Anoka City Council

December 19, 2022 (Regular & Closed Executive Session) Page 1 of 10 REGULAR MEETING OF THE ANOKA CITY COUNCIL & CLOSED EXECUTIVE SESSION ANOKA CITY HALL CITY COUNCIL CHAMBERS DECEMBER 19, 2022 1. CALL TO ORDER Mayor Rice called the regular meeting of the City Council to order at 7:00 p.m., followed by the Pledge of Allegiance. 2. ROLL CALL Present at roll call: Mayor Rice, Councilmembers Barnett, Skogquist, Weaver, and Wesp. Staff present: City Manager Greg Lee; Public Services Director Mark Anderson; Police Chief Eric Peterson; Assistant City Engineer Ben Nelson; Finance Director Brenda Springer; Assistant Finance Director Liz Douglas; Senior City Planner Clark Palmer, Kevin Morelli, Liquor Operations Manager. Absent at roll call: None. 3. COUNCIL MINUTES 3.1 December 5, 2022, Regular Meeting. Councilmember Skogquist noted page 13, fifth paragraph, a spelling correction of Ephantus and on page 14 only four members were appointed to the Waste Reduction and Recycling Board. Motion by Councilmember Skogquist, seconded by Councilmember Wesp, to approve the December 5, 2022, Regular Meeting minutes as corrected. Vote taken. All ayes. Councilmember Weaver abstained. Motion carried. 4. OPEN FORUM 4.1 Anoka Lions Club; Recap of the Halloween Tent Events. Vicki Violet, Anoka Lions Club, presented a recap of the Halloween tent events that included a wrestling event, bands, and Taste of Anoka. She said they were working on a joint event with the Fire Department next year that would include a bags tournament and that they raised much more in funds than in the past. She said donations would be directed to John Ward Park for the skate park, Anoka December 19, 2022 (Regular & Closed Executive Session) Page 2 of 10 Police Department for K-9 support, and the Fire Department then thanked Anoka Police for their support, stating the event was extremely successful. Kevin Morelli, Better Values Liquor, spoke about the great collaboration with the Anoka Lions Club and noted all profits go back to the City. Councilmember Skogquist asked if the varieties poured at the tasting event were all in stock at the store or items of interest. Mr. Morelli said everything was available at the store with the exception of 10K brewery. Police Chief Eric Peterson said while there were large crowds there were no concerns with the event then added the Lions helped make the K-9 purchase possible and thanked them for their support. Councilmember Weaver said the Taste of Anoka event was very well done with great food offerings and asked how many attended. Ms. Violet said approximately 230 people attended then thanked the Council and staff for their hard work. Mayor Rice thanked the Lions for their work both in Anoka and around the world. 4.2 Introduction; Officer Holton and K-9 Kane and Police Activity Update. Police Chief Eric Peterson introduced K-9 Kane and Officer Jack Houlton who recently completed training which was entirely paid for through donations and a grant. He thanked the Anoka Rotary, Legion, Lions, and Anti-Crime Commission for their support and added Anoka has had a K-9 program for over 55 years and that Kane is the 19th partner then shared about a recent apprehension. Officer Houlton shared his background with Kane and the program and said he was very proud to be part of this legacy program. Councilmember Weaver asked how the dogs interact with families once the work day is done. Officer Houlton shared how Kane interacts with his family and how they help differentiate when it is time to work and play. Councilmember Barnett thanked Officer Houlton for his service in this role then asked about other qualifications or training. Officer Houlton shared his training background and work that will continue over 4-5 years, including a K-9 and swat team training then reviewed annual certification they participate in. Councilmember Weaver noted these officers need to be available at all times. Chief Peterson agreed, stating while it is less likely because there are more K-9s available in other departments then spoke about the Koss Family Foundation donation for purchase of future K-9s. He also highlighted a recent grant received identified by Officer Orrin to replace AEDs valued at $25,000 and that training December 19, 2022 (Regular & Closed Executive Session) Page 3 of 10 would be offered soon then wished everyone a safe and happy holiday season and thanked the Council for their support. Councilmember Barnett thanked Officer Orrin for his work identifying this grant. Councilmember Wesp noted the department has had a difficult year with the loss Officer Gruebner and the removal of K-9 Bravo from service but that the department preserved then thanked Chief Peterson for his leadership. OTHER INFORMATION UNDER OPEN FORUM None. 5. PUBLIC HEARING(S) None. 6. CONSENT AGENDA Councilmember Wesp noted for the record that his brother was the gambling manager of the Anoka Area Hockey Association. Motion by Councilmember Wesp seconded by Councilmember Weaver, to approve Consent Agenda Items 6.1 through 6.3 as presented. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. 6.3 Recommended Approval of an LG230 Off-Site Gambling (Raffle) for Anoka Area Hockey Association at the Anoka Area Ice Arena for Raffle Events for December 1, 2023. 6.4 U.S. Highway 10/169 Improvement Project; Approve Change Orders Number 33 and 34. Vote taken. All ayes. Motion carried. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 7.1. Planning Items. None. December 19, 2022 (Regular & Closed Executive Session) Page 4 of 10 8. PETITIONS, REQUESTS AND COMMUNICATION None. 9. ORDINANCES AND RESOLUTIONS 9.1 RES/Sewer Utility Rate Increase. Finance Director Brenda Springer shared a background report stating on December 5, 2022, the City held a public hearing and presented the proposed sewer utility rate increase and there were no objections. Annually the City Council reviews the City utility rates during the budget process. This review process involves looking at long-term capital expenditures by annually updating the Capital Improvement Plans for 5 years out. For 2023, staff is recommending an increase in the sewer utility rate beginning in January. The most recent sewer rate increase was in 2020, rates increased about $1.43 per month for an average water user. Finance is recommending rate increases for sewer for the next several years to pay for planned infrastructure improvements and increases in operating costs. The proposed increase in the sewer rate is $0.40 per month for the average water user for residential properties. This is about a 1.6% increase in an average monthly sewer utility charge. Councilmember Skogquist stated much of the costs were due from the Metropolitan Council and reasonable. Motion by Councilmember Skogquist, seconded by Councilmember Barnett, to adopt a resolution relating to adoption of a sewer utility rate increase for 2023. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Weaver, Skogquist, and Wesp voted in favor. Motion carried. 9.2 RES/Water Utility Rate Increase. Ms. Springer shared a background report on December 5, 2022, the City held a public hearing and presented the proposed water utility rate increase and there were no objections. Annually the City Council reviews the City utility rates during the budget process. This review process involves looking at long-term capital expenditures by annually updating the Capital Improvement Plans for 5 years out. For 2023, staff is recommending an increase in the water utility rate beginning in January. The most recent rate change was in 2016. The proposed rates will increase residential water $0.64 per month for an average user. Finance is recommending rate increases for water for the next several years to pay for planned infrastructure improvements and increases in operating costs. The new proposed water rate is $1.55 per month, up $0.08 per 100 cuft for residential properties. This is about a 5.4% increase in an average monthly water utility charge. December 19, 2022 (Regular & Closed Executive Session) Page 5 of 10 Councilmember Barnett noted the most recent increase was in 2016 which is conservative and that while small the increase will help pay for future CIP. Motion by Councilmember Barnett, seconded by Councilmember Weaver, to adopt a resolution relating to adoption of a water utility rate increase for 2023. Councilmember Wesp clarified the increase was $.08 per 100 cubic feet. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Weaver, Skogquist, and Wesp voted in favor. Motion carried. 9.3 ORD/Adopting 2023 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. He outlined the proposed changes in detail then outlined changes since first reading including the trip fee, outdoor seating, rental fee for City-owned pedestrian barricades and J-barriers, rental of street closure supplies including overtime hourly rate, two- hour hour minimum for set up. Councilmember Skogquist asked if the changes would affect groups such as Night to Unite and football games. Mr. Lee replied not unless there was something extraordinary. Chief Peterson added they currently charge the school district for police officer time for barricades. Mr. Lee said that will likely continue without assigning a charge. Mayor Rice asked about the trip fee and electric turnoff fee. Assistant Finance Director Liz Douglas said the $50 fee covers cut off and reconnection but after- hours connection would be an additional $50. Mayor Rice asked if they pyramid style barricades were effective. Chief Peterson said they prevented vehicles from passing and were recently purchased to better secure our events. Councilmember Weaver noted the Council has the authority to waive fees if they so choose. December 19, 2022 (Regular & Closed Executive Session) Page 6 of 10 Motion by Councilmember Skogquist seconded by Councilmember Wesp, to hold second reading and adopt an ordinance establishing a fee schedule for the City of Anoka effective January 1, 2023. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Weaver, Skogquist, and Wesp voted in favor. Motion carried. 9.4 RES/Adopting the Budget for the Year 2023. Ms. Springer shared a background report stating the 2023 budget process began in June and is based on Council directives and the 2022 goal session. The Council has reviewed the 2023 budget, as proposed by the City Manager, at several meetings in August. The City Council held a public hearing on December 5, 2022 to hear from the public regarding the proposed 2023 budget and levy. The total budget for all funds excluding the HRA component unit is $94,202,536, which is a 28.2% increase from 2022. The increase is attributed to an increase in capital project spending mainly Highway 10. The 2023 levy is to be set at $8,295,505 this is a 6.19% increase as compared to 2022. The average taxpayer will see an increase from 5 – 15% in City property taxes as a result of the increased levy and changes in the fiscal disparity distribution and home value increases. The General Fund budget is $15,473,226 which is a $1,365,737 increase from the 2022 budget. She outlined total revenues of $98,635,522, total expenditures of $94,202,536, and said the annual effect of the City levy on a home valued at $310,600 is an increase in City taxes of approximately $105 or 12.8%, for a total City tax of approximately $926. Councilmember Skogquist commented about the amount of total budget compared to Coon Rapids which is much larger and felt the increase kept up with inflation and was an appropriate amount. Councilmember Weaver spoke about the amount of increase due to bonding and debt levy and cautioned against bonding more projects and for that reason will be voting against the budget. He said we need to identify new revenue sources as it impacts the taxpayers. Ms. Springer stated 4.3% is due to the increase in debt service for park the maintenance building. Councilmember Wesp asked more about what the $1.35 million included and agreed it is easy to bond but did not think inflation was going to slow down and would support the budget. He said the total budget was decreased significantly from the beginning but agreed we have to find other ways to pay for projects. Ms. Springer explained the added capital improvements were offset by ARPA funds and the project in the aquatic center flooring had revenues to offset the expense. December 19, 2022 (Regular & Closed Executive Session) Page 7 of 10 Motion by Councilmember Wesp, seconded by Councilmember Skogquist, to adopt a resolution adopting the budget for the year 2023. Mayor Rice spoke about low interest rates for bond projects then compared this to home maintenance and improving our homes and noted we have borrowed at the lowest rate possible which helps our bond rating overall. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist, and Wesp voted in favor. Councilmember Weaver voted nay. Motion carried. 9.5 RES/Adopting a Levy for the Year 2022, Collectible in 2023. Motion by Councilmember Wesp, seconded by Councilmember Barnett, to adopt a resolution adopting a levy for the year 2022, collectible in 2023. Councilmember Weaver said the increase began at over 25% and was brought down but that he still had concerns with bonding as we are at capacity and not developing. Councilmember Wesp said the increase is typically 3-4% and noted we were not going to get as good rates on bonds and while he encouraged the requests for new trucks and squads he cautioned against staffing without support. Councilmember Skogquist said not many other cities increases were as low as ours and that most were much more and while we were spending some reserve to level out the increase that was the reason for the reserve but added we cannot do this forever and need to pay for what we are building especially as an older city. Mayor Rice spoke about the delay in equipment replacement and the need to move forward when required. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Skogquist, and Wesp voted in favor. Councilmember Weaver voted nay. Motion carried. 9.6 RES/Approve and Execute the Delegated Contracting Process Agreement with the State of Minnesota Department of Transportation. Assistant City Engineer Ben Nelson shared a background report this item is on the agenda to reintroduce an agreement that was originally executed around 2003. Pursuant to a resolution adopted on the 16th day of January, 2018, City Council approved the Delegated Contracting Process (DCP) Agreement and this agreement terminates on December, 31, 2022. This agreement covers the roles and responsibilities associated with federal aid funds and allows for Minnesota Department of Transportation (MnDOT) to act as a local government’s agent in accepting these funds for construction projects that the City has been awarded. DISCUSSION MnDOT will be able to act as the Local Government’s agent in December 19, 2022 (Regular & Closed Executive Session) Page 8 of 10 accepting federal funds on the Local Government’s behalf for the construction, improvements, or enhancement of transportation financed either in whole or in part by Federal Highway Administration federal funds and noted there is no cost to sign the agreement. Mr. Lee noted the agreement has been in place for over 20 years. Motion by Councilmember Skogquist, seconded by Councilmember Weaver, to adopt a resolution to approve and execute the Delegated Contracting Process Agreement with the State of Minnesota Department of Transportation. Upon a roll call vote: Mayor Rice, Councilmembers Barnett, Weaver, Skogquist, and Wesp voted in favor. Motion carried. 10. UNFINISHED BUSINESS None. 11. NEW BUSINESS 11.1 U.S. Highway 10/169 Improvement Project; Consideration of Approving City of Anoka Road Right-of-Way Plan No. 1 for Right-of-Way Dedication to the State of Minnesota Department of Transportation. Mr. Nelson stated pursuant to an ordinance (ORD-2008-1365) adopted by Anoka City Council on the 6th day of October, 2008, the City officially mapped the property located at 1125 West Main Street. On October 6, 2008, City Council adopted a resolution (RES-2008-61) authorizing RALF loan application and purchase of said property. On April 20, 2009, City Council adopted a resolution (RES-2009-28) approving the loan agreement with Met Council for protective acquisition rights. The agreement and restrictive covenant were made and entered into on the 23rd day of November, 2009; subsequently identified as RALF loan number L-09-03. The total amount of said agreement for this property acquisition was in the amount of $1,368,284.89 of which zero dollars has been repaid. On December 29, 2017, the State of Minnesota Department of Transportation (MnDOT), in partnership with the Department of Employment and Economic Development, awarded the City of Anoka the full requested $5M in State Trunk Highway funds for the engineering, design, property acquisition, and construction of the combined improvements along Trunk Highway 10 from their Transportation Economic Development (TED) Program. On November 7, 2022, Council made a motion approving the repayment of right-of-way (ROW) acquisition loan fund (RALF) loans and cooperative construction agreement amendment number 1 for the former Vineyard site located at 1125 West Main Street. The loan agreement for property purchased with RALF funds required the City to enter into an agreement for restrictive covenant on the property which December 19, 2022 (Regular & Closed Executive Session) Page 9 of 10 states that the property shall not be used for any purpose except for highway purposes unless the Metropolitan Council consents to other use. Councilmember Weaver asked about acquiring from The Vineyards and who owns the land now and where will the funding come from. Mr. Nelson said Anoka owns the land but we have a loan with Met Council and that post construction any extra land would be considered to be sold at $1.1 million after we make payment for the new easement and permanent right-of-way. He noted any land remaining on the parcel would be brought to the market and either purchased or pay off the loan and will do an appraisal post construction for next steps, otherwise we do not have to make up the difference as it will be forgiven. Councilmember Weaver noted the amount of ingress/egress will determine the value of the land. Councilmember Skogquist confirmed once complete the land is owned free and clear. Motion by Councilmember Weaver, seconded by Councilmember Wesp, to approve the City of Anoka Road Right-of-Way Plat No. 1 for the parcel located at 1125 West Main Street and accept the easements and the road right-of-way that will be dedicated with the plat to the State of Minnesota Department of Transportation for the U.S. Highway 10/169 Improvement Project. Vote taken. All ayes. Motion carried. 12. UPDATES AND REPORTS 12.1 Distribution of Second Half Round-Up Funds. Ms. Douglas shared an update on the status of the “Round Up for Change” program regarding collections and disbursement of revenues. The round up program, which was adopted November 21, 2011, Policy # 2011-03, has been in place starting 2012. Funds 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 increase in participants when compared to December 2022 (239 additional accounts, or 4.8%) due to diligent introduction from staff. Revenue total through December 15th is $28,227 and there is $13,800 available for disbursement. CEAP, Cross Services, and Anoka ACBC Food Shelf, Alexandra House, and Community Missions. Councilmember Weaver spoke about how the program came about and its success thanks to finance staff resulting in moving donations from the general fund. Mayor Rice noted the average increase per year is $5-$7 per year which is remarkable given the amount of funds donated. December 19, 2022 (Regular & Closed Executive Session) Page 10 of 10 12.2 Tentative Agenda(s). The Council reviewed the tentative agendas of the upcoming Council meetings. 12.3 Staff and Council Input. Councilmember Wesp thanked Councilmember Barnett for serving well on the Council over the past four years and for her wisdom and work. Ed Evans, 1186 Benton Street, thanked Councilmember Barnett for her work on the Council over the past four years. Chief Peterson noted Councilmember Barnett was a police reserve before she served as Councilmember. Mayor Rice said Councilmember Barnett was prepared, insightful, and very bright that he was very appreciative of her serving. Councilmember Skogquist noted it was important to be able to disagree without being disagreeable and thanked Councilmember Barnett for her energy and effort and for caring about Anoka. Councilmember Weaver said Councilmember Barnett will be truly missed. Councilmember Barnett thanked everyone for their words, stating while there were many ups and downs she tried to be as prepared as possible and do what the residents would best like to see. She said she felt good about her service and thanked the Council as she respected and admired every member then stated Anoka had an outstanding City staff. CLOSED EXECUTIVE SESSION 8:28 pm Councilmember Wesp made a motion to recess the Regular Council meeting at 8:28 pm to move into a Closed Executive Session, pursuant to 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. Closed Executive Session; Annual Performance Evaluation of City Manager was held. ADJOURNMENT Councilmember Weaver made a motion to adjourn the meeting at 9:38 pm, Councilmember Wesp seconded the motion. Vote taken. All Ayes. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk