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City Council Minutes 10-27-2025MONTICELLO CITY COUNCIL REGULAR MEETING MINUTES Monday, October 27, 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 Gabler to approve the agenda. Council Member Hinz seconded the motion. Motion carried unanimously. C. Approval of Meeting Minutes • Joint Meeting Minutes from October 7, 2025 • Special Meeting Minutes from October 13, 2025 • Regular Meeting Minutes from October 13, 2025 Motion by Council Member Gabler to approve the regular meeting minutes. Council Member Martie seconded the motion. Motion carried unanimously. D. Citizen Comments • None. E. Public Service Announcements • City Clerk Jennifer Schreiber noted the following public announcements: - Absentee Voting - Election Day - Joint Workshop — Data Center Ordinance - Hi -Way Liquors' Fall Wine Sale - Farmers Market - Winter Coat Drive - Snowplow Route Checks City Council Minutes: October 27, 2025 Page 1 1 6 F. Council Liaison Updates • Industrial & Economic Development Committee (IEDC) — Council Member Gabler reported on the special meeting held October 7. The meeting included a presentation from the Monticello School District on the proposed referendum. • Economic Development Authority — Council Member Hinz commented on the meeting held October 22. The EDA approved a fagade loan for property at 154 West Broadway. • 1-94 Coalition - Council Member Gabler gave an update on the October 16 meeting, noting that dues will remain unchanged for 2026. The meeting also included updates on state and federal projects. • Parks, Arts & Recreation Commission (PARC) — Council Member Gabler provided a summary of the commission's September and October meetings. In September, the group reviewed the park dedication process, the Senior Center facility use policy and received department updates. In October meeting the group reviewed a draft Facility and Park Event Space Fee Waiver Policy. G. Department Updates • Construction Update — Matt Leonard, Public Works Director/City Engineer, gave an update on current construction projects. • Wright County Sheriff's Office Quarterly Update - Sergeant McMackins, WCSO, presented the quarterly update. • Arvig/Fibernet Quarterly Update — Mark Birkholz, Arvig, presented the quarterly update 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 $1,027,686.95. B. Consideration of approving new hires and departures for City departments. Action taken: Approved the hires for the Monticello Community Center (MCC) and terminations for MCC and Streets. 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 2025-64 accepting Outdoor Recreation Grant and authorizing execution of grant agreement for Bertram Chain of Lakes Athletic Park. Action taken: Adopted Resolution 2025-64 accepting the grant. City Council Minutes: October 27, 2025 Page 2 1 6 E. Consideration of accepting the bid from WH Security for the replacement of fire monitoring system at the Monticello Library in the amount of $10,565. Action taken: Accepted the bid and approved contract with WH Security for $10,565. Consideration of adopting Resolution 2025-67 accepting bids and awarding contract to eRoof LLC for the replacement of hail damaged property at thirteen city facilities in the amount of $145,779.89. Action taken: Adopted the resolution and approved contract with eRoof LL in the amount of $145,779.89. G. Consideration of approving a contract with HCM Architects to develop the scope and specifications for water intrusion at the Monticello Community Center in the amount of $63,580. Action taken: Approved the contract of HCM Architects for $63,580. H. Consideration of approving a utility easement at Freeway Fields PID155043000100. Action taken: Approve the utility easement at Freeway Fields. 3. Public Hearing: A. Consideration of adopting Resolution 2025-65 approving the certification of delinquent utility billing accounts to the 2026 payable tax year Sarah Rathlisberger, Finance Director, gave a presentation on both the delinquent utility billing and delinquent miscellaneous accounts. Accounts must be paid by November 26 to avoid certification to Wright County for taxes payable 2026. Ms. Rathlisberger noted that 256 accounts are delinquent for a total of $296.135.44. This amount is likely to decrease as people pay their balances before November 26. Mayor Hilgart requested that the final number of delinquent accounts be provided after November 26. Ms. Rathlisberger stated that she would provide the information in the December Council Connection. Mayor Hilgart opened the public hearing. No one testified. Mayor Hilgart closed the public hearing. There was minimal discussion. Motion by Council Member Christianson to adopt Resolution 2025-65 approving the certification of delinquent utility billing accounts to the 2026 payable tax year. Council Member Martie seconded the motion. Motion carried unanimously. City Council Minutes: October 27, 2025 Page 3 1 6 B. Consideration of adopting Resolution 2025-66 approving the certification of delinquent miscellaneous accounts receivable to the 2026 payable tax year Finance Director Sarah Rathlisberger noted that there were seven delinquent accounts for a total of $1,264.32. Mayor Hilgart opened the public hearing. No one testified. Mayor Hilgart closed the public hearing. Motion by Council Member Hinz to adopt Resolution 2025-66 approving the certification of delinquent miscellaneous accounts receivable to the 2026 payable tax year. Council Member Christianson seconded the motion. Motion carried unanimously. 4. Regular Agenda: A. Consideration of approving policies related to the Minnesota Paid Leave (Paid Leave) program including a 50/50 premium split between the City of Monticello and non -bargaining unit employees, utilizing the State of MN as the Plan provider, and the discontinuation of the weekly disability benefit for non - bargaining employees effective 1/1/2026 Human Resources Manager Tracy Ergen provided an overview of the upcoming Minnesota Paid Leave program, which takes effect January 1, 2026. The program will provide paid leave benefits for employees who need time off to care for themselves or family members. Participation is mandatory for all Minnesota employers and employees, including full-time, part-time, seasonal, and elected officials. Ms. Ergen noted that the City must make several policy decisions prior to implementation, including the premium contribution level, plan provider, and coordination with existing disability benefits. A formal Paid Leave policy will be brought to the City Council for approval in November. Ms. Ergen stated staff's recommendation: • Premium Contributions: Implementing a 50/50 employer -employee premium split, consistent with other cities. The 2026 rate will be 0.88% of wages, with the City responsible for 0.44%. • Plan Provider: Utilizing the State Is plan rather than a self -insured or private plan due to budget uncertainty and additional administrative demands. • Disability Benefits: Discontinuing the City's short-term weekly disability benefit for non -bargaining unit employees, as the new Paid Leave program City Council Minutes: October 27, 2025 Page 4 1 6 offers greater coverage and allows employees to supplement benefits with PTO if desired. The estimated total annual budget impact of the Paid Leave program is $23,000 across all City funds after accounting for savings from eliminating the current weekly disability benefit. Council Member Gabler questioned if the City will know when someone will apply. Ms. Ergen noted that the state has a requirement that the employee notify the employer. There was no further discussion. Motion by Council Member Hinz to approve policies related to the Minnesota Paid Leave program including a 50/50 premium split between the City of Monticello and non -bargaining unit employees, utilizing the State of MN as the Plan provider, and the discontinuation of the weekly disability benefit for non - bargaining employees effective 1/1/2026. Council Member Martie seconded the motion. Motion carried unanimously. B. Consideration of adopting Ordinance 859 implementing a gas energy franchise fee on CenterPoint Energy Minnesota Gas Public Works Director/City Engineer provided an overview of funding options for the City's pavement management program, which maintains approximately 65 miles of roadways. Currently, funding comes from property taxes, Municipal State -Aid Funds, and special assessments levied on benefiting properties. The City Council reviewed the potential use of franchise fees as an alternative funding source during special meetings on April 28 and August 11, 2025. Following these discussions, Council directed staff to pursue implementing a gas franchise fee to support pavement management projects. Mr. Leonard noted that the fee would be a dedicated revenue source for street maintenance and could serve as a local match for future state and federal grants. The fee could reduce or eliminate special assessments for standard reconstruction and mill/overlay projects, though assessments would still apply to urban -to -rural conversion projects. Mr. Leonard provide the proposed gas franchise fee structure which was: • residential: $7/month and • Firms: $7—$292/month, based on usage and size The fee would take effect 90 days after notification to CenterPoint Energy and filing with the Public Utilities Commission, with an anticipated start date of February 1, 2026. City Council Minutes: October 27, 2025 Page 5 1 6 Council Member Gabler questioned whether the balance of this new fund could be included in the Council Connection. Ms. Rathlisberger noted that it could be noted in the Council Connection. Matt Leonard stated that there will be information on the balance and the projects being funded. There was no further discussion. Motion by Council Member Hinz to adopt Ordinance 859 implementing a gas energy franchise fee on CenterPoint Energy Minnesota Gas. Council Member Christianson seconded the motion. Motion carried unanimously. C. Consideration of approving a Professional Services proposal from WSB for a Step 1 Grant application through the Greater Minnesota Regional Parks and Trails C'nmmi-.-.inn Parks & Recreation Director Tom Pawelk gave an overview and noted that the City is seeking professional assistance to complete the Step One application for regional designation of The Pointes at Cedar through the Greater Minnesota Regional Parks and Trails Commission (GMRPTC). Achieving regional designation would make the park eligible for potential state grant funding from the Legacy Parks and Trails Fund and includes a professional assessment to ensure high standards for recreation and natural environments. Approval of the Step One application is critical for the park to advance toward inclusion in the Greater Minnesota Regional Park and Trail System and to guide informed implementation of the Master Plan. City Council had minimal discussion on the item. Motion by Council Member Christianson to approve a Professional Services proposal from WSB (capped at $16,500) for a Step 1 Grant application through the Greater Minnesota Regional Parks and Trails Commission. Council Member Martie seconded the motion. Motion carried unanimously. S. Adjournment The meeting was adjourned at 7:44 p.m. Recorder: Jennifer Schreibe U _) Attest: WV City Administrator City Council Minutes: October 27, 2025 Page 6 1 6