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11-17-2025 CCM Meeting of the City Council Held at the Elk River City Hall Monday, November 17, 2025 Members Present: Mayor John Dietz, Councilmembers Cory Grupa, J. Brian Calva, Mike Beyer, and Jennifer Wagner Members Absent: None Staff Present: City Administrator Cal Portner, City Attorney Jared Shepherd, Senior Planner Chris Leeseberg, Business Services Director/Assistant City Administrator Joe Stremcha, Public Works Director/Chief Engineer Justin Femrite, Community Development Director Zack Carlton, Police Chief David Kuhnly, Special Services Sergeant Andy Zabee, Juvenile Detective Sergeant Don Birdsall, Human Resources Manager Lauren Wipper, Finance Manager Lori Stich, and City Clerk Tina Allard 1. CALL MEETING TO ORDER Pursuant to due call and notice thereof, the meeting was called to order at 6:00 p.m. 2. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 3. CONSIDER AGENDA Moved by Councilmember Grupa and seconded by Councilmember Calva to approve the agenda. Motion Carried 5-0. 4. CONSENT AGENDA Moved by Councilmember Wagner and seconded by Councilmember Beyer to approve the following consent items as outlined in their respective staff reports. Motion 5-0. 4.1 Check Register 4.2 Resolution 25-65: Local Road Improvement Program (LRIP) Application for the 193rd Avenue/Evans Street Roundabout 4.3 Resolution 25-66: Local Road Improvement Program (LRIP) Application for the Downtown Reconstruction Project 4.4 Resolutions 25-69 Certifying Unpaid Sewer and Resolution 25-70 Certifying Stormwater Utility Services City Council Minutes November 17, 2025 --------- Page 2 of 11 4.5 Resolution 25-71 Certifying Unpaid Water and Resolution 25-72 Certifying Electric Utility Services 4.6 Community Service Officer 1 (CSOI) Employment Agreement Template 4.7 Development Contract Oakwater Ridge 1st Addition 4.8 Conditional Use Permit CU 24-22: Winlectric CUP Revocation 4.9 Agreement 25-33: Sherburne County for Mississippi Road Trail 4.10 Agreement 25-34: Shed User Agreement with MN Biathlon and Certificate of Insurance 4.11 Hire Senior Activity Center Assistant 5. OPEN FORUM No one appeared for open forum. 6. PRESENTATIONS, AWARDS, AND RECOGNITION 6.1 Sherburne County Administrator Update Sherburne County Administrator Bruce Messelt provided the Council with the following updates: ▪ Pilot bus service program to replace the Northstar Commuter Rail, as outlined in his presentation in the packet record. ▪ State legislation inhibiting data centers from locating in Minnesota, which resulted in challenges to sell the former Sherco Plant land in the City of Becker. He noted they will ask the legislature to reconsider an exemption for this parcel of land. ▪ The County Board is revisiting the 30-year moratorium on nuclear power. ▪ County Road 11 turnback to the state as the road is getting too busy to be a county road. ▪ Unfunded Federal and State mandates are creating a financial burden for the county. ▪ Tobacco ordinance consideration by the county board to limit vape products. ▪ Software implementation to protect the county building due to two previous active shooter issues. He stated they would be offering this technology to the schools as well. ▪ Implementation of the IPAWS (Integrated Public Alert and Warning System) and the outdoor warning signs are now becoming obsolete. They are evaluating what to do with the old equipment. ▪ A contamination concern at the Elk River Landfill, and the need to remedy it now, because once it's closed in the future, there is no guarantee that Waste Management will still be around to be responsible for it. City Council Minutes November 17, 2025 --------- Page 3 of 11 Mayor Dietz suggested a joint work session with the Board to understand more about the opposition and controversy surrounding data centers. He further suggested a joint meeting in 2026 with the Sherburne County Board, which Mr. Messelt stated would be a good idea. Mayor Dietz also expressed concerns with other communities using the Elk River Landfill due to safety and contamination concerns. He stated it should only be available to Sherburne County residents. He asked if higher fees could be imposed on other communities. Mr. Messelt stated he would need to review this item further. 6.2 City of Elk River Volunteer of the Month Mayor Dietz presented the November Volunteer of the Month award to Mary Murphy. He highlighted the following: ▪ Volunteer at the front desk of the FT Center ▪ Co-leader of the monthly book club at Elk River Senior Center ▪ Active in American Legion Auxiliary as Chaplain and Poppy Sale Chair ▪ Social club leader at Elk River Senior Center, planning dinner, game days, concerts, and plays ▪ Election judge in Wright County 7. PUBLIC HEARINGS 7.1 Resolution 25-67: Plat of Perkins Acres The staff report was presented. Mr. Carlton stated the current conditions in the staff report do not include a trail easement, but the Council could include one for a 10 or 20-foot easement. He reviewed the Trails Master Plan for this area, along with the topography and wetlands. He would recommend the trail be located along the north side of 196th Avenue, noting it could fit in the right-of-way without an easement being needed. Mayor Dietz opened the public hearing. Alan Perkins, 13937196th Avenue, stated he is representing his mom and is available for questions. Mayor Dietz closed the public hearing. Mayor Dietz questioned whether the staff's recommendation regarding the trail easement aligned with the Parks and Recreation Commission's recommendation. Mr. Carlton stated the commission makes a general blanket recommendation for a trail easement to be determined by staff and the Council. He stated that if the Council is okay with the trail in the right-of-way, an easement is not needed, but if the easement is wanted, it should be added as a condition. Councilmember Wagner asked about the purpose of requiring a cul-de-sac when this road only supports the two lots. Mr. Carlton explained public street infrastructure standards and the need for larger vehicles to turn around. Moved by Councilmember Wagner and seconded by Councilmember Grupa to adopt Resolution 25-67 approving the Plat of Perkins Acres, subject to the following conditions: 1. Staff approval of all civil plans supporting the construction of the public cul-de-sac. City Council Minutes November 17, 2025 --------- Page 4 of 11 2. The applicant must enter into a development contract with the city regarding the construction of the cul-de-sac. 3. Park Dedication Fee shall be paid for one new single-family parcel. Motion Carried 5-0. 7.2 Variance: Side Yard Setback, Tim St. Claire - 19072 Baldwin St NW The staff report was presented. Mayor Dietz opened the public hearing. Tim and Minda St.Claire, 19072 Baldwin Street, explained the child adoption requirements of the state for physical safety standards. Mr. St. Claire also discussed the condition of the current deck wood and how the railings don't meet the code. Mayor Dietz asked if the applicants could reconstruct their deck within its current footprint. Mr. Carlton stated yes. Councilmember Calva expressed empathy and understanding of the adoption process and requirements by the state, noting he went through a similar process. He stated he spoke to the adjacent owners and knows their thoughts on the request. Ms. St. Claire stated that the adjacent renters expressed that they have no concerns with the variance. Mayor Dietz closed the public hearing. Councilmember Wagner provided an update on the Planning Commission's recommendation. Moved by Councilmember Wagner and seconded by Councilmember Beyer to direct staff to draft a resolution making findings of fact, denying the side yard setback variance as the standards for approval are not met. 1. Not maintaining adequate separation between structures for safety, access, neighborhood consistency, and utility needs does not meet the general purpose and intent of the ordinance. 2. The property is guided for residential uses, which includes decks, and the property is currently improved with a home and deck that provide reasonable residential use. 3. Expanding the deck can also be accomplished without requiring a variance, but expanding the nonconformity is not necessary to allow reasonable use of the property. 4. The lot configuration and existing house placement are not unique among properties in this neighborhood. Many nearby homes have similar layouts and conforming decks within the required setbacks. 5. Enlarging the deck to encroach further into the setback could disrupt the established pattern of separation between structures, potentially altering the visual and spatial character of the area. City Council Minutes November 17, 2025 --------- Page 5 of 11 Motion Carried 5-0. 7.3 Variance: Structure Size Variance, Benjamin Poythress - 13640 Island View Dr NW The staff report was presented. Mayor Dietz opened the public hearing. There being no one to speak to this matter, Mayor Dietz continued the public hearing to December 15, 2025. Moved by Councilmember Beyer and seconded by Councilmember Calva to continue the public hearing for this item to December 15, 2025. Motion Carried 5-0. 7.4 Ordinance Amendment: Reasonable Accommodation Appeal Process, City of Elk River The staff report was presented. Mayor Dietz opened the public hearing. There being no one to speak to this matter, Mayor Dietz continued the public hearing to January 20, 2026. Moved by Councilmember Grupa and seconded by Councilmember Calva to continue the public hearing to January 20, 2026. Motion Carried 5-0. 7.5 Ordinance 25-16: Adopt 2026 Master Fee Schedule Resolution 25-68: Summary Publication of Ordinance The staff report was presented. Mayor Dietz opened the public hearing. There being no one to speak to this matter, Mayor Dietz closed the public hearing. Councilmember Wagner asked for clarification on the rink glass fee and the new restaurant manager background check fee, which Mr. Stremcha explained that the original tempered rink glass will be sold as individual panes, instead of a bulk sale, which was very undervalued in the public auction. Ms. Allard stated that the new manager background investigation is outlined in the city code, but had not previously been charged a fee. The fee covers the staffing cost to do the background check when a restaurant or store changes general managers, which is required by law for the licensee. Moved by Councilmember Calva and seconded by Councilmember Beyer to adopt Ordinance 25-16 approving the 2026 Master Fee Schedule. Motion Carried 5-0. Moved by Councilmember Beyer and seconded by Councilmember Grupa to adopt Resolution 25-68 for summary publication of the ordinance. Motion Carried 5-0. 8. GENERAL BUSINESS 8.1 Tobacco Compliance Failures: Elk River Tobacco City Council Minutes November 17, 2025 --------- Page 6 of 11 Mr. Shepherd presented the staff report. He noted this was a license review hearing and discussed the laws regarding age compliance checks. He further detailed the failures of Mr. Husein's business, Elk River Tobacco. The hearing was opened, and Mr. Husein had an opportunity to comment. Shaher Husein stated he would be representing his father at this hearing. (Noman Husein was also in attendance) Mr. Shaher Husein stated that the fourth offense was outside the 24-month period, so they should be on their third violation. He stated this was only their third violation within 36 months. He stated they have had employee turnover, and they have set up different systems, and they have passed different inspections from the county and the state health department. He stated they have done everything they can to get their employees to cooperate with the rules. He stated they would like to appeal the revocation, pay the $1,000 penalty, and would be willing to do a seven-day suspension. Mayor Dietz questioned the city attorney about the discrepancy between the third and fourth violations. Mr. Shepherd outlined the dates of the failed age compliance checks as noted in the packet record, which were all within the 36-month time period. Mr. Shaher Husein submitted documentation that he stated supported passing age compliance tests. Police Juvenile Detective Sergeant Don Birdsall stated the police department partners with staff at Sherburne County Public Health to do the compliance checks, which resulted in these four violations. Mayor Dietz stated he has heard that Elk River Tobacco is well-known for selling products to underage citizens. Mr. Birdsall stated that, in between these compliance checks, the police department has received other complaints. He stated some have been documented, and that he personally received one call from a parent who caught their kid with a vape device, and they learned the kid was purchasing products from Elk River Tobacco. Mr. Birdsall explained how the compliance checks are not designed to trick anyone, and he also explained how the driver's license is vertical for anyone under the age of 21 versus horizontal for anyone else. He stated that if an employee is asking for ID, it should be very obvious. Mr. Birdsall also noted the employee never asked for identification in any of the compliance checks. Councilmember Beyer asked if the employee was the same person in every case. Mr. Birdsall stated they were all different. Mayor Dietz asked Mr. Shepherd if he had any recommendations, noting that if the Council decides to suspend the license, he would recommend it be longer than seven days. Mr. Birdsall questioned who the owner of Elk River Tobacco is. Mr. Shaher noted that it is his father, Noman Husein. Mr. Birdsall noted that one of the compliance check failures was done by Noman Husein. Councilmember Calva asked how many times Elk River Tobacco passed compliance checks. Mr. Shaher Husein stated they have tests from the health department and was unsure. Mr. Shepherd confirmed they did pass a check in 2023. Councilmember Grupa questioned which establishments get checked. Mr. Birdsall stated that they go to every business each year. Mr. Shepherd noted two of the documents submitted by Elk River Tobacco are state health department City Council Minutes November 17, 2025 --------- Page 7 of 11 inspections and are unrelated to age compliance checks. Councilmember Calva asked if the license was to be revoked if Mr. Husein would have an opportunity to apply again in the future. Mr. Allard noted how one city allowed for application after one year. Councilmember Calva stated he is pro-business but believes businesses also need to play by the rules. He noted that if you ask for the driver's license, you can tell if a person is under the age of 21, and that this business is not even asking for identification. Councilmember Calva noted the owner failed once, and there's also an employee training issue. Mr. Sharer Husein stated they enforce it with their employees, but after they enforce it, not much is in their hands. Councilmember Calva stated he is not hearing the ownership taking responsibility, so he can't support a second chance on this matter. Councilmember Wagner questioned whether every employee is required to have training, similar to liquor compliance. Staff noted no. Moved by Councilmember Calva and seconded by Councilmember Beyer to direct staff to prepare a resolution with findings of fact for the next Council meeting revoking the tobacco license for Elk River Tobacco, LLC. Motion Carried 5-0. 8.2 Concept Plans: Elk River Water Tower Historic Site The staff report was presented. Mr. Carlton introduced Ms. Sandy Meulners-Comstock from the Mend Collaborative. Ms. Meulners-Comstock discussed the historic site concept plan as outlined in her presentation in the packet record. Mayor Dietz asked who would have the responsibility to apply for grant funding. Mr. Carlton stated it would be the staff, along with the Heritage Preservation Commission, and noted they are currently working on one opportunity. Councilmember Wagner suggested staff also add the Central Minnesota Arts Board as a grant resource. Councilmember Calva stated he met with the surrounding neighbors, who all expressed how much they liked the concept plans. The Council noted the nice work done by the committee and thanked them for their work on this project. Heritage Preservation Commissioner Gavin Tuckey noted it was three years ago today when he interviewed and joined the Commission. He stated he is a licensed 5th-grade teacher, and he was motivated by the engagement he saw with the kids, who were excited to participate. Moved by Councilmember Calva and seconded by Councilmember Grupa to accept the plans for the Elk River Water Tower Historic Site. Motion Carried 5-0. 9. MOTION TO ADJOURN REGULAR MEETING City Council Minutes November 17, 2025 --------- Page 8 of 11 Councilmember Wagner questioned why the tobacco industry is not more like the liquor industry in reference to mandated age compliance training. Ms. Allard stated the city could add language to the city code requiring mandatory training. Councilmember Wagner highlighted the tree lighting ceremony scheduled for Thursday evening. Mr. Portner recognized Ms. Allard's retirement and highlighted her 27 years of service to the city. The Council thanked Ms. Allard for her work. Moved by Councilmember Beyer and seconded by Councilmember Wagner to adjourn the meeting of City Council. Motion Carried 5-0. The meeting adjourned at 8:04 pm 10. WORK SESSION The work session was called to order at 8:09 p.m. 10.1 Capital Improvement Plan 2026-2030 Mr. Stremcha presented the staff report. The Council expressed the following: ▪ Mayor Dietz questioned the need to do both the Overlook Rooftop Lounge and the extension of the parking lot at the community center. Mr. Stremcha stated the purpose of the rooftop lounge would be to capture more revenue from increased food and liquor sales and to offer a unique feature of a dining rooftop not currently in the city. It would help enhance the user experience of the facility and be used for event rental space. Councilmember Wagner stated she'd like the community center to pay for its own upgrades. The Council concurred with keeping the parking lot extension this year and utilizing an intergovernmental fund loan and not doing the rooftop lounge. ▪ Hesitant to spend $1 million on the Dave Anderson Athletic Complex, if there is future potential, it will be sold as part of a possible fairgrounds development project. ▪ Chief Kuhnly explained the red dot tool for improving gun accuracy. Mr. Portner suggested this could possibly be purchased with 2025 year-end surplus funds. ▪ Fire department requests need more discussion, noting that there are a lot of requests. ▪ Question about whether to update Highland Park. Mr. Stremcha stated that this is currently being analyzed by the Parks and Recreation Commission. ▪ Questioned the types of vehicles driven by staff and if there are other alternatives. Mr. Portner stated a fleet policy is currently being drafted for future consideration. 10.2 Energy Management Solutions - Solar on Public Buildings The staff report was presented. He discussed the state and federal payout for these grants. He mentioned that staff is currently evaluating sites to consider for this program. He also noted a deadline of December 1 to submit any grants. Mr. Stremcha introduced Gary Swanson with Energy Management Solutions. City Council Minutes November 17, 2025 --------- Page 9 of 11 The Council expressed the following comments: ▪ How long will the panels last on a roof? ▪ Will the project pay for itself? ▪ Are there annual maintenance costs? ▪ Is someone monitoring the system, or is it self-sustaining? ▪ Can the state/federal government change its mind on reimbursement after we have already spent the funds and completed the project? ▪ Concerned about the tight timeline, the Council has to decide without having the time to do more research on these questions. The Council consensus was not to proceed further on this due to the concerns outlined here. 10.3 Municipal Cannabis Retail Discussion Councilmember Calva asked to have a discussion about the city owning a municipal cannabis retail operation and being in this type of business. He is against it and has talked to people in the community who do not think it is a good idea. He would be a no vote on any future discussions. He has been sober for 35 years and feels he would be dishonoring all the people he knows who struggle with addiction by being a proponent in any way for cannabis. He questioned whether this is the type of city the City Council wants to see. He couldn't find a lot of people who want the city to be in the liquor/cannabis business and asked if we are going a step too far. Councilmember Grupa stated he has mixed feelings about it as well. He understands people have addictions, but it comes down to being able to make a choice similar to the sale of guns and liquor. He stated it is a chance for the city to bring in revenue, which is a good thing. He also believes in allowing medical cannabis. Councilmember Beyer stated he has not been completely on board with cannabis, noting the State of Minnesota is making licensure a requirement in every city. He would rather say no to every cannabis business. He is looking for small things to make it better, such as the logo design. He has heard from a lot of people that they don't want any of it here, but also noted it may just be the people they each know and hang out with versus other people who would not have any issues with it. Councilmember Wagner stated she doesn't recall anyone being against cannabis, but she also hasn't talked about it a lot in everyday conversations. She is not fully convinced it will be a massive moneymaker. Her biggest frustration is with how the state is operating with cannabis. She stated there are some reasons for the city to own and operate a store, such as responsible oversight and knowing a clean product will be sold. She will continue to support Cannabound. She stated it could be a potentially good revenue source for the city. Mayor Dietz stated he first thought it would be good for revenue, but staff says the operation may not generate revenue for two years. He questioned why the city needs to do this now and suggested waiting five years. He has had a lot of people say they don't want it. He feels cannabis and liquor are two different things and that most people using cannabis get higher than a kite, whereas liquor is used more socially. He is withdrawing his support of a city-owned cannabis store, feeling the city would be taking a risk by being at the forefront of selling cannabis. He expressed concerns about a private City Council Minutes November 17, 2025 --------- Page 10 of 11 business selling products at a lower price. Mr. Stremcha stated that getting ahead of the market would help establish a competitive edge. He also stated product costs would not be higher because they would have to compete with other businesses. Councilmember Wagner stated that people have a fear of something they don't know and of the stereotypical perceptions from the past. She stated cannabis is not about smoking a joint; it's about understanding the different levels of potency and uses, and some people want to get away from using liquor and its effects. Councilmember Calva stated the issue for him is saying yes to it and putting his name behind it. He stated that the money the city needs will come from somewhere else. He also expressed concern that a staff person was hired for a cannabis manager role, and it weighs on him. The Council consensus was to continue this topic until the December 1, 2025, Council meeting. 11. MOTION TO ADJOURN Moved by Councilmember Grupa and seconded by Councilmember Calva to adjourn the meeting of City Council. Motion Carried 5-0. The meeting adjourned at 9:24 p.m. 12. CLOSED MEETING - LELS #231 COLLECTIVE BARGAINING AGREMENT The meeting was called to order at 9:26 p.m. 12.1 Statement to be read by the Mayor: "The City Council will be closing the meeting pursuant to MN Statute Section 13D.03, Subdivision 1(b). The Council will discuss the city's labor negotiation strategy related to the city's negotiations with the Collective Bargaining Agreement, LELS 231." Mayor Dietz read the statement noted above. 12.2 Motion Calling Closed Meeting The meeting was called to order. 12.3 Hold Closed Meeting The closed meeting was held. 12.4 Motion to Adjourn Closed Meeting Moved by Councilmember Wagner and seconded by Councilmember Grupa to adjourn the meeting of City Council. Motion Carried 5-0. The meeting adjourned at 10:00 p.m. Minutes prepared by City Clerk Tina Allard. City Council Minutes November 17, 2025 --------- Page 11 of 11 13. INFORMATION 13.1 Investment Report - 3rd quarter 13.2 October Financial Reports ___________________ __________________ John J. Dietz, Mayor ___________________ Tina Allard, City Clerk