This transcript has been formatted with the appropriate speaker names and timestamps based on the context of the Lake Elmo City Council meeting. *** **[00:00:00] City Staff:** And that's connected by HDMI? **[00:00:02] City Staff:** Maybe. No, this is on Wi-Fi. **[00:00:04] City Staff:** Oh, is it? Which is probably a mistake. It should probably be on whatever, but I have the presentation already pre-loaded. I loaded them up when I got here. **[00:00:11] Mayor Charles Cadenhead:** So you want to send to it? I can't. **[00:00:13] City Staff:** Intern? I get it. I can go in the office and call. **[00:00:17] Mayor Charles Cadenhead:** Okay, okay. Give us a moment here. We'll start the meeting shortly. Okay, well I'm on Metro iNet and that is working. The city guest is not working. **[00:00:26] City Staff:** Try a different—try a different one. I just hooked up to my phone. **[00:00:34] Mayor Charles Cadenhead:** Guys ready? All right. We're going to call the city council meeting for the City of Lake Elmo, Tuesday, March 19th, 7:00 p.m. to order. If you'd please stand with me for the Pledge of Allegiance. *(Pledge of Allegiance)* **[00:01:05] Mayor Charles Cadenhead:** All right. The second order of business here is to approve the agenda for this evening's meeting. I'll entertain a motion as such. **[00:01:14] Council Member Jeff Holtz:** Mayor, I'd like the item number nine, approve senior planner job description and job posting, to be moved to the regular agenda. **[00:01:23] Mayor Charles Cadenhead:** Okay, we'll move that down to be after "Appoint Commissioner," if that's okay. And actually, Jack, didn't you want to— **[00:01:29] Council Member Jeff Holtz:** Approve engineering task order for MDH lead service line inventory? I wanted to pull that item. **[00:01:35] Jack Griffin (City Engineer):** Pull that, okay. **[00:01:37] Mayor Charles Cadenhead:** So remove number eight and move number nine. Scratch number eight on the agenda and move number nine. Anything else? I'll entertain a motion as the agenda has been adjusted. **[00:01:49] Council Member Nick Dragisich:** Move to approve the agenda with eight scratched and nine moved to the regular agenda. **[00:01:55] Council Member Jeff Holtz:** I'll support. **[00:01:57] Mayor Charles Cadenhead:** All right, so we have a motion and a second for the agenda as referenced with number eight being removed and number nine being moved down to the bottom of the regular agenda. All those in favor please signify by saying aye. **[00:02:09] Council Members:** Aye. **[00:02:11] Mayor Charles Cadenhead:** Motion passes. The next item is to approve the minutes from the March 6th and March 12th, 2024 meeting. **[00:02:18] Council Member Nick Dragisich:** So move. **[00:02:19] Council Member Jeff Holtz:** Second. **[00:02:21] Mayor Charles Cadenhead:** All those in favor of approving the minutes for March 6, 2024 and March 12, 2024 please signify by saying aye. **[00:02:29] Council Members:** Aye. **[00:02:30] Mayor Charles Cadenhead:** Minutes are hereby approved. Do we have any public comments or inquiries this evening? **[00:02:37] Julie Johnson (City Clerk):** We do not. **[00:02:38] Mayor Charles Cadenhead:** All right. We do have a presentation today, though. Would the JCs like to approach the podium? Yeah, I just said if you want to take a seat, there's a sign-in sheet in the back. Put your name—it's for items that are not on the agenda. So we'll just give those gentlemen a moment. Are we working on getting the internet up? **[00:03:00] City Staff:** Yeah, she's working on it. She got a call into them. They're aware of it. It’s funny because the Wi-Fi works but the guest doesn't, so we don't have the VPN availability to get into our server drives, which normally we have. There's a disconnect somewhere. **[00:03:26] Mayor Charles Cadenhead:** Okay. We do have a couple of people that would like to talk during the public comments and inquiries. You have six minutes to speak. During this time, if you address us with questions, they won't be answered at the time but later directed by staff to respond. Please approach the podium with your name and address for the record. Mr. Robert Moer. **[00:03:52] Robert Moer:** I put the address of my building that I have downtown: 3520 Laverne Avenue North, by the old fire station. I sent all the council members an email yesterday letting them know where I'm at on that building. We bought that building—I say "we" because I bought it with my dad. We went into business as a tool and die shop there in 1990. My dad had it as a contract for deed with Jean Cedo. It's in my mother's name. My dad passed away, and my mom got dementia. She passed away this summer and we're selling the building. We scrubbed it out and had an auction this fall. We got a hold of David Meyer, a realtor, because we're going to put it up for sale. We had a good offer getting done and then the moratorium went on. Now it's gone. We’re stuck with this building. People don't want to buy it with this moratorium. It's hurting me; I'm the trustee for the money and there are six siblings. We're still paying street improvements, sewer, and water. It's a ton of money. When you made that decision, people like me—we’re trying to catch up because we almost went bankrupt. This is really hurting us. I just wanted to say my piece. Thank you. **[00:05:48] Mayor Charles Cadenhead:** Thank you. David Meyer. **[00:05:54] David Meyer:** David Meyer, 8845 27th Street North. I live here in Lake Elmo as well. I’ve been working with Rob to get the building sold. As soon as the moratorium hit, I got a letter from the buyer we had lined up saying, "Hey, with this moratorium, probably not." We’re back to square one. Why not just take developments one by one as they come in versus putting a whole moratorium on everything? You've got this family trying to move on from the death of their mother, and now they're stuck for a whole another year. Utilities, snow removal, maintenance—they're stuck with that. Why can't we work on the long-range plan for downtown as well as deal with individual properties? Even if we get another offer, it will likely be significantly reduced because of the moratorium. I would ask you to reconsider that moratorium. I think you're hurting our downtown and our business. It’s a perfect building for a restaurant, a distillery, a gym, or a boutique hotel. I would ask you to reconsider that for your next council meeting. Thank you. **[00:07:44] Mayor Charles Cadenhead:** Thank you, Mr. Meyer. Next, we have the JCs here to present a donation. **[00:07:54] Emily Carlson:** Hi, Mayor Cadenhead and council members. My name is Emily Carlson. I am the charitable gambling manager for the Lake Elmo JCs. We have a pull-tab booth at Twin Point. We appreciate the community support because we're able to donate back to the city and organizations like Lake Elmo Elementary and Elmo Baseball. We have a check for $7,600 to donate to the city based on our net sales from last year. Our profit was down a bit at the end of the year, but everything seems to be pumping right back up. I’ll let President Stacy say a few words. **[00:08:40] Stacy Myers:** I'm President Stacy Myers for the Lake Elmo JCs. We do the "Huff and Puff" softball tournament and community events. We’re looking for new members to help us with our projects. Unfortunately, we're not able to do the Easter egg hunt this year due to manpower and membership being down. We are always looking for new members ages 18 to 40. We thank you for allowing us to serve the community. **[00:09:12] Mayor Charles Cadenhead:** I’m very appreciative of the JCs. We certainly accept this donation. You want to get a picture with the big check? *(Pause for photo)* **[00:09:37] Mayor Charles Cadenhead:** All right, next we have the consent agenda. Item 2: Approve payment of disbursements. Item 3: Accept donation from Lake Elmo JCs, Resolution 2024-32. Item 4: Approve Union contract tentative agreement. Item 5: Approve Easton Village 6th and 7th development agreement, Resolution 2024-33. Item 6: Approve Northstar First Edition development agreement, Resolution 2024-34. Item 7: Approve plans and specs and order advertisement for bids for the 30th Street North Gap segment improvements. I will entertain a motion. **[00:10:23] Council Member Jeff Holtz:** Move to approve the consent agenda. **[00:10:25] Council Member Katrina Backstrom:** I’ll second. **[00:10:27] Mayor Charles Cadenhead:** We have a motion by Council Member Holtz, second by Council Member Backstrom. All those in favor please signify by saying aye. **[00:10:35] Council Members:** Aye. **[00:10:37] Mayor Charles Cadenhead:** Consent agenda is hereby approved. On our regular agenda, the first item is to accept the feasibility report, call for improvement hearing, and order advertisement for bids for the 15th Street North improvements. City Engineer Jack Griffin will present. **[00:10:55] Jack Griffin (City Engineer):** Thank you, Mayor, members of the Council. Tonight we have before you both the feasibility report and approval of plans/specs for the 15th Street North improvements. Back in December, Council ordered the preparation of these documents. If accepted tonight, we would notice benefiting properties and schedule a public hearing for May 7th. We have a property owner meeting tentatively scheduled for April 25th. This project would be ready for construction this summer. The location is 15th Street North from Oakdale limits to Inwood Avenue. The road is in very poor condition. Consistent with preliminary design, we are proposing a "road diet" from 40 feet of pavement to 36 feet. Geotechnical work found that a full depth reclamation (recycling inplace materials) will work to achieve a 10-ton design. This makes it quicker and cheaper. There are no storm sewer improvements necessary. Regarding assessments: there are six residential properties and one commercial property identified. However, we found that one parcel is in an Agricultural Preserve, which prohibits assessment. A few others are partial Ag Preserves. Staff will do a follow-up on these to determine if they stay on the assessment roll. The total estimated project cost is $532,000. We’re allocating $330,000 in Municipal State Aid funds. The proposed residential assessment is $8,200 per unit, and the commercial property is roughly $39,800. The project is technically and financially feasible. **[00:16:35] Mayor Charles Cadenhead:** Questions for the City Engineer? **[00:16:40] Council Member Jeff Holtz:** Move to approve Resolution Number 2024-35 receiving the feasibility report, calling hearing on improvement, and ordering the advertisement for bids for 15th Street North. **[00:16:58] Council Member Nick Dragisich:** I'll second. **[00:17:01] Council Member Jeff Holtz:** I’m glad to see we don’t have to do a full reconstruction; it’s saving those involved, including the city and property owners. **[00:17:18] Mayor Charles Cadenhead:** All those in favor please signify by saying aye. **[00:17:21] Council Members:** Aye. **[00:17:23] Mayor Charles Cadenhead:** Resolution is passed. Next, we have a discussion on conduit bonding policy. **[00:17:31] Clark Schroeder (Interim City Administrator):** Mayor, City Council. Tonight I’m presenting an introduction to conduit bonding. We’ll hear from Jenny Bolton from Kennedy & Graven, a bonding expert. This came to our attention with a proposed development along Hudson Boulevard. The city doesn't have a policy. Conduit bonding is where the city uses its tax-exempt status to issue bonds that are paid for by a private entity, like a nonprofit, hospital, or affordable housing developer. The city typically receives a fee of 0.25% to 1% of the bond issuance. In my experience, for a $30 million issuance, the organization received $300,000 just for providing the conduit. I’ll bring Jenny up for the details. **[00:19:35] Jenny Bolton (Kennedy & Graven):** Good evening. Conduit revenue bonds allow the city to act as a gateway for a private entity to borrow at a tax-exempt rate. No city money flows through this; the obligation is between the bondholders and the borrower. It's used for 501c3 nonprofits, affordable housing, and occasionally manufacturing. Borrowers get a lower interest rate because investors don't pay income tax on the interest. The city incurs no cost—the borrower pays the bond counsel and city fees. It does not affect the city's credit rating. If there's a default, the investors look only to the collateral of the borrower, not the city. One consideration is the annual $10 million "Bank Qualified" limit, but you would just factor that into your own annual financing decisions. **[00:23:42] Council Member Jeff Holtz:** In your experience, have you seen applicants utilize this and TIF (Tax Increment Financing) at the same time? **[00:23:50] Jenny Bolton:** Yes, especially for affordable housing, as both are tools available for those projects. They don't have to both be approved, but they often come together. **[00:24:28] Council Member Katrina Backstrom:** What’s the benefit to the city? We have developers lined up to come to Lake Elmo already. If we adopt a policy for low-income housing, that actually costs the city money from a service standpoint. I’m trying to understand the benefit when we already have high demand. **[00:25:20] Clark Schroeder (Interim City Administrator):** It builds the economic base and provides "fee" money that the council could dedicate to things like the Parks fund. **[00:26:10] Jenny Bolton:** It helps enable developments that have a public benefit at no direct cost to the city. **[00:26:45] Mayor Charles Cadenhead:** Can you clarify the "for-profit" housing aspect? **[00:26:50] Clark Schroeder (Interim City Administrator):** The Kramer Lake development is a for-profit company wanting to use this for affordable/workforce housing units. **[00:28:10] Council Member Nick Dragisich:** So the city could adopt a policy and never use it, but have it as a tool in the toolbox? **[00:28:18] Clark Schroeder (Interim City Administrator):** Exactly. Or you could have a policy that says you are not interested in conduit bonding so developers know ahead of time. **[00:30:10] Mayor Charles Cadenhead:** We have a public comment on this topic. Mr. Roth. **[00:30:20] Mr. Roth:** 10819 Third Street Place. I’ve seen great developments here. We have everything we need to meet the goals of the 2040 Comprehensive Plan. Unless there’s a specific 501c3 need, I don't know why we’d spend city resources to even bother with a policy. **[00:31:54] Council Member Nick Dragisich:** I’d move to refer this to the EDA to get their feedback. **[00:32:02] Council Member Jeff Holtz:** I’ll second. **[00:32:04] Council Member Katrina Backstrom:** I think an important question is how much staff time should be spent on this when we have an interim administrator and limited staff. I don't see a need to expend resources on this right now. **[00:33:15] Mayor Charles Cadenhead:** I’m for having a tool in the toolbox, but it wasn't in our strategic initiatives. We have a lot of oars in the water right now. **[00:34:25] Council Member Nick Dragisich:** I’ll withdraw my motion and wait for the fifth counselor to be here. **[00:34:38] Council Member Jeff Holtz:** Mayor, you’re setting a precedent we’ve never followed. There was a vote I was not at where nobody tabled it for me. We shouldn't be making decisions based on whether one member is absent. **[00:35:22] Council Member Katrina Backstrom:** I’m going to make a motion to table this until staff can come back with a statement about the city’s position. **[00:35:35] Clark Schroeder (Interim City Administrator):** I’ll come up with a statement saying we don't have a policy but would look at instances individually. **[00:35:45] Mayor Charles Cadenhead:** All those in favor, signify by saying aye. **[00:35:48] Council Members:** Aye. **[00:36:05] Mayor Charles Cadenhead:** Item number 12: Review mini-resumes and select semi-finalists for City Administrator. **[00:36:12] Clark Schroeder (Interim City Administrator):** We’ve been searching for a permanent administrator. We engaged PAA. We had 24 candidates. PAA color-coded them Green, Blue, Yellow, and Red. Because this is a public meeting, we are using numbers to protect candidates' identities. I’ll bring in Sean Murphy from PAA. **[00:37:35] Sean Murphy (PAA Associate):** 24 candidates total. We identified them in tiers. Tier 1 (Green) has nine candidates we strongly recommend. Tier 2 (Blue) has three candidates who are qualified but have some "red flags" like past dismissals. Tier 3 (Yellow) has seven who are qualified but perhaps lack years of experience. Tier 4 (Red) has five who didn't meet minimum qualifications. We want to narrow this to 7–9 semi-finalists for video interviews. **[00:39:40] Council Member Jeff Holtz:** Regarding candidate 15—they've been in the same position for nine years. Does that raise concerns? **[00:39:50] Clark Schroeder (Interim City Administrator):** I spoke with this candidate. Their boss is supportive but isn't leaving, so the candidate has to move elsewhere to advance. No red flags there. **[00:40:20] Council Member Jeff Holtz:** And 17 and 18 in the Blue category? **[00:40:33] Clark Schroeder (Interim City Administrator):** I know of the "but" on 17. It would not be a cultural fit. **[00:40:42] Council Member Katrina Backstrom:** I’m curious about number three. I don't think that person would be a cultural fit here. Any investigation there? **[00:40:55] Sean Murphy (PAA Associate):** Not to our knowledge. **[00:41:20] Council Member Nick Dragisich:** Have you done a basic Google search to see if there's anything embarrassing? I once found a candidate fired for city credit card misuse just through a search. **[00:41:35] Sean Murphy (PAA Associate):** We do that as we move to the deep-dive phase for semi-finalists. **[00:42:35] Council Member Katrina Backstrom:** I’m going to make a motion to advance candidates 1, 4, 6, 9, 10, 14, and 15. That is the Green tier minus 3 and 7. **[00:43:08] Council Member Jeff Holtz:** I’ll second, although I don't like number one. **[00:43:48] Council Member Nick Dragisich:** I’m not so keen on candidate 10. A Google search showed a transcript of a phone conversation discussed at a council meeting, and I hear they accepted a position elsewhere. **[00:44:10] Mayor Charles Cadenhead:** I’d say leave them in for now so we have comparison. If there's an issue, it will become self-evident during the next phase. All those in favor of candidates 1, 4, 6, 9, 10, 14, and 15, say aye. **[00:44:35] Council Members:** Aye. **[00:45:00] Mayor Charles Cadenhead:** Motion passes. Next, the eight questions for the video interview. **[00:45:10] Council Member Jeff Holtz:** I couldn't answer these eight questions in under six minutes in an authentic way. **[00:45:30] Council Member Katrina Backstrom:** Is the six-minute limit typical? **[00:45:35] Sean Murphy (PAA Associate):** It is. It tests their delivery, composure, and ability to be succinct. **[00:46:15] Mayor Charles Cadenhead:** All right. Number 13: Appoint Commissioner. **[00:46:25] Clark Schroeder (Interim City Administrator):** We have an opening on Planning and Parks. The recommendation is to appoint Tammy Sturs to Parks and bring Samuel Dean back for an interview for Planning. **[00:46:48] Council Member Jeff Holtz:** Move to appoint Tammy Sturs to Parks and bring Samuel Dean back for Planning. **[00:46:58] Council Member Nick Dragisich:** Second. **[00:47:04] Council Member Katrina Backstrom:** I don't think we need to bring Sam Dean back. I liked him; he had energy. We should just appoint him. **[00:47:20] Council Member Jeff Holtz:** I’ll friendly amend my motion to appoint both tonight. **[00:47:35] Mayor Charles Cadenhead:** All those in favor, say aye. **[00:47:38] Council Members:** Aye. **[00:47:50] Mayor Charles Cadenhead:** Item 14: Senior planner job description and posting. **[00:48:00] Clark Schroeder (Interim City Administrator):** We want to change the requirement from five years of experience to three years in addition to the degree. **[00:48:15] Council Member Nick Dragisich:** Move to approve the posting as amended. **[00:48:22] Council Member Jeff Holtz:** Second. **[00:48:30] Mayor Charles Cadenhead:** All those in favor, say aye. **[00:48:33] Council Members:** Aye. **[00:48:45] Mayor Charles Cadenhead:** Council reports? None. A few updates: there's a new Utility Billing portal on the website. Please sign up. Planning Commission meets next Monday. Downtown moratorium workshop is April 16th. Next council meeting on the 2nd will review administrator semi-finalists. Jack, any update? **[00:51:00] Jack Griffin (City Engineer):** We pulled the lead service line item because we got word the Department of Health will provide grant assistance, so they will contract the work directly. Good news. **[00:51:15] Mayor Charles Cadenhead:** With that, we will adjourn the meeting at 8:45.