Anoka City Council

June 17, 2019 (Regular) Page 1 of 15 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS JUNE 17, 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 Barnett, Freeburg, Skogquist, and Wesp. Staff present: City Manager Greg Lee; Police Chief Eric Peterson; Community Development Director Doug Borglund; Electric Director Greg Geiger; Finance Director Brenda Smith; Public Services Director Mark Anderson; Housing Manager Darin Berger. Absent at roll call: None. 3. COUNCIL MINUTES 3.1 Minutes of the May 28, 2019, Worksession. Minutes of the June 3, 2019, Regular Meeting. Councilmember Skogquist noted corrections were needed on Page 1, Paragraph 2 of the worksession minutes changing: “Councilmember Freeburg asked if they purchased the house…” and on Page 7 to note that he left worksession at 6:50 p.m. Motion by Councilmember Skogquist, seconded by Councilmember Barnett, to waive the reading and approve the May 28, 2019, Worksession and the June 3, 2019, Regular Meeting minutes as corrected. Vote taken. All ayes. Motion carried. 4. OPEN FORUM 4.1 Presentation; WIPFLi 2018 Annual Report. Finance Director Brenda Smith introduced Jeffrey Miller, WIPFLi, LLP, who provided a summary of their recent audit report for 2018. Mr. Miller reviewed the Comprehensive Annual Financial Report (CAFR) and stated they issued a clean opinion with no corrections in accordance with government auditing standards and internal control review. He spoke about the required communication letter June 17, 2019 (Regular) Page 2 of 15 and reviewed the useful life of fixed assets, pension liability requirements, and fair value estimates review. Mr. Miller said they recommended no adjustments as a result of the audit, encountered no difficulties during the audit process, and issued no opinion on internal controls. He said the compliance testing as required by the State Auditor resulted in no issues and that last year’s minor concerns were addressed accordingly, including compliance with State bid law. Mr. Miller reviewed the City’s financial trends that showed $227,000 of expenditures over revenues and a sufficient targeted fund balance of over 10%. He reviewed the electric fund operating income and unrestricted net position then reviewed other enterprise funds and factors that can influence these balances such as the water fund out of the ordinary due to depreciation expenses. He referred to the three new accounting standards adopted regarding post-employment benefits which caused the City’s liability to increase by approximately $700,000 for GASB pension requirements and the omnibus payroll-related information presentation. Mr. Miller said the City received the GFOA Certificate of Achievement for Excellence in Financial Reporting for 38 consecutive years and thanked the Finance department staff for being well prepared for the audit. Councilmember Freeburg thanked Ms. Smith and staff for the great work the Finance Department does for the City. Councilmember Barnett encouraged the public to view the CAFR on the City’s website. Councilmember Skogquist thanked staff for their work and explained how while we could legally bond up to $42 million the City was financially responsible and bonded only $2 million which was impressive. He said the financial data was interesting information and thanked staff for the statistical information on tax capacity rates which was very good and did not overburden taxpayers. 4.2 Proclamation; Anoka Women of Today Founders Day. Rachal Mueller of Anoka Women of Today accepted the Proclamation proclaiming July 1, 2019 to be Minnesota Women of Today Founders Day in the City of Anoka. She and other members informed the Council and public that the Anoka chapter of Women of Today received a special award this year for their participation in Anoka’s Winterfest. This award is granted once a year to only one chapter of Women of Today throughout Minnesota and that they were very proud of partnering with the City on this event. Ms. Mueller shared about their Chapter’s work to build friendships, community, and leadership training. Mayor Rice read the Proclamation into the record. 4.3 Police Activity Update. June 17, 2019 (Regular) Page 3 of 15 Police Chief Eric Peterson commented how security efforts were being focused in the parks and other areas where activities such as illegal camping can occur. He spoke about Officer Skinner who had accepted a position in another city and their work to replace this position as soon as possible, then shared that Safety Camp was postponed to August 13 to allow for more registrations. Chief Peterson shared that alcohol and tobacco compliance checks were completed last week and was pleased to announce that every license holder passed then outlined the process for failures. He stated K-9 Bravo was doing an exception job in regional training in Lino Lakes and was proud to report that Captain Youngquist was selected to attend the prestigious National Academy FBI training in October. Wes Peterson, Anoka, shared concerns about speeding in the area of 8th Avenue and Garfield Street and how it will be worse once construction is completed. He said drivers use this street as a shortcut to Grant Street down Bunker Lake Boulevard and did not believe it is neighborhood residents but if so, they should be ticketed as well. Chief Peterson said he would be happy to meet with Mr. Peterson to discuss his concerns and work on directed enforcement in this area. Jeff Ostendorf, 8th Avenue, expressed his frustration as well with speeders and suggested installing a speed limit sign. Councilmember Skogquist listed other areas of concerns with regard to speeding and suggested more enforcement was needed. Chief Peterson referred to a covert speeding device that could be utilized to help address these concerns. 5. PUBLIC HEARING(S) 5.1 Modification to the Redevelopment Plan for the Anoka Redevelopment Project No. 1; Modifying the South Central Business District Tax Increment Financing District and Adopting a Modification to the Tax Increment Financing Plan. Housing Manager Darin Berger stated the City of Anoka Housing and Redevelopment (HRA) is proposing to adopt a Modification to the Redevelopment Plan for Anoka Redevelopment Project No. 1 and a Modification to the Tax Increment Financing Plan for the South Central Business District Tax Increment Financing District. The TIF District is a redevelopment district with a maximum term of 26 years of tax increment. The HRA proposes to expand the District to include up to six additional properties at the southwest corner of Main Street and 7th Avenue. The HRA will purchase the properties, demolish the substandard structures, clear and prepare the site in anticipation of providing a site for building residential, commercial, or office space. It is anticipated that the land purchase, demolition and site preparation will be financed through bonds and repaid with tax increments generated by the expanded District. Mr. Berger said that due to inspection scheduling issues, the public hearing should be recessed June 17, 2019 (Regular) Page 4 of 15 until the July 15, 2019 City Council meeting. In order to consider and add these parcels to a redevelopment district, we need inspection documentation that the area qualifies. Those inspections and reports are forthcoming. Ehlers will be on hand in July to give a formal presentation. Formal adoption of a Resolution will occur at the July 15, 2019 meeting. Mayor Rice opened the public hearing at 7:40 p.m. Councilmember Skogquist clarified the buildings included in the district and the two additional parcels that had been incorporated since the worksession discussion. He said he was in favor of addressing the blight on the corner but did not want to incorporate property into the residential area. Mr. Berger responded that when this was set with the owners, we were not looking at these properties as the target was the 7th Avenue and Main Street but since then property owners of 639 Monroe and 640 East Main Street approached the City to would make the area larger. He said the proposal was brought to the HRA in closed session and they directed staff to continue discussions with 640 East Main Street but tabled consideration of 639 Monroe Street for further discussion at the July meeting. Councilmember Barnett confirmed all purchases would be fully funded by the HRA and asked how this affected the 26-year TIF district. Mr. Berger said the City would bond for funds and TIF district where repayment would come from. Ms. Smith said the action would not change the TIF district timeline at all it would just include these properties in the district which would still end in 24 years. Councilmember Barnett said typically she would hesitate purchasing additional properties but if there was a designated use for a future project, she would support this action. Councilmember Freeburg confirmed there was no plan for this parcel area. Mr. Berger confirmed no plans to date but hoped some concepts would come forward once they began marketing the area. Being no comments Mayor Rice recessed the public hearing at 7:50 p.m. Motion by Councilmember Wesp, seconded by Councilmember Barnett, to continue the public hearing and consideration of this item to the July 16, 2019, Regular Meeting. Vote taken. All ayes. Motion carried. 6. CONSENT AGENDA June 17, 2019 (Regular) Page 5 of 15 Motion by Councilmember Wesp, seconded by Councilmember Skogquist, to approve Consent Agenda 6.1 through 6.4. Councilmember Wesp asked about the annual fireworks celebration at Castle Field. Park Board Chair Steve Nelson outlined the 4th of July celebration events and explained the alcohol compliance efforts for the event and how the celebration would help fund projects at Castle Field. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. 6.3 Issuance of Temporary On-Sale Liquor License; Castle Field Association, July 3, 2019. 6.4 Waiving Monetary Limits for Liability Coverage and Annual Insurance. Vote taken. All ayes. Motion carried. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 7.1. Planning Items: 7.1.A. RES/2040 Comprehensive Plan Update/Submittal to the Metropolitan Council for Review. RESOLUTION Community Development Director Doug Borglund shared a staff report with background information stating all cities, counties and townships within the seven-county metropolitan region must prepare a comprehensive plan and update that plan as needed every 10 years. The Metropolitan Council is charged with reviewing local comprehensive plans. The Met Council must review a plan for completeness before initiating the review process for an update or an amendment. A plan update is considered complete when it includes the elements required by statute and contains sufficient information for us to evaluate the following three primary criteria: conformance with metropolitan system plans, consistency with adopted policy plans, and compatibility with plans of affected and adjacent jurisdictions. He said before sending the City of Anoka Comprehensive Plan Update to Metropolitan Council for review, the City of Anoka is required to complete the following: adjacent community review, public hearing held by Planning Commission, and City Council authorization to submit plan to the Metropolitan Council for review by resolution. Mr. Borglund outlined the plan update submittal process and steps Met Council will take to review for completeness. He said if the City’s Plan is found to be June 17, 2019 (Regular) Page 6 of 15 complete for review, the Met Council has 120 calendar days to complete the review and to take final action on your plan. Taking final action on the plan means that the Met Council’s committees have reviewed and recommended action to the Met Council Board, and then the Met Council Board determines whether or not the City’s plan can be put into effect. Councilmember Freeburg asked how closely we have to follow this Plan and if it is monitored. Mr. Borglund said it is the City’s obligation to follow the Plan and noted staff uses this Plan daily in its work. Mayor Rice said the 2040 Plan rests heavily on the previous plans. Councilmember Skogquist referred to four areas that are predominately single- family neighborhoods and now planned for high density housing in the future and how he was not supportive of this plan. He said it was important for the Council to decide and that he would prefer single family and promote moving houses in the area if need be. He said the future 2040 plan did not refer to redevelopment and that there were some unique houses in this area and asked about density requirements of Met Council. Mr. Borglund noted the Planning Commission reviewed each area of the Ferry Street/Highway 10 parcels and noted how it was guided as high density for quite a while. He said the area had a mix of housing included consistent with the 2030 and 2020 Plan and that the Planning Commission reviewed changes from high density to low density and felt the highest and best use was high due to high traffic counts, minimal access points which was better than multiple driveways and took advantage of river views. Mr. Borglund said the second site is south of the Walker development on Monroe Street which was high density and referred to changes from low, medium and high transitions and that the Planning Commission reviewed this idea and felt the best use was high density since multi-family was already the predominate use and the redevelopment edge which supports the downtown area. Mr. Borglund reviewed the 7th Avenue/Johnson Street area as high density identified in the 2030 Plan too as well as single family in the area and some large apartment complexes and felt this was the highest and best use as it was on the edge of the Transit Oriented Development along with the uncertainty of the area to the west. Mr. Borglund reviewed the 3rd Avenue/Harrison Street area mix of uses now and the existing uses which were mostly high density and expensive to redevelop. Mayor Rice asked if the Comprehensive Plan affects zoning changes. Mr. Borglund said it could depending on the area. June 17, 2019 (Regular) Page 7 of 15 Councilmember Freeburg spoke about the houses on 3rd Avenue for tear down and apartment construction. Mr. Borglund said a project could be done privately or through public redevelopment but noted this is a long-term plan over 20 years. Councilmember Skogquist said he would see this occur if the City initiated a project or similar like 3rd Avenue and Monroe Street potential redevelopment. He said he agreed with the step-down process but when its existing residents, neighborhoods and homes it is a different story and if we want to do this there are other areas that are better, especially when current owners are concerned. Mayor Rice commented on the area and said it was a leap to say we want the full area redeveloped. He noted this is a grand planning document that took many years to create and is a working document that continually changes. Councilmember Skogquist said some neighbors have big concerns and referred to the area between River and 2nd that he would like to see change to low density residential. Councilmember Wesp said there are two HRA lots nearby that were substandard and used to be a parking lot, adding there are other areas of older homes in Anoka in a flood plain across the street from Madison and asked if the Planning Commission took into account how we want to do this area and will there be a single family redevelopment needed for these areas. Planning Commission Chair Don Kjonaas said the Commission looked out to 2040 and explained how this document was a roadmap to what it could be and does not take away from current residents or affect any property rights loss. Mr. Berger said we have no plans at all for the area outside of moving forward to purchase and that we want them to remain and be well kept but if there are no intentions today to purchase, we are ready for any changes in the future. Councilmember Skogquist referred to a neighborhood survey that showed how property owners wanted the neighborhood to remain, adding the large impact the Plan had on property owners, adding it was interesting to see what happens with the Ferry Street interchange and potential change in the corner lot with potential infill. Motion by Councilmember Skogquist, seconded by Mayor Rice, to adopt a resolution 2040 Comprehensive Plan Update/Submittal to the Metropolitan Council for review with the area south of Bridge Square and Walker Gardens to be designated Low Density Residential. Mayor Rice spoke about a home in the area that was in poor condition 10 years ago and how the City wanted to purchase it then as we were assembling properties. He said the Council opted not to buy then but said we should sell June 17, 2019 (Regular) Page 8 of 15 those contiguous properties and that since then the home has been improved and is good. He said the City is in a holding pattern and noted we are an older city that did not want to be in a situation where we had to defend a property from redevelopment and building something no one wanted. Councilmember Freeburg referred to apartment spot zoning in the late 1960s and 1970s and how the project did not work then and would not happen now. Councilmember Skogquist said those areas were zoned R-4 and spoke of other areas north of Van Buren Street that was downzoned and how he did not want to see that happened again. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, and Skogquist voted in favor. Councilmember Freeburg and Wesp voted nay. Motion carried. 7.1.B. RES/Site Plan Review; 730 Bunker Lake Boulevard. RESOLUTION Mr. Borglund shared a staff report with background information stating Reshetar Systems was requesting approval of a proposed building addition located at 730 Bunker Lake Boulevard. Reshetar Systems is a drywall and renovation contractor which is a permitted use in the applicable zoning district, so an expansion of the use is permitted. The applicant is proposing to construct a 1,360 square-foot building addition onto the south elevation of the existing 4,000 square-foot building. The new addition will include 4 new offices, a conference room, and ADA bathrooms. The finished addition will be designed to complement the existing structure. The exterior of the addition will be constructed from rock-face block painted in two colors. The existing structure will also be repainted to match the new design. Improvements are also planned for landscaping, parking and storm water management. Mr. Borglund said the Planning Commission conducted a site plan review at their June 4, 2019, regular meeting and noted some items including the new parking area along the south property line was not shown to be bound by curb and gutter; curbing is required for new parking lots; the new parking area along the south property line was shown to be setback 3 feet; a 5-foot setback is required; the roof line of the addition extend over a portion of the existing building on the east elevation which faces Thurston Avenue, so as to enhance and tie together the addition and existing building; the existing diesel tanks located just south of the existing building be screened in their new location if they are to remain on-site. He said the applicant has submitted an updated site plan showing the new parking area bound by curb and gutter as well as meeting the required 5-foot setback. The eastern architectural elevation drawing has also been updated to show the roof line extending over a portion of the existing building. June 17, 2019 (Regular) Page 9 of 15 Mr. Borglund stated the Planning Commission voted to recommend approval of the site plan subject to the following conditions: 1. The new parking area located at the south and southwestern portion of the site shall be bound by curb and gutter of a minimum B612 design. 2. The new parking lot shall meet a minimum 5-foot setback from the south property line. 3. The roof line of the addition shall be extended partially along the existing building on the eastern building elevation. 4. The existing diesel tanks located south of the existing building shall be screened from view in their new location if they are to remain on-site. 5. All comments and concerns of the city engineer shall be met. 6. All site improvements shall be in accordance with the submitted and approved plans. Any significant deviation from the approved plans shall require additional review and approval by the City. Mr. Borglund noted the applicant current leases from the City the separate City- owned lot south of the subject property. The applicant has expressed interest in purchasing the lot from the City and making landscaping improvements to act as screening along the east property line abutting Thurston Avenue and has included this lot and proposed landscaping improvements on the site plan. Councilmember Barnett said the project looks great and thanked the applicant for his continued investment in Anoka then asked if any of the six conditions concerned the applicant. Mr. Reshetar confirmed acceptance of all proposed conditions. Motion by Councilmember Wesp, seconded by Councilmember Barnett, to adopt a resolution approving site plan review for 730 Bunker Lake Boulevard. Mayor Rice agreed this is an attractive project and great improvement for the site and thanked Mr. Reshetar for his investment in Anoka. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 8. PETITIONS, REQUESTS AND COMMUNICATION None. 9. ORDINANCES AND RESOLUTIONS 9.1 RES/Official Intent to Reimburse Certain Expenditures of the City of Anoka Using the Proceeds of Tax Exempt Obligation to the Issued by the City. RESOLUTION June 17, 2019 (Regular) Page 10 of 15 Ms. Smith shared a staff report with background information stating on December 17, 2018, City Council adopted a resolution consolidating the 2019 Street Renewal Project with the 2019 Street Surface Improvement Project to make the project more economically complete. On April 1, 2019, City Council adopted a resolution approving bids and awarded construction contracts to Kuechle Underground Inc., for the 2019 Combined Street Improvement Project, Street Renewal Project (SRP) Area and to Douglas-Kerr Underground LLC, for the 2019 Combined Street Improvement Project, Street Surface Improvement Project (SSIP) Area. City Council adopted a resolution authorizing the 2019 Street Maintenance Project. A portion of these projects will be financed by the Municipal Public Works 444 Waterworks; Storm; Sanitary Sewer Systems bond. On May 6, 2019, City Council authorized payment for the 2019 Combined Street Improvement Project. Based on the requirements of the Municipal Public Works bond, City Council is required to pass a resolution within 60 days of this payment to be reimbursed. Staff is recommending adoption of a resolution allowing City Council to possibly issue debt late in 2019 to reimburse for certain expenditures for the 2019 public improvement projects. Councilmember Skogquist inquired about the timeline of the bonds and confirmed the process has not occurred yet. Ms. Smith said staff will begin the bonding process at the end of November and close in December at which time staff will know the construction costs and be able to pay for the 2020 street improvement projects, adding this will save the City money by doing one large bonding project instead of two. Motion by Councilmember Barnett, seconded by Councilmember Freeburg, to adopt a resolution stating official intent to reimburse certain expenditures of the City of Anoka using the proceeds of tax exempt obligations to be issued by the City. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.2 RES/Approving a Special Law Authorizing Tax Increment Financing Districts for Housing Purposes and Expenditures for the Commuter Rail Transit Village Tax Increment Financing District. RESOLUTION Ms. Smith shared a staff report with background information stating staff worked with the State Legislature to get a bill passed that would allow the Commuter Rail Transit Village Tax Increment Financing District (CRTV TIF) three additional years to spend funds to purchase property for redevelopment and be able to use Tax Increment Funds to pay back the debt. Having three additional years to purchase property will allow more redevelopment in the CRTV district and bring in additional tax increment funds. June 17, 2019 (Regular) Page 11 of 15 Councilmember Freeburg complimented staff on their good work on this project. Motion by Councilmember Skogquist, seconded by Councilmember Barnett, to adopt a resolution approving a special law authorizing tax increment financing districts for housing purposes and expenditures from the Crail Transit Village Tax Increment Financing District. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.3 ORD/Purchase Agreement; City’s Sale of 641 Jacob Lane. (1st Reading) Mr. Borglund shared a staff report stating staff is proposing the City has been in discussions with Gramercy Development LLC regarding property known as City 641 Jacob Lane or as known and the City Park/Golf Maintenance Building. The subject property is made up of one parcel equaling 4.01 acres in size. The Buyer or Gramercy Development LLC is proposing multi-story senior cooperative/ ownership residential building. The plan is to build a new residential structure meeting the City’s design requirements. The subject property appraised for $945,000.00. The City has received an offer of $235,660.00 per acre, or a total of $945,000.00 for the 4.01-acre parcel contingent upon the City Council’s approval to enter into a purchase agreement. The City Attorney from a legal perspective is satisfied with the purchase agreement. This is a late summer of 2020 development project or sooner based on sales. The Buyer plans to submit a land use application for Planning Commission and City Council review in the near future. The Buyer has already contracted with an architect and engineering firm. Mr. Borglund shared the proposed schedule and said the sale/demolition of the existing Park Service Center, 641 Jacob Lane, (home to Golf Maintenance) will require relocation of Golf Maintenance to a new Facility to be located at Garfield and State Street in the NE corner of Green Haven Golf Course and the new Golf Maintenance Facility (including Animal Control) is expected to cost $3.3m in 2020 dollars. He said staff and Council will be discussing the option of building a combined Animal Containment/Law Enforcement Training Center (AC/LETC) at the Public Safety Site which would streamline those functions. This would result in a $300,000.00 deduct from the Golf Maintenance Facility. Mr. Borglund said depending on timing of the sale of the 641 Jacob Lane, it may be necessary to have an interim plan for Golf Maintenance bringing much of the equipment and maintenance to Public Services at 501 Pierce, noting this will add to the complexity to Golf Maintenance as it will require trailering of equipment from 501 Pierce to Green Haven to perform daily work. He said outdoor storage of golf cars at Green Haven may be necessary to allow indoor storage of specific and sensitive golf maintenance equipment and there will be a need to coordinate the June 17, 2019 (Regular) Page 12 of 15 timing of the demo of the existing Park Service Center and the construction of the new to minimize the duration of any interim accommodations. Mick Conlon, Gramercy Development LLC, thanked City staff for their patience throughout the process then explained the proposed senior co-op plan of 80-90 units to be named the American Club. He said they break ground based on presale numbers and that demand for this type of project looks solid. He said the goal was to minimize golf course impact and said they worked with golf course staff on the proper location for this project. Mr. Borglund said a lease will be coming forward soon for Council approve to allow Gramercy to lease space in the basement of Green Haven Golf Course for a sales office. Councilmember Freeburg inquired about the project’s goals for active seniors. Mr. Conlon said the project was for people interested in being active in the community and said this would provide a great location to continue active community involvement. Councilmember Wesp inquired about the cooperative model and age restriction requirements. Mr. Conlon said the age restrictions would be 62 and better and the process involved should someone leave if not sold and the combination of a sale/rental model and how the demand was present but if not, they would return to Council for further discussion. Councilmember Wesp asked about the cooperative process that involved deeded property which could be passed on in an estate. Mr. Conlon explained all members own a share in the company and they own the building and if conveyed to someone not 62 years of age would undergo process to sell. Councilmember Barnett inquired about the proposed timeline for sales. Mr. Conlon said the agreement included 60 days for soil testing then site plan review for a Planned Unit Development project followed by 180 days with a 90-day extension should the need arise. Mr. Borglund said the extension was built in to check on the project so it did not extend indefinitely and that one extension was allowed after which discussion would be required. Councilmember Skogquist inquired about the buyer demoing the site with City escrow money and asked if we pay for all demolition costs or environmental work only. Mr. Borglund said it has always been the City’s position to pay demolition costs with funds in the TIF district and while it is difficult to say exactly the amount based on what is found during demolition staff expects the costs to be approximately $300,000. June 17, 2019 (Regular) Page 13 of 15 Councilmember Skogquist said the only other cooperative in Anoka County was Real Life in Coon Rapids and said this would be a different product. Mr. Conlon agreed, stating this would be a beautiful building. Councilmember Freeburg confirmed demolition would not happen until the purchase agreement was complete. Councilmember Wesp confirmed the City would be responsible for demolition and clean up. Mr. Borglund said the City would be reimbursed after review of contracts and expenses. Motion by Councilmember Freeburg, seconded by Councilmember Skogquist, to hold first reading of an ordinance to convey real estate property to gramercy Development LLC. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. Mayor Rice said this would be a beautiful project and welcomed Gramercy to Anoka. 9.4 RES/Adopting Anoka Municipal Utility’s Distributed Energy Resource Interconnection Process. RESOLUTION Electric Director Greg Geiger shared a staff report with background information stating the Anoka Municipal Utility’s Distributed Energy Resource Interconnection Process brings us into compliance with the Minnesota Public Utilities Commission updated standard concerning Minnesota Statute Section 216B.1611, subdivision 3. Councilmember Barnett noted compliance was required but asked if in 10 years would there be other sources of energy that would want to connect. Mr. Geiger said hopefully no and noted there is a lot of reporting to do should that occur and that he would be in favor of solar gardens like in Shakopee Park that would be constructed, receive credits, then build another. Councilmember Freeburg asked if the wind turbine would be part of this. Mr. Geiger it is not our wind generator but MMPA’s who wants it going but that the company we bought no longer produces parts but they found someone to repair the issue. Councilmember Skogquist referred to private generators such as home solar panels and how the Board determined the windmill was at its useful life and decided on refurbishment such as this for education and marketing for surrounding communities. June 17, 2019 (Regular) Page 14 of 15 Motion by Councilmember Barnett, seconded by Councilmember Wesp, to adopt a resolution adopting the Anoka municipal utility’s distributed energy resource interconnection process. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.5 RES/Adopting Anoka Municipal Utility’s Distributed Energy Resource and Net Metering and Rules Governing the Interconnection of Cogeneration and Small Power Production. RESOLUTION Mr. Geiger shared a staff report with background information sharing the Anoka Municipal Utility Policy regarding distributed energy resources and net metering and the rules governing the interconnection of cogeneration and small power production facilities with Anoka Municipal Utility, in accordance with Minnesota Statutes $216B.164, the Public Utility Regulatory Policies Act of 1978, and Federal Energy Regulatory Commission regulations related to customer-owned distributed energy resources. Motion by Councilmember Skogquist, seconded by Councilmember Freeburg, to adopt a resolution adopting Anoka municipal utility’s policy regarding Distributed energy resources and net metering and rules governing the interconnection of cogeneration and small power production facilities. Mayor Rice said this is a small production area now and by law the best option was to invest in something already in production and buy shares and how there is not much an Anoka resident can do but invest most likely by solar panels. Mr. Geiger said he agreed with green power but that based on quickly-changing technology an option existed so residents are not locked into a 20-year payback but are still practicing green initiatives and that program benefits need to be marketed better with MMPA. 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 None. June 17, 2019 (Regular) Page 15 of 15 12. UPDATES AND REPORTS 12.1 1st Quarter Financial Report. Ms. Smith shared the first quarter financial report that included revenues up $530,000 due to the sale of the Lock-Up property and expenses up $330,000 due to increased power/disposal costs. She said total revenue was $11.2 million and total expenditures were $11.6 million then shared general fund revenue comparison and operation expenditure fund comparisons and allocations in 2019. Ms. Smith stated the largest changes in governmental fund reserves was down in the general fund at $440,000 for transfers to capital and debt service and that State aid was down for land purchases for Green Haven Parkway, Greens of Anoka and the CRTV district. She stated golf lost $139,000 and recycling was $18,000 which was normal then reviewed cash, investments and types of investments and maturity of investments, adding the City continues to exhibit responsible financial management. 12.2 Tentative Agenda(s). The Council reviewed the tentative agendas of the upcoming Council meetings. 12.2 Staff and Council Input. Councilmember Barnett thanked staff for the large amount of work involved on the Comprehensive Plan and said this level of work required a lot of time and energy. Councilmember Skogquist reminded the Council of the upcoming MMPA annual banquet and encouraged elected officials to attend and learn more about the organization on July 23. 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: 9:37 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk