10.b. Doran O'Brien Sewer Backup Concerns Staff Report
Date of Meeting: November 19, 2024
For: Honorable Mayor and Council
From: Kyle Morell, City Administrator
Subject: Doran O’Brien Sewer Back-up Concerns
Background:
Wayne Schmitt once owned the Edward Jones and Scandia Mall buildings. In 2010, he applied for
and received a variance to redevelop the Edward Jones building. I have attached the variance packet
found in the property’s records. The variance approval for the building's development came with the
condition that the applicant shall “hook up to the wastewater system at his own expense.” This can
be found on page 5 of that document or page 3, condition 8 of the variance. While going through
the variance process, Mr. Schmitt submitted a building permit application with plans for the
improvement of the Edward Jones building. That permit and plan set are attached. Page 12 of the
plan set contains the plumbing plans for the building. The plans clearly state the sewer is to be
connected “to sewer system outside Schmitt Mall.” According to an email from Doran on
November 13, 2024, also attached, Mr. Schmitt recalls the City saying they would not hook his
building up to the Uptown System because it would cost too much money. Instead, a verbal
agreement was made to hook up to the tank behind the mall. The City has not been able to find any
record that would support Mr. Schmitt’s claim. The only record I can find of a discussion about the
building hooking up to the sewer system is from the approved variance on the pages referenced
above and on page 25 of the variance report, which shows the TKDA staff report for the variance
application. Doran rented from Mr. Schmitt from 2010 until he purchased the building in 2014.
Public Works Director Fischer has provided the attached memo detailing the events of Monday,
August 5, 2024, that resulted from a sewer backup report at 21084 Olinda Trail N, the Edward Jones
building owned by Doran O’Brien. The City filed a claim with The League of Minnesota Cities
Insurance Trust, the City’s insurance company, on Wednesday, August 7, 2024, in response to the
damage done by the backup and the building owners' insistence the City was at fault.
The League denied Doran’s claim due to the definition found within City Code Section 50.03.
This definition states that parts of the Uptown system that reside within individual parcel boundaries
are considered private and, thus, the property owner's responsibility. Our code defines the public
portion of the system as follows.
Due to Mr. Schmitt once owning both the Edward Jones and Scandia Mall buildings, they share a
sewer connection. The Edward Jones building’s sewer drains into the tanks for the Scandia Mall,
which then drains into the City sewer line under Olinda. By his own admission, Doran was unaware
of this connection until the backup occurred. Mr. Schmitt did not disclose this connection at the
time of the sale.
I spoke with the claims adjuster at The League about the claim. I shared with him my concerns over
the definition of the public portion of the system, which states any part of the system that serves
more than one user is owned and operated by the City. This could apply to the Scandia Mall and
Edward Jones connection, as the lines serve two users. An attorney at The League agreed, and they
covered Doran’s claim. He was issued a check to cover his damages, and the City paid their $1,000
deductible.
Issue:
Doran believes his connection to the City sewer should not go through the Scandia Mall. He is
concerned about his lack of control over future backups with a shared service line and is seeking an
alternative connection.
Discussion:
Charlie and I met with Doran at this office on October 30, 2024, to discuss the backup. We
acknowledged that his connection to the system is unique because businesses on two properties
were connected to the same line, leaving him vulnerable to a backup caused by another user.
Typically, each business would have a separate connection to the main sewer line. We discussed
changing his connection point from the Scandia Mall tanks to a connection directly into the City's
main sewer line. This would require the installation of tanks on this property, which I am not sure
he has room for. Any rerouting of this service line would be completed at this expense. Doran also
asked about getting off the Uptown system. City Code Chapter 50 outlines the rules and regulations
of the Uptown system. It does not cite a policy or procedure for a user to leave the system. This
begs the question, should a user be allowed to leave the system, and if so, under what
circumstances?
The Uptown system struggles to cash flow with its limited number of users now; allowing users to
leave the system would be difficult, as it would mean increased costs to the remaining users.
Financial considerations aside, if the City allowed a user to leave, that user would need to have a
viable and approved alternative for their wastewater. This would mean an approved septic plan
from Washington County. Staff is looking for guidance from the City on this topic.
Doran will be at the Council meeting to discuss this matter with the Council.
Attachments:
Edward Jones Building Sewer Backup
LMCIT Acknowledgement of Clain – August 8, 2024
Wayne Schmidt Variance for Edward Jones Building 2010
Building Addition Plans 2010
Email chain from Doran O’Brien, lasted email Wednesday, November 13, 2024
Scandia, City of
14727 209th Street
Scandia MN 55073-8503
Re:Our Claim Number:LMC GL 000000375480
LMCIT Member:Scandia, City of
Claimant Name(s):Doran O'Brien
Occurence/Date of Loss:August 5, 2024
Claim Description:Sewer backup into claimant's business.
August 8, 2024
ACKNOWLEDGEMENT OF CLAIM
The League of Minnesota Cities Insurance Trust claims office has received the above captioned claim.
The assigned claim supervisor and adjuster are listed below. The adjuster is your key contact on this
claim.
If you have any questions, please contact the adjuster or supervisor assigned to this claim.
Sincerely, LMCIT Claims Department
Adjuster:Derek Krause
Phone No.:(651) 215-4078
Fax No.:(651) 281-1297
Email:dkrause@lmc.org
Supervisor:Matthew Hanley
Phone No.:(651) 215-4096
Fax No.:(651) 281-1297
Email:mhanley@lmc.org
CC: Security State Agency
Po Box 190
Scandia Minnesota 55073-0190
August 8, 2024
ACKNOWLEDGEMENT OF CLAIM
Security State Agency
Po Box 190
Scandia Minnesota 55073-0190
Scandia, City of
14727 209th Street
Scandia MN 55073-8503
Re:Our Claim Number:LMC GL 000000375480
LMCIT Member:Scandia, City of
Claimant Name(s):Doran O'Brien
Occurence/Date of Loss:August 5, 2024
Claim Description:Sewer backup into claimant's business.
The League of Minnesota Cities Insurance Trust claims office has received the above captioned claim.
The assigned claim supervisor and adjuster are listed below. The adjuster is your key contact on this
claim.
If you have any questions, please contact the adjuster or supervisor assigned to this claim.
Sincerely, LMCIT Claims Department
Adjuster:Derek Krause
Phone No.:(651) 215-4078
Fax No.:(651) 281-1297
Email:dkrause@lmc.org
Supervisor:Matthew Hanley
Phone No.:(651) 215-4096
Fax No.:(651) 281-1297
Email:mhanley@lmc.org
CC: Security State Agency
Po Box 190
Scandia Minnesota 55073-0190
1
Kyle Morell
From:Doran O'Brien <doranobrien@hotmail.com>
Sent:Wednesday, November 13, 2024 12:18 PM
To:Kyle Morell
Subject:Re: Septic Information
It was discussed at the council meeting in Dec 2017 because I brought it up with the city months prior. I caught the error,
not the city. One item I’m curious about is disconnecting from the mall’s tank. Since I’m technically not on the city
system, what needs to happen if I decide to have my own septic? I look forward to hearing what the council has to say.
Sláinte! Doran
On Nov 13, 2024, at 11:39 AM, Kyle Morell <k.morell@ci.scandia.mn.us> wrote:
Doran,
I found the original building permit application and plans for Wayne's 2010 addition to your building.
They are attached as “Building Addition Plans 2010.” Page 12 shows the plumbing plan, which shows the
sewer line leaving the building and directed to the sewer outside Schmitt Mall. I have not been able to
locate any additional information about this project or a record of any discussion between Wayne and
the City about the sewer.
I have also attached the full variance approval packet recorded in 2010. Condition 8 on page 5 shows
that the applicant, Wayne, was required to hook up the building to the wastewater system at his own
expense. The attachment further discusses wastewater treatment for the building on page 25.
I've shared the minutes from the December 2017 Council meeting you attended with Milo. The minutes
do not state that you made any comment about the billing rate at the meeting. I am not disputing your
claim; I am simply stating that the minutes did not record your statement.
I will begin putting together the Staff Report for the Council this afternoon. Once completed, I will share
it with you. Feel free to comment on it as you see fit.
Kyle H. Morell
City Administrator
City of Scandia
14727 209th Street North
Scandia, MN 55073
Phone: 651.433.2274 Fax: 651-433-5112
Cell: 651.245.2654
Web: www.cityofscandia.com
Email: k.morell@ci.scandia.mn.us
<image001.jpg>
From: Doran O'Brien <doranobrien@hotmail.com>
Sent: Wednesday, November 13, 2024 8:50 AM
To: Kyle Morell <k.morell@ci.scandia.mn.us>
Subject: Re: Septic Information
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I spoke with the previous owner of the strip mall; he told me that the city would not hook up
the building directly to the line in the street because it would cost the city too much money to
do so. Instead, they had a verbal agreement to hook up to the tank behind the mall. You
mentioned looking for any type of written agreement to do so in the archives, but I haven't
heard back from you if anything has been discovered. My goal is to meet with Milo to have any
other items he would like discussed at the meeting. In regards to the billing error, I attended
the city council meeting in Dec of 2017 because I brought up the billing error with the city
months prior. I'll touch base with you no later than Friday for any additional comments.
Sláinte, Doran
From: Kyle Morell <k.morell@ci.scandia.mn.us>
Sent: Tuesday, November 5, 2024 10:46 AM
To: Doran O'Brien <doranobrien@hotmail.com>; Charles Fischer <c.fischer@ci.scandia.mn.us>
Subject: RE: Septic Information
You can do either, but if you are asking questions of the Council, it might be best to send them in
advance so they can read them before the meeting and have an opportunity to think about a response
or follow-up.
Kyle H. Morell
City Administrator
City of Scandia
14727 209th Street North
Scandia, MN 55073
Phone: 651.433.2274 Fax: 651-433-5112
Cell: 651.245.2654
Web: www.cityofscandia.com
Email: k.morell@ci.scandia.mn.us
<image001.jpg>
From: Doran O'Brien <doranobrien@hotmail.com>
Sent: Tuesday, November 5, 2024 9:59 AM
To: Kyle Morell <k.morell@ci.scandia.mn.us>; Charles Fischer <c.fischer@ci.scandia.mn.us>
Subject: Re: Septic Information
Thank you, sir. Do I submit my questions to you or do I ask them at the meeting? I will be
attending.
From: Kyle Morell <k.morell@ci.scandia.mn.us>
Sent: Monday, November 4, 2024 11:30 AM
To: Doran O'Brien <doranobrien@hotmail.com>; Charles Fischer <c.fischer@ci.scandia.mn.us>
Subject: RE: Septic Information
Doran,
3
I will consider this email as your written request to be on the agenda. I will prepare a staff report for the
Council, sent out the Friday before the meeting. I will include your payment history, the variance
approval from 2010 for the use of the building, and anything else you would like included. You are
welcome to attend the meeting to speak on your behalf.
Kyle H. Morell
City Administrator
City of Scandia
14727 209th Street North
Scandia, MN 55073
Phone: 651.433.2274 Fax: 651-433-5112
Cell: 651.245.2654
Web: www.cityofscandia.com
Email: k.morell@ci.scandia.mn.us
<image001.jpg>
From: Doran O'Brien <doranobrien@hotmail.com>
Sent: Saturday, November 2, 2024 10:28 AM
To: Kyle Morell <k.morell@ci.scandia.mn.us>; Charles Fischer <c.fischer@ci.scandia.mn.us>
Subject: Re: Septic Information
Thank you for the information. I would like this item to be on the agenda for the Nov meeting.
Do I submit this in writing, in person, or both?
Sláinte, Doran
From: Kyle Morell <k.morell@ci.scandia.mn.us>
Sent: Friday, November 1, 2024 4:17 PM
To: Doran O'Brien <doranobrien@hotmail.com>; Charles Fischer <c.fischer@ci.scandia.mn.us>
Subject: RE: Septic Information
Doran,
I spoke with our City Treasurer about your billing history. The change in the Base Rate was a clerical
error. It went unnoticed and unreported until the City changed the rate structure in 2018. We do have
a record of you attending a City Council meeting on December 6, 2017. You and Milo spoke during the
Truth-In-Taxation public hearing for the 2018 budget, stating you supported the new rate structure. I
have attached a copy of the minutes from that meeting. There is no record of a discussion about the
billing error. If you wish to seek reimbursement from the City, you must ask the City Council. Let me
know if you wish to be on the agenda for the November 19 Council meeting.
As for the construction of your sewer, all I can find in the property records for your building is the
attached variance approval, which requires the building to be hooked up to the sewer at the owner's
expense and that the owner pay a connection fee. There is a sewer folder in storage that I will look
through next week to see if we have any additional documentation, but that is all I can find now.
I will follow up with you again next week.
Kyle H. Morell
4
City Administrator
City of Scandia
14727 209th Street North
Scandia, MN 55073
Phone: 651.433.2274 Fax: 651-433-5112
Cell: 651.245.2654
Web: www.cityofscandia.com
Email: k.morell@ci.scandia.mn.us
<image001.jpg>
From: Doran O'Brien <doranobrien@hotmail.com>
Sent: Thursday, October 31, 2024 2:19 PM
To: Charles Fischer <c.fischer@ci.scandia.mn.us>
Cc: Kyle Morell <k.morell@ci.scandia.mn.us>
Subject: Re: Septic Information
Thank you for this information. I'd also like to have one of you two look into how this was
originally allowed to be approved by the city. This would include all documentation of code
adherence, who inspected the building (what was inspected), and who gave final approval.
Please forward all documents to this email address.
Sláinte, Doran
From: Charles Fischer <c.fischer@ci.scandia.mn.us>
Sent: Thursday, October 31, 2024 1:15 PM
To: Doran O'Brien <doranobrien@hotmail.com>
Cc: Kyle Morell <k.morell@ci.scandia.mn.us>
Subject: Septic Information
Hi Doran,
After reviewing your property vs the State and County regulations regarding septic installation on a
property similar to yours at 21084 Olinda Tr N the following associates to your question from our
meeting yesterday ‘What size primary and secondary septic areas are required for the property?’:
1. A property with an existing building and existing water use is considered a developed
property.
2. As a developed property it would not be required to use a Type I system, and it not require a
Type I primary and a secondary septic system location available.
The type, size and area required for a septic system is based on multiple factors that a Licensed
Septic Designer would need to address on your property.
Thank you,
<image002.jpg> Charles Fischer | Public Works Director
City of Scandia
14727 209th Street N, Scandia, MN 55073
P 651.433.5223 | F 651.433.5112
c.fischer@ci.scandia.mn.us
www.cityofscandia.com
5
<Building Addition Plans 2010.pdf>
<Wayne Schmidt Variance for Edward Jones Building 2010.pdf>