City Council

REGULAR ANDOVER CITY COUNCIL MEETING – DECEMBER 5, 2023 MINUTES The Regular Bi-Monthly Meeting of the Andover City Council was called to order by Mayor Bukkila, December 5, 2023, 7:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councilmembers present: Jamie Barthel, Rick Engelhardt, and Randy Nelson Councilmembers absent: Ted Butler Also present: City Administrator, Jim Dickinson Community Development Director, Joe Janish City Attorney, Scott Baumgartner Associate Planner, Jake Griffiths Others PLEDGE OF ALLEGIANCE RESIDENT FORUM Ben Riechers, 15844 Martin Street NW, came forward and shared that there has been almost no population growth in the City over the last seven to eight years, yet they still have the mindset that this is a growing community. He asked how much of the $1,600,000 assessment is going against homes that will be built in the rural reserve as it relates to the CIP. He asked about the revenue bonds and if this cost is something that everyone will pick up or just the new built homes. Mayor Bukkila asked what Mr. Riechers is referring to when he talks about the $1,600,000 assessment. Mr. Riechers stated he is looking at the CIP from earlier this year. Mayor Bukkila asked if this is something specific to a project. Mr. Riechers stated this is specific to the rural reserve project. City Administrator Dickinson explained that this is an anticipation of some potential development moving along in this area. He noted the $1,600,000 in assessments would be towards developers, likely funded by payments outlined through development contracts. Mr. Riechers asked if this is a balance that the City would be holding or a balance that the developer would be holding. Mr. Dickinson said most of it would be held by the developer and explained other costs that would be associated with the betterment of the entire system would be borne by the water and utility funds. He added the $2,700,000 in revenue bonds would be structured so that Regular Andover City Council Meeting Minutes – December 5, 2023 Page 2 the City would be reimbursed through fees. He stated the whole goal for this is that the development would pay for itself and if it is a cost relative to the utility that would benefit the community as a whole then the trunk fund would pay for it. He stated this would not go to the tax levy. Mayor Bukkila asked if the City will be front loading costs that would then be recouped. Mr. Dickinson said yes. Mayor Bukkila asked if this is the anticipated impacts of a potential development to existing City systems. Mr. Dickinson said yes. He explained there are educated numbers being put into the CIP. He noted the numbers are based on how the rural reserve would develop, depending on how the strategy of the development works. He added that they would identify this as costs that would be fees and the fees would then be indexed. Mayor Bukkila noted the importance of anticipating this rather than reacting to it when the time comes. Mr. Riechers asked how many homes have to be developed in this area to make this all work. Mr. Dickinson stated he is not sure; however, the Met Council is going to want them to have at least three units per acre. Mr. Riechers asked if this is where the growth will be coming from that the City has not seen in years. Mr. Dickinson said yes. Mr. Dickinson explained families are getting smaller and the homes in Andover are primarily designed to host larger families. He added they often challenge the Met Council’s population estimates. He noted they do anticipate growth in the coming years. Mr. Riechers asked if it is possible that they would gain more households even if the population does not grow. Mr. Dickinson explained that this is a possibility if families are smaller. Mayor Bukkila noted the City and the Council have moved off of the growth sprint that they were on for 20 years. She shared that they had a strategic planning session earlier this year to discuss where they are today and noted they have shifted to more of a maintenance aspect of what is currently in the City. Mr. Riechers mentioned the 21% growth in the levy over the last few years while the growth in the City has been relatively flat. He stated he is poking at the assumptions that are being made in terms of the investments that are being made. Mayor Bukkila stated some assumptions have been made in the past and some budgets were not as robust as they should have been. She added when they are only reconstructing a mile of roads a year when there are over 200 miles of roads, then they were not doing enough. She noted a lot was pulled back during the recession to try to help taxpayers which caused them to not be able to Regular Andover City Council Meeting Minutes – December 5, 2023 Page 3 keep up with the minimal maintenance that was needed. She stated they have had to work through a lot over the past two years to build this back up. She noted they are sitting at a 6% increase for next year’s levy while there are other cities that are sitting above a 20% increase because they did not react soon enough. She shared that she does not see the levy going down because there is too much to make up for. She added more analysis is needed to see when the levy will level out. Mr. Riechers asked if the contract with the YMCA is a public document. Mr. Dickinson said yes. Mr. Riechers asked if he can get a copy of it. Mr. Dickinson said yes and that he will email Mr. Riechers a copy. Rhonda Ganske, 2159 153rd Lane NW, came forward and asked if 1,000 acres of the rural reserve is going to potentially be developed, how they would anticipate this affecting the Coon Creek Watershed. Mayor Bukkila noted this would be in partnership with the development and with the Coon Creek Watershed. She stated she does not have any anticipation of this at the current time and it is very premature to anticipate when the rural reserve will go in. Ms. Ganske stated $4,500,000 is a lot of money to invest in something next year. Mr. Dickinson noted this cost is for sanitary sewer infrastructure. He explained where the trunk is sitting for sewage to go to is a distance away from the area to develop. He stated this line needs to be constructed before this can develop. He noted anyone coming in to develop this area will have to petition for something that would need a year and a half to two-year head start before development could even begin. He added if the concern is with Coon Creek and relative to drainage, they will need to do an Alternative Urban Area Code Review (AURA) which is a detailed analysis study relative to environmental drainage. Ms. Ganske noted part of Andover’s issue with the Coon Creek is that they are so developed, so if they are developing further, she is concerned with how this could impact the creek. AGENDA APPROVAL City Administrator Dickinson requested the addition of one agenda item: Item #17A – Approve Demolition Quote for 2556 138th Avenue NW Motion by Nelson, Seconded by Barthel, to approve the Agenda as amended. Motion carried unanimously. APPROVAL OF MINUTES November 21, 2023, Regular Meeting Motion by Nelson, Seconded by Barthel, to approve the November 21, 2023, Regular meeting minutes as presented. Motion carried unanimously. Regular Andover City Council Meeting Minutes – December 5, 2023 Page 4 CONSENT ITEMS Item 2 Approve Payment of Claims Item 3 Approve Replacement Rooftop Units at City Hall Item 4 Approve Change Order #1/23-23, Fire Station #2 Parking Lot Reconstruction (See Resolution R100-23) Item 5 Approve Purchase Agreement & Easement/23-13, WM Improvements - Crosstown Blvd. NW (RR Tracks to 158th Ave. NW) - Andover Blvd. NW (Vale St. NW to Prairie Rd. NW) - Prairie Rd. NW (Andover Blvd. NW to 157th Ave. NW) & 23-12A, Crosstown Blvd. NW Trail - Xeon St. NW to Prairie Rd. NW Item 6 Approve Green Acres Assessment Deferral Request for C.P. 21-39 (See Resolution R101- 23) Item 7 Approve Variance Resolution and Findings of Fact for 2274 164th Avenue NW (See Resolution R097-23) Item 8 Approve Encroachment Agreement for Monument Sign at 151st Ln NW/Prairie Road Item 9 Approve City Administrator Review Item 10 Approve 2024 Massage Therapy Licenses Item 11 Approve 2024 Used Vehicle Sales Business Licenses Item 12 Approve 2024 Cannabinoid License Item 13 Approve 2024 Tobacco Licenses Item 14 Approve 2024 Liquor Licenses Item 15 Approve 2024 Kennel Licenses Item 16 Approve Application for Exempt Permit Item 17 Approve Assessment Deferment Request for Disabled Individual/23-17, 2023 Full Depth Reclamation (See Resolution R102-23) Item 17A Approve Demolition Quote for 2556 138th Ave NW Motion by Nelson, Seconded by Barthel, to approve of the Consent Agenda as read. Motion carried unanimously. PUBLIC HEARING - 2024 PROPERTY TAX LEVY AND 2024 BUDGET The City Council was requested to review the Staff report, receive a presentation, open a public hearing, and discuss and approve the resolution adopting the 2024 proposed City budget and levy. Mr. Dickinson reviewed the 2024 proposed property tax levy and budget information with the Council and shared the request for a public hearing. He added Anoka County has sent out market value and property tax statements a few weeks ago. He noted they have received a number of calls concerning the property taxes and they have discussed things with all of those individuals relative to their properties. He shared that the total proposed property tax levy is $18,097,274. He noted 64.83% will go towards operations, 21.5% will go towards the debt service levies, and 13.67% will go towards capital related items. He stated this will increase the current tax rate by 3.99%. He added the gross levy increased by 6%. He reviewed the City’s budget process. He discussed City revenues and expenses. Regular Andover City Council Meeting Minutes – December 5, 2023 Page 5 Motion by Nelson, Seconded by Engelhardt, to open the public hearing at 7:40 p.m. Motion carried unanimously. Rhonda Ganske, 2159 153rd Lane NW, came forward and asked for an explanation for why revenues from property taxes only went up 8.4% last year when market values increased a total of 23%. Mr. Dickinson explained they held the line on expenses and did not chase the market value increase like most communities may have done. He added they decided to reduce their tax rate significantly by about 14%. Ms. Ganske asked about the tax rate increase that was approved on September 5, 2023 at 2.17% but is now proposed at 3.99%. She asked if this would affect the property tax bills and if it will be higher than what was received from the County. Mr. Dickinson stated what was received from the County is the highest the tax bill could be. He noted the property tax bill could get better as the County is going to be reducing their tax levy percentage increase. He explained how they get from the preliminary tax rate to the final tax rate, including firming up taxable market values. Motion by Barthel, Seconded by Nelson, to close the public hearing at 7:44 p.m. Motion carried unanimously. Motion by Barthel, Seconded by Engelhardt, to adopt Resolution No. R104-23, adopting the City of Andover 2024 Budget and 2024 Property Tax Levy to be certified to the County Auditor. Motion carried unanimously. Mayor Bukkila thanked Staff for their hard work and preparation of this budget. She shared her appreciation for Staff being conservative with city dollars. Mr. Dickinson thanked the Finance Department for all of their work on this, as well as all of the department heads who work together for the good of the City. REVIEW/ADOPT 2024 DEBT SERVICE LEVY CHANGES The City Council is requested to approve the resolution that would update the certified bonded indebtedness levies for 2024. Mr. Dickinson reviewed the information with the Council concerning the 2024 Debt Service Levy changes. Motion by Nelson, Seconded by Barthel, to adopt Resolution No. R105-23, updating the certified bonded indebtedness for 2024. Motion carried unanimously. PUBLIC HEARING - CONSIDER VACATION OF EASEMENT - 2393 135TH AVE. NW; PID#34-32-24-33-0014 - JASON PEACHEY (APPLICANT) The City Council is requested to hold a public hearing and make a decision on the vacation of Regular Andover City Council Meeting Minutes – December 5, 2023 Page 6 easement request. Associate Planner Griffiths reviewed the information with the Council in regard to the vacation easement request for a drainage and utility easement. Motion by Nelson, Seconded by Barthel, to open the public hearing at 7:50 p.m. Motion carried unanimously. No one came forward to address the Council. Motion by Barthel, Seconded by Nelson, to close the public hearing at 7:51 p.m. Motion carried unanimously. Motion by Nelson, Seconded by Barthel, to adopt Resolution No. R103-23, granting the vacation of a drainage and utility easement at 2393 135th Lane NW; PID #34-32-24-33-0014. Motion carried unanimously. ADMINISTRATOR’S REPORT City Staff updated the Council on the administration and city department activities, legislative updates, updates on development/CIP projects, and meeting reminders/community events. (Administrative Staff Report) Mr. Dickinson reviewed the Administrative Staff report. He shared that they have been working on finalizing the levy and budget. He stated they are at 62 new homes this year. (Public Works/Engineering Department Report) Mr. Dickinson shared that the Engineering Department is very busy with neighborhood meetings for next year’s road projects. He added this Thursday there will be an open house for Nightingale Street and Crosstown Boulevard, and Nightingale Street and Veterans Memorial Boulevard roundabouts at City Hall between 5:00 p.m. and 7:00 p.m. Mr. Dickinson added that the Tree Lighting Ceremony will be held on Friday, December 8th in front of the Community Center. MAYOR/COUNCIL INPUT Councilmember Nelson thanked the City for the signage on Crosstown Boulevard for the upcoming meeting about the roundabouts. He added people who live in this area have also received postcards concerning the meeting. He noted it is fantastic to get the community together to communicate about these roundabouts. Mayor Bukkila noted these roundabouts are one of the few mechanisms that they can use to slow down driving speeds for public safety as cities cannot choose their own speed limits. Regular Andover City Council Meeting Minutes – December 5, 2023 Page 7 Mayor Bukkila added that Toys for Joy will be held at Fire Station #3 on Saturday, December 9th from 5:00 p.m. to 7:00 p.m. Councilmember Nelson reminded residents to bring a non-perishable food item to the Tree Lighting for the local food shelf. He added there are a lot of exciting ideas that they can talk about for the Tree Lighting in future years. Mayor Bukkila emphasized that the Tree Lighting event is for the community and how it can come together for fun. She noted this is the first year for this event so they are kicking things off the best they can. She thanked the Andover Lions for volunteering to assist City Staff with putting on this event. ADJOURNMENT Motion by Barthel, Seconded by Nelson, to adjourn. Motion carried unanimously. The meeting adjourned at 8:01 p.m. Respectfully submitted, Ava Rokosz, Recording Secretary Regular Andover City Council Meeting Minutes – December 5, 2023 Page 8 REGULAR ANDOVER CITY COUNCIL MEETING MINUTES – DECEMBER 5, 2023 TABLE OF CONTENTS PLEDGE OF ALLEGIANCE .................................................................................................... 1 RESIDENT FORUM ..................................................................................................................1 AGENDA APPROVAL ............................................................................................................. 3 APPROVAL OF MINUTES ...................................................................................................... 3 CONSENT ITEMS .....................................................................................................................4 Item 2 Approve Payment of Claims ...........................................................................................4 Item 3 Approve Replacement Rooftop Units at City Hall ......................................................... 4 Item 4 Approve Change Order #1/23-23, Fire Station #2 Parking Lot Reconstruction (R100- 23) ...............................................................................................................................................4 Item 5 Approve Purchase Agreement & Easement/23-13, WM Improvements - Crosstown Blvd. NW (RR Tracks to 158th Ave. NW) - Andover Blvd. NW (Vale St. NW to Prairie Rd. NW) - Prairie Rd. NW (Andover Blvd. NW to 157th Ave. NW) & 23-12A, Crosstown Blvd. NW Trail - Xeon St. NW to Prairie Rd. NW ............................................................................. 4 Item 6 Approve Green Acres Assessment Deferral Request for C.P. 21-39 (R101-23) ............4 Item 7 Approve Variance Resolution and Findings of Fact for 2274 164th Avenue NW (R097- 23) ...............................................................................................................................................4 Item 8 Approve Encroachment Agreement for Monument Sign at 151st Ln NW/Prairie Road 4 Item 9 Approve City Administrator Review .............................................................................. 4 Item 10 Approve 2024 Massage Therapy Licenses ................................................................... 4 Item 11 Approve 2024 Used Vehicle Sales Business Licenses ................................................. 4 Item 12 Approve 2024 Cannabinoid License .............................................................................4 Item 13 Approve 2024 Tobacco Licenses ..................................................................................4 Item 14 Approve 2024 Liquor Licenses .....................................................................................4 Item 15 Approve 2024 Kennel Licenses .................................................................................... 4 Item 16 Approve Application for Exempt Permit ......................................................................4 Item 17 Approve Assessment Deferment Request for Disabled Individual/23-17, 2023 Full Depth Reclamation (R102-23) ................................................................................................... 4 Item 17a Approve Demolition Quote for 2556 138th Avenue NW ............................................4 PUBLIC HEARING - 2024 PROPERTY TAX LEVY AND 2024 BUDGET (R104-23) ........4 REVIEW/ADOPT 2024 DEBT SERVICE LEVY CHANGES (R105-23) ............................... 5 PUBLIC HEARING - CONSIDER VACATION OF EASEMENT - 2393 135TH AVE NW; PID#34-32-24-33-0014 - JASON PEACHEY (APPLICANT) (R103-23) ................................ 5 ADMINISTRATOR’S REPORT ............................................................................................... 6 MAYOR/COUNCIL INPUT ......................................................................................................6 ADJOURNMENT ...................................................................................................................... 7