10-16-2023 CCMMeeting of the Elk River City Council
Held at the Elk River City Hall
Ver Monday, October 16, 2023
Members Present: Mayor John Dietz, Councilmembers Cory Grupa, Mike Beyer, Matt Westgaard, and
Jennifer Wagner (left at 6:31 p.m.)
Members Absent: None
Staff Present: City Administrator Calvin Portner, Assistant City Administrator Joe Stremcha, Parks
and Recreation Manager Michael Hecker, Public Works Director Justin Femrite,
Community Development Director Zack Carlton, Senior Planner Chris Leeseberg,
City Attorney Jack Brooksbank, Police Chief Ron Nierenhausen, Economic
Development Director Brent O'Neil, Building Official Mark Pistulka, Multi -Purpose
Facility Superintendent, Tim Dalton, and City Clerk Tina Allard
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 6:00 p.m. by Mayor Dietz.
2. Pledge of Allegiance:
Pledge of Allegiance was recited.
3. Consider Agenda
Councilmember Wagner requested removal of Item 4.5.
Moved by Councilmember Westgaard and seconded by Councilmember Beyer to approve the
agenda. Motion carried 5-0.
4. Consent Agenda
Moved by Councilmember Wagner and seconded by Councilmember Grupa to approve:
4.1
October 2, 2023, Minutes.
4.2
Check register as outlined in the staff report.
4.3
Pay estimates as outlined in the staff report.
4.4
Appointing Lynn Caswell to the Housing and Redevelopment Authority with a term
expiration of December 31, 2024.
4.6
Hiring paid on -call firefighters effective October 18, 2023, as listed on the staff report.
4.7
Hiring of Scott Clark to the position of Community Service Officer II/Evidence
Technician effective October 23, 2023.
4.8
Resolution 23-42 authorizing execution of a grant agreement for the Toward Zero
Death Program.
4.9
Extending Conditional Use Permit CU 19-14 to April 1, 2024, to allow applicant to
complete the required conditions.
4.10
Bid from TD & I Cable Maintenance and authorize execution of contract with
$605,587.25 for the construction of the east fiber extension project. Accept the
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alternates A1- the Johnson Tower lateral = $42,465.00, A2 - the Auburn Tower lateral =
$26040.00, A3 — connection to wells 7,8,9 = $79,444.00, A4 — Trott Brook Park lateral =
$5,250.00, A5 — Hillside Park lateral = $11,872.00. Reject the alternate A6 — deduct to 96
strands as it is not cost -beneficial.
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 October Volunteer of the Month award to Sherry Benson. He highlighted
the following:
■ Delivers birthday and Christmas gifts to senior citizens.
■ Volunteers for CHAP ministries.
■ Spends time fundraising to purchase gifts for seniors and donates her own money to the
effort.
E Focuses on bringing gifts to veterans and the elderly.
■ Passionate about the plight of seniors in our community.
6.2 Recognition of The Bank of Elk River
Mr. Hecker presented the staff report and thanked The Bank of Elk River for their sponsorship.
Mayor Dietz read and presented a recognition plaque to representatives from the bank.
6.3 Heritage Preservation Commission Interviews
The Council interviewed applicants for the Heritage Preservation Commission.
6.4 Appeal Hearing
The Council noted no decisions will be made tonight and they will review the attendance policy at the
November 6 meeting.
■ Library Board
Ms. Hegarty outlined why she missed board meetings as noted in her letter in the staff report.
■ Multipurpose Facility Commission
Ms. Walker explained she missed one commission meeting due to attending a competition event
for her daughter in Poland and she accidentally missed her second meeting. She believed the
commission minutes showing her third absenteeism were incorrect.
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October 16, 2023
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7.1 Conditional Use Permit: Warehouse and Outdoor Storage at 10835 170' Avenue
Mr. Leeseberg presented the staff report.
Mayor Dietz opened the public hearing. There being no one to speak to this matter, Mayor Dietz
closed the public hearing.
The Council discussed the pros and cons of the right-of-way options presented by staff.
Councilmember Westgaard informed the applicant he would be held to a higher design standard
because the property is in a high visibility location from a main arterial road.
Dave Nelson, applicant stated he would like to work out a shared access/maintenance agreement with
the adjacent property owner. He further stated the design standards have yet to be finalized but it
won't be a pole barn -style building.
Moved by Councilmember Beyer and seconded by Councilmember Grupa to approve
Conditional Use Permit, Case No. CU 23-21 with the conditions to satisfy the standards set
forth in Section 30-654:
1. All driving, parking, and storage areas shall be bounded by B612 concrete curb and gutter.
2. The fenced outdoor storage area shall be:
} a. Limited to 3,000 square feet.
b. Fenced with a 6-7 foot tall 100% opaque fence with gates, to be closed when not in
use.
c. Be paved with an approved surface (Class 5, concrete, asphalt, or crushed
concrete/asphalt).
3. Wetland boundaries shall be marked with flags and silt fence shall be installed at the 25-
foot wetland buffer edge prior to any construction activity on site.
4. The subject property owner and the property owner to the west shall engage in a license
agreement with the city outlining their maintenance responsibilities of the shared access.
Motion carried 5-0.
7.2 Conditional Use Permit: Motor Vehicle Sales at 15777 Jarvis Street
Mr. Leeseberg 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 Councihnember Beyer to approve
Conditional Use Permit, Case No. CU 23-20 with the following conditions to satisfy the
standards set forth in Section 30-654:
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1. The Conditional Use Permit shall not be recorded until all conditions have been
completed.
2. An amendment to this Conditional Use Permit will be required for future
changes/additions not shown on the site plan dated September 26, 2023.
3. The applicant and/or property owner must apply for all required commercial building,
electrical, plumbing, and/or mechanical permits before any associated activities can
occur.
4. A code analysis finding building code compliance for the areas approved for use under
this CUP shall be prepared by an appropriate registered professional.
5. No outdoor storage of damaged or inoperable vehicles shall be allowed.
6. Hazardous materials shall be handled and disposed of in accordance with the Minnesota
Pollution Control Agency (MPCA).
7. The parking lot shall be striped to city requirements for the required parking stalls.
Motion carried 5-0.
Councilmember Wagner left the meeting at 6:31 p.m.
7.3 Conditional Use Permit: Home Occupation to include Outdoor Storage of Work
Vehicles at 18643 Yankton Street
Mr. Carlton presented the staff report.
Mayor Dietz opened the public hearing.
Mark Olson, 18778 Yankton Street — expressed the following concerns:
■ Environmental/shoreland impacts due to location near river.
■ Storage of materials outside.
■ Commercial feel and business in residential area.
■ The need for an alternative septic site to be available.
Jeremy Shank, applicant, 18643 Yankton Street — Stated the following:
■ Always works to keep his property nice, compact, and non -intrusive.
■ Trucks are not commercial vehicles and anyone with a regular license can drive them.
■ Cleared area to help with watershed.
• Worked with the city ten years ago to help with water runoff issues.
Ken Shank, 5908 151" Lane, Ramsey — Stated he is Jermiah's father and questioned the magic
number of acres needed to operate a business as Jeremy has four acres. He stated no trucks are stored
in the woods as indicated previously.
Mayor Dietz closed the public hearing.
Councilmember Grupa questioned if there are deliveries to the property and where they are stored on
the site.
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Jeremy Shank stated there are no deliveries to the property. He stated trucks are at job sites for most
of the summer and parked on the property in winter when not in use.
Councilmember Beyer asked about the environmental concerns. Mr. Carlton stated the driveway
violates DNR setback requirements because it is within 100 feet of the river and would require a
variance. He further stated there is a recommendation for burming so additional erosion is stopped.
Councilmember Westgaard questioned the applicant about where supplies are delivered and stored.
Jeremy Shank stated he purchases supplies at retail stores and some supplies are left with customers,
while others are stored in trucks. He stated employees do park on the property when they need to
pick up the trucks prior to heading to job sites.
Councilmember Westgaard concurred with the Planning Commission's recommendation. He stated
the conditional use permit standards have not been met and the business has outgrown the residential
area due to the amount of equipment it has and its use intensity.
Councilmember Grupa concurred stating the business has grown, gotten out of control, and the
applicant is now scrambling to make it right. He wants the applicant to succeed but the commercial
operation is not a good fit for a residential neighborhood.
Moved by Councilmember Westgaard and seconded by Councilmember Grupa to direct staff
to prepare a Resolution with Findings of Fact denying Conditional Use Permit, Case No. CU
23-19 as Conditional Use Permit standards, one, five, and six cannot be met as stated in the
Planning Commission report. Motion carried 4-0.
8.1 Stop Sign Request
Mayor Dietz opened this item for comment.
Sam Obwaya, 9999 215t' Avenue — Requested a stop sign at 215' Avenue and Edison Circle because
he feels there is a lot of traffic, a group home, and delivery vehicles, through the area. He stated he
has a special needs child who runs outside and is concerned with speeds in the area.
Neil Thomas, 9998 215t' Avenue — Stated the city needs to be proactive versus reactive and the
whole neighborhood wants the sign. He also questioned how staff knew what the traffic count was
for this area.
Kathy Palmer, 19049 Dodge Street — Stated there are issues with traffic, kids can be unpredictable
and there is a need to make roads safe. She suggested that instead of a stop sign, all city streets should
be 20 mph.
Mr. Femrite presented the staff report. He stated, based on adopted policy, staff recommendation is
not to install a stop sign because it doesn't meet the engineering warrants, would provide a false sense
of security. and may not be legally enforceable or defendable. He explained how counts are
determined and noted stop signs are installed at intersections to allow for safe access not for
addressing speed. He further noted the Council can override the policy.
Mayor Dietz stated he monitored the location and did not see a reason for a stop sign.
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Councilmember Grupa concurred noting he evaluated the location as well and suggested
consideration of alternative solutions by the homeowners.
Councilmember Westgaard struggled to see how there is any volume of traffic when there are only
four homes on the other side of the intersection and approving the request would be a drastic
departure from current policy.
Chief Nierenhausen stated a stealth stat could be installed on a temporary basis to determine traffic
counts and speed.
The Council agreed to have the stealth stat installed and continue this item to a later date once the
results have been evaluated.
8.2 Ordinance Amendment: Eliminate Local Permitting of Snowmobiles and ATV's
Ms. Allard presented the staff report.
Moved by Councilmember Westgaard and seconded by Councilmember Grupa to adopt
Ordinance 23-22 amending Chapter 74, Traffic and Vehicles, Article V., Snowmobiles and All
Terrain Vehicles of the City of Elk River, Minnesota, City Code to eliminate local access
permits for snowmobiles and ATVs. Motion carried 4-0.
8.3 Twin Lakes Road and Kelley Parkway Extension Project Funding
Mr. Femrite presented the staff report.
Moved by Councilmember Beyer and seconded by Councilmember Grupa to return the
federal Surface Transportation Block Grant Program and Local Partnership Program
Funding. Motion carried 4-0.
9. Adjourn Regular Meeting
Moved by Councilmember Westgaard and seconded by Councihnember Grupa to adjourn the
regular meeting of the City Council. Motion carried 4-0.
The regular meeting adjourned at 7:45 p.m. Mayor Dietz called the work session to order at 7:47 p.m.
10.1 Cannabis: Zoning and Licensing
Mr. Carlton presented the staff report. He discussed growing, manufacturing, packaging, and
distribution of some operations. He stated it can be a labor-intensive business operation with a lot of
trucking and suggested locating them in the industrial districts. He would recommend regulating it like
other industrial users regarding odor, employment, trucking, and parking. They could also create a
new use in the district.
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The Council questioned the growing operations and whether it's done indoors or out. Mr. Carlton
stated it's an interior operation so everything can be controlled, such as temperature and lighting.
Mr. Carlton discussed retail operation locations and suggested mirroring it like the current tobacco
ordinance.
Mr. Portner stated the State Office of Cannabis Management will oversee and manage cannabis
licensing, but the city can restrict where licensees can be located along with the number of licenses
that can be issued. He noted a minimum of two licenses would be required in Elk River (one license
per 12,500 population). He stated it's currently unknown how the licenses are going to be distributed
by the state, but the law outlines that applications must be prioritized toward people who are
considered social equity applicants (which includes people who were convicted of possessing or
selling cannabis; family members of someone convicted of possessing or selling cannabis; service -
disabled veterans, current or former members of the national guard, or any military veteran or current
or former member of the national guard who lost honorable status due to an offense involving the
possession or sale of cannabis; residents for at least five years of a neighborhood that experienced a
disproportionately large amount of cannabis enforcement; emerging farmers; and residents of at least
five years of census tracts with high poverty rates). He further discussed the issues with cannabis not
being legal federally and that credit card sales are not allowed. He noted the municipal liquor stores
could apply for licensing as well, but it would need to be separated from the liquor sales in the
building.
Attorney Brooksbank stated it's not known how applicants will be selected yet but a scenario being
discussed is there could be a scoring process with bonus points given for social equity applicants.
Mayor Dietz stated he likes the idea of the city keeping the two licenses at the liquor stores but is
concerned about community pushback.
Mr. Portner stated it's beneficial for the following reasons:
• city can control the sale of cannabis.
• proceeds would be reinvested back into the community versus the unknown with a private
owner.
■ security concerns with a higher cash type business.
Mr. Portner stated the more licenses issued, the more excise tax the city would receive from the state.
The city could start with a limited number of licenses and open it up to more in the future once any
issues are ironed out.
Councilmember Westgaard expressed concerns about not setting any limit and how that could affect
the makeup of the community. He stated the revenue stream from the state could be minimal
compared to impacts in the community. He'd like to start with a limit on the number of licenses. He
is not sure he is interested in the city becoming a cannabis dealer.
Councilmember Beyer stated he liked to see a limit of two. Mayor Dietz stated he would not like to
see more than four.
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Chief Nierenhausen stated it's best to start slow and be conservative, especially since the laws are so
new. He stated anything more could create concerns with open and competing markets with increased
crime and other ancillary issues. He stated the greatest value that could come from the sales proceeds,
from something we don't really want in our city, is that the city controls the sale of the product, and
we know the benefit will go directly back to our community.
Attorney Brooksbank noted it is unclear if the city would get precedent over other applicants.
The Council concurred to the following:
■ Limit retail licenses to the minimum mandated by state law.
■ Directed staff to draft an ordinance regarding the zoning and regulations for
manufacturing/growing operations.
■ Limiting the manufacturing/growing operations to industrial districts.
Chief Nierenhausen suggested the Council think about restricting retails sales, because of odor and
sensitive locations, such as near schools.
10.2 Consultant for Commercial Plumbing Plan Review
Mr. Carlton presented the staff report.
Mr. Pistulka talked about the issues as outlined in the report. He discussed the current process and
how it could be improved if they utilize a consultant. He also reviewed the two fee options noted in
the report.
The Council concurred it would provide great customer service and be beneficial to have a consultant
to assist in speeding up the approval time for receiving a permit.
10.3 Discuss City Property Use Licensure/Sale
Mr. Leeseberg presented the staff report.
Councilmember Westgaard stated he would prefer a lease agreement in case of future downtown
development or road alignment.
Mr. Portner noted the property would become taxable if leased.
The Council concurred to pursue the lease agreement.
10.4 Furniture and Things Community Event Center 2024 Budget Review
Mr. Stremcha presented the staff report. He noted the Multipurpose Facility Advisory Commission
recommends a variety of solutions to solve the budget deficit. He discussed:
■ Reductions in part-time staffing. Adjustments in hours of daytime staff to nights and
weekends. Reduce customer service associate hours during the day and utilize senior activity
center staff to cover the front desk. Switching full-time maintenance to weekends.
■ Extending summer ice sales by 200 hours for tournaments and leagues.
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■ In the future consider a long-term governmental fund transfer for support of specific areas of
the building, such as the senior activity center because it was a governmental fund operation.
Councilmember Beyer expressed concerns with the projected concession revenues increasing from
$73,000 to $200,000. Mr. Stremcha noted the facility is entering its busiest season. He stated they are
increasing events by adding more tournaments and leagues. Councilmember Westgaard further noted
the first seven months of the year included a transitioning process to implement the concessions.
Councilmember Westgaard questioned where staff would find an extra 1,000 hours of ice to sell. He
expressed concern with the projected increases in revenue being a realistic goal to meet. Mr. Stremcha
stated the Cornerstone Arena ice would stay in all year except for one month.
Mayor Dietz questioned the recreation fees increasing by $100,000. Mr. Stremcha stated its extended
programming to fill the shoulder seasons such as summer break away and host leagues.
Mayor Dietz asked staff to follow up on analyzing utility bills to reduce costs.
Councilmember Westgaard expressed concerns with Personnel Services being two-thirds of total
expenditures and continuing to increase the next few years. He questioned if there was any data from
comparable facilities regarding their staffing levels. Mr. Stremcha stated the arena component can be
compared, but not the other components. Mayor Dietz noted Personnel Services are comparable to
the city.
Councilmember Westgaard has concerns with the fund balance already being negative when $655,000
in ARPA funds was transferred in 2022 to pay for future capital purchases. He questioned why the
fund balance is dropping because it needs to grow to pay for future repairs. Mr. Stremcha stated the
rest of 2023 has not been taken into consideration when the facility will be hitting its highest revenue
sales. Councilmember Westgaard stated this facility needs to be putting money away and it's struggling
to get to zero and questioned if the facility can be self-sustaining without having transfers in from the
General Fund budget.
Mr. Portner stated with the building being so new it needs to build some history and starting in 2024
they should start to see a trend line.
Councilmember Grupa stated the ice portion of the facility should be able to pay for itself, but he
questioned the field house. Mr. Stremcha discussed the hard -court surface activities, such as
pickleball/basketball as an expanded service offering being considered.
Councilmember Beyer suggested changing the budget cycle to July.
Councilmember Westgaard questioned revenue contributions of $50,607 which are not a budgeted
item. Staff was to review the item and bring back to Council for an update.
There was an update on the field house flooring. Mr. Stremcha discussed different options and pricing
and noted it's an additional $12,000 for the flexible concrete option. He stated the Council could use
the Governmental Building, Building Reserve or ARPA funds to pick up the difference depending on
the option selected. The Council also noted the additional expenses of supplies that need to be
purchased.
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Councilmember Westgaard stated he would like to see the total project cost laid out before deciding.
11. Motion to Adjourn
Moved by Councilmember Beyer and seconded by Councilmember Grupa to adjourn the
meeting of City Council. Motion carried 4-0.
The meeting adjourned at 9:25 p.m.
Tina Allard, City Clerk
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