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Hugo City Council Minutes for February 2, 2009 <br />Page 5 of 7 <br />Law passed last year which has created a financial hardship for rural property owners as well as <br />encouraging development of open space; and the Watershed District Bill which would authorize <br />the County Board to oversee levies proposed by the Watershed District Board. A town hall <br />meeting will be scheduled at Hugo City Hall in the near future, and residents are encouraged to <br />attend. Mayor Miron thanked Senator Ray Vandeveer, State Representative Bob Dettmer, and <br />State Representative Matt Dean for the update and for all the things they do for the Citizens of <br />Hugo and elsewhere. <br />Discussion on Water Conservation and Water Usage Rates <br />At its January 5, 2009 meeting, Hugo City Council listened to resident Joe Johnson who inquired <br />as to what the City's water conservation measures were. Council agreed to research the issue <br />with City staff and bring it back to the Council for a formal presentation and discussion. Council <br />was provided with a detailed description of the City's waster and sewer rates adopted by Council <br />in December 2004 which are posted on the City's website, as well as a copy of the City's flyer <br />"How is Your Drinking Water" which is a requirement of the Minnesota Department of Health. <br />This flyer is mailed to every municipal water user in the City, and it describes in detail the water <br />restrictions and conservation tips adopted by the City on May 15, 2001. Finance Director Ron <br />Otkin provided Council with a review of the City's water conservation measures and water usage <br />rates. Ron explained rates are reviewed by the DNR, who is also the permitting authority for <br />wells. The City uses a Block Rate Structure with a base rate for the first 15,000 gallons used. <br />This structure provides for stable and sufficient revenues as well as contributes to the City's goal <br />of full funding of accumulated depreciation of the City's public infrastructure. Resident Joe <br />Johnson, 5430 134th Street North, suggested the City encourage conservation by using a meter <br />system that charged for each gallon used. <br />Haas made motion, Klein second, to direct staff to review and recommend a water rate structure <br />that 1) changes the first 15,000 gallons of residential water usage from a flat fee to a per unit <br />cost, 2) applies same methodology to the commercial/industrial rate structure, and 3) is revenue <br />neutral. A friendly amendment was made by Haas to consider Joe Johnson's proposed rate <br />structure as well as include himself and Councilmember Petryk in future meetings. <br />All Ayes. Motion carried. <br />Approve Revisions to the City's Sign Ordinance <br />Over the past several months, the City's ordinance review committee has reviewed and made <br />revisions to the City's sign ordinance which was in need of a major overhaul. As Council is <br />aware, the goal of the committee was to complete the sign ordinance by the end of the year, but <br />input from the business owners and Hugo Business Association was necessary in order to make <br />modification and revisions to the sign ordinance to allow for the grandfathering of a number of <br />current signs. At its December 11, 2008 meeting, the Planning Commission unanimously <br />recommended approval of the sign ordinance as proposed by staff to the City Council. At the <br />January 5, 2009 Council meeting, Council tabled this item to allow staff to research some of the <br />proposed sign requirements. Associate Planner Rachel Simone presented the Council with the <br />revised ordinance, and the Council proposed further revisions to clarify the definition of "signs", <br />change size requirements for signs associated with residential and agricultural uses, change <br />wording on specific type of prohibited sign, and include an implementation date of June 1, 2009. <br />