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06-05-2023 CCMMeeting of the Elk River City Council Held at the Elk River City Hall Monday, June 5, 2023 Members Present: Mayor John Dietz, Councilmembers Cory Grupa, Mike Beyer, Matt Westgaard, and Jennifer Wagner Members Absent: None Staff Present: City Administrator Calvin Portner, City Clerk Tina Allard, Finance Manager Lori Stich, Business Services Director/Assistant City Administrator Joe Stremcha, Recreation Manager Michael Hecker, Community Development Director Zack Carlton, Economic Development Specialist Josh Mollan, Public Works Director/Chief Engineer Justin Femrite, Human Resources Manager Lauren Wipper, Engineering Project Manager Brandon Wisner, 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 6:33 p.m. by Mayor Dietz. 2. Pledge of Allegiance: Pledge of Allegiance was recited. 3. Consider Agenda Mayor Dietz added Item 4.12 to the consent agenda. Moved by Councilmember Westgaard and seconded by Councilmember Wagner to approve the agenda, as amended. Motion carried 5-0. 4. Consent Agenda Mayor Dietz asked about Item 4.5 and the desire to clear trees. A representative of Waste Management was in attendance and explained that the proposed area was the only area on their property that would work for their renewable natural gas plant. The plant would replace the current structure. Moved by Councilmember Beyer and seconded by Councilmember Grupa to approve: 4.1 May 15, 2023, Regular minutes. May 22, 2023, Special minutes. 4.2 Check register as outlined in the staff report. 4.3 Authorize the execution of Agreement 23-13 between the City of Elk River Police Department and LEAST Services/Counseling, LLC. 4.4 Approve acceptance of Grant of Permanent Easement Agreement at 504 Main St and approve Grant of Permanent and Temporary Easement Agreement 23-14 and payment of $4,741.28 at 525 Railroad Dr. 4.5 Approve a variance to clear oak trees at the proposed building site prior to July 15, 2023. 4.6 Resolution 23-16 designating American Rescue Plan Act (ARPA) funds. City Council N inutes June 5, 2023 Page 2 4.7 Adopt Resolution 23-17 acknowledging monetary contributions of $1,180.04 in the donation box at Woodland Trails Regional Park from various patrons and adopt Resolution 23-18 acknowledging the monetary contribution of $2,500 from the Zimmerman Fire Relief Association. 4.8 Approve liquor license renewals for the period of July 1, 2023 through June 30, 2024 as outlined in the staff report. 4.9 Approve a Temporary On -Sale Liquor License to Davis -Darrow -Meyer American Legion Post 112 for June 10, 2023, with the condition alcohol must be confined to an area enclosed by a fence with a secured controlled access. Wristband control is required for patrons 21 and over. 4.10 Approve a Temporary On -Sale Liquor License to Davis -Darrow -Meyer American Legion Post 112 for July 20-23, 2023, with the condition alcohol must be confined to an area enclosed by a fence with a secured, controlled access. Wristband control is required for patrons 21 and over. 4.11 Direct the city administrator and finance manager to execute Agreement 23-15 the updated local sales and use tax collection agreement with the Minnesota Department of Revenue. 4.12 Hire Fulltime liquor store clerk. Motion carried 5-0. S. Open Forum No one appeared for Open Forum. 6.1 Library Board Annual Report Jeannette Burkhardt, Patron Services Supervisor for Great River Regional Library, presented the 2022 Library Board Annual Report and introduced Elk River Library Services Coordinator Margot Barry. Isaac Blaske, president of the Elk River Library Board, spoke on the role of the Library Board and their collaboration with the library. 6.2 Heritage Preservation Commission Interviews Mayor Dietz presented the staff report. The Council interviewed Linda Campbell. 6.3 Annual Comprehensive Financial Report (ACFR) for the Year Ended December 31, 2022 Andrew Grice, Bergan1CDV, provided a "clean, or unmodified, opinion" on the 2022 audit. Mayor Dietz asked about the negative number in the sewer operations budget. Mr. Grice commented that long-term budgeting should include depreciation. Mayor Dietz discussed the purchase of the fire truck and replacing any funds used from the sewer fund. Mr. Portner stated the city has a policy that will be followed for using internal funds. t I* E I I I I y NATURE City Council Minutes June 5, 2023 Page 3 Mayor Dietz asked for information on the amount of money in the liquor fund and how much would be an appropriate amount. Councilmember Westgaard suggested waiting to see the impact of Highway 169 construction on the liquor store operations. Mayor Dietz asked for a breakdown of the $36 million listed as municipal bonds. Ms. Stich added that some of the amount comes from Elk River Municipal Utilities (ERMU). Moved by Councilmember Westgaard and seconded by Councilmember Beyer to accept the Annual Comprehensive Financial Report for the City of Elk River for the year ended December 31, 2022. Motion carried 5-0. 7.1 Ordinance Amendment: Nuisance Ordinance 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 Wagner and seconded by Councilmember Westgaard to adopt Ordinance 23-12 repealing and replacing the City of Elk River nuisance ordinance (Chapter 46, Article II). Motion carried 5-0. Moved by Councilmember Grupa and seconded by Councilmember Beyer to adopt Resolution 23- 19 approving summary publication of the nuisance ordinance update. Motion carried 5-0. 7.2 Extension of Tax Increment Finance District No. 26 (TIF 26) Job Creation Period Mr. Mollan 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. Mayor Dietz confirmed this was a one-time extension. Moved by Councilmember Westgaard and seconded by Councilmember Beyer to approve Resolution 23-20 extending the compliance period of TIF 26 by one (1) year and authorizing execution of an amendment to the TIF 26 Agreement 23-16. Motion carried 5-0. 7.3 Ordinance Amendment: Determination of Billable Flow, Loading, and User Charge U Mr. Wisner 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. K IIII II :i:l, City Council Minutes June 5, 2023 Page 4 Moved by Councilmember Beyer and seconded by Councilmember Grupa to approve Ordinance Amendment 23-13 removing the senior citizen exception from section 78-187. Motion carried 5-0. 8.1 Resolution: Premises Permit, Fraternal Order of Eagles at Elk River Golf Club Ms. Allard presented the staff report. Dan Tviete, trustee of the Fraternal Order of Eagles, outlined the challenges faced in 2020-2022 to meet lawful purpose expenditure requirements. He stated the main issue was not developing a "pipeline" of charitable opportunities and waiting for people to apply for help rather than seeking places to offer financial assistance. He added the Eagles Club is on track for a five-star rating with the state board for 2023. Mayor Dietz did not understand why the Eagles Club couldn't find anywhere to give their donations. He felt it was unreasonable to grant a second gambling permit when they had failed to meet city and state expenditure requirements over the past couple years. Ms. Allard added the State was the licensing authority and any concerns with the Eagle's Club gambling permit would need to go to the state board for revocation. Mayor Dietz chose to abstain. Moved by Councilmember Grupa and seconded by Councilmember Beyer to adopt Resolution 23- 21 approving the premises permit with findings as noted in the packet. Motion carried 4-0. Mayor Dietz abstained. 8.3 Discuss Work Session Items Mayor Dietz presented the staff report. He asked if there were any upcoming discussions about the former Elk River Meats location. Mr. Portner stated discussions are on the agenda for several upcoming meetings. 8.2 General Business Ms. Allard presented the staff report. Councilmember Wagner abstained due to her involvement with Edge Bar & Boutique. Moved by Councilmember Westgaard and seconded by Councilmember Beyer to approve the 2023- 2024 liquor license renewal of an On -Sale 3.2% License with strong beer permission and a Wine License to The Confluence LLC dba Edge Bar & Boutique valid through June 30, 2024. Motion carried 4-0. Councilmember Wagner abstained. 9. Council Liaison Updates Councilmembers provided updates as outlined in the respective advisory board's minutes. 10. Adjourn Regular Meeting FIVEIII 1 1 NATLIRE City Council Minutes June 5, 2023 Page 5 �- Moved by Councilmember Beyer and seconded by Councilmember Wagner to adjourn the regular meeting of City Council. Motion carried 5-0. The regular meeting adjourned at 7:48 p.m. Mayor Dietz called the work session to order at 7:50 p.m. 1 1.1 Lion John Weicht Park Restroom Tempering Mr. Femrite presented the staff report. Mayor Dietz asked if the school district and softball boosters could share the cost. Councilmember Wagner asked if tempering would guarantee the pipes would not freeze. Mr. Femrite responded that, barring loss of electricity, tempering would prevent the pipes from freezing. Mr. Femrite added that construction could occur in early 2024 if the council wanted to add the item to their budget. The Council asked Mr. Femrite to continue discussions with the school district since High School softball is the only sports team that would need those bathrooms that early in the year. 11.2 Finance Division workload challenges and staff needs Mr. Stremcha and Ms. Stich presented the staff report. The Council agreed to combine 20 hours in Finance with Ali Wallace's existing 20 hours in Parks and Recreation to create a full-time position. The position will return to a consent agenda for approval. 11.3 Elk River Athletic Fields Analysis and Findings Mr. Stremcha presented the staff report. Dave Williams, Parks and Recreation Commission Commissioner, discussed field needs. The Council confirmed there was not an immediate need for all of the proposed fields. The fields will be built in phases based on the upcoming master plan. The Council asked if Mr. Williams would recommend turf fields. Mr. Williams responded he was against turf fields, unless they could be secured, due to vandalism damage. The Parks and Recreation project advisory committee will use this study to develop a master plan for field improvements and make a recommendation to council at a later date. Mr. Portner stated the demographer report listed Elk River population at 27,001 as of April 2023. 12. Motion to Adjourn p o f E A[ I ii NQTV City Council Rtinutes June 5, 2023 Page 6 Moved by Councilmember Grupa and seconded by Councilmember Westgaard to adjourn the meeting of City Council. Motion carried 5-0. The meeting adjourned at 8:27 p.m. 13. Closed Meeting Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called to order at 8:28 p.m. by Mayor Dietz. Mayor Dietz read a statement outlining the purpose of the meeting was to review and discuss the city's labor negotiation strategy related to the city's negotiations with the Police Captain union, LELS 501, pursuant to MN Statute 13D.03, Subd. 1(b). Members Present: Mayor John Dietz, Councilmembers Cory Grupa, Mike Beyer, Matt Westgaard, and Jennifer Wagner Staff Present: City Administrator Calvin Portner, Human Resource Manager Lauren Wipper, Business Services Director/Assistant City Administrator Joe Stremcha, and Records Specialist Katie Porath 14. Motion to Adjourn Moved by Councilmember Wagner and seconded by Councilmember Westgaard to adjourn the meeting of City Council. Motion carried 5-0. The meeting adjourned at 8:44 p.m. Minutes prepared by Katie Porath. Tina Allard, City Clerk re*EeEe et NATURE