Anoka City Council

January 6, 2020 (Regular) Page 1 of 12 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS JANUARY 6, 2020 1. CALL TO ORDER Mayor Pro Tem Freeburg called the meeting to order at 7:05 p.m., followed by the Pledge of Allegiance led by Boy Scout Kellen. 2. ROLL CALL Present at roll call: Mayor Pro Tem Freeburg, Councilmembers Barnett, Skogquist, and Wesp. Staff present: City Manager Greg Lee; Police Captain Andy Youngquist; Community Development Director Doug Borglund; Associate Planner Clark Palmer; Finance Director Brenda Springer; Public Services Director Mark Anderson; and City Attorney Scott Baumgartner. Absent at roll call: Mayor Rice. 3. COUNCIL MINUTES 3.1 Minutes of the December 9, 2019, Worksession. Minutes of the December 16, 2019, Regular Meeting. Councilmember Skogquist requested the following corrections on the December 9, 2019, Worksession: Page 7, Paragraph 2: “Councilmember Skogquist spoke regarding services in Blaine as customer service Blaine all complaints went through one staff member who gets very little complaints and as well as the RFP process and Champlin’s collection zones.” Motion by Councilmember Skogquist, seconded by Councilmember Barnett, to waive the reading and approve the December 9, 2019, Worksession as corrected and the December 16, 2019, Regular Meeting minutes as presented. Vote taken. All ayes. Motion carried. January 6, 2020 (Regular) Page 2 of 12 4. OPEN FORUM 4.1 Car Show Update. Brad Holmbo and Dave Way, Anoka Car Show, presented an overview of the 2019 car show, stating it was a good season with only two rainouts. They thanked the City and Boy Scouts for their work then presented a check to the City. A round of applause was offered by the audience. Mr. Way shared about the upcoming 75-year celebration of Anoka Wrestling and invited alumni to a celebration at the Legion on January 31. He shared about this phenomenal program and spoke about the importance of the wrestling family and invited everyone to attend. Mayor Pro Tem Freeburg thanked the Anoka Car Show for the check for $1,600 and thanked the Boy Scouts for their work each week. Councilmember Barnett asked about the work done by the Boy Scouts. Mr. Holmbo said they were open 16 weekends during the summer and shared how the Boy Scouts ran the gate every Saturday greeting people. Councilmember Skogquist thanked Troop and Pack 233 for their work. 4.2 Police Activity Update. Police Captain Andy Youngquist shared a presentation highlighting the past year, stating officers responded to 23,268 calls for service in 2019, almost 2,000 more calls than 2018. He said 26 calls for service occurred between New Year’s Eve and Day but no major occurrences were reported. He spoke how 2020 has already seen a handful of felony arrests that included a vehicle pursuit and recovery of a handgun and shared about the delivery of a baby by an officer then shared efforts to engage the public through Coffee with a Cop on January 8 at Hans Bakery. Captain Youngquist shared about his opportunity to attend the FBI National Academy and shared about the curriculum that included legal issues, media relations, cybercrime, real-life press conference scenarios, and a physical fitness component. He thanked the Council for the opportunity, Chief Peterson and former Chief Revering for attending his graduation, and his wife for her support then explained how the Academy provided a national and international perspective on law enforcement and noted all credits were paid for by the FBI at minimal cost to the City. Councilmember Skogquist asked how the Academy came to be. Captain Youngquist explained the Academy was created under President Hoover for the Justice Department to standardize disciplines and techniques which was opened internationally to have influence across the world. January 6, 2020 (Regular) Page 3 of 12 Councilmember Barnett thanked Captain Youngquist for his work, stating she was incredibly proud to know someone who has gone through this program, adding she was excited for the future in what he would bring to Anoka and thanked him for his commitment. OTHER INFORMATION UNDER OPEN FORUM None. 5. PUBLIC HEARING(S) 5.1 Issuance of Currency Exchange License; Al’$ Check Cashing, LLC, 205 E. Main Street. City Manager Greg Lee shared a background report with the Council stating the State of Minnesota Department of Commerce is requesting the City Council to comment on whether or not the State Currency Exchange License should be issued to Al’$ Check Cashing LLC, (previously operated as The UnBank Company LLP), 205 E Main St, Anoka. The Police Department supports the issuance of this license. There are no other Currency Exchange Licenses in the City of Anoka. Since the State Department of Commerce is responsible for license applications forms and fees, the City is only commenting that the City has no objection to the State issuing this license. Mayor Pro Tem Freeburg opened the public hearing at 7:22 p.m. Being no comments Mayor Pro Tem Freeburg closed the public hearing at 7:22 p.m. Mayor Pro Tem Freeburg stated action would occur after under the Consent Agenda. Councilmember Wesp clarified Al’$ Check Cashing will be taking the place of The UnBank. 6. CONSENT AGENDA Motion by Councilmember Skogquist, seconded by Councilmember Wesp, to approve Consent Agenda 6.1 through 6.5. Councilmember Skogquist asked questions regarding verified bills for the Greens of Anoka to Bolton and Menk and $15,000 paid to Anoka-Champlin Fire. Mr. Lee explained the first invoice was for alignment of the roadway and work on Greenhaven Parkway. Finance Director Brenda Springer said the second invoice was for after hour services for calls for service to the on-call person and outages reported by Anoka- Champlin Fire Department, adding the costs were paid by the electric utility. January 6, 2020 (Regular) Page 4 of 12 Councilmember Skogquist asked about the invoice for $10,000 for North Risk. Ms. Springer said this was for the annual contract for coordination of all insurance claims, noting this was an annual fee that had remained the same for the past 20 years. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. 6.3 Recommend Issuance of Currency Exchange; Al’$ Check Cashing, LLC, 205 E. Main Street. 6.4 Issuance of a Temporary On-Sale Liquor License; Church of St. Stephen’s, Annual Mardi Gras Event, February 22, 2020. 6.5 Recommended Approval of an LG220 Gambling Permit; Church of St. Stephen’s for Raffle on February 22, 2020. Vote taken. All ayes. Motion carried. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 7.1. Planning Items: 7.1.A. ORD/American Club Senior Cooperative Planned Residential Development. (2nd Reading) ORDINANCE RES/American Club Site Plan Approval. RESOLUTION 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. He said the Council approved first reading at the last meeting in December that resulted in discussion regarding the project’s parking ratio but that project plans have not changed since first reading. 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 January 6, 2020 (Regular) Page 5 of 12 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 voted to recommend approval of the Planned Residential Development as presented with conditions. Councilmember Barnett asked for an update on Zayo progress then spoke about the parking ratio, stating she believed the 1.72 stalls was ample but asked if any conversations had occurred with Green Haven in case there was a need for more parking. Mick Conlin, Gramercy, said they were open to an overflow parking agreement as it would be in the best interest of all involved. Councilmember Wesp asked how reservations were going. Mr. Conlin said to date they had 23 priorities with an upcoming member meeting scheduled at Green Haven that included the public. He said they now have full-time sales staff onsite and that they need to get to 53 priorities to move forward, adding they began marketing in October and that progress was going well. Councilmember Skogquist asked about lift station cost status. Public Services Director Mark Anderson said staff has been working on estimates and will update the Council soon, adding negotiation on the split was yet to be determined. Mr. Borglund said those details would be included in the development agreement for Council consideration in February. Mr. Conlin thanked Mr. Borglund and his team for their hard work and for Council support for the project, adding they were excited to bring the American Club to Anoka. Mayor Pro Tem Freeburg said the City was excited to see this beautiful project in Anoka. Motion by Councilmember Barnett, seconded by Councilmember Skogquist, to hold second reading and adopt an ordinance rezoning to a Planned Residential Development – American Club Senior Cooperative. Upon a roll call vote: Mayor Pro Tem Freeburg, Councilmembers Barnett, Skogquist, and Wesp voted in favor. Motion carried. Motion by Councilmember Barnett, seconded by Mayor Pro Tem Freeburg, to adopt a resolution of approval of site plan; American Club Senior Cooperative. January 6, 2020 (Regular) Page 6 of 12 Upon a roll call vote: Mayor Pro Tem Freeburg, Councilmembers Barnett, Skogquist, and Wesp voted in favor. Motion carried. 7.1.B. ORD/Westgate Senior Living of Anoka Planned Residential Development. (2nd Reading) ORDINANCE Associate Planner Clark Palmer shared a background report stating on December 16, 2019, the City Council moved the first reading of an ordinance approving a Planned Unit Development (PUD) for a proposed assisted living and memory care development located at the northeast corner of Reed Avenue/Cutter Street. At the meeting, there was discussion regarding the proposed number of parking stalls. Since the first reading, at the direction of City Council, the site plan was amended to include proof of parking showing area where the proposed parking lot could be expanded to include 5 additional parking spaces; if required to be added later, this would bring the total number of parking stalls from 25 to 30. As part of the development, the applicant is also proposing to re-plat the property which will be reviewed under Item 7.1.C. Approval of a Conditional Use Permit and Site Plan Review is also required for the project which will be reviewed under item 7.1.D. The Planning Commission held a public hearing on December 3, 2019, and recommended approval of the PUD with conditions. Motion by Councilmember Skogquist, seconded by Councilmember Wesp, to hold second reading and adopt an ordinance rezoning to a Planned Residential Development – Westgate Senior Living of Anoka. Upon a roll call vote: Mayor Pro Tem Freeburg, Councilmembers Barnett, Skogquist, and Wesp voted in favor. Motion carried. 7.1.C. RES/Westgate of Anoka Preliminary Plat. RESOLUTION Mr. Palmer shared a background report stating as part of a proposed senior housing development, Tollberg Homes is proposing to re-plat property located at the northeast corner of Reed Avenue/Cutter Street including 511 Cutter Street. The land that will be re-platted is 1.969 acres encompassing two parcels of land containing lots originally platted as part of the Sparks Addition. The purpose of the plat is to create one new lot and if approved, the applicant may submit for final plat approval to be reviewed and acted upon at a future meeting. As part of the plat, the City is requiring dedication of public right-of-way (ROW) in the amount of 25 feet along the west property line/Reed Avenue. This is because in 1887, the Sparks Addition plat included the platting of Reed Avenue at 50 feet wide. In 1928, half the width of Reed Avenue was vacated, leaving a 25-foot ROW which abuts the west property line. Today, a portion of Reed Avenue January 6, 2020 (Regular) Page 7 of 12 encroaches into the vacated ROW. The goal is to eliminate the encroachment issue and make room for possible future improvements to Reed Avenue. In addition to the dedication of ROW, drainage and utility easements of either 10 feet or 7 feet wide are shown surrounding the property. Parkland dedication is required for every plat or re-plat. The amount of parkland dedication is determined by the number of residential lots or dwelling units proposed. In lieu of the dedication of land, the City may require a cash payment whenever cash payment would be more beneficial to the development of the overall park system than dedication of land within the property to be platted. In this case, the City will require a cash payment in lieu of the dedication of land. The applicant is requesting a reduction in parkland dedication fees owed consistent with previous approval for assisted living and memory care units. In 2010, Volunteers of America (VOA) phase I received a reduction at 50% of fees owed for 32 assisted living units, and in 2014, VOA phase II received a reduction at 33% of fees owed for 24 memory care units. If a reduction is authorized by the City Council, parkland dedication fees would be calculated. Mayor Pro Tem Freeburg confirmed the request was not for a waiver or deferral of park dedication. Mr. Palmer said the request was to just reduce the amount, stating the argument was residents would not create demand on the park systems as others living in more traditional housing. Councilmember Skogquist asked about the encroachment issue with Reed Avenue. Mr. Palmer said at the time of plat in 1887 it was believed the land was undeveloped and the encroachment occurred during platting of many roads and assumed it was identified. He said over time street width designs changed course, adding it was a challenge to identify all these vacations. Councilmember Skogquist said the parkland request made sense and had been done in the past. He appreciated how the development contributed to park dedication which was historically delegated to a specific neighborhood or policy in general. Councilmember Barnett agreed and suggested making different rates a policy where appropriate to have everyone on the same level. Mr. Palmer stated City Code provides appeal process for any development already but could be included in Code in another way. Motion by Councilmember Barnett, seconded by Councilmember Skogquist, to adopt a resolution of approval of Westgate of Anoka preliminary plat. Councilmember Wesp asked where park dedication was addressed. Mr. Palmer said park dedication would be included as a condition of approval under final plat at the next regular meeting time. January 6, 2020 (Regular) Page 8 of 12 Upon a roll call vote: Mayor Pro Tem Freeburg, Councilmembers Barnett, Skogquist, and Wesp voted in favor. Motion carried. 7.1.D. RES/Westgate of Anoka Conditional Use Permit and Site Plan. RESOLUTION Mr. Palmer shared a background report stating Tollberg Homes is proposing to develop the property located at the northeast corner of Reed Avenue/Cutter Street, including 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. 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 and other exterior architectural details. He spoke about the surface-level parking lot of 25 spaces is proposed at the front of the building adjacent to Cutter Street, as well as proof of parking of an additional 5 spaces at the east side of the parking lot. Significant landscaping will surround the building including the preservation of 3 existing trees along Cutter Street and the planting of 27 new trees and a number of shrubs, perennial flowers and grasses. The subject property is currently undeveloped with the exception of the single- family rental property located at 511 Cutter Street which is proposed to be razed. The property is zoned Main Street Mixed Use, West Main Street Sub-district (WM). As part of the application, approval of a Conditional Use Permit (CUP) and Site Plan Review is required. Staff reviewed the application against specific criteria set forth in City Code for Conditional Use Permit applications. The proposed development is found to meet or exceed all requirements, with the exception of proposed deviations as may be allowed under the approval of the Planned Unit Development. The Planning Commission recommended approval of the Conditional Use Permit and Site Plan Review with conditions. Councilmember Skogquist asked if CUPs include time limits. Mr. Palmer said CUPs runs with the land. Mr. Borglund stated we were unable to set a sunset date with CUPs but noted an interim use has a specific time period allowed by law. Motion by Councilmember Skogquist, seconded by Councilmember Barnett, to adopt a resolution approving a Conditional Use Permit and site plan review, northeast corner of Reed Avenue/Cutter Street and 511 Cutter Street. Upon a roll call vote: Mayor Pro Tem Freeburg, Councilmembers Barnett, Skogquist, and Wesp voted in favor. Motion carried. 8. PETITIONS, REQUESTS AND COMMUNICATION None. January 6, 2020 (Regular) Page 9 of 12 9. ORDINANCES AND RESOLUTIONS 9.1 ORD/Amending Lease Agreement with Anoka County for Real Property and Facilities at the Rum River Human Services Center Property – 3300 4th Avenue. (2nd Reading) ORDINANCE Mr. Lee shared a background report stating first reading of this ordinance was held on December 16, 2019 and no changes have occurred since first reading. The Council adopted an ordinance approving a lease agreement with Anoka County for the property and facilities located at 3300 4th Avenue (The Cottages) and in December Council held first reading of an amendment to the lease. 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. Motion by Councilmember Barnett, seconded by Councilmember Wesp, to hold second reading and adopt 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 Pro Tem Freeburg, Councilmembers Barnett, Skogquist, and Wesp voted in favor. Motion carried. 9.2 RES/Annual Finance Related Designations. RESOLUTION Mr. Lee shared a background report stating annually, the City Council adopts a resolution designating the official depositories and signees. He noted no changes are being proposed from 2019. Motion by Councilmember Wesp, seconded by Councilmember Barnett, to adopt a resolution for designation of official depositories and signees for 2020 as presented. Upon a roll call vote: Mayor Pro Tem Freeburg, Councilmembers Barnett, Skogquist, and Wesp voted in favor. Motion carried. 9.3 RES/Annual Designations and Appointments to Various Committees. RESOLUTION Mr. Lee shared a background report stating Anoka City Council Bylaws and Charter require that at the first meeting in January, the Anoka City Council shall: January 6, 2020 (Regular) Page 10 of 12 (1) choose a Mayor pro-Tem from the Council who shall perform the duties of the Mayor during the disability or absence of the Mayor from the City, or in the case of a vacancy in the office of Mayor, until a successor has been appointed and qualified; (2) designate the official newspaper, (3) designate official posting location, (4) designate date/time of regular meetings and worksessions, and (5) appoint such officers, employees, and committees, and citizens to various boards and organizations as may be necessary. He noted the City received only one proposal for designation of the official newspaper, which came from ECM Publishers/Anoka County Union then said he could continue as representative for Twin Cities Gateway but that meetings were held during regular staff meetings but that Pete Turok regularly attends. Discussion was held on the Anoka County Community Consortium and Youth First. Councilmember Wesp noted Diane Henning has not participated in years and suggested including Ms. Springer instead. He noted Bill Erhart attends periodically but is a resident of Ramsey and no longer a land owner in Anoka. Councilmember Barnett asked about the NWACC. Councilmember Wesp said this group was expanded to include Anoka County, Sherriff’s Office, and School District as was more of a bookkeeping decision. Motion by Councilmember Wesp, seconded by Councilmember Skogquist, to adopt a resolution of annual designations and appointments for 2020 as presented. Vote taken. All ayes. Motion carried. 9.4 RES/Awarding the Sale of $8,545,000 General Obligation Bonds, Series 2020A Fixing their Form and Specifications; Directing their Execution and Delivery; and Providing for their Payment. RESOLUTION 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. 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. December 2, 2019, public hearings were held for the 2020 combined street improvement January 6, 2020 (Regular) Page 11 of 12 projects and adopting resolutions authorizing the preparation of plans & specs for these projects. She stated this action would award the sale of $8,545,000 in General Obligation Bonds, Series 2020A and was a reduction of $270,000 due to premiums received. Ms. Springer said this was a large bond offering that resulted from a lot of work and thanked Ehlers and Associates and Kennedy and Graven for their work. Stacie Kvilvang, Ehlers and Associates, explained the premium bid and how buyers are willing to pay higher rate to get a better yield, which is a bonus for the City as more proceeds are received and can result in a reduced bond size. Councilmember Wesp said timing is everything and rates are still low, adding the work of staff and consultants played out very well, including the City’s credit worthiness and thanked staff for working to maintain a strong credit standing. Councilmember Freeburg stated implementing the street renewal program helped and should continue. Ms. Springer said the program planned will continue but on a smaller basis. Councilmember Skogquist spoke about the 4% to 2% rates. Ms. Kvilvang said the interest rate received on bonds was for 20 years with a 10-year call date. Councilmember Skogquist asked where the $270,000 savings would be applied. Ms. Springer said the savings would go to the SRP, adding estimates were conservative for special assessments and would be held in case of additional costs. She said if we do not use the $270,000 for projects it could be directed towards similar projects. Motion by Councilmember Barnett, seconded by Councilmember Skogquist, to adopt a resolution awarding the sale of $8,545,000 General Obligation Bonds, Series 2020A fixing their form and specifications; directing their execution and delivery; and providing for their payment. Upon a roll call vote: Mayor Pro Tem Freeburg, Councilmembers Barnett, Skogquist, and Wesp voted in favor. Motion carried. 10. UNFINISHED BUSINESS None. 11. NEW BUSINESS 12. UPDATES AND REPORTS 12.1 Tentative Agenda(s). January 6, 2020 (Regular) Page 12 of 12 The Council reviewed the tentative agendas of the upcoming Council meetings. 12.2 Staff and Council Input. Mr. Lee announced the event on January 16 to celebrate years of service and retirement of Fire Department staff member Jan Mayer. Councilmember Barnett said there would be an open conversation on hauling at Green Haven on January 23 that would include an informational session, presentation and opportunity for questions and feedback then asked for an update on the Highland Park progress. Mr. Borglund shared the process of continuing to pursue the last few properties remaining, adding bids will be received soon for demolition of five buildings with appraisals for the remaining properties. Councilmember Wesp inquired about the absentee owner and two closings. Mr. Borglund said the City closed on 2825 Fairoak with the other property in May and said the property owner was working to retain the existing tenant and relocate to another owned building. Councilmember Skogquist said tentative agendas included Charter Amendments for Council vacancies and suggested the topic be rescheduled after the policy review. Mr. Anderson shared the Monroe Street renewal project information session would be held on January 9 to review staging and planning of the project. Councilmember Skogquist thanked the Boy Scouts for attending. 13. ADJOURNMENT Councilmember Freeburg made a motion to adjourn the Regular Council Meeting. Councilmember Skogquist seconded the motion. Vote taken. All ayes. Motion carried. Time of adjournment: 8:21 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk