4.1 DRAFT MINUTES (2 SETS) 02-06-2023City of
Elk -�-1
RiVer
Special Meeting of the Elk River City Council
and Elk River Municipal Utilities
Held at the ERMU Field Services Training Room
Tuesday, January I 0, 2023
Members Present: MayTor John Dietz, Councilmembers CoryT Grupa, Mike Bey-er, Matt
Westgaard, Jennifer Wagner, ERMU Commissioners Paul Bell, Allan
Nadeau, and Maryr Ste��aYt
Members Absent: None
Staff Present CityT Staf£ City Administrator Calvin Portner, Public Works Director
Justin Femrite, CommunityT Development Director Zack Carlton, and
Engineering PYoject ManageY BYandon Wisner
ERMU Staf£ GeneYal ManageY 1�Zark Hanson, Adrniuistrations
DirectoY Sara Youngs, OpeYations Director Tom Geiser, Water
Superintendent Dave Ninow, Engineering ManageY Chris Kerzman,
Executive Adrniuistrative Manager Ton�� Mauren, Finance ManageY
Melissa Karpinski
OtheYs PYesent: Attorney Jared Shepherd; WSB Water�Wastewater EngineeY UYsinio
Puga; Ehlers Director of Fiscal Consulting Jessica Cook; Capstone
Homes, Inc. Communit�T Development Manager Matthew Barker;
and Capstone Homes, Inc. Land Manager HeatheY LoYch
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2.
Call Meeting to Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council
and the Elk River Municipal Utilities (ERIVIU) meeting was called to oYder at 5:00
p.m. b�T Ma�ror Dietz.
Pledge of Allegiance
Pledge of Allegiance was recited.
3.1 Discuss Options for NE and NW Utility Services
Following a round of introductions, Mr. Femrite explained that the goal of the
meeting is for the Council and Commission to learn `vhat improvements would be
necessar�r for the expansion of wateY and seweY services. He added theYe would be
discussion on financial impacts and options as well as a chance foY staff to receive
direction on policies for providing one service or both.
1��. Puga presented the Northeast and NoYthwest UYban Services Expansion Study
completed by WSB and Ehlers, Inc. It consists of descriptions of the study areas,
usage projections, standards of service, utilit�r la�routs, and financial discussion.
Cit�r Council iVlinutes Page 2
January 10, 2023
Mr. Puga noted that the proposed annexations are significant in size and create a
60% increase in service area.
Mr. Puga noted that there are multiple wetland areas throughout the northeast
section which create challenges for infrastructure installation while the northwest
section has wetlands mostly in its noYthwest corner.
In pYesenting usage pYojections, Mr. Puga shaYed that the northeast expansion would
geneYate a 23% increase in water demand while the noYthwest expansion would
incYease demand by 22%. Wastewater pYojections show a 33% increase with the
northeast expansion and 32% from the northwest.
Mr. Puga laid out the standards of service foY water service which call for specified
pressure, velocities, pumping, and storage to meet maximum day demands. Sewer
service standards describe the required flo`v, sewer depth, excess s�-stem capacity,
and velocities.
In the northeast aYea the pYoposed trunk water main is in the high-pYessuYe zone and
would not require the cYeation of a new pressure zone. i��. Puga explained that this
aYea could be served by extending the 12-inch trunk water main with looping. He
added that a new well would be needed in 5 to 10 �rears and a new wateY toweY would
be needed in 10 to 15 �rears. It ��on't be known whethe� a treatment facilit�r will be
necessaryr until the new well is operational, but for funding puYposes it is safeY to
assume it will be.
Mr. Puga stated that the northwest area will be significantly more challenging to
provide water service to due to elevation differences of close to 200 feet The loweY
pYessuYe in the area cannot currentl�� pYovide adequate volume to serve the pYoposed
expansion.
iVlr. Puga explained that in Elk River the high-pressure and low-pressuYe zones run
independent of one another so with the system as it e�sts the noYthwest expansion
would require ne�u wells, treatment facilities, water tower, trunk line, and water main
immediatel�r.
Mr. Puga then explained a hybrid model had been developed to use pump stations to
serve the northwest area's high-pYessure zone from the e�sting low-pressure zone.
This model would �equire two booster stations and a well immediatelyT, with another
well required in a 5-10-year range. Mr. Puga cautioned this approach could ultimately
dYaw too much water from the e�sting low-pressuYe zone foY it to maintain adequate
pressure for the areas currentlyT being served.
Mr. Puga presented an opinion of probable cost for providing water service with the
northeast aYea totaling $31,635,000 and the noYthwest totaling $43,977,000.
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Cit�r Council iVlinutes Page 3
January 10, 2023
Mr. Puga presented findings on the se`ver service portion of the study, noting
challenges for the northeast area include its distance from facilities and limited
available capacityT to connect to the e�sting system. This necessitates at least three lift
stations and a regional lift station to pump directlyT to the treatment plant.
Mr. Puga went on to explain that, with one exception, a lift station would not
immediately be Yequired in the northwest area like it is in the noYtheast area. Service
to the far north`vest corner `vould require a lift station as the e�sting gravityT pipe is
not deep enough to connect He added that a Yegional lift station would be needed if
and when the rnining aYeas are developed, and that the lift station would support
future development to the north.
Mr. Puga presented an opinion of probable cost for pro�riding se�ver service `vith the
northeast aYea totaling $13,143,00 and the noYth�uest totaling $15,335,000.
Ms. Cook presented the Financial Analy sis Methodolog�T which provides options for
funding the projected expenses.
Ms. Cook repoYted that foY wateY and sewer service the cost peY single family unit in
the northeast aYea is $22,144 peY single family unit in development fees/assessment
while the total foY the northwest aYea is $19,724 per single family unit.
Ms. Cook provided a comparison chart for se�ren other communities �vith
development fees for water and sewer services which showed each of Elk RiveY's
pYoposed projects as the highest examples.
In pYesenting options for recovering costs, Ms. Cook noted that sizable investments
in the Northwest area need to be incurred in the first five yeaYs which is a risk for the
paYt�r funding the project She then pYesented the options.
The first option presented �uas developeY payment thYough an agreed cost sharing
approach.
Ms. Cook explained that the second option would be to use special assessments
which follow the land and aYe paid whether development occurs oY not.lVLr. Femrite
contributed that the cityr had done special assessments befoYe.
The third option is area trunk charges which are paid when land is platted.
1�1s. Cook noted that as these options pYogYess there is a greater gap in time between
installation of infrastructure and collecting revenue `vhich contributes to a greater
risk factor for the cityT/utilityT.
Option four would be utilizing sewer and water availability charges `vhich are paid by
builders through permitting.
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Cit�r Council iVlinutes Page 4
January 10, 2023
The final option `vould be relyTing on user chargers `vhere ne`v and e�sting
customers contribute to infrastructure costs which provide an immediate and reliable
revenue source.
Ms. Cook opened it up for feedback.
1��. Femrite requested that the group focus on what was fiscally feasible for the
communityT.
Mr. Hanson clarified that current policy dictates that developments ��ithin the Urban
Services District receive both water and sewer service and those outside the district
get neither.
1VLr. Hanson YefeYYed to the map of necessary infrastructure for the noYthwest aYea,
noting the large costs for the initial phases of water s��stem installation compared to
sanitaryr service where theYe is alread�r significant infrastructuYe in place.
CouncilmembeY WestgaaYd noted there had been recent cases wheYe neighborhoods
need to connect to only the seweY services due to failing septic systems.
He also shaYed his opinion that developing the northwest area seemed challenging
wheYeas the project in the northeast appeared moYe s�rstematic.
Mayor Dietz shared his opinion that Count�� Road 33 should be the noYtheYn
boundar�r foY the Urban Services District and expressed conceYns �uith expansion
and assessing pYoperties.
Mr. Femrite clarified that the Urban Services District had been expanded in the
noYtheast b�� the Comprehensive Plan.
Commissioner Stewart inquired as to whether federal funds could be available.
Ms. Cook responded there ma�r be some assistance available with stoYmwateY.
Mr. Pago shared that funds are tyTpically devoted to rehabilitation or restoring
s�rstems, not expansion.
1VLr. Hanson shared that he had concerns about water qualityr and stagnation with the
length of pipe needed foY the pYoposed northwest project if the far northwest corner
were to develop first.
Mayor Dietz shared his opinion that the cityT/utilityT should be cost neutral if they
move forward with either project.
Ms. Cook shared that another funding option would be to wait until there's more
demand foY services in the area.
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Cit�r Council iVlinutes Page 5
January 10, 2023
Councilmember Westgaard sought clarification as to whether the cit�T had agreed to
expand the Urban Services District to serve the entire proposed development in the
northwest area.
Mr. Femrite responded that there is a small section of the study outside the district as
established by the Comprehensive Plan and there has been no agreement to expand.
It was explained that the project proposal includes a Yequest from the developeY to
expand the district in oYder serve the entire project.
Councilmember Westgaard wanted that clarified so that incorrect infoYmation was
not publicized.
CouncilmembeY WagneY shaYed that she did not have an�r interest in changing the
zoning in the northwest area from 2.5 acres.
RegaYding Yemaining cost neutral, she noted that there will be residual effects such as
incYeased paYk and trail services that will make it difficult to Yemain cost neutral.
Mr. Femrite sought consensus fYom the joint bod�T as to whether theyrwanted to
maintain the requirement for developments to ha�re both �vater and sewer service.
Councilmember Westgaard shared his opinion that it makes the most sense to
continue to Yequire developments in the Urban Services District to install both seweY
and �vater service.
Councilmember Be��er shared his opinion that wateY and seweY service should both
be Yequired for developments in the Urban Services District.
Councilmember Grupa shared his opinion the two ser�rices should go togetheY.
Mr. Femrite requested perspective from the joint bod5r on how the�� would pYefer to
see Elk River continue to develop.
Councilmember �X�estgaard stated his opinion that pYojects should be driven by
development as requests are received.
Mr. Femrite asked the joint body if conversations with developers should look at the
first funding option presented byT Ms. Cook, namelyT cost sharing bet�veen them and
the cit�T.
Mayor Dietz and Councilmember Westgaard stated their agreement with that
approach.
Commissioner Stewart asked if there are state regulations that will help keep these
developments from having failed independent syTstems like those `vho needed to
connect to the seweY system.
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Cit�r Council iVlinutes Page 6
January 10, 2023
Mr. Carlton stated that a studyr had not been done in 20 years but that those systems
must be maintained to a standaYd oY the state steps in.
Mr. Femrite commended WSB and Ehlers for the `vork theyT did on the studyT.
Mr. Femrite stated with the input form the joint bodyT he will go back and discuss
next steps with relevant parties.
4 Adjournment
TheYe being no fuYtheY business, MayoY Dietz adjouYned the joint meeting at 6:32
p.m.
Following the meeting there was a tour of the ERL�1U Field Services Building.
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City of
Elk -�-�
RiVer
Members Present:
Members Absent:
Meeting of the Elk River City Council
Held at the Elk River City Hall
Monday, January 17, 2023
Mayor John Dietz, Councilmembers CoryT Grupa, Mike Beyer, Matt
Westgaard, and Jennifer Wagner
None
Staff Present: City Administrator Calvin Portner, City Attorne�� Jared Shepherd, IT
ManageY Seth Calvin, IT SuppoYt Specialist Jake Walz, Senior Planner
Chris Leeseberg, and Records Specialist Katie PoYath
I. Call Meeting to Order
Pursuant to due call and notice thereof, the meeting of the Elk River Cit�� Council
�vas called to order at 6:09 p.m. byT Ma�-or Dietz.
2. Pledge of Allegiance
Pledge of rlllegiance was recited.
3. Consider Agenda ,.,,
Moved by Councilmember Beyer and seconded by Councilmember
Westgaard to approve the agenda. Motion carried 5-0.
4. Consent Agenda
Moved by Councilmember Wagner and seconded by Councilmember Grupa
to approve:
4.1 January 3, 2023, Minutes.
4.2 Check register as outlined in the staff report.
4.3 Pay estimates as outlined in the staff report.
4.4 Approve the low bids and authorize the execution of Agreement 23-1
with Palmer West Construction Co., Inc. for the construction of the
City Hall Reroof in the amount not to exceed $853,100.00 with a 10%
contingency and authorize the execution of Agreement 23-2 with
Granite City Roofng, Inc. for the construction of the Public Safery
Reroof in the amount not to exceed $613,798.00 with a 10%
contingency.
4.5 Adopt Resolution 23-4 accepting the Rolling Hills Homeowners
Association Petition and Waiver for design through bidding of
decommissioning and removing the existing subsurface sewer
treatment system and the construction and connection of all 28
properties to the Ciry of Elk River sanitary sewer system in the amount
Cit�r Council Minutes
January 17, 2023
not to exceed $156,000 and order preparation of plans and
specifcations.
Motion carried 5-0.
5. Open Forum
No one appeared for Open Forum.
6. I City of Elk River Volunteer of the Month
Page 2
Mayor Dietz pYesented the Januar�r VolunteeY of the Month award to Mavis WebeY.
He highlighted the follo�ving:
■ Bridge Club leadeY at SenioY Activityr Center for last 15 years.
■ Long-standing member of the Senior Activit�- Center.
■ Volunteered as Girl Scout leader and Den Mother when her children were
young.
■ Sang in the St. Andrew's Catholic Church choir.
■ Dispatched two trucks for an entire weekend during the famous 1991 Halloween
blizzard.
■ Modeled clothing at Senior Activit�� Center style shows.
6.2 Proclamation: Lori Ziemer Day in the City of Elk River
Mayor Dietz pYesented retired Finance Director Lori ZiemeY �uith a plaque foY heY 28
yreaYs as a cit�� employee.
Moved by Councilmember Westgaard and seconded by Councilmember
Wagner to proclaim January 30, 2023, as Lori Ziemer Day. Motion carried 5-0.
6.3 Inside Elk River Dirty Jobs Drawing
Councilmembers randoml�� drew jobs foY the Inside Elk RiveY Dirtyr Jobs segment.
MayoY Dietz - building inspections
Councilmember Beyer — controlled buYn of gYasses
Councilmember Wagner - sidewalk and trail plowing
Councilmembe� Westgaard - snow storage
Councilmember Grupa - building maintenance
7.1 Interim Use Permit: Multi-Family Residential Use in Single-Family
Zoning District - Sogdiana, LLC, Zafar Khamdamov, Case No. IU 22-
02
Mr. Leeseberg presented the staff report.
MayTor Dietz opened the public hearing. There being no one to speak to this issue,
Mayor Dietz closed the public hearing.
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Cit�r Council iVlinutes Page 3
January 17, 2023
Mayror Dietz asked how many years the Interim Use Permit will be reappYoved. 1VLr.
Leeseberg stated it was on the second round of a three-year approvaL The Planning
Commission is considering a zoning change which would make it an allo`vable use.
Otherwise, the item will be revisited in three years. GeneYally, all Interim Use Permits
have a"sunset date" that staff can quantify.
Moved by Councilmember Westgaard and seconded by Councilmember
Wagner with the following conditions:
1. The Interim Use shall be for a maximum of three units.
2. The Interim Use shall terminate March 16, 2026 (3 years from the
termination date of IU 20-01) or when the property changes ownership,
whichever occurs frst.
3. The Interim Use Permit will be recorded against the properry to put any
future buyers on notice that the Interim Use Permit will not run with
properry.
4. The structure shall be returned to a single-family home prior to sale or
when the Interim Use Permit terminates.
5. By February 3, 2023, the applicant shall submit a deposit in the amount
of $5,000 to ensure compliance with the Interim Use Permit conditions.
6. By February 3, 2023, the applicant shall provide documentation each
tenant received a letter indicating the Interim Use Permit will expire on
March 16, 2026, and the structure will be converted back to a single-
family residential district.
Motion carried 5-0.
7.2 Easement Vacation: Drainage & Utility Easement, Ben Olson - PID
75-453-01 I 5
NLr. Leeseberg presented the staff report.
Ma�ror Dietz opened the public hearing.
Matt Mellenthin, 14148 202"d Ave, stated his property has a pond which
overflowed between 2010 and 2018 and has caused foundation issues. He has
spoken to the cit�r and SheYbuYne County that theYe is pooY dYainage in that aYea.
Marilyn Mellenthin, 14148 202"d Ave, believes that the drain tiles are broken and
not draining. The ground gets saturated and causes trouble with their septic syTstem.
Carrie Braiedy, 14227 2215` Ave NW, asked if the map shows where drain tiles are.
1VLr. LeesebeYg showed the drain tiles on the map.
Ben Olson, applicant, stated that the countyT ditch inspector told him that the
drainage �vas not effective, and the countyT �vas getting a permit to fix it.
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Cit�r Council iVlinutes Page 4
January 17, 2023
Mayror Dietz asked Mr. LeesebeYg to talk to Sherburne Count�r and Yespond to the
residents regarding the drainage issues. Broken drainage tiles and ditch problems
would be something the countyT `vould have to address.
Mayor Dietz closed the public hearing.
Councilmember Westgaard stated that passing the Resolution was an administrative
task to get the easement recoYded in the pYopeY location. The functionalityr of the
drainage syTstem was a different topic.
Moved by Councilmember Wagner and seconded by Councilmember Beyer
to adopt Resolution 23-5 vacating a drainage and utility easement upon
condition the applicant prepare and record an easement protecting and
preserving access to Counry Ditch 28. Motion carried 5-0.
7.3 Elk River Vape Shop: Administrative Hearing for Tobacco Compliance
Violations
1��. Portner pYesented the staff YepoYt The o�uner of Elk RiveY Vape Shop asked to
postpone the administrative hearing.
CityT AttorneyT Shepherd stated the council does not need to open the public hearing
and can Yemove the item from the agenda.
Moved by Councilmember Westgaard and seconded by Councilmember
Grupa to move Elk River Vape Shop Administrative Hearing for Tobacco
Compliance Violations to the February 6, 2023, Ciry Council meeting. Motion
carried 5-0.
8. I Council Appointment to Information Security Commission
Mr. PoYtner presented the staff report.
Moved by Councilmember Wagner and seconded by Councilmember Grupa
to appoint Councilmember Beyer as a member of the Information Security
Committee. Motion carried 5-0.
8.2 Library Board Appointment
MayTor Dietz stated four people applied for the LibraryT Board and he recommends
Sara Soukup.
Moved by Councilmember Westgaard and seconded by Councilmember
Wagner to appoint Sara Soukup to the Library Board for a 3-year term
beginning January 1, 2023, and expiring December 31, 2025. Motion carried 5-
0.
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Cit�r Council Minutes
January 17, 2023
9. Adjourn Regular Meeting
Page 5
Moved by Councilmember Wagner and seconded by Councilmember Beyer
to adjourn the regular meeting of January 17, 2023. Motion carried 5-0.
Council recessed at 6:37 p.m. and reconvened in work session in the Council Chambers at
6:39 p.m.
MayoY Dietz asked to move Item 10.2 befoYe Item 10.1.
10.2 Phone System Upgrade
Mr. Calvin pYesented the staff Yeport He stated the hosted system he proposed
`vould save $15,000.
Mr. Calvin led a focus group which revie�ved eight phone systems and recommends
the 3CX Phone System.
Mayror Dietz asked if the cityr payrs up front oY per month.lVLr. Calvin stated the cityr
`vould payT monthlyT.
Councilmember Westgaard and Councilmember Be�-er said the private sector is
moving toward this ty�e of phone which uses a cloud-based system and gives
employees more flexibility.
1��. Calvin added that departments would have a budget foY desk phones and would
need managers approval, otherwise phones would be installed on a cell phone app oY
computer.
iVir. Portner added that the phone s�rstem was set to be Yeplaced in 2025 and the
phone server in 2023. �X�hile researching phone serveYs the IT depaYtment
determined it will save money to switch to a new phone system.
A contract will be brought to a futuYe council meeting.
10.1 Commission Membership Requirements
Mr. Portner presented the staff Yeport He stated theYe have been issues with the ISD
728 Yepresentatives to the l�Zultipurpose Facilit�r Advisor�r Commission and Energy
CityT Commission attending meetings. The school district activities director has
conflicts attending the Multipurpose FacilityT AdvisoryT Commission meetings in the
evenings and the representative to the EnergST CityT Commission is a schoolteacher
who has conflicts attending morning meetings.
Mr. Portner proposed adding an additional person to the committee and having
school district representatives as non-voting liaisons positions that anyT representative
from the school could attend.
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Cit�r Council iVlinutes Page 6
January 17, 2023
Debbi Rydberg, Executive Director of Elk River Area Chamber of Commerce,
asked if the times of the two commissions could be changed to accommodate the
members schedules.
Councilmember Westgaard felt that the input from the school district was important
particularly since the cityT and school district are both ta�ng entities and should work
togetheY. He asked if the school district may be able to find a diffeYent designee.
Councilmember WagneY agYeed that one of the goals of the Energ�r Cityr
Commission was to educate elementary and high school students and the school
district YepYesentative had valuable insight She suggested having two people
designated per commission, and, if one of them could not attend, the other could
vote on behalf of the school district.
Council asked Mr. PoYtneY to Yeach out to the school district superintendent to see if
they had any solutions on who can come to the meetings.
II. Adjournment
There being no further business, Ma��or Dietz adjourned the meeting of the Elk
River CityT Council at 6:58 p.m.
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Minutes prepared by K
John J. Dietz, l�layor
Tina Allard, CityT Clerk
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