City Council Minutes 02-14-2022REGULAR MEETING — MONTICELLO CITY COUNCIL
Monday, February 14, 2022 — 6:30 p.m.
Mississippi Room, Monticello Community Center
Present: Lloyd Hilgart, Jim Davidson, Bill Fair, Charlotte Gabler, and Sam Murdoff
Absent: None
1. General Business
A. Call to Order & Pledge of Allegiance
Mayor Hilgart called the meeting to order at 6:30 p.m.
B. Approval of Agenda
Councilmember Gabler moved approval of the agenda with the addition of
item 2W. Councilmember Davidson seconded the motion. Motion carried
unanimously.
C. Approval of Meeting Minutes
• Special Meeting Minutes from January 24, 2022
• Regular Meeting Minutes from January 24, 2022
Councilmember Gabler moved approval of both sets of minutes.
Councilmember Fair seconded the motion. Motion carried unanimously.
D. Citizen Comments
Scott Cutsforth, 8634 Fairhill Lane, addressed the City council regarding the use
of ATVs within City limits. Jennifer Schreiber, City Clerk, noted that she is
collaborating with Tom Pawelk, Parks & Recreation Director, to develop a revised
ordinance that would allow the use of Class 2 ATVs in certain locations of the
City.
E. Public Service Announcements
• Presidents Day holiday hours were noted.
• Spring Tree Sale orders are due by March 11.
• MonticellGLOW parade February 26, 2022.
• The Monticello Community Center offered the Kids Lifting Certification
class which allows children full access to fitness area.
• A second session of winter MCC swimming lessons were added to the
schedule.
F. Council Liaison Updates
• EDA — Councilmember Davidson provided an update on the January 26
meeting and the February 9 meeting. Items discussed included: WSB
relocation contract; appraisal services contract; update on Otter Creek
Business Park Plats; adopted resolution requesting City Council to set a
City Council Minutes: February 14, 2022 Page 1 1 6
public hearing to establish TIF District 1-44 and approved a contract with
Northland Securities.
• Parks, Art & Recreation — Councilmember Murdoff noted that PARC
discussed a parking lot at Bertram Chain of Lakes, park dedication, a park
in Featherstone, and an updated ATV ordinance.
• IEDC — Councilmember Fair noted that the IEDC reviewed their action
statement and goals for 2022. They also discussed recruitment of new
members.
• Planning Commission — Councilmember Gabler gave an update of the
Planning Commission meeting held February 2. Items on the agenda
included: conditional use permit for Rustech, 2022 Zoning Map, and an
update from the Fire Marshal.
• BCOL — Councilmember Davidson stated that the group discussed the
parking lot, the upcoming season, RV sites, and items that were
purchased for the park.
G. Department Updates
• FiberNet/Arvig Quarterly Update — Mark Birkholz, Arvig, provided the
fourth quarter update along with the annual review.
2. Consent Agenda:
Councilmember Fair moved approval of the Consent Agenda with the addition of item
2W. Councilmember Davidson seconded the motion. Motion carried unanimously.
A. Consideration of approving the payment of bills. Action taken: Approved the bill
and purchase card registers for a total of $1,772,748.75.
B. Consideration of approving new hires and departures for city departments.
Action taken: Approved hires for Hi -Way Liquor, MCC, Public Works, Parks, and
City Hall.
C. Consideration of approving the sale/disposal of surplus city property for the
Parks and Recreation Department. Action taken: Approved as presented.
D. Consideration of approving an upgrade to the security camera systems at the
liquor store and community center for a not -to -exceed amount of $70,598.20.
Action taken: Approved an upgrade to the security camera systems at the
liquor store and community center for a not -to -exceed amount of $70,598.20.
E. Consideration of approving a revised purchasing policy. Action taken: Approved
the revised purchasing policy.
F. Consideration of approving a contract with Marco Technologies, LLC for co -
managed IT services for a three-year term for a one-time onboarding fee of
$8,084 and monthly cost of $3,676.63. Action taken: Approved the contract
with Marco Technologies, LLC for managed IT services.
City Council Minutes: February 14, 2022 Page 2 1 6
G. Consideration of approving 2021 Operating Transfers. Action taken: Approved
the 2021 operating transfers.
H. Consideration of approving membership in 1-94 Coalition in the amount of
$7,227.50. Action taken: Approved membership in the 1-94 Coalition.
Consideration of approving payment of 2022 Central Mississippi River Planning
Partnership dues in the amount of $7,143. Action taken: Approved membership
in the Central Mississippi River Planning Partnership.
Consideration of adopting Resolution 2022-08 endorsing WashburnPOS's
submittal of a Job Creation Fund (JCF) grant application to MN -DEED in the
amount of $408,000 related to a proposed facility expansion. Action taken:
Adopted Resolution 2022-08 endorsing WashburnPOS's submittal of a Job
Creation Fund grant application.
K. Consideration of adopting Resolution 2022-09 calling for a Public Hearing on the
proposed Establishment Tax Increment Financing District No. 1-44 within the
Central Monticello Redevelopment Project No. 1, and the proposed adoption of
the Tax Increment Financing Plan for the District. Action taken: Adopted
Resolution calling for a Public Hearing on Tax Increment Financing District 1-44.
L. Consideration of adopting Resolution 2022-10 authorizing submission of 2022
Outdoor Recreation Grant application to the Department of Natural Resources
for Bertram Chain of Lakes Park Improvements. Action taken: Adopted
Resolution 2022-10 authorizing submission of the 2022 Outdoor Recreation
Grant application.
M. Consideration of adopting Resolution 2022-11 calling for a public hearing on
March 28, 2022 for vacation of drainage and utility easements as legally
described for Otter Creek Crossing and Otter Creek Crossing 4t" Addition. Action
taken: Adopted Resolution 2022-11 calling for a public hearing for vacation of
drainage and utility easements for Otter Creek Crossing and Otter Creek
Crossing 4t" Addition.
N. Consideration of authorizing preparation of an Industrial Land Feasibility Analysis
by Bolton & Menk as a component of the CET Strategic Transition Plan. Action
taken: Approved the preparation of an Industrial Feasibility Analysis by Bolton
& Menk at a not -to -exceed cost of $40,000 with final contract terms and
conditions to be negotiated by the City Administrator.
0. Consideration of authorizing a Request for Proposal for completion of the
Strategic Transition Plan Summary as a component of the CET Strategic
Transition Plan. Action taken: Authorized RFP for completion of the Strategic
Transition Plan Summary.
P. Consideration of approving a Conditional Use Permit for Cross/Joint Parking
Easement in the Central Community District (CCD). Applicant: Bill and Penny
Burt. Action taken: Approved a Conditional Use Permit for Cross/Joint Parking
City Council Minutes: February 14, 2022 Page 3 1 6
Easement in the Central Community District for PIDs 155-010-032020 and 155-
010-035040, based on findings in Planning Commission Resolution PC -2022-03,
and with the conditions identified in Exhibit Z of the Council report.
Q. Consideration of adopting Ordinance 769 adopting the 2022 City of Monticello
Official Zoning Map. Action taken: Adopted Ordinance 769 adopting the 2022
Official Zoning Map.
R. Consideration of authorizing the purchase of a used 2017 Elgin Pelican Street
Sweeper for a cost of $150,000 and declaring the 1996 Elgin Pelican Street
Sweeper as surplus. Action taken: Authorizing the purchase of a 2017 Elgin
Pelican Street Sweeper for a cost of $150,000 and declared the 1996 sweeper
as surplus.
S. Consideration of approving a contract with Rolstad Construction Company for
the extraction of materials. Action taken: Approved a contract with Rolstad
Construction Company for the extraction of materials.
T. Consideration of adopting Resolution 2022-12 approving plans and specifications
and authorizing advertisement for bids for the 2022 Street Improvement Project,
City Project 22C001. Action taken: Adopted Resolution 2022-12 approving plans
and specifications and authorizing advertisement for bids for 2022 Street
Improvement Project.
U. Consideration of authorizing Stanley Access Technology and Russel Security to
install ADA door upgrades and key fob access at the Monticello Community
Center in the total amount of $30,493. Action taken: Authorized Stanley Access
Technology and Russell Security to install ADA door upgrades and key fob
access at the community center.
V. Consideration of approving a lease agreement with the Monticello Chamber of
Commerce and Industry for an office suite in the new DMV Building ADA Prairie
Conference Center). Action taken: Approved a lease agreement with the
Monticello Chamber of Commerce and Industry for office suite in DMV
Building.
W. Consideration of authorizing entering into a Lease Agreement with Preferred
Title for use of a portion of the former DMV Building (119 3rd Street East) for file
storage. Action taken: Authorized a lease agreement with Preferred Title for
use of 119 3rd Street East.
3. Public Hearings:
A. PUBLIC HEARING: Consideration of adopting Resolution 2022-13 ordering
improvement and authorizing preparation of plans and specifications for the
2022 Sidewalk Improvement Project, City Project 22CO01
Matt Leonard, City Engineer/Public Works Director, gave a brief presentation on
the project which is a part of the 2022 Street Improvement Project. There were
four areas noted for improvement: 4th Street, Walnut Street & 4th Street,
City Council Minutes: February 14, 2022 Page 4 1 6
Washington Street, and Chelsea Road. The total project cost is $121,215 with
$29,247 being assessed to property owners.
The project will be bid with the 2022 Street Improvement project, which are due
March 15, 2022. Construction will begin in May 2022, with substantial
completion in July 2022.
Mayor Hilgart opened the public hearing. No one testified. Mayor Hilgart closed
the public hearing. There was minimal discussion among City Council.
Councilmember Gabler moved to adopt Resolution 2022-13 ordering the
improvement and authorizing preparation of plans and specifications for the
2022 Sidewalk Improvement Project. Councilmember Davidson seconded the
motion. Motion carried unanimously.
B. PUBLIC HEARING: Consideration of adopting Resolution 2022-14 approving the
establishment of Tax Increment Financing District No. 1-42 (Headwaters
Apartment Prosect) within the Central Monticello Redevelopment Project No 1;
and the adoption of the Tax Increment Financing Plan relating thereto
Jim Thares, Economic Development Manager, provided a brief overview of Tax
Increment Financing District 1-42 for Headwaters Development's proposed
senior apartment development. The project includes a 108 -unit rental multi-
family housing facility. The total cost of the project is estimated at $23.6 million,
and Headwaters Development indicated that it will not proceed with the
proposal without the public assistance. The property is owned by the EDA.
Michael Hoagberg, Headwaters Development LLC, addressed the City Council
and briefly discussed the two projects proposed for the site and noted the
development responds to the demand for more independent senior living
options. The applicant hopes to start construction in May if everything goes as
planned. Mr. Hoagberg noted that the preference is to construct the villas first.
Tammy Omdahl, Northland Securities, serves as advisory to the City and the EDA
on establishment of the district. Ms. Omdahl provided background information
on the project and separating it into two separate TIF Districts, TIF District 1-42
and TIF District 1-43, the next item on the agenda. It is beneficial for the City and
to the developer in keeping them separate due to the timing of the
commencement of each of the portions as well as the requirement for an
affordable housing district, or market rate project with an affordable
component. If approved by the City Council, the EDA will approve at a later date
and enter into an agreement with the developer. Ms. Omdahl also mentioned
the potential of capturing increase in property taxes as a result of the
development.
Mayor Hilgart opened the public hearing. No one testified. Mayor Hilgart closed
the public hearing.
There was no discussion among City Council.
City Council Minutes: February 14, 2022 Page 5 1 6
Councilmember Fair moved to adopt Resolution 2022-14 approving the
establishment of TIF District 1-42 (Headwaters Apartment Project) and moved
to adopt the Tax Increment Financing Plan. Councilmember Murdoff seconded
the motion. Motion carried unanimously.
C. PUBLIC HEARING: Consideration of adopting Resolution 2022-15 approving the
establishment of Tax Increment Financing District No. 1-43 (Headwaters Villas
Proiect) within the Central Monticello Redevelopment Project No. 1; and the
adoption of the Tax Increment Financing Plan relating thereto
Tammy Omdahl, Northland Securities gave a brief update on Tax Increment
Financing District 1-43 for Headwater Development's proposed project of 60 -
rental twin -homes. This project is related to TIF District 1-42. Due to slightly
different developer ownership interests, the twin -homes were presented as a
separate TIF District.
The total project cost was estimated at $20.5 million, and Headwaters
Development has indicated that it will not proceed with the proposal without
the approval of the requested public financial assistance.
Mayor Hilgart opened the public hearing. No one testified. Mayor Hilgart closed
the public hearing.
There was no discussion among City Council.
Councilmember Davidson moved to adopt Resolution 2022-15 approving the
establishment of Tax Increment Financing District No. 1-43 (Headwaters Villas
Project) within the Central Monticello Redevelopment Project No. 1; and the
adoption of the Tax increment Financing Plan relating thereto. Councilmember
Fair seconded the motion. Motion carried unanimously.
4. Regular Agenda:
5. Adjournment:
By consensus, the meeting was adjourned at 7:38 p.m.
Recorder: Jennifer Schreiber
Approved:
" � tAft r�yazv_
Atte
City Council Minutes: February 14, 2022 Page 6 1 6