Anoka City Council

September 21, 2020 (Regular) Page 1 of 16 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS SEPTEMBER 21, 2020 1. CALL TO ORDER Mayor Rice called the meeting to order at 7:00 p.m., followed by the Pledge of Allegiance. 2. ROLL CALL Present at roll call: Mayor Rice, Councilmembers Barnett, Skogquist and Wesp. Staff present: City Manager Greg Lee; City Planner Clark Palmer; Police Captain Anderson; Public Services Director Mark Anderson; Engineering Technician Ben Nelson; Housing and Redevelopment Manager Darin Berger; Finance Director Brenda Springer; City Attorney Scott Baumgartner. Absent at roll call: Councilmember Freeburg. 3. COUNCIL MINUTES 3.1 Minutes of the September 8, 2020, Regular Meeting. Motion by Councilmember Barnett, seconded by Councilmember Wesp, to waive the reading and approve the September 8, 2020, Regular Meeting as presented. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist and Wesp voted in favor. Motion carried. 4. OPEN FORUM 4.1 Police Activity Update. Police Captain Anderson shared information on the recent drive-through ice cream event and thanked Ruby’s Pantry and Anoka United Methodist Church for their partnership in sharing almost 19,000 ice cream bars. He updated Council on staffing changes including the retirement of Sgt. Mark Furman, selection of Officer Skinner and Sgt. Hagen, then noted the 30th Anti-Crime Association breakfast has been cancelled due to COVID-19 but would instead be an online fundraiser to help raise funds to engage the community, establish trust and the K-9 unit. Captain Anderson said the department was meeting with public health staff and school officials regarding school reopening and infection rates which have been steady for the past few weeks and noted the department was remaining healthy and fully engaged in their duties. September 21, 2020 (Regular) Page 2 of 16 Councilmember Wesp congratulated Chief Peterson and his wife on the arrival of their new granddaughter. Councilmember Skogquist asked about precautions police staff was taking with COVID. Captain Anderson confirmed staff was taking all necessary precautions to ensure the department remains operational including social distancing, PPE, and precautions during transport. Councilmember Wesp referred to a recent letter from a business owner and how the City had relaxed enforcement of parking standards during this time and requested this continue now that businesses were opening more. City Manager Greg Lee confirmed the City has started enforcement of parking regulations again and would bring this request to the Parking Advisory Board for recommendations. 4.2 Proclamation; Stan Nelson’s 100th Birthday, September 22, 2020. Mayor Rice read the proclamation in full for the record proclaiming September 22 as Stan Nelson Day in the City of Anoka and recognized Mr. Nelson for all his contributions to the community and congratulated him on his 100th birthday. Mr. Lee shared Mr. Nelson’s mailing address should anyone wish to send him congratulations. Councilmember Skogquist mentioned there would be a drive-by Mr. Nelson’s home as well. 4.3 Proclamation; Domestic Violence Awareness Month. Mayor Rice read the proclamation in full for the record proclaiming October as Domestic Violence Awareness month and thanked Alexandra House for their work in this effort. Connie Moore, Executive Director of Alexandra House, shared about their programs to assist those experiencing domestic violence including youth role model, on-call hospital and legal advocacy. She shared statistics of Anoka residents who were served by the shelter including a safe place to stay, meals, advocacy, support groups, and classroom presentations then shared about the yard sign campaign being held this year instead of Hope Fest and the Purple Challenge to raise awareness. Mary Shay, 3528 Rum River Drive, said the that Zion Rachel Circle Ministry raises awareness of domestic violence and shared more about the Purple Lights Initiative that includes training staff and education of the congregation and illuminating public spaces in purple to raise awareness and give hope to victims. She encouraged everyone to participate and requested the City consider lighting the bridges and City Hall fountain purple. September 21, 2020 (Regular) Page 3 of 16 Mr. Lee noted the Rum River bridge lights had been struck by lighting and were currently not programmable and lighting on the dam was not programmable but the City would illuminate the fountain. Councilmember Barnett thanked the organization for their important work and supported illumination where available including adding strings of lights on public buildings, if necessary, then asked if those turned away for service was due to increased need due to COVID and what other resources were used to bridge the gap. Ms. Moore said she could share more specific statistics then noted Anoka County residents are not turned away so likely those who were turned away were from other counties. She said capacity had been cut in half due to COVID and how they rented hotel rooms to help bridge the gap, adding some of the decrease was due fear of capacity in shelters during this time. Mr. Lee suggested Main Street lighting could be considered programmable as well. Mayor Rice said the greatest enemy is silence and raising awareness was very important and encouraged everyone to participate. 4.4 Proclamation; Race Equality Week, September 21-25, 2020. Mayor Rice read the proclamation in full for the record proclaiming September 21-25 as Race Equality Week in the City of Anoka. Councilmember Skogquist said this was the first act of the reinvigorated Human Rights Commissions and appreciated their work and how they would continue to work on these issues and get more people involved. OTHER INFORMATION UNDER OPEN FORUM None. 5. PUBLIC HEARING(S) 5.1 On-Sale Intoxicating Liquor License; Nucky’s Speakeasy, LLC, dba; Club 33, 300 E. Main Street. RES/Issuance of On-Sale Intoxicating Liquor License; Nucky’s Speakeasy, LLC, dba; Club 33, 300 E. Main Street. RESOLUTION Mr. Lee shared a background report stating an application for an On-Sale Intoxicating Liquor License has been submitted by Nucky’s Speakeasy, dba; Club 300, at 300 E Main Street. Staff is in the process of conducting the necessary September 21, 2020 (Regular) Page 4 of 16 background investigations and inspections and so far, no concerns or objections have been expressed. Mayor Rice opened the public hearing at 7:47 p.m. Barb Abeler, applicant, congratulated Stan Nelson on his birthday then shared how the auditorium at Haven for Heroes had been named for him in recognition of his work. She introduced Chef’s Rowan Brown and Von then shared their menu which would include an elegant atmosphere and retain the 1916 historical theme. Rowan Brown, Chef, shared more about the menu and service patrons could expect with their intent to open October 3. Councilmember Barnett complimented the applicant on their work and the unique look of the restaurant. Councilmember Skogquist said he was looking forward to the opening and said use of the City lot for this parking should work well. Being no more comments Mayor Rice closed the public hearing at 7:54 p.m. NOTE: By motion from Councilmember Wesp, which was seconded by Councilmember Barnett, 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 Barnett, seconded by Councilmember Skogquist, to adopt a resolution approving the issuance of an on-sale intoxicating liquor license to Nucky’s Speakeasy, LLC, dba Club 300, 300 E. Main Street, Anoka Minnesota. Councilmember Wesp shared comments about the site as the former post office which was dedicated as a historical site and how people will cherish being able to go here. Mayor Rice thanked the Abeler family for their generosity and wished them the best in this new endeavor. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist and Wesp voted in favor. Motion carried. 6. CONSENT AGENDA Motion by Councilmember Skogquist, seconded by Councilmember Wesp, to approve Consent Agenda 6.1 through 6.7. Councilmember Wesp confirmed the tobacco license location had no compliance concerns. Councilmember Barnett noted the drug paraphernalia ordinance had been September 21, 2020 (Regular) Page 5 of 16 shared with the new owner to confirm there were no misunderstandings with the City’s expectations in providing a tobacco license. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. 6.3 Issuance of a Massage Therapist License for Marcie Harrison of Anoka at Anoka Massage and Pain Therapy, 710 East River Road. 6.4 Issuance of a Massage Therapist License for Equilibrium Therapeutics, LLC, 1902 5th Avenue South, Suite 3. 6.5 Issuance of a Massage Therapist License for Stacie Cobb of Equilibrium Therapeutics, LLC, 1902 5th Avenue South, Suite 3. 6.6 Issuance of a Tobacco License for Anoka Downtown Tobacco Shop, Inc., 2010 2nd Avenue North. 6.7 Issuance of a Tree Care/Arborist License; A+A Tree and Landscaping, LLC. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist and Wesp voted in favor. Motion carried. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 7.1 Planning Items: 7.1.A RES/Preliminary Plat; Benton Addition on Ferry Street. City Planner Clark Palmer shared a background report stating there was a lot at the northwest corner of Ferry Street and Benton Street with the goal to create two single-family lots to be sold and developed. The existing parcel consists of 4 lots addressed: 109 Benton Street, 117 Benton Street, 1803 Ferry Street, 1809 Ferry Street. The property is zoned R-3 High Density Residential which allows single family homes. The Preliminary Plat contains necessary drainage and utility easements surrounding each of the proposed lots. There is also a 20-foot wide trail easement shown at the rear of the property for a possible future realignment of US Bike Route 45/Mississippi River Trail which traverses along Ferry Street and Benton Street. Parkland dedication is required for every plat or re-plat and the amount of park land dedication is determined by the number of residential dwelling units or lots created. The Planning Commission reviewed the application and held a public hearing on September 1, 2020, where two members of the public spoke. The first shared concerns about the property being developed as multi-family resulting in increased traffic and another said he did not think it September 21, 2020 (Regular) Page 6 of 16 made sense to develop the property as single-family due to the proximity and visibility to Ferry Street and high traffic volumes. Councilmember Barnett asked if there had been interest from developers or homeowners to split the lot. Housing and Redevelopment Manager Darin Berger shared the property was first listed in 2017 and since has been minimal interest in the lot. He said there had been challenges with ingress and egress but the apartment complex to the north expressed interest in the lot for either parking or possible expansion. He shared other history of the site and said now that a trail easement has been place staff felt comfortable with the plat proposal. Councilmember Wesp asked if additional expansion by MnDOT would affect this property and where would driveway access be located. Mr. Palmer said MnDOT sees no significant extension of right-of-way in this area for Highway 169 and the construction easement was proposed for sidewalks only. Mr. Berger said the driveways would most likely be located on Franklin Lane. Councilmember Skogquist asked if design elements had been submitted yet and cautioned about creating something not acceptable in a high-profile area. Mr. Berger said there had been preliminary drawings for the two homes but the Housing and Redevelopment Authority wanted single family in this area and how home design was not yet finalized. Mayor Rice agreed he would like to see a proposed concept prior to final approval. Mr. Palmer noted multi-family units would not count against the total rental density cap. Motion by Councilmember Barnett seconded by Councilmember Skogquist, to adopt a resolution approving a preliminary plat; Benton Addition on Ferry Street. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist and Wesp voted in favor. Motion carried. 7.1.B. RES/Federal Cartridge Variance. Mr. Palmer shared a background report stating Vista Outdoor / Federal Cartridge was requesting a sign area variance to decorate one of the four bulk storage silos as signage in excess of the maximum square feet allowed at 1101 East Main Street. The silo would be made to look like a shotgun shell with the company’s name and symbol. The subject property is zoned M-2 General Industrial and within the M-2 zoning district, business signage is allowed subject to zoning regulations. For this variance request, the applicable regulation says “No single business sign surface area shall exceed 200 square feet in area.” Sign area includes each wall surface that is utilized to display a message or to attract attention. Therefore, the entire lateral surface area of the silo should be included September 21, 2020 (Regular) Page 7 of 16 in the calculated sign area. However, since only one side of a double-face sign is used in computing the total surface area, staff calculated the total lateral surface area of the silo (cylinder) and divided it in half. Based on the sign area calculation the applicant is requesting a sign area variance of 940 SF. The Planning Commission reviewed the application and held a public hearing on June 2, 2020, and no members of the public spoke. There was some discussion on what types of art, replicas or decorations constitute signage and the item was postponed for additional information. Revised drawings were submitted showing the exact improvements proposed after which the Planning Commission recommended approval. Motion by Councilmember Skogquist seconded by Councilmember Wesp, to adopt a resolution approving a sign variance, 1101 East Main Street. Councilmember Wesp referred to importance of Federal Cartridge to Anoka and their 100th anniversary in 2022 as the first ammunition company to indicate the ammunition gauge by the color of the plastic and said this signage would tie in well with the upcoming celebration. Councilmember Barnett thanked the Planning Commission for their work and research and if homes on Main Street will be affected by this decision and confirmed approval was not based just on support for Federal Cartridge but out of due diligence and best action for all involved. Mr. Palmer said the applicant had shared how the applicant had worked to make a name for themselves as well as Anoka and how they may request painting more than one silo prior to their anniversary. Mayor Rice thanked the Planning Commission for working in accordance with the current sign ordinance. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist and Wesp voted in favor. Motion carried. 7.1.C. RES/Minnesota Firearms Variance and Conditional Use Permit. Mr. Palmer shared a background report stating Minnesota Firearms Training LLC located at 2520 Ferry Street was proposing to develop the subject property with an approximate 5,800 square foot building addition. The addition will include a 10-lane indoor shooting range and viewing area, new training room, and retail storage space. The addition is proposed at one story, 18-feet in height. The parking lot will also be expanded by 5 parking stalls, for a total of 34 stalls. The staff report provided an analysis of the proposed site plan including one variance, architecture and conditional use permit and in summary the site plan meets all dimensional standards aside from a front yard setback proposed at 30 feet from the Ferry Street right-of-way and how the applicant was requesting a 10-foot front September 21, 2020 (Regular) Page 8 of 16 yard setback variance. When the training center was constructed in 2018, the principal access was provided off of Ferry Street. At that time, it was difficult to meet the maximum setback requirement while maintaining an appropriate turning radius for vehicles, creating access issues from the Ferry Street entrance. The proposed addition is set forward 5 feet closer than the original building, requiring only a 10-foot variance vs. a 15-foot variance. The driveway access off of Ferry Street will not change. The goal of the 30-foot setback is so the building addition doesn’t extend too far in front of the existing building, to preserve green space in front, and to provide area for a storm water infiltration basin. Mayor Rice inquired if there was an ordinance that related to exhaust and infiltration and if so, was it just for handguns. Mr. Palmer responded those details were addressed through the building code and applied for both handguns and certain rifles. Dave Schafer, Diversified Construction, responded the HVAC was a special system that provided negative pressure to the building so no exhaust would go into the neighborhood and instead go through the filtration system. Councilmember Barnett asked about State-level requirements for berm replacement, HVAC, and led testing and confirmed this would not be the City’s responsibility. City Attorney Scott Baumgartner said Statute refers to noise conditions and other specifics all regulated at a higher level. Mr. Palmer confirmed the applicant would be required to meet all State regulations. Councilmember Skogquist said he was comfortable with most of the proposal but shared concerns with the industrial-looking facility in a mixed retail use area and felt this would not be a good look at this location with precast panels. Mr. Palmer said some of those concerns were mitigated at the Planning Commission level but based on how the CMU system would work had agreed with the proposal. Lea Kangas, Inside Outside Architecture, Inc., explained reasons for differences between the inside and outside concrete material and insulation to reduce the profile of the wall thickness, stating height was determined based on the HVAC and interior of the shooting range then explained more about the proposed design versus required criteria. She spoke about the water mitigation swale that would provide natural growth along Highway 10. Councilmember Wesp spoke about grade separation and railroad tracks and how that would work at Ferry Street and affect this property and how far south do we see Highway 47 affecting the property. Mr. Lee said the Highway 47 project would not affect this site directly in its current form, possibly only to Pleasant Street. Mr. Palmer confirmed staff has not been contacted by MnDOT about future expansion of this roadway. September 21, 2020 (Regular) Page 9 of 16 Councilmember Wesp said this is a high traffic area and did not see this as an issue as the applicant would blend the facility as well as they could and while it may stand out it was not much different than the nearby school district building. Mayor Rice suggested tree screening close to the building such as an arborvitae. Mr. Palmer said due to safety reasons the applicant is requesting minimal landscaping and foliage around the shop. Councilmember Skogquist cautioned against constructing a building that may not be intended for this district based on the neighborhood’s look and feel. Councilmember Barnett said the architect has spent a lot of time with the Planning Commission on options and improvements and agreed with Councilmember Wesp on how there will be other changes in this area in the future and how this site will be well kept and would support the request. Mayor Rice said he understood the building’s function and reasons for the precast panels but said he would prefer a different façade or additional screening, adding while he appreciated the owner’s work to create an attractive business he would prefer more in this area. Ms. Kangas suggested if approved they could enter into the 100% design phase and work then to address the Council’s concerns with the building design. Motion by Councilmember Wesp seconded by Councilmember Barnett, to adopt a resolution approving a variance and Conditional Use Permit for 2520 Ferry Street and continue to work with the applicant during the construction phase to include additional building elements that best fit the neighborhood. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, and Wesp voted in favor. Councilmember Skogquist voted nay. Motion carried. 7.1.D. RES/Mauer Motors Variance(s). Mr. Palmer shared a background report stating Mauer Main Chevrolet located at 435 West Main Street was requesting approval of a new freestanding pole- mounted Dynamic Display (computer controlled Electronic Message Center [EMC]) sign along Highway 10. The subject property is zoned Main Street Mixed Use, Subdistrict West Main Street. Within the zoning district, signage is allowed subject to zoning regulations. He explained how the subject property was considered legal nonconforming in regards to signage and said the applicant would like to eventually remove the existing freestanding pole-mounted sign along Highway 10, however, the existing sign along Highway 10 is reportedly under lease with Chevrolet Corporate for 10 years. He said the applicant would like the City to allow the new sign to be placed at a separate location from the existing sign (at the northwest corner of the property along Highway 10) until the September 21, 2020 (Regular) Page 10 of 16 lease expires on the existing sign. The new proposed EMC sign is 19’ x 9’ (171 SF) at a height of 40 feet. However, since the sign cannot be replaced without buying out the lease, the applicant would like approval of the new sign before the existing sign along Highway 10 is removed. This would require the approval of several variances in order to approve the new sign as well as recognize the legal nonconforming status of the property concerning signage. Staff believes the property is legal nonconforming because the dealership has existing in place for many decades and the property was rezoned in the 2000s from Highway Business to Main Street Mixed use. Councilmember Barnett clarified the lease term. Jeremy McFarland, Anoka, said the lease would expire February 3, 2030, then spoke about how the reader board could be offered for advertising to help promote Anoka as well as the dealership. Councilmember Skogquist asked if a condition could be included based on removal of sign by a certain date. Mr. Baumgartner said the difficulty is enforcing a condition of a variance once approved and that a variance cannot be sunsetted. Councilmember Wesp noted residents should not be affected much by the electronic lighting, that the Planning Commission recommended approval of Option 1 then referred to this long-standing business and his support especially in light of future changes to road alignment. Mr. Palmer noted there was not a variance for the larger sign but emphasized no variance was needed if they removed the larger sign and installed another sign. Motion by Councilmember Wesp seconded by Councilmember Skogquist, to adopt a resolution approving sign variance for Option 1, 435 West Main Street. Mayor Rice shared concerns about light emitting from the signage and if it could be directed more towards westbound traffic to protect the apartment complexes nearby. Councilmember Wesp agreed, adding similar concerns had occurred with the Anoka County Fairgrounds lighted signage. Mr. McFarland shared the sign contractor had included levels of brightness high on the lot which was by design but they were aware of concerns of nearby properties as well as those driving by and would be happy to angle the sign if needed. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist and Wesp voted in favor. Motion carried. 8. PETITIONS, REQUESTS AND COMMUNICATION None. 9. ORDINANCES AND RESOLUTIONS September 21, 2020 (Regular) Page 11 of 16 9.1 RES/Issuance of an On-Sale Intoxicating Liquor License; Nucky’s Speakeasy, LLC, dba; Club 330, 300 East Main Street. ACTED UPON AFTER PUBLIC HEARING 9.2 RES/Adopting 2021 Proposed Budget and Preliminary Tax Levy. Finance Director Brenda Springer shared a background report stating the 2021 budget process began in August and was based on Council directives and the 2020 goal session. The Council has reviewed the 2021 budget, as proposed by the City Manager, at several meetings in August and September. The proposed 2021 budget for all funds, excluding the HRA component unit, is $67,075,601, which is a 3.55% decrease from 2020. The 2020/2021 proposed levy is set at $7,589,800. This is down ($693,000) from the original staff proposed levy and explained how they arrived at a lower levy amount through a transfer in of $400,000 from the Liquor Fund, increasing the transfer in from the Electric Fund by $50,000, and a reduction of several items from the staff proposed budget. The proposed General Fund and Debt levy is an increase of $286,795 or 3.93% above the 2020 levy. Residential property taxpayers will see a small increase in City property taxes. The levy increase, along with changes in fiscal disparity contributions and distributions, changes in tax increment and market value all affect the tax rate and the amount of property tax levy distributed to individual properties. With the increase in the levy, the City Council is able to cover all general fund operating, debt service payments and some capital expenditures. This is a preliminary levy and cannot be increased; staff will continue working on the budget to propose additional cuts. The final levy will not be set until the December 21 Council meeting. Motion by Councilmember Barnett seconded by Councilmember Skogquist, to adopt a resolution relating to adoption of a Preliminary 2021 Budget and certifying a proposed property tax levy collectible in 2021 and setting public hearing dates. Councilmember Skogquist commented on the process and prioritization for this budget and said he was pleased with the result that included an additional police officer and asked for more work going forward for parks maintenance in the future. Councilmember Barnett said the proposed levy would increase property taxes an average of $64 per year and encouraged residents to pay attention to which entity was really driving the increase, adding a 3.9% tax levy was a reflection of a lot of staff and Council work. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist and Wesp voted in favor. Motion carried. September 21, 2020 (Regular) Page 12 of 16 9.3 RES/Consenting to the HRA Adopting a Tax Levy Collectible in 2021. Ms. Springer shared a background report stating the City Council must consent to any Authority levy prior to it becoming effective as required by Minnesota Statute. The HRA has adopted the proposed levy to be $313,000 which is approximately the maximum levy allowable and $17,620 more than the 2020 levy or a 5.8% increase. The HRA levy will be used to accomplish the goals of the Authority and in furtherance of its housing and redevelopment plans. The maximum levy allowed for the Housing and Redevelopment Authority is 0.0185 percent of taxable market value or approximately $313,876 and the HRA budget is included in the final 2021 City budget document. Motion by Councilmember Skogquist seconded by Councilmember Barnett, to adopt a resolution consenting to the Housing and Redevelopment Authority in and for the City of Anoka adopting a 2020 tax levy collectible in 2021. Mayor Rice said the Council asks a lot from the HRA to create opportunities for owner-occupied housing like earlier this evening on a very limited budget and while they have not asked for a full levy every year they work hard on behalf of all neighborhoods in the City. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist and Wesp voted in favor. Motion carried. 9.4 ORD/Real Estate Option Agreement; Richard Frank Investments Co. (1st Reading) Mr. Berger shared a background report stating the City and Richard Frank Investments entered into a purchase agreement and closed on real estate for the development of phase 2 of Eastview Meadows 2nd Addition, which is currently under construction. Richard Frank Investments Co. would like to enter into a real estate purchase option agreement for the remaining land owned by the City of Anoka known as Outlot A, Eastview Meadows 2nd Addition. The development of Outlot A will provide 2 new lots/residential units. The City currently has a cell tower lease with Crown Castle the owner of the cell tower located on Outlot A which includes an existing lease agreement that will expire in 2025. The City must retain ownership of the parcel until the lease expires. The future land sale price for the option would yield approximately $34,000.00 or $17,000.00 per lot. This is consistent with the price of land from Eastview Meadows Phase 1 and 2. Councilmember Barnett inquired about termination between now and 2025 and if either party could rescind. Mr. Baumgartner explained we would have six months to exercise an option of termination and the purpose of this action is to lock in the price and retain the developer. Mayor Rice spoke about access to the two lots and private development. September 21, 2020 (Regular) Page 13 of 16 Motion by Councilmember Wesp seconded by Councilmember Skogquist, to hold first reading of an ordinance approving the real estate purchase option agreement to convey real property to Richard Frank Investments Co. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist, and Wesp voted in favor. Motion carried. 9.5 ORD/Recommencement of Existing Electric Franchise Fee with Conexus Energy and the City of Anoka Electric Municipal Utility. (1st Reading) Ms. Springer shared a background report stating this is the first reading for recommencement of the existing electric franchise fee for the City of Anoka. The City recommenced the electric franchise fee with Connexus Energy on August 28, 2015, effective from September 1, 2015 through August 31, 2020. The City is also recommencing its electric franchise fee ordinance from 1995 with the City of Anoka Electric Municipal Utility as the franchisee, effective from September 1, 1995 through August 31, 2020. The electric franchise fee assigns right-of-way costs with users and provides funding for the street maintenance. The fee provides approximately $940,000 annually to the general fund supporting street maintenance costs which is about $1.3 million. The City is responsible for the management of about 66 miles of right-of-way and provides land access to the homes, business and other properties in the City of Anoka. Having a gas franchise fee requires the City to also have an electric franchise fee. Without the electric or gas franchise fees the City would need to consider replacing this revenue source with a tax levy of about $1.3 million. If the City were to consider an additional tax levy it would impact an average home of $240,000 by $174 a year or $14.50 a month. This same property is currently paying $3.48 a month in a gas franchise fee. Councilmember Skogquist asked if residents in the northeast portion of City on Connexus would see this fee but the rest do not. Ms. Springer confirmed Connexus customers would see this amount on their bill but Anoka Electric customers would not and that we do not pass along the charge. Councilmember Skogquist asked if other cities have this fee collected on their behalf. Ms. Springer confirmed all surrounding communities have separate franchise fees. Motion by Councilmember Skogquist seconded by Councilmember Wesp, to hold first reading of an ordinance recommencing the existing electric franchise fee within the City of Anoka, Minnesota (with Connexus Energy and City of Anoka Electric Utility). Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist, and Wesp voted in favor. Motion carried. September 21, 2020 (Regular) Page 14 of 16 9.5 RES/Accepting CARES Act Grant Funding Relating to Elections. RESOLUTION Mr. Lee shared a background report stating the Office of the Secretary of State received funding through the 2020 CARES Act to “prevent, prepare for, and respond to coronavirus (COVID 19), domestically or internationally, for the 2020 Federal Election Cycle. Minnesota law authorizes distribution of these funds to the local governments for use consistent with the State and Federal requirements. Anoka County was awarded their full County share of $272,782.08. The State will provide these funds as a block grant to the County in a fair, equitable, and mutually agreeable manner. Based on a default allocation mechanism provided by the State and the fact that most cities expect expenses to reach or exceed this default allocation, Anoka County will distribute the CARES Act funds to municipalities based on the default State allocations, which for Anoka City will total $9,180.31. Note this is a separate pool of funds from the larger CARES Act money that Anoka will receive. These funds may only be spent on Elections related costs. The County will be signing the grant award agreement from the State and will distribute funds once received, which requires the City to include an overview of authorized uses and 20% local match requirements. To date the City has spent funds on personal protective equipment and supplies, tabletop plastic shields for polling places and temporary staffing costs for election judges, retaining, hiring, training, etc. Motion by Councilmember Barnett, seconded by Councilmember Skogquist to adopt a resolution accepting CARES Act grant funding. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist and Wesp voted in favor. Motion carried. 10. UNFINISHED BUSINESS None. 11. NEW BUSINESS 11.1 Consideration of Appointments to Economic Development Commission; Julie Smith and Tory Olson. Mr. Lee said there currently exists two vacancies on the Economic Development Commission and the City received three applications. He said staff held interviews with all three applicants and recommended appointing Julie Smith and Tory Olson to the terms. Mayor Rice suggested a Councilmember nominate one member for the longer term then conduct a vote for the remaining position. September 21, 2020 (Regular) Page 15 of 16 Motion by Councilmember Skogquist, seconded by Councilmember Wesp to appoint Julie Smith to a term expiring December 31, 2022. Council conducted a vote by ballot for the remaining vacancy and majority vote was for Brendon Eason to expire December 31, 2021. Councilmember Wesp thanked everyone for applying and encouraged application to all Boards and Commissions. Councilmember Skogquist encouraged Ms. Smith be considered to future Economic Development Commission vacancies. 12. UPDATES AND REPORTS 12.1 Tentative Agenda(s). The Council reviewed the tentative agendas of the upcoming Council meetings. 12.2 2nd Quarter Financial Reports. Ms. Springer shared the City’s 2nd quarter financial reports that included assets of $14.4 million, liabilities of $13 million, and a fund balance of $463,000 then reviewed the governmental fund reserves up $104,000 due to an increase in revenues. She outlined building improvements were down $1.4 million due to the park maintenance building and State aid construction was down $3.5 million in preparation of the Highway 10 project. Ms. Smith shared changes in the TIF reserves and capital then noted revenues were down as well as property taxes but that licenses and permits had increased. She reviewed the enterprise funds in detail and operating income loss but how golf and liquor were doing well then reviewed internal service funds and types of investments and stated Anoka continues responsible financial management. 12.3 Update on CARES Act. Mr. Berger shared that on September 8, 2020, the Anoka City Council approved an allocation of a portion of the City CARES Act Funds towards a CARES Act Small Business Program. He shared the program budget and business eligibly and how the program began September 10 and will close October 9 for Council consideration on October 19. He said currently 15 businesses have applied for the program with approximately 12 more contacting the City for additional information. He said the Council gave direction to also reach out nonprofit and other entities and to date the program has paid ABLA $165.00 for their Zoom subscription and Youth First and Community Mission are working to gather a comprehensive list of their eligible expenditures. Staff has also been informed that CARES Act Funds may be used to cover the $3000.00 in audit expenses we will incur in January of 2021. September 21, 2020 (Regular) Page 16 of 16 Councilmember Barnett asked more about a $3,000 CARES Act fund expense. Mr. Berger said that amount was for the City as an additional cost for the CARES Act audit. Ms. Springer confirmed the contractor would not be charging any more than what has been approved. Councilmember Barnett asked if we are marketing the program appropriately. Mr. Berger said the application period was short in the beginning but that staff was working to promote, especially through word of mouth. 12.4 COVID-19: City Operations, Changes, and Impacts – Questions, Comments, and Discussion. None. 12.5 Staff and Council Input. Mr. Lee said staff would work to better show Council Chambers on camera to show all in attendance as virtual meetings continue. 13. ADJOURNMENT Councilmember Barnett made a motion to adjourn the Regular Council meeting. Councilmember Wesp seconded the motion. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist and Wesp voted in favor. Motion carried. Time of adjournment: 10:05 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk