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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. Scandia City Council Work Session May 1, 2024 Page 2 of 5 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. Scandia City Council Work Session May 1, 2024 Page 3 of 5 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. Scandia City Council Work Session May 1, 2024 Page 4 of 5 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. Scandia City Council Work Session May 1, 2024 Page 5 of 5 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