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OPENPUBLICA · PUBLIC MEETING RECORD

Record of Proceedings

Waconia City Council Regular Meeting - February 19, 2026

City Council — Thursday, February 19, 2026

BodyWaconia, Minnesota

SessionCity Council

DateThursday, February 19, 2026

StatusFILED

Video Record

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Speaker numbers apply only to this recording.

Speaker 1

14:04

Good evening, everyone, and welcome to tonight's Wacony City Council meeting.

14:08

I apologize for the Thursday night meeting.

14:10

We normally meet on Mondays, but with the holiday, we kicked to Tuesday, and there's a couple of council members who couldn't make it on Tuesday, and Ash Wednesday was yesterday, so here we are on Thursday, but it's Thursday, February nineteenth.

14:21

Thanks for joining us, everyone.

14:26

If you could record that, please too.

15:00

Thank you.

15:01

All in favor.

15:02

Aye.

15:02

Opposed.

Speaker 2

15:03

Excellent.

Speaker 1

15:03

We have an agenda.

15:05

We do have a public hearing this evening, ladies and gentlemen.

15:08

And the public hearing is uh

Unassigned speaker

15:10

for

Speaker 1

15:10

a vacation of drainage and utility easement, Waterford 9th edition, outlaw A and Outlaw C.

15:16

Uh City Administrator Shane Finnerin will handle

Unassigned speaker

15:19

that.

Speaker 1

15:20

Good evening.

Speaker 3

15:21

Yes, uh Mr.

15:22

Mayor, members of the council, we have resolution 2026-045 before you, which is the vacation of drainage and utility easements identified for outlots A and Outlaw C in the Waterford 9th edition.

15:38

Uh development in the development agreement and negotiations with the city uh kind of at the initial development and preliminary plat stages uh required the developer to provide drainage and utility easements across uh all outlots that were kind of platted through these different phases.

15:55

And what that did is uh outlots are typically platted when uh in areas that aren't under imminent development but that have been approved as part of the preliminary plat, provide some security to the city to ensure that the future uh drainage and utility needs of the development and of the city are protected.

16:16

Um and this was kind of this is one way for us to do that.

16:20

And so as these uh phases have come in for development, uh one extra step that we've had to go through is this vacation of the drainage and utility easements over these platted outlots.

16:33

So if you look in your packet, later in the consent agenda, we have approval of the final plat for Waterford 10th.

16:40

Uh all the final drainage and utility easements based on the final plats uh to the benefit of the city are there.

Unassigned speaker

16:48

Speaker 3

16:48

the Waterford 10th edition uh meets and and confers with the preliminary plat approval that was initially had.

16:56

And so this is just kind of a cleanup item that we need to undertake, uh, but does require public hearing and then uh affirmative action on the resolution.

17:07

So again, uh this is a step that we've done multiple times in this development and also in others uh and is and is uh just really kind of performative at this point.

17:18

So with that with that, I would uh take any questions uh that the council might have, and then I would ask that the council open

Unassigned speaker

17:25

Speaker 3

17:25

a public hearing and take any public comment.

17:28

Uh to date, we have not received any uh written or oral public comment um and the public hearing has been noticed.

Unassigned speaker

17:36

And

Speaker 1

17:36

Mr.

17:37

Vinneran standard procedure, correct?

17:39

Yeah,

Speaker 3

17:39

this is yeah, especially in this development.

17:41

This has been a process that we followed in all the previous phases.

17:45

Uh excellent.

17:46

Yeah,

Speaker 1

17:46

thank you.

17:47

Council members, any questions for Mr.

17:48

Finneran?

Speaker 3

17:49

None

Speaker 4

17:49

of my end.

17:49

None.

17:50

Okay, nope.

Speaker 1

17:51

Could I then please have a motion to open up the public hearing this evening on the uh vacation of the drainage and utility easement, Waterford 9th edition outlaw A and Outlaw C.

18:00

So moved.

Speaker 2

18:00

Councilmember

Speaker 1

18:01

Green's, thank

Speaker 2

18:02

you very

Speaker 1

18:02

much.

18:02

Second, second by councilmember Siddons, all in favor.

18:05

Aye aye.

18:05

Excellent.

18:06

Public hearing is open.

18:07

If anyone would like to address the council regarding this item and this item only, you can do so now.

Discussion Breakdown — Share of Meeting

Procedural█████████████████████████████████████████41%

Engineering And Infrastructure██████████████████████████████████34%

Fiscal Sustainability██████████████████18%

Public Engagement████4%

Parks and Recreation███3%

Summary of Proceedings

Waconia City Council Regular Meeting - February 19, 2026

Mayor Tim Litfin called the meeting to order at 6:00 PM with all council members present. The agenda included a public hearing on a drainage easement vacation, an open forum with public comment on franchise fees, a consent agenda of 20 routine items, and two main business items: a site plan for GVT Tire & Auto and the adoption of multiple franchise fee ordinances after a year of discussion. Key votes on franchise fees passed 4-1, with the mayor opposing.

Consent Calendar

The consent agenda containing 20 items was approved unanimously with no items removed. Items included: approval of February 2, 2026 minutes; expenditure approvals; Safari Island and Ice Arena expenditures; a group fitness room sound system replacement contract with Farber Sound; group fitness small equipment replacement; well sealing contract; HVAC projects; a donation pass-through for Waconia Fire Relief Association; a small area plan for 801 Highway 284 with TC2; a Carver County CDA planning grant application; Waterford 10th Addition final plat; GIS software licensing agreement with Carver County; a Waconia Works loan for Springs Wellness Center; an inflow/infiltration grant application; calling a public hearing on fee schedule revisions; audio-visual equipment upgrade with ProVision; hire of a street maintenance worker; recruitment services authorization with David Drown & Associates; and a temporary on-sale liquor license for Waconia Lions.

Public Comments & Testimony

Public Hearing (Vacation of Drainage & Utility Easement): No public comments were received. The Planning Commission had voted 5-0 in favor.
Open Forum: Bernie Benz (528 Ravencroft Road) addressed the council for the third time regarding proposed franchise fees. He stated he and his neighbors are opposed, questioned whether any residents support the fees, noted that Xcel Energy bills already have many charges, and expressed concern that the proposed fee amounts had changed three times. He urged the council to identify specific projects through the budget process and consider placing the matter on a ballot for residents.

Discussion Items

1. Vacation of Drainage and Utility Easement – Waterford 9th Addition (Outlot A & C): City Administrator Shane Fineran explained that this vacation is necessary to allow replatting for Waterford 10th Addition. The developer, JMH Land Development Company, petitioned for the vacation. The public hearing was opened and closed with no comment, and Resolution 2026-045 was adopted unanimously (5-0).
2. Site Plan & Design Review – GVT Tire & Auto: Fineran presented a proposal by Axys Construction for a 6,640-square-foot motor vehicle repair garage at 401 13th Street East, a vacant city-owned parcel. The plan meets B-1 Highway Business District standards, includes required setbacks, sidewalks, and pedestrian connections. The Planning Commission approved 5-0 with conditions (rooftop mechanical screening to be addressed at building permit). The council adopted Resolution 2026-060 unanimously (5-0).
3. Franchise Agreement & Fee Ordinance Updates: Finance Director Nicole Meyer summarized that the city has three franchise holders (Xcel Energy, CenterPoint Energy, Minnesota Valley Electric Cooperative). The council had been discussing franchise fees for about a year, including a public hearing on December 22, 2025. The proposal includes a $5 per month per utility fee for residential customers, with revenue dedicated exclusively to mill & overlay street projects and park equipment replacements. Mayor Litfin stated his opposition, calling franchise fees a "hidden tax" and noting he had asked for the issue to be placed on a ballot, which was dismissed. He voted no on principle. Council Member Coleman argued in favor, stating the fee is the fairest and most affordable option compared to a nearly 20% property tax increase, spreads costs equitably to renters and tax-exempt entities, and generates stable revenue ($120/year per residential address vs. $145/year via property taxes for the average home). He also noted the mayor was unable to identify alternative budget savings. The council then voted on multiple ordinances and resolutions. Staff requested tabling the Minnesota Valley Electric Cooperative (MVEC) items due to outstanding construction issues unrelated to fees.

Key Outcomes

Resolution 2026-045 (Easement Vacation): Approved 5-0.
Resolution 2026-060 (GVT Tire & Auto Site Plan): Approved 5-0.
Franchise Fee Votes (all 4-1 with Mayor Litfin opposing):
- Ordinance 787 (CenterPoint gas franchise fee): Approved.
- Resolution 2026-032 (summary publication of Ordinance 787): Approved.
- Ordinance 788 (amending Xcel electric franchise code): Approved.
- Resolution 2026-033 (summary publication of Ordinance 788): Approved.
- Ordinance 789 (Xcel electric franchise fee implementation): Approved.
- Resolution 2026-034 (summary publication of Ordinance 789): Approved.
- Ordinance 790 (MVEC franchise agreement) and Resolution 2026-035: Tabled to March 16, 2026 meeting (unanimous 5-0).
- Ordinance 791 (MVEC electric franchise fee implementation): Approved.
- Resolution 2026-036 (summary publication of Ordinance 791): Approved.
Residential customers will be charged $5/month per utility (gas and electric) for franchise fees, with funds restricted to street mill & overlay and park equipment replacement.
Mayor Litfin provided a report on recent activities, including attending a Chamber Coffee, recording Mayor's Minutes, participating in Transportation Day at the Capitol to advocate for Highway 5 frontage road funding, and noting improvements at Safari Island Community Center (new sound system and fitness equipment).

Meeting Transcript

Good evening, everyone, and welcome to tonight's Wacony City Council meeting. I apologize for the Thursday night meeting. We normally meet on Mondays, but with the holiday, we kicked to Tuesday, and there's a couple of council members who couldn't make it on Tuesday, and Ash Wednesday was yesterday, so here we are on Thursday, but it's Thursday, February nineteenth. Thanks for joining us, everyone. If you could record that, please too. Thank you. All in favor. Aye. Opposed. Excellent. We have an agenda. We do have a public hearing this evening, ladies and gentlemen. And the public hearing is uh for a vacation of drainage and utility easement, Waterford 9th edition, outlaw A and Outlaw C. Uh City Administrator Shane Finnerin will handle that. Good evening. Yes, uh Mr. Mayor, members of the council, we have resolution 2026-045 before you, which is the vacation of drainage and utility easements identified for outlots A and Outlaw C in the Waterford 9th edition. Uh development in the development agreement and negotiations with the city uh kind of at the initial development and preliminary plat stages uh required the developer to provide drainage and utility easements across uh all outlots that were kind of platted through these different phases. And what that did is uh outlots are typically platted when uh in areas that aren't under imminent development but that have been approved as part of the preliminary plat, provide some security to the city to ensure that the future uh drainage and utility needs of the development and of the city are protected. Um and this was kind of this is one way for us to do that. And so as these uh phases have come in for development, uh one extra step that we've had to go through is this vacation of the drainage and utility easements over these platted outlots. So if you look in your packet, later in the consent agenda, we have approval of the final plat for Waterford 10th. Uh all the final drainage and utility easements based on the final plats uh to the benefit of the city are there. Uh the Waterford 10th edition uh meets and and confers with the preliminary plat approval that was initially had. And so this is just kind of a cleanup item that we need to undertake, uh, but does require public hearing and then uh affirmative action on the resolution. So again, uh this is a step that we've done multiple times in this development and also in others uh and is and is uh just really kind of performative at this point. So with that with that, I would uh take any questions uh that the council might have, and then I would ask that the council open up a public hearing and take any public comment. Uh to date, we have not received any uh written or oral public comment um and the public hearing has been noticed. And Mr. Vinneran standard procedure, correct? Yeah, this is yeah, especially in this development. This has been a process that we followed in all the previous phases. Uh excellent. Yeah, thank you. Council members, any questions for Mr. Finneran? None of my end. None. Okay, nope. Could I then please have a motion to open up the public hearing this evening on the uh vacation of the drainage and utility easement, Waterford 9th edition outlaw A and Outlaw C.

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Waconia City Council Regular Meeting - February 19, 2026

Consent Calendar

The consent agenda containing 20 items was approved unanimously with no items removed. Items included: approval of February 2, 2026 minutes; expenditure approvals; Safari Island and Ice Arena expenditures; a group fitness room sound system replacement contract with Farber Sound; group fitness small equipment replacement; well sealing contract; HVAC projects; a donation pass-through for Waconia Fire Relief Association; a small area plan for 801 Highway 284 with TC2; a Carver County CDA planning grant application; Waterford 10th Addition final plat; GIS software licensing agreement with Carver County; a Waconia Works loan for Springs Wellness Center; an inflow/infiltration grant application; calling a public hearing on fee schedule revisions; audio-visual equipment upgrade with ProVision; hire of a street maintenance worker; recruitment services authorization with David Drown & Associates; and a temporary on-sale liquor license for Waconia Lions.

Public Comments & Testimony

Public Hearing (Vacation of Drainage & Utility Easement): No public comments were received. The Planning Commission had voted 5-0 in favor.

Open Forum: Bernie Benz (528 Ravencroft Road) addressed the council for the third time regarding proposed franchise fees. He stated he and his neighbors are opposed, questioned whether any residents support the fees, noted that Xcel Energy bills already have many charges, and expressed concern that the proposed fee amounts had changed three times. He urged the council to identify specific projects through the budget process and consider placing the matter on a ballot for residents.

Discussion Items

1. Vacation of Drainage and Utility Easement – Waterford 9th Addition (Outlot A & C): City Administrator Shane Fineran explained that this vacation is necessary to allow replatting for Waterford 10th Addition. The developer, JMH Land Development Company, petitioned for the vacation. The public hearing was opened and closed with no comment, and Resolution 2026-045 was adopted unanimously (5-0).

2. Site Plan & Design Review – GVT Tire & Auto: Fineran presented a proposal by Axys Construction for a 6,640-square-foot motor vehicle repair garage at 401 13th Street East, a vacant city-owned parcel. The plan meets B-1 Highway Business District standards, includes required setbacks, sidewalks, and pedestrian connections. The Planning Commission approved 5-0 with conditions (rooftop mechanical screening to be addressed at building permit). The council adopted Resolution 2026-060 unanimously (5-0).

3. Franchise Agreement & Fee Ordinance Updates: Finance Director Nicole Meyer summarized that the city has three franchise holders (Xcel Energy, CenterPoint Energy, Minnesota Valley Electric Cooperative). The council had been discussing franchise fees for about a year, including a public hearing on December 22, 2025. The proposal includes a $5 per month per utility fee for residential customers, with revenue dedicated exclusively to mill & overlay street projects and park equipment replacements. Mayor Litfin stated his opposition, calling franchise fees a "hidden tax" and noting he had asked for the issue to be placed on a ballot, which was dismissed. He voted no on principle. Council Member Coleman argued in favor, stating the fee is the fairest and most affordable option compared to a nearly 20% property tax increase, spreads costs equitably to renters and tax-exempt entities, and generates stable revenue ($120/year per residential address vs. $145/year via property taxes for the average home). He also noted the mayor was unable to identify alternative budget savings. The council then voted on multiple ordinances and resolutions. Staff requested tabling the Minnesota Valley Electric Cooperative (MVEC) items due to outstanding construction issues unrelated to fees.

Key Outcomes

Resolution 2026-045 (Easement Vacation): Approved 5-0.

Resolution 2026-060 (GVT Tire & Auto Site Plan): Approved 5-0.

Franchise Fee Votes (all 4-1 with Mayor Litfin opposing):

Ordinance 787 (CenterPoint gas franchise fee): Approved.
Resolution 2026-032 (summary publication of Ordinance 787): Approved.
Ordinance 788 (amending Xcel electric franchise code): Approved.
Resolution 2026-033 (summary publication of Ordinance 788): Approved.
Ordinance 789 (Xcel electric franchise fee implementation): Approved.
Resolution 2026-034 (summary publication of Ordinance 789): Approved.
Ordinance 790 (MVEC franchise agreement) and Resolution 2026-035: Tabled to March 16, 2026 meeting (unanimous 5-0).
Ordinance 791 (MVEC electric franchise fee implementation): Approved.
Resolution 2026-036 (summary publication of Ordinance 791): Approved.

Residential customers will be charged $5/month per utility (gas and electric) for franchise fees, with funds restricted to street mill & overlay and park equipment replacement.

Mayor Litfin provided a report on recent activities, including attending a Chamber Coffee, recording Mayor's Minutes, participating in Transportation Day at the Capitol to advocate for Highway 5 frontage road funding, and noting improvements at Safari Island Community Center (new sound system and fitness equipment).

Meeting Transcript