Anoka City Council

November 28, 2022 (Worksession) Page 1 of 7 WORKSESSION OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL WORKSESSION ROOM NOVEMBER 28, 2022 1. CALL TO ORDER Mayor Pro Tem Wesp called the worksession meeting to order at 5:00 p.m. 2. ROLL CALL Present at roll call: Mayor Pro Tem Wesp, Councilmembers Barnett, Skogquist, and Weaver. Staff present: City Manager Greg Lee; Police Chief Eric Peterson; Police Captain Andy Youngquist; Assistant City Engineer Ben Nelson; Public Services Director Mark Anderson. Absent: Mayor Rice. 3. COUNCIL BUSINESS and/or DISCUSSION ITEMS 3.1 Discussion; Stepping Stone Emergency Housing. Police Captain Andy Youngquist shared a staff report with background information stating members of the Stepping Stone Emergency Housing (SSEH) Board of Directors had been invited to appear and provide Council with an update of their operations and procedures. He said SSEH currently leases their building at 3300 4th Avenue from Anoka County and that he has served on the SSEH Board of Directors for over two years for the purpose of aiding in their success and to provide input to the Board related to the public safety. He said he was currently working with the Board to resolve a public safety issue then shared background on how SSEH was established with a 16-bed facility was established on Ferry Street, creating the only licensed homeless shelter in Anoka County serving single adults. SSEH operations are currently split in the City of Anoka between the Cronin Building, 3300 4th Avenue, and the Regency Inn, 1129 Highway 10. Their program has been split since shortly after the pandemic began in effort so allow better separation of residents. SSEH has recently received a grant and monies and signed a lease with Anoka County (owner of the Cronin building), to make improvements to the second floor to allow for occupancy. Their goal is to bring residents housed at Regency Inn back to the Cronin building to occupy the second floor, better dispersing residents and allow for less individuals being housed in the same room. SSEH Executive Director Steve Griffiths shared their goal to get people to move on and be successful then spoke about the $1.9 million grant that would not November 28, 2022 (Worksession) Page 2 of 7 increase the number of people but spread them out and allow them to house women on one floor and men on another. He said more seniors were finding themselves homeless which will likely continue then shared his hope to open the Cronin building to help house more people and their work to encourage a relationship with Anoka Police Department and create even more collaboration. Councilmember Barnett asked more about the number of people allowed and the intent to not go over the current number without finding other space. Mr. Griffiths said the plan worked to an extent but was not ideal and said they currently had a limit of 66 beds based on the State’s licensing and were not planning on increasing to anything beyond that. He said instead they would explore other areas similar to housing at a hotel in Coon Rapids. Councilmember Weaver thanked Commissioner Gamache for looking at other communities within Anoka County as it was not fair to Anoka or staff to have the only location. He said there has been good communication with police regarding possible warrants and other issues then referred to the City’s rental licensing ordinance that requires landlords to provide a list of tenants. Mr. Griffiths said they conduct background checks on anyone on a waiting list and while they might not be as thorough there was the need to monitor balanced with protecting privacy. Councilmember Skogquist said the City had no desire to publicize private information but that we need to monitor for concerns and suggested a roster for backgrounds so we can be informed and ready to address or dispel issues. Councilmember Weaver said the biggest concern was communication with the police department and being a good partner. Mr. Griffiths noted the hiring program manager will help with being more collaborative with the police department. Councilmember Barnett referred to the rosters and documentation of backgrounds required for rental property owners and how it would be a concern if this was conducted differently. She requested if SSEH wanted to expand the number of beds from 66 to have a discussion with the City first. 3.2 Discussion; Restaurant Pad North of City Hall. City Manager Greg Lee shared a staff report with background information stating the City Council last discussed the restaurant pad on October 17, 2022. The Council directed staff to bring this item back at a future meeting for discussion and direction as to the future of this City owned property and next steps, including marketing the site, ways to include input with the public, commissions, design charettes to help decide the vision, Council’s expectations of properties surrounding the site, interactions with trails from the site and snowmobile trail November 28, 2022 (Worksession) Page 3 of 7 and corral, then asked about vision of receiving proposals including timing and any TIF or other issues to discuss. Councilmember Weaver shared comments regarding the need to stay public and that any dollars received will never go into the general fund until the parking ramp is paid off. He commented on how the process before was not handled correctly and that we should require anyone interested to know there is a public process. Councilmember Barnett said that action could limit our options and result in a lower price as we should be able to negotiate for a price. She said that process could negatively impact the taxpayers and while there should be a public period of applications a reasonable offer for this parcel could be made but the developer’s financials etc. would be non-public. Councilmember Skogquist agreed that many have an interest in the site and shared a suggestion about outlining what would be requested for a successful offer which should be similar to ensure what we want is included. Assistant City Engineer Ben Nelson said the City could do an RFP to protect the value of the land. Mr. Lee agreed, stating the process could be similar to that used for Rum River Shores. Mayor Pro-tem Wesp asked the Council consensus was to give staff direction to keep the process open but that some aspects of the financials would be kept private. Council consensus was in attained. The offer price would be made public. Mayor Pro-tem Wesp asked if the City was steadfast at $175,000. Councilmember Barnett she did not see it as steadfast, stating she would like to see offers above the appraised offer but would not want to have someone not submit an offer because of the amount, and that it could be acceptable if it were in the range and possibly they would be offering some additional bells and whistles that that the City would want. Councilmember Weaver stated he liked what he was hearing and asked that another question for the Council that what if they wanted a 30, 60, or 90-day window. He stated that he would like to see a 90-day window. Council consensus was the purchase price was negotiable and the window would be 90 days. Mayor Pro-tem Wesp stated that if there is currently an interested party, that offer would be put into the pool. He further asked if the Council wants the people that put in bids to have the opportunity to meet with the Council to discuss their proposal. November 28, 2022 (Worksession) Page 4 of 7 Mr. Lee said 90 days out would be March 1st and suggested that a meeting could be held on March 6 that would be televised and live zoomed. Councilmember Barnett asked if the presenters would be allowed to see others proposals. Councilmember Skogquist suggested a lottery for the order of presentations. Councilmember Weaver agreed but said the proposal would be submitted prior to the meeting. Further discussion was held on proposed process to submit proposals. Councilmember Weaver said keeping the process open will keep the public informed and stated it was important to be transparent as this was the taxpayers’ property. Mayor Pro-tem Wesp agreed but said it was the Council’s responsibility to make the best decision. Mike from Brinks Properties (not signed in), suggested reviewing proposals based on the price the City needs for the lot and then considering the best idea for the site. Mayor Pro-tem Wesp said the appraised value was $175,000 and that he feels that is negotiable, but that the City wants to get the best use and proposal for the lot. Councilmember Weaver noted if Jesse Hauf was part of any submission that he would abstain in discussions due to a potential conflict of interest. Mr. Lee asked about when bids become public because staff has one already and suggested handling them similar to receiving sealed bids. Councilmember Skogquist agreed but said that no one can adjust a proposal once opened by the Council/staff. Manager Lee suggested that the process be like a sealed bid process, and proposals not be opened until the time they are ready to go into the City Council meeting packet, adding that he does not even want staff to see the proposals until the time they get scanned and placed into the packet. By consensus, the Council agreed with that process. Councilmember Skogquist if the Council should come with ideas of things they would like to see the proposals included. Mayor Pro-tem Wesp suggested an RFP process be used and that the Community Development Director draft an RFP document that lists things about the property so that people that want to submit a bid would be informed of things such as easements, trails, etc., but that the Council would have the opportunity to review that document before it goes public. November 28, 2022 (Worksession) Page 5 of 7 Councilmember Barnett confirmed that the City Manager will communicate the process that this Council has in mind for this project with the new incoming Councilmember. Manager Lee responded affirmatively and said that he will ask the incoming Councilmember Scott if he had any input in the process. Mr. Lee said consideration could be based on the appraised value which would be open to negotiation as well as the need to interact with the park to the north in offering services in terms of food or beverage service and accommodate the existing snowmobile/ATV trail in their proposal and the expectation that this would provide food and beverage service then asked if the Council would like staff to draft some other standards for the area that the Council would like to see. Council consensus was in agreement with that. Councilmember Barnett suggested including parking solutions and impacts. Councilmember Skogquist suggested including addressing the public restroom element. Mr. Lee summarized that proposals would be received by March 1 with no financial information with a presentation that could include selecting the order and that Council was fine with each proposer hearing other proposals because they would have already been submitted. Manager Lee confirmed the process is that the City will go out for sealed bids, due on March 1st, staff will not open them until then and they will be scanned in and placed in the packet the following Friday, which will give Council the weekend to review them and come up with any questions they may have. Financial information will be redacted from the bids for the packet. Adding, in regards to the presentation, he asked if the submitters should be allowed to be present and here the other proposals. Councilmember stated that it would be nice if they could be separated, but it shouldn’t be required. Manager Lee confirmed that the direction from the Council will be that on March 6th the Council will give direction to staff to work with the preferred proposed, but it would not mean that the other proposals are completely off the table. Councilmember Barnett left the meeting at 6:13 p.m. to attend a funeral. Resident Michelle Olson shared comments about the last process and comments she had hear from the public about how they didn’t like the previous process. She add that she feels this new process is improved and will be more acceptable to the public. Council took a short recess. November 28, 2022 (Worksession) Page 6 of 7 3.3 Discussion; Street Renewal Program; 2023 Assessment Rates. Mr. Nelson shared a background report stating in 2016, 2017, 2018, 2019, 2020, and 2021 the assessment rates were increased approximately 2.4%, 3.5%, 5.8%, 6.0%, 7.1%, and 6.0% respectively for the Street Renewal Program (SRP). Percentage of Project Assessed is based on the bid price per foot of only street reconstruction for a typical 80- foot residential lot. Cost for storm sewer, sanitary sewer, watermain, and electric are not included in the footage. As a reminder, the water and sanitary sewer unit assessments are for the service laterals, not for sanitary sewer or the watermains. Utility fees collected by the city partially fund that work. To further explain the Percentage of Project Assessed, in 2022 the cost per foot of street reconstruction was $316 including professional services. So, $316 times 80 feet (front footage) divided by the typical street assessment of $5,790 ($4,030 plus $22 times 80 feet of frontage) equals 22.9%. Based on the average Construction Cost Index (CCI) published by Engineering News-Record, from 2021 to 2022, overall, general construction costs for the Twin Cities on average have increased approximately 7.2%. He reviewed the impact and costs for several proposed assessment rates and said after consideration staff recommended at least a 7.2% increase and is seeking direction from the Council regarding the proposed assessment rates for 2023 Street Renewal Project – Franklin Area Phase I. Mayor Pro-tem Wesp noted we were in our fourth price increase since 2022 due to inflation. Councilmember Skogquist spoke about average bid prices accepted and how no project was exactly the same for comparisons. Mr. Nelson agreed low bids can skew the figures. Mayor Pro-tem Wesp said the average bid was $1.35 but that this was not the low bid. Councilmember Weaver noted we get recommendations from staff on the most responsible bidder. Mr. Nelson outlined next steps for the lateral sewer main pricing which will be a 26% increase and suggested a not to exceed amount for either project. Mayor Pro-tem Wesp said spoke about projects 3-4 years ago and how inflation compared to this year. Councilmember Skogquist suggested using figures based on what the cost was of $9,840 or 14.5% and why should everyone should subsidize the private line to a home but the public does not benefit from an individual getting a new sewer line. Mr. Nelson noted there is a benefit because the street does not have to be replaced. November 28, 2022 (Worksession) Page 7 of 7 Discussion was held on past street renewal processes and how storm sewers were not connected and flooded buildings and not making errors that affect the infrastructure. Mr. Nelson spoke about bid differences from last year stating they were up 13% this year and asked for proposed assessment rates for 2023. Councilmember Weaver asked about partnering with other cities. Mr. Nelson said Anoka can be 5-10% lower because of the amount of sand. Mr. Lee said we are right-sized based on size and scope which is easier to be determined and get projects bid before anyone else and recommended 7.2% for street front footage which cover more of the service costs. He said the goal was 25% assessed and full amount of water/sewer but would recommend Option 2 or 3 because we can no longer support the current rate. Council discussed a 7.2% rate. Mr. Lee noted an assessment hearing would need to be held. Councilmember Weaver said this amount would include the lower assessment rate but be flexible enough to adjust to economic realities. After further discussion, the Council consensus was to move forward with a 12% increase and a $2 increase to the front footage assessment and if favorable bids come in, staff was directed to review the adopted assessment roll. UPDATES/REPORTS/COUNCIL SUGGESTIONS FOR TENTATIVE FUTURE AGENDA ITEMS None. 4. ADJOURNMENT Motion by Councilmember Weaver, seconded by Councilmember Skogquist to adjourn the Worksession at 6:52 p.m. Motion carried. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk