Anoka City Council

February 20, 2024 (Regular) Page 1 of 12 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS FEBRUARY 20, 2024 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. Also present: City Manager Greg Lee; Police Chief Eric Peterson; Assistant City Engineer Ben Nelson; Public Services Administrator Lisa LaCasse, Public Works Director Mark Anderson; Community Development Director Doug Borglund; Housing and Redevelopment Authority Executive Director Darin Berger; and Utility Director Del Vancura. Absent at roll call: None. 3. COUNCIL MINUTES 3.1 February 5, 2024, Regular Meeting. Motion by Councilmember Skogquist, seconded by Councilmember Scott, to approve the minutes of the February 5, 2024, Regular Meeting as presented. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, and Wesp voted in favor. Councilmember Weaver abstained. Motion carried. 4. OPEN FORUM 4.1 Recognition of City Employee Jon Holmes. Public Services Administrator Lisa LaCasse shared February 17, 2024 marks the 40-year anniversary of Jon Holmes as a City of Anoka employee. She said to their knowledge Mr. Holmes is the first employee to reach this milestone anniversary. She shared about his background and said he began employment in 1984 as a maintenance employee for the Road, Bridge and Sewer Maintenance Department. Ms. LaCasse shared his work over the years which included the Water and Sewer division, department union steward, Street Supervisor, and now Public Services Supervisor. She shared he also served on the City of Anoka as a member of the fire department from 1978 until 2021 and held the positions of firefighter, Lieutenant, Captain, and Assistant Chief during his 43 years of service. February 20, 2024 (Regular) Page 2 of 12 Councilmember Weaver asked about the work required to plow the City then invited Mr. Holmes to share about Waterfowl for Warriors. Mr. Holmes explained how crews begin at 1:30 a.m. to remove snow for the residents and businesses in Anoka then shared how Waterfowl for Warriors meant a lot to him and his father which helped veterans continue their love of hunting. He said they were an amazing group and thanked the Council for their support. Councilmember Wesp shared about the importance of parks and recreation and Mr. Holmes firefighting work. Mr. Holmes thanked the crews for their great work in maintaining the City’s parks and ice rinks then stressed the importance of protecting people and their property as firefighters. Councilmember Wesp thanked Mr. Holmes for his commitment to this City. Councilmember Scott said he was very impressed with Mr. Holmes and all the employees who serve the City then commented on the breadth of knowledge he brings. He said the department was well run and that people can rely on Mr. Holmes and thanked him for his 40 years of service. Councilmember Skogquist added Mr. Holmes dedication to the City was extremely beneficial, adding he was always available during off hours when needs arose. Mayor Rice said it was a privilege to serve with him on the fire department and agreed Mr. Holmes brought experience and knowledge to the department and was a steady leader, even during difficult periods. He agreed that firefighters relied on him and everyone knew things would always get done which is a rare quality. Mayor Rice thanked Mr. Holmes then presented him with a memento for his service. 4.2 Police Activity Update. Police Chief Eric Peterson shared his appreciation for Mr. Holmes and the importance of the departments working together then spoke about the recent loss of two police officers and a firefighter in Burnsville and the impact on public safety and their family members. He thanked the many residents who have reached out to Anoka’s public safety team over the last few days to show support. He reported flooding has not been a concern this spring due to the lack of snow then shared about the recent responsible beverage serving training the department hosted and encouraged other servers to attend future sessions as they help assist with alcohol compliance and understanding of the law. Chief Peterson shared about security training they will be hosting for places of worship for site security then spoke about training from HomeLine for landlord and tenant law regarding evictions and cannabis in rental housing and upcoming public education sessions for seniors on how to avoid scams attempts. February 20, 2024 (Regular) Page 3 of 12 OTHER INFORMATION UNDER OPEN FORUM None. 5. PUBLIC HEARING(S) None. 6. CONSENT AGENDA Motion by Councilmember Wesp, seconded by Councilmember Skogquist, to approve Consent Agenda Items 6.1 through 6.2 as presented. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, Weaver, and Wesp voted in favor. Motion carried. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS None. 8. PETITIONS, REQUESTS AND COMMUNICATION None. 9. ORDINANCES AND RESOLUTIONS 9.1 RES/Approving Joint Powers Agreement for the Formation and Administration of the Anoka County Special Weapons and Tactics Team. RESOLUTION Chief Peterson shared a background report stating staff was requesting approval of a Joint Powers Agreement for the Formation and Administration of the Anoka County Special Weapons and Tactics (SWAT) Team. The Sheriff’s Office is expanding SWAT team memberships to develop a Tier 1 SWAT team. The National Tactical Officers Association (NTOA) defines a Tier 1 team as having at least 34 members and a FEMA type 1 team has at least 29 members. To accomplish SWAT team staffing levels, a decision was made to partner with other agencies within Anoka County. He said this action would help make the team a regional asset as well as improving relationships and skill levels within the other February 20, 2024 (Regular) Page 4 of 12 agencies, adding getting the team up to FEMA type 1 status allows eligibility for Federal grant money. With additional team members, the standards set by the NTOA and FEMA will have been met. He said since 1985, the Anoka Police Department (APD) has equipped and trained at least 7 members of the department to respond to violent crisis situations in a Tier 4 size team. The APD team has been able to provide perimeter safety and containment functions. The APD has been one of two departments in the county to have such equipment and training, the other being the Anoka County Sheriff’s Office. More frequently, mutual aid requests have been made between the APD and the Sheriff’s office to resolve violent and complex situations in Anoka and within Anoka County. In October 2023 members from 6 agencies were tested to become part of this new county- wide SWAT team that was overseen by members of Anoka County Sheriff’s Office and Anoka Police. The Anoka Police Department wishes to assign 6 officers and 1 crisis negotiator to the County Wide Tactical Team in 2024 and 3 totals starting in 2025. The formation for this Joint Powers Team is supported by the Anoka County Chiefs of Police Association. Councilmember Wesp referred to language regarding mutual aid requests for needs such as the recent incident in Burnsville. Chief Peterson referred to recent mutual aid to assist officers in other jurisdictions and how incidents can result in a larger critical incident response. He said in those situations the size of the team matters and how when incidents like Burnsville occur investigations and work can be lengthy and ongoing and most agencies aren’t capable of dealing with them alone. He said the need for mutual aid is critical when incidents arise, including assistance with Public Works needs when necessary. Councilmember Wesp said these are uncomfortable conversations to have but when we need help it’s important when a crisis occurs, adding the Anti-Crime Commission supports this action. Motion by Councilmember Wesp, seconded by Councilmember Scott, to adopt a resolution approving a Joint Powers Agreement for the Formation and Administration of the Anoka County Special Weapons and Tactics Team. Councilmember Weaver asked how officers respond if they can be paged at any time. Chief Peterson explained the response is done through an app and if off shift and available officers respond but if on shift, they cannot leave until Anoka staffing is addressed first. Councilmember Skogquist asked if there are concerns about response time in Anoka if we enter into this agreement. Chief Peterson said response time would be virtually identical as our officers are already in place to respond in Anoka but noted response would actually improve as it would allow officers from other agencies to help Anoka address situations and in essence expands our police force if needed. February 20, 2024 (Regular) Page 5 of 12 Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.2 RES/Approving Fiscal Agent Agreement Between Anoka County and Member Cities of the Anoka Hennepin Narcotics and Violent Crimes Task Force to Receive HIDTA Grant Funds. RESOLUTION Chief Peterson shared a background report stating staff was requesting approval of a resolution approving a fiscal agent agreement between Anoka County and member cities of the Anoka Hennepin Narcotics and Violent Crimes Task Force (AHNVCTF) to receive High-Intensity Drug Trafficking Area (HIDTA) grant funds that reimburses officers overtime while working HIDTA cases. The City of Anoka has an investigator assigned to the AHNVCTF. The member cities of the AHNVCTF have joined the North Central HIDTA and they receive federal HIDTA grant funding to pay for overtime for investigators through a Joint Powers Agreement between Anoka County and HIDTA. To receive overtime funds through this grant, The JPA with HIDTA requires the political subdivision of the State of Minnesota (Anoka County) to act as the Fiscal Agent to disperse the grant funds to the member cities. Councilmember Weaver noted signature page updates were needed. Chief Peterson shared the agreement was already approved prior to signature changes at Anoka County but would follow-up for confirmation. Motion by Councilmember Weaver, seconded by Councilmember Skogquist, to adopt a resolution approving Fiscal Agent Agreement between Anoka County and Member Cities of the Anoka Hennepin Narcotics and Violent Crimes Task Force to Receive HIDTA grant funds. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.3 RES/Approving Purchase Agreement for the City’s Purchase of 7th Avenue and Main Street. RESOLUTION Housing and Redevelopment Authority Executive Director Darin Berger shared a background report stating the HRA began assembling the blighted properties in this expanded South Central Business Tax Increment Finance (TIF) District in August of 2019. After the HRA purchased 640 E. Main Street out of the HRA General Fund, they secured bond funds and the following properties were February 20, 2024 (Regular) Page 6 of 12 purchased: • 650/658 E. Main Street • 639 Monroe Street • 1919 7th Avenue. The Housing and Redevelopment Authority (HRA) issued bonds through the City to purchase and redevelop properties at this location and the entities entered into a Pledge Agreement which pledged the TIF revenues from the South Central Business TIF District to pay the principle and interest of the bond debt. This district already had internal loans from both the HRA General Fund and the expired (pre-1990) Redevelopment TIF District. He outlined the debt incurred in detail and said staff has worked with CBRE, Inc. to market this 1.75-acre property for various uses at the current listing price of $950,000. Though there has been much interest, most of the interest was for uses not allowed in this zoning district, a greatly reduced purchase price or non-preferred uses based on HRA, Council and Planning Commission input. The HRA also signed a purchase agreement with a development group but after spending a year working on the project there was no favorable outcome. Mr. Berger shared that in May of 2023, the City Council held a worksession to discuss the possibility of moving the East Liquor Store to this site. There was Council consensus to move ahead with this concept and the consultant evaluating various locations deemed this the highest revenue generator within the City. He shared that staff has been working to make this plan a reality since that direction then shared the HRA was requesting the addition of a few contingencies for the sale of this property: • Buyer agrees to construct a municipal liquor store on a parcel of the Property within three (3) years from Date of Closing • The Purchase Agreement must be signed by Buyer on or before July 8, 2024 (6 months after HRA signed the PA) • The Date of Closing must take place within 6 months of final execution of Purchase Agreement • Buyer agrees to include commission fees to CBRE, Inc. in the debt incurred. The City of Anoka would purchase the property for $1.00 and incur HRA debt in the amount of $4,011,298.00 to be repaid by TIF Revenues. Councilmember Skogquist inquired about revenue, debt and annual payments and if they would be paid from revenue from the South Central Business District. Mr. Berger explained the District has been making payments and that revenues are now being generated and that action would expand the district and incorporate the Main Street parcels for repayment of bond debt and internal debt. He said the current TIF revenue is paying the debt service of approximately $130,000 per year, most of which was generated from current redevelopment on 2nd and Monroe Street but that additional bonding debt would be included. Councilmember Weaver said with the district funding if the transfer of property ownership occurs will that be an HRA or Council TIF district. Mr. Berger said the district would continue to be an HRA TIF district then explained the pledge agreement that repays the bond debt would pay back plus interest and that the HRA will pay the City from the pledge while the City incurs the debt. He added the 2nd and Monroe Street portion already has a pledge in place. February 20, 2024 (Regular) Page 7 of 12 Councilmember Skogquist asked if a taxable entity went on the site at 7th and Main and revenue pays the debt does the excess go to any other HRA districts. Mr. Berger said the amount would go to pay down the debt sooner and not be used for any other districts or any other redevelopment, adding once done the TIF district would be terminated. Mayor Rice spoke about the liquor store potential and how there will be no TIF revenue from the liquor store but assumed we can pay it back if constructed in three years on the site. Mr. Berger responded the bond debt would be covered but not the HRA internal debt. Councilmember Weaver referred to the conceptual plan with a building to the west with a drive thru and if the current zoning allows this plan. Community Development Director Doug Borglund responded how the site was zoned EM2 then spoke further about the minimum and maximum setbacks, adding the front yard setback says no parking or drive lanes are allowed between building and Main Street but no parking would be allowed in front of the building. He said this zoning allowed for a mix of use and a hybrid option then shared that any use would likely be a PUD of some type to accomplish developing this parcel with multiple uses. Councilmember Weaver said this corner needs to be redeveloped to generate taxes and while the liquor store would be a great use was concerned that if one of the best developers in the Twin Cities couldn’t make a project work would the City be successful. He said this site was not an extension of downtown Anoka because there wouldn’t be any on street parking then shared comments from the financial institution interested in the site who wanted primary visibility and would be interested if those plans change. He said for these reasons he wouldn’t support this purchase until we can ensure this property will be successful. Councilmember Skogquist said the primary restrictions were not supporting a residential mixed use and said being four blocks from downtown Anoka any development should include a residential component. He said revenues from the liquor store would generate funding for the park system and supported pausing on a decision to further explore how we can change the zoning to accommodate this use and abide by the City’s own rules. Councilmember Scott said there was room to tweak some of the outlined items and felt this would be a great location for the liquor store but we may need to re- envision the site and asked about impacts if the store was if placed on another location on the site. February 20, 2024 (Regular) Page 8 of 12 Councilmember Wesp said he didn’t understand the direction with the Miller building and had concerns with the $4 million debt and building a $3 million liquor store which all has to be paid back. He said this was a lot of responsibility to place on the liquor store and that he not comfortable with the zoning. He said he was not opposed to the liquor store just the zoning and would support postponing for further worksession discussion if needed. Mayor Rice suggested tabling the item for further review. Councilmember Weaver said he was not opposed to the purchase but wanted to maximize the square footage to get the highest return. Motion by Councilmember Wesp, seconded by Councilmember Weaver, to table consideration of a resolution approving a purchase agreement for the City’s purchase of 7th Avenue and Main Street for further review at a worksession. Councilmember Wesp noted he will be unable to attend the next meeting but supported this topic be scheduled at a worksession to discuss this further. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.4 RES/2024 Approval of MMPA Purchase Power Qualified Tariff Rates. RESOLUTION Utility Director Del Vancura shared a background report stating AMU has grouped with 11 other Minnesota municipals to form the MMPA. MMPA has been empowered to purchase generated power with purchase power agreements with each member city. Avant Energy is our managing partner at MMPA and they were requesting each member city approve tariff rates for 2024 distributed generation. He explained time of use rate for summer and winter and the four cents/kilowatt payback rate. Councilmember Skogquist noted this was supposed to be an annual action which currently would not affect any customers at this time. Mr. Vancura explained the advantage for AMU came because the power would be hooked up before. Councilmember Weaver confirmed the City would get the rebate. Mr. Vancura explained if below 40 kilowatts the rebate would go to AMU. Councilmember Skogquist explained further how rebates work for homes with solar panels in place. February 20, 2024 (Regular) Page 9 of 12 Motion by Councilmember Wesp, seconded by Councilmember Skogquist, to adopt a resolution of approval for the 2024 MMPA purchased power qualified tariff rates. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, and Wesp voted in favor. Motion carried. 9.5 RES/Supporting Pursuit FY 2024 for Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Program Grant Funding for Highway 47 Sustainable Railroad Crossing and Corridor Project. RESOLUTION Mr. Nelson shared a background report stating the Rebuilding American Infrastructure with Sustainability and Equity (“RAISE”) Discretionary Grant Program for 2024 helps communities around the country carry out projects with significant local or regional impact. This program provides project sponsors the opportunity to obtain funding for projects that may been more difficult to support through other federal grant programs and must demonstrate modal and geographic diversity. The RAISE funds are targeted toward projects that will have a significant local or regional impact that advance the departmental priorities of safety, equity, climate and sustainability, workforce development, job quality, and wealth creation. The RAISE Grant is a multimodal, merit-based, competitive basis award for planning, preparation and/or design of surface transportation infrastructure that may provide federal funds for up to 80 percent of the eligible project cost. There is no minimum award size to any one planning project and the maximum award size in this solicitation is $25M. Applications are due February 28, 2024 and successful applicants will be notified by June 27, 2024. At the July 25, 2022 worksession meeting, MnDOT project team representatives provided a presentation including a recommended alignment for the Trunk Highway 47 BNSF Grade Separation Project. Council provided feedback to MnDOT on the City’s preferred recommended alignment and directed MnDOT to continue with Alignment Alternative Number 2. Since this meeting, MnDOT has committed to deliver a project that works not only for the State but the City of Anoka. He shared further background on the proposed project then said last month, MnDOT came to a resolution supporting improvements along Highway 47 including the grade separation of the railroad crossing but without a singular alignment alternative at this time. MnDOT management now will provide the City letters of support for future grant funding applications. Mr. Nelson said an excellent candidate for these funds is Highway 47 north of U.S. Highway 10 that would include both the MnDOT’s Highway 47 BNSF Grade Separation Project and the City’s Highway 47 Corridor Improvement Project up to Bunker Lake Boulevard. February 20, 2024 (Regular) Page 10 of 12 He said this planning grant would support the City’s desire to explore a more comprehensive reconstruction of the Highway 47 corridor, beyond just solving transportation needs, focusing on maximizing safety to the traveling public while minimizing environmental impacts. The preliminary project cost for the State’s Highway 47 BNSF Grade Separation Project is $80M and the preliminary project cost for the City’s Highway 47 Corridor Improvement project is $7.4M. The RAISE Grant could fund the preliminary planning, design, and engineering cost associated to these projects. The RAISE Grant request is for $2,500,000 to further study and complete preliminary design of these projects. The City local match commitment for this grant request is $625,000 should the grant funding be awarded to the City of Anoka. Based on conversations with MnDOT, that the State still have a lot of this money available so getting a local match assistance should not be a problem if the City is awarded the RAISE Grant. Other possible funding sources that may be explored are State Bonding funds, other competitive grants, or a funding commitment from MnDOT. Councilmember Weaver thanked staff for the great work and confirmed staff would be able to meet the short grant application deadline. Motion by Councilmember Skogquist, seconded by Councilmember Weaver, to adopt a resolution Supporting Pursuit FY 2024 For Rebuilding American Infrastructure with Sustainability and Equity (“Raise”) Program Funding for Highway 47 Sustainable Railroad Crossing and Corridor Project. Mayor Rice agreed this is a great opportunity for City and said he hoped it would be successful. 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 11.1 Appointment to the Utility Advisory Board. Mr. Lee shared a background report currently the City has one vacancy on the Utility Advisory Board for a partial term expiring December 31, 2024. Applications closed on February 9 and two were received: Corliss "Cob" Burandt and Ed Evans. He noted Mr. Evans is not an active employee with the City as his seasonal position as an Ice Rink Attendant terminated on February 2, 2024, and would be eligible for appointment. February 20, 2024 (Regular) Page 11 of 12 Councilmember Weaver made a motion, seconded by Councilmember Wesp, to appoint Ed Evans to the Utility Advisory Board for a term to expire December 31, 2024. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Weaver, and Wesp voted in favor. Councilmember Skogquist voted nay. Motion carried. 11.2 Recommendation on Appointment to the Charter Commission. Mr. Lee shared a background report stating currently the City has one vacancy on the Charter Commission for a partial term to expire November 1, 2024. Applications closed on February 9 and one was received from Colleen Hansen. Appointments to the Charter Commission are made by the 10th Judicial District Court; however, the Council does make recommendations on appointments. Should the District Court make this appointment, the Charter Commission will be full. Councilmember Wesp made a motion, seconded by Councilmember Scott, to appoint Colleen to the Charter Commission for a term to expire November 1, 2024. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, Weaver, and Wesp voted in favor. Motion carried. 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. Mayor Rice noted won’t be in attendance at the March 4 Council meeting. Councilmember Wesp said he won’t be able to attend the February 26 discussion of the fire department JPA and asked if it could be postponed if possible. February 20, 2024 (Regular) Page 12 of 12 ADJOURNMENT Councilmember Weaver made a motion to adjourn the Regular Council meeting. Councilmember Wesp seconded the motion. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, and Wesp voted in favor. Motion carried. Time of adjournment: 8:29 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk