Waconia City Council Regular Meeting - January 20, 2026

The Waconia City Council met in regular session on Tuesday, January 20, 2026, at 6:00 p.m. Mayor Tim Litfin presided; Council Member Nick Gleason was absent. The Council adopted the consent agenda with one item pulled, swore in new firefighters and a fire captain, debated proposed franchise fees, and acted on downtown reconstruction, eminent domain, special event policy, and capital equipment purchases. The regular meeting adjourned at 7:30 p.m.

Consent Calendar

• Adopted the January 20, 2026 agenda as published; motion by Council Member Coleman, seconded by Council Member Grengs.
• Approved the consent agenda after Mayor Litfin requested removal of item 8.7, Capital Equipment 2026; motion by Council Member Coleman, seconded by Council Member Siddons. The approved consent agenda included: January 5, 2026 Council minutes; January 20, 2026 expenditures; Safari Island Community Center and Ice Arena expenditures from Sports Facilities Companies for December 2025; acceptance of Fire Department cash donations (Resolution 2026-024); TH5 Phase 2 Change Order 3 to the geotechnical exploration contract (Resolution 2026-025); fire alarm panel upgrades (Resolution 2026-027); acceptance of Minnesota Department of Health Source Water Protection Plan Grant proceeds (Resolution 2026-028); the Paid Family Medical Leave Policy (Resolution 2026-029); approval of probationary firefighters to active status (Resolution 2026-030); and the Frunge special event permit (Resolution 2026-031).

Public Comments & Testimony

• Bernie Benz, 528 Ravencroft Road, spoke in opposition to the proposed franchise fees. He questioned how funds would be distributed by Xcel Energy and CenterPoint Energy, who would be accountable for oversight, and expressed concern that the system could be susceptible to fraud. He stated he did not believe the City would administer the fees appropriately and reiterated his opposition.

Community Interest Presentation

• Margaret Donahue and Randy Malucknik of the Southwest Corridor Transportation Coalition updated the Council. They described the Coalition as a nonprofit of local governments, businesses, and community organizations advocating for improved safety and mobility along Highway 212 and Highway 5, with a record of pooling funding sources for local projects. They noted the Coalition continues to advocate for $5 million to complete the frontage road component in 2027, and that the project is about 75% funded for a complete delivery. They also discussed future projects and the 2026 capital bonding bill.

Discussion Items

New Officer and Firefighter Badge Pinning / Swearing-In Ceremony

• Fire Chief Justin Sorensen introduced firefighters promoted to active status: Carter Borg, Simon Malinski (unable to attend), Michael Coughlin, Luke Meyer, Adam Vanderbeek, and Jackson Rauchwarter. Mayor Litfin led the departmental pledge, and badges were presented.
• Chief Sorensen also announced the promotion of Jake Nelson from firefighter to captain. Mayor Litfin administered the oath of office to Captain Nelson.

Franchise Agreement & Fee Ordinance Updates

• Finance Director Nicole Meyer and City Administrator Shane Fineran presented Ordinances 787-791 and supporting summary publication resolutions regarding franchise fees with CenterPoint Energy, Xcel Energy, and Minnesota Valley Electric Cooperative. Staff stated the fees would be dedicated to pavement rehabilitation and playground equipment replacement, and changes to the fee or its use would require a 4/5 Council vote. Council Member Siddons confirmed May 1, 2026, was the targeted effective date, and that delaying the fees would require reviewing or delaying current capital projects.
• Council Member Coleman asked about the benefit of franchise fees versus property taxes. Ms. Meyer stated the franchise fee would cost an average-valued home about $120 annually, compared with about $145 annually through a property tax increase.
• Mayor Litfin opposed the franchise fees, calling them hidden fees embedded in utility bills, and argued the decision should be placed on the ballot for voters. He cited resident opposition, a 2025 Waconia Public Schools referendum as a transparency model, historical property tax increases (14.41% in 2023, 10.36% in 2024, 6.8% in 2025, and 4.63% in 2026), Xcel Energy's announced 8.2% rate increase, and broader state budget concerns.
• Council Member Siddons said the Council had previously agreed to move forward with franchise fees; Mayor Litfin disagreed. Council Member Coleman proposed tabling the item so the Mayor could identify budget cuts. The Council voted to add franchise fees to the February 2, 2026 work session and to bring the item back for a vote at the February 17, 2026 regular meeting. The motion carried.

2026 Downtown Reconstruction Phase 4

• Public Services Director Jon Haukaas requested approval of final plans and authorization to advertise for bids for Downtown Reconstruction Phase 4. He described outreach to impacted properties, relocation of banner poles, and design adjustments to protect trees, including moving the north curb line of 2nd Street approximately two feet south.
• Council Member Grengs asked about traffic flow and school bus drop-off/pickup safety. Staff stated the street width would function similarly to current conditions while sidewalk width would increase from 6 feet to 8 feet. Mayor Litfin and former Council Member Steve Yetzer, 332 West 4th Street, objected to the wider sidewalk near St. Joseph's Church/School, citing tree health and the school's preference to keep the existing sidewalk.
• A motion to table the item failed due to lack of a second. The Council adopted Resolution 2026-037 authorizing solicitation of bids for the 2026 Downtown Reconstruction Phase 4 and directing staff to provide an alternate bid addendum for future approval regarding sidewalk widths. Construction is anticipated to start on May 4, 2026, and finish by the end of October. The motion carried 4-0.

Authorize Eminent Domain Proceedings for TH5 Phase 2

• Mr. Haukaas requested authorization to commence eminent domain proceedings for property needed for the Trunk Highway 5 Phase 2 Corridor Improvement Project. He stated the project is at 60% design layout review, approaching 90% completion, and requires additional easements and right-of-way. Because the project includes federal funds, acquisitions must comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. Not all voluntary agreements are in place, and contested court proceedings could take 12-18 months.
• The Council adopted Resolution 2026-038 authorizing the commencement of eminent domain proceedings. The motion by Council Member Siddons, seconded by Council Member Grengs, carried 4-0.

Special Event Permit Policy Update

• City Administrator Fineran presented the updated Special Event Policy and fee schedule. The city will assume responsibility for notifying impacted property owners of adjacent street or parking lot closures; applicants will still post signs along closed routes. The permit fee will increase from $100 to $350. Fees were also added for parking impacts: $1 per stall per event for public parking lot closures, capped at $250 per event, and $3 per stall per event for marked on-street parking closures, capped at $500 per event.
• Council Member Coleman, citing experience as an event organizer, supported the update while noting the fees put Waconia on the higher end. The motion by Council Member Grengs, seconded by Council Member Coleman, carried 4-0.

Items Removed from Consent Agenda

• Mayor Litfin pulled Capital Equipment 2026 for public awareness. Mr. Haukaas explained the proposed purchases: a regenerative air sweeper from the storm water fund, a 16-foot wing mower from the general fund, and a gate valve exerciser from the water fund. Purchases will use state cooperative purchasing programs and Sourcewell, with final purchase costs to come back to the Council. He noted one trailer-mounted valve exerciser/vacuum unit was a demo unit available at about 20% savings.
• The Council adopted Resolution 2026-026 authorizing staff to solicit pricing for 2026 capital equipment acquisitions. The motion by Council Member Siddons, seconded by Council Member Grengs, carried 4-0.

Board Reports & Announcements

• Mayor Litfin reported that on January 6 he interviewed Mark Anderson about the Waconia Polar Plunge, scheduled for February 14; the next Mayor Is In Session will be February 4; the Downtown Reconstruction Phase 4 open house was held January 7; the Mayor's Youth Advisory Council is preparing a Waconia +30 April Challenge event for Earth Day, April 22; and Lola's series of runs is scheduled for May 2, with 488 registrations reported. Other Council members had nothing to report, and Council Member Gleason was absent.

Key Outcomes

• Approved the consent agenda with Capital Equipment 2026 removed for separate consideration.
• Swore in six firefighters to active status and promoted/swore in Captain Jake Nelson.
• Tabled franchise fee ordinances and related resolutions to the February 2, 2026 work session and the February 17, 2026 regular meeting.
• Authorized bidding for the 2026 Downtown Reconstruction Phase 4 through Resolution 2026-037, with an alternate bid addendum on sidewalk widths.
• Authorized eminent domain proceedings for TH5 Phase 2 through Resolution 2026-038.
• Approved the updated Special Event Policy and associated fees.
• Authorized staff to solicit 2026 capital equipment pricing through Resolution 2026-026.