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City Council Minutes 10-12-2026MONTICELLO CITY COUNCIL REGULAR MEETING MINUTES Monday, October 12, 2026 — 6:30 p.m. Mississippi Room, Monticello Community Center Present: Lloyd Hilgart, Kip Christianson, Charlotte Gabler, Tracy Hinz, 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 Councilmember Gabler to approve the agenda with an addition to regular agenda to discuss two items for the 2027 budget. Councilmember Hinz seconded the motion. Motion carried unanimously. C. Approval of Minutes • Special Meeting minutes of September 28, 2026 • Regular Meeting minutes of September 28, 2026 Motion by Councilmember Gabler to approve the minutes. Councilmember Martie seconded the motion. Motion carried unanimously. D. Public Service Announcement • City Clerk Jennifer Schreiber noted the following announcements: - Temporary CSAH 39 Closure for Ditch 33 Project - Hydrant Flushing - City Parks Winterization - Absentee Voting - Annual Winter Coat Drive E. Citizen Comments • Ann Melville, 137 W. River Street. Ms. Melville thanked the City Council and Parks, Arts, & Recreation Board for their efforts over the past five years to complete the new pickleball courts at Bertram Chain of Lakes Athletic Complex. • Barb Gaddo. Ms. Gaddo asked whether staff would respond individually to questions submitted during the recent Planning Commission public hearing. Staff clarified that a summary of public comments and related information City Council Minutes: October 12, 2026 Page 1 1 6 would be provided to the City Council. She requested that the minutes reflect the limited time available for the Planning Commission to review written comments and that individual responses would not be provided. • Theodore Roberts, 306 W 6t" Street. Mr. Roberts apologized to the Mayor and Council for previous comments directed toward City leadership. He discussed the proposed data center, acknowledging both its benefits and residents' concerns, particularly regarding noise sensitivity among individuals with disabilities. He also raised concerns about pedestrian safety during sidewalk construction, noting accessibility challenges for individuals with mobility limitations. • Jenna Vandenboom. Ms. Vandenboom expressed concerns about the lengthy presentation at the recent Planning Commission public hearing, which prevented some residents from speaking before they had to leave. She suggested revising the public comment process and emphasized the importance of Planning Commission members being prepared and making informed, independent decisions. • Holly Newmann. Ms. Newmann requested that the City evaluate potential Xcel Energy transmission line routes and setbacks, particularly near the manufactured home park and Highway 25. She expressed concern that the City would have limited influence over the final route following project approval and urged staff to investigate potential impacts and alternative routes. Mayor Hilgart explained that the City could provide input on proposed transmission line routes, but final decisions would be made by the State and Public Utilities Commission (PUC). Ms. Newman expressed concern that manufactured home park residents could face displacement without compensation if transmission lines were routed through the property. Councilmember Christianson explained that while the City does not have regulatory authority over transmission line siting, it can provide input through the Public Utilities Commission (PUC) process. He noted that the process includes opportunities for public and City input and that proposed routes may change based on feedback. Councilmember Christianson also explained that the data center proposal is subject to a phased review process established by the City's PUD ordinance. He noted that the project is currently in the application phase, with annexation and development agreements to be considered at later stages. City Council Minutes: October 12, 2026 Page 2 1 6 City Administrator Rachel Leonard clarified that because the data center application was not on the agenda, the Council could not discuss potential conditions, negotiations, or its evaluation of the project. These matters would be addressed at a future public meeting when the application is formally considered, allowing the public an opportunity to observe and participate. • Jeff O'Neill, 815 West River Street. Mr. O'Neill commended City staff and the Planning Commission for their thorough review and presentation of the complex data center proposal. He emphasized the importance of the detailed information provided in supporting informed decisions and encouraged residents to watch the Planning Commission meeting to better understand the proposal and its potential impacts. F. Council Liaison Updates • Planning Commission — Councilmember Christianson reported that the Planning Commission met on October 6, 2026, and recommended approval of the Edmondson Business Center data center applications by a 4-1 vote and the Otter Creek Crossing Ninth Addition preliminary plat unanimously. A conditional use permit application was withdrawn. G. Department Updates • 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 excluding item F. Councilmember Christianson 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 $1,500,365.98. B. Approve the new hires and departures for City departments. Action taken: Approved the hires for the Monticello Community Center (MCC) and terminations for the MCC. C. Approve the disposal of surplus City property. Action taken: No report this cycle. D. Approve an updated Letter of Agreement between the City of Monticello and Northern States Power Company (Xcel Energy) for emergency response to the Monticello Nuclear Generating Plant. Action taken: Approved the Letter of Agreement with Northern States Power Company. City Council Minutes: October 12, 2026 Page 3 1 6 E. Approve a request for extension on approval of final plat, final stage planned unit development, rezoning, and development contract approval for Broadway Plaza to May 25, 2027. Action taken: Approved the extension for Broadway Plaza. F. Approve a contract with MP Asphalt for crack filling, infrared and mastic patching on designated trails for an amount of $55,000. Action taken: ITEM WAS REMOVED FROM THE CONSENT AGENDA. G. Approve an application for a temporary charitable gambling permit for a raffle to be conducted by the Monticello Chamber of Commerce for their annual banquet on December 4, 2026. Action taken: Approved the temporary charitable gambling permit. 2A. Consideration of items removed from the consent agenda for discussion F. Approve a contract with MP Asphalt for crack filling, infrared and mastic patching on designated trails for an amount of $55,000 Councilmember Hinz removed the item to allow staff to provide an overview of the City's pathway maintenance strategy, including how pathways are evaluated and prioritized for repairs. The Councilmember emphasized the importance of maintaining these heavily used amenities and responding to concerns reported by residents. City Administrator Rachel Leonard explained that the City's Pathway Management Plan evaluates pavement conditions to prioritize preventative maintenance, repairs, and future reconstruction. Pavement markings help identify needed improvements and estimate costs. Residents were encouraged to report pathway concerns to City staff. Motion by Councilmember Hinz to approve the contract with MP Asphalt for crack filling, infrared and mastic patching on designated trails for $55,000. Councilmember Martie seconded the motion. Motion carried unanimously. 3. Public Hearing: A. PUBLIC HEARING: Consideration of adopting Resolution 2026-94 authorizing a Minnesota Investment Fund (MIF) grant application submittal to MN -DEED in the amount of $125,000 in support of Seat Cover Solutions, LLC's 110,000 square foot warehouse and processing facility development proposal Economic Development Manager Jim Thares presented a request to submit a $125,000 Minnesota Investment Fund grant application for Seat Cover Solutions' proposed 110,000-square-foot facility in Otter Creek Business Park. The $11 City Council Minutes: October 12, 2026 Page 4 1 6 million project would create 21 new jobs and leverage private investment at a 7- to-1 ratio. Additional financial assistance will be considered separately. Mr. Thares clarified that the Minnesota Investment Fund grant would utilize state funds, not local tax dollars. If approved, the City would administer the grant to Seat Cover Solutions for equipment purchases and monitor job creation requirements over a three-year period, with annual reporting to the State. Mayor Hilgart opened the public hearing. The following testified: Pat O'Donnell, applicant, introduced himself to the City Council and thanked them for the opportunity to continue growing their business. Mayor Hilgart closed the public hearing. There was minimal discussion. Motion by Councilmember Hinz to adopt Resolution 2026-94 authorizing a Minnesota Investment Fund (MIF) grant application submittal to MN -DEED in the amount of $125,000 in support of Seat Cover Solutions, LLC's 110,000 square foot warehouse and processing facility development proposal. Councilmember Martie seconded the motion. Motion carried unanimously. 4. Regular Agenda: A. ADDED ITEMS: Councilmember Gabler requested discussion of two items for consideration as part of the 2027 budget process • Monticello Community Center (MCC) Operating Hours: Councilmember Gabler requested that staff review MCC operating hours, specifically whether summer hours should conclude on Labor Day rather than continue through October. It was suggested that staff evaluate usage data and seasonal demand to determine appropriate operating hours. There was Council consensus to direct staff to review MCC operating hours. • Community Cleanup Day: Councilmember Gabler requested that staff explore community cleanup days in 2027, potentially offering events in both the spring and fall. Staff indicated that they could review associated costs and contact LRS to determine whether similar programs are offered in other communities. There was Council consensus to direct staff to explore options and costs for a community cleanup day or a junk amnesty day. 5. Adjournment: The meeting was adjourned at 7:46 p.m. City Council Minutes: October 12, 2026 Page 5 1 6 Jennifer Schreiber Attest: gAj City Administrator City Council Minutes: October 12, 2026 Page 6 16