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04-03-2024 Work SessionApril 3, 2024 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, Treasurer Colleen Firkus, and City Clerk Brenda Eklund. APPROVAL OF THE AGENDA Kronmiller, second by Lubke, moved to approve the agenda as presented. Motion carried 5-0. 2024 STREET PROJECT PROPOSED LAND SWAP —12160 196TH ST N. City Administrator Morell described a proposed land swap at 196th Street to gain the appropriate street width and ROW as part of the 2024 Street Improvement Project. A line of trees will need to be removed on private property belonging to Ron Helms. Staff is proposing a solution to secure his property in order to widen the road in exchange for a city owned lot that was deeded to the city by a family member in 1998. Morell described this as a 4,000 square foot lot that has no use to the city and remains unclear why it was deeded over in 1998. Mr. Helms will deed the city a part of his lot along 196th Street, approximately 5 feet of property off the roadway. Both sides of the road ditch will be constructed for stormwater management. Morell said staff is asking for council approval. Public Works Director Fischer explained that the road will be slightly wider and extended outwards. The road serves eight properties along Big Marine Lake. Mayor Maefsky asked if there are any negatives to this proposal. Administrator Morell answered no; Helms gets back property the family once owned, and the deeded property will add to the city's tax roll. Council member Kronmiller recommended a condition that the separate lots owned by Mr. Helms be combined into one property. Council agreed to this condition. City Attorney Larson will draft the documents with property descriptions provided by the City Engineer. Kronmiller, second by Cusick, moved to approve a land swap at 12160 196t' Street North with a condition to combine the separate lots. Motion carried 5-0. CITY HALL IMPROVEMENTS Treasurer Firkus provided a history of Community Center updates over the years, but the office space has not been updated since the structure was built in 1986. Firkus described plans to add a Scandia City Council Work Session April 3, 2024 Page 2 of 3 public service window in the hallway, recarpet and repaint the office, and to replace workspace furnishings so that space is more efficiently designed to accommodate up to four employees in the office. Included in the project is a conversion of the current tech room (the old kitchen space) to make it a more usable space for storage of historical documents currently taking up filing space in the office. Administrator Morell stated that this project is included in the 2024 Capital Improvement Plan, and asked for Council approval for staff to get quotes for the work. Morell added that it would be worthwhile to also paint the large hall as part of the project. Mayor Maefsky explained an idea for installation of a photo mural of the St. Croix River valley along a wall in the large hall, and asked staff to include this in the estimate. Council member Benson noted that with property valuations lowered in 2024, the city may need to look for budget cuts in 2025, and that this project may need more thought before proceeding. Council member Kronmiller said at this point there is no cost to get estimates for the work. Treasurer Firkus stated that the project has a budget of less than $50,000, and is a line item in this year's budget. The Council was in consensus and had no objections to getting quotes for the described work. 2024 ASSESSMENT REPORT Administrator Morell explained that he is bringing the Washington County 2024 Assessment Report to the Council's attention, noting the overall value of taxable land in Scandia decreased 1.3% in 2024; meaning the city's taxable value will also decrease which will affect the 2025 budget and spending goals. Historically the city has had an average increase of 9.8% in tax capacity over the past several years, allowing the tax rate to stay low. Morell explained that the assessor uses property sales to determine the annual adjustment for valuation models. Sales have been slow county -wide due to higher interest rates, and may stay stagnant until the market turns around. Assessor Poshek will further explain the assessment report at the Local Board of Adjustment and Appeals on April 15, 2024. CODE OF CONDUCT POLICY Administrator Morell presented a Code of Conduct Policy as drafted by legal staff for Council review. This policy is a necessary part of the LCCMR grant award; the city currently does not have an adopted policy for City Council and committee members. Council member Kronmiller questioned if an individual's financial conflict of interest should exclude a member from participating in a matter, as Paragraph b. references a business that a person is associated with. Administrator Morell said he will consult with the City Attorney to make this language clearer. Scandia City Council Work Session April 3, 2024 Page 3 of 3 Administrator Morell clarified that Paragraph f. cites state statute for the rules on acceptance of gifts. Kronmiller, second by Benson, moved to approve the Code of Conduct Policy with a change to Paragraph b. as recommended by staff. Motion carried 5-0. HEINISCH PROPERTY DONATION Administrator Morell reported that the Joyce A. Heinisch trust has left 240 acres of land in Scandia to Washington County Parks for the purpose of establishing a regional park. Morell was contacted by Washington County on Monday that the property does not fit into the County's park plan, but asked if the city would be interested in acquiring the land. The property was placed into a Conservation Easement with the Minnesota Land Trust in 2011. The easement prohibits development, but does allow farming to continue on the land. Council member Kronmiller suggested doing something creative with the land, such as hobby farm plots. Administrator Morell said the trust language is vague; the intent is for the land to be donated as a park. The family owns the acreage which is held by the trust. Morell said the property taxes on the land pays $1,600 in Scandia taxes this year. Commissioner Benson asked if held as parkland, are there any obligations to maintain it. Administrator Morell said there would be some obligations, such as keeping it clear of invasive weeds. Mayor Maefsky said she would like to know what various uses the land can have. Administrator Morell said he will detail that in a future report, along with any other information he finds out. Morell asked the Council to forward him any other questions they may have. ADJOURNMENT Benson, second by Lubke, moved to adjourn the meeting. Motion carried 5-0. The meeting adjourned at 7:07 p.m. Respectfully submitted, Brenda Eklund City Clerk