City Council Minutes 05-26-2026MONTICELLO CITY COUNCIL
REGULAR MEETING MINUTES
Tuesday, May 26, 2026 — 6:30 p.m.
Mississippi Room, Monticello Community Center
Present: Lloyd Hilgart, Charlotte Gabler, Tracy Hinz, and Lee Martie
Absent: Kip Christianson
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 Councilmember Hinz to approve the agenda. Councilmember Gabler
seconded the motion. Motion carried unanimously.
C. Approval of Meeting Minutes
• Regular Meeting Minutes from May 11, 2026
Motion by Councilmember Martie to approve the meeting minutes.
Councilmember Hinz seconded the motion.
D. Public Service Announcement
• The City of Monticello was presented with the Conservation Minnesota's
2026 Blazing Star Award and the MRPA 2025 Award of Excellence for the
West Bridge Park project.
E. Citizen Comments
The following spoke under citizen comments:
• Ben Anderson, 4208 Eakern Circle. Mr. Anderson addressed the Council
regarding the Standard of Conduct. He suggested adding provisions requiring
public disclosure when a councilmember or candidate has been the subject
of a law enforcement or media investigation within the past five years, as
well as disclosure of political contributions made between elected officials.
He also expressed concerns regarding transparency, campaign finance
reporting, and potential conflicts of interest.
City Administrator Rachel Leonard clarified that the document is intended to
provide guidance and transparency regarding expectations for elected
officials and is primarily self -enforcing. She noted that the standard of
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conduct does not replace or supersede existing laws, regulations, or
ordinances. Any allegations of conduct that may violate City code, state law
or other legal requirements would be reviewed in consultation with the City
Attorney, and recommendations may be provided to the City Council as
appropriate. Any additional actions related to the Standard of Conduct would
be at the discretion of the City Council.
F. Council Liaison Updates
• Economic Development Authority (EDA) — Councilmember Hinz commented on
actions taken at the May 13, 2026 meeting, including approvals related to
financing and development agreements for the New Public Works facility and a
proposed industrial development in the Otter Creek Business Park. The EDA also
authorized site investigation work for the proposed development and received
an update on current economic development projects and prospects.
• Monticello Orderly Annexation Area Joint Planning Board — Councilmember
Martie reported on the May 13, 2026 meeting. The MOAA held public hearings
and approved a variance and an interim use permit related to a home extended
business. They also discussed existing permits and ongoing floodplain-related
discussions with the Minnesota Department of Natural Resources (DNR).
G. Department Updates
• Finance Update — Liz Poate, Assistance Finance Director, presented an update of
last year's activities in the Finance Department.
• Heritage Day Overview — Parks & Recreation Director gave an overview of the
event planned for June 13, 2026.
• Construction Update — Public Works Director/City Engineer Matt Leonard gave
an update on current construction projects.
2. Consent Agenda:
Motion by Councilmember Hinz to approve the Consent Agenda. Councilmember
Martie seconded the motion. Motion carried unanimously.
A. Approve the payment of bills. Action taken: Approved the bill and purchase
card registers for a total of $1,027,700.70.
B. Approve the new hires and departures for City departments. Action taken:
Approved the hires for Hi -Way Liquor and for Monticello Community Center
(MCC) and terminations for the MCC.
C. Approve the disposal of surplus City property. Action taken: No report this cycle.
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D. Adopt Resolution 2026-36 accepting donations totaling $77,708 from local
businesses for the Monticello Skate Park project. Action taken: Adopted
Resolution 2026-33 accepting the donations.
E. Approve a special event permit for the Raise the Ruff fundraising event to take
place downtown on Thursday, June 10, 2026. Action taken: Approved the
special event permit, including use of West Bridge Park, and closing of a
portion of Walnut Street and River Street contingent on notification of
surrounding business owners, receipt of liability insurance, and continued
coordination with the Street Department, Parks Department, and Chief
Building Official.
Approve a special event permit for Monticello VFW Post 8731, including the use
of City resources for Summerfest 2026 event on August 15, 2026. Action taken:
Approved the special event permit, including the use of City resources.
G. Approve a special event permit on July 9, 2026 for the Monticello Community
Center Block party, including waiving climbing wall fees as part of the event.
Action taken: Approved the special event permit, including waiving climbing
wall fess.
H. Approve two special event permits for outdoor entertainment at Nordic Tap
House (106 Walnut Street), including street closures and use of City resources on
July 25, 2026 and August 22, 2026. Action taken: Approved two special event
permits, including closing a portion of Walnut Street and use of City resources,
contingent on notification of surrounding property owners.
Call for a public hearing on June 22, 2026, on an ordinance amending the fee
schedule for Parks, Open Space, and Public Use Dedication. Action taken: Set the
public hearing for June 22, 2026.
Approve a license agreement between the City of Monticello and Moon Motor
Sales, Inc. for a security fenceline across Outlot A, Otter Creek Crossing. Action
taken: Approved the license agreement between the City of Monticello and
Moon Motor Sales, Inc.
K. Adopt Resolution 2026-37 amending the Preliminary Plat of Meadowbrook and
Planned Unit Development (PUD) adjustment for Meadowbrook. Applicant:
Lucinda Spanier. Action taken: Adopted Resolution 2026-37 amending the
Preliminary Plat of Meadowbrook, subject to the conditions in Exhibit Z and
based on findings in said resolution.
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Adopt Resolution 2026-38 amending the Monticello 2040 Vision + Plan
(Comprehensive Plan), Chapter 3, "Land -Use, Growth and Orderly Annexation"
re -guiding a parcel from Light Industrial Park to Community Commercial, and
adopt Ordinance 867 and Resolution 2026-39 amending the Monticello Zoning
Map for rezoning from Industrial to Business Campus District (IBC), to Highway
Business District (B-3), and Resolution 2026-40 approving a Conditional Use
Permit for Vehicle Sales and Rental in Highway Business District (B-3). Applicant:
Moon Motor Sports (supermajority vote required). Action taken: Adopted
Resolution 2026-38 approving an amendment to the Comprehensive Plan,
Chapter 3, re -guiding a parcel from Light Industrial Park to Community
Commercial, subject to the conditions in Exhibit Z and based on findings in said
resolution; adopted Resolution 2026-39 and Ordinance 867 approving an
amendment to the Monticello Zoning Map for rezoning from Industrial and
Business Campus District (IBC), to Highway Business District (B-3), subject to
the conditions in Exhibit Z and based on findings in said resolution; and
adopted Resolution 2026-40 approving a Conditional Use Permit for Vehicle
Sales and Rental in Highway Business District (B-3), subject to the conditions in
Exhibit Z and based on findings in said resolution.
M. Adopt Resolution 2026-41 and Ordinance 868 and Resolution 2026-41 amending
the Monticello Zoning Map for rezoning from Industrial and Business Campus
District (IBC) to Regional Business District (B-4) and adopt Resolution 2026-42
approving a Conditional Use Permit for a restaurant use within 300' of a
residentially zoned property. Applicant: Wan Qun Lin. Action taken: Adopted
Resolution 2026-41 and Ordinance 868 approving an amendment to the
Monticello Zoning Map for rezoning from Industrial and Business Campus
District (IBC) to Regional Business District (B-4), subject to the conditions in
Exhibit Z and based on findings in said resolution and adopted Resolution 2026-
42 approving a Conditional Use Permit for a Restaurant use within 300' of a
residentially zoned property, subject to the conditions in Exhibit Z and based
on findings in said resolution.
N. Adopt Resolution 2026-43 authorizing the Second Amendment to Development
Contract and Planned Unit Development (PUD) for Stony Brook Village. Action
taken: Adopted Resolution 2026-43 approving the Second Amendment to
Development Contract and PUD for Stony Brook Village and authorizing the
Mayor and City Administrator to execute said Agreement, and further
authorizing the Mayor and City Administrator to negotiate and specify final
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changes or amendments necessary to execute the intention of the City Council
more fully with respect to the proposed project.
O. Adopt Resolution 2026-44 accepting improvements and authorizing final
payment of $144,161.01 to Valley Paving, Inc. for Broadway Street Roadway and
Utility Improvement Project and 7t" Street retaining wall, Rectangular Rapid
Flashing Beacon (RRFB), and sidewalk improvement project. Action taken:
Adopted Resolution 2026-44 accepting improvements and authorizing final
payment.
P. Adopt Resolution 2026-45 approving a detour agreement with Minnesota
Department of Transportation (MNDOT) for the TH 25 project between Buffalo
and Monticello for State Project No. 8605-54. Action taken: Adopted Resolution
2026-45 approving a detour agreement with MNDOT.
3. Public Hearing:
4. Regular Agenda:
A. Consideration of accepting the 2025 Annual Comprehensive Financial Report
Kelsey Larson, Abdo, presented the City's 2025 annual financial audit. She
reported that there were no instances of noncompliance with Minnesota
statutes or federal grant requirements were identified. She gave a presentation
which included an overview of the City's financial position, fund balances, debt
obligations, enterprise funds, cash reserves, and key financial performance
indicators. Mr. Larson noted that the City maintained healthy fund balances,
strong cash reserves, declining debt levels, and positive operating results in its
enterprise funds.
There was minimal discussion among City Councilmembers.
Motion by Councilmember Gabler to accept the 2025 Annual Comprehensive
Financial Report. Councilmember Martie seconded the motion. Motion carried
unanimously.
B. Consideration of adopting Resolution 2026-46 amending the Monticello 2040
Vision + Plan (Comprehensive Plan), Chapter 3, "Land -Use, Growth and Orderly
Annexation", reguiding certain parcels from the light industrial park land use
designation to other land use designations and including any other amendments
to related section of Chapter 3 necessary to regulate land use for the subject
area. Applicant: City of Monticello
Community Development Director Angela Schumann presented a proposed
amendment to the 2040 Comprehensive Plan future land use map for four
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parcels within the Monticello Orderly Annexation Area west of the City. She
noted that the amendment would revise land use guidance to allow a mix of
estate residential, low -density residential, and light industrial park uses. Ms.
Schumann explained that the proposal is intended to support the City's housing
goals, particularly opportunities for high -amenity single-family residential
development, while retaining land for future industrial development.
Minimal discussion occurred among Councilmembers.
Motion by Councilmember Gabler to adopt Resolution 2026-46 amending the
Comprehensive Plan, Chapter 3, reguiding land use designations for certain
properties as notices, with land use guidance as shown on Exhibit A of said
resolution and based on findings in said resolution. Councilmember Hinz
seconded the motion. Motion carried unanimously.
C. Consideration of adopting Resolution 2026-47 amending the Construction
Manager at Risk contract with Rice Lake Construction Group for the Monticello
Water Treatment Plant for a guaranteed maximum price of $41,775,323
Public Works Director/City Engineer Matt Leonard presented a request for to
amend the Construction Manager at Risk (CMAR) agreement with Rice Lake
Construction Group for construction of the new water treatment facility. He
reviewed the project history, including feasibility studies, design development,
and the CMAR procurement process.
Mr. Leonard reported that Rice Lake had completed the bidding process and
provided a Guaranteed Maximum Price of approximately $41.8 million, with a
total estimated project cost of approximately $45 million, including engineering
and related expenses. Funding will include $11 million in state bonding funds,
anticipated Public Facilities Authority assistance, and utility -supported financing.
Construction is expected to begin upon receipt of final regulatory approvals, with
completion anticipated in December 2028.
Mayor Hilgart asked staff to address the manganese issue. Matt Leonard noted
that manganese is not currently regulated at the federal level, though it is
monitored by the Minnesota Department of Health as an emerging contaminant
and may be subject to future regulation. Many communities are already treating
for manganese, and the State has established funding programs to support
related water treatment improvements. Rachel Leonard added that the City is
taking a proactive approach to water quality management, noting the
importance of addressing emerging concerns such as manganese before
regulatory requirements are imposed. She explained that a centralized water
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treatment facility allow the City to treat water at the source, rather than relying
on individual homeowners to manager treatment.
There was no further discussion.
Motion by Councilmember Hinz to adopt Resolution 2026-47 amending the
CMAR Contract with Rice Lake Construction Group for the Monticello Water
Treatment Plan for a guaranteed maximum price of $41,775,323.
Councilmember Martie seconded the motion. Motion carried unanimously.
D. Consideration of approving a professional services agreement with WSB for the
design and bidding services for the Phase IV Bertram Chain of Lakes Athletic Park
Improvements Project for an among not to exceed $904,024
Parks & Recreation Director Tom Pawelk presented an update on Phase IV
development of the Bertram Chain of Lakes Regional Athletic Park following City
Council adoption of the master plan and feasibility report. The proposed
professional services agreement will advance design and bid preparation for the
outdoor athletic complex, including multiple multipurpose and youth athletic
fields, regrading and irrigation improvements, sports lighting, scoreboards,
expanded parking, a concession/restroom facility, utilities, stormwater
management, and related site infrastructure. He noted that design work will
continue through 2026 with bidding anticipated in early 2027, and that a
separate future agreement will be brought forward for construction
administration following bid award.
Minimal discussion occurred among City Councilmembers.
Motion by Councilmember Gabler to approve the Professional Services
Agreement with WSB for the design and building services for the Phase IV
Bertram Chain of Lakes Athletic Park Improvement Project for an amount not
to exceed $904,024 and to authorize the Mayor and City Administrator to
execute the agreement. Councilmember Martie seconded the motion. Motion
carried unanimously.
Consideration of adopting Resolution 2026-48 accepting bids and awarding
contract to Kuechle Underground Inc. for the Monticello Ditch 33 Proiect in the
amount of $1,945,722.60
Matt Leonard presented the Ditch 33 stormwater improvement project, which
includes installation of a new 48-inch stormwater outlet pipe to the Mississippi
River to replace and bypass a deteriorating segment of Wright County Ditch 33.
He noted that the project is intended to improve stormwater passage from areas
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within the City and surrounding township. He reported that bids were received,
with Keeley Underground submitting the low bid of approximately $1.9 million.
The project is supported by multiple funding sources, including MnDOT PROTECT
program funds, Wright County water quality funding, MPCA grants, and
anticipated additional MnDOT funding, totaling approximately $2.7 million in
potential grant support against an estimated total project cost of approximately
$2.4 million. Construction is expected to begin in July, pending approval, with
completion anticipated later in the fall.
Minimal discussion occurred among City Councilmembers.
Motion by Councilmember Martie to adopt Resolution 2026-48 accepting bids
and awarding contract to Kuechle Underground Inc. for the Monticello Ditch 33
Project in the amount of $1,945,722.60. Councilmember Gabler seconded the
motion. Motion carried unanimously.
5. Additional Item
Mayor Hilgart initiated discussion regarding the former Chamber of Commerce building.
The City Council reached a consensus to move forward with obtaining quotes for its
removal.
6. Adjournment
The meeting was adjourned at 8:17 p.m.
Jennifer Schrei
City Administrator
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