Anoka City Council

January 7, 2019 (Regular) Page 1 of 10 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS JANUARY 7, 2019 1. CALL TO ORDER Mayor Rice called the meeting to order at 7:08 p.m., followed by the Pledge of Allegiance. OATHS OF OFFICE City Manager Greg Lee issued Oaths of Office to Mayor Rice and Councilmembers Wesp, Barnett, and Skogquist. Mayor Rice welcomed former Mayor Bjorn Skogquist and Councilmember Carl Anderson and a round of applause was offered by the audience. 2. ROLL CALL Present at roll call: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist and Wesp. Staff present: City Manager Greg Lee; Police Chief Eric Peterson; Community Development Director Doug Borglund; Engineering Technician Ben Nelson; Housing and Redevelopment Authority Manager Darin Berger; Public Services Administrator Lisa LaCasse; Public Services Director Mark Anderson; and City Attorney Scott Baumgartner. Absent at roll call: None. 3. COUNCIL MINUTES 3.1 Minutes of the November 29, Closed Executive Session, December 10, 2018, Special Meeting, December 17, 2018, Worksession and December 17, 2018, Regular Meeting. Councilmember Skogquist noted a minor correction needed to Page 16 of the December 17 minutes, changing Lincoln Street to Lincoln School. Motion by Councilmember Freeburg, seconded by Councilmember Wesp, to waive the reading and approve the November 29, Closed Executive Session, December 10, 2018, Special Meeting, December 17, 2018, Worksession and December 17, 2018, Regular Meeting minutes as corrected. Vote taken. All ayes. Motion carried. 4. OPEN FORUM January 7, 2019 (Regular) Page 2 of 10 4.1 Anoka Winterfest. Public Services Administrator Lisa LaCasse shared highlighted the various activities offered at this year’s Anoka Winterfest, which will take place at George Enloe Park on Friday, January 25 and at Green Haven Golf Course & Event Center on Saturday, January 26. She shared event details and a list of marketing efforts and photos from the 2018 event, noting while many free activities will be offered, they will also be collecting monetary and non-perishable food shelf donations for ACBC Food Shelf on both dates. Ms. LaCasse thanked the many individual volunteers and event sponsors for partnering in this event. Councilmember Barnett thanked everyone for their support of this good, family- friendly event. 4.2 Police Activity Update. Police Chief Eric Peterson shared how New Year’s Eve activities resulted in no significant issues for police then updated the Council regarding body-worn cameras process. He said staff has completed the testing process and will be providing a detailed overview of policies and procedures for cameras in an upcoming public meeting as required by law. Chief Peterson recognized the hard work by the City’s Community Services Officers and how they have established a strong working relationship with local human societies in locating lost pets and reuniting them with their owners and how their work has resulted in many donations. He concluded that the next Council meeting will include an introduction of a young man from Georgia known as the Donut Man who is working to thank all officers in the country and to date has visited 40 states and distributed 70,000 donuts. He said thanks to this young man’s work they will be able to present K-9 Bravo with a protective vest as part of the donations. Carl Anderson, former Councilmember, thanked the Council for their work and congratulated the incoming Councilmembers. 5. PUBLIC HEARING(S) None. 6. CONSENT AGENDA Motion by Councilmember Barnett, seconded by Councilmember Skogquist, to approve Consent Agenda 6.1 through 6.3. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. January 7, 2019 (Regular) Page 3 of 10 6.3 Approve Issuance of a Sale of Used Motor Vehicles License for Wheelz N’ Motion, LLC, 322 East River Road. Vote taken. All ayes. Motion carried. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 7.1 Planning Items: 7.1.A. RES/Approving a Variance, Conditional Use Permit, and Site Plan; Lock Up Storage Facility, 11th Avenue and North Street. RESOLUTIONS Community Development Director Doug Borglund shared a staff report with background information to the Council stating BRB Development, LLC, submitted an application requesting a Conditional Use Permit, Variance, and Site Plan Review to construct a 4-story, 103,960-square foot building on a 25,990-square foot footprint. The proposed facility is an indoor self-service storage facility. The two-acre site is located at the northeast corner of 11th Avenue and North Street. The subject property is zoned B-1 Highway Business. The Planning Commission reviewed the application and held a public hearing on December 3, 2018. Mr. Borglund shared the planning narrative submitted by the architect, survey of the existing site, site plan and civil plan set, and architectural plan set including architectural elevations, noting the Planning Commission recommended approval of the requests with conditions. Councilmember Freeburg asked if the property has already closed and commented on how this will be a nice project for the City. Mr. Borglund said the property will close contingent upon City approval. Motion by Councilmember Freeburg, seconded by Councilmember Barnett, to adopt a resolution approving a Conditional Use Permit and site plan and a resolution adopting a variance for 11th Avenue and North Street. Councilmember Skogquist asked questions about the site, stating he always believed it would be a good park area as it was adjacent to a wetland but said as long as a substantial buffer was done the applicant has done as good a job as possible and thanked them for the native plantings to provide a good buffer. Councilmember Barnett said she was concerned about the neighborhood and she was pleased the development was planned to look like an organic, three-story building with down-lit lighting, trees and buffer along with January 7, 2019 (Regular) Page 4 of 10 interior dumpster and inquired if security cameras would be accessible. Rick Hilster, BRB Development, said they intend to have 24-hour monitored cameras inside and out. City Attorney Scott Baumgartner suggested approval be contingent upon closing of the property with BRB Development. Councilmembers Freeburg and Barnett agreed to the friendly amendment. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist and Wesp voted in favor. Motion carried. Mayor Rice thanked the applicant for investing in Anoka. 8. PETITIONS, REQUESTS AND COMMUNICATION None. 9. ORDINANCES AND RESOLUTIONS 9.1 RES/Annual Finance Related Designations. RESOLUTION Mr. Lee shared a staff report with background information to the Council stating that annually the City Council adopts a resolution designating the official depositories and signees, noting there were no changes from 2018. Motion by Councilmember Wesp, seconded by Councilmember Skogquist, to adopt a resolution of designation of official depositories and signees. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist and Wesp voted in favor. Motion carried. 9.2 RES/Annual Designations and Appointments to Various Committees. RESOLUTION Mr. Lee shared a staff report with background information to the Council stating Anoka City Council Bylaws and Charter require that at the first meeting in January, the Anoka City Council shall: (1) Choose a Mayor Pro Tem from the Council who shall perform the duties of the Mayor during the disability or absence of the Mayor from the City, or in the case of a vacancy in the office of Mayor, until a successor has been appointed and qualified; and (2) designate the official newspaper, (3) designate official posting location, (4) designate date/time of regular meetings and worksessions, (5) appoint such officers, employees, and committees, and citizens to various boards and organizations as may be necessary. January 7, 2019 (Regular) Page 5 of 10 He shared that historically the City has designated the Acting Mayor on a rotating schedule and for 2019 the appointment should be Councilmember Freeburg. The City received only one proposal for designation of the Official Newspaper, which came from ECM Publishers/Anoka County Union. Councilmember Skogquist inquired about the City Engineering designation and the process of workflow with staff. Mr. Lee said staff has worked closely with Hakanson Anderson for many years with the goal of Engineering Technician Ben Nelson being named City Engineer once he receives his professional licensing. He added that even though the City designates one engineering firm they utilize a pool of engineering firms in addition to utilizing his professional engineering license. Motion by Councilmember Barnett, seconded by Councilmember Freeburg, to adopt a resolution of annual designations and appointments for 2019. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist and Wesp voted in favor. Motion carried. 9.3 RES/Accepting Bids for Demolition of Multiple Properties in the Highland Park Neighborhood. RESOLUTION Housing Manager Darin Berger shared a staff report with background information to the Council stating the City has acquired several properties in the Highland Park neighborhood. The Council has currently approved the sale of eight (8) of eighteen (18) homes to Otting House Movers, LLC. The ground floor of those homes will be moved to various locations outside the City of Anoka. The basements and foundations of those homes will be left behind and the City will complete the demolition and fill of those sites. In addition to the eight (8) basements/foundations, a full demolition of ten (10) homes will also take place. Mr. Berger said two bids were received and recommended accepting the bid from Sauter & Sons, Inc., in the amount of $213,466.00. Councilmember Barnett inquired when work would start. Mr. Berger said a 10- day notice was required to the Minnesota Pollution Control Agency if approved and that movers would begin later this week and coordinate schedules so exposed basements were not present too long, adding the work will likely go into February. Councilmember Skogquist asked if the staff estimate for demolition was within range. Mr. Berger said the bid was slightly higher than anticipated based on staff’s estimate of $10,000 per home but added the bid was significantly lower than the next lowest bid. January 7, 2019 (Regular) Page 6 of 10 Councilmember Wesp commented on the persistence of former Councilmember Weaver to get these homes relocated which resulted in saving much more than what we are paying for demolition of basements. Motion by Councilmember Wesp, seconded by Councilmember Barnett, to adopt a resolution accepting bid for demolition of multiple properties in Highland Park neighborhood to Sauter & Sons, Inc., in the amount of $213,466.00. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist and Wesp voted in favor. Motion carried. 10. UNFINISHED BUSINESS None. 11. NEW BUSINESS 11.1 Recommended Denial of Renewal of License for the Sale of Tobacco and Tobacco Related Products; Super Smokedale Tobacco, Inc., 201 Jackson Street, Suite 101. Mr. Lee shared a staff report with background information to the Council stating on October 4, 2018 the City sent Super Smokedale Tobacco, Inc., an application packet to renew their license with the City for 2019. The letter indicated that the deadline for submittal of the application was December 1, 2018. The application was not submitted by the deadline date. On December 13, 2018 the application was submitted to the City and staff began the application review process. In the application, the applicant indicated that they had been denied a license in October 31. 2018 by the City of Oakdale. Upon review the City of Anoka has multiple concerns related to the renewal of Super Smokedale’s City license. The individual listed in the application has been charged with multiple counts of tax evasion and alleged failure to pay $918,362 in sales tax. There has also been conduct at the business premise here in Anoka that is of concern to the City of Anoka and which is currently under investigation by the Anoka Police Department. On December 21, 2018 a letter was sent to the applicant advising him that staff would be presenting information to the City Council at the January 7, 2019 meeting, suggesting the Council consider denying the renewal of the license. In the best interests of the City of Anoka and for the safety and welfare of our citizens, staff is recommending that the City Council deny the renewal of this license. Terry Watkins, attorney representing Super Smokedale, responded to reasons for the license denial in Oakdale and representation of failure to pay taxes and explained how the amount was far less than shown and how the applicant had not been convicted and expected charges would be dismissed at a hearing in 10 days. He acknowledged the applicant does owe some money but how it was due to January 7, 2019 (Regular) Page 7 of 10 errors in operating 4-5 locations and not to a criminal level and how the City should not rush to judgement. He commented on the police reports from November regarding disorderly conduct that occurred by the same employee and how the applicant has been very successful and was committed to operating his business properly and was working on training programs for all employees regarding respect and tobacco compliance. Mr. Watkins said the applicant understood that he did not respond in a timely manner to the City as he had a number of outstanding issues including bank accounts being frozen and respectfully requested postponement of license denial to allow him time to provide a detailed response to the City’s concerns. He noted how the business was a legal entity and how tobacco sales was an allowed use and that Super Smokedale was a part of the local economy. Councilmember Wesp referred to the proposed action and noted the City of Oakdale was active regarding evidence and warrants and asked if Chief Peterson had been involved in these actions as well. Chief Peterson said there had been some policy activity at the store last year and said he was aware of the disorderly behavior, criminal sexual conduct charges, and IRS charges. Mr. Baumgartner said staff understood the allegations and referred to the 42 counts of felony charges including criminal sexual conduct well. He shared how the Council has an obligation for the health, safety, and welfare of the community and while these are currently allegations, they have an impact on operating a business in the community and how the alternative could allow more of this to possibly occur. He referred to unreported sales tax revealed in the search warrant in Anoka that totaled $34,890 in taxable sales which is troublesome and said that he cannot recommend renewal at this time. Councilmember Wesp agreed these businesses are an important part of the City and should not be excluded if allowed but said other tobacco stores are licensed in the City and renewed administratively if the applicants abide by City ordinances and if staff was not recommending renewal, he would support a resolution of denial. Motion by Councilmember Wesp, seconded by Councilmember Freeburg, to direct staff to bring forward a resolution of denial for a tobacco and tobacco products license for Super Smokedale Tobacco, Inc., 201 Jackson Street, Suite 101. Councilmember Barnett asked if the applicant was exonerated and all charges dropped would he be eligible to apply again. Mr. Baumgartner confirmed if that was the case the applicant would be eligible to apply again. Mr. Watkins referred to probable cause action regarding other charges and requested the ability to submit a copy of findings and evidence for Council review January 7, 2019 (Regular) Page 8 of 10 prior to adopting the upcoming resolution, adding he believed there will be dismissal or acquittal. Mr. Baumgartner clarified there would be an omnibus hearing on January 16 and likely a contested hearing after that as well as a motion to release funds and if Mr. Watkins wanted to submit information for review that would be fine but the order of the court actions in this case been a motion to release funds and would be part of the public record. He referred to a denied motion to release funds with the exception of some to provide payment for legal fees and how the Judge found sufficient probable cause to not release all funds, adding the criminal sexual conduct case from December would not be heard until March. Mr. Watkins said the Minnesota Department of Revenue had filed a restitution complaint and allowed funds to be provided for restitution but that it did not reach the level that would cite criminal charges so the Judge would hear the issue again at the time of probable cause action. Councilmember Skogquist referred to a letter from Chief Peterson regarding ordinance violations for sale of drug paraphernalia at this location and asked how long the ordinance had been in effect. Chief Peterson said the ordinance has been in effect for the past two years and noted that all licensed locations, including Super Smokedale, had been in compliance at one time so the location was aware of the ordinance. Mayor Rice explained the drug paraphernalia brought in a fair amount of revenue and how the ordinance had a large effect on some license holders when they were required to remove it from their shelves so it was unlikely that they were unaware of the ordinance. He noted if the Council were to postpone action on license denial the applicant still did not have a current license to sell tobacco or tobacco products. Vote taken. All ayes. Motion carried. 11.2 Consideration of Appointments to the Economic Development Commission. Mr. Lee shared a staff report with background information to the Council stating there are currently three vacancies on the Economic Development Commission (EDC) and four applications have been received from Allen Ackland, Lindsey Belanger, Curt Rekstad, and Julia Schmidt. Residency is not required to serve on the EDC, however members must be those, who in the judgement of the City Council, are representative of the community and are qualified by training, experience and interest useful for the fulfillment of the Commission’s responsibility in economic development. When making the appointments, the City Council will need to designate which term the individual is to serve on. January 7, 2019 (Regular) Page 9 of 10 Allen Ackland shared how he enjoyed working with the City Council and now that he has retired has more time available to serve. He shared his background in banking, insurance, and land development and said he looked forward to serving the City. Lindsey Belanger shared how she has lived in Anoka for a few years and had 20 years of experience in corporate banking and wanted to give back more to the community. She said she was a small business owner and has helped the Anoka Area Chamber with events which has motivated her to want to do more. After completion of ballots, Motion by Councilmember Freeburg, seconded by Councilmember Barnett, to appoint Allen Ackland for the full term, Curt Reckstad for the first partial term, and Julia Schmit for second partial term to the Economic Development Commission. Vote taken. All ayes. Motion carried. Mr. Lee referred to other Commission vacancies on the Charter, Human Rights, and Parking Advisory Board. Councilmember Skogquist thanked everyone for applying and encouraged anyone to volunteer in the meantime and apply again in the future. 11.3 Consideration of Appointment to Waste Reduction and Recycling Board. Mr. Lee shared a staff report with background information to the Council stating there currently exists one full term vacancy on the Waste Reduction and Recycling Board (WRRB) for a two-year term and that staff received one application from Eileen Rathbun. Residency is a requirement to serve on the WRRB. Sue Durgantz, resident since 1973, said she was encouraged to complete an application but had not turned in until last Friday. Mr. Lee said the application was received but was not included prior to packet distribution but that it would be kept on file for future appointments. Motion by Councilmember Freeburg, seconded by Councilmember Skogquist, to appoint Eileen Rathbun to the Waste Reduction and Recycling Board. Mayor Rice encouraged Ms. Durgantz to become involved as a volunteer and apply again in the future. Vote taken. All ayes. Motion carried. 11.4 Recommendation on Appointment to Charter Commission. January 7, 2019 (Regular) Page 10 of 10 Mr. Lee shared a staff report with background information to the Council stating there are currently three vacancies on the Charter Commission and the City had received one application from Virginia Louden and that staff recommended Council recommend appointment of Ms. Louden to the 10th Judicial District for appointment for a full term of four years. Motion by Councilmember Freeburg, seconded by Councilmember Skogquist, to recommend appointment of Virginia Louden to the 10th Judicial District for the Charter Commission term that expires December 31, 2023. Vote taken. All ayes. Motion carried. 12. UPDATES AND REPORTS 12.1 Tentative Agenda(s). The Council reviewed the tentative agendas of the upcoming Council meetings. 12.2 Staff and Council Input. Mr. Lee noted Council photos will be conducted after the meeting. Councilmember Wesp inquired about ice rink status. Public Services Director Mark Anderson said there currently is no ice on the rinks due to the weather but hoped it would turn cold enough to have ice in time for Winterfest. Councilmember Skogquist referred to the upcoming joint meeting with the Planning Commission in January and asked if there would be sufficient time to review the Comprehensive Plan regarding areas zoned lower density. 13. ADJOURNMENT Councilmember Freeburg, made a motion to adjourn the Regular Council meeting. Councilmember Barnett seconded the motion. Vote taken. All ayes. Motion carried. Time of adjournment: 8:32 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk