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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