Anoka City Council

March 18, 2019 (Regular) Page 1 of 16 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS MARCH 18, 2019 1. CALL TO ORDER Mayor Rice called the meeting to order at 7:00 p.m., followed by the Pledge of Allegiance. 2. ROLL CALL Present at roll call: Mayor Rice, Councilmembers Freeburg, Skogquist, Wesp. Staff present: City Manager Greg Lee; Police Chief Eric Peterson; Community Development Director Doug Borglund; Associate Planner Clark Palmer; Public Services Director Mark Anderson; Housing Manager Darin Berger; Engineering Technician Ben Nelson; Finance Director Brenda Smith; and City Attorney Scott Baumgartner. Absent at roll call: Councilmember Barnett. 3. COUNCIL MINUTES 3.1 Minutes of the January 28, 2019, Worksession. Minutes of the February 25, 2019, Worksession. Minutes of the March 4, 2019, Regular Meeting. Councilmember Wesp inquired as to why the January 28 worksession minutes were submitted later than normal. City Manager Greg Lee said it was possible that the set was submitted in conjunction with other sets for efficiency reasons. Motion by Councilmember Wesp, seconded by Councilmember Skogquist, to waive the reading and approve the January 28, February 25, 2019 Worksessions and March 4, 2019, Regular Meeting minutes as presented. Vote taken. All ayes. Motion carried. 4. OPEN FORUM 4.1 Police Activity Update. Police Chief Eric Peterson reported on recent K-9 activity and how K-9 Bravo identified 368 grams of methamphetamine that resulted in the arrest of a suspect. He shared how the officers involved received an award for the narcotics case for the quarter and congratulated them all for their work. He updated the Council on activity from the recent St. Patrick’s Day celebration and said while they staffed March 18, 2019 (Regular) Page 2 of 16 additional patrol officers, they were pleased to report that no disorderly behavior occurred due to the increased crowds. Chief Peterson commented on the City’s participation in the Towards Zero Death initiative and the work to enforce DUIs then shared information on spring flood preparedness and how they were working on monitoring conditions but thought that the City would not be affected by increased water levels in the rivers. Councilmember Skogquist asked if having St. Patrick’s Day on Sunday helped with the crowd control downtown. Chief Peterson noted the main celebration occurred on Saturday evening with a pub crawl. Ed Evans, 1186 Benton Street, commented on past flooding events and asked how the terms of elevations and feet were different then shared comments on how pleased he was on how monitoring river levels have changed. Chief Peterson answered questions as to why the National Weather Service changed their reporting standards and shared websites that would assist residents in monitoring river levels. 5. PUBLIC HEARING(S) None. 6. CONSENT AGENDA Motion by Councilmember Skogquist, seconded by Councilmember Freeburg, to approve Consent Agenda 6.1 through 6.4. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. 6.3 Issuance of Tree Care/Arborist License; J&C Tree Services, LLC. 6.4 Issuance of 3.2 Malt Liquor License; Vikroh Resources, LLC, dba; Super America, 750 W. Main Street. Vote taken. All ayes. Motion carried. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS None. 8. PETITIONS, REQUESTS AND COMMUNICATION None. 9. ORDINANCES AND RESOLUTIONS March 18, 2019 (Regular) Page 3 of 16 9.1 RES/Accepting Bid for Demolition of Properties at 2928 Euclid Avenue, 2929 Fairoak Avenue and 2616 4th Avenue. RESOLUTION Housing Manager Darin Berger shared a staff report with background information to the Council stating the City has continued acquiring properties in the Highland Park neighborhood, most recently, 2928 Euclid Avenue and 2929 Fairoak Avenue. In addition to those properties, the property at 2616 4th Avenue was also purchased by the City of Anoka and included in this bid packet that included demolition, removal and disposal of all buildings, materials, foundations, driveways (clean saw cut at sidewalk) and other hard surfaces and other materials, as required, and leveling and finishing of the site, loading, transport, and placing backfill and grass seed on the Site to replace footings, basement area, and slab foundation, as necessary, a slope of 3:1 or flatter should be used where possible, disturbed areas covered with 4 inches of topsoil prior to seeding, all disturbed areas seeded and covered with erosion control blanket (MnDOT 3885 Category 4 Erosion Control Blanket), anchor the blanket in a trench at the top of the slope, and place erosion control logs (MnDOT 3897.2.D – Wood Chip) between the excavation and public roadways, where needed. Mr. Berger shared the bids and said staff recommended award to Sauter & Sons, Inc. in the amount of $43,000.00. Motion by Councilmember Skogquist, seconded by Councilmember Wesp, to adopt a resolution accepting bid for demolition of properties at 2928 Euclid Avenue, 2929 Fairoak Avenue, and 2616 4th Avenue to Sauter & Sons, Inc. in the amount of $43,000.00. Upon a roll call vote: Mayor Rice, Councilmembers Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.2 RES/Interim Use Permit; 440 Pierce Street. RESOLUTION Associate Planner Clark Palmer shared a staff report with background information to the Council stating the property at 440 Pierce Street is the location of the Anoka Community Mission, a 501c3 non-profit organization. The organization would like to erect a shed on the property for storage of donated items. The property is currently zoned Transit Oriented Development (TOD) and does not allow for the placement or construction of sheds. An Interim Use Permit, if approved, will allow for the construction and temporary use of the shed. The location of the proposed shed is an area of the parking lot in front of the principal building and the proposed shed is 12 ft. by 16 ft. (192 SF) with a height of approximately 11.5 ft. to the peak. The siding material will consist of LP Smart Siding with cedar texture. March 18, 2019 (Regular) Page 4 of 16 Mr. Palmer said the Planning Commission reviewed the application and held a public hearing on March 5, 2019 with no comments or concerns received from the public. The Planning Commission recommended approval subject to the following condition that the Interim Use Permit shall automatically terminate at the time the property either sells, changes use, or is redeveloped. Councilmember Wesp confirmed action on the property would not continue into perpetuity and if the use was changed the shed would be removed. Councilmember Freeburg asked what items would be stored in the shed. Mr. Palmer said the shed would be used for storage of donated items. Councilmember Freeburg thanked Anoka Community Mission for their outstanding work in the community and said many have been blessed by their work. He said he felt a shed would not interfere with future redevelopment of the transit station area and should be approved. Motion by Councilmember Freeburg, seconded by Councilmember Skogquist, to adopt a resolution approving an interim use permit, 440 Pierce Street. Councilmember Skogquist said he toured the site earlier and asked the director to share more information about their operation. Jason Berry, Executive Director of Anoka Community Mission, shared their background and explained how they receive donated items both for direct use and to raise revenue that would support their mission work. He said some items can be sold such as textiles for program funding and said the shed would be used for temporary storage prior to pick-up. He commented on the donated shed and materials and how they plan to use the shed, adding it could possibly be expanded in the future to help more families. Mr. Berry explained how the sale of materials would be used to power freezers donated from Aldi’s and thanked the Police Department for their work on the recent diaper donation drive. Councilmember Wesp he hopes that the Mission will be cognizant of not storing stoves and refrigerators. Mr. Berry stated that he is talking about appliances new and in boxes, such as coffee makers, baby food processors, toaster ovens, etc. Upon a roll call vote: Mayor Rice, Councilmembers Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.3 RES/Conditional Use Permit; 220 Madison Street and Conditional Use Permit; 226 Madison Street. RESOLUTION March 18, 2019 (Regular) Page 5 of 16 Mr. Palmer shared a staff report with background information to the Council stating the applicant, New Design Properties, LLC has applied for two Conditional Use Permits (CUPs) for the properties located at 220/226 Madison Street. The subject properties are two undeveloped residential lots that were platted as part of the BT Addition plat approved last year. The applicant seeks to develop the lots with two single-family homes utilizing, in part, an existing duplex proposed to be moved onto the properties, split into two dwellings and placed on new foundations. Additions will also be added to the placed building sections, garages reattached, and renovations completed as part of the proposed construction. The building proposed to be moved is an existing side-by-side duplex with attached garages currently located in Lakeville, MN. The building is proposed to be moved by the company Otting House Movers in three sections (one dwelling, two garages) and in order to move the building onto the properties, issuance of a Moving Permit is required. Prior to the issuance of a Moving Permit, City Code requires that a CUP be issued to the property to which the building will be moved. Since there are two separate lots involved with this application, two separate CUPs need to be approved. Mr. Palmer reviewed in detail elements of the proposed move along with required criteria. He said the Planning Commission reviewed the application and held a public hearing on March 5, 2019, finding that the criteria for approval of the CUPs was met and recommended approval subject to the following condition: 1. All construction shall be in accordance with the submitted site plan, building elevations, and landscaping plan. Any significant deviation from the submitted and approved plans shall require review and approval by the Planning Commission and City Council. Councilmember Freeburg spoke about the proposed slab on grade-type home that was not a split but ranch-style with basement. Councilmember Skogquist asked questions regarding the lot split and reasons for moving the home instead of building. Brian Thompson, applicant, answered questions on why they wanted to construct a multi-family structure but there was a moratorium at the time so they purchased the structure and planned this instead. He noted the basement would be constructed from poured concrete. Councilmember Skogquist asked about the intended use for structures. Mr. Thompson they would likely sell the homes but would consider all options. Councilmember Freeburg asked if there was room for rental units in this area and inquired about the soil borings. Mr. Palmer said he believed there was still an allowance remaining for rental units in this area. Mr. Thompson said they conducted soil borings 7-8 years ago and anticipated finding a lot of concrete onsite. March 18, 2019 (Regular) Page 6 of 16 Councilmember Wesp said this was the first time he was hearing about moving a house onsite and said the home will not match current neighborhood character with a house constructed in 1986 then shared his concern about these becoming rental properties. Mr. Thompson said he had flexibility on appearance of the homes and said he considered increasing the garage size already by an additional four feet as it would be more suitable for the neighborhood. He said he was flexible on building finishes and noted the neighborhood had the lowest police calls in the entire City and said they followed strict rental criteria. Mr. Thompson thanked staff and Council for their work in changing Anoka for the better. Councilmember Wesp asked if the City can require owner-occupied housing only. Mr. Palmer said he just reviewed the map and confirmed that the block is actually at its maximum for rental licenses and that rental property would not be allowed. Councilmember Freeburg said he was confident there was a market for this type of home and would like the project to be successful. Mr. Thompson agreed, stating the site has been an eyesore for a long time and wanted to improve the site for his other buildings as well as his development reputation. Mayor Rice suggested softening the curve of the driveway due to weather. Mr. Thompson said the house would be better than new construction as it was built solidly and would have a poured concrete basement. Attorney Baumgartner stated that Palmer had confirmed that there is no rental properties allowed in that area because it is at rental max. Councilmember Skogquist suggested including a deed restriction that would not allow rental property. City Attorney Scott Baumgartner said that could not be done because the Planning Commission reviewed the criteria and set conditions on the CUP and that the applicant has met all of the conditions. Mayor Rice reiterated that the block is currently at rental maximum and that it cannot be rental unless another rental property on the block ceases to be rental, then they could apply for a rental license. Councilmember Skogquist stated that he has concerns that at some point this property could become rental property. He said there was a lot of variety in these neighborhoods and said the area was remnant with standards of 7,500 square feet and not wide enough for the type of product that the City would like to see at this location. He said there were no other modular homes in the City and commented on the 2x4 walls as not the best fit for this neighborhood as well as the repetitive streetscape. He said he felt this would be a lower grade home and not the best fit for the neighborhood. Skogquist reiterated that he does not feel the project conforms to the area or requirements and does not support a CUP being issued for it. March 18, 2019 (Regular) Page 7 of 16 Councilmember Wesp commented on the lot sizes and said he would like a commitment that no rental properties would occur. Mr. Palmer said the proposed lots were 8,533 square feet and were not substandard. Mr. Thompson said he could commit to ensuring the properties remained single family. Motion by Councilmember Freeburg, seconded by Councilmember Wesp, to adopt a resolution approving a Conditional Use Permit for 220 Madison Street subject to the home not being rental property. Mayor Rice stated that reference to the rental would be redundant because right now there are no rental licenses available on this block. Mr. Baumgartner clarified there were two resolutions for two locations and that this motion would be for the address at 220 Madison Street. Councilmember Skogquist said the property could be rental if a license became available. Mayor Rice said that was possible but noted there currently were no rental licenses available. Mr. Palmer said there was a mix of attached and detached homes on this block and that even if properties were sold, he would be uncomfortable with the CUP conditions of no rental without a clarification of impact. Councilmember Wesp asked how we would separate the homes. Mr. Thompson explained the process to move the homes separately and then moved onsite. Barb Thurston, 1815 3rd Avenue, shared concerns of the upper portion of the building being 850 square feet visible from the street and how the homes would be dwarfed and out of place. She confirmed the homes would be brought up to code with 2x6 versus 2x4 construction then shared concerns of the walls and potential retaining wall during onsite construction. Mr. Palmer confirmed the homes would be built to code when constructed and that alterations would meet City code once moved and explained additional depth in the basement would be required to address wall separation concerns. Ms. Thurston said while she liked the cottage-style homes she did not believe they fit the neighborhood or historic nature of surrounding buildings. Upon a roll call vote: Mayor Rice, Councilmembers Freeburg, and Wesp voted in favor. Councilmember Skogquist voted nay. Motion carried. Motion by Councilmember Freeburg, seconded by Councilmember Wesp, to adopt a resolution approving a Conditional Use Permit for 226 Madison Street, subject to the home not being rental property (see notes above on 220 Madison approval for parameters of rental restrictions). March 18, 2019 (Regular) Page 8 of 16 Councilmember Skogquist said this was a perfect example for the Planning Commission and Historical Preservation Commission to create building standards with minimum building size and general building characteristics. He said the real estate market was increasing and that people want to be in Anoka and that the City should work to complement what is here and not accept everything brought forward. Councilmember Wesp said sometimes we have to adapt to what is brought forward because of unique lot size but stressed he did not want to see rental property at this site. Mayor Rice agreed some neighborhoods could be identified with more specific standards because we are completely developed and establishing standards would be appropriate. Upon a roll call vote: Mayor Rice, Councilmembers Freeburg, and Wesp voted in favor. Councilmember Skogquist voted nay. Motion carried. 9.4 RES/Approving Variance; 2224 4th Avenue. RESOLUTION Mr. Palmer shared a staff report with background information to the Council stating the property owner of 2224 4th Avenue was s seeking to reconstruct an attached garage that was damaged by fire in October 2018. The property is located in the R-1 Low Density Residential zoning district. The proposed footprint of the new garage will be shifted toward the south property line approximately 14 feet, allowing for a portion of the existing garage area to be converted into living space. The new garage will in its new location come within 4.4 ft. of the south property line near the alley. The applicant is requesting approval of a front yard setback variance of 20.6 ft. from the south property line. The proposed garage will cover over a portion of the existing driveway. There will be no increase in impervious lot coverage. In summary, two variances are being requested, one for a nonconforming setback from the south property line and the second for impervious lot coverage exceeding 35%. Mr. Palmer said the Planning Commission reviewed the application and held a public hearing on March 5, 2019, and established findings of fact and recommended approval of both variances subject to the following conditions. Councilmember Skogquist spoke to concerns on the alley regarding parking and suggested possible parking restrictions. Mr. Palmer said the Planning Commission included no parking on the driveway and said guests could park on the street on 4th Avenue, adding the box truck in the aerial was from a former March 18, 2019 (Regular) Page 9 of 16 business and no longer needed but that any use could not encroach in any right-of- way and that a condition was not needed for a concern otherwise regulated. Councilmember Skogquist asked if there were other similar properties in the area. Mr. Palmer said 408 Van Buren Street and 415 Van Buren Street had garages on the property line along with 408 Harrison Street. Councilmember Skogquist said those properties have other places to park off- street and was possibly not a concern but said this was a unique property in a unique location and parking could be a concern. Mr. Palmer said the house was set back 40 feet from 4th Avenue and the applicant could build out towards 4th Avenue but that would result in a different impact with regard to the front of the home and landscaping. Mayor Rice shared how Riverspointe townhomes require parking in the garage. Mr. Palmer said we do not allow parking pads in the front yard but that the garage in the front yard. Motion by Councilmember Freeburg, seconded by Councilmember Skogquist, to adopt a resolution approving two variances for 2224 4th Avenue. Rick Valley, 2224 4th Avenue, commented about the driveway on the north end of the lot and how the curb cut could be used for parking area with a driveway that could be used for parking. He said during the day there would be no overnight parking on 4th Avenue but did not think parking would be a real issue. Upon a roll call vote: Mayor Rice, Councilmembers Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.5 RES/2018 Budget Amendments and Rollover to 2019. RESOLUTION Finance Director Brenda Smith shared a staff report with background information stating Council has the authority to revise the 2018 budget by transferring unencumbered appropriations from one office, department or agency to another; by increasing the total appropriations to the extent of actual revenues, by appropriating for unexpected emergency expenses or by carryover for incomplete projects. After reviewing the actual activity for the year ending December 31, 2018 and speaking with department heads, the resolution describes the proposed amendments to the 2018 budget and the 2019 budget respectively. She said total expenditures in the general fund are going down by $32,000 with a request to move expenses for the comparable worth study to 2019. The total budget requested for carry over is $551,888 and consists of park, cemetery, and information technology projects not completed by the end of 2018, which are March 18, 2019 (Regular) Page 10 of 16 requested to be carried over for completion in 2019. Also included in that total is budgeted equipment of a police Jeep and an electric bucket truck. Motion by Councilmember Freeburg, seconded by Councilmember Skogquist, to adopt a resolution authorizing revision of 2018 budget department and carryover to 2019. Upon a roll call vote: Mayor Rice, Councilmembers Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.6 RES/Accepting Donations and Contributions for 2018. RESOLUTION Ms. Smith shared a staff report with background information to the Council Minnesota Statute Section 465.03 requires that municipalities accept all contributions, donations and grants through adoption of a resolution. Annually, the City Council is presented with a resolution for adoption recognizing and accepting donations and contributions from various contributors for a variety of projects or expenditures, along with the conditions, if any, as established by the contributor. Motion by Councilmember Wesp, seconded by Councilmember Skoquist, to adopt a resolution accepting donations received by the City of Anoka in 2018. Councilmember Skogquist thanked everyone for their donations to the City throughout the year and commented on ARAA’s donated funds to rehab Enloe Park and how with the help of staff that money was stretched to make a great project. Upon a roll call vote: Mayor Rice, Councilmembers Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.7 RES/2019 Combined Street Improvement Project; Approve Joint Powers Agreement with the City of Coon Rapids (Street Renewal Project Area). RESOLUTION Engineering Technician Ben Nelson shared a staff report with background information to the Council stating a portion of South Street (121st Avenue) from 9th Avenue to 630 feet east of 10th Avenue is a border street between the City of Anoka and the City of Coon Rapids. This street segment has been rated in poor condition by staff and is therefore proposed to be reconstructed in the 2019 Combined Street Improvement Project (Street Renewal Project (SRP) Area) by the City of Anoka. Standard with contracts, between public agencies with common powers or goals, a Joint Powers Agreement (JPA) will be required for March 18, 2019 (Regular) Page 11 of 16 the City of Anoka to design, administer, and construct the project for the City of Coon Rapids. This JPA document outlines the cost for the street reconstruction, design, and administration of this roadway segment. The cost for the street (bituminous, curb & gutter, driveway aprons) and storm sewer will be shared equally. Utility reconstruction (watermain, sanitary sewer, street lighting etc.) will be paid entirely by the city which owns the utility. The JPA has been reviewed and there are no specific objections by the City attorney. And on February 19, 2019, Coon Rapids City Council approved the JPA. Mayor Rice left the dais at 8:48 p.m. and returned at 8:52 p.m. Councilmember Skogquist asked questions regarding if there were separate water mains in this street. Mr. Nelson explained how Anoka owned the water main and sanitary sewer and invoiced Coon Rapids residents accordingly then shared how Coon Rapids has stubbed water up to 121st Avenue/South Street and will be installing their own water main which will allow our hydrants to be by one another for potential sharing benefits and that Anoka will be able to stop invoicing Coon Rapids residents for these services once complete. Motion by Councilmember Skogquist, seconded by Councilmember Wesp, to adopt a resolution for the 2019 Combined Street Improvement Project; Approve Joint Powers Agreement with the City of Coon Rapids (Street Renewal Project Area). Upon a roll call vote: Mayor Rice, Councilmembers Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.8 RES/North Street Reconstruction Project; Approve Plans and Specifications, Authorize Advertisement for Bid and Set a Bid Date. RESOLUTION Mr. Nelson shared a staff report with background information stating on April 17, 2017, City Council approved the Joint Powers Agreement with Anoka County to turn back North Street (CR-79) from CSAH 7 to the eastern City limits to the City of Anoka. The transfer of jurisdiction took place on May 15, 2017 and Anoka County made a lump sum payment to the City of $1,120,000 for the future reconstruction of the road. North Street is in extremely poor condition of bituminous pavement and has the absence of storm sewer. The proposed project will involve the total reconstruction of the street, including the replacement of the bituminous curb with concrete curb & gutters, the bituminous pavement, and storm sewer from approximately 9th Avenue to the east City limits. Due to the potential of redevelopment of the area from 7th Avenue to 9th Avenue, this section of road will involve the reconstruction of the street surface, including the bituminous pavement, minor replacement of bituminous curb, and storm sewer reconstruction only as necessary. The project will also include new LED March 18, 2019 (Regular) Page 12 of 16 “roadway” style street lighting along the corridor and a sanitary sewer extension east of 11th Avenue to provide service to the commercial property along the north side of the roadway. Council should also be aware this project was planned to be a joint project with the City of Coon Rapids for the resurfacing of Riverdale Drive from the east city limits to the intersection of Northdale Boulevard. At this time, Coon Rapids staff is still negotiating property acquisitions to construct a round- about at the intersection of Northdale Boulevard and Riverdale Drive. Anoka has already moved this project from 2018 to 2019 and staff is recommending on moving forward with the project in 2019 without the Coon Rapids. Motion by Councilmember Skogquist, seconded by Councilmember Freeburg, to adopt a resolution for the North Street Reconstruction Project; approve plans and specifications, authorize advertisement for bid and set a bid date. Mayor Rice spoke about how up to 9th Avenue would be total reconstruction but the westerly portion would be asphalt replacement only and asked if we would use the existing base. Mr. Nelson explained the entire project would be reclaimed but certain sections would have new curb and others sections new storm water improvements but noted the existing sewer and water would remain. Mayor Rice asked questions regarding base work to ensure survivability as this road has been in terrible shape and due to this past winter at times almost impassable. Mr. Nelson explained some areas would be done similar to an SSIP project. Dr. Evans asked about fiscal impact from both the SRP and utility fund and inquired about amounts from each fund, adding the amounts should be better split in reports to be clearer. Mr. Nelson explained the project would include 13 lights at $4,000 each which would be paid by the utility fund while the SRF fund would pay for the actual road project. Councilmember Skogquist clarified widening of one of the road’s shoulders that would be included on the north side from 9th Avenue to 7th Avenue. Mr. Nelson said North Street would remain at 32 feet but include 11-foot drive lanes and a 7- 8-foot shoulder on the north side of the road. Motion by Councilmember Skogquist, seconded by Councilmember Freeburg, to adopt a resolution for the North Street Reconstruction Project; Approve Plans and Specifications, Authorize Advertisement for Bid and Set a Bid Date. Upon a roll call vote: Mayor Rice, Councilmembers Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.9 RES/Municipal State Aid System Revisions; Establishing Municipal State Aid Streets. March 18, 2019 (Regular) Page 13 of 16 RESOLUTION Mr. Nelson shared a staff report with background information to the Council Under Minnesota Rules, Chapter 8820 Local State-aid Route Standards, Financing, municipalities within the state, having a population of over 5,000, may, with the consent of the Commissioner of Transportation, designate up to 20% of their local mileage as part of a Municipal State Aid System (MSAS). This system provides a funding source, which is collected by the state from the sale of fuel, for construction, reconstruction, and maintenance of the streets so designated. Funding is allotted on the basis of population, designated mileage, and construction needs. Over the years, this funding mechanism has been used extensively, and successfully, to construct and reconstruct many of the City’s roads. Currently there are designated State Aid route through the Highland Park neighborhood. With the new construction of Green Haven Parkway in 2017, a new state aid route can be designated from Thurston Avenue to Euclid Avenue. The City has already received preliminary approval from the Minnesota Department of Transportation Metro Area State Aid office for this revision and staff recommends approval of the resolution. Motion by Councilmember Wesp, seconded by Councilmember Freeburg, to adopt a resolution for municipal State Aid System revisions; establishing municipal State Aid Streets. Upon a roll call vote: Mayor Rice, Councilmembers Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 10. UNFINISHED BUSINESS None. 11. NEW BUSINESS 11.1. Approval of 2019 through 2021 Labor Contract; Patrol Unit. Mr. Lee stated Council discussed the labor contract for the Patrol Officers unit earlier in the evening during a closed session and that details would become public upon Council approval. Motion by Councilmember Freeburg, seconded by Councilmember Wesp, to approve the a 2019 through 2021 Labor Contract with the Patrol Officers Unit. Vote taken. All ayes. Motion carried. 11.2. Approval of 2019 through 2021 Labor Contract; Sergeants Unit. March 18, 2019 (Regular) Page 14 of 16 Mr. Lee stated Council discussed the labor contract for the Sergeants unit earlier in the evening during a closed session and that details would become public upon Council approval. Motion by Councilmember Wesp, seconded by Councilmember Skogquist, to approve the a 2019 through 2021 Labor Contract with the Sergeants Unit. Vote taken. All ayes. Motion carried. 12. UPDATES AND REPORTS 12.1. Fourth Quarter Financial Report. Finance Director Brenda Smith shared the fourth quarter financial reports and explained how expenses were up approximately $220,000. She reviewed general fund expenses by type, shared general fund revenue that included property taxes, franchise fees, licenses and permits compared to past years; assets of $18.5 million, $12.5 million in liabilities, fund balance of $6 million, and outlined operating income in all enterprises were up with the exception of golf, refuse and recycling. Ms. Smith reviewed proprietary funds, fund equity, and operating income as of December 31 then and reviewed internal fund highlights. She stated cash and investments were down about $4.1 million compared to 2017 and that the City’s current yield was approximately 1.8%. She reviewed investment holdings and stated the City continues to plan and prepare for the future and has prepared for momentum for the Highway 10 reconstruction project and acquisition of property for Green Haven Parkway that will continue into 2019. Dr. Evans shared comments about how funds are taken from the garage fund and moved to the police fund and if this was included then in police funding. Ms. Smith explained how the City’s budgets and allocates for items that cover items such as vehicles and how all departments pay into the garage fund for their necessary equipment. Dr. Evans asked about moving funds from the event center account and referred to the $15,000 for the aquatic center and if funds were added. Ms. Smith explained how expenses went over budget in 2018 due to construction costs and with the change of vendors for the Green Haven Event Center and overlap funds were needed to cover that gap. Dr. Evans asked if golf pays a separate rent to the facility. Ms. Smith said we do not have rent for golf but do allocate utilities on a percentage basis that includes rent, utilities, taxes. Dr. Evans complemented City staff for their maintenance work at the ice rinks this season. March 18, 2019 (Regular) Page 15 of 16 Councilmember Skogquist commented on how the golf enterprise went from positive to negative and asked for reasons why revenue has decreased. Ms. Smith said the reason was due to the shortened golf season in 2018 as memberships and rounds had actually increased but that a shorter season affected revenues overall. Mr. Lee said staff will be reviewing a possible fee adjustment in 2020 as well. 12.2. Bi-Annual Distribution of Round-Up Funds. Ms. Smith shared an update on the status of the “Round Up for Change” program regarding collections and disbursement of revenues. The round up program, which was adopted November 21, 2011, Policy # 2011-03, has been in place starting 2012. Funds collected are for donations that improve the lives of families, children and seniors in our community. Each new customer is introduced to the program when they sign up for service, and make the decision to enroll or not at that time. The new customer booklet also gives more information, as well as the AMU website and social media. Unfortunately, participation continues to decline. Round up participation has gone from 8,100 in 2012 to 5,475 in 2018. Donations for the current year are $32.636.20. There is a balance of $17,636.75 available for disbursement. 12.3. Governor’s News Conference for the TH47 Railroad Grade Separation Project. Mr. Lee stated the Governor had scheduled a news conference for Tuesday, March 19 at approximately noon at Anoka Hennepin Community Education Center to discuss the TH47 Railroad Grade Separation Project and potential funding mechanisms for the project. He said they have requested a representative from the City speak at the event regarding TH47 and may also request a representative from our Police and Fire Departments to speak and that he will be attending. He noted this crossing has been rated the most dangerous crossing in Minnesota. 12.4 Tentative Agenda(s). The Council reviewed the tentative agendas of the upcoming Council meetings. 12.5 Staff and Council Input. Mr. Lee said the Council may be reviewing the Woodbury House item again at the next worksession. 13. ADJOURNMENT Councilmember Freeburg, made a motion to adjourn the Regular Council meeting. Councilmember Skogquist seconded the motion. March 18, 2019 (Regular) Page 16 of 16 Vote taken. All ayes. Motion carried. Time of adjournment: 9:25 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk