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City Council Minutes 08-25-2025MONTICELLO CITY COUNCIL REGULAR MEETING MINUTES Monday, August 25, 2025 — 6:30 p.m. Mississippi Room, Monticello Community Center Present: Lloyd Hilgart, Kip Christianson, Charlotte Gabler, Tracy Hinz, and Lee Martie 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 Motion by Council Member Martie to approve the agenda. Council Member Hinz seconded the motion. Motion carried unanimously. C. Approval of Meeting Minutes • Joint Meeting Minutes from July 21, 2025 • Special Meeting Minutes from August 11, 2025 • Regular Meeting Minutes from August 11, 2025 Motion by Council Member Hinz to approve the special meeting minutes and the regular meeting minutes. Council Member Christianson seconded the motion. Motion carried unanimously. D. Citizen Comments • David Nagel, 5115 87t" Street — Mr. Nagel expressed frustration with issues in the development where he purchased a new home. He reported that 18 homes built by Lennar Construction are experiencing significant problems, including leaking windows that have caused extensive damage and the presence of black mold. Mr. Nagle questioned why the City continues to permit the builder to construct additional homes given these issues. He asked the City Council what steps could be taken to assist affected homeowners in working with the company to resolve the problems, noting that the impacted homes are somewhat not livable. He further stated that Lennar Construction has asked the homeowners to sign nondisclosure agreements as a condition of repairing the windows. City Council Minutes: August 25, 2025 Page 1 16 Mr. Nagel inquired about the City's role in inspections and approvals when new homes are constructed. He also asked whether the City could request and review the builder's engineering reports. • Mayor Hilgart reported that he had contacted the builder and was informed that the new windows being installed in new homes have been corrected and do not leak. • City Administrator Rachel Leonard responded to the homeowners, noting that cities have limited authority over private business and that staff will need to review the issue further. • Alexander Coady, 2760 Oakview Court— Mr. Coady spoke in opposition to data centers and recommended that the City prohibit them. • Rachel Penson, 5095 87t" Street — Ms. Penson expressed frustration that the City has not taken action to resolve the issues with her home. She stated her belief that the City relies to heavily on the builders statements and emphasized that someone needs to hold the builder accountable. She also noted that her home would not be able to be sold for its value. • Mayor Hilgart reiterated that staff will consult with the City Attorney to determine what actions, if any, the City may take. • Jamie Vokaty asked whether the City Council could prevent the builder from constructing additional homes. • Adam Fischer, 5080 87t" Street NE — Mr. Fisher questioned whether the City had authority under the building code and whether the builder had obtained the proper permits. He noted that the builder assured homeowners the homes were code compliant, but it has been confirmed that ten of the homes contain black mold. • Community Development Director Angela Schumann explained that the City's authority lies within the State Building Code and active building permits, which the Building Department continues to monitor. She added that the staff will need to further review the matter and consult with the City Attorney before providing a full response. • City Building Official Bob Ferguson stated that the City inspected the installation of the windows, but they didn't inspect the windows themselves, as that is not a part of the City's inspection responsibilities. Mr. Ferguson noted that he will work with the properties to review their information. City Council Minutes: August 25, 2025 Page 2 1 6 E. Public Service Announcements City Administrator Rachel Leonard noted the following public announcements: • Special Primary Election —August 26, 2025 • Labor Day Business Hours • Monticello Community Center Regular Business Hour • Farmers Market F. Council Liaison Updates • Economic Development Authority (EDA) — Council Member Hinz provided a recap of the meeting held on August 13, 2025. They approved funding for the IEDC Manufacturer's Breakfast Event and for the Initiative Foundation Community and Economic Development Program. Approved a resolution recognizing a new City Ordinance that establishes an affordable housing trust fund. Approved an amendment to a lease agreement for property at 349 W. Broadway. Approved a 2026 tax levy and budget. • Planning Commission — Council Member Christianson gave an update of the regular meeting held on August 5, 2025, and a special meeting held on August 19, 2025. At the regular meeting, the commission approved the preliminary and final plat for Spaeth Development and approved an ordinance addressing various zoning amendments. The special meeting on August 19 was a public hearing on the ordinance framework for Data Center Planned Unit Developments. G. Department Updates • Construction Update — Matt Leonard, Public Works Director/City Engineer, gave an update on current construction projects. 2. Consent Agenda: Motion by Council Member Hinz to approve the Consent Agenda. Council Member Martie 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 $1,434,637.02. B. Consideration of approving new hires and departures for City departments. Action taken: Approved the terminations for Hi -Way Liquors, Monticello Community Center, and Parks Department. C. Consideration of approving the sale/disposal of surplus city property for the Public Works Department. Action taken: No report. City Council Minutes: August 25, 2025 Page 3 1 6 D. Consideration of approving an application for a temporary gambling permit for a raffle and bingo to be conducted by the Wright County Ducks Unlimited, Chapter 39 on September 29, 2025, at the American Legion Post 260. Action taken: Approved the temporary gambling permit for the Wright County Ducks Unlimited. E. Consideration of adopting Resolution 2025-50 approving Second Amendment to Lease Agreement between the City of Monticello and Economic Development Authority (EDA) for 349 West Broadway (Fred's Auto) for MontiArts activities. Action taken: Adopted Resolution 2025-50 approving Second Amendment to Lease Agreement. Consideration of approving North Risk Partners as the City's Agent of Record for workers' compensation insurance for 2025-2030. Action taken: Approved North Risk Partners as Agent of Record. G. Consideration of adopting Ordinance 855 amending the Monticello City Code, Title XV: Land Usage, Chapter 153: Zoning Ordinance, Sections 153.012 — Definitions, 153.027 — Common Review Procedures and Requirements, 153.028 Specific Review Procedures and Requirements, 153.090 — Use Table, 153.040 — General Provisions, 153.042 — Common District Requirements, 153.067 — Off - Street Parking, 153.070 — Building Materials, 153.060 — Landscaping and Screening, 153.064 — Signs, and 153.092 — Accessory Use Standards. Applicant: City of Monticello. Action taken: Adopted Ordinance 855 amending the City Code to update zoning sections and adopted Summary Ordinance 855A for publication based on findings in PC -Resolution 2025-32. H. Consideration of adopting Resolution 2025-51 approving the preliminary and final plat for Spaeth Industrial Park Fourth Addition. Applicant: Spaeth Development, LLC and Spaeth Properties, LLC (Ken Spaeth). Action taken: Approved the preliminary and final plat for Spaeth Industrial Park Fourth Addition and the third amendment to the Development Contract and Planned Unit Development for Spaeth Industrial Park, subject to conditions in Exhibit Z and based on findings in said resolution. Consideration of approving the Third Amendment to Development Contract and Planned Unit Development for Carcone Addition and First Amendment to Development Contract and Conditional Use Permit Amendment for Planned Unit Development. Action taken: Approved the third amendment to Development Contract and Planned Unit Development for Carcone Addition and first City Council Minutes: August 25, 2025 Page 4 1 6 amendment to Development Contract and Conditional Use Permit (CUP) amendment for PUD. J. Consideration of adopting Ordinance 856 amendment the Monticello City Code, Title III, Chapter 36: Fee Schedule by amending Waste items. Action taken: Adopted Ordinance 856 amending the fee schedule. K. Consideration of approving a revised scope, accepting quote and awarding contract to Minnesota Native Landscapes for prairie conversion and hardwood seeding for $20,621.25. Action taken: Approved the revised scope, accepted quote and awarded contract to Minnesota Native Landscapes. L. Consideration of approving a special event permit for outdoor entertainment, street closure, and the use of City resources and approving a temporary liquor license at American Legion Post 260 on Saturday, September 13, 2025. Applicant: American Legion Post 260. Action taken: Approved the event permit contingent on notification to surrounding property owners. 3. Public Hearing: A. PUBLIC HEARING (Continued): Consideration of a vacation of a permanent easement for 85th Street NE as legally described for a portion of the plat Haven Ridge. Community Development Director Angela Schumann gave a brief update and noted that the applicant was continuing to work through matters related to the final plat. She recommended that the City Council take public testimony, close the public hearing, and table it to a future date. Mayor Hilgart noted that the public hearing was still open and invited public testimony. No one testified. Mayor Hilgart closed the public hearing. Motion by Council Member Martie to table action of the permanent easement to a future date. Council Member Christianson seconded the motion. Motion carried unanimously. 4. Regular Agenda: 5. Adjournment The meeting was adjourned at 6:55 p.m. Recorder: Jennifer Schre City Council Minutes: August 25, 2025 Page 5 1 6 &M)Attest: , City Administrator City Council Minutes: August 25, 2025 Page 6 1 6