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12-21-2021 MeetingDecember 21, 2021 A regular meeting of the Scandia City Council was held on the above date with modifications. The meeting was conducted in-person 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 7:01 p.m. Roll call was taken. The following were in attendance: Council members Heather Benson, Jerry Cusick, Steve Kronmiller, Patti Ray, and Mayor Christine Maefsky. Staff present: City Administrator Ken Cammilleri, City Planner Evan Monson, City Engineer Ryan Goodman, City Attorney Chris Nelson, Fire Chief Mike Hinz, and City Clerk Brenda Eklund. APPROVAL OF AGENDA City Attorney Nelson added 10)f Consideration of the state opioid settlement. Ray, second by Benson, moved to approve the agenda as amended. Motion carried 5-0 by roll call vote. LAW ENFORCEMENT REPORT Deputy Peters was not present. Cammilleri explained the assignment changes being made by the County beginning in January 2022. Deputy Peters is being assigned to the K-9 Unit and Deputy Zachary Boesel will take over as Scandia's Deputy. PUBLIC FORUM Members of the Scandia Quilters (Jayme Steele, Darlene Holtgreve, Jan Brown, Gloria Mueller) gifted the Scandia Community Center with a handcrafted quilt wall hanging to be displayed in the hallway over the coat rack. Mayor Maefsky thanked them for the donation. CONSENT AGENDA The following Consent Agenda was presented: a) Minutes 1) November 16, 2021 Special Meeting 2) November 16, 2021 Regular Meeting 3) December 1, 2021 Work Session b) Treasurer's Report c) Payment of Vouchers d) 2022 City Meeting Schedule e) Approve 2022 Tobacco License Renewals: Big Marine Lake Store, Big Marine Lake Liquor Store f) Approve 2022 Liquor License Renewal: Big Marine Lake Liquor Store Off -Sale, Meisters Bar & Grill, Rustic Roots, The Scandia Creamery, Thirsty Buffalo g) Request to waive fireworks permit application fee for Vinterfest h) Approve donation of park bench from Beverly Jellum in memory of Vernon Jellum i) Approve a 1 -year extension of the Recycling Contract with SRC j) Approve 2022 Contract for Technical Services with Washington Conservation District k) Resolution No. 2021-52 — Establishing Employee pay rates for 2022 1) Accept resignation of Volunteer Firefighter William Mattheisen December 21, 2021 Scandia City Council Page 2 of 10 m) Approve Final Payment to Clearview Construction for Annex & Fire/Public Works Roof Replacement n) Pay request to LMCIT for payment of legal services and deductible o) Approve Ice Rink Staffing for 2021-22 Season Kronmiller, second by Ray, moved to approve the Consent Agenda as presented. Motion carried 5-0 by roll call vote. PARK AND RECREATION COMMITTEE Greg Zauner, Vice Chair of the PRC, explained the activities being planned for Vinterfest on January 28 and 29, 2022: Norwegian dancers, a Kubb tournament, and a star viewing on Friday evening. PLANNING COMMISSION Variance from side yard setback requirements to replace an existing detached garage at 12140 Lakamaga Trail North. Martin Nora and Peter Nora, Applicants on behalf of property owners Nora Properties, LLC. Resolution No. 2021-53 Planner Monson presented the approval from the Planning Commission for a variance of 11.2 feet from the required 20 -foot sideyard setback to replace an existing garage at 12140 Lakamaga Trail. A resolution with findings and five conditions was presented. The proposed request does not encroach any closer to the setback than the existing structure. Benson, second by Cusick, moved to adopt Resolution No. 2021-53, Approving a Variance for 12140 Lakamaga Trail as presented. Motion carried 5-0 by roll call vote. Variances from lot size and road frontage requirements for construction of a single-family dwelling on a non -conforming lot, and Variances for an Accessory Dwelling Unit located within required setbacks from lot lines, wetlands, and a lake. The property is at 19489 Manning Trail North. Paul and Denise Bruggeman, Applicants on behalf of property owners Pat and Brenda Melchior. Resolution No. 2021-54 Planner Monson summarized a zoning request to build a new home and retain an existing cabin as an Accessory Dwelling Unit on a non -conforming property at 19489 Manning Trail. The Planning Commission recommended approval of the five required variances with conditions. However, staff recommended denial with findings that there are inconsistencies with the comprehensive plan because the development of the property is not in harmony or meets the goals and objectives for land use. The development code does not allow private driveways, and the lack of a city street raises the issue of premature subdivisions. Council member Ray asked if the private driveway also goes to another house. Monson replied that there are three other cabins to the west which share the access. The new home would be the fourth served. Mayor Maefsky said that having no street frontage at all, only a shared driveway that is not solely theirs is potentially problematic. Council member Kronmiller said that in general he does not have a lot of issues with the plan, but page 3 of staff report describes that a minor subdivision needs proper access to provide city December 21, 2021 Scandia City Council Page 3 of 10 services, and that this review is more of a minor subdivision than a variance. Future homes may be built which becomes problematic. A subdivision approach may be better than a variance for one home using an easement that is shared by multiple homes. Council member Cusick said that he attended the site visit, and this easement driveway has been in place for many years for the cabins by Big Marine Lake. These two lots are the highest and best place for a home. The lots have been in existence for a long time, and not considered a subdivision. Bruggeman is willing to combine the two lots, and he has ample room for a home and septic system. Cusick said he is unsure about the variances needed for the ADU, saying Bruggeman should scrap that idea and only build a conforming home. Planning Commission Chair Travis Loeffler spoke and explained that three of the variances are for the ADU, and the Commission had no issues with allowing this because the existing conditions for the cabin are not changing. Loeffler said the new residential structure will meet all required setbacks from the lake and property lines, and the applicant is respecting what's allowed in the code. The road access has always been there, and 4 or 5 other cabins also use this access. The City cannot tell them that they cannot live there because of the driveway situation. Loeffler explained that the Planning Commission found that this is an appropriate use to rebuild the cabin and to build within setbacks, with conditions to meet road upgrades according to the fire chief's expectations as written in the resolution. Loeffler said the Planning Commission did not understand the minor subdivision rationale because there are already divided lots here. Council member Benson asked why the existing cabin needs variances. Planner Monson explained that the applicant is changing the key use of the cabin and the renovation needs to meet setbacks or approval of variances to remain. The new house triggers a review of all code requirements. Administrator Cammilleri explained the staff recommendation of denial. Building a home for year around use gives an opportunity to future changes of use to surrounding properties. Fire services may be difficult using the challenging driveway that serves the homes. The city's ordinance addresses street access and places lots of emphasis on public roads not to be substandard. The driveway serves 3-4 parcels and it's questionable that it meets the definition of a driveway/road. An improved city road must support city vehicles, and have ongoing maintenance of this road. Council member Kronmiller asked what the smallest private road width in town is. Engineer Goodman replied that 18 feet paved is the smallest. Council member Cusick said there is an expectation that the existing road serves these cabins now, and the structures have been there for many years. The expectation for public services is still the same. Kronmiller said that there are concerns that this approval will trigger additional development and the City does not have a good street to serve this area. Fire Chief Hinz said that he drove out to this location, and halfway down it splits to the south to serve other cabins. Increasing road size to a minimum width will be manageable for the fire trucks, and provides a chance to make improvements such as pullouts for passing vehicles. Minimum width is needed to make it a usable driveway. December 21, 2021 Scandia City Council Page 4 of 10 Council member Benson asked if the Council can approve the request with a condition to widen the road more than 8 feet. Administrator Cammilleri said that Bruggeman does not yet own the property but language can be added that he makes improvements based on standards given by the Fire Chief. Mayor Maefsky asked what is the position on a shared driveway. Administrator Cammilleri said that the City's design standards cover this and allow one driveway per property; there is not a definition of "driveway" but there is a definition of a private road. This existing driveway is nowhere near the standards of a road. Maefsky asked if a shared driveway could be allowed if requested. Cammilleri said possibly depending on wetland issues, but could create problems and the City should generally avoid this. Council member Kronmiller reiterated that the development needs to upgrade to city standards, because the applicant is combining lots and making improvements. Council member Cusick replied that this request has nothing to do with future development. The city should accept the driveway the way it is — no matter if it's a cabin or year-round home. Bruggeman doesn't own the driveway, it's within an easement. Mayor Maefsky asked if future improvements on other lots would need approval. Planner Monson said yes, a variance would be triggered because there is no road frontage. Maefsky asked how could the city deny future variances if this was approved. Monson said it would be difficult to have findings of denial in future requests. Council member Cusick said that this property already has a livable structure — he's just replacing it. Administrator Cammilleri said that the difference is redevelopment, asking if the Council feels the issue of road frontage is a concern, or are they comfortable with applying the definition of a driveway to this parcel. Staff provided two resolutions to consider, an approval and a denial. Cammilleri said the Council should review the findings and conditions for the resolution that fits more closely with the direction the Council wishes to go. Applicant Paul Bruggeman addressed the Council, saying it's a driveway, not a road, which he has met one person on in the past 8 months. The other four lots to the east would have to be combined to be built on, which are currently under one ownership, so that there is potential for only one more home. Council member Kronmiller said that there are substandard lots being built on along the lakes, which starts with one person doing something. Kronmiller asked at what point does this have to be a full street? He said he doesn't have issues with this plan, but in the future, there will be more asking to try to share this driveway. Bruggeman said the City can use discretion with future requests, and he is asking for one home to use an existing driveway. Council member Benson recommended approving the request with a condition that the driveway be 12' in width, as the applicant is willing to do this. Bruggeman asked for some flexibility to 10' to 12' due to wetlands. Bruggeman said he wants a nice driveway with class 5 gravel. Benson said this could lead to a better driveway to serve the other cabins. Mayor Maefsky said it needs to be made clear that the applicant is paying for the upgrades and maintenance. Benson asked if they could propose 10' width in condition 6.a) of the resolution due to the wetlands. December 21, 2021 Scandia City Council Page 5 of 10 Council member Kronmiller asked if the driveway can be wider than 12'. Engineer Goodman said the engineering standards require that a driveway must be at least 12', and clearing to 14' would comply with ordinances. Kronmiller said he is more comfortable with this, because the driveway issue is the crux of this discussion. Mayor Maefsky asked Bruggeman if a 12' width can be done with an exception around the wetlands. Bruggeman said yes, this is doable. Maefsky recommended adding "driveway" before the word "access" in condition #6 of the resolution, and to make a clear understanding that this doesn't bind the city in the future to improve this driveway nor automatically allow shared driveways. Benson, second by Kronmiller, moved to approve Resolution No. 2021-54 Approving Variances for Parcels 29.032.20.32.0011 and 29.032.20.32.0010 located at 19489 Manning Trail North, with amendments to Condition #6 adding "driveway access"; 6a) clear entire driveway to a width of 14'; 6c) driving surface 12' with exception of the wetland areas where the driveway width should not exceed existing conditions. Motion carried 5-0 by roll call vote. Ordinance No. 2021-06: Amendments to City of Scandia Development Code, Chapter 2, Section 4.34(B) regarding Distribution Scale Solar Energy Systems, and to City of Scandia Development Code, Chapter 5, Shoreland Management Regulations to allow distribution solar energy systems within the Shoreland Overlay district as a conditional use. Planner Monson presented amendments to the development code regarding distribution solar energy systems (DSES), which would allow commercial solar arrays as a conditional use within certain areas in shoreland based on meeting specific criteria, provide enhanced screening using a scenic canvas while vegetation is being established, and allow for additional planting options under the panels. Applicant Michael Lubke had requested the proposed ordinance amendments and identified areas in the city that would be opened up for this development. A copy of the ordinance with the amended language as recommended for approval by the Planning Commission was prepared. Monson stated that the DNR concurred with the recommended change to allow commercial solar in the shoreland, as did the Watershed. Michael Lubke, 10929 Scandia Trail addressed the Council to answer questions. Lubke referenced a U of MN Extension report which identified positive effects on water quality having solar nearby. Council member Kronmiller said he is uncomfortable with the number of existing commercial solar facilities in Scandia, and this could qualify other locations along Highway 97. The amendments are nice for screening, but said philosophically he is uncomfortable with expanding the number of solar gardens in town. Mayor Maefsky asked about the screening standards. Lubke explained the canvas screens are pictures of vegetation placed around the perimeter until the required vegetative screening fills in. Administrator Cammilleri added that as camouflage it mimics vegetation from a distance, and would be allowed for up to four years as a temporary solution to conceal the site from property and street views. December 21, 2021 Scandia City Council Page 6 of 10 Council member Ray noted the negative responses to DSES and how these are not fitting for Scandia, saying they are too large for the community. Lubke replied that they provide a source of funding and security for farms, and with the amendments the area can also be utilized to grow perennial crops which is a main reason for his proposal. Lubke said there were none at the public hearing who opposed it. The temporary screening may alleviate concerns, and going forward you shouldn't know a solar farm is there as it leaves a beautiful view shed. Lubke said a farmer could provide pasture plantings for sheep grazing; a more widespread program is to have sheep within the area which also helps soil quality. Perennial trees crops are also an option for harvesting. Lubke said he is working with the U of MN to develop and incorporate better green initiatives; for example, using nursery type plantings with improved native species. Council member Kronmiller asked how many lots could have potential solar gardens. Staff identified approximately 20 parcels within shoreland, but whether each one could hold a solar garden is questionable due to required setback standards, which could limit this to 3 to 4 areas, Lubke explained that the enhanced ordinance would not just benefit his property but have potential for a small number of others. Council member Kronmiller said that solar has a place but is concerned that Scandia has a lot of solar generation already, and doesn't want to see more because there are too many issues with them. Kronmiller said he would be more comfortable knowing the exact number of potential solar systems because approving these amendments could be opening the door to an unknown number. Staff noted that the ordinance amendment request could be tabled to allow time to gather this information. Maefsky, second by Kronmiller, moved to table the ordinance amendments to allow the applicant and staff to prepare a map of potential locations. Motion carried 5-0 by roll call vote. SCANDIA INTERNET ACTION COMMITTEE Scandia Internet Action Committee Chair Bob Wilmers reported that internet buildout for 2021 construction phase is substantially complete, and is being tested and certified. Future RDOF grant areas awarded to LTD Broadband have not yet obtained FCC approval for any of these areas. Midco has received approval from the FCC and will proceed in 2022 with their RDOF project in Scandia, adding 65 households. Washington County is preparing procedures for a grant program using federal funds for internet expansion within the county. More information is expected beginning in January. Wilmers presented the Committee's recommendation to the City Council to write a letter to Midco authorizing them to apply for a matching grant of $319,000 from the Washington County Broadband Fund for Scandia internet projects, saying equivalent letters have been sent in the past regarding the DEED program. Council member Kronmiller recommended clear language be stated to clarify speeds, costs, and services. December 21, 2021 Scandia City Council Page 7 of 10 Kronmiller, second by Ray, moved to authorize staff to prepare a letter to Midco with the following points: • Ask Midco to prepare a written project proposal for bringing high speed internet to a minimum of 250 locations in Scandia by the end of 2022; • The proposal should be brought back to the City Council for review and approval and should envision applying for some of the $2 million that Washington County has set aside for their Broadband Matching Funds program. • The proposal should clearly identify the project area with a map and a detailed list of the addresses to be served. • The proposal should also specify the highest speeds that will be offered; a cost breakdown for each of the three funding partners (Midco, Scandia, Washington County); and provide for post installation field verification of services delivered. Motion carried 5-0 by roll call vote. Council member Ray asked to get staff support for room setup and minute taking for the IAC, saying this is the only committee to not have this. Administrator Cammilleri said that staff availability is unsure but he will see what he can do. TOURISM COMMITTEE Mayor Maefsky reported that the Committee is raising contribution funds for an ice sculpture to be carved in February. ECONOMIC DEVELOPMENT AUTHORITY EDA President Benson reported on the December 13th meeting. A revised work plan will be presented to the Council at the January work session for consideration. The quarterly business breakfast held on December 15th was well attended. BUILDING OFFICIAL The November building activity report was received from Building Official Joel Hoistad. Last month 32 permits were issued at a valuation of $ $258,668. FIRE DEPARTMENT Fire Chief Hinz reported on the fire department's November activity. Last month the department responded to 18 calls; 2 fire, 15 medical, with 1 cancelled call. There has been a dramatic increase in calls this year. The roof replacement on the Firehall/Public Works building is complete, and Hinz is working with FEMA and updating estimates for the generator grant award. Approve Final Payment to Clearview Construction for Annex & Fire/Public Works Roof Replacement Benson, second by Kronmiller, moved to approve final payment to Clearview Construction in the amount of $59,256.50. Motion carried 5-0 by roll call vote. CITY ENGINEER Engineering Updates December 21, 2021 Scandia City Council Page 8 of 10 City Engineer Goodman provided monthly engineering updates. Final CMSCWD 2022-2031 Watershed Management Plan and Rule Revision responses to public comments were provided. Plans for the 2022 street project will be coming in January. DIRECTOR OF PUBLIC WORKS Public Works Director Charles Fischer provided a written report on the department's activities. Council member Kronmiller asked about sidewalk clearing. Administrator Cammilleri explained that the public works crew does snow clearing with the snowblower. Approve donation of park bench from Beverly Jellum in memory of Vernon Jellum Maefsky, second by Benson, moved to accept a monetary donation for the purchase of a memorial bench from Beverly Jellum. Motion carried 5-0 by roll call vote. Water Heater Replacement Staff received one quote to replace two water heaters in the Community Center. Kronmiller, second by Ray, moved to approve Dad's Plumbing and Heating quote of $6,400 to replace two water heaters in the Community Center. Motion carried 5-0 by roll call vote. Seasonal ice rink staffing Kronmiller, second by Cusick, moved to approve hiring Crystal Stignani as Seasonal Ice Rink Attendant at a rate of $13.50/hour. Motion carried 5-0 by roll call vote. CITY ADMINISTRATOR City Administrator Cammilleri reported on the contractor's progress for the update to development code project as 95% complete, as they are finalizing the last components to the draft code. A workshop will be held in January. There is a property in town asking for certificate of occupancy for construction done 15 years ago; staff is looking for a solution to this request. Staff has finished the submission of an application to get on the Project Priority List (PPL) for the Bliss Waste Water Treatment Project. RESOLUTION NO. 2021-56 ADOPTING THE 2022 CITYWIDE BUDGET Cammilleri recommended approval of the budget including that for the enterprise funds based on the proposed utility rates for next year. These can be amended in January if needed before the next billing goes out. Kronmiller, second by Ray, moved to approve Resolution No. 2021-56, Adopting the 2022 City -Wide Budget. Motion carried 5-0 by roll call vote. Staff clarified the budget does not include allocation of the American Rescue Plan funds. RESOLUTION NO. 2021-57 ADOPTING THE 2022 PROPERTY TAX LEVY Staff prepared a resolution adopting the 2022 property tax levy of $2,579,051, an increase of 2.68% over 2021. Kronmiller, second by Cusick, moved to approve Resolution 2021-57, Adopting the Final 2021 Levy Payable 2022. December 21, 2021 Scandia City Council Page 9 of 10 Shawn Collier, 19960 Maxwill Avenue, asked why American Rescue Plan funds are not included in the levy. Administrator Cammilleri explained that the federal dollars come with strict conditions and cannot offset revenues. Because the City has until 2024 to approve allocations, the Council has time to discuss future use of the funds. Collier noted the poor internet service at their residence and said a lot of money should be going to broadband expansion funding. Cammilleri said the funds cannot be used to offset the levy, but can offset expenses in a way that is conforming to Treasury rules. Council can choose where to allocate funds — staff is recommending it be used for a city utility to serve 111 customers. This doesn't mean the Council will allocate to this, but will revisit the discussion in January and include internet as an eligible expense. Collier asked what percentage amount did Scandia receive in CARES funds. Cammilleri said it was based on population and had to be allocated from the state. Collier said it should have been trickled down. Cammilleri said he will provide specific details to her. Collier asked if there can be any public input to the spending of the $442,000 ARP funds. Staff encouraged her to participate in any public meetings, specifically the January 5th Work Session where it is anticipated to be on the agenda. Maefsky called for a vote on the above motion. Motion carried 5-0 by roll call vote. CONSENT TO NOT WAIVE STATUTORY TORT LIABILITY LIMITS Staff recommended the City not waive the monetary limits on municipal tort liability established by Minn. Stat. § 466.04. Kronmiller, second by Ray, moved to not waive statutory tort liability limits. Motion carried 5-0 by roll call vote. ADOPT 2022 FEE SCHEDULE UPDATE TO THE CITY'S CODE OF ORDINANCES Administrator Cammilleri presented the 2022 update to city's fee schedule, having only an increase to utility rates: 10% for Big Marine Sewer users and 15% for Uptown Sewer users. Kronmiller, second by Benson, moved to adopt the 2022 fee schedule as presented. Motion carried 5-0 by roll call vote. APPROVE SUMMARY PUBLICATION OF THE 2022 FEE SCHEDULE (RESOLUTION NO. 2021-58) Kronmiller, second by Cusick, moved to approve Resolution No. 2021-58, Summary Publication of the 2022 Fee Schedule. Motion carried 5-0 by roll call vote. OPIOD SETTLEMENT Attorney Nelson summarized that $300 million will be coming to the state based on the settlement against opioid manufacturer and pharmaceutical distribution companies. The Attorney General's office is working on the allocation: 25% to state, 75% to local governments for treatment and prevention of opioid abuse. Cities with populations of 30,000 or more will receive direct funding, with Washington County receiving funding on behalf of its smaller cities. The December 21, 2021 Scandia City Council Page 10 of 10 League is asking for cities to sign on to a settlement agreement to submit to the Attorney General's office to endorse the allocation. Benson, second by Kronmiller, moved to adopt Resolution No. 2021-59, Approving the Memorandum of Agreement Between the State of Minnesota and Local Governments and Authorizing Participation in National Opioid Settlements, with an amendment to correct a reference in the resolution to Washington County. Motion carried 5-0 by roll call vote. DISCUSS COVID-19 OPERATIONAL PROCEDURES Administrator Cammilleri explained that the Mayor's emergency resolution from 2020 is still in effect and active. The Council has the ability to take meetings remotely if they choose to do so. The IAC has requested to conduct their meetings remotely, and either all committees must operate this way or not. It cannot be in part. Cammilleri advised the Council to either rescind the declaration or leave it in place. An alternative to utilize interaction television is an option that is eligible for use up to 3 times in calendar year under certain conditions. Because the States' declaration expired which allowed public meeting to be conducted remotely, Cammilleri explained that the local emergency declaration remains in effect and data is available back findings that it is in the best interest to conduct remote meetings. Attorney Nelson prepared a determination if it is the desire of the Council to meet remotely due to the pandemic. Kronmiller said that given where we are with the Covid situation, he is uncomfortable with in-person meetings and favors virtual meetings, adding that at least doing this in the short term to get through this present surge. Mayor Maefsky said that experts are expecting a surge after the holidays, and meetings should go remote for the next couple of months. Staff explained that the League's suggestion is to do all meetings virtual or none at all. Council member Cusick said it's important to allow people to attend meetings. Cammilleri explained that staff will be present to host participants at city hall. Corrections to the prepared document were noted. Kronmiller, second by Ray, moved to approve Mayor Mafesky's Determination Regarding Conducting Meetings by Telephone or Other Electronic Means Pursuant to Minnesota Statutes Section 13D.021 as corrected. Motion carried 3-2 by roll call vote, with Cusick and Benson opposed. Staff explained that going forward, all committee and council meetings will be virtual. ADJOURNMENT Ray, second by Benson, moved to adjourn the meeting. Motion carried 5-0 by roll call vote. The meeting adjourned at 9:50 p.m. Respectfully submitted, Brenda Eklund, City Clerk