Anoka City Council

December 2, 2024 (Regular) Page 1 of 11 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS DECEMBER 2, 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, and Wesp. Also present: City Manager Greg Lee; Police Chief Eric Peterson; Director of Public Services Mark Anderson; Community Development Director Doug Borglund; Senior City Planner Clark Palmer; Finance Director Brenda Springer; Recreation Manager Nickie Jenks; Assistant City Engineer Ben Nelson; City Attorney Scott Baumgartner; and Utility Director Del Vancura. Absent at roll call: Councilmember Weaver. 3. COUNCIL MINUTES 3.1 November 13, 2024, Special Meeting. November 18, 2024, Regular Meeting. Motion by Councilmember Skogquist, seconded by Councilmember Scott, to approve the minutes of the November 13, 2024, Special Meeting and the November 18, 2024, Regular Meeting as presented. Vote taken. All ayes. Motion carried. 4. OPEN FORUM 4.1 Police Activity Update. Police Chief Eric Peterson shared an update that included the holiday shopping season and increased patrol to be visible in shopping areas and encouraged the public to secure their vehicles and report anything suspicious. He spoke about the partnership with the Anoka Christmas Committee and Toys for Joy from the Anoka Armory that served over 1,000 families in Anoka County then shared a staffing update to hopefully fill the internal and two other positions and encouraged those interested to apply. He shared about the 34th annual Christmas tree lighting ceremony on December 7 which brought thousands to Anoka and encouraged everyone to attend. December 2, 2024 (Regular) Page 2 of 11 OTHER INFORMATION UNDER OPEN FORUM Greg Joseph, Waconia, shared that he was a constitutional attorney and then spoke about the work surrounding organized hauling that included collecting signatures to meet the threshold to present the amendment to the ballot. He said the Council deserves credit for doing this work instead of opting for litigation and then recognized those residents in attendance for their work to bring this item forward. Jason Berry, Anoka Community Mission, said they were a faith-based resource center and thanked the Council for their participation and support that resulted in them being able to give away thousands of pounds of food to those in need. He thanked those who supported their mission through the Round-Up program as it shared the promise of hope. Councilmember Skogquist thanked Mr. Berry for all the work they do for so many people. Councilmember Wesp asked how much it costs to participate per year in the Round-Up program. Mayor Rice said it costs less than $12 a year and that the funding goes a long way. Finance Director Brenda Springer shared that the program also supports ACBC Food Shelf, Cross, and Alexandra House, adding they are all very good charities. Councilmember Scott said those served are working hard to stretch their dollars as far as they can and the Mission and others help make the holiday season that much better. Ed Evans, 1186 Benton Street, shared comments in defense of comments made at a recent meeting against the senior center and said it was a great and comfortable place to go. 5. PUBLIC HEARING(S) 5.1 2025 Budget and Levy Presentation. Finance Director Brenda Springer shared a background report stating the 2025 budget process began in June and was based on Council directives and the 2024 goal session. The Council has reviewed the 2025 budget as proposed by the City Manager and at several meetings in August. The proposed 2025 budget for all funds excluding the HRA component unit is $71,830,260. The 2025 proposed levy is set at $11,178,783. The proposed levy is an increase of $1,031,476 or 10.17% above the 2024 levy. Residential property taxpayers will see an increase in City property taxes. The levy increase, along with changes in fiscal disparity contributions and distributions, changes in tax increment and market value all December 2, 2024 (Regular) Page 3 of 11 affect the tax rate and the amount of property tax levy distributed to individual properties. She reviewed changes in overall proposed budgets and said with the increase in the levy, the Council is able to cover all general fund operating, debt service payments, and capital expenditures. She said the total levy is $11,178,783 which was an approximately $114 increase in City property taxes. Mayor Rice opened the public hearing at 7:31 p.m. Jeff Lee, 706 River Lane, shared comments about the increase of property taxes both at the City and at Anoka County as well. He said everyone is paying a lot more than we did 3-4 years ago and that the average cost of living increase doesn’t match inflation. He encouraged the Council to be judicious with City funds as the regular homeowner was getting hit hard, adding his property taxes will have increased by 40% if this proposed levy is approved. Joelle Alverud, Anoka, said last year saw a 30% increase coupled with another increase this year, adding she pays more taxes in Minnesota than in California and encouraged the City to identify another revenue source instead of placing all the burden on real estate taxes. Ed Evans, 1186 Benton Street, spoke about the different taxing entities that include the HRA, water, sewer, storm water, and electrical, and the proposal for an additional 1% to electrical. He said residents need to consider all taxes together and not just property taxes then spoke about subsidized housing and concerns for people being able to pay the electric and water rates for those homes and the maximum tax carrying capacity and reaching that limit. Jerry Boettcher, Anoka, shared comments about his father’s home and the loss when sold because the home was deemed unsuitable for habitation. He shared concerns about why he can’t shut off water to the home and felt the City was discriminating against a war veteran and said his father passed away due to the City’s harassment. Mayor Rice thanked Mr. Boettcher for his comments and encouraged him to continue working with staff to better understand the situation. Being no comments Mayor Rice closed the public hearing at 7:39 p.m. Councilmember Skogquist said he understood the last two years of increases both at the City and County level then shared comments about $317,000 or 3% of our levy increase due to street projects. He spoke about redevelopment work in the TIF districts and that $343,000 was going to pay the debt on the ramp as it didn’t work as planned and the need to grow the tax base as this will help to help offset increases elsewhere. December 2, 2024 (Regular) Page 4 of 11 Councilmember Scott thanked everyone for their comments and said he will follow up with them individually. 6. CONSENT AGENDA Councilmember Scott questioned if the 3% increase in Item 6.4 was enough and suggested further negotiations. Councilmember Skogquist asked if this was a new lease or a new company. Director of Public Services Mark Anderson said this would be a new lease at the water tower at 5th Avenue and was based on $36,000 for one year with a 3% increase which is the highest lease currently in the City. He said staff worked with SEH and the City Attorney and felt this was a competitive rate. City Attorney Scott Baumgartner commented that wireless networks have become very savvy in negotiations as they are based on many factors including more flexibility in location. He said this was the highest least ever signed that included a $5,000 signing bonus. He added networks can go to other cities or even private sectors if they want and noted the lease covered space the City doesn’t use for anything else which provides a good return. Motion by Councilmember Skogquist, seconded by Councilmember Scott, to approve the Consent Agenda as presented. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. 6.3 Approve Amendments to the Joint Powers Agreement with the Lower Rum River Watershed Management Organization. 6.4 Approval of a New Site License Agreement for DISH Wireless, LLC, a Colorado Limited Liability Company. Vote taken. All ayes. Motion carried. 7. REPORTS OF OFFICERS, BOARDS AND COMMISSIONS 7.1 Park Board Item: 7.1.A. 2024 Aquatic Center Annual Report. Recreation Manager Nickie Jenks shared a background report stating the Aquatic Center Annual Report was presented to and accepted by the Parks & Recreation Advisory Board on November 19, 2024. For the 2024 season, the Aquatic Center December 2, 2024 (Regular) Page 5 of 11 was open for 89 days with a few rain days and a bonus half day on August 26. The pool was open from May 25 to August 25. The 63 members on staff created a welcoming and safe environment for the nearly 47,300 customers. Of the 63 staff members, 46 of them returned from previous seasons bringing back invaluable knowledge, customer service, and experience. Overall revenue for the 2024 season was $433,855. Daily admissions made up the bulk of our revenue, with 22,669 paid admissions equaling $189,426. The 2024 expenses were $544,204. Seasonal employees made up the bulk of our expenses, equaling $278,373. Seasonal labor expenses had an increase of $68,000 over last season. This increase was primarily due to the 18% wage increase for the 2024 season to be at a competitive wage within the market and in turn reduce turnover. The 2024 season had a deficit of $110,349. Ms. Jenks reviewed season passes, open swim, swim lessons, and concession revenue then spoke about the proposed fee increases for 2025. She outlined 2024 season projects in detail then reviewed proposed dates for 2025. Councilmember Scott thanked Ms. Jenks for the report and then asked about new umbrellas for rent and how many birthday parties/events occur each year. Ms. Jenks said she would provide that information but added staff condensed the parties to offering two choices only and recently increased the price. Councilmember Skogquist said the season pass had a downward trend and was glad staff was trying to address it, adding swimming lessons are increasing which is great and provides an opportunity for youth to learn to swim, and was pleased the revenue was still strong. Councilmember Wesp said this pool has been in place for 70 years and can only see good coming from the center. He thanked staff for their intuitiveness and management and for being innovative with the pool, concessions, and other programs, adding it makes sense to be competitive in wages, and thanked them for their work. Dr. Evans asked if a different payor could be used to decrease the $13,000 credit card fees as it seemed high for the number of days the pool is actually open then asked about the $35,000 project expense. Ms. Jenks explained that staff did find a lower fee recently which is now competitive then explained the updates were the pool filter elements and strainer baskets. Motion by Councilmember Scott, seconded by Councilmember Wesp, to approve the 2024 Aquatic Center annual report as presented. Vote taken. All ayes. Motion carried. 8. PETITIONS, REQUESTS AND COMMUNICATION None. December 2, 2024 (Regular) Page 6 of 11 9. ORDINANCES AND RESOLUTIONS 9.1 ORD/Amending City Charter Adding Section 13.13; Voter Approval of a City- Organized Solid Waste Collection Process. 1st Reading City Manager Greg Lee shared a background report stating the petition question to amend the City Charter related to the solid waste collection process was voted upon at a Special Election held on August 13, 2024. The vote result was 1,536 to 529 and the ballot question passed, therefore, the City Charter must be amended to state the voter-approved language. He shared the petition language that stated unless first approved by a majority of voters in a state general election, the City shall not replace the competitive market in solid waste collection with a system in which solid waste services are provided by government-chosen collectors or in government-designed districts. The adoption of this Charter amendment shall supersede any ordinances, ordinance amendments, or Charter amendments related to solid waste adopted by the City Council after January 1, 2023, at their annual meeting on November 11 where the Charter Commission reviewed the language and the language placement within the City Charter. At their meeting, the Charter Commission voted to recommend to the City Council, that they approve the language and placement within the City Charter. This amendment/new language will be in Chapter 13, Miscellaneous and Transitory Provisions. A new section will be added: Section 13.13 Voter Approval of City-Organized Solid Waste Collection Process. Approval of this amendment is required by State Statute. Motion by Councilmember Scott seconded by Councilmember Skogquist, to hold first reading of an ordinance Amending Chapter 13; Miscellaneous and Transitory Provisions, of the Anoka City Code Adding Section 13.13. Voter Approval of City-Organized Solid Waste Collection Process, to Conform with the August 13, 2024 Special Municipal Election Related to Solid Waste Collection Process. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, and Wesp voted in favor. Motion carried. 9.2 RES/Approval of Anoka Station Area Master Plan Update. Community Development Director Doug Borglund shared a background report stating the City acquired the 7.5-acre Miller Manufacturing Site, one of the largest industrial sites in the area. As the previous plan envisioned this site for long-term manufacturing, the City enacted a moratorium in June of 2023, which restricted development in the station area until the City had time to revisit and update the station area plan. The moratorium period expires on December 20, 2024, or 18 months from the adoption of the interim ordinance. Pursuant to Minnesota Statutes § 462.355, Subd. 4, the City was authorized to establish interim ordinances to regulate, restrict or prohibit any use or development in all or a part December 2, 2024 (Regular) Page 7 of 11 of the City while the City or its planning department is conducting studies, or has authorized a study to be conducted, or has scheduled a hearing to consider adoption or amendment of official controls including ordinances regulating physical development of the City. In 2012, the Anoka City Council adopted the Anoka Station Plan, which was funded by a Livable Communities Transit Oriented Development (TOD) grant. This document established the vision and guiding principles for the redevelopment of the Anoka Station area and prescribed the development form and urban design character that the City of Anoka envisioned over the next twenty years. Since the adoption of the Plan in 2012, both public and private investment has occurred in the station area. In addition to the NorthStar station and its parking areas, public investment has included stormwater ponding, trails, and a playground for station area residents. Private investment has included residential development on the northern end of the station area. The Anoka Transit Oriented Development (TOD) Station Area Plan Update outlines the preferred vision for development and redevelopment surrounding the NorthStar commuter rail station in Anoka. This document represents the culmination of a number of previous planning and market research efforts undertaken by the City since the inception of the transit line in 2000. This plan provides an overview of the previous planning efforts, describes the vision and guiding principles established for the district, and articulates the desired look and feel of future development. The intent is to assist policymakers and City staff to guide future development and help recruit the desired uses to the district. Rita Trapp, Hoisington Koegler Group, shared an overview of the planning process, study area focused on the transit station, visioning and guiding principles, market analysis that included for-sale townhomes, and multi-family with a mix of market rate and affordable as well as non-residential uses such as industrials, office, medical office, restaurants, and retail. She outlined engagement and input opportunities provided throughout the process and shared comments around transportation, land use, and parks and open space then reviewed the preferred concepts in detail. Ms. Trapp reviewed suggested implementation strategies in detail that included anticipated phasing, and open space. Councilmember Wesp said he would support vacating Johnson Street to create greenspace as it will enhance the area, like the Buchanan Street extension to the west, and supported multi-family residential property on this parcel that ties into the station, which could be single-family ownership as well. He said he did not want to lose the Anoka Community Mission and encouraged the new Council to work with Mr. Berry to enhance what he has already built there for the community as a whole. He said trees will play an important part in this plan and provide an opportunity to do what we said we would do by bringing in taxpaying properties that will pay off the TIF district and become very profitable. Councilmember Skogquist thanked Ms. Trapp for the presentation and said he supported implementation that works with the Mission as well. He said future zoning changes make sense with that use such as a daycare then suggested the site December 2, 2024 (Regular) Page 8 of 11 at 4th Avenue and Johnson Street be included in Phase 1 instead of Phase 4 as we could still have access to 4th Avenue and Johnson Street. Ms. Trapp said the thought for Phase 1 was it would be the impetus for Miller Manufacturing's work to begin and focus a little longer to be released from the lease but that the plan could certainly change to include Phase 1 instead. Mayor Rice commented about vacating Johnson Street and creating greenspace and likened this to the parking ramp construction 16 years ago and how plans haven’t happened as planned. He said we’ll look at something outside of the approved phased plan if appropriate, adding this is the greatest opportunity for Anoka to see development and encouraged future Councils to embrace that as there is nowhere else in the City this can occur. Councilmember Scott referred to the great opportunity with Gramercy Development for housing on the north and commercial on the south of the railroad tracks and said he envisioned similar concepts for TOD plans as this makes a lot of sense. Motion by Councilmember Skogquist, seconded by Councilmember Wesp, to adopt a resolution approving the Anoka Transit Oriented Development (TOD) State Area Plan Update based on the Phase 4 to Phase I change as suggested. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, and Wesp voted in favor. Motion carried. 9.3 RES/Consenting to the Use of Special Revenue Funds. RESOLUTION Mr. Lee said staff is suggesting this item be postponed to December 9 to allow Councilmember Weaver to participate. Motion by Councilmember Wesp, seconded by Councilmember Skogquist, to postpone consideration of a resolution consenting to the use of Special Revenue funds to December 9, 2024. Upon a roll call vote: Mayor Rice, Councilmembers Scott, Skogquist, and Wesp voted in favor. Motion carried. 10. UNFINISHED BUSINESS None. 11. NEW BUSINESS December 2, 2024 (Regular) Page 9 of 11 11.1 Consideration of Adopting an Amended Street Reconstruction Assessment Policy. Assistant City Engineer Ben Nelson shared a background report stating on October 25, 1999, the City of Anoka adopted the Street Reconstruction Assessment Policy. Over the past 25 years, there have been three significant amendments to the policy to provide fairness to all properties associated with the cost of the local improvements as those properties benefit. And just recently, during the August 26, 2024, Budget Worksession Meeting, the Council agreed the need to implement special assessments for the Street Surface Improvement Program (SSIP). At the November 25, 2024, Worksession Meeting, the City Council discussed the draft Street Reconstruction Assessment Policy amendments which included special assessments for different types of street improvement projects. Council provided unanimous consent to move forward with the amendments to the policy and directed staff to include a front footage assessment for all types of street improvement projects. Included with the adoption of the amended policy, the Overlay Projects now contain a street unit and a front footage assessment. To address these new special assessments, staff is recommending that the City Council approve the following revisions to the current policy. Adopt Amended Policy: Based on Section I, subpart (D) of the policy. A substantive change in this Assessment Policy will be submitted to the Council for approval prior to implementation of such change. If it is City Council’s desire to implement special assessments for different types of street improvement projects, the next step is to adopt the amended Street Reconstruction Assessment Policy. It is noteworthy to mention, these amendments to the current policy shall ensure the uniform and consistent treatment of various properties for 2025 and years to follow for surface improvement projects. Furthermore, it is the intention that all properties shall pay a fair share of the cost of local improvements as those properties benefit. New special assessments for street improvement projects will increase additional revenue for the Street Renewal Fund and will keep this program financially sustainable. Based on the current rates in the Master Fee Schedule, the breakdown of the special assessment for a typical 80-foot-wide residential property on a Reconditioning Project and an Overlay Project would be as follows: Reconditioning Project Overlay Project Street Unit Assessment $1,930 Street Unit Assessment $ 965 Street Front Footage Assessment ($10) $ 800 Street Front Footage Assessment ($5) $ 400 Total Proposed Assessment: $2,730 Total Proposed Assessment: $1,365 The annual payment for the total special assessment would be approximately $620 and $320 respectfully, levied over a 5- year term at 5% interest. It is staff’s opinion that the proposed assessment rates; the benefit to the property owners will exceed the assessment. Mr. Nelson outlined the policy revisions in detail that included the addition of types of street improvement projects, establishment of residential and commercial street unit assessment and front footage rates, addition of a five-year term for reconditioning and overlay projects, and added city cemeteries to City-owned property that is exempt from assessments. December 2, 2024 (Regular) Page 10 of 11 Councilmember Skogquist said this is an important thing to do as it is a benefit to property owners to have good streets then asked if it is important to have the water lines if assessed within 10 years be prorated instead of full assessment such as traffic impacts due to a detour. He shared Blaine’s policy language that was based on street life expectancy and suggested it be included in Anoka’s policy as well. Councilmember Wesp agreed and then referred to the home he built on 13th Avenue South in 1998 that had a water line replaced in 1998. Mr. Baumgartner supported the proposed language but clarified if street life expectancy is consistent with Blaine and Anoka or based on common standards in the industry. Mayor Rice said some streets last longer and it is hard to gauge how long a street will last based on future traffic patterns and the newest materials and felt like this was a best guess and hoped the streets last longer than 25 years. Motion by Councilmember Skogquist, seconded by Councilmember Scott, to approve the amended Street Reconstruction Assessment Policy as amended to include the street life expectancy language as outlined in the City of Blaine’s policy. Vote taken. All ayes. 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. Lee shared proposed meetings for December 9 that would include a closed session to consider purchasing property, a special council meeting to consider some year-end agenda items, and a worksession to discuss copyrights and trademarks related to Anoka Halloween. Councilmember Skogquist referred to recent concerns raised by the Heritage Preservation Commission and the Park Board regarding the trails by Gideon’s Gardens and if they were being addressed. Mr. Lee confirmed staff is working to take corrective measures regarding this project. Mr. Nelson said the landscape architect was working to bring the area back to the original intent with an extended boardwalk and would be meeting with the engineer and landscaper tomorrow as well. December 2, 2024 (Regular) Page 11 of 11 ADJOURNMENT Councilmember Wesp made a motion to adjourn the Regular Council meeting Councilmember Scott seconded the motion. Vote taken. All ayes. Motion carried. Time of adjournment: 9:05 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerks