Anoka City Council

May 19, 2025 (Regular) Page 1 of 23 REGULAR MEETING OF THE ANOKA CITY COUNCIL ANOKA CITY HALL CITY COUNCIL CHAMBERS MAY 19, 2025 1. CALL TO ORDER Mayor Skogquist 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 Skogquist, Councilmembers Campbell, Rostad, and Scott. Also present: City Manager Greg Lee; Public Works Director Mark Anderson; Senior City Planner Clark Palmer; Finance Director Brenda Springer; Police Chief Andy Youngquist; Community Development Director Doug Borglund; Liquor Store Manager Kevin Morelli; City Attorney Scott Baumgartner; and Electric Utility Director Del Vancura. Absent at roll call: Councilmember Weaver. 3. COUNCIL MINUTES 3.1 May 5, 2025, Special Worksession. May 5, 2025, Regular Meeting. Mayor Skogquist shared spelling corrections needed for Joelle Alvord throughout, Tom Wyman, and Dr. John Gferer. Councilmember Rostad shared a correction to Page 3 to rail travel in the worksession minutes. Motion by Councilmember Scott, seconded by Councilmember Rostad, to approve the minutes of the May 5, 2025, Special Worksession and the May 5, 2025, Regular Meeting as corrected. Vote taken. All ayes. Motion carried. 4. OPEN FORUM 4.1 Proclamation; Poppy Day May 23, 2025. Jean LaBorde, President of the Anoka American Legion Auxiliary, said she submitted a request for a Proclamation acknowledging May 23, 2025, as Poppy Day in the City of Anoka. She shared how the poppy has been a cornerstone of May 19, 2025 (Regular) Page 2 of 23 the Auxiliary and shared the background of its origin and meaning as a symbol of sacrifice for all wars and their work to protect the poppies from becoming commercialized. She said most are handmade, some by disabled veterans, and any donations collected go to assist veterans and their families. Mayor Skogquist read the Proclamation in full into the record. Councilmember Scott thanked the Auxiliary and shared his appreciation for all the sacrifices made, then reminded the community of the upcoming Memorial Day ceremony. 4.2 Police Activity Update. Police Chief Andy Youngquist shared a detailed background of Officer Ryan Jaremko as an officer in Janesville, then issued the oath of office. Mayor Skogquist asked why Officer Jaremko chose Anoka. Officer Jaremko thanked the Council for the opportunity to serve in Anoka and his family for their support, then shared that he grew up in a close-knit family and that Anoka was well-known to be a family-oriented and well-run department that attracts officers from other agencies and retains those officers. Chief Youngquist shared that he was working with the Anti-Crime Commission to commission a monument in Bravo Park to honor the service of K-9 Bravo. He said the cost of the monument will be $32,000 and shared a fundraising flyer and said he would keep the community updated as to their progress. OTHER INFORMATION UNDER OPEN FORUM Wayne Anderson, Anoka, thanked the Council and staff for their trust over the past 40 years with the Fire Department, then shared that he will be relocating and is therefore resigning from the Fire Board. Mayor Skogquist said Mr. Anderson has dedicated a lot to the Fire Board and thanked him for his service. Derek Lind, Ramsey and Anoka County Elections Integrity Team, shared comments about the current poll pad agreement that was not properly approved by the City or Anoka County but was handled by staff. He explained how the poll pads have risks and liabilities and how two cities have canceled their agreements as well as Isanti County, then commented how the politics around poll pads are changing based on the recent vote of 4-2 at the County. City Manager Greg Lee said staff will review the current agreement and respond to the Council. May 19, 2025 (Regular) Page 3 of 23 Ed Evans, Anoka, said the City is intending to borrow from an interfund loan to finance the construction of the cannabis dispensary in the amount of $2.8 million. He said in 2001 Statute was changed regarding interfund loans that says cities must have a resolution in place that includes the amount of the loan, date of payback, and interest rate, and asked if that resolution has been done. He added that money cannot be lent until this resolution is adopted. Finance Director Brenda Springer said this will be a short-term loan and not a bond, and will be paid back and funded completely by revenue of the dispensary. She said the City just received bids for construction and will be bringing a resolution to Council very soon. Mr. Lee said the item will be presented to Council on June 16 and that no payments to contractors are due until July. Ms. Springer added that any initial costs for this project have been paid out of the General Fund and not the Electric Fund. Bill Folkes, Coon Rapids and Anoka business owner, requested a worksession on the City’s parking ordinance, then referred to the 106 people who have signed his petition to review the ordinance and noted that 6 of them have gone out of business. He shared comments about how customers don’t like coming to Anoka because they receive parking tickets, and said the reason he doesn’t share this list with the City is to protect them from being harassed for opposing the parking ordinance. He shared some misinformation about only one business being opposed, which was incorrect, then reviewed information from the Office of the State Auditor and the Attorney General’s Office about cities lacking the administrative authority to issue tickets and how there is no process in place to do so in Anoka. He shared that he recently received a ticket that was issued in error, and the need for officers to be more aware of where permit parking is actually located. Mr. Lee said the City has been working with Mr. Folkes on this topic for some time and that the City has initiated a survey of just business owners for their input as well as another for property owners which will be shared with the Parking Advisory Board (PAB) first, then brought to Council for review. Chief Youngquist applauded Mr. Folkes for finding that his survey may support some changes, then clarified the difference between a moving violation and a parking violation. City Attorney Scott Baumgartner clarified that only certain offenses can be done administratively, which includes parking violations. He shared how Coon Rapids used to have this program but had to stop because they were not sending a portion of the fees to the State. May 19, 2025 (Regular) Page 4 of 23 Mr. Folkes added the Statute also includes an administrative program that can only be done with the consent of the Commissioner. Mayor Skogquist thanked Mr. Folkes for the update and said he looked forward to the PAB’s recommendation because new data is always good but also cautioned against making many changes until we know more about the Anoka County Government Center's potential jail expansion. Joelle Alvord, Anoka, commented about the poll pads and errors on the voter registration lists and said as a former election judge she was concerned and encouraged the Council to review ACEIT’s information further, then shared about the recent announcement to close the jail in Stillwater and how this may affect Anoka’s jail expansion. 5 PUBLIC HEARING(S) 5.1 Recommencement of Existing Gas Franchise Fee with CenterPoint Energy. ORD/Recommencement of Existing Gas Franchise Fee with CenterPoint Energy. (1st Reading) Ms. Springer shared a background report stating the City reinstated the gas fee on October 7, 2019, effective from January 2020 through December 31, 2023. The gas franchise fee more equitably assigns right-of-way costs with users, reduces reliance on state aids and taxes, and provides funding for the street infrastructure replacement program. The fee provides approximately $418,000 annually to the street renewal program. Annual costs for about a mile of road are about $5.2 million. Direct assessment of properties, state aids, transfers from other funds, and interest earnings make up the balance of funding sources. The various utility funds pay for the portion of infrastructure costs relating to the individual utility, i.e., water, sewer, storm sewer, and electric. Through the franchise fee, the City of Anoka is able to charge private companies access to public right-of-way. The City of Anoka is responsible for the management of about 71.5 miles of right-of-way. The right-of-way provides land access to the homes, business, and other properties in the City of Anoka. The alternative to a gas franchise fee would be to increase annual assessments or increase the tax levy to include street renewal costs. The City currently assesses R-1 and R-2 street renewal properties at $4,820 per unit plus $25 per foot frontage. Other properties are double that of residential properties. If the City were to consider an additional assessment to cover costs, the assessment for R-1 and R-2 properties would need to double, as well as other properties doubling. If the City were to consider an additional tax levy, it would impact an average home of $305,200 by $52 a year or $4.33 a month. This same property is currently paying $3.48 a month in a gas franchise fee; staff is proposing an increase to $4.00 per month. Mayor Skogquist opened the public hearing at 7:40 p.m. May 19, 2025 (Regular) Page 5 of 23 Dr. Evans asked how the fee was determined and if we have added a lot of gas lines since the first time, and if the same formula was used. Mayor Skogquist said the fee was based per account as a flat rate. Ms. Springer said the base rate was likely based on the number of accounts and is now being renewed. She said it was increased a nominal amount based on the amount to construct a street. Dr. Evans said he felt the City was making up a fee based on the number of customers and should be based on something else such as the cost of the roadway. Mayor Skogquist said the rate is based if you have a service, and the increase of $4 will go to help replace a street when needed. Councilmember Rostad explained that the dollar amount is known, and the increase was based on the anticipated shortfall and projected cost to repair the street. Dr. Evans said a better explanation is needed for the base rate prior to second reading. Mayor Skogquist said the understanding is that when CenterPoint redid their lines, the amount was based on the patch replacement to replace the entire line, as their work took life away from the road. Mr. Lee added exclusive rights to the City’s right-of-way is invaluable to CenterPoint. Councilmember Scott said this increase will help subsidize road repairs and drives the new cost basis, and seems to be a similar proportion to a mile of road to construct; however, we should have some clarity on how the $3.48 was first established. Ms. Springer said this fee had been in place for many years and increases each time and will, and while it will bring $418,000, this amount doesn’t even cover a fraction of road replacement, and that use other funds must be used. Being no further comments, Mayor Skogquist closed the public hearing at 7:57 p.m. NOTE: After a motion by Councilmember Rostad, seconded by Councilmember Scott, Item 9.1 was moved up to this point in the agenda. Motion by Councilmember Scott, seconded by Councilmember Campbell, to hold first reading of an ordinance recommencing and increasing the existing gas franchise fee within the City of Anoka, Minnesota (with CenterPoint Energy), with the requested clarity on the fee establishment prior to second reading. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott voted in favor. Motion carried. May 19, 2025 (Regular) Page 6 of 23 5.2 Recommencement of Existing Gas Electric Fee with Connexus Energy and Anoka Municipal Utility. ORD/Recommencement of Existing Electric Franchise Fee with Connexus Energy and Anoka Municipal Utility. (1st Reading) Ms. Springer shared a background report stating this is the first reading for recommencement of the existing electric franchise fee for the City of Anoka. The City recommenced the electric franchise fee with Connexus Energy on September 21, 2020, effective from September 1, 2020, through August 31, 2025. The City is also recommencing its’ electric franchise fee ordinance from 1995 with the City of Anoka Electric Municipal Utility as the franchisee, effective from September 1, 1995, through August 31, 2025. The electric franchise fee assigns right-of-way costs to users and provides funding for the street maintenance. The fee provides approximately $892,000 annually to the general fund supporting street maintenance costs. Annual costs for maintaining streets are about $1.3 million. Through the franchise fee, the City of Anoka Electric Utility transfers $.004 cents per kWh usage in the City (about $873,000) to the general fund for access to public right-of-way. It also collects $.004 cents per kWh usage in the City (about $19,000) from Conexus Energy for access to public right-of-way. The City of Anoka is responsible for the management of about 71.5 miles of right-of-way. The right-of-way provides land access to the homes, business, and other properties in the City of Anoka. Having a gas franchise fee requires the City to also have an electric franchise fee. Without the electric or gas franchise fees, the City would need to consider replacing this revenue source with a tax levy of about $1.3 million. If the City were to consider an additional tax levy, it would impact an average home of $305,200 by $162 a year or $13.50 a month. This same property is currently paying $4 a month in a gas franchise fee. Mayor Skogquist opened the public hearing at 8:00 p.m. Dr. Evans said Connexus only serves a specific area of the City and is likely only a few hundred customers, and that a second company provides energy, then spoke about the need to have a fee because the company is using the City’s lines. He said he doesn’t see where the Anoka Municipal Utility is receiving the money being charged and that the report should be changed. Ms. Springer explained that we don’t charge Anoka residents a franchise fee, but collect the fee only. She said it is based on the agreement with the utility and the City, and how they choose to pass it on or not is up to the Council. Dr. Evans said this is a separate business and that the amount should be charged. Mr. Baumgartner said the ordinance is clear that collected fees be paid to the City, and that it is important that the ordinance language is correct because that’s what covers the actions of the City. May 19, 2025 (Regular) Page 7 of 23 Being no further comments, Mayor Skogquist closed the public hearing at 8:06 p.m. NOTE: After a motion by Councilmember Scott, seconded by Councilmember Rostad, Item 9.1 was moved up to this point in the agenda. Motion by Councilmember Scott, seconded by Councilmember Campbell, to hold first reading of an ordinance recommencing the existing electric franchise fee within the City of Anoka, Minnesota (with Connexus Energy and City of Anoka Electric Utility). Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott voted in favor. Motion carried. 6 CONSENT AGENDA Motion by Councilmember Scott, seconded by Councilmember Campbell, to approve the Consent Agenda as presented. 6.1 Approve Verified Bills. 6.2 Revising and Setting Council Calendars. 6.3 Waiving Monetary Limits for Liability Coverage and Annual Insurance. 6.4 Issuance of Special Event Permit; Anoka Riverfest and Craft Fair. 6.5 Recommended Approval of an LG220 Gambling Permit; Anoka Area Chamber of Commerce. 6.6 Issuance of a Temporary Liquor License; Minnesota Food Truck Association August 16, 2025. 6.7 Issuance of a Social District License; Forward Events (Minnesota Food Truck Festival). 6.8 Issuance of Temporary Liquor Licenses for 2025; Anoka Lions. Club. Vote taken. All ayes. Motion carried. 7. REPORTS OF OFFICERS, BOARDS, AND COMMISSIONS None. 8. PETITIONS, REQUESTS, AND COMMUNICATION May 19, 2025 (Regular) Page 8 of 23 None. 9. ORDINANCES AND RESOLUTIONS 9.1 ORD/Recommencement of Existing Gas Franchise Fee with CenterPoint Energy. ACTED UPON AFTER PUBLIC HEARING 9.2 ORD/Recommencement of Existing Electric Franchise Fee with Connexus Energy and Anoka Municipal Utility. ACTED UPON AFTER PUBLIC HEARING NOTE: After a motion by Councilmember Rostad, seconded by Councilmember Scott, Items 9.9, 9.10, and 9.11 were moved to this point in the agenda. 9.3. RES/Recommended Approval of an LG230 Gambling Permit; Andover Huskies Youth Hockey Association, Pull Tabs at Anoka County Fairgrounds July 22-27, 2025. RESOLUTION Mr. Lee shared a report stating Andover Huskies Youth Hockey Association has again submitted an application for a State issued LG230 Off Site Gambling Permit to allow them to sell Pull Tabs at the Anoka County Fair, July 22-27, 2025. They held this permit since 2022. This is a State issued license, but requires the approval of the municipality in which the event will take place. This is a temporary pull tab license. Because it is temporary, the City does not contact other Anoka entities to give them the first option. We do that process only for the Premise Permits applications, because that is a permanent pull tab stand, and it is required that we do that for Premise Permits (Permanent Pull Tab locations) per our City Code. Staff has reviewed the application, and no concerns or objections have been expressed. Mayor Skogquist asked about the policy for showing preference to local organizations before outside organizations can apply. Mr. Lee said because this is a temporary pull tab license the policy does not apply. Motion by Mayor Skogquist, seconded by Councilmember Campbell, to adopt a resolution recommending the issuance of a State-issued LG230 off-site gambling permit for Andover Huskies Youth Hockey, sale of pull tabs at Anoka County Fair, July 22-27, 2025. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott voted in favor. Motion carried. May 19, 2025 (Regular) Page 9 of 23 9.4. RES/Electric Utility Rate Increase. RESOLUTION Ms. Springer shared a background report stating that on May 5, 2025, the City held a public hearing, presented the proposed electric rate increase, and heard testimony from the public. The rate increases proposed tonight, including the 1% dedicated to City park capital needs, results in approximately a 1.77% increase to kilowatt hour rates, and 2.03% to demand rates. The 1% dedicated for park capital will sunset December 31, 2027. The last electric utility rate increase was effective January 1, 2024 at 3%. The proposed increases, effective June 1, 2025, are estimated to generate approximately $215,000 in additional utility revenue and $133,000 in park capital funding for fiscal year 2025. The proposed increase in the electric consumption and fixed rates is $1.78 per month for the average residential electric customer, or about 1.86%. Councilmember Scott said there are two components of this increase, one is based on the study but is still lower than surrounding companies and the second is the 1% for the park capital fund to reinvest in park infrastructure which is needed. He said the resolution includes a sunset clause which should occur in a few years and shift the burden to the cannabis revenue. Mayor Skogquist said the rate has been pretty flat for a long time while Connexus has been increasing 6-7% so this 2% increase is reasonable, especially if 1% goes to park capital. Motion by Councilmember Scott, seconded by Councilmember Rostad, to adopt a resolution adopting an electric utility rate increase. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott voted in favor. Motion carried. 9.5. RES/Water Utility Rate Increase. RESOLUTION Ms. Springer shared a background report stating on May 5, 2025, the City held a public hearing and presented the proposed water utility rate increase and there were no objections. Annually, the City Council reviews the City utility rates during the budget process. This review process involves looking at long-term capital expenditures by annually updating the Capital Improvement Plans for 5 years out. In 2024, the City contracted with Ehlers, Inc. to conduct a cost of service and rate study. The results of this study were provided to Council at a work session on March 24, 2025. The study reviewed the current rate structure and made recommendations that included changing the fixed monthly charge May 19, 2025 (Regular) Page 10 of 23 dependent on the water meter size, reducing the rate for tier 1 and tier 2 water use, increasing the tier 3 rate and implementing and new tier 4 rate. These tiered rates are designed to promote water conservation. The amount of water for each tier was adjusted so that water conservation is promoted, where the current rate structure had 97% of water billed in the lowest tier. The proposed changes, effective June 1, 2025, are not projected to have an impact on 2025 revenues. Some lower consumption water users will see a decrease to their bill, and some high-water users will see increases. The effects of these adjustments to rates and tiers are meant to spread the costs of providing clean and safe water equitably among water users. Mayor Skogquist said the change is negligible as it balances out but there were concerns with those who irrigate and felt his own water bill didn’t increase that much and will likely most affect those who use a lot of water. Motion by Councilmember Campbell, seconded by Councilmember Scott, to adopt a resolution relating to the adoption of a water utility rate increase for 2025. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott voted in favor. Motion carried. 9.6. RES/Sewer Utility Rate Increase. RESOLUTION Ms. Springer shared a background report stating on May 5, 2025, the City held a public hearing and presented the proposed sewer utility rate increase and there were no objections. Annually the City Council reviews the City utility rates during the budget process. This review process involves looking at long-term capital expenditures by annually updating the Capital Improvement Plans for 5 years out. In 2024, the City contracted with Ehlers, Inc. to conduct a cost of service and rate study. The results of this study were provided to Council at a work session on March 24, 2025. The study reviewed the current rate structure and made recommendations that included changing the fixed monthly charge from a rate dependent on customer class, to a single fixed monthly charge that is the same for all users, and an increase to the consumption charge of 4%. The average Anoka resident could expect an increase of approximately $4.85 per month in sewer charges. Increases to sewer disposal charges are the largest expense for the utility at 68% of total expenses in 2024. She said the Metropolitan Council increases have an average of 8% annually. In order to keep pace with the increased cost of disposal, and also raise funds for necessary infrastructure improvements, rates will need to be reviewed and increased annually. The proposed changes, effective June 1, 2025, are projected to raise revenues of $150,000 for the 2nd half of 2025. These funds will be collected in anticipation of the upcoming lift station and sewer capacity projects that are currently projected for 2027 and 2028. May 19, 2025 (Regular) Page 11 of 23 Mayor Skogquist clarified the majority of this increase will go towards the costs charged by the Metropolitan Council. Councilmember Rostad said this is a small increase compared to the 8% increase charged by the Metropolitan Council. Motion by Councilmember Scott, seconded by Councilmember Campbell, to adopt a resolution relating to adoption of a sewer utility rate increase for 2025. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott voted in favor. Motion carried. 9.7. RES/Storm Water Utility Rate Increase. RESOLUTION Ms. Springer shared a background report stating that on May 5, 2025, the City held a public hearing and presented the proposed Storm Water utility rate increase, and there were no objections. Annually the City Council reviews the City utility rates during the budget process. This review process involves looking at long-term capital expenditures by annually updating the Capital Improvement Plans for 5 years out. In 2024, the City contracted with Ehlers, Inc to conduct a cost of service and rate study. The results of this study were provided to Council at a work session on March 24, 2025. The study reviewed the current rate structure and made a rate increase recommendation of 7.5% for all rate types. The single-family residential fee will increase by $0.39 per month. The proposed changes, effective June 1, 2025, are projected to raise revenues of $32,500 for the second half of 2025. These funds will be collected in anticipation of upcoming projects including repairing outfalls along the Mississippi River to improve water quality and sediment removal. She noted one correction to the resolution to include storm water rate. Motion by Councilmember Scott, seconded by Councilmember Rostad, to adopt a resolution relating a stormwater utility rate increase for 2025 as corrected. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott voted in favor. Motion carried. 9.8.a. ORD/Amending Chapter 46; Controlled Substances, Article XIV, Division 2. Drug Paraphernalia. 2nd Reading Mr. Borglund shared a background report stating Council introduced the ordinance amendment and held first reading at their regular City Council meeting on May 5, 2025, and no changes to the proposed amendment(s) were made. In the May 19, 2025 (Regular) Page 12 of 23 State of Minnesota, cannabis and associated paraphernalia have been legalized. Existing City regulations regarding drug paraphernalia need to be amended to recognize cannabis paraphernalia. This matter was discussed with the City Council during a work session on September 23, 2024, where the Council reached a consensus to bring forward a draft ordinance for consideration. The proposed amendments include differentiating between drug paraphernalia and cannabis paraphernalia, adding a definition of cannabis paraphernalia in accordance with Statute, amending the definition of drug paraphernalia with references to the State Statute, revising the language to clearly prohibit the sale of drug paraphernalia, allowing the sale of cannabis paraphernalia, restricted to licensed cannabis retail businesses that are licensed by the State and registered with the City. Mayor Skogquist thanked staff for making this clear and using Statute definition for clarity. Motion by Councilmember Campbell, seconded by Councilmember Rostad, to hold second reading and adopt an ordinance amending Chapter 46 Controlled Substances; Article XIV, Division 2 Drug Paraphernalia of the Code of the City of Blaine. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott voted in favor. Motion carried. 9.8.b. RES/Summary of Ordinance Amending Chapter 46; Controlled Substances, Article XIV, Division 2. Drug Paraphernalia. RESOLUTION Motion by Councilmember Campbell, seconded by Councilmember Rostad, to adopt a resolution providing summary publication amending Chapter 46; Controlled Substances, Article XIV, Division 2, Drug Paraphernalia. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott voted in favor. Motion carried. 9.9 ORD/Amending Chapter 22, Adding Article XV Commercial Pedal Cars. 1st Reading Mr. Berglund shared a background report stating staff has been working with Pedal Pub Twin Cities and its owner Anthony Johnson. He said Pedal Pub is very excited to be a part of the City’s emerging Entertainment District. He shared a video of the proposed attraction and said Pedal Pub currently operates in St. Paul and Minneapolis. Anthony Johnson, Pedal Pub, shared a presentation that highlighted his proposed operation, including the proposed pedal pub route. He said they were a global business with over 150 locations and 50,000 tours nationally and is the largest May 19, 2025 (Regular) Page 13 of 23 party bike experience in the world. He explained there are also family-friendly tour options available that don’t include alcohol and how all IDs are checked for tours that include alcohol and that patrons are provided a wristband for all bar owners to know they are over 21 years of age. He outlined their safety plan to prevent overserving, how pilots are certified for safe pedal pub operation and training, and how they address inappropriate behavior, then outlined Pedal Pub Anoka and how they are working to sell with bar owners to sell pre-packaged beverages that are co-branded with marketing efforts. He said they intend to start the tours outside City Hall and are currently working on an agreement with MaGillycuddy’s. Mr. Borglund reviewed the proposed ordinance in detail that would establish this article to include a license for the business and pedal cars. He outlined the safety standards, license fees, inspections, and that no auxiliary lighting is allowed, then said the Police Chief has been providing feedback on the development of the ordinance language and the proposed development of a route and proposed hours. He said only non-distilled alcoholic beverages would be allowed and must be purchased from a social district partner with a branded Koozie for cans instead of the branded cups. He explained how cannabis or smoking would not be allowed and that the ordinance ensures trash is disposed of properly, adding the ordinance was modeled after the City of St. Paul. Mayor Skogquist said the license for the business, cars, and drivers all include potential penalties. Mr. Baumgartner spoke about the administrative penalties being proposed and presumptive penalties and the importance to have the three different licenses which allows for administrative penalties. Mr. Borglund shared the proposed route that starts at 2nd Avenue and Jackson Street. Councilmember Scott asked about the proposed agreement with MaGillycuddy’s and the pre-purchase of beverages. He said the route may change over time and if needed could it be changed, then asked about the number of tours each day and times. Mr. Johnson said they intend to offer tours Thursday through Saturday from 11:00 a.m. to 9:00 p.m. and that they would run every two hours. Councilmember Scott suggested coordinating with other events in the City such as the classic car show, Anoka Halloween, and the Anoka Historical Society, then confirmed no cannabis drinks would be allowed and asked what happens if overserving occurs. Mr. Johnson explained the overserved patron would not be allowed on the car and would be returned to the starting location. Councilmember Rostad clarified the route and asked if there are stops along the way and if only two servings were allowed on the ride. Mr. Johnson said the tour would stop at two bars, which haven’t been identified yet, to be allowed to May 19, 2025 (Regular) Page 14 of 23 purchase pre-packaged alcoholic beverages if they wish, and confirmed only two would be allowed. Councilmember Rostad said the proposed storage unit at 517 Johnson Street seems far away. Mr. Johnson said the car is equipped with a small electric motor to drive it quickly to the downtown area. Councilmember Rostad said she appreciated the thoughtfulness about impacts on surrounding property owners and residents and suggested an education component be included, such as when the car show is occurring. Councilmember Scott suggested avoiding offering tours in the car show area altogether. Mayor Skogquist clarified if not in the ordinance can this be changed. Mr. Borglund if adopted the applicant would have to apply for a permit and agreed the route could change if needed as the driver has the authority to change the route if necessary due to traffic, etc. He suggested with regard to the ongoing events that language be added to reserve the right to suspend or alter the route for events such as Anoka Halloween. Councilmember Rostad asked who has the final authority to make those route changes. Mr. Baumgartner said whoever the Council wishes to designate but added the Police Chief was instrumental in establishing the proposed route. Councilmember Scott thanked Mr. Johnson for his proposal and said he believes this will be a great addition in the City. He suggested partnering with businesses to gather their feedback and suggested a trial of two years to allow for changes if needed. Mayor Skogquist agreed, saying this should be done in a similar fashion to the first year of the social district to make adjustments as necessary and thanked Mr. Johnson for bringing this forward, then asked about driver interaction with patrons. Mr. Johnson said the drivers work to engage the patrons through silent games such as trivia and scavenger hunts. Ms. Alvord asked questions regarding the size and if they are only allowed on City streets, then asked about littering and if there will be public forum for residents to comment. Mr. Borglund confirmed the cars cannot be on City sidewalks or trails unless approved by the City in advance. Mr. Johnson confirmed that trash will be the responsibility of the driver and that they do recycle. Motion by Councilmember Scott, seconded by Councilmember Rostad, to hold first reading of an ordinance amending Chapter 22; establishing Article XV Commercial Pedal Cars of the Code of the City of Anoka, Minnesota, with the May 19, 2025 (Regular) Page 15 of 23 added language with the right to suspend or amend the route as per the Police Department. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott voted in favor. Motion carried. 9.10 ORD/Amending 2025 Master Fee Schedule, Commercial Pedal Cars. 1st Reading Mr. Berglund shared a background report stating staff is proposing amendments to the 2025 Master Fee Schedule that would establish new fees related to Commercial Pedal Cars as proposed: • Pedal Car Business License: $300.00 • Pedal Car Vehicle License: $100.00 • Pedal Car Drivers’ License: $50.00. He said they were based on St. Paul’s fees and felt reasonable. Councilmember Scott said the fees seem reasonable as he didn’t want to be prohibitive to new businesses and their partners. Mayor Skogquist asked if it is typical to have the license fees in one section of the ordinance and administrative penalties in another asked for clarity to ensure they can be changed if needed. Mr. Baumgartner said both are included for transparency and said if we find the penalty doesn’t work, then we’ll likely recommend pulling them from City code to address administratively instead. Motion by Councilmember Scott, seconded by Councilmember Rostad, to hold first reading of an ordinance amending the 2025 Master Fee Schedule and establishing fees for commercial pedal cars of the City of Anoka, Minnesota. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott voted in favor. Motion carried. 9.11 ORD/Approving Real Estate Lease for 517 Johnson Street to Allow for Commercial Pedal Pub Storage. 1st Reading Mr. Berglund shared a background report stating the City of Anoka and Relic Creative, LLC, dba Minneapolis Pedal Pub, lease garage storage space at 517 Johnson. The space would be used for storage of a commercial pedal pub. Highlights of the Lease include: • Property: Garage portion of the building at 517 Johnson Street • Term: Commence in June (TBD), initially runs through the end of 2025, with automatic renewal for one year after that, includes a 30-day out upon notice by either party for any reason. • Use: Storage of a Pedal Pub • Rent: $150.00 per month (3% escalator on a yearly basis). Not the entire structure, just the garage space. He spoke about the potential for another site, such as along the river, and how we have the space available and the rent includes covering electricity for charging. May 19, 2025 (Regular) Page 16 of 23 Mr. Baumgartner said he felt this was a good lease as it allows for termination if needed on both sides and utilizes a vacant property that is currently not collecting any revenue. He said the rent was reasonable and that the lease included indemnification, insurance, and an escalation clause. Councilmember Scott said this was a good lease and allows the term to end should development occur quickly, and said he liked that the City isn’t responsible for any improvements to the building. He asked if staff did any research on private space rental amounts. Mr. Baumgartner shared that he rents a 10x10 climate-controlled space for his business and pays $90-$100 a month, and felt the amount was reasonable. Ms. Alvord confirmed only one unit is being rented and asked why the term ended December 31, since the cars won’t be used during the winter. She commented that the amount seemed a fairly inexpensive rate as boat slips rent for a lot more. Mr. Baumgartner noted that there are only so many boat slips available and that this space is not collecting any rent right now. Mayor Skogquist said he felt this was a good solution for now and a good use of the space. Motion by Councilmember Rostad, seconded by Councilmember Campbell, to hold first reading of an ordinance authorizing the conveyance of real property by lease to Relic Creative, LLC, dba Minneapolis Pedal Pub. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott voted in favor. Motion carried. Scott/Rostad move forward. 9.12 ORD/Amending Chapter 46; Article V, Division I, Section 46-91 Consumption of Alcohol in Public. 1st Reading Mr. Berglund shared a background report stating the existing Chapter 46; Article V., Division I., Section 46-91 Consumption of Alcohol in Public needs to be amended due to the establishment of the Social District, Outdoor Sidewalk Seating, and consideration of a Commercial Pedal Car (Pedal Pub) to recognize and exempt these three programs. Motion by Councilmember Scott, seconded by Councilmember Rostad, to hold first reading of an ordinance amending Chapter 46; Article V. Division 1. Section 46-91 consumption of alcohol in public of the Code of the City of Anoka. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott voted in favor. Motion carried. May 19, 2025 (Regular) Page 17 of 23 NOTE: After a motion by Councilmember Scott, seconded by Councilmember Rostad, Item 9.14 was moved up to this point in the agenda. 9.13 RES/Amending Joint Powers Agreement; Anoka-Champlin Fire Department. RESOLUTION Mr. Lee shared a background report stating that on January 17, 2024, the Anoka- Champlin Fire Board made a motion to recommend changes to Article III Contributions section of the Joint Powers Agreement between the cities of Anoka and Champlin. The Fire Board also made a motion recommending that the proposed changes be presented to the respective City Councils for consideration and approval. On March 25, 2024, the City Council discussed the Joint Powers Agreement Formulary for Anoka-Champlin Fire Department. On June 17, 2024, the City Council reviewed and considered revisions to the Anoka-Champlin Fire Department Joint Powers Agreement. At that time, it was pointed out that all Fire Board members were of the understanding that all fixed costs, which made up over 83% of the total Fire Department costs, were to be split between the two cities based on a 50/50 split. However, the proposed revisions to the Joint Powers Agreement were not written that way. Instead, the proposed revision has the total costs split into three components, and only one-third (1/3) was split 50/50. Because of this, the Anoka City Council made a motion on June 17, 2024, to clarify this issue by adopting the changes to the Anoka-Champlin Fire Department Joint Powers Agreement based on the recommendation of the Anoka- Champlin Fire Board with a friendly amendment that represents the fixed costs be split 50/50. The proposed Anoka-Champlin Fire Department Joint Powers Agreement has since been revised to reflect the Anoka City Council’s friendly amendment and the Anoka-Champlin Fire Board’s original understanding that all fixed costs are to be split on a 50/50 basis. He shared the current proposed Anoka- Champlin Fire Department Joint Powers Agreement as recommended by the Anoka-Champlin Fire Board. Should the Anoka City Council choose to adopt the changes to the Anoka-Champlin Fire Department Joint Powers Agreement, based on the recommendation of the Anoka-Champlin Fire Board, a motion should be made to do so. The Anoka-Champlin Fire Board’s recommended changes to the Joint Powers Agreement will increase the City of Anoka’s contribution to the Fire Department to $90,330 per year based on 2025 data, but keeps the Fire Department intact. Councilmember Scott said this JPA will get us back to the intent in the beginning, as the variable cost has shifted over the years and will likely continue more towards Champlin, but for now is fair. Councilmember Rostad said this joint department is a great opportunity to work together to manage vast resources and share the cost, and was pleased to see this continue. May 19, 2025 (Regular) Page 18 of 23 Mayor Skogquist said he appreciated this language, adding that while we pay more it is because we use more resources and is fair and can be reevaluated again in five years based on cost increases. Motion by Councilmember Scott, seconded by Councilmember Rostad, to adopt a resolution to ratify the recommended changes to the Anoka-Champlin Fire Department Joint Powers Agreement. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott voted in favor. Motion carried. 9.14 RES/Conditional Use Permit for 601 East Main Street for a Drive Through/Pick Up Window. RESOLUTION Senior City Planner Clark Palmer shared a background report stating Michael Jamieson with Subsensation LLC is requesting approval of a conditional use permit (CUP) for the property located at 601 E. Main Street to establish a food pick-up-only window. The applicant is currently working on establishing a sandwich shop at the subject property. The subject property was formerly the location of a credit union. The applicant is currently renovating the building. Minimal exterior site improvements are planned, so a site plan review is not required. A building permit has been issued, and work is ongoing. The subject property is zoned Main Street Mixed Use, East Main Street Subdistrict 2. Drive throughs are allowed with a CUP. The building already has a drive-through facility; however, the applicant plans to install a new sliding window. Per the applicant, “As part of our renovation, we removed the previous glass window and installed a sliding service window. This window is designated exclusively for the pickup of prepaid online orders—it will not be used for on-site ordering, payment transactions, or menu displays.” The Planning Commission reviewed the application and held a public hearing at their regular meeting on May 6, 2025. No public comments were received. The Planning Commission recommended approval of the CUP with the following condition: 1. A minimum 6-foot-tall privacy fence shall be maintained along the north property line that abuts residential property. Michael Jamieson, applicant, said he purchased the building at 601 East Main Street and was two weeks away from opening and was very excited to be in Anoka and looking forward to being part of the community. Councilmember Scott thanked Mr. Jamieson for the investment and helping with congestion. Mr. Jamieson said Anoka has many events and that he operated food trucks in the past and that Anoka is a close-knit community that he wants to be part of. May 19, 2025 (Regular) Page 19 of 23 Mayor Skogquist thanked Mr. Jamieson for the investment in Anoka. Mr. Jamieson said he is working to improve the exterior of the building, including the pylon sign, and to help with congestion in the parking lot. Motion by Councilmember Scott, seconded by Councilmember Rostad, to adopt a resolution for approval of a conditional use permit, 601 East Main Street. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott voted in favor. Motion carried. 9.15 RES/Conditional Use Permit for 700 Lund Boulevard to Establish a Sports Training Facility. RESOLUTION Mr. Palmer shared a background report stating Dennis Brown is requesting approval of a conditional use permit (CUP) for the property located at 700 Lund Blvd. The applicant is seeking to establish a sports training facility at the subject property specializing in baseball and softball training. The property is zoned M-1 Light Industrial. The proposed use is not specifically listed as a permitted use. The M-1 district allows CUPs to be issued for “Retail and service establishments providing goods and services that are complimentary (sic) to the principal uses in the district.” The Applicant is seeking to lease approx. 6000 sq. ft. of space for their business. The entire building is approx. 55,000 sq. ft. and is owned by Cool Air Mechanical. The owner is seeking to lease some additional space within their building. The Planning Commission reviewed the application and held a public hearing at their regular meeting on May 6, 2025. No public comments were received. The Planning Commission recommended approval of the CUP with the following condition: 1. All onsite sports training and other business-related activities shall only be conducted within the principal building. 2. The Applicant shall obtain any necessary building permits and receive a Certificate of Occupancy, if applicable, by the Anoka Building Official prior to establishing occupancy at the property. Councilmember Rostad asked about the building capacity. Mr. Palmer said they intend to have two batting lanes but that staff will ensure code is met for occupancy, etc. and that the venue will be more of a private lesson business model. Councilmember Scott said this building is where Vapor Trail used to be located and said this will be a nice reuse of this building. Mayor Skogquist agreed that this is a great location for this type of use. Mr. Palmer said the high ceilings and few interior columns work well for this type of May 19, 2025 (Regular) Page 20 of 23 use, and this amendment would allow for a use not otherwise outlined in code as light industrial/manufacturing. Councilmember Scott commented that indoor space is limited, so this is a great way to provide additional space. Councilmember Rostad agreed and said this is a good way to test the waters for this type of gathering space. Motion by Councilmember Scott, seconded by Councilmember Rostad, to adopt a resolution for approval of a conditional use permit, 700 Lund Boulevard. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, Rostad, and Scott voted in favor. Motion carried. 9.16 ORD/Zoning Map Amendment Rezoning Properties to R-1 Low Density Residential. 1st Reading Councilmember Scott said he would be abstaining from discussion and consideration of this item due to a conflict of interest. Mr. Palmer shared a background report stating that in December 2021, the City Council adopted the 2040 Comprehensive Plan, including adoption of the 2040 Future Land Use Map. The future land use map is a planning tool used by cities to outline their vision for how land will be used and developed over time. It helps guide decision-making regarding zoning, infrastructure, and environmental conservation. The map typically shows areas designated for residential, commercial, industrial, institutional, recreational, and other uses, ensuring balanced growth and efficient land use. The future land use map is separate from the zoning map. One area of the City that was re-guided from its previous land use under the 2030 Comprehensive Plan was an area generally described as south of Bridge Square/Walker, between River Avenue and 2nd Avenue, north of Madison Street. The subject area includes a total of 12 parcels. Seven (7) of the parcels are currently zoned R-3 High Density Residential; four (4) of the parcels are zoned B-4 Limited Business; and one (1) property is zoned Riverspointe Planned Residential Development which is located at the northeast corner of River Ave and Madison St. (Unaddressed Parcel PID: 12-31-25-11-0135). See Figure 3 for a comparison of the existing and proposed zoning. Page 156 of 206 The R-3 High Density Residential District (shown in brown) is intended to create, preserve, and enhance areas for higher densities. The R-3 High Density Residential District is typically appropriate only in areas served by public utilities, with good accessibility to thoroughfares, public community centers, libraries, and shopping centers, and where such development fits the comprehensive plan and planning policies. The B-4 Limited Business District is intended to provide a district for a limited range of office or professional service needs at the periphery of residential neighborhoods or integrated with residential uses. The district was May 19, 2025 (Regular) Page 21 of 23 established to provide locations for businesses that typically serve nearby neighborhoods. Because of compatibility factors adjacent to residential uses, other nonretail uses may be permitted only with a conditional use permit. The district is typically located near the intersection of collectors and thoroughfares in areas that are otherwise developed with residences. In 2022, a proposal was introduced to rezone the area to R-1 Low Density Residential to align with the city’s Comprehensive Plan. Although the City Council considered the rezoning, it was not adopted due to an insufficient number of affirmative votes. The city is required to update its ordinances and policies to reflect the intent of the adopted comprehensive plan. This means the area will need to be rezoned to R-1 Low Density Residential to be consistent with the 2040 Comprehensive Plan, as there is currently an inconsistency between the city’s comprehensive plan and existing zoning. The other option is to amend the comprehensive plan. The proposed zoning for this area is R-1 Low Density Residential, which primarily allows detached single-family homes at densities of 1 – 4 units per acre. The purpose of the R-1 district is to provide a district for single-family detached dwellings in those areas where such development is consistent with the low-density residential designation of the community plan (Comp Plan) and compatible with the surrounding land use characteristics. If the city desires not to proceed with the rezonings, staff may be directed to prepare an amendment to the 2040 Comprehensive Plan consistent with the preferred zoning. With the proposed zoning change, staff would also like to provide information on how it may affect the River Ave. lot, which is planned for the sale and construction of a single- family home. The lot is currently zoned Riverspointe PUD, with an underlying zoning designation of R-3 High Density Residential. The zoning standards for single-family homes in the R-3 (as well as the R-2 Medium Density Residential) are largely similar to those in the R-1 Low Density Residential district, though there are some differences. A comparison table outlining these variations was referenced. The Planning Commission reviewed the application and held a public hearing at their regular meeting on May 6, 2025. No public comments were received. The Planning Commission recommended approval of the zoning map amendment/rezoning of the subject area. Mayor Skogquist confirmed that the Planning Commission recommended their approval of this ordinance. Councilmember Rostad said it was nice to see the zoning match the land use and was pleased the Planning Commission approved the ordinance language as well. Mayor Skogquist asked if there are other areas in the City that don’t match zoning and land use. Mr. Palmer said none that staff is aware of and said staff confirmed all parcels for consistency, but that some parcels may be addressed with the next Comprehensive Plan update. May 19, 2025 (Regular) Page 22 of 23 Motion by Councilmember Rostad, seconded by Councilmember Campbell, to hold first reading of an ordinance approving a zoning map amendment rezoning to R-1 Low Density Residential. Upon a roll call vote: Mayor Skogquist, Councilmembers Campbell, and Rostad voted in favor. Councilmember Scott abstained. Motion carried. 10. UNFINISHED BUSINESS None. 11. NEW BUSINESS None. 12. UPDATES AND REPORTS 12.1 1st Quarter Financial Report. Ms. Springer shared a background report stating revenues were up $300,000 from 2024, expenditures up $1.7 million from 2024, mostly in the utility accounts. She shared General Fund revenue comparisons were up $176,000 from 2024, and that general fund operating expenditure comparisons from 2024 were largely due to street work and the HRRD ramp. She outlined expenditure allocations for 2025 and how police was 39% last year, then explained the unassigned fund balance in detail. She said no governmental funds were available for spending based on charter requirements of 30% and said special revenue funds are committed and not available to use without Council approval. Ms. Springer reviewed general fund reserves compared to last year, with no large changes, and said all enterprise funds are showing income except golf and recycling due to some decreased season pass pricing. She shared the cash and investments and the types of investments, which totaled $19 million with a 2.68% return on securities, and how Anoka continues to provide responsible fiscal management. Councilmember Scott thanked staff for the report, then asked about the type of government securities. Ms. Springer said the type is US Treasury bonds as directed by the City’s investment policy, that US Bank has to follow and how it provides for the best return. Mayor Skogquist spoke about the maturity due dates coming and how the City is not making much and how an increase could cover the fire department increase and that he was looking forward to reinvesting at a better rate when matured. 12.2 Anoka Dispensary; Groundbreaking Ceremony Event, May 22, 2025, 839 East River Road. May 19, 2025 (Regular) Page 23 of 23 Liquor Store Manager Kevin Morelli shared that the Anoka Dispensary Project involves the construction of a new municipality-owned, temporary, single-story cannabis dispensary at 839 East River Road, adjacent to City of Anoka’s Liquor Store. The project features a stand-alone building of approximately 3,000 square feet, including a 'sally port' to provide a secure area for deliveries and the transportation of funds to a financial institution. Construction began the week of May 12, 2025 and the dispensary is planned to open in December of 2025. The City of Anoka will host the Anoka Dispensary Groundbreaking Ceremony on Thursday, May 22, 2025, at 1:00 p.m. on-site at 839 East River Road. The event will feature a brief program, including remarks from the City of Anoka and State of Minnesota elected officials, followed by the official groundbreaking. Additionally, there will be opportunities for photos and interviews before and after the program. The public is welcome to attend. Due to limited on-site parking, a shuttle bus service will be available starting at 12:30 p.m. Attendees should meet at the Anoka Aquatic Center to take advantage of the free shuttle to and from the event. He noted a public advisory was shared to inform the public of this event as well. 12.3 Tentative Agenda(s). The Council reviewed the tentative agendas of the upcoming Council meetings. Mayor Skogquist suggested changing the order of items on the May 27 worksession to move attorney contract review last. 12.4 Staff and Council Input. Mayor Skogquist invited the public to Lincoln Elementary School’s 75th anniversary celebration on May 29 event which will include speakers, refreshments, and tours. ADJOURNMENT Councilmember Scott made a motion to adjourn the Regular Council meeting. Councilmember Rostad seconded the motion. Vote taken. All ayes. Motion carried. Time of adjournment: 10:01 p.m. Submitted by: Cathy Sorensen, TimeSaver Off Site Secretarial, Inc. Approval Attestation: Amy T. Oehlers, City Clerk