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11-18-2019 CCMMeeting of the Elk River City Council Held at the Elk River City Hall Monday, November 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, Planning Manager Zack Carlton, Parks and Recreation Director Michael Hecker, 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 6:58 p.m. by Mayor Dietz. 3. Consider Agenda Moved by Councilmember Westgaard and seconded by Councilmember Christianson to approve the agenda. Motion carried 5-0. 4. Consent Agenda Moved by Councilmember Wagner and seconded by Councilmember Ovall to approve: 4.1 November 4, 2019, Minutes 4.2 Check register, check numbers 112509-112681 as outlined in the staff report. 4.3 Resolution 19-55 designating polling places for the 2020 Presidential Primary, State Primary, and State General Election. 4.4 Pay estimates as outlined in the staff report. 4.5 Resolution 19-56 authoring a transfer from the General Fund to the Capital Outlay Reserve Fund. 4.6 Resolution 19-57 making Findings of Fact and denying the Conditional Use Permit request by Mary Ziner for a private kennel at 617 Gates Avenue NW in the City of Elk River. 4.7 2020 Capital Improvement Plan as outlined in the staff report. 4.8 Resolution 19-58 levying assessment for abatement of city code violations. 4.9 Resolution 19-59 levying assessment for unpaid garbage collection services. Resolution 19-60 levying assessments for unpaid sewer services. Resolution 19-61 levying assessments for unpaid stormwater utility fees. City Council Minutes Page 2 November 18, 2019 ----------------------------- 4.10 Resolution 19-62 levying assessments for unpaid water utility services. 4.11 Resolution 19-63 levying assessments for unpaid electric services. Motion carried 5-0. S. Open Forum John Finch, 18047 Concord Street, expressed concerns with hunters and safety in Oxbow Park near the W.H. Houlton Conservation Area. Councilmember Christianson stated he walked through the park with the police chief and noted there are very small park boundary signs which may be misleading. Mayor Dietz stated he received an email from the police chief which noted there are some discrepancies with city ordinance. He stated the chief will bring this back to Council for review by spring. Mr. Portner stated staff will bring the item back for review at a work session meeting. Mayor Dietz asked staff to contact Mr. Finch so he can be at meeting. 6.1 City of Elk River Volunteer of the Month Mayor Dietz presented the November Volunteer of the Month award to Mike Beyer. He highlighted the following: • Citizen led Independence Day celebration • Hockey Day, Minnesota volunteer CAER volunteer: pub crawl and No -K • Past commander of American Legion, chairperson for 10Wh birthday event, Legion baseball • Member VFW and Eagles Club 6.2 Inside Elk River Videos Council drew duties for job assignments as part of the Inside Elk River video series. 7.1 Interim Use Permit: Indoor Storage for Sun Rae Apartments, LLC 17354 Zane Street Mr. Carlton stated the applicant withdrew his application. 7.2 Ordinance Amendment: Auto Sales in Focus Area Study — The Point (A) Zoning District Mr. Carlton presented the staff report. p a W f A€ 1 I T NATUREI X City Council Minutes November 18, 2019 Page 3 Councilmember Christianson questioned how long the property has been empty and whether there is a need for high density residential. Mr. Carlton stated there have been a few applications from the applicant for residential uses. He stated there were issues with park dedication and trail easements, but not the land use. Councilmember Christianson expressed concern with the property sitting vacant for over 10 years. He stated this applicant has an interest to develop the property, which would provide tax revenue to the city. He expressed concerns with the property costing the city money due to the use of police resources being called out to a vacant site. He questioned the need for high density residential when there seems to be no developer interest. He stated the proposed use for auto sales would better the community. Mr. Portner stated staff can pull together the police report data. It was noted property taxes are still being paid for the site but at a substantially lower value. Mayor Dietz stated the applicant had choices on what he could do with the property and he could come back again with a high density residential project. Councilmember Wagner asked for clarification on the zoning amendment. Mr. Carlton stated the applicant is asking to amend a sub -zone within the Focused Area Study so only the five parcels outlined in the staff report are affected. Mayor Dietz opened the public hearing. Virginia Olsonoski, 17201 Yale Street, stated most of the residents in her neighborhood do not want the auto sales allowed. She stated, according to the Highway 10 development plans, the access may be closed and it doesn't make sense for a car dealership and traffic routing. Mr. Carlton noted the study by MnDOT hasn't been completed and doesn't clearly outline which access points will close but planning is based on an assumption that if an interchange is put in further south, the access points would close. Gregg Raton, Mainly Details Architectural Design, PLLC in Golden Valley,, stated the structure is in great shape and using it for the same purpose it was at one time would be a good fit. He stated if the property stays high density housing it would have the same traffic impacts as a car dealership but timing for traffic patterns would be different. NATURE City Council Minutes November 1 S, 2019 Page 4 Marla Briggs, Briggs Companies, stated she gets an average of two or three calls per month from people who want to use the site for auto sales. She expressed concerns with safety due to the building being vacant and defaced. Kelly Gunderson 17432 Zane Street, stated he is in favor of a car dealership because he is concerned for safety and a criminal element with a vacant building. Pat Briggs, Briggs Companies, expressed concerns for criminal activity at the site and cited examples. He further stated, referring to a newspaper article, he came to Council on May 15, 2015, regarding the land use for this property and Mayor Dietz at that time was in favor of moving forward with the Skeeter Boat project because the area was blighted. Mayor Dietz closed the public hearing. Councilmember Ovall stated he realizes the importance of a long-term vision for the city but expressed concern as to what cost. He thought there may be more challenges with redeveloping the site versus utilizing the existing structure. He felt the vacant building is a drain on the city budget from a safety standpoint. Councilmember Ovall stated the auto sales use would be of minimal investment for the developer, help create jobs, increase safety, remove blight, and enhance the value of the property, and therefore would improve the tax return without any tax increment financing funding. He stated he sees the merit of both options but leans toward making a concession to the applicant as it would be a faster fix and faster return to the city. Councilmember Christianson stated that auto sales is a logical use of the property. Councilmember Westgaard disagreed stating because auto sales may have been a logical use a decade ago, doesn't mean it's the right use now. He stated the Focused Area Study explains why the property is guided for high density residential and the long-term planning for the greater area. He stated traffic from this property would have to travel down to the Broadway Pizza access with additional access points to Highway 10 being closed. He discussed the bluff river view advantage. He noted Council has wanted and known of the guidance for this property since 2010. He stated Council shouldn't change plans and discard all of the time and effort put into the Comprehensive Plan because activity doesn't happen quickly. Councilmember Westgaard stated the developer could prepare the site for high density residential by taking down the building and making it shovel ready if he feels the existing lot and building are an issue. He further noted the city nuisance ordinance could be implemented if the building is a drain on city resources. He stated the applicant had a high density project a few months ago and he is puzzled by the change. He stated he is not in favor of auto sales because it is not the best use and intent of the property. He stated it is not consistent with what the City Council has guided for the area. He stated the applicant has had plenty of opportunity to develop the site for the correct use and still believes it is a viable option. � OtiIAEI er INI ATUR City Council Minutes November 18, 2019 Page 5 Councilmember Ovall stated usually high density is located closer to walkable areas and amenities. He further stated the nuisance abatement is an interesting option but could be an administrative burden. Councilmember Wagner stated she thought everything with the previous high density residential project was heading in the right direction and was surprised it changed and felt it was the better use for this location. She stated having the river amenity behind a high density complex creates opportunity for human interaction to use the bluff and river versus a car dealership, noting it is a great gateway for pedestrian traffic along the river front. Councilmember Wagner stated the larger issue is the nuisance of the building. She suggested working together to find a way to prep the site and make it shovel ready. She stated planning for this area has been in place for a decade and she can't support the amendment. She expressed concerns and further questioned the city attorney about the compatible uses of auto sales in a residential area and setting a precedent with changing the zoning. Attorney Beck stated the city wouldn't get stuck with setting legal precedence in this situation as they would if they were to change a citywide zoning district but it would make it more difficult for Council to make decisions in the future. He is very concerned about subverting the planning process with the application for a text amendment for a limited area versus applying for a comprehensive plan amendment for a rezoning. He noted there could be similar requests in the future that would blur the lines for Council. He expressed concerns with the position Council would put them into but noted it is a policy issue and he has no feeling either way regarding the land use. Mayor Dietz noted the applicant purchased this property in 2014 when it was zoned C3. He stated Council rezoned it in 2016. He asked staff for clarification on the history of this property in regards to zoning and what it could be used for during the time it sat empty. Mr. Carlton stated C3 is highway commercial and allowed for broad commercial uses and auto dealerships would have been an allowed conditional use. Mayor Dietz clarified the zoning for the Skeeter boat project was C3 and would have been allowed to go in at the time. He stated that project was brought to Council prior to the Focused Area Study rezoning approval. Mr. Carlton noted this was correct. Mayor Dietz stated Mr. Briggs had the opportunity and could have chosen to make the property an auto sales business when it was zoned C3 between 2014 and 2016. Mayor Dietz stated he concurred with Councilmember Westgaard's comments and the city attorney concerns and he is not in favor of the amendment. Moved by Councilmember Westgaard and seconded by Councilmember Wagner to direct the preparation of findings of fact denying the proposed p0■ERE1 HT N" ATURE City Council Minutes November 18, 2019 Page 6 ordinance amendment as the use is not consistent with the Comprehensive Plan. Motion carried 3-2. Councilmembers Ovall and Christianson opposed. 7.3 Ordinance Amendment: Nuisance Ordinance Update 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 Christianson and seconded by Councilmember Westgaard to adopt Ordinance 19-20 amending Chapter 46, Nuisances, of the City of Elk River, Minnesota, City Code. Motion carried 5-0. 7.4 2020 Master Fee Schedule Ms. Allard 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 questioned the Sewer Access Charge and how Elk River compares to other communities stating developers feel the fee is too high. Mr. Portner stated he could bring forth more information at a future meeting. He stated every city is in a different position with their fees depending on how their water system is structured. He stated the SAC fees reflect the cost of reconstruction and bonding due to the upgrade of $17.5 million for the wastewater treatment facility. He stated new capacity is paid for by new people coming into the system and not by current users who already paid their share. Councilmember Ovall expressed concerns with attracting business if Elk River's fees are higher than a peer city. Mr. Portner stated the cost has to be paid by someone and it would then go to the tax payer, which may not be a favorable option for attracting business either. Councilmember Westgaard stated this is a policy discussion for a future work session meeting. He suggested setting the fee and Council could revise it at a later date. Councilmember Ovall concurred. Council discussed the importance in reviewing the fee, peer cities, determining when to subsidize a fee, and having a plan in place so they can explain why and how they set the fee. rNATURE City Council Minutes November 18, 2019 Page 7 Mr. Portner noted Elk River Municipal Utilities is currently undergoing a rate study for their capital and the city recently completed a sewer study. He stated the fee increase is based on the results of the study. Councilmember Ovall stated he doesn't have an issue with increasing the fee based on the study/methodology. Considering the big picture, he suggested this may be an Economic Development Authority program. Moved by Councilmember Christianson and seconded by Councilmember Ovall to adopt Ordinance 19-21 adopting the 2020 Master Fee Schedule of the City of Elk River, Minnesota, City Code. Motion carried 5-0. Moved by Councilmember Wagner and seconded by Councilmember Ovall to adopt Resolution 19-64 for summary publication of Ordinance 19-21 adopting the Master Fee Schedule. Motion carried 5-0. Council recessed at 8:11 p.m. in order to move to work session and reconvened at 8:16 p.m. 9.1 Concept Review: Planned Unit Development for 32 Single Family Lots Mr. Carlton presented the staff report for Mr. Leeseberg. There was discussion about the roads and parking and it was noted there is about 35 feet of frontage for each lot. Mayor Dietz questioned why this developer should have more of an advantage over the neighboring developments when they are all zoned the same. Greg Peterson of Prime Investment Group, Inc , stated it was all about money because it is a function of how much can we pay for land versus how much it costs to develop it. He stated if Council says no they'll try to renegotiate their contract with the seller. Councilmember Christianson questioned the point of having ordinances if Council doesn't follow them. Councilmember Westgaard stated the city gets asked these questions all the time and Council needs to provide direction to staff. He stated he understands some of the requests are market driven, but the Council needs to be consistent with neighboring developments. He stated he has seen too many neighborhoods with the common issues for smaller lots and narrower streets, then year's later people come back and complain to the city and the developer is no longer around. Councilmember Ovall further expressed concerns with Wapiti park camper traffic on the road. pa■IaII 84 NATURE City Council Minutes Page 8 November 18, 2019 Council consensus was to keep the area to a minimum of 80 -foot lot frontages. 9. LA Copart Land Swap Mr. Carlton presented the staff report. He noted they came in with an application to extend their operation. He stated the city owns an adjacent triangular parcel of land and there would have to be two driveways extended across the party. He stated the Council could consider a land swap of 14.5 acres. It would help to make the Copart footprint smaller and more compact with one access off of 161" Avenue and the city piece could be used for the expansion of the Youth Athletic Complex (YAC) or for a separate industrial user. He stated the city property is somewhat isolated with no direct connection to a city street, but with the swap it would have access onto 1634 Avenue. He further stated Copart may be interested in the entire city parcel. Councilmember Wagner expressed concerns with beautification next to the railroad line. Councilmember Westgaard questioned if the new "U' shaped parcel lend itself to a better utilization of additional facilities for YAC and suggested further review. Council directed further exploration. 9.2 Gambling Ordinance Amendments Ms. Allard presented the staff report. Councilmember Wagner stated she'd like to change the trade area by removing the cities of Zimmerman and Rogers, but to grandfather the VFW and the Zimmerman Fire Relief from having to meet this requirement for their current locations. Mayor Dietz concurred. Dennis Maddox Commander of the Elk River Rogers VFW, expressed concerns with whether his organization would meet the 75% requirement because the also have expenditures in the Rogers area. Tom Nichols, VFW, explained the history of the organization and how their corporate offices ended up in the City of Otsego. He further noted their youth programs are within the school district. Mayor Dietz questioned the VFW representatives as to how much they contribute to the Rogers district and whether it could come from the 25% remaining of their lawful expenditures. Mr. Maddox stated he was unsure but thought it could work. He stated a majority of their money is invested in a veteran's memorial sports complex in Otsego because it NATURE -1 City Council Minutes Page 9 November 18, 2019 was the only location they could find enough land to support the entire school district. Councilmember Westgaard expressed concern with adversely affecting the organizations support of youth programs and would like to exemption currently operating organizations. Mayor Dietz stated he would like to limit permits to organizations located in Elk River but grandfather in the VFW and the fire relief for their current locations. Councilmember Westgaard discussed the number of permits one organization can have and the issues it has created in the past. Mr. Portner confirmed Council would want to grandfather the VFW from meeting the new trade area requirements and still be able to make disbursements in Rogers and Zimmerman if it is legal to allow. Staff noted this would need to be reviewed. Council noted Rogers's schools are part of ISD 728 and questioned whether these expenditures would qualify as part of the city trade area requirement. Mr. Maddox further noted they donate to police and fire departments in the current ordinance trade area communities. Council consensus was to: ■ limit permits to Elk River organizations • grandfather in the VFW and Zimmerman Fire Relief ■ limit permits to up to 3 per organization with a waiver process if someone wants additional permits Attorney Beck stated the city could have a process where staff sends a letter to the other organizations in Elk River if an organization wanted to apply for a fourth permit. Amy Berthiaume, Lions Club Gambling Manager, expressed concerns with the time period and making organizations and a business establishment wait. 9.3 Naming Rights Consulting Services Request for Proposal (RFP) Mr. Hecker presented the staff report and reviewed the PFP. Councilmember Wagner stated the proposal seems similar to Mr. Staley's proposal. She questioned why there are two phases and believes some of the work under Phase 1 could be done by staff. She further stated is should be one proposal and was questioning if two different groups would do the phases. P0111OEO Br NATURE City Council Minutes November 18, 2019 Page 10 Mr. Portner stated Phase 1 is setting up the cost matrix for sponsorships, then taking that data and utilizing it in Phase 2 to sell/market the sponsorships. He noted, for the sponsors, there would need to be statistics to support the funds collected each year. He stated they could add language stating one firm is required to complete both phases. Councilmember Ovall suggested removing the list of itemized expenses and let the firm determine what those costs would be versus giving them ideas in items to charge back. Council concurred one firm should be required to do both phases. Councihnember Ovall expressed concerns with paying a consultant a lot of money without warranties if they fall through with being able to deliver what was promised in sponsorships. It was noted Council can reject proposals if they are not happy with them, but it wouldn't hurt to send the RFP out to see what it generates. Councihnember Christianson questioned if staff has engaged any interest to area businesses regarding naming rights of the multipurpose facility. Councilmember Wagner stated a business owner is not going to commit unless they see the metrics. Mr. Portner stated he has mixed feelings about sponsorships because not many city facilities are named, but he doesn't know if they are not named because cities don't seek it out or if there is generally not any interest by the area businesses. He discussed past fundraising efforts and noted Elk RiverFest didn't generate a great amount in donations. He further discussed The Taste of Elk River and Hockey Day Minnesota. 9.4 Advisory Boards and Commissions Mr. Portner presented the staff report. Heritage Pivservation Commission Councilmember Wagner stated there has been a lack of substance to these meetings noting the group talks but doesn't follow through. She further noted missed conferences. She questioned if this group could be tapped into other projects. Councilmember Westgaard suggested merging the work of this group into the Planning Commission. rIIERII I NQTUR City Council Minutes November 18, 2019 Page 11 Mayor Dietz further noted lack of attendance and quorum issues. He stated members need to lead the charge. He liked the idea of moving the work to the Planning Commission. He further suggested a task force when work may be needed. Mayor Dietz suggested inviting the members to get their feedback. Mr. Portner understands from Council that they want to discuss the long-term viability of Commission. Librm Board Mr. Portner outlined the duties of the Library Board. Mayor Dietz stated much if their work could be moved to the Parks and Recreation Commission and noted one board member questioned the own purpose. Councilmember Ovall stated the meetings do not stay on task related to the building and grounds maintenance Council would like the members invited to a future meeting for discussion. Ice Atrna Commission Mr. Portner explained the history of this commission when the arena transitioned from the school to the city. He stated with the new facility construction and the change to multiple uses, the commission should be evaluated. Councilmember Westgaard outlined current duties of the commission such as ice rates, concessions, capital improvement projects, and budget. Mr. Portner suggested putting this group under the Parks and Recreation Commission with feedback from the various association groups. Councilmember Wagner expressed concerns with eliminating all of board and losing the feel of community input. She questioned staff decisions versus boards for the multipurpose commission. Mr. Portner stated the Parks and Recreation Commission could oversee facilities. He noted the Commission has changed allocation funding and need to work on a plan outlining priorities. He stated there could be representative members from other groups such as seniors and the representation would be broad versus arena commission members. Councilmember Westgaard expressed concerns with merging the multipurpose facility needs into the Parks and Recreation Commission noting they get too focused on trails and playgrounds. He expressed concern with repeating past history as this Commission didn't look at this facility when it needed to be evaluated many years POwEAEO INAYURE City Council Minutes November 18, 2019 Page 12 ago. He noted the facility will be self-sustaining and revenue generating. He agreed the current Arena Commission would work for the new facility and suggested re- drafting their mission and purpose and expanding membership. He noted there would be interaction with the school district. Mr. Portner stated the Parks and Recreation Commission wasn't given the direction to oversee other facilities. He further noted the makeup of the commission has changed. 10. Adjournment There being no further business, Mayor Dietz adjourned the meeting of the Elk River City Council at 10:06 p.m. VI. J n J Dietz, Mayor Tina Allard, City Clerk p0WEAEB Y1 NATURE