Anoka City Council

October 7, 2019 (Regular) Page 1 of 11 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS OCTOBER 7, 2019 1. CALL TO ORDER Mayor Rice called the meeting to order at 7:03 p.m., followed by the Pledge of Allegiance. 2. ROLL CALL Present at roll call: Mayor Rice, Councilmembers Barnett, Freeburg, and Skogquist. Staff present: City Manager Greg Lee; Police Chief Eric Peterson; Electric Director Greg Geiger; Finance Director Brenda Smith; Community Development Director Doug Borglund; Public Services Director Mark Anderson; City Assessor Scott Varner; and City Attorney Scott Baumgartner. Absent at roll call: Councilmember Wesp. 3. COUNCIL MINUTES 3.1 Minutes of the September 16, 2019, Regular Meeting. Minutes of September 23, 2019, Worksession. Councilmember Barnett noted that Councilmember Wesp was in attendance at the September 23, 2019, Worksession. Motion by Councilmember Barnett, seconded by Councilmember Skogquist, to waive the reading and approve the September 16, 2019, Regular Meeting and the September 23, 2019, Worksession as corrected. Vote taken. All ayes. Motion carried. 4. OPEN FORUM 4.1 Proclamation; Public Power Week, October 6-12. Electric Utility Director Greg Geiger said the Public Power Utilities across the U.S. celebrate Public Power Week the first full week of October every year to help customers and stakeholders understand how they can better engage with their community-owned utility and benefit from all its offering of the public power utility. He highlighted his team and shared that Nick Jensen recently received the Rising Star Award from MMUA. Mr. Geiger shared his appreciation to the Council for their support and thanked his team for their hard work. October 7, 2019 (Regular) Page 2 of 11 Mayor Rice read the Proclamation into the record and thanked the staff who made the public utility work so well. Councilmember Freeburg thanked Mr. Geiger and his team for their work and thanked past Councils who created this utility that gives back into the community. Councilmember Barnett referred to how the public utility gives back to the community and shared how that happens with the work involved locally with the Halloween décor downtown to the nation through service in Florida after Hurricane Dorian. She thanked the team for their work. Mayor Rice said Anoka has many benefits that includes rivers, a downtown area, and a vital electric utility and said residents benefit as owners in more ways than most realize, adding the utility is a wonderful asset to Anoka. 4.2 Police Activity Update. Police Chief Eric Peterson shared the department has been busy with Halloween activities, including the annual zombie pub crawl that is being staffed accordingly to ensure everyone has a safe and enjoyable evening. He said the Halloween night parade will be held on October 19 and said they had reviewed last year’s event for areas of improvements with the goal again to have a safe event for everyone. He shared about the upcoming Anoka Community Anti-Crime Commission breakfast with speaker Eddie Miles from the Minnesota Correctional Facility in St. Cloud. He said the breakfast is the only fundraiser they do and shared the Commission’s work on public education, initiatives, enforcement, and detection and how they regularly donate towards equipment not budgeted and their focus on less-than-lethal tools. Chief Peterson shared an updated on a recent bank robbery at Core Trust Bank and said he was pleased to report that the suspect, an Anoka resident, has been arrested for aggravated robbery for the event in Anoka as well as five others and commended Anoka, Blaine and Coon Rapids investigators for their work in apprehending the suspect. OTHER INFORMATION UNDER OPEN FORUM Senator Jim Abeler shared an update on Haven for Heroes, stating work was going well and that Cottage 3 and the auditorium was asbestos free. He said they were currently working on a roof project then encouraged people to consider hiring residents of Haven, including those with past felonies as they are encountering difficulty finding employment, but have good skills and can work. He thanked staff and everyone for their support and said they work hard to save funds wherever possible. 5. PUBLIC HEARING(S) 5.1 RES/Assessment for Services Against Property with Delinquent Accounts. October 7, 2019 (Regular) Page 3 of 11 RESOLUTION City Manager Greg Lee shared a background report with Council stating City ordinances and State Statutes allow for the certification of unpaid service billings which may include costs associated with weed and diseased tree removal, false alarms, delinquent utility accounts, and other miscellaneous services to the public including removal of public health hazards from private property and recycling contamination. He said they began with 73 properties to be certified but were now down to 58, the majority of which are code enforcement violations. He said City utility accounts delinquent as of August 1 and remain unpaid as of September 1, 2019, will be collected utilizing special assessments with an administrative fee ($35.00) plus interest (4%) charged. He said property owners have been notified via regular mail and upon application, Council may defer the payment of this special assessment for any homestead property owned by a person 65 years of age or older, or retired by virtue of a permanent or total disability, for whom it would be a hardship to make the payments. Certification of the assessment for services will allow the City to collect for services it has provided. Deferment delays collection but provides for eventual collection with accrued interest. Mayor Rice opened the public hearing at 7:21 p.m. Being no comments Mayor Rice closed the public hearing at 7:22 p.m. Councilmember Skogquist confirmed two properties on the west side of 9th Avenue had Coon Rapids utilities and obtained sewer and water from Coon Rapids and were not part of a recent street renewal process. City Assessor Scott Varner said the reason for the assessment was for water service. Coon Rapids did not want to duplicate a water line when the residences where building, so we did it for them. NOTE: By motion from Councilmember Skogquist, which was seconded by Councilmember Freeburg, and by a unanimous vote of the Council, agenda item 9.1 was moved up on the agenda and acted upon at this point. Motion by Councilmember Skogquist, seconded by Councilmember Freeburg, to adopt a resolution certifying the 2019 assessment for services against property with delinquent accounts. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg and Skogquist voted in favor. Motion carried. 5.2 ORD/Recommendation of Existing Gas Franchise Fee with CenterPoint Energy. (1st Reading) October 7, 2019 (Regular) Page 4 of 11 Finance Director Brenda Smith shared background information stating the City reinstated the gas fee on September 8, 2015, effective from January 2016 through December 31, 2019. The gas franchise fee more equitably assigns right of way costs with users, reduces reliance on state aids and taxes and provides funding for the street infrastructure replacement program. The fee provides approximately $382,000 annually to the street renewal program. Annual costs for about a mile of road is about $3.3 million. Direct assessment of properties, state aids, transfers from other funds and interest earnings make up the balance of finding sources. The various utility funds pay for the portion of infrastructure costs relating to the individual utility, i.e.; water, sewer, storm sewer and electric. Through the franchise fee the City is able to charge private companies access to public right of way. The City is responsible for the management of about 66 miles of right of way. The right of way provides land access to the homes, business and other properties in the City. The alternative to a gas franchise fee would be to increase annual assessments or increase the tax levy to include street renewal costs. The City currently assesses R-1 and R-2 street renewal properties at $2,850 per unit plus $15 per foot frontage. Other properties are double that of residential properties. If the City were to consider an additional assessment to cover costs, the assessment for R-1 and R-2 properties would need to double as well as other properties doubling. If the City were to consider an additional tax levy it would impact an average home of $210,000 by $51 a year or $4.25 a month. This same property is currently paying $3.00 a month in a gas franchise fee; staff is proposing an increase to $3.48 per month. Mayor Rice opened the public hearing at 7:25 p.m. Being no comments Mayor Rice closed the public hearing at 7:25 p.m. NOTE: By motion from Councilmember Barnett, which was seconded by Councilmember Skogquist, and by a unanimous vote of the Council, agenda item 9.1 was moved up on the agenda and acted upon at this point. Mayor Rice asked if the residential rate has to be passed through the gas company exactly or can administrative fees be added. Ms. Smith confirmed additional fees cannot be passed on to the residents through the franchise. Councilmember Skogquist said this is an important fee to have for roads as it was a way to spread costs out against tax exempt properties. Motion by Councilmember Skogquist, seconded by Councilmember Freeburg, to hold first reading of an ordinance recommending and increasing the existing gas franchise fee within the City of Anoka, Minnesota (with CenterPoint Energy). Councilmember Barnett asked who sets the metered service fee schedule and how often can it be increased then suggested that it be reviewed annually instead. Ms. Smith said the schedule is set by staff by recommendation until 2023 for review at October 7, 2019 (Regular) Page 5 of 11 that time. She said she was comfortable with the three-year term as it is a lengthy process for CenterPoint to amend as it included a 90-day notice for changes and an annual basis would be difficult to administer. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, and Skogquist voted in favor. Motion carried. 6. CONSENT AGENDA Councilmember Skogquist inquired about the 2020 drilling amount of $12,867 in the Bills List. Public Services Director Mark Anderson said the invoice was from Geotech, the boring contractor they use for exploration work but will confirm the details of the charge. Motion by Councilmember Freeburg, seconded by Councilmember Skogquist, to approve Consent Agenda 6.1 through 6.5. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. 6.3 Recommended Issuance of an LG240B Bingo Permit; Anoka Knights of Columbus, November 15, 2019 at Church of St. Stephen’s. 6.4 Recommended Issuance of an LG220B Gambling Permit (Raffle); Church of St. Stephen’s, November 23, 2019. 6.5 Halloween Tent Event, October 25-26, 2019. Vote taken. All ayes. Motion carried. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 7.1. Planning Items: None. 8. PETITIONS, REQUESTS AND COMMUNICATION None. 9. ORDINANCES AND RESOLUTIONS 9.1 RES/Adopting Assessment for Services Against Property with Delinquent Accounts. October 7, 2019 (Regular) Page 6 of 11 ACTED UPON AFTER THE PUBLIC HEARING 9.2 ORD/Recommendation of Existing Gas Franchise Fee with CenterPoint Energy. ACTED UPON AFTER THE PUBLIC HEARING 9.3 ORD/Christian Hill Historic District Boundary Amendment. (1st Reading) Associate Planner Clark Palmer shared that the City established the Christian Hill Historic District in 2006 as an area of the greater Christian Hill Neighborhood including 15 properties. The historic district is a special overlay district where adopted heritage preservation regulations apply to properties within the district. The purpose of the heritage preservation district is to provide for the preservation of buildings, lands and areas that possess historical and architectural significance to the City and its residents. The heritage preservation regulations help to accomplish this by encouraging the use of traditional building materials and designs in renovations of historic buildings, as well as encouraging the rehabilitation of historic buildings instead of demolition. The current district consists of the following properties: 1802 3rd Avenue, 1803 3rd Avenue, 1808 3rd Avenue, 1809 3rd Avenue, 1815 3rd Avenue, 1816 3rd Avenue, 1821 3rd Avenue, 1828 3rd Avenue, 1832 3rd Avenue, 1801 4th Avenue, 1815 4th Avenue, 1821 4th Avenue, 321 Madison Street, 230 Monroe Street, and 334 Monroe Street and noted that for several years it has been an annual goal of the Anoka Heritage Preservation Commission (HPC) to expand the Christian Hill Historic District. In 2015 and 2017, the HPC held neighborhood meetings with residents to see if additional property owners within the greater Christian Hill Neighborhood would be willing to be part of a petition with the goal of expanding the existing district. One outcome from those meetings was the identification of several property owners willing to be part of an expanded district, which include: 311 Monroe Street, 314 Monroe Street, 319 Monroe Street, 320 Monroe Street, 320 Madison Street, and 327 Monroe Street. Mr. Palmer said in accordance with City Code, the City received a petition in support of the proposed amendment from a majority of property owners within the existing and proposed district and the HPC held a public hearing on September 10, 2019, at which the HPC voted to recommend to the City Council approval of the proposed amendment including the six above-mentioned properties. Councilmember Freeburg said the historic district is very successful and was pleased with this outcome as it will encourage property owners to rehab homes properly instead of nailing cedar or metal over historical brick for example. Councilmember Barnett asked if there were any benefits to property owners having this designation. Mr. Palmer said the designation ensures the character of the neighborhood is retained and said property values do better during times of economic recession as they are more stable which adds to a homeowner’s quality of life. October 7, 2019 (Regular) Page 7 of 11 Councilmember Skogquist shared he has lived in this neighborhood his entire life and said property owners are prideful and this designation allows for investment because it is a special area. He noted that 324 Monroe was not included as the property owner did not think the home was historic because it is a duplex and said he did not anticipate the owner making big changes but wanted to make sure a property stuck in the middle would not be out of character or be demolished because it had a negative impact. He said he liked the HPC’s idea for a southern district as there were many historic homes between Madison and Jefferson. Mr. Palmer said the HPC worked throughout the process to ensure no one felt forced to participate, even though the ordinance says we could because they wanted buy-in. He said we can add non-contributing properties but noted that when a demolition permit is applied for the historic nature of a structure would be taken into consideration and made part of the review. Councilmember Barnett asked if the designation stays with the property if sold and would buyers be notified they were purchasing in a historic district. Mr. Palmer said the designation would be recorded at Anoka County and would show on a title search. Councilmember Barnett said she understood all property owners were included voluntarily and that they understood the details and restrictions and control over their homes but said she did not agree with the additional value and would not personally be interested in participating. Mr. Palmer agreed those feelings were echoed by people throughout the process who were not interested in participating and having additional regulations. Motion by Councilmember Freeburg, seconded by Mayor Rice, to hold first reading of an ordinance amending the Christian Hill Historic District. Upon a roll call vote: Mayor Rice, Councilmembers Barnett and Freeburg voted in favor. Councilmember Skogquist abstained. Motion carried. 9.4 ORD/Purchase Agreement for City’s Sale of 4th/Rum River Site. (2nd Reading) ORDINANCE Community Development Director Doug Borglund shared the City Council held a first reading at its September 16, 2019 regular meeting of the purchase agreement ordinance and had no concerns, noting there have been no changes since the first reading was held. The City has been in discussions with Weekley Homes LLC regarding property known as City Development Site #2 or the 4th and Rum River development site. The buyer, David Weekley Homes LLC, is planning on constructing urban style, detached, association-maintained townhomes. The parcel October 7, 2019 (Regular) Page 8 of 11 is listed for $3.40 a square foot, $146,762 per acre, or a total sale price of $816,000.00. The City has received an offer of $3.40 per square foot, $146,762.00 per acre, or a total of $816,000.00 for the 5.56-acre parcel contingent upon the City Council’s approval to enter into a purchase agreement. He shared the proposed schedule with closing to be determined per the purchase agreement. Councilmember Skogquist said this project would be a good fit as it had good quality and price range with density and location adjacent to the historic cottages and woods. He thanked the developer for being responsive to the Council’s earlier concerns. Motion by Councilmember Skogquist, seconded by Councilmember Barnett, to hold second reading and adopt an ordinance to convey real property to Weekley Homes, LLC. Mayor Rice said this was a spectacular property with the trail and river and takes advantage of those assets and while the project would likely appeal to a particular homeowner as the homes are close in proximity it was a popular style and would do well. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg and Skogquist voted in favor. Motion carried. 9.5 RES/Electric Utility Easement Agreement for 435 Main Street. RESOLUTION – POSTPONED INDEFINITELY City Attorney Scott Baumgartner shared a background report stating the City is obtaining an overhead utility easement and right-of-way over and across the easement areas with access for maintenance, repair and replacement of overhead lines and power poles from Main Motors Sales Company located at 435 Main Street. He referred to a late requested change from Main Motors attorneys that he could not accept as it limited the City too much and put us in breach of easement. He explained the request included no other utilities be located in the right-of-way that would include items such as small cell towers and others. He suggested the Council postpone consideration of the item to allow staff to work with the attorneys more and that he hoped it could be on the next Council agenda. Motion by Councilmember Freeburg, seconded by Councilmember Barnett, to postpone indefinitely consideration of a resolution approving the obtainment of an easement at 435 West Main Street for utility purposes. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, and Skogquist voted in favor. Motion carried. 10. UNFINISHED BUSINESS October 7, 2019 (Regular) Page 9 of 11 None. 11. NEW BUSINESS 11.1 Consideration of New Policy; City Council Remote Meeting Attendance. Mr. Palmer shared that with new emerging communications technology, electronic audio and video meeting attendance options have evolved along with the laws that govern such attendance. He said the City is seeking to develop guidelines that allow members of the Anoka City Council to attend and participate in meetings of the Anoka City Council by video or audio means as authorized by Minnesota Statute Chapter 13D. He shared the proposed Remote Meeting Attendance Policy and Procedures with highlights in particular that included Councilmembers to be allowed to remotely attend meetings of the Anoka City Council and be considered present at the meeting for purposes of determining a quorum and for participation; no more than one (1) Councilmember may remotely attend and participate in any single meeting at the same time; Councilmembers may attend a maximum of four (4) meetings remotely per calendar year; and advanced notification of at least 48 hours or as soon as possible is required to allow for public notification. He said the policy established procedures for conducting meetings with remote participants including the role of the Mayor or person chairing the meeting and how information would be recorded in the meeting minutes. Councilmember Skogquist asked if the 48-hour notice was sufficient. Mr. Baumgartner said it was more to provide opportunity for staff and QCTV to set up the interactive connection and noted the policy was needed first to match requirements of the Statute, adding there are two ways to participate, one being interactive television and the other by telephone. He referred to recent Statute changes that allowed for a Councilmember who was a member of the military to participate remotely if deployed but unable to be in a public setting. Councilmember Barnett inquired about the logistics of set-up and thanked everyone for their work, adding that no more than four absences were appropriate because she did not want to see a disconnect on a continual basis. Mr. Palmer said staff was working with QCTV on options that included both picture-in- picture or monitor at the dais. Mayor Rice asked when will be the first time it is available to use this technology. John Sommers, QCTV, said the technology is available but we wanted the policy in place first so staff will now begin review of three proposals after which installation and testing will occur which could take 12 weeks to complete. October 7, 2019 (Regular) Page 10 of 11 Councilmember Skogquist asked if Ramsey was complete with their installation and ready to broadcast remotely. Mr. Sommers said Ramsey is not quite done and that Anoka will likely be ready before Ramsey. Councilmember Barnett said it will be important to inquire as far in advance as possible about remote participation and suggested guidelines be developed for connecting from the remote site. Mr. Sommers discussed what type of equipment would be needed on the remote end and that who would provide that equipment would need to be decided. Motion by Councilmember Skogquist, seconded by Councilmember Freeburg, to adopt the policy on City Council remote meeting attendance. Vote taken. All ayes. Motion carried. 12. UPDATES AND REPORTS 12.1 Tentative Agenda(s). The Council reviewed the tentative agendas of the upcoming Council meetings. 12.2 Staff and Council Input. Mr. Anderson shared about upcoming neighborhood meetings for SRP and SSIP street projects that will be held on October 16 at Green Haven Golf Course and Event Center, October 16 for the 2020 Bob Ehlen Area SRP Project, and October 17 for the 2020 Monroe Area SRP. He said MnDOT will also hold a Corridor Improvement meeting on October 23 at City Hall then shared the virtual golf at Green Haven construction will be finished next week with installation of equipment the following week. Councilmember Barnett encouraged residents to participate in the annual Halloween blood drive October 8 at Fifth Avenue Dental. 13. ADJOURNMENT Councilmember Freeburg made a motion to adjourn the Regular Council meeting. Councilmember Barnett seconded the motion. Vote taken. All ayes. Motion carried. Time of adjournment: 8:13 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: October 7, 2019 (Regular) Page 11 of 11 Amy T. Oehlers, City Clerk