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Hugo City Council Meeting Minutes for December 15, 2014 <br />Page 7 of 11 <br />meeting, the Board considered and held a public hearing on the application request and voted to <br />recommend denial of the variance request. Adoption of the Consent Agenda approved <br />RESOLUTION 2014-48 APPROVING FINDINGS OF FACT DENYING A VARIANCE TO <br />FOR A SIDE YARD SETBACK FOR A BUILDING AT THE PROPERTY GENERALLY <br />LOCATED NORTH OF 122ND STREET AND EAST OF INGERSOLL AVENUE. <br />Approve Final Pay Request to North Valley Contracting for 165th Street/Ingersoll Avenue <br />Proiect <br />The City of Hugo has received Final Pay Request No. 3 from North Valley Contracting for the <br />165th Street and Ingersoll Avenue mill and overlay project. City Engineer Jay Kennedy and <br />Senior Engineering Technician Steve Duff have reviewed the final pay request and found it to be <br />satisfactory for work completed on this project. Adoption of the Consent Agenda approved Final <br />Pay Request No. 3 to North Valley Contracting in the amount of $79,345.41 for work completed <br />to date on the 165th Street and Ingersoll Avenue mill and overlay project. <br />Update on White Bear Lake Settlement Agreement <br />A settlement agreement has been prepared for the lawsuit between the plaintiff White Bear Lake <br />Restoration Association and the defendant the MN DNR. The White Bear Lake Homeowner' <br />Association intervened on the side of the plaintiff, and the White Bear Township and City of <br />White Bear intervened on the side of the defendant. The lawsuit alleges the DNR violated the <br />MN Environmental Rights Act by allowing excessive pumping of ground water by <br />municipalities, which has impacted the water levels of White Bear Lake. <br />City Administrator Bryan Bear provided Council information on this settlement agreement <br />stating that all parties have agreed to the terms, but the judge has not approved it yet. There are a <br />number of terms but what could impact Hugo the most is the DNR's support of the Northeast <br />Metro Project, which will supply river water to thirteen communities in two phases. Phase 1 will <br />cost $155-230 million, and Phase 2 will cost $623 million. The City of Hugo is included in <br />Phase 2. This project will require legislative approval. The City of White Bear Lake and White <br />Bear Township have agreed to support it, but how it would be initiated is undetermined. If this <br />project is not funded by the legislature, the lawsuit resumes. This settlement agreement has put <br />the lawsuit on hold for three years. <br />Bryan explained that operating the new water system will be expensive, and there will likely be <br />the creation of something that would act as a new taxing district using Ground Water <br />Management Area (GWMA) Districts. Costs will likely be allocated among communities in the <br />north and east GWMA. He further explained that the DNR will set a protective elevation for <br />WBL, which could impact wells and appropriation permits. Also in the agreement is a <br />requirement to reduce water usage by 17%, and Bryan explained how Hugo has already <br />implemented many conservation measures. Bryan spoke of other less significant terms of the <br />agreement stating that nothing guarantees that higher lake water levels will return. He noted that <br />the USGS's and Met Council's studies should be completed within 3 years. <br />The Council discussed their disapproval of this plan for many reasons. It is not clear that ground <br />water usage has effected the lake, but the Met Council's goal is to move from using ground water <br />