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12-06-2023 Work Session December 6, 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, Mike Lubke and Mayor Christine Maefsky. Staff present: City Administrator Kyle Morell, Public Works Director Charles Fischer and City Clerk Brenda Eklund. APPROVAL OF THE AGENDA Kronmiller, second by Benson, moved to approve the agenda as presented. Motion carried 5-0. TRUTH IN TAXATION PUBLIC HEARING ON THE 2024 BUDGET AND PROPERTY TAX LEVY City Administrator Morell presented an update on the 2024 budget with adjustments made since the last meeting. Spending in the capital 401 fund was reduced to lower the tax rate as close to the 2023 rate as possible, based on Council direction. This lowered the tax rate to 26.633%, or 0.174% above the 2023 rate. The final budget levy amount of $2,996,852 represents a 6.89% increase over 2023, and a $25,000 reduction from the preliminary levy amount adopted in September. City Administrator Morell stated that the final budget will be presented for adoption at the December 19th Council meeting, and asked for Council direction on any changes to the budget and levy. Mayor Maefsky opened the public hearing. Shawn Collier, Maxwill Avenue: Said she had general questions on the budget. Staff clarified that the Big Marine Sewer Fund will be split into the Bliss Fund and the Anderson/Erickson Fund to better track expenses for each system. Collier said it is upsetting to those not on the city’s sewer system to not have the service of high-speed internet. Collier asked if the City is charging enough for this sewer entity. City Administrator Morell explained that a 25% sewer rate increase is proposed for next year, per the rate study done in 2019. Morell said the City has applied for grant funding for improvements to the Bliss Sewer but this is yet unknown. Council member Kronmiller stated that Midco is looking to expand into Collier’s neighborhood next year. Morell confirmed that internet funding for 2024 was restored to the recommendation level of the Internet Action Committee, that being a capital expense of $250,000. There were no further comments from the public. Scandia City Council Work Session December 6, 2023 Page 2 of 4 Mayor Maefsky directed staff to prepare action on this budget and levy as presented for the next meeting. SCANDIA CITY CENTER STUDY PUBLIC INVOLVEMENT PLAN REVIEW City Administrator Morell presented a draft Public Involvement Plan, as proposed by consultant HKGi for the Scandia City Center Study. Project leaders Jody Radar (HGKi) and Sara Allen (Washington County) joined on Zoom to address any questions. A web-based launch of engagement materials is planned for mid-December, to gather feedback from the local businesses and the community. A booth and walking workshop is planned for the City’s Vinterfest event on January 27, 2024. Ms. Allen noted that the draft can be modified if the Council sees that any changes are needed. Ms. Rader said the document was built on the community engagement work done as part of the Parks Master Plan study. City Administrator Morell asked anyone with specific contact information for community groups and businesses to share that so as to be added to the stakeholder lists. Council member Kronmiller stated that the plan is comprehensive and looks good. No changes were made to the Public Involvement Plan as it was presented. COUNCIL REQUEST FOR ACTION – JOE REINHARDT, 18884 LAYTON AVE. N. City Administrator Morell presented a Request for Council Action from the Reinhardt family to aid them in offering a reward for information leading to the arrest of the individual or group that vandalized their motor home last month. The request explained that this action would be a show of support for elimination of crime in their neighborhood. City Administrator Morell explained that the City Attorney advised that a city’s power to provide rewards is limited to felony violations, those having costs of repair or replacement over $1,000 in damage. Morell said that Reinhardt has not proved that costs of repair are greater than $1,000. Council member Kronmiller asked if it is typical for cities to do this? Council member Cusick, retired from law enforcement, said that he has never seen this happen. Cusick said a reward for the betterment of Scandia is not the point in finding the suspect; the deputy will still work hard to solve the case whether or not there is a reward. Council member Kronmiller said that he would be worried this could set a precedent. Council member Benson said this could lead to future decisions on how to decide which victims get rewards. Benson, second by Cusick, moved to decline the Reinhardt request to use city funds to set up a reward. Motion carried 5-0. Scandia City Council Work Session December 6, 2023 Page 3 of 4 COUNCIL REQUEST FOR ACTION – DENNIS PALKERT, 12632 182ND ST. N. City Administrator Morell presented a Request for Council Action from Dennis Palkert for the cancellation of fees accrued for a variance amendment request to adjust the lake setback for a patio which was not part of the original plan for his variance approved in 2020. Palkert wrote that staff had initially supported his request, he paid the fee and escrow, but staff then recommended denial. Palkert wrote that this left him with costs he said were a waste of money because the Planning Commission did not support the variance and recommended denial. Palkert was sent an invoice for the balance of costs for the variance amendment, totaling $1,360 above the $600 escrow deposit. Council member Benson said she would like to hear from the planner on this situation. City Administrator Morell said he is aware of a comment from the planner that he should have first reviewed the facts of the case. Council member Kronmiller stated that Palkert’s fees total around $2,000 predicated on a conversation with the planner that he could support the variance amendment. City Administrator Morell noted from the invoices that Bolton & Menk billed the city for 14.5 hours, saying this seems excessive, and that the consultant is reviewing the invoices. Council member Benson said before taking action, they should first have a response from Bolton & Menk on the billing and have the City Planner in attendance. Lubke, second by Benson, moved to table action on the Palkert request to the December 19th meeting. Motion carried 5-0. ROLLING ACRES 61 DEVELOPMENT AGREEMENT The final draft of the Development Agreement with Rolling Acres 61 was presented for approval. City Administrator Morell stated that the agreement mirrors the terms of the Council’s approval of the final plat in September 2023. Kronmiller, second by Benson, moved to approve the Development Agreement for Rolling Acres 61. Motion carried 5-0. WASTE MANAGEMENT AGREEMENT & GARBAGE ORDINANCE City Administrator Morell presented final versions of the Waste Management Agreement for organized collection of trash and recycling, and the updated trash ordinance. A public hearing is scheduled for December 19th for the ordinance, with approval of the agreement also on the agenda to be effective January 1, 2024. Morell said he is looking for feedback on the documents. Council member Cusick asked if the contract is any different from Mahtomedi’s in order to have more teeth to enforce penalties for missed service? City Administrator Morell said it is not much different from many of the contracts WM has with cities. There are clauses for penalties, but could come at the expense of legal fees. Morell said there are other communities which do not have concerns with WM once the problems with driver shortages has eased. Scandia City Council Work Session December 6, 2023 Page 4 of 4 City Administrator Morell said the contract allows for self-hauling, and that businesses with less than 60 gallons/week can waive trash service and bring the trash home with them. Morell clarified that it is a state law that a resident cannot have just trash service, it must have both trash and recycling; however a customer can pay for recycling and not have trash service. This was reflected in the price structure of the contract. Council member Kronmiller said there needs to be a good communication plan to residents to notify the city with issues of service. Kronmiller said there are good things in the contract, but customers need to alert the city when there are problems in order for enforcement to occur. City Administrator Morell said communication will direct residents to the city’s online complaint form, and that WM has an online notification system that residents will be encouraged to register for. Council member Lubke recommended monthly reporting from WM to see any service trends and tracking. Morell said he will check with WM on the potential to provide more frequent reporting. REVIEW THE 2024 DRAFT FEE SCHEDULE Staff prepared an updated fee schedule for adoption at the December 19th meeting, with fees becoming effective on January 1st. The sewer rates will increase 25% as recommended by the Wastewater Committee, electrical permit fees will be increased as recommended by Electrical Inspector Joseph Wheaton, and some escrows for zoning applications will be increased to better reflect actual costs of planning services. The Council had no concerns regarding the 2024 fee schedule, and directed staff to prepare the ordinance update for approval on the December 19th consent agenda. ADJOURNMENT Kronmiller, second by Lubke, moved to adjourn the meeting. Motion carried 5-0. The meeting adjourned at 7:06 p.m. Respectfully submitted, Brenda Eklund City Clerk