Anoka City Council

October 5, 2020 (Regular) Page 1 of 9 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS OCTOBER 5, 2020 1. CALL TO ORDER Mayor Pro Tem Skogquist called the meeting to order at 7:00 p.m., followed by the Pledge of Allegiance. 2. ROLL CALL Present at roll call: Mayor Pro Tem Skogquist, Councilmembers Barnett, Freeburg, and Wesp. Staff present: City Manager Greg Lee; City Planner Clark Palmer; Police Chief Eric Peterson, Public Services Director Mark Anderson; Engineering Technician Ben Nelson; City Assessor Scott Varner, Code Enforcement Technician Mark Lucht, Housing and Redevelopment Manager Darin Berger; and City Attorney Scott Baumgartner. Absent at roll call: Mayor Rice. 3. COUNCIL MINUTES 3.1 Minutes of the September 21, 2020, Regular Meeting. Motion by Councilmember Barnett, seconded by Councilmember Wesp, to waive the reading and approve the September 21, 2020, Regular Meeting as presented. Upon a roll call vote: Mayor Pro Tem Skogquist, Councilmembers Barnett, and Wesp voted in favor. Motion carried. 4. OPEN FORUM 4.1 Police Activity Update. Police Chief Eric Peterson shared about former Chief Revering recently authoring a book about K-9 King, that Domestic Violence Awareness Month was occurring and areas would be lit in purple to raise awareness of domestic violence, and the 30th annual Anti-Crime Commission fundraiser. He spoke about the COVID-19 barrier free testing that would occur October 13-15 at the Anoka Armory where organizers will likely test 1,200 people each day then shared pandemic statistics in Anoka. Councilmember Barnett suggested use of the City’s reader board to assist with fundraising efforts then asked about speeding concerns on 5th Avenue during October 5, 2020 (Regular) Page 2 of 9 school opening and concerns over recent over serving that occurred in the entertainment district and how impressed she was with the department’s quick response. Chief Peterson said those concerns were important to be addressed quickly. Councilmember Wesp said asked about the recent name change of the bar Danno’s and if an ownership change had occurred. Chief Peterson said the liquor license was held through the person and no ownership change had occurred. OTHER INFORMATION UNDER OPEN FORUM Ed Burns, 549 Tyler Street, spoke about the presence of weeds and garbage along North Street then asked about the 2021 street renewal project that did not include Golf Street and Jackson Street as it was in need of repair and asked when Van Buren Street would be reviewed. Engineering Technician Ben Nelson said the Swede Town area was split into two areas due to available funding. 5. PUBLIC HEARING(S) 5.1 Assessment for Services Against Property with Delinquent Accounts. RES/Adopting Assessment for Services Against Property with Delinquent Accounts. RESOLUTION City Manager Greg Lee shared a background report stating statute allows for the certification of unpaid service billings which may include costs associated with weed and diseased tree removal, false alarms, delinquent utility accounts, and other miscellaneous services to the public including removal of public health hazards from private property, including recycling contamination. He said utility accounts that are delinquent as of August 1 and remain unpaid as of September 1, 2020 will be collected utilizing special assessments. Certification of the assessment for services allows the City to collect for services it has provided and deferment delays collection but provides for eventual collection with accrued interest. He shared there were 93 assessment for services proposed with 32 being code enforcement related issues and three with emergency water services repair of significant cost. Councilmember Barnett asked about unpaid utility bills in relation to the grace period due to COVID-19. Mr. Lee explained while the City did not conduct utility shut offs over that time but the repayment would still occur through the assessment process. Mayor Pro Tem Skogquist opened the public hearing at 7:22 p.m. October 5, 2020 (Regular) Page 3 of 9 Resident, 1010 Grant Street, shared concerns about the assessment costs regarding water and sewer repairs that occurred then shared concerns about flooding that occurred at the same time. Resident referred to photos and videos and how staff did not respond to the resident’s concerns about flooding at the same time as the street reconstruction project that left large dips in her yard. Public Services Director Mark Anderson said he was unaware of these concerns but would do further review in order to respond then explained the assessment was for a water service issue to the property which is owned by the property owner and would have to determine where the watermain broke. Mr. Nelson explained the work involved a street surface renewal project and that no water service work occurred as part of the project. Resident said the entire street was torn up as well as their yard and sidewalk then spoke about receiving two difference invoices for the work and how the resident’s neighbor was having the same issue as well. Councilmember Barnett suggested postponing a decision on this property until more information can be received. Mayor Pro Tem Skogquist asked about the timeline for certification. Mr. Lee responded certification to Anoka County was due by November 15. Being no more comments Mayor Pro Tem Skogquist closed the public hearing at 7:36 p.m. NOTE: By motion from Councilmember Barnett, which was seconded by Councilmember Freeburg, and by a unanimous vote of the Council, agenda item 9.1 was moved up on the agenda and acted upon at this point. Upon a roll call vote: Mayor Pro Tem Skogquist, Councilmembers Barnett, Freeburg, and Wesp voted in favor. Motion carried. Motion by Councilmember Freeburg, seconded by Councilmember Barnett, to adopt a resolution adopting assessment for services against property with delinquent accounts, excluding 1010 Grant Street for consideration at the next Council meeting. Councilmember Barnett asked about another notice of objection included in this assessment adoption for Luke and Helen Dulgar at 819 Park Street. City Attorney Scott Baumgartner said he was unclear about the basis for the objection that involved a citation for a code enforcement issue but that the property owners were likely preserving their right to appeal at district court. Upon a roll call vote: Mayor Pro Tem Skogquist, Councilmembers Barnett, Freeburg, and Wesp voted in favor. Motion carried. October 5, 2020 (Regular) Page 4 of 9 6. CONSENT AGENDA Motion by Councilmember Wesp, seconded by Councilmember Barnett, to approve Consent Agenda 6.1 through 6.2. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. Upon a roll call vote: Mayor Pro Tem Skogquist, Councilmembers Barnett, Freeburg, and Wesp voted in favor. Motion carried. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 7.1 Planning Items: 7.1.A RES/Final 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, and 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 made sense to develop the property as single-family due to the proximity and visibility to Ferry Street and high traffic volumes. Mayor Pro Tem Skogquist clarified the lots were 7,500 square feet minimum and zoned high density currently and much larger than a 10,000-square foot lot. Mr. Nelson said the lot size exceeded R-1 lot requirements so the plat would essentially be low density. Councilmember Wesp asked if lot size included the 20-foot easement. Mr. Nelson confirmed the trail easement was part of the property. Mayor Pro Tem Skogquist shared reasons for the need to review proposed architecture prior to plat approval to ensure the design was acceptable. Housing October 5, 2020 (Regular) Page 5 of 9 Manager Darin Berger spoke about the proposed architecture and shared renderings of home examples. Charles Lane, Morningside Exteriors, said they would bring forward plans once driveway location and elevations were known, stating plans would depend on home configuration, square footage, and the need for marketability to ensure the homes fit the neighborhood. He shared renderings of proposed home styles and said the timeline depended on the process but their hope was to start in spring 2021. Councilmember Wesp said the challenge will be the driveways and asked if the developer preferred no driveways off Benton Street. Mr. Lane responded traffic on Highway 169 is only going to increase and the east lot was somewhat landlocked due to easements and how they would want the driveway as far west as possible. Mayor Pro Tem Skogquist asked about how close the plat can be to Highway 169. Mr. Nelson responded plats could be five feet from the property line and noted Green Avenue would be a similar area to compare to. Mr. Lane said if the plat needs to move east a bit, he could accommodate that and asked about plans to retain Benton Street going forward. Mr. Nelson said MnDOT has no plans to close Benton Street in the future and that the only closed street planned is Gray Street as requested by residents. Councilmember Freeburg confirmed financing was in place for the project. Motion by Councilmember Freeburg seconded by Councilmember Wesp, to adopt a resolution approving a final plat; Benton Addition on Ferry Street. Upon a roll call vote: Mayor Pro Tem Skogquist, Councilmembers Barnett, Freeburg, and Wesp voted in favor. Motion carried. 8. PETITIONS, REQUESTS AND COMMUNICATION None. 9. ORDINANCES AND RESOLUTIONS 9.1 RES/Adopting Assessment for Services Against Property with Delinquent Accounts. ACTED UPON AFTER PUBLIC HEARING 9.5 ORD/Recommencement of Existing Electric Franchise Fee with Conexus Energy and the City of Anoka Electric Municipal Utility. (2nd Reading) October 5, 2020 (Regular) Page 6 of 9 ORDINANCE Mr. Lee shared a background report stating this is the second reading for recommencement of the existing electric franchise fee for the City of Anoka and no changes have been made since first reading. 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 Barnett said this ordinance was a good idea especially because the City would have to come up with the funding which would then be applied to the residents and said this proposal was in the best interest of the community. Motion by Councilmember Barnett seconded by Councilmember Freeburg, to hold second reading and adopt an ordinance recommencing the existing electric franchise fee within the City of Anoka, Minnesota (with Connexus Energy and City of Anoka Electric Utility). Mr. Lee said this was drafted as a five-year agreement and suggested that Council revisit the amounts in 2024 to adjust for inflation. Upon a roll call vote: Mayor Pro Tem Skogquist, Councilmembers Barnett, Freeburg, and Wesp voted in favor. Motion carried. 9.3 RES/2021 Swede Town Street Renewal Project; Authorize Feasibility Report. Mr. Nelson shared a background report stating in 2000 the Anoka City Council began the Street Renewal Program (SRP) for the reconstruction of City streets and infrastructure at or reaching the life expectancy typically around 70 years. He shared statistics about the City’s 21 years of street renewal and how Council awarded construction contracts for the 2020 Combined Street Improvement Project now underway. He said the SRP project area for 2021 is proposed to be approximately 0.44 mile of fully reconstruction in the Swede Town neighborhood. Council shall be aware due to COVID-19 and budget reasons the October 5, 2020 (Regular) Page 7 of 9 proposed project may be split into two separate projects over two years then shared streets proposed to be included for study within the 2021 Swede Town SRP feasibility report section. Mayor Pro Tem Skogquist asked if bonding would help cover this project and thanked staff for the five-year schedule which he hoped for the ability to accelerate where possible. Mr. Nelson responded the bonding was for 2019 and 2020 street projects and not for 2021. Councilmember Freeburg said he was proud of how much infrastructure work has been done since he started serving on the Council and explained how bonding costs would have been much higher had street conditions been poor, adding street reconstruction is a great urban renewal project. Mayor Pro Tem Skogquist agreed then spoke about quality concerns on some projects. Councilmember Freeburg responded some of this was due to increased wear and tear from garbage trucks and school buses. Councilmember Wesp asked about the number of watermain breaks that have occurred under new asphalt on 10th Lane and how much projects have changed over the last 20 years, including driveway repair and residents investing in their properties. Mr. Anderson shared some history of the street surface improvement area shared and the need for sufficient fire service coverage and road ratings. Mr. Nelson neighborhood responded seven water service concerns have occurred over the past 20 years which was not unusual, clarifying the water service failed but not the watermain. Motion by Councilmember Wesp seconded by Councilmember Freeburg, to adopt a resolution for the 2021 Swede Town Street Renewal Project; Authorize Feasibility Report. Mayor Pro Tem Skogquist asked if the services were stainless steel and for more information on the benefits of concrete versus asphalt for longer street life. Mr. Nelson said the services were most likely copper in this area from 1970 and said typically concrete is much more expensive but could review the pros and cons at a future worksession. He explained how unit assessments were based on home value and the assessment process included variables based on the amount of front footage and higher rates for commercial properties. Councilmember Barnett asked that assessment costs be included as part of the worksession discussion. Upon a roll call vote: Mayor Pro Tem Skogquist, Councilmembers Barnett, Freeburg, and Wesp voted in favor. Motion carried. October 5, 2020 (Regular) Page 8 of 9 10. UNFINISHED BUSINESS None. 11. NEW BUSINESS None. 12. UPDATES AND REPORTS 12.1 Tentative Agenda(s). The Council reviewed the tentative agendas of the upcoming Council meetings. 12.2 Update on CARES Act. Mr. Berger shared an updated allocation of the City’s CARES Act Small Business Program. He said the program budget was $300,000 with a $10,000 maximum grant amount per business. Eligible businesses must have less than 50 FTE (full time equivalent) employees and includes non-profit businesses. He said the program went live on September 10 and the application period runs until October 9, after which the City Council will have an opportunity to discuss the program at their October 19 meeting. Currently, 19 businesses have applied for the program, with approximately a dozen more contacting the City for additional information. There are 16 small business applicants and two non-profit applications and staff also reached out to other organizations to share the program information, including three nonprofit organizations. He noted there is some overlap with the Anoka County program and that staff will review to ensure applications were not made for the same expenses, adding the County has received 40 applications from Anoka businesses and has been a good partner in this effort. Councilmember Barnett confirmed we will know the result of the County’s funding selections prior to having to issue City approval then thanked Mr. Berger for his great work in getting this information shared quickly in the business community. Mayor Pro Tem Skogquist thanked staff as well, stating this fund will assist a lot of businesses and encouraged others to apply then asked if funding can be used for other items such as marketing to attract businesses to Anoka. Mr. Berger said while there have been changes to eligible costs over time, he did not believe marketing would be an eligible expense. Councilmember Barnett asked about the process for confirming qualified expenses and whether we will know totals and if there is excess funding for possible consideration of another round of funding. Mr. Berger said staff was October 5, 2020 (Regular) Page 9 of 9 working with Baker Tilly to help identify eligible costs prior to final approval by Council. 12.3 COVID-19: City Operations, Changes, and Impacts – Questions, Comments, and Discussion. Mr. Lee shared again the free COVID-19 testing site at the Anoka Armory October 13-15 and encouraged members of the public to attend. 12.4 Staff and Council Input. None. 13. ADJOURNMENT Councilmember Freeburg made a motion to adjourn the Regular Council meeting. Councilmember Wesp seconded the motion. Upon a roll call vote: Mayor Pro Tem Skogquist, Councilmembers Barnett, Freeburg, and Wesp voted in favor. Motion carried. Time of adjournment: 8:32 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk