Lake Elmo City Council — Transcript
Tuesday, March 18, 2025
2025 Street and Utility Improvements
3M Priority 2 Grant for Multi-Use Trail
Disposition of Former Fire Station and Parks Building
2025 Utility Rates and Fee Changes
State Legislative Zoning Preemption Bills
Easton Village Fifth Edition Improvements
Votes (6)
Accept Feasibility Report and Call for Improvement Hearing; Approve Plans and Specifications and Order Advertisement for Bids for the 2025 Street and Utility Improvements
Dissent: Council Member Hearn
Moved by Unknown [00:22:04] · Seconded by Council Member Hearn [00:22:15]
Residents from 57th Street North expressed strong opposition to their street's inclusion, arguing it was in good condition, recently replaced (2011), and the proposed assessment of $15,000 was excessive. They cited an average condition rating in 2021 and recent maintenance. City staff and Council members (Mayor, Councilman Dragas) provided professional civil engineering opinions based on geotechnical reports and visual inspections, stating the road has thin pavement (average 3.4 inches) and a poor subgrade (dirty silts with some aggregate), making it prone to rapid deterioration. They argued for reconstruction now to avoid significantly higher costs for full reconstruction in 3-5 years, which would heavily impact city funds (70% of cost).
Letter of Intent for 3M Priority 2 Funding Trail Project
Moved by Unknown [00:34:02] · Seconded by Unknown [00:34:07]
Director Stopa presented the opportunity to apply for 3M Priority 2 Grant funds for a multi-use path connecting the future Central Greenway Regional Trail to Sunfish Lake Park. The project would be approximately a half-mile, multi-use trail, estimated to cost around $200,000, and is anticipated to be 100% grant-funded. A member of the public, Tony Man, advocated for also applying for 3M funds to extend the Sunfish Lake Park restoration project, which currently relies on Conservation Partners Legacy program funds with shorter timeframes.
Approve Old Fire Station and Public Works Building RFP
Moved by Unknown [00:45:03] · Seconded by Unknown [00:45:07]
The Economic Development Authority (EDA) recommended approval of the RFP for the disposition of seven city-owned parcels (1.2 acres, 0.88 buildable), including the former fire station and parks building. The RFP emphasizes community benefits (land use, preservation of charm, public space, economic impact, small businesses) over purchase price. The evaluation criteria allocate 65 points for community benefits and 25 for developer qualifications. Discussion covered the $100,000 minimum purchase price, the nature of business subsidies (up to $150,000 under state statute), and how the committee (EDA, Planning Commissioner, staff) will score proposals.
Approve Utility Rates and Fee Changes for 2025 (Ordinance 2025-09)
Moved by Unknown [00:54:19] · Seconded by Unknown [00:54:23]
Finance Director Miller presented a recap of the utility study and proposed rate changes for water, sewer, and stormwater. The goals are fund sustainability, cash balance improvement, debt reduction, and expense recovery (including depreciation). The model accounts for $50 million in new capital assets (water treatment plants). Without increases, cash balances would deplete rapidly. Proposed increases are 20% annually for five years (water) and four years plus 10% in year five (sewer). This aims to make funds profitable after year five and reduce reliance on development subsidies. Solar building permit fees were also revised to be in line with commercial valuations. Examples of quarterly bill increases were provided: $18.35 (low volume) and $35 (medium volume).
Authorize Publication of Ordinance 2025-09 by Title and Summary
Moved by Unknown [00:55:04] · Seconded by Unknown [00:55:06]
This was a procedural motion following the approval of Ordinance 2025-09, authorizing its publication by title and summary.
Accept Improvements and Approve Security Reduction for East Village 5 Fifth Edition
Moved by Unknown [00:58:05] · Seconded by Unknown [00:58:14]
This item was pulled from the consent agenda due to a date change. The request was to retroactively begin the warranty period for Easton Village Fifth Edition on June 30, 2024, as the work was completed before that date but paperwork caused a hang-up. All work was found acceptable after a walkthrough and punch list completion, with the warranty period ending June 30, 2025. The motion was contingent on the developer being current with all payments.
Notable Quotes (13)
The Road in question was already in placed in 2011 at an age of about 18 years at the time of replacement there was additional subsurface drainage installed because that was causing the road to fail water would seep up through cracks in a road there's a big grade difference in in the neighborhood that system mitigated the failure mode and remains working today it worked Engineers did their job the road's fine now the road is being slated to be replaced only 14 years of age and it has not reached the end of its useful life.
I'll say from experience things can look to be in good good shape on the surface and serviceable but really it's like the the backbone of something if the subgrade and the underground structure is not in place that road is doomed for failure sooner than later.
I guess the the part that I'm struggling with a little bit is if we have all of the residents saying that you know from my understanding that they're okay with knowing that this price is going to go up significantly if this was assessed to just these properties 3 four years down the road.
Here's the argument I'll give you on that 70% of this cost is City cost 30% is resident cost so if we wait five years and have to do full reconstruction cost then the city's cost is going up exorbitantly as well it's not just not just the resident's cost as far as I'm concerned I'm here to represent the whole city.
this is one of the trails that you'll see is the central Greenway Corridor coming out of the park and then going east to uh Down Still Water towards the Village um there's also you know some fish Lake Park so we considered potentially you could run a basically a half mile multi-use between this trail from Stillwater to Sunfish Lake Park so if this is something You'd want to support this was really the only trail that we could find that was kind of an easy trail that would be ready to go.
There's an opportunity to uh get money from the 3M fund to continue this work the the time frame of the of the projects that you can apply for uh for funding is five years and so if we go in in August and get the the rest of what we need to take out the rest of the Woody debris and the do the rest of the forestry mulching then we're left with the question where do we get the money for the next few years to essentially extend the project.
The survey results indicated that residents wanted to preser the charm and character of the Old Village as it currently exists and that they wanted to limit big box development.
While the purchase price is not the primary factor in the decision the city may consider the offer amount When selecting a proposal so that's come up a lot like how important is the price it's not a price competition it's the best product that we could get for the city and for residents.
Value is what's what's a willing buyer is willing to pay a willing seller.
Our goals for the utility study are um to just make sure that our utility funds are sustainable we need to make sure that we're charging enough to sustain These funds um which are the utility funds just to clarify water sewer and storm water.
I'm just concerned that some people might say see the word profitable oh and misinterpret that as that the city is making money on this deal so the city is only making enough money in order to reild the things that we need to rebuild for the water fund specifically or the sewer fund specifically or the storm water fund specifically we're not sending the money around to other places Optics matter.
This plan puts us unpack to get there over a fiveyear period which is a reasonable period of time given where we are positioned at currently in those funds correct.
The request here is to uh retroactively begin the warranty period um June 30th 2024 the work was completed in advance of June 30th 2024 um and due to uh paperwork hangup um we've been working with the developer um we we have done a walk through punch list is settled everything's acceptable.
Ordinances & Resolutions (14)
Resolution to accept donation from Lake mjc's.
Resolution to approve Lake Elmo Elementary development agreement.
Resolution for 2025 Street and Utility Improvements.
Ordinance revising the 2025 fee schedule for the City of Lake Elmo and revising city code 5.16 regarding surface water fees.
City code section regarding surface water fees, revised by Ordinance 2025-09.
Resolution authorizing publication of Ordinance 2025-09 by title and summary.
Request for Proposal for developers interested in the former fire station and parks building property.
Proposed state legislation requiring cities to permit at least two units on any single-family zoned lot, limits lot sizes, and prohibits minimum parking requirements.
Proposed state legislation requiring cities to upzone 50% of residential areas to allow townhouses, duplexes, and triplexes by right, prohibits certain construction materials, eliminates parking, and limits planned unit developments.
Proposed state legislation requiring cities to permit multi-family, mixed-use, and commercial districts (except heavy industrial zones), allow multi-family buildings up to 75 ft tall in commercial districts, eliminate parking, and award density bonuses for affordable housing.
Proposed state legislation that would not allow design standards for units under four, affecting Lake Elmo's design guidelines.
Proposed state legislation prohibiting all cities from requiring minimum parking spaces for any new development.
Report outlining the feasibility of the 2025 Street and Utility Improvements project.
Geotechnical report reviewed by the Mayor, providing data on pavement thickness and subgrade conditions for 57th Street North.