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City Council Minutes 10-13-2025MONTICELLO CITY COUNCIL REGULAR MEETING MINUTES Monday, October 13, 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. Mayor Hilgart read a Minnesota Manufacturing Month proclamation. C. Approval of Agenda Motion by Council Member Martie to approve the agenda. Council Member Hinz seconded the motion. Motion carried unanimously. D. Approval of Meeting Minutes • Regular Meeting Minutes from September 22, 2025 Motion by Council Member Hinz to approve the regular meeting minutes. Council Member Martie seconded the motion. Motion carried unanimously. E. Citizen Comments • Scott Cutsforth — Mr. Cutsforth questioned whether information regarding a data center proposal would be on the City's website. Staff noted that information on a potential prospect is on the website. In addition, any information regarding a potential project will be added to the website. F. Public Service Announcements • Eric Olson, School District 882 Superintendent, gave a presentation on the school's Operating Levy and the referendum being held November 4, 2025. • City Clerk Jennifer Schreiber noted the following public announcements: - Absentee Voting - Data Center Ordinance Update - Parks Winter Preparations City Council Minutes: October 13, 2025 Page 1 1 7 G. Council Liaison Updates • Planning Commission — Council Member Christianson gave an update of meetings held on October 7, 2026. This included a joint meeting of City Council and Planning Commission regarding a proposed data center ordinance and the regular meeting of the Planning Commission. The Planning Commission and City Council will hold another joint meeting on November 3, 2026. At the regular meeting the Planning Commission approved variances, and conditional use permits as presented. • Economic Development Authority — Council Member Hinz provided an update on the meetings held on September 24 and October 8, 2026. During the September meeting, the EDA reviewed all EDA-owned properties within the core downtown area and held a closed meeting to discuss property offers. At the October meeting, the EDA approved membership dues for Wright County Economic Development Partnership, a facade loan for a business located in Block 35, and a minor amendment to Affordable Housing TIF District 1-43. • Monticello Orderly Annexation Area Joint Planning Board —Mayor Hilgart noted that the board reviewed an item for business expansion. H. Department Updates • Construction Update — Matt Leonard, Public Works Director/City Engineer, gave an update on current construction projects. • Citizen Comments Response regarding Haven Ridge neighborhood concerns. City Administrator Rachel Leonard provided a response to concerns raised by Haven Ridge homeowners regarding window issues in their homes. The homeowners expressed frustration with the builder and questioned the City's role in resolving the matter. Ms. Leonard acknowledged that the City recognizes there are issues with the windows; however, she clarified that the City's authority to intervene is limited. City staff have reviewed the zoning approvals for the development and compliance with building code requirements. In addition, the City has communicated with the builder to ensure all building permits are in place and that the required inspections are completed. Ms. Leonard also noted that the City will continue to be engaged in the situation and intervene as appropriate. 2. Consent Agenda: Motion by Council Member Gabler to approve the Consent Agenda excluding item 2K. Council Member Martie seconded the motion. Motion carried unanimously. City Council Minutes: October 13, 2025 Page 2 1 7 A. Consideration of approving the payment of bills. Action taken: Approved the bill and purchase card registers for a total of $1,471,554.21. B. Consideration of approving new hires and departures for City departments. Action taken: Approved the hires for the Monticello Community Center and terminations for the Fire Department and Monticello Community Center. C. Consideration of approving the sale/disposal of surplus city property for the Public Works Department. Action taken: No report. D. Consideration of adopting Resolution 2025-62 accepting donations of $500 from the Monticello Lions for Monti arts artists and $2,235 from the Coors/MMBA Fundraiser for Fire Department general use. Action taken: Adopted Resolution 2025-62 accepting the donations. E. Consideration of approving application for a temporary gambling permit for a raffle to be conducted by the Wright County Whiskey Club on December 13, 2025, at the Monticello Community Center. Action taken: Approved the temporary gambling permit for the Wright County Whiskey Club. F. Consideration of approving an application for a temporary gambling permit for a raffle to be conducted by the National Wild Turkey Federation — Sand Dunes Gobbler Chapter for an event to be held on March 7, 2026, at River City Extreme, 3875 School Boulevard. Action taken: Approved the temporary gambling permit for the National Wild Turkey Federation — Sand Dunes Gobbler Chapter. G. Consideration of acknowledging receipt of a petition for annexation received from Anthony Banyai and proceeding with verification of compliance with the Joint Resolution of Orderly Annexation. Action taken: Acknowledged receipt of the annexation petition from Anthony Banyai. H. Consideration of approving a two-year contract with a one-year extension option with RES Specialty Pyrotechnics for the Riverfest fireworks display for a two-year total of $36,000. Action taken: Approved the two-year contract with a one-year extension option with RES Specialty Pyrotechnics in the amount of $36,000. Consideration of accepting the bid from Davis Mechanical for the replacement of HVAC Controls at the Monticello Library in the amount of $34,220. Action taken: Accepted the bid from Davis Mechanical in the amount of $34,220. J. Consideration of approving a contract amendment with AE2S for additional design services for the Monticello Water Supply Treatment Plant in the amount of $40,754. Action taken: Approved the contract amendment with AE2S in the amount of $40,754. City Council Minutes: October 13, 2025 Page 3 1 7 K. Consideration of authorizing American Engineering Testing (AET) to complete material testing for the Golf Course Road Trail Project at a cost of $28,427. Action taken: ITEM WAS REMOVED FROM THE CONSENT AGENDA. L. Consideration of approving a request for a Conditional Use Permit for a proposed driveway paving in the rear yard, in an R-1 (Single -Family) residential district. Applicants: Josh and Andrea Sigler. Action taken: Approved the Conditional Use Permit, subject to conditions in Exhibit Z and based on findings in Resolution PC-2025-38. M. Consideration of approving a request for extension of final plat, final stage planned unit development, zoning and development contract approval for Broadway Plaza to May 25, 2026. Action Taken: Approved the six-month extension to May 25, 2026, conditioned on: 1) All prior approved conditions and comments are applicable and shown in Exhibit Z of the November 25, 2024, City Council staff report; 2) The development contract and PUD Agreement are revised and executed to reflect escrows and fees at prevailing rate at the time of plat recording; 3) All applicable fees and escrows for site development and building construction shall be paid at prevailing rate; 4) Terms and conditions of the Development Contract and PUD Agreement remain in force, except as noted for fees and escrows; and 5) Final Stage PUD and rezoning approvals are contingent on the extension of the final plat and the execution and recording of the final plat. N. Consideration of approving a request for an amendment to Conditional Use Permit (CUP) for Planned Unit Development for Carcone Second Addition, for interim improvements to support the land use of vehicle sales, display, and storage. Applicant: Aeron Ashbrook. Action taken: Approved the amendment to the Conditional Use Permit, subject to conditions in Exhibit Z and based on findings in Resolution PC-2025-37. 2A. Consideration of items removed from the consent agenda for discussion K. Consideration of authorizing American Engineering Testing (AET) to complete material testing for the Golf Course Road Trail project at a cost of $28,427 Council Member Gabler stated that she will abstain from the item as she is employed by the main contractor for the project. Motion by Council Member Martie to authorize AET to complete material testing for the Golf Course Road Trail project at a cost of $28,427. Council Member Christianson seconded the motion. Motion carried 4-0; Council Member Gabler abstained. City Council Minutes: October 13, 2025 Page 4 1 7 3. Public Hearing: 4. Regular Agenda: A. Consideration of accepting Keystone Compensation Group's classification and compensation study results and implementing the recommendations effective January 1, 2026 City Administrator Rachel Leonard gave an overview of the compensation study and noted that the last review was completed in 2019. The City periodically reviews its job classification and compensation system to ensure accuracy, equity, and market competitiveness. The consultant presented the findings to City Council at a special meeting on September 8. The study reviewed position descriptions, point assignments, and updated salary data from 19 comparable cities. Findings showed that Monticello's pay levels average 91% of the market median and 89% of the market maximum, placing the City about 9-11% below market averages, with larger gaps at higher job levels. Keystone recommended adjusting salary ranges to align range maximums with market averages while maintaining pay equity. If approved, employees will be placed at the appropriate pay grade and at the nearest half-step at or above their current rate of pay. The overall compensation structure, including the number of grades, steps, and range spreads, will remain unchanged. There was minimum discussion. Council Member Gabler requested information on the number of full-time employees over the last few years. Council Member Christianson added to have the number over the last 10 years. Ms. Leonard noted that staff will provide that information. Motion by Council Member Martie to accept Keystone Compensation Group's classification and compensation study results and implementing the recommendations effective January 1, 2026. Council Member Christianson seconded the motion. Motion carried unanimously. B. Consideration of accepting the Monticello Industrial Alternative Urban Areawide Review (AUAR) Scoping Document and adopting Resolution 2025-63 ordering preparation of an Alternative Urban Areawide Review for Monticello Industrial, a proposed 550-acre industrial development study area including a technology campus scenario that could include a data center and appurtenant uses as proposed by Monticello Tech LLC City Council Minutes: October 13, 2025 Page 5 1 7 Community Development Director Angela Schumann presented the item. She noted that Monticello Tech LLC has proposed developing a 550-acre technology campus in the Monticello Orderly Annexation Area, located south of 85th Street and east of Highway 25. Although no formal land use application has been submitted, a concept plan was presented to the Planning Commission and City Council in December 2024. Following that meeting, the property owners petitioned for annexation, and the City determined that an environmental review would be the next step. Under Minnesota Rules 4410.3610 and the Monticello Orderly Annexation Agreement, the City of Monticello serves as the Responsible Government Unit (RGU) for the project. The City directed the preparation of an Alternative Urban Areawide Review (AUAR) to evaluate environmental impacts and develop mitigation strategies for two potential development scenarios: a technology campus or light industrial uses consistent with the Monticello 2040 Comprehensive Plan. A required AUAR Scoping Document was prepared by Kimley Horn and reviewed by City staff and WSB. The document was released for a 30-day public comment period. The City received feedback from four government agencies and 78 members of the public, which was incorporated into the final document. The AUAR process will include a 120-day review period, a public comment phase, and Council consideration of the final document —anticipated in late January or early February 2026. The final AUAR will include a mitigation plan committing the City to address potential environmental impacts. Council Member Hinz questioned the ramifications if an AUAR was not completed. Alison Harwood, WSB, responded that if City Council did not move forward with the AUAU, the proposed land uses would not be able to move forward. In addition, if any future developments were proposed for the area, they would have to do their own environmental reviews. Motion by Council Member Christianson to accept the AUAR Scoping Document and to adopt Resolution 2025-63 ordering the preparation of an Alternative Urban Areawide Review for Monticello Industrial, a proposed 550- acre industrial development study area including a technology campus scenario that could include a data center and appurtenant uses as proposed by Monticello Tech LLC. Council Member Martie seconded the motion. Motion carried unanimously. City Council Minutes: October 13, 2025 Page 6 1 7 C. Consideration of approving Change Order 1 for the Golf Course Road Trail project in the amount of $82,180 City Engineer/Public Works Director Matt Leonard gave a brief overview of the item. He noted that Monticello received a $800,000 Transportation Alternatives grant to build a 10-foot pathway along Golf Course Road between Elm Street and 7th Street, part of the City's Safe Routes to School Plan. The original project extended to Chelsea Road but was shortened due to costly bridge improvements required to cross 1-94. MnDOT approved the scope change while maintaining full funding, split between FY 2025 and FY 2026. The project includes roadway reclamation, curb and gutter installation, storm sewer improvements, and restriping for a center turn lane. During construction, crews found the existing 1970s watermain was two feet higher than expected, creating conflicts with new storm sewer crossings. About 150 feet of watermain, a service line, and a hydrant must be lowered and relocated. This adjustment results in an $82,180 change order, mostly due to revised bid quantities and a minor material cost increase for upgrading from a 6-inch to an 8-inch watermain. The work was completed to maintain the schedule. As the project uses federal funds, a formal change order is required to document these unit quantity changes, which may still fluctuate as work continues. Motion by Council Member Hinz to approve Change Order 1 for the Golf Course Road Trail project in the amount of $82,180. Council Member Martie seconded the motion. Motion carried 4-0-1; Council Member Gabler abstained as she is employed by the primary contractor of the project. 5. Adjournment The meeting was adjourned at 7:48 p.m. Recorder: Jennifer Schreiber A VI JV Attest: nAA City Administrator City Council Minutes: October 13, 2025 Page 7 17