Anoka City Council

August 29, 2024 (Special) Page 1 of 10 SPECIAL MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS AUGUST 29, 2024 1. CALL TO ORDER Mayor Rice called the special meeting of the City Council to order at 5:30 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; Community Development Director Doug Borglund; Public Works Director Mark Anderson; Assistant City Engineer Ben Nelson; City Attorney Scott Baumgartner; and Utility Director Del Vancura. Absent at roll call: None. 3. COUNCIL BUSINESS AND/OR DISCUSSION ITEMS 3.1 RES/Consideration of Purchase Agreement; 649 Garfield Street, L.H. Bolduc. RESOLUTION Community Development Director Doug Borglund shared a background report stating at the direction of the City Council, staff has continued to pursue acquisition of the subject property over the last 3 years. The property owner is a willing selling. The subject property is an occupied industrial property. The City was presented with a proposal from the seller and many conversations. The seller is open to two different options to sell: Option 1: Traditional Purchase Agreement and Closing with a rent back agreement for up to 9 Months; or Option 2: Purchase Agreement/Contract-For-Deed Approach as outlined. Purchase Price is $2,300,000.00. Staff is recommending Option 2 as stated above and the draft purchase agreement will reflect Option 2. Councilmember Weaver asked about the funding structure and the potential for bonding. Mr. Borglund outlined the funding that would be split over two years from Urban Redevelopment, Electric, and Building Capital funds for $1.273 million and the same for 2025. Councilmember Weaver explained the funds came about as a result of the demolition of a very large industrial building which resulted in WAC/SAC credits and how they were used for another former restaurant site in Anoka. He said this was a good result of these funds and not a result of taxpayer funds. August 29, 2024 (Special) Page 2 of 10 City Manager Greg Lee said this will be the last property that Garfield Street will be serving and that Council may want to consider not continuing the road and save the $1.8 million in road reconstruction costs, future maintenance, and eliminate a road going through the golf course. Councilmember Weaver spoke about the last appraisal of $3.3 million and how should this action go through Council should direct staff to market this site and get it sold then work on platting with the elimination of Garfield Street. He said police and fire would have a public safety trail for access and that this action would take care of other issues and brings forward many wins. Mr. Lee said if the road was eliminated it would also result in an additional four townhome lots as well. Councilmember Scott agreed there are many positives to this action that included reduced road maintenance, $1.8 million saved now and maintenance going forward, marketability for the remaining properties and the result of four additional lots. He said the potential purchase is considerable at $2.3 million which is a fair amount over assessed value but the result would be a higher future in this area. Councilmember Wesp said the nearby American Cooperative Club residents have invested in the area through this development and if we don’t do this the costs will increase. Motion by Councilmember Wesp, seconded by Councilmember Weaver, to adopt a resolution approving purchase of real property, 649 Garfield Street/PID: 36-32- 25-34-0007. Councilmember Weaver encouraged staff to begin marketing the acreage as interest rates are predicted to decrease which could result in a great project for next spring. Upon a roll call vote: Mayor Rice, Councilmembers Weaver and Wesp voted in favor. Councilmembers Scott and Skogquist voted nay. Motion carried. 3.2 RES/Approving Purchase Agreement; City’s Purchase of 517 Johnson Street. RESOLUTION Mr. Borglund shared a background report stating the subject property has been discussed by the City Council in the past. The City has been waiting for a willing seller. The City now has the opportunity to acquire the subject property at the price of $247,600.00 or at tax assessed value. The property owner is a willing selling. The subject property is a vacant/unoccupied commercial building used for storage. The seller has and the City has agreed on a price of $247,600.00, which is August 29, 2024 (Special) Page 3 of 10 the current assessed value contingent upon final approval of the purchase agreement by the City Council. He shared the schedule for closing on September 30, 2024. Councilmember Scott asked if any other properties need to be acquired for the remainder of the block. Mr. Borglund said there is one neighboring property to the west but the property owner is not quite ready to sell but has expressed interest in the future. Councilmember Scott commented about the neighborhood meetings held in the Transit Oriented Development (TOD) area regarding potential development where they received lots of feedback. He said he wanted to make sure this could ultimately be a full site we could propose to a developer. Councilmember Weaver asked if staff has contacted the lead he provided. Mr. Borglund said they have as well as other developers who know the City’s proposed plans and that an open house is also being scheduled. Mayor Rice said this action will result in control of the entire block and that just south of the area is the parking lot owned by the City along with 520 Johnson St. Mr. Borglund referred to the area between Johnson Street and the track along with the owner of 2820 5th Ave who may be open to relocating. He said there are dollars available through grants for biofuels too that may result in more interest from other businesses then referred to Minnesota Towing of 2720 6th Ave, 2804 5th Ave. He added Gramercy Development had a purchase agreement but the project cost got too expensive. Mayor Rice asked about streets in the area and a builder not wanting to conform and creating their own design because we don’t have a lot of infrastructure now. Mr. Borglund said the area is not fully urbanized so that could be a possibility and the TOD drawings show Buchanan Street to 5th Avenue eliminated the western portion of Johnson Street, cul-de-sacs, and other concepts. Motion by Councilmember Scott, seconded by Councilmember Skogquist, to adopt a resolution approving purchase of real property, 517 Johnson Street. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, and Weaver voted in favor. Councilmember Wesp voted nay. Motion carried. Mayor Rice noted sometimes these concepts are three years old or more but are great opportunities for the City then referred to the generous offer by the property owner to allow the City to control the block and work to develop the area. Councilmember Weaver asked staff to talk to property owners at 517 Johnson St and to look at the property at Green Haven property. August 29, 2024 (Special) Page 4 of 10 3.3 Proposed Contract Relating to Organized Solid Waste and Yardwaste Collection. Mr. Lee shared a background report stating at your meeting on August 19 the Council voted to reject the proposal that was submitted for Organized Solid Waste and Yardwaste Collection Services. Staff was directed to contact the haulers and provide them an opportunity to resubmit the proposed contract with revised pricing that is commensurate with other organized collection contract pricing. It was directed that they resubmit revised pricing no later than August 26, 2024 at noon. On August 20 staff contacted the haulers by email and by phone and relayed this information to them and also inquired if they wanted the City to schedule a negotiation meeting for August 22 so that they could meet and confer between one another to discuss submitting revised pricing. The haulers are only allowed to meet with each other to discuss the negotiations and proposed contract through a meeting set up by the City and held at City Hall. Staff received several automatic email replies from haulers who were out of the office until August 26, 2024 and did not receive many replies regarding holding a meeting on August 22. He said they typically have held meetings every Thursday but the haulers did not want to meet on August 15 because they had not been given any feedback from the Council and they felt there was no reason to meet. Since the Council provided direction for the haulers at the August 19 meeting, staff scheduled a hauler negotiation meeting for August 22. One individual, Dave Wiggins of Ace attended in person, a representative from Republic attended via Zoom as well as a representative from Curbside. Mr. Wiggins said that none of the decision-makers for the other companies were able to participate in the August 22 meeting and he stressed that the haulers wanted an opportunity to meet and discuss a revised pricing for Council presentation but needed more time to prepare as many were out of the office until August 29. He also stressed that the haulers would like to know from Council what pricing would be acceptable. Mr. Lee explained that the Council is requesting pricing that is commensurate with other organized hauling contracts. Councilmember Skogquist thanked staff for the work and energy put into this project which was important as the goal now is to get the best data for the voters then asked when this draft contract came forward for the first time. City Attorney Scott Baumgartner said the draft came forward late 2023. Councilmember Skogquist said work has been done for almost a year and the haulers provided pricing which hasn’t changed over the last month. He said we rejected the pricing because we saw others pricing and that his opinion hasn’t changed and that he supported moving forward because otherwise it would not be advantageous to the residents. Mr. Lee said the haulers believe their submittal is very competitive and noted they are aware of other bids in nearby cities and cautioned that sometimes through RFPs we may not be aware of full bidding which could be a problem later on. August 29, 2024 (Special) Page 5 of 10 Councilmember Scott said overall the negotiations have been positive and that we have worked with the haulers for a long time but the price piece is a seven-year contract which is difficult to budget for and that has a value in itself. He said he didn’t believe that value was reflected in the current pricing and that it would be prudent to obtain an open market bid to see if the bid was competitive. Councilmember Skogquist clarified if Council should reaffirm the last direction. Mr. Baumgartner explained the action is consideration of a contract or direct staff to continue negotiating with the haulers but noted the next item could play into this item as well. He said the action is does the Council want to contract with the haulers or see what the open market offers and that declining this proposal would let the haulers know the City is not interested in negotiating any longer. Mr. Lee said a third option was in place to hold until Council decides on an RFP then compare that with the current haulers pricing, adding there is a risk of having a new hauler for entire City which may not be worth the risk from the known haulers. Mr. Baumgartner explained the action to trigger that negotiations have broken down is that the City can’t reach an agreement and then RFPs can be conducted. Councilmember Scott said this question is going to the ballot in November and that we need to provide the most information to the voters, adding the biggest question is service and price. Motion by Councilmember Scott, seconded by Councilmember Skogquist, to reject the proposed contract for organized solid waste and yardwaste collection. Councilmember Wesp said this action will be bad for the haulers and that they have asked to meet with us but now we’re telling them their offer isn’t good enough. He said this is not an economical way to negotiate especially since they have come to the table and said he won’t support the motion. Councilmember Weaver stated he was not supportive of government-organized hauling but supported decreasing the number of trucks through attrition. He said we’re going after seven licensed haulers so the reduction of trucks is not real but if this passes he will support it for the voters but if not we won’t have a single hauler because there will still be a residential truck, recycling truck, waste truck, and seven others for commercial and apartments hauling. He shared his biggest concern was the increased number of employees that will be required should this pass. Councilmember Skogquist said he didn’t disagree but said we have to start somewhere and this makes the most sense and would be supportive of the motion. He said government-managed hauling has four residential haulers already but not price controls in place and we can’t get a better deal so there is less and less August 29, 2024 (Special) Page 6 of 10 competition. He said we could use bargaining to get better pricing but many aren’t allowed in the community and that it is important to test this process. Councilmember Weaver said price control is a scary term for private industry and asked if rent and grocery price control is next, adding this is not the American way. Councilmember Scott said we have price control already in recycling and noted the question will be on the November ballot and that there doesn’t seem to be concerns with organized recycling as there is with garbage and that he would like a consistent service, either an all open system or an all organized system, but that he would prefer an organized system for future services. Councilmember Wesp said voters can vote for organized hauling but Mayor Rice and he aren’t running for re-election and that we have to listen to what price control really means as the Council shouldn’t be doing this. He said the contract in hand looked competitive with others and was good and said we should be careful about price control as that can be very negative then asked how the proposed contract can confidential if emailed to the Council. Mr. Baumgartner said the contract has to remain confidential due to the order of the court. Councilmember Wesp said there was a restraining order for the operations committee to meet that ended August 1 but negotiations did not have the same August 1 termination date. Councilmember Skogquist noted the City already controls recycling pricing for the last 7-8 years and that government-organized hauling is the same as the City’s electric utility as it is operated against a nearby for-profit business and that this will be a discussion after the November election. Councilmember Weaver noted the electric utility and MMUA is a consortium of 12 cities operated by private companies. Councilmember Scott said we aren’t proposing a sanitary department for the City and that this will be a private company for both. Councilmember Weaver confirmed an affirmative vote rejects the current contract and ends the negotiations and a vote against accepts the contract. Mr. Baumgartner clarified a vote against the motion is not in agreement with the offered motion and subsequent motions could be offered. Upon a roll call vote: Mayor Rice, Councilmembers Scott, and Skogquist voted in favor. Councilmembers Weaver and Wesp voted nay. Motion carried. August 29, 2024 (Special) Page 7 of 10 3.4 Request for Proposal for Organized Solid Waste and Yardwaste Collection. Mr. Lee shared a background report stating at your meeting on August 19 the Council directed staff to prepare a request for proposal (RFP) for Organized Solid Waste and Yardwaste Collection Services. He said the draft RFP was included in the Council packet and was still under review by the City Attorney. Jon Mikoski (individual did not sign in, unsure of name spelling), Anoka, said he wished everyone in the City could hear this discussion as most are unaware of this action, adding the language is vague because most residents don’t have the information. He said the current hauling is efficient and he’s not aware of the benefits of changing and that the City needs to notify the public as information is key to having an informed decision. Scott Massmann, Anoka, clarified many people try to reduce their garbage bill and that he was able to get his reduced in half and at times even more but if organized hauling passes, he will be stuck with their pricing for seven years. Councilmember Skogquist agreed but noted many haulers won’t decrease their rates any further if not passed. Mr. Lee said staff has been working with the League of Minnesota Cities to gather information so voters know what they are voting on and are working to share the actual question but noted we don’t can’t share the proposed contract and pricing yet then added the City can’t advocate one way or the other. Councilmember Scott agreed this could be a risk if contracted with and that there should be triggers of control. Mr. Massmann said it would be bad if the City throws out a family business and asked why he would want to support that action. Sharon Doffing, lead petitioner of ballot question, shared frustrations with the lack of transparency on this topic. She said things transpired without public information and the ballot question and that this has occurred because there weren’t town hall meetings. She shared comments about special service providers for some and other aspects and how that would be affected and that 74% of voters wanted to vote on this but did not understand the dual track. Ms. Doffing said their ballot question was supposed to be on the November 5 ballot but ultimately was placed on the August 13 ballot and that residents need to be on alert who is leading this charge and changing the ballot question on everyone. She said she couldn’t get an attorney to represent them due to the holiday season schedule and that residents are not being fully informed, adding the question has been poorly written. August 29, 2024 (Special) Page 8 of 10 Councilmember Skogquist said if the ballot language was confusing in August why did the petitioners provide that language. He said the City couldn’t change the language and if the group was concerned why didn’t they ask that on purpose. Ms. Doffing responded Robbinsdale, Bloomington, and other cities did the same process and that the language was tried and tested. Councilmember Skogquist while it may not be best it was legal and no one thought it was clear which is why he wanted the question on the November ballot and separated. He noted Ms. Doffing lives in an HOA with private roads with one hauler already. Ms. Doffing said HOAs are governed differently with only one hauler but noted their streets still have potholes. She said there’s never been a study to show haulers are the cause and were treated poorly and felt this was a hostile takeover and that Anoka can now go into the hauling industry the way the question was worded. Mayor Rice asked if the petitions were disappointed if voters wanted single hauling or not. Ms. Doffing said they were disappointed in the question and the shady way it came down and was not pleased with how the City was asking the question. She said they felt it was underhanded and expressed frustration that the City didn’t meet with them on what they wanted then added more to the original question. Mayor Rice disagreed and asked if the petitions want organized hauling. Ms. Doffing suggested another worksession where they can discuss that question further. Councilmember Weaver said associations could organize for hauling on their own and don’t need the City. Councilmember Wesp said the truth came out when Councilmember Skogquist said he wanted price control. Mayor Rice said he felt that was asking businesses to bid on the job which is done on many different projects every year and that he doesn’t see this as price control. Councilmember Scott said the primary question was dealt with by the Charter and should be uniform for either organized or open hauling and reflect the values we have, adding yard waste is somewhat separate. Councilmember Weaver said if passed in November what happens to the current contracts. Mr. Baumgartner said he’d have to look at the contracts but assumed they either have a 90-day clause or that the City will wait for their expiration before entering into another contract. Mr. Lee said the City has organized recycling with ACE Solid Waste and if residents vote for organized hauling the recycling contract expires in the spring of August 29, 2024 (Special) Page 9 of 10 2026 and would not be renewed by the residents who could then choose their hauler depending on the ballot outcome. Councilmember Skogquist noted the contract referred to both organized hauling and yard waste. Councilmember Scott said the ballot question doesn’t dictate when this commences and if the voters say no there’s no date or could cancel the next day. Mr. Baumgartner suggested letting the contract run its term then enter into a new contract. Larry Ryther (individual did not sign in, unsure of name spelling), Anoka, asked if City is required to do recycling for $4 and that this fee is paid by all households in the City whether residents want it or not. He said if organized hauling passes can the City guarantee pricing and suggested everything be up to the voters. Mr. Baumgartner said Anoka County requires organized recycling if passed on by the State, adding waste management has changed over the years. Councilmember Wesp said this will be up to the voters on November 5 and that we need to let the residents tell us what to do then asked about his request for City Attorney costs to relative to hauling. Mr. Baumgartner said he will work to get that information to the Council. Motion by Councilmember Skogquist, seconded by Councilmember Scott, to approve the RFP for organized solid waste and yard waste as amended to be due on September 16 at 10:00 a.m. Upon a roll call vote: Mayor Rice, Councilmembers Scott, and Skogquist voted in favor. Councilmembers Weaver and Wesp voted nay. Motion carried. OTHER BUSINESS Councilmember Weaver referred to the severe weather occurring right now and substantial tree damage. Councilmember Wesp cautioned residents about likely downed power lines in the area. Councilmember Skogquist said some areas already have their power restored and thanked staff for their work and encouraged everyone to be patient during the storm clean-up. ADJOURNMENT August 29, 2024 (Special) Page 10 of 10 Councilmember Skogquist made a motion to adjourn the Regular Council meeting Councilmember Weaver seconded the motion. Vote taken. All ayes. Motion carried. Time of adjournment: 7:05 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerks