HomeMy WebLinkAbout2020.07.20 CC Minutes
Meeting held remotely pursuant to MN Statute Sec. 13D.021.
ZOOM Meeting ID # 841 1131 4644
Acting Mayor Petryk called the meeting to order at 7:00 p.m.
COUNCIL PRESENT REMOTELY: Haas, Miron, Petryk
COUNCIL ABSENT: Klein, Weidt
OTHERS PRESENT REMOTELY: City Attorney Dave Snyder, City Engineer Mark Erichson,
Community Development Director Rachel Juba, Finance Director Ron Otkin, Planner Kendra
Lindahl
PRESENT AT CITY HALL: City Administrator Bryan Bear, City Clerk Michele Lindau
Approval of Minutes for the July 6, 2020 City Council Meeting
Miron made motion, Haas seconded, to approve the minutes for the City Council meeting held
on July 6, 2020, as presented.
Roll call vote – all ayes. Motion carried.
Approval of Agenda
Petryk made motion, Haas seconded, to approve the agenda as presented.
Roll call vote – all ayes. Motion carried.
Presentation of 2019 Audit Report – Jason Miller, Smith Schafer & Associates
Jason Miller from the independent accounting firm of Smith Schafer & Associates presented to
the Council a recap of the audit of City finances for the 2019 fiscal year. He talked about how
they came about their opinion on the financial statement and the procedures they perform in an
audit. They issued an unmodified opinion, which is the highest given, meaning they didn’t find
any misstatements. There are seven areas they test and found one minor exception in the legal
requirement regarding outstanding checks that will need to be reported to the state. Miller
reviewed governmental fund revenues stating most revenue comes from property taxes. He next
reviewed governmental fund expenditures stating general government, public safety, and
highways and street expenditures make up almost 90% of expenditures. He reviewed general
fund reserves saying it has been the City’s policy to reserve 50% of the following year’s
budgeted expenditures, and the City has exceeded that. He highlighted the importance of having
those reserves. He talked about debt service requirements stating there was one more year of
large debt payments, and then it dropped significantly. Capital projects expenditures included
major projects such as Adelaide Landing Park, electronic equipment upgrades in City Hall,
purchase of an aerial truck and plow truck, and street projects including 130th Street. He provided
information on enterprise funds that showed positive income. He summarized by saying the
information is on the website and a summary of the financial information was published in the
City’s official newspaper. Miller and the Council thanked staff for their work.
Minutes
HUGO CITY COUNCIL MEETING
REMOTE MEETING
MONDAY, JULY 20, 2020 – 7 P.M.
Hugo City Council Meeting Minutes for July 20, 2020
Page 2 of 6
Hass made motion, Miron seconded, to formally accept the 2019 City Audit as recommended by
Finance Director Ron Otkin.
Roll call vote – all ayes. Motion carried.
Update on COVID-19 City Response
City Administrator Bryan Bear provided an update on how the City was responding to the corona
virus pandemic. He stated the City was operating under the Executive Order 20-74 from early
June saying not much has changed. He reviewed the City’s Covid-19 Preparedness Plan and
talked about how the State of Emergency is allowing the Council and other committees to meet
remotely. Special rules would apply if they would like to meet in person.
Bear provided information on the CARES Act stating Hugo’s share was $1,148,713.to spend on
corona related expense, and it needed to be spent by November 15. The City was documenting
expenses and the City Clerk would be contacting Council members to see if they had video
conferencing needs. Staff was in process of enhancing the equipment in the Council Chamber to
allow for blended meetings, meetings where some attended in person and some remotely. Staff
also was investigating installing ionized filters to improve air quality. Election expenses would
also be recoverable as well as staff time. Business grants would be discussed after preparing the
draft Covid budget for the Council to consider at their August 1, 2020, meeting.
Haas talked about the need to provide CARES Act money to local businesses, and he wondered
if money could be used to move in the direction of a full time fire employees. He asked staff to
look into those items and report back.
Miron talked about waiting until the technology was available before doing blended meetings.
He also questioned how businesses were operating under the “new normal”. Bear talked about
other layers of government that are providing tremendous support including Washington County,
who had committed money for small businesses. Miron asked that staff get feedback from local
businesses to see if there was an additional need.
Council agreed to continue to meet remotely and discuss it further at their next meeting.
Consent Agenda
Haas made motion, Miron seconded, to approve the following consent agenda:
1. Approve Claims Roster
2. Approve Change Order No. 2 from CB&I for the Water Tower No. 4 Improvement
Project
3. Approve Pay Voucher No. 11 from CB&I for Water Tower No. 4 Improvement Project
4. Approve Pay Vouch No. 3 from Peterson Companies, Inc. for Water’s Edge Stormwater
Reuse – Phase 2
5. Approve Resolution Terminating TIF District No. 1-2 and Directing County to Decertify
6. Approve Reduction in Letter of Credit for Adelaide Landing 5th Addition
Hugo City Council Meeting Minutes for July 20, 2020
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7. Approve Board of Trustees Request for Increase in Lump-Sum Pension Approval of
Increase in Fire Relief Pension
8. Adopt Feasibility Study for Lions Park Improvement Project
Roll call vote – all ayes. Motion carried.
Approve Claims Roster
Adoption of the Consent Agenda approved the Claims Roster as presented.
Approve Change Order No. 2 from CB&I for the Water Tower No. 4 Improvement Project
WSB recommended approval of Change Order No. 2 for work done by CB&I on the Water
Tower No. 4 project. This change order eliminated the water tower’s seepage pit as it is no
longer needed based on conditions at the water tower site. Change Order No. 2 also reduced the
length of the 18”RCP needed by 25 feet. The associated total reduction in contract price was
$5,500. Adoption of the Consent Agenda approved the Change Order No. 2 for work done by
CB&I.
Approve Pay Voucher No. 11 from CB&I for Water Tower No. 4 Improvement Project
CB&I, LLC has submitted Pay Voucher No. 11 for work done on the Water Tower No. 4
Improvement Project certified through July 2, 2020. Adoption of the Consent Agenda approved
Pay Voucher No.11 in the amount of $49,780.00.
Approve Pay Vouch No.3 from Peterson Companies, Inc. for Water’s Edge Stormwater
Reuse – Phase 2
Peterson Companies, Inc. had submitted Pay Voucher No. 3 for work done on the
Water’s Edge Stormwater Reuse -Phase 2 project certified through June 30, 2020. Adoption of
the Consent Agenda approved Pay Voucher No. 3 in the amount of $196,332.47.
Approve Resolution Terminating TIF District No. 1-2 and Directing County to Decertify
The City’s downtown tax increment district was certified by the county in 2010. Through 2019
this district had not generated any tax increment and there is no outstanding debt or contractual
obligations. Minnesota statutes required that this district be decertified. Adoption of the
Consent Agenda approved RESOLUTION 2020-32 RELATING TO THE TERMINATION OF
TAX INCREMENT DISTRICT NO. 1-2 AND DIRECTING DECERTIFICATION THEREOF
BY THE COUNTY AUDITOR.
Approve Reduction in Letter of Credit for Adelaide Landing 5th Addition
Adelaide Landing 5th Addition has had significant work completed to date, and the Excelsior
Group requested a reduction in the letter of credit. The current letter of credit for the 5th Addition
was in the amount of $3,032,318. Adoption of the Consent Agenda approved the reduction in the
letter of credit to $2,192,740 based on the value of work remaining to be completed.
Hugo City Council Meeting Minutes for July 20, 2020
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Approve Board of Trustees Request for Increase in Lump-Sum Pension
The Board of Trustees for the Hugo Firefighter’s Relief Association had formally requested City
Council ratification of an increase of $100 per year of service in their lump-sum pension
benefit. The Finance Department had reviewed this request and found it to be financially
feasible and consistent with the Pension Fiscal Policy adopted in April, 2012. Adoption of the
Consent Agenda approved the ratifying the Board of Trustees’ request for a $100 increase in
their lump-sum pension benefit and corresponding change to their by-laws.
Adopt Feasibility Study for Lions Park Improvement Project
At the City Council meeting of April 20, 2020, a feasibility study of Lions Park was
authorized. A master plan for Lions Park was approved on March 2, 2015. The feasibility study
revised the master plan for consistency with anticipated residential development and road
projects adjacent to the park. A joint Parks Commission and City Council workshop was held on
June 29, 2020 to review the updated master plan options and cost estimates. At their July 15,
2020 meeting, the Parks Commission recommended approval of the final master plan and
feasibility study for Lions Park. Adoption of the Consent Agenda approved the final master plan
and feasibility study for Lions Park.
Resolutions Approving Hugo Gardens Preliminary Plat and PUD Amendment
Garden Apartments, LLC, had requested approval for a Planned Unit Development (PUD)
amendment and preliminary plat for “Hugo Garden Apartments,” to allow construction of 84
apartment units in seven buildings to be located on the west side of Finale Avenue, south of 147th
Street. Planner Kendra Lindahl from Landform explained the number of apartments was reduced
from the original PUD approved in 2014, which included the construction of 165 units in three
buildings on the site as part of the LaValle Fields plat. The revised plan included a mix of one,
two, and three bedroom units for rent. The property was part of LaValle Fields PUD, and Outlot
B would be platted as a single lot to accommodate the new apartments. Outlot D will be used for
ponding.
Apartments are required to comply with the City’s multi-family design guidelines, and Lindahl
reviewed the proposed elevations saying staff felt they were well designed and did a nice job of
meeting these guidelines. The development was also subject to the Downtown Plan & Design
Guidelines that are intended to create pedestrian friendly neighborhoods. They worked to
orientate the buildings to Finale Avenue. To accomplish that, the developer was requesting a
reduction in the front yard setback from 30 feet to 10 feet. Lindahl talked about the landscape
plan and the grading and drainage plan saying they would be working with the developer on a
cost share agreement for storm water reuse. An access easement would need to be acquired from
the senior housing development to the south in order to comply with fire department and
emergency vehicle needs. The developer would be responsible to improve Finale Avenue as a
32 foot wide street to allow for on-street parking and construction of an 8-foot trail on the east
side of the street. Staff was still working with the developer to finalize the plans. Park
dedication would be in cash in the amount of $87,414.72. There was green space in the project
but no private amenities. Lions Park could provide the recreational needs. She stated the plat
complied with ordinance requirements, and if the preliminary plat was approved, the next steps
would be approval of the final plat, development agreement and an easement vacation.
Hugo City Council Meeting Minutes for July 20, 2020
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Lindahl provided background of the May 14, 2020, Planning Commission meeting where a
public hearing was held on the applications. During the public hearing, a resident came forward
and shared concerns about the apartments being within close proximity to the road. The
Commissioners generally liked the proposal and agreed the products would be a nice addition to
the community. The Planning Commission recommended approval of the resolutions approving
the PUD Amendment and Preliminary Plat for “Hugo Garden Apartments.”
Mark Margulies with Valerian, LLC, thanked staff for the work they had done on this
complicated project. He explained the incomplete items and conditions are known to them, and
they have no objections to staff recommendations. He said they were working on access
agreements from the adjoining landowner, and he believed they would be in place at time of final
plat. He talked about recreational amenities and clarified they would be relying heavily on Lions
Park, but there was an opportunity to make use of their green space and possibly use one of the
buildings for an indoor gathering space or workout area. He talked about property management
explaining it would mostly function as townhomes that require physical maintenance but not
hands on management. He explained there would be a good connection with residents.
Architect Dean Dovolis, added that every unit had individual entries, no corridors, and attached
garages. He said it would make a nice transition from the downtown area with two story
buildings that outline the park.
Miron made motion, Haas seconded, to approve RESOLUTION 2020-33 APPROVING A
PLANNED UNIT DEVELOPMENT (PUD) AMENDMENT FOR “HUGO GARDEN
APARTMENTS” (PID 20-031-21-23-0058 AND19-031-21-11-0087)
Roll call vote – all ayes. Motion carried.
Miron made motion, Haas seconded, to approve RESOLUTION 2020-34 APPROVING A
PRELIMINARY PLAT FOR “HUGO GARDENS” (PID 20-031-21-23-0058)
Roll call vote – all ayes. Motion carried.
Resolution Authorizing Preparation of Feasibility Study for 2021 Road Project
City Engineer Mark Erichson talked about the previously approved “Hugo Gardens Apartment”
and how the developer would be responsible for improvement to Finale Avenue. He explained
the remaining streets are identified in the City’s 5-year Capital Improvement Plan for roadway
infrastructure, which was approved at the July 6th City Council meeting as part of the City’s
overall 5-year Capital Improvement Plan. Next year’s improvement project was identified as the
2021 Downtown Improvement Project and included the extension of 147th Street from Finale
Avenue to Oneka Boulevard, reconstruction of 147th Street from just west of TH 61 to Finale
Avenue, Flay Avenue north of 147th Street, Upper 146th Street, 146th Street, Finley Avenue, and
Fitzgerald Avenue. Coordinating with the Lions Park Improvement efforts, CR 8 Water Reuse
Project, and Hugo Gardens was important, and moving forward with the preparation of the
feasibility study would be helpful and he recommended approval of the preparation of the
feasibility study.
Hugo City Council Meeting Minutes for July 20, 2020
Page 6 of 6
Haas made motion, Miron seconded, to approve RESOLUTION 2020-35 ORDERING
PREPARATION OF A FEASIBILITY REPORT FOR PUBLIC IMPROVEMENTS TO ALL
OR PORTIONS OF ROADWAYS IDENTIFIED AS THE 2021 DOWNTOWN
IMPROVEMENT PROJECT.
Roll call vote – all ayes. Motion carried.
Update on Yellow Ribbon Network
Council Member Chuck Haas and Phil Klein reported to Council on the Yellow Ribbon Network
activities held recently. Haas showed a photo of a letter from the MN National Guard thanking
the Yellow Ribbon for supporting the soldiers during the recent civil strike by providing lunches
for 700-800 soldiers. He showed a picture of a mini donut truck owned by realtor Mark
Schwope explaining that Mark had been donating a portion of his business proceeds and donut
proceeds to the YRN. There were thank you pictures for care packages and donations of 3M
Command Hooks and coffee. The YRN helped clean gutters on a soldier’s home, and a crew
went to the City of Stacy to help someone move.
Schedule Mid-Year Budget Workshop for Week of September 14-18
City Administrator Bryan Bear recommended Council schedule the midyear budget workshop for
some time during the week of September 14-18.
Miron made motion, Haas seconded, to schedule the Midyear Budget Workshop for Tuesday,
September 15, 2020, at 4 p.m.
Roll call vote – all ayes. Motion carried.
Adjournment
Klein made motion, Haas seconded, to adjourn at 7:55 p.m.
Roll call vote – all ayes. Motion carried.
Respectfully Submitted,
Michele Lindau
City Clerk