Anoka City Council

November 16, 2020 (Regular) Page 1 of 13 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS NOVEMBER 16, 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; Community Development Director Doug Borglund; City Planner Clark Palmer; Police Captain Andy Youngquist; Finance Director Brenda Springer; Public Services Director Mark Anderson; Engineering Technician Ben Nelson; and City Attorney Scott Baumgartner. Absent at roll call: Mayor Rice. 3. COUNCIL MINUTES 3.1 Minutes of the October 26, 2020, Worksession. Minutes of the November 2, 2020, Regular Meeting. Councilmember Wesp requested a spelling correction for Mr. Winnerlund’s name in the November 2 Regular Meeting. Motion by Councilmember Wesp, seconded by Councilmember Barnett, to waive the reading and approve the October 26, 2020, Worksession and the November 2, 2020, Regular Meeting as corrected. Upon a roll call vote: Mayor Pro Tem Skogquist, Councilmembers Barnett, Freeburg, and Wesp voted in favor. Motion carried. 4. OPEN FORUM 4.1 Police Activity Update. Police Captain Andy Youngquist shared about the passing of retired Police Chief Dave Hoagland and thanked him for his service to the City and profound impact on the Police Department. He shared an update on DWI and DUI arrests, traffic and personal injury accidents, thefts from vehicles and vehicles fleeing officers, thefts by ‘porch pirates’, and awareness of potential super spreader events with November 16, 2020 (Regular) Page 2 of 13 COVID-19 cases and encouraged residents to follow the Governor’s executive orders and get tested if needed. Councilmember Barnett shared the book authored by retired Chief Revering entitled A Dog Named King and encouraged the community to read about the history of K-9s and advancements made over the years. OTHER INFORMATION UNDER OPEN FORUM Joe Anderla, 752 Hall Road, shared about his work on the Park Board over the last 40 years and concerns regarding comments made regarding the Park Board going against Council’s direction and Mayor Pro Tem Skogquist’s comments against City staff and asked for repair of this working relationship. Mayor Pro Tem Skogquist said he apologized for his words and acknowledged it was inappropriate but did not apologize for being upset regarding the tree cutting that occurred in Rudy Johnson Park. He agreed about the importance of having a good working relationship with Council, Commissions, and staff but shared the need to protect trees in the park and his perspective on how the original plan did not call for removal of two cottonwood trees and how this action was not an isolated incident. He spoke about other changes occurring that did not come back to the Council or the Boards or Commissions and how he will bring forward future concerns to the Council or City Manager. He stressed the need for staff to follow through with what was approved and to follow approved plans in the future. Commissioner Anderla said a plan is an outline for work and shared reasons for the tree removal then reiterated his concerns regarding how staff and the Park Board was treated. Councilmember Freeburg shared comments on how sometimes saving something results in other impacts and how these trees were old and hazardous and needed to be removed and that staff made the decision to remove them at no cost and that Council should give staff the freedom to make those decisions as they occur. Mayor Pro Tem Skogquist disagreed. Ed Burns, 549 Tyler Street, shared concerns about southbound Thurston Avenue over the railroad tracks and the warning signs and markers in place and requested that LED lights be put around the stop sign as the signage is easily missed and could result in serious injury. He then requested Mayor Pro Tem Skogquist resign as his actions reflected on all Councilmembers and the City. Steven Martin, Chillin’ Café, shared how he was forced to move from his proposed location and asked for a list of those businesses who received grants and how he tried to receive funding and respond to concerns raised when he was denied. He asked about an appeal process for grant distribution as there were November 16, 2020 (Regular) Page 3 of 13 incorrect assumptions made regarding his eligibility then expressed concerns about incentives and potential collusion between the landlord and City staff and shared concerns about the color of law as a criminal offense. Mayor Pro Tem Skogquist requested a list of grant recipients be forwarded to Mr. Martin. Erik Bobick, 327 Monroe Street, thanked the City for the decision to allow the Human Rights Commission to remain in an official capacity and for stressing the importance of the Commission and the ideas they bring forward but expressed concerns with the number of members and the Commission’s composition. He asked about procedures in place and the need to express concerns about the Commission being decommissioned not followed through by the City Council. City Manager Greg Lee shared comments about the need for members to be City residents and the potential for minors to be members and how the Commission serves at the pleasure of the Council which was the reason for their input. He said a worksession would be scheduled for December or January when the Commission was ready to discuss membership. Councilmember Freeburg said he was not in favor of the Human Rights Commission as it assumes there is a problem in the City and that he did not believe one existed. Mr. Bobick disagreed saying the Commission should be ready to serve whenever an incident occurred. Mayor Pro Tem Skogquist asked staff to contact Mr. Bobick with a potential worksession schedule. 5. PUBLIC HEARING(S) 5.1 Stormwater Rate Increase. RES/Approving a Stormwater Rate Increase. RESOLUTION Finance Director Brenda Springer shared a background report stating annually the City Council reviews the City utility rates during the budget process. For 2021, staff is recommending an increase in the stormwater rates beginning in January. The most recent stormwater rate increase was in 2020 and at that time, rates went up $.35 per month. Finance is recommending an increase in the current rate to reduce future debt service needs and to provide resources for the street renewal projects included in the Capital Improvement Plan forecasts. Finance is also recommending rate increases for stormwater in 2023 and 2026 to pay for planned infrastructure improvements and debt service. She said the proposed increase should generate about $40,000 additional revenues annually and the proposed November 16, 2020 (Regular) Page 4 of 13 increase in the storm water rate is $0.25 per month per residential lot with the other categories were shared. Mayor Pro Tem Skogquist said this appeared to be a 5.1% increase and asked if staff anticipated future years increases of 4-14%. Ms. Springer said increases were calculated on an annual basis based on projected stormwater projects. Councilmember Barnett asked how we rate against other cities. Ms. Springer responded these rates were comparable to other cities. Councilmember Freeburg shared how mandates have changed and runoff into the river and costs associated with treating runoff have increased and how costs are high with two rivers in the City and the importance of covering these costs. Mayor Pro Tem Skogquist opened the public hearing at 8:09 p.m. Being no comments Mayor Pro Tem Skogquist closed the public hearing at 8:10 p.m. NOTE: By motion from Councilmember Freeburg, which was seconded by Councilmember Wesp, 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 Wesp, seconded by Councilmember Barnett, to adopt a resolution relating to adoption of a stormwater utility rate increase for 2021. Upon a roll call vote: Mayor Pro Tem Skogquist, Councilmembers Barnett, Freeburg, and Wesp voted in favor. Motion carried. 5.2 Recycling Rate Increase. RES/Approving a Recycling Rate Increase. RESOLUTION Ms. Springer shared a background report stating annually the Council reviews City utility rates during the budget process. For 2021, staff is recommending an increase in the recycling rates beginning in January. Finance is recommending the following increase to recycling rates: Single Family Households from $3.90/mo to $4.75/mo an increase of $0.85 or $10.20/year Multi Family Households from $3.10/mo to $4.00/mo an increase of $0.90 or $10.80/year. The proposed rate increases will cover a new recycling processing charge from Republic Services, our current residential recycling hauler. This charge is due to changes in commodity sales, processing rates, and/or residual changes in the past twelve- November 16, 2020 (Regular) Page 5 of 13 month period. Republic Services reviews their costs and adjusts the processing fee accordingly each year and this annual charge began in January of 2019. Mayor Pro Tem Skogquist opened the public hearing at 8:12 p.m. Councilmember Barnett commented about Ace Solid Waste as the recycling hauler for 2022 and asked for rate comparisons to this year. Ms. Springer responded the current rate will get us through 2022 and no rate increase would occur once changed to Ace Solid Waste. Being no more comments Mayor Pro Tem Skogquist closed the public hearing at 8:13 p.m. NOTE: By motion from Councilmember Barnett, which was seconded by Councilmember Freeburg, and by a unanimous vote of the Council, agenda item 9.2 was moved up on the agenda and acted upon at this point. Upon a roll call vote: Mayor Pro Tem Skogquist, Councilmembers Barnett, Freeburg, and Wesp voted in favor. Motion carried. Motion by Councilmember Wesp, seconded by Mayor Pro Tem Skogquist, to adopt a resolution relating to adoption of recycling rate increase for 2021. Upon a roll call vote: Mayor Pro Tem Skogquist, Councilmembers Barnett, Freeburg, and Wesp voted in favor. Motion carried. 5.3 Renewal of Currency Exchange License. Mr. Lee shared a background report stating the State of Minnesota Department of Commerce is requesting the City Council comment on whether or not the State Currency Exchange License should be issued to Al’$ Check Cashing LLC, (previously operated as The UnBank Company LLP), 205 E Main St, Anoka. He said the Police Department supports the issuance of this license and noted there are no other Currency Exchange Licenses in the City. 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. Councilmember Barnett asked about how many police calls or issues would have to occur to constitute an issue. Captain Youngquist said he did not recall a lot of calls to the business and that while the location had some issues in the early 2000s, he was not aware of any recently. Councilmember Freeburg asked how long the location had been in place as he knew them to have a good reputation and serve a purpose in the community. Captain Youngquist said the location was either UnBank or Al’$ Check Cashing for the past 24 years. November 16, 2020 (Regular) Page 6 of 13 Mayor Pro Tem Skogquist opened the public hearing at 8:18 p.m. Being no comments Mayor Pro Tem Skogquist closed the public hearing at 8:19 p.m. 6. CONSENT AGENDA Motion by Councilmember Freeburg, seconded by Councilmember Barnett, to approve Consent Agenda 6.1 through 6.4. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. 6.3 Renewal of Currency Exchange; Al’$ Check Cashing, LLC, 205 E. Main Street. 6.4 Acceptance of Resignation from Human Rights Commission; Paula Moncrief. 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. ORD/Amending Chapter 78 Zoning, Article V, Division 5, Section 78- 316(3)(a) and Chapter 78 Zoning, Article 1, Section 78-2 Definitions (Adding Definition and Use of Vet Center). (2nd Reading) ORDINANCE Community Development Director Doug Borglund shared background with the Council stating on June 22, 2020 the City Council discussed the property at 700 East Main Street is the former location of Gould’s Diamonds & Jewelry. He said first reading was held on November 2 and had no concerns or comments. The property was purchased by C2A, LLC and the new owners are seeking to renovate and lease the existing building to the U.S. Department of Veterans Affairs (VA) for the establishment of a “Vet Center” (Readjustment Counseling). Regarding Vet Centers, the VA’s website says “Readjustment counseling is a wide range of psycho social services offered to eligible Veterans, Service members, and their families in the effort to make a successful transition from military to civilian life. The reason for the discussion is the subject property is zoned Main Street Mixed Use, East Main Street Sub-district 2 (EM-2). The proposed use is not specifically defined in the zoning code. The use is consistent with a few different uses either allowed or not allowed in the zoning district. The new owners have submitted a November 16, 2020 (Regular) Page 7 of 13 building permit application and plans for renovating the building. Staff is seeking direction from the City Council related to the interpretation of the zoning code and the proposed Vet Center use. The City Council on June 22, 2020 provided interpretation and direction to bring forward necessary zoning text amendments to the Zoning Code. The building permit was issued for the Vet Center back in June of 2020 and is currently under construction. The Planning Commission held a public hearing on October 6, 2020 and no comments were made by the public and the Planning Commission recommended approval of adding Vet Center as a permitted use in the Main Street Mixed Use, East Main Street Sub-district 2 (EM- 2) and further adding (Veterans) as presented. Motion by Councilmember Wesp seconded by Councilmember Freeburg, to hold second reading and adopt an ordinance Amending Chapter 78, Article V, Division 5, Section 78-316(h)(3)(a) MS-EMS-2 Permitted Uses and Chapter 78, Article 1, Section 78-2, Definitions of the Code of the City of Anoka Minnesota. Councilmember Wesp commented about potential confusion on the terms vet versus veterinary and veteran’s administration. Mr. Borglund confirmed the ordinance text was clear on the use. Upon a roll call vote: Mayor Pro Tem Skogquist, Councilmembers Barnett, Freeburg, and Wesp voted in favor. Motion carried. 7.1.A. ORD/Amending Chapter 78, Article V, Division 3, Section 78-270(f)(2); B-6 Conditional Uses. (1st Reading) City Planner Clark Palmer shared background with the Council stating Chad Wetzel, owner of Three Rivers Mechanical, is seeking a zoning text amendment to allow his business to operate within the B-6 Neighborhood Commercial Business District. Three Rivers Mechanical is an HVAC contractor business located in the City of Anoka and the applicant would like to purchase the property located at 630 East River Road and build a new building for their company headquarters. The new building would include an office and warehouse. The property includes a vacant building with no current use. The property is zoned B- 6 Neighborhood Commercial Business. The use of “Service businesses with showrooms or workshops, including office-warehouse (contractor, painter, HVAC)” is a conditional use that is allowed in the B-1 Highway Business District but is not allowed in the B-6 District. When staff met with the applicant, staff informed him a zoning text amendment would be required to consider the use allowed in the district. Mayor Pro Tem Skogquist thanked the applicant for bringing this item forward as work was needed on this site and asked about the façade of the proposed building. November 16, 2020 (Regular) Page 8 of 13 Chad Wetzel, 1147 5th Avenue, shared he had renovated other buildings in Anoka too and said this would be a good location to address then explained his plans to construct a 30x100-foot building with warehouse, office, and training space and make the front elevation look like an old fire hall that will meet the required standards. Mr. Palmer described the district’s architectural standards and how they will be followed. Councilmember Freeburg thanked Mr. Wetzel for his work in addressing properties such as this and said this building was not served by sewer and water. Mr. Wetzel said the building was served by gas and water but not sewer and how they will either tie into the system by boring under 7th Avenue or Elm Street. Councilmember Barnett thanked Mr. Wetzel for his investment in Anoka then asked about increased traffic due to this development and confirmed proper notice to the surrounding neighborhood was made. Mr. Palmer said no resident mailing had occurred as this was a text amendment but that the Planning Commission was recommending this use be allowed as a conditional use which would require development plan approval and public hearing. Mr. Wetzel said he did not envision a lot of traffic with the exception of some retail and trucks with off-street parking. Councilmember Wesp said the former Goodrich Pharmacy had been vacant for years after Highway 10’s plans shifted and that it was good to see this site being reused. Motion by Councilmember Wesp seconded by Councilmember Freeburg, to hold first reading of an ordinance Amending Chapter 78, Article V, Division 3, Section 78-270(f)(2) Conditional Uses of the Code of the City of Anoka Minnesota. 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/Approving a Stormwater Rate Increase. ACTED UPON AFTER PUBLIC HEARING. 9.2 RES/Approving a Recycling Rate Increase. November 16, 2020 (Regular) Page 9 of 13 ACTED UPON AFTER PUBLIC HEARING. 9.3 RES/Highway 10 Rum River Bridge and Corridor Project; Authorize Municipal Consent Approving Layout of Highway 10 to the Minnesota Department of Transportation (MnDOT). Engineering Technician Ben Nelson shared a background report stating Council on August 5, 2020, MnDOT submitted to the City the final layout with a letter requesting approval. On September 8, 2020 the public hearing for the project was held and no comments where received from the public. Minnesota Department of Transportation (MnDOT) is undertaking improvements to Highway 10 in the City of Anoka. He outlined the project in detail and said the City needs to consider a resolution formally approving Municipal Consent. State Statute governing the process require this action to occur within 90 days of MnDOT providing notice and request to the City to conduct the municipal consent process in order to keep the project on schedule, which is January 1, 2021. Staff is recommending Council to adopt the proposed resolution which would approve the right of way acquisition and alteration of accesses but was not yet a financial commitment on behalf of the City. Councilmember Wesp confirmed the bridge height would be the same as the Pleasant Street bridge and easier to access the river than the current bridge. Councilmember Freeburg said this work had been discussed 24 years ago and thanked staff and Mr. Lee for bringing this to conclusion and for identifying funding. City Attorney Scott Baumgartner suggested a revision be made to the resolution for clarity that the final layout be approved by the Council. Motion by Councilmember Freeburg seconded by Councilmember Wesp, to adopt a resolution approving Highway 10 Rum River Bridge and corridor project; authorize municipal consent approving layout of Highway 10 to the Minnesota Department of Transportation as amended. Upon a roll call vote: Mayor Pro Tem Skogquist, Councilmembers Barnett, Freeburg, and Wesp voted in favor. Motion carried. 9.4 RES/Calling for a Public Hearing on the Issuance of a Sports Facility Revenue Note and Authorizing the Publication of a Notice of Hearing (Anoka Area Ice Arena Project. Councilmember Wesp said he would be abstaining from this item due to a potential conflict of interest. November 16, 2020 (Regular) Page 10 of 13 Ms. Springer shared a background report stating Minnesota Statutes gives municipalities the authorization to issue revenue obligations for the purpose of improving public sports facilities. The City of Anoka received a request for tax exempt revenue financing in an amount not to exceed $5,000,000 from the Anoka Area Ice Arena Association, Inc., a Minnesota nonprofit corporation and 501(c)(3) organization. The Anoka Area Ice Arena facility is located at 4111 7th Ave NW in the City of Anoka. Financing would be for the replacement or renovation of the compressor system and the dehumidification system and the process was similar to what occurred with the Volunteers of America. Councilmember Freeburg asked if the City waived the administrative fee for Volunteers of America. Ms. Springer said the fee had not been waived and was calculated at 1% of the financing cost up to a certain amount. Mayor Pro Tem Skogquist asked if these are bonds under the City or just need City approval. Ms. Springer said the bonds would be in the ice arena’s name and would not be liable for any debt payment but would be using the City’s credit to get a lower interest rate. Councilmember Barnett confirmed there would be no risk to the City or its credit rating if the bonds were not paid and asked about the requirements to access this fund. Ms. Springer said the City’s credit rating would not be affected and explained that State Statute allows this issuance if approved by the City. Councilmember Freeburg asked about the administrative workload involved for the $50,000 fee. Ms. Springer said the resolution would allow the City to hold the public hearing and that the fee could be discussed during the hearing for potential approval. She noted the issuance would involve minimal staff time as most work occurs with Ehlers and Associates and Bolton and Menk. Motion by Mayor Pro Tem Skogquist seconded by Councilmember Barnett, to adopt a resolution calling for a Public Hearing on the Issuance of a Sports Facility Revenue Note and Authorizing the Publication of a Notice of Hearing (Anoka Area Ice Arena Project). Upon a roll call vote: Mayor Pro Tem Skogquist, Councilmembers Barnett, and Freeburg voted in favor. Councilmember Wesp abstained. Motion carried. 10. UNFINISHED BUSINESS None. 11. NEW BUSINESS 11.1 Riverside Development; Development Access, David Weekley Homes. November 16, 2020 (Regular) Page 11 of 13 Community Development Director Doug Borglund shared a background report with Council stating David Weekley Homes would like to have a gated entrance into the new Riverside development on 4th Avenue. The approved development plans provide for a wrought iron style fence with stone pillars at key locations on all four sides of the development except the main ingress and egress on 4th Avenue. He said David Weekley Homes would like to have a controlled access into the development then shared concept gate plans and site photos. Amir Siddiqui, David Weekley Homes, shared how they thought they had permission when this project was approved and how 4th Avenue was originally not getting fencing but was agreed to as recommended by Council. He said more than 50% of their developments were gated communities as part of their homeowners association which provided a secure environment and 24-hour access by police and fire with battery back-up in the event of a power outage. Councilmember Barnett thanked the applicant for the explanation and premium addition in the City and that a gated community would look nice and provide security and the perception of security and said she supported the request as long as EVP was in place. Councilmember Freeburg said the project has been marketed as a gated community and felt the applicant knew what was best for their project and supported the gate. Mr. Siddiqui said they held off marketing to confirm City approval but added they thought this was formality to be done at an administrative level with regard to exact location and style and not approval by the Council. Councilmember Wesp asked if police or fire had any concerns with the proposal. Captain Youngquist responded they had no concerns if installed with an Opticom sensor. Mr. Siddiqui confirmed they would provide codes and Knox Box access emergency access and how the gate would be activated once the development reached 80-90% occupancy. Motion by Councilmember Wesp seconded by Councilmember Barnett, to approve the request for a gated entrance in the Riverside housing development on 4th Avenue on the condition that an EVP (Emergency Vehicle Pre-emption) System installation be required to be installed and maintained by the David Weekley Homes/Riverside Homeowners Association for the purpose of access for Police and Fire. Mayor Pro Tem Skogquist said he was not in support of the gate in this area as he felt it would provide an unwelcoming look for the transit village around the public land then asked about delivery access. Mr. Siddiqui responded a common code would be provided for deliveries. Upon a roll call vote: Councilmembers Barnett, Freeburg, and Wesp voted in favor, Mayor Pro-Tem Skogquist voting nay. Motion carried. November 16, 2020 (Regular) Page 12 of 13 12. UPDATES AND REPORTS 12.1 Third Quarter Financial Update. Ms. Springer shared the City’s third quarter financial update sharing total revenues were up approximately $2.8 million compared to 2019, total expenditures up $1.2 million, then reviewed governmental funds of $11 million in assets and $14.7 million in liabilities. She said fund balances were $13 million then reviewed proprietary fund balances and revenues up $723,000 over 2019 and expenditures in the general fund up $209,000. Ms. Springer said the enterprise funds reflected net income with the exception of recycling and how electric, golf and liquor revenue was up then reviewed operating income and investments and said the City continues to be financially sound. 12.2 Tentative Agenda(s). The Council reviewed the tentative agendas of the upcoming Council meetings. Councilmember Freeburg requested further discussion as a result of comments made during open forum. Councilmember Wesp agreed and requested input be included by the City Attorney on how other cities handle similar situations regarding behavior unbecoming a Councilmember. 12.2 COVID-19: City Operations, Changes, and Impacts – Questions, Comments, and Discussion. Mr. Lee referred to the updated Governor’s orders reducing restaurant service hours and capacity and impacts to businesses in Anoka and that staff would be meeting with business owners on how the City can help during this time and if Council had any input prior to the meeting. Councilmember Barnett suggested allowing the business owners to respond for Council reaction on a case by case basis. Mayor Pro Tem Skogquist asked about staffing impacts relating to quarantining and concerns about in person meetings for Council and Boards/Commissions and that alternatives were clearly communicated. Mr. Lee said some staff have tested positive but the City was following protocol and was set to have many working from home effectively but that their main concern was for emergency responders. He said staff was currently reviewing how to set up meetings for public attendance virtually. Mayor Pro Tem Skogquist noted Quad Cities staffing needs to be considered as well as they cover the meetings. November 16, 2020 (Regular) Page 13 of 13 Mr. Nelson noted a virtual open house would be held later this month for the 2021 Street Renewal Project. 12.3 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: 9:18 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk