Waconia City Council Regular Meeting - September 21, 2026

The Waconia City Council met in regular session on Monday, September 21, 2026, at 6:00 p.m. Mayor Tim Litfin presided; Councilmember Nick Gleason was absent, and Councilmembers Jeff Grengs, Jacob Coleman, and Derek Siddons were present. The Council held a public hearing on the 2027 Sugarbush Neighborhood Street Reconstruction Project, adopted the 2027 preliminary property tax levy, approved two variances and a shoreland overlay ordinance amendment, and approved a 16-item consent agenda. The meeting adjourned at 7:45 p.m.

Consent Calendar

• Approved the September 8, 2026, Council minutes and the September 21, 2026, expenditures.
• Approved Safari Island Community Center and Ice Arena expenditures from Sports Facilities Companies incurred in August 2026.
• Approved contractor pay requests: 2026 Mill and Overlay Pay Request No. 1 to WM. Mueller and Sons Inc.; CMP Culvert Lining Pay Request No. 1-Final to Insituform Technologies USA, LLC; and Island View Estates Park Pay Estimate No. 2 to NW Asphalt Inc.
• Adopted Resolution No. 2026-207 authorizing battery backup for city-owned traffic signals at Oak Avenue and Community Drive, Waconia Parkway South and Oak Avenue, and Main Street East and Vista Boulevard.
• Adopted Resolution No. 2026-208 approving the pedestrian crossing beacon project contract at Oak Avenue and Sparrow Road.
• Adopted Resolution No. 2026-209 calling a public hearing on certification of delinquent utility and other charges for payment with 2027 taxes.
• Adopted Resolution No. 2026-210 approving the Woodland Trail Development Agreement with Tamarack Land - Woodland Trail, LLC.
• Adopted Resolution No. 2026-211 reappointing Firefighter Ivan Flores.
• Approved the contract for the Recreation Facility Feasibility Study.
• Adopted Resolution No. 2026-212 accepting a property donation.
• Adopted Resolutions No. 2026-213 and 2026-214 approving special event permits for the Waconia High School Homecoming Parade and the Paws Inn Pet Parade.
• The consent agenda was approved 4-0 by one motion, with no items removed.

Public Hearing - 2027 Sugarbush Neighborhood Street Reconstruction Project

Jake Saulsbury of Bolton and Menk, consultant city engineer, presented the proposed project with Colton Lee and Public Services Director Jon Haukaas. The project was originally considered around 2011-12 and deferred because the neighborhood was about 20 years old; it is now more than 30 years old. Completed work includes soil borings, topographic survey, a neighborhood meeting in July, and a feasibility study approved in August. Remaining process steps include ordering improvements, benefit evaluation, final design, bidding, construction in 2027, and a final assessment hearing in fall 2027. Construction is anticipated to begin in May 2027 and last about one year, excluding the final wear course.

The proposed street work includes full reconstruction of Sugarbush Lane, Tamarack Lane, Barbary Circle, Hickory Circle, Butternut Lane, Dunsmore Drive, and Honeysuckle Lane; B618 curb and gutter; proposed minimum widths of 34 feet on Sugarbush Lane from Waconia Parkway North to Sugarbush Lane, 28 feet on most local streets and the Sugarbush Lane loop, and 32 feet on Dunsmore Drive; matching existing cul-de-sac diameters; and mailbox clusters. Proposed storm sewer work includes reconstruction and expansion, drainage pattern modifications, draintile behind curbs, sump structures, rain gardens, and permeable pavement, with an estimated cost of $4,896,729. Proposed water system work includes PVC watermain, replacement of hydrants, gate valves, and water services to the right-of-way line, and cathodic protection, with an estimated cost of $1,289,420. Total estimated project cost is about $6.2 million, financed through a combined bond and proposed funding from special assessments, the Water Fund, the Stormwater Fund, and the PIR Capital Improvement Fund.

The preliminary assessment area includes 70 properties, with 69 proposed for assessment; the city park is included and would take a share. Estimated preliminary assessments are $20,613 per unit for streets and $8,622 per unit for water. Saulsbury said past single-family assessments have been reduced through the third-party Special Benefit Report process, with final totals often around $10,000-$12,000, and the City assesses the lower of as-built costs or appraised benefit.

Residents raised concerns and questions:

• Mike Pole, listed as 1241 Sugarbush Lane in the minutes and 1242 in the transcript, asked about timing; the Mayor confirmed May 2027 and approximately one-year duration. He also asked how assessment payments work; City Administrator Shane Fineran said property owners may pay up front or over 10 years with interest at the bond rate plus 1 percent, with recent bond rates around 3-4 percent.
• Jake Beitlich, 1133 Sugarbush Lane, asked about watermain breaks; Haukaas said approximately 10-12 have occurred in the neighborhood over the past 20 years. Beitlich opposed the investment, saying at roughly $10,000 per repair, it would take 489 years to break even.
• Andrew Nowak, 1219 Sugarbush Lane, questioned why other neighborhoods received maintenance without assessments, said project maps appeared to omit existing storm sewer near 1203 Sugarbush Lane, and asked about vibration monitoring, mailbox cluster locations, and cost allowances. Saulsbury said all street and utility reconstruction projects have been assessed, the 25 percent allowance covers multiple items and recent projects were closer to 20 percent, mailbox locations would include public input, and vibration monitoring was not proposed because homes are newer and farther from the street. Nowak later said residents agree the improvements are needed but are concerned about residents footing the bill for a system that failed in about 30 years.
• Tom Keefe, 1203 Sugarbush Lane, asked whether mill and overlay work is assessed; Fineran explained the City assesses full-depth reconstruction and underground utility work, not mill-and-overlay maintenance. Keefe also questioned why the final wear course, laid the year after construction, would be included in the assessed reconstruction cost.
• Amanda Bloomgren, 1003 Sugarbush Lane, asked whether watermain work benefits the broader city; Haukaas said leaks cause unaccounted-for water loss that costs the city.
• Kelsey Nowak, 1219 Sugarbush Lane, asked whether mill and overlay had ever been done in the neighborhood; it had not. She expressed frustration that residents may have to bear the cost of a decision made 12-15 years ago and asked for financial data comparing doing nothing with mill and overlay.
• Dan Lueth, 1409 Honeysuckle Lane, expressed concern that permeable pavement has poor results and asked whether costs had been compared with rain gardens; Haukaas said costs cannot be determined yet, and Saulsbury said permeable pavement would be more expensive.
• Don Brettingen, 1420 Sugarbush Lane, asked whether water work would affect areas between the street and homes; Haukaas said watermain improvements would be within the street, services would be replaced to the right-of-way line, a temporary water system would limit outages, and construction is expected in two phases.
• Travis Nielson, 1000 Barbary Circle, asked whether driveway settling would be repaired; Haukaas said settling should not occur if work is done properly, and the city would repair driveway impacts.
• Cody Thorpe, 1208 Sugarbush Lane, asked about Minnesota Statute 429.051, which he said limits special assessments to the increase in property market value caused by an improvement. Fineran said the City hires a third-party appraiser for a Special Benefit Report and assesses the lower of construction cost or benefit. Thorpe said the city was asking a lot at a time of high gas and grocery prices and the conflict in Iran.
• Several residents also asked about the bidding process. Fineran said public projects are publicly bid and typical street projects draw five to eight bidders. Saulsbury said recent final project costs have often come in 5-25 percent lower than estimates, and the downtown project drew seven bidders.

The Council opened and closed the public hearing by voice vote, then adopted Resolution No. 2026-215 ordering improvements and preparation of plans by a 4-0 vote. The presentation noted that this step requires a four-fifths vote.

Public Comments and Testimony

• Pat Barry, candidate for Carver County Sheriff, introduced himself. The agenda spells his name Barry, while the transcript and minutes vary. He lives in Mayer, is a member of the Waconia Lions, has 28 years in law enforcement including 23 with the Carver County Sheriff's Office, and is currently Chief Deputy. He oversees patrol, jail, dispatch, investigations, crime lab, evidence, civil, recreation services, training, and administration, and noted the Sheriff's Office annual budget is about $31 million. He said the office contracts police services to 10 of 11 Carver County cities and expressed hope to continue serving Waconia as Sheriff. No formal action was taken.

Community Interest Presentation

• Alexis Starner, a junior at Waconia High School and Student Council president, presented Homecoming Spirit Week. The minutes place Spirit Week on October 5-9, 2026, although the transcript describes it as the current week. She described: Monday Comfy Day and pep fest; Tuesday Adam Sandler Day with bingo; Wednesday wear pink; Thursday grade colors; Friday homecoming game against Mankato West at 7:00 p.m.; more than 20 clubs and sports teams participating in a parade from the middle school exit to the high school west entrance, requiring a 5:00 p.m. road closure; and Saturday homecoming dance. She expressed enthusiasm for the community-building week.

Council Business

2027 Budget and Preliminary Levy:

• Joel Merry, Finance Director, presented the preliminary 2027 levy, required by September 30. Once set, the preliminary levy is a cap that cannot be increased, only lowered. Staff recommended a 6 percent increase in the operating levy and a 10.5 percent increase in the special debt levy, producing a net levy increase of 7.82 percent. The estimated impact on the city portion of a homeowner's property taxes was about $114 per year; the minutes state a 5.42 percent estimated increase, while the transcript says 5.32 percent, with the city tax rate decreasing by about 0.36 percent to 47.742 percent. Final levy adoption is scheduled for December 21, 2026. Resolution No. 2026-216 was adopted 4-0.

After-the-Fact Variance - 301 Oak Street South:

• Lane Braaten, Community Development Director, explained that the replacement garage for 301 Oak Street South was built after a fire without a permit. The Council had previously approved the garage location and 41 percent hardcover; a rain garden stormwater option was too costly, and the applicant removed hardcover from 41 to 36 percent. The request was to keep the garage in the approved location with 36 percent hardcover, above the 35 percent maximum. The Planning Commission unanimously recommended approval, subject to conditions including gutters, downspouts, and rain barrels to mitigate the one percent overage; no negative public comments were received. Council discussion noted the applicant intended to obtain the building permit promptly. Resolution No. 2026-217 was adopted 4-0.

Variance - 441 Olive Street South:

• Braaten presented a request for 441 Olive Street South, zoned R-2. The existing garage is a legal nonconforming structure located on the property line with access from Fifth Street. The applicant proposes removing the garage, driveway, and gravel parking area and building a new detached garage set back 6.2 feet from the Fifth Street right-of-way instead of the required 15 feet, with driveway access from the alley. The Planning Commission unanimously recommended approval, and public letters of support were noted. The Council adopted the variance 4-0. Resolution numbering is inconsistent: the agenda identifies it as Resolution No. 2026-218, the transcript says 2026-118, and the minutes say 2026-219; the minutes also spell the street as Oliver.

Ordinance Amendment Section 900.06.7 Shoreland Overlay District:

• Braaten reviewed the history of the Shoreline Flexibility Ordinance. After discussions with the Minnesota DNR, the City proposed allowing riparian properties subdivided before January 1, 1976, up to 30 percent hardcover by right instead of the current 25 percent, if conditions are met, including shore impact zone restoration, a maintenance plan, and a stormwater plan recorded with Carver County. The amendment also adds an access path definition and exempts B-2 and B-3 properties. The DNR indicated flexibility for pre-1976 parcels; the Planning Commission unanimously recommended approval. Councilmember Siddons recused and abstained from voting on Ordinance No. 797 due to property ownership; the ordinance carried. The Council then adopted the summary publication resolution 4-0. There is a numbering discrepancy: the agenda identifies the summary publication resolution as Resolution No. 2026-129, while the minutes call it 2026-219.

Key Outcomes

• Approved the 16-item consent agenda 4-0 with no items removed.
• Adopted Resolution No. 2026-215 ordering the 2027 Sugarbush Neighborhood Street Reconstruction Project improvements and preparation of plans, 4-0.
• Adopted Resolution No. 2026-216 establishing the 2027 preliminary property tax levy, 4-0, with final levy adoption scheduled for December 21, 2026.
• Adopted Resolution No. 2026-217 approving the 301 Oak Street South after-the-fact variance, 4-0.
• Adopted the 441 Olive Street South variance, 4-0; resolution number appears as 2026-218 on the agenda, 2026-118 in the transcript, and 2026-219 in the minutes.
• Adopted Ordinance No. 797 amending the Shoreland Overlay District, with Councilmember Siddons abstaining; adopted the summary publication resolution, 4-0; agenda number is 2026-129 and minutes number is 2026-219.
• No items were removed from the consent agenda, and no announcements were made.

Board Reports and Announcements

• Public Services Director Jon Haukaas reported that the 2026 Downtown Reconstruction project is in final restoration and cleanup. City Square Park improvements are expected to take four to six weeks, including removal of old lighting and bases, rewiring in conduit, relocating some lights, and replacing bad sidewalk or crossings.
• Councilmembers Siddons, Coleman, and Grengs had nothing to report; Councilmember Gleason was absent.
• Mayor Litfin reported on community meetings and events, including: meeting with Carver County Commissioner Lisa Anderson; Springs Wellness Center open house; Waconia High School Mayor's Youth Advisory Council meetings, including planned Q&A sessions with Carver County sheriff candidates on September 28 and October 1 at the high school performing arts center; Minnesota Valley Electric Cooperative energy forum where economist John Suter discussed the $40 trillion national debt; Southwest Corridor Transportation Meeting; West Carver Rotary Club; Promise Church grand opening; Eva Sofia car wash; and Nickel Dickle Day, thanking the Chamber, volunteers, downtown businesses, and city staff.
• Mayor Litfin provided an update on Safari Island: the city's rental contract expires at the end of 2030, the Council has not reached a decision, and options include renewing the contract, letting it expire, expanding the existing facility, or buying land elsewhere for a standalone community center. The Council will seek resident input before deciding.
• The meeting adjourned at 7:45 p.m.