Anoka City Council

May 28, 2024 (Worksession) Page 1 of 10 WORKSESSION OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL WORKSESSION ROOM MAY 28, 2024 1. CALL TO ORDER Mayor Pro Tem Scott called the worksession meeting to order at 5:00 p.m. 2. ROLL CALL Present at roll call: Mayor Pro Tem Scott, Councilmembers Skogquist, Weaver, and Wesp (attending remotely from 4252 Parkview Lane, Anoka). Staff present: City Manager Greg Lee; Finance Director Brenda Springer; Assistant Finance Director Liz Douglas; Police Captain Andy Youngquist; Public Works Director Mark Anderson; Public Services Administrator Lisa LaCasse; Utility Director Del Vancura; Anoka Municipal Utility Staff Warren Magnus, Neil Larson, Paula Houts; Public Services Staff Jon Holmes and Pete Klingenberg; Green Haven Staff Mike Brual and Brandon Howard. Absent: Mayor Rice. 3. COUNCIL BUSINESS and/or DISCUSSION ITEMS 3.1 Discussion; Anoka Halloween Leadership Introduction and Events Update. City Manager Greg Lee introduced Anoka Halloween Leadership to share event updates with the City Council. Breeaynna Olberding, Anoka Halloween President, shared planned events for Anoka Halloween that included Amazing Race Anoka, Giant Pumpkin Weigh Off, and others. She shared about changing the Orange Tie Ball to a mid-year community event in 2025 that would include unveiling of the button design and merchandise. Angie Eaton, Anoka Halloween Vice President, shared their goal of improved communications with their partners such as the City and thanked them for their support. She said they continue to attract more volunteers each month and encouraged anyone to become involved. Councilmember Skogquist inquired about current road construction south of Highway 10 in the Franklin School area and its effects on the Grand Day Parade. Police Captain Andy Youngquist said staff has met with Anoka Halloween and believe construction impacts will be minimal. May 28, 2024 (Worksession) Page 2 of 10 Public Works Director Mark Anderson responded the road project will be substantially, if not fully, complete before the Grand Day Parade. Ms. Easton also noted they intended to have more shuttles available this year for the parade. The Council thanked Anoka Halloween for their work. Item 3.3 was heard at this point in the agenda. 3.2 Discussion; Capital Improvement Plan (CIP) and Equipment Replacement Plan (ERP). Finance Director Brenda Springer shared a background report stating annually the Council and staff review the five-year capital improvement plan and equipment replacement plan prior to adoption. The documents are for planning purposes and allows staff to project future funding needs based on planned capital improvement projects and equipment replacement. The plans go through 2029 and include proposed funding sources. Public Services Administrator Lisa LaCasse reviewed proposed CIP projects for the aquatic center that included flooring, paint interior walls, pump lint strainer replacement, and filter room pipe/value replacements. Councilmember Skogquist noted all aquatic center costs come from the general fund. Ms. Springer agreed these would be part of the levy and included as a new line item for consideration. Ms. LaCasse noted there used to be an aquatic center account but it since has been depleted and moved to the general fund. Councilmember Weaver asked that items be prioritized as part of the discussion. Public Works Director Mark Anderson shared proposed building CIP projects that included the Walker parking ramp joint caulking, Ms. LaCasse shared the proposed cemetery project that included preparation of Section 6, Blocks 1-3. Councilmember Weaver inquired about the percentage of full-size graves compared to cremation sites. Ms. LaCasse estimated 60% were cremation versus 40% full-size then added public assistance burials were full graves and that traditional burial was still very popular. Councilmember Skogquist supported wayfinding signage be included at the bottom of the cemetery hill to help direct visitors. May 28, 2024 (Worksession) Page 3 of 10 Councilmember Weaver inquired about ash tree replacement. Ms. LaCasse said they were waiting for full leafing to evaluate again then will do over phases. She added they have bonding funds available that don’t expire until 2027 and their goal to do in phases to taper the impact. Utility Director Del Vancura shared planned projects that included substation infrastructure repair, replace fault finders, and AMI meter replacement. Ms. Springer shared about the proposed entrance monument at East Main Street. Councilmember Weaver said he believed we budgeted for this from the project costs. Ms. Springer said that direction was discussed but did not occur and that those funds could be used for another location. Mr. Anderson suggested the monument could be placed near the Clubhouse on either City or Federal Cartridge property. Ms. Springer spoke about Green Haven Hole 15 realignment if redevelopment occurs and 2025 street maintenance projects that would include crack sealing and fog sealing, noting no roads have been selected at this time. Councilmember Skogquist asked about new technology that included spraying a layer of asphalt that is occurring in Coon Rapids. Streets Supervisor Jon Holmes said some cities were experimenting to see if this technology works better than fog sealing. Ms. Springer referred to the Castle Field flashing yellow arrow signal. Mr. Lee said this was a request from a resident submitted two years ago but it appears to be resolved as part of the Highway 10 project and could be removed because eventually Anoka County would likely do the project and the City pay a portion. Councilmember Skogquist asked if the County has reprogrammed some lights now that Highway 10 is complete. Mr. Anderson said he believed that timing work had been completed but would follow up. Mr. Anderson shared about the 2025 SRP projects for 5th and 6th Avenues and Jackson Street in the amount of $1.27 million. Councilmember Skogquist noted the block between 6th and 7th Avenues did not have much vegetation and could be improved with landscaping. Ms. LaCasse outlined the second phase of the Rum River Dam modification project and their hope to get bonding funds to do the feasibility study and resubmit with construction plans with identified funding. May 28, 2024 (Worksession) Page 4 of 10 Councilmember Weaver said the project was included in the bonding bill that didn’t pass and that Representative Stephenson will continue to work on this project. Councilmember Skogquist said he hoped the project would be part of 2025 and that its fortunate that we’re doing the feasibility study to be ready as it will allow us to apply for other funds for geothermal, fish ladders, and a trail project. Councilmember Weaver said since we’re not receiving the $1.5 million now it may result in a larger amount next year and was pleased that we’ll be ready. Ms. LaCasse said as we flush this out it will help us be better for grant applications and allow us to identify matched funding too which will be good and set us up well for consideration. Councilmember Weaver said we need to inform Anoka County how important their funding support will be as well. Mr. Lee reviewed the 2025 mill and overlay project from streets constructed between 2000 and 2004. Councilmember Weaver stated we will need to do an assessment program for this and include restoration funds for any future projects to reimburse for wear and tear on secondary roads. Ms. LaCasse said the Anoka Agricultural site was included as a placeholder should the master plan for the area north of Harrison Street moves forward. Mr. Lee shared about the proposed Highway 47/BNSF grade separation project that includes planning and engineering of $50,000 and how staff would be applying for more grants. Mr. Anderson outlined the SSIP McKinley Street project in 2026 and their hope for grant proceeds as well. Councilmember Skogquist spoke about using State aid funds for this and if that was part of the 2026 estimate as we need to be smart about the use of State aid funds. Ms. Springer said staff was working to obtain grant funds to avoid using State aid funds where possible. Mr. Lee explained advanced encumbering and how cities were actually rewarded when done because we can do more projects now in today’s dollars and how the State aid accounts should in fact be negative because it means the dollars are being used to the best of its ability. May 28, 2024 (Worksession) Page 5 of 10 Green Haven staff Mike Brual outlined the proposed bridal suite at Green Haven to help with wedding bookings and golf course feature assessment absent any golf course renovation project. He outlined life expectancy of sand traps and how the bunkers haven’t been addressed in 20 years or likely longer and should be to include drainage too. Mr. Anderson shared about the proposed ingress/egress to the HRRD ramp as well as restrooms. Councilmember Weaver noted the area was designed for a snow dump and what the alternate plan will be. Mr. Holmes said with equipment changes they already have found an alternate location that works better. Councilmember Weaver supported permanent restrooms since temporary restrooms were $100,000 anyway. Ms. LaCasse agreed but noted temporary restrooms could be relocated within the City to support large events or use, pumped or direct-plumbed, and could be a benefit if sold in the future. Ms. LaCasse reviewed the need for replacement funds for replantings from ash tree removal, Rum River trail rail crossing, Stone House restoration project, trail system repairs and preventative maintenance, upper Rum Riverbank stabilization, and professional services for grant writing. Councilmember Skogquist asked about current staffing levels and potential savings to hire temporary contractors to address park maintenance concerns. Ms. LaCasse said they have done that in the past and could can explore a lawncare service then noted it has been difficult to hire seasonal staff. Mayor Pro Tem Scott spoke about ways to attract more seasonal staff in order to be able to meet the residents’ expectations of parks and trails. Ms. LaCasse noted seasonal staff will start soon once school ends and that while the City currently paid $17 per hour the trend was to not work overtime or weekends and that many try to negotiate shorter work weeks. Ms. LaCasse reviewed proposed multi-park improvements in detail that included several parks and projects. Discussion was held regarding different needs in parks. Mr. Anderson explained the need for a new Police Department A/C chiller to hopefully avoid an emergency repair. Captain Youngquist spoke about relocating staff to another side of the area in the meantime. Mr. Anderson outlined the study for 7th Avenue/Highway 47 project to increase sewer capacity in the area as part of the reconstruction project of 38th Avenue and May 28, 2024 (Worksession) Page 6 of 10 CSAH 7 and how it would require 38th Avenue lift station to be relocated then reviewed proposed trunk storm sewer improvement projects. He outlined proposed water treatment plant exterior repairs for Wells 4 and 5, repainting of Water Tower 2, and recommended postponing new Well 9. Ms. LaCasse outlined proposed boulevard landscape maintenance projects then reviewed proposed equipment projects such as irrigation system automation for the cemetery. Mr. Vancura shared the need for one single bucket truck for the electric utility as well as a utility pole trailer. Mr. Brual shared about the request for a sprayer for Green Haven as it was showing signs of corrosion, a greens aerator, core harvester, greens mower, irrigation controls, and tee box signs. Councilmember Weaver asked if the funds for these requests totaling $250,000 would come from golf maintenance or the general fund. He said he supported the requests but stressed the need to have this enterprise fund cover the costs through appropriate revenue. Ms. Springer explained the funding would come from the golf maintenance fund but was transferred from general to golf. Mr. Holmes outlined his request for a zero-turn mower for the cemetery and wide area mower. Captain Youngquist share the request for annual TASER unit replacements and ammunition. He noted Federal Cartridge is a great partner but the ammunition costs are fixed. Captain Youngquist outlined proposed IPS camera additions and replacements and the intrepid communications platform. Discussion was held on potential camera locations. Mr. Holmes reviewed the request for a ¾ ton pick-up with plow, skid steer with bucket, tracked skid steer, painter/striper, and replacement front-mounted broom. Ms. Springer explained the next steps in the process and how most items will be included as part of the first budget meeting in August for further review and final direction from Council. 3.3 Discussion; Advanced Metering Infrastructure (AMI) Solutions. Utility Director Del Vancura introduced the committee who have been working on the Advanced Metering Infrastructure (AMI) project then shared a background report stating from 2005 to 2008, Anoka Municipal Utility moved from mechanical or electromechanical meters to Automated Meter Reading (AMR) devices. As the meters have aged or failed, they have been replaced ad-hoc from meters purchased for inventory. Anoka Municipal Utility (AMU) recognizes that May 28, 2024 (Worksession) Page 7 of 10 the expected life of an AMR meter is about 20 years and has scheduled for a large-scale meter replacement to begin in 2025. AMU has planned to take this opportunity to invest in technology that will give vital load management, leak detection, and outage information, and allow for better service to customers. He explained the differences between AMR versus AMI then reviewed the benefits and drivers of AMI that included meter to cash benefits, call center efficiencies, improved revenue integrity, and others. He said in 2023 the Council approved Capital Improvement Project #EU24-01, beginning with 2024 professional services costs for an Advanced Metering Infrastructure (AMI) and smart utility services consultant and cost of service and rate study. AMU selected Vass Solutions, headquartered in Alpharetta, Georgia, to assist in the development and implementation of this project. Vass Solutions was selected based on extensive industry experience. Vass Solutions has recently worked with Elk River and Buffalo Municipal Utilities in their AMI transitions. Staff will work with Ehlers and Associates on a cost of service and rate study to coincide with the AMI project. The City was not a recipient of grant funding that was included in the project plans in 2023. The Electric Fund does have existing and projected reserves to cover the project costs in full. The Water and Sewer portion of this project could then be spread out over time to work within their cash flow needs. Without implementation of this project, replacement of approximately 11,000 meters over the next 2-3 years would still occur. The estimated cost with labor for this is around $1,600,000 for electric meters alone. Water meters are more difficult to mobilize than electric, since they are located indoors, and could take a considerable amount of time and resources. He shared the total projected project would be $4,865,000 and this project could be funded from the current year’s electric revenues and is not expected to require any use of fund balance. AMU Paula Houts shared about the need to replace the current electric meters that will total $1.5 million and if replaced with the same meter type would result in no additional benefits. She stated the water meter replacement cost was $1.3 million then noted those meters were inside homes and were more labor intensive due to scheduling and that they were hoping with this process only one would need to be changed. She added the cost to remain with AMR technology totals $2.8 million regardless. Mr. Vancura explained we were currently losing 10 meters per week due to failures and with storms likely approach 30-40 per week and that while they were replaced with AMR meters currently in stock costs continue to rise for this meter type as well. Jeff Evans, Vass Solutions, provided an overview of AMI type meters and the vendor selection and timeline. He explained the customer portal and how customers can view detailed water and electric usage, obtain a better understanding of the scope of an outage, provide improved customer service through better automation and communication, and other benefits. May 28, 2024 (Worksession) Page 8 of 10 Councilmember Weaver asked if more staffing would be needed to monitor the additional data and technology and if bids or RFPs would be required. Mr. Vancura said he didn’t anticipate needing additional staff as current staff can would be repurposed from their current drive-by metering. Mr. Lee explained Vass Solutions was the vendor selected to help identify the scope and process for the best solution, after which an RFP would be sent for the actual AMI meters. Councilmember Scott noted real time power outage notification could be shared with customers which would be beneficial when away from their homes. Councilmember Weaver asked if this technology was the best or if better technology was coming and this would be outdated quickly. Mr. Evans said their work was to understand the strategic drivers and what Anoka needs and how they will work to identify only the best technology then added because the equipment is all over the air programmable updates can occur for firmware and software easily. He explained two-phase approach that would include first a smaller area to see how it works before full roll-out. Mayor Pro Tem Scott inquired about the life span of the meters. Mr. Evans estimated a 15-20-year lifespan for both the water and electric utility. Councilmember Skogquist asked why both were being considered for replacement at this time. Mr. Evans explained the benefits of replacing both meters as they include alerts for temperature drops so we can alert customers prior to their pipes freezing. Councilmember Weaver asked how both meters work together as it is very beneficial when staff contacts customers to let them know of high water usage and help identify a possible leak. Mr. Evans explained how by doing these both at the same time will result in networked meters and provide that feedback even quicker. Mr. Anderson said the current water meters were installed 15 years ago and that staff was starting to see failures and while they hoped they would last 20 years and that now was the time to start the process to be ready for replacement in 2026. Councilmember Weaver asked if they had good results from new electric meters outside in cold weather. Mr. Evans said good performance continues and the meters were rated industry certified to continue to operate in very low temperatures. Councilmember Skogquist asked how information is received in areas where there is low cell coverage. Mr. Evans said the RFP would include requirements for 99.5% data received which would likely include redundant communication paths. May 28, 2024 (Worksession) Page 9 of 10 Mr. Evans further outlined communication considerations, typical multipoint architecture, potential AMI vendors and the need for compatibility to retrofit the existing water meters, Mayor Pro Tem Scott asked if this technology posed any risk from bad actors. Mr. Evans explained the communication encryption and monitoring included and while nothing was foolproof much would be built in and that breaches are not a significant issue industry-wide. Councilmember Skogquist asked if we would leave the meter but replace the card. Mr. Evans explained most meters would be replaced. Mr. Anderson shared that approximately 2% of customers will not allow access to their homes to replace meters and have to adjust the water rates to encourage access instead. Councilmember Weaver asked about licensed versus unlicensed vendors and the benefits of working with both electric and water meters. Mr. Evans explained the advantages and disadvantages for technology and how most vendors build their own meters and how any module would need to be compatible. He noted all were mature vendors and proven in AMI work. He outlined the utility expectations whether staff manages day to day operations or if the work is done by the vendor and how that cost would be included in the RFP then shared the timeline and next steps for Phase 1 installation in May 2025 and final completion in December. Assistant Finance Director Liz Douglas outlined the total project costs of $4.8 million but noted there would be a $2.8 million cost to replace meters regardless. She said the City budgeted for professional services work in 2024 and outlined potential budgeting if approved through 2026 which would be supported by current year electric revenues with recoverable water/sewer costs of $1.8 million then shared the five-year capital plan cash flows. Councilmember Weaver asked what happens to the replaced meters. Mr. Vancura said they likely will try to sell them but noted we were one of about 20% of cities not on AMI. He said he hoped this project would benefit both water and electric utilities for the next 20 years. Councilmember Skogquist said we will be able to be more proactive regarding leakage issues in system. Councilmember Weaver asked if the project will include new electric rates. Ms. Douglas confirmed the rate study will likely result in rate growth. Discussion was held on broken meters and how we will be able to audit systems and help with power theft that could be occurring. May 28, 2024 (Worksession) Page 10 of 10 Council supported the Advanced Metering Infrastructure (AMI) replacement process as presented then stressed the need to be proactive in communication about the project and educate residents about any new costs and how meter replacement would occur. UPDATES/REPORTS/COUNCIL SUGGESTIONS FOR TENTATIVE FUTURE AGENDA ITEMS None. 4. ADJOURNMENT Motion by Councilmember Skogquist, seconded by Councilmember Weaver to adjourn the Worksession at 8:04 p.m. Motion carried. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk