Anoka City Council

December 20, 2021 (Regular) Page 1 of 19 EXECUTIVE SESSION OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL WORKSESSION ROOM AND REGULAR MEETING OF THE ANOKA CITY COUNCIL HELD IN THE CITY COUNCIL WORKESSION ROOM DECEMBER 20, 2021 1. CALL TO ORDER: Closed Executive Session 6:00 p.m. 2. ROLL CALL Present at roll call: Mayor Rice, Councilmembers Barnett, Skogquist, Weaver, and Wesp. Absent at roll call: None. Staff present: City Manager Greg Lee; Community Development Director Doug Borglund, City Planner Clark Palmer and City Attorney Scott Baumgartner. League of Minnesota Cities Jessica Schwie. Councilmember Wesp made a motion to convene into a Closed Executive Session pursuant to Minnesota Statutes § 13D.05, Subd 3, (b) to discuss Attorney-Client Privilege Matter Related to One-Love Housing LLC, Sober Housing Litigation. The motion was seconded by Councilmember Skogquist. Vote taken. All ayes. Mayor Rice called the Closed Executive Session to order at 6:00 p.m. Discussion was held. The Closed Executive Session adjourned at 7:00 p.m. 7:00 P.M. REGULAR MEETING Mayor Rice called the Regular Meeting to order at 7:00 p.m. 1. CALL TO ORDER Upon conclusion of a closed executive session pursuant to Minnesota Statute 13D.05, Subd 3(b) for attorney-client discussion, One-Love Housing, LLC, Sober Housing Litigation, Mayor Rice called the regular meeting of the City Council to order at 7:00 p.m., followed by the Pledge of Allegiance. December 20, 2021 (Regular) Page 2 of 19 ROLL CALL Present at roll call: Mayor Rice, Councilmembers Barnett, Skogquist, Weaver, and Wesp. Staff present: City Manager Greg Lee; Community Development Director Doug Borglund; Director of Public Services Mark Anderson; Finance Director Brenda Springer; Utility Director Greg Geiger; Engineering Technician Ben Nelson; City Planner Clark Palmer; Police Chief Eric Peterson; and City Attorney Scott Baumgartner. Absent at roll call: None. 3. COUNCIL MINUTES 3.1 October 25, 2021, Worksession. November 15, 2021, Regular Meeting. December 6, 2021, Executive Session and Regular Meeting. Councilmember Barnett said changes were needed on Page 5 of the October 25, 2021, worksession minutes that stated “...no real savings if other streets deteriorate…”, replace “resident” with “participant” throughout, and asked for clarification on Paragraph 7 of Item 3.3 on intent that the City does not want a project that was only for demonstration. She also asked for a correction on the November 15, 2021, regular meeting minutes in Paragraph 17, Item 9.7 that included “...added City staff and the public...” Motion by Councilmember Barnett, seconded by Councilmember Weaver, to approve the October 25, 2021, Worksession, November 15, 2021, Regular Meeting, and December 6, 2021, Executive Session and Regular Meeting minutes as corrected. Vote taken. All ayes. Motion carried. 4. OPEN FORUM 4.1 Receive Outstanding Conservationist Award from Anoka County Conservation District. Chris Lord, District Manager of Anoka Conservation District, presented Anoka with the 2021 Anoka County’s Outstanding Conservationist as recognized by the Anoka Conversation District. He said this acknowledgment was part of a larger program wherein Soil and Water Conservation Districts from throughout Minnesota submit their outstanding conservationists to the Minnesota Association of Soil and Water Conservation Districts in nomination for the State’s Outstanding Conservationist. He said in early December, at their annual convention, each outstanding conservationist was recognized during a large December 20, 2021 (Regular) Page 3 of 19 banquet where they also unveil the State winner. Mr. Lord shared about Anoka’s work towards conservation that involved education, designation of the Anoka Nature Preserve designation, habitat restoration, Mississippi Community Park partnership, rain gardens, river bank projects, and The Woodbury House and thanked staff and the Council for their work. Mary Jo Truchon, Chair of Board of Anoka Conservation District, thanked Anoka for all they do for natural resources of the community. Councilmember Weaver shared how the award event highlighted Waterfowl for Warrior events. Councilmember Skogquist appreciated the Conservation District and staff’s great work on grant writing for The Woodbury House and suggested goats be used in areas to help clear buckthorn. 4.2 Police Activity. Police Chief Eric Peterson shared an update on an incident on Maple Lane that involved a theft in progress of a catalytic converter and how they apprehended the suspect. He shared over 300 converters have been stolen in Anoka County, 27 in the City alone, and thanked the caller who alerted police to the theft that made it possible to apprehend the suspect and thanked the officers for their quick work. He shared the increase in traffic accidents partially due to weather conditions and black ice and cautioned the public not to drink and drive, especially during the upcoming holidays. He thanked Council and residents of Anoka and wished everyone a safe holiday season. OTHER INFORMATION UNDER OPEN FORUM None. 5. PUBLIC HEARING(S) 5.1 Issuance of an On-Sale Intoxicating Liquor and Sunday License; 23 & E, dba; Misfits Saloon, 821 East River Road. RES/Issuance of an On-Sale Intoxicating Liquor and Sunday License; 23 & E; dba Misfits Saloon, 821 East River Road. City Manager Greg Lee shared a background report stating an application for an On-Sale Intoxicating & Sunday Liquor License has been submitted by 23 & E, dba; Misfits Saloon, 821 E River Road. The previous owner, David Voss, is selling the business to his son and since ownership is changing, they are required by law to obtain a new license. Staff has conducted the necessary background investigations and inspections and no concerns or objections have been expressed. He said the licensed premises will include the outdoor patio area and that staff recommended approval. December 20, 2021 (Regular) Page 4 of 19 Mayor Rice opened the public hearing at 7:18 p.m. Councilmember Skogquist asked if applicant has been involved in operation of the restaurant previously. David Voss Jr, Misfits Saloon, said he has been involved in the restaurant since last year and has been more active the last three months and continues to learn the operations. He shared his plans to make positive additions through staffing and lean initiatives and his goal of a family- operated restaurant with a limited menu that is good and well received by the public. Being no comments Mayor Rice closed the public hearing at 7:21 p.m. NOTE: By motion from Councilmember Barnett, which was seconded by Councilmember Skogquist, 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 Wesp seconded by Councilmember Weaver to Approve Issuance of an On-Sale Intoxicating Liquor and Sunday Liquor License to 23 & E, dba; Misfits Saloon, 821 E River Road, Anoka, Minnesota. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist, Weaver and Wesp voted in favor. Motion carried. 6. CONSENT AGENDA Motion by Councilmember Skogquist seconded by Councilmember Barnett, to approve Consent Agenda 6.1 through 6.3 as presented. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. 6.3 U.S. Highway 10/169 Improvement Project; Approve Change Orders Number 1 and Number 2. Councilmember Barnett confirmed the change order amount was included in the contingency funds as part of MnDOT funding and would not cost Anoka anything additional. Vote taken. All ayes. Motion carried. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS None. December 20, 2021 (Regular) Page 5 of 19 8. PETITIONS, REQUESTS AND COMMUNICATION None. 9. ORDINANCES AND RESOLUTIONS 9.1 RES/Issuance of an On-Sale Intoxicating Liquor and Sunday License; 23 and E, dba; Misfits Saloon, 821 East River Road. ACTED UPON AFTER PUBLIC HEARING 9.2 RES/Adopting the Budget for the Year 2022. RES/Adopting a Levy for the Year 2021, Collectible in 2022. RESOLUTION Finance Director Brenda Springer shared a background report stating the 2022 budget process began in June and is based on Council directives and the 2021 goal session. The Council has reviewed the 2022 budget, as proposed by the City Manager, at several meetings in August. The City Council held a public hearing on December 6, 2021 to hear from the public regarding the proposed 2022 budget and levy. The total budget for all funds excluding the HRA component unit is $73,461,187, which is a 10.8% increase from 2021. The increase is attributed to an increase in capital project spending. The 2021 levy is to be set at $7,736,653 this is a 3.9% increase as compared to 2021. She said the average taxpayer will see a small increase in City property taxes as a result of the increased levy and changes in the fiscal disparity distribution. The General Fund budget is $13,972,489 which is a $1,127,809 increase from the 2021 budget. Councilmember Barnett outlined the City’s top goals was to be fiscally responsible, minimize the levy, and be wise stewards of funding and said the increase in continency will give us more leeway to fund items such as was used for the additional riot gear for the Police Department. She asked Council to consider increasing the levy either a half or full percentage to adjust reserves to avoid a precarious position and have enough reserves in place. She outlined reasons for the proposed 4.91% levy which was still under 5% and how the increase would be used to assist funding in the event it was needed. Councilmember Wesp asked if the $50,000 budget amount is part of the proposed current levy. Ms. Smith explained if the increase occurred, we could lower use of fund balance reserves instead and leave the contingency in place. Councilmember Weaver noted the budget was already 12% over City reserves. Councilmember Skogquist said we need to cover expenses and have budgeted for drawing down the reserves and that he was not comfortable not covering December 20, 2021 (Regular) Page 6 of 19 expenses. He said the budget would result in spending $226,000 more than what would be taken in and that 1% would be reasonable. He shared concerns about zeroing out community education and the possibility of school district funding not being received as a result and that since he was not comfortable drawing down until there was nothing left he was supportive of the proposed 1% increase. He spoke about the proposed grain bin restoration project and how it may be a want instead of a need and suggested approving the $50,000 expenditure and moving it from Park Capital to Park Dedication and not spend the funds until we receive money from other developments and have a definite plan. Councilmember Wesp asked further about the reserves and the goal to have a zero increase but with inflation and possible additional costs for Highway 10 construction that may not be possible. Ms. Springer said we may want to add an additional $75,000 to the contingency fund but could instead dedicate those expenses. Motion by Councilmember Wesp seconded by Mayor Rice, to adopt a resolution adopting the budget for the year 2022 and a resolution adopting a levy for the Year 2021, collectible in 2022, and to reduce the fund balance to $151,000 and amend the reserve balance from 3.9% to 4.9%. Mayor Rice commented on inflation and how it may be wise to increase reserves then asked for a history of fund balance reserve. He spoke about the goal to balance between a level that was not too high but sufficient and how it is wise to not spend down reserves too much. Ms. Springer shared a chart that outlined fund balance history over the past 10 years with 2012 at the highest level and projected 2021 would be under budget which would add to the fund balance. Councilmember Weaver said Charter requires 30% fund balance but that the Legislature has concerns about too high of a balance and what amount that would be that could potentially affect local government aid or fiscal disparities funding. Ms. Springer said that is a complicated calculation but noted local government aid and fiscal disparities usually is a result of the ratio between commercial and residential development instead. Councilmember Skogquist shared about park dedication and capital funding that was outside the general fund and if we have projects and no money in that particular fund where does funding come from. Ms. Springer explained how the City could always use fund balances for capital projects going forward. Motion by Councilmember Skogquist seconded by Mayor Rice, to amend the motion to move the grain bin rehabilitation project funds to park dedication and ensure plans and sufficient funding was in place prior to any project moving forward. December 20, 2021 (Regular) Page 7 of 19 Ms. Springer cautioned that there could be restrictions surrounding park dedication funding. Councilmember Weaver said he has advocated for the grain bin rehabilitation project because it is a good project and suggested work occur in complement with the event center to create a destination place. He said he understands Councilmember Skogquist was against the project but said if not addressed the bins would rot, similar to the amphitheater, and suggested leaving the funding in the budget as a placeholder. Councilmember Skogquist said he was not against the project but said it was important to include the surrounding neighborhood to ensure they have buy-in as the amount will be more than $50,000 and could result in private investment as an option. Councilmember Weaver spoke about how the City charged Mad Hatter to park on City property and suggested the same be done for the owners of the event center to be equitable then referred to a meeting that was held on the project that he was not notified of. Darrin and Emily Larsen, 111 Harrison Street/The Mill Site – Events on the River, shared comments regarding the grain bin renovation and said because their business was so close to the bins their property was landlocked and could only be used for an entrance/exit to the corner. They said they did not have information as of yet on size, scope, use or vision and how any project would impact the corner and how their event center brings hundreds of guests to the area every weekend which requires parking coordination. They spoke about how the lot was unpaved and unmarked which requires personnel at every event for traffic management and that plans will affect both businesses and requested input on preserving and rehabbing grain bins as private investment could be a possibility and that they wanted to be part of a cohesive plan. Mr. Lee recommended keeping the bin rehab project in the budget as proposed and hold further discussion on the scope during the February 28 worksession. Councilmember Skogquist withdrew his amended motion as he was assured further options would be explored with input from the neighborhood. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist, Weaver and Wesp voted in favor. Motion carried. 9.3 ORD/Amending Chapter 14, Animals; Relating to the Licensing and Inoculation of Dogs. (2nd Reading) ORDINANCE December 20, 2021 (Regular) Page 8 of 19 Chief Peterson shared a background report stating the Council, at its regular work session meeting on June 28, 2021, directed staff to bring forward an amendment to Chapter 14 of the City Code regarding the license requirements for dogs and cats. The first reading was held at a regular City Council meeting on December 6, 2021, and no suggested changes were made to the proposed amendments. If the proposed amendment is approved the amendment would remove all requirements to have a dog or cat licensed by the City. The proposed amendment would also remove all requirements to have a dog or cat inoculated against rabies and would require all dogs and cats in public spaces to have an identification tag with the owner or veterinarian contact information affixed to the collar. The current City Code requires that all dogs and cats be licensed and registered with the City of Anoka as well as being inoculated against rabies and the average annual revenue from licenses is $1,600.00. Motion by Councilmember Barnett seconded by Councilmember Weaver, to hold second reading and adopt an ordinance amending Chapter 14, Article I, Division 1, Section 14-6; Article II, Section 14-31(A) and (B); Section 14-32; Division 2, Section 14-53; Section 14-54; Section 14-55; Section 14-56; Section 14-57; Section 14-58; Section 14-59; Section 14-60; Section 14-61; Section 14-62 to 14- 80; and Division 3, Section 14-83(J) of the Code of the City of Anoka Minnesota. Councilmember Barnett thanked staff for reviewing the ordinance for improvements and giving taxpayers their funds back while still ensuring pet owners remain responsible. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist, Weaver and Wesp voted in favor. Motion carried. 9.4 ORD/Amending City Charter, Section 2.07, Salaries. (2nd Reading) Mr. Lee shared a background report stating at the December 6 meet the City Council held the first reading of an ordinance amending the City Charter; Section 2.07 Salaries. Section 2.07 Salaries to state that the Mayor and members of the Council shall receive such compensation for their services as may be prescribed by ordinance adopted by the vote of four-fifths of all members of the Council. Other officers and employees of the City shall receive such compensation as may be fixed by the Council. A review of the Mayor and Councilmember salaries shall be conducted by the City Council in June of every odd numbered year. He said if the Council approves the changes, they will become effective 90 days after publication and will requires unanimous vote of the full City Council to approve the changes. If a unanimous vote is not reached, the Charter will not be changed. He said there were no changes to first reading of this ordinance. December 20, 2021 (Regular) Page 9 of 19 Motion by Councilmember Skogquist seconded by Councilmember Barnett, to hold second reading and adopt an ordinance amending City Charter, Section 2.07, Salaries. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist, Weaver and Wesp voted in favor. Motion carried. 9.5 ORD/Adopting 2022 Master Fee Schedule. (2nd Reading) ORDINANCE Mr. Lee shared a background report stating annually staff reviews the fee schedule and determines whether or not a recommendation should be made to the Council to adjust the fees that the City charges for services and licenses. Fees are to be based on the actual costs to provide the service, issuance/enforcement of a license or code regulation, background checks, materials, time, etc. There were no changes to the fee schedule from first reading. He noted increased fees would not apply to all special events as some would be grandfathered in such as the car show, Anoka Halloween, and others and that staff is suggesting eliminating the surety bond requirement and instead require a deposit which is less expensive. He said staff surveyed with these proposed cost increases with some of the larger special event coordinators who shared they had no concerns with the increased fee proposal and would continue to host their events in Anoka. Councilmember Weaver shared concerns with the increased special event fees as they can get expensive such as fire department support costs in addition to the 80% charitable organization donation and said he did not want to risk losing some of these large events to increased fees. Mr. Lee said further discussions could occur at a worksession on special event fees, including clarifying the donation amounts as staff currently did not audit those amounts. Mayor Rice said the City has covered costs in the past and suggested leaving the fee schedule as presented and bring back for amendments after the worksession if needed. Councilmember Skogquist agreed but said the City incurs costs no matter what and that it makes sense to cover our expenses with the excess amounts being donated and supported the fees as proposed. Motion by Councilmember Skogquist seconded by Councilmember Barnett, to hold second reading and adopt an ordinance establishing a fee schedule for the City of Anoka effective January 1, 2022, but direct staff to include review of charitable donations at a future worksession. December 20, 2021 (Regular) Page 10 of 19 Councilmember Barnett asked if the 80% donation requirement was included in the fee schedule. Mr. Lee confirmed the requirement was not included in the schedule but in City policy. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist, Weaver and Wesp voted in favor. Motion carried. 9.6 ORD/Amending Chapter 78, Article IX, Division 1, Section 78-562, Walls, Fences and Hedges. (1st Reading) Motion by Councilmember Skogquist, seconded by Councilmember Barnett, to remove Item 9.6, an ordinance amending Chapter 78, Article IX, Division 1, Section 78-562, Walls, Fences and Hedges, from the table. Vote taken. All ayes. Motion carried. City Planner Clark Palmer shared a background report stating staff is proposing a text amendment to City Code Section 78-562 (e). This section of the Zoning Code regulates fence heights in residential zoning districts. Staff is proposing to amend the language because the current language uses undefined terms such as “line,” “lines” and “along.” Although the Zoning Code defines “lot line” and “building line,” the existing language is not clear. Therefore, the existing language may not be easily understood by the general public or staff, causing challenges and possible inconsistencies with the administration of regulations. Staff seeks to amend the code using clear language and clearly defined terms. Staff recommends regulating fence height based on a fence’s location relative to its placement in the respective yards. “Yard” and the types of yards (i.e., front, side, and rear) are clearly defined and easily understood within the existing Zoning Code. Mr. Palmer outlined the proposed amendments in detail that included no fence may exceed four feet in height above the ground level, in front of the front line of the residential structure, along any street or highway right-of-way, or in the front yard as defined by this chapter. In these two districts, fences along the side lines to the rear line, including rear lines abutting street or highway right-of-way, may not exceed six feet in height above the ground level. Councilmember Skogquist asked for front yard definition clarification and noted it was difficult to determine front yards in an older city with differing lot shapes throughout. He said the proposed amendment clarified a lot but shared concerns about leaving interpretation to the zoning administrator as he did not want to make assumptions. Mr. Palmer explained the definition in the case of a riparian lot then shared the difficulty of writing one simple rule was because staff had to consider a number of factors in each instance such as direction of front door facing, on a case by case basis. He said the zoning administrator understands City Code fully and was most able to make a determination based on professional education and history in the City. December 20, 2021 (Regular) Page 11 of 19 Community Development Director Doug Borglund spoke about how staff assists residents when they propose a project such as a new fence and how staff works to avoid a variance process because of the added time and cost, adding the goal is to be logical and that rules are used to address a minority of the population. Mayor Rice suggested height should be considered based on the neighboring properties’ height. Councilmember Barnett suggested documenting staff reasoning and criteria to ensure direction is equally applied and demonstrates equitability then asked how we treat fences that need to be corrected or adjusted or if they would be grandfathered in. Mr. Palmer said the amendment would not change the spirit and intent of the former City Code but just clarify intent and no longer be ambiguous. Mr. Borglund said staff will continue to review the Code based on input and that it could be amended in the future as needed. Motion by Councilmember Barnett seconded by Mayor Rice, to hold first reading of an ordinance amending Chapter 78, Article IX, Division 1, Section 78-562 (e) of the Code of the City of Anoka Minnesota. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist, and Wesp voted in favor. Councilmember Weaver abstained. Motion carried. 9.7 ORD/Zoning Text Amendment; Chapter 78, Article V, Division 3, Section 78- 265(c), B-1 Highway Business Conditional Uses and Chapter 78, Article V, Division 3, Section 78-265(i) Specific Conditional Use Permit Standards. (1st Reading) Mr. Borglund shared a background report stating Star Auto Sales Inc. is seeking a zoning text amendment to allow the establishment of a used auto sales business at 901 Highway 10. The applicant describes the proposed use as a small specialized online auto sales dealer with showroom by appointment only. The proposed use would include no outdoor storage or display of vehicles. The property is located within the B-1 Highway Business District and current zoning would allow an auto-oriented sales use with a Conditional Use Permit (CUP) if the subject property included a minimum 1.5-acre sales lot. He said since the location of 901 Highway 10 does not include a minimum 1.5-acre sales lot, the use is not permitted at the location. The applicant is therefore seeking a zoning text amendment to the B-1 Highway Business District to allow the proposed use without a 1.5-acre sales lot because the proposed use differs from a traditional auto sales use in that no vehicles are displayed for sale outside (they are only displayed inside the showroom and advertised for sale online) and showings are by appointment only. If the City Council considers recommending approval of the proposed text amendment, staff further recommends amending the code to include December 20, 2021 (Regular) Page 12 of 19 some specific conditional use permit standards that include no outdoor storage or display of vehicles, limiting the number of vehicles within the showroom to no more than six, no auto repair, body work, detailing, etc., showings by appointment only and conducted within the showroom, and adequate parking be provided. Eugene DuBois, applicant, shared he started his business in Anoka in 1988 and that his business model was highly specialized and included only sell a certain number of vehicles. He said showings were done by request and would only occur indoors by appointment and that he would not have a large inventory or need for Main Street visibility. City Attorney Scott Baumgartner suggested adding conditions that require obtaining a used motor vehicle dealers license issued by State of Minnesota and no mechanical or dismantling of parts be permitted pursuant to the conditional use permit. He also referred to an error in (c) that should state including a minimum of four parking stalls. Mr. Palmer said those changes could be incorporated into second reading then noted that only five vehicles could be sold without a license and that the use would be for a professional salesperson only, which should help address concerns of too many vehicles onsite. Motion by Councilmember Weaver seconded by Councilmember Skogquist, to hold first reading of an ordinance Amending Chapter 78, Article V, Division 3, Section 78- 265(c) B-1 Highway Business Conditional Uses and Chapter 78, Article V, Division 3, Section 78-265(i) Specific Conditional Use Permit Standards of the Code of the City of Anoka Minnesota as Amended. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist, Weaver and Wesp voted in favor. Motion carried. 9.8 RES/2022 Street Renewal Project – Swede Town Phase II; Approve Feasibility Report and Set Public Hearing. RESOLUTION City Manager Greg Lee shared a background report stating A resolution was adopted by City Council on August 16, 2021, authorizing the preparation of a feasibility report for the 2022 Swede Town Phase II Street Renewal Project (SRP). The City’s engineering consultant and staff have completed the feasibility report for the project. The next step in the Chapter 429 process is to have Council accept the report and set the hearing dates. A neighborhood meeting was held at Green Haven Golf Course and Event Center on December 7, 2021 for the project and provided information on the Street Renewal Program and received feedback from the benefiting property owners. Approximately 13 people attended the meeting and overall the residents were in favor of the project. He said concerns were raised about the parking from the apartment building along Gray Street and December 20, 2021 (Regular) Page 13 of 19 no parking signage. He said the proposed infrastructure change increasing of width for Gray Street from 24 feet to 28 feet was presented and the residents were glad to have “legal” on-street parking as well as the infrastructure change for the cul-de-sac at the east end of Gray Street. He said no comments were received about the relocation of the sidewalk from the cul-de-sac to Ferry Street (TH-169). Mr. Nelson outlined the project and changes in further detail then spoke about the proposed sidewalk extension along the west side of 5th Avenue between Van Buren Street and Harrison Street. He said the impacted residents with the new sidewalk in their boulevard had concerns about the removal of the boulevard trees to install the sidewalk and the loss of value to their property. Since this meeting, staff has received comments from three of the four impacted property owners and noted staff is not recommending this proposed new sidewalk extension as part of this project. He said a draft assessment roll has been developed and the residential assessment is based on front footage ($22 per foot), a street unit assessment ($4,030), and a water unit ($1,460), and a sanitary sewer unit ($1,340) assessments and that in general, for a standard residential lot in this neighborhood the assessment will be around $8,590. Councilmember Skogquist shared reasoning for the sidewalk extension that would address gaps for walkability whenever possible then shared the neighborhood’s concerns regarding tree removal and suggested if the sidewalk extension could be moved closer to 5th Avenue to retain more trees. Mayor Rice noted some of those trees were Ash trees which would affect the decision. Gary Wobbe, 2125 5th Avenue, commented about the Ash tree and the silver maples that provided shade and how the proposed sidewalk would go through his front yard, resulting in loss of trees and property value. Councilmember Weaver noted the setbacks were not appropriate for sidewalks in this area and would not support them if the neighborhood did not want them. Laura Organ, 2207 5th Avenue, spoke about minimum requirements from the front line of the house to the right-of-way and in order to meet the minimum requirements and not be in front of their windows the sidewalk would have to be placed right on the curb. She expressed concerns with the amount of foot traffic that occurs, especially with special events, and noted church attendees crossed the street and would not need the sidewalk on their side. Colleen Hansen, 432 Van Buren Street, noted these are typical properties with setbacks already closer to the street and how the sidewalk would be much closer to their homes. She referred to the Conservation District’s award earlier and encouraged the City to generate more greenspace and less concrete then noted eliminating the sidewalk would result in cost savings as well. December 20, 2021 (Regular) Page 14 of 19 Motion by Councilmember Wesp seconded by Councilmember Weaver, to adopt a resolution approving the 2022 Swede Town Phase II Street Renewal Project; Approve Feasibility Report and Set Public Improvement Hearing without inclusion of the proposed sidewalks. Councilmember Skogquist said he supported retaining the mature trees then referred to the future parking ramp nearby that will result in more people and how these issues should be addressed when we can and for that reason would not support the motion as while the neighborhood’s concerns should be addressed if we are inviting the community to greenspace then sidewalk connections should be created. Andy Stockholm, Stillwater, noted no sidewalks were included in the feasibility plan last year and asked why it was important now, especially since sidewalks already exist on the east side that are well used. Mayor Rice commented about the importance of walkability and bikability and adding sidewalks where possible but how the Council wanted to listen to the neighborhood input. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Weaver and Wesp voted in favor. Councilmember Skogquist voted nay. Motion carried. 9.9 RES/2022 Street Renewal Project – Swede Town Phase II; Set Assessment Hearing. RESOLUTION Motion by Councilmember Wesp seconded by Councilmember Weaver, to adopt a resolution for the 2022 Swede Town Phase II Street Renewal Project; set assessment hearing. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Weaver and Wesp voted in favor. Councilmember Skogquist voted nay. Motion carried. 9.10 RES/2022 Street Surface Improvement Project; Approve Feasibility Report and Waive Public Improvement Hearing. RESOLUTION Mr. Nelson shared a background report stating a resolution was adopted by City Council on August 16, 2021, authorizing the preparation of a feasibility report for the 2022 Street Surface Improvement Project. The City’s engineering consultant and City staff have completed the feasibility report for the project. The next step in the Chapter 429 process is to have Council accept the feasibility report and waive the public improvement hearing. A neighborhood meeting was held at December 20, 2021 (Regular) Page 15 of 19 Green Haven Golf Course and Event Center on December 7, 2021 for the project, to further educate the neighborhood on the Street Surface Improvement Program and receive feedback from the benefiting property owners. He said approximately 15 people attended the meeting and while overall the residents were in favor of the project some concerns were raised at the meeting which he outlined in detail. He shared the feasibility report outlined the proposed improvements and costs and that streets proposed to be included were in the neighborhood of the Brom and Dunham Oaks Addition and Slab Town and consisted of approximately 2.3 miles of resurfacing. He said the study also includes a portion of the 2022 park improvements at George Enloe Park and Rudy Johnson Park of resurfacing and construction of a new parking lot. Mayor Rice noted there was a fair amount of sidewalk in poor condition in some areas and that repair would be included as part of the project. Motion by Councilmember Skogquist seconded by Councilmember Barnett, to adopt a resolution approving the 2022 Street Surface Improvement Project; Approve Feasibility Report and Waive Public Improvement Hearing. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist, Weaver and Wesp voted in favor. Motion carried. 9.11 RES/Amending Joint Powers Agreement with Anoka-Champlin Fire Board. RESOLUTION Mr. Lee shared a background report stating at a previous joint meeting with the Cities of Anoka and Champlin, discussions were started on amending the Joint Powers Agreement (JPA) regarding the makeup of the Fire Board. He said at the time it was decided to wait until a new Fire Chief was selected and once Chief Massicotte was hired he attended a work session with both City Councils to understand what they were looking for. Both councils agreed to making changes to the JPA regarding the makeup and appointment of members to the Fire Board and also address the formula used to calculate each city’s share of the fire department operating budget. The Operations Committee then reviewed the JPA and made the proposal to the Fire Board to amend the JPA with the proposed language for Articles II and III. These changes were approved at the December Fire Board meeting as recommendations for amendments are being brought forward to each council for ratification in accordance with Article XII – Provision for Amendments to Joint Powers Agreement. Councilmember Weaver spoke about special events and how hours tracked go towards to this agreement and help drive the new figures and increased costs. Mr. Lee explained the structure will provide more accountability in the JPA for each city based on market valuation, calls, and actual hours in each city but does not include training since that is across the board. He said special event hours would December 20, 2021 (Regular) Page 16 of 19 be tracked and counted towards each city and if the vendor is paying the fees it would not affect the amounts then noted Chief reviewed costs for 2019 and 2020 and felt cost impacts would not change much based on the new formula. Councilmember Wesp commented about representation on the Fire Board which shows more accountability to the public and how the JPA has been in place since 1985 and worked well. He referred to the disproportionate methodology in the past and Champlin’s concerns about use of the Fire Department within Anoka as we use the department much like the Police Department in a community-oriented fashion and that further discussion should be held at a future worksession on how to change the JPA in the future. He said he understood the functional items such as large special events and how we pay for that as a City which can be determined while not affecting the events and that the structure will be made up of two elected officials with the manager/administrator on the Operating Committee. Motion by Councilmember Wesp seconded by Councilmember Weaver, to adopt a resolution to ratify the recommended changes to the Anoka-Champlin Fire Department Joint Powers Agreement. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist, Weaver and Wesp voted in favor. Motion carried. 9.12 RES/Approving LELS #255 Sergeant Unit Labor Contract for 2022, 2023, and 2024. RESOLUTION Mr. Lee shared a background report stating Council was provided under separate cover the LELS #255 Sergeants Unit Labor Contract for 2022, 2023, and 2024. The contract is classified as private/confidential data until approved by the Council and the contract has been accepted by the Union and that due to a new law, labor contracts must be adopted by resolution. Councilmember Wesp asked if Chief Peterson felt the settlement was equitable for sergeants. Chief Peterson said he reviews the proposed changes as part of the process and felt they were fair to both unions and acceptable by the group. Motion by Councilmember Barnett seconded by Councilmember Wesp, to adopt a resolution approving a Collective Bargaining Agreement With LELS, Sergeants Unit, for the City of Anoka. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist, Weaver and Wesp voted in favor. Motion carried. 10. UNFINISHED BUSINESS None. December 20, 2021 (Regular) Page 17 of 19 11. NEW BUSINESS 11.1 Distribution of Second Half of Round-Up Funds. Ms. Springer shared a background report on the status of Round Up for Change program regarding collections and disbursement of revenues. The program was adopted in 2011 and funds are collected are for donations that improve the lives of families, children and seniors in our community. Each new customer is introduced to the program when they sign up for service and make the decision to enroll or not at that time. The new customer booklet also gives more information, as well as the AMU website and social media. There is another slight increase in participants when compared to December 2020, 32 more or 3% increase, due to diligent introduction from staff and that donations through December 15 are $28,076. She said there is a balance of $12,500 available for disbursement that includes Alexandra House $2,400, ACBC Food Shelf $2,400, Youth First Community of Promise $2,400, and Anoka Community Mission $2,400. Councilmember Weaver spoke about the increased participation and working with new customers to share about the program. Ms. Springer said staff has been doing a good job promoting the program, adding there appears to be more support coming out of the pandemic as the program had been trending down. Councilmember Barnett said she is pleased with marketing of the program and staff’s education to residents then thanked staff member Pam Bowman for working with QCTV and the local newspaper to promote where the funds go. 11.2 Ambi Wine Bar License Renewal. Mr. Lee shared a background report stating Ambi Wine Bar submitted their application to renew their On-Sale Wine & 3.2 Malt Liquor License for 2022. City requirements are Wine Licenses and On-Sale Intoxicating Liquor Licenses must have gross food sales of at least 35% and that Ambi Wine Bar has not met that threshold and are at 29%. He said the principal part of the business for a license year must be the serving of food, which means that not less than 35% of the total gross sales in a consecutive 12-month period prior to submittal of the license is attributed to the sale of food. He explained a six-month extension could be given to allow Ambi time to address the food/alcohol ratio and that staff would like direction from the Council if this is how you would like us to proceed. He noted all other establishments have applied for their license renewal and have met the 35% food requirement, with the exception of one outstanding renewal from Cork. Councilmember Weaver said since the City sets the percentages, he suggested creating a different category for the wine bar because it was important that Ambi December 20, 2021 (Regular) Page 18 of 19 was successful and appreciated staff’s creativity to assist them in meeting the requirements. Mr. Baumgartner said staff may need to work on definitions of a restaurant to help address and possibly create a different level of restaurant to meet Statute requirements. Councilmember Barnett asked how quickly a response was needed based on the six-month extension and suggested approving the license renewal with direction to work with staff on ways to reach the 35% requirement. Motion by Councilmember Barnett, seconded by Councilmember Weaver, to renew the on-sale wine and 3.2 malt liquor license for 2022 for Ambi Wine Bar for six months and work with staff on redefining definitions for restaurant categories to address the food/alcohol ratio. Vote taken. All ayes. Motion carried. 12. UPDATES AND REPORTS 12.1 Third Quarter Financial Report. Ms. Springer shared a background report stating financial reports for the period ending September 30, 2021, along with some comparative information. She shared general fund revenues are about the same as last year and the largest decreases are in property taxes as a result of the reduced levy and intergovernmental revenue, which is attributed to receiving the CARES act grant in 2020. She said the largest increases in revenues are charges for services, which is primarily from the pool and transfers in increased in 2021, and that general fund expenditures are down about 1% or $100,000 over last year. Ms. Springer said all departments are at or under budget at this time and salary expenditures are up 6.6% due to a new officer and increased salary and benefits. She said transfers out are down 100% with no budgeted transfers in 2021 and that professional and contractual services are down about 6%. Ms. Springer said some of this is a timing issue for normal payments and that over the last four years the City has added to the general fund reserves approximately $933,000. The current projected ending fund balance is $5.8 million or 47% of annual operating expenditures. The City is currently using reserves in all governmental funds except General, Urban Redevelopment and Park Capital and enterprise funds reflect operating incomes in all funds except liquor and recycling. Electric power costs are up about 11.4% this year with slightly higher power usage and higher purchase costs through September and electric operating revenues are up about 5.2% as a result of increased power usage. Water revenues are up 7.5% as a result of higher usage in 2021 and sewer revenues remain about the same as last year. Liquor revenues are down $150,000 compared to last year at this time and golf revenues are up $100,000 from last year and operating expenditures are up $100,000 over last December 20, 2021 (Regular) Page 19 of 19 year. Ms. Springer said total cash and investments are down $2.3 million compared to September 30, 2020 and that returns on investments continue to diminish. 12.2 Tentative Agenda(s). The Council reviewed the tentative agendas of the upcoming Council meetings. 12.3 Staff and Council Input. Mr. Lee suggested staff schedule the topic of the Anoka County facilities expansion project for a future worksession agenda. Councilmember Weaver referred to the recent Lower Rum River Water Management Organization’s meeting and their goals to remove obstructions that prohibit fish movement which could include dam removal. He said it was important that this not be included in any plan going forward as the recreational pool is a valuable asset to Anoka. Mr. Lee suggested both a letter and formal resolution be drafted opposing this action that would memorialize Anoka’s position on retaining the dam. ADJOURNMENT Councilmember Wesp made a motion to adjourn the Regular Council meeting and move into closed executive session pursuant to: • Minnesota Statute 13D.05, Subd 3(c) for the purpose of discussing potential real estate transaction related to PID# 06-31-24-23-0010, PID# 06-31-24-24-0069, PID# 06-31-24-13-0112 and PID# 06-31-24-31-0111. • Minnesota Statute 13D.05, Subd 3, for the purpose of conducting the annual performance evaluation of the City Manager. Councilmember Skogquist seconded the motion. Vote taken. All ayes. 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