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02. Wyldewood Acres Community Septic Discussion1 Staff Report Date of Meeting: March 4, 2026 To: Scandia City Council From: City Administrator Kyle Morell Re: Wyldewood HOA Discussion – Carrie Mitchell Carrie Mitchell, a resident of Wyldewood Acres, spoke during the public forum section of the December 16, 2025, Scandia City Council meeting. She stated she would like to install her own septic system and remove herself from the Wyldewood Acres community system. She asked the City for assistance with her transition. Staff stated they were unsure whether the HOA bylaws and the Development Agreement address a user leaving the system. Council asked staff to look into the matter and report back. The attached emails from the City Attorney, dated May 9 and 12, 2023, and February 29, 2024, address the topic Ms. Mitchell has raised. Beginning with the May 9, 2023, email, the City Attorney states, “each homeowner in the Association is most definitely obligated to financially contribute for maintenance, repair, and replacement of the common septic system”. Also, the Association would need to release property owners from the use of the common septic system. While the emails state that the City would have to approve changes to the Wyldewood Acres Development Agreement, should the HOA approve changes to the community septic system, they do not give the City the authority to remove someone from the community septic system on its own. Only the HOA can approve disconnection from the community septic system. Attachments: Minutes of December 16, 2025, City Council Meeting Email from City Attorney Larson 05 09 2023 Email from City Attorney Larson 05 12 2023 Email from City Attorney Larson 02 29 2024 Wyldewood Acres Development Agreement Wyldewood Acres HOA Bylaws – Unsigned Wyldewood Acres Declaration - Unsigned December 16, 2025 A regular meeting of the Scandia City Council was held on the above date in the City 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 Planner TJ Hofer, City Engineer Isiah Bubany, Police Deputy Jake Anderson, Fire Chief Mike Hinz, Public Works Director Charles Fischer, and City Clerk Brenda Eklund. APPROVAL OF AGENDA Mayor Kronmiller announced the addition of Agenda Item #8.d Discuss Letter to Group Home Provider. Lubke, seconded by Gribble, moved to approve the agenda as amended. Motion carried 5-0. LAW ENFORCEMENT REPORT Deputy Anderson arrived at 8:00 p.m. and reported on calls and statistics over the past month. In November, there were 85 incidents, 43 traffic stops, and 14 tickets issued. Significant events included a search warrant and arrest at a residence near Manning/Mayberry Trail, an arrest of a group home resident, and trespassing into a home on Olinda Trail related to mental health issues. Area schools went into lockdown after a fraudulent fire alarm notice was sent out by a student. The Washington County K-9 team placed 2nd overall in the national competition held this fall. PUBLIC FORUM Carrie Mitchell, 209th Street. Spoke to the Council about her water utility issues for her home built in 2005 in Wyldewood Acres. Mitchell said she would like to install her own private septic system and remove her property from the shared community system which needs to make costly repairs. Mitchell said it is not financially feasible to stay on a shared system and she has an estimate and site plan for a private septic system. Mitchell asked the city to assist with communications to the Homeowners Association for a transition to a more cost-effective solution. Administrator Morell said he is unsure what the development agreement and HOA bylaws say about a property leaving the community septic, but will review and report back to the Council at a future meeting to understand what the city role will be. There were no other public comments. CONSENT AGENDA The following Consent Agenda was presented: a) Minutes 1) November 18, 2025 Regular Meeting Scandia City Council December 16, 2025 Page 2 of 7 2) December 3, 2025 Work Session 3) December 10, 2025 Special Meeting b) Treasurer’s Report c) Payment of Vouchers d) Approve 2026 Tobacco License Renewals: Sam Tobacco LLC dba Scandia Tobacco, Big Marine Lake Store, Big Marine Lake Liquor Store e) Approve 2026 Liquor License Renewal: Big Marine Lake Liquor Store (Off-Sale), The Scandia Creamery (On-Sale/Sunday On-Sale) f) Approve Off-Premises Liquor License for Meisters Bar & Grill for The Minnesotan Cup (January 23-24, 2026) g) Approve 2026 City Council Meeting Schedule h) Adopt Resolution No. 12-16-25-01 – Establishing Employee pay rates for 2026 i) Adopt Resolution No. 12-17-25-02 – Employee Health Plan for 2026 j) Adopt City of Scandia 2026 Fee Schedule Ordinance No. 2025-18 and Summary Publication Resolution No. 12-16-25-03 k) Approve Resolution No. 12-16-25-04 Certifying the 2026 Property Tax Levy l) Approve Variance from a Wetland Setback to replace an existing subsurface sewage treatment system located at 19230 Larkspur Avenue North. Jon Springer, Applicant. Resolution No. 12-16-25-05 m) Adopt Ordinance No. 2025-19 Amendment to the Unified Development Code Section 153.400.030 regarding exterior lighting standards for properties zoned AP, AG-C, RR-G, RR-N, and V-N. Resolution No. 12-16-25-06 Findings of Fact; Resolution No. 12-16-25- 07 Summary Publication n) Accept Donation from the St. Croix Horse & Carriage Club – Resolution No. 12-16-25- 08 o) Approve Jabas Tai Chi Program Agreement p) City Engineer – Engineering Updates Report q) Adopt the 2026 City Budget r) Approve Letter of Support for the Scandia Elementary PTO Lubke, seconded by Libby, moved to approve the Consent Agenda as presented. Motion carried 5-0. PUBLIC HEARING: NEW ON-SALE-SUNDAY ON-SALE INTOXICATING LIQUOR LICENSE FOR THE OZARK TAVERN, 21050 OZARK COURT NORTH. APPLICANT MELISSA BLOOM BITKER City Clerk Eklund described a new liquor license application from Melissa Bloom Bitker to take over operations of the business The Ozark Tavern at 21050 Ozark Court North. Ms. Bitker addressed the Council and explained that she is taking over operations of The Ozark Tavern to continue it as a restaurant and bar. Mayor Kronmiller opened the public hearing at 7:11 p.m. Tony Bitker said he will be working together with Melissa and appreciates the warm welcome they’ve had and he looks forward to being in Scandia. Scandia City Council December 16, 2025 Page 3 of 7 There were no other speakers and the hearing was closed. Lubke, seconded by Libby, moved to approve a New On-Sale-Sunday On-Sale Intoxicating Liquor License for The Ozark Tavern, 21050 Ozark Court North to Applicant Melissa Bloom Bitker. Motion carried 5-0. MNDNR GATEWAY TRAIL PROJECT - BID RESULTS Engineer Bubany presented bid results and a recommendation of the Gateway Trail Project award to the lowest bidder, Peterson Companies in the amount of $3,624,814.97. Contractor Schedule 1 Schedule 2 Schedule 1 + 2 Peterson Companies, Inc. $2,549,949.21 $1,074,865.76 $3,624,814.97 Ashwill Companies $2,657,565.26 $1,030,964.38 $3,688,529.63 Veit & Company, Inc. $2,621,031.72 $1,075,665.37 $3,696,697.09 D&D Contracting, LLC $2,621,551.47 $1,186,878.40 $3,808,429.87 Rachel Contracting, LLC $2,844,150.30 $1,228,439.70 $4,072,590.00 Dresel Contracting, Inc. $2,765,121.07 $1,323,271.86 $4,088,392.93 Valley Paving, Inc. $2,939,909.17 $1,231,483.05 $4,171,392.22 Northwest Asphalt, Inc. $2,975,208.15 $1,545,988.20 $4,521,196.35 Urban Companies, LLC $3,886,432.82 $1,667,841.44 $5,554,274.26 Engineer Bubany stated that a public listening session was held last week which answered questions and addressed concerns. Bubany explained the project funding. Some LCCMR funds have been used towards engineering to date. Total funding remaining for the project is $3,865,800. The total cost remaining, including construction administration/inspection/testing is $3,809,355. Bubany described the timeline to begin construction in May 2026, with tree clearing taking place in January to March 2026. Administrator Morell stated that cooperative agreements with the DNR and Washington County will be presented to the Council at a future meeting. Council member Libby stated that there has been a lot of overwhelming support for the trail. Libby, seconded by Lubke, moved to award the MNDNR Gateway Trail Project to low bidder Peterson Companies in the amount of $3,624,814.97. Motion carried 5-0. RESOLUTION NO. 12-16-25-09 – MPCA CLEAN WATER LOAN PROMISSORY NOTE Administrator Morell explained that as part of the MPCA Clean Water Loan requirements for the Tii Gavo Septic System Project, the city as the loan sponsor must pledge a general obligation promissory note to evidence and secure the MPCA loan. A resolution was prepared stating the city has the intention to do so. Morell stated that legal staff have filed 35 assessments to the properties with the County to pay for the project. The city will begin to collect payments in 2026 and end in 2034. These funds will go to repaying the $1,175,000 loan in the years 2029 to 2035. Morell said the promissory note does not count against the city’s debt limit. Scandia City Council December 16, 2025 Page 4 of 7 Lubke, seconded by Gribble, moved to adopt Resolution No. 12-16-25-09 Approving and Authorizing the Execution of a Minnesota Clean Water Partnership Loan Agreement, the Issuance of a General Obligation Promissory Note, and Other Actions Related Thereto. Motion carried 5-0. DISCUSS MN MAYORS LETTER TO STATE GOVERNMENT REPRESENTATIVES Mayor Kronmiller introduced a draft letter he was emailed asking whether or not he would endorse a statement from Minnesota mayors to state representatives and the governor expressing concern and frustration about the fiscal direction of the state. Kronmiller said he agrees with the statements in the letter but concerned that the letter seems political and the city should remain nonpartisan. Council member Gribble said he agrees with the findings that state mandates which pass costs onto residents are wrong. Council member Libby said that they work hard to keep the city’s levy even with the rate of inflation, while watching the county, school, state, and watersheds pile on more costs to the taxpayers. Libby said having the mayors coming together on this statement is a good idea; the letter contains verified facts. Libby said Scandia does as little as possible to impact taxes, and noted that the League of MN Cities also advocates for us at the legislative level. Council member Gribble said it gets to the bottom line - they need to send a message because it’s not okay to have these increases in state spending. Council members Lubke and Cusick said the letter is okay to send. Cusick, seconded by Gribble, moved to support the Mayor’s signature on the letter. Motion carried 5-0. DISCUSS LETTER TO OLAND AVENUE GROUP HOME Administrator Morell introduced a draft letter to address the issues identified by Deputy Anderson at the November 18th Council meeting regarding excessive calls from the group home on Oland Avenue. Morell compiled a report similar to one in provided to the same group home operator in 2023 for a different group home location. The report showed that since March 1 st, 71 calls were made for police, fire and ambulance services and the portion of the budget the calls consume. The letter requests a meeting with the operator and public service staff to work on fixing the issues. Morell said he was looking for any feedback from the Council before sending the letter. Mayor Kronmiller recommended inviting the County licensing staff. Council member Gribble asked if the city can charge for excessive calls. Administrator Morell said the city does have statutory authority to bill for police and fire calls. Fire Chief Hinz said this was discussed years ago but not pursued so as not to dissuade residents from calling for assistance. Scandia City Council December 16, 2025 Page 5 of 7 Lubke, seconded by Gribble, moved to approve sending the letter to the operator of the Oland Avenue group home, with adding County licensing staff to the invitation for a meeting. Motion carried 5-0. PARK & RECREATION COMMITTEE Park & Recreation Committee liaison Lubke reported that the committee is finalizing Vinterfest activities. Current Chair Terry Gorham will not be renewing his term on the committee. PLANNING COMMISSION Planner Hofer noted the items from the Planning Commission which were approved on the December consent agenda. Hofer announced that the January 6 th Planning Commission meeting will be cancelled with no applications to review. Commissioner Rynders will not be renewing his term on the Commission upon expiration on February 1, 2026. ECONOMIC DEVELOPMENT AUTHORITY Administrator Morell announced that the EDA will meet this Thursday. The November 25 th meeting minutes were in the packet. SCANDIA INTERNET ACTION COMMITTEE The Internet Action Committee met on November 20th and were given a Midco update on the progress of their 2025 construction projects and on planning for their 2026 project, the Scandia Border 2 Border grant. Midco has recently applied for a line extension grant to provide funding for properties with long driveways. The IAC is going to work with respondents to the infill letter for connection to high-speed that is available for them. The IAC will next meet in March 2026. TOURISM COMMITTEE Tourism Chair Sue Dickens reported on the successful Vinterlights vendor event, saying there was good attendance and sales. The Committee will be sending out a survey to vendors asking for any improvements for next year’s event. The Committee will work on planning for 2026 goals at their next meeting. WASTEWATER COMMITTEE The Wastewater Committee meeting minutes from November 17 th were in the meeting packet. Administrator Morell stated that the Bliss Wastewater Project is in a strong position to receive state funding. The Committee will meet in February to review bids for the project and discuss 2026 user rates. BUILDING OFFICIAL The November building activity report was in the meeting packet. In November, 23 building permits were issued at a valuation of $3,098,962. FIRE DEPARTMENT Fire Chief Hinz reported that last month that the department responded to 27 calls; 8 fire related and 19 medicals. Hinz shared that the department responded to multiple accidents this morning due to icy roads, and provided mutual aid to Forest Lake to assist with the numerous accidents in their town. Scandia City Council December 16, 2025 Page 6 of 7 CITY PLANNER Preparing for 2050 Comprehensive Plan Planner Hofer provided a memo on preparing for the 2050 Comprehensive Plan updates, including Scandia’s system statement and the minimum requirements checklist from the Metropolitan Council. Hofer explained the timeline, with submission of the updated comp plan due to the Met Council by December 2028. Hofer said the plan can be submitted earlier if ready. Planner Hofer said there are a number of factors to consider for its preparation, including what level of community engagement is desired or should the comp plan be strictly an update to meet the minimum requirements. Hofer noted that more involvement increases the cost of the consultant. Administrator Morell stated that a discussion can be held at a Feb/March work session on the topic. At this point there is nothing in the 2026 budget for the 2050 Comp Plan update. Council member Libby said we want to make sure we agree with where the Met Council puts Scandia in their regional plan, and we don’t need to rubber stamp the vision statement as given. Planner Hofer said he can provide an estimate of his firm’s costs to prepare the next comp plan update as they did for the 2040 Plan. Mayor Kronmiller asked him to look at the history of the last Comp Plan their consultant worked on and report back. CITY ENGINEER Bliss Wastewater Project - Request to Approve Plans, Specs, and Authorize Advertisement for Bid Engineer Bubany requested the City Council approve plans for the Bliss Wastewater project and authorize ads for bids, but not to consider an award until funding is secured. The state has said an announcement will be made in December. If so, the city can consider awarding the project at the February 17, 2026 meeting. Administrator Morell said the Wastewater Committee will use the bid results to work the costs into the 2026 sewer budget and rates. Gribble, seconded by Lubke, moved to Approve Plans, Specs, and Authorize Advertisement for Bid for the Bliss Wastewater Project. Motion carried 5-0. DIRECTOR OF PUBLIC WORKS Public Works Director Fischer’s report on department activities was in the meeting packet. Fischer said it has been busy the past weeks with a number of snow events. The ice rink will be flooded when the weather cooperates. CITY ATTORNEY There was no report from City Attorney Johnson who was absent. CITY ADMINISTRATOR City Administrator Morell provided a written report. The Council had no questions. Scandia City Council December 16, 2025 Page 7 of 7 ADJOURNMENT Kronmiller, seconded by Lubke, moved to adjourn the meeting. Motion carried 5-0. The meeting adjourned at 8:04 p.m. Respectfully submitted, Brenda Eklund City Clerk 1 Kyle Morell From:Eric Larson <elarson@eckberglammers.com> Sent:Thursday, February 29, 2024 11:25 AM To:Kyle Morell Subject:RE: Wyldewood Acres DA Question Attachments:RE: Wyldewood Acres; RE: Wyldewood Acres. Conversion from Common Septic System to Individual Septic System. Kyle, I hope the following answers your question and meets your needs, but, of course, follow up when and if needed. The short answer is: Any change to the current situation, including changes to the Wylewood Acres HOA with respect to Outlot A and the community septic system, would require City of Scandia approval. Simply put, the Wyldewood Acres development meets its sanitary requirements through a community septic system located at Outlot A. As between the City of Scandia and Wyldewood Acres development, generally, and each and every residential lot, individually, each and every lot owner is bound and obligated to the City of Scandia to this current system and structure both by regulation and by contract. Theoretically, it is possible to dissolve an HOA, but the realities here are that whatever is done will need to be approved by the City of Scandia because Outlot A and an HOA are what were approved to meet sanitary requirements and to which the City of Scandia, both in its regulatory capacity as well as contractual rights, may enforce. Any change to the current situation would require City of Scandia approval. To restate, the City of Scandia’ interest is a functional sanitary system and, per below, through multiple contracts and restrictions recorded against the real estate as well as it traditional, government regulatory oversight and controls, the City of Scandia has the legal enforcement tools to ensure that any changes to a sanitary system meet the City’s approval. And, unless clearly demonstrated otherwise, I don’t discern how any property owner(s) at Wyldewood Acres can remove itself/themselves from the HOA and meet the City’s sanitary requirements. Wyldewood Acres Development Agreement, dated July 22, 2004, between the Town of New Scandia and Scandia Development, LLC. (“Wyldewood Acres Scandia DA”). In 2004, since Scandia was a township, per the Wyldewood Acres Scandia DA referenced below, it appears the County had jurisdiction over the septic/sanitary system for the development. Section 7(a) of the Wyldewood Acres Scandia DA provides that the Developer comply with all government agency requirements including “the legal requirements of such other governmental agencies.” Since sanitary oversight was with Washington County and now is with the City, the City now has both contractual under both development agreements and regulatory enforcement authority. Sanitary Sewer Requirement. Section 10.d) governs sanitary sewer: “Developer shall furnish to the Town Attorney for his review and approval the documents of conveyance of Outlot A, Wyldewood Acres to the sanitary sewer operator and the contract between the operator and the homeowner’s association for the operation and maintenance of the system.” Thus, City approval is required if the sanitary system, regardless of what type of system, is removed from the HOA. 2 Section 12 requires that the Wyldewood Acres Scandia DA constitutes a “restrictive covenant” that runs with the land and is binding on all future property owners, and it was recorded as evidenced by Document No. 3458890, dated 2004/08/10 at 9:26:00 a.m. Section 6 requires that the Wyldewood Acres Scandia DA be recorded against all the property at Wyldewood Acres” and section 10.b) further requires that “this Development Agreement must be recorded with the Washington County Recorder’s Office prior to Developer’s transfer of fee title or a contract vendee’s interest in any lot within the Project.” In short, current property owners and the HOA must comply with Wyldewood Acres Scandia DA. Section 15 is entitled “Indemnification”. Per section 15, the City of Scandia can take the position that if the City needs to enforce the Wyldewood Acres Scandia DA against any property owner or the HOA, then the City is entitled to be indemnified for all of its expenses including legal fees and costs. Washington County Development Agreement and Density Allocation (“Wyldewood Acres County DA”). The Wyldewood Acres County DA, dated July 27, 2004, between Scandia Development LLC and the County of Washington expressly provides that the County’s approval of the 67.19 acre development is subject to many conditions, one of which is: “Outlot A will be used for a community on-site septic system.” [Second to last WHEREAS clause on page 2]; see also, the Now, Therefore clause, which provides “in consideration of the premises ad as a condition of approval.” Per section 5, the Wyldewood Acres County DA repeatedly makes it clear that all the requirements in the agreement are imposed on future property owners: “ This agreement will run with the Lots . . . and shall be biding upon their owners, heirs, successors and assigns, as the case may be.” Section 6 requires that the Wyldewood Acres County DA be recorded against all the property at Wyldewood Acres,” and it was recorded as evidenced by Document No. 3458890, dated 2004/08/10 at 9:26:00 a.m. Thus, I stand by my May 9, 2023 and May 12, 2023 emails’ analyses and opinions (I have attached them both). What steps or actions the Wyldewood Acres homeowners can legally take to remove themselves from the Wyldewood Acres Homeowner’s Association (HOA) is a legal question between them and the HOA. I would have to review in detail the HOA documents and Common Interest Community (CIC) law to obtain a better command of how such severance and dissolution may occur. But such a review is not needed at this time, because there is theory and present realities. Theoretically, this HOA may be dissolved. But the reality is that between the City and the property owners at Wyldewood Acres, any change involving Outlot A and the sanitary system requires City of Scanda approval, which cannot and should be presumed will be granted. Eric Eric Larson Attorney Direct: 651-351-2137 | Fax: 651-439-2923 eckberglammers.com ||| 3 From: Kyle Morell Sent: Thursday, February 29, 2024 8:43 AM To: Eric Larson Subject: FW: Wyldewood Acres DA Question Eric, Here is the Wyldewood Acres DA. Again, the question is, can a homeowner remove themselves from the HOA? I think not, or at least not without HOA approval. 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 From: Eric Larson <elarson@eckberglammers.com> Sent: Wednesday, May 17, 2023 11:40 AM To: TJ Hofer <tj.hofer@bolton-menk.com>; Kyle Morell <k.morell@ci.scandia.mn.us> Subject: FW: Wyldewood Acres DA Question TJ, Thanks for the email. Someone From Wyldewood Acres had contacted City Administrator Kyle Morell with the same inquiry last week, which we answered, so I am including City Administrator Kyle Morell. I don’t know if this is the same person. To get you at the same information/communication spot on this issue, I am also attaching the email string between Kyle and me. I suspect this is a follow up by the resident(s), in part, on the next step, which is for the Association and each resident to determine whether an individual septic system can be installed. I pulled and looked at the plat. I did not take the time to assess each and every lot, rather, I just wanted to get a quick idea of the development, see my quick assessment of the plat in my email to Kyle. Eric Eric Larson Attorney 1809 Northwestern Avenue | Stillwater, MN 55082 4 Direct: 651-351-2137 | Fax: 651-439-2923 eckberglammers.com ||| Confidentiality Note: This message and any attachments may contain information that is privileged, confidential, and exempt from disclosure under applicable law. If you are not the intended recipient or are not authorized to receive for the recipient, you are hereby notified that dissemination, distribution or copying of this message and any attachments is strictly prohibited. If you have received this message in error, please immediately advise the sender by reply e-mail and delete the message and any attachments. Thank you. -----Original Message----- From: TJ Hofer <tj.hofer@bolton-menk.com> Sent: Wednesday, May 17, 2023 11:05 AM To: Kyle Morell <k.morell@ci.scandia.mn.us>; Eric Larson <elarson@eckberglammers.com> Subject: Wyldewood Acres DA Question Kyle and Eric, Carrie Mitchell is interested in transitioning from shared septic to private septic in Wyldewood Acres. She has asked me if the DA needs to be amended for the septic to be changed. To me this is a legal question. I have drafted DA's before, but I haven't been involved in the alteration/amending of them or really even the oversight of them. My best understanding is no; even though the DA runs with the land, the DA only addresses the installation of the systems, not the operation of them. I'm guessing there is a decent chance you've been sent these by Carrie, but in case you haven't they are attached. T.J. Hofer Planner Bolton & Menk, Inc. Mobile: 612-271-6984 Bolton-Menk.com -----Original Message----- From: Carrie Mitchell <carriemitchellwrites@gmail.com> Sent: Monday, May 15, 2023 4:41 PM To: TJ Hofer <tj.hofer@bolton-menk.com> Subject: Development agreement documents for review TJ, Thank you for the information regarding the 1.5 minimum lot size, townhomes on 3.95 acres—likely 3 buildable acres, and Watersheds. Development agreement documents are attached here. Your opinion on whether they need to be amended in order to install private individual septic systems is much appreciated. If you need copies of our Declarations and Bylaws for review, please let me know and I will forward to you. Thank you. 5 Regards, Carrie Mitchell 651-491-5151 1 Kyle Morell From:Eric Larson <elarson@eckberglammers.com> Sent:Tuesday, May 9, 2023 11:46 AM To:Kyle Morell Subject:RE: Wyldewood Acres Attachments:development agreement.pdf; Wyldewood Declaration - unsigned.pdf; Wyldewood HOA Bylaws - unsigned.pdf Kyle, Based on my review, each homeowner in the AssociaƟon is most definitely obligated to financially contribute for the maintenance, repair, and replacement of the common sep Ɵc system. The general principle for condominiums is that each owner has the right to use common elements, the associaƟon has the responsibility to maintain common elements, and each owner has the obligaƟon to pay its share of AssociaƟon expenses. Accordingly, a fair read of the DeclaraƟon is that each homeowner must use the common sepƟc system and the common water system. But, I must underscore that the Scandia City AƩorney does not provide legal advice to (1) the AssociaƟon or (2) any homeowner. In my Scandia City AƩorney role, I think it is a fair and proper posiƟon for Scandia to take the posiƟon, that as a party to a Development Agreement that established this Wyldewood Acre development with a common sep Ɵc system, that in addiƟon to its established City regulatory oversight, the City has contractual review and approval authority for this parƟcular proposed sepƟc system change. But, per below, IF the AssociaƟon and the property owners have a workable, reasonable plan, then maybe the Scandia would, in the end, approve replacing the common sepƟc system with individual and separate sepƟc systems. But, in my quick review, I discern some challenges. To restate, I have not engaged in a Ɵtle review of AssociaƟon property and the lots, and I have not tried to locate or retrieve any documents from the Washington County Recorder’s Office. I did not want to devote such Ɵme and effort unƟl you thought it was warranted. Also, per below, I note some possible regulatory issues that occurred to me. CONTRACTUAL. Basically, the AssociaƟon would need to release the property owners from use of the common sepƟc system and, at minimum, respecƟng sepƟc, transform the development from a condominium shared common sepƟc system to separate and discrete sepƟc systems for each lot or something akin to that. Development Agreement. The development was approved by Scandia with a common sepƟc system. The development has three outlots: A, B, and C. Outlot A is for the waste water treatment system, which I presume is the common sepƟc system. Outlot B and Outlot C have wells for water service. [See DeclaraƟon, Art. V, Sec. 1, at p. 8]. The outlots are “Common Elements” owned by the Wyldewood Acres Homeowners AssociaƟon (the “AssociaƟon”). The Development Agreement expressly provides that the “Developer shall furnish to the Town A Ʃorney for his review and approval the documents of conveyance of Outlot A, Wyldewood Acres to the sanitary sewer operator and the contract between the operator and the homeowner’s associaƟon for the operaƟon and maintenance of the system.” [Development Agreement, secƟon 10(d) at page 13]. The sentence is awkwardly worded, plus I don’t know what the conveyance document is and to whom Outlot A was conveyed. If you would like, I can see if I can locate and retrieve this document from the Washington County Recorder’s Office. Regardless, if separate sepƟc systems were installed, then a material quesƟon I have is what happens to Outlot A? 2 Relatedly, the Development Agreement references easements, see Ar Ɵcle VII, and further notes that that restricƟons applicable to all lots, see secƟon 8. Without reviewing these easements, I do not know whether they provide addiƟonal hurdles for this proposed sepƟc system separaƟon. DeclaraƟon. Presumably each of the lots has the declaraƟon recorded against the property. The DeclaraƟon provides each lot owner all the benefits of the AssociaƟon as well as the obligaƟons and expenses, one of which is the requirement that each owner pay it porƟon of Common Element expenses. Oulot A is a Common Element for which each owner benefits and pays. For instance, ArƟcle V, SecƟon 4, enƟtled “Maintenance by Owner” provides, “Except for the waste water system and water system, all maintenance of the dwellings and unit shall be the sole responsibility and expense of the Owners thereof.” [DeclaraƟon, ArƟcle V, at p. 8]. REGULATORY Would each lot meet the requirements for an individual sepƟc system? Are some lots close to Outlot B and Outlot C, the wells. If so, what impact does that have regarding individual sepƟc systems for those lots (or does the locaƟon of the wells create challenges for all the lots)? Are the lots large enough? Per the Development Agreement, Wyldewood Acres Homeowners AssociaƟon consƟtutes 67 acres with 27 housing units (23 single family and 4 townhomes). I don’t know individual lot sizes and by extension the total acreage of the Common Elements or dedicated public right of ways or easements if any. Are there recorded easements that limit placement of the individual sep Ɵc system? These are just a few quesƟons that immediately enter my mind, I am sure there are many more. And, in the end, it is for the homeowners and the AssociaƟon to address these issues and maybe they have. And, then, when and if the Ɵme comes, TJ Hofer is probably the proper person to take the iniƟal regulatory review. I hope the above provides the answers you were seeking, but, as always, feel free to contact me with any ques Ɵons or concerns. Eric Eric Larson AƩorney Direct: 651-351-2137 | Fax: 651-439-2923 eckberglammers.com ||| From: Kyle Morell Sent: Monday, May 8, 2023 4:09 PM To: Eric Larson Subject: Wyldewood Acres Eric, I have an unusual one for you. Wyldewood Acres is a development in Scandia just west of the elementary school. The Development was approved by the Township Board in 2004. They currently own and operate a community sep Ɵc system (CSS). The HOA manages it, and they have their own permit with the MPCA for the system. One homeowner is exploring 3 possibly de-commissioning their CSS and moving each home to an individual sepƟc system. She has talked with the MPCA and the County and wants to know if the city has anything in its ordinance language that would prevent this. According to Charlie, the previous Administrator claimed that since the Development was approved with CSS, it had to stay with CSS. Can you review the aƩached Development Agreement, DeclaraƟon, and HOA By-Laws to see if you see anything requiring them to conƟnue operaƟng their CSS? I did not see anything but would like a more trailed eye to review them before I call the homeowner back. Feel free to call me if you have any quesƟons. Kyle H. Morell City Administrator City of Scandia 14727 209th Street North Scandia, MN 55073 Phone: 651.433.2274 Fax: 651-433-5112 Cell: 612.245.2654 Web: www.cityofscandia.com Email: k.morell@ci.scandia.mn.us 1 Kyle Morell From:Eric Larson <elarson@eckberglammers.com> Sent:Friday, May 12, 2023 12:04 PM To:Kyle Morell Cc:Shelley E. Van Dyke Subject:RE: Wyldewood Acres. Conversion from Common Septic System to Individual Septic System. Kyle, Development Agreement. ConverƟng from a common to an individual sepƟc system, most definitely, would require an amendment to “The Town of New Scandia, Washington County, Minnesota, Development Agreement, dated July 22, 2004” (the “Development Agreement”). And, the Development Agreement Amendment would need City Council approval. The current Development Agreement has been recorded against the Wyldewood Acres lots. The Amendment would have to be recorded against each lot in the Wyldewood Acres Development. Here are some of the provisions in the Development Agreement that probably would have to be amended (most amendments would be easy one or two sentences in length): SecƟon 1(b), Deposit and Payment for Costs incurred by Town (now City); SecƟon 2(c), Private Improvements; SecƟon 2(f), CompleƟon of Improvements; 2(f) As-Built Plans; secƟon 7(c)(i), Building Permits; secƟon 8(a), Drainage Improvements; and sec Ɵon 10(a) Miscellaneous, Plat Recording (only if the Plat is amended) and 10(d), Outlot A. The AssociaƟons intended use of Outlot A is one of the maƩers that would have to be addressed in the amendment. For instance, can a sepƟc system be abandoned and if it can would that be acceptable to the City. Outlot A appears fairly sizable, is a replat to convert it to a buildable lot possible and is that what the AssociaƟon considering as a way of recovering its conversion costs? HOA documents. The AssociaƟon documents would need to be revised, such as the DeclaraƟon of Covenants, CondiƟons and RestricƟons, Wyldewood Acres, dated August 2, 2004, that is recorded against each of the lots, in order to account for the conversaƟon from a common to individual sepƟc system. The amended DeclaraƟon would need to be recorded for each lot. Regulatory Compliance. What I don’t know are the pragmaƟc conversion challenges: easy, moderate, difficult, or not possible. If the AssociaƟon does intend to invesƟgate the conversion, the AssociaƟon should consider hiring an expert in the field to assess the pracƟcal difficulƟes for each and every lot. One issue that comes to my mind is whether the loca Ɵons of Outlot B and Outlot C (the water wells) or the locaƟons uƟlity/wetland easements impede installaƟon of individual sepƟc systems for any Wyldewood Acres lots? I noted that Outlot B is south of Outlot A and located between Lots 1 and 2. Amendment, Development Agreement Review and Approval. When the AssociaƟon determines that a conversion is pracƟcal and decides to proceed with this proposed conversion from common to an individual sep Ɵc system, then the AssociaƟon should retain counsel to draŌ the Development Agreement amendment for City review and approval. AlternaƟvely, I can certainly draŌ the amendment, but since the AssociaƟon would need counsel to draŌ the AssociaƟon’s governing document amendments, it strikes me as more appropriate for that a Ʃorney to undertake the iniƟal Development Agreement Amendment draŌ. The City may want to impose some payment deposit to cover its costs, per sec Ɵon 1(b). 2 I hope the above provides the answers you seek, but as always feel free to contact me. Thanks. Eric Eric Larson AƩorney Direct: 651-351-2137 | Fax: 651-439-2923 eckberglammers.com ||| From: Kyle Morell Sent: Wednesday, May 10, 2023 10:09 AM To: Eric Larson Cc: Shelley E. Van Dyke Subject: RE: Wyldewood Acres From what I can tell, one homeowner is bringing informaƟon back to the HOA. I am unsure if the whole HOA is on board or knows she has asked these quesƟons. I am following up with her today, and I will tell her that converƟng to individual sepƟc from community sepƟc, may require an amendment to the Development Agreement but certainly would require an amendment to the HOA documents. I believe it is safe for her to tell the HOA she is talking with the City, but I would not suggest she say anything more. I will loop TJ in on this tomorrow when he is on-site. Kyle H. Morell City Administrator City of Scandia 14727 209th Street North Scandia, MN 55073 Phone: 651.433.2274 Fax: 651-433-5112 Cell: 612.245.2654 Web: www.cityofscandia.com Email: k.morell@ci.scandia.mn.us 3 From: Eric Larson <elarson@eckberglammers.com> Sent: Wednesday, May 10, 2023 9:51 AM To: Kyle Morell <k.morell@ci.scandia.mn.us> Cc: Shelley E. Van Dyke <Mvandyke@eckberglammers.com> Subject: RE: Wyldewood Acres Kyle, You are correct. There is a lot to unpack here. Good summary. I will retrieve the real estate documents and review; full week, so I may not be able to get back to you un Ɵl next week, but if there are Ɵming/priority issues then I can see what I can do to respond more quickly. QuesƟon: your iniƟal email indicated that a single homeowner made the inquiry. Do you know if the Associa Ɵon itself agrees with this pursuit? And why? I would think it would be more expensive both the make the transi Ɵon and thereaŌer respecƟng maintenance of the individual systems. Maybe this community sepƟc system is at the end (or nearing the end) of its capacity, but if so, amazing that it would happen in about 19 years. Basically, this transiƟon from a community to individual sepƟc system is possible as to governing documents: (1) City approval either through amending the Development Agreement or otherwise (need to see how this unfolds) and (2) amending the AssociaƟon governing documents. And I would be interested in TJ’s iniƟal thoughts about what the property owners would need to do to install individual sepƟc systems. If it is impracƟcal, then a Development Agreement amendment and AssociaƟon governing documents amendments are superfluous. Thanks. Eric Eric Larson AƩorney Direct: 651-351-2137 | Fax: 651-439-2923 eckberglammers.com ||| From: Kyle Morell <k.morell@ci.scandia.mn.us> Sent: Tuesday, May 9, 2023 12:17 PM To: Eric Larson <elarson@eckberglammers.com> Subject: RE: Wyldewood Acres Eric, This is clear as mud. 4 Here is a brief summary as I read it  Wyldewood Acers is set up as a condominium-like group  I believe they want to get rid of the community sepƟc, not the shared water, HOA, and shared common spaces  The City would want to ensure individual sepƟc is available for all units and that the lots meet the requirements of a sepƟc system  The City would need to know the plans for outlot A. I assume MPCA would prohibit them from selling or building on it, as it is currently licensed as a drain field.  Geƫng rid of the community sepƟc could require an amendment to the Development Agreement between the City and the HOA. Please contact the Washington County’s Recorders Office for the documents needed to conƟnue your research. If the AssociaƟon is serious about this, I want to make sure we are able to legally allow them to move on from their community sepƟc. Kyle H. Morell City Administrator City of Scandia 14727 209th Street North Scandia, MN 55073 Phone: 651.433.2274 Fax: 651-433-5112 Cell: 612.245.2654 Web: www.cityofscandia.com Email: k.morell@ci.scandia.mn.us From: Eric Larson <elarson@eckberglammers.com> Sent: Tuesday, May 9, 2023 11:46 AM To: Kyle Morell <k.morell@ci.scandia.mn.us> Subject: RE: Wyldewood Acres Kyle, Based on my review, each homeowner in the AssociaƟon is most definitely obligated to financially contribute for the maintenance, repair, and replacement of the common sep Ɵc system. The general principle for condominiums is that each owner has the right to use common elements, the associaƟon has the responsibility to maintain common elements, and each owner has the obligaƟon to pay its share of AssociaƟon expenses. Accordingly, a fair read of the DeclaraƟon is that each homeowner must use the common sepƟc system and the common water system. But, I must underscore that the Scandia City AƩorney does not provide legal advice to (1) the AssociaƟon or (2) any homeowner. In my Scandia City AƩorney role, I think it is a fair and proper posiƟon for Scandia to take the posiƟon, that as a party to a Development Agreement that established this Wyldewood Acre development with a common sep Ɵc system, that in addiƟon to its established City regulatory oversight, the City has contractual review and approval authority for this parƟcular proposed sepƟc system change. But, per below, IF the AssociaƟon and the property owners have a workable, reasonable plan, then maybe the Scandia would, in the end, approve replacing the common sepƟc system with individual and separate sepƟc systems. But, in my quick review, I discern some challenges. To restate, I have not engaged in a Ɵtle review of AssociaƟon property and the 5 lots, and I have not tried to locate or retrieve any documents from the Washington County Recorder’s Office. I did not want to devote such Ɵme and effort unƟl you thought it was warranted. Also, per below, I note some possible regulatory issues that occurred to me. CONTRACTUAL. Basically, the AssociaƟon would need to release the property owners from use of the common sepƟc system and, at minimum, respecƟng sepƟc, transform the development from a condominium shared common sepƟc system to separate and discrete sepƟc systems for each lot or something akin to that. Development Agreement. The development was approved by Scandia with a common sepƟc system. The development has three outlots: A, B, and C. Outlot A is for the waste water treatment system, which I presume is the common sepƟc system. Outlot B and Outlot C have wells for water service. [See DeclaraƟon, Art. V, Sec. 1, at p. 8]. The outlots are “Common Elements” owned by the Wyldewood Acres Homeowners AssociaƟon (the “AssociaƟon”). The Development Agreement expressly provides that the “Developer shall furnish to the Town A Ʃorney for his review and approval the documents of conveyance of Outlot A, Wyldewood Acres to the sanitary sewer operator and the contract between the operator and the homeowner’s associaƟon for the operaƟon and maintenance of the system.” [Development Agreement, secƟon 10(d) at page 13]. The sentence is awkwardly worded, plus I don’t know what the conveyance document is and to whom Outlot A was conveyed. If you would like, I can see if I can locate and retrieve this document from the Washington County Recorder’s Office. Regardless, if separate sepƟc systems were installed, then a material quesƟon I have is what happens to Outlot A? Relatedly, the Development Agreement references easements, see Ar Ɵcle VII, and further notes that that restricƟons applicable to all lots, see secƟon 8. Without reviewing these easements, I do not know whether they provide addiƟonal hurdles for this proposed sepƟc system separaƟon. DeclaraƟon. Presumably each of the lots has the declaraƟon recorded against the property. The DeclaraƟon provides each lot owner all the benefits of the AssociaƟon as well as the obligaƟons and expenses, one of which is the requirement that each owner pay it porƟon of Common Element expenses. Oulot A is a Common Element for which each owner benefits and pays. For instance, ArƟcle V, SecƟon 4, enƟtled “Maintenance by Owner” provides, “Except for the waste water system and water system, all maintenance of the dwellings and unit shall be the sole responsibility and expense of the Owners thereof.” [DeclaraƟon, ArƟcle V, at p. 8]. REGULATORY Would each lot meet the requirements for an individual sepƟc system? Are some lots close to Outlot B and Outlot C, the wells. If so, what impact does that have regarding individual sepƟc systems for those lots (or does the locaƟon of the wells create challenges for all the lots)? Are the lots large enough? Per the Development Agreement, Wyldewood Acres Homeowners AssociaƟon consƟtutes 67 acres with 27 housing units (23 single family and 4 townhomes). I don’t know individual lot sizes and by extension the total acreage of the Common Elements or dedicated public right of ways or easements if any. Are there recorded easements that limit placement of the individual sep Ɵc system? These are just a few quesƟons that immediately enter my mind, I am sure there are many more. And, in the end, it is for the homeowners and the AssociaƟon to address these issues and maybe they have. And, then, when and if the Ɵme comes, TJ Hofer is probably the proper person to take the iniƟal regulatory review. I hope the above provides the answers you were seeking, but, as always, feel free to contact me with any ques Ɵons or concerns. Eric 6 Eric Larson AƩorney Direct: 651-351-2137 | Fax: 651-439-2923 eckberglammers.com ||| From: Kyle Morell <k.morell@ci.scandia.mn.us> Sent: Monday, May 8, 2023 4:09 PM To: Eric Larson <elarson@eckberglammers.com> Subject: Wyldewood Acres Eric, I have an unusual one for you. Wyldewood Acres is a development in Scandia just west of the elementary school. The Development was approved by the Township Board in 2004. They currently own and operate a community sep Ɵc system (CSS). The HOA manages it, and they have their own permit with the MPCA for the system. One homeowner is exploring possibly de-commissioning their CSS and moving each home to an individual sepƟc system. She has talked with the MPCA and the County and wants to know if the city has anything in its ordinance language that would prevent this. According to Charlie, the previous Administrator claimed that since the Development was approved with CSS, it had to stay with CSS. Can you review the aƩached Development Agreement, DeclaraƟon, and HOA By-Laws to see if you see anything requiring them to conƟnue operaƟng their CSS? I did not see anything but would like a more trailed eye to review them before I call the homeowner back. Feel free to call me if you have any quesƟons. Kyle H. Morell City Administrator City of Scandia 14727 209th Street North Scandia, MN 55073 Phone: 651.433.2274 Fax: 651-433-5112 Cell: 612.245.2654 Web: www.cityofscandia.com Email: k.morell@ci.scandia.mn.us