4.1. DRAFT MINUTES (2 SETS) 12-07-2020
Meeting of the Elk River City Council
Held at the Elk River City Hall
Monday, November 2, 2020
Members Present: Mayor John Dietz, Councilmembers Nate Ovall, Matt Westgaard,
and Jennifer Wagner
Members Absent: Councilmember Garrett Christianson
Staff Present: City Administrator Calvin Portner, Finance Director Lori Ziemer,
Fire Chief Mark Dickinson, Parks and Recreation Director Michael
Hecker, Recreation Assistant Alisa Wallace, Part-Time Cablecaster
Michaela Strand, IT Director Bob Pearson, Multipurpose Facility
Superintendent Tim Dalton, and Sr. Admin. Assistant/Recording
Secretary Jennifer Green
1. Call Meeting to Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council
was called to order at 6:31 p.m. by Mayor Dietz.
2. Pledge of Allegiance
Pledge of Allegiance was recited.
3. Consider Agenda
Mr. Portner added Item 8.3, “Calling a Canvassing Meeting” and handed out a staff
report.
Moved by Councilmember Wagner and seconded by Councilmember
Westgaard to approve the agenda with the addition of Item 8.3.
Motion carried 4-0.
4. Consent Agenda
Councilmember Wagner asked for clarification of Item 10.1 in the September 8,
2020, minutes, page 10, that the home invasion was two doors down from her home
and not the applicant’s home.
Moved by Councilmember Westgaard and seconded by Councilmember
Wagner to approve the Consent Agenda for November 2, 2020, with the
modification to Item 4.1:
4.1 September 8, 2020, Minutes, with the change made noted above.
4.2 Check register as outlined in the staff report.
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November 2, 2020
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4.3 Hire Wastewater Maintenance Operator Justin Turner effective
November 3, 2020, at step A of pay grade 5N as outlined in the staff
report.
4.4 Hire the following Paid On-Call Firefighters effective November 3,
2020:
-Daniel Hampton
-Anthony Hooper
-Connor O’Connell
-Michael Yaeger
-Chad Yess
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4.5 Spectrum Outdoor Ice Ink Agreement for the rink located at 10129 181
Ave. NW as outlined in the staff report.
4.6 Resolution 20-73 Amending and Restating the City’s Flexible Benefits
Plan effective January 1, 2020, as outlined in the staff report.
Motion carried 4-0.
5. Open Forum
There was no one for Open Forum.
6.1 Introduction of New Employees
Mr. Hecker introduced Recreation Assistant Alisa Wallace, who began with the Parks
Department on May 19. Ms. Wallace stated she was excited to be a part of the
department especially with the completion of the event center.
Mr. Portner introduced part-time cablecaster Michaela Strand and outlined her
previous schooling and work history.
6.2 Oath of Office – Deputy Fire Chief and Assistant Chief
Chief Dickinson presented the staff report. He presented Deputy Fire Chief Joe
Libor, Jr., and Assistant Fire Chief Mark Wandersee and outlined their experience,
welcoming them to the fire department.
Mayor Dietz administered the Oath of Office to both and the badging ceremony was
completed.
6.3 Retirement Recognition – Bob Pearson
Ms. Ziemer presented the staff report. She discussed Mr. Pearson’s history with the
department and thanked him for his years of service.
Mayor Dietz presented Mr. Pearson with a retirement plaque commemorating his
years of service to the city.
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7.1 Windsor Park 3 Addition Sewer Extension Assessment Hearing &
Project Approvals
Jason Cook, Principal Engineer with Bolton & Menk, Inc., presented the staff report.
Mayor Dietz asked how the city will see a future benefit if they elect to fund the
$84,404.32 towards future service to other developments with failing septic systems.
Mr. Cook explained how the location of this lift station improvement at the low
point of the overall system allows it to be capable of being a centralized lift station
that other developments could utilize.
Mayor Dietz asked if the city will eventually see a return on the $84,404.32
investment.
Councilmember Westgaard stated essentially the answer is yes, as they are aware of
several other neighborhoods in the area experiencing similar issues with private
septic systems and have also come before council in years past, Windsor I being one
of them. He stated that’s why staff was comfortable with lowering the assessment as
future failures are highly likely.
Mr. Portner agreed and felt there was a high possibility of future failing septic
systems requesting connection. Mayor Dietz asked if the city engineer recommends
the city pay the oversizing cost. Mr. Portner stated Mr. Femrite has determined the
oversizing cost to be $84,404.32 and is not making a recommendation. If the council
determined it to be fair for the city to cover the costs, to subtract that from the total
assessment amount.
Mayor Dietz stated he felt it was fair but was curious with the probability that other
neighborhoods will connect, and the city will eventually recover this amount.
Mr. Portner stated he wished he could tell them there was a high probability but
indicated it becomes vitally important when neighborhoods are faced with this
situation.
Councilmember Ovall stated it was a matter of not if, but when.
It was consensus of council to support this recommendation.
Mr. Cook explained the amount of assessment would be reduced to $21,627.90, with
a 15-year payment schedule at 2.5% interest. levied on their property taxes.
Taxpayers would have the ability to pre-pay within the next 30 days to avoid any
interest.
Mayor Dietz opened the public hearing.
Jason Bailey, president of Windsor Park Third Addition Homeowner Association
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representing the 88 homes, read a prepared statement thanking council and staff for
this consideration and outlined the history of this sewer extension. He stated it
would help not only them but the environment as well by eliminating the inground
septic system.
Mr. Bailey then requested a financial split of this infrastructure, that the HOA pays
90% of the financial cost and the city pay 10% of the financial burden for a short-
term duration because they do believe there would be future neighborhoods
experiencing similar need to connect to this system.
There being no one else to speak or object to the assessment, Mayor Dietz closed
the public hearing.
Mr. Cook explained that Mr. Bailey is asking council to consider paying 10% of the
project costs which is more than the oversizing cost stated in the staff report.
Mayor Dietz stated he was not in favor and asked council for their thoughts.
Councilmember Westgaard asked Mr. Bailey how he arrived at his request for the
city to cover $198,000 or approximately 10% of the project costs.
Mr. Bailey stated he felt there was approximately $1M dollars of work that should be
attributable to other future developments requesting connection to this sewer
system, and he is requesting approximately ¼ of the cost of that infrastructure work
be covered by the city. He felt in the next five years, another development will need
to connect. He based this amount on conversations with Mr. Cook and Mr. Femrite
and came with his own dollar amount for the cost sharing.
Councilmember Westgaard stated there was a number associated with the initial
estimate of the cost to oversize the system that could be considered to benefit other
developments. He stated what is also included is additional abandonment work
specific to Windsor Park Third Addition that is included in this bid amount, and he
felt it clouds the true cost of what amount could be potentially shared by other
developments. He was unsure of what number to apply to the costs associated with
the shared use of this system.
Mayor Dietz stated he is not comfortable changing the numbers without having
more facts and asked Council if they wanted to delay voting. Members of the
audience indicated they did not want to delay a decision.
Councilmember Ovall asked about a funding source to cover this cost.
Mr. Cook stated the trunk utility fund is planned to initially fund the project and it
will be reimbursed through the assessment payments over the 15-year period.
Councilmember Ovall asked how much excess capacity was in the fund.
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Mr. Portner stated the fund is set up to allow for future expansion, so it depends on
what expansion costs occur next. He will ask Ms. Ziemer for the amount of the fund
balance.
Councilmember Ovall stated the request by Mr. Bailey for 10% of the project cost to
be paid by the city is doubling the current amount presented in the staff report and
he asked for more time to consider this new figure. He wondered if they could vote
tonight and continue to explore options with the possibility of making changes
retroactively. He stated he doesn’t disagree with their logic as the improvement is an
investment the whole city is receiving. He agrees there are grounds to recoup
$190,000 but he needs more information.
Mr. Cook stated they can set the assessment now and after the project is complete,
the council could take action to reduce the assessment amount at that time.
Moved by Councilmember Westgaard and seconded by Councilmember Ovall
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to adopt Resolution 20-74 Adopting Assessment for the Windsor Park 3
Addition Sewer Extension Project with an assessment amount per resident of
$21,627.90.
Motion carried 4-0.
Moved by Councilmember Wagner and seconded by Councilmember
Westgaard to approve the Sanitary Sewer Connection Agreement between
Windsor Park Third Addition Homeowners Association, Inc., and the City of
Elk River as outlined in the staff report.
Motion carried 4-0.
Moved by Councilmember Westgaard and seconded by Councilmember
Wagner to approve the Grant of Permanent Easement for Public Utilities
Purposes between Christine M. Krajsa and the City of Elk River as outlined in
the staff report.
Motion carried 4-0.
Moved by Councilmember Westgaard and seconded by Councilmember
Wagner to adopt Resolution 20-75 Accepting Bid for the Windsor Park Third
Addition Sewer Extension Project.
Motion carried 4-0.
Councilmember Westgaard stated this assessment amount was a “not to exceed”
amount and council accepted the consultant’s recommendation for $84,000
attributable to other developments, and Mr. Bailey’s request was for 10% and the
council agreed to review the benefits to other developments outside of Windsor Park
Third and whether or not there could be adjustments, before the project starts.
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Mr. Bailey stated the project may commence soon.
Mr. Cook stated the project could begin as soon as possible with tonight’s approvals.
He suggested council can reduce the assessment after the work is complete which
allows for them to see the actual project costs, and then include any reduction with
any other assistance the council may wish to provide.
7.2 Conditional Use Permit: Elk River Municipal Utilities to Allow a
Government Facility in Single Family Residential District
Mr. Portner indicated this application has been withdrawn and will be resubmitted,
to be heard in December.
7.3. Capital Improvement Plan and Issuance of Capital Improvement
Bonds, and Authorize the Issuance of General Obligation Bonds
Ms. Ziemer presented the staff report. She introduced Terry Heaton with BakerTilly
to answer any questions.
Mayor Dietz opened the public hearing. There being no one to speak, Mayor Dietz
closed the public hearing.
Councilmember Westgaard stated he is in support of the new bonds with public
safety building upgrades and the new fire station on the north side of town. He was
also in support of the reissuance of bonds to take advantage of the interest
difference savings.
Moved by Councilmember Westgaard and seconded by Councilmember
Wagner to adopt Resolution 20-76 Approving a Capital Improvement Plan
and Giving Preliminary Approval to the Issuance of Capital Improvement
Bonds as outlined in the staff report.
Motion carried 4-0.
Moved by Councilmember Ovall and seconded by Councilmember Wagner to
adopt Resolution 20-77 Providing for the Competitive Negotiated Sale of
$9,895,000 General Obligation Capital Improvement Plan Bonds, Series 2020A
as outlined in the staff report.
Motion carried 4-0.
Moved by Councilmember Westgaard and seconded by Councilmember Ovall
to adopt Resolution 20-78 Providing for the Competitive Negotiated Sale of
$5,970,000 General Obligation Capital Improvement Plan Refunding Bonds,
Series 2020B as outlined in the staff report.
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Motion carried 4-0.
Moved by Councilmember Ovall and seconded by Councilmember Wagner to
adopt Resolution 20-79 Providing for the Competitive Negotiated Sale of
$7,295,000 Taxable General Obligation Sewer Revenue Refunding Bonds,
Series 2020C as outlined in the staff report.
Motion carried 4-0.
8.1 Senior Administrative Assistant Position Description and Promotion
Mr. Portner presented the staff report.
Councilmember Ovall asked for and received clarification of the future of the
position.
Moved by Councilmember Westgaard and seconded by Councilmember
Wagner to approve the senior administrative assistant position description as
outlined in the staff report.
Motion carried 4-0.
Moved by Councilmember Wagner and seconded by Councilmember
Westgaard to promote Dawn Larson to Senior Administrative Assistant
retroactive to October 12, 2020, at step A of pay grade 4N.
Motion carried 4-0.
8.2 Discuss Work Session Items
Mayor Dietz asked the status of the cyber security committee with the Chamber of
Commerce. Councilmember Wagner stated she will work with Ms. Rydberg and
come back to council at a future date.
8.3 Call Canvassing Meeting
Mr. Portner presented the staff report.
It was the consensus of council to set the canvassing meeting on Friday, November
13, 2020, at 9:00 a.m.
Moved by Councilmember Wagner and seconded by Councilmember Ovall to
set the canvassing meeting for Friday, November 13, 2020, at 9:00 a.m.
Motion carried 4-0.
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9. Council Liaison Updates
Each Councilmember provided an update which is further outlined in the respective
advisory board minutes.
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Council recessed at 8:05 p.m. to go into work session. Council reconvened at 8:08
p.m.
10.1 Concept Review: Combustion Turbine at 17845 Highway 10, Great
River Energy
Mr. Portner presented the staff report. Present were GRE Permitting Manager Mark
Strohfus, Environmental Administrator Cassie Johnston, and Principal Engineer
Vince Herda, who presented the details of the proposed project.
Council asked questions regarding the relocation of the storage yard and fencing. Ms.
Johnston explained the relocation of the storage yard and because it has some
visibility from Highway 169 it would include privacy screening. The council asked
questions regarding the future of the site. Ms. Johnston stated there are still around
130 employees working in the campus building and GRE has no intention of moving
or selling the site at this time.
It was consensus of council to support this concept moving forward through the
planning process.
10.2 Ordinance Discussion: Keeping of Chickens
Mr. Carlton presented the staff report. He explained residents in the Ward 1 area
seem to be the most interested in keeping chickens.
The council discussed the ordinance adoption process in 2017 and felt it was well
vetted. Councilmember Wagner discussed a poll she put on her Facebook page with
results varying in the keeping of chickens. She stated she did not have a problem
with amending the ordinance to allow chickens on one acre lots and above, but she
felt people moving into a tight urban development don’t expect to have chickens
kept in their neighborhoods. The council reiterated the reasons for not allowing the
keeping of chickens on a city lot mainly due to small lot size and the effect of
chicken noise and smells.
Councilmember Westgaard questioned the difference between a neighbor have a
chicken versus a yippy dog, or a cat or bunny.
Councilmember Wagner discussed in general terms, chickens are farm animals and
on a smaller lot there is a concern with neighbors not anticipating farm animals living
in an urban neighborhood. She stated ordinances are created to protect neighbors
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from neighbors and felt there would be unintended consequences. She noted
Councilmember Christianson had discussed this with her and she explained this
thinking to him, and he felt she had some good points that he had not considered.
Councilmember Ovall explained he had chickens when he lived in Ramsey and
commented they are loud when laying eggs, waste disposal is quite the management
process and the ammonia smell is tough to manage as the ground gets saturated. He
agreed with amending the ordinance to one acre and above and reduce the count to
four chickens.
Councilmember Westgaard discussed the process in 2017 and being asked to loosen
the requirements that were well discussed and felt now it is more of a trend that the
city is having to accommodate.
Councilmember Wagner discussed the ordinance requirements of having the
chickens contained. She recalled that enforcement of the ordinance was also a
responsibility of the Planning Department, following a conditional use pemit
process.
Councilmember Westgaard stated the enforcement piece is no different than a
kennel. He suggested amending the ordinance and then evaluating in the future.
Mr. Carlton reiterated the permit requirements was a discussion held in 2017 and
suggested continuing to not require a permit for the keeping of chickens.
It was consensus of council to support amending the ordinance to allow for the
keeping of chickens on parcels at least 1-acre in size and a 4-6 chicken maximum
without a permit. Staff will come back with an ordinance amendment language for
review and approval.
10.3 2021 Budget
Ms. Ziemer presented the staff report.
Furniture and Things Community Event Center
Mr. Dalton presented the proposed division performance measures and goals, and
budget. He noted some of the additions in the budget are due to things that weren’t
included in the initial project build that are required to run the facility, such as A/V
equipment, irrigation, APEX building improvements, water softener, window
treatments, furniture, etc. He discussed the progress and schedule of hiring some of
the staffing requirements and writing and approving the policies and procedures to
operate the building.
Councilmember Westgaard discussed opening and operating a building such as the
city has never had before, and a variety of things staff are currently dealing with
because of COVID-19. He stated it is hard to put together a budget on a facility with
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no history other than an ice arena. He discussed the future of the facility and the
confidence that this building can sustain its own budget, debt service and capital
outlay.
Councilmember Ovall asked if any stress testing had been done on the revenue and
what are backup sources of funding if it ends up in the negative.
Ms. Ziemer stated currently it would come out of reserves with a current cash
balance at around $380,000. A backup fund would be either the General Fund or
some other fund.
Councilmember Westgaard noted if the revenue is not there, the expenditures will
have to wait.
The council discussed the naming rights contract, how the funds will be coming into
the government building fund until expenses are met, and how contributions and
payments would be managed.
Mr. Portner will email the contract to the council.
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Ms. Ziemer presented the proposed tax levy and General Fund budget for 2021.
The council discussed the significant housing value changes, and Ms. Ziemer stated
the increase in values that could be based on newer homes being built which are
higher value homes as well as home sales.
The council discussed at length removing the earlier proposed $200,000 public works
facility debt levy. If it were removed, Ms. Ziemer stated the levy increase would be
lowered to 1.9%. After discussion, the consensus of the council was to remove the
$200,000 line item from the levy.
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Council recessed at 9:46 p.m. and reconvened into closed meeting at 9:50 p.m.
11. Performance Evaluation
The council met in closed session pursuant to MN Statute 13D.05, Subdivision 3(a).
The purpose of the closed meeting was to discuss the work performance of City
Administrator Cal Portner.
12. Adjournment
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There being no further business, Mayor Dietz adjourned the meeting of the Elk
River City Council at 11:13 p.m.
Minutes prepared by Jennifer Green.
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John J. Dietz, Mayor
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Tina Allard, City Clerk
Meeting of the Elk River City Council
Acting as the Canvassing Board
for the City of Elk River
Held at Elk River City Hall
Friday, November 13, 2020
Members Present: Mayor Dietz, Councilmembers Westgaard, Ovall, and Wagner
Members Absent: Councilmember Christianson
Staff Present: Deputy Clerk Jessica Miller
1. Call Meeting to Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council
was called to order at 9:01 a.m. by Mayor Dietz.
2. Canvass Results of November 3, 2020, General Election
Ms. Miller presented the staff report.
Moved by Councilmember Wagner and seconded by Councilmember Ovall to
adopt resolution 20-80 canvassing election returns and declaring the results of
the city general election held November 3, 2020. Motion carried 4-0.
3. Adjournment
There being no further business, Mayor Dietz adjourned the meeting of the
Canvassing Board at 9:13 a.m.
John J. Dietz, Mayor
Tina Allard, City Clerk