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Council Meeting Minutes for October 6, 2025 <br />Page 4 of 8 <br />trail crossing along the north side of 130th Street. The City of Hugo would be responsible for <br />costs associated with the improvements necessary, which would include 10-foot concrete <br />crossing for one track complete with new rail, ties, ballast, fasteners, along with appropriate <br />surfacing to carry the improved trail, installation of a signal bell on top of the mast, flagging <br />services, engineering and inspection. The agreement included a $2,500 administrative fee, a <br />$1,000 license fee, and when an additional $4,000 payment is made, BNSF will grant an <br />easement for the City to enter and use the BNSF Right-of-Way to construct the City’s portion, <br />use and maintain the crossing. Adoption of the Consent Agenda approved the Grade Crossing <br />Construction and Maintenance Agreement at the 130th Street North grade crossing US DOT No. <br />082586J, pending final review and approval from the City Attorney. <br />Approve 130th Street Easement Agreement for Grade Crossing <br />In preparation for the 2026 Street Improvement Project, staff had been working with BNSF <br />Railway Company and Minnesota Commercial Railway to make accommodations to include a <br />trail crossing along the north side of 130th Street (US DOT Number 082586J). The existing <br />easement width the City had for the crossing of the BNSF railway was not sufficient to include <br />the trail. An Easement Agreement outlined the terms for acquiring the additional easement. The <br />City of Hugo would be responsible for a $2,500 processing fee. The permanent and temporary <br />easement cost would total $5,000. Adoption of the Consent Agreement approved the Easement <br />Agreement for the 130th Street North grade crossing US DOT No. 082586J, pending final <br />review and approval from the City Attorney. <br />Approve 140th Street Highway-Rail Grade Crossing Closure Agreement <br />In preparation for the 2026 Street Improvement Project, staff had been working with BNSF <br />Railway Company and Minnesota Commercial Railway to remove the portion of rail that <br />extended through and terminated at the north side of 140th Street. The rail located within 140th <br />Street was not used or needed. The City of Hugo would be responsible for doing all necessary <br />pavement work once the crossing was removed. Adoption of the Consent Agenda approved the <br />Highway-Rail Grade Crossing Closure Agreement at the 140th Street North grade crossing DOT <br />No. 082589E, pending City Attorney final review and approval. <br />Approve Quote from Kraft Contracting and Mechanical for City Hall HVAC Equipment <br />Replacement <br />Over the past few years, there have been several failures of the City Hall HVAC systems that <br />resulted in costly repairs and replacement of parts. Staff recommended replacing six furnaces and <br />eight air conditioners to eliminate future repairs. Three different quotes were received. Kraft <br />Contracting and Mechanical provided the best quote for this project. Funding was available in <br />the Building Maintenance Fund. Adoption of the Consent Agenda approved the quote from <br />Kraft Contracting and Mechanical in the amount of $100,125 for HVAC replacements.