Anoka City Council

August 26, 2019 (Worksession) Page 1 of 10 WORKSESSION OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL WORKSESSION ROOM AUGUST 26, 2019 1. CALL TO ORDER Mayor Rice called the worksession meeting to order at 5:00 p.m. 2. ROLL CALL Present at roll call: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp. Absent: None. Staff present: City Manager Greg Lee; Public Services Director Mark Anderson; Engineering Technician Ben Nelson; Finance Director Brenda Smith; Electric Utility Director Greg Geiger; Liquor Store Manager Dave Duwenhoegger 3. COUNCIL BUSINESS and/or DISCUSSION ITEMS 3.1 Discussion; Transportation Updates – Anoka Area Projects. Engineering Technician Ben Nelson shared a staff report with background information stating a business and public open house for Anoka’s US Highway 10/169 Improvements Project has been set for September 18, 2019. City staff and our engineering consultants will be hosting the open house earlier on September 18th prior to the general open house meeting. The targeted audience for this meeting will be local business owners within the project limits and he noted staff has already met with all of the full acquisition property owners at least once. As part of the open house the City will have an informational booth for Anoka’s Highway 10/169 Improvements Project and Anoka County will have informational booths for the CSAH-116 / Bunker Lake Boulevard and MN-47 / Ferry Street Intersection Improvements Project and the 7th Avenue Reconstruction Project. Minnesota Department of Transportation will have booths for the Highway 47/169 Resurfacing Project and the Highway 10 Rum River Bridge and Corridor Project as well. Melissa Barnes, MnDOT North Area Engineer, addressed questions on the Highway 10 Rum River Bridge and Corridor Project, stating SRF is under contract to complete the analysis, vision and preliminary design for the Rum River Bridge Project. The project will include Ferry Street interchange upgrades and the Rum River bridge replacement. The 4th Avenue bridge replacement, Highway 10 bridge rehabilitation across 7th Avenue, and the Highway10 bridge rehabilitation over BNSF railroad are being analyzed as part of the project and may be incorporated. At this time, MnDOT has secured funding for the Rum River bridge replacement. Ms. Barnes shared the proposed schedule and said they would be soliciting input on five interchange alternatives at Highway 10/169 and Ferry Street. She shared about replacing the Rum River Bridge and raising the height for August 26, 2019 (Worksession) Page 2 of 10 maintenance, inspection and recreational purposes and spoke about the rehab at 7th Avenue and BNSF railroad bridge and improvements to the Ferry Street interchange and safety problems westbound on Highway 10. Councilmember Wesp asked about the bridge being in the floodplain and the pool when raised. Craig Hass, SRF Consulting, said the bridge was high enough and would not be an issue. SRF Consulting shared proposed options in the plan to address safety and a multi-phased plan that would allow use of the existing bridge then outlined concerns of intersections facing Pleasant Street, property impacts, size of bridge, retaining wall needs, and costs. He said the last alternative would involve closing accesses to Highway 10. Councilmember Skogquist asked about previous layout options presented. Mr. Nelson said because fire and police use 4th Avenue to get to Highway 10 for emergencies on the west side of the river those options would delay response times. Public Services Director Mark Anderson agreed in terms of going westbound, response times would not be favorable. Mayor Rice said this plan would help with access and was pleased the bridge would stay in place as an overpass. Ms. Barnes said it would be very difficult to accommodate traffic in other spots and difficult to eliminate accesses as certain moves to compensate left turns would still be difficult. Mr. Anderson noted 169 eastbound to Ferry Street was eliminated and would come down Main Street which would not be the best alternative. Councilmember Skogquist shared his frustration and said West Main Street was wider and could handle traffic better than a residential road. SFR Consulting spoke about auxiliary lanes between Ferry and 7th Street and potential noise walls. Ms. Barnes said the accelerated project schedule would be shared at the open house in order to get through the environmental review process and keep the project on track. Mr. Nelson commented about bidding the same month as the City project. Mayor Rice referred to safety concerns at Highway 10/47 and backups onto the exit ramp during rush hour. Ms. Barnes said slowing Fairoak and Thurston has. She noted traffic will stay the same and people will divert to Bunker Lake Boulevard, adding it will be difficult to anticipate what the changes will be. Councilmember Wesp commented how these projects were addressing traffic from the northern suburbs such as Oak Grove, Princeton, and Isanti and hoped legislators were working to address the real problem as it should not be all addressed by Anoka taxpayers but more at the State level. August 26, 2019 (Worksession) Page 3 of 10 Joe MacPherson, Anoka County Assistant Engineer, addressed questions on the 7th Avenue Reconstruction Project. In preparation for the 2022-2023 construction of the US Highway 10/169 Anoka Solution, Anoka County has moved ahead their CSAH 7th Avenue Reconstruction Project in their five-year Highway Improvement Program to 2021. The proposed project limits are CSAH 7 between US Highway 10 and CSAH 116 (Bunker Lake Boulevard). The proposed improvements will improve traffic flow and safety along this section of CSAH 7 during, and after, the US Highway 10/169 improvements. He outlined the proposed improvements in detail and said if this project moves forward, the City will have to provide municipal consent and enter into a Joint Powers Agreement (JPA) with Anoka County. The JPA document will outline the cost of the project based on Anoka County’s Cost Share Policy. Councilmember Skogquist asked about right-of-way acquisition costs. Mr. MacPherson said they would work with cities to acquire right-of-way through donations and friendly condemnations and would obtain appraisals through hearings. Discussion was held about speed limits and the change in the feel of the corridor with driveways not allowing for left turns but instead only be right-in/right-out. Mr. Nelson said these details would be shared with the public at the open house. Mayor Rice explained how the center median provided safety for conflict but wider lanes would do that as well. Discussion was held on the benefits of safety versus being too close to homes. Mr. MacPherson outlined traffic counts on 7th Avenue are currently at 15,000-17,000 per day. With Trunk Highway 10 projected to be 60,000-80,000 in the future, and with Highway 10 being down to one lane in each direction, the rise of 7,000- 8,000 vehicles would mostly occur on 7th Avenue. He said if no median was created to prevent left turns it could result in backups with cars parked in both lanes. Councilmember Skogquist spoke about alternatives for the residents and noted while a U- turn maneuver would be needed this would be better than in other areas. Mayor Rice said there should be a reduction in traffic after the Highway 10 project is completed to around 20,000 cars daily and that this project would provide a 40-year solution and that this road would be wider if we had the room to do so. Mr. MacPherson spoke about through traffic, access, and safety and said this was the best solution overall, then added the road will be a little wider now as it will have shoulders. Councilmember Wesp commented how Anoka residents again will be inconvenienced for the neighbors to the north. Mayor Rice agreed, stating this will be a difficult traffic movement to get accustomed to. Mr. MacPherson said U-turns are a safe maneuver, especially with a signal, and said while some right-of-way acquisition will be needed hopefully they will be able to provide more room for a U-turn. He outlined the timeframe for municipal consent then commented on the utilities lift station relocation discussions that will occur and the open August 26, 2019 (Worksession) Page 4 of 10 house in November with City consent shortly thereafter. He agreed while neighbors will likely be upset. However, this is the best compromise they can provide. Mr. Lee said staff will schedule this topic for the September 23 worksession to recap comments collected from the neighborhood meetings. Mr. MacPherson explained the Bunker Lake Boulevard and Highway 47 improvement study showed 600-700 right-turn movements in the afternoons with a 200-foot long right turn lane now and how all constrict westbound movements with backs up over the bridge with pedestrian accommodations on the north side of the bridge. He said removing this and extending the right turn lane to 400-500 feet long would incorporate north/south dual left turns on Highway 47. Mr. Lee spoke about the Dunham Oaks project and how the project would be presented in late fall or early winter to coincide with the overlay project on Highway 47. Mr. MacPherson said this would be a 2021 project with funding to be determined, but that it should be done sooner than later otherwise funding could be gone. Mr. Lee said they would hold a neighborhood meeting and could demonstrate the project by conducting test areas by placing jersey barriers and a temporary signal to show how the new traffic flows would work before commitment to the project occurs. Mayor Rice confirmed cul-de-sacs were possible and would still provide enough room for emergency vehicles. Mr. Lee said staff was considering prompting a joint MnDOT pedestrian underpass project to the Anoka County Fairgrounds which would eliminate the need for temporary signals and provide safe crossing during the fair. He noted such a project would likely require right-of-way acquisition. Councilmember Barnett asked if there were other major events held at the Fairgrounds or if this project would be just for the annual fair. Mr. Lee said the main purpose would be for the fair but said other events are regularly held such as the upcoming RV show. Mr. MacPherson suggested another improvement could be included that would soften the S-curve to provide easier access to the fairgrounds. Mr. Lee spoke about McKinley Avenue further west and discussions with the City of Ramsey about that project and how they did not participate in their fair share of the Thurston Avenue overpass project. In regards to the Highway 47 project, discussion was held on potential right-of-way impacts, tree loss, trailway on the east side, and the change for residents. August 26, 2019 (Worksession) Page 5 of 10 Councilmember Barnett asked about options for feedback if residents could not attend the open house. Mr. Nelson outlined how comments could be provided on both the City’s and MnDOT’s website or by contacting City Hall. Councilmember Skogquist said the changes will be difficult but some areas have become so bad that the corrections might be understood as a good tradeoff. 3.2 Discussion; 2020 Enterprise Fund Budgets. Finance Director Brenda Smith shared a staff report with background information stating on August 6, 2019, staff presented the proposed Governmental type 2020 budgets and levy to City Council during a work session. Discussions took place regarding the proposed budget and proposed levy and the Council agreed to reduce the proposed 2020 general fund budget and levy by $216,425 thereby reducing the current proposed levy increases to be 4.90% or $344,396. She outlined how the reductions were accomplished through many changes and then noted the discussion would focus on the City’s enterprise funds which included electric, water, sewer, storm water, and liquor stores. Liquor Store Manager Dave Duwenhoegger said the East Store roof replacement cost of $110,000 has been moved back to the 2021 budget to allow the Council more time to determine the future plan of our liquor stores. Mr. Lee said staff would be reviewing a possible west liquor store relocation due to the upcoming Hwy 10 project. Mayor Rice said the East Store has been growing in business. Ms. Smith said that was due mainly to the parking lot expansion. Mr. Duwenhoegger agreed, stating it allowed for larger vehicles with trailers to stop in and was a very good investment. Councilmember Wesp inquired why the Fire Department was onsite recently. Mr. Duwenhoegger said the department is conducting a fundraiser in September with proceeds going to purchase an infrared camera. Councilmember Barrett thanked staff for being very careful with funding and postponing projects such as roofs in order to explore future options. Mr. Lee said the stores’ average net profits were $150,000-$200,000 per year which have totaled approximately $2 million in last 10 years and provide a good funding source for park projects. Councilmember Skogquist said he did not like transferring money into the general fund and while supportive of the park aspect transfer he did not want to depend on those transfers. He agreed to wait this year and revaluate next year but said he did not want to have less than $1 million in reserve. Mayor Rice noted the liquor stores allow us to spend on the community which is much different than a commercial liquor store. August 26, 2019 (Worksession) Page 6 of 10 Ms. Smith reviewed the electric fund budget, projections for usage, 2019 actuals, summary of salaries, depreciation and transfers out and depreciation and working capital increase of $1.2 million with capital improvements. Electric Utility Director Greg Geiger reviewed the proposed capital improvements that included replacing the digger truck for $275,000, substation infrastructure repair of $500,000, SCADA substations of $150,000, and GIS improvements of $43,400. He said the SCADA improvements were much less than projected with work being done in-house and shared the new employee who recently received an award was doing a lot to help save costs. He said consulting costs have been higher with substation improvements but will decrease soon and that other projects were going well. He said he was excited to work with the current team and thanked Council for the opportunity. Mr. Lee complimented Mr. Geiger on working to inspire his team to take on more duties and create more efficiencies. Mayor Rice spoke on the history of the electric fund and asked if there is room for a more efficient station on Bunker Lake Boulevard. Mr. Geiger explained how cities are grouped into public power and how Anoka is not selling electricity but reliability and relationships. Mayor Rice spoke about the importance of retaining staff. Mr. Geiger said we train and treat staff well enough so they do not want to leave. Councilmember Skogquist asked about costs for different meters and capital projects with a new facility or roof upgrades. Ms. Smith said those were part of the five-year Capital Improvement Plan (CIP) and are reevaluated year to year. She said funding would come from shares of electric/sewer/water funds for building improvements but if we rebuild we would have to bond. Mayor Rice noted the electric utility is a dangerous profession and improvements are necessary as well as great staff who are trained in proper procedures. Councilmember Barnett asked if SCADA improvements included in the CIP plan were sufficient going forward. Mr. Geiger said they were unless software changes occur, adding they can tie the two substations together with GIS work. Councilmember Barnett asked about CIP versus maintenance costs and how they were outlined in the budget. Ms. Smith explained how amounts of $5,000 for equipment was depreciated but if over $50,000 it is included in the CIP, adding $265,000 had been budgeted for repairs and maintenance. Councilmember Skogquist inquired about the $1million needed for all utility work for the Highway 10 project. Mr. Geiger commented about a discussion he had with a business owner’s attorney regarding title fee assessment and poles on the rear lot line on private August 26, 2019 (Worksession) Page 7 of 10 property, and added that if the State purchases that land for the project, the City should be paid to relocate those poles. Mr. Lee said MnDOT would outline relocation costs in any joint powers agreement. Councilmember Wesp asked if we would use County funding for relocation as part of the Highway 10 project. Mr. Lee said County funding would provide for utility relocation but said additional costs may be needed for aesthetic improvements. Ms. Smith reviewed cash projections of $6.5 million and projected profit of $2 million. Discussion was held on low-flow programs and conservation improvements. Councilmember Skogquist said some cities were going on their own already and asked how much Minnesota Municipal Power Association would contribute towards these programs and that it would be good to see which programs and vendors were best before doing any hardware purchasing for advance metering restructure. Ms. Smith reviewed the proposed water budget that did not include many changes except for $50,000 for well inspection and repair. Mr. Anderson said we do these inspections biannually to keep the wells in good operating condition. Ms. Smith shared that the water fund had a cash balance of $2.8 million with a profit of $770,000 placed into Parks and a 2020 profit of over $1 million. She said that amount would be put into the Street Renewal Program (SRP) allowing the City to lower bonding amounts to only $8.7 million instead of $9.9 million. Councilmember Skogquist asked about the City of Ramsey’s request to purchase water from Anoka. Mr. Anderson said Ramsey was planning to construct a water treatment plant (WTP) to address the Minnesota Department of Health’s (MDH) concerns about radium levels which was needed five years ago but that there has been no further request to purchase water. Councilmember Barnett clarified the testing standards had changed but not water quality. Mr. Anderson explained the radium levels had changed but noted Ramsey put fluoride in their water and was being pressured by MDH to construct a WTP. He noted because Anoka’s water demands have decreased we were in a position to sell Ramsey water if needed by opening the interconnect. Councilmember Barnett referred to water losses and asked if a third party could help identify solutions. Mr. Anderson said staff routinely hires SEH for water leak detection which are usually found in a gate valve or fire hydrant. He said since Anoka has a lot of sand and is located near two rivers water finds its way to the rivers very easily and while we were at a 20% loss rate with 10% loss being standard we have decreased that loss to 15%. August 26, 2019 (Worksession) Page 8 of 10 Mr. Lee said some of the water loss could be attributed to old meters as the new ones read more accurately. Mr. Anderson agreed, stating new meters will be installed in the commercial/industrial areas next. Councilmember Freeburg asked if water sales are down. Mr. Anderson said water sales were down due to the cool weather. Councilmember Skogquist confirmed $40,000 would be directed to park projects. Ms. Smith said that was correct, adding contributions have been consistent, depending on projects and that they hoped the amount may be even higher. Ms. Smith reviewed the proposed sewer budget that included no increase in disposal charges and an 8.3% increase in sewer costs to build a fund balance for a zero-gravity lift station, especially with new development coming on 7th Avenue and Bunker Lake Boulevard. Mr. Anderson reviewed the proposed CIP items, which included a ¾-ton pick-up truck with plow for $38,000 and 7th Avenue/TH 47 trunk sanitary sewer work for $521,000. He said the truck was 12 years old and a study was needed for a new lift station for 2020 to replace the temporary lift station that has been in place for 30 years. Councilmember Barnett inquired about the increase in personal services of 18%. Ms. Smith explained that was due to shifts in allocation of salaries and was not additional salaries. Mayor Rice spoke about the costs of sewer versus development and having to raise rates and if that was fair for residents to pay for sewer for new development(s). He referred to moving the substation for development and if it is worth the costs as there is no return except for replacing a neighborhood. Ms. Smith noted developers have to pay WAC/SAC fees for sewer installation. Councilmember Freeburg said the developer pays for sewer for their site but once it leaves the site we have to pay for the increased capacity. Mr. Lee said sewer availability charges are charged per unit to pay for trunk infrastructure and sized to accommodate a development’s property. Councilmember Wesp said the alternative is keeping areas as open land which is not good either then commented on 4th Avenue development that will result in increase in new sewer and SRP projects too. Mayor Rice suggested reallocating where this is being charged to as we have to capitalize on the increase in tax capacity. Councilmember Wesp noted that development results in more staffing to respond to residents and other costs associated with that change. August 26, 2019 (Worksession) Page 9 of 10 Councilmember Skogquist noted $20 million development results in $600,000 taxes per year and while the extra tax base covers this, the tradeoff for the taxpayers is worth the cost. Mr. Lee noted 60% of sewer costs go to the Metropolitan Council and that there was less risk in sanitary sewer as there were no other projects than relocation of the sanitary lift station. Councilmember Barnett said she was comfortable with the $323,000 left in the budget. Ms. Smith explained the projected 7.81% increase of .25 cents per 100 cubic feet with no changes proposed to the fixed rates. Ms. Smith reviewed the storm water budget and trunk sewer improvements of $250,000 with an 8.14% increase in projections and a .35 cent rate increase. Mr. Anderson explained the proposed SRP projects were close to the river and the need for water treatment through grip chamber elements, adding the barge has now been removed that had been used for maintenance. Councilmember Skogquist asked about pond maintenance status. Mr. Anderson said the pump was shut off to ensure it was not plugged and the pond would have to be dredged again as it is too shallow and the intake was taking sediment from the bottom. Ms. Smith reviewed the recycling budget and stated Anoka County will reduce reimbursements from SCORE funds for 2020 and beyond, which is used for the recycling coordinator’s position. She commented on the difficulty in different recycling vendors requirements and lack of consistency and that recycling results in little profit. She said the fund had a small balance and would result in a loss of $77,000 for 2020. Councilmember Skogquist asked how much goes towards salary. Ms. Smith said the position is divided 40% for recycling activities and 60% for City administration activities. Mr. Lee said we will likely have to stop holding recycling events and leave those to the County. Councilmember Skogquist asked if that will affect our tonnage results. Ms. Smith agreed more tonnage results in more SCORE funds and while we should do that it cannot be at the cost of unreimbursed staff time. Discussion was held on the state of recycling and contamination. Ms. Smith shared the proposed 17% health insurance increase but noted there would be a zero percent increase for 2020 as long as we agree not to bid for 2020/2021, adding 2021 increase will be no more 12%, possibly less. She said this decrease would result in August 26, 2019 (Worksession) Page 10 of 10 approximately $80,000 that could remain in the budget for the comparable worth study results or be a decrease in the proposed levy from 4.9% levy to 3.76%. Councilmember Barnett said we should hold the funding for now for the comparable worth study. Mr. Lee agreed, stating the amount will remain for the preliminary levy adoption and then review when we know more in December. He noted additional funding of $17,000 was also included for election judge salaries for the 2020 Presidential Nomination Primary and a small adjustment was also made for the annual fire contract. 4. OTHER BUSINESS 4.1 Staff Update. None. 5. COUNCILMEMBERS COMMENTS None. 6. ADJOURNMENT Mayor Rice adjourned the meeting at 7:55 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk