06.a2 Draft minutes 07-02-2025 Work Session
July 2, 2025
A work session meeting of the Scandia City Council was held on the above date. The meeting
was conducted in the Council Chambers at the Scandia Community Center and over an
electronic platform. All participants who joined the meeting remotely could hear each other and
contribute to discussions.
Mayor Steve Kronmiller called the meeting to order at 6:30 p.m. The following were present:
Council members Jerry Cusick, Jim Gribble, Kirsten Libby, and Mayor Steve Kronmiller.
Council member Mike Lubke was on Zoom. Staff present: City Administrator Kyle Morell, City
Engineer Isiah Bubany, Public Works Director Charles Fischer, and City Clerk Brenda Eklund.
APPROVAL OF THE AGENDA
Libby, seconded by Cusick, moved to approve the agenda as presented. Motion carried
unanimously.
GATEWAY TRAIL PROJECT UPDATE
A public information meeting on the Gateway Trail Project was held on June 11, 2025.
Representatives from the City, Washington County, and DNR were present to answer residents’
questions. Mayor Kronmiller stated that this evening, the City Council is receiving information
on the project, not gathering public input.
City Engineer Bubany provided a funding and project cost estimate.
FUNDING
• $800,000.00 from Washington County for the work related to the realignment of County
Road 52.
• $2,689,000.00 from the LCCMR Grant designated for the construction of the trail in its
entirety (includes the mention of an underpass in the grant language).
• $200,000.00 in additional funding from the DNR for the project as a whole.
The total funding allocated for this project is $3,689,000.00.
PROJECT COSTS
Northern Trail Portion: $ 946,226.50
County Road 52 Realignment: $2,915,376.57
Engineering: $ 369,264.00
*Total: $4,230,867.07
*Small changes will be made prior to bidding that will impact this cost estimation.
Bubany noted that the current projections leave a funding gap of $541,867.07. Bubany explained
that the funding gap can be discussed further once the bids come in.
Bubany listed three main issues covered at the public meeting to be discussed more in depth
tonight.
#1. Why is a box culvert/tunnel necessary at the Oakhill Road crossing? Bubany explained that
it’s a MN DNR requirement that all new state trails be under grade for the safety of the users.
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#2. Why construct the costly tunnel now? Bubany explained that Washington County has
funding of $800,000 committed to this project which may not be available in the future. The
LCCMR funding needs to be used by 2027. If construction is pushed off, future grant funding
from the LCCMR requires a 25% local match under current rules.
#3. Why construct only a segment of the trail? Bubany explained that the overall project to
connect to William O’Brien Park is too expensive to do all at once, as all long trails are built in
phases. It makes sense to do this segment first. The DNR is obtaining design work for the
southern portion of the trail this summer and is estimating construction to be 3-5 years out.
Bubany provided a timeline for the northern portion segment:
Approve Plans & Specifications/Authorize Ad for Bid October 21, 2025
Bid Opening November 12, 2025
Consider Contract Award at City Council Meeting November/December 2025
Construction May - September 2026
Administrator Morell stated that the Council can give direction and decide where does the
project go from here – should it be delayed or stopped? To date the City has received close to
$200,000 in grant funds that may have to be returned to the state if the project is abandoned.
Mayor Kronmiller said they need to consider the project investment up to this point, and is in
favor to keep going. This has been in the works for a long time, has support from legislative
representatives, and stopping it now doesn’t make much sense. There will be benefits when fully
connected with the park. Kronmiller said he is pleased with the amount of work engineering staff
is doing with the landowners along the trail.
Council member Gribble recommended an amendment from the tunnel requirement be
requested. Gribble said he has gotten information that the DNR requires tunnels when traffic
counts at the crossing exceed 2,000 cars a day, saying this could be many years in the future for
Oakhill Road. Gribble said although the County and State are excited about the project, he’s only
heard from one citizen excited about the trail.
Council member Libby said there has been no cost to city taxpayers for this project, and costs
will always be going up. Libby asked where would funds come from to return the grant awarded
up to this point? Libby said project cost overruns are common for LCCMR due to the time of
project planning to the time of construction. Libby asked if LCCMR is holding any money for
overruns? Libby stated that if the project is abandoned, LCCMR may never fund another Scandia
project in the future.
Council member Libby noted that the tunnel requirement is a sticking point – is there another
option, and why not? Administrator Morell said there is language in legislation that a tunnel be
in the project. Mayor Kronmiller said the tunnel is for safety reasons.
Council member Cusick asked why is the trail stopping at Oakhill, saying this is a lot of money
for this segment. Engineer Bubany noted the costs required to build the remaining trail to the
park which will be a future phase by the DNR.
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Administrator Morell said the tunnel has been discussed with the DNR, who say it’s a policy
decision for all new state trails. As well, Washington County desires a grade separation at the
crossing. If the tunnel is not constructed at this time, the County will require a tunnel with the
next segment completion, and may pull their funding if a tunnel is removed from the project.
Kronmiller moved to continue moving the project forward.
Council member Gribble said he’s not looking to abandon the project but to ask for an
amendment to remove the tunnel requirement. Administrator Morell said this language is in the
legislation for the award. Council member Libby said an amendment ask would take a minimum
of a year to address with the legislature and LCCMR.
Libby seconded the motion.
Voting aye: Libby, Kronmiller
Voting nay: Cusick, Gribble
Motion tied 2-2.
Council member Lubke, participating over Zoom, asked why is this being brought up now?
Administrator Morell said this is an opportunity for the City Council to discuss the project after
the public input meeting held on June 11th. Morell stated that the Council has backed this project
for the last 3-7 years and is now months away from awarding a contract for construction;
however, there is no statutory requirement to vote at this point.
Council member Lubke asked for more information and discussion on the $541,000 shortfall.
Administrator Morell explained the plan to get bids and do as much of the project as money
allows. The city is not bound to cover the deficit, but rather can revise the project. Any missing
elements can be added into the next phase with the DNR trail segment to the state park. Morell
stated that the project will construct as much as can be done without additional city funding.
Administrator Morell said that staff will reach out to LCCMR with the Council’s questions and
report back at a future meeting.
Council member Libby stated that the tunnel requirement needs more information.
MPCA CLEAN WATER PARTNERSHIP LOANS
Administrator Morell explained a program brought forward by the Tii Gavo Homeowners
Association. Tii Gavo’s community septic system needs significant improvements ordered by the
MPCA. The HOA does not have the reserves to cover the $1 million project. The MPCA Clean
Water Partnership Loan program offers low-interest (1.5% rate) loans to local governments to in
turn make loans to landowners to build projects. The HOA would partner with the city to apply
for a loan to complete project for compliance, then repay the loan back to the city over 7 years.
City Attorney Johnson provided a memo to the Council with details of the program and issues to
consider.
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Administrator Morell asked the Council if they are open to the idea to partner with HOA’s
through this program. There could be future requests, including Wyldewood Acres HOA which
also is mandated to make improvements to their community septic system for MPCA
compliance.
Mayor Kronmiller said it needs to be understood that all costs are to be paid by the homeowners,
not the city taxpayers. This program allows for HOAs to acquire funding for large projects.
Administrator Morell noted that there are few resources available to HOAs for such significant
projects. Morell asked if the Council would support more investigation by staff to get a better
understanding of the upfront costs and payback terms.
Council member Libby agreed for needing more information that will help us figure this out for
the homeowners. Libby said the state’s rules for septic compliance change and systems are now
failing.
Council was in consensus to pursue this program for more information and asked staff to work
with HOA representatives for a future report.
ADJOURNMENT
Libby, seconded by Gribble, moved to adjourn the meeting. Motion carried 4-0.
The meeting adjourned at 7:21 p.m.
Respectfully submitted,
Brenda Eklund
City Clerk