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Home My WebLink About05-05-26 City Council Meeting MinutesCITY OF LAKE ELMO CITY COUNCIL MINUTES 5, 2026 CALL TO ORDER/PLEDGE OF ALLEGIANCE Mayor Cadenhead called the meeting to order at 7.00 pm. PRESENT: Mayor Charles Cadenhead and Councilmembers Nick Dragisich, Matt Him, Jeff Holtz, and Nick Kragness. Staff present: Administrator Miller, City Attorney Sonsalla, City Engineer Stanley, Municipal Sr. Project Manager Griffin, Contract Planner Fuerst, Fire Chief Kalis and Assistant Fire Chief Svoboda. APPROVAL OF AGENDA Councilmember Holtz, seconded by Councilmember Kragness, moved TO APPROVE THE AGENDA AS PRESENTED. Motion passed 5 — 0. PRESENTATIONS Biofilm Mediated Destruction of PFAS in Groundwater Research Seth Thompson, Freshwater, discussed the project team and overview of the project funded by the state of Minnesota to treat PFAS sites with biofilm. PUBLIC COMMENTS / INQUIRIES Colleen Swedberg, Landscape Revival, announced the third annual perennial sale at Rockpoint Church on June Gth and noted the event will also include exhibits and a food truck. Anne Bucheck, 2301 Legion Avenue, urged the Council to deny the proposed short term rental ordinance and expressed concern over corporate ownership of rentals and safety concerns. Don Pinz, 8309 38th Street North, stated he was informed by a neighbor about the proposed short term rental ordinance and asked if the city should have notified him. Page 117 Geraldine Breheim, 8415 38th Street North, stated she does not want temporary rentals with unknown people moving in and out. Peter Kastler, 9130 55th Street North, stated he uses a second home on his property as a short term rental and has not had any negative issues. Stephanie Checkley, 8382 Hidden Bay Trail, local realtor, stated that she represents properties in Lake Elmo and has never had anyone purchase a home for use as a short term rental and spoke in support of short term rentals. Susan Dunn, 11018 Upper 33rd Street North, spoke in opposition to allowing short term rentals and suggested the city do more research. Brook Duerr, 4870 Jerome Avenue North, stated he also owns a second home in the city and opposes property owner rights being taken away. Todd Williams, 3025 Lake Elmo Avenue North, submitted written comments opposing short term rentals. ACCEPT MINUTES Councilmember Holtz, seconded by Councilmember Him, moved TO ACCEPT THE MINUTES OF THE APRIL 14, 2026 CITY COUNCIL WORKSHOP AND APRIL 21, 2026 CITY COUNCIL MEETING AS PRESENTED. Motion passed 5 — 0. CONSENT AGENDA 1. Approved Payment of Disbursements S. Accept Donation to the Fire Department from Snowell Raleigh 6. Approve Plans and Specifications and Order Advertisement for Bids for the Elmo's Pup Park Parking Lot Improvements Councilmember Holtz, seconded by Councilmember I<ragness, moved TO APPROVE THE CONSENT AGENDA AS PRESENTED. Page 217 Councilmember Dragisich requested removal of items 2, 3 and from the consent agenda. Motion to approve the Consent Agenda as amended passed 5 - 0. REGULAR AGENDA ITEM 1: Polco Contract for Community Engagement Subscription City Administrator Miller reported that staff is proposing use of Polco for community surveys. Alec Vice, Polco Director of Account Management, presented services provided by Polco. Discussion was held regarding features and capabilities of the survey platform and limiting responses to only Lake Elmo residents. Councilmember Holtz, seconded by Councilmember Kragness, moved to approve the received quote and scope of service from Polco. Motion passed 5 — 0. ITEM 2: Zoning Text Amendment — Short Term Rentals Councilmember Him recused himself and stepped away from the council dais due to a conflict of interest based on his family's ownership of a rental property. Community Development Director reviewed the need for updates to the short term rental ordinance and reviewed processes in place in similar communities. Director Stopa also reviewed current bed and breakfast licenses issued in Lake Elmo. Discussion was held concerning possible restrictions, lodging tax and enforcement. Councilmember Holtz, seconded by Councilmember Kragness, moved to adopt Ordinance 2026-06 approving the proposed text amendments and fee schedule updates for short-term rentals as presented by Staff. Councilmember Dragisich, seconded by Mayor Cadenhead, moved to amend the motion to restrict short term rentals to the following zoning districts: RT, A, RR, RS, RE and commercial mixed use business park. Motion failed 1— 3. (Cadenhead, Holtz, Kragness — nay) Mayor Cadenhead, seconded by Councilmember Holtz, moved to amend the primary motion to enforce the policy that the manager or ownership needs to be within 30 miles of the property to be licensed. Motion passed 3 —1. (Dragisich — nay) Page317 Councilmember Holtz, seconded by Mayor Cadenhead, moved to amend the primary motion to add an insurance requirement applicable to this type of use under the performance standards section. Motion passed 4-0. Councilmember Dragisich, seconded by Councilmember Kragness, moved to amend the primary motion under paragraph 2 of section D, Maintenance Standards, that would require annual inspections for conformance to city codes. Motion passed 4 — 0. Primary motion passed 3 —1. (Dragisich — nay) Mayor Cadenhead, seconded by Councilmember Holtz, moved to adopt Resolution 2026-029 Summary of Publication of Ordinance 2026-06. Motion failed 3 —1. (Dragisich — nay) ITEM 3: Preliminary Plat, Rezoning and Variances — Highpointe Crossing Consulting Planner Fuerst presented a request from Rachel Development for preliminary plat approval, rezoning and variances for a rural development of 18 single family homes on approximately 80 acres. Planner Fuerst reviewed staff recommendations, draft findings and conditions of approval. Councilmember Him, seconded by Councilmember Dragisich, moved to adopt Ordinance _2026- 07, approving the rezoning requested by Rachel Development on the subject property based on the findings of fact therein. Motion passed 5 — 0. Councilmember Him, seconded by Councilmember Holtz, moved to adopt Resolution 2026- 030, approving the preliminary plat for Highpointe Crossing requested by Rachel Development on the subject property based on the findings of fact and conditions therein. Motion passed 5 — 0. Councilmember Him, seconded by Councilmember Holtz, moved to adopt Resolution 2026- 031, approving the front yard setback variance, Resolution 2026-032, approving the landscaping variance, and Resolution 2026-033, approving the sidewalk variance for Highpointe Crossing as requested by Rachel Development on the subject property based on the findings of fact and conditions therein. Motion passed 5-0. Councilmember Him, seconded by Councilmember Kragness, moved to adopt Resolution 2026- 034, approving the summary publication of Ordinance 2026-07. Motion passed 5 — 0. Page 417 ITEM 4: Approve Cooperative Cost Share Agreements with Washington County for the TH36 and CSAH 17 (Lake Elmo Ave) Interchange and South Frontage Road Improvements Municipal Sr. Project Manager Griffin reviewed the background and location of the project for intersection and frontage road improvements at the intersection of Highway 36 and Lake Elmo Avenue. Manager Griffin also reviewed the agreements with Washington County and MnDOT related to the project, noting the city share of the project cost. Discussion was held regarding Council input on change orders. Councilmember Holtz, seconded by Councilmember Kragness, moved to approve Resolution No. 2026-024 Approving Cooperative Agreements with Washington County for the TH 36 and CSAH 17 (Lake Elmo Avenue) Interchange and South Frontage Road Improvements. Motion passed 5 — 0. ITEM 5: Approve Cooperative Construction Agreement, MnDOT Contract No. 1060495, for the TH 36 and CSAH 17 (Lake Elmo Avenue) Interchange and South Frontage Road Improvements Councilmember Holtz, seconded by Councilmember Him, moved to approve Resolution No. 2026-025 Approving Cooperative Construction Agreement, MnDOT Contract No. 1060495. Motion passed 5-0. ITEM 6: Approve the Change of Roadway Jurisdiction Agreement, MnDOT Contract No. 1062311, for a portion of the South Frontage Road Improvements Councilmember Holtz, seconded by Councilmember Dragisich, moved to approve Resolution No. 2026-026 Approving the Change of Roadway Jurisdiction Agreement, MnDOT Contract No. 1062311. Motion passed 5 — 0. ITEM 7: Open Burning Ordinance Amendments Assistant Fire Chief Svoboda presented proposed updates to the city's open burning ordinance to address concerns related to safety and nuisance smoke. Councilmember Holtz, seconded by Councilmember Dragisich, moved to adopt Ordinance 2026-05, approving the amendments to 1. Ordinance 5.12-IV Open Burning. Motion passed 5 — 0. Page 517 Councilmember Holtz, seconded by Councilmember Kragness, moved to adopt Resolution 2026-027, approving the summary publication of Ordinance 2026-05. Motion passed 5 — 0. ITEM 8: RFP for the Sports Complex and Central Park Master Plan Community Development Director Stopa reviewed the background of the need for a sports complex, noting that hiring a consultant is the next step in the process. Director Stopa presented an overview of criteria included in the proposed RFP. Councilmember Holtz, seconded by Councilmember Dragisich, moved to approve the RFP as presented by staff Motion passed 5-0. ITEM 9: Stormwater Management Utility Code Review City Engineer Stanley reviewed the proposed scope for providing a review of the Stormwater utility code. Councilmember Holtz, seconded by Councilmember Dragisich, moved to approve the scope for review of Stormwater Utility Code as provided by Bolton & Menk, Inc. Motion passed 5 — 0. Consent Agenda Item 2: Deny Stormwater Appeal for 4180 Irving Circle North Public Works Director Tholen reported on his inspection of the property. Mayor Cadenhead, seconded by Councilmember Holtz, moved to deny the stormwater appeal for 4180 Irving Circle North. Motion passed 5 — 0. Consent Agenda Item 3: Approve Stormwater Appeal for 11243 30th Street North Public Works Director Tholen reported on his inspection of the property. Councilmember Holtz, seconded by Mayor Cadenhead, moved to approve the stormwater appeal for 11243 301h Street North. Motion passed 5 — 0. Consent Agenda Item 4: Deny Stormwater Appeal for 11018 Upper 33rd Street North Page617 Public Works Director Tholen reported on his inspection of the property. Homeowner Susan Dunn stated that she does have a rain barrel and water does not drain off her property. Mayor Cadenhead, seconded by Councilmember Him, moved to deny stormwater appeal for 11018 Upper 331d Street North. Motion passed 5 — 0. COUNCIL REPORTS Councilmember I<ragness: Will attend the Lake Elmo Airport Advisory Committee meeting and provide a report at the next Council meeting. STAFF REPORTS AND ANNOUNCEMENTS None Meeting adjourned at 10:44 p.m. ATTEST: Ju ie has n, ity Clerk LAKE ELMO CITY COUNCIL Charles Cadenhead, Mayor Page717