Anoka City Council

December 18, 2023 (Regular) Page 1 of 20 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS DECEMBER 18, 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 Skogquist, Weaver, and Wesp. Also present: City Manager Greg Lee; Community Development Director Doug Borglund; Police Chief Eric Peterson; Public Services Administrator Lisa LaCasse; Finance Director Brenda Springer; Assistant Finance Director Liz Douglas; Assistant City Engineer Ben Nelson; City Attorney Scott Baumgartner; Public Works Director Mark Anderson; Utility Director Del Vancura. Absent at roll call: Councilmember Scott. 3. COUNCIL MINUTES 3.1 November 27, 2023 Worksession. November 27, 2023 Closed Executive Session. December 4, 2023, Regular Meeting. Councilmember Weaver noted his absence at the December 4 meeting. Motion by Councilmember Skogquist, seconded by Councilmember Wesp, to approve the minutes of the November 27, 2023 Worksession, November 27, 2023 Closed Executive Session, and December 4, 2023, Regular Meeting as presented. Vote taken. All ayes. Motion carried. 4. OPEN FORUM 4.1 Chris Riley, Anoka Car Show Recap. Chris Riley, Anoka Car Show, presented a recap of the 2023 car show. He said it was another successful year with 12 shows, 3,743 cars with an average of 312 cars per show, and included many of the same sponsors. He spoke about the addition of more food vendors and dash plaques for awards and their work to keep the show successful. He noted they needed assistance from City this year to address an issue and the outcome of the jail could greatly impact the show and December 18, 2023 (Regular) Page 2 of 20 that he hoped to be included in any decisions. He presented the City with a check in the amount of $2,425 and thanked Boy Scout Troop #233 for their work in set up, take down, and gate, which profits the troop and keeps the proceeds in Anoka. Councilmember Skogquist thanked Mr. Riley and all volunteers for a great show and event, adding it is a pretty seamless process and has such a draw. Councilmember Weaver suggested having the jail discussion item moved earlier in the agenda to allow staff to work with Mr. Riley and his team regarding alternatives. 4.2 Police Activity Update. Police Chief Eric Peterson shared about three recent events that were handled well by Anoka officers, including a traffic stop involving concealed weapons, pursuit of racing cars, and K-9 Cane assisting Coon Rapids officers during an incident requiring less than lethal force. He wished everyone a safe and happy holiday season and thanked the Council for their support that allowed them to do their jobs and make Anoka a safe place. Councilmember Skogquist thanked for the speed enforcement efforts on 5th Avenue. 4.3 Highway 10 Anoka Construction Update. Assistant City Engineer Ben Nelson shared an update regarding Highway 10 construction. Councilmember Skogquist described it as an amazing project and asked if the large mound of dirt by Wright Tire is a punch list or for redevelopment. Mr. Nelson cleaned up in the spring and marketed, just temporary. City Manager Greg Lee said the City will soon be the recipient of several awards in recognition of this project as it was unique and successful and set the stage for future projects with MnDOT. Mr. Nelson shared the City would be receiving the 2023 Work Zone Safety Award and Public Works Association Transportation Project of the Year among others. Mayor Rice said safety was no small feat as there were a lot of intersections with this project. He thanked staff for managing such an incredibly large project, especially for a city the size of Anoka. OTHER INFORMATION UNDER OPEN FORUM Bjorn Skogquist, 408 Van Buren Street, thanked the City for sending Mr. Lee to the recent public safety meeting at Anoka County as it was important to stay December 18, 2023 (Regular) Page 3 of 20 informed, especially as they worked to adopt plans and specifications and solidify their plan which countered the City’s direction for an alternative. He asked for follow up if the City was officially notified of this project as he didn’t believe it was done then said he was encouraged to attend the County Board meeting tomorrow and request that the item be tabled to allow more time for review. 5. PUBLIC HEARING(S) None. 6. CONSENT AGENDA Motion by Councilmember Wesp, seconded by Councilmember Skogquist, to approve Consent Agenda Items 6.1 through 6.11 as presented. Councilmember Weaver confirmed that approval for Item 6.11 for the cannabinoid license would allow the applicant to sell edibles only and was a dispensary then asked about the location’s potential for being a dispensary. He then acknowledged Dr. Ed Evans for his work on the Electric Utility Advisory Board and said it was unfortunate that he had to resign in order to work part-time for the Parks Department as required by City Charter. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. 6.3 Issuance of a Massage Business License for Midwest Massage LLC, 229 Jackson Street. 6.4 Issuance of a Massage Therapist License for Allison Elliott of Midwest Massage LLC, 229 Jackson Street. 6.5 Issuance of a Tobacco License for MAV Jam LLC, dba; Anoka Smoke Zone, 500 W. Main Street, #7A. 6.6 Resignation from Utility Advisory Board; Ed Evans. 6.7 Highway 10 Rum River Bridge and Corridor Project; Approve Change Order Number 67. 6.8 Recommended Approval of 2024 LG240 Bingo Permits; Anoka Today Alano. 6.9 Approval of Labor Contract; Public Services (Sewer and Water Division). 6.10 U.S. Highway 10/169 Improvement Project; Approve Change Order Number 72. December 18, 2023 (Regular) Page 4 of 20 6.11 Issuance of a Cannabinoid License for MAV Jam LLC, dba; Anoka Smoke Zone, 500 W. Main Street, #7A. Vote taken. All ayes. Motion carried. NOTE: By motion from Councilmember Weaver, which was seconded by Councilmember Wesp, and by a unanimous vote of the Council, agenda item 11.2 was moved up on the agenda and acted upon at this point. Councilmember Skogquist noted the presence of his brother Bjorn Skogquist in the audience. 11.2 Anoka County Jail Expansion Project. Mr. Lee shared a background report stating Anoka County was considering expanding the jail facility in downtown Anoka. Staff recommends the City Council discuss this prior to the Anoka County Board of Commissioners meeting on December 19 where they will be considering adopting a proposed resolution regarding the project. He said the Safety Committee was present and that all seven Commissioners were at last week’s meeting and wanted to submit plans and do their due diligence. He said the caveat in the resolution allows the City to submit an alternative plan but the only location would be the Rum River campus for a full justice center that would include all jail and County offices. He said the deadline for this plan submittal was March 29 and said the resolution for their plan was on tomorrow’s agenda for the full Board to consider. Councilmember Weaver noted their resolution requires the City to cover the costs for an alternative plan and believed that action was unfathomable. He said Department of Corrections Director Paul Schnell had shared there was no real imminent issues with the jail outside of having a couple jail cells onsite to meet the requirement for being located in the County seat then said how the jail was in imminent in a letter regarding a sunset clause and other inaccuracies. He said the City attended all these meetings and was not sure what has been told, adding the County Attorney and Sherriff took office after many of these decisions had already been made prior to their terms. City Attorney Scott Baumgartner agreed the process is too far and can’t be undone but that the County Attorney and Sheriff are willing to work with the City going forward and try to recover as best they can at this point. He suggested amendments for tomorrow’s resolution and said the City did not receive notice of the Public Safety Committee meeting but did of the resolution to move forward and felt it was similar to Anoka consider the dual track process with the haulers and that while the County needs to move forward they will consider other locations and suggested inserting flexibility in the resolution relative to location to avoid amendments. Councilmember Skogquist said many items in this seem almost insurmountable and felt the County was not working in good faith. December 18, 2023 (Regular) Page 5 of 20 Mr. Lee said the committee was told we are looking at options for the County to consider north of the AMRTC and was concerned they will insist the site has to be in the Rum River campus but there would be concerns with this site including concerns with removing historic buildings and recommended developing a task force. He said based on the resolution the County will submit a concept plan to the City but noted the downtown jail is nonconforming and cannot allow for an expansion and suggested adopting a City resolution clearly stating the City’s position and to be proactive. Mr. Baumgartner said to task the City with designing a facility is not feasible because we can’t design something for another agency. He said if they are looking for the City to pay for the design that’s one thing but we need to clarify what they want us to provide by the March deadline and suggested Council meet with the County to that end. Mayor Rice said he was jaded about a justice center because it increased the project scope so large it would be impractical and that he didn’t’ feel the County was being genuine but manipulative. He said with the required footprint at the former State Hospital why would they tear down historic buildings, adding it was important for the City to clearly identify our position. He said Anoka was opposed to a jail on 4th Avenue and opposed to an expansion near the downtown area and that we need to send a strong position letter since it was absurd to suggest this proposal. Mayor Rice said Anoka has rights as a City through zoning and other items that would have to change and we do not intend to change them, adding there are viable alternative locations and that we need to say no. Councilmember Wesp said it makes no sense for the City to design a facility, adding we have provided numerous alternatives already, so we need to share our position then stand by our zoning ordinance. Councilmember Skogquist said it was important to stand firm while working proactively, adding he was excited to bring something forward for them to consider then noted both groups have never met together and thought that would be important. Councilmember Weaver said we need to be prepared to react legally if needed because if the resolution is adopted tomorrow the County could submit plans this week. Councilmember Wesp agreed, adding the County doesn’t want to meet with us and suggested providing staff direction to identify similar cases to be prepared. Mayor Rice said approval of this plan could be built almost anywhere else. Mr. Lee said if a full justice center was likely we are required to include expansion plans and they can upgrade the current facility but just can’t expand. He said there was precedent setting in Chisago and it was in our best interests to show we are reasonable and provide options, including changing zoning in parts of the City. Councilmember Skogquist said he was opposed to the resolution as presented and suggested we appoint a City task force for alternatives and provide the City Manager December 18, 2023 (Regular) Page 6 of 20 direction to come forward with legal strategy and options as well as arrange for a meeting with the full County Board. Mr. Skogquist said policy makers on both sides are making conclusions and feel like their staff is reluctant to provide time for policy makers to meet. He said he believed there were some allies in Commissioner Meisner and that it was important to set staff aside to talk about a greater plan. He noted Attorney Johnson did not speak much about the 50- year plan and felt that should happen right after the jail is built but should be done now instead. Mr. Lee shared Commissioner Schnell had spoken with Senator Abeler who said the jail could be anywhere in Anoka and said no sunset letter was coming and that we should not overbuild a jail for future expansion. He shared concerns in the resolution that spoke to additional capacity to assist with housing of federal inmates as the need arises. Motion by Councilmember Skogquist, seconded by Councilmember Weaver, stating the City of Anoka was opposed to the proposed Anoka County Board of Commissioners resolution as presented, that the City requests a meeting with the full Anoka County Board of Commissioners, to appoint a City task force to work on alternatives, and provide staff direction to research legal strategy and options. Vote taken. All ayes. Motion carried. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 7.1 None. 8. PETITIONS, REQUESTS AND COMMUNICATION None. 9. ORDINANCES AND RESOLUTIONS 9.0 RES/Approving Purchase Agreement for 521 Johnson Street. RESOLUTION Community Development Director Doug Borglund shared a background report stating at the August 28, 2023 City Council Closed Executive Session Meeting the City Council directed staff to move forward and pursue acquisition of the subject property at the price of $344,600.00. The property owner is a willing selling. The subject property is a vacant/unoccupied commercial building. The seller has and the City has agreed on a price of $344,600.00, which is the current assessed value contingent upon final approval of the purchase agreement by the City Council. He shared the schedule with anticipated closing date of January 24, 2024. December 18, 2023 (Regular) Page 7 of 20 Motion by Councilmember Skogquist, seconded by Mayor Rice, to adopt a resolution approving purchase of real property 521 Johnson Street. Councilmember Weaver shared concerns about another property purchase with the purchase of the Miller building. He said buildings were assets and something we should be investing in otherwise they should be demolished then confirmed there was liability insurance in place. He said it is not fiscally responsible to hold an asset and not preserve it and that after meeting with Hoisington Koegler he believed no one was going to be interested in just a cinder block building and won’t support the motion. Mayor Rice said the Council was united in their desire to see development in this area but differed on how to prepare for and said he didn’t think there would be a builder who would invest in the area, adding it is not complicated to demolish the building if needed as we are committed to redevelopment. Councilmember Skogquist explained the initial amount of money borrowed covers holding the building for three years but noted sometimes development doesn’t happen for 5-10 years so we need to keep the building as it could provide options for future Councils instead of an empty site. Councilmember Weaver said we received a great bid to demolish but the window is closing and likely missed a great opportunity, adding we shouldn’t let a vacant building remain in the middle of a new development. Mayor Rice said he felt demolish it was too big of a risk and that it shouldn’t be demolished at this time. Upon a roll call vote: Mayor Rice, Councilmembers Skogquist voted in favor. Councilmember Wesp and Weaver voted nay. Motion failed. 9.1 ORD/Adopting 2024 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, schedule, and time. He outlined the proposed fees in detail, including building permit fees which have not been increased for many years, electric department rates, parking fees and fines, special events, park shelters, aquatic center lessons, and assessment rates, as well as some other minor amendments. December 18, 2023 (Regular) Page 8 of 20 Councilmember Weaver spoke about the former 2AM closing licenses and suggested the creation of different closing time licenses to give staff the ability to address concerns at liquor establishments such as underage serving, overserving, or not meeting the 25% threshold of food/alcohol ratio that could be revoked. Chief Peterson believed having a mechanism in place to address concerns but not fully revoke a liquor license could be a good possibility to address concerns and keep the downtown area safer. Motion by Councilmember Weaver, seconded by Councilmember Skogquist, to hold second reading and adopt an ordinance adopting the 2024 Master Fee Schedule with the knowledge it may change. Mayor Rice said he would be interested if other cities offer a 10PM license for example to allow a better discussion at the March worksession. Mr. Lee noted this item could be moved to the April worksession and would include consideration of different categories of licenses to address food/alcohol ratio and fees adjustments as license fees have not been changed for 20 years. Upon a roll call vote: Mayor Rice, Councilmembers Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.2 RES/Adopting the Budget for the Year 2024. RESOLUTION Finance Director Brenda Springer shared a background report stating the 2024 budget process began in June and is 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 City Council held a public hearing on December 4, 2023 to hear from the public regarding the proposed 2024 budget and levy. The total budget for all funds excluding the HRA component unit is $87,974,920, which is a decrease of 6.61% from 2023. The decrease is attributed to a reduction in capital project spending mainly Highway 10. The 2024 levy is to be set at $10,147,307 this is a 20.15% increase as compared to 2023. The average taxpayer will see an increase from 6 – 35% 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 $15,727,006 which is a $253,780 increase from the 2023 budget. Councilmember Wesp clarified the increase in the budget was the correlation to the levy. Ms. Springer explained the budget is based on expenditures, not revenues, so the general fund budget was only going up $253,000 or 6% from 2023. She said the levy is the difference between revenues and expenditures and noted the large loss in revenues this year from one-time ARPA funds and use of December 18, 2023 (Regular) Page 9 of 20 $580,000 of reserves which is not included in the 2024 budget totaling $2 million from 2023 that is not available now in 2024. Councilmember Wesp confirmed a home valued at $306,000 would have a property tax increase of $170 per year based on the preliminary levy. Ms. Springer said that was correct then noted the final levy was reduced $130,000 from the preliminary levy and was now 18.3%. Mayor Rice said there was much discussion about one-time funding but asked why the budget still increased. Ms. Springer said the budget increased due to two new full-time employees as well as other expenditures besides capital. Councilmember Weaver said the average property tax increase for a single-family home and levy is set at 21.15% and results in property owners seeing 6-35% increase from City property taxes. He said the increase has never been this high and because Anoka is almost fully developed, we need to have conversations about how to maintain services going forward because 35% increases are not sustainable. He said we need to generate more revenues from Green Haven and enterprise funds such as the electric utility and cautioned about adding more employees. He noted labor costs are increasing more than the electric rates charged and while he will support this budget, we need to address concerns going forward. Ms. Springer noted the 35% increase is not just because of the levy but a combination of increases in property value and land. Councilmember Wesp noted approximately 50% of costs is staff and asked which two positions are being proposed. Ms. Springer said one position is a streets/parks position and other is building maintenance and part-time streets/parks which won’t be hired until July. Mr. Lee stated since we’ve added a lot more infrastructure the last 10 years, we need the staff to maintain that infrastructure as well as focus on building maintenance such as the chambers while assisting in public services as well. He added residents are expecting more from City services than before and that staff was trying to meet that expectation. Motion by Councilmember Skogquist, seconded by Councilmember Weaver, to adopt a resolution adopting the budget for the year 2024 as presented. Upon a roll call vote: Mayor Rice, Councilmembers Skogquist, and Weaver voted in favor. Councilmember Wesp voted nay. Motion carried. 9.3 RES/Adopting a Levy for the Year 2023, Collectible in 2024. RESOLUTION December 18, 2023 (Regular) Page 10 of 20 Ms. Springer shared a background report stating the total budget for all funds excluding the HRA component unit is $87,974,920, which is a decrease of 6.61% from 2023. The decrease is attributed to a reduction in capital project spending mainly Highway 10. The 2024 levy is to be set at $10,147,307 this is a 20.15% increase as compared to 2023. The average taxpayer will see an increase from 6 – 35% 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 $15,727,006 which is a $253,780 increase from the 2023 budget. Councilmember Weaver said last time we brought the levy down at 12% but were to give back 3% by decertifying the industrial park TIF district. Ms. Springer anticipated low increases going forward based on this levy and planned projects and felt the levy should be level. Mayor Rice said we will continue to identify where savings can occur to affect the levy. Councilmember Weaver said we need to have conversations on revenue because we can’t keep cutting expenses. He noted the State has money earmarked for an armory on the Rum River but didn’t believe that was an appropriate location then shared comments about what was in the best interest in Anoka along the river. Mr. Lee noted the proposed armory needs 20 acres and how they want to be in the center of the site directly south of the high school as Anoka High School has highest recruitment rate in the entire State. He noted Representative Jerry Newton is working on this and there are plans for the project in 2027. Motion by Councilmember Skogquist, seconded by Councilmember Weaver, to adopt a resolution adopting a levy for the year 2024, collectible in 2024, as presented. Upon a roll call vote: Mayor Rice, Councilmembers Skogquist, and Weaver voted in favor. Councilmember Wesp voted nay. Motion carried. 9.4 RES/Water Utility Rate Increase. RESOLUTION Ms. Springer shared a background report stating on December 4, 2023, 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 five years out. For 2024, staff is recommending an increase in the water utility rate beginning in January. The City Charter requires the City Council to hold a public hearing on rate increases to allow the public to comment on the proposed changes. December 18, 2023 (Regular) Page 11 of 20 The most recent rate change was in 2023. The proposed rates will increase residential water $1.20 per month for an average user. Finance is also recommending rate increases for water for the next several years, to pay for planned infrastructure improvements and increases in operating costs. The proposed increase should generate about $215,700 in additional revenue capital spending for 2024 is budgeted to be $3,017,798. The new proposed water rate is $1.70 per month, up $0.15 per 100 cu ft for residential properties. This is about a 9.68% increase in an average monthly water utility charge. Mayor Rice spoke about the average increase to customers and how lawn sprinkling charges must be a wide range and how we should focus on educating on using less water, adding current use was a remarkable decrease from previous years. Councilmember Skogquist referred to conservation programs and education about low flow shower heads and asked if those were requirement or best practices, as well as work preventing the peaks and valleys of water usage to delay infrastructure improvements that are really only needed for a few weeks a year. Public Works Director Mark Anderson spoke about the expanding Wells 6 and 8 to double capacity but agreed educating the public on the water restrictions has helped as the City used to pump 5 million gallons per day and is now under 4 million. Councilmember Weaver confirmed new irrigation systems need permitting with rain sensors as required by the State. Mr. Nelson shared the irrigation information on the City’s website that outlined backflow and rain sensors needed through permitting. Motion by Councilmember Skogquist, seconded by Councilmember Weaver, to adopt a resolution relating to the adoption of a water utility rate increase for 2024. Upon a roll call vote: Mayor Rice, Councilmembers Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.5 RES/Sewer Utility Rate Increase. RESOLUTION Ms. Springer shared a background report stating for 2024, staff is recommending an increase in the sewer utility rate beginning in January. The City Charter requires the City Council to hold a public hearing on rate increases to allow the public to comment on the proposed changes. The most recent sewer rate increase was in 2023, rates will increase about $1.32 per month for an average sewer user. Finance is also recommending rate increases for sewer for the next several years, December 18, 2023 (Regular) Page 12 of 20 to pay for planned infrastructure improvements and increases in operating costs. The proposed increase should generate about $183,200 additional revenues and disposal costs are projected to be up $182,100 in 2024 with capital spending for 2024 budgeted to be $868,600. She said the proposed increase in the sewer rate is $1.32 per month for the average water user for residential properties which is approximately a 6.53% increase in an average monthly sewer utility charge. Motion by Councilmember Wesp, seconded by Councilmember Skogquist, to adopt a resolution relating to adoption of a sewer utility rate increase for 2024. Mr. Lee shared for those seeking to reduce their utility bills to minimize water usage during these months as it will affect sewer utility bills as well. Mayor Rice said 6% is greater than the inflation rate and explained the City is trying to get ahead to continue replacing aging infrastructure. Upon a roll call vote: Mayor Rice, Councilmembers Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.6 RES/Storm Water Utility Rate Increase. RESOLUTION Ms. Springer shared a background report stating for 2024, staff is recommending an increase in the stormwater rates beginning in January. The City Charter requires the City Council to hold a public hearing on rate increases to allow the public to comment on the proposed changes. The most recent stormwater rate increase was in 2021. At that time, rates went up $.35 per month. Finance is recommending an increase in the current rate to reduce future debt service needs and to provide resources for the street renewal projects included in the Capital Improvement Plan forecasts. Finance is also recommending rate increases for stormwater in 2025 thru 2027 to pay for planned infrastructure improvements and to fund the new River Restoration Fund. The proposed increase should generate about $56,500 additional revenues annually. Projected cash balance for the end of 2024 is $1,365,761. Capital spending for 2024 is budgeted to be $888,000 and $288,000 in debt and interest payments for the Street Renewal Program. The proposed increase in the storm water rate is $0.30 per month per residential lot with the other categories was shared. Councilmember Skogquist commented about how once in place fees never seem to go away but said without this waste was going directly into the river and now treatment is much better and being addressed before entering the rivers which is important. December 18, 2023 (Regular) Page 13 of 20 Motion by Councilmember Skogquist, seconded by Councilmember Weaver, to adopt a resolution relating to adoption of a stormwater utility rate increase for 2024. Upon a roll call vote: Mayor Rice, Councilmembers Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.7 RES/Electric Utility Rate Increase. RESOLUTION Assistant Finance Director Liz Douglas shared a background report stating on December 4, 2023, the City held a public hearing and presented the proposed electric utility rate increase and there were no objections. Staff is presenting the increase as discussed to be effective January 2024. The City Charter requires the City Council to hold a public hearing on rate increases to allow the public to comment on the proposed changes. The last utility rate increase to consumption and demand charges went into effect in January 2018. A small increase to fixed charges went into effect January 2022. The purchased power adjustment has been adjusted monthly since January 2022 to reflect the actual cost from our purchased power supplier. Proposed increase should generate about $879,000 in additional annual revenues. Projected year end cash and investment balance for 2023 is $4,500,000. Budgeted capital investments to infrastructure and equipment for 2024 is $6,269,859. The proposed increase in the electric variable and fixed rates is $2.33 per month for the average residential electric customer, or about 2.56%. Motion by Councilmember Skogquist, seconded by Councilmember Weaver, to adopt a resolution relating to adoption of electric utility rate increase for 2024. Councilmember Wesp said we need to focus on how to continue to be competitive with other providers with the upcoming difficulties of mandates for green energy and how we will keep our electric utility relevant through possible use of the dam to generate hydro electric to power City facilities. He said we will be faced with greater challenges as those requirements are be made. Mayor Rice said the electric utility is a great asset to the City as it reduces taxes to property owners and continues to offer good value and income to the City which is exactly how an enterprise fund should operate. Upon a roll call vote: Mayor Rice, Councilmembers Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.8 RES/2024 Street Renewal Project; Franklin Area Phase II; Approve Feasibility Report and Set Public Improvement Hearing. RESOLUTION December 18, 2023 (Regular) Page 14 of 20 Mr. Nelson shared a background report stating a resolution was adopted by City Council on September 6, 2022, authorizing the preparation of a feasibility report for the 2023/2024 Street Renewal Projects (SRP). This feasibility report includes the entire “Franklin Area” neighborhood as it was more economical to complete having the preliminary design for the entire area consolidated into one report, which for the city resulted in a saving of professional services. The “Franklin Area” neighborhood consist of the roads bounded by Branch Avenue to the west, TH-169 (Ferry Street) to the east, Highway 10/169 to the north, and West Main Street to the south. The next step in the Chapter 429 process is to have City Council accept the 2024 Street Renewal Project; Franklin Area Phase II portion of the report and set the hearing dates. A neighborhood meeting was held at Green Haven Golf Course and Event Center on December 13, 2023 for the 2024 SRP – Franklin Area Phase II project to further educate the neighborhood on our Street Renewal Program and receive feedback from the benefiting property owners. Approximately 11 people attended the meeting. Overall, the residents were in favor of the project. He shared a project webpage was developed as another way for residents to obtain information and the feasibility report outlines the proposed improvements, estimated costs, and recommended property special assessments. The project cost was estimated to be $2,632,000 and he outlined the funding options including assessments of $10,180 per typical 80-foot residential lot. He shared the project schedule and asked Council to consider recommended that City Council adopt the proposed resolution that approves the feasibility report and set a public improvement hearing and assessment hearing on January 16, 2024. Councilmember Wesp asked if there was other work to be included on Ferry Street besides the cul-de-sac. Mr. Nelson shared Gray Street went through the process and how the cul-de-sac of Gray Street was driven by the Highway 10 project and completed and how this project will tie into that portion. Motion by Councilmember Wesp, seconded by Councilmember Skogquist, to adopt a resolution for the 2024 Street Renewal Project – Franklin Area Phase II; approve feasibility report and set public improvement hearing for January 16, 2024. Councilmember Skogquist said the alley between Auto Zone and US Bank is City-owned and in poor condition and asked if this will be concrete or asphalt. Mr. Nelson said the alley in this area will be 24 feet wide with standup curb and is proposed to be asphalt and the remaining alley to the north will be standard width with ribbon curbing. He said staff reached out to AutoZone to see if they were interested in a rain garden and infiltration area to naturally pond this area. Councilmember Weaver asked if the City lot in the area will have sewer/water services as this is not an elementary school any longer but should be stubbed, adding he did not want to see changes resulting in tearing out new infrastructure. Mr. Nelson said they are looking at a lot combination and not installing any December 18, 2023 (Regular) Page 15 of 20 services knowing it may be a future parking lot but staff is discussing this with the school district about their future needs about having services included. Mr. Lee said staff encouraged them to combine the platted lots to avoid any additional costs. Mr. Nelson confirmed his understanding was their intent to combine the lots. Upon a roll call vote: Mayor Rice, Councilmembers Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.9 RES/2024 Street Renewal Project; Franklin Area Phase II; Set Assessment Hearing. RESOLUTION Motion by Councilmember Skogquist, seconded by Councilmember Weaver, to adopt a resolution for the 2024 Street Renewal Project – Franklin Area Phase II; set assessment hearing date for January 16, 2024. Upon a roll call vote: Mayor Rice, Councilmembers Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.10 RES/Rum River Channel Restoration Project (Phase II); Waive Public Improvement Hearing and Order Project. RESOLUTION Mr. Nelson shared a background report stating based on a biometric survey of the Rum River that was completed in the June of 2023, the majority of the channel has silted in the entire way to the Mississippi River, in some areas as much as 4 feet. The 2023 Rum River Survey plan and project location exhibit. Pursuant to City Council discussion at the June 26, 2023 worksession meeting, Council direction was given to create/re-establish a channel with minimum dimensions of 40 feet wide at bottom, and a minimum depth of 4- feet along the entire length of the Rum River from north of the Main Street Bridge to the Mississippi River. A resolution was adopted by City Council on October 2, 2023, approving the feasibility report for the Rum River Recreation Channel Restoration Projects. The Rum River Recreation Channel Restoration Projects included both the Rum River Channel Maintenance Project (Phase I) and the Rum River Channel Recreation Project (Phase II). At the December 11, 2023, worksession meeting, staff provided an update on the permitting process and schedule for the Rum River Channel Recreation Project (Phase II). Council provided unanimous consent for the project to be placed on December 18, 2023 regular City Council agenda for council consideration to waive the public hearing, order the project, and authorize staff to apply for the MN DNR Permit. The Rum River Channel Restoration Project (Phase II) is for a new dredging operation of a navigational channel from December 18, 2023 (Regular) Page 16 of 20 the confluence of the Mississippi River to limits of the Rum River Maintenance Project (just south of the pedestrian footbridge). The proposed dredging would include the excavation for a navigation channel approximately 2,750 feet in length, 40 feet wide bottom, 2-feet to 4-feet deep, with a bottom elevation of 826 +/- and 3:1 side slopes. He outlined the project in detail and schedule the feasibility report estimated project cost was $495,000 for Phase II to complete the proposed dredging. The estimated project cost includes construction costs plus a construction contingency and engineering, legal, administrative, and fiscal expenses. The estimated cost for the preparation of the EAW is approximately $15,000 to $30,000 and the permit fee for the MN DNR ranges from $1,200 to $12,000. It is anticipated that the expected fee would be approximately $5,000 and shared the schedule. Councilmember Skogquist said it has been informative to learn how the process works then spoke about the north half dredging is different than this part and how the southern portion allows us to go through permitting so if City shows a need in the future we could dredge or remove sand. He said in this way we are not committed to spend the money but getting the process in place for spring if needed. Motion by Councilmember Skogquist, seconded by Councilmember Weaver, to adopt a resolution Rum River Channel Restoration Project (Phase II); waive public improvement hearing and order project. Councilmember Weaver said work won’t have to go to the confluence then asked about work around the docks. Mr. Nelson said the EAW will include docking areas and that the City would apply for an individual permit for the dock dredging maintenance work. Councilmember Weaver spoke about alternative energy options and the dam project and upcoming green energy requirements. He spoke about real estate values for properties along the river and the importance of the parks along the rivers and the need to take care of them, adding he wished we could have done this work sooner. Upon a roll call vote: Mayor Rice, Councilmembers Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.11 RES/West Rum River Trail Phase I Project; Order Project and Authorize the Preparation of Plans and Specifications. RESOLUTION Public Services Administrator Lisa LaCasse shared a background report stating on March 31, 2022, staff submitted a grant application to the Minnesota Department of Natural Resources (MN DNR) 2022FY Local Trails Connection program for December 18, 2023 (Regular) Page 17 of 20 Phase 1 of the West Rum River Trail (formerly referred to as the ‘Riverwalk’). The Phase 1 project was estimated at a cost of $350,000. The maximum grant award available was $250,000. On June 23, 2022, the City received notification of a partially awarded 2022 Local Trail Connections Program grant in the amount of $200,000 to connect local pedestrian routes and regional trails to the waterfront's historic sites and natural beauty. City non-state funds cash match of 25% is required. Due to the estimated project cost the City’s match amount will be at least $150,000 from the Park Dedication Fund. Completion of the first trail phase will provide opportunities for expanded access to the riverfront in future phases. Unless an extension is granted, construction work must be completed by June 30, 2024. In August of 2022, staff began working with Bolton-Menk to obtain the permits required to obtain a grant agreement with the MN DNR for the trail project. Due to the significant cultural resources in the area, the State Historic Preservation Office (SHPO) permitting process required completion of a Phase I Archaeological Survey that must meet the requirements of the Secretary of the Interior's Standards for Identification and Evaluation and includes an evaluation of National Register eligibility properties. Discussions with SHPO are on-going as staff works to obtain the agency’s authorization to proceed with the trail construction project. In June of 2023, staff entered into a preliminary contract with MN DNR for the Local Trails Connection Grant program to encumber the funds for this project. The contract is considered preliminary until all of the required permits have been obtained from the coordinating agencies such as SHPO, MN Department of Transportation, Lower Rum River Watershed Management Organization, and the MN DNR. Authorization from all permitting agencies is anticipated to be received by February 2024. She outlined the project and schedule in detail and at the time of the grant application, the project cost was estimated at $350,000. The Local Trail Program Grant maximum award amount was $250,000 requiring a non-state funded cash match of 25%. The City was awarded partial funding in the amount of $200,000. Based on the current project estimate, the City’s non-state fund match will be $150,000. As a new amenity being constructed within the park system, the non-state funds cash match will be allocated from City’s Park Dedication Fund. Due to the partial funding received, the City’s cash contribution (initially estimated at $100,000) will need to be increased to at least $150,000 to cover the reduction of grant funds and balance of project costs. This project is budgeted as a 2023 Capital Project and will need to be carried over into 2024. Grant funds are reimbursable to the City upon project completion. Councilmember Weaver asked if the arched bridge over the stone house will be included. Ms. LaCasse said the bridge would be a separate project outside of the grant funding because there would be other requirements such as ADA that we may not be able to do and be historically accurate and hope to do that in 2024. She said the hope is the 1,400-foot section will be a catalyst for other opportunities in the corridor and Phase II will be work under the stone house under Main Street and connecting to the Dam and the overlook and possible restructure of the pedestrian bridge. December 18, 2023 (Regular) Page 18 of 20 Councilmember Skogquist said it will be good to have people in the area as work attracts attention to the area and will help keep it clean and have others understand the history while maintaining the boardwalk. Motion by Councilmember Skogquist, seconded by Councilmember Weaver, to adopt a resolution West Rum River Trail: Phase 1 Project; order project and authorize preparation of plans and specifications. Upon a roll call vote: Mayor Rice, Councilmembers Skogquist, Weaver, and Wesp voted in favor. Motion carried. 10. UNFINISHED BUSINESS None. 11. NEW BUSINESS 11.1 Annual Appointments to Boards and Commissions. Mr. Lee shared a background report stating staff advertised for applications for the annual board/commission appointments during the month of October. This was published in the Anoka Union, posted on the City website, Facebook, Twitter and also posted on the City reader board. A summary of the board/commission positions scheduled to expire on December 31 was shared, as well as the status of the applications received, whether or not the individual is re-applying or a new applicant and also describes the requirements to serve on each of the Boards/Commissions. He outlined the existing vacancies after all the appointments are made and that staff will continue to advertise these vacancies per City policy. Councilmember Wesp noted most of Council us first served on a board or commission and said members were dedicated people willing to volunteer. He spoke about the recent loss of Housing and Redevelopment Authority Chair Carl Youngquist and his dedication for many years and thanked all members for their service. Motion by Councilmember Wesp, seconded by Councilmember Skogquist, to reappoint Bryan Beaudoin, Matthew Finn, and Jeff Lee to the Economic Development Commission; James Collins to the Heritage Preservation Commission; David Bonthuis and Michele Schnitker to the Housing and Redevelopment Authority; Joelle Alvord, Mark Jensen and Tanya Ussery to the Human Rights Commission; Gregory Bortnem, Steve Jenson, and Jackie Young to the Parking Advisory Board; Steve Nelson, Kirk Schnitker, and Derk Sebesta to the Parks and Recreation Board; Nancy Coleman and Peter Rech to the Planning Commission; and Cody Abbot and Daniel Pinewski to the Utility December 18, 2023 (Regular) Page 19 of 20 Advisory Board; and Brenda Belland, Cheryl Knapek and Marijo Hain to the WRRB. Councilmember Skogquist thanked Vickie Violet for her service on the on the WRRB and Colleen Hansen on the Heritage Preservation Commission. Vote taken. All ayes. Motion carried. 11.2 Anoka County Jail Expansion Project. ACTED UPON EARLIER IN THE AGENDA 12. UPDATES AND REPORTS 12.1 Distribution of 2nd Half Round-Up Funds. Ms. Springer shared a background report stating this is 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. Participation has increase compared to December 2022 by almost 3% due to diligent introduction from staff. Revenue for 2023 is projected to total $34,500 with $19,000 available for disbursement. CEAP (serving East Champlin) $ 1,500 allocation based customers served CROSS (serving West Champlin & Dayton) $ 2,500 allocation based customers served Based on collections Anoka County, the following are proposed to be distributed to these organizations: ACBC (serving Ramsey, Coon Rapids, Anoka) $4,500 1/3rd of collected donations Alexandria House $4,500 1/3rd of collected donations Anoka Mission $4,500 1/3rd of collected donations for a total of $17,500. Councilmember Weaver said it was reassuring to hear about increased participation in the program which meant staff was working to share the program which was great. He said this concept was brought forward with the electric utility similar to other utilities and that the highest amount donated is only $11.88 but results in so much and thanked the team for their work promoting the program. 12.2 Tentative Agenda(s). The Council reviewed the tentative agendas of the upcoming Council meetings. 12.3 Staff and Council Input. December 18, 2023 (Regular) Page 20 of 20 Mr. Lee asked if Council would like Item 9.0 to be included on the January 2 agenda since the motion failed on a 2-2 vote. Council consensus was to have the item brought back for consideration again when a full Council was present. The Council wished everyone a merry Christmas and happy New Year. ADJOURNMENT Councilmember Skogquist made a motion to adjourn the Regular Council meeting. Mayor Rice seconded the motion and enter into closed session pursuant to MN Statute 13D.05, subd 3(a) for the purpose of conducting the annual performance evaluation of the City Manager. Vote taken. All ayes. Motion carried. Time of adjournment: 9:49 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk