12-16-08 Council
December 16, 2008
A regular meeting of the Scandia City Council was held on the above date. Mayor Dennis
Seefeldt called the meeting to order at 7:00 p.m. The following councilmembers were present:
Councilmembers Pete Crum, Michael Harnetty, Dolores Peterson, Donnette Yehle and Mayor
Dennis Seefeldt. Staff present: Administrator Anne Hurlburt, City Attorney Dave Hebert, City
Planner Sherri Buss, Building Official Steve Thorp, Treasurer Colleen Firkus, Deputy Clerk
Brenda Eklund.
PUBLIC FORUM
Mayor Seefeldt formally recognized outgoing City Council members Harnetty and Yehle for
their years of service to the city and township. Harnetty and Yehle were presented framed copies
of resolutions honoring their service.
Councilmember Peterson, seconded by Mayor Seefeldt, moved to adopt Resolution 12-18-
08-01, Recognition of Council Member Michael Harnetty for Service to the Citizens of
Scandia. The motion passed unanimously.
Councilmember Peterson, seconded by Councilmember Crum, moved to adopt Resolution
12-18-08-02, Recognition of Council Member Donnette Yehle for Service to the Citizens of
Scandia. The motion passed unanimously.
Mayor Seefeldt presented a Certificate of Appreciation to Mike White for his initiative and hard
work in the reconstruction of the ice rink boards. Councilmember Harnetty read the names of the
additional volunteers who contributed their time to this project.
APPROVAL OF AGENDA
A report on the League of Minnesota Cities forecast concerning the proposed city aid cuts was
added to Administrator Hurlburt’s staff reports. Councilmember Yehle, seconded by
Councilmember Peterson, moved to approve the agenda as amended. The motion passed
unanimously.
APPROVAL OF CONSENT AGENDA
The following consent agenda was presented:
a) Minutes
1) November 18, 2008 Meeting with Planning Commission
2) November 20, 2008 Regular Meeting
3) December 1, 2008 Special Meeting (Truth-in-Taxation Hearing)
4) December 2, 2008 Meeting with Planning Commission
b) Treasurer’s Report
Beginning Balance 11/01/08 $905,085.42
Receipts 32,350.07
Expenditures 213,653.10
Payroll 19,235.86 - 232,888.96
Adjustments: Duplicate Exp. Entry + 35.00
Ending Balance 11/30/08 $704,581.53
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December 16, 2008
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c) Payment of Vouchers
d) 2009 Liquor Licenses
1) Scandia Creamery, On-Sale/Sunday On-Sale Intoxicating
2) Mi Casita Mexican Grill, On-Sale/Sunday On-Sale Intoxicating
3) Scandia Fire & Rescue Relief Association (Temporary On-Sale, February 28, 2009)
e) Certificate of Compliance, Silva Consultant Services (Resolution No. 12-16-08-03)
f) Certificate of Compliance, Charlie Westman, DVM, 14760 Oakhill Rd North (Resolution
No. 12-16-08-04)
Councilmember Harnetty, seconded by Councilmember Peterson, moved to approve the
Consent Agenda as presented. The motion passed unanimously.
PUBLIC HEARING: ADOPTION OF 2009 BUDGET AND FINAL PROPERTY TAX
LEVY (RESOLUTION 12-16-08-05)
Administrator Hurlburt presented an overview of budget actions so that the final tax levy may be
certified to the county by December 28, 2008. Revenues could be affected by proposed state
adjustments to the Market Value Homestead Credit. In a survey prepared by the Citizens League,
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Scandia ranked 106 of 117 cities in the metro area for property tax rates on an average value
home. The total property tax levy of $1,860,892 remains the same amount as certified at the
preliminary levy discussions in September. The total budget for 2009 was set at $2,363,809.
Mayor Seefeldt opened the public hearing. As there were no comments, the hearing was closed.
Councilmember Harnetty stated that the budget numbers give the council a plan to follow, but
these expenditures are subject to review and modification throughout the year. Councilmember
Peterson commented that her initial idea to freeze the budget was impossible to carry out.
Councilmember Peterson, seconded by Councilmember Crum, moved to adopt Resolution
12-16-08-05, Adopting the Budget and Capital Improvement Program and Certifying the
Property Tax Levy Payable in 2009. The motion passed unanimously.
POLICE DEPARTMENT
Deputy Chris Majeski reported on the past month’s police activity. The Scandia squad car
recently had a ticket writer system installed as part of a test program. This apparatus makes for a
streamlined process of issuing tickets to the court.
Mayor Seefeldt congratulated Deputy Majeski for his Lifesaving Award and Certificate of
Excellence recently awarded to him through the County Sheriff’s office.
FIRE DEPARTMENT
Fire Chief Steve Spence reported on the department’s activities. The 800 MHz radio switchover
is planned for February 2009. The department will participate in many training meetings over the
next two months.
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December 16, 2008
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Emergency Management Assistance Compact (EMAC) Intergovernmental Agreement
The Fire Department has requested that the city approve the signing of an Intergovernmental
Agreement which would allow the deployment of resources in the case of a disaster without a
delay to seek approval of the City Council. This action was recommended by the state EMAC
coordinator. The agreement provides for reimbursement to the City for all costs incurred and
would have no effect on existing mutual aid agreements. Chief Spence sees a benefit to the
department as resources and expertise could be made available to the Scandia crew, but a request
to deploy can be denied, depending on the need. The department also sees a need for this
agreement to allow assistance across state lines due to the close proximity to Wisconsin.
Councilmember Crum stated that certain proposals should be further evaluated before entering
into the agreement, such as a reimbursement schedule. Mayor Seefeldt suggested delaying action
to allow staff to further research state law requirements. Councilmember Harnetty, seconded
by Mayor Seefeldt, moved to direct staff to prepare a resolution for consideration at a
future meeting to address remaining issues of this agreement. The motion passed
unanimously.
The Fire Department will also research mutual aid agreements with bordering Wisconsin
communities.
Committee to Review Fire Department Governing Documents
The resolution governing the Fire Department, which was adopted in 1952, is in need of being
reviewed and updated to reflect the changing needs of the department and the city. Mayor
Seefeldt has requested that a committee be appointed to review the department’s governing
documents including the establishing resolution and bylaws, along with the city’s personnel
policies, state statutes and League of Minnesota Cities guidelines, and to make recommendations
on how they should be updated. Councilmember Harnetty, seconded by Councilmember
Crum, moved to appoint a committee consisting of two Council members (Seefeldt, Crum),
City Administrator Hurlburt, and two members to be recommended by the Fire
Department and appointed by the Council at a later date. The motion passed unanimously.
An orientation meeting was scheduled for January 22, 2009 at 5:30 p.m.
FIRE PROTECTION CONTRACT WITH MAY TOWNSHIP
A Fire Protection Contract to provide services to parts of May Township for years 2009 to 2011
was prepared by City Attorney Hebert. The township/city has provided this service for many
years. The payment from May Township is based on an estimate of population serviced and is
applied towards 10.52% of the Fire Department’s budget. This calculates to a payment of
$29,266 for 2009 with an increase of 5.5% for subsequent years. Councilmember Harnetty felt
that as the May Township is a co-user of the service, the yearly increase should be a minimum of
8% to cover the increasing costs associated with maintaining a fire department. Councilmember
Peterson, seconded by Councilmember Yehle, moved to approve a Fire Department Service
Agreement with May Township for 2009 through 2011. Voting aye: Crum, Peterson,
Seefeldt, Yehle. Voting opposed: Harnetty. The motion passed.
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December 16, 2008
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BUILDING/CODE ENFORCEMENT
Building/Code Enforcement Official Steve Thorp updated the council on the month’s activities.
The septic tanks pumps have been replaced at the Community Center. A waste separator tank
near the old maintenance garage was pumped and two underground fuel tanks are proposed to be
removed.
Quotes for Asbestos Removal at 20780 Olinda Trail
Four bids ranging from $12,950 to $16,345 were received for asbestos removal in the city-owned
house at 20780 Olinda Trail. The abatement will be the final step as required by state law before
the final demolition/disposal of the house. Thorp recommended accepting the low bid from Nitti
Rolloff Services of Blaine, MN. Councilmember Yehle, seconded by Councilmember Crum,
moved to accept the low bid of $12, 950 from Nitti Rolloff Services for asbestos removal in
the house at 20780 Olinda Trail. The motion passed unanimously.
CITY ADMINISTRATOR
Animal Control Services
Administrator Hurlburt discussed the options for animal control and the impounding of dogs that
has been researched since the last council meeting. As Woodbury Animal Humane Society is
terminating its impounding contract effective January 1, 2009 due to the City not providing for
the pickup of all domesticated species, alternative facilities were contacted. Northwoods Humane
Society in Wyoming has declined to provide impound service for the city based on their
communications with Scandia’s Animal Control Officer Sherrill Reid. Rick Ruzicka, Animal
Control Services, has submitted a proposal for combined animal control and impound services.
Mr. Ruzicka impounds dogs at Hillcrest Animal Hospital, Maplewood. A fee proposal was also
received from Hillcrest for impound services only. Based on past history, the costs of the various
options when calculated on a per-call basis appear to be lower with Animal Control Services.
The City’s arrangement with Ms. Reid pays one-third of her insurance costs ($222 in 2008).
Administrator Hurlburt outlined various options for discussion. These included amending the
ordinance to allow for animal control of all domesticated species, eliminate animal control
altogether (other than dangerous dogs), or to contract with alternative services.
Councilmember Peterson stated that animal control should continue as people expect it and she
would like the City to continue to use Ms. Reid’s services. Councilmember Yehle felt that the
pickup of cats could be allowed in extreme situations only and by doing so, the Woodbury
Humane Society could continue to be used as an impound facility, as Yehle would prefer to
continue with this non-profit organization. Yehle doesn’t foresee a problem of multiple cats
being collected. Councilmember Harnetty felt that the lowest cost service should be utilized.
Ms. Reid stated that the annual payment of insurance could be dropped, as she felt that she could
discontinue this policy with her provider. Councilmember Crum felt it mandatory that a
contractor with the City have liability insurance.
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December 16, 2008
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Ms. Reid was advised to submit a proposal for animal control which would include public
liability insurance coverage, to indemnify the City of any damages. The Woodbury Humane
Society has offered to extend impound services to the City beyond January 1 to allow time to
find an alternative impound facility, if necessary.
Report on State Aid Unallotments
Administrator Hurlburt reported on the League of Minnesota’s Cities forecast on legislative cuts
to payments of local government aid and market value homestead credit reimbursements. The
effect these unallotments would have to the City of Scandia range from a loss of $20,700 to
$31,100, depending on which level of cuts will be made. As revenue is ahead of budget at the
end of 2008, this loss can be absorbed somewhat, but the situation will be carefully monitored.
TILLER CORPORATION, ENVIRONMENTAL ASSESSMENT WORKSHEET FOR
ZAVORAL MINING AND RECLAMATION PROJECT
City Planner Sherri Buss reported that Tiller Corporation has submitted an application for a
Conditional Use Permit and Environmental Assessment Worksheet (EAW) for the Zavoral
mining project. This is a dormant mining site on 114-acres east of the intersection of State
Highways 95 and 97, owned by Dr. James Zavoral. The Minnesota Environmental Review
Program requires a review process of an EAW to determine if the project has the potential for
significant environmental impacts. Ms. Buss finds the EAW to be complete and recommends
that the Council approve the EAW for distribution to interested agencies and the public. Ms.
Buss outlined a schedule of dates for this review process. It was emphasized that approval for
distribution of the EAW does not indicate that the Applicant has met requirements for the CUP.
A 30-day review period will gather comments regarding the proposed mining operation. City
staff and the Applicant will prepare responses to comments and relative findings.
Councilmember Peterson, seconded by Councilmember Yehle, moved to approve the
distribution of the EAW as required by state laws. A public meeting will be scheduled at
the February 3, 2009 Planning Commission/City Council meeting to receive comments on
the EAW. The motion passed unanimously.
LEGISLATION INCREASING COUNTY OVERSIGHT OF WATERSHED DISTRICTS
(RESOLUTION 12-16-08-06)
The Washington County Board of Commissioners is seeking legislative authority to approve
watershed district annual budgets and property tax levy amounts prior to adoption by the
watershed district board of managers. The Board does not think it is appropriate for an appointed
board to have taxing authority without approval of elected county boards. Mayor Seefeldt
suggested that the City Council support legislation by adopting a resolution and providing it to
the city’s state representatives.
Jim Shaver, Carnelian-Marine-St. Croix Watershed Administrator, stated that he is opposed to
having the County Board approve watershed budgets, and urged the Council to deny the
resolution. Mr. Shaver felt the watershed is responsive to the community and the Board shouldn’t
control watersheds in which they do not live.
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December 16, 2008
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Wayne Moe, Comfort Lake-Forest Lake Watershed Manager, was also opposed to this resolution
and felt this legislative bill be a waste of taxpayer’s money.
Mayor Seefeldt commented that although good points were made, the issue of non-elected
managers having taxing authority is a concern. Councilmember Crum stated that taxing with no
representation causes issues, and that he doesn’t see a burden to the watersheds to present
arguments to the Board, which has the ability to look at the overall tax burden of properties.
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Mike White, 13310 188 Street, stated that there should be some local control over the
watersheds, and County Board approval of their budgets would be a step in the right direction.
Mayor Seefeldt stated that the current managers of the Car-Mar Watershed do not equally
represent the Scandia taxing district. Councilmember Peterson commented that this resolution is
in response to many citizen complaints concerning the watershed’s budgets.
Councilmember Crum, seconded by Councilmember Peterson, moved to accept Resolution
12-16-08-06, Supporting Legislation to Increase County Board Oversight of Watershed
Districts. The motion passed unanimously.
LEASE AGREEMENT WITH SCANDIA MARINE LIONS FOR ANNEX
City Attorney Hebert has prepared a lease agreement between the Scandia Marine Lions Club
and the City of Scandia for use of the old Fire Hall/Annex. The Lions have used the Annex for
storage and office space for their charitable gambling activities for several years. The Lions have
proposed to pay the city rent of $100 per month to offset utility costs. Councilmember
Peterson, seconded by Councilmember Yehle, moved to approve the lease agreement with
the Scandia Marine Lions for use of the old Fire Hall/Annex. The motion passed
unanimously.
ORDINANCE NO. 112 – SETTING USER FEES FOR THE 201 COMMUNITY SEWER
SYSTEM
The 2009 budget for operations of the 201 septic system servicing homes around Big Marine
Lake calls for increasing reserves for future system repairs and setting aside funds for expenses.
A 20% rate increase was recommended during budget discussions. The 2009 rate will increase to
an annual fee of $658.73. Councilmember Peterson, seconded by Councilmember Crum,
moved to adopt Ordinance No. 112 Establishing User Charges and Connection Fees for the
“201” Community Sewage Treatment System. The motion passed unanimously.
ORDINANCE NO. 113 – REGULATING UTILITY PERMITS
A utility permit fee of $50.00 was set by Ordinance No. 42 in 1992. In budget discussions,
Council directed staff to prepare an ordinance increasing the fee to $150.00. The updated
ordinance includes the requirement of a financial guarantee for restoration, if needed.
Councilmember Peterson, seconded by Mayor Seefeldt, moved to adopt Ordinance No. 113
Amending Section 1.1 of Ordinance No 39 Regulating the Construction of Public Utilities
and Requiring Permits. The motion passed unanimously.
AMENDMENTS TO COMMUNITY CENTER RENTAL POLICY
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December 16, 2008
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The rental rates of the Community Center have not been adjusted for several years while the
operating budget has been increasing. The Council directed staff to prepare an amendment to
raise rates for private events, effective for contracts signed after January 1, 2009.
Councilmember Peterson, seconded by Councilmember Crum, moved to approve the
changes to the Community Center Rental Policy. The motion passed unanimously.
EMPLOYEE PAY RATES FOR 2009 (RESOLUTION 12-16-08-07)
The Human Resources Committee (Council members Crum and Peterson and Administrator
Hurlburt) has recommended cost-of-living pay adjustments for employee wages in 2009. A 3%
pay rate adjustment was calculated into the budget. Councilmember Crum, seconded by
Councilmember Peterson, moved to adopt Resolution 12-16-08-07, Establishing Pay Rates
for 2009. Upon discussion, Councilmember Yehle felt that with reserves down, this is not the
time to be adding a pay increase to the budget. Councilmember Peterson commented that pay
rates should be frozen and evaluated at a later date. Councilmember Crum stated that denying a
cost-of-living increase can affect morale and productivity, and is not an effective way to attract
and retain qualified workers. Voting in favor of adopting Resolution 12-16-08-07: Crum,
Harnetty, Seefeldt. Voting opposed: Peterson, Yehle. The motion passed.
Councilmember Yehle, seconded by Councilmember Harnetty, moved to adjourn.
The meeting adjourned at 9:30 p.m.
Respectfully submitted,
Brenda Eklund
Deputy Clerk