Anoka City Council

November 22, 2021 (Worksession) Page 1 of 7 WORKSESSION OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS NOVEMBER 22, 2021 1. CALL TO ORDER Mayor Rice called the worksession meeting to order at 5:03 p.m. 2. ROLL CALL Present at roll call: Mayor Rice, Councilmembers Barnett, Weaver, Wesp, and Skogquist. Staff present: City Manager Greg Lee; Finance Director Brenda Springer; Public Services Administrator Lisa LaCasse; Engineering Technician Ben Nelson; Communications Manager Pam Bowman; Electric Utility Director Greg Geiger; Police Captain Andy Youngquist. Absent: None. 3. COUNCIL BUSINESS and/or DISCUSSION ITEMS 3.1 Discussion; Trunk Highway 10 Projects; Communications and Public Engagement Update. Engineering Technician Ben Nelson shared a staff report with background information stating beginning in the spring of 2022, the City of Anoka will be reconstructing U.S. Highway 10/169 from the west City limit line with Ramsey to 1,100 feet west of the Trunk Highway 47/169 Ferry Street interchange. The project will transform this signalized corridor into a freeway providing a roundabout interchange at Thurston Avenue, an underpass at Fairoak Avenue, and a reconstructed interchange at Main Street. There will be frontage road networks on both the north and south sides of the highway and total estimated project cost will be $73.5 million. Beginning in the spring of 2022, Minnesota Department of Transportation (MnDOT) will be reconstructing U.S. Highway 10 from 1,100 feet west of the Trunk Highway 47/169 Ferry Street interchange to just east of 7th Avenue. The project will include the replacing the U.S. Highway 10 bridge over the Rum River, transforming the Ferry Street interchange into a single point diamond interchange and the addition of auxiliary lanes between Ferry Street and 7th Avenue and have a total estimated project cost of $64 million. At a communications meeting held in March of 2021, MnDOT committed to administrating and funding the communication engagement for both of these massive Highway 10 projects. In July of 2021, Zan Associates was selected as the communications consultant and became under contract with MnDOT in November 2021. Zan has been providing planning, communication and November 22, 2021 (Worksession) Page 2 of 7 engagement services on transportation/transit projects since it was first formed in 2001. Zan has developed an excellent reputation for successful, inclusive/creative communications and engagement for a wide array of MnDOT highway construction communication projects. Mr. Nelson shared more about the scope of communication work that included keeping the community and regional travelers informed about the progress of the project, access & circulation, ongoing engagement and outreach, advertising and marketing, maintain a project website, provide local communication and more. He said the goal is to include one place for any concerned person to seek more information. He said the contract provides communication services for both the City’s U.S. Highway 10/169 Improvement Project as well as MnDOT’s Rum River Bridge Replacement and Corridor Improvements Project and to the public it will look like one organized massive Highway 10 project. He shared the project hotline, email, and website being developed which will go live in December then introduced the consultants to share more about the communications of these projects. He noted that MnDOT and the City are committed to addressing neighborhood traffic impacts during construction and that additional time is needed to develop and implement a local traffic mitigation strategy that is acceptable for both the State and City. Mr. Nelson said Zan Associates will be responsible for communicating these strategies to the public which will be paid for by the State with no cost share required by the City. He said staff was seeking input on any aspects associated with MnDOT’s communication for the Highway 10 projects. Jennifer Wiltgen, MnDOT Metro North Area Coordinator, shared about the construction administration and projects. Kristin Blaha, Zan Associates and Highway 10 Anoka Public Information Manager, shared about the communications and engagement effort as part this project and how they intend to work to communicate traffic changes that included project email updates, social media, paid advertising, open houses, and others. She noted anything forwarded from their office would be shared with Council but noted questions from the public should be directed to MnDOT instead of the City to ensure a consistent message throughout the projects. Councilmember Skogquist asked if there was an overall plan yet on closures and the process when concerns occur. Ms. Blaha explained signage and other ways to communicate closures, similar to those used last year, adding more strategies will be used as part of the project meetings. Joy Micianok, Zan Associates, shared about the traffic control plan to be used, portable messaging signage that will provides updates in real time, and a layered approach of communication channels. She said they have been doing this work for a very long time and that her team works hard to get out ahead of traffic impacts and will encourage anyone to sign up for updates where information can be pushed out information two weeks in advance. She said they will work to November 22, 2021 (Worksession) Page 3 of 7 inform residents, business and property owners through mailers, social media, paid advertising, and other means. Councilmember Barnett asked how long these communication services will be offered and if they will inform the Council of specific resident issues so all are fully aware of concerns. Dan Penn, MnDOT, said they will hold weekly construction meetings with Bolton-Menk and City staff where issues are discussed and addressed as well as Maintenance of Traffic meetings that will outline large, upcoming traffic changes. He shared their recent work with the I35W MnPASS project that involved the same team and spanned across seven communities for over three years and that Zan Associates did a great job keeping the public informed. Mr. Lee said staff would also hold regular Highway 10 updates at Council meetings to help keep both the Council and public informed. Ed Evans, Anoka, asked how much information would be shared outside the City, such as the City of Elk River, as much of the traffic is not from Anoka residents. Melissa Barnes, MnDOT Metro North Area Manager, said they will certainly be communicating changes with the surrounding cities as well as Anoka. 3.2 Discussion/Street Renewal Program; 2022 Assessment Rates. Mr. Nelson shared a staff report with background information in 2016, 2017, 2018, 2019, 2020, and 2021 the assessment rates were increased approximately 6%, 2.5%, 3.5%, 5.8%, 6%, and 7.1% respectively for the Street Renewal Program (SRP). He said prior to 2015 assessment rates had not been increased since 2010. Historically, our assessment rates were increased annually. Based on the average Construction Cost Index (CCI) published by Engineering News- Record, from October 2020 to October 2021, overall, general construction costs for the Twin Cities on average have increased approximately 3.3%. Another way to understand how construction costs have increased over the past year, the 2020 Bob Ehlen Area SRP bid construction cost was compared to the 2021 Swede Town Area SRP average bid construction cost. Based on this, the construction cost has increased approximately 2.3% for Anoka compared to the Twin Cities average of 3.3%. He said Council should be aware the construction prices are from 2020 and 2021 during the pandemic and it is anticipated inflation in 2022 will significantly increase due to fuel prices, materials, labor, and the cost of construction. He said these increased costs provide the justification for any increase in special assessments. Mr. Nelson outlined the Council’s general goal to assess approximately 25% of the overall project cost and this goal is mostly being met. He said increased assessment rates help address increases in construction costs and will keep this program financially sustainable. He said special assessments also pay for a portion of the street bonding approved in 2020 and it is staff’s opinion that even with the proposed assessment increase the benefit to the November 22, 2021 (Worksession) Page 4 of 7 property owners will exceed the assessment. Mr. Nelson further outlined three options for the 2022 assessment rates based on a typical 80-foot residential lot and the 2021 construction cost for a residential water and sanitary sewer service was $1,710 and $1,420 respectively. He said staff recommends not raising these unit rates considerably higher than 2021 construction cost as this could result in the service assessments exceeding the actual construction cost but staff was recommending at least an 3.3% increase and is seeking direction from the Council regarding the proposed assessment rates for 2022 Swede Town SRP project. Councilmember Barnett asked about the 2021 construction cost for a residential water and sanitary sewer service of $1,710 and $1,420 and if staff was recommending a decrease. Mr. Nelson said the report included an error and confirmed staff was recommending an increase. Councilmember Barnett shared concerns about inflation of construction costs and that she did not believe this rate would cover the increase in costs due to the difficulties in obtaining materials from China. Mr. Nelson explained how the assessment hearing would be held and rates would be locked in a year prior to the construction project occurring. Finance Director Brenda Springer explained how special assessments are used to decrease debt limits and noted her recommendation was to increase the assessment rate. Councilmember Skogquist said while this was a large proposed increase he did not want to go back to when the City had to cover the difference and that 25% was acceptable as he understood assessment rates have to increase. Mr. Nelson noted Anoka’s rates would still be significantly less expensive than other cities such as Champlin. Mr. Lee said residents on a fixed budget had the benefit of the increase in Social Security allocations to assist then noted while higher street projects are heavily influenced by oil markets because of the bituminous and not under City control. Dr. Evans inquired about the costs for electrical as part of the project. Mr. Nelson said the City has never assessed for electrical costs but were just included as a project cost. Councilmember Skogquist asked about the process should a homeowner want to bury their electrical line as part of the project. Electric Utility Director Greg Geiger explained the costs that the resident would incur then spoke about the lack of supplies available and their work to keep costs down. November 22, 2021 (Worksession) Page 5 of 7 Mayor Rice asked if we could compromise at a 3.3% increase because that would reach the goal of 25% of the project cost and while higher than before it was not much higher. Councilmember Skogquist said he would prefer a 6% increase but would be open to discussion, adding a typical residential street is varied when included as part of a church or other similar property and he felt residents will understand the cost of inflation, especially this year. Mr. Lee said this topic is reviewed every year and that we need to standardize the process so the data does not get skewed downward and suggested instead doing a lineal foot that can be tracked by what percentage a project is truly at instead of based on the size of a project. Council consensus was to support an increase of 6% in the 2022 assessment rates for the City’s Street Renewal Program. 3.3 Discussion; City Events/Vendor/Special Event Policies. Public Services Administrator Lisa LaCasse shared a staff report with background information stating with growing popularity of events, the City receives a variety of request for non-profit and for-profit entities to sell concessions at events. Staff is proposing a fee to participate at the event as the City event is the attraction which is typically funded by the City. She said fees collected would go toward future event costs then reviewed proposed fees for different events and vendors based on size and other considerations. She said the item was discussed by the Park Board on November 6 who was not in favor of alcohol sales at City events such as concerts in the park, Rocking on the Rum, End of Summer Bash and others and did not support establishing this fee. She said in an effort to establish a more streamlined and efficient application process staff would like to revise the Special Events ordinance and implement a policy and if approved, once finalized the special event application would be restructured. Ms. LaCasse outlined the major changes in detail, which included eliminating the surety bond requirement with implementation of refundable event deposit for property and/or equipment damage and increased limits for liability insurance required. She said staff would like to receive direction regarding the event application fee to be charged and if area usage fees should be implemented to help cover the costs of City services or if there is a preference for individual fees by department for services to be included in master fee schedule. Communications Manager Pam Bowman noted this discussion began as an inquiry from 10K Brewing who was interested in serving as part of City events. Councilmember Wesp asked about reaction of vendors. Ms. LaCasse said the vendors were supportive of the change as they were making money from these events and wished to continue and understood the City’s need to cover costs. November 22, 2021 (Worksession) Page 6 of 7 Councilmember Barnett asked if fee collection would be burdensome. Ms. LaCasse said if signed up and planned for in advance fees would not be a concern to administer. Councilmember Barnett asked about pull tabs and the contribution amount as she liked that concept and suggested a similar option for vendors in the event sales were not as planned. Ms. LaCasse said that method could be utilized but cautioned against it as it would be difficult to gauge the amounts. Councilmember Barnett said she supported the proposal but asked staff to check with vendors to see how they did so we can continue to monitor and adjust if needed. Councilmember Skogquist suggested food trucks in George Green Park during the 4th of July events and others as an added element that would provide a nice amenity for residents. Mayor Rice said he supported the proposal for alcohol sales as well. Councilmember Barnett asked if serving alcohol in the parks would be new for the City. Ms. LaCasse said providing alcohol sales would be new but noted people currently can bring their own to a park. Police Captain Andy Youngquist said the department would have no concerns with the service of alcohol as most events are family-oriented then noted the server would have to require ID and provide an officer which would help alleviate concerns. Councilmember Skogquist asked more about the process for alcohol sales. Ms. LaCasse explained some events would include alcohol but others not and the process would be determined based on interest. She said they could possibly could work with a non-profit organization to provide beer and wine only and most likely only for the larger, longer events. Councilmember Wesp spoke about the need to provide liquor liability insurance for any offsite event. Councilmember Barnett suggested speaking with some of the bar owners to see if they are interested and then suggested starting in 2022 with the larger concerts first to gauge concerns before more events occur. Councilmember Wesp suggested no alcohol included as part of movies in the park. Council consensus was to support the City Events/Vendor/Special Event Policies as proposed. November 22, 2021 (Worksession) Page 7 of 7 Ms. Bowman outlined the proposed process for special events, including application, insurance, surety bond, and other items. She noted police fees are included but not fire service and trying to get to covering some of our costs. AUDIO STOPPED AT MINUTE 58:34 3.4 Discussion; West Rum River Trail Improvements. (this section of minutes is taken from the staff report) Ms. LaCasse shared a staff report with background information stating the West Rum River Corridor encompasses the west bank of the Rum River from Peninsula Point Park at the south end to Calhoun Street at the north end of Downtown Anoka. The area includes the Woodbury House, the Amphitheater, Giddings Gardens, Stone House and the west side of the Dam. She said much like the Rum River Trail on the east bank of the Rum River, the West Rum River Trail provides a unique opportunity to achieve many benefits, such as establishing a positive impression of Anoka with the enhanced gateway, a network of streets, trails, sidewalks and parks that are safe and vibrant, an extension of and connection to the downtown from the neighborhoods west of the Rum River, and provide people with ways to move between their neighborhoods and downtown that are safe and convenient. She spoke about the importance of preserving what Anoka already has such as the historic buildings, parks, and the Rum and Mississippi Rivers and the goal to increase the number of people in the public spaces, downtown, along the riverfront, and in our neighborhoods. She said Bolton-Menk Inc has been retained to refine the concept plans developed during the Riverwalk Task Force process and that engineering estimates will be developed for phased construction based on Council comments and recommendations. Ms. LaCasse said funding sources would be determined then shared a list of possible grant fund sources then asked the Council for input on the West Rum River Trail improvements. OTHER BUSINESS None. 4. ADJOURNMENT Motion by Councilmember Wesp, seconded by Councilmember Skogquist to adjourn the Worksession at 7:16 p.m. Motion carried. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk