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06.a1 Draft minutes 03-17-2026 Meeting March 17, 2026 A regular meeting of the Scandia City Council was held on the above date in the City Council Chambers. The meeting was conducted in-person 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 7:00 p.m. Following the Pledge of Allegiance, roll call was taken. The following were in attendance: Council members Jerry Cusick, Jim Gribble, Kirsten Libby, and Mayor Steve Kronmiller. Council member Mike Lubke participated on Zoom but was not a voting member. Staff present: City Attorney Amanda Johnson (on Zoom), City Engineer Isiah Bubany, Planner Greenlee Dahle, Police Deputy Jake Anderson, Fire Chief Mike Hinz (on Zoom), Public Works Director Charles Fischer, and City Administrator Kyle Morell. APPROVAL OF AGENDA Libby, seconded by Gribble, moved to approve the agenda as presented. Motion carried 4- 0. LAW ENFORCEMENT REPORT Deputy Anderson reported on calls and statistics over the past month. In February, there were 89 incidents, 44 traffic stops, and 19 citations issued. Anderson reported a DWI arrest at the intersection of Highway 97 and Manning, and a traffic casualty on Manning Avenue. PUBLIC FORUM There were no public comments. CONSENT AGENDA The following Consent Agenda was presented: a) Minutes 1) February 17, 2026 Closed Meeting 2) February 17, 2026 Regular Meeting 3) March 4, 2026 Work Session b) Treasurer’s Report c) Payment of Vouchers d) Approve Parks and Recreation Committee Chair & Vice-Chair Recommendation e) Approve 2026 Recycling Grant Agreement with Washington County f) Authorizing Acceptance of a Grant from the State of Minnesota to Complete the Scandia Water Tower Barn Arts and Heritage Center Project – Resolution No. 03-17-26-03 g) Approve Excluded Raffle Permit for Marine PTO – April 25, 2026 h) Approve Maintenance Worker Hiring Process i) Approve 2026 Dust Control Award j) City Engineer – Engineering Updates Report Libby, seconded by Gribble, moved to approve the Consent Agenda as presented. Motion carried 4-0. Scandia City Council March 17, 2026 Page 2 of 6 PUBLIC HEARING: ORDINANCE NO. 2026-01: AMENDING THE 2026 FEE SCHEDULE FOR BIG MARINE SEWER RATES AND ELECTRICAL INSPECTION FEES. PUBLICATION SUMMARY RESOLUTION NO. 03-17-26-01 City Administrator Morell explained the adjustments to the Big Marine Sewer and the Uptown Sewer rates as recommended by the Wastewater Committee at their meeting on February 25th. Three corrections to the electrical permit fee schedule were necessary to reflect the rates as recommended by Electrical Inspector Wheaton in December 2025. Gribble, seconded by Libby, moved to adopt Ordinance No. 2026-01, Amending the 2026 Fee Schedule and approve Resolution No. 03-17-26-01, Summary Publication of Ordinance No. 2026-01. Motion carried 4-0. 2026 ANNUAL OPERATING PERMIT FOR MARTIN MARIETTA (FORMERLY TILLER CORPORATION) SCANDIA MINE. RESOLUTION NO. 03-17-26-02 Tiller Corporation, a Martin Marietta Materials, Inc. company, has applied for its 2026 Annual Operating Permit (AOP) for their existing sand and gravel mining operation located at 22303 Manning Trail in Scandia. Planner Dahle summarized the application. There has been no change in operations over the past year, with all permits being valid and up to date. Groundwater monitoring is ongoing and in compliance with the standards of the monitoring plan. There was an average of 195 daily truck trips reported in 2025. Staff conducted a site inspection on December 11, 2025 and found signing and access standards being met. In 2025, there were four requests for extended hours to keep local road projects on schedule. No complaints regarding the extended hours of operation were received. The DNR provided feedback that the agency will complete their groundwater investigation in 2026. Planner Dahle concluded with a recommendation to approve the 2026 Annual Operators Permit with findings and conditions listed in a resolution. Jim Flaaen, Martin Marietta representative, reported that staff is on site beginning this week in anticipation of starting operations in April. Excavation into the groundwater table is anticipated within the 2026 Potential Mining Area depicted on the submitted site plan. Flaaen noted that Condition #13 in the resolution should be corrected to a permit expiration date of March 31, 2027. Cusick, seconded by Libby, moved to approve Resolution No. 03-17-26-02, Approving an Annual Operators Permit for the Scandia Mine Site with Condition #13 having an expiration date of March 31, 2027. Motion carried 4-0. RUSTIC ROOTS WINERY TRAFFIC STUDY – LEFT TURN LANE DEFERRAL In June 2025, the City approved an amended Conditional Use Permit for Rustic Roots Winery to add a restaurant to their operations. Condition #6 of the CUP states that before any building permits can be issued for the site, appropriate approvals are required from the Watershed, Washington County, and the Minnesota Department of Transportation. Administrator Morell Scandia City Council March 17, 2026 Page 3 of 6 explained that MNDOT is requiring a left turn lane be installed at the business’s expense to accommodate potential traffic impacts due to the expansion. MNDOT is offering to delay the requirement until their planned highway improvement project scheduled in 2031 and proposed to include this improvement in their construction project. However, MNDOT is asking the city to guarantee the improvements through an agreement with the property owner, estimated at a cost of up to $1 million and funded by an assessment to the property taxes over the next 5 years. Morell said the property owner is conducting his own traffic study to try to work with MNDOT on adjusted traffic counts. Administrator Morell described a solution to the issue could be to remove the condition which requires MNDOT approval before a building permit can be issued. Council member Libby stated that removing the City would give the owner more time to work with MNDOT, especially with findings that similar amenities along Highway 97 near Forest Lake do not have dedicated turn lanes for businesses. Libby said removing the MNDOT requirement from the CUP will allow the applicant to move forward with the new building, but still allow assistance to the applicant if needed. Council member Gribble stated that from an EDA perspective, helping the property owner is in the city’s best interest. Mayor Kronmiller agreed, saying that taking the city out of the issue allows the business to move forward with their plans. City Attorney Johnson advised that by a motion, the council can remove the requirement of MNDOT approval from the CUP. Johnson described the action as removing the red tape which the city created with the condition. Libby, seconded by Gribble, moved to remove the condition of MNDOT approval from the Conditional Use Permit for Rustic Roots Winery. Motion carried 4-0. Administrator Morell said he will communicate to MNDOT that the City will issue a building permit when the Watershed and the County’s septic permits are approved, and that MNDOT can work with the property owner on their own. Morell noted that once the restaurant is operating, traffic counts may not be as high as MNDOT is anticipating and a left turn lane unnecessary. WASTE MANAGEMENT CONTRACT AMENDMENTS City Administrator Morell presented proposed amendments to the agreement with Waste Management for trash and recycling services based on numerous requests from residents. The amendment document outlined the articles of the contract that will need to be amended to add a garbage only service option and a senior rate. Morell noted that the representative from WM was not receptive to a recycling only service for concerns that garbage may end up in the recycling cart. The Council has no objections to moving forward with the proposed amendments. Morell explained that the updated contract will be brought to a future meeting for approval. Scandia City Council March 17, 2026 Page 4 of 6 PARK & RECREATION COMMITTEE Parks Committee Chair Greg Zauner reported that he is the new chair of the Committee and Dustin Hegland the Vice-Chair. At their meeting on March 2nd, the Committee discussed Vinterfest effects on the community and will be working with the Tourism Committee for improvements. Zauner said that based on complaints about the hockey tournament actions, the organizer will spend additional funds on security. PLANNING COMMISSION The Planning Commission met on March 3, 2026 and approved a variance for improvements to a property on Maxwill Avenue. The DNR has asked the City to delay formal action on approval to allow their agency time to review the application. ECONOMIC DEVELOPMENT AUTHORITY The EDA met on February 24th. The EDA discussed a work plan for the year, and will hold a joint meeting with the Tourism Committee on March 24th. The Board also discussed the City’s future land use map and its effect on development. SCANDIA INTERNET ACTION COMMITTEE The Internet Action Committee will meet on March 19th and will hear from Midco on their construction plans for the Border 2 Border grant. The funds must be spent by June 2027. TOURISM COMMITTEE Tourism Committee Chair Sue Dickens appeared on Zoom. The Committee met on February 24th and discussed plans for a 30-mile bike ride within Scandia and neighboring communities to coincide with the Fall Crawl. WASTEWATER COMMITTEE The Wastewater Committee met on February 25th and finalized the 2026 sewer budgets for the Big Marine Sewer System and the Uptown Sewer System. Cusick, seconded by Gribble, moved to approve the 2026 Sewer Budgets as recommended by the Wastewater Committee. Motion carried 4-0. BUILDING OFFICIAL The February building activity report was in the meeting packet. In February, 20 building permits were issued at a valuation of $1,334,322.00. FIRE DEPARTMENT Fire Chief Hinz reported on the past month’s activity. In February the department responded to 17 calls; 6 fire related and 11 medicals. CITY PLANNER There were no updates from Planner Dahle. CITY ENGINEER Engineer Bubany’s engineering report was on the Consent Agenda. There were no questions. Scandia City Council March 17, 2026 Page 5 of 6 2026 Scandia Trails Project Bid Results Engineer Bubany presented bid results opened on March 11, 2026 for the 2026 Scandia Trails Project. The engineer’s estimate for the project was $1,261,680.00. Contractor Part 1 Part 2 Part 1 + Part 2 Winberg Companies LLC $864,161.73 $83,441.82 $947,603.55 Park Construction Company $1,000,315.66 $73,131.00 $1,073,446.66 Peterson Companies, Inc. $1,047,369.05 $63,268.50 $1,110,637.55 Boulder Creek, Inc. $1,049,399.00 $65,021.00 $1,114,420.00 Pember Companies, Inc. $1,065,972.50 $84,840.50 $1,150,813.00 Blackstone Contractors, LLC $1,081,384.22 $84,177.00 $1,165,561.22 Rosti Const. Co of MN, Inc. $1,050,147.50 $130,120.00 $1,180,267.50 JL Theis, Inc. $1,100,245.20 $93,863.30 $1,194,108.50 Dresel Contracting, Inc. $1,188,392.19 $115,007.70 $1,303,399.89 Urban Companies, LLC $1,277,624.30 $126,799.00 $1,404,423.30 McLafferty Contr. Grp, LLC $1,356,233.10 $112,995.00 $1,469,228.10 Engineer Bubany recommended approval to Winberg Companies with a low bid of $947,603.55. Gribble, seconded by Libby, moved to award Part 1 and Part 2 for the 2026 Scandia Trails Project to the lowest bidder, Winberg Companies LLC, in the amount of $947,603.55. Motion carried 4-0. Bliss Wastewater Treatment Facility Improvements Bid Results Engineer Bubany presented bid results opened on February 18, 2026 for the Bliss Wastewater Treatment Facility Improvements. The engineer’s estimate for the project was $1,700,000. Contractor Total Base Bid Pember Companies, Inc. $1,237,435.00 Municipal Builders, Inc. $1,465,533.00 Market & Johnson $1,689,000.00 Septic Check $1,798,000.00 Flatland Enterprise $1,887,460.00 Staab Construction Corporation $2,217,000.00 Engineer Bubany explained that Pember Companies, Inc. formally requested to withdraw their low bid due to a submittal error. Bubany recommended approval to the actual low bidder Municipal Builders, Inc. at $1,465,533.00. Cusick, seconded by Gribble, moved to award the Bliss Wastewater Treatment Facility Improvements Project to Municipal Builders, Inc. in the amount of $1,465,533.00. Motion carried 4-0. Scandia City Council March 17, 2026 Page 6 of 6 DIRECTOR OF PUBLIC WORKS Public Works Director Fischer’s report on department activities was in the meeting packet. Fischer explained that the hiring qualifications for the maintenance worker positions being advertised removed the Class A license requirement to open the door for a greater pool of applicants. The Local 49 Union will provide training for a new hire at their training center to meet this qualification. CITY ATTORNEY There were no updates from City Attorney Johnson. CITY ADMINISTRATOR City Administrator Morell provided a written report in the meeting packet, and added staff is in communication with the Laurel Ridge developer to enforce the designated routes for their construction equipment. ADJOURNMENT Libby, seconded by Gribble, moved to adjourn the meeting. Motion carried 4-0. The meeting adjourned at 8:06 p.m. Respectfully submitted, Kyle Morell City Administrator