Anoka City Council

August 7, 2023 (Annual Budget Presentation) Page 1 of 3 ANNUAL BUDGET PRESENTATION OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS AUGUST 7, 2023 1. CALL TO ORDER Mayor Pro Tem Weaver called the meeting to order at 6:03 p.m. 2. ROLL CALL Present at roll call: Mayor Rice (arrived at 6:15p.m.), Councilmembers Scott, Skogquist, Weaver, and Wesp. Staff present: City Manager Greg Lee; Community Development Director Doug Borglund; Assistant City Engineer Ben Nelson; Finance Director Brenda Springer; City Attorney Scott Baumgartner; Police Chief Eric Peterson; Public Works Director Mark Anderson; Utility Director Del Vancura. Absent: None. 3. COUNCIL BUSINESS and/or DISCUSSION ITEMS 3.1 Discussion; Annual Budget Presentation. City Manager Greg Lee shared a staff report with background information stating this was the annual proposed budget meeting as required by City Charter. He said the presentation would outline the process, goals, and parameters and the proposed budget with highlighted changes for the 2023 budget and 2024 budget levy, including impacts to taxpayers. He said the process included factors affecting the 2024 budget and highlight major decisions and set a budget decision making schedule. He said at previous worksessions department heads presented their Capital Improvement Plan (CIP) and Equipment Replacement Plan (ERP) requests and that the 2024 budget has a proposed operating and debt levy increase of $2,374,618 or 28.12% over 2023 budget. The debt for the Law Enforcement Training Center/Animal Containment will have its first principal payment due in January 2024 and the 2023 Street improvement bonds will have its first interest payment due, so there is an increase in the debt levy of $451,334 or 3.17%. He noted this was just the beginning of the budget process and that Council and staff will have the opportunity at the upcoming worksessions to adjust this initial budget. Mr. Lee outlined the budget philosophy and budget elements in detail, including changes and proposals. Finance Director Brenda Springer shared the average tax capacity increased 20% and that staff included a small increase in the 2024 estimates as well as it directly affected the levy and what residents actually pay. August 7, 2023 (Annual Budget Presentation) Page 2 of 3 Councilmember Skogquist inquired about the camera and license plate readers expense being included in two areas of the budget. Ms. Springer responded the expense was to be listed in the building improvement fund and had been corrected. Councilmember Weaver requested ensuring separation of disc golf and cross- country skiing during the winter season at Green Haven Golf Course, especially with regard to the high school teams. Councilmember Weaver shared an update from the City of Champlin regarding lighting the Highway 169 arches and their request for Anoka’s participation in the future and to include that expense in the CIP for consideration. Councilmember Weaver inquired about including funds for a river channel maintenance fund. Ms. Springer outlined possible funding sources for these expenses that will be included in the budget, such as dock revenue. Councilmember Weaver said he understood dock revenue would be directed towards park capital fund and will river maintenance be a park capital item going forward. Ms. Springer responded the item could be structured in different ways. Councilmember Weaver said there have been requests for refunds for dock leases due to the current river levels. Mr. Lee responded lease costs would be refunded to residents if requested. Councilmember Skogquist requested that review of proposed budget revisions be shown in real time at the next meeting to be able to visualize the resulting dollars then asked to include potential revenue for the downtown parking ramp. Councilmember Scott asked if the proposed full-time position in building/streets was a replacement at a full amount or incremental. Ms. Springer confirmed the cost was to replace a former position as well as an additional position. Mr. Lee explained the need for part-time help for winter duties such as shoveling as it was a position that was not backfilled and would allow the building maintenance position to focus on higher level tasks. Councilmember Skogquist asked to included proposed revenue for party rental to offset the $45,000 expense for new umbrellas at the aquatic center. Councilmember Weaver inquired about the proposed Kubota and if the tracks can be removed for summer use. Public Works Director Mark Anderson explained the current Kubota was a wheeled vehicle and was converted in March and the other could be converted again but noted there were two without cabs which was not ideal for winter use. August 7, 2023 (Annual Budget Presentation) Page 3 of 3 Councilmember Weaver asked if Polaris could be contacted regarding the possibility of purchasing used UTVs instead of purchasing new. Councilmember Skogquist spoke about tax capacity and growth and suggested including the new construction valuations for 2023. Ms. Springer noted the Volunteers of America project was included in the TIF district which comes off the tax capacity calculations. UPDATES/REPORTS/COUNCIL SUGGESTIONS FOR TENTATIVE FUTURE AGENDA ITEMS None. 4. ADJOURNMENT Motion by Councilmember Weaver, seconded by Councilmember Scott to adjourn the Budget Presentation at 6:50 p.m. Motion carried. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk August 7, 2023 (Regular) Page 1 of 15 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS AUGUST 7, 2023 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 Scott, Skogquist, Weaver, and Wesp. City Manager Greg Lee; Community Development Director Doug Borglund; Assistant City Engineer Ben Nelson; Finance Director Brenda Springer; City Attorney Scott Baumgartner; Police Chief Eric Peterson; Public Works Director Mark Anderson; Utility Director Del Vancura. Absent at roll call: None. 3. COUNCIL MINUTES 3.1 June 20, 2023 Special Worksession. June 26, 2023 Worksession. July 17, 2023 Special Meeting. July 17, 2023 Regular Meeting. Motion by Councilmember Skogquist, seconded by Councilmember Scott, to approve the minutes of the June 20, 2023, Special Worksession, June 26, 2023 Worksession, July 17, 2023 Special Meeting, and July 17, 2023 Regular Meeting as presented. Vote taken. All ayes. Motion carried. 4. OPEN FORUM 4.1 Police Activity Update. Police Chief Eric Peterson said the Anoka County Fair went well and had increased security through the Sherriff’s Office based on activity last year which likely assisted. He said staff received some parking complaints in neighborhoods which will be addressed prior to next year. He said about last week’s Night to Unite event that included 20 neighborhood parties and provided opportunities for neighbors to share about their neighborhoods which strengthens the community then spoke about the upcoming sixth annual Cookout with Cops event in August August 7, 2023 (Regular) Page 2 of 15 and thanked the community partners. He shared about the increase of DUIs up 85% from last year and work to address, with 8 arrests last weekend alone. Councilmember Weaver asked about the recent riverboat rescue at the nature preserve. Chief Peterson shared how an individual had used a rope swing which resulted in the need for rescue after severely injuring his leg and how the boat rescue worked to bring the individual to safety. Councilmember Weaver said the City has many remote areas and having the ability to access these areas in the event of an emergency is very important and thanked staff for their work. Mayor Rice said in addition to DUI increases there is also increases in distracted driving. Chief Peterson shared about their work to address distracted driving through education first then enforcement and the hope for a dedicated officer in the future to assist in these efforts. 4.2 Highway 10 Anoka Construction Update. Assistant City Engineer Ben Nelson shared an update regarding Highway 10 construction. Councilmember Skogquist asked about the West Main Street extension and the recent bonding funding in Coon Rapids. Mr. Nelson said West Main Street extension was now open and said he was unsure of the actual schedule for the Coon Rapids project at this time, adding it will be an Anoka County project. Councilmember Weaver stated the roundabout at West Main Street continues to be confusing for drivers and expressed concerns about speeds coming off West Main Street. Mr. Nelson shared elements that will assist including a dynamic speed sign in the right-of-way and MnDOT’s work on educational materials on how to use the roundabout. Chief Peterson spoke about how constant speed enforcement helps and the goal to be present as much as possible to assist. Councilmember Scott shared concerns about biking in this area with the traffic. Mayor Rice spoke about West River Road and speed limit signs and asked how frequently they mark speed and suggested removing the sign on the bridge to help address. Mr. Nelson said staff will inquire about that possibility with MnDOT. OTHER INFORMATION UNDER OPEN FORUM Joelle Coyle, Anoka, spoke about the roundabout and suggested a speedbump be added to help slow traffic then commented on the City’s proposed organized August 7, 2023 (Regular) Page 3 of 15 hauling and encouraged the City to reconsider and let the residents choose through a ballot petition. 5. PUBLIC HEARING(S) 5.1 Tax Abatement of Parcels Within the City of Anoka to Issue Tax Abatement Bonds. Authorizing the Sale of Abatement Bonds, Series 2023B in an Amount Not to exceed $11,000,000. Finance Director Brenda Springer shared a background report stating at the June 26 meeting Council was presented with a purchase agreement for 2939 6th Avenue. She said Council approved the agreement and is intending to issue $11 million in general obligation bonds which requires a public hearing for public testimony. Mayor Rice opened the public hearing at 7:36 p.m. Being no comments Mayor Rice closed the public hearing at 7:36 p.m. 6. CONSENT AGENDA Motion by Councilmember Wesp, seconded by Councilmember Weaver, to approve Consent Agenda Items 6.1 through 6.8 as presented. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. 6.3 Acceptance of Resignation from Waste Reduction and Recycling Board; Leslie Ganser. 6.4 Issuance of License for the Sale of Cannabinoid Products; the GR8 Vape, 500 W. Main Street. 6.5 U.S. Highway 10/169 Improvement Project; Approve Change Orders Numbers 56, 58, 59, and 60. 6.6 Waiving Facility Charges for Designated Organizations; Boy Scout Troop 204 and MN National Guard HHB (DET) 2-125 FA Detachment (Anoka Armory). 6.7 Recommended Approval of an LG220 Gambling Permit; Ramsey Police Association. 6.8 Issuance of License for the Sale of Cannabinoid Products; Better Values Liquor, 847 East River Road. August 7, 2023 (Regular) Page 4 of 15 Councilmember Wesp referenced item 6.3, thanked Commissioner Ganser for her service, then inquired about cannabinoid products and about the proposed products being available for sale. City Attorney Scott Baumgartner explained these licenses were for lower-potency products and that licensing for cannabis would not be in effect until January 1, 2025, as the State works to create the office. Councilmember Weaver spoke about the gambling permit for the hockey game with the Ramsey Police Association. Chief Peterson explained the event would be held August 25 and the Association wants to conduct a raffle for the family of the late Officer Groebner. Councilmember Skogquist encouraged staff to contact the past applicants for Waste Reduction and Recycling Board regarding their potential interest in being appointed then requested correction to the address for 847 East River Road in Item 6.8. Vote taken. All ayes. Motion carried. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 7.1 Planning Items: None. 8. PETITIONS, REQUESTS AND COMMUNICATION None. 9. ORDINANCES AND RESOLUTIONS 9.1 RES/Revising Resolution RES-2023-048 Relating to the Issuance and Sale of Taxable General Obligation Tax Abatement Bonds, Series 2023B in the Amount of $11,000,000. RESOLUTION City Manager Greg Lee shared a background report stating at the July 17, 2023, meeting Council adopted RES-2023-048 Relating to the Issuance and Sale of Taxable General Obligation Tax Abatement Bonds, Series 2023B in the Amount of $11,000,000. At the meeting the Council made a revision to the submitted resolution which inserted the word "possible" before demolition. Since that meeting, staff was directed to bring forth an amendment to RES-2023-048, which would now remove the word "possible" before demolition. Councilmember Skogquist said he had requested the addition of the word possible to the resolution but after Council discussion was comfortable removing the word as proposed. August 7, 2023 (Regular) Page 5 of 15 Motion by Councilmember Skogquist, seconded by Councilmember Scott, to adopt a revised resolution providing for the Issuance and Sale of Taxable Temporary General Obligation Tax Abatement Bonds, Series 2023B in the Proposed Aggregate Principal Amount of $11,000,000 that removed the word “possible” before demolition. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, Weaver and Wesp voted in favor. Motion carried. 9.2 RES/Revising Resolution RES-2023-049 Relating to the Intent to Reimburse Expenditures Using Proceeds of Tax Abatement Bonds. RESOLUTION Motion by Councilmember Skogquist, seconded by Councilmember Scott, to adopt a revised resolution stating official intent to reimburse certain expenditures of the City of Anoka using the proceeds of tax abatement bonds to be issued by the City that removed the word “possible” before demolition. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, Weaver and Wesp voted in favor. Motion carried. 9.3 RES/Approving Property Tax Abatements. RESOLUTION Ms. Springer shared a background report stating the City of Anoka entered into a purchase agreement to acquire the property located at 2939 6th Avenue, Anoka MN 55303 also known as Miller Manufacturing. Financing for this purchase will be issuing Propriety Tax Abatement bonds that are authorized by MN Statutes, Section 436.1812 – 469.1815. The proposed term of the abatement will be up to 15 years with an estimated amount not to exceed $11,000,000. The abatement will apply to the City’s share of the property taxes derived from the property identification numbers that are listed in the proposed resolution. The abatement period will apply to the taxes payable for years 2026-2040. Through financing the City has capitalized all interest expense up to the February 1, 2026 payment. Councilmember Wesp confirmed there was no effect on the property owner and the abatement is more like collateral. Motion by Councilmember Skogquist, seconded by Councilmember Scott, to adopt a resolution approving the property tax abatement. Councilmember Wesp said this was a significant move for the City and while expensive overall this was a step in the right direction to take an area that was more industrial and create possible redevelopment with the Volunteers of August 7, 2023 (Regular) Page 6 of 15 America and David Weekley, including the potential for a whistle stop for Amtrak. He said there has been a lot of time and energy in this area and thanked staff and Council for their work. Councilmember Weaver spoke about the area and interest, stating 24 acres in Anoka was rare and it will be amazing to have a clean slate of land and suggested the possibility of a community center in the future. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, Weaver and Wesp voted in favor. Motion carried. 9.4 ORD/Authorizing the Sale of Abatement Bonds, Series 2023B in an Amount not to Exceed $11,000,000. (2nd Reading) ORDINANCE Ms. Springer shared a background report stating that for second reading the word “possible” has been removed from the ordinance with regards to demolition. At the June 26, 2023, meeting the Council was presented with a purchase agreement for property known as 2939 6th Avenue (PIDs 06-31-24-22-0010 & 06-31-24- 0090). The City Council requested the City Attorney work with the Seller’s Attorney to revise the purchase agreement and address concerns brought forward by the City Council. On June 29, 2023, the City Council approved the revised purchase agreement. Friday June 30, 2023, the agreement was presented to the seller along with $180,000, wire transfer for earnest money. Staff is proposing Council authorize the sale of Taxable GO Temporary Tax Abatement Bonds not to exceed $11,000,000. Motion by Councilmember Skogquist, seconded by Councilmember Scott, to hold second reading and adopt an ordinance authorizing the sale of taxable temporary General Obligation Tax Abatement Bonds in an amount not to exceed $11,000,000 that removed the word “possible” before demolition. Mayor Rice said this was an important step for an important area for redevelopment in Anoka and looked forward to the new development that will result. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, Weaver and Wesp voted in favor. Motion carried. August 7, 2023 (Regular) Page 7 of 15 9.5 ORD/Amending Chapter 18 Buildings and Building Regulations. (2nd Reading) ORDINANCE Mr. Borglund shared a background report stating the City discussed the proposed ordinance amendment at its July 17, 2023 regular meeting. The City Council stated no concerns or changes. The State of Minnesota Department of Labor and Industry (DOLI) conducts plumbing plan reviews for permits in Anoka, as stipulated in Minnesota Rules 1300.0215, Subpart 6. Minnesota Statutes 326B.43, Subdivision 2 permits the delegation of authority for plumbing plan review for public and commercial projects to municipalities. This statute enables the DOLI Commissioner to establish an agreement with a municipality, in which the municipality agrees to carry out plan reviews typically performed by the commissioner or their designee. To obtain this special delegation, the City of Anoka must undertake steps to formalize the delegation, including the approval of an ordinance to offer local plumbing plan review services, the endorsement of an application and submission of an agreement with the State of Minnesota, the establishment of local fees, and ensuring the designated representative of the municipality is eligible to perform the local plumbing plan reviews. This delegation agreement will benefit the City of Anoka by generating additional revenue that the State of Minnesota usually retains by conducting these reviews. More importantly, the customer service benefits for permit applicants and residents are significant. The state is typically eight to twelve weeks behind on plan review, causing considerable delays in construction. Our Building Inspection Consultant (Rum River Consultants, LLC.) has the capacity to review plumbing plans in half the time. If Anoka receives this delegation, it will enable projects to begin and conclude more swiftly and improve our level of customer service. The City of Anoka currently handles its Electrical Inspections and Permits under a delegation agreement from the State of MN DOLI (State of Minnesota, Deportment of Labor and Industry). He noted the City of Ramsey and the City of Andover just made the same adjustments to pull plumbing plan review in-house and are using a consultant for that work to reduce delay and improve customer service. Also, on August 7, 2023, staff will be bringing forward an amendment to the fee schedule to establish appropriate fees for this work. Motion by Councilmember Weaver, seconded by Councilmember Skogquist, to hold second reading and adopt an ordinance amending Chapter 18 Buildings and Building Regulations; Article II Building Code of the Code of the City of Anoka Minnesota. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.6 ORD/Amending City Council Salaries. August 7, 2023 (Regular) Page 8 of 15 (2nd Reading) ORDINANCE Mr. Lee shared a background report stating first reading of this proposed ordinance was held at the July 17, 2023 regular meeting. There have been no changes made since the first reading. At your worksession on June 26, 2023, the Council discussed a proposed increase to the Council salaries. Anoka City Charter requires the City Council to review their salaries in June of every odd numbered year. At the worksession, staff made a recommendation that the Council increase their salaries on an annual basis, which would not go into effect until January 1st after each Municipal General Election. Staff's recommendation was for the increase to coincide with the COLA increase that City staff receives. Motion by Councilmember Scott, seconded by Councilmember Skogquist, to hold second reading and adopt an ordinance establishing salaries for Mayor and City Council pursuant to Section 2.07 of the Charter of the City of Anoka based on Option 1. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.7 ORD/Establishing Social District Regulations. (1st Reading) Mr. Borglund shared a background report stating during the 2022 Minnesota Legislative Session as part of the Omnibus Liquor Bill that was signed into law. The Liquor Bill included a special provision only for the City of Anoka enabling the City to establish something called a “Social District”. This law is exclusive to the City of Anoka, in the State of Minnesota. City worked closely with Representative Zach Stephenson who assisted with changing State Law exclusively for Anoka. The proposal is to amend is to existing Chapter 10 Amusements and Entertainment, adding and establishing Article VI (6) Social Districts. A “Social District” is specific area, which allows people to purchase and drink beer, wine, or a cocktail from a licensed business and walk through a defined area of the city including public areas such as sidewalk or street or participate in a district event/activity. Adoption of the proposed regulations will enable the City of Anoka to issue a Social District license to any holder of an on- sale liquor license who’s on-sale premises is contiguous with the premises of the Social District as defined by the City. If a business has a liquor and Social District license, you can participate along with your patrons in the district. Businesses participating in the district can allow its customer to buy and take their drink and consume it in the public realm like on the sidewalk, park, or in the street as part of an event in the district. As well, the City of Anoka must establish management and maintenance plans for the social district and post these plans, along with a rendering of the boundaries of the social district and days and hours during which August 7, 2023 (Regular) Page 9 of 15 alcoholic beverages may be consumed in the district, on the website for the City of Anoka. The Social District must be maintained in a manner that protects the health and safety of the general public. The State Law enables the City of Anoka to establish a Social District effective upon approval by the Anoka City Council of an ordinance and management/maintenance plan in compliance with Minnesota Statutes, Section 645.02. Councilmember Weaver thanked staff and all involved for their work in establishing this district and believed it will be very successful. He noted while there will likely be issues Chief Peterson had provided much input to address and create consistency and thanked everyone for their work. Councilmember Skogquist thanked staff as well, stating launching it for September was a good way to start slow and gather data on how this will function and provide an opportunity to make changes over the winter and be ready for 2024. He said he supported the larger area as proposed and was in favor of the plan. Mr. Lee commented in addition to entertainment the City will work with the Anoka Area Chamber of Commerce to promote how people can walk, sip, stroll, and shop and promote Anoka as a unique “shopertainment” experience. Councilmember Skogquist spoke about the social district and pedestrian-oriented portion and supported the plan as proposed now with nothing closed but said we can adapt as needed and could do temporary street closings for Jackson Street. Chief Peterson agreed that street closings could occur in the future for any reason or for any event but noted that will take time and energy by staff to accomplish. Mayor Rice said the boundaries are much larger than he originally anticipated but was impressed with the size which includes the park and opens up opportunities for larger events to occur within the district. He said Main Street was a significant obstacle and while it would be great to include restaurants on the other side, he had concerns about pedestrian crossings but would support expanding the boundaries to include the Anoka Feed Mill or other restaurants at some point in the future. Mr. Borglund said the boundaries can always be amended as long as they are clearly defined. Mr. Lee spoke about including restaurants on the south side of Main Street possibly next year but wanted to start this way as a trial to see what concerns may occur first. Motion by Councilmember Wesp, seconded by Councilmember Skogquist, to hold first reading of an ordinance Amending Chapter 10 Amusements and August 7, 2023 (Regular) Page 10 of 15 Entertainment; Establishing Article VI. Social Districts of the Code of the City of Anoka Minnesota. Councilmember Wesp thanked staff for their hard work in creating opportunities for the City but was not sure a social district was the best concept and would not be supporting the ordinance. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, and Weaver voted in favor. Councilmember Wesp voted nay. Motion carried. 9.8 ORD/Revising 2023 Master Fee Schedule. (1st Reading) Mr. Borglund shared a background report stating staff is proposing two amendments to the 2023 Master Fee Schedule will establish new fees in the area of building permits and administration. Proposed Social District Fees: With the adoption of regulations to establish a Social District. The City is required to establish a Social District License along with a fee. As part of the Social District the City is proposing to establish a surcharge on Social District beverage cups to help cover the cost of maintenance and management of the Social District once established. Proposed Plumbing Fees: The City is in process of taking back plan review authority from the State of MN to speed up the process and reduce delays in construction. The City will need to establish fees related to permit for public, institution, and commercial projects/permits. The proposed fees are similar to what Ramsey and Andover just adopted. Both Ramsey and Andover are also taking plumbing plan review back in house for the same reasons. Motion by Councilmember Skogquist, seconded by Councilmember Scott, to hold first reading of an ordinance amending the 2023 Master Fee Schedule of the City of Anoka, Minnesota. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, and Weaver voted in favor. Councilmember Wesp voted nay. Motion carried. 9.9 RES/Approving Contract for Deed, 2939 6th Avenue. RESOLUTION Mr. Borglund shared a background report stating the City Council has approved and entered into a Purchase Agreement with Lakeland Tool and Engineering Inc. regarding property known as the 2939 6th Avenue. The Purchase Agreement was executed on July 19, 2023, which included a draft contract for deed as an exhibit. The City will need to approve the final contract for deed, which will need to be executed on or before August 10, 2023 to close on the subject property. The Council’s action would authorize the City Attorney to make and accept adjustments and/or revisions to the proposed documents as needed, up to and including the date of closing, unless said adjustments and/or revisions materially August 7, 2023 (Regular) Page 11 of 15 alters the intent of the document. Further, the Mayor and City Clerk would be authorized by the City Council to execute all necessary documents to proceed with the closing on the development property. Motion by Councilmember Weaver, seconded by Councilmember Wesp, to adopt a resolution approving a Contract for Deed Purchasing Real Property 2939 6th Avenue. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.10 RES/Reserving a Cannabis Retailers License for the City of Anoka. RESOLUTION Mr. Lee shared a background report stating during the 2023 Legislative Session, the State approved legislation legalizing adult-use cannabis. The new law created a statewide regulatory framework which would create a State-run Office of Cannabis Management to oversee the regulatory and licensing aspects of the new law. The legal retail sales of cannabis are expected to begin by January 1, 2025. There are parameters in the law that require cities to have a minimum number of retail sellers, based on population. Our most current population if 17,847, which sets our minimum at having one (1) retail seller. It is staff recommendation that the City reserve a Cannabis Retailers License for the City of Anoka so that we may have control on the selling of these products, similar to how we only allow off-sale municipal owned liquor stores. The resolution states that it is the City's intention to set our maximum amount of such license at one (1). Councilmember Skogquist said he understood this topic would be included at a worksession to allow for a larger discussion. Councilmember Wesp inquired about what other cities were doing for use of cannabis in public places, adding there is no licensing needs at this point. Mr. Baumgartner explained how the City may be able to reserve a license but there is no guarantee based on the selection criteria so the purpose of the item is to see if the Council wants to consider this possibility and more importantly let other business entities who may be planning to obtain a license that there may not be one available. Mayor Rice agreed it would be good to say the City is interested in a license but said it was premature to limit to one license and that we need to evaluate the number of licenses first. Councilmember Scott spoke about social justice and how maybe the City won’t get a license. Mr. Baumgartner spoke about how some cities were implementing moratoriums, some are limiting the number of licenses, and prohibiting them August 7, 2023 (Regular) Page 12 of 15 within so many feet of parks or other areas. He said the law failed by requiring a certain number of licenses based on population and in a city the size of Anoka areas where a license was not allowed could actually exclude the entire City. Councilmember Wesp asked if this was similar to the municipal liquor Statute and said he would support the Governor calling a special session to further review this law. Mr. Baumgartner said there were specific Statutes for off-sale municipality licenses but not for cannabis licenses. Councilmember Weaver suggested tabling the item for a more in-depth discussion at a worksession. Motion by Councilmember Weaver, seconded by Councilmember Wesp, to table consideration of adoption of a resolution reserving a Cannabis Retailers License for the City of Anoka to further discuss at a future worksession. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.11 ORD/Regulating the Use of Cannabis Products in Public Spaces. (1st Reading) Mr. Lee shared a background report stating with Adult-Use Cannabis going into effect on August 1, 2023, many cities have initiated discussions on if they want to restrict Cannabis use in various public spaces. The City of Anoka has a Tobacco- Free Parks Policy. Council may want to take that into consideration if you would like to restrict Cannabis use in public spaces. Other cities have initiated ordinances to restrict Cannabis use in public spaces. He shared a proposed ordinance that would regulate the use of cannabis products in public which has also been adopted by both Detroit Lakes and Andover. He noted Anoka County has officially adopted a Resolution and Policy prohibiting the use of Cannabis in public areas as well. Councilmember Wesp said smoking is prohibited in parks by policy already and would smoking cannabis be included in this policy. Mr. Baumgartner said because the product was new, he believed it was different, adding the need was also because of the likely reaction from the general public. Councilmember Wesp if we restrict similar to smoking and if we discover there aren’t that many concerns, we can change our minds and open up areas. Mr. Baumgartner agreed, stating Council can always amend the ordinance. Councilmember Weaver noted cannabis is a legal product that people will have to get used to it and was comfortable changing the smoking policy to include vaping and cannabis use as well as he did not want to make a legal product illegal which was already going to be difficult for police to address. August 7, 2023 (Regular) Page 13 of 15 Councilmember Scott asked how would this affect low-potency products or infused seltzers. Mr. Baumgartner said people would likely use those products and not be of concern but were included as a tool for police if use was deemed excessive for some reason. Chief Peterson said staff rarely receives calls regarding smoking tobacco but noted there is also less smoking today than in the past but said an ordinance would be good to address complaints that will likely come based mostly on the odor. Mr. Borglund said ABLA recently met about this topic and shared concerns with the public smoking cannabis out front of their stores and how to address. Mayor Rice said updating signage will help with public opinion and compared this to the MN Clean Indoor Air Act and that the policy could be changed later if needed. Councilmember Weaver agreed, stating we likely need to update the smoking policy and include vaping anyway and if we need an ordinance, we could adopt one later if needed. Councilmember Wesp suggest recording interactions of use over the next month regarding complaints to see how effective the policy is working. Motion by Councilmember Wesp, seconded by Councilmember Scott, to amend the City’s current smoking policy to include the use of cannabis products in public spaces. Mr. Baumgartner spoke about how police could trespass a person if someone is not being cooperative when informed about the cannabis use policy. Chief Peterson said they will incorporate possible trespass language into the policy and signage. Jamie Coyle, 1919 2nd Avenue, asked for clarification for smoking cannabis versus serving products in a bar as she felt it was too strict then asked if this included all type of cannabis products such as topicals, oil, and concentrates. Mr. Baumgartner said the policy was intended for public places only and was drafted to be all encompassing while knowing that smoking products is usually more disruptive than edibles. Mayor Rice said trying to limit use that affects nearby persons will be a good beginning direction. August 7, 2023 (Regular) Page 14 of 15 Councilmember Scott noted Anoka County’s ordinance included an exception for medical use. Motion by Councilmember Weaver, seconded by Councilmember Wesp, to table first reading of an ordinance Amending Chapter 46, Offenses; Establishing Article VIII Use of Cannabis in Public of The Code of The City of Anoka Minnesota and amend the City’s smoking policy and include use of cannabis in public spaces and add trespassing. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, Weaver, and Wesp voted in favor. Motion carried. 10. UNFINISHED BUSINESS None. 11. NEW BUSINESS None. 12. UPDATES AND REPORTS 12.1 Tentative Agenda(s). The Council reviewed the tentative agendas of the upcoming Council meetings. 12.2 Staff and Council Input. Councilmember Weaver asked for an update on the river permit process and potential vendors for this work. Mr. Nelson said the City has the permit from the DNR and the amendment for work on the southern portion from the footbridge to the Mississippi River has been submitted and is being reviewed. He said staff has contacted the contractor recommended from the Anoka Conservation District and will be meeting soon to review the work outlined in the feasibility report. Councilmember Weaver shared concerns about waiting for the study that could result in having the same concerns next year. He said the river is backed up by the Mississippi making it more difficult to address because of the water levels and if delayed will not be able to be addressed this. He stressed the importance of addressing this work quickly in order to restore the vibrancy of the river and the public coming to downtown Anoka. Mr. Nelson spoke about the need to obtain soil samples before work can be done. Mr. Lee said the work will be completed as soon as possible. August 7, 2023 (Regular) Page 15 of 15 Mayor Rice said the current concern was the sand bar south of the walk bridge that needs to be addressed. ADJOURNMENT Councilmember Wesp made a motion to adjourn the Regular Council meeting. Councilmember Scott seconded the motion. Vote taken. All ayes. Motion carried. Time of adjournment: 9:30 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk