Anoka City Council

September 16, 2024 (Regular) Page 1 of 20 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS SEPTEMBER 16, 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; Assistant City Manager Amy Oehlers; Community Development Director Doug Borglund; Finance Director Brenda Springer; HRA Executive Director Darin Berger; Public Works Director Mark Anderson; Assistant City Engineer Ben Nelson; Senior City Planner Clark Palmer; and Utility Director Del Vancura. Absent at roll call: None. 3. COUNCIL MINUTES 3.1 August 16, 2024, Special Meeting. August 26, 2024, Special Meeting. August 29, 2024, Special Meeting. September 3, 2024, Regular Meeting. Councilmember Wesp said August 26 included two special meetings but one was not included, adding the one included was postponed to August 29 regarding organized hauling but the worksession regarding the budget, jail, and Green Haven was not included and suggested removing approval of the August 26 meetings until received. Assistant City Manager Amy Oehlers said several minute sets were still coming and were separate from the special meetings. Councilmember Skogquist referred to a correction needed for the August 29 special meeting on Page 3 regarding the roll call vote for the action regarding 517 Johnson Street that should reflect that Councilmember Wesp had voted nay. Councilmember Weaver said the August 26 meeting was long and included several agenda items and was missing and should have been presented some time ago. Ms. Oehlers explained there can be a delay in posting audio recordings of meetings to the website which can result in delays. September 16, 2024 (Regular) Page 2 of 20 Councilmember Scott requested a change on the August 29 minutes on Page 3, third paragraph, that stated Councilmember Scott mentioned his hope that an open system would occur with all three services but said he would like to see consistent service that was all open or all organized but preferred all organized for the three services. Motion by Councilmember Skogquist, seconded by Councilmember Scott, to approve the minutes of the August 16, 2024, Special Meeting, August 26, 2024, Special Meeting, August 29, 2024, Special Meeting, and September 3, 2024, Regular Meeting as amended and acknowledging that the remaining sets would be presented soon. Vote taken. All ayes. Motion carried. 4. OPEN FORUM 4.1 Proclamation; Constitution Week; September 17-23, 2024. Barb Thurston, Daughters of the American Revolution (DAR), shared background of DAR and their work around history, education, and genealogy. She said DAR included over 190,000 members in 3,000 chapters in 14 different countries. She shared a quiz of facts surrounding the Constitution then accepted the proclamation on behalf of the DAR. She shared they were working on a celebration to recognize the 250th anniversary of the United States that includes a $500 grant from DAR and would like to partner with the City and American Legion on an event. Mayor Rice said the City annually proclaims the week of September 17 through 23 as Constitution Week in the City of Anoka and read the proclamation into the record. 4.2 Vicki Violet, Anoka Lions Club; Medallion Discussion. Vicki Violet, Anoka Lions Club, shared that they would partner on an event with DAR then shared an update regarding the Halloween Medallion. She said they recently received a cease and desist from Anoka Halloween Inc. regarding Item 6.6 for approval of a licensing agreement between Anoka Halloween Inc., and the City of Anoka for use of intellectual property. She stated Anoka Halloween had trademarked the “Halloween Capital of the World” in 2022 as well as a logo. She noted no one was aware of this fact which was surprising then shared elements of the cease and desist letter and said Anoka Lions relocated the medallion from the City’s public right-of-way to the plaza area by the City, which was paid for and maintained by the Lions. She said the Lions own their history and shared concerns that now we have an entity that not only has trademarked the phrase which they respect but said they can’t accept a cease and desist for using certain words in the phrase. She said their logo was somewhat different as they exchanged the witch September 16, 2024 (Regular) Page 3 of 20 for a lion and should not automatically result in a violation. She felt this was an overreach of Anoka Halloween Inc. and said the item includes Anoka Halloween Capital which is incorrect. She said rearrangement of words does not entitle an entity to the Lions history and the City should not consider moving into a licensing agreement with Anoka Halloween Inc. She spoke about taking over the tent for the Anoka All-Class Reunion which would also be subject to this and how the event was being charged a percentage of merchandise. She said if we have to enter into licensing agreements for projects it would be forced and shared concerns about what the resulting costs would be. She said Anoka Halloween was about the community and spirit and that the City is selling out to the lowest bidder and that she was not pleased with the sale of the history of our City. Councilmember Skogquist asked staff to review the trademark status between the two entities. He said we have two great organizations in the City and wanted to ensure what was correct and ensure Anoka was in an acceptable position. City Attorney Scott Baumgartner said it appeared to be a proper trademark and said the City has no cost with what they’re considering and that while his knowledge of intellectual property was not vast Anoka Halloween may have done the trademark to be open to a discussion regarding a licensing agreement with regard to a private citizen and not necessarily another City-based organization. Councilmember Scott said the trademark has been established but that this comes down to imagery on the medallion which remains in the public domain. Ms. Violet said it comes down to Anoka as the Halloween Capital which is different than the trademark. Councilmember Scott asked staff to work on identifying public domain. Councilmember Weaver said both entities need to be successful as they bring thousands of people to the City as well as offer great services and asked staff to facilitate a discussion to get this resolved because it is important for our community. 4.3 Police Activity Update. No report received. OTHER INFORMATION UNDER OPEN FORUM Ed Evans, 1186 Benton Street, said he was impressed with the button and logo of the Halloween Capital of the World and shared he was part of the original design then spoke about the current budget process and how staff was having difficulty having people work seasonally. He said younger workers don’t want to work but that adults who want to work can’t because the Council decided against employing people who also want to serve on a board or commission. He said he’s September 16, 2024 (Regular) Page 4 of 20 been part of a commission since 1991 and had to resign and would like the City to reconsider this action. Paul Fuller, 4242 Parkview Lane, shared concerns regarding use and misuse of golf carts in their neighborhood and the path that runs within four feet of his home and other residents of Rum River Shores using the path. He shared concerns about safety and shared how a 12-year-old driving a cart and other were causing concerns by speeding near their home. Councilmember Skogquist thanked Mr. Fuller for sharing the concern and asked that the Police Department share an update and present potential adaptation of the ordinance to address. City Manager Greg Lee said staff has met with Mr. Fuller and have worked to correct the concerns through warnings which is not being effective so the Police Department will be taking a more proactive approach with bollards and citations as well as a revocation and suggested residents call 911 when the action is occurring to best address the behavior. Councilmember Wesp shared how a family member was almost hit by a golf cart and how speed was a concern and said while he agreed with a gentle approach first because he didn’t want the ordinance to change but that the concerns need to be addressed especially with youth. Councilmember Weaver suggested installing signs and bollards in place and asked if drivers have to be 18 years of age or older. Public Works Director Mark Anderson confirmed drivers have to be 18 years or older and that staff would install signage in the area. Councilmember Scott clarified the ability to use carts has to be on public roadways and not on trails. Kevin Landry, 765 East Main Street, spoke about the organized hauling proposal and the upcoming ballot question and felt some members were trying to circumvent the process and asked why the Council was so against Anoka voting on this topic. He added the City shouldn’t be deciding on residents’ garbage service. Councilmember Skogquist said it has always been his goal to get information to the voters on whether to consider an organized hauling contract. Mayor Rice clarified the ballot question in August was whether the Council should have the decision-making authority and noted the ballot question in November is whether residents want organized hauling or not. 5. PUBLIC HEARING(S) September 16, 2024 (Regular) Page 5 of 20 5.1 On-Sale Intoxicating Liquor License; Nucky’s Speakeasy, dba; Club 300, 300 E. Main Street. RES/Issuance of an On-Sale Intoxicating and Sunday Liquor License; Nucky’s Speakeasy, dba; Club 300, 300 E. Main Street. RESOLUTION Ms. Oehlers shared a background report stating the ownership of Nucky's Speakeasy, LLC is changing. The new owner, Alana Faulk is purchasing the business name of Nucky's Speakeasy, LLC, dba; Club 300, from Jim and Barb Abeler. She has applied for an On-Sale Intoxicating Liquor and Sunday Liquor license to continue the operation of this business at 300 E Main Street and staff is in the process of conducting the necessary background investigations and inspections. Approval of this license will be contingent upon successful investigations and inspections. Jim Abeler, Anoka, commented about being proud of the City and thanked Public Works for their response to the recent storm. He said they opened the Club and Speakeasy right before the pandemic and said while they had mixed feelings about selling Ms. Faulk will be a good owner. He said it has been fun to be a part of historic Anoka and felt Nucky’s has been a good addition to the City. Alana Faulk, applicant, said she was excited to be part of Anoka and shared her family background and other locations in Minnesota and Michigan said she looked forward to being part of the community. Mayor Rice opened the public hearing at 8:05 p.m. Being no comments Mayor Rice closed the public hearing at 8:05 p.m. NOTE: By motion from Councilmember Wesp, which was seconded by Councilmember Weaver, 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 Skogquist, seconded by Councilmember Weaver, to adopt a resolution approving the issuance of an On-Sale Intoxicating Liquor and Sunday Liquor License for Nucky's Speakeasy, LLC, dba; Club 300 at 300 East Main Street, Anoka. Mayor Rice thanked the applicant for being in Anoka and wished her all the best. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, Weaver, and Wesp voted in favor. Motion carried. 6. CONSENT AGENDA September 16, 2024 (Regular) Page 6 of 20 Councilmember Wesp requested the removal of Item 6.6 from the Consent Agenda until clear direction is received. Motion by Councilmember Wesp, seconded by Councilmember Weaver, to approve the Consent Agenda as amended, removing Item 6.6. Councilmember Weaver thanked Mr. Mwangi for his service to the Economic Development Commission then asked if the Dollar General Store has resolved their outstanding code issues. Senior City Planner Clark Palmer said staff would need to verify if they have been resolved. Ms. Oehlers explained licensing requests were submitted to all departments and not issued unless approved and any outstanding issues were completed. Mr. Palmer said staff will confirm if there are any outstanding items. Councilmember Wesp amended his motion to include the removal of Item 6.7 until verified. Councilmember Weaver agreed to the amended motion. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. 6.3 Authorize Execution of an Acknowledgement to Release a Storm Sewer Reassessment and Drainage Development Restriction Agreement for 950 McKinley Street in the City of Anoka. 6.4 Issuance of a Tree Care/Arborist License; Lawn Pros Lawn Care, LLC, dba; Tree Pros Tree Service and Landscaping. 6.5 Resignation from Economic Development Commission; Ephantus Mwangi. 6.6 Approval of Licensing Agreement Between Anoka Halloween Inc., and the City of Anoka for Use of Intellectual Property. 6.7 Issuance of a Tobacco License for DG Retail, LLC, dba; Dollar General Store #30698, 657 East Main Street. Vote taken. All ayes. Motion carried. Councilmember Wesp inquired about direction for Item 6.6. Mr. Baumgartner explained the medallion and words are trademarked so if we are doing something to take over that trademark then more work will be needed. Mayor Rice likened this to other trademarks and how he felt this was different and that he believed we could work with the two organizations to see what they are asking for and September 16, 2024 (Regular) Page 7 of 20 suggested involving the Historical Society if needed regarding who established and drew the photo. Councilmember Weaver said he believed the logo was created by a high school student in 1942. Councilmember Wesp said the situation was similar to one that occurred in Edina with the school mascot of a hornet and noted both organizations were important to the community but noted this represents the City as a whole. Mr. Baumgartner agreed but noted regardless of what happens he views this as distinct which allows the City to use the words but if the City doesn’t want the agreement then we won’t be able to use the words either. Councilmember Wesp agreed but noted there is a business trademark in agreement with the use and that we need to do the right thing. Mr. Baumgartner asked if Council would look for a licensing agreement that allowed other entities to use the phrase but if not then were shouldn’t enter into an agreement. Mayor Rice said it is in the best interest to enter into the agreement and agreed with pausing to address the concerns first. He said the City commissioned to make the logo which was different than other logos for Halloween but that it was vital to enter into the agreement for the trademark and work out other uses of images and the phrase. Councilmember Weaver stressed the importance of both organizations being successful and were City partners and asked staff to address. Councilmember Skogquist agreed but cautioned too long of a pause and asked that the item come back to the next meeting to ensure all rules are followed. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS None. 8. PETITIONS, REQUESTS AND COMMUNICATION None. 9. ORDINANCES AND RESOLUTIONS 9.1 RES/Issuance of an On-Sale Intoxicating and Sunday Liquor License; Nucky’s Speakeasy, dba; Club 300, 300 E. Main Street. ACTED UPON AFTER THE PUBLIC HEARING September 16, 2024 (Regular) Page 8 of 20 9.2a RES/Establishing Election Precinct Size Policy. RESOLUTION Ms. Oehlers shared a background report stating as directed by the City Council, staff surveyed Councilmembers on what, if any, resolutions they wanted to be considered which were discussed at the worksession on September 3 with the Anoka County Elections Integrity Team (ACEIT). She said based on that survey, two resolutions were acknowledged by at least two Councilmembers to consider a resolution to limit voting precincts to 2,000 registered voters or less and a resolution for the City to request that Anoka County choose some or all Anoka precincts to be included in the Post Election Review (PER) which is a hand count of all ballots. She said the Council must be specific on how many precincts they would like selected and what races they would like hand counted in our precincts which will be listed in Exhibit A. If Council adopts the resolution to have some or all of our precincts included in the Post Election Review and the County chooses some or all of our precincts to be part of that process, the City will incur all costs associated with the PER/handcount, including election judge pay for the amount of Election Judges that would be required to do the hand counting. Staff is unable to give a cost associated with that because it would be based on the action that the County takes regarding including our City precincts in the PER, how many precincts, races, etc. Councilmember Skogquist said while this is a good practice and required by the State there is not a lot of major growth in Anoka. He suggested changing locations going forward for voters to be closer to their polling places where possible and keep the number of voters as low as possible by precinct to make it easier for election judges. Councilmember Scott said it makes sense for a policy to have enough time for staff to plan for precinct sizes and adjust accordingly. Motion by Councilmember Scott, seconded by Councilmember Skogquist, to adopt a resolution establishing election precinct size policy. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.2b RES/Requesting General Election Post Election Review. RESOLUTION Mayor Rice asked how long it takes to canvass results. Ms. Oehlers said the County shared that the race in 2022 took a total of 54 hours to conduct the post election review and expects it to be much longer in 2024 being a presidential election. She said ACEIT was requesting all precincts be hand counted which September 16, 2024 (Regular) Page 9 of 20 would be difficult to provide an exact cost then noted any resolution submitted to the Anoka County Canvassing Board doesn’t mean they have to do it. Councilmember Weaver thought he understood two precincts of the eight would be counted. Robert Kirchner, Coon Rapids and ACEIT member, shared that hand counting ballots is a verification process and while the PER is statutorily mandated in Anoka County that is only for four precincts which is an extremely small sample. He said the idea is to expand the count to provide a greater level of verification. He said the PER has to be conducted within 9-14 days after the election and while the tabulation count is known this is an audit of the results. He said 60% or more citizens have doubts because they are largely hidden due to technology and their goal is to hand count 20% of the precincts which in Anoka would be two of the eight precincts. He said there is a precedent for expanding the PER in the State for downed ballots to create assurance to voters that their vote has been counted but this action is at the discretion of the County canvassing board but cities have the right to comment on the process. He complimented staff on the exhibit that identifies which precincts specifically would be included in the hand count. Mayor Rice asked if the number of races selected would affect the cost. Ms. Oehlers said the cost wouldn’t change that much. Mayor Rice said he would like to see Presidential race included to see the degree of accuracy as well as local races. Councilmember Wesp said he thought 20-25% was a good sample and noted the Presidential race was already included in the PER as well as US Senator and State Representative so it makes sense to include Mayor and Councilmember races as well. Mayor Rice confirmed the PER is one-half of one percent now. Mr. Kirchner agreed but said based on the mandated races the sample is extremely small, adding Anoka has more reasons this year to confirm with the competitive Council races, ballot question, and Soil and Water Conservation District. He said costs estimated if all downed ballots were counted would be based on 13 hand counts, adding at large Council offices is a four-count situation which increases the cost to be approximately $800 per precinct. Councilmember Skogquist said the State currently State mandates one-half of one percent for an automatic recount which in Anoka would be 50 votes but noted there is an added cost for this work then referred to a recent school board election that resulted in a difference of only 13 votes in Blaine which was automatically recounted. He said he was comfortable with the current system for hand recount as well as other auditing techniques, especially when we only have so many September 16, 2024 (Regular) Page 10 of 20 resources, and felt the process was already very accurate and was not in favor of this resolution. He added any action is not up to the City anyway. Councilmember Weaver said he had no concerns doing this because we really don’t know anyway which is not a great position. He asked where the $1,600 cost would be funded from. Mr. Lee said the cost would come from the Administration budget. Councilmember Weaver said this year’s ballot includes contentious races as well as the ballot question and felt this was important to do. Motion by Councilmember Wesp, seconded by Councilmember Weaver, to adopt a resolution requesting general election post-election review for two of eight precincts for Mayor, Council, and City question. Mayor Rice suggested doing what’s listed won’t make a lot of difference and suggested including all races and said while some are not contentious the intent is to validate the process and technology and allow for trust in the system. Councilmember Wesp referred to counting paper ballots years ago and now receiving solicitations to purchase items and while he was not concerned with voter integrity it was important to be cautious and supported hand counting all races. Councilmember Weaver agreed. Upon a roll call vote: Mayor Rice, Councilmembers Weaver and Wesp voted in favor. Councilmembers Scott and Skogquist voted nay. Motion carried. 9.3 ORD/Adopting 2025 Master Fee Schedule 1st Reading Mr. Lee shared a background report stating annually staff reviews the fee schedule and determines whether or not a recommendation should be made to the Council to adjust the fees that the City charges for services and licenses. Fees are to be based on the actual costs to provide the service, issuance/enforcement of a license or code regulation, background checks, materials, time, etc. Mr. Lee shared the proposed fee schedule for 2025 in detail. Mayor Rice said it is expensive to rent any venue and that reserving a park for an event is a bargain and that the City shouldn’t be apologetic for that and should increase fees to recoup our costs. Mr. Lee agreed stating historically we have not been covering our costs. Councilmember Weaver asked about the 1:00 a.m. license and if there’s an issue can the 1:00 a.m. license be revoked if included in the main license and suggested adding language that says two licenses for clarity. Ms. Oehlers explained we are only charging one fee but the applicant would receive two different licenses. Mr. September 16, 2024 (Regular) Page 11 of 20 Lee said the license could be structured as a base license with an extension for 1:00 a.m. service. Mayor Rice suggesting offering family plots for columbariums. Motion by Councilmember Weaver, seconded by Councilmember Scott, to hold first reading of an ordinance establishing a fee schedule for the City of Anoka, effective January 1, 2025 with changes as proposed. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.4 RES/Adopting 2025 Proposed Budget and Preliminary Tax Levy. RESOLUTION Finance Director Brenda Springer shared a background report stating the 2025 budget process began in August and was based on Council directives and the 2024 goal session. The Council has reviewed the 2025 budget, as proposed by the City Manager, at several meetings in August. The proposed 2025 budget for all funds, excluding the HRA component unit, is $70,519,930. The preliminary General Fund expense budget is $17,042,496 which is an 8.36% or $1,315,490 increase from the 2024 expense budget. The 2025 proposed levy is set at $11,178,783. This is down ($830,489) from the original staff proposed levy on August 5, 2024. We arrived at lower levy with the following Council changes to the proposed budget through 1) Additional Transfer in from Electric ($925,000 total) ($225,000) 2) Reduction in Police Salary Budget / 6 mo attrition (179,662) 3) 2 Park Positions – 1 removed, 1 funded with land sales ($148,000) 4) Removed Building Maintenance Position ($100,000) 5) Police Aid Grant Revenue ($97,992) 6) Anoka/Champlin Fire – Based on current contract ($79,835) totaling ($830,489) or 5.3% The proposed General Fund and Debt levy is an increase of $1,031,479 or 10.17% above the 2024 levy. Residential property taxpayers will see an increase in City property taxes of approximately $138/year for the average home in Anoka. The levy increase, along with changes in fiscal disparity contributions and distributions, changes in tax increment, and market value all affect the tax rate and the amount of property tax levy distributed to individual properties. With the increase in the levy, the Council is able to cover all general fund operating, debt service payments and some capital expenditures. This is a preliminary levy and cannot be increased; staff will continue working on the budget to propose additional cuts. The final levy will not be set until the December 16 Council meeting. The State of Minnesota has not imposed levy limits upon local governments in 2024. The City Council will hold a public hearing on December 2, 2024, where the public may comment on the proposed budget and levy which is available online or at City Hall. September 16, 2024 (Regular) Page 12 of 20 Councilmember Scott thanked staff for detailed presentation on changes made from the beginning of the process and the one-time measures that will come back then spoke about other challenges such as salaries for the Police Department and our attempt to stifle the blow over a few years instead of one year. Mayor Rice spoke about variables in the tax rate and predicted we could absorb some of the costs through additional development. Ms. Springer said based on fiscal disparities and reduction in the levy staff estimates the tax rate to be $138/month per resident then explained an increased tax capacity always helps reduce the rate. Councilmember Wesp referred to the Green Haven discussion at worksession and how staff removed requests but shared the importance of new golf carts and greens mowers. Ms. Springer said the proposed budget includes $100,000 for the leasing of new carts but not new equipment but said that could be added prior to final approval in December. Councilmember Weaver asked where the funds would come from if not included. Ms. Springer said the funds would come from the profits of the golf course and if not enough a transfer would occur from the general fund. Councilmember Weaver that is a concern because while we started at an 18% levy which has been reduced to 10% the golf course is only showing $145,000 in profits but are proposing almost $1 million in capital and equipment which is not a good business plan. He asked how many Anokans golf because it is important that the course is a sustainable business model because as future councils change they could see the course as a burden so we need to generate more funds. He said he was also concerned about the increase in number of full-time employees from 114 in 2022 to 127 in 2023 as they are all permanent then shared concerns about parks which need constant maintenance like the golf course and how we are only receiving dock revenue which is minimal at best. He suggested a proposal that can generate up to $274,000 annually to park capital funds then said we need to generate more profit from the liquor store and aquatic center as these are all a drain on the taxpayers. Councilmember Scott agreed, especially around the golf course, and said he was excited to explore the value we will receive from selling the current carts and the reduction in maintenance which will also make the course more relevant. Councilmember Skogquist said the number of employees was clearly explained that they were being accounted for with part-time and that the City didn’t add 13 employees in 2023 then said it was and important for Anoka to offset costs because we’re postponing growth until next year. He said it is important to expand growth and that we need $15 million in new development to help then referred to Graco which will provide taxes once out of the TIF fund. September 16, 2024 (Regular) Page 13 of 20 Motion by Councilmember Skogquist, seconded by Councilmember Scott, to adopt a resolution relating to adoption of a preliminary 2025 budget and certifying a proposed property tax levy collectible in 2025, and setting public hearing dates. Councilmember Weaver said he will support the motion but is doing so with reservation and requested staff to continue looking for ways to decrease the budget, especially for golf, then referred to the property on Grant Street and a potential developer with great interest as well as the parcel west of Green Haven. He said there are good opportunities to get these parcels developed as it will be beneficial to the taxpayer, adding we need to look at the liquor stores as well to see if we should continue that enterprise. Ms. Springer noted that in 2016 when the enterprise park TIF district expired even though the City raised the levy 16% residents saw a 10% decrease that year which shows tax capacity makes a big difference. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.5 RES/Consenting to the HRA Adopting a 2024 Tax Levy Collectible in 2025. RESOLUTION HRA Executive Director Darin Berger shared a background report stating the City Council must consent to any Authority levy prior to it becoming effective as required by Minnesota Statutes Section 469.033. The HRA has adopted the proposed levy to be $446,536. This is approximately the maximum levy allowable. It is $34,062 more than the 2024 levy or an 8.3% increase. The HRA levy will be used to accomplish the goals of the authority and in furtherance of its housing and redevelopment plans. The maximum levy allowed for the Housing and Redevelopment Authority is 0.0185 percent of taxable market value, or approximately $446,536. The proposed levy is $46/year or $4/month based on the average home taxable market value of $296,000. He said of note the HRA is now offering a Façade Improvement Loan Program for commercial properties in downtown Anoka, along with the Commercial Loan Program Citywide with a budget of $50,000 combined. Those funds are offered on a first come, first served basis. The HRA could use some existing funds to increase the 2025 commercial budget to $100,000 if no funds are expended in 2024 and need arises in 2025. The Curb Appeal Residential Enhancement (CARE) Grant Program will be funded up to $100,000 for the 4th consecutive year. That is in addition to the Home Improvement Funds offered through Center for Energy & Environment (CEE) in the amount of $125,000. Councilmember Skogquist said State recently passed a quarter percent tax for affordable housing and asked how that was being that designated. Mr. Berger believed the amount was more than that but would confirm and said the HRA was September 16, 2024 (Regular) Page 14 of 20 looking at ways to use those funds on creating programs specific to rehabbing homes that qualified as affordable. Motion by Councilmember Skogquist, seconded by Councilmember Weaver, to adopt a resolution consenting to the Housing and Redevelopment Authority in and for the City of Anoka adopting a 2024 Tax Levy Collectible in 2025. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.6 RES/Cancellation of Debt Levy. RESOLUTION Ms. Springer shared a background report stating according to Minnesota State Statute 475.61, the City is required to adopt a resolution canceling the bond levy, which is originally certified with Anoka County, if it is not intending to levy for the certified bond levy amount. She shared the resolution canceling the bond levy because the amount needed to pay the City’s debt is included in the general fund operating levy as a transfer out. There will be no impact to the budget or the truth and taxation notices to property tax payers, as the cancellation of debt was already included in the calculations. Motion by Councilmember Wesp, seconded by Councilmember Skogquist, to adopt a resolution authorizing cancellation of debt levy. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.7 RES/Conditional Use Permit; 700 Lund Boulevard; Camco Lubricants. RESOLUTION Senior City Planner Clark Palmer shared a background report stating Camco Lubricants is requesting approval of a conditional use permit (CUP) for the property located at 700 Lund Boulevard. The property is zoned M-1 Light Industrial. The proposed use is not specially listed as a permitted use. The M-1 district allows CUPs to be issued for “Other manufacture, processing, storage or commercial uses as determined by the planning commission to be of the same general character as the permitted uses above and found not to be obnoxious, unhealthful, or offensive by reason of the potential emission or transmission of noise, oxidation, smoke, dust, odors, toxic or noxious matters or glare or heat” (City Code Section 78-289 (c)(2)). The applicant submitted a written narrative describing their business and operations. The applicant describes their business as a lubrication supplier. There are no exterior site changes proposed. The applicant has been working with the City’s Building Official to secure any necessary September 16, 2024 (Regular) Page 15 of 20 building permits and a certificate of occupancy. Staff finds the use to be suitable for the proposed location and not in conflict with zoning. The Planning Commission reviewed the application and held a public hearing at their September 4 regular meeting and recommended approval subject to the following conditions that included no outdoor storage in violation of City Code and that the fire suppression system is updated and approved before occupancy. Councilmember Weaver noted this is a new business that came in which was once occupied by a commercial use which is great. Motion by Councilmember Weaver, seconded by Councilmember Wesp, to adopt a resolution for approval of a conditional use permit for 700 Lund Boulevard. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.8 RES/Trunk Highway 47 and McKinley Street Traffic Signal System; Approve Cooperative Construction Agreement and Authorize the Execution of the Agreement with the State of Minnesota Department of Transportation. RESOLUTION Assistant City Engineer Ben Nelson shared a background report stating the City- led Trunk Highway 47 Corridor and BNSF Railroad Grade Separation Project is for the improvements along Highway 47 north of U.S. Highway 10 at Pleasant Street (CR 30) to Bunker Lake Boulevard (CSAH 116). This project will identify a community-supported vision to improve transportation safety, mobility, and efficiency, while balancing the needs of a healthy environment and local and regional economy. The scope of the major proposed improvements includes grade separation of the Trunk Highway 47 (TH47) and Burlington Northern Santa Fe Railroad crossing and a new permanent traffic signal system on TH 47 (St. Francis Boulevard) at the intersection of McKinley Street. On April 21, 2022, the State of Minnesota, Department of Transportation (MnDOT) authorized the City of Anoka’s Miscellaneous Work on Trunk Highway Right-of-Way Permit (US- 22-00789) for the installation of road closure barricades and signage along TH 47 at the City streets due to the temporary traffic signal system being installed for the Anoka Highway 10 Projects. The TH 47 temporary traffic signal system at McKinley Street was identified in the Highway 10 Traffic Mitigation Plan as a “key hot spot” and installation was authorized in Senate Bill S.F. No. 2072. This signal was activated on April 28, 2022, for the Anoka Highway 10 construction and the temporary traffic signal system maintenance was paid under MnDOT’s Highway 10 Rum River Bridge and Improvement Project. The final completion date of the Highway 10 construction contract with Kraemer North America, LLC, was on Saturday, June 1, 2024. Ongoing maintenance was postponed until a funding source was established for the temporary traffic signal system. On October 5, 2023, MnDOT agreed to leave the TH 47 temporary traffic signal September 16, 2024 (Regular) Page 16 of 20 system in place until the new permanent traffic signal system on TH 47 at McKinley Street is constructed. The one condition from the MnDOT Metro Traffic Safety Manager was that the closures at McCann Avenue and Dunham Drive remain in place, which was the same conditions from 2005 to justify the installation of the traffic signal. He said the next step for the traffic signal system to stay operational is to approve and enter into the Cooperative Construction Agreement with the State of Minnesota, Department of Transportation to provide payment by the City to the State for the City’s share of cost associated to the maintenance of the signal system. He outlined other important requirements of the agreement and said the City is responsible for adequate power to supply the signal system and pay for the power. He said the agreement has been reviewed and there are no specific objections by the City Attorney and is recommended for approval to keep the temporary signal system operational. The act of executing the agreement allows for funding by the City to the State for the City’s share of maintenance costs. The estimated City’s cost is a lump sum payment of $17,261.62 and shall be paid after the execution of this agreement. Financing for the City’s share of maintenance will be from the Street Fund that was financed by the Municipal State Aid Street Maintenance allotment funds from the State. Councilmember Skogquist asked about the wait time for the signal and noted part of the reason may be because it is a temporary signal but asked if we have any say in the timing. Mr. Nelson once the agreement is in place the timing will be re- evaluated. Motion by Councilmember Skogquist, seconded by Councilmember Scott, to adopt a resolution Trunk Highway 47 and McKinley Street Traffic Signal System; approve Cooperative Construction Agreement and Authorize the execution of the Agreement with the State of Minnesota Department of Transportation. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, Weaver, and Wesp voted in favor. Motion carried. 9.9 RES/Approval of an LG230 Off-Site Gambling Permit for Anoka Area Hockey Association; Raffle at Anoka Area Ice Arena December 8, 2024. RESOLUTION Mr. Lee shared a background report stating Anoka Area Hockey Association has submitted an application for a State issued LG230 Off-Site Gambling Permit to allow them to conduct a raffle at the Anoka Area Ice Arena on December 8, 2024. He said this is a State issued license but requires the approval of the municipality in which the event will take place. Staff has reviewed the application and no concerns or objections have been expressed. September 16, 2024 (Regular) Page 17 of 20 Motion by Councilmember Wesp, seconded by Councilmember Weaver, to adopt a resolution recommending the issuance of a State issued LG Off-Site Gambling Permit for Anoka Area Hockey Association raffle event at the Anoka Area Ice Arena on December 8, 2024. Councilmember Weaver encouraged youth skating and said the Association does a wonderful job getting youth involved in the sport. 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 Review of Requests for Proposal (RFPs) for Residential Solid Waste and Yard Waste Collection Services. Mr. Lee shared a background report stating at your meeting on August 29 the City Council directed staff to prepare and release a Request for Proposal (RFP) for Residential Solid Waste & Yard Waste Collection Services. The City Council set the deadline date for proposals for 10:00 a.m. September 16, 2024. City staff sent RFP packets to the companies listed and published notice of the RFP in the Anoka Union and on the City’s website. He said the results of the RFP were sent to Council earlier in the day and asked Council for direction. Councilmember Weaver asked when the names of the proposers can be revealed. Mr. Scott Baumgartner explained per statute until a contract is awarded the data is private. Councilmember Wesp said he received the summary email and RFP results earlier but didn’t feel it was appropriate to vote on this evening until the Council has had a full chance to review the information. He said the information was lengthy and that there was not enough time provided to review. Mr. Baumgartner said he was not sure if this topic would qualify as a reason allowed by the open meeting law to hold a closed session. Councilmember Weaver said he wanted to hold an open meeting for the public’s knowledge then said all haulers were invited to respond but the resulting submittals included only four haulers with two that weren’t currently licensed and one who didn’t respond, meaning if approved they will no longer be able to be licensed in Anoka. He said the process concerns him greatly because he doesn’t want it to be the same as what’s happening in Mounds View. He said while he September 16, 2024 (Regular) Page 18 of 20 will respect the vote on November 5 the process is getting more and more difficult. Councilmember Wesp said he will respect the vote as well but needs to be prepared to speak about the four options said with the lateness of the information and not being able to open one of the attachments, he can’t properly review the information. Councilmember Skogquist said he will respect the vote too but noted absentee voting starts later this week and that Council knew this action was scheduled for this evening. He said we received some great competitive bids but had questions and suggested directing staff to work with RFP #1 and a second if needed then asked for clarification regarding the following items: every other week pick up pricing option, availability for snow birds to suspend service up to six months, if the escalation clause is flat or a percentage, if solid and yard waste are independent options or linked, the extra fee for having too much garbage, if yard waste is optional and not required, and termination fees. Councilmember Wesp said he knew the item was scheduled but because the information wasn’t shared until this afternoon and that he can’t fully review all attachments this puts him at a disadvantage and suggested tabling the item. Motion by Councilmember Wesp, seconded by Councilmember Weaver, to table review of Requests for Proposal (RFPs) for Residential Solid Waste and Yard Waste Collection Services. Mayor Rice said he understands the concern but also recognizes the need to move forward and thanked Councilmember Skogquist for identifying the selected vendor and questions as well as a secondary process and asked if we could go back to the consortium as well if needed. Mr. Lee said we could but that staff was not recommending that at this time. Upon a roll call vote: Councilmembers Weaver and Wesp voted in favor. Mayor Rice, Councilmembers Scott and Skogquist voted nay. Motion failed. Councilmember Scott said we have all the information available including pricing for collection and disposal and yard waste which was included in the summary that we can see the costs based on the number of carts and types of waste and felt RFP #1 made the most sense to him. Councilmember Wesp said RFP #1 was 42 pages and would like more time to review, adding he hoped the residents understood the antics in play and won’t support anything at this time. Councilmember Scott disagreed and felt there was sufficient time for review. September 16, 2024 (Regular) Page 19 of 20 Mayor Rice suggested a motion to direct the City Manager to review the contracts and contact Councilmembers separately regarding any concerns. He said he resented the notion that we are pushing this action and explained there is a ballot question in November and that the City needs to provide voters with information so they know what competitive and organized hauling looks like and that the action is to help educate the public. Councilmember Scott confirmed if the Council gave direction to go with any one option this evening it didn’t mean final commitment it just meant going back with the additional questions in order to finalize a contract for formal approval at a later date. Mr. Lee agreed staff was not asking to select a proposal this evening but direct staff to begin working with one proposal to answer all questions for return to Council for final approval. Motion by Councilmember Skogquist, seconded by Councilmember Scott, to direct staff to begin discussions with RFP #1 to provide answers to Council’s questions and return with a proposed contract as soon as possible and a fallback if needed. Councilmember Wesp said the RFP information was emailed to full Council so doesn’t that make the data public. Mr. Baumgartner said not per Statute at this time. Councilmember Scott said should the procedure happen after a vote in November we would still have had to keep the data confidential until point of award. Councilmember Weaver said when this becomes public what stops anyone from calling the selected vendor for the lower price and asked why government needs to be involved in the first place. Mayor Rice said that’s the benefit of organized hauling because they have the advantage of volume which lowers cost. Councilmember Weaver said if approved there will still be recycling and commercial hauling trucks and that we are taking away the residents’ right to choose. Councilmember Scott said we aren’t taking away anyone’s rights because the voters will ultimately decide that in November. Mayor Rice suggested asking all four submittals to respond to the questions for full data to consider. Mr. Lee said most questions have already been answered in the proposals and suggested returning to RFP #1 but noted the Council was not meeting again until October 7. Mr. Baumgartner suggested the motion be to work with RFP #1 on questions with a fall back to RFP #2 then asked about the timeframe direction of the Council. September 16, 2024 (Regular) Page 20 of 20 Councilmember Skogquist said if a contract cannot be negotiated a special meeting could be held if. Upon a roll call vote: Mayor Rice, Councilmembers Scott and Skogquist voted in favor. Councilmembers Weaver and Wesp voted nay. 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. Mr. Nelson shared the upcoming pickleball tournament on October 5 at George Enloe Park as part of Anoka Halloween. Councilmember Weaver asked for an update on the river dredging project. Mr. Nelson said staff expects the work to being later this week. ADJOURNMENT Councilmember Wesp made a motion to adjourn the Regular Council meeting Councilmember Skogquist seconded the motion. Vote taken. All ayes. Motion carried. Time of adjournment: 10:15 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerks