 6:36 p.m. by Mayor Dietz.
2. Pledge of Allegiance
Pledge of Allegiance was recited.
3. Consider Agenda
Item 4.3 was removed from the consent agenda.
Moved by Councilmember Westgaard and seconded by Councilmember
Wagner to approve the agenda as amended. Motion carried 4-0.
4. Consent Agenda
Moved by Councilmember Wagner and seconded by Councilmember
Westgaard to approve:
4.1 September 16, 2019 Minutes.
4.2 Check register, check numbers 9997-9999 and 111968-112183 as outlined
in the staff report.
4.4 Resolution 19-47 granting Final Plat approval for Miske Meadows
Sixth Addition, Case No. P 19-12.
4.5 Resolution 19-48 finding parcels are occupied by structurally
substandard buildings.
4.6 Promote Lori Stich to Assistant Finance Director effective October 8,
2019.
City Council Minutes Page 2
October 7, 2019
-----------------------------
4.7 Resolution 19-49 authorizing execution of a grant agreement between
City of Elk River police department and Minnesota Department of
Public Safety
4.8 Termination of Clifford Anderson effective October 7, 2019.
Motion carried 4-0.
4.3 Solid Waste Facility License for Waste Management Elk River Landfill
Moved by Councilmember Westgaard and seconded by Councilmember
Wagner to approve a Solid Waste Facility License for Waste Management Elk
River Landfill. Motion carried 3-0. Councilmember Christianson abstained due to
conflict of interest.
5. Open Forum
No one appeared for Open Forum.
6.1 Flag Runners Donation
Mayor Dietz stated the American Legion lost the site for their Memorial Day
celebration. He stated the group moved their event to Rivers Edge Commons Park
and requested the city provide a flag because there wasn't one in the park. There
were not any funds in the city budget so the flag runners stepped up to raise the
money. Mayor Dietz stated the city further proposed moving the current memorial
located along Highway 10 to Lion John Weicht Park where it would have better
visibility. He stated the Council is considering renaming the new fields to veteran's
fields. He stated the flag would go in Lion John Weicht Park as part of the memorial
display and the legion could hold their event at this location.
Michael Kaufmann, 15300 196"' Avenue, representing the flag runners stated the
group raised $4,400 for the flag pole. He presented the check to Mayor Dietz and
Councilmember Wagner.
6.2 Elk River Landfill Update
Ms. Bednar presented the staff report.
Mike Niewind and Mike Miller, Waste Management, provided an update on the
Elk River Landfill cell expansion for 2020.
Council questioned when the landfill is scheduled to close.
Waste Management staff stated they are still on track for reaching capacity by 2030.
0 2 E R I I I V
NATURE
City Council Minutes
October 7, 2019
6.3 Minnesota Manufacturing Week
Ms. Eddy presented the staff report. She discussed some of the manufacturing
businesses in Elk River.
Mayor Dietz read the proclamation.
Moved by Councilmember Westgaard and seconded by Councilmember
Christianson to proclaim October 1 to October 7, 2019, as Minnesota
Manufacturing Week. Motion carried 5-0.
Page 3
7.1 Amend City Ordinance to Include International Property Maintenance
Code
Ms. Fischer 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 19-17 adding Chapter 30, Section 30-87, of
the City of Elk River, Minnesota, City Code. Motion carried 5-0.
7.2 Revocation of Rental License: 1772 Tipton Circle
Ms. Fischer presented the staff report.
Mayor Dietz opened the public hearing.
Christina Monson, 1745 Tipton Circle, stated she would like the license revoked
due to the drug activity and concerns for kid safety in the neighborhood.
Mayor Dietz closed the public hearing.
Council further noted the numerous code enforcement issues on this property.
Ms. Fischer noted staff had been out to the home 63 times since May.
Moved by Councilmember Christianson and seconded by Councilmember
Wagner to direct staff to prepare findings of fact to revoke the license. Motion
carried 5-0.
8.1 Active Elk River Update: Lion John Weicht Park and Multipurpose
Facility
Mr. Fen -rite presented the staff report.
INATUR
City Council Minutes
October 7, 2019
Page 4
Tom Betty, RJM Construction, provided an update as noted in his presentation. He
discussed the floor plans of the multipurpose facility including the lease space. He
also reviewed layout, concepts and costs for the Lion John Weicht Park Pavilion.
Mr. Femrite noted it would take 10-12 years to recoup costs for the lease space.
There was discussion about water runoff, concession location, traffic navigation,
roof pitch/material, and moving/construction of the veteran's memorial. It was
noted the costs presented tonight did not include the veteran's memorial costs.
Moved by Councilmember Westgaard and seconded by Councilmember
Christianson to approve change order to the multipurpose facility contract for
the addition of the private lease space as outlined in the staff report. Motion
carried 4-0. Councilmember Wagner abstained due to conflict of interest.
8.2 Elk River Landfill Leachate Conveyance System
Mr. Femrite presented the staff report. He reviewed the purposes of each agreement.
There was discussion regarding the public engagement process and closure of the
Great Northern Trail.
Moved by Councilmember Westgaard and seconded by Councilmember
Christianson to approve Agreement 19-21, Utility Installation Agreement for
Waste Management Leachate Disposal. Motion carried 4-0. Councilmember
Christianson abstained due to conflict of interest.
Moved by Councilmember Westgaard and seconded by Councilmember
Wagner to approve Agreement 19-22, License Agreement. Motion carried 4-0.
Councilmember Christianson abstained due to conflict of interest.
Moved by Councilmember Ovall and seconded by Councilmember Wagner to
approve Agreement 19-23, Significant Industries Industrial Wastewater
Treatment Agreement. Motion carried 4-0. Councilmember Christianson
abstained due to conflict of interest.
Moved by Councilmember Wagner and seconded by Councilmember Ovall to
approve Final Plans as outlined in the staff report. Motion carried 4-0.
Councilmember Christianson abstained due to conflict of interest.
Moved by Councilmember Wagner and seconded by Councilmember Ovall to
approve Special Discharge Permit renewal for the Elk River Landfill Leachate
Conveyance System. Motion carried 4-0. Councilmember Christianson abstained
due to conflict of interest.
II RI1 0V
NA rug
City Council Minutes Page 5
October 7, 2019
8.3 Preliminary Development Agreement: Modern Construction
Ms. Othoudt presented the staff report. She reviewed the agreement in detail.
Council questioned staff about attorney confirmation that the Council would be
under no obligation to move forward or commit to any projects related to
downtown development if they feel it is not in the city's best interest.
Ms. Othoudt stated the agreement was drafted by Kennedy and Graven and includes
many exclusivity clauses.
Mayor Dietz stated he feels there are too many red flags with this project and he will
not support it. He expressed concerns for downtown parking.
Councilmember Westgaard stated voting in favor of entering into this agreement
doesn't mean there will be a loss of parking spaces. He further stated he would like
to see parking spaces expanded in the downtown. He stated the only thing Council is
agreeing to with this agreement is to not negotiate with another developer but to give
this developer time to work up a downtown concept plan.
Moved by Councilmember Wagner and seconded by Councilmember
Westgaard to approve Agreement 19-24, Preliminary Development Agreement
with Modern Construction of Minnesota, Inc. Motion carried 4-1. Mayor Dietz
opposed.
8.4 Discuss Work Session Items
Mr. Portner presented the staff report.
Council suggested adding tentative dates to the work session items.
Mayor Dietz questioned when the Council should discuss the current activity center
facility at 413 Proctor Avenue and its purpose/ disposition once vacant.
Mr. Portner stated he was planning on next spring because there is a lot happening in
the city currently and staff capacity is limited. He noted there is time because the new
center won't open until fall 2020.
9. Council Liaison Updates
Council provided an update on advisory board projects as noted in the respective
board minutes.
Council recessed at 8:02 p.m. and reconvened at 8:08 p.m.
rp O E 6 E 0 B t
FNA TUR
City Council Minutes Page 6
October 7, 2019
10.1 Gambling Ordinance
Ms. Allard presented the staff report.
Desiree Hillman, Elk River Youth Hockey Gambling Manager stated she would
Eke to see the amount of permits one organization can have increase because they
have had establishments approach them but are not able to accommodate them
because they are at their permit limit. She stated there are four charitable gambling
organizations located in Elk River and questioned why the city would allow other
trade area organizations to operate. She noted youth hockey has a location in the
City of Otsego but are being kicked out because the kids don't go to school in Elk
River. She further stated youth hockey tried to locate in Zimmerman Bowl but were
not allowed. She stated they want to keep the money raised in Elk River and don't
want to see limited permits.
Jessie Hartung, Tipsy Chicken, stated he approached some local organizations but
there was no interest so he was looking at organization in/out of the city trade area.
Ryan Eason, Elk River Youth Hockey President expressed concerns regarding a
comment made at a previous meeting about creating a monopoly.
Councilmember Westgaard reviewed the history of ordinance amendments brought
forth by youth hockey and discussed the concerns of other organizations and with
being able to spend funds toward other community needs besides hockey.
Mr. Eason suggested removing the limit and approving permits on a case-by-case
basis.
Dave Williams, Youth Sports Commission and Elk River Football stated he would
be interested in a gambling license to operate pull tabs but has concerns with
investing in permits and training if he can't be guaranteed a location to operate. He
further stated youth baseball and basketball are interested in getting a gambling
license.
Former youth baseball president, Greg Loidolt, stated they are in the process of
getting a gambling license and expressed the same concerns noted by Mr. Williams.
Amy Berthiaume, Lions Club Gambling Manager, stated she would love profits to
stay in Elk River. She stated they operated at Tipsy Chicken but discontinued due to
profit losses. She further stated they have another location in Orono Township.
Councilmember Westgaard asked if there is a downfall to:
■ allowing one organization to have more permits.
• allowing more than one organization at one establishment.
Mayor Dietz stated he feels three permits are enough for one organization because
other organizations should be allowed an opportunity to obtain pull -tab permits. He
[�0'�EREI 1Y
NATURE]
City Council Minutes Page 7
October 7, 2019
-----------------------------
expressed concerns with profitability if there are two organizations competing at the
same location.
Councilmember Christianson questioned the benefit/loss on the city by allowing two
to three organizations at one establishment because competition would decide who
is profitable.
Councilmember Wagner concurred with Councilmember Christianson noting the
monopoly issue would work itself out. She stated an organization will discontinue
operations quickly if they are losing money. She questioned if there is enough space
for everyone to locate in Elk River knowing other organizations have a desire to get
gambling licenses. She stated she is hesitant to raise the limit from three but is not
opposed to revisiting this matter in 12-18 months in order to allow other
organizations a chance to get their permits.
Mr. Eason stated they are okay with the other youth sports getting a pull tab
operation and the Council denying youth hockey for that purpose if need be.
Councilmember Wagner stated it would be difficult for Council to pick based on
who they may like/dislike.
Ms. Allard noted a Council can't typically deny a request for a permit without having
valid findings for denial.
Mr. Hartung suggested after an organization has three permits, if they apply for a
fourth one, require them to wait 30-45 days in order to give an opportunity to
another organization.
Mayor Dietz stated he has concerns with competing organizations in an
establishment because they are both non -profits trying to raise money for good
causes for the community. He stated if youth hockey has three permits, why youth
baseball can't have one of their own versus having the two compete against each
other.
Mr. Eason expressed concerns with allowing competition because it could create
gambling issues with the gambling workers and the establishment employees. He
stated employees who have done gambling for a long time can drive more traffic to
their booth.
Mr. Williams stated he wouldn't go into a location if youth hockey was already
located there, expressing concerns with competition, which defeats the whole
purpose of why the funds are being raised.
Ms. Berthiaume stated the establishments liked the idea initially because they believe
they'll get more lease revenue, which is not true per state law.
PO/EAEE�I I
NAVRE
City Council Minutes
October 7, 2019
Page 8
Mayor Dietz stated the only way he could see allowing more than three permits to an
organization is if there is a process where other gambling organizations have an
opportunity first before youth hockey could be allowed a fourth location.
Councilmember Ovall stated pull tabs are more about convenience then the
organization and if you have some that are more assertive, then by default the other
organizations can't get established. He suggested the city set a limit, and then if a
need can't be met for an establishment, city staff provide them a list of the
organizations they are required to contact first. If those organizations don't have any
interest, then open up the number of permits allowed to that first organization.
Council questioned if the city had the authority to limit permits to organizations with
the corporate headquarters in Elk River versus the trade area and suggested checking
with the city attorney.
Mayor Dietz made note the Zimmerman Fire Relief Association donates a lot of
money in the Elk River area.
Councilmember Wagner noted this would come back to another work session for
further discussion.
10.2 Special Events: Road Closures and General Fees
Ms. Allard outlined current city process and noted staff is looking for policy
direction on the questions outlined in the staff report.
Chief Nierenhausen stated conditions added to a permit are not being followed by
applicants. He stated some races can be more challenging than others and he has a
difficult time covering shifts and overtime costs to staff races.
Mr. Femrite stated staff can take on any event but questioned how much staff
resources Council expects and whether there should be fees for time and equipment.
Councilmember Wagner noted she plans events and it is not normal practice to
provide bleachers and port -a -potties for an event.
Mr. Femrite noted further that some of these requests come last minute and are not
part of the original application.
Debbie Rydberg, Chamber representative stated events have a place in the
community and there is an expectation that the only people who have the services
can provide them. She stated part of the challenge with races is there is difficulty in
choosing where in Elk River they can occur due to the city's unique geography (with
the highways and railroad). She stated it is impossible to force runners to stay on a
sidewalk and using public infrastructure shouldn't be a major concern. She addressed
the comment in the staff report about limiting use of Main Street stating people run
City Council Minutes
October 7, 2019
Page 9
and drive on the road all the time so there should be no issues with holding a race on
it as it is a public street.
Chief Nierenhausen stated once the city approves a permit, it has a legal obligation to
make sure it is completed in a safe manner noting an attorney opinion on liability. He
stated staff has tried to steer races to other locations but applicants typically have no
interest in moving as they want to be in downtown. He stated he would like to limit
races to certain locations.
Staff questioned the balance of time and resources that should be provided to an
event and asked for Council direction on policy.
Mayor Dietz stated there shouldn't be races on Main Street any time of year due to
safety concerns.
Council discussed the following:
• What would be considered beyond typical service levels to Council.
• What would be considered billable and what should be part of city service.
' Should there be predesigned signature routes with differing tiers of service
and costs.
■ Assigned routes could assist in making budgeting priorities for trail
connections in the future.
* Legalities of race marshals.
■ The economics of what events/races bring to the community.
Ms. Rydberg stated it would be helpful to nonprofit organizations to know the
expenses ahead of time so they can prepare their budget.
Mr. Sevcik discussed the uniqueness of each event and the levels of service
requested.
Council directed staff to work up planned race routes with a menu of service/cost
options.
10.3 169 Redefine Update
Mr. Femrite presented the staff report. He reviewed concepts and discussed impacts,
value engineering, and how the current plan came to fruition over the last 6 months.
Councilmember Wagner expressed concern with removal of the pedestrian bridge
and didn't feel the proposed movements on Main Street would be safe enough for
kids trying to cross the highway.
Council noted this draft plan highlights fewer impacts to homes and businesses then
they expected.
P0NERf0 01
NA #iURE
City Council Minutes
October 7, 2019
Page 10
Senator Mary Kiffineyer noted the plans aren't final and expressed concern with
closing the Line Avenue access on Main Street and the area businesses but she would
like to see a larger map highlighting the impacts. She asked Council how the city
would survive during construction and how the side roads would handle traffic.
10.4 Sewer Service Extension Outside of Urban Service Area
Mr. Femrite presented the staff report outlining the policy questions to be
considered. He discussed the request from Windsor Park 3rd Addition residents
wanting to consider sewer service extension to their neighborhood. He stated a
feasibility study is needed and would cost about $9,000. He discussed the differing
funding options.
Mayor Dietz questioned whether everyone in the development would agree to the
extension and its payment.
Mr. Femrite stated Council could offer up the ability to utilize the 429 Assessment
Process and those who are opposed could appeal their assessment at that time.
Mayor Dietz asked about the cost of hiring someone to show benefit if there are
appeals.
Mr. Femrite stated Council could decide not to move forward with the assessment if
they feel there are too many appeals. He further stated if Council is comfortable with
moving forward a solution could be worked out to have the development cover the
cost of the appeals. He stated utilizing this process puts the city in the position of
looking like the bad guy when really it would be the conduit to help the development
out of their situation.
There was discussion about whether water hookup should be required but staff
noted it should be on a case-by-case basis depending on certain factors, such as
costs, need, and distance from urban service district.
Mr. Femrite explained typical ownership of a city collection system versus a private
system. He stated he would review these differently because it isn't a conventional
system the city maintains and therefore there are no engineering standards for them.
He stated in this case he would recommend public ownership start at the connection
where their treatment plant is located and the homeowner's association would own
the existing collection system pass their properties.
Councilmember Westgaard stated this seems to be a reasonable request and there is
some logic to expanding the sewer beyond the current urban service district, noting
it's not a leap frog jump like some other developments may fall into. He stated he'd
like to see the cost estimates for the homeowners.
Poll ERE 1 A Y
NATURE
City Council Minutes
October 7, 2019
Page 11
Mayor Dietz stated he has no issues as long as the development is willing to pay for
the study. He stated the 429 Assessment Process would be fair and the city could
structure the bond and payments for them.
Council consensus is to move forward with the feasibility study as long as the
Windsor Park Yd Addition development pays for it.
10.5 Sidewalk Plowing
Mr. Femrite presented the staff report.
Council consensus is to change city ordinance to allow the community 48 hours to
clear sidewalks. Council directed staff to record costs, equipment, and manpower
needs so they can evaluate, next spring, whether to have city staff plow all sidewalks.
10.6 Direction on Code Enforcement Procedures
Mr. Portner presented Mr. Carlton's staff report. He questioned if Council would
you like to continue with fine or increase additional fines for failed compliance or
push for prosecution, which often times can remedy issues quicker. Utilizing the
fines we can assess back to the property owner the 429 process.
Councilmember Christianson noted the city pays with either option.
Mayor Dietz stated it would be nice to recoup some of the costs.
Mr. Portner questioned if Council would consider a fine for each trip made by the
code enforcement officer to a property.
Councilmember Wagner stated she is uncertain and felt it was part of the code
enforcement officer job description.
Council consensus is to increase the fine amounts and continue with 429 process if
not paid.
10.7 Park Shelters Roof Color Branding
Mr. Hecker presented the staff report.
Councilmember Wagner stated she would like the roof color to be consistent among
all shelters in the city as noted in previous meetings. She reviewed research she
completed of other facilities with the similar look of the red roof, black posts and
stone columns.
Councilmember Westgaard concurred stated he felt strong about having continuity
with branding.
PBwERE6 B1
I'r�ATURE
City Council Minutes
October 7, 2019
Page 12
Councilmember Christianson disagreed believing red should be for social, active
parks and a natural color for passive parks.
Mayor Dietz stated he is open to all colors and noted three Councilmembers would
like to have the red roof; thereby reaching a consensus of the Council.
10.8 Senior Activity Membership Fees
Mr. Benoit presented the staff report.
Council believed non-residents should pay a higher membership fee.
Councilmember Christianson questioned if the city is not enforcing membership for
residents currently and everyone is paying sales tax and property taxes, why charge a
membership fee.
Mr. Portner stated the sales tax is for building construction and not the operation,
noting the goal is to have the operation pay for itself. He stated this is a Special
Revenue Fund and taxpayers only pay for major capital items such as a roof
replacement.
Mayor Dietz noted seniors stated they would be willing to pay a fee in order to get a
new facility.
Councilmember Westgaard stated residents are paying for operations through their
property taxes and questioned if the separation between resident and non-resident
fees is enough to make up for those not paying property taxes. He also noted the fee
recovery doesn't offset the full operational expense difference.
Mr. Portner noted there will be some tax savings due to less staff being needed
onsite so the operational costs are expected to decrease. He also noted the user
demographics may change accounting for more fees or program changes.
Councilmember Wagner stated the annual fee seems reasonable and questioned he
tolerance threshold before people decide it's not worth it.
Council consensus is to start the new fees in January 2021 allowing for a free trial
period for 4th quarter of 2020 once the facility opens up.
II. Adjournment
There being no further business, Mayor Dietz adjourned the meeting of the Elk
River City Council at 11:21 p.m.
� 0 W E 8 E I IY
NATURE
City Council Minutes
October 7, 2019
)Jn J. ietz, yor
l
Tina Allard, City Clerk
x
Page 13
rpONEAEI 81
INATUR