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02-02-2022 Work SessionFebruary 2, 2022 A work session meeting of the Scandia City Council was held on the above date with modifications. Due to the health advisory issued by the State regarding the COVID-19 outbreak, to avoid public gatherings and limit social contact, the meeting was conducted over an electronic platform. All council members and staff who joined the meeting remotely could hear each other and contribute to discussions. City Administrator Cammilleri and City Clerk Eklund were present at City Hall. Cammilleri was the presenter and displayed the meeting materials for participants to view on their remote screens. The Scandia Community Center was open to the public for participation to the meeting. Mayor Christine Maefsky called the meeting to order at 6:30 p.m. The following were participants to the meeting: Council members Heather Benson, Jerry Cusick, Steve Kronmiller, Patti Ray and Mayor Christine Maefsky. Staff participating: City Administrator Ken Cammilleri, City Attorney Chris Nelson, and City Clerk Brenda Eklund. DISCUSSION ON CONFLICT-OF-INTEREST MEMO FROM CITY ATTORNEY Attorney Nelson explained a memo he prepared for the Council on the topic of conflict of interest, a discussion point brought up after a vote on allocation of ARPA funds to the Big Marine Sewer Project taken at the January 5th work session. Statutory laws establish and define contractual conflicts of interest, with the vote on allocation of ARPA funds being noncontractual, and not a direct interest of a council member but rather a budgetary decision. Nelson advised that based on his review, it would be difficult to prove that the council member gained a private, personal direct financial benefit. Noncontractual conflicts of interest are difficult to prove, but should be avoided by abstaining if there is any appearance of a conflict of interest. Council member Benson questioned if the vote should be taken up again. Benson noted that even if Kronmiller had recused himself on the first vote which failed 2-3, to allocate ARPA funds as half to sewer and half to internet, it would have still failed with a 2-2 tie. Benson stated that she wasn't aware that there was a member of the council on the Big Marine Sewer System, and that it is not super clear that this voting member has a conflict of interest but there is a perception by the public of impropriety. A council member's action to recuse themselves should be decided by the member with consideration of the public's point of view. Benson said she has concerns that Kronmiller could directly benefit by not paying for a portion of the project. Council member Kronmiller said that he reached out to Administrator Cammilleri and asked if his vote would be a conflict, saying he's here to protect the community and not for his own interests. The failing Bliss System is on the other side of the lake from his system, and he does not receive any direct benefit from funding the sewer project. Internet expansion and road projects are the sorts of things as appropriate funding decisions for where it is needed, and sometimes council members live in these places. Kronmiller said his decision is based on helping the community, and was told it is routine practice for council to vote on infrastructure. Kronmiller said it appears to have become a major issue when someone is on other side of the vote. Council member Ray said she reached out to the City Attorney on behalf of her constituents who questioned the vote. Ray said the MN League of Cities has recommendations on conflicts of February 2, 2022 Scandia City Council Work Session Page 2 of 4 interest — disclose any interest, consult legal staff, do not influence others, do not participate in discussion, do not vote. Ray said the council must all be mindful, and that this is a learning experience to do things better in the future. Ray said it's up to each one individually to make that call in the best interest of the council and the community. Mayor Maefsky said this has been a good discussion, and in the future to be more mindful of voting for things that can benefit an individual in any way. They should look closely at the issue being voted on and consult the City Attorney. Benson said she appreciates Kronmiller's comments, but an extra layer of caution should be involved when talking about financial benefits. Kronmiller said internet and roads are direct financial benefits as these increase property values. In this case, the Bliss Sewer needs repairs and that it does not directly serve his house. Ray said that no one on the council has benefitted from internet, and stated that she recused herself from the vote on the Melanie Trail road project. Administrator Cammilleri said that initially he felt there was no conflict of interest in Kronmiller's vote, and it is not uncommon for a government body to vote on benefits to an area of the community; sometimes a council member resides there. But if there is any perception of a conflict of interest, these is no harm in abstaining and to consult with the attorney if there are any questions. DISCUSSION ON ROLES OF COMMITTEES AND CITY ADMINISTRATOR Mayor Maefsky stated that the Council needs to be clear about lines of communication between administration and committees of the city. The council should be more definitive about the role of committees reporting to the administrator. Council member Ray had questions about committee pay, staff support, regular scheduling of committee meetings, and the role of council liaisons. Mayor Maefsky directed staff to write up the criteria addressing these questions for further discussion at a future meeting. Regarding the administrator's role in communication, Council member Kronmiller said that Cammilleri should be the representative of the city to other groups and agencies, and to work through him for communications because the administrator should be involved. Kronmiller said it is his understanding that the administrator runs the city and the council is the supporting staff. Maefsky said this may not always be the case, such as with the Tourism Committee, but Cammilleri should be notified about any discussions. Cammilleri agreed that it is helpful to at least be informed so he can be assistive and supportive. Cammilleri said he has no objections to council communications to others, but it is good practice for policy decisions to be discussed at public meetings. DISCUSSION ON DECISION MAKING AT WORK SESSION MEETINGS Attorney Nelson stated that there was concern raised on whether voting at work session meetings is a violation. He said the practice is uncommon and that work sessions are used as more of a February 2, 2022 Scandia City Council Work Session Page 3 of 4 discussion time and for vetting issues. Scandia has a history to treat work sessions as a second council meeting; in effect as regular meetings. Scandia's City Code says a vote can be held at any meeting there is a quorum, which corresponds with the practice. Based on his review of code and statutes, there is not a concern in this instance — the work sessions have been adopted as meetings, but use the terminology as work sessions. If votes are held or considered, notice should be given on the agenda and within the meeting packet that votes will occur. Nelson said this is his suggestion moving forward, to include for clarity to the public in response to concerns of the vote on ARPA funds taken at the January 5th Work Session, in which the agenda defined the topic as a discussion. Council member Ray explained that this is her concern — she wasn't prepared for a vote to be taken at the work session, and the public was not informed that a vote would be taken. Ray said the council should revote, as the public in attendance was not sure if they could speak without there being a public forum. Administrator Cammilleri explained that Council work sessions originally developed as a bow out from joint Planning Commission meetings and became a traditional work session. The past administrator began to put business items onto the agenda, and this has carried forward. Cammilleri stated that the Council always has discretion to call a public hearing on any issue. Council member Benson said that residents are spending a lot of time talking about the past practice, and with this vote people are upset. Benson said she understood this was the attorney's recommendation and the vote confirmation would be on the next agenda. Cammilleri advised that if the council wants to have another vote on this, they certainly can refer to Roberts Rules of Order to introduce the motion. Mayor Maefsky said she disagrees with Nelson's recommendation. Maefsky gave examples of funding decisions having been voted on at work sessions. Benson noted that no one raised concerns over those past votes as has been done in the vote for ARPA funds. Maefsky said the agendas will articulate this going forward. Administrator Cammilleri stated that on the staff level, it will be clarified that decisions may potentially be made at a work session. Nelson said there are plenty of options to address the concern raised, such as to re -organize the work session to be a true work session, a brief work session with a shorter council meeting following, or converted to a second council meeting. Speaker Shawn Collier, 19960 Maxwill Avenue: Stated she didn't know there would be any vote on ARPA funds at the January 5th meeting. There were petitions in the meeting packet advocating use of the ARPA funds for the sewer project. Collier said she got the message out that the ARPA funds were being discussed, and that there is something wrong if that is the form of communication to residents in the community. Anne Myre, 19111 Larkspur Avenue: Stated there were questions about the petition. She called residents and added their names to the petition and did not go door-to-door because of the cold temperatures. February 2, 2022 Scandia City Council Work Session Page 4 of 4 Jeff Dahlberg, 19151 Layton Avenue: Presented cost numbers of other sewer bills in the area. Scandia's rates are substantially higher. Explained the history of the 201 sewer system initiated from Washington County to support effects of lake flooding. It was handed to the Township with no help or support. He provided a statement from the Big Marine Lake Association to use the federal funds to protect the lake and watersheds around it. DISCUSSION ON EDA WORK PLAN Council member Benson presented the EDA's work plan and explained that it will be adopted at their next meeting unless the Council wants to make any additions or corrections, or has any objections. Administrator Cammilleri asked if the Council would like to see a focus on any particular program. Benson said she would like to prioritize an evaluation of the fagade improvement program, as the funds are not being utilized and could be designated for other areas. Mayor Maefsky said she would like to study the work plan more closely and talk about priorities at the next work session. ADJOURNMENT Benson second by Cusick, moved to adjourn the meeting. Motion carried 5-0 by roll call vote. The meeting adjourned at 7:58 p.m. Respectfully submitted, Brenda Eklund City Clerk