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06.a2 Draft minutes 11-06-2024 Work Session November 6, 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 Steve Kronmiller, Mike Lubke and Mayor Christine Maefsky. Absent: Council member Jerry Cusick. Staff present: City Administrator Kyle Morell, Fire Chief Mike Hinz, Public Works Director Charles Fischer, and City Clerk Brenda Eklund. APPROVAL OF THE AGENDA Lubke, second by Kronmiller, moved to approve the agenda as presented. Motion carried 3-0. PUBLIC HEARING: ORDINANCE NO. 2024-07 ADOPTING CANNABIS REGULATIONS; SUMMARY PUBLICATION RESOLUTION NO. 11-06-24-01 Administrator Morell presented the ordinance for cannabis regulations as discussed at last month’s work session, with the addition of buffer requirements for outdoor cultivation as added by City Planner Hofer. The Planner’s report cited complaints that other cities have received about odor from outdoor cultivation sites. Hofer’s report proposed reintroducing a buffer zone of 1,000 feet around school properties to help disperse odors before reaching school property. This provision was added as Section 3.1. Morell stated that other than this added buffer language, the proposed ordinance remains unchanged from last month with no limits to the number of business registrations and to not restrict the sale of low-potency hemp to places that only allow persons over 21 years of age and older. Mayor Maefsky opened the public hearing at 6:32 p.m. Kirsten Libby, 205th Street, said she has been following cannabis regulations at all levels since the inception of the law. Libby said she was surprised by the addition of buffer requirements around school property, saying this is over the top and should be rejected. Libby said the types of businesses for farming cannabis are small and not large sections of farmland, but rather up to 2 acres in size. Libby stated that previous to this buffer, there is zoning that will limit where cannabis can be grown. Libby concluded with saying this is too much, the council should reject this language, and that it is impossible to eliminate the odors anyway. Administrator Morell said this language came from the City Planner at a conference he attended regarding communities’ approach to regulating cannabis cultivation which creates a noticeable odor. Morell said the ordinance is being presented with this buffer in, rather than adding language that you haven’t seen before; the language is being presented for discussion. Ms. Libby said that from a legal standpoint, the city needs to do things that are reasonable. Libby said the 1,000-foot buffer hits edge of not being reasonable and can open up the city to liability. Scandia City Council Work Session November 6, 2024 Page 2 of 4 City Administrator Morell noted that existing zoning around the elementary school will not allow cultivation, but the riding arena to the north which is property owned by the School District is surrounded by RR-G where it can be grown. Mayor Maefsky said she doesn’t see a need to have a buffer. Council member Lubke said he goes along with that. Kronmiller, second by Lubke, moved to close the public hearing. Motion carried 3-0. The public hearing was closed at 6:41p.m. Maefsky, second by Lubke, moved to adopt Ordinance No. 2024-07 with removal of Section 3.1 regarding a buffer zone. Motion carried 3-0. Maefsky, second by Kronmiller, moved to adopt Resolution No. 11-06-24-01, Summary Publication of Ordinance No. 2024-07. Motion carried 3-0. ACCEPT RESIGNATION OF ZACH CALDWELL FROM SCANDIA FIRE & RESCUE Fire Chief Mike Hinz presented the resignation from Volunteer Firefighter Zachary Caldwell due to a move outside of the response area. Kronmiller, second by Lubke, moved to accept Zachary Caldwell’s resignation effective October 1, 2024. Motion carried 3-0. FIRE DEPARTMENT AND PUBLIC WORKS COLD STORAGE BUILDING Fire Chief Hinz presented a plan to build a new storage building on the grounds of the Fire Dept/ Public Works site at 15040 Scandia Trail. Some equipment and attachments are being stored outside, with other equipment stored in an existing building at the Community Center. Public Works Director Fischer said this is an inefficient arrangement, with limited space for storage. Hinz said the Fire Department needs space to store items used for training and other items. Hinz said this is a Capital Improvement Project, with bids coming in close to the cost estimate of $160,000. The parking lot at City Hall is scheduled for replacement in 2026, with removal of the existing cold storage building to allow for an expanded parking area. Hinz described the building to be 50’x 96’ in size. Bids were received from four vendors. Hinz recommended acceptance of the bid from Sherman Buildings in the amount of $161,139.67. Council member Kronmiller asked if there may be other costs, such as removing the existing cold storage building. Fire Chief Hinz said there may be some value potential for a buyer to reuse the building or pay a scrap price, but he has not researched this. Administrator Morell said the city can issue a request for proposals for its removal. Scandia City Council Work Session November 6, 2024 Page 3 of 4 Public Works Director Fischer said the tennis court project brought over compacted material to the PW site that will be used for fill material. Kronmiller, second by Lubke, moved to accept the bid from Sherman Buildings for a 50’ x 96’ storage building in the amount of $161,139.67. Motion carried 3-0. CARRIE MITCHELL - CONCERNS ABOUT THE BUILDING PERMIT PROCEDURES Carrie Mitchell, 205th Street addressed the Council, saying she is picking up her concerns from the last meeting about building permit procedures, looking for a solution of documentation, and to discuss procedures. Due to faulty inspections which resulted in water damage to her home, Mitchell said she would like to see an improvement to building inspection review procedures to not allow this to happen to any other properties again. Mitchell documented her situation in a report to the Council, and said better procedures are needed to move forward for a solution. Administrator Morell said staff is in the process of bringing a new forms program for building permits online. This offers a transparency module to allow a resident to have access to all stages of the building permit process. Inspections, pictures, and reports will all be available online to view. Beyond that, staff is unclear on what else we could do, but this could solve some of Mitchells’ concerns. Mayor Maefsky said it appears Mitchell is looking for something more than a photo, rather a best practices to ensure the building code is met and what should be done is being done. Maefsky asked if there are examples from other communities, and to study their policy and procedures to make the inspection sequence clear. Morell said the program being considered is Clearforms from ClearGov, a documentation program being used elsewhere. Morell will meet with Carrie Mitchell in the next few weeks to review a demonstration of the program. 2025 DRAFT FINAL BUDGET Administrator Morell presented minor changes to the 2025 budget since the October presentation. The Capital Improvement Committee and the Wastewater Advisory Committee have met with recommendations incorporated into the budget. The total CIP levy totals $730,000. The Sewer budget will split out Anderson-Erickson from the Bliss system and budget expenses and revenues separately in 2025. The Committee reviewed billing, with one member having a desire to implement seasonal fees for users. An idea was also made to charge residents for services such as tank pumping, pump replacement, and after-hour service calls. These costs have been pulled out of the budget and made a separate revenue line as user fees for these services. A bill will be sent to the homeowner for direct costs of the call. This will reduce monthly and annual costs to the users. Morell explained that he has worked in a seasonal fee for both funds, of which the Bliss has 4 seasonals, and 5 seasonal cabins in Anderson-Erickson. A seasonal rate of $900/year will be implemented. The Bliss will have annual user fees of $1,420 and A/E of $1,270. This is a reduction from the past year’s fees, with service fees making up the gap. Scandia City Council Work Session November 6, 2024 Page 4 of 4 Administrator Morell said a meeting will be scheduled with the sewer users to present this new system and answer any questions. Kronmiller asked if the budget will cover depreciation? Morell said yes, depreciation is a line item in both funds, used to build a cash balance. Regarding the Uptown Sewer System, Morell said the Committee is proposing to remove Public Works staff expenditures temporarily, otherwise the System is operating at a loss and fees would need to increase 40%. This moves $10,000 out of the budget. The user fee may increase 18%, with other fees remaining the same. Morell said they will have a better understanding where the Uptown usage fee will be at the Truth in Taxation hearing in December. Morell said staff will consult with the city’s financial planner or auditor if the depreciation costs are adequate, to make improvements for next year. Morell said these are first glance numbers. The budget will come back next month with another round of numbers. SET SPECIAL MEETING DATE TO CANVASS RESULTS OF THE NOVEMBER 5, 2024 GENERAL ELECTION State law requires that the City Council meet as the Board of Canvass to certify the municipal election results following the general election held on November 5, 2024. The Council set the date to meet as the Board of Canvass for November 12, 2024 at 3:00 p.m. ADJOURNMENT Kronmiller, second by Lubke, moved to adjourn the meeting. Motion carried 3-0. The meeting adjourned at 7:21 p.m. Respectfully submitted, Brenda Eklund City Clerk