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06.a1 Draft minutes 08-19-2025 Meeting August 19, 2025 A regular meeting of the Scandia City Council was held on the above date in the Council Chambers. The meeting was conducted in-person and over an electronic platform. All participants who joined the meeting remotely could hear each other and contribute to discussions. Mayor Steve Kronmiller called the meeting to order at 7:00 p.m. Following the Pledge of Allegiance, roll call was taken. The following were in attendance: Council members Jerry Cusick, Jim Gribble, Kirsten Libby, Mike Lubke, and Mayor Steve Kronmiller. Staff present: City Administrator Kyle Morell, City Attorney Amanda Johnson, Planner Jeff Matzke, City Engineer Isiah Bubany, Public Works Director Charles Fischer, and City Clerk Brenda Eklund. APPROVAL OF AGENDA Cusick, seconded by Gribble, moved to approve the agenda as presented. Motion carried 5- 0. LAW ENFORCEMENT REPORT Deputy Booth was absent. The July police report was in the meeting packet. PUBLIC FORUM Sandra Whitney, 199th Street, stated that she has budget concerns and decisions are being made beyond what the city can afford and the effects this has to property taxes. Whitney said she encourages the Council to not make financial commitments until you have a budget. Look how accumulatively taxes have gone up over the years. Whitney said it’s getting very expensive to live in Scandia. CONSENT AGENDA The following Consent Agenda was presented: a) Minutes 1) July 15, 2025 Regular Meeting 2) August 6, 2025 Work Session b) Treasurer’s Report c) Payment of Vouchers d) Approve Off-Premises Liquor License Taco Daze Beer Tent – Meisters (September 6, 2025) e) Approve Special Event Permit for Taco Daze, Meisters Bar & Grill (September 6, 2025) f) Approval of Quote for City Hall Server Replacement for $9,950 – Rolltex Computers Lubke, seconded by Libby, moved to approve the Consent Agenda as presented. Motion carried 5-0. PUBLIC HEARINGS Big Marine Lake Liquor Store License Violation. Resolution No. 08-19-25-01 Imposing Suspension and Civil Penalties on Big Marine Lake Liquor Store for Liquor License Violation Scandia City Council August 19, 2025 Page 2 of 9 Clerk Eklund described the liquor license violation which occurred at Big Marine Lake Liquor Store on December 28, 2023 when an employee made a sale to an underage person during a County Sheriff’s compliance check. The employee plead guilty to the charge on June 24, 2025. The City’s ordinance provides that a hearing be held to impose a penalty and fine to the business. Owner Pat Reicherts was notified of the hearing date on July 11, 2025. A resolution was prepared with conditions to impose a license suspension of 3 consecutive days and a $1,000 fine for a second violation within a 3-year period. A prior violation occurred on June 18, 2021. Mr. Reicherts notified staff that he would not be in attendance and would suspend liquor sales at the store on January 25-27, 2026. Council member Gribble said it seems odd that the business can select the suspension dates. Mayor Kronmiller stated that has been the past practice of the City Council, to work with the business owner. Council member Libby said this is not unusual for the owner to pick the dates. The owner is paying a fine, the employee has fines, and the city is trying not to put a penalty on a penalty. Libby said this is commonly done in other cities, giving St. Paul as an example. Mayor Kronmiller opened the public hearing at 7:10 p.m. Peter Whitney, 199th Street. Said he agrees with Council member Gribble. Having the owner pick dates for suspension is ridiculous; a crime was committed and this seems like a non- consequence for the violation and is no harm to the business owner to close during a slow time of the year. Council member Gribble stated that he would like to see a standardized time for suspension dates, such as the month following the hearing on set days of the week. There were no further comments and Mayor Kronmiller closed the hearing. Kronmiller, seconded by Cusick, moved to adopt Resolution No. 08-19-25-01, Imposing Suspension and Civil Penalties on Big Marine Lake Liquor Store, with suspension dates of January 25-27, 2026. Motion carried 5-0. Ordinance No. 2025-12, Amending the City’s Code of Ordinances Chapter 30.04, Order of Business City Administrator Morell introduced an ordinance amendment as discussed at the July 15th Council meeting. The order of business currently used for agendas does not match the language outlined in City Code for regular Council meetings. The amendment will add the law enforcement report and reorder general business to follow public hearings. Mayor Kronmiller opened the public hearing at 7:14 p.m. There were no speakers and the hearing was closed. Lubke, seconded by Gribble, moved to adopt Ordinance No. 2025-12, Amending Scandia City Code, Chapter 30.04, Order of Business. Motion carried 5-0. Scandia City Council August 19, 2025 Page 3 of 9 PARK & RECREATION COMMITTEE Park & Recreation Committee Chair Terry Gorham reported that the Committee assisted with the Community Fun Day Storyboard Contest on August 13th. Registrations for the Taco Daze Pickleball Tournament, being held on September 6th, filled in three days. Letter of Request for Planning and Development of a Disc Golf Course at Big Marine Park Reserve PRC Chair Gorham presented a letter related to the Committee’s interest in disc golf. Gorham asked for approval to send the letter to encourage disc golf at the expanded Big Marine Park Reserve. Gribble, seconded by Lubke, moved to approve the letter be sent to Washington County Parks. Motion carried 5-0. PLANNING COMMISSION Conditional Use Permit for an essential services utility substation at 18180 Manning Trail North. Northern Natural Gas Company, Applicant. Resolution No. 08-19-25-02 Approving Conditional Use Permit Bolton & Menk Planner Jeff Matzke announced that he is subbing for City Planner TJ Hofer this evening. The application for a Conditional Use Permit to develop a 3.26-acre parcel along 180th Street with a utility substation was reviewed by the Planning Commission at their meetings on July 1st and August 5th. The Commission reviewed a revised landscape plan at the August meeting based on comments for additional screening. Matzke explained that wetland setbacks on the east side are met as is impervious surface coverage under 25%. A stormwater pond will be constructed in the northeast corner, and a security fence will surround the equipment, with a portion of the fence having slats for screening. An underground pipe area was noted on a diagram as an area that cannot support vegetation, being most troublesome in the southeast corner of the property. The plan showed additional trees added around the stormwater pond based on the Commission’s recommendation to submit a landscape plan to completely block the view from adjacent east and south property lines. Matzke concluded with explaining the Planning Commission’s recommendation of approval of the CUP with findings and conditions prepared in a resolution. Administrator Morell clarified the fencing proposal. The development code restricts fences in front yards to six feet. The applicant proposes a 6’ black vinyl fence topped with one foot, three inches of barbed wire for security purposes. This height would require a variance from the standard. Because this language applies to residential houses, not industrial property, Morell said the city could consider amending the code. Until this is worked out, a condition is in the resolution that no fence is approved with the CUP. Administrator Morell stated that the neighbor is requesting additional screening on the east side. The Watershed has no restrictions on screening, but the applicants have determined there is not sufficient room on the east side due to underground piping, and would pay into the city’s tree fund if unable to meet tree replacement requirements. Scandia City Council August 19, 2025 Page 4 of 9 Steven Martinez, applicant with Northern Natural Gas: Martinez explained that they have extended the screening but need to keep the underground pipelines clear. Vegetation has been added on the south side and to the east to the extent possible. There needs to be enough clearance for the trees to be separated from the fence for security. Council member Lubke suggested adding slated fencing along the west side. Martinez agreed this is possible. Leon Kushlan, Ham Lake. Stated he owns property directly to the east of this site. Said he has concerns of landscaping and advocates for as much screening as possible. The utility should plant conifers for year around screening. Said the screening looks scant now. Said the Watershed has no problem with vegetation being within the 75’ wetland setback. Asked the Council to take a hard look at this and work with Northern Natural Gas to have a good outcome on the site and not be an eyesore. Steven Martinez said he understands the neighbor’s concern. However, the Planning Commission pushed for a variety of deciduous trees to be added. Martinez said they made a landscaping plan to fit naturally into the area based on the Commission’s direction at the July meeting, and have adjusted the plan quite a bit to address neighbor concerns but cannot address all concerns without impacting the operation of the pipeline. Martinez said they are proposing full grown trees, 10 to 20 feet in height; the screening effect will be immediate. Gribble, seconded by Lubke, moved to adopt Resolution No. 08-19-25-02, Approving a Conditional Use Permit at 18180 Manning Trail with additional conditions that screening be fully established within 12 months and fence slats are added to the western fencing. Motion carried 5-0. Amendments to the Unified Development Code regarding Exterior Storage of Vehicles. Ordinance No. 2025-13; Resolution No. 08-19-25-03 Findings of Fact; Resolution No. 08-19- 25-04 Summary Publication The Planning Commission held a public hearing on amendments for exterior storage regulations at their meeting on August 5th. City Administrator Morell reported on the long discussion the Planning Commission engaged in to recommend approval of draft Ordinance No. 2025-13. The Planner’s staff report listed a summary of the Commission’s recommended changes to the ordinance regulating the exterior storage of vehicles: 1. Grammatical corrections throughout the document. 2. The dates that exempt boat docks and boat lifts from being counted in the maximum number of LRV and RCV shall remain, and boats shall be removed. 3. Smaller watercraft and recreational equipment such as paddleboards, paddleboats, canoes, and kayaks shall not be counted as LRV and a definition shall be added to clarify the allowance. 4. Each property in the City shall be allowed one boat that does not count towards the total number of LRV or RCV on a property. 5. The allowance for storage in the front yard due to physical conditions shall be included. (The allowance for storage in the front yard is no longer necessary as storage in the front yard is allowed provided setbacks are met.) 6. The number of RCV and LRV allowed shall be reduced and the table shall be combined. 7. A maximum of one RCV shall be allowed. Scandia City Council August 19, 2025 Page 5 of 9 8. Exterior storage shall meet the structure setbacks established in Section 153.200 for the relevant zoning district. 9. Exterior storage shall be allowed on pervious surfaces. 10. Exterior storage shall be allowed on vacant lots that are contiguous parcels or noncontiguous parcels, only when such a lack of contiguity is due to the presence of a dedicated public right-of-way, that are under the same ownership on which a principal structure is constructed. 11. Exterior storage shall be allowed on controlled access lots. Staff incorporated the recommendations into draft Ordinance No. 2025-13. Administrator Morell noted the table in the new ordinance which regulates allowed storage on parcels less than 0.5 acres (one LRV or RCV allowed), parcels 0.51 to 1 acre (two LRV and/or RCV allowed), and on parcels 1.0 acre and greater (three LRV and/or RCV allowed). All properties are allowed one boat that does not count towards exterior storage. Morell said that from an enforcement perspective, this may be a concern - what if they want something else exempt when they do not own a boat? The ordinance contains language that exterior storage of items which are fully screened from public streets and adjacent properties is not considered as exterior storage. Mayor Kronmiller recommended to strike the sentence that each property in the City shall be allowed one boat that does not count towards the total number of LRV or RCV on a property, and increase the numbers of LRV and RCV in the table by one. This allows parcels less than 0.5 acres to have two items stored on the property. Kronmiller, seconded by Cusick, moved to adopt Ordinance No. 2025-13 with amendments to strike language allowing each property to have one boat not considered as exterior storage and increase the numbers in Table 153.400.090-1 by one. Motion carried 5-0. Kronmiller, seconded by Cusick, moved to adopt Resolution No. 08-19-25-03, Findings of Fact and Resolution No. 08-19-25-04, Summary Publication. Motion carried 5-0. ECONOMIC DEVELOPMENT AUTHORITY Administrator Morell reported on the EDA’s meeting held on July 22nd. The Board discussed the sale of merchandise, how to welcome new residents to the community, and started a discussion on housing. The next meeting of the EDA will be on August 26, 2025. SCANDIA INTERNET ACTION COMMITTEE The Internet Action Committee met on July 17th. Administrator Morell reported that they continued planning for Community Fun Day held on August 13th, how to reach those homes that are eligible for Midco service, and Midco’s project for next summer. TOURISM COMMITTEE The Tourism Committee did not meet in July. BUILDING OFFICIAL The July building activity report was in the meeting packet. In July, 24 building permits were issued at a valuation of $1,195,629.28. Scandia City Council August 19, 2025 Page 6 of 9 FIRE DEPARTMENT Fire Chief Hinz was absent. Last month the department responded to 26 calls; 11 fire related and 15 medicals. CITY PLANNER Draft UDC Amendment for Dynamic Display Signs Administrator Morell presented draft language for amendments to the development code which would allow for dynamic sign displays in the city which are currently prohibited. The City Council directed staff to prepare a draft ordinance in response to a request from Federated Coop at their July 15th meeting. The dynamic display signs would be allowed in business and village zoning districts, a maximum of 24 square feet in size, cannot be animated signs, have controlled hours of operation, have auto dimming devices, and not allowed as window signs. Libby, seconded by Cusick, moved to send the ordinance amendments to the Planning Commission for a public hearing at the next possible meeting. Motion carried 5-0. Draft UDC Amendment for Mezzobusinesses and Microbusinesses Administrator Morell explained that staff have had inquires to develop property at the Highway 95/97 intersection with a mezzo or micro cannabis business. These licenses allow for cultivation, manufacture and sales of cannabis products. Staff noted that clarification of the city’s standards would be helpful for aspects of these businesses, and to clarify where cultivation can be allowed. A draft UDC amendment was prepared for discussion. The Council concluded that state law oversees regulations and licensing to the extent possible and had no concerns of amending the city’s existing ordinance. CITY ENGINEER Engineer Bubany reported that he is working on final closeout documents for the 2025 street project. 2025 Street Improvement Project - Contractor’s Request for Payment No. 3 Engineer Bubany recommended the Council approve the Contractor’s Request for Payment No. 2 and pay $158,189.94 to Valley Paving, Inc. This amount includes work required to patch bituminous base, clean pipe culverts, and pave bituminous wear. This request includes withholding 5% retainage. Gribble, seconded by Lubke, moved to approve the Contractor’s Request for Payment No. 3 and pay $158,189.94 to Valley Paving, Inc. Motion carried 5-0. 2026 Street Improvement Project (197th Street) – Request to Authorize Preparation of Plans and Specifications Engineer Bubany presented the project scope for 197th Street improvements proposed for 2026: • Reconstructing the road to a minimum width of 14 ft. • Constructing a retaining wall along the bluff that will allow the roadway to shift East. • Adding a guardrail along the East side of the road for safety. • Adding storm sewer pipe and structures as needed to effectively drain and treat water. Scandia City Council August 19, 2025 Page 7 of 9 Bubany explained that the improvements will conform the road to the city’s recently adopted driveway standards. Bubany provided example photos of similar road work in Hudson. The City budgeted a total of $870,000.00 for this project. This project required a topographical survey, soil boring collection, and wetland delineations which have already been completed. A timeline was presented with approval of plans and specifications and to authorize an ad for bids proposed for the Council meeting on January 20, 2026. Administrator Morell explained the Fire Chief’s concern of this roadway and the ability for emergency service vehicles to service these properties along the river. The seasonal residences are becoming more year-round, and the road characteristics are not up to the city’s standards for safety. Morell noted that the Council approved survey work to be completed this summer in order to have the initial information on the project scope. If the Council authorizes the project, the engineer will prepare plans; if not they will look at another project for 2026. Mayor Kronmiller said this is a rural and rustic area, and proposed to move forward with road improvements. Council member Gribble asked if there can be any halfway improvements? Engineer Bubany said perhaps, if the city is not concerned with meeting driveway standards. The width doesn’t meet standards and there is a significant drop off where a guardrail is needed for safety. Mayor Kronmiller suggested a future public meeting for more discussion with residents to put together a plan that makes sense for the community. Council member Libby recommended they have conversations with the people who live there, then choose whether or not to go forward. Libby asked how much money has already been spent? Engineer Bubany estimated the costs have been around $27,500 and could be additional for any public meetings. Administrator Morell said that if the Council holds a discussion in September, there is time to stay on schedule for approval of plans by January 2026. Council member Gribble asked how long the project would take. Engineer Bubany estimated construction may last approximately a month, with traffic control allowing access for the residents. Council member Lubke said this is a lot of money for a project that serves a few homes, some being seasonal. Mayor Kronmiller noted that the seasonal cabins can be occupied throughout the year. Council member Gribble said the owners may appreciate that it’s a rustic road and may be opposed to the improvements. Mayor Kronmiller noted that the standards were adopted with the understanding that driveways are updated with new construction or significant improvements to a property, and perhaps this project is not needed at this time. Scandia City Council August 19, 2025 Page 8 of 9 Council member Libby said the residents should understand the risks of having limited emergency access as well. Administrator Morell explained that this road project was looked at because the city set the standard; if the city cannot be held to these standards, how can it expect residents to be held to them. Gribble, seconded by Lubke, moved to delay authorization of plans and to have a public meeting with residents served by 197th Street. Motion carried 5-0. DIRECTOR OF PUBLIC WORKS Public Works Director Fischer reported on department activities. Staff is working with Xcel Energy to have a power source installed in the Community Center parking lot in time for Taco Daze on September 6th. CITY ATTORNEY Update Regarding the MPCA Clean Water Partnership Loan for Community Septic Systems Attorney Johnson provided research based on additional information from the DNR on the Clean Water Partnership Loan program which could pay for required improvements to the Tii Gavo community septic system. In order for the City to partner with Tii Gavo, every single property owner in Tii Gavo would need to sign an assessment waiver with the City, allowing assessment of the loan amount plus legal and administrative costs back to the properties. Attorney Johnson proposed that the legal and administrative costs be fixed costs for each property to be assessed a flat rate in addition to the loan amount. The Tii Gavo HOA has some money in reserves that could be used for a down-payment on the legal costs to start the groundwork for the loan program. Council was in consensus to move forward with a meeting with the Tii Gavo residents to explain the assessment waiver and get a general consensus that the property owners will cooperate. Council approved using a flat rate for legal and administrative costs and to collect a down- payment from the Tii Gavo HOA. City Ownership and Scope of Authority over City Roads and Right of Way Attorney Johnson provided a legal memo discussing the City’s ownership of and authority over City roads and right-of-way. Johnson explained the types of roads and the city’s authority over them. The City has an existing Right of Way Maintenance Policy which specifically addresses reshaping ditches, mowing, culvert repairs, snow removal, and tree removal and trimming. Attorney Johnson recommended that the City consider adopting an ordinance to officially recognize the City’s legal authority. This ordinance could be helpful for Public Works to provide to residents when asked about the City’s authority. Peter Whitney, 199th Street addressed the Council to explain that the city has a drainage tunnel under the road which extends onto his property. With the city mowing the right-of-way, there are broken pieces in his yard and the infrastructure remains unrepaired. Whitney asked what portion Scandia City Council August 19, 2025 Page 9 of 9 is his to maintain versus what the city should be maintaining. Administrator Morell said staff will meet on site with him and discuss what repairs are needed. Mayor Kronmiller said it will be good to get the policy clarified. Council member Libby asked how do we know the type of each roadway, whether platted, dedicated, or prescriptive? Administrator Morell suggested staff be directed to create a map using the GIS software. Public Works Director Fischer said this will be difficult to create; some roads are platted, but some lot lines go to the center of road. Preparing a map showing the allowed right-of-way based on state law and what is reasonable to maintain could be more easily prepared. Administrator Morell said that this will be brought back to a future meeting once staff has the information being asked for. General Information about Council Meetings Attorney Johnson presented an informational memo on Council meetings and explained the different types of Council meetings with recommendations about efficiencies the Council could choose to incorporate into their meetings. The memo clarified that work sessions are meant to discuss topics that should to be brought to the Council’s regular meeting for official action, and not for the purpose of making formal decisions or votes. Johnson provided recommendations for shorter meetings. Staff reports that do not need formal action can be on consent agendas, and the Council can move to continue an item to the next meeting when discussion gets lengthy. Mayor Kronmiller said that in some instances, the Council would like to be able to take certain actions at a work session. The agenda and staff report can make clear that a motion will be recommended and action taken. Council member Libby suggested they carve out 20 minutes to close a work session and open a meeting to take a vote. Administrator Morell said that the agenda can add language that a special meeting will be held to vote on an item. In summary, it was explained that in able to vote at a work session, staff will evaluate the agenda and direct the Council to call a special meeting to vote. Council agreed that pay requests and staff reports not needing action can be moved to the consent agenda. Any consent agenda item can be pulled off for discussion if needed. CITY ADMINISTRATOR City Administrator Morell provided a written report. There were no questions. ADJOURNMENT Kronmiller, seconded by Lubke, moved to adjourn the meeting. Motion carried 5-0. The meeting adjourned at 9:49 p.m. Respectfully submitted, Brenda Eklund City Clerk