4.1. DRAFT MINUTES (1 SET) 06-21-2021
Meeting of the Elk River City Council
Held at the Elk River City Hall
Monday, June 7, 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, Planning Manager Zack Carlton,
Senior Planner Chris Leeseberg, Finance Director Lori Ziemer, City
Attorney Peter Beck, and City Clerk Tina Allard
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 6:30 p.m. by Mayor Dietz.
2. Pledge of Allegiance
Pledge of Allegiance was recited.
3. Consider Agenda
Moved by Councilmember Westgaard and seconded by Councilmember
Christianson to approve the agenda. Motion carried 5-0.
4. Consent Agenda
Moved by Councilmember Westgaard and seconded by Councilmember
Wagner to approve:
4.1 May 17, 2021, Minutes
4.2 Check register as outlined in the staff report.
4.3 HGA proposal for branding and design guidance at the FTCenter as
outlined in the staff report.
4.4 Accept $28,300 from the Minnesota Department of Transportation for
temporary easement on city property to accommodate the Highway
169 Redefine Project and to grant the Permit to Construct.
4.5 Change Order 1.1, 1.2 and 1.3 as outlined in the staff report.
4.6 Liquor license renewals valid July 1, 2021, through June 30, 2022, as
outlined in the staff report.
4.7 Promote Joe Gacke to Administrative Captain effective May 18, 2021,
as outlined in the staff report.
4.8 Pay estimates as outlined in the staff report.
4.9 Law enforcement Services Agreement 21-18
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4.10 Resolution 21-38 approving conveyance of certain property to Elk
River Municipal Utilities
Motion carried 5-0.
5. Open Forum
No one appeared for Open Forum.
6.1 2020 Audit Presentation
Michelle Hoffman and Troy Gabler, CliftonLarsonAllen, presented an overview of
the Annual Comprehensive Finance Report for the year ended December 31, 2020.
Moved by Councilmember Wagner and seconded by Councilmember
Westgaard to accept the Annual Comprehensive Financial Report. Motion
carried 5-0.
7.1 Conditional Use Permit: Establish Educational Use, 413 Proctor
Avenue
Mr. Carlton presented the staff report.
Mayor Dietz opened the public hearing. There being no one to speak to this issue,
Mayor Dietz closed the public hearing.
Moved by Councilmember Christianson and seconded by Councilmember
Westgaard to approve a conditional use permit to First Step Preschool to
establish an educational use at 413 Proctor Avenue. Motion carried 5-0.
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7.2 Preliminary Plat: Majestic Oaks, 13275 207 Avenue
Mr. Leeseberg presented the staff report.
Mayor Dietz opened the public hearing.
Steve Rohlf, 12821 188th Avenue, representing the applicant, addressed the
following regarding the comment letter:
Ability to work with staff for house pads/driveway slope.
Can wet ponds be in the wellhead protection area.
introduced of Lisa and Nate Klein who were in attendance to give
permission for grading on their property.
Request to delay the requirement to cut down the oak trees to avoid oak wilt.
The wellhead question would be deferred to environmental staff.
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Lisa Klein, 13315 207 Avenue, stated the following:
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Expressed verbal permission for grading on her property.
Concerns for oak wilt if the trees are cut prior to July 15.
Would like to improve the safety and security of the neighborhood by having
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streetlights installed. Would also like to see a streetlight placed at the 207
Avenue and Elk Lake Road intersection.
Mayor Dietz closed the public hearing.
Council directed staff to work with Elk River Muncipal Utiliteis regarding lighting.
Moved by Councilmember Westgaard and seconded by Councilmember
Wagner to approve Preliminary Plat, Case No. P 21-04 for Majestic Oaks with
the condition that all comments on the Comment Letter dated April 7, 2021,
shall be addressed and an added Condition #9 for staff to work with the
developer for driveway locations. Motion carried 5-0.
7.3 Simple Plat: Rise Up Addition, 809 Jackson Avenue
7.4 Conditional Use Permit: Allow Religious Institution, 809 Jackson
Avenue
Mr. Leeseberg presented the staff report for both items.
Mayor Dietz opened the public hearing for both items.
Larry Toth, 17511 Quincy Street, questioned if the city considered putting in a turn
lane at the School/Jackson Street intersection.
Mayor Dietz closed the public hearing for both items.
Mr. Leeseberg stated the city engineer has reviewed this application and expressed no
issues with the surrounding traffic flow.
Councilmember Westgaard questioned whether park dedication was paid by a
previous owner.
Staff confirmed it had not.
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Ken Beaudry, 12696, 223 Court, stated this facility will be unique and used by
different ministries with a focus on creating positive impacts for youth. He stated his
group hopes to form partnerships between businesses, city, school district, and
others. He asked the city to help with park dedication, sewer/water accessibility, and
building permit fees.
Mr. Beck stated these fees cover expenses related to city regulatory functions and
can’t be waived without causing repercussions and setting precedent with other
entities. He stated there may be some economic development program opportunities
the group could pursue.
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Moved by Councilmember Wagner and seconded by Councilmember Beyer
to adopt Resolution 21-39 granting final plat approval for Rise Up Addition,
Case No. P 21-06 with the condition park dedication be paid at the applicable
commercial rate when the lot is released for recording. Motion carried 5-0.
Moved by Councilmember Beyer and seconded by Councilmember Wagner
to approve Conditional Use Permit Case No. CU 21-11 with the following
conditions to satisfy the standards set forth in Section 30-654:
1. A cross access/parking easement agreement, with the property to the
south (Lot 2, Block 1, Rise Up Addition), shall be recorded at the county.
2. The five existing evergreen trees located in the northeast corner of the
property shall be removed.
3. The retaining wall along the north side of the lot shall be removed up to
the existing power pole and telephone and blend the contours into the
site.
Motion carried 5-0.
7.5 Conditional Use Permit: Private Kennel, 18857 Albany Street
Mr. Leeseberg presented the staff report.
Mayor Dietz opened the public hearing. There being no one to speak to this issue,
Mayor Dietz continued the public hearing to June 21, 2021.
Moved by Councilmember Christianson and seconded by Councilmember
Westgaard to continue the public hearing to June 21, 2021. Motion carried 5-0.
7.6 West Oaks, LLC and Heritage Maples Senior Living, LLC – Broadway
on 10
Conditional Use Permit to Establish a Planned Unit Development
Preliminary Plat of Broadway on 10
Mr. Carlton presented the staff report.
Mayor Dietz opened the public hearing.
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Michelle Brisk-Wallace, 18628 144 Street, Big Lake Township, expressed
concerns with traffic.
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Marilyn Van Patten, 10451 175 Avenue, stated she has an alternative solution
noting there is a future street where the city had taken a part of her property for a
previous development. She questioned if it could be widened and extended to Waco
Street.
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Denny Chuba, 10451 175 Avenue, stated the developers for this property are
proposing to put the street connection in toward Big Lake Township to Highway 10.
He stated a similar project with more traffic was approved about 15 years ago, noting
the project didn’t get built due to the economy at the time.
Mayor Dietz continued the public hearing to July 6, 2021.
Moved by Councilmember Beyer and seconded by Councilmember Wagner
to continue the public hearing to July 6, 2021. Motion carried 5-0.
8.1 Conveyance of Pinewood Golf Course to AJT Holdings, LLC
Mr. Portner presented the staff report.
Councilmember Christianson questioned the cost of city sewer and water hookup.
Staff will gather and provide the data.
Moved by Councilmember Westgaard and seconded by Councilmember
Christianson to adopt Resolution 21-40 approving a conveyance of Pinewood
Golf Course to AJT Holdings, LLC. Motion carried 5-0.
8.2 Discuss Work Session Items
Mr. Portner presented the staff report.
Councilmember Wagner requested a brief recap on road construction projects due to
the amount of work happening around the city.
9. Council Liaison Updates
Councilmembers provided updates as outlined in the respective advisory board’s
minutes.
Councilmember Christianson noted he met with a group about long term
interchange plans for Highway 10 and reminded everyone about the open houses.
Council recessed at 8:06 pm and reconvened at 8:11 pm.
10.1 Rolling Hills Sewer Improvement Assessment Direction
Mr. Portner presented the staff report.
Councilmember Westgaard noted this will be a significant expenditure for the
property owners, plus they’ll have additional costs for work on their own property.
Mayor Dietz questioned how this would affect resell for property owners.
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Tyler Erickson, 9753 226th Lane, stated they have no alternatives. He said if they
build a septic system, they still must pay for it and have no way to collect the money
for it. He stated they hope to find a way in the future to ease the burden.
Council consensus to override policy and allow this project to be assessed for
30 years.
Mr. Beck discussed a possible option to allow platting and selling of additional lots
(conservation areas). He questioned how residents feel about this to help ease the
cost burden. He noted it’s a very grey area and a lot of details would need to be
reviewed and worked out. He further noted conservation easements could be
problematic, there are covenants that affect the land and would have to change, land.
use amendments by Council, along with parkland issues.
Residents in attendance expressed an openness to explore the option.
Mr. Portner asked if Council would be open to allow further development to help
offset the costs.
Council consensus to pursue if there is a legal way to allow development to
help offset costs.
10.2 Concept Review: MMPA Zoning and Land Use Amendment
Mr. Carlton presented the staff report.
Stephanie Falkers, Planner with SRF Consulting, stated Minnesota Municipal
Power Association (MMPA) supports economic development and wants to partner
with Elk River to bring new high paying jobs into the community from a high energy
use perspective. She stated they are not looking to attract noisy or smelly businesses.
She stated they are seeking zoning and land use changes to make a development
ready site. She discussed the concept, which is to attract a high value environmentally
conscious industrial use (I3 zoning). She stated they have identified some high-
quality, high-energy industrial uses such as data centers and advanced manufacturing.
She reviewed site considerations, traffic, utilities, lot sizes, compatible residential
uses, comprehensive plan, and tax base.
Jim Richardson, MMPA Director of Energy Marketing, provided an overview of
MMPA. He stated it is nearly impossible to find large lots for this type of industrial
use. He further stated the companies that need this type of lot will build and pay for
the infrastructure and then turn it over to the city.
Councilmember Westgaard discussed impact concerns with adjacent property
owners and suggested reviewing how the zoning uses are guided. He discussed a
transition in types of uses from the highway toward the residential areas. He
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suggested creating a Planned Unit Development for better control in guiding
development. He suggested concepts be provided to help visualize the transitions.
Mr. Richardson cited some examples (New Albany, Ohio, Berkeley County South
Carolina Google Center, and Faribault Energy Park) where industrial parks are
located next to million-dollar homes, but you are unable to tell because of
landscaping, buffers, trails, and lighting in rural settings. He stated the days of the old
style of industrial parks with the large concrete walls and smoke plumes are gone and
no community will accept them.
Council consensus to direct staff to pursue options for zoning and land uses.
Mr. Carlton stated this may be an opportunity to look at the zoning districts and to
list uses that target a goal rather than by definition, giving Council broader decision-
making capabilities.
Mr. Beck questioned the status of the parcel of land located in Livonia Township
and asked if annexation should be considered, noting it’s not in our electric service
territory.
Mr. Richardson stated as long as this area abuts Elk River, MMPA could serve it. He
stated the idea is to treat it as a single piece similar to Elk River, but the city could
annex it if desired.
10.3 City Initiated Roadway Extension
Mr. Carlton presented the staff report. He cited examples and noted there are
opportunities for roadway connections outside of development areas and he
questioned if Council had any interest in exploring the use of city funds to make
some of these connections. He stated staff could develop a list for consideration.
Mayor Dietz questioned if there is any way to assess property owners along the
routes. He would like more information on costs, what can reasonably be assessed,
costs for the city and the funding source. He stated it may be a good idea for staff to
reach out to the property owner near the West Oaks, LLC/Heritage Maples Senior
Living, LLC, Broadway on 10, development a call, and if possible, offer up right-of-
way in exchange for the assessment.
Mr. Beck stated yes as it would be a benefit to the property owners and to the
developable property.
Council consensus to consider options and bring back cost estimates.
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10.4 2022 Budget
Ms. Ziemer presented the staff report. She stated staff will plan on the same level of
services in 2022 as was used in 2021, realizing more amenities have been added with
the FTCenter and park amenities, which adds maintenance costs.
Council consensus to hold special council budget meetings on the Monday
dates outlined in the staff report.
Council asked for calendar invites for meetings and events.
Ms. Ziemer discussed union contracts, wages, and benefits.
Mr. Portner suggested an update to the wage study to make sure we are comparable
with peer cities. He stated we are competing with other communities for employees
on wages. He noted the study wasn’t completed when implemented four years ago
because of intentions to develop a wellness program that didn’t occur, so the city
never got to market rate. He stated we should look at internal/external equity and
the current market.
Mayor Dietz stated having a $2 million debt levy is too much and he’d like to keep it
around $1.4 million because it would be too big of a hit to the tax rate. He stated
why not wait until 2023 when the $600,000 debt levy is gone, and this would only
add $1.4 million to the tax levy versus $2 million. He said what difference would one
more payment be out of existing reserves.
Ms. Ziemer discussed current park improvement funding as noted in the staff report.
Mayor Dietz stated it would help the Parks and Recreation Commission planning
process when they know they get a set amount or more each year.
Council consensus to change the Park Improvement Fund as outlined in the
staff report.
10.5 Advisory Board Selection Process
Ms. Allard presented the staff report.
Councilmembers Beyer and Christianson would like more time to make the process
more meaningful and spend more time to review and discuss candidates after
interviews.
Councilmember Wagner wasn’t sure about term limits and gave examples of long-
term members who do a lot for the community.
Councilmember Christianson stated he doesn’t like the idea of lifetime appointments
either. He stated it is good to have an accountability component added.
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Mayor Dietz suggested updating the application form for interview questions.
Councilmember Wagner noted the Council could be better at asking interview
questions as well.
Council consensus to interview candidates prior to the regular Council
meeting, then have a discussion later in the evening during the worksession
portion of the regular meeting, with appointments made at the following
meeting.
10.6 Schedule Joint Meeting with Sherburne County Commission
Mr. Portner presented the staff report.
Council reviewed dates and staff will coordinate with the county.
11. Adjournment
There being no further business, Mayor Dietz adjourned the meeting of the Elk
River City Council at 10:16 p.m.
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John J. Dietz, Mayor
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Tina Allard, City Clerk