06.a3 Draft minutes 05-01-2024 Work Session
May 1, 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, City Planner TJ Hofer, City Treasurer Colleen Firkus and City Clerk Brenda
Eklund.
APPROVAL OF THE AGENDA
Mayor Maefsky announced that Agenda Item #10. Border to Border Grant Funding Request
would be moved up to Agenda Item #3.a. Lubke, second by Benson, moved to approve the
agenda as amended. Motion carried 5-0.
WACHTER REQUEST FOR COUNCIL ACTION – WAIVING OF COMMUNITY
CENTER FEES
Administrator Morell presented a request from Janelle Wachter to waive or reduce the $200
Community Center rental fee to host a fundraising benefit for her niece to help with medical
expenses. Mayor Maefsky said it seems like the fee should be waived in this instance.
Kronmiller, second by Benson, moved to waive the Community Center rental fee for a
benefit fundraiser. Motion carried 5-0.
PLAQUE DONATION FROM SCANDIA-MARINE LIONS CLUB – LIONS
PRESIDENT PATTI RAY
Scandia-Marine Lions President Patti Ray presented a request to honor the late Janet Swenson
with the installation of a memorial plaque to celebrate and memorialize her contributions to the
community. Ray said Janet spent countless hours at the Community Center, and having a plaque
mounted to a bench at the entrance would be symbolic of her welcoming nature.
Kronmiller, second by Benson, moved to approve the Lions Club request to install a plaque
to a bench at the entrance of the Community Center. Motion carried 5-0.
BORDER 2 BORDER GRANT FUNDING REQUEST
City Administrator Morell reported that at the April 18th Internet Action Committee meeting,
Midco announced that they are applying for a Border 2 Border grant for 154 passings within
Scandia, mostly along the river. Midco is asking for a $300,000 city contribution to the project,
which has since grown to include more areas outside the community, but not effecting Scandia’s
contribution. Morell said he has received positive response to the announcement, at least 72
letters of support so far. Morell said the project is within the budget allocated for broadband
expansion, most likely to be paid out in 2027 once speed tests are verified. The grant application
is due on May 10th.
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Council member Kronmiller said if this grant is approved by the state, Scandia will then have
130 homes left to connect; the broadband expansion project is making tremendous progress, with
mostly infill connections left.
Council member Benson asked if funds are committed to this project, will there be enough
funding for a future project?
IAC Chair Bob Wilmers stated that this is DEED grant round number 10 from the state. This
project area is well suited for an expensive project due to terrain and low density. The remaining
infill connections may even be done by Midco on their own in the future.
Council member Lubke asked if the houses to the north outside of Scandia will be contributing
towards the cost? Council member Kronmiller said he assumes Midco will go to Franconia and
Chisago townships to ask for their support.
Kronmiller, second by Lubke, moved to support Midco’s Border 2 Border grant
participation and funding request. Motion carried 5-0.
LAWFUL GAMBLING PREMISES PERMIT – LAKES AREA RECREATION
ASSOCIATION AND THE OZARK TAVERN. RESOLUTION NO. 05-01-24-02
Cory Lindgren, Gambling Manager for the Chisago Lakes Area Recreation Association,
explained their application for a Lawful Gambling Premises Permit to conduct charitable
gambling at The Ozark Tavern, 21050 Ozark Avenue. Staff found the application to meet the
City’s gambling ordinance requirements.
Kronmiller, second by Lubke, moved to adopt Resolution No. 05-01-24-02, Approving
Lawful Gambling Premises Permit for Lakes Area Recreation Association. Motion carried
5-0.
BOND SALE FOR 2024 ROAD PROJECT – JASON AARSVOLD. ADOPT
RESOLUTION NO. 05-01-24-01 PROVIDING FOR THE ISSUANCE AND SALE OF
$3,975,000 $3,635,000 GENERAL OBLIGATION BONDS
Jason Aarsvold, Municipal Advisor for Ehlers, was present to report on the bond sale that
occurred today for issuance of a $3,635,000 bond for the 2024 Road Construction Project. The
sale affirmed the city’s AA+ bond rating, resulting in a competitive bidding process from eight
bidders. The sale was awarded to lowest bidder TD Securities at an interest rate of 3.5701%, and
at which paid a premium for the bond, reducing the city’s par amount to $3,635,000 but
maintains the same proceeds of $3,975,000 to pay for the street construction and sealcoat
projects. Aarsvold explained that the resulting debt service will be lower than anticipated. A
resolution for issuing the bond was prepared and which reflected the updated bond amount.
Benson, second by Kronmiller, moved to adopt Resolution No. 05-01-24-01, Providing for
the Issuance and Sale of Amended Amount $3,635,000 in General Obligation Bonds.
Motion carried 5-0.
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TABLED FROM APRIL 16, 2024 MEETING: AMENDING THE CITY OF SCANDIA
2040 COMPREHENSIVE PLAN, REGARDING DENSITY AND ZONING. CITY
PLANNER TJ HOFER
Planner Hofer explained that the issue being discussed tonight is carried over from April 16th –
to resolve a conflict between the Comp Plan and UDC as it relates to density in the Village
Neighborhood zoning district. The last meeting focused on conditions of sewer systems, at which
staff was asked to research questions that were brought up on private shared sewer systems.
Hofer said that staff reached out to experts in the field. The County noted that systems over
10,000 gallons a day (approximately 22 homes) requires a permit from the state and are
extremely costly to install and maintain, also needing acreage for its operation that would take up
developable space for homes or open space. However, a city cannot be forced to take over a
failing private shared system.
Hofer said the County pointed out that at a density ratio of 1.5 acre lots, a home can be served by
an individual system without necessitating a shared system.
Regarding the question of what kind of impacts the proposed comp plan amendment would have
on the UDC, Hofer provided an impacts chart in his staff report. Most will not have UDC
impacts, but adding and updating language regarding density bonuses and life-cycle housing
through PUDs will need to be reflected in the UDC.
Hofer concluded with his analysis that the best mechanism to approve potential higher density
development in the city is eliminating the requirements for public water and sewer and instead
approving developments through PUDs. Hofer said Planned Unit Developments allow a large
amount of discretion on a case-by-case basis to ensure the developments meet the needs and
goals of the city. Hofer recommended the Council table action to the next meeting in order for
staff to prepare this language if acceptable.
Council and staff further discussed the Planner’s report and concluded with no objections to this
direction. Council member Kronmiller said a private system on 1.5 acres makes sense, but it’s
the 5 units per 1 acre density that would need to utilize a shared system. Planner Hofer said this
density is not reflected in the Comp Plan but would need to be further refined in the UDC.
Kronmiller, second by Lubke, moved to table amendments to the Comp Plan and directed
staff to prepare amendments for the next meeting. Motion carried 5-0.
2023 / 2024 CIP APPROVED EXPENSES
Administrator Morell reviewed a list of approved capital projects dating back to August of last
year. Of the 13 projects listed, ten have been approved and the items have been ordered or
delivered. The remaining projects are the tennis court reconstruction, purchase of a new fire
engine, and the City Hall renovations. Morell provided spreadsheets outlining estimated costs
and fund balances, with news that the fire engine purchase could be moved up for payment this
year due to an unexpected early delivery.
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Fire Chief Hinz explained that the city has been offered a demo type unit from the manufacturer
which could arrive later this year instead of the anticipated year-long wait. An early delivery
saves over $100,000 on the cost, but payment will need to be made in 2024.
Administrator Morell explained that if the city moves forward with purchase of the fire engine, it
will mean the plow truck and fire tender which have been ordered results in equipment payments
of $1.5 million by the end of the year. These are listed in the 2024 budget but spread out over
three years with plans to issue one equipment certificate each year. It’s now fast forwarded for
all three to happen this year.
Financial advisor Jason Aasvold offered to explain that a bond could be issued for the equipment
purchases in place of equipment certificates through a bank. Aarsvold said that at higher dollar
amounts, it could be advantageous to obtain a better rate with a bond, but he said all scenarios
should be analyzed.
Administrator Morell said if the fire engine purchase is approved, a chassis payment would be
made in November, and the plow truck payment at the end of this year or early next year, so
there is time to analyze payment scenarios. The question before the Council is whether to
approve the purchase of a fire engine now or in the future, but then the cost will certainly be
more. Morell added that having an engine over 25 years old could lower the department’s ISO
rating, which then causes homeowners’ insurance rates to be raised.
Mayor Maefsky said that moving ahead now with this makes sense. Council member Benson
agreed.
Administrator Morell added that if the state bonding bill for Bliss Sewer funding comes through,
then ARPA funds can be reassigned to another government expense such as equipment.
Maefsky, second by Benson, moved to approve the purchase of a replacement fire engine.
Motion carried 5-0.
CARNELIAN MARINE ST. CROIX WATERSHED BLISS STORMWATER PROJECT
Administrator Morell reported that bids for the Bliss Stormwater Project, a joint project with
CMSCWD since 2017, came in under budget at a cost of $401,842. The project is partially
supported by a grant from the state’s Clean Water fund to treat stormwater before discharging to
Big Marine Lake. The city’s cost share portion will be $122,525 for the base bid, originally
budgeted at $160,000. The alternate bid for drainage improvements would add $98,570 to the
cost, which Morell said staff is not recommending. If approved, the project will start in the next
month.
Kronmiller, second by Cusick, moved to approve the Base Bid for the Bliss Stormwater
Project. Motion carried 5-0.
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CARNELIAN MARINE - GOERS – SCANDIA MOU FOR THE INSTALLATION &
MAINTENANCE OF A RAINGARDEN
Administrator Morell explained that the owners at 12730 182nd Street North are working with the
Carnelian-Marine-St. Croix Watershed to install a raingarden on a portion of city property, an
adjacent access that would have a small sliver of the raingarden. Morell said there is no cost to
the city, but the owners and Watershed need the area to install the raingarden to capture runoff
that is currently flowing into Big Marine Lake untreated. The owners and Watershed will fund
the project and conduct all required maintenance. A Memo of Understanding allowing
installation of the raingarden was presented for approval, with no obligation for maintenance.
Council member Kronmiller questioned why the schematic shows a proposed second story on
the existing home. Administrator Morell said approval of the MOU does not mean the Council is
approving the addition.
Kronmiller, second by Benson, moved to approve the Memo of Understanding for the
installation of a raingarden at 12730 182nd Street North as presented. Motion carried 5-0.
WEBSITE REDESIGN BY REVIZE
Since 2020, the city has had an agreement with Revize Web Services for hosting, support and
maintenance of the city’s website at a rate of $1,900 a year. Administrator Morell explained that
the 4-year agreement is coming to an end, and Revize has proposed an updated agreement
beginning in April 2025 at an increased cost of $2,400 a year. Revize is offering a redesign and
could include a feature called “Smart Search” at a one-time cost of $1,250.
Kronmiller, second by Lubke, moved to approve the website redesign and new sales
agreement with Revize Web Services as presented. Motion carried 5-0.
ADJOURNMENT
Benson, second by Lubke, moved to adjourn the meeting. Motion carried 5-0.
The meeting adjourned at 8:07 p.m.
Respectfully submitted,
Brenda Eklund
City Clerk