6.a1 Draft minutes 06-20-2023 Meeting
June 20, 2023
A regular meeting of the Scandia City Council was held on the above date in the Council
Chambers. The meeting was conducted in-person and over an electronic platform. All
participants who joined the meeting remotely could hear each other and contribute to
discussions.
Mayor Maefsky called the meeting to order at 7:04 p.m. Following the Pledge of Allegiance, roll
call was taken. The following were in attendance: Council members Heather Benson, Jerry
Cusick, Steve Kronmiller, Mike Lubke, and Mayor Christine Maefsky. Staff present: City
Administrator Kyle Morell, City Attorney Eric Larson, City Planner TJ Hofer, City Engineer
Ryan Goodman, Deputy Zach Boesel, Fire Chief Mike Hinz, Public Works Director Charles
Fischer, and City Clerk Brenda Eklund.
APPROVAL OF AGENDA
Benson, second by Lubke, moved to approve the agenda as presented. Motion carried 5-0.
LAW ENFORCEMENT REPORT
Deputy Boesel reported on the several recent vehicle accidents resulting in life threatening
injuries and a fatality. Boesel said County deputies are taking more active roles to being visible
on the highways. The DARE graduation was held at the end of the school year. Boesel said he
appreciated the City’s support of this program at Scandia Elementary.
PUBLIC FORUM
Scandia Good Neighbor Proclamation – Julie Hull
Mayor Maefsky presented Scandia Elementary Principal Julie Hull with a Scandia Good
Neighbor Proclamation for her kindness and dedication to students and families.
Employee Service Awards
Mayor Maefsky presented service awards to Treasurer Colleen Firkus (25 years), City Clerk
Brenda Eklund (15 years), Maintenance Worker Michael Egelkraut (15 years), and Maintenance
Worker Jeffrey Anderson (10 years).
There were no public comments, and the Public Forum was closed.
CONSENT AGENDA
The following Consent Agenda was presented:
a) Minutes
1) May 16, 2023 Regular Meeting
2) June 7, 2023 Work Session
b) Treasurer’s Report
c) Payment of Vouchers
d) Approve Special Event Permit for Bridge the Valley Bicycle Rally, August 13, 2023
e) Approve Excluded Raffle Permit – Gammelgarden Museum Running of the Meatballs,
September 9, 2023
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Kronmiller, second by Cusick, moved to approve the Consent Agenda as presented. Motion
carried 5-0.
PARK AND RECREATION COMMITTEE
Park and Recreation Committee minutes from the June 5th meeting were in the meeting packet.
PLANNING COMMISSION
Rezone a property from Agricultural Preserve to Agricultural Core, and a Minor Subdivision
to be known as Froiland Addition at Property Identification Number: 24.032.20.34.0008
(County Road 52/Oakhill Road North): Ordinance No. 2023-04; Resolution Nos. 06-20-23-
01(Findings of Fact) and 06-20-23-02 (Minor Subdivision)
Planner Hofer presented a recommendation from the Planning Commission to approve a request
from Daniel Froiland for rezoning three properties from Agricultural Preserves to Agricultural
Core, and for a Minor Subdivision to subdivide off a single 4.99-acre parcel to be known as
Froiland Addition. The property is located along Oakhill Road (County Road) and had expired
from the Ag Preserves program on June 1, 2023.
Hofer explained the process to result in the creation of Lot 1, Block 1 of Froiland Addition (4.99-
acre parcel), and the subsequent reconfiguration of the remaining 85.77 acres for Parcel B
(57.13-acres) and Parcel C (28.64-acres), not proposed for development at this time. Hofer
reviewed the comments from other agencies.
The ordinance to rezone the property and a resolution to approve findings of fact for the rezoning
ordinance, and a resolution to approve the minor subdivision were prepared. Conditions of
approval for the minor subdivision include payment of a park fee as cash-in-lieu of land,
certification from Washington County showing the land can support a sewer treatment system,
and the access to Parcel B is revised to meet compliance with Washington County standards.
Applicant Dan Froiland appeared before the Council and stated there is a natural division for the
4.99-acre lot, which will be built on soon.
Council member Lubke questioned the driveway placement on Lot 1. Planner Hofer explained
that the existing driveway is infringing on a wetland and will need to be realigned to meet the
wetland setback.
Kronmiller, second by Cusick, moved to adopt Ordinance No. 2023-04, Amending the
Official Zoning Map to Rezone Parcel IDs 24.032.20.34.0008, 24.032.20.43.0001, and
24.032.20.42.0001 from Agricultural Preserve to Agricultural Core. Motion carried 5-0.
`
Kronmiller, second by Cusick, moved to adopt Resolution No. 06-20-23-01, Approving
Findings of Fact for Rezoning Parcel IDs 24.032.20.34.0008, 24.032.20.43.0001, and
24.032.20.42.0001. Motion carried 5-0.
Kronmiller, second by Cusick, moved to adopt Resolution No. 06-20-23-02, Approving a
Minor Subdivision for Froiland Addition located at Parcel ID 24.032.20.34.0008. Motion
carried 5-0.
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SCANDIA INTERNET ACTION COMMITTEE
Scandia Internet Action Committee Chair Bob Wilmers reported on the June 15th meeting. A
Midco representative attended virtually. The Big Marine Lake project is expected to begin in late
2023 or 2024. Approximately 80 households in Scandia applied to the state’s line extension
program to connect properties with long driveways; three households are now serviceable, with
three to be connected later this year. The remaining are not currently able to be served as they are
outside Midco’s service area. Midco is examining their projects, and the remaining addresses
may be funneled into a larger future project with state or federal funding. Midco said they are
dedicated to finishing this expansion project in Scandia, with 400 remaining households to
connect to broadband. Wilmers said this is excellent news.
A Frontier representative also participated in the meeting. Frontier would like to engage with the
city on a project, saying the City will need to enter into a non-disclosure agreement with Frontier
before moving forward. Wilmers reported that East Central Energy is beginning a fiber project
for all their electrical service customers, affecting approximately 25 Scandia households, but this
area could be up to 5 years away. The next IAC meeting is on July 20th. Midco Day will be held
on August 23rd.
TOURISM COMMITTEE
Minutes from the May 23rd meeting were in the packet. City Administrator Morell reported that
the Committee discussed banners for the community wide garage sale and on continuing the
EDA business breakfasts.
WASTEWATER COMMITTEE
The Wastewater Committee did not meet in May.
CAPITAL INVESTMENT COMMITTEE
Council member Kronmiller announced that the CIC will meet on Thursday, June 22nd. A large
focus of discussion will be on the road fund.
BUILDING OFFICIAL
The May building activity report was in the meeting packet. In May, 31 building permits were
issued at a valuation of $1,356,500.00.
FIRE DEPARTMENT
Fire Chief Hinz reported on the fire department’s May activity. Last month the department
responded to 19 calls; 5 fire, and 14 medicals. Hinz noted the severe traffic accidents the
department has responded to this past month, requiring three helicopter assists. The department
conducted a live fire training burn at the Lindgren property a few weeks ago. Four new recruits
have started with the department this month.
CITY ENGINEER
Engineering Updates
City Engineer Goodman provided a report on engineering activities. Tii Gavo Phase 2
development will be getting started soon; equipment on the site is being mobilized.
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2023 Crack Filling and Seal Coat Project – Contractor’s Request for Payment No. 1
Kronmiller, second by Lubke, moved to approve the Contractor’s Request for Payment
No. 1 and pay $150,824.37 to Allied Blacktop Company. Motion carried 5-0.
2023 Street Improvement Project – Contractor’s Request for Payment No. 1
Benson, second by Cusick, moved to approve the Contractor’s Request for Payment No. 1
and pay $144,708.91 to Asphalt Surface Technologies Corporation. Motion carried 5-0.
CITY PLANNER
Rural-Commercial Design Standards
Planner Hofer explained that an error was recently identified in the Unified Development Code
(UDC) that should be addressed by the City. Currently, the character area standards for the
Rural-Commercial base zoning district are not included within the UDC. Staff believes these
were omitted in error when the UDC was adopted last September. The previous zoning
ordinance required compliance with the Architectural Design Guideline (ARG) for some aspects
of design and uses. The UDC requires compliance with the character area standards regardless of
use; however, the standards for the R-C zoning district are missing within the UDC.
Planner Hofer presented draft ordinance language to correct the omission in the UDC and to
restructure the language in the Character Area: Village Districts to meet the goals of the chapter.
In addition, Hofer requested the Council provide guidance on whether to allow the City to
approve other building materials that are not directly identified within the allowed materials and
to have the ability to enforce the standards established in the Architectural Design Guidelines.
Planner Hofer said allowing other materials may set a standard the city does not desire. As well,
the UDC as written does not provide the City the power to enforce compliance with the
Architectural Design Guidelines. Hofer asked if it should require conformance.
The City Council addressed staff’s concerns. City Administrator Morell said staff noticed just
recently that the design standards were missing from the UDC in the Rural Commercial district
and have expected that they should be included. Mayor Maefsky said yes, we need to make sure
the standards are in the UDC.
Council agreed with Planner Hofer’s recommendation that agricultural use buildings in the R-C
district shall comply with the standards for ag buildings in the ARG.
Council was in consensus to remove “#7. Other materials” from the list of finished building
materials permitted in the R-C zoning district, and to replace language to require applications be
consistent with the Architectural Design Guidelines.
Staff will prepare the ordinance amendments for a public hearing with the next meeting of the
Planning Commission.
Density Inconsistences in Comp Plan and UDC
Planner Hofer explained that staff has identified a conflict between the 2040 Comprehensive
Plan and the Unified Development Code (UDC) that sets inconsistent density standards in the
Village Neighborhood (V-N) Base Zoning District, and asked Council to provide direction to
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correct the conflict. Hofer stated that this was brought to staff’s attention when the City received
an application for a Concept Review for Laurel Ridge Development which includes a rezoning to
the Village Neighborhood base zoning district and development at a level that is consistent with
the Comprehensive Plan, but not the UDC.
The UDC allows one dwelling per 40 acres in the Village Neighborhood when community sewer
and water are not available, whereas the Comprehensive Plan allows one dwelling unit per 2.5
acres. Hofer said the Comp Plan is the ruling document for density and allows 16 units per 40-
acre. Hofer recommended the City Council address the inconsistences between 2040 Comp Plan
and the UDC so that staff can draft the appropriate amendments.
Council Kronmiller said the intent to allow higher density if lots have community sewer and
water was inadvertently left out of the Comp Plan.
Mayor Maefsky noted that the Future Land Use map in the Comp Plan is incorrect, in that the
Village Neighborhood should only extend west to Novak Avenue, but the map goes beyond
Novak. Maefsky said she is unsure how or why this happened and needs to be corrected.
Planner Hofer explained that Comp Plan amendments must be processed through the local
approval process and approved by the Metropolitan Council which will take time. The changes
won’t affect the application received for Laurel Ridge however, as anything in yellow on the
Future Land Use map currently in effect can be 2.5-acre lots.
The Council gave direction to proceed with changes to the Comp Plan with the map and the text
amendments to reflect the standards in the UDC.
Kirsten Libby, resident on 205th Street adjacent to the proposed development, said this situation
is unfortunate given all the work to get the zoning code right. Libby said the City needs to look at
this development carefully, as it will be a huge change for the character of the street which lacks
infrastructure. Libby said this was a mistake and would like to see the application pulled.
Planner Hofer said the application is for a concept plan at this point, and will need to go through
the review process for preliminary and final platting.
Attorney Larson offered a conclusion that there is a discrepancy with the code and Comp Plan
which raises serious questions of the conflict with respect to this application and the density. Can
the City do a pause? Larson said this is a question to study given the direction from the council.
Council member Kronmiller said the intent of the UDC is clear, but what can be done
preemptively until this gets figured out? Can there be a moratorium on future development?
Mayor Maefsky said there is good reason for a moratorium given the inconsistency and to allow
time to study a solution.
Planner Hofer said the lowered density encompasses the Village Historic Core, Village Center
and Village Neighborhood districts.
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Benson, second by Kronmiller, moved to establish a moratorium for any further
subdivision of land in the three Village districts for anything less than 4 per 40 density until
the inconsistency between the UDC and the Comp Plan is resolved to the extent as allowed
by law.
Planner Hofer noted that PUDs allow for flexibility from lot standards but does not increase
density per the UDC; however an Open Space PUD does allow bonus density when meeting
certain criteria. Hofer said the intent should also be cleared up in the Comp Plan amendments as
density can be increased with CUPs and PUDs as now written.
Council voted 5-0 voted on the moratorium.
Planner Hofer said he will draft Comprehensive Plan amendments to go to the Planning
Commission for action.
DIRECTOR OF PUBLIC WORKS
Public Works Director Fischer reported on department activities, with an update that Bluhm
Construction has completed the majority of road repairs since his report was written last week.
To highlight the hiring process for the Maintenance Worker position, Fischer reported that ten
applications were received, four finalists will be interviewed on June 26th, with a
recommendation to hire proposed for the Council’s July 5th Work Session.
CITY ATTORNEY
Cannabis Legislation and possible Moratorium
City Attorney Larson summarized his memo on recent legislation legalizing the use and
possession of cannabis in the State of Minnesota effective August 1, 2023. The city may limit the
cannabis business’ location and the number of cannabis businesses in the city by adoption of
reasonable restrictions. Cities cannot prohibit retail sales, but can set limits on place of sales.
Larson explained that as cities are evaluating the impacts and how to control businesses given
the new cannabis law, cities may adopt an interim moratorium prohibiting the sale,
manufacturing, or distribution of adult-use cannabis. The interim moratorium may not extend
beyond January 1, 2025.
Attorney Larson recommended that the city authorize staff to begin the process of implementing
an Interim Moratorium Ordinance as soon as practical in August in order to assess and adopt
reasonable city ordinances pertaining to the operations of cannabis businesses. Larson said a
model ordinance for municipalities for land use zoning will be provided by the soon to be formed
Office of Cannabis Management.
Maefsky, second by Kronmiller, moved to direct staff to implement an interim moratorium
ordinance prohibiting the sale, manufacturing, or distribution of adult-use cannabis in
order to assess and adopt reasonable city ordinances pertaining to the operations of
cannabis businesses. Motion carried 5-0.
Attorney Larson said the study and assessment can include the sales of edibles with THC.
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CITY ADMINISTRATOR
City Administrator Morell reported that a revised Master Parks Plan recommendation from the
Parks Committee will be presented to the City Council on July 5th, then move on to the Met
Council for the necessary Comp Plan amendment. Morell is communicating with Washington
County regarding City Center Study, and confirmed that the western boundary of the study will
include the elementary school. Morell is also working with the County on updating the city’s
trash ordinance.
Johnson’s Request to waive variance fees
City Administrator Morell presented a petition from Cindy and Harold Johnson to streamline
their variance request to build a garage on their property which they had previously paid fees in
2020 but were denied. The development code has since been amended to allow them to build on
their lot across the street, but it has been determined that the placement of the garage will require
a variance from a wetland setback on a property to the north of their parcel. The Johnson’s wrote
that applying for a variance and paying fees again was not the Council’s direction when they
directed the Commission to correct the code.
City Administrator Morell explained that the wetland setback was not brought up in 2020 as it
was determined that the non-contiguous parcel could not have a garage, and its placement wasn’t
considered at the time. Council member Kronmiller said they didn’t look at the issues of the lot,
but expected staff could issue an administrative permit once the UDC was adopted. The Council
had told staff it should be done, but now a wetland has been identified.
Kronmiller said the Johnsons tried to do what was asked of them; now here it is three years later
with another variance. Kronmiller questioned why should the cost and the variance be a question
again? At the time, the Council said the proposed garage makes sense, and the ordinance was
changed in order to issue a permit. Kronmiller said the wetland should have been looked at 2
years ago. Administrator Morell added that a sewer line on the property prohibits moving the
garage over to a location that does meet the wetland setback.
Cindy Johnson, Layton Avenue, said they applied for a variance to build a garage across the
street in August 2020, and paid the fees and escrows only to be denied. It was a lengthy
discussion from the Council to make it happen the following year, but adoption of the new UDC
took until October 2022. Johnson said they have talked with the Watershed who said they can
work with whatever setback the city requires. The garage cannot meet the 50’ setback due to the
sewer line, but can meet a 20’ setback. Johnson said they are asking to not require a variance.
Council discussed the request and determined a variance will be needed but the fees should be
waived.
Maefsky, second by Benson, moved to allow the Johnson’s to pay no fees or additional costs
for a variance. Motion carried 5-0.
PRESENTATION BY SCHLENNER WENNER & COMPANY ON THE 2022 AUDITED
FINANCIAL STATEMENT
Ryan Schmidt, Schlenner Wenner CPA, was virtually present to discuss the final audit of the
2022 financial statements for the City.
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The firm gave an unmodified (clean opinion) and found nothing unusual in the audit process.
Revenues exceeded the 2022 budget by $30,700, while expenditures exceeded the budget by
$57,300. The year ended with a fund balance $1.35 million, equal to a healthy 71% of the total
annual General Fund operating expenditures.
The Road Improvement Fund was described with a cash analysis downward trend. At year-end,
the Fund had a cash balance of $932,798. The fund balance decreased by $355,810 primarily due
to capital expenditures for street reconstruction projects exceeding the revenue sources for the
fund.
Expenses exceeded revenue in the sewer enterprise funds, but still maintained healthy balances
in both. The Debt Service Fund remains steady until 2033, at which point the bond will be paid
off.
Schmidt concluded with a description of updates to GASB accounting standards going into effect
this year.
Benson, second by Kronmiller, moved to accept the audit results. Motion carried 5-0.
ADJOURNMENT
Benson, second by Kronmiller, moved to adjourn the meeting. Motion carried 5-0.
The meeting adjourned at 9:40 p.m.
Respectfully submitted,
Brenda Eklund
City Clerk