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06-01-2020 Regular CCMMembers Present: Members Absent: Meeting of the Elk River City Council Held at the Elk River City Hall Monday, June I, 2020 Mayor John Dietz, Councilmembers Garrett Christianson, Nate Ovall, Matt Westgaard, and Jennifer Wagner None Staff Present: City Administrator Cal Portner, City Attorney Peter Beck, Planning Manager Zack Carlton, Environmental Coordinator Amanda Erickson, Stormwater Coordinator Brandon Wisner, Public Works Direct/Chief Engineer Justin Femrite I . Call Meeting to Order 2. 3. 4. 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. Pledge of Allegiance Pledge of Allegiance was recited. Consider Agenda Moved by Councilmember Ovall and seconded by Councilmember Wagner to approve the agenda. Motion carried 5-0. Consent Agenda Moved by Councilmember Westgaard and seconded by Councilmember Wagner to approve: 4.1 May 4, 2020, Regular Meeting Minutes. 4.2 Check register as outlined in the staff report. 4.3 Ordinance 20-05 Amendment: Chapter 10, Section 10-36 Violations; Penalty. 4.4 Tax Forfeiture Resolution 20-26. 4.5 Hire Seth Calvin as IT Manager. 4.6 Ordinance 20-06 Amendment: Add Multipurpose Facility Advisory. Commission; Delete Ice Arena Commission. 4.7 Sherburne County All -Hazard Mitigation Action Plan Resolution 20- 27. 4.8 Fire Department Position Descriptions. 4.9 Liquor License Renewals 4.10 Platted Exemption: Clark Second Addition Resolution 20-28. June 1, 2020 Motion carried 5-0. S. Open Forum No one appeared for Open Forum. 6. Presentations, Awards, and Recognition There were no Presentations, Awards, and Recognitions. 7.1 CommonBond Elk River Housing Limited Partnership a. Land Use Amendment: Highway Business to High Density Residential b. Comprehensive Plan Amendment: 60-Unit, 3 Story Apartment Building c. Conditional Use Permit to Establish a Planned Unit Development d. Preliminary Plat for Elk Ridge Center Sixth Addition Mr. Carlton presented the staff report. The public hearing was opened at the May 18, 2020 city council meeting. The applicant requested that the public hearing be continued. Moved by Councilmember Westgaard and seconded by Councilmember Wagner to continue the public hearing to July 6, 2020. Motion carried 5-0. 7.2 Tall Pines Second Addition a. Zone Change: Business Park to Planned Unit Development b. Conditional Use Permit for a Planned Unit Development c. Preliminary Plat of Tall Pines Second Addition Mr. Carlton presented the staff report. Mayor Dietz opened the public hearing. Patrick Kelly, attorney representing Roger Derrick, stated there was a demand for residential property and that this property has been vacant since it was zoned. The client is ready to proceed with development. Roger Derrick, the applicant, addressed the concern about only 10 feet between buildings, stating that it was a tradeoff to having windows on all sides and no shared walls. The buildings will be more like single family homes. Jill Larson -Vito, Chair of the Planning Commission, said that a main point that the Planning Commission had brought up was the move from industrial the high density residential and the potential impact if future developments should be noisy or noxious. p 0 W I R E I 1 1 NATURE June 1, 2020 Mayor Dietz closed the public hearing. Mayor Dietz asked about screening of the industrial area abutting the proposed residential area. Mr. Carlton stated there was tree screening between the two but there could still be noise or odors if there was a different industrial usage in the future. Mayor Dietz asked if there is any way to inform residential property owners that the industrial area was there first and, therefore, took precedence. Mr. Carlton suggested language could be incorporated into the Home Owners Association (HOA) bylaws so that any future buyer would be made aware of the location. Mr. Derrick agreed that a statement could go into the HOA documentation which needs to be signed by any buyer. Councilmember Westgaard agreed that his biggest concern was the location sandwiched between an industrial and a business park. Other businesses were there first and this information needs to be clearly communicated to potential buyers. Councilmember Wagner reiterated Councilmember Westgaard's concerns and asked how much of the existing tree line they were hoping to keep. Mr. Derrick stated that their intention was to work with the topography to keep as many trees as possible. Councilmember Wagner would like to encourage pedestrian use and make it safe. She feels that the proposal matches the comprehensive plan. Mr. Carlton addressed the sidewalks. The trail on the east goes to Twin Lakes Rd but the one on the west would only be on this property. An extension may be included on the Line Ave project in the future. Mayor Dietz asked about potentially rezoning the nearby vacant parcel. Mr. Carlton agreed that is something that could be looked at in the future. Councilmember Ovall asked about the flexibility of a zone change. City Attorney Beck stated that re -zoning is a legislative decision and there must be a resolution with findings of fact outlining specific reasons for denial. Councilmember Ovall addressed concerns he has with putting a residential area among businesses that are doing well. He felt that citizens have historically had a P0VEAE6 6V NATURE June 1, 2020 larger say in issues than businesses and that the proposed plan was directionally inconsistent. Councilmember Westgaard agreed that businesses should have a say, if issues arise, as much as residents and it's important that a future council convey this story. Moved by Councilmember Westgaard and seconded by Councilmember Wagner to approve the zone change from Business Park to Planned Unit Development (PUD). Motion carried 5-0. Moved by Councilmember Westgaard and seconded by Councilmember Wagner to approve the Conditional Use Permit establishing a residential Planned Unit Development PUD), with the following conditions. 1. A PUD Agreement shall be developed and signed by both parties prior to issuance of a building permit. 2. A permit from Sherburne County is required for work adjacent the Twin Lakes Road (CSAH 13) and for connection to their stormwater system. 3. Streets and access must comply with MN State Fire Code Chapter 5 and Appendix D. 4. Provide detail connections to sewer and water systems and ensure the waterrnain is looped. 5. Staff approval of all site, utility, engineering, and landscaping plans. 6. Approval of a parking diagram illustrating a minimum of 1 off-street (Public ROW) parking space per two units. 7. Hydrants must be spaced to ensure all portions of a residence are within 250 feet of a hydrant. 8. Wetland setbacks shall be consistent with the site plan dated 6-7-2019. 9. A homeowner's association must be established, subject to review and approval of the city attorney, and shall be responsible for all, landscaping, snow clearing, and regular maintenance of private drives and driveways. 10. Submit an updated landscaping plan showing additional screening along the north property line. 11. Submit elevations of townhome exteriors which demonstrate variation in building materials. Twenty five percent of the front building fagade shall have an exterior finish of brick, stucco, or natural/artificial stone. 12. Adjacent homes shall not be the same color. 13. Provide a trail connection from the end of the private cul-de-sac to the trail along the west side of Twin Lakes Road. 14. No more than two of the same facade design/details shall be adjacent to one another. 15. Mailboxes shall be clustered and located on the private street. Motion carried 5-0. Moved by Councilmember Westgaard and seconded by Councilmember Wagner to approve the Preliminary Plat of Tall Pines Second Addition PUD. 1. The preliminary plat shall include right-of-way dedication for the cul-de- sac on Line Ave. P0VEeEI I NATURE June 1, 2020 Motion carried 5-0. 7.3 Preliminary and Final Plat: Eagles Marsh Fourth Addition, Phoenix Enterprises 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. The Council agreed that many things, including utilities and hydrants, would need to be moved in order to put the sidewalk on the south side. Mr. Carlton confirmed that the Planning Commission had not realized this during their discussion. Moved by Councilmember Wagner and seconded by Councilmember Westgaard to approve the Preliminary Plat for Eagles Marsh Fourth Addition, with the following conditions. 1. Pedestrian ramps must meet current ADA standards, including landings and truncated domes. 2. Access to 17760 Lincoln Street must be maintained during construction. 3. Staff approval of all site, engineering, and utility plants. 4. Removed. 5. All homes are required to have two trees in the front yard per ordinance. 6. All mailboxes shall be clustered. Motion carried 5-0. Moved by Councilmember Wagner and seconded by Councilmember Westgaard to approve Resolution 20-29 approving the final plat for Eagles Marsh Fourth Addition with the following conditions. 1. A Development Agreement must be signed by the city and developer prior to releasing the final plat for recording. 2. Water Availability Charge shall be paid in the amount required by the city when the Final Plat is released for recording (currently $368/plumbing unit). 3. A Letter of Credit shall be provided to the city in the amount of 100% of the costs of public improvements. 4. Upon completion of all improvements and acceptance by the city, a security or warranty in the form acceptable to the city engineer must be secured. 5. Development Plan shall be approved by the city engineer prior to issuance of building permits. 6. Any item or condition found that indicates the site is likely to yield information important to pre -history or history shall be reported to the city immediately. Further, the city reserves the right to stop work authorized in P 0 w E A E 0 0 1 NA URA June 1, 2020 its approval until the site is appropriately investigated and work is authorized. Motion carried 5-0. Moved by Councilmember Wagner and seconded by Councilmember Westgaard to approve the Development Agreement for Eagles Marsh Fourth Addition. Motion carried 5-0. 7.4 Easement vacation: Twin Lakes Road & 175th Ave, Community Housing Development Corporation Mr. Carlton presented the staff report. Mayor Dietz opened the public hearing. The applicant requested to continue the public hearing for Easement Vacation to June 15, 2020. At the July 6, 2020 meeting, further discussion would be held on the Proposed Use of Tax Increment Financing and the state funding application. Moved by Councilmember Westgaard and seconded by Councilmember Christianson to continue the public hearing to June 15, 2020. Motion carried 5-0. 7.5 Public Improvement Hearing for the Lake Orono Restoration and Enhancement (LORE) project Mr. Wisner and Ms. Erickson presented the staff report. Luke Lunde and Laura Cummings from WSB and Associates, were in attendance. Mayor Dietz opened the public hearing. Mr. Portner read a statement submitted by Bob Dilly,12943 Orono Rd NW. Mike Boelter,13897185'' Ave NW, opposed the project questioning the bidding process, the cost, and the benefit to his property. Council responded that the map was determined by the Department of Natural Resources (DNR) and the city has been following DNR guidelines. Not every property will see direct benefit because of the project budget. Mr. Boelter asked the city to look into charging people to use the lake. City Attorney Beck stated it is a public water way and fees are not possible. City Attorney Beck stated the item before the council was to take testimony on whether to proceed with the project. A future hearing would be an opportunity to request to be taken out of the assessment. P 0 1 E I E I IV NATUREI June 1, 2020 Joe Walters,13038 Island View Dr NW, asked why the fish stick structure had been removed. Mr. Wisner explained the fish stick structure was modified to allow for boat traffic and promote habits on the lake. Mr. Walters asked, if the bids came in low, would they be able to afford to take out more of the sediment that may benefit more areas of the lake. Mr. Lunde responded that was a possibility contingent on amending permits with the DNR. Christine Cox, 1836 Main St, was in favor of the project stating improving the lake would be a benefit for the entire community. Mr. Walters returned and asked if the new developments on the southwest side of the lake were included in the assessment. Ms. Erickson confirmed they were included. Leonora Person, 13726 189" Ave NW, opposed the process of surveying residents during a time when public gatherings were prohibited by the governor. She questioned the results of the drawdown survey. Council stated they had followed the required process set by the State and met the required deadlines allowing a month to respond for the DNR Public Water Permit for the drawdown of Lake Orono. State deadlines did not change due to COVID-19. Kathleen Boekley,13776189' Ave NW, opposed the project because the dredging will not benefit her property. She asked when the proposed date was for the lake drawdown and said it may affect summer activities on the lake. Mr. Wisner explained the date of September 15, 2020 was not set by the city but rather the DNR and was determined so as not to affect the turtles and fish in the lake. Tom Farnsworth, 18613 Simonet Dr NW, was in favor of the project. He felt the money should be used now for this project or we may not have a lake in the future. Shelly Binsfeld, 13230 Island View Dr NW, was in favor of the project. She noted that, while kayaking, she sees a difference between the top of the lake and the river. She also asked if the plan was at 100%. Mr. Wisner responded there may be some small changes with permitting but no large-scale changes. rO W E a E 1 6 Y NATURE June 1, 2020 Tom Binsfeld,13230 Island View Dr NW, explained that they wouldn't have to wait until everything was de -watered to start the excavation. He also stated people in the shallow mud will benefit. As the sediment is compounded, they will gain volume of water in their areas. He asked about the 8% fee that was mentioned. Mr. Wisner explained that the 8% fee included legal, financial, and administration. Jesse Hartung,18837 Ogden Street NW, supported the project. He asked if it may be possible to relocated sediment to building up areas of the lake, cutting the cost of hauling. Mr. Lunde explained that the DNR rejected this idea, stating dumping it near the lake would fill in wetland complexes. Councilmember Westgaard stated that, if the project should come in under budget, the overall cost to all residents should be lowered instead of picking which ones to let out of the assessment. Mark Person, 13726189`' Ave NW, opposed the project stating the Council did not follow processes correctly and the DNR does not have authority over forming a tax district in relation to the Orono Lake Improvement District. Dennis Hyland,18660 Lander Dr NW, was in favor of the project stating it would be a benefit to his property and he believes the council is doing what is best for the community. Mr. Boelter returned and asked what will happen with the dirt and sediment that is removed. Mr. Wisner responded the contractor will create public bidding and, ideally, deposit it within 6-7 miles to save on the cost of hauling. Patrick Plant,13184 Island View Dr NW, was in favor of the project and felt people would benefit from the improvements. Denise Cundiff,13742189" Ave NW, was opposed to the project stating the drawdown voting process should not have been conducted during the COVID-19 pandemic. Chris Rock,18665 Landers St NW, was in favor of the project and excited about improvements to the lake. Scott Cundiff,13742189`s Ave NW, was opposed to the project because it does not affect his property located on the river. Mayor Dietz closed the public hearing. P 0 f E 0 E 1 1 1 NATURE June 1, 2020 City Attorney Beck stated statute grants the DNR the responsibility of determining the watershed and determining the boundaries of the lake improvement district. When the time for assessment comes, the council could determine to take properties out of the LORE assessment, but they. could not spread the cost over the remaining properties in an amount to exceed $4,000. There will be a separate public hearing on the drawdown which will occur if the project moves forward. The subsequent assessment hearing will happen at the end of the project, sometime in 2021. Moved by Councilmember Christianson and seconded by Councilmember Westgaard to adopt Resolution 20-30 establishing: 1. The City Council finds that the LORE project is consistent with the goals and objectives of the city, and promotes the health, safety, and welfare of the city's residents. 2. The City Council finds that the LORE project is necessary and feasible to remove accumulated sediment in the lake to improve lake quality, stabilize shoreline erosion, improve fish and wildlife habitat, and improve recreational opportunities and navigation on Lake Orono. 3. The City Council finds that the funding for the project is a cost-effective means of financing the necessary improvements to Lake Orono. 4. The City Council orders, by 4/5 or more vote of its members, that the LORE project proceed. 5. The City Council approves the plans for the LORE project and authorizes the project to be bid. Motion carried 5-0. 8.1 CSAH 12 (Main Street/ 181" Avenue) Reconstruction Project Mr. Femrite presented the staff report. Andrew Witter, Sherburne County Engineer, and Barb Burandt, Sherburne County Commissioner, were in attendance. Councilmember Westgaard asked how to pay for the project. Mr. Femrite stated the money could come from the Municipal State Aid (MSA) account since the Twin Lakes Rd/Kelly Pkwy project has moved to the future. Councilmember Westgaard was leery about borrowing against future funding. His biggest concern was the lack of communication between the city and county resulting in such a large and unexpected expense. However, he feels this is a rare opportunity to get an important project done. Councilmember Wagner agreed this road needs to be brought up to date as it is no longer part of a rural area. She agrees there are concerns about how the cost came out of nowhere. Councilmember Christianson wondered why it wasn't tied to a turn back option. P0NEIEI a NATURE June 1, 2020 Mr. Femrite said the CSAH 33 turnback was a project that could be four years in the future. He felt it was a good idea to do a full evaluation closer to the time of the project to ascertain the precise condition of the road, rather than guessing what the condition may be. The council members may also change during that time period and have thoughts that differ with the current council members. Councilmember Christianson asked how the city could learn from the cost surprise so that it doesn't happen again. Mr. Femrite says he has been working with Sherburne County and talking about the cost participation model. Councilmember Ovall questioned whether the project accomplished everything they need. However, delaying would be a step back. Councilmember Wagner added one of the reasons the MSA budget had a healthy balance was because the connection of Twin Lakes Road to Highway 10 was pushed back. Mayor Dietz questioned if the proposal was an answer to the problem or a case of "something is better than nothing". Everyone who goes to Hillside Park will now need to make a U-Turn and there is a high volume of traffic to this park. He believes that, although a roundabout at Johnson St is cheaper, locating it at Trott Brook Pkwy would be a safer option. He questions whether the changes will reduce speed. Moved by Councilmember Wagner and seconded by Councilmember Westgaard to approve the plans for the CSAH 12 and associated Cost Share Agreement with Sherburne County, with the condition that a speed study be completed at the completion of the project. Motion carried 5-0. Mayor Dietz asked Mr. Femrite about payment terms with the County and if he could bring them back to the council to review. Mr. Femrite said the terms are set within the cost sharing agreement. Since the city will be using the MSA account, they would be making draws at times improvements go in, submitted by a process through state aid reimbursement. 8.2 ISD #728 Locker Room Use Agreement Mr. Portner presented the staff report. Mayor Dietz clarified they would be hiring their own contractor and the city would not charge them rent in the future. Mr. Portner confirmed this is correct. � O f E fl E 6 B Y I X:i:I l June 1, 2020 Mayor Dietz asked if the locker rooms would be completed in the same time frame as the rest of the building. Mr. Femrite stated they would be one of the last items to be completed. Moved by Councilmember Westgaard and seconded by Councilmember Christianson to approve a locker room use agreement with ISD #728. Motion carried 5-0. 8.3 Resolution supporting ERX Off -Road National Mr. Portner presented the staff report. Moved by Councilmember Wagner and seconded by Councilmember Christianson to approve Resolution 20-31 supporting ERX Off -Road National Event on July 10-11, 2020, contingent on state laws and orders. Motion carried 5-0. 8.4 Discuss Work Session Items Mr. Portner presented the staff report. Council discussed dates for a council retreat work session and decided on June 17, 2020 starting at 2:00 p.m. Council was concerned if a four-hour discussion would be enough time but determined additional special meetings could be called to continue discussion. Councilmember Wagner would like to have an update on current TIF districts, balances, and abatements. She wonders if there is a percentage or ratio of TIF or abatements as part of a healthy budget. Mayor Dietz added that Elk River has historically been conservative with TIF. Councilmember Ovall agreed on the importance of this discussion and thought it would be valuable for potential applicants to hear if the council was amenable to TIF before they start the process. 9. Council Liaison Updates Council provided updates of various advisory board activities as noted in the respective boards' minutes. 10.1 Clean Water Partnership Loan Conduit Shane Steinbrecher, Steinbrecher Companies, presented the staff report. Mayor Dietz asked if there was interest on the loans. P 0 w E R E o R r NATURE June 1, 2020 Mr. Steinbrecher stated the city could choose to add interest to it. Mayor Dietz asked if the council would have to hold assessment hearings. Mr. Steinbrecher explained it would depend on their covenant. They would need to work with the City Attorney to understand since each covenant would be different. Mayor Dietz asked if Steinbrecher Companies has done this in other communities. Mr. Steinbrecher responded they had not, but they have done similar loan programs for failing septic systems. Mayor Dietz asked about community interest. Mr. Steinbrecher responded that there could, eventually, be 6-8 developments that may be interested. Councilmember Westgaard felt it was a good way to help fund septic system repairs. Councilmember Wagner was in favor of having the city look into this. Some developments are in dire need. While is not the responsibility of the city to fix it for them, we are all part of the same community it would be nice to provide a way to help them. Mayor Dietz agreed it would a good way to help but still leave it as their responsibility. He doesn't want people objecting to assessments down the road. Mt. Steinbrecher reiterated it won't be a "one size fits all" for each covenant. Mayor Dietz asked if there were some who would like to begin their projects in 2020. Mr. Steinbrecher stated at least two would struggle to survive a hard winter without damages if no repairs were made. City Attorney Beck was interested to study how the city would be protected. Councilmember Wagner wondered if this may hurt the city's bond rating or credit. Mayor Dietz asked Mr. Femrite to inform Mr. Steinbrecher when the council would continue this discussion. 10.2 169 Redefine Update Mr. Femrite presented the staff report. Councilmember Wagner asked about the stoplight and left turn over Highway 169. p 0 W I R I I I I NATURE June 1, 2020 Mr. Femrite stated this would control east bound turning traffic and reduce conflict of crossing traffic during peak times. Councilmember Wagner asked about commercial vehicles making that movement. Mr. Femrite stated the design team had used local trucking companies' longest vehicles to test the intersection. Councilmember Westgaard said it seemed consistent with what they had seen last fall but with an increase in the ability for larger trucks to turn. Councilmember Ovall questioned whether there was enough room at the crossing to Highway 10 if the traffic is cuing to turn left more than expected. What if there was a need in the future to add another lane? Mr. Femrite said the type of turn signal should help to reduce traffic back up in this lane. Mayor Dietz asked if the only businesses affected were the Salvation Army and Kentucky Fried Chicken and whether acquisition was finalized. Mr. Femrite affirmed those are the only two full acquisitions proposed and said there will be solidified direction once the council has administered municipal consent, which will occur within the next couple months. Mayor Dietz asked if the city would get some type of credit as they are taking liquor store property. Mr. Femrite responded the city would receive a value on that and any other city owned property. Councilmember Ovall asked if anything could help with backups turning left onto Main St. from Carson Ct. Mr. Femrite said the area could see a signal in the future, but current plans should help reduce the distribution of traffic through the area. Mr. Femrite stated plan revisions now have Main St going under Hwy 169 and School St. will go over. Mayor Dietz asked if the road surface would be concrete or asphalt. Mr. Femrite stated he believe it would be asphalt but was subject to change. Mayor Dietz asked about the improvement projects happening in the cities of Anoka and Ramsey and whether they would be happening at the same time. Mr. Femrite believes the Anoka projects are scheduled to be completed before the 169 Redefine project begins. MnDOT is trying to fit projects so that arteries are not torn up at the same time. Cost estimates look to be south of the $3 million range depending on how many side streets need to be included. P0VE0E1 0Y NATURE June 1, 2020 Mayor Dietz asked if that amount covered city water and sewer pipes that have to be moved. Mr. Femrite stated those would be budgeted separately. Mayor Dietz asked if extra assessment money for eastern and western sewer could be used for the project. Mr. Femrite stated these trunk utility fees could be used. Mr. Femrite added he has filmed a walkthrough of the project if the public would like to hear more and that can be found at www.elkriverrnn.gov/ 169Redefine. He is continuing to look for ways to engage with the community as the project moves forward. Mayor Dietz asked Mr. Portner for an update on Police activity and preparedness in light of local rioting. Mr. Portner stated the Police Chief distributed a letter to the community via social media outlining the department's response to the events. Councilmember Wagner asked if liquor sales were getting back to normal despite being closed due to COVID-19. Mr. Portner heard from finance that sales are near what they typically are at this time of year. The liquor stores are providing curbside pickup and working on plans to implement delivery. II. Adjournment There being no further business, Mayor Dietz adjourned the meeting of the Elk River City Council at 10:37 p.m. Minutes prepared by Katie Porath. Tina Allard, City Clerk p 0 W I R E I I I NATURE