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08-15-2023 Meeting August 15, 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 7:00 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 Henry Gibney, Fire Chief Mike Hinz, Public Works Director Charles Fischer, and City Clerk Brenda Eklund. APPROVAL OF AGENDA Mayor Maefsky announced that the Sister City Committee will provide a report during the Public Forum. Kronmiller, second by Benson, moved to approve the agenda as amended. Motion carried 5-0. LAW ENFORCEMENT REPORT The citation and incidents report for the month of July was provided in the meeting packet. Washington County Commander Harris reported on the resignation of former Deputy Boesel due to the new position he has taken with Chisago County. Commander Harris introduced Deputy Henry Gibney as the assigned Scandia deputy effective August 16, 2023. Gibney has been with the Washington County Sheriff’s Department for close to 3 years and is a member of the MN Army National Guard. PUBLIC FORUM Lynne Moratzka, Gammelgarden Museum Director, presented a request on behalf of the Sister City Committee for a donation of $250 towards a dinner banquet during the September 5-11 visit of Mellerud, Sweden Sister City guests. Moratzka said they plan to show the same hospitality as Scandia visitors to Sweden received in July. Moratzka said donors are covering costs for other activities. Maefsky, second by Benson, moved to support costs for a Sister City banquet with a $250 donation. Motion carried 5-0. There were no other public comments, and the Public Forum was closed. CONSENT AGENDA The following Consent Agenda was presented: a) Minutes 1) July 18, 2023, Regular Meeting 2) August 2, 2023 Work Session b) Treasurer’s Report August 15, 2023 Scandia City Council Page 2 of 8 c) Payment of Vouchers d) Approve Special Event Permit for Meisters Bar & Grill – September 9, 2023 e) Approve Best of Scandia Event Vendor Registration Fee f) Authorization for Meister’s Bar & Grill to sell beer at Taco Daze Beer Garden, September 9, 2023 Kronmiller, second by Cusick, moved to approve the Consent Agenda as presented. Motion carried 5-0. OLD BUSINESS (Continued from July 18, 2023): CONSIDERATION OF PETITION FOR VACATION OF A PUBLIC WAY FOR PEDESTRIAN USE TERMINATING AT GOOSE LAKE (RESOLUTION NO. 08-15-23-01) AND CONSIDER AN ALTERNATE DEDICATED EASEMENT ACCESS TO GOOSE LAKE (RESOLUTION NO. 08-15-23- 02) On April 17, 2023, Jim and Peggy Simpson presented a petition to the City Council to vacate and relocate a portion of the pedestrian easement which abuts their property at 14789 Oren Road. The 20’ wide easement terminates at Goose Lake. The City Council held the public hearing on July 18, 2023, then tabled a decision to allow time to gather additional information. Mayor Maefsky announced that this is not a public hearing; no comments will be heard, only Council discussion. Council member Kronmiller said he recalled statements that have been made in the multiple times this has been presented to the Council, with some being questionable statements that bothers me to not have facts and to make accusations. Kronmiller said he spoke with Simpson and walked the trail, and noticed that the only portion of the easement that appears traveled is a portion near the lake – most of the trail is in Outlot B. If residents are using the easement all these years, it does not appear so. Council member Kronmiller directed questions to Mr. Simpson regarding the newly constructed agricultural building, the removal of the barbed wire fence abutting the trail, and knowledge of the easement when the property was purchased. Mr. Simpson said the ag building was properly permitted by city staff, the fence was in disarray and removed for improved farming practices, and he was not aware of the easement when he entered a purchase agreement for the property. Council member Kronmiller said the city must decide what is best to do for the whole city. Kronmiller asked Simpson if he is willing to initially clear the new easement he is proposing to dedicate as an alternate pedestrian trail? Simpson said yes, it will be very easy to navigate versus the existing one, and he would provide culvert to improve the crossing of the wetland. Simpson said he has the equipment to mow it periodically over the long-term. Kronmiller noted that the existing 20’ easement is not maintained except for a strip of land that ends at Goose Lake. Kronmiller said this offer to relocate the trail has potential to connect Oren Road to Oldfield, and to build a loop trial around the lake. Kronmiller said the future value and potential is greater and still allows access to the lake, with an option of utilizing the public landing without a whole lot of effort. Kronmiller said the existing easement has little value to the city at large; there will be better service with this proposal. Kronmiller said that where the easement physically lies is not August 15, 2023 Scandia City Council Page 3 of 8 used because the trail does not follow it, but rather about 20’ to the east. Pedestrians appear to not be using the easement but going outside of it on Simpson’s property. Council discussed the alternative option to end the easement at a 60’ strip north of the landing that is owned by the city, now heavily vegetated. The DNR would require a permit to clear the vegetation. Council member Lubke said he walked the trail and the proposed relocated trail, and is looking for an alternative to make the neighbors happy. Lubke said the north wetland was dry and the alternative would appear to be a less wet area while still providing access to the lake. Lubke said he is trying to find a solution, but cannot support the vacation at this time; the neighborhood was told they have a trail easement to the lake when they purchased their property. If future development occurs in this area, then the city could acquire park dedication for a possible trail around the lake. Lubke said there is potential for trespassing on more landowners’ property with the alternative trail. Benson, second by Lubke, moved to adopt Resolution No. 08-15-23-01, Denying the Petition to Vacate a Portion of a Public Way for Pedestrian Use Terminating Upon Public Waters. Motion carried 3-2 with Cusick and Kronmiller opposed. PUBLIC HEARING: INTERIM ORDINANCE NO. 2023-08 PROHIBITING THE ESTABLISHMENT OF NEW USES RELATED TO THE OPERATION OF CANNABIS BUSINESSES City Attorney Larson explained the proposed interim ordinance to allow the city to extend a moratorium on cannabis and hemp businesses to January 1, 2025. The purpose of the moratorium is to allow cities time to review zoning codes for appropriate places for cannabis businesses to operate. Larson stated that the interim ordinance exempts lawful cannabis products and industrial hemp. Mayor Maefsky opened the public hearing at 7:43 p.m. There were no comments and the hearing was closed. Kronmiller, second by Lubke, moved to adopt Interim Ordinance No. 2023-08, Prohibiting Cannabis and Hemp Businesses in the City under Minnesota Statute Section 342.13(E). Motion carried 5-0. PUBLIC HEARING: INTERIM MORATORIUM ORDINANCE NO. 2023-09 ON ANY AND ALL USES, DEVELOPMENTS, OR SUBDIVISIONS WITHIN THE CITY FOR EXISTING VILLAGE DISTRICTS OR PROPOSED REZONING TO A VILLAGE DISTRICT ZONING DISTRICT Attorney Larson presented an interim moratorium on new development in the Village Districts as proposed by the Council as it was looking at the Laurel Ridge concept plan at their meeting on June 20, 2023. Larson explained that a major discrepancy in density between the 2040 Comprehensive Plan and the Unified Development Code was discovered, which triggered an important zoning issue for the city to resolve. The City Council immediately enacted a moratorium on June 20th, but in able to extend the moratorium to pending proposals, a public hearing must be held. The hearing was noticed for this August 15th meeting. August 15, 2023 Scandia City Council Page 4 of 8 The effect of a moratorium will be on any and all pending housing proposals, affecting only Laurel Ridge development. Larson said this is a policy issue for the council to decide – should a pending development for greater than intended density be allowed to proceed. Larson noted that the City received a legal opinion from the Laurel Ridge attorney that the proposed moratorium would not apply in this case. Larson said he disagreed, and cited a similar MN Supreme Court case from 2012 that was in favor of the affected city to allow a moratorium to protect the city’s status quo. Larson said Scandia has the right and power to protect its zoning and planning process in order to have the Comp Plan and the UDC work together, and state statute makes it clear that the power extends to pending proposals. In this case, the developer cannot assume they will be rezoned to Village Neighborhood. The Comp Plan gives guidance but not a mandate. Mayor Maefsky opened the public hearing at 7:56 p.m. Jacob Stein, attorney for Laurel Ridge Development, said he represents the family and developers. Stein said he is opposed to the moratorium and its extension to this project. Stein said he is asking to develop the property consistent with the Comp Plan which provides clear guidance for small lot, single-family development. Stein said that state law is clear that when there is a discrepancy, the Comp Plan supersedes the development code. The action being proposed is clearly intended to halt this project, and is clear that this proposal would gut the VN guidance under the Comp Plan. Stein said they are not asking for special treatment or to get away with something, just to allow the family to develop the property by relying on comp plan. Stein said that state statute notes that in a discrepancy the development code needs to be brought into compliance with the Comp Plan. Stein asked the Council not to pull the rug out from underneath the family. Stein recommended the Council table a decision and schedule a meeting to work collaboratively with all involved parties. Council member Benson asked if there is a downside to tabling the ordinance. City Attorney Larson said that timing of the application could be an issue. Attorney Stein stated that the statutory 60-day clock to review zoning applications has not started. Mayor Maefsky said the moratorium is not just for this project but for the whole Village districts. Attorney Larson clarified that the June 20th moratorium applies to all developments in the Village Districts, but not pending developments. This hearing is because of Laurel Ridge. If tabled, the Council can still bring it back to pass the moratorium. Council member Kronmiller said the error is in the Comp Plan, not the UDC. The city is looking for more density but needs sewer service provided appropriately with common sewer systems in these areas. Attorney Larson said it’s more complex than that. The Comp Plan is finding the right place for smaller lots in the Village districts. There is a possibility to work with the developer to find what works here. Infrastructure to support the increased density in the comp plan is mentioned, and this needs more discussion and analysis. There were no other speakers, and Mayor Maefsky closed the hearing at 8:14 p.m. August 15, 2023 Scandia City Council Page 5 of 8 Kronmiller, second by Cusick, moved to table the interim ordinance to give opportunity to have discussion with the project developer and staff. Motion carried 5-0. PARK AND RECREATION COMMITTEE Council member Benson reported on the August 7th PRC meeting. The Committee focused on planning upcoming events – Midco Day on August 23rd, including the ribbon cutting for the Little Library at Lilleskogen Park; the Community Center playground grand opening on August 30th; and Taco Daze activities with a pickleball tournament and star gazing at the Hay Lake picnic shelter. PLANNING COMMISSION Rezoning and Conditional Use Permit for 19690 Maxwill Ave N. Steve Munson, Applicant. Ordinance No. 2023-10 Rezoning; Resolution No. 08-15-23-03 (Findings of Fact); and Resolution No. 08-15-23-04 (Conditional Use Permit) Planner Hofer presented the recommendation from the Planning Commission to approve a rezoning for property at 19690 Maxwill Avenue, and to approve a Conditional Use Permit to allow an accessory structure exceeding the size permitted for the property. Hofer explained that the rezoning meets the standards of the UDC, as does the standards to approve the CUP. Watershed District comments were incorporated into the conditions of approval. Hofer referenced a question that the Planning Commission had about a well that served the previous cabin. The MN Dept of Health advised if the well is not in service, to follow the well closure requirements. Hofer presented approvals for the rezoning and CUP in an ordinance and resolutions. Hofer said that Washington County confirmed the application for the required lot combination has been approved. If the lot combination application is rejected, the building permit can then be revoked. Benson, second by Lubke, moved to adopt Ordinance No. 2023-10, Amending the Official Zoning Map to Rezone PID 29.032.20.14.0011 from Rural Residential General to Rural Residential Neighborhood; adopt Resolution No. 08-15-23-03, Approving Findings of Fact for Rezoning; and adopt Resolution No. 08-15-23-04, Approving Conditional Use Permit for 19690 Maxwill Avenue North. Motion carried 5-0. SCANDIA INTERNET ACTION COMMITTEE Scandia Internet Action Committee met on July 20, 2023. The minutes were in the meeting packet. Council member Kronmiller reported on Midco’s line extension projects, TOURISM COMMITTEE Tourism Chair Sue Dickens participated over Zoom and reported that the Committee is drafting a tourism mission statement, researching possible signage banners for Vinterlights and the Best of Shopping Extravaganza, inviting vendors to sign up for the event, and discussed “Evening Adventures” and its promotion. WASTEWATER COMMITTEE The Wastewater Committee met on July 19, 2023. The minutes were in the meeting packet. City Administrator Morell reported that Bolton & Menk staff attended and described funding August 15, 2023 Scandia City Council Page 6 of 8 opportunities for the sewer projects. The Committee discussed rate structures using water meters for staff to research, with continued discussion at a future meeting. BUILDING OFFICIAL The July building activity report was in the meeting packet. In July, 11 building permits were issued at a valuation of $649,709.00. FIRE DEPARTMENT Fire Chief Hinz reported on the fire department’s July activity. Last month the department responded to 28 calls; 12 fires, 15 medicals, and 1 dive call. Hinz met with MHealth to discuss issues with increased medical calls for a patient at a local group home that have risen to a nuisance level. Mayor Maefsky recommended a letter be sent to the owner, asking for a patient advocate. May Township Fire Coverage Contract Fire Chief Hinz provided a contract with costs for a 3-year service agreement for May Township fire coverage, as has been done for many years. Hinz explained that the new contract provides for an increase, with debt payments included in the expenses of the fire department. Motion by Kronmiller, second by Cusick, to approve presenting the 3-year service agreement to May Township as presented. Motion carried 5-0. CITY PLANNER Proposed UDC update for removal of 153.300.030 (GG)-Vacation or Short-Term Rentals Planner Hofer presented a draft ordinance to eliminate the short-term rental regulations from the Unified Development Code. The amendment would change the use to be permitted by rights, and strike the need for an IUP standard. Mayor Maefsky said any issues with short-term rentals can be handled through existing ordinances, saying it would be a staff burden and unnecessary to license the properties. Council member Kronmiller said the uses are not a problem now. Council was in consensus to direct staff to bring the ordinance to the Planning Commission for a public hearing at their September 5th meeting. 2040 Comprehensive Plan Amendment - Density Planner Hofer presented draft language addressing the density disagreement between the 2040 Comprehensive Plan and the Unified Development Code that sets inconsistent density standards in the Village Neighborhood Base Zoning District. The draft language to update the Comp Plan are related to density, resulting calculations from changes to densities, and referenced the UDC zoning ordinance. Hofer also proposed an update to the Future Land Use Map by moving the western edge of the Village Neighborhood district further to the east, identified by the Council on June 20th as an error in the map. Table II-I – Current Residential Allowed Density Ranges Land Use Category Units/Acres (Ordinance Standards) St. Croix River District 4/40 Agricultural Preserve 1/40 August 15, 2023 Scandia City Council Page 7 of 8 When density is regulated by a ratio that references 40 acres, those 40 acres shall be the area defined by the Public Land Survey as Quarter-Quarter Sections. Until sewer improvements are made, zoning in the Rural Mixed Use area will remain General Rural. Council agreed that it’s important the Comp Plan and UDC be consistent and to not have it confusing. Planner Hofer explained that the Comp Plan update needs a longer review by affected and adjacent jurisdictions for 60-day comment period, then a public hearing, followed by a review by the Metropolitan Council. CITY ENGINEER Engineering Updates City Engineer Goodman provided a report on engineering activities. The sealcoat project has been completed, with a contractor’s request for payment at the next Council meeting. 2022 Street Improvement Project – Contractor’s Request for Payment No. 5 and Final Benson, second by Kronmiller, moved to approve the Contractor’s Request for Payment No. 5 and Final and pay $13,596.49 to Asphalt Surface Technologies Corporation. Motion carried 5-0. 2024 Street Improvement Project – Authorize Plans and Specifications City Engineer Goodman presented a map and timeline for the 2024 road project. Soil borings and wetland delineations will be completed this fall. Goodman stated that the roadways being improved were last paved in 1999 and have road ratings of 1-3 in this area. The City’s budget has allocated $3.5 million for this project. Kronmiller, second by Lubke, moved to authorize plans and specifications for the 2024 Street Improvement Project as recommended. Motion carried 5-0. DIRECTOR OF PUBLIC WORKS Public Works Director Fischer provided a report on department activities. Staff has been pothole filling and making patch repairs on the roads, and began tree trimming with a new employee on staff this month. Fischer has been working with vendors and plans to monitor effluents into the sewer system, with potential metering of the lift stations. The Community Center playground structure is in place, with the ground cover being installed later this week and sodding next week. CITY ADMINISTRATOR City Administrator Morell reported on Gateway Trail discussions with the DNR and Washington County, including fiscal issues with the project. Staff is looking for completion in 2025 in order to complete all spending by the grant funding deadline of June 30, 2027. Agriculture Core District 4/40 General Rural District 4/40 Village Neighborhood District 4/40 1/2.5 Village Mixed Use A District 5/1 1/2.5 Village Mixed Use B District 5/1 1/2.5 August 15, 2023 Scandia City Council Page 8 of 8 Waste Management Agreement Revisions City Administrator Morell met with Council member Kronmiller to discuss concerns and revisions to the contract regarding certification of overdue payments and delayed service due to severe weather. City Attorney Larson stated that it’s important to align the updated trash ordinance with the contract. A future Work session will review the draft ordinance. Reinhardt Request to Waive Variance Fees City Administrator Morell explained the variance application Joseph and Katherine Reinhardt have submitted without payment and have asked the fees be waived based on their request that numerous fees have previously been paid for this continued review. Council member Kronmiller said that staff is basically reviewing the last application, requiring less staff time. Kronmiller, second by Benson, moved to waive variance fees for Joseph and Katherine Reinhardt. Motion carried 4-1, with Cusick opposed. ADJOURNMENT Kronmiller, second by Benson, moved to adjourn the meeting. Motion carried 5-0. The meeting adjourned at 9:39 p.m. Respectfully submitted, Brenda Eklund City Clerk