City Council Minutes 08-11-2025 SpecialMINUTES
MONTICELLO CITY COUNCIL SPECIAL MEETING
Monday, August 11, 2025 — 5:15 p.m.
Monticello Community Center
Present: Lloyd Hilgart, Charlotte Gabler, Kip Christianson (arrived at 5 p.m.), Tracy Hinz,
and Lee Martie
Absent: None
Staff: Rachel Leonard, Sarah Rathlisberger, Angela Schumann, Matt Leonard, Mike
Haaland, Tom Pawelk
1. Call to Order
Mayor Lloyd Hilgart called the special meeting to order at 5:15 p.m.
2. 3rd Street Dumpster Discussion
Matt Leonard, Public Works Director and City Engineer, provided background on the
dumpster enclosures located in the 3rd Street parking lot, noting that the structures are
in need of maintenance. A few businesses in the surrounding block currently utilize the
enclosed dumpsters, with one business owner informally managing both payment and
oversight.
Mr. Leonard presented two options to the City Council: eliminate the enclosures and
require each business to obtain and manage its own dumpster, or have the City assume
administrative responsibility for the shared enclosures. The latter option would include
completing necessary maintenance on the existing structures.
Following discussion, City Council members expressed support for maintaining the
enclosures, recognizing their value to the area.
City Council reached a consensus for staff to move forward with updating the concrete
dumpster enclosures and to engage adjacent property owners regarding potential
shared use.
3. Water Treatment Plant Update
Matt Leonard provided an update on the future Water Treatment Plant, noting that the
project is currently at 30% design completion. The original Utility Rate Study had
estimated a cost of $40 million, but the latest projection has increased to $55 million.
Mr. Leonard explained that the architects could revise the design to reduce the overall
size of the plant. Even with a smaller footprint, the facility would still support the City's
growth for the next 30 years before requiring expansion.
City Council Special Meeting Minutes —August 11, 2025
City Council discussed various aspects of the project, including funding strategies,
potential for future industrial development, and determining an acceptable size and
cost for the plant.
There was also conversation about relocating the wells currently situated on Block 34.
Mr. Leonard recommended prioritizing the Water Treatment Plant construction and
addressing the well relocation as a separate project.
Council members expressed support for moving forward with revised plans for the
Water Treatment Plant, with a target cost not to exceed $45 million. The proposed
facility will be designed to handle a capacity of 8 million gallons per day (MGD).
4. Franchise Fee Discussion
Matt Leonard presented an overview of using franchise fees as an alternative funding
source for road maintenance projects, replacing the current system of special
assessments. He explained that implementing franchise fees could generate
approximately $1.8 million annually for the City.
Mr. Leonard shared examples of franchise fee structures from other cities and explained
that fee levels would vary by property type —residential, commercial, and large
commercial —based on usage and impact.
The Council discussed potential impacts of the additional fees, particularly on residents
and small businesses. Council Member Christianson suggested that for the large
commercial category, a percentage -based fee might be more equitable, as a flat rate
could disproportionately affect smaller commercial properties with limited
infrastructure or parking. Mr. Leonard acknowledged the concern and stated that staff
would explore options for creating an additional commercial fee tier to better account
for smaller commercial
City Council reached consensus for staff to draft a gas franchise agreement with
CenterPoint Energy and an electric franchise agreement with Xcel Energy.
5. Adjournment
By consensus, the meeting was adjourned at 6:15 p.m.
Recorder: Jennifer Schreib r Jl�
JO ttest: A 44
City Administrator
City Council Special Meeting Minutes — August 11, 2025