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04-19-2021 Regular CCMMeeting of the Elk River City Council Held at the Elk River City Hall Monday, April 19, 2021 Members Present: Mayor John Dietz, Councilmembers Garrett Christianson, Mike Beyer, Matt Westgaard, and Jennifer Wagner Members Absent: None Staff Present: City Administrator Calvin Portner, City Attorney Peter Beck, Economic Development Specialist Colleen Eddy, Finance Director Lori Ziemer, Planning Manager Zack Carlton, Senior Planner Chris Leeseberg, Building Maintenance Supervisor Gary Lore, and Records Specialist Katie Porath 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 5:58 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 Christianson to approve the agenda. Motion carried 5-0. 4. Consent Agenda Moved by Councilmember Westgaard and seconded by Councilmember Wagner to approve: 4.1 April 5, 2021, Regular minutes April 12, 2021, Board of Appeal and Equalization minutes 4.2 Check register as outlined in the staff report. 4.3 Pay estimates as outlined in the staff report. 4.4 Engineering Design Standards 4.5 Municipal State Aid System Revisions 4.6 Interim Pay 4.7 Recreation Facilities Sponsorship Agreements — The Bank of Elk River, Metal Craft 4.8 Ordinance Amendment: Address Change 4.9 Temporary On -Sale Liquor License — Aegir Brewing Co. LLC 4.10 General Fund Transfer 4.11 Extend Lease Option Agreement with iBackcheck Sports Therapy 4.12 Purchase Agreement Addendum First Step Due Diligence Extension City Council Minutes Page 2 April 19, 2021 Motion carried 5-0. S. Open Forum No one appeared for Open Forum. 6.1 City of Elk River Volunteer of the Month Mayor Dietz presented the April Volunteer of the Month award to Gary Keifenheim. He highlighted the following: ■ Open Doors for Youth volunteer • Works with Meals on Wheels • Woodland Trails volunteer ■ Lector at St. Andrew's Church ■ Facilitator for Alternatives to Violence Program 6.2 All Aboard Minnesota Tom Beaumont, volunteer with All Aboard Minnesota, presented the staff report. All Aboard is asking for support of several bills before the Minnesota State Senate and House that will provide $10,000,000 in capital investment to improve trail routes between Minneapolis/St. Paul and Chicago, IL. Wisconsin and Illinios have already contributed toward the project but money from the federal government will not be released unless Minnesota contributes as well. Council asked for time to consider the request. 7.1 Tax Increment Financing A. Redevelopment District No. 27, Riverwalk Apartments B. Modification of Development District No. I C. Adoption of a Tax Increment Financing Plan Ms. Eddy presented the staff report. Mayor Dietz opened the public hearing. There being no one to speak to this issue, the public hearing was continued to the May 3, 2021, City Council meeting. Ms. Eddy stated that the city was working with a third -party appraiser and hopes to have the results by the May 3, 2021, City Council meeting. Moved by Councilmember Westgaard and seconded by Councilmember Christianson to continue the public hearing for this item to May 3, 2021, City Council meeting. Motion carried 5-0. 7.2 Conditional Use Permit for Agricultural Animals, Lillian Soza, 14296 214t' Avenue KUR City Council Minutes Page 3 April 19, 2021 Mr. Leeseberg presented the staff report. Mayor Dietz opened the public hearing. Tim Mullin,14280 214'' NW, Elk River, addressed concerns as the neighbor of the applicant including smell and bugs from keeping pigs, if the pigs would be kept over winter, the process of complaints in the case of smell or noise, who verifies the complaint and if there is a cost to confirming the problem, the timeline of the grievance process, and the request for more chickens than allowed on the property size. Currently, the ordinance states that 12 chickens are allowed on 2.5 or more acres and the applicant has 12 chickens on 2.2 acres and is requesting 24 chickens. Mr. Mullin also asked if there is a time limit to get a Conditional Use Permit (CUP) and if it expires. Does the CUP go with the house and would there be an effect on property value? Carlos Soza,14296 214'' Ave NW, Elk River, the applicant, addressed some of the concerns stating his family wants to maintain a good relationship with their neighbors and the city. He is willing to forego pigs due to the smell and work within the regulations that are proposed. Mayor Dietz closed the public hearing. Mr. Leeseberg answered Mr. Mullins questions. The applicant has two years to complete the conditions of the CUP. The CUP will only expire if the applicant does not have any activity for six months and the CUP will go with the property. Agricultural animals have a section of the ordinance and chickens have another layer of rules. The applicant currently has more than the permissible number of chickens based on his property size but the CUP would allow for more. Attorney Beck talked about the revocation of a CUP and complaints. Complaints would be investigated by staff and, if there are violations of the conditions, it would require a hearing and a decision from the council on whether the conditions have been violated. If so, the CUP could be revoked. Determining a violation due to smell is difficult. There is no cost to neighboring properties to investigate a complaint. Attorney Beck explained that the CUP would be in affect until its use for agricultural animals was discontinued for six months. However, seasonal animal use would not cause it to expire. Attorney Beck suggested, if the applicant was no longer requesting pigs, the council could approve the CUP with the condition that there were no pigs. Council was not in favor of allowing pigs. The CUP allows council to put in conditions to control the quantity and type of agricultural animals allowed. PO1[AII il' NATURE City Council Minutes April 19, 2021 Page 4 Attorney Beck asked the applicant if he would be comfortable getting approval for two goats and 24 chickens and amending the CUP for additional goats at a later date. Mr. Soza stated that the CUP process was $1,200. Would the amendment cost more? Attorney Beck stated an amendment to the CUP would be an additional fee unless the council chose to waive it. Council discussed allowing .50 animal units to include goats and chickens, but not allowing more than 24 chickens. Moved by Mayor Dietz to approve the Conditional Use. Permit with the following conditions to satisfy the standards set forth in Section 30-654: 1. Submit drawings/exhibits demonstrating compliance with Section 30- 803(d). 2. Agricultural fencing shall be installed three feet from adjacent properties. 3. Total animal units equal to .50, no more than 24 chickens, no pigs, no COWS. Motion failed for lack of a second. Council discussed the language of the motion and suggested limiting the types of animals to only goats or chickens to equal .50 animal units but not naming specific animals that were not allowed. Moved by Mayor Dietz and seconded by Councilmember Christianson to approve the Conditional Use Permit with the following conditions to satisfy the standards set forth in Section 30-654: 1. Submit drawings/exhibits demonstrating compliance with Section 30- 803(d). 2. Agricultural fencing shall be installed three feet from adjacent properties. 3. No more than 0.50 agricultural animal units shall be allowed. 4. The maximum number of chickens allowed shall be 24. 5. Goats and chickens shall only be allowed. Motion carried 5-0. Mr. Portner requested to move Items 8.1 and 8.2 on the agenda. 8.1 Approval of Sale of 2021 A Bonds Ms. Ziemer presented the staff report. Terri Heaton, Baker Tilly, gave council an overview of the sale of the bonds. Three bids were received and the low bidder, Piper Sandler, came in at 1.47% which was below the estimated rate of 1.77%. This difference will result in a savings of $153,000 in interest. Since it was a premium bid, the amount will be $4,805,000 instead of $5,225,000 and the city has a stable AA+ rating. W 'aII Ir 1 URE City Council Minutes April 19, 2021 Page 5 Moved by Councilmember Wagner and seconded by Councilmember Westgaard to adopt Resolution 21-32 awarding the sale of $4,805,000 General Obligation Capital Improvement Plan and Equipment Bonds, Series 2021A fixing their form and specifications; directing their execution and delivery; and providing for their payment. Motion carried 5-0. 8.2 Authorize the Sale of Water Revenue Bonds Ms. Ziemer presented the staff report. Mayor Dietz clarified that the bonds have not yet been sold. Ms. Ziemer confirmed that the resolution would authorize their sale. Moved by Councilmember Westgaard and seconded by Councilmember Wagner to adopt Resolution 21-33 approving the issuance of General Obligation Water Utility Revenue Bonds, and authorizing certain other actions to be taken by the Elk River Municipal Utilities Commission with respect to the issuance of General Obligation Water Utility Revenue Bonds, Series 2021C. Motion carried 5-0. 7.3 Preliminary and Final Plat: Tranquil Meadows — 2S Lot Residential Subdivision, 18990 Twin Lakes Road NW Mr. Leeseberg presented the staff report. Mayor Dietz opened the public hearing. Dave Burandt, 19118 Tyler St NW, Elk River, asked about the retaining pond on the west edge. Will stormwater leach out of the ditch into the river? Mr. Leeseberg stated that the water runoff will not be greater than it is currently. Mr. Burandt asked about the design of the roundabout. Mr. Leeseberg stated that the design was not finalized. Steve Rohlf 12821188`' Ave NW, Elk River, presented information as the developer of the project. He requested to delay permits to allow the County to finish their project on County Road 13. Internal sewer and water will be completed but won't come across County Road 13 until after the roundabout is completed. Mr. Rohlf stated that the development should not need sidewalks. He also stated that there is an expense to running the sewer and water lines under County Road 13 and to continuing sewer and water lines to the edge of the property. Since the nearby property owners are not interested in developing, he would like to stub the lines short of the edge of the property. P0VFaE1 er FNATURJE City Council Minutes April 19, 2021 Mayor Dietz closed the public hearing. Page 6 Council felt they had seen too many issues with stopping sewer and water lines short of the property line. In the future, the nearby property may want to develop, and it would disrupt the development to connect at that time. Mr. Rohlf stated that the sewer and water lines end in the right-of-way. Council also felt that sidewalks should be included in the development plan since the streets were narrow and people would be forced to walk on the streets amongst traffic. Councilmember Westgaard asked about the "flag lot" property. He questioned if it had the proper amount of street footage to be a legal lot. Mr. Leeseberg explained that it was not considered a flag lot. The future driveway would exit onto the roundabout. Councilmember Christianson asked who would be responsible for shoveling a sidewalk if it were added to the development plan. Councilmember Wagner asked if parking was allowed on both sides of the street and if there was enough space between driveways for cars to park. Mr. Leeseberg confirmed that parking was allowed on both sides with ample room for traffic and he does not foresee any problems with parking between driveways. Moved by Councilmember Christianson and seconded by Councilmember Westgaard to approve the Preliminary Plat for Tranquil Meadows with the condition that all comments noted in the March 5, 2021, comment letter are addressed. Motion carried 5-0. Moved by Councilmember Wagner and seconded by Councilmember Westgaard to adopt Resolution 21-30 granting Final Plan approval for Tranquil Meadows, Case No. P 21-03 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. The final plat shall be updated to reflect the approved wetland boundary as determined by a wetland delineation. 3. Park dedication be paid for the final number of dwelling units, at the applicable rate when the subdivision is released for recording. 4. The trail and utility stubs along Tyler Street shall extend to the north limits of the subject parcel. 5. Water Availability Charge shall be paid in the amount required by the city when the final plat is released for recording. 6. A Letter of Credit shall be provided to the city in the amount of 100% of the costs of the public improvements. P011FAII 11 NATURE City Council Minutes April 19, 2021 Page 7 7. 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. 8. Development Plan shall be approved by the city engineer prior to issuance of building permits. 9. Staff approval of all updated site and engineering plans. 10. 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. 11. Include sidewalks on one side of all streets throughout the development. Motion carried 5-0. 7.4 Easement Vacation: Oxford Avenue Right of Way 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. Councilmember Westgaard questioned the division of the right-of-way. By State law, it should be split between the adjacent properties but the benefits all seemed to go toward the property on the west. Mr. Carlton explained that the property to the east was already within the MnDOT right-of-way. Moved by Councilmember Christianson and seconded by Councilmember Beyer to adopt Resolution 21-31 vacating a portion of the right-of-way for Oxford Avenue, with the condition that recording of the resolution shall be coordinated with the construction schedule for Highway 10. Motion carried 5- 0. 7.S Lot Split: Osberg Acres, 101 19 221 "t Ave NW 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 Westgaard and seconded by Councilmember Christianson to approve the lot split request for Lot 2, Block 1, Osberg Acres (10119 221" Ave NW) with the condition that park dedication shall be paid for one (1) dwelling unit at the rate applicable when the subdivision is released for recording. Motion carried 5-0. P 0 V E A E 1 0 r City Council Minutes April 19, 2021 Page 8 Council recessed at 8:05 p.m. in order to move to work session and reconvened at 8:12 p.m. 9.1 Mini Storage Mr. Carlton presented the staff report. Two representatives for the applicant were in attendance. Council asked if Pullman Place had been contacted regarding the project. Mr. Carlton stated that, should the council wish to move forward with the proposed project, Pullman Place and property owners within 500 feet would be notified. Council agreed with the Planning Commission recommendations that the structures be neutral colored and fencing and landscape screening be required. Councilmember Wagner and Mayor Dietz questioned if this was the best use of the property. Council was not sure what other type of development would work well on the property given its traffic access limitations, proximity to the tracks, and the amount of traffic coming out of the train station. Council stated the project could continue. 9.2 Turf Establishment Standards and Maintenance Mr. Carlton presented the staff report. Some type of ground cover needs to be established at the Main and Gates project area, however, quotes came in at $34,000- 41,000. The goal is to sell the property as soon as possible and it would be wasteful to put that much money into it, however, it is an expectation the city has for other developers and properties that they should meet themselves. Mayor Dietz asked if the Park Maintenance department could grade, plant grass seed, water, and keep the lot maintained. Mr. Carlton stated they had an updated quote from Super T's which came down to $14,000 to include getting rid of the remaining stumps. Mr. Carlton added that, given the highly visible location, it was important that the appearance be maintained. Mr. Portner will look at the capacity of the Parks and Streets department to take care of this project as a first option. NATURE City Council Minutes April 19, 2021 Page 9 Councilmember Wagner asked Mr. Portner to bring the item back to a Housing and Redevelopment Authority (HRA) meeting. Council directed no ordinance change but to establish turf as soon as possible. 9.3 Mask Mandate for Outdoor Youth Sports Mr. Portner presented the staff report. Eric Nelson,15851 St. Andrews Ln, Ramsey, was in attendance to ask the council to not use city resources to enforce mask mandates in outdoor youth sports. Mayor Dietz asked what the responsibility of youth organizations in this situation would be. Mr. Portner explained that the mask mandate is administered the same as indoor sports and it is up to the organizations utilizing the fields to submit COVID-19 plans and follow their rules. If complaints are received, the city would reach out to the organization and ask them for compliance. Councilmember Westgaard stated that some of the fields in Elk River are city owned and others are managed by Independent School District (ISD) 728. Mayor Dietz asked if the city has received a COVID-19 plan from youth baseball and softball. Mr. Hecker said the city has. If the governor's orders change their plan could be adjusted. The only way the city would get involved is if plans were submitted and people complain that the mask mandate is not being followed. Councilmember Wagner pointed out that council's do not have the power to tell law enforcement which laws to enforce and which not to enforce. Police have to uphold state laws. Councilmember Westgaard stated that they could only discuss city -owned property. Anything owned by ISD 728 would have to be discussed with the school district. If the city got to the point where the state shut down fields, user groups that complied with mask mandates would also lose field privileges as well as those who did not comply. Mayor Dietz stated that pressure from the Minnesota State High School League could lead to changes. Mr. Nelson did not feel that public health policy should be dictated by who provides the most pressure. Councilmember Christianson felt it was not the role of the city to step in. The state should enforce the mandate since it was their decision. P O 11 E A E A 8 r [N'ATURE] City Council Minutes April 19, 2021 Page 10 Counciltnember Wagner stated that the city is planning to hear complaints, pass them to youth sports associations, and address potential field closures if the state contacts the city. 9.4 Discuss Additional Custodian Mr. Lore presented the staff report. Mayor Dietz asked if the request was a result of increased cleaning due to COVID- 19. Mr. Lore stated that the request is more due to increased amount of area to clean with the addition of park buildings and expansions. The Council's consensus was to hire an additional custodian. 93 2021 Fireworks Mr. Hecker presented the staff report. Council decided to wait to upgrade the size of the firework until a more permanent firework launching spot was established that could handle the larger shell size. Council determined to stay with the 5 inch shell for the 2021 show. 9.6 Benches in Right -of -Ways Mr. Portner presented the staff report. Council felt they could start a precedence by providing benches and determined not to put a bench outside of the Department of Motor Vehicle site. Mayor Dietz added that he would be presenting a Mayor's Award to Elk River Meats on Saturday, May 1, 2021 in light of their retirement. He suggested the owners of Elk River Meats be invited to a future EDA meeting for their 50 years of service in the community. 10. Adjournment There being no further business, Mayor Dietz adjourned the meeting of the Elk River City Council at 9:48 p.m. Minutes prepared by Katie Porath. 4JJn J � Dietz, 44ayor PF0jWIaEO I �ATUIRE �_� City Council Minutes Page 11 April 19, 2021 Tina Allard, City Clerk NA