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06.a3 Draft Minutes of September 3, 2026, Work Session September 3, 2026 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 Kirsten Libby and Jim Gribble, and Mayor Steve Kronmiller. Councilmember Mike Lubke attended via Zoom. Staff present: City Administrator Kyle Morell, Public Works Director Charles Fischer, City Engineers Isiah Bubany and Ryan Goodman, and Fire Chief Mike Hinz. APPROVAL OF THE AGENDA Gribble, seconded by Libby, moved to approve the agenda. Motion carried 4-0. CAR MAR WATERSHED ROAD IMPROVEMENT COST SHARE REQUEST Staff presented information provided by the Watershed regarding the road improvement project and the reported deficiencies. Council discussed the project warranty and responsibility for corrective work. Councilmembers Libby and Gribble noted that if the issue was discovered during the one-year warranty period, a claim should have been made against the contractor. Council discussed the need for legal counsel if necessary. Councilmember Libby moved to ask the Watershed to pursue a claim against the contractor’s insurance for the needed corrections, seconded by Gribble. Motion carried 4-0. DRAFT RFP DOCUMENTS FOR ENGINEERING AND LEGAL SERVICES Staff presented draft Request for Proposal documents for engineering and legal services. Staff explained that Eckberg Lammers has indicated its current RFP rates are approximately 20% higher than the rates currently charged to the City and is willing to discuss a two- or three-year agreement for continued services. Bolton & Menk presented information comparing the services currently provided to the City with current market rates. Bolton & Menk offered to extend general engineering services from 24 to 30 hours, lock the rates for Isaiah Brown and Ryan Goodman through 2028, and continue not charging for City Council meetings. Staff and Bolton & Menk noted that the current general engineering rate offered to the City is unusually low compared with rates offered to other municipalities and that an RFP process could result in higher rates. Council discussed the purpose of conducting an RFP as a periodic best-practice review and emphasized that the discussion was not an attack on either contracted service provider. Council also discussed comparing overall service costs and efficiencies rather than hourly rates alone. Councilmember Lubke asked whether publishing an RFP would result in higher rates from the current firms. Staff explained that the RFP documents had not yet been published and that Council could instead direct staff to work with the current firms on updated professional service agreements. Council agreed that staff should review updated proposals from the current engineering and legal firms before deciding whether to proceed with an RFP. CAPITAL IMPROVEMENT COMMITTEE DISCUSSION Council discussed the role and structure of the Capital Improvement Committee (CIC), including the need for clear bylaws or guidelines. Councilmember Kronmiller stated that bylaws would help guide future discussions and that financial policies could provide useful direction. Councilmember Gribble stated that the bylaws should be concise and that the committee should focus on reviewing City spending and ensuring the City is financially responsible. Council discussed concerns Scandia City Council Work Session September 3, 2026 Page 2 of 3 that the CIC has sometimes reviewed expenditures after decisions have effectively been made rather than helping prioritize future spending. Council reviewed a 2017 document outlining a five-year capital spending plan and discussed updating the plan. Debt was identified as an important part of the City's current capital planning because the City has moved from primarily cash-funded projects to using debt to maintain infrastructure. Council discussed whether CIC members have sufficient experience with public finance and the importance of providing residents with enough information regarding fiscal processes, equipment needs, and maintenance and replacement schedules. Staff noted that departments work to extend replacement timelines where practical and to stagger major purchases. Fire Chief Hinz recommended that the CIC focus on projects within the Capital Improvement Plan rather than debating the cost of individual items. It was noted that the CIC previously recommended that Council issue a bond for road improvements and that the committee's role should include making recommendations to Council rather than functioning primarily as a road improvement committee. Council discussed the possibility of creating a separate road improvement committee, as well as the alternative of having the CIC address road planning as one of its responsibilities. Other topics discussed included more frequent meetings, continuity of committee membership, at-large appointments, additional Council participation, long-term capital planning, debt policy, equipment replacement schedules, and identifying appropriate funding sources. Council agreed that additional discussion was needed before making a final decision. The item will be brought back to the October Work Session. Staff will prepare draft bylaws for Council review. 2027 DRAFT PRELIMINARY BUDGET UPDATE Staff presented an updated levy worksheet. The preliminary net levy is approximately $24,000 lower than the previous presentation, representing an approximately 0.22% reduction in the overall increase. The City is currently projecting an approximately 6.3% levy increase. Staff noted that insurance rates are not yet available and that professional service agreements for legal and engineering services could affect the budget. Council discussed whether the City should levy additional revenue for a fund when the existing fund balance is sufficient to cover projected expenses. Staff explained that the City has historically continued to levy based on the annual budget, while some capital funds have used existing fund balances for projects exceeding annual levy amounts. Council discussed the EDA and tourism funds and the possibility of using existing balances rather than imposing additional levy revenue when projected expenses can be covered by those balances. VINTERFEST EXPENSES – GREG ZAUNER At the request of Mayor Kronmiller, Greg Zauner was permitted to add a discussion of Vinterfest to the agenda. Zauner presented proposed 2027 expenses of approximately $6,700 for rink maintenance and events. Council discussed ways to mitigate the cost of the Zamboni during the event, including hiring hourly staff or using volunteers. Zauner stated that a location for the 2027 fireworks has not yet been determined because the t-ball field is expected to be used as a parking lot. The fireworks budget will need to increase to maintain the current level of the show, and Zauner is seeking local donations to offset the increased cost. Funds remaining from 2026 sponsors will also be available for 2027. Staff noted that City office staff spend time assisting with Vinterfest advertising and banner creation. The possibility of hiring an off-duty officer was discussed to avoid having the City's deputy called away from the event to respond to calls within the City. Scandia City Council Work Session September 3, 2026 Page 3 of 3 Councilmember Gribble asked about children's events. Zauner stated that the Park Committee is working on ideas. The Lions Club continues to conduct the medallion hunt as part of the event. Staff reported that the total Public Works cost above and beyond regular daily work for the 2026 Vinterfest was approximately $9,000, plus approximately $2,000 in office staff time. The City will track event-related costs again in 2027. Zauner noted that the hockey tournament brings the largest number of visitors from outside the City. While local residents do not generally shop or eat locally during the event, both restaurants were reported to be at standing-room-only capacity during the event weekend. Council discussed whether a code of conduct for hockey teams has been considered. ADJOURNMENT Libby, seconded by Gribble, moved to adjourn the meeting. Motion carried unanimously. The meeting adjourned at 8:12 p.m. Respectfully submitted, Kyle H. Morell City Administrator