Waconia City Council Regular Meeting - June 1, 2026

The Waconia City Council held its regular meeting on Monday, June 1, 2026, at 6:00 PM, adjourning at 7:45 PM. Key actions included a public hearing and ordering improvements for the 5th Street Reconstruction Project, approval of plans and specifications for Water Treatment Plant No. 4, adoption of a consent agenda with ten routine items, and staff reports on short-term rentals, election updates, and police activity. All votes were unanimous (5-0).

Consent Calendar

• Approved the May 18, 2026, City Council minutes.
• Approved June 1, 2026, expenditures.
• Approved Downtown Reconstruction Phase 4 contractor pay request to GMH Asphalt Corporation.
• Adopted Resolution No. 2026-133 approving Change Order No. 1 for Downtown Reconstruction Phase 4 (City Square Park electrical improvements).
• Adopted Resolution No. 2026-134 approving the Development Agreement for Waterford 10th Addition (JMH Land Development Company, LLC).
• Adopted Resolution No. 2026-135 approving Elm Creek Ridge 1st and 2nd Addition Final Plats (Elm Creek Ridge, LLC).
• Adopted Resolution No. 2026-136 approving the revised Development Agreement for Elm Creek Ridge.
• Adopted Resolution No. 2026-137 approving a permanent utility easement to Song River Holdings, LLC.
• Adopted Resolution No. 2026-138 closing Debt Fund No. 304 and authorizing transfer to PIR Capital Project Fund No. 103.
• Adopted Resolution No. 2026-139 accepting cash donations for Fire Department operations.

Public Comments & Testimony

• Kurt Sieberg (501 Olive Street South) opposed special assessments, arguing the funding mechanism unfairly burdens property owners and that the project primarily benefits commercial development. He questioned the need for full curb replacement.
• Leland Otto (509 and 441 Pine Street South) stated 5th Street needs only maintenance and seal coating, not reconstruction. He questioned replacing water and sewer infrastructure that has not failed and expressed concern about assessment costs.
• Philip Graffunder (440 Elm Street South) opposed the project, advocating for maintenance instead of reconstruction. He suggested greater speed enforcement, opposed property acquisition for widening, questioned sidewalk necessity, and expressed concerns about the pace of Highway 5 construction.
• Charles Schmakel (156 5th Street) noted no major street improvements since 1972. He expressed concern about closing the Highway 5 access at 5th Street and hoped assessments would not force residents from their homes.
• Douglas Haran (1606 Gale Lane) asked about the potential range of changes to preliminary assessments.

City Engineer Jake Saulsbury responded that assessments on recent projects have typically decreased by 10-15% from feasibility study estimates. City Administrator Shane Fineran added that a third-party Special Benefit Evaluation is conducted, and the final assessment is the lower of the policy-based amount or the benefit determination. In recent projects, final single-family home assessments averaged approximately $8,500.

Discussion Items

• 5th Street Reconstruction Project (Presented by Jake Saulsbury, City Engineer)
  • Project areas: 5th Street between Olive and Orange streets, Elm Street South between 5th Street and Highway 5, and Pine Street South between 5th Street and Highway 5.
  • Estimated project cost: $3,827,000 (street/storm sewer: $2,576,000; sanitary sewer: $551,000; water system: $700,000 fully funded by MnDOT due to coordination with Highway 5 Phase 2).
  • Financing sources include bond proceeds, special assessments, utility funds, the Pavement Improvement and Replacement Fund, and Highway 5 grant funds (approximately $12 million total: $7 million Metropolitan Council Regional Solicitation, $5 million Transportation Economic Development Fund).
  • Preliminary special assessments: $265.74 per front foot for street/storm, $6,686 per unit for sanitary sewer. Assessments will be recalculated after final design and benefit evaluation.
  • Timeline: Design completion summer 2026, bid fall 2026, construction 2027, final assessment hearing fall 2027, project closeout 2028.
  • Advantages of coordinating with Highway 5: approximately $700,000 water main cost fully funded by MnDOT, stormwater treatment savings, and lower bid prices due to economy of scale; total savings estimated near $1,000,000.
  • Public Services Director Jon Haukaas clarified that new sidewalk is only on Elm Street to connect to the Highway 5 trail, water main sizing (8-inch) is standard for looped systems, not for future development, and the project addresses drainage issues.
• Water Treatment Plant No. 4 (Presented by Kevin Young, SEH Incorporated consultant)
  • Project addresses long-term water treatment capacity and regulatory compliance; plant must be operational by November 2028.
  • Site: 15-acre parcel east of Little Avenue, south of County Road 10/Engler Blvd. A new road with utilities will serve as future business park entrance.
  • Facilities: water treatment plant (matching aesthetic of public services building), an oversized two-stall garage, and an alternate for a 20,000-square-foot cold storage building for seasonal vehicle parking.
  • Total probable cost: $35,041,000 (base bid ~$27 million, cold storage alternate ~$4 million, plus contingency, engineering, geotechnical, materials, and administrative costs).
  • Schedule: Bid opening June/July 2026, contract award target August 3, 2026, construction start September 2026, completion summer 2028.
  • City Administrator Fineran noted Waconia’s groundwater is not impacted by PFAS, avoiding additional treatment costs.
• Regulation of Short-Term Rentals (Staff report by Shane Fineran)
  • Current regulations: rental licensing and inspection program (life safety), lodging tax collection (3% city tax), and state lodging license requirement. Bed-and-breakfasts regulated separately via Conditional Use Permit.
  • Staff review identified approximately 13 short-term rentals operating in Waconia. Of those, nine appeared to have valid rental licenses, two regularly remit lodging taxes to the city, and none have obtained a state lodging license.
  • Council Member Siddons raised awareness of growing short-term rental activity and resident complaints about noise, traffic, and parking. Mayor Litfin requested the topic be brought to a future work session for further evaluation.
  • Sergeant Howard reported zero calls for service related to short-term rentals in Waconia.
• Election Update (Staff report by Jackie Schulze, Assistant City Administrator)
  • Candidate filing: July 14–28, 2026 (earlier than previous years). Primary: August 11, 2026. General: November 3, 2026.
  • Waconia is the only Carver County city offering in-person absentee voting. A new state law allows opting into an 18-day early voting period (instead of 46-day absentee), where ballots are directly tabulated. Approximately 85% of early voters in the last election used the final 18 days.
  • Extended early voting hours: Saturday, Oct 24; Tuesday, Oct 27 (until 7 PM); Saturday, Oct 31; Sunday, Nov 1; Monday, Nov 2, 2026.
• Police Report (Sergeant Howard)
  • May 2026 offenses: 30 total (down from 65 in May 2025). Theft-related incidents significantly decreased; residents reminded to lock vehicles.
  • 57 traffic citations issued in May, including e-bike enforcement. E-bike riders must be at least 15 years old; citations issued for violations.
  • Reminder: schools out, children walking/biking; motorists urged to drive cautiously.
• Mayor’s Report
  • Recognized Waconia Marching Band Director Nick Hansbury and student leaders for a Mayor’s Minute.
  • Attended three ribbon cuttings: The Wilford building, Lakeview Clinic expansion, and Three Bears indoor playground.
  • Thanked American Legion Post 150 for Memorial Day observance.

Key Outcomes

• Ordered Improvements for 5th Street Reconstruction Project: Adopted Resolution No. 2026-140 by a four-fifths vote (5-0) as required by state statute. This authorizes final design and preparation of plans.
• Accepted Plans and Authorized Bids for Water Treatment Plant No. 4: Adopted Resolution No. 2026-141 (5-0) to accept plans and specifications and advertise for bids.
• Consent Agenda Adopted (5-0).
• Future Direction on Short-Term Rentals: Council directed staff to bring options for additional regulation to a future work session; current enforcement of existing codes will be pursued.
• Announcements: Summer Music Series begins June 4; open house on June 2 for the former UFC site (801 Highway 284) to discuss small area plan concepts.