CITY OF HAM LAKE CITY COUNCIL AND ECONOMIC DEVELOPMENT AUTHORITY MINUTES MONDAY, MAY 15, 2017

CITY OF HAM LAKE CITY COUNCIL AND ECONOMIC DEVELOPMENT AUTHORITY MINUTES MONDAY, MAY 15, 2017 The Ham Lake City Council and Economic Development Authority met for its regular meeting on Monday, at 6:00 p.m. in the Council Chambers at the Ham Lake City Hall located at 15544 Central Avenue NE in Ham Lake, Minnesota. MEMBERS PRESENT: MEMBERS ABSENT: OTHERS PRESENT: Acting Mayor Tom Johnson and Councilmembers Jim Doyle, Al Parranto, and Gary Kirkeide Mayor Mike Van Kirk City Attorney, Joe Murphy; City Engineer, Tom Collins; Fire Chief, Don Krueger; and City Clerk, Denise Webster 1.0 CALL TO ORDER - 6:00 P.M. Pledge of Allegiance Acting Mayor Johnson called the meeting to order and the Pledge of Allegiance was recited by all in attendance. 2.0 PUBLIC COMMENT None 3.0 SPECIAL APPEARANCES/PUBLIC HEARINGS 3.1 Lt. Paul Lenzmeier Anoka County Sheriff s Monthly Report Lt. Paul Lenzmeier gave a summary of the sheriff s report for the month of April. 3.2 Andy Berg, CPA; Abdo, Eick & Meyers, LLC Presentation of 2016 audit Andy Berg, CPA; Abdo, Eick & Meyers, LLC, was present and reviewed the 2016 audit and management letter with the City Council. Mr. Berg stated that the City received an unmodified (clean) opinion on the audit, and the only finding was limited segregation of duties, which is common in cities with a small staff. Mr. Berg discussed the General Fund unassigned fund balance, General Fund budget vs. actual revenues and expenditures, and the fund balances and activities of the special revenue funds, the debt service fund, and the capital project funds. Mr. Berg presented ratios and comparisons to other cities that are similar in size to the City of Ham Lake. The City Council thanked Mr. Berg for his presentation and City Staff and Department Heads for their hard work on the budget. 3.3 6:01 P.M. PUBLIC HEARING To consider the improvement of 155 th Avenue NE, between Naples Street NE and Lexington Avenue NE and adoption of a Resolution Engineer Collins gave an overview of the improvement of 155 th Avenue NE between Naples Street NE and Lexington Avenue NE. Engineer Collins stated that the City has been looking at this street project since 2013 and have had very active meetings with several residents from 155 th Avenue NE at the Road Committee meetings. Engineer Collins stated that it is the policy of the City that the first time a street is paved; it is paid for by the residents. Engineer Collins stated that there are 29 active assessments and 7 deferred assessments. Engineer Collins stated that a maximum assessment of $16,000 has been determined by the City Council. Engineer

Collins stated that the project is estimated to cost $1,367,000 with the City contributing 58 % and the residents contributing 42%. Acting Mayor Johnson stated that the City arrived at the $16,000 assessment by looking at what developers are paying to construct streets within their developments. Acting Mayor Johnson stated that the average was roughly $24,000. Acting Mayor Johnson called the Public Hearing to order at 6:24 p.m. and called for public comment. Marian Rud, 3958 155 th Avenue NE was present. Mrs. Rud read a letter that was prepared by her husband Ernie Rud. Mr. Rud wrote that he had reviewed the four feasibility studies and noticed all estimates are around $1,400,000 with assessments ranging from $7,000 to $39,000 and the city picking up anywhere from 2% to 84% of the cost of the project. Mr. Rud wrote that he wanted to commend the City Council on their willingness to contribute 58% toward the improvement of the latest report. Mr. Rud wrote that all property owners want is to have a dust free, machine laid surface to drive on. Mr. Rud wrote that adding up all the bituminous, gravel and reclamation costs from the estimated total is $301,000 and adding $169,000 to upgrade the road to 9 ton brings the total to $470,000. Mr. Rud wrote that assuming the City would pick up 58% of the cost that would leave an $8,000 assessment for 36 properties. Mr. Rud wrote that this would mean no 4 shoulders, no curb and gutter, not spending $50,000 to upgrade Coon Creek crossing on 155 th Avenue NE, no drainage improvements required (use rain gardens), and eliminating any improvement from Rendova Ridge to Naples Street NE. Mr. Rud wrote that an RFQ could be published and awarded to the low bidder, with 3% engineering cost. Mr. Rud wrote that this will be his last letter concerning this matter and will abide by what the City Council decides. Larry Schwartz, 1543 105 th Lane, Coon Rapids was present. Mr. Schwartz stated that he owns property along 155 th Avenue NE. Mr. Schwartz thanked the City Council for their hard work to lower the assessment to $16,000. Mr. Schwartz questioned when the improvement would take place and why the improvement includes Rendova Ridge to Naples Street NE. Steve Menkveld, 3658 155 th Avenue NE was present. Mr. Menkveld stated that he has already paid an assessment for the road when this dad developed Rendova Ridge. Brian Freecheck, 3751 155 th Avenue NE was present. Mr. Freecheck stated that he wants to thank the City Council for working with the residents. Mr. Freecheck stated that if the portion from Rendova Ridge to Naples Street NE is left off the plans, it would save $250,000. Mr. Freecheck stated that a lot of the costs seem high, such as traffic control, mobilization, drainage ponds, etc. Mr. Freecheck stated that this road is being compared to a development and it is not a development. Mr. Freecheck stated that there are 31 other properties who need to use 155 th Avenue NE to get out their development and he has spoken with some of them who are willing to help pay for the road improvement. Mr. 2

Freecheck stated that there is property that is not yet developed on 155 th Avenue NE and when it is developed in the future they should have to pay some cost for the road. Linda Sauvageau, 3642 153 rd Avenue NE was present. Ms. Sauvageau stated the she lives in Rendova Ridge and feels that the residents on 155 th Avenue NE should not have to pay for all of the street improvement. Ms. Sauvageau stated that she needs to utilize 155 th Avenue NE to get out of her development and would not have a problem contributing to the road project. Paul John, 3959 155 th Avenue NE was present. Mr. John stated that he has lived on 155 th Avenue NE for over 30 years and in 1999 the City placed a bituminous overlay that lasted 15 years. Mr. John stated that last year the City placed bituminous again on the road it only lasted a month. Mr. John stated that he agreed with spreading the assessment cost to other developments that need to use 155 th Avenue NE. Mr. John questioned if he could split his property onto Yalta Street NE. Engineer Collins stated that if he can split onto Yalta Street NE, then he would not have to pay a deferred assessment. Matt John, 3959 155 th Avenue NE was present. Mr. John stated that he is a Civil Engineer and was a proponent for the bituminous millings that were placed last year, but questioned why they didn t hold up this time. Mr. John stated that traffic control and the mobilization cost did not seem that bad and you have to consider in prevailing wages, etc. Mr. John stated that in the State Statute, the assessment must benefit the property by $16,000 and needs to be proven. Mr. John questioned State Aid Funds and if they are being accessed. Mr. John suggested constructing the road into two sections to keep the cost down. Brad Schlanger, 3715 155 th Avenue NE was present. Mr. Schlanger thanked the City Council for their hard work. Mr. Schlanger stated that the City Council has taken a lot of comments tonight and wants them to use common sense when making a decision. Mr. Schlanger stated that most traffic is coming from Austin Street NE that is accessing 155 th Avenue NE. Matt John, 3959 155 th Avenue NE Mr. John stated that the traffic volume is 440 cars a day and others are benefitting from this road, not just residents who access 155 th Avenue NE. Mr. John stated that if this project moves forward, there are issues with drainage and tree coverage. Mr. John stated that trees need to be cleared for better sunlight. Jeremy Anton, 4530 155 th Avenue NE was present. Mr. Anton stated that he does not drive up and down 155 th Avenue NE and only needs to access the road at the end of Lexington Avenue NE to get to his property. Mr. Anton stated that $16,000 is not worth it for him to pay for the improvement of 155 th Avenue NE. Acting Mayor Johnson asked for further comment, and with there being none, recessed the Public Hearing at 6:52 p.m. 3

Acting Mayor Johnson took a poll of who is for or opposed to a $16,000 assessment. Acting Mayor Johnson stated that it looked like most residents were opposed. Councilmember Kirkeide stated that bid estimates have been coming in less and feels that the entire road needs to be improved. Councilmember Kirkeide stated that it could trigger new development and possibly getting the developer to pay for some of the improvement of 155 th Avenue NE. Councilmember Kirkeide suggested having another Public Hearing to see if the other developments that have to access 155 th Avenue NE would be willing to contribute to the improvement of 155 th Avenue NE. Councilmember Kirkeide stated that this road is considered an agricultural road and needs to be constructed to 9 ton. Councilmember Kirkeide stated that signage could be placed on the road to say no loading. Acting Mayor Johnson stated that it was mentioned by Mr. Menkveld that residents in Bear Creek, Rendova Ridge, etc., had previously each paid a $600 assessment for the future improvement of 155 th Avenue NE. There was discussion of the defendable assessment amount of $16,000. Attorney Murphy stated that it is not a perfect science, but based on what other developers were paying for constructing streets in their developments; felt it was a good amount. There was discussion of some residents who do not access 155 th Avenue NE, but would be willing to pay for some of the street improvement. Attorney Murphy stated that there would have to be some benefit to those properties. Acting Mayor Johnson stated that if we included other developments in the assessment it would not reduce the $16,000, it would only lower the City s cost. Acting Mayor Johnson stated that the Council has been talking about this project for years and does not want to keep talking about it. Councilmember Doyle stated that the assessment term could go longer. Councilmember Kirkeide stated that there could be a lower interest rate and a longer term to pay off the assessment. There was discussion of charging a new developer to pay for the road after the fact. Acting Mayor Johnson questioned if trees would be cut along 155 th Avenue NE. Engineer Collins stated that the necessary trees would be cleared. Engineer Collins stated that curb and gutter is only 8% to 9% of the project and feels that it is necessary. Acting Mayor Johnson questioned when the start date would be for the project. Engineer Collins stated that geotechnical work needs to be completed, the watershed district would need to get additional easements and there needs to be enough state funds for the project so he is projecting 2019. Councilmember Kirkeide questioned if this project could be fast tracked and Engineer Collins stated possibly 2018. Acting Mayor Johnson reopened the Public Hearing at 7:15 p.m. and asked for further comment. Linda Sauvageau, 3642 153 rd Avenue NE. Ms. Sauvageau stated that if it s not going to benefit the property owners on 155 th Avenue NE and only the City, she would not be willing to contribute to the project. Jackie Freecheck, 3751 155 th Avenue NE was present. Ms. Freecheck stated that she is almost riding in the ditch because the road is so bad because of potholes. Ms. Freecheck stated that there needs to be some relief in the meantime. Ms. Freecheck stated that there was a previous discussion of possibly having a combined project with 167 th Avenue NE. Ms. Freecheck stated that the road needs to be looked at differently, if the road costs the City 58% and if others are willing to help pay for the improvement, it should lower everyone s cost. Ms. Freecheck stated that it s common sense. 4

Larry Schwartz, 1543 105 th Lane, Coon Rapids. Mr. Schwartz stated that his dad spoke in opposition of this project for years. Mr. Schwartz questioned if this road was improved, would he be able to develop his property and not pay an assessment again. Acting Mayor Johnson stated yes. Paul John, 3959 155 th Avenue NE. Mr. John questioned if his taxes would go up because of the $16,000 assessment. Acting Mayor Johnson stated that Anoka County does the tax accessing and not the City. Mr. John questioned if the residents on Austin Street NE would be included in the assessment. Acting Mayor Johnson stated that they would not. Matt John, 3959 155 th Avenue NE. Mr. John stated that the $16,000 assessment is unfair and the value will not increase by that much. Mr. John questioned how much are the Municipal State Aid Funds. Engineer Collins stated that the City receives approximately $650,000 a year. Engineer Collins stated that there are future projects that will also use some of those funds and the City has to submit payment requests to receive the monies. Warren Hoffman, 15740 Naples Street NE was present. Mr. Hoffman questioned if there needs to be a lot of soil corrections and has there been testing already completed. Engineer Collins stated that Braun Intertec did some soil borings in 2009 and there was deep peat. There was discussion if the watershed would require ponding. Mr. Hoffman stated that a 7 ton road would never hold up to the trucks and the road needs to be 9 ton. Ryan Forga, 4005 155 th Avenue NE was present. Mr. Forga questioned how long the assessment would be for. Councilmember Kirkeide stated that 15 or 20 years doesn t seem unreasonable. Larry Schwartz, 1543 105 th Lane, Coon Rapids. Mr. Schwartz stated that personally $16,000 is a lot better that the previous amount, but zero would be better. Mr. Schwartz stated that he could live with $16,000. Brian Freecheck, 3751 155 th Avenue NE was present. Mr. Freecheck stated that he agrees with Mr. Schwartz. Mr. Freecheck stated that he believes the initial $600 that was collected from Bear Creek, Rendova Ridge, etc. was used to place the bituminous millings in 1999. Councilmember Kirkeide stated that that was correct. Mr. Freecheck stated that everyone who is benefitting should share in the cost of the road, which would bring the cost down. Acting Mayor Johnson stated that the $16,000 maximum assessment will not only be used for this street improvement project, but for other projects. Acting Mayor Johnson asked for further Public Comment, and with there being none, closed the Public Hearing at 7:41 p.m. 5

Councilmember Kirkeide stated that this item should be tabled to allow the Council a couple of weeks to think about the comments that they heard tonight. Councilmember Kirkeide suggested holding another public hearing inviting other benefitting property owners to attend to get their input on their willingness to pay for part of the assessment. Attorney Murphy stated that the Public Hearing notice needs to state exactly what the Public Hearing will be held for and what the City Council will be considering. Acting Mayor Johnson stated that it would need to be a voluntary assessment so the City isn t setting a precedent. Councilmember Kirkeide stated that there could be a voluntary contribution to lower the cost of the residents on 155 th Avenue NE and if there is not a majority of residents who want to help with the assessment, there should not be an assessment. Councilmember Kirkeide stated that only people who solely have to use 155 th Avenue NE should be asked to pay an assessment. Motion by Kirkeide, seconded by Doyle, to table the consideration of the improvement of 155 th Avenue NE, between Naples Street NE and Lexington Avenue NE and have Attorney Murphy research if an area wide voluntary assessment could be collected. All present in favor, motion carried. 4.0 CONSENT AGENDA These items are considered to be routine and will be enacted in one motion. There will be no separate discussion of these items unless a Councilmember or citizen so requests, in which event the item will be removed from the Consent Agenda and considered in normal sequence. (All items listed on the Consent Agenda are recommended for approval.) 4.1 Approval of minutes of May 1, 2017 4.2 Approval of claims in the amount of $121,929.81 4.3 Approval of Resolution No. 17-15 accepting a $1,500 donation from Blaine s Blazin 4 th 4.4 Approval of Resolution No. 17-16 accepting the low bid for the reconstruction project of Ulysses Street NE (from 176 th Avenue NE to 179 th Avenue NE) 4.5 Approval of Resolution No. 17-17 scheduling a public hearing for the vacation of a portion of the drainage and utility easement on Lot 2, Block 1, Kulzer Woodland Addition 4.6 Approval of an Off-Site Gambling Permit for Ham Lake Chamber of Commerce to conduct bingo, paddlewheel, and pull-tabs on July 1, 2017 at Lion s Park (1220 157 th Avenue NE) 4.7 Approval of an Exempt Permit for Gillette Children s Hospital Foundation to hold a raffle on August 22, 2017 at Majestic Oaks Golf Club, 701 Bunker Lake Boulevard NE 4.8 Approval of the Ham Lake Member City Grant Agreement with Twin City Gateway 4.9 Approval of posting the job opening for a Building Inspector Intern Motion by Johnson, seconded by Parranto, to approve the Consent Agenda, removing Item 4.1, the approval of minutes of May 1, 2017. All present in favor, motion carried. Motion by Johnson, seconded by Parranto, to approve Item 4.1, approval of minutes of May 1, 2017. Acting Mayor Johnson and Councilmembers Parranto and Kirkeide voted yes. Councilmember Doyle abstained. Motion carried. 6

5.0 PLANNING COMMISSION RECOMMENDATIONS 5.1 Laurie Gallagher-Babcock requesting to rezone a parcel of land (2120 Constance Boulevard NE) from R-1 (Single Family Residential) and RS-2 (Shoreland Residential Recreational Development) to R-A (Rural Single Family Residential) (This is considered a First Reading of an Ordinance) Acting Mayor Johnson questioned if this property was located to the east of the development Gallagher Shores. Engineer Collins stated that is was. Terry Babcock was present and stated that the rezoning has nothing to do with that development. This is considered the First Reading of an Ordinance to rezone a parcel of land (2120 Constance Boulevard NE) from R-1 (Single Family Residential) and RS-2 (Shoreland Residential Recreational Development) to R-A (Rural Single Family Residential). 6.0 PARK AND TREE COMMISSION RECOMMENDATIONS None 7.0 ECONOMIC DEVELOPMENT AUTHORITY None 8.0 APPEARANCES None 9.0 CITY ATTORNEY None 10.0 CITY ENGINEER None 11.0 FIRE CHIEF Fire Chief Krueger updated that City Council on the status of the 133 rd Lane NE businesses that were discussed at the last City Council meeting. Fire Chief Krueger stated that Code Enforcement Officer Mark Jones and he met with the owner of the body shop and he did confirm that he would be leaving the building at the end of May. Fire Chief Krueger stated that the Health Department has been to the property and there was no record to verify if the parking lot had been ripped up. Fire Chief Krueger stated that there had been mention of barrels, but did not witness any outside of the building. Acting Mayor Johnson questioned if there was evidence of a chop shop at the body shop. Fire Chief Krueger stated that he did not see any evidence of the body shop being used as a chop shop. Fire Chief Krueger stated that progress is being made to clean up the properties. 12.0 COUNCIL BUSINESS 12.1 Committee Reports Acting Mayor Johnson stated that there was an Audit Committee meeting last week and the City is in a strong financial position. 12.2 Consideration of a lot line adjustment located at 931 143 rd Avenue NE Paul Buchholz, 931 143 rd Avenue NE was present. Mr. Buchholz stated that he is asking the Council to approve a lot line adjustment. There was discussion that there are currently seven structures on the property and the City Code only allows for five structures. Acting Mayor Johnson stated that two structures would have to be removed and in the past we have made other residents remove buildings to come into compliance with the City Code. There was discussion that two of the structures do not meet the front yard setback and also the driveway turn around, landscaping and well are located in the drainage and utility easement and/or rightof-way. Attorney Murphy stated that a license agreement could be prepared allowing the driveway, landscaping and well to remain in the drainage and utility easement and/or right-of- 7

way. Acting Mayor Johnson stated that the two smaller buildings that are located in the front yard setback could be moved and combined with other structures on the property. Councilmember Kirkeide stated that Mr. Buchholz should be given six month to comply with the issues of the structures. Attorney Murphy stated that the City Code specifies what types of structures are allowed and Mr. Buchholz should work with City Staff to make sure all the buildings remaining are in compliance with the City Code. There was discussion if there are any violations of the property regarding vehicles. Attorney Murphy stated that if there are violations, it can be handled through the Code Enforcement Officer. Motion by Kirkeide, seconded by Doyle, to approve the lot line adjustment for Paul Buchholz located at 931 143 rd Avenue NE, requiring an interior 10 foot drainage and utility easement around the perimeter of the adjusted lot line of both the smaller and larger parcels, allowing six months for the removal of the two structures that are currently located within the front yard setback, to enter into a Grant of License Agreement for the driveway turn around, well and landscaping along the west side of the driveway that are located within the drainage and utility easement and/or right-of-way, and meeting all State, County and City requirements. All present in favor, motion carried. 12.3 Discussion of Copart Landscaping Plan Acting Mayor Johnson stated that Copart would like to plant different species of trees and not Colorado Spruce trees as stated in their Development Agreement. Engineer Collins stated that Mickman Brothers has prepared a landscaping plan using six different species of trees, which will provide the screening that is required per the Development Agreement. Engineer Collins stated that the Development Agreement does allow Copart to substitute alternative species of trees with consent of the City. Motion by Johnson, seconded by Doyle, to approve the new landscaping plan for Copart allowing 235 trees, of six different species to be planted instead of Colorado Spruce Trees. All present in favor, motion carried. 12.4 Announcements and future agenda items None Motion by Kirkeide, seconded Parranto, to adjourn the meeting at 8:36 p.m. All present in favor, motion carried. Denise Webster, City Clerk 8