08-02-2023 Work SessionAugust 2, 2023
A work session meeting of the Scandia City Council was held on the above date. The meeting
was conducted in the Council Chambers at the Scandia Community Center and over an
electronic platform. All participants who joined the meeting remotely could hear each other and
contribute to discussions.
Mayor Christine Maefsky called the meeting to order at 6:30 p.m. The following were present:
Council members Heather Benson, Jerry Cusick, Steve Kronmiller and Mayor Christine
Maefsky. Council member Mike Lubke was absent. Staff present: City Administrator Kyle
Morell, Public Works Director Charles Fischer, City Treasurer Colleen Firkus and City Attorney
Eric Larson. City Planner TJ Hofer joined remotely.
APPROVAL OF THE AGENDA
Benson, second by Kronmiller, moved to approve the agenda as amended. Motion carried
4-0.
INTERNET ACTION COMMITTEE APPOINTMENT
Prior applicant, Steven Bradley, is still interested in the Internet Action Committee position.
Kronmiller, seconded by Benson, moved to approve the appointment of Steven Bradley to
the Internet Action Committee. Motion passed 4-0.
CANNABIS MORATORIUM AND PUBLIC USE
City Attorney Larson reviewed proposed Ordinance 2023-07, an Interim ordinance prohibiting
the establishment of new uses related to the operation of cannabis and hemp businesses for one
year. Local attorney Kirsten Libby helped clarify the issue that while possession and use of
cannabis now legal, retail sales of cannabis products is not yet legal. Libby also pointed out that
hemp products are legal at a .03% THC level or less than 5 mg per serving. Larson is
recommending a moratorium on retail sales until appropriate locations can be identified. The
moratorium does not apply to cannabinoid products
Possession and use of cannabis is now legal, but not retail sales. Locating retail sale locations is
necessary. Larson recommends a moratorium on retail sales until appropriate locations can be
identified. Sales of Edible Cannabinoid Products are not subject to this Interim Moratorium of
which sales are legal, nor activities lawful under the Industrial Hemp Act. Benson, seconded by
Cusick moved to approve Ordinance 2023-07 establishing an interim ordinance prohibiting
the establishment of new uses related to the operation of cannabis businesses and hemp
businesses for one year. Motion passed 4 – 0.
Larson reviewed proposed Ordinance 2023-06 which regulates the smoking and drinking of
cannabis or hemp-derived products in public places. An alternative was also proposed that would
only disallow smoking of cannabis in public places, but allow drinking of cannabis or hemp
infused products. This ordinance is only for cannabis/hemp-derived products. Kronmiller
suggested these products be treated like alcohol, which is not allowed in public places, and that
consumption in a public place would require a city permit.
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August 2, 2023
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James Thorson, Pres. of Gammelgarden, 21980 Manning Tr., asked if Gammelgarden is
considered public or private since their property is regularly accessed by the public. Larson
indicated the ordinance is not written to apply to nonprofit properties, but they would be
considered private property and choose to allow what they want to occur on their property.
Allen Bakken, Pres. of Elim Church Council expressed concern for parishioners on medical
marijuana. He asked how this ordinance would affect members who need to use medical
marijuana in a public space and he would like to see medical marijuana use protected. Larson
statute prohibits medical marijuana is public places. Larson expressed this is a valid point and
one of many questions that will need to be addressed by the legislature. Bakken would like a
copy of the city’s ordinance to set up their own rules. Libby pointed out medical use is a lawful
use, and that low potency edibles are not smoked or drank so they don’t need to be addressed
specifically.
Kronmiller, seconded by Cusick, moved to add word Unlawful to Section 120.03 to address
medical use as lawful. Motion passed 4-0.
Kronmiller, seconded by Cusick, moved to approve Ordinance 2023-06 with amendments
establishing prohibition of smoking and drinking of cannabis flower, cannabis products, or
hemp-derived consumer products in public places of. Motion passed 4 – 0.
DENSITY MANAGEMENT DISCUSSION
City Planner Hofer recommended amending the UDC to define density as being enforced in
quarter/quarter sections which will allow the city to manage and track density more efficiently.
Mayor Maefsky indicated they have always defined it that way. Morell pointed out there is a
need for a definition in the UDC to interpret the quarter sections. Hofer will bring an amendment
to the Council for review. Once approved the Comprehensive Plan should also be updated.
WASTE MANAGEMENT NEGOTIATION EXTENSION
City Administrator Morell reported that there is an Organized Collection Agreement in principal
between WM and the City for a seven year period per the requirements of Minnesota Statutes for
trash and recycling for residential service only. City Staff has been meeting with Washington
County on the new Solid Waste Ordinance. Staff plans to bring the draft ordinance to the
September work session.
Benson, seconded by Kronmiller, moved to extend the negotiating period that ends August
7, 2023 another 30 days, with the option of additional extensions. The motion passed 4-0.
SIMPSON EASEMENT UPDATE
Morell, Fischer, Lubke, and Cusick met with Simpson on his property and walked the proposed
easement a report and comments by Lubke were provided for information for Council review.
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August 2, 2023
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PURCHASE OF TANDEM AXLE PLOW TRUCK
Public Works Director Fischer requested approval to replace the 2011 Mack Tandem Plow truck
including Towmaster accessories as scheduled for replacement in the city’s Capital Improvement
plan for 2023. Pricing is expected to increase 15% under the state contract effective September 1,
2023. Fischer was able to obtain a quote effective with current pricing even though the truck will
not become available until 2024. The quote will expire at the end of August 2023.
The new Mack truck would match two of the vehicles in the fleet. Another truck purchased from
a different vendor prior to Fischer has been found substandard and troublesome. It is more
efficient for staff to standardize the fleet for use, maintenance and to be able to swap accessories.
The current quote of $340,508 is over the budget of $325,000 in CIP. However, the trade-in
value will bring the cost down to below $325,000. Payment will be required upon delivery of the
truck. Equipment Certificate bonds will be used to fund the purchase.
Benson, seconded by Kronmiller, moved to approve the purchase of a Mack Granite
Tandem Cab/Chassis for $168,655.20 and the purchase of the dump body and plow
equipment through Towmaster for $171,830.00, with the understanding the current vehicle
and plow equipment will be traded in to the dealership upon deliver. The motion was
approved 4-0.
BOXCAST STORAGE
Morell reported that the city has been storing meeting videos on Boxcast since 2018. Currently
there are 4 years of meetings stored on the service. Storage costs are currently $185 per month
and increase every month with additional meetings stored. The City is only required to keep
audio and video of meetings for 3 months after the approval of minutes. Staff is requesting
direction on Council’s direction on amount of audio/video meeting storage.
Benson, seconded by Kronmiller, moved to keep meetings stored on Boxcast for 12 months.
Kronmiller requested staff to investigate other storage options. The motion passed 4-0.
2024 DRAFT PRELIMINARY BUDGET
Morell presented an updated 2024 proposed budget with a current police contract (8.9% increase
over 10% projected) and some correction in staff wages. The projects in the four Capital funds
were reviewed.
401 Fund – $250,000 Internet expansion. May not need this whole amount but keep in as federal
funds become available in the next 18 months and it becomes possible to finish the expansion
next year under an expedited DEED program. Bliss stormwater delayed so moved from 2023 to
2024. Update warming house locks $17,540. There are new Community Center improvements
required as the gas stove needs to be replaced due to a gas leak. The wall behind the dishwasher
wall needs to be replaced due to mold build-up. Cost is expected to be $40-$50,000 for both.
404 Fund –Fischer provided an updated rink board replacement of $175,000 for new boards.
There may be options for used hand boards. $125,000 repaid, resurface tennis courts and repaint
for pickle ball courts as well as some cost sharing with Elim Church’s Barton Johnson court.
This can be paid with a transfer of $200,0000 from the General Fund that is currently at 70% of
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next year’s expenses. These two projects are top items from the Park Plan and public survey.
Benson asked why new boards instead of used. Fischer indicated the current boards were
refurbished from indoor use and not UV protected material. New boards would be treated to
provided protection from weather reducing maintenance and replacement costs. Another option
would be to buy used frames and use new boards. New boards were quoted in case there are no
used boards available and affordable. Maefsky would like to explore second-hand boards.
406 fund – Morell reported the Fire Tanker $425,000 would require a down payment to order the
chassis. $325,000 plow truck should be less with the trade-in. Fischer is still working on getting
quotes on the skid steer & F550 truck replacements. The Kubota mower was replaced in 2023.
408 fund – The original plan was for $10 million in road projects over the next 3 years. Currently
proposed is a $4 million bond at 5% adding $385,000 to levy in starting 2025. Fischer reported
2023 road ratings show rapidly deteriorating roads and the need to catch up from years of not
doing any road improvements between 2018 and 2023. The goal is to take care of the lowest
rated roads now with smaller projects in between to keep up, and another big project in 4 to 4
years. There is the need to consider contractor availability, which will become limited next
couple years with so much funding becoming available. Morell reported that City Engineer
Goodman need to do preliminary work this fall for next year’s road construction project.
Council asked what the budget would look like if the tax rate were to remain relatively the same.
Morell indicated we would need to remove about $161,000 from budget to keep tax rate the
same, which would probably come from capital projects.
Morell led the discussion on the need to update the wage scale from the 2019 salary study. The
Two employees are at the end of the scale and the scale needs to be adjusted for inflation to
reflect current market shifts. Staff is obtaining cost estimates to get this updated.
ADJOURNMENT
Benson, seconded by Kronmiller, moved to adjourn the meeting. Motion carried 4-0.
The meeting adjourned at 8:04 p.m.
Respectfully submitted,
Colleen Firkus
City Treasurer