Anoka City Council

September 18, 2023 (Regular) Page 1 of 12 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS SEPTEMBER 18, 2023 1. CALL TO ORDER Mayor Rice called the regular meeting of the City Council to order at 7:02 p.m., followed by the Pledge of Allegiance. 2. ROLL CALL Present at roll call: Mayor Rice, Councilmembers Scott, Skogquist (participating remotely as allowed per Statute), and Wesp. City Manager Greg Lee; Community Development Director Doug Borglund; Assistant City Engineer Ben Nelson; City Attorney Scott Baumgartner; Finance Director Brenda Springer; HRA Executive Director Darin Berger; Communications Manager Pam Bowman; Police Captain Schneider; Public Works Director Mark Anderson; Public Services Administrator Lisa LaCasse; Utility Director Del Vancura. Absent at roll call: Councilmember Weaver. 3. COUNCIL MINUTES 3.1 August 21, 2023 Budget Worksession. August 28, 2023 Closed Executive Session. September 5, 2023 Regular Meeting. Councilmember Skogquist noted a correction needed on page 4 of the August 21, 2023 budget worksession minutes to remove reference of purchase of three dump trucks. Motion by Councilmember Scott, seconded by Councilmember Skogquist, to approve the minutes of the August 21, 2023 Budget Worksession, August 28, 2023 Closed Executive Session, September 5, 2023 Regular Meeting, as corrected. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, and Wesp voted in favor. Motion carried. 4. OPEN FORUM 4.1 Police Activity Update. September 18, 2023 (Regular) Page 2 of 12 Police Captain Schneider shared an update regarding the newly-established social district, stating while some customers were seen not using the designated cups and at times bringing their own coolers the concerns were handled well once people understood the requirements. He shared an update on the school resource officers (SROs) in schools and while there have been some incidents nothing to date has been serious then shared a staffing update with the hire of a new patrol officer. He stated October was Domestic Violence Awareness Month and shared about the upcoming Hope Fest event through Alexandra House to signify the month and raise awareness. 4.2 Highway 10 Anoka Construction Update. Assistant City Engineer Ben Nelson shared an update regarding Highway 10 construction. OTHER INFORMATION UNDER OPEN FORUM Mike Steel, 2733 Rivers Bluff Lane, spoke about the current SRO issue and thanked Chief Peterson for his work in resolving the concern that will allow SROs to return to schools. He spoke about the trust built and developed through SROs as well as crimes solved and the debate in the law and need for clarity to protect the officers. He shared his hope that the legislature convenes soon to address the concerns and appreciated Chief Peterson’s stance until then. 5. PUBLIC HEARING(S) None. 6. CONSENT AGENDA Motion by Councilmember Wesp, seconded by Councilmember Scott, to approve Consent Agenda Items 6.1 through 6.8 as presented. Councilmembers Scott and Skogquist disclosed a potential conflict of interest regarding their participation in consideration of the Lincoln Elementary School for Arts item as their spouses both served as members of their PTO. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. 6.3 Issuance of a Tree Care/Arborist License; Warner’s Outdoor Solutions, Inc. 6.4 Waiving Facility Charges for Designated Organizations; Lincoln Elementary School for the Arts PTO. September 18, 2023 (Regular) Page 3 of 12 6.5 U.S. Highway 10/169 Improvement Project; Approve Change Orders Number 65. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, and Wesp voted in favor. 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 ORD/Purchase Agreement for the City’s Sale of Property to Anoka Ramsey Athletic Association (ARAA). (1st Reading) Community Development Director Doug Borglund shared a background report stating the City has been in discussion with Anoka Ramsey Athletic Association (ARAA) regarding property known as the Gray Ghost Field site. The subject property is currently comprised of two different parcels, which also contain the City’s pump house and wind turbine. There will need to be a lot combination and lot splits to sever the property being sold to ARAA from other pieces of the property containing the City’s pump house and the wind turbine. The buyer, ARAA, is planning on constructing an athletic domed structure on the site. The City and ARAA have negotiated an offer of $1.00 for the property, along with use privileges that would benefit the citizens of Anoka. The proposed schedule is as follows: September 18, 2023: First Reading of an ordinance to sell property. October 2, 2023: Second Reading of an ordinance to sell property. Real estate closing: TBD per the purchase agreement. The Parks & Recreation Board will be provided the video link to the worksession discussion on September 11 and will be informed of this of this item on the Council agenda for September 18. Staff will present this item to the Parks & Recreation Board to review and discuss the purchase agreement at their regular meeting on September 19 so they may provide comments and input to the Council for consideration at the second reading. Councilmember Skogquist confirmed the potential buyback amount would be $1.00 if that occurred then spoke about the public benefit as a result of this transaction for all residents. He said he was excited for this amazing opportunity for students and use for surface parking for additional use. September 18, 2023 (Regular) Page 4 of 12 Councilmember Wesp asked about the responsibility for movement of the power line. City Attorney Scott Baumgartner shared he was retained by ARAA to assist with this process but stated for full transparency as City Attorney if there was a concern, he would withdraw from ARAA representation if needed. He spoke about the work on Gray Ghost Field and lot combinations needed to create one entire parcel based on needs to create three lots then spoke about the best interest to bury these lines. Councilmember Wesp shared more about the power lines and the south side of Bunker Lake Boulevard, noting the highlines would not be buried but the others should be and suggested burying them all the way north to the trail and south to the wind turbine to reduce risks with wind and ice. Mr. Baumgartner confirmed standard language in purchase agreements that if the project was not started or completed within a specific timeframe the City can purchase the property back for the same price as sold, which in this instance was $1.00. Councilmember Wesp referred to the ice arena property purchase and if we knew who that was purchased from. Mr. Baumgartner said he was not sure but assumed a similar process was used and will work to find documentation of that process. City Manager Greg Lee said the ice area property was purchased from the Sonsteby family in March 2015. Councilmember Skogquist referred to the 300 acres purchased from the State and went to the property line on the south line of Castle Field Road and how over time properties were carved out. Motion by Councilmember Wesp, seconded by Councilmember Scott, to hold first reading of an ordinance to convey real property to Anoka Ramsey Athletic Association and to direct staff to finalize documentation and responsibility of burying of utility lines prior to second reading. Mayor Rice commented on this exciting opportunity and what ARAA will provide for the community. Mr. Baumgartner shared the ARAA Board approved this item on their agenda last evening. Josh Jungling, ARAA, shared how they first reviewed many locations and how they were excited to get this project going and create a great partnership with the City. Councilmember Scott thanked ARAA for their work then asked about the activities that will occur at this site and project schedule. Mr. Jungling said once September 18, 2023 (Regular) Page 5 of 12 approved they intent to start work as soon as possible then outlined the facility will house 10 different sports then commented on the difficulties to balance their activities with school activities and how this dome structure will help address that. Mr. Baumgartner shared ARAA has financing in place that may include utilization of conduit bonds and that they will soon begin work with their architect to start the project. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, and Wesp voted in favor. Motion carried. 9.2 RES/Resolution of Support for the 2024 Capital Budget General Obligation Bonding Request for the Anoka Rum River Dam Reconstruction and Modification Project. RESOLUTION Public Services Administrator Lisa LaCasse shared a background report stating the Anoka Rum River Dam is a major asset to the City of Anoka and the north metropolitan region with the recreational pool extending over six miles upstream, thus benefiting multiple communities within Anoka County. Recreational opportunities will be further enhanced through the proposed dam modifications as it will re-establish the connection from the upper pool of the Rum River to the Mississippi River. The Anoka Rum River Dam Reconstruction and Modification Project includes installation of automated crest gates, maintenance platform, hydropower, lock system, and other recreational activities to include river surfing below the dam. The proposed modification includes the following goals and objectives: safety and operations, energy, ecology, recreation, and water level management, and others. The City of Anoka is requesting $11.95 financial support for construction costs related to the modification and reconstruction of the Rum River Dam from the 2024 Capital Budget General Obligation Bonding. Costs included in the 2024 funding request are Pre-design, Engineering, Design, Permitting, Construction, Utility Infrastructure and Relocation, and Public Engagement for the proposed improvements. She stated the Feasibility Report will examine the cost and benefit for each element of the improvements. The final report will include the engineer’s estimate for the overall project. Grants may be available to partially fund some of the proposed improvements. Some grants that are available by the Federal Government (FEMA, National Dam Rehabilitation Program), the Minnesota Department of Natural Resources (dam safety grants, Lessard Sams), State of MN (Met Council Regional Solicitation), U.S. Department of Energy (renewable energy funds), and other applicable grant opportunities then thanked everyone for their work on this exciting project. Councilmember Wesp highlighted the need for this project due to the dangers of maintenance of the flashboards and shared how the dam was replaced in the 1960s and was antiquated compared to today’s technologies and methods and September 18, 2023 (Regular) Page 6 of 12 highlighted the partnership with the City of Champlin and their success with concerts and events as well. Motion by Councilmember Wesp, seconded by Councilmember Scott, to adopt a resolution of support for the 2024 Capital Budget General Obligation Bonding request for the Anoka Rum River Dam Reconstruction and Modification project. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, and Wesp voted in favor. Motion carried. 9.3 ORD/Amending Chapter 1, Administration, Article VI. Boards and Commission, Division 6, Waste Reduction and Recycling Board; Increasing Membership. (1st Reading) Communications and Recycling Manager Pam Bowman shared a background report stating first reading was being proposed to increase the membership of the Waste Reduction & Recycling Board (WRRB) from 7 members to 9 members as proposed by the Anoka City Council at the September 5, 2023 City Council meeting. She shared that on February 19, 2019 and March 4, 2019 this same ordinance was brought forward by staff for various amendments, including increasing its membership from 5 to 7 members, due to the increasing number of events and programs required by Anoka per the recycling agreement and SCORE grant. The City Council approved the amendment to increase the membership on March 4, 2019, which proved to be beneficial. At their September 13, 2023 meeting, the WRRB members discussed the City Council’s proposal to increase the membership again by two and made a motion to recommend denial of the proposed membership change from 7 to 9 seats and to make the appointment of Veronica Jones to the current vacancy through the December 31, 2024 term. In discussing the membership number, it was agreed that 7 members was working well and they felt a 9-member board was not necessary, as productivity in the recycling programs and volunteerism of the current members at recycling events and activities were meeting the needs. The WRRB is recommending the City Council appointment Ms. Jones to the current vacant seat for many reasons and recommended the Council not adopt the ordinance as proposed. Councilmember Scott asked for further clarification as to why the WRRB wanted the membership structure to remain. Ms. Bowman stated the Board felt that 7 members was a better fit and if changed to 9 a vacancy would still need to be filled then commented on the potential of expansion for other boards and commissions and where would this potential expansion would eventually stop. Mayor Rice appreciated the Board’s input, especially if this this occurred in other boards. September 18, 2023 (Regular) Page 7 of 12 Councilmember Skogquist stated the suggestion was made because the WRRB is a very active board with many activities but supported their recommendation not to expand membership at this time. Motion by Councilmember Skogquist, seconded by Councilmember Scott, to deny first reading of an ordinance Amending Anoka City Code Chapter 1. Administration, Article Vi. Boards and Commissions, Division 6, Waste Reduction and Recycling Board, Section 2-247 Composition, Qualifications, Appointments, Terms, Oath of Office, Attendance, Resignations and Vacancies and appoint Veronica Jones to a term to end December 31, 2024. Councilmember Wesp said while he felt this was a bold recommendation that it was appropriate and thanked the WRRB for their input. Mr. Baumgartner noted the appointment was not on the published agenda and recommended the motion be to deny the ordinance to not increase membership and have staff bring the appointment to the next meeting. Councilmember Skogquist amended his motion to not include the proposed appointment. Councilmember Scott agreed to the friendly amendment. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, and Wesp voted in favor. Motion carried. 9.4 RES/Adopting 2024 Proposed Budget and Preliminary Tax Levy. RESOLUTION Finance Director Brenda Springer stated the 2024 budget process began in August and was based on Council directives and the 2023 goal session. The Council has reviewed the 2024 budget, as proposed by the City Manager, at several meetings in August. The proposed 2024 budget for all funds, excluding the HRA component unit, is $69,277,682. The preliminary General Fund expense budget is $15,514,804 which is a 0.69% (108,422) decrease from the 2023 expense budget. The 2024 proposed levy is set at $10,278,233. This is down ($541,890) from the original staff proposed levy on August 7, 2023. We arrived at lower levy with the following Council changes to the proposed budget: 1) Anoka Ag Improvements (No formal plans) ($250,000 2) ARPA Funds to pay for Sweeper & AC Filters ($140,000) 3) Reduction for Sidewalk Extensions ($15,000) 4) Move Police UTV to Garage Fund ($40,000) 5) 7th Ave Entrance Monument pushed out ($5,000) 6) Paint Aquatic Center pushed out ($25,000) 7) East Main Entrance Monument pushed out ($5,000) 8) Remove 1 FTE Streets/Parks & Delayed hiring 1 FTE (71,890) TOTAL ($541,890) or 5.3% The proposed General Fund and Debt levy is an increase of $1,832,718 or 21.7% above the 2023 levy. Residential property taxpayers will see an increase in city property taxes of approximately $131/year for the average home in Anoka. The levy increase, along with changes in fiscal September 18, 2023 (Regular) Page 8 of 12 disparity contributions and distributions, changes in tax increment and market value all affect the tax rate and the amount of property tax levy distributed to individual properties. With the increase in the levy, the Council is able to cover all general fund operating, debt service payments and some capital expenditures. She said this was a preliminary levy and cannot be increased and that staff will continue to work on the budget to propose additional cuts. She noted the final levy will be set at the December 18 council meeting. Mayor Rice confirmed the average homeowners’ property taxes would increase by $131 and was not a 21% increase of property tax levy by the City of Anoka, adding there is much commercial tax who will bear the remainder increases. Ms. Springer said there has been significant increase with other properties which directly affects all property owners and the likely increase will be 10%. Councilmember Wesp asked about the largest increases since last year. Ms. Springer outlined the largest increases which included capital projects from the CARE dollars and the expense budget from last year lower than 2023 budget because of work to make up for revenue from 2023 to 2024. Motion by Councilmember Skogquist, seconded by Councilmember Scott, to adopt a resolution relating to adoption of a preliminary 2024 budget and certifying a proposed property tax levy collectible in 2024, and setting public hearing dates. Councilmember Wesp said while he does not support large increases in tax levies, he understands we have to do so as we have delayed some projects. He noted the amount will not go higher than proposed and strongly encouraged staff to continue work to reduce the levy prior to December adoption. He added inflation has a lot to do with this increase as well as spending then shared about the necessary work completed on streets through the emergency road repair plan for poor road conditions such as on Harrison which were not taxed to the residents. He said the City has done great work keeping the budget at a good levy and as low as possible. Mayor Rice agreed, stating the City has worked in the past to use the reserves as allowed while still maintaining a good balance as this was efficient and reasonable and resulted in keeping the levy low over many years but that this practice cannot continue indefinitely. Councilmember Scott commented how the proposed levy was in the middle compared to other cities in Anoka County. Councilmember Wesp spoke about how investments made in the community have helped lower the levy such as HOM Furniture and others, adding these large companies also pay more in electric and other utilities. He commented on purchasing Thermaserve on Grant and 4th which will create interest in this property as well. September 18, 2023 (Regular) Page 9 of 12 Ms. Springer spoke about the work to demolish and rebuild the police training center and the resulting debt levy which also contributed to a larger levy increase this year. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, and Wesp voted in favor. Motion carried. 9.5 RES/Consenting to the HRA Adopting a Tax Levy Collectible in 2024. RESOLUTION HRA Executive Director Darin Berger stated the HRA has adopted the proposed levy to be $437,798. He said this was approximately the maximum levy allowable and was a 26.6% increase from 2023 and directly tied to the tax capacity going up 20%. The HRA levy will be used to accomplish the goals of the authority and in furtherance of its housing and redevelopment plans. Mr. Berger said the maximum levy allowed for the Housing and Redevelopment Authority is 0.0185 percent of taxable market value, or approximately $437,798, then shared more about the HRA’s current projects in detail, including the Curb Appeal Residential Enhancement Program. Motion by Councilmember Skogquist, seconded by Councilmember Scott, to adopt a resolution consenting to the Housing & Redevelopment Authority in and for the City of Anoka Adopting a 2023 Tax Levy Collectible in 2024. Mayor Rice asked if the CARE program included window replacement. Mr. Berger responded window replacement qualified for 15% grant as an optional project while exterior projects qualified for 20% grants. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, and Wesp voted in favor. Motion carried. 9.6 RES/Cancellation of GO Street Improvement 2024 Bond Levy. RESOLUTION Ms. Springer stated according to Minnesota State Statute 475.61, the City is required to adopt a resolution canceling the bond levy, which is originally certified with Anoka County, if it is not intending to levy for the certified bond levy amount. She shared the resolution canceling the bond levy because the amount needed to pay the City’s debt is included in the general fund operating levy as a transfer out. Motion by Councilmember Scott, seconded by Councilmember Wesp, to adopt a resolution authorizing cancellation of a General Obligation Street Bond Improvement 2024 bond levy. September 18, 2023 (Regular) Page 10 of 12 Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, and Wesp voted in favor. Motion carried. 9.7 ORD/Amending Chapter 30, Article II, Section 30-24 Public Nuisance Relating to Voice and Sound Amplification in Public Spaces. (1st Reading) Mr. Baumgartner shared a background report stating in response to complaints associated with the use of amplification devices on public streets and sidewalks, specifically during City sponsored events, City Council directed staff to amend the City’s current noise ordinance to address these types of situations. He shared the amended portion of Chapter 30, Article II, Section 30-24 wherein additional language has been added to address these concerns, then noted while reviewing this portion of the code, staff noticed additional areas of Section 30-24 that should be amended, which is also being proposed. Councilmember Skogquist asked more about amplified noise and the hours of restriction between 10PM-7AM which were not included in amplified noise such as events at a church or the American Legion and how to address. Mr. Baumgartner responded additional language that included events unless otherwise permitted by law to help address those events, which in this case would include those permitted through a special event permit. He said while there could be other amendments to this ordinance staff wanted to bring this version forward soon as October was always busy in Anoka and wanted a mechanism in place to address potential noise concerns. Mayor Rice spoke about parade floats with amplified music and would they be included as well as the need to differentiate between different events and make a distinction. He commented about noise from motorcycles and car music which should be enforceable and how this ordinance provided the City with a good start to address. Councilmember Wesp said the City enacted a noise ordinance in the 1990s to address loud music and asked if these amendments were separate. Mr. Baumgartner said this ordinance was separate then outlined examples such as horn blaring which creates a noise that the City defines as a public nuisance and ways to address that on public streets. Councilmember Wesp asked if this ordinance would create any concerns with potential issuance of tickets and First Amendment suppression. Mr. Baumgartner said while cities cannot restrict content of speech, we can restrict time, place, and manner, such as volume. Motion by Councilmember Wesp, seconded by Councilmember Skogquist, to hold first reading of an ordinance Amending Chapter 30 Environment; Article II, September 18, 2023 (Regular) Page 11 of 12 Section 30-24 Public Nuisance Relating to Voice and Sound Amplification in Public Spaces of The Code of The City of Anoka Minnesota. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, and Wesp voted in favor. Motion carried. 10. UNFINISHED BUSINESS None. 11. NEW BUSINESS 11.1 New Special Event Permit Application; St. Stephen’s Pumpkin Fest, October 21, 2023. Ms. Bowman stated St. Stephen’s was planning their third annual Pumpkin Fest for Saturday, October 21, 2023, in the school parking lot and a portion of Jackson Street. This is the first year they are requesting a road closure of Jackson Street between 5th & 6th Avenues for the Trunk and Treat activity. This is a community event proposed from 5-9 p.m. The Anoka Light Up the Night Parade coincides with this event. Both Public Safety and Public Services have indicated this street closure does not pose any concerns with the parade route and have approved the street closure. Approximately 100 people are expected to attend. Admission is free and they will have the Trunk and Treat, kids’ games, a fire pit for s’mores, décor, pumpkins and a haunted alley in the parking lot. They will be selling raffle tickets, beer and food (grilling). They have obtained their liquor and gambling licenses and if the area is closed off fees would be charged and the area defined by barricade. Councilmember Wesp spoke about the uniqueness of Anoka and how these events provide positivity for the community. Motion by Councilmember Wesp, seconded by Councilmember Scott, to approve the Special Event Permit application to include closure of Jackson Street between 5th & 6th Avenues. Councilmember Scott agreed how these events add to the ambience of Anoka Halloween. Vote taken. All ayes. Motion carried. 12. UPDATES AND REPORTS 12.1 Tentative Agenda(s). The Council reviewed the tentative agendas of the upcoming Council meetings. September 18, 2023 (Regular) Page 12 of 12 12.2 Staff and Council Input. None. ADJOURNMENT Councilmember Scott made a motion to adjourn the Regular Council meeting. Councilmember Wesp seconded the motion. Vote taken. All ayes. Motion carried. Time of adjournment: 8:40 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk