11-07-2022 CCMMeeting of the Elk River City Council
Held at the Elk River City Hall
Monday, November 7, 2022
Members Present: Mayor John Dietz, Councilmembers Mike Beyer, Garrett
Christianson, and Matt Westgaard
Members Absent: Councilmember Jennifer Wagner
Staff Present: City Administrator Calvin Portner, City Attorney Peter Beck, Finance
Director Lori Ziemer, Police Chief Ron Nierenhausen, Community
Development Director Zack Carlton, Public Works Director Justin
Femrite, Street and Park Superintendent Tim Sevcik, Multipurpose
Facility Superintendent Tim Dalton, Human Resource Manager
Lauren Wipper, and Senior Admin. Assistant Jennifer Green
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 6:30 p.m. by Mayor Dietz.
2. Pledge of Allegiance
Pledge of Allegiance was recited.
3. Consider Agenda
Mayor Dietz requested Item 4.14 Purchase Agreement: RAN Properties, Natures
Edge Business Center Third Addition, and Item 4.15, Hire Park Maintenance
Worker, be added to the Consent Agenda.
Moved by Councilmember Westgaard and seconded by Councilmember
Beyer to approve the agenda with the additions of Item 4.14 and 4.15 as noted
above.
Motion carried 4-0.
4. Consent Agenda
Moved by Councilmember Westgaard and seconded by Councilmember
Christianson to approve the consent agenda as follows:
4.1 City Council meeting minutes for October 17, 2022, Regular and
October 28, 2022, Closed Meeting Minutes.
4.2 Check register as outlined in the staff report.
4.3 Call closed meeting for Labor Negotiations LELS Locals 231 for
Monday, November 7, 2022, immediately following the City Council
meeting.
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November 7.2022
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4.4 Resolution 22-58 designating 2023 Polling Locations as outlined in the
staff report.
4.5 Authorization of Agreement 22-33 and Resolution 22-59 for Execution
of a Grant Agreement for the Toward Zero Deaths Grant as outlined in
the staff report.
4.6 Hire Paid on Call Firefighter Logan Hemmesch effective November 7,
2022.
4.7 Agreement 22-34 approving the termination of the management
agreement between the City of Elk River and Serrano Brothers
Catering effective October 17, 2022, as outlined in the staff report.
4.8 Resolution 22-60 accepting contributions to liquor operations for Fire
Department Fundraiser as outlined in the staff report.
4.9 Approving the Sherburne County Assessment Services Agreement 22-
35 effective January 2, 2023, through June 30, 2027, to perform property
assessments for 2025-2027 as outlined in the staff report.
4.10 Settlement Agreement and Release of Claims for Mike Zappa
Separation Agreement 22-36 as outlined in the staff report.
4.11 Bernick's Full Line Vending Agreement 22-37 for snack and beverage
vending at the Furniture and Things Community Event Center
effective November 2, 2022, as outlined in the staff report.
4.12 2023 Streets, Parks, and Building Maintenance Divisions Equipment
Replacement Fund Purchases as outlined in the staff report.
4.13 Accept Developer Installed Public Improvements as outlined in the
staff report.
4.14 Resolution 22-62 approving Purchase Agreement 22-38 between the
City of Elk River and RAN Properties (GATR) for 6.86 acres of city
owned property in Natures Edge Business Center Third Addition as
outlined in the staff report.
4.15 Hire Daniel Hampton as Park Maintenance Worker at step A of the
IUOE Local 49 Labor Contract effective November 21, 2022.
Motion carried 4-0.
S. Open Forum
No one appeared for Open Forum.
6.1 Presentations, Awards, and Recognition
Chief Nierenhausen introduced and provided background on Officers Dakota Shafer
and Ryan Cowley.
Mayor Dietz administered the oath of office to Police Officers Dakota Shafer and
Ryan Cowley.
7.1 Plat: Beaudry Elk River Addition
Mr. Carlton presented the staff report.
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Mayor Dietz noted the public hearing was still open. There being no one to speak,
Mayor Dietz closed the public hearing.
Moved by Councilmember Christianson and seconded by Councilmember
Beyer to adopt Resolution 22-61 approving the plat of Beaudry Elk River
Addition with the following conditions:
1. The wetland boundary shown on the plat shall be updated to reflect
the final approval given by the Technical Evaluation Panel (TEP).
2. The TEP shall approve all proposed wetland impacts and fill prior to
releasing the final plat for approval.
3. The applicant shall provide documentation demonstrating compliance
with the wetland replacement standards having been met.
4. Final established wetland boundaries, based on the TEP approved
wetland impacts, shall be identified on the plat along with a 45-foot
drainage and utility easement.
Motion carried 4-0.
8.1 Energy City Commission Appointments
Moved by Councilmember Westgaard and seconded by Councilmember
Christianson to appoint Levi Aesoph to the Energy City Commission for a
term ending 2/28/2023 and appoint Anthony Miller to the Energy City
Commission for a term ending 2/29/2024.
Motion carried 4-0.
8.2 Ordinance Regulating the Licensing of Businesses Selling Cannabinoid
Products in the City of Elk River
Attorney Beck and Mr. Portner presented the staff report. Attorney Beck felt this
ordinance allows a regulatory structure and is set for January 1, 2023. He stated this
also allows the city clerk time to put applications in place. He noted the current
moratorium will stay in place. Anyone lawfully selling these products prior to the
moratorium taking effect may continue to do so.
Mayor Dietz asked if the city would be advertising on social media to notify those
interested in filling out an application to be approved by the January 1, 2023, start
date. Mr. Portner stated a full-fledged advertising campaign on social media, in the
newspaper, and mailings targeting those interested.
Attorney Beck indicated there will be legislative action in 2023, noting the city will
more than likely be revisiting this ordinance after that action.
Mr. Portner stated this ordinance mirrors both the alcohol and tobacco ordinances
but removed allowing the distance from parks due to the potential to allow THC-
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November 7, 2022
infused drinks in the downtown area.
Page 4
Moved by Councilmember Beyer and seconded by Councilmember
Westgaard to adopt Ordinance 22-25 Regulating the Licensing of Businesses
Selling Cannabinoid Products in the City of Elk River as outlined in the staff
report.
Motion carried 4-0.
8.3 Discuss Work Session Items
Mr. Portner presented the staff report. There were no additions made to the work
session items.
9. Council Liaison Updates
Council provided updates of the various advisory boards as noted in the respective
board minutes.
The Council recessed at 6:54 p.m. to go into work session. Council reconvened at
6:57 p.m.
10.1 2023-2027 Capital Improvement Plan
Ms. Ziemer presented the staff report, discussing the specific capital projects
identified by staff for completion over the next five years. She then reviewed the
2023 projects along with cash flow estimates of each project fund, noting some
project funding was discussed during budget meetings.
Mr. Sevcik explained the reasons for the Equipment Replacement Fund costs of
$1,449,000 resulted in 12 vehicle purchases for 2023 due to the pandemic causing
production delays and chip shortages. He indicated vehicles and equipment are
replaced depending on number of hours of usage, mileage, or used as a secondary
use vehicle. Ms. Ziemer discussed using ARPA funds for the Equipment
Replacement fund. Ms. Ziemer indicated it would be easier transferring money from
the ARPA fund directly into the General Fund instead of transferring money from
ARPA to equipment replacement, and then equipment replacement funds into the
General Fund.
Council asked about the ability to use ARPA funds for the equipment replacement
purchases. Ms. Ziemer and Mr. Portner explained they received additional guidance
earlier in the year that allows for the city to spend up to $10 million dollars with no
specific reporting needed on the fund usage. Mr. Portner stated there's always a
concern about using any one-time fund towards items in the General Fund as it
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November 7, 2022
means the 2024 budget cannot rely on this funding.
Mr. Femrite reviewed public works projects.
Ms. Ziemer then discussed the yet to be determined requests that will still come
before the council for approval, and the department budget funded projects.
10.2 2023 Budget
Ms. Ziemer presented the staff report and discussed details of the 2023 budget. She
indicated inflationary increases and costs associated with the newly added park
amenities and city facilities make up for the 8.3% increase in the General fund
budget over 2022, with the increase being in fuels and lubes, equipment parts, and
workers compensation premium.
10.3 Furniture and Things Community Event Center Fund Balance
Ms. Ziemer presented the staff report and asked for direction regarding the
possibility of using ARPA funds to add back into the fund balance to cover the
decrease of about $650,000.
Ms. Ziemer indicated they have $2.1 million in ARPA funds remaining to be used by
the end of 2024 or at least have contracts signed by end of 2024 for use of those
funds.
Council stated there were significant revenue impacts at the multipurpose facility
because of the pandemic mandates and being shut down. They discussed the future
operational challenges of running the facility and their work is cut out for them to
put together a balanced budget and see revenue increases in the future.
Council consensus to use ARPA funds to offset pandemic -related operational
revenue losses for the Furniture and Things Community Event Center Fund Balance
to be approved at a future council meeting.
11. Adjournment
There being no further business, Mayor Dietz adjourned the meeting of the Elk
River City Council at 7:53 p.m.
by Jennifer Green.
yor
Tina Allard, City Clerk
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