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4.1 DRAFT MINUTES (2 SETS) 12-21-2020 Meeting of the Elk River City Council Held at the Elk River City Hall Monday, November 16, 2020 Members Present: Mayor John Dietz, Councilmembers Garrett Christianson, Nate Ovall, Matt Westgaard, and Jennifer Wagner Members Absent: None Staff Present: City Administrator Calvin Portner, Senior Planner Chris Leeseberg, Economic Development Specialist Colleen Eddy, Engineering Project Manager Brandon Wisner, and 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 6:00 p.m. by Mayor Dietz. 2. Pledge of Allegiance Pledge of Allegiance was recited. 3. Consider Agenda Moved by Councilmember Wagner and seconded by Councilmember Westgaard to approve the agenda. Motion carried 5-0. 4. Consent Agenda Moved by Councilmember Westgaard and seconded by Councilmember Wagner to approve: 4.1 October 19, 2020, minutes. 4.2 Check register as outlined in the staff report. 4.3 Ordinance 20-16 assigning a new street address for PID 75-656-0115. 4.4 Pay estimates as outlined in the staff report. 4.5 Special testing contract for public safety building expansion. 4.6 Special assessments for delinquent utilities:  Resolution 20-81 levying assessment for unpaid garbage services  Resolution 20-82 levying assessment for unpaid sewer utility services  Resolution 20-83 levying assessment for unpaid stormwater utility fees  Resolution 20-84 levying assessment for unpaid water utility services  Resolution 20-85 levying assessment for unpaid electric service City Council Minutes Page 2 November 16, 2020 ----------------------------- 4.7 Great Northern Trail Memorandum of Understanding Agreement 2020-40. 4.8 Mobile phone policy. 4.9 Alba Ridge License Agreement 2020-39. th 4.10 Resolution 20-86 Approving Final Plat: Miske Meadows 7 Addition. 4.11 Resolution 20-87 approving a premises permit for the Elk River Youth Hockey Association. 4.12 Resolution 20-88 levying special assessment for repairs to private water service connecting to city water. Motion carried 5-0. 5. Open Forum No one appeared for Open Forum. 6.1 City of Elk River Volunteer of the Month Mayor Dietz presented the November Volunteer of the Month award to Tim Wick. He highlighted the following:  Active member of the Elk River Police Reserves for over 20 years.  Helped Elk River Police Department establish a volunteer position focusing on daytime neighborhood and park security with an emphasis on youth engagement.  Spends summers working with the youth of the Elk River community as a police reserve.  Volunteers many hours working with elementary kids during the school year as a police reserve.  Has the reputation for being the epitome of “officer friendly.” 6.2 Beautification Award and Recognition Ms. Eddy presented the staff report. Tamara Ackerman, Chair of the Beautification Committee, presented the Beautification Award to Dr. Hunter, owner of Elk Plaza Dental. Dr. Hunter thanked the committee for recommending him. 6.3 Oath of Office: Patrol Officers Chief Nierenhausen presented the staff report. Mayor Dietz administered the Oath of Office to Police Officers Michael Welsh, Tyler Corrier, and Augustus Koppi. City Council Minutes Page 3 November 16, 2020 ----------------------------- 7.1 Elk Ridge Estates, Contractors Capital Company, LLC, Lorraine White, 19746 Troy Street Mr. Leeseberg presented the staff report. He noted condition #3 has been removed. Mayor Dietz opened the public hearing. Carla Laurent, 18568 Troy Street – questioned if the project will leave the homes on Troy Street landlocked with no access to city water or sewer. Mr. Leeseberg explained the properties are currently landlocked and nothing about this project changes the status. Ms. Laurent questioned if the property owners can hook up to city water and sewer themselves or if all four properties must do it at the same time. Mr. Leeseberg indicated that is outside the scope of this project and the properties can decide whether to hook up, but it may be cost prohibitive to hook up alone. Councilmember Westgaard explained the Troy Street easement is not part of the plat being considered tonight and anything in place for those parcels is outside of what the Council is reviewing this evening. Mayor Dietz confirmed nothing about the existing four Troy Street houses Ms. Laurent is referring to is changing. Mr. Leeseberg indicated that is correct. Ms. Laurent questioned if there is enough space in front to create a road. Mr. Leeseberg explained the property lines and easements on Troy Street are not changing with this project. He noted Ms. Laurent’s property is not affected with this plat. There being no one else to speak to this issue, Mayor Dietz closed the public hearing. th Councilmember Ovall questioned why the alignment of 186 Circle has changed since the Planning Commission review. Mr. Leeseberg explained the road has been moved to realign with the existing easement on church property. A. Preliminary Plat Moved by Councilmember Westgaard and seconded by Councilmember Wagner to approve the Preliminary Plat for Elk Ridge Estates with the following conditions: 1. A single sewer/water stub shall be provided to west property line along Troy Street. 2. Staff approval of all site, civil, utility, and landscaping plans. Motion carried 5-0. City Council Minutes Page 4 November 16, 2020 ----------------------------- B. Final Plat Moved by Councilmember Westgaard and seconded by Councilmember Wagner to adopt resolution 20-89 approving the final plat of Elk Ridge Estates 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. Park Dedication shall be paid in the amount required by the city when the final plat is released for recording (currently $1,425.93/lot). 3. Water Availability Charge shall be paid in the amount required by the city when the final plat is released for recording (currently $355/plumbing unit). 4. A Letter of Credit shall be provided to the city in the amount of 100% of the costs of the public improvements. 5. Upon completion of all improvements and acceptance by the city, a security or warranty in a form acceptable to the city engineer must be secured. 6. Development Plan shall be approved by the city engineer prior to issuance of building permits. 7. Staff approval of all updated site and engineering plans. 8. Any item or condition found that indicates the site is likely to yield information important to pre­history or history shall be reported to the city immediately. Further, the city reserves the right to stop work authorized in its approval until the site is appropriately investigated and work is authorized. 9. Addition of a lot/block designation for the campground parcel. th 10. Lot 1 Block 3 and Lot 10 Block 1 shall not have access onto 186 Avenue until it is connected through to Queen Street. th 11. The city will not maintain 186 Avenue until it is connected through to Queen Street. Motion carried 5-0. Councilmember Wagner suggested staff send a letter to the Troy Street property owners explaining this project does not affect their properties. Mr. Leeseberg indicated staff will send letters to all five homes on Troy Street. 7.2 Interim Use Permit to Allow Duplex in the R1a Zoning District Mr. Leeseberg presented the staff report. Mayor Dietz opened the public hearing. Michelle Demars, property owner, 20452 Quincy Circle NW, indicated she is not interested in moving forward with the Interim Use Permit due to the costs and City Council Minutes Page 5 November 16, 2020 ----------------------------- conditions outlined. She indicated they will try and rent it out as a single-family residence. Mayor Dietz asked Ms. Demars if she is sure she does not want the Council to act on this item. Ms. Demars stated she would like to keep the permit as an option if renting as a single-family unit does not work. She explained she does not like the condition that the property must be converted back to single-family if it is changed into her parent’s name. Mr. Leeseberg indicated he spoke with the applicant prior to the meeting and was under the impression she was agreeable to conditions 1-5. Ms. Demars stated she feels like the city is against the request and would rather just do her own thing. Councilmember Wagner explained she understands why staff is asking for the escrow but does not support it. She also expressed concern with condition #5 requiring the property to be returned to a single-family home prior to sale or transfer of ownership. She explained the owners could have done whatever they wanted without the city knowing but they were responsible and came to the city and we are throwing a ton of requirements at them. She added if the Interim Use Permit is recorded against the property future buyers would be aware. Mr. Leeseberg noted that if the buyer did not see that the Interim Use Permit terminates upon sale or transfer of ownership the new owners, we could end up in the same position Ms. Demars is in now. Attorney Beck explained the Interim Use Permit allows related or unrelated people to live in the two units and is in place until the property changes ownership. Mr. Leeseberg indicated the Interim Use Permit is the best way to meet the request by Ms. Demars. Discussion took place on potential tax implications if the property can operate as a multifamily use. Ms. Demars indicated if the tax increase is too much they may decide to rent as a single-family. Ms. Demars indicated she would like time to contact Sherburne County to inquire what the tax implication will be. Consensus of the Council was to eliminate the $5,000 escrow. There being no one else to speak to this issue, Mayor Dietz continued the public hearing to December 7, 2020. Moved by Councilmember Wagner and seconded by Councilmember Westgaard to continue the request for an Interim Use Permit to allow a duplex in the R1a zoning district to December 7, 2020. Motion carried 5-0. City Council Minutes Page 6 November 16, 2020 ----------------------------- 7.3 Preliminary and Final Plat: Mulvaney Point Mr. Leeseberg 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 Wagner to approve the preliminary plat for Mulvaney Point Twin Homes with the following conditions: 1. Submittal of a stormwater maintenance declaration. 2. Staff approval of all site, engineering, and platting documents. Motion carried 5-0. Moved by Councilmember Westgaard and seconded by Councilmember Wagner to adopt resolution 20-90 approving the final plat of Mulvaney Point Twin Homes, with the condition the plat be updated to include drainage and utility easements on the corners of lots 5 and 8. Motion carried 5-0. 8.1 BKV Group Design Services Fee Adjustment Request Bruce Schwartzman, Architect, BKV Group, reviewed the requested fee adjustments as outlined in the letter. Councilmember Wagner indicated this is a significant ask and questioned if the changes were brought up to staff prior to work being done. Mr. Schwartzman explained some of the civil issues were brought to staff’s attention ahead of time, but costs associated with assisting in finding a construction manager were not disclosed. Councilmember Ovall stated the city received several bids and questioned how this increase compares to other bids with the same services and if the other contractors made the same assumptions. Mr. Wisner indicated he does not have those figures with him. Chief Nierenhausen explained BKV’s bid was in the middle and he believes even with the increase they would still come in somewhere in the middle. He noted he believes many of the lower bidders probably made some of the same assumptions. He added him and the fire chief have not done a project like this before and if they had known finding a construction manager would have been additional, they would have consulted with the city administrator prior to work being done. Mr. Schwartzman added some of the increases were civil and he doesn’t believe any of the proposals would have included. City Council Minutes Page 7 November 16, 2020 ----------------------------- Councilmember Westgaard explained after speaking with staff it appears there were assumptions made on some things the contractor suspected had been taken care of. He’s guessing other contractors would have made the same assumptions. He does not feel like it is out of line for the total scope of the project. Mr. Schwartzman indicated unless there is a drastic change they do not plan to come back before the Council. Moved by Councilmember Wagner and seconded by Councilmember Westgaard to approve the change in design fees as outlined in the staff report. Motion carried 5-0. 8.2 Summary of City Administrator’s Performance Evaluation Mayor Dietz read a statement providing a summary of City Administrator Cal Portner’s performance review. Council recessed at 7:12 p.m. The meeting reconvened at 7:14 p.m. 9.1 Concept Review: Tammy Jorgenson Mr. Leeseberg presented the staff report. Tammy Jorgenson, applicant, explained the project. She added they would entertain dropping down to a four unit building on Main Street since it would be more conducive to the mainly residential area. Councilmember Westgaard stated the Jackson site seems like a logical spot for the project he does not have a strong feeling one way or the other about flipping the parking. He questioned if there is enough parking to accommodate residents and visitors. Ms. Jorgenson indicated they are expecting to have an additional four parking spots on the other side of the garages. Councilmember Westgaard explained he would like to hear more about the Main Street proposal before agreeing as he believes it may not be an appropriate place for an apartment building surrounded by single family residential. He noted his initial thought is if the unit was reduced to four it would be a two-story structure and wouldn’t look much different than the two-story homes in the area. Mr. Leeseberg indicated 2.5 parking spots per unit are required for a total of 10-15 spots per building. He added parking will be a challenge. Councilmember Ovall indicated he does not support the projects as proposed. He explained Jackson is a major corridor and he doesn’t know if it fit well to have an apartment building surrounded by commercial in the area. He believes we should stick with current zoning in the Main Street area and feels integrating higher density City Council Minutes Page 8 November 16, 2020 ----------------------------- with residential is a larger discussion involving the Comprehensive Plan that should begin with the Planning Commission. Councilmember Wager expressed concerns with the parking. She questioned if parking along Jackson Avenue would interfere with the fire station across the street. Ms. Jorgenson indicated they may ask for a variance for parking as they don’t feel like three adults with three vehicles would be living in the units. Mr. Leeseberg indicated a variance request would have to be considered by the Planning Commission. Mayor Dietz indicated he agrees with the other comments. He does not have a major issue with the building on Jackson as he feels like the area is a better fit than the Main Street building. He would be interested to hear what neighbors near the Main Street property have to say before the Council acts on this item. Councilmember Christianson indicated his biggest concern is the parking and he would want to see it vetted before approval. He added the Comprehensive Plan changes are being reviewed and the areas could look different in 6-9 months when the review is completed. 10. Adjournment There being no further business, Mayor Dietz adjourned the meeting of the Elk River City Council at 7:34 p.m. Minutes prepared by Jessica Miller. ___________________ John J. Dietz, Mayor ___________________ Tina Allard, City Clerk Meeting of the Elk River City Council Held at the Elk River City Hall Monday, December 7, 2020 Members Present: Mayor John Dietz, Councilmembers Garrett Christianson, Nate Ovall, Matt Westgaard, and Jennifer Wagner Members Absent: None Staff Present: City Administrator Calvin Portner, Police Chief Ron Nierenhausen, Captain Bob Kluntz, Finance Director Lori Ziemer, Planning Manager Zack Carlton, City Attorney Peter Beck, and Records Specialist Katie Porath 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 6:29 p.m. by Mayor Dietz. 2. Pledge of Allegiance Pledge of Allegiance was recited. 3. Consider Agenda Items 4.7 and 8.1 were moved. Item 6.2 was added. Moved by Councilmember Westgaard and seconded by Councilmember Christianson to approve the agenda as amended. Motion carried 5-0. 4. Consent Agenda Item 4.7 was moved from the consent agenda. Moved by Councilmember Wagner and seconded by Councilmember Ovall to approve as amended: 4.1 November 2, 2020, Regular Minutes November 13, 2020, Canvassing Board Minutes 4.2 Check register as outlined in the staff report. 4.3 Resolution designating polling places for 2021 4.4 Approve plans and authorize bidding for Fire Station 3 project 4.5 HRA and Library Board appointments 4.6 Body-worn camera quote and contract 4.8 Hire Community Service Officer I 4.9 Naming Rights name and logo City Council Minutes Page 2 December 7, 2020 ----------------------------- Motion carried 5-0. 5. Open Forum Deanna McLean, owner of Salon on Main, and Camron L’Heureux, owner of Olde Main Eatery, presented a petition from local business owners who were opposed to the proposed downtown development. Mayor Dietz explained that there will be a meeting in January for public comment. Council added that the project has been presented but not approved yet. One of the conditions of the proposal is getting engagement from downtown businesses. 6.1 Presentations, Awards, and Recognition Mayor Dietz presented a plaque to Captain Kluntz for 30 years of service. 6.2 Recognition of Councilmember Ovall Mayor Dietz presented a plaque to Councilmember Ovall. 8.1 Awarding the sale of bonds, Series 2020A, Series 2020B, and Series 2020C Ms. Ziemer presented the staff report. Terri Heaton, from Baker Tilly, joined via Zoom and outlined cost savings under the original estimates. Mayor Dietz asked about getting to a AAA bond rating. Ms. Heaton feels it is a possibility in the next few years dependent on socioeconomic factors and tax base growth, but a AAA would be more about bragging rights than basis point change. Moved by Councilmember Westgaard and seconded by Councilmember Ovall to adopt Resolution 20-92 awarding the Sale of General Obligation Capital Improvement Plan Bonds, Series 2020A to Robert W. Baird & Co., Inc. Motion carried 5-0. Moved by Councilmember Westgaard and seconded by Councilmember Wagner to adopt Resolution 20-93 awarding the Sale of General Obligation Capital Improvement Plan Refunding Bonds, Series 2020B to Robert W. Baird & Co., Inc. Motion carried 5-0. Moved by Councilmember Westgaard and seconded by Councilmember Christianson to adopt Resolution 20-94 awarding the Sale of Taxable General Obligation Sewer Revenue Refunding Bonds, Series 2020C to UMB Bank, N.A. Motion carried 5-0. City Council Minutes Page 3 December 7, 2020 ----------------------------- 7.1 2021 Budget and Tax Levy Ms. Ziemer presented the staff report. Mayor Dietz asked if the tax capacity rate for the school district included their referendum. Ms. Ziemer stated it does not include the referendum. Councilmember Christianson asked if the property tax formula for homestead exclusion was determined by the county. Ms. Ziemer stated the homestead exclusion formula was determined statewide, not by individual counties. Mayor Dietz opened the public hearing. There being no one to speak to this issue, Mayor Dietz closed the public hearing. Mayor Dietz stated that the net effect is 2.4% increase to the General Fund budget. Moved by Councilmember Ovall and seconded by Councilmember Westgaard to approve the 2021 General, Special Revenue, and Enterprise fund budgets. Motion carried 5-0. Moved by Councilmember Wagner and seconded by Councilmember Westgaard to adopt Resolution 20-95 authorizing the property tax levy for collection in 2021. Motion carried 5-0. 7.2 Interim Use Permit to Allow Duplex in the R1a Zoning District This item was continued from the November 16, 2020 City Council meeting. Mr. Carlton presented the staff report. Applicant may operate as a single-family use. This approval gives them two years to complete the conditions and establish use as a two-family rental. Mayor Dietz opened the public hearing. Michelle DeMars, 9754 Viking Blvd, asked the council to grant her request for a permit. Mayor Dietz closed the public hearing. Moved by Councilmember Christianson and seconded by Councilmember Ovall to approve the Interim Use Permit with the following conditions: 1. The Interim Use shall terminate upon sale or transfer of ownership. City Council Minutes Page 4 December 7, 2020 ----------------------------- 2. The property must have a rental license for the duration of the two-family rental operation. 3. The structure must be inspected by the building official and must comply with all building and fire codes for a two-family rental building. 4. The Interim Use Permit will be recorded against the property to put any future buyers on notice that the Interim Use Permit will not run with property. 5. The structure shall be returned to a single-family home prior to sale or transfer of ownership. This shall include, but not limited, removing anything that physically separates the two spaces, removal of extra meters (gas and/or electric), one postal address. Motion carried 5-0. 4.7 2020 budget amendments and transfers Ms. Ziemer presented the staff report. Mayor Dietz asked about using CARES funding as a grant to help organizations and individuals with their electric bills. Ms. Ziemer stated Sherburne County has been using their CARES funding for helping in this area and it would duplicate services to provide this as well. Mayor Dietz asked about the expense for a telework line. Ms. Ziemer explained the expense covered several IT related items including moving to cloud based infrastructure and additional IT licenses for employees to work from home. Mayor Dietz clarified the floor scrubber and turf vacuum were for the Furniture and Things Community Event Center. Ms. Ziemer made a change on the budget amendment changing the CARES Grant Supplies item from $158,959 to $151,363 and the Equipment from $49,139 to $56,735 to match detail expenditures. Moved by Councilmember Westgaard and seconded by Councilmember Ovall to approve the budget amendments related to the CARES grant funds. Motion carried 5-0. Moved by Councilmember Westgaard and seconded by Councilmember Christianson to adopt Resolution 20-96 authorizing a transfer from the CARES Grant to the General, Multipurpose Facility, Sewer, and Liquor Funds. Motion carried 5-0. 8.2 Consider Excess Leave Extension City Council Minutes Page 5 December 7, 2020 ----------------------------- Mr. Portner presented the staff report. Council clarified that an employee’s hours must get to the 240 mark before the end of 2021. Moved by Councilmember Christianson and seconded by Councilmember Wagner to approve a one-time extension to carry over excess vacation leave. Motion carried 5-0. 8.3 2021 Council Appointments Mr. Portner presented the staff report. Moved by Councilmember Wagner and seconded by Councilmember Ovall to approve the following commission appointments: 1. Heritage Preservation Commission – Garrett Christianson – Term expiration December 31, 2022 2. Planning Commission – Mike Beyer – Term expiration December 31, 2022 3. Energy City Commission – Jennifer Wagner – Term expiration February 28, 2023 4. Library Board – Garrett Christianson – Term expiration December 31, 2022 5. Parks and Recreation Commission – Jennifer Wagner – Term expiration December 31, 2022 6. Administrative Hearing Board – Mike Beyer and Garrett Christianson – Terms expiration December 31, 2022 7. Economic Development Authority – Mike Beyer and Matt Westgaard – Terms expiration December 31, 2024 8. Housing and Redevelopment Authority – Jennifer Wagner – December 31, 2022 Motion carried 5-0. 8.4 Discuss Work Session Items Mr. Portner presented the staff report. He discussed adding a joint meeting with the Energy City Commission in January 2021. Mayor Dietz asked about the status of the Cyber Security Committee. Councilmember Wagner responded that she was continuing to work on the cyber security project. 9. Council Liaison Updates Each councilmember provided an update which is further outlined in the respective advisory board minutes. City Council Minutes Page 6 December 7, 2020 ----------------------------- 10. Adjournment There being no further business, Mayor Dietz adjourned the meeting of the Elk River City Council at 8:00 p.m. Minutes prepared by Katie Porath. ___________________ John J. Dietz, Mayor ___________________ Tina Allard, City Clerk