Anoka City Council

March 4, 2024 (Regular) Page 1 of 11 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS MARCH 4, 2024 1. CALL TO ORDER Mayor Pro Tem Scott 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 Pro Tem Scott, Councilmembers 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; Senior City Planner Clark Palmer; City Attorney Scott Baumgartner; and Utility Director Del Vancura. Absent at roll call: Mayor Rice. 3. COUNCIL MINUTES 3.1 February 20, 2024, Regular Meeting. Motion by Councilmember Skogquist, seconded by Councilmember Weaver, to approve the minutes of the February 20, 2024, Regular Meeting as presented. Upon a roll call vote: Mayor Pro Tem Scott, Councilmembers Skogquist, Weaver, and Wesp voted in favor. Motion carried. 4. OPEN FORUM 4.1 U.S. Highway 10 Anoka Solution; Project Achievements and Awards. Assistant City Engineer Ben Nelson shared that in 2014, the City of Anoka realized they would need to lead the Highway 10 Anoka Solution Project. This resulted in a singular vision for the City that MnDOT supported and just in two years, the City secured all funding for this massive $85 million-dollar project through numerous competitive awards and commitments from project partners. This vision incorporated the community’s values which were prominently featured in the design and greatly enhanced the community connectivity by providing a new, continuous roadway network on both sides of the highway. Also, the project aesthetics reflected the “real classic” community of Anoka by March 4, 2024 (Regular) Page 2 of 11 incorporating a beautiful red brick and limestone theme into all design elements. The City of Anoka began construction in 2022 and reached substantial completion at the end of the 2023 construction season. The project included an interchange at Thurston Avenue, an overpass at Fairoak Avenue, interchange reconstruction at Main Street, and a series of new frontage roads on both sides of Highway 10. In addition, Minnesota’s first grade-separated roundabout interchange was implemented at Thurston Avenue and a five-legged roundabout was implemented at Main Street. According to MnDOT State Aid, this is the largest city-led highway project ever undertaken in Minnesota and MnDOT leadership said the project approach should serve as a model for future locally lead projects. He listed the many awards received for this project that included APWA Public Works Project of the Year Award, MnDOT Work Zone Safety Award, CEAM Project of the Year Award, NCITE Transportation Achievement Award, MnSPE Project of the Year Award, and ACEC of Minnesota Grand Award then shared a video produced by Bolton & Menk for the recognition at the CEAM event and the national award nominations. Councilmember Wesp said the Anoka Chamber of Commerce summed it up best when they said 60 years ago cross streets were removed to divert traffic out of the downtown area but nothing had been done since. He said it was important that Council listened to staff, MnDOT, and Anoka County on how this project could be accomplished and thanked staff for their work facilitating and organizing this project, adding the public safety benefit was extremely important as well. Councilmember Skogquist stressed the importance of connections from across the highway for safety, creating a Main Street with no cut through neighborhoods, increased safety elements and time elements, and shifting the highway to the north in essence. He thanked everyone involved for their energy and effort. Mayor Pro Tem Scott echoed everyone’s comments regarding the importance of this project and how Anoka worked to help provide a gateway for all cities to the north. 4.2 Police Activity Update. Police Chief Eric Peterson shared comments about the significance of the Highway 10 project that will certainly save lives then spoke about the hiring of two new part-time CSOs and their work to hire in advance of vacancies as this was a successful feeder program for Anoka and other agencies. He shared year end crime report calls for service have increased to nearly 25,000 compared to 23,000 in 2022 and up 46% than 10 years ago. He said the bulk of calls are assistive and not crimes then shared that DWI arrests were up 41% from 2022 and Officer Berkner’ hat trick award for DWI arrests in one shift in both December and January then shared about a recent call by Sgt. Sorteberg regarding a stolen truck that resulted in an arrest for meth and possession of a hand grenade. March 4, 2024 (Regular) Page 3 of 11 Councilmember Weaver inquired about efforts to address speeding on 5th Avenue. Chief Peterson shared how the department was aware of speeding concerns on 5th Avenue and were working to address through directed enforcement, signage, etc., and the addition of a traffic car position as well. Councilmember Weaver spoke about the recent Parking Advisory Board meeting and making parking permits affordable for those who may not work full time. Chief Peterson shared about business owners suggesting options for full time permits for those who may job share and how the Board was working to review options to address. OTHER INFORMATION UNDER OPEN FORUM Michael Steel, 2733 Rivers Bluff Lane, thanked Mr. Nelson for his assistance with concerns in their homeowners’ association then thanked the police department for their service patrolling neighborhoods where homeowners may be gone for an extended period and how pleased they were with this unique service that included foot patrol when needed. Chief Peterson said he was pleased to be able to offer this service to help deter a potential crime and serve the public. 5. PUBLIC HEARING(S) 5.1 Continuation of Municipal Liquor Operations in the City of Anoka; Public Hearing. RES/Authorizing Continuation of Municipal Liquor Operations in the City of Anoka. RESOLUTION City Manager Greg Lee shared a background report stating the Office of the State Auditor issues a report on Municipal Liquor Operations each year which summarizes the operational results of municipal liquor operations statewide. The report provides a mechanism for City officials to make comparisons of their operations with similar size operations across the state, as well as providing information for the public and policymakers to evaluate the financial condition of the operations. As of December 31, 2022, there are 176 cities in Minnesota that operate municipal liquor establishments. Of that 176, there are 18 cities in the seven-county metro Area. Anoka currently owns and operates one store, as one of the owned and operated stores was closed in 2023. Minnesota statute 340A.602 requires that the City Council of any city with a municipal liquor operation that sustains net losses in any two of three consecutive years hold a public hearing regarding continuation of the operation. In 2022 and 2023, the City's municipal liquor operation sustained net losses due primarily to the impact of Highway 10 construction business interruptions. The decision to close the West store was March 4, 2024 (Regular) Page 4 of 11 made in early 2023. He said plans to relocate the East store and construct a new West store were underway and were being actively marketed along with a market study for the 7th and Main Street and 7th and Bunker Lake Boulevard areas. He said gross sales would far exceed any gross revenue the City has experienced to date and were looking forward to this completion. Mayor Pro Tem Scott opened the public hearing at 7:31 p.m. Being no comments Mayor Pro Tem Scott closed the public hearing at 7:31 p.m. Mr. Lee noted liquor sales have benefited the City for 20 years totaling $3.8 million for golf, parks, buildings, etc. NOTE: By motion from Councilmember Weaver, which was seconded by Councilmember Skogquist, and by a unanimous vote of the Council, agenda item 9.1 was moved up on the agenda and acted upon at this point. Motion by Councilmember Wesp, seconded by Councilmember Skogquist, to adopt a resolution authorizing the continuation of municipal liquor operations in the City of Anoka. Councilmember Wesp said the Highway 10 construction was a setback for the liquor store by essentially closing access but looked forward to its continuation with a relocated store. Upon a roll call vote: Mayor Pro Tem Scott, Councilmembers Skogquist, Weaver, and Wesp voted in favor. Motion carried. 6. CONSENT AGENDA Motion by Councilmember Weaver, seconded by Councilmember Wesp, 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 Pro Tem Scott, Councilmembers Skogquist, Weaver, and Wesp voted in favor. Motion carried. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS None. 8. PETITIONS, REQUESTS AND COMMUNICATION March 4, 2024 (Regular) Page 5 of 11 None. 9. ORDINANCES AND RESOLUTIONS 9.1 RES/Authorizing Continuation of Municipal Liquor Operations in the City of Anoka. ACTED UPON AFTER PUBLIC HEARING 9.2 RES/West Rum River Trail – Phase I; Approve Bids and Award a Construction Contract. RESOLUTION Public Services Administrator Lisa LaCasse shared a background report stating the West Rum River Trail – Phase I Project (formerly known as the Riverwalk) is located along the Ferry Street Corridor and frames the west entrance into the City of Anoka. The project includes the construction of approximately 1,800 linear feet of meandering trail on the west bank of the Rum River, a large block retaining wall, temporary interpretive signs (amphitheater, Giddings Gardens & Stone House), pedestal for displaying the Iron Jack pumpkin, and landscaping improvements. This trail project will hopefully become the catalyst for future construction phases and grant funding opportunities for the comprehensive trail project along the west bank of the Rum River. Once complete, the West Rum River Trail will bring pedestrians away from Ferry Street at the Bonnell Overlook and allow them to enjoy views of the dam and Rum River as they walk, roll, or stroll south to cross the Mississippi River Bridge or enter into Peninsula Point Park. In June of 2023, staff entered into a preliminary contract with MN DNR for the Local Trails Connection Grant program to encumber $200,000 of funds for this project. The DNR contract is not fully executed until all of the required permits have been obtained from the coordinating agencies. To date, we are still waiting on permits from the Lower Rum River Watershed Management Organization and MN Department of Transportation. Authorization from all permitting agencies is anticipated to be received by the middle of March 2024. On January 2, 2024, City Council adopted a resolution approving the plans and specifications, authorizing the advertisement for bid, and setting the bid date for the West Rum River Trail – Phase I Project. On January 16, 2024 the city was granted an extension for the grant expiration from the DNR. The extension of the grant expiration will allow the construction timeline to include the entire 2024 construction season. Grant funds will expire on Dec 31, 2024. Construction is expected to take 8 – 10 weeks. Substantial completion is anticipated for September 2024 well ahead of the new grant expiration date. She said the bidding structure was set up with a base bid and five alternates and that staff was requesting that City Council identify its preferred funding source for an internal loan for the remaining portion of the project cost acknowledging that the payment would be included as a 1% percent increase to the general fund levy for the next 4 March 4, 2024 (Regular) Page 6 of 11 years. Staff is requesting that City Council accepts the recommendation of the Park and Recreation Advisory Board to proceed with the West Rum River Trail Phase 1 Project base bid and all five alternatives. This action requires that Council adopts the proposed resolution to approve bids and award a construction contract to Sunram Construction Inc. If Council does not wish to proceed with staff’s recommendation, it will be necessary to amend the proposed resolution by removing the appropriate ‘Where As’ statement regarding the bid alternate(s) to be eliminated from the project. This should be documented in the motion to adopt the resolution West Rum River Trail Phase I Project; Approve Bids and Award Construction Contract. Councilmember Weaver supporting doing all five alternates with this project to avoid having to remove substandard material later and making this much more attractive and appealing to those using the trail. He said access to the stone house was vital and hoped for an alternative plan to get back to the island and retain the history of the area. Councilmember Skogquist agreed about the importance of retaining this area and corridor and likened it to a down payment as it needs to be done correctly and provide access to the stone house and provide a way to return. He asked about use of current funding from park dedication for portions but said they will figure out the remaining funding needed and supported using the reserve portion of the 1% fund and continue to add to it to retain the amount at $100,000 annually. Motion by Councilmember Skogquist, seconded by Councilmember Weaver, to adopt a resolution as presented through the second funding option regarding the internal fund loan and payback. Mayor Pro Tem Scott said this was a great project that would be difficult to scale back as it was in the middle of the downtown area and important to residents and visitors alike. Upon a roll call vote: Mayor Pro Tem Scott, Councilmembers Skogquist, Weaver, and Wesp voted in favor. Motion carried. Ms. LaCasse clarified the funding source as the Anoka Municipal Utility Reserve Fund. Councilmember Skogquist asked about the timetable for project construction and completion. Ms. LaCasse responded staff was working through permitting from the Watershed and MnDOT and hoped to proceed with authorization likely around May 1 followed by 8-10 weeks of construction. Councilmember Weaver said the potential for funding for the dam project and the maintenance platform walkway and connection to the dam will provide a great addition to this area and thanked staff for their work. March 4, 2024 (Regular) Page 7 of 11 9.3 RES/Comprehensive Plan Amendment, Future Land Use; North of Monroe Street Between 5th Avenue and 7th Avenue. RESOLUTION Senior City Planner Clark Palmer shared a background report stating in December 2021, the City Council adopted the 2040 Comprehensive Plan including the Future Land Use Map. The subject area north of Monroe Street between 5th Avenue and 7th Avenue was re-guided from Low-Density Residential to Mixed Use. However, subsequent to adoption of the 2040 Comprehensive Plan, and after public input and discussion, the rezoning of this area from R-1 Low Density Residential to Main Street Mixed Use was not approved, with exception of 639 Monroe Street which is part of the 7th Avenue and Main Street redevelopment site. Currently the zoning and future land use map are inconsistent with each other. Affected properties include: 511 Monroe Street, 523 Monroe Street, 533 Monroe Street, 535 Monroe Street, 541 Monroe Street, 609 Monroe Street, 613 Monroe Street, 631 Monroe Street, 1900 6th Avenue, 1903 6th Avenue, 1908 6th Avenue, and 1909 6th Avenue. The Planning Commission held a public hearing on the proposed amendment at their regular meeting on February 21, 2024. No public input was received at the public hearing. The Planning Commission recommended approval of the proposed amendment. Councilmember Weaver said with the changes on Monroe Street if we make changes to the 1919/650/657 properties and change zoning will the Comprehensive Plan have to be reviewed again. Mr. Palmer said it would if the properties were rezoned to something other than mixed use unless we make simple amendments with the rezoning. Motion by Councilmember Skogquist, seconded by Councilmember Weaver, to adopt a resolution approving a 2040 Comprehensive Plan Amendment future land use map north of Monroe Street between 5th Avenue and 7th Avenue. Upon a roll call vote: Mayor Pro Tem Scott, Councilmembers Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.4 RES/Comprehensive Plan Amendment, Future Land Use; South of Jackson Street Between 7th Avenue and 8½ Avenue. RESOLUTION Mr. Palmer shared a background report In December 2021, the City Council adopted the 2040 Comprehensive Plan including the Future Land Use Map. The subject area south of Jackson Street between 7th Avenue and 8½ Avenue was re- guided from Medium-Density Residential to Mixed Use. However, subsequent to adoption of the 2040 Comprehensive Plan, and after public input and discussion, the rezoning of this area from R-2 Medium Density Residential to Main Street March 4, 2024 (Regular) Page 8 of 11 Mixed Use was not approved. Currently the zoning and future land use map are inconsistent with each other and affected properties include 718 Jackson Street, 724 Jackson Street, 730 Jackson Street, 734 Jackson Street, 744 Jackson Street, 748 Jackson Street, 754 Jackson Street, 760 Jackson Street, 800 Jackson Street, and 804 Jackson Street. The Planning Commission held a public hearing on the proposed amendment at their regular meeting on February 21, 2024. No public input was received at the public hearing. The Planning Commission recommended approval of the proposed amendment. Motion by Councilmember Weaver, seconded by Councilmember Wesp, to adopt a resolution approving a 2040 Comprehensive Plan amendment future land use map south of Jackson Street between 7th Avenue and 8½ Avenue. Upon a roll call vote: Mayor Pro Tem Scott, Councilmembers Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.5 ORD/Zoning Text Amendments; Amending Chapter 78 – Zoning, Article V – District Regulations, Division 3 – Business Districts and Division 4 – Industrial Districts. 1st Reading Mr. Palmer shared a background report one of the goals of the Planning Commission in 2024 is to review the City’s use regulations in each zoning district. The Planning Commission is proposing a number of zoning text amendments concerning car washes and self-storage building uses. Freestanding car washes as a principal use of property are currently allowed in the B-1 Highway Business and B-6 Neighborhood Commercial zoning districts as a conditional use. The Planning Commission proposes to remove this use from those zoning districts. This would result in freestanding car washes being prohibited throughout the City. Car washes as an accessory use, such as part of a service station, will still be allowed. Indoor self-storage facility is currently an allowed use in the B-1 Highway Business zoning district as a conditional use. “Indoor self-storage facility” means a climate-controlled building with controlled access that contains varying sizes of internally accessible individual, compartmentalized, and stalls or lockers for the storage of tenants' goods or wares. The Planning Commission proposes to remove indoor self-storage as an allowed use in the B-1 and add it as an allowed use in the M-3 Light Industrial/Commercial Overlay Mini-storage (outdoor self-storage) is currently an allowed use in the M-3 Light Industrial/Commercial Overlay zoning district as a conditional use. “Outdoor self-storage facility” means a building or group of buildings in a controlled access and fenced facility that contain varying sizes of externally accessible individual, compartmentalized, and stalls or lockers for the storage of tenants' goods or wares. Planning Commission proposes to remove “mini-storage facilities” as an allowed use in the M-3 and replace it with indoor self-storage facility. In summary, the following changes are proposed: Remove “Car washes” as an allowed use in the B-1 and B-6 zoning districts. The Planning March 4, 2024 (Regular) Page 9 of 11 Commission held a public hearing on the proposed amendments at their regular meeting on February 21, 2024. No public input was received at the public hearing. The Planning Commission recommended approval of the proposed amendments. Councilmember Skogquist said he had no concerns with eliminating mini storage uses and car washes as proposed as they seem reasonable. He shared concerns about indoor self-storage facilities as a conditional use on M-3 zoned areas but in B-1 areas not as much. He commented about other potential areas and suggested people who utilize storage don’t have enough space on their own property which is especially prevalent because of the small lots in Anoka and said while he would not want them everywhere they should be allowed through a conditional use and if appropriately spaced from others. He said they provide a good tax base and were needed and may be appropriate in certain areas such as North Street. Mr. Palmer shared current indoor self-storage conditional use standards and minimum lot size and noted if Council wanted to keep this use in the B-1 area language could be added to expand the list of conditions, proximity, etc. Councilmember Weaver suggested further review of this potential at an upcoming worksession where maps could outline potential additional locations. Mr. Palmer suggested continuing with first reading of the ordinance but remove reference to indoor self-storage and retain carwashes. Motion by Councilmember Skogquist, seconded by Councilmember Weaver, to hold first reading of an ordinance amending Chapter 78 – Zoning, Article V – District Regulations, Division 3 – Business Districts, Division 4 – Industrial Districts, Section 78-265 (B-1), Section 78-270 (B-6), Section 78-291 (M-3) removing reference to indoor self-storage for further review at a future worksession. Upon a roll call vote: Mayor Pro Tem Scott Councilmembers Skogquist, Weaver, and Wesp voted in favor. Motion carried. 10. UNFINISHED BUSINESS None. 11. NEW BUSINESS None. 12. UPDATES AND REPORTS March 4, 2024 (Regular) Page 10 of 11 12.1 MMPA Year in Review. Councilmember Skogquist provided and update for the Minnesota Municipal Power Agency Board (MMPA) year in review that included rates 12% lower than the competitive benchmark, Moody’s upgraded bond rating from A1 to Aa3, Hometown BioEnergy renewable natural gas project placed in service, net income of $31.6 million, unrestricted cash increased by $35.4 million, generated carbon free energy equal to 44% of energy needs, 2024 budget average rate to members equal to 2023, and January and February 2024 rates lower than budget. 12.2 Tentative Agenda(s). The Council reviewed the tentative agendas of the upcoming Council meetings. 12.3 Staff and Council Input. Councilmember Weaver requested an update on the Mississippi River dredging project. Mr. Nelson shared progress on the project that included the submitted environment assessment worksheet and submittal to the DNR this week for comment periods of 30 days and possible permitting by mid-April. Mr. Lee noted that due to restriction of spawning fish the soonest work could begin will be June 16. Councilmember Wesp inquired about the recent citizen petition on single-hauling. Mr. Lee responded the question has not been drafted yet but will be included on the November ballot. City Attorney Scott Baumgartner said staff will meet with the citizens soon to draft the final question for the ballot that meets the group’s intent and Statute and share with Council for approval. Councilmember Weaver requested polling place information be posted and shared online for the March 5 presential primary. ADJOURNMENT Councilmember Wesp made a motion to adjourn the Regular Council meeting. Councilmember Weaver seconded the motion. Upon a roll call vote: Mayor Pro Tem Scott Councilmembers Skogquist, and Wesp voted in favor. Motion carried. Time of adjournment: 8:34 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. March 4, 2024 (Regular) Page 11 of 11 Approval Attestation: Amy T. Oehlers, City Clerk