Anoka City Council

December 16, 2019 (Regular) Page 1 of 19 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS DECEMBER 16, 2019 1. CALL TO ORDER Mayor Rice called the meeting to order at 7:05 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; Electric Director Greg Geiger; Community Development Director Doug Borglund; Golf Superintendent Mike Brual; Finance Director Brenda Springer; Public Services Director Mark Anderson; and City Attorney Scott Baumgartner. Absent at roll call: None. 3. COUNCIL MINUTES 3.1 Minutes of the November 25, 2019, Worksession. Minutes of the December 2, 2019, Regular Meeting. Councilmember Skogquist requested the following corrections on the December 2, 2019, Regular Meeting: Page 2, Paragraph 2: “Councilmember Skogquist asked where is the call center…” and requested that Finance Director Brenda Springer’s name be changed throughout. Councilmember Barnett requested following correction on the December 2, 2019, Regular Meeting: Page 3, Paragraph 2: “Mr. Nelson noted staff hosted an engagement meeting…” Motion by Councilmember Skogquist, seconded by Councilmember Barnett, to waive the reading and approve the November 25, 2019, Worksession as presented and the December 2, 2019, Regular Meeting minutes as corrected. Vote taken. All ayes. Motion carried. 4. OPEN FORUM December 16, 2019 (Regular) Page 2 of 19 4.1 Cross Country Ski Update. Mike Brual, Golf Course Superintendent, shared in 2012 discussion started and the City ultimately made the decision to support cross country skiing at the Green Haven Golf Course and Event Center as well as at the Anoka Nature Preserve. Staff researched various other venues around the City and questioned them about equipment, maintenance and the techniques of grooming snow. Subsequently, we purchased the snowmobile, groomer, trailer and gear to provide this new service in November of 2013. Now in our seventh year we have purchased a “snow- roller” to help compact new snow and to build and maintain a base throughout the ski season. We also encourage the Anoka High School Nordic Team to utilize the facility for training and events as their schedule allows. Skiing opportunities are promoted and advertised on the City’s website, Facebook, Twitter and Instagram accounts, along with the Electronic Reader Board, City View newsletter, Anoka Community Resource & Residents’ Guide and Skinny Ski. The decision to get into cross country skiing meant we had to purchase a snowmobile, groomer, trailer, snow roller, operator gear and signage along with utilizing a truck from our current fleet and hire seasonal staff to groom the trails. Councilmember Wesp asked about walking on the groomed trails in the Anoka Nature Preserve and how many use the trails. Mr. Brual said if possible, they would like to see people walk on the sides to preserve the trails as much as possible, adding this is why frequency of grooming was so important. Councilmember Barnett confirmed there was no fee at either location then asked about promotional marketing and suggested more be done similar to Bunker Hills and noted information should be included on Explore Minnesota and how some of the website links do not work, adding she loved the partnerships with the high schools. 4.2 Police Activity Update. Police Chief Eric Peterson reported the annual Christmas pub crawl was held last weekend and he was pleased to report no incidents occurred. He reported 47 accidents have occurred in December due to road conditions and asked for the public’s cooperation in driving with extra caution regarding black ice and reminded viewers to arrange for safe rides home during the holiday season. Chief Peterson shared he will be traveling to support Captain Andy Youngquist who is graduating from the FBI Academy, stating he was proud to have him representing Anoka then added he will be visiting the National Law Enforcement Museum that included an exhibit on Anoka’s very first K-9 Officer King and former Police Chief Revering who was a pioneer in K-9 service in the United States. He wished the residents a happy holiday season by all in the Police Department and thanked Council for their support. December 16, 2019 (Regular) Page 3 of 19 Councilmember Barnett asked for an update on the recent safety seminar. Chief Peterson said he would share an update with Council soon. OTHER INFORMATION UNDER OPEN FORUM Rachel Mattson, 2921 Verndale Avenue, shared information regarding nuisance calls her family had been cited with that included welfare checks which should not be considered a nuisance call and have now resulted in pending eviction from her home. She said she tried to speak with Officer Schley and Chief Peterson regarding the situation but was unsuccessful then requested Council review the information and rescind the eviction order as it cannot be rescinded without police being at the mediation. Mayor Rice said the Council cannot take action this evening but assured her staff would contact her to review her information, adding only the landlord can evict, not the City and said Chief could speak with her about a resolution. Chief Peterson clarified the Police Department reports information to landlords but does not evict but would be happy to meet with Ms. Mattson regarding her situation. 5. PUBLIC HEARING(S) 5.1 2020 Combined Street Improvement Project; Public Improvement Hearing (Monroe Area SRP Project). RES/2020 Combined Street Improvement Project; Order Project and Authorize the Preparation of Plans and Specifications (Monroe Area SRP Project). RESOLUTION Engineering Technician Ben Nelson shared a background report on the project stating open houses were held to solicit input on operations of the local businesses and educate property owners on the proposed project. Overall, the residents and businesses were in favor of the project and on October 21, 2019 City Council adopted a resolution approving the feasibility report and setting the public improvement hearing. The streets and alley proposed to be included in the 2020 Monroe Area SRP project portion of the 2020 Combined Street Improvement Project is the area bounded by East Main Street to the north, Monroe Street to the south, the Rum River to the west, Fifth Avenue to the east. Mr. Nelson reviewed the proposed enhanced streetscaping and infrastructure changes and outlined the total project costs of $3,143,000 and funding sources and stated assessments are proposed to each benefiting property within the project limits, and the assessments for the project will be according to the Street Reconstruction Assessment Policy adopted by City Council in October of 1999. The street assessment rate will consist of a $3,580 residential street unit assessment and a $19 per lineal front footage street assessment. These are the rates set by City December 16, 2019 (Regular) Page 4 of 19 Council in 2019 for each single-family residential property zoned or used as R-1 and R-2. In addition, each residential property will be assessed for a water ($1,290) and sanitary sewer ($1,180) service that is being installed from the new mains to each property line. The typical 80-foot residential lot assessment would be $7,570 and assessments would be levied over a 10-year period at a 5% interest rate. The annual payment for a $7,570 assessment is approximately $986. For all other properties, including but not limited to, four or more-unit residential properties along with commercial, industrial, school, and church properties the assessment is double the residential rate at $7,160 for the street unit assessment and $38 per lineal front footage street assessment. In addition, each property will be assessed for a water service ($2,580) which is double the residential rate and sanitary sewer ($1,180) service that is being installed from the new mains to each property line. The assessment varies depending on property size and use. Full utility assessments are only levied if the utility service is actually replaced and older than 10 years. Mr. Nelson reviewed the proposed schedule with construction completion by November 1, 2020, then added a staging open house for the project is scheduled at Green Haven Golf Course on January 9 where staff will display staging boards, answer questions, and address public parking in City lots. Mayor Rice spoke about the number of non-residential properties in this area and asked about their assessment rates. Mr. Nelson clarified the rates for non- residential properties and said they are only assessed for both sides if they front both sides in the project limits. Mayor Rice opened the public hearing at 7:34 p.m. Debbie Muklow, Champlin and Anoka business owner, said her lease outlines that she pays all property taxes and with her business being on a corner lot the assessment is high. She asked about the time period for payment and shared concerns about parking and access during construction. Mr. Nelson said the amount is levied over 10 years at 5% and placed on property taxes and that the contractor will work with businesses to maintain access throughout the project, noting the project is staged one block at a time and more information will be shared with the Anoka Business and Landowners Association. Craig Murphy, 222 Monroe Street and Anoka landlord, asked if everyone is paying the same and referred to some tax-exempt properties and the fairness to businesses. Mr. Nelson said all properties are assessed by property type and no one is exempt except nonprofit, adding some have been previously assessed in 2016 and can share the assessment roll with Mr. Murphy. Ms. Muklow said this is a short timeframe for such a large assessment amount then commented on how some businesses may not be able to continue due to large payments. December 16, 2019 (Regular) Page 5 of 19 Being no comments Mayor Rice closed the public hearing at 7:47 p.m. Mayor Rice stated action would occur after Item 5.2 5.2 2020 Combined Street Improvement Project; Public Assessment Hearing (Monroe Area SRP Project). RES/2020 Combined Street Improvement Project; Adopt Assessment Roll (Monroe Area SRP Project). RESOLUTION Mr. Nelson shared a background report stating on October 21, 2019 City Council adopted a resolution approving the feasibility report and setting the assessment hearing for on December 16, 2019. The purpose of the assessment hearing is to hear any objections to a property owner’s proposed assessment and to consider adoption of the assessment roll for the 2020 Monroe SRP Area portion of the 2020 Combined Street Improvement Project. All of the benefitted property owners were sent a notice for the assessment hearing and the notice was published in the City’s legal newspaper. The assessment roll and the property frontage maps for the proposed project were shared. The assessment roll includes a list of all property owners with their individual proposed assessment amounts. A property owner can pay all or part of their assessment with no interest charges until November 15, 2020. After this, any balance remaining will automatically be certified to Anoka County for collection on the property taxes. The City also provides for the deferment of special assessments for qualified applicants. Any person who objects to his/her assessment amount may appeal to district court within 30 days after the adoption of the assessment roll by City Council by filing a written objection signed by the property owner either prior to the meeting or at the hearing. The total estimated cost of the 2020 Combined Street Improvement Project is $8,284,000 of which $3,143,000 is associated to the 2020 Monroe SRP Area Project portion of the 2020 Combined Street Improvement Project. The total assessments to benefiting properties are proposed to be $620,369.24. It is staff’s opinion that all of the properties shown on the assessment roll receive benefit from the project that exceeds the shown assessment amounts. Mayor Rice opened the public hearing at 7:50 p.m. Being no further comments Mayor Rice closed the public hearing at 7:51 p.m. NOTE: By motion from Councilmember Wesp, which was seconded by Councilmember Freeburg, and by a unanimous vote of the Council, agenda items 9.1 and 9.2 was moved up on the agenda and acted upon at this point. Councilmember Skogquist spoke about the assessment roll and the project being substantially complete before the Anoka Halloween parade then asked about concerns from neighbors on past contracts and damage from equipment and how December 16, 2019 (Regular) Page 6 of 19 to address this as there are fairly old properties in this area. Mr. Nelson said staff can research options but noted it is important to get proper road compaction and said all event dates will be included and addressed in the contract. Councilmember Barnett said she liked the bump-outs on 3rd and 4th Avenues and thanked Public Works because she understood they resulted in extra work for plowing then noted the bump-outs did not eliminate any legal parking spaces, only those that were not intended for parking. Motion by Councilmember Barnett, seconded by Councilmember Freeburg, to adopt a resolution approving the 2020 Combined Street Improvement Project; order project and authorize preparation of plans and specifications (Monroe Area SRP Project). Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. Councilmember Skogquist asked about properties on an alley that were charged for street unit assessment. Mr. Nelson said standard practice is unit assessment only and not front footage for properties on alleyways then spoke about utility assessments for sewer and water in 4th and 5th Avenues. Motion by Councilmember Freeburg, seconded by Councilmember Barnett, to adopt a resolution adopting the assessment roll (Monroe Area SRP Project). Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 6. CONSENT AGENDA Motion by Councilmember Wesp, seconded by Councilmember Skogquist, to approve Consent Agenda 6.1 through 6.3. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. 6.3 Approving a Senior/Disable Deferment for Wallace and Donna Medin, 758 Polk Street. Vote taken. All ayes. Motion carried. December 16, 2019 (Regular) Page 7 of 19 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 7.1. Planning Items: 7.1.A. ORD/American Club Senior Cooperative Planned Residential Development. (1st Reading) Community Development Director Doug Borglund shared a background report stating Gramercy Development is requesting approval of a Planned Residential Development/Planned Unit Development (PRD/PUD) and Site Plan Review for the property located on Jacob Lane allowing Senior Cooperative Residential Building. Gramercy Development is proposing the construction of 87-unit Senior Cooperative Residential Building. The site is currently used by the City for the existing park/golf maintenance building and has planned the site’s redevelopment since the adoption of the Greens of Anoka Redevelopment Plan in 2012. The City has entered into purchase agreement to sell the property to Gramercy Development contingent upon development approvals and achieving 60% presales for construction financing. For PRD/PUD’s, the various zoning regulations and requirements (e.g. use, building setback, height, etc.) which may apply to the original zoning district may be considered as guidelines only and may be departed from in the approval of a planned unit development. The Planning Commission reviewed the Site Plan and Planned Residential Development and held a public hearing at its December 3, 2019 regular meeting. No one from the public spoke and the Planning Commission by 6-0 vote recommended approval of the Planned Residential Development as presented with the following conditions of approval: 1. PRD allows a reduced rear setback at 27 feet. 2. PRD allows an increase in building height to 54 feet/4 stories. 3. PRD allows for exterior architectural exterior materials as proposed. 4. PRD allows for parking stall count at an average of 1.72 stalls per unit. Councilmember Freeburg asked the applicant to review the purchase process for those interested in a unit. Gramercy representative, shared the process included finance purchase of shares then spoke about utilities, taxes, and association fees. Councilmember Barnett said three feet was not a substantial height concern and said the project will flow well and said she liked the exterior design and how every unit gets a balcony. She said her only concern was parking of 1.72 stalls per unit and asked about potential parking partnerships or extending parking at Green Haven. Mr. Borglund said HealthPartners is full during the day and with golf and events parking at Green Haven is unlikely. December 16, 2019 (Regular) Page 8 of 19 Councilmember Skogquist suggested a ratio of 30% of units having additional surface parking and asked about the lift station and inclusion of fiber. Mr. Borglund said staff was getting cost estimates from Zayo for fiber. Mr. Nelson shared costs for a lift station of $230,000 and spoke about options including gravity system and impacts to the golf course. Councilmember Freeburg suggested the community garden not be surrounded by trees to ensure enough sun reaches the plantings. Mayor Rice shared concerns about parking not for residents but for visitors as this will be an active senior building. Motion by Councilmember Freeburg, seconded by Councilmember Barnett, to hold first reading of an ordinance rezoning to a Planned Residential Development – American Club Senior Cooperative. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 7.1.B. ORD/Westgate Senior Living of Anoka Planned Residential Development. (1st Reading) Associate Planner Clark Palmer shared a background report stating Tollberg Homes is proposing to develop the property located at the northeast corner of Reed Avenue/Cutter Street and 511 Cutter Street with approximately a 22,000 square-foot, one-level, 32-unit, assisted living and memory-care building. The building will consist of 18 assisted-living units and 14 memory-care units. A surface-level parking lot of 25 spaces is proposed at the front of the building adjacent to Cutter Street which will provide adequate parking for residents and staff. Significant landscaping will surround the building including the preservation of 7 existing trees and the planting of 26 new trees and a number of shrubs, perennial flowers and grasses. The buildings will be wood framed with exterior finishes resembling a single-family residential design. This includes LP lap siding and shakes with a textured wood grain pattern and cultured stone surrounding the building. He shared other exterior architectural details and said the property is currently undeveloped with the exception of the single-family rental property located at 511 Cutter Street which is proposed to be razed and the property re-platted. If moved to second reading, consideration of the CUP, Site Plan Review and Preliminary Plat will occur at the January 6, 2020, meeting. Staff finds all zoning codes met with exception to the front yard setback and architectural. Councilmember Freeburg asked about the property on Reed Avenue being demolished and 511 Cutter Street and how operation of the facility works or will December 16, 2019 (Regular) Page 9 of 19 be sublet. Mr. Palmer said the applicant will be entering into a contract for deed for the current property with Tollberg contingent upon Council approvals. Jerry Tollefson, applicant, management agreement with firm that specializes in memory care and properties and will be owner of building but management with another firm. Councilmember Skogquist asked about Reed Avenue and the area that is not City property and if there should be an easement in the southeast corner for the road. Mr. Palmer said it does not appear the road would significantly encroach and no easement was in place or would be needed. Mr. Nelson confirmed a memorialized easement would allow the road to stay and that there was no future plan for Reed Avenue in the City’s CIP but when done could relocate to the west some and deed a new easement along the property line. Councilmember Barnett asked about the 2030 Comprehensive Plan and if this project makes sense going into future Plans and should demographics change and senior housing is not needed. Mr. Borglund said senior projects are everywhere and that this housing will be needed for the next 15-20 years, noting banks are still financing these projects because they offer minimal risk. Mr. Tollefson said extensive studies show that people are living longer and outliving their health and the need for this housing will continue. Councilmember Freeburg asked about communal dining and unit kitchens and said he was excited about this project as it would be compatible with the neighborhood and not intrusive, and fit well on this site. Mr. Tollefson said a neighborhood meeting was held and concerns were raised about traffic but noted most residents will not be driving, adding research shows the proposed parking is adequate for this type of project. He said their firm has been in the area for 50 years and was not going anywhere, adding they want to be a good neighbor and that most traffic will be for deliveries. Councilmember Barnett asked for similar examples of projects. Mr. Tollefson said Hampton Companies constructed similar projects and said they have the experience for a successful project. Councilmember Freeburg said he respected the developer and was supportive of the project as it provided a great transition to the neighborhood. Motion by Councilmember Freeburg, seconded by Councilmember Wesp, to hold first reading of an ordinance rezoning to a Planned Residential Development – Westgate Senior Living of Anoka. December 16, 2019 (Regular) Page 10 of 19 Mayor Rice spoke about parking concerns, maintenance, staffing levels and how parking ratios were not realistic. He thanked the applicant for their work on another project by including additional exterior elements not required by Code but said he believed this project would require more parking. Mr. Lee said staff would review proof of parking prior to second reading, adding any concerns could be tied to the CUP. Councilmember Freeburg suggested on street parking as one solution. Councilmember Skogquist stated parking may not be a problem but they need to be prepared then echoed comments about changing demographics and not wanting to see old, worn buildings in the future and suggested a discussion before any other similar projects are proposed. Mayor Rice suggested possible college dorm use as one solution should the model change and said portions of Reed Avenue are very steep and raising these four feet will be good then thanked the developer for investing in Anoka as hoped this will be a practical use for many years to come. 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/2020 Combined Street Improvement Project; Order Project and Authorize the Preparation of Plans and Specifications (Monroe Area SRP Project). ACTED UPON AFTER THE PUBLIC HEARING 9.2 RES/2020 Combined Street Improvement Project; Adopt Assessment Roll (Monroe Area SRP Project). ACTED UPON AFTER THE PUBLIC HEARING December 16, 2019 (Regular) Page 11 of 19 9.3 RES/Approving Plans and Specifications and Advertisement for Bids for Golf Maintenance Facility. RESOLUTION Director of Public Services Mark Anderson shared a background report stating in 2012, the City of Anoka completed the Greens of Anoka Redevelopment Plan, which identified many areas of the City as future development sites. The existing Parks Service Center located at 641 Jacob Lane (641) is one of those identified development sites. In anticipation of future development, City Staff engaged Oertel Architects to create “Shovel-Ready” Plans and Specifications for the new Golf Maintenance Facility. On October 15, 2019 the Planning Commission reviewed the plans and held a public hearing for the Golf Maintenance Facility project and recommended approval. On November 4, 2019, City Council approved a Conditional Use Permit and Site Plan for the Golf Maintenance Facility project. Further, the LRRWMO has reviewed the proposed plans and granted conditional approval. Development interest now presents itself in 2019 with Gramercy Development Companies proposing the “American Club” with required sales goals to be met prior to any construction beginning. The new Golf Maintenance Facility (GMF) will be located on the northeast corner of the Golf Course near the intersection of Green Haven Road and State Street. Project schedules and coordination between the construction of the new GMF, the sale and demolition of the existing the 641 property and construction of the new Gramercy project will be very important. Ultimately, the 641 Building will need to be demolished and Golf Maintenance operations relocated before the Developer can begin their construction project. In a perfect scenario, this transition would occur in December of 2020, which would allow the Golf Maintenance operations to move only once and directly into the new GMF. This schedule makes the assumption that the City of Anoka will construct the new GMF speculatively while Gramercy continues their marketing and sales efforts. When the Gramercy reaches their Sales goal/requirement, they will likely want to begin construction as soon as possible. If this should occur before December of 2020, the City would have to implement an “Interim Plan”. We have discussed several options for the Interim Plans and they will have their challenges. Mr. Anderson reviewed the project schedule with completion by March 2021 then spoke about the shop area ceiling heights and need for distance for vehicles, clear story windows for natural light, significant expense with stepped roof and snow loading money saved on precast design. He shared material samples and how a sample wall will be delivered onsite for approval prior to any construction. Councilmember Wesp asked about Gramercy’s plans and bid costs and how long the bids are good for. Mr. Anderson said bids would be good for 30 days and said staff is confidence in Gramercy and their product and recommends we move forward, adding while there is time to change direction if it is not Gramercy it will be someone else and the City should be prepared to move. December 16, 2019 (Regular) Page 12 of 19 Councilmember Barnett commented on the approval from LRRWMO and how it was actually an open permit pending more information and if that affected the City from going out for bid. Mr. Anderson said the City has conditional approval with work still being done by the civil engineer that should be complete soon. Mr. Nelson responded the civil engineer had to resubmit some information based on drainage rate control for storm ponding for a 100-year event but anticipated they will have approval for the January meeting. Councilmember Freeburg said while this action requires a leap of faith, he felt there was no other choice and believed the economy was good and the developer would be successful. Mayor Rice asked what percentage of the project has to be committed before construction begins. Mr. Borglund said the threshold was 60% and that the applicant had 22 units sold to date and had to reach 52 units in order to obtain full funding. He said they hoped to tear down the building in June 2020 but would prefer to wait to move once until substantially complete. Councilmember Wesp said he believed the units sold to date was only eight but added the $4.2 million project cost would only increase if we wait. Mayor Rice agreed, stating a project needs to be built so we can sell this parcel. Motion by Councilmember Wesp, seconded by Councilmember Freeburg, to adopt a resolution approving plans and specifications and advertisement for bids for the golf maintenance facility and set bid date. Mayor Rice asked about bonding for the building and if the funds can be used for any other project should this one not move forward. Finance Director Brenda Springer stated the City can levy up to $45 million and currently only bonded for $4 million and was in a good debt position for this project. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.4 ORD/Amending Lease Agreement with Anoka County for Real Property and Facilities at the Rum River Human Services Center Property – 3300 4th Avenue. (1st Reading) Mr. Lee shared a background report stating in 2017 the Council adopted an ordinance approving a lease agreement with Anoka County for the property and facilities located at 3300 4th Ave (The Cottages). Anoka County has proposed an amendment to the lease to address the issue of subletting and assignments. The lease will be amended to change the subletting/assignment from Eagles Healing Nest to Haven for Heroes and this action was merely a housekeeping item. December 16, 2019 (Regular) Page 13 of 19 Motion by Councilmember Freeburg, seconded by Councilmember Skogquist, to hold first reading of an ordinance Authorizing an Amendment to The Lease with Anoka County of Property and Facilities at The Rum River Human Center 3300 4th Ave Anoka Lease of Property from Anoka County “The Cottages”. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.5 ORD/2020 Master Fee Schedule. (2nd Reading) ORDINANCE Mr. Lee shared a background report stating annually staff reviews the fee schedule and determines whether or not a recommendation should be made to the Council to adjust the fees the City charges for services and licenses. Fees are to be based on the actual costs to provide the service, issuance/enforcement of a license or code regulation, background checks, materials, time, etc. At the December 2, 2019 meeting, Council discussed revisions to the rental licensing section and the recommended changes have been added to second reading. In addition, Utility Director Greg Geiger also added a fee for a Solar Permit which is listed in the Electric section of the schedule. Councilmember Wesp referred to a resident question about franchise fees and tax rates and why they were not included in the fee schedule. Ms. Springer responded franchise fees are by agreement as a contract with a public or private utility to gain access into the right-of-way to help pay for roads and is not a fee a resident would pay but passed by the Council through a resolution. Mr. Lee noted AMU fees were not passed on to residents and that the City had three franchise agreements in place. Motion by Councilmember Freeburg, seconded by Councilmember Wesp, to hold second reading and adopt an ordinance establishing a fee schedule for the City of Anoka, effective January 1, 2020. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.6 ORD/Amendment to City Charter, Section 2.05; Vacancies in Elected Office. (1st Reading) City Attorney Scott Baumgartner shared a background report stating at the past couple of Charter Commission meetings, the Commission discussed changes to the City Charter relating to vacancies in elected office and salaries of the Mayor and Councilmember and outlined their recommendation on changing Section 2.05 December 16, 2019 (Regular) Page 14 of 19 Vacancies in Elected Offices. He explained the proposed language change as current language was unclear as to the wording “If the Council is unable to agree on an appointment to fill the vacancy” because language did not constitute what “agree” meant, such as unanimous vote, majority vote, etc. The Charter wants to see this language clarified and wants to ensure all efforts are made that an appointment to fill a Council vacancy is, when possible, made by a majority vote of Councilmembers and not just an appointment by the Mayor. This proposed language change clarifies that an appointment would be made by Resolution approved by a majority vote of the Council present at the meeting. Only in the case of a tie vote would the Mayor would make the appointment, choosing one of the voted upon eligible applicants. Mayor Rice suggested including language postponing consideration of a vote until all members were present then reviewed past processes used and liked that it would be above a majority, adding costs of a special election is high and could provide an opportunity for contention in the event of a tie. Councilmember Wesp referred to 2004 when prior to Councilmember John Weaver passing away indicated who he would like to see Council appoint but ultimately was not chosen and said a similar situation occurred when Councilmember Anderson stepped down. He said these actions can result in high contention in some cities and hoped that would not occur here. Councilmember Barnett asked what occurs should a qualified candidate not be identified. Mr. Baumgartner said language states forthwith to avoid too long of a vacancy. Councilmember Wesp asked about the event of a tie. Mr. Baumgartner said then the Mayor has to choose one of the two candidates involved in the tie. Councilmember Skogquist said this was an important part of the Charter and shared concerns about Councilmembers appointing someone to their own body and suggested postponing to outline the process a bit more as he did not agree with the Council appointing its own members. Motion by Councilmember Freeburg, seconded by Councilmember Barnett, to hold first reading of an ordinance as amended amending Section 2.05; vacancies in elected office of the City Charter. Councilmember Skogquist stated a Charter amendment has to have unanimous vote of the full Council and said he sees this process making it a lot easier for the Mayor to appoint someone. He said he did not like the interpretation but if the Council was going to appoint themselves it should be more than a majority and that there are better methods available as this could lead to contention, adding a member should not serve for almost two years without a vote of the people. December 16, 2019 (Regular) Page 15 of 19 Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, and Wesp voted in favor. Councilmember Skogquist voted nay. Motion carried. 9.7 ORD/Amendment to City Charter, Section 2.07; Salaries. (1st Reading) Mr. Baumgartner shared a background report stating the Charter Commission reviewed language regarding Section 2.07 Salaries. The Council had previously requested the Charter Commission review this section of the Charter and make a recommendation on when and how adjustments are made to Mayor and Councilmembers salaries. After a lengthy discussion, the Charter Commission is recommending that they only make a recommendation on how often the Council must review their salaries. They stated that the Commission should not be responsible for making a recommendation on whether or not a change is the Mayor and Councilmembers salaries should occur, and they should not responsible in developing a methodology for the Council to utilize to determine an increase. They stated they believe the authority on these decisions be in the hands of the Mayor and Councilmembers as a responsibility as an elected official. The Mayor and Council shall receive such compensation for their services as may be prescribed by ordinance adopted by the vote of four-fifths of all members of the Council. Other officers and employees of the City shall receive such compensation as may be fixed by the Council. A review of the Mayor and Councilmember salaries shall be conducted by the City Council every three (3) years. Councilmember Freeburg said he did not feel guilty about asking for a raise as the City incrementally raises all sorts of rates such as water and electric and if we do not raise salaries, we devalue people, noting the Council had not received a raise for the past 11 years. Mayor Rice agreed that Council should be deciding but did not like the three years period as it did not coincide with elections and suggested review every four years instead. Councilmember Skogquist said he liked four years as well but said it was not worth returning to the Charter for language review. Motion by Councilmember Skogquist, seconded by Councilmember Barnett, to hold first reading of an ordinance amending Section 2.07; salaries of the City Charter. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. December 16, 2019 (Regular) Page 16 of 19 9.8 RES/Adopting 2020 City Levy. RESOLUTION Ms. Springer shared a background report stating the 2020 budget process began in June and is based on Council directives and the 2019 goal session. The Council has reviewed the 2020 budget, as proposed by the City Manager, at several meetings in August. The City Council held a public hearing on December 2, 2019 to hear from the public regarding the proposed 2020 budget and levy. The total budget for all funds excluding the HRA component unit is $69,552,820, which is a 6.17% increase from 2019. The increase is attributed to an increase in capital project spending. The 2020 levy is to be set at $7,303,005 this is a 3.9% increase as compared to 2019. The average taxpayer will see an increase in city property taxes as a result of the increased levy and changes in the fiscal disparity distribution. The General Fund budget is $13,231,402 which is a $681,414 increase over the 2019 budget. The State of Minnesota did not impose levy limits upon local governments in 2020. The City of Anoka’s levy limit for 2014 was $5,899,105. The approved budget is available on the City’s website or at City Hall and the annual effect of the City levy on a home valued at $238,000 is an increase in City taxes of approximately $50 or 6.7%, for a total City tax of approximately $797. Councilmember Wesp referred to a recent article regarding rising property taxes and stated the original increase of 5.9% was reduced to 3.9% after Council and staff review which was less than neighboring cities. He said business owners assessed for street renewal and costs is more and that we were doing our part by continuing to cut costs wherever possible and thanked staff for continuing to work to reduce the levy. Motion by Councilmember Wesp, seconded by Councilmember Freeburg, to adopt a resolution adopting a levy for the year 2019, collectible in 2020. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.9 RES/Adopting 2020 City Budget. RESOLUTION Motion by Councilmember Barnett, seconded by Councilmember Skogquist, to adopt a resolution adopting the budget for the year 2020. Councilmember Wesp said City staff does a great job addressing what the City needs and budget accordingly while keeping costs low and said while increased population requires more to keep the City at its best staff does a good job bringing December 16, 2019 (Regular) Page 17 of 19 the budget forward that does not contain things out of the ordinary and thanked them for their work. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. 9.10 ORD/Authorizing the Sale of General Obligation Improvement Bonds, Series 2020A in an Amount Not to Exceed $8,850,000. (2nd Reading) ORDINANCE Ms. Springer shared a background report 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 June 17, 2019, City Council passed a resolution allowing the City to issue debt in early 2020 to reimburse it-self for certain expenditures for the 2019 public improvement projects and adoption of this ordinance would allow the City council to issue General Obligation Improvement Bonds not to exceed $8,850,000, and pay for both the 2019 and 2020 street improvement projects. She said no changes have been made since first reading. Motion by Councilmember Freeburg, seconded by Councilmember Skogquist, to hold second reading and adopt an ordinance authorizing the sale of General Obligation Improvement Bonds, Series 2020A in an amount no to exceed $8,850,000. Mayor Rice said this action was for efficiency and a good process for SRP but asked if there was any risk to spending these funds in other ways making this an unplanned debt. Ms. Springer said these funds can only be used for this dedicated specific purpose and includes 20% assessments that have to be paid back and that cash flow projections for the next 20 years ensures money received in assessments will cover the debt until paid off. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Freeburg, Skogquist, and Wesp voted in favor. Motion carried. December 16, 2019 (Regular) Page 18 of 19 10. UNFINISHED BUSINESS None. 11. NEW BUSINESS 11.1 Appointment to Utility Advisory Board; Gary Semmel. Mr. Lee shared a background report stating at the last meeting Council acted upon the annual appointments to Boards/Commissions. At that time, the City had not received an application for Gary Semmel, a long-time member of the Utility Advisory Board. On December 4, 2019, Mr. Semmel submitted his application for reappointment to the Board and recommended approval. Staff will continue to advertise vacancies that remain on our Boards/Commissions and seats will remain open until filled. Motion by Councilmember Skogquist, seconded by Councilmember Wesp, to approve the appointment of Gary Semmel to the Utility Advisory Boards for a term to end December 31, 2022. Councilmember Freeburg said he was pleased to have Commissioner Semmel back on this Board. Vote taken. All ayes. Motion carried. 12. UPDATES AND REPORTS 12.1 Fund Distribution of 2019 Round-Up Funds and Policy Amendment. Ms. Springer stated this was an update on the status of the “Round Up for Change” program regarding collections and disbursement of revenues. The program, adopted November 21, 2011, 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 and has gone from 8,100 in 2012 to 5,067 in 2019. Donations for the current year are $28,218 and staff estimates $26,000 in 2020. She said the balance of $14,561 available for disbursement would be distributed to Alexandra House, ACBC Food Shelf, and Youth First Community of Promise and that based on collections in Hennepin County distribution of donations would be distributed to CEAP and Cross food shelves. Ms. Springer spoke about the policy change for use of funds to provide assistance to families, children and seniors in need and added language for basic human needs. December 16, 2019 (Regular) Page 19 of 19 12.2 Tentative Agenda(s). The Council reviewed the tentative agendas of the upcoming Council meetings. Staff and Council Input. Mr. Nelson shared a correction on the time for the staging open house for the Monroe Street project was 3:00-5:00 p.m. Mr. Lee recognized Jan Mayer for her 20 years of service to the Anoka-Champlin Fire Department and thanked her for her work. Mayor Rice said Ms. Mayer was well-liked and respected for her work and will be missed. 13. ADJOURNMENT Councilmember Freeburg made a motion to adjourn the Regular Council meeting and enter into a closed executive session pursuant to Minnesota Statute §13d.05, Subd 3, for the purpose of conducting the annual performance evaluation of the City Manager at 10:30 p.m. Councilmember Wesp seconded the motion. Vote taken. All ayes. Motion carried. The Regular Council meeting reconvened at 11:10 p.m. Councilmember Freeburg made a motion to adjourn the Regular Council meeting. Councilmember Wesp seconded the motion. Vote taken. All ayes. Motion carried. Time of adjournment: 11:10 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk