Anoka City Council

September 26, 2024 (Special) Page 1 of 8 SPECIAL MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS SEPTEMBER 26, 2024 1. CALL TO ORDER Mayor Rice called the special meeting of the City Council to order at 5:00 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; Senior City Planner Clark Palmer; and City Attorney Scott Baumgartner. Absent at roll call: None. 3. COUNCIL BUSINESS AND/OR DISCUSSION ITEMS 3.1 RES/Residential Solid Waste and Yard Waste Collection Services; Approve an Agreement Contract for Service, Contingent on Citizen Vote. RESOLUTION City Manager Greg Lee shared a background report stating at a special City Council meeting on August 29, 2024, 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 out (either via email or USPS mail) an RFP packet to the companies listed on the report spreadsheet and had printed copies available at City Hall if someone wanted to pick up a printed copy. Notice of the RFP was published in the Anoka Union and was posted on the City website. The City received a total of four proposals: Ace Solid Waste, LRS, Republic, and Walters and were presented to the Council confidentially. On September 16, 2024, the City Council gave direction to work with the entity that submitted RFP #1. Staff has met with the entity that submitted RFP #1 and have developed a draft agreement contract that they would find acceptable. The draft agreement contract and the identity of the entity that was submitted in RFP #1 must remain confidential, until such time that the City Council approves a resolution awarding an agreement contract. At that time, the City Council can speak freely about the contract and identify the entity to whom the contract was awarded. Please note that awarding of an agreement contract for Residential Solid Waste & Yard Waste Collection Services is contingent on the citizens of Anoka voting in the affirmative to a ballot question included in the November 5 General September 26, 2024 (Special) Page 2 of 8 Election to proceed with Organized Solid Waste Collection, Yard Waste Collection Services, and Organized Recycling. Should the City Council approve an agreement contract for Residential Solid Waste & Yard Waste Collection Services Contingent on Citizen Vote, the following will be published on the City’s website: the agreement contract, including contract pricing; the name of the entity with whom the contract is with; Quick Reference Guide including monthly prices that citizens would be charged; and the Organized Collection Question as it appears on the General Election Ballot. City Attorney Scott Baumgartner shared that due to timing the contract prepared by RFP #1 included some minor language changes that he was working with to address with the submitter and asked should Council approve the resolution and accept the proposal it should be contingent upon those minor changes. Mr. Lee noted one topic included was the inclusion of spring axle weight limits to protect City roads and whether the contractor would consider not being exempt from the five-ton limit. He said if agreed to the contractor would include an additional surcharge of $2/month per customer during this time and if not, what would be the enforcement and penalties. He said the contractor appears to be interested in this option and suggested allowing staff to continue those discussions. Mr. Baumgartner referred to the period of two months based on MnDOT’s spring road restrictions which would result in a 50% less capacity collection during that time and the associated surcharge. He then referred to residential dwelling units (RDU) on private drives being excluded but how that language was different in another section of the RFP and included a waiver for road damage and how those sections will need to be readdressed regarding the definition. He also spoke about the possibility of recyclable materials being included into this contract by April 2026 if approved by both parties and suggested adding language that the City reserves the right to reject the proposal and contract with a different hauler should that contract amendment not be agreed upon. Councilmember Skogquist asked if we accept the RPF with the City Attorney’s adjustments can the contract still come back for more substantive amendments if needed. Mr. Baumgartner responded the action would allow for minor amendments but if more substantive then the contract would be brought forward for formal approval. Councilmember Scott thanked everyone for the work and progress to date and said he supported the proposed contract. Motion by Councilmember Scott, seconded by Councilmember Skogquist, to adopt a resolution approving the proposed Residential Solid Waste & Yard Waste Collection Services; Approve an Agreement Contract for Service, Contingent on September 26, 2024 (Special) Page 3 of 8 Citizen Vote, based on any minor contract modifications and revisions made and authorized by the City Attorney if needed. Mr. Baumgartner noted the most recent corrected version was presented to Council earlier. Mr. Lee stated the start date was not included in RFP #1 as the contractor wanted six months after the ballot vote occurred which would be July 1, 2025, but because of the holiday both sides were suggesting June 22, 2025 instead. He added if approved this would be a five-year contract that would June 22, 2030. Sarah Gall, 1811 2nd Avenue, asked questions regarding the need for keeping the contract details secret. Mayor Rice explained that the City has to keep the details confidential until a bid is accepted. Mr. Baumgartner added State statute requires contract information remains confidential until awarded or all bids are rejected. Ms. Gall said the underlying process has moved forward differently then what the citizens have said and it felt like decisions were being made for them. Mayor Rice shared how he always felt Anoka should have organized hauling and that the reason we’re moving forward now was based on whether the Council should have the authority based on Charter, adding the City is working to get answers to questions should the voters say yes to the November ballot question. Ms. Gall said residents would like the ability to choose our own haulers then read a statement from another city’s official that said Anoka’s process seemed elitists. Mayor Rice shared $50 million has been spent over the last 25 years to repair destroyed roads and if this passes, we’ll have less damage to our roads. Upon a roll call vote: Mayor Rice, Councilmembers Scott, and Skogquist voted in favor. Councilmembers Weaver and Wesp voted nay. Motion carried. Councilmember Skogquist said now that the contract is public information, he would like to make a motion that all contract information is posted on the City’s website and that we communicate the information to the citizens through a mailer to ensure the public knows what they are voting on. Councilmember Weaver disagreed as he felt like this could influence a voter. Councilmember Skogquist said we already share information about fee collection for items such as water, sewer, and electric and that this would be similar to garbage and recycling. September 26, 2024 (Special) Page 4 of 8 Mr. Baumgartner said he would like to review the statute closer to ensure what is mailed is allowed, adding while posting information is fine the mailer may need to be dealt with differently as they tend to be more than informational. Councilmember Weaver stated since RFP #1 was public the City has decided to move forward with the contract submitted by Ace Solid Waste. He said he would respect any decision the voters made but shared while he was a current customer of Ace, he didn’t support the City managing government garbage. He referred to the additional fees to cover a full-time employee (FTE) which is actually a tax to support this approved contract and shared Ace was held by Waste Collections and managed and owned by Wall Street mutual fund companies and how this Council action has resulted in kicking out local companies from Anoka to coat the pockets of billionaires and asked the voters to choose carefully. Councilmember Skogquist commented about the gross information just shared, stating the City already charges for many utilities such as water, electric, storm, sewer, and gas franchise fees and that we already have a staff member for recycling and that this action would not add additional staff as it was already included in the fee. He said the proposed cost for a large can was $16.80/month and included all taxes and fees as well as the $1 fee for City staff time. He said the City cannot use scare tactics and was not sure how posting information on the City’s website or in the City newsletter was any different than in a mailer. Motion by Councilmember Skogquist, seconded by Councilmember Scott, to post all contract information on the City’s website and provide through a mailer to the citizens. Councilmember Weaver shared comments from Mr. Lee that outlined the additional costs to fund an FTE person to administer. Mr. Lee shared that information was provided to Council as a worst-case scenario then shared a current staff member believed they could manage the additional workload if approved. Councilmember Weaver said while that may be true questions will arise regarding hauling and Public Services will be expected to assist which is not good, adding this action has resulted in the loss of a local family-owned business. Councilmember Wesp said he was not in favor of this action then shared a summary of the process which he felt had been pushed upon them and forced residents to listen through a petition. He said the Council has made the decision but was not in favor of a mailer as it could influence voters but agreed on posting information on our website. He stated it is not the City’s responsibility to tell the voters what to do. September 26, 2024 (Special) Page 5 of 8 Motion by Councilmember Weaver, seconded by Councilmember Wesp, to table consideration of a mailer to the citizens regarding all contract information. Mayor Rice said any potential mailer would need to be several pages to fully describe all information and wouldn’t include the entire contract and supported the City Attorney evaluating what information could be shared with the residents that would be impartial. Brent Campbell, Anoka, said he voted for the Charter amendment in August and while he was not sure how he would vote in November he felt voters were entitled to have all information readily available and challenged Councilmember Weaver to meet that commitment. He said that based on the contract residents could see a 50% savings for those already using Ace which means they have been paying twice as much then commented about those who have taken money from the haulers as a result of excess charges. Councilmembers Weaver and Wesp asked who Mr. Campbell was referring to with his comments about taking money from haulers. Mr. Campbell said that information was included in a recent mailer. Mayor Rice asked that Mr. Campbell not make accusations but only state his opinion. Mr. Campbell apologized for making the accusations. Councilmember Wesp announced that Mr. Campbell was a Council candidate recruited by Councilmember Skogquist and that they recently held a joint fundraiser. Councilmember Skogquist called for a point of order as the discussion was off track from the motion on the table. Mr. Campbell stated he was a Council candidate and that he participated in a meet and greet recently with Councilmember Skogquist. He said voters are entitled to have as much information as possible and said for him this will be an economic decision and that there have been accusations on both sides. He said haulers don’t spend tens of thousands of dollars to save either the residents or the City money and felt transparency required that the residents have as much information as possible. Mayor Rice responded two reasons not to send a mailer included both the cost as well as what is legal so as not to sway any voters. Councilmember Wesp said last year the City raised the tax levy 20% which affected many property owners along the river and noted that action did not include any mailer. He said he understood Mr. Campbell’s passion about this topic but said this needs to be done in a way not to advocate for either side but just share the pros and cons of both actions. He objected to Mr. Campbell’s September 26, 2024 (Special) Page 6 of 8 accusations of taking money and stated he never has taken money from anyone and asked Mr. Campbell not to suggest that anyone is being influenced due to contributions. He said Mr. Campbell was recruited to run and had sent a mailer himself. Councilmember Weaver stated he has not taken money from anyone because he wouldn’t want to be beholden to anyone because of any contribution. Councilmember Skogquist noted the City did send two mailers about the levy which included the City newsletter and the truth in taxation notice which is required by law. Carol Moen, Anoka, Anoka, said she was a long-time resident and asked Councilmember Weaver about a recent mailer that included a quote from him along with a photo and if he had given his permission to include in the mailer. Councilmember Weaver said he had not given his permission to include a quote or photo in any mailer. Upon a roll call vote: Councilmembers Weaver and Wesp voted in favor. Mayor Rice, Councilmembers Scott, and Skogquist voted nay. Motion to table failed. Mayor Rice suggested identifying two groups that were pro-choice and pro- organized and allow them to write a 150-word testimony to be included in any information sharing. Councilmember Scott said he was not interested in influencing voters and felt any provided information needs to be purely informational, adding it was incumbent on the voter to do their own research. He suggested the posted information include the proposed rates and some basic FAQs with the remaining information posted on the City website. Councilmember Wesp thanked Ms. Moen for speaking then asked for current customers could they approach Ace and asked for reduced rates now. Mr. Baumgartner said residents call their haulers all the time to request rate renegotiation and wasn’t aware of any reason that couldn’t happen now. Mr. Baumgartner clarified the current motion was to include all information on the City’s website and in a mailer approved by the City Attorney to make the public aware of what they were voting on in November. Councilmember Scott an offered amendment that included language coming back to City Council for final approval. Councilmember Skogquist suggested the City Attorney be allowed to review and share final language with the Council without having to reconvene another September 26, 2024 (Special) Page 7 of 8 meeting then said the mailer should include fees and the possibility of yard waste in the future. Mr. Lee suggested Council discuss how the information would be disseminated to the public. Councilmember Wesp called for a point of order, stating everything should be public information already. Mr. Lee said the City was trying to be as neutral as possible and recommended including the ballot question and approved contract by Ace Solid Waste then referred to including a quick reference guide. He noted reference to the taxes of 9.75% and a $1 administrative fee could be included in the FAQs. Mr. Baumgartner said all that information could be included on the website as the contract was a public document but cautioned against any possible summary publication as they can be difficult to accurately summarize. Councilmember Skogquist said a summary publication was appropriate as it was similar to summary ordinances and referred to the report and hauling and the consortium and suggested including information from the Solid Waste Options Committee. Mr. Baumgartner cautioned the City was still in the midst of litigation and that summary publications gave him pause. Mr. Lee shared the current quick reference guide which included pricing, taxes and fees and felt it was important to let the citizens know what they will be voting on and the associated costs. A resident said if he was not happy with his hauler now, he had a choice but if the ballot question passes, he no longer has a choice Councilmember Skogquist said there are levers in place similar to recycling that included penalties and fees up to and including cancelling the contract. He spoke about how the City licenses all haulers now anyway and that haulers were very receptive to the process and felt it would be similar if and when approved. Mayor Rice confirmed the City Attorney would provide language recommendations. Mr. Baumgartner said he will work on compiling all information for the City’s website that included documents included in the City Manager’s email of September 26, 2024, as well as the Council staff report. He shared concern about the other pending matter that didn’t have approval by the City Attorney and requested that the motion include placing on the website and in a mailer as approved by the City Attorney after additional consultation with the Council. September 26, 2024 (Special) Page 8 of 8 Upon a roll call vote: Mayor Rice, Councilmembers Scott, and Skogquist voted in favor. Councilmembers Weaver and Wesp voted nay. Motion carried. Mr. Lee clarified the Council’s expectation for information on the City’s website that included the draft contract, quick reference guide, and ballot question, knowing the information may evolve. Councilmember Skogquist confirmed that was the direction as well as inclusion in a mailer. Mayor Rice stated any mailer needs to be a summary that communicate answers to common questions and that the actual language will be left to the City Attorney to ensure the information is factual and not leading. OTHER BUSINESS None. ADJOURNMENT Councilmember Weaver made a motion to adjourn the Regular Council meeting Councilmember Wesp seconded the motion. Vote taken. All ayes. Motion carried. Time of adjournment: 6:23 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerks