2022.05.02 CC Minutes - Laserfiche WebLink

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Hugo City Council Meeting Minutes for May 2, 2022 Page 7 of 8 Rebecca Haug from WSB talked about wetland banking saying it was part of the Clean Water Act Program to achieve a no-net loss. She reviewed rules of MN wetland banking as overseen by the Minnesota Board of Water and Soil Resources. She explained wetland banking is based on market demand and the cost is negotiable. She showed the ten Wetland Bank Service Area saying Hugo was in Service Area Number 7. She talked about the formula for selling credits. Credits must be purchased in the same watershed as the affected wetland. She talked about a proposed North Star Wetland Bank explaining there was a potential of 51.67 acres of credits. Banks retore native vegetation, and there is a new state program that allowed plants to be removed and replanted in the banks. It also creates educational opportunities and recreational space. She said it would be a great financial incentive as a non-tax revenue source, and funding could be used in any way the City decided. She talked about the City of Blaine’s program with their revenue being used mostly on economic development and funding of trails and open space. Rebecca explained the return on investment is 3-5 years. At the current market rate, 51.67 acres would be a net $4.2 million. The estimated total cost would be $970,000 with the biggest cost being construction at $815,000. She explained it would be a three-year process, and the next steps would be to work with the school district and do hydrology and vegetation monitoring. Based on that data, a draft prospectus would be completed. WSB estimated it would cost $14,500 the first year. The following year would cost an estimated $120,000 for submittal of the Wetland Banking Plan and Mitigation Banking Instrument. Meetings would be held with the public and stakeholders, and a perpetual conservation easement would be established over the project area. The work would be done the third year and likely be a winter project. After release, 15% of the credit would be available. Depending on performance, all of it should be available after five years. Maintenance would need to be done at an estimated cost of $820,000. She said there were grant opportunities through LCCMR and Safe Routes to School. Petryk asked if the City needed to bond to ensure there would be on-going maintenance. Haug said, as part of the plan, the bank would be stopped if not maintained. Klein asked who would own the property after the credits were sold, and he asked about draining the wetland. Haug responded that the ownership would not change, and Bear responded that the drainage would fit into the City’s wetland plan. Strub made motion, Miron seconded, proceeded allocating funds for Phase 1 at an estimated cost of $14,500. All Ayes. Motion carried. Schedule Annual Performance Review for City Administrator Bryan Bear Bryan Bear has been employed with the City since May 3, 2004, and served as the Community Development Director until being appointed as the City Administrator on November, 7, 2011. Staff requested Council schedule the annual performance review for City Administrator Bryan Bear.