HomeMy WebLinkAbout2020.09.08 CC Minutes
Meeting held remotely pursuant to MN Statute Sec. 13D.021.
ZOOM Meeting ID # 883 6007 4505
Mayor Weidt called the meeting to order at 7:00 p.m.
COUNCIL PRESENT REMOTELY: Haas, Klein, Miron, Petryk, Weidt
COUNCIL ABSENT: None
OTHERS PRESENT REMOTELY: City Attorney Dave Snyder, City Engineer Mark Erichson,
Community Development Director Rachel Juba, Finance Coordinator Anna Wobse, Community
Development Assistant Emily Weber
PRESENT AT CITY HALL: City Administrator Bryan Bear, Finance Director Ron Otkin, City
Clerk Michele Lindau
Approval of Minutes for the August 17, 2020, City Council Meeting
Klein made motion, Petryk seconded, to approve the minutes for the City Council meeting held
on August 17, 2020, as presented.
Roll call vote – all ayes. Motion carried.
Approval of Agenda
Weidt made motion, Miron seconded, to approve the agenda as amended by staff by removing
approval of Pay Voucher No. 5 for the Water Edge Stormwater Reuse Project from the Consent
Agenda.
Roll call vote – all ayes. Motion carried.
Update on COVID-19 City Response, COVID Budget, and Business Grant Program
City Administrator Bryan Bear provided a short update on COVID-19 saying the State of
Emergency remained in place and the City was still in Phase 3 of the “Stay Safe Plan”.
Finance Coordinator Anna Wobse provided background on the CARES (Coronavirus Aid,
Relief, and Economic Security) Act explaining that the City had received $1,148,713 dollars in
relief funds to help offset financial impacts of the COVID-19 outbreak. The City had until
November 15, 2020, to spend the funds on eligible expenses. After that, the City would need to
send the money to Washington County for their use. At their August 3, 2020, meeting, Council
had considered a budget prepared by staff on how the money should be spent. Council had
tabled the discussion and directed staff to seek a recommendation from the EDA on a small
business grant program.
Community Development Assistant Emily Weber provided information on the EDA meeting
held on August 18, 2020, where there was discussion on current resources available to local
business and whether there was a need for an additional grant program that the City could
MINUTES
HUGO CITY COUNCIL MEETING
REMOTE MEETING
TUESDAY, SEPTEMBER 8, 2020 – 7 P.M.
Hugo City Council Meeting Minutes for September 8, 2020
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provide. The EDA directed staff to create a $200,000 grant program for local private or
nonprofit businesses that generated under $3.5 million in annual revenue. The program would
allow businesses to apply for grants up to $10,000 on a first come, first served basis. Staff had
drafted an agreement and application with a deadline of October 1, 2020. Weber provided
information the EDA had proposed for eligible and non-eligible uses on expenses incurred
between March 1 and September 30, 2020, that were not reimbursed by other sources of funding.
Weber reviewed the materials that needed to be submitted with the application saying once the
grant is awarded, the business and the City would enter into an agreement.
Wobse reviewed with Council an adjusted budget that allocated $200,000 as recommended by
the EDA for a small business program and recommended Council approve the resolution
adopting the CARES Funding Budget as presented and the business grant program.
Haas made motion, Petryk seconded, to approve RESOLUTION 2020-46 ADOPTING CARES
FUNDING BUDGET, and the Business Grant Program.
Miron asked for an explanation on who would be eligible. Weber replied that it was written in
the agreement that private businesses must be located within the boundaries of the City, and non-
profit business would need to include the City area, but not physically located within the City.
Roll call vote – all ayes. Motion carried.
Consent Agenda
Petryk made motion, Haas seconded, to approve the following consent agenda:
1. Approve Claims Roster
2. Approve Change Order No. 2 and Pay Voucher No. 7 for 130th Street Improvement
Project
3. Approve Joel Hoistad as New Building Official
4. Approval of Hugo Gardens Assessment Agreement for Sewer & Water Trunk Fees
5. Approve Special Event Permit for Hugo Legion Tent Sales/Oktoberfest Celebration
6. Approve Reduction in Letter of Credit for Adelaide Landing 5th Addition
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 and Pay Voucher No. 7 for 130th Street Improvement
Project
The City had received Pay Voucher No. 7 from Dresel Contracting for work done on the 130th
Street Improvement Project. Staff had reviewed the pay request and found it acceptable for the
work certified through August 31, 2020. Adoption of the Consent Agenda approved payment in
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the amount of $162,460.35 and Change Order No.2 related to the plant testing of the bituminous
resulting in a pay factor reduction of 20%.
Approve Joel Hoistad as New Building Official
In 2019, the City Council approved the advertisement for a new Building Official to replace
Chuck Preisler when we retires in November. Staff had interviewed seven applicants for the
position and selected Joel Hoistad to fill the position. This position would be slotted at Pay
Grade 8, Step 2, in the 2020 salary matrix. Adoption of the Consent Agenda approved the hiring
of Joel Hoistad as the new Building Official with a start date of September 14, 2020.
Approval of Hugo Gardens Assessment Agreement for Sewer & Water Trunk Fees
At its August 17, 2020, the City Council approved the final plat and development agreement for
the Hugo Gardens development. The approval included the assessments for the water and sewer
trunk fees required for development by the City. Staff had included a draft of the assessment
agreement and terms in the packet and recommended approval of the resolution adopting the
special assessment for Hugo Gardens, subject to review and approval by the City Attorney.
Adoption of the Consent Agenda approved RESOLUTION 2020-47 ADOPTING
ASSESSMENTS FOR THE HUGO GARDENS IMPROVEMENT PROJECT.
Approve Special Event Permit for Hugo Legion Tent Sales/Oktoberfest Celebration
The Hugo American Legion had applied for a Special Event Permit to hold a craft show and
Oktoberfest on Saturday, October 3, 2020. A Special Event Permit approved by Council was
necessary because alcohol will be sold outdoors, there may be more than 200 people in
attendance throughout the day, it will extend after dark, and there will be amplified music.
Attendance would be spread out during the day from 9 a.m. to 9 p.m. The event would consist of
vendors outside in the parking lot area and inside the building. There would also be a D.J and a
beanbag tournament. Staff had worked with the applicant on amending their COVID
Preparedness Plan for the event. Adoption of the Consent Agenda approved the Special Event
Permit for the Hugo American Legion to hold tent sales and an Oktoberfest celebration on
Saturday, October 3, 2020, subject to conditions.
Approve Reduction in Letter of Credit for Adelaide Landing 5th Addition
Adelaide Landing 5th Addition had significant work completed to date and The Excelsior Group
had requested a reduction in the letter of credit. The current letter of credit for the 5th Addition
was in the amount of $2,192,740. Staff had inspected the work completed to date and
recommended Council approve the reduction in the letter of credit to $507,633.44 based on the
value of work remaining to be completed. Adoption of the Consent Agenda approved the
reduction in the letter of credit for Adelaide Landing 5th Addition.
Approve “Adelaide Landing Park” as the Name of the New Park in Adelaide Landing
At their meeting of August 19, 2020, the Parks Commission recommended that the new park in
Adelaide Landing be named “Adelaide Landing Park”. Residents shared their ideas for the
future park name. The City of Hugo has a Park Naming Policy and “Adelaide Landing Park”
would be keeping with the policy. The new park was under construction and set to open at the
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end of September.
Mayor Weidt removed this from the Consent agenda stating he received a letter from the
Arcands, who previously owned the land, and he wanted it to go back to the Parks Commission
for reconsideration. Haas agreed was important to put thought into how the City named things
and to add historical significance to the names.
Weidt made motion, Klein seconded, to send the naming of the park in the Adelaide Landing
Development back to the Parks Commission for reconsideration.
Roll call vote – all ayes. Motion carried.
Approve Resolutions Declaring Costs to be Assessed and Setting Public Hearing for the
Goodview Avenue Improvement Project
At its February 3, 2020 meeting, Council held a public hearing on the Goodview Avenue
Improvement Project. Council ordered the improvements and authorized the preparation of
plans and specifications for the project. Bids were opened May 21, 2020, and the project was
awarded to T.A. Schifsky and Sons, Inc. on June 1, 2020. Improvements would be substantially
complete by the end of September and staff had recommended that the Council move forward
with the assessment process for the project by approving the resolution declaring the costs to be
assessed and setting the public hearing for October 5, 2020. City Engineer Mark Ericson
provided an update to the Council stating they had a later start than most projects in the past.
Culverts had been replaced and reclamation would begin the following day.
Finance Director Ron Otkin explained these were standard resolutions declaring cost and setting
the date for the public hearing. He said it was hoped the project would be substantially
completed by October 5, which was the date set for the hearing. He stated this date was
necessary in order to allow people 30 days to pay their assessment with no interest before it
would be certified to the County in November. Erichson added the amount to be assessed
was$137,700, and was consistent with the previous assessment roll, excluding the option for
extension of the sanitary sewer and water main.
Klein made motion, Miron seconded, to approve RESOLUTION 2020-48 DECLARING
COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED
ASSESSMENTS FOR THE GOODVIEW AVENUE STREET IMPROVEMENT
PROJECT.
Roll call vote – all ayes. Motion carried.
Miron made motion, Petryk seconded, to approve RESOLUTION 2020-49 CALLING
FOR THE PUBLIC HEARING ON THE PROPOSED ASSESSMENT FOR THE
GOODVIEW AVENUE IMPROVEMENT PROJECT.
Roll call vote – all ayes. Motion carried.
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Approve RFP for Architectural Services for Lions Park
Parks Planner Shayla Denaway, provided a background on Lions Park discussions saying most
recently a joint workshop was held with the City Council and Parks Commission on June 29,
2020, to discuss the feasibility and funding of the Lions Park Master Plan. The City Council
adopted the Master Plan and Feasibility Study at their July 20, 2020 meeting.
Denaway displayed the approved final master plan that showed a large playground area,
pavilion, and minor changes in parking from the previous plan. Also showed on the plan was a
community sports pad, two play fields, open areas, fire pits, memorial, and relocation of the
skate park equipment. She reviewed the next steps saying they would be working with WSB on
the playground with a stake holder group, and a seconded stakeholder group would be looking at
the pavilion. It was also anticipated WSB would be developing the design of the parking lots,
trails and sidewalks, sports pad, and other park features. Assistance was needed for the pavilion
design and staff was requesting approval of a request for proposals to help with that. They
anticipated on having proposals from all design consultants for Council to consider at the
October 5th meeting. Community workshops would be held in early October and a design
process with stakeholders would be done October – December. Designs would be reviewed in
January, 2021, with construction in the spring and summer of 2021.
The request for proposals was to facilitate three stakeholder committee meetings and prepare
design development plans. It was expected the architect would coordinate with WSB on site
design and review the plan with the Parks Commission and City Council. It was anticipated that
the architects would be interviewed by staff, and proposals would be reviewed by Council at
their October 5, 2020, meeting.
Haas made motion, Klein seconded, to approve request for proposals for an Architect to design
the park pavilion at Lions Park.
Roll call vote – all ayes. Motion carried.
Resolution Providing for the Sale of $8,000,000 G.O. Capital Improvement Plan Bonds
On August 17, 2020, the City Council awarded a contract for construction and site work for a
new Public Works facility. The total bid, including six alternates, amounted to 9,253,560. When
adding in the items that would be bid separately and a contingency, the total project cost should
come in at just under $12.5 million. The Finance Department prepared a five-year Capital
Improvement Plan that included this facility. Adoption of the CIP now allowed for the issuance
of Capital Improvement Plan Bonds. Otkin explained the two-pronged approach of bidding and
financing the project saying it had been the City’s intention to issue bonds to finance the majority
of the construction costs, and the balance would come from the Water and Sewer Utility
Fund. After conferring with the city’s financial advisors, staff recommended the issuance of
Capital Improvement Plan bonds in the principal amount of $8 million. When combined with
the proceeds from the sale of the existing facility and the water and sewer fund, the City could
finance the entire project without having to transfer any money from reserves. Bonds would
extend out 25 years and the interest cost was estimated at just under 2%. The first year’s tax levy
would be $424,895 and the average tax levy over the 25 year term would be $426,800. This was
$130,000 less per year than the original estimate they had been using. Bonds outstanding on
February 1, 2030, would be callable, but considering the low rate, he projected it was unlikely
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this option would be exercised. He explained the process would begin with Council approving a
set-sale resolution, then work with Baker Tilly assembling the official statement. A bond
conference with Standard and Poors was scheduled for September 21, 2020. Bids would be
received at 11 a.m. on October 5, 2020, and the Council would consider awarding the sale at
their meeting that evening. If everything went as planned, bond proceeds would be received
around November 5th. He recommended Council approve a resolution providing for the Sale of
$8 million G.O. Capital Improvement Plan bonds.
Haas made motion, Miron seconded, to approve RESOLUTION 2020-50 PROVIDING FOR
THE COMPETITIVE NEGOTIATED SALE OF $8,000,000 GENERAL OBLIGATION
CAPITAL IMPROVEMENT PLAN BONDS. SERIES 2020A.
Roll call vote – all ayes. Motion carried.
Consider Approval of Residential Picketing Ordinance
Following recent protest activity that had occurred within residential neighborhoods in the City
of Hugo, City staff, along with the Washington County Sheriff’s Office had been evaluating the
appropriate level of response required when protests occur. City Administrator Bryan Bear
provided Council with a recap of the protests, along with a summary of feedback collected.
Bear began by talking about Hugo being the location of several small protest and two large
protest. Black Lives Matter (BLM) protest on August 15 occurred in the Diamond Point East
neighborhood, and the Unity Event held the following week began at Lions Park and drove
through the same neighborhood. Protests had been targeted at a residence on topics concerning
issues with other cities. A tremendous amount of feedback was received, primarily around three
issues, and he reviewed each in detail.
The first issue was about not seeing much law enforcement on the ground. He talked about the
response needed to protect public and protesters making it necessary to have uniformed deputies
on-site and others off-site depending on the situation. He said he felt the Sheriff’s Department
did a fantastic job, and the City and neighborhood was very well protected. Enforcement
activities had been light knowing that intervening can cause escalation. The objects were that no
one gets hurt, nothing gets damaged, and protesters leave the City peacefully, and Bear felt those
objectives had been met.
The second issue was regarding John Thompson, who made inflammatory comments during one
of the protests and why was he not being charged for talking about burning down the City of
Hugo. Bear explained that decisions about charging a crime were made by the County or City
prosecutor. He referenced an article in the Pioneer Press that contained comments made by
County Attorney Pete Orput on the subject of charging Thompson.
The third issue was about how the City could make sure this never happened again. Bear talked
about the necessity of balancing First Amendment rights regarding free speech against the safety
and welfare of the public. Prevention of protests was not realistic or desirable, and Bear talked
about how to lessen the impacts. He explained that teams including City staff, the Mayor,
Council Member Miron, the County Sheriff, Sergeant Joe Zerwas and County Attorney Pete
Orput and staff had canvassed the neighborhood following the BLM protest to get feedback from
residents. He stated that feedback was diverse and emotional. Common concerns were traffic
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and parking, road closures, safety, threatening activities, and loud noise. There were also
concerns about maintaining the right to assemble. He talked about the dilemma regarding
security verses freedom when securing a neighborhood prevents normal activities.
Communication with residents occurred through CODE RED, and he encouraged residents to
sign up for that. Communication with protest group organizers was done proactively, but Bear
said he felt it could be done better by informing them of the ground rules regarding noise, access,
special event requirements, trespassing and property damage and other items specific to location
and protest. He talked about how this could be done through a residential picketing ordinance.
He provided information on a residential picketing ordinance that was drafted by the City
Attorney. The ordinance would not prohibit protesting, only the idea of targeted residential
picketing, which causes emotional distress, obstruction of free use of public right-of-ways and
sidewalks, and harassment of residents. The ordinance addresses the protection of the home and
individual privacy, and how targeted protesting limits the ability to escape.
Klein said he agreed with the Ordinance, and it was important to maintain the ability for people
to have free speech and assemble. Also, people should have the right to tranquility and not have
unwanted guests. He said he would expect the protestors to understand. The ordinance helps
encompass what the City was trying to achieve.
Haas thanked staff and stated he was pleased with the ordinance.
Miron talked about the two events that had been the cause of looking at this ordinance, and he
questioned how this ordinance would help residents near Lions Park, where one of the events
took place, since Lions Park was nestled in a neighborhood.
City Attorney replied that the ordinance was narrowly tailored to prohibit targeting a particular
residential structure. A gathering in a public park would not violate the ordinance as drafted. It
was contemplated that public spaces and parks are realistic locations for some protesting activity,
but it prohibits focusing on a particular residential unit. He noted that the ordinance was written
from examples from other cities with similar concerns.
Weidt asked how the ordinance would have changed recent protests.
Bear explained that the City has had the ability to learn about protests in advance and with an
ordinance can proactively communicate with those organizations which may cause them to abide
to the restrictions, go to a location where that type of activity was permitted, or not protest at all.
It would set the ground rules in advance and provide enforcement ability.
Snyder added that the ordinance has a proactive benefit by alerting people to it and, one hoped it
would be followed. It also has the potential for citation or even arrest.
Weidt said he felt the Sheriff’s Department did a good job of keeping the residents safe, and he
talked about feedback from residents on both sides of the issue. He acknowledged the right to
peacefully protest and wanted residents to know the ordinance would not block protest activity
but would allow the City to proactively discuss it and enforce misbehavior.
Snyder wanted it noted for the record that the PowerPoint was part of the record and part of the
deliberation.
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Klein made motion, Weidt seconded, to approve ORDINANCE 2020-501 RELATING TO
AND REGULATING TARGETED PICKETING IN RESIDENTIAL NEIGHBORHOODS
IN THE CITY OF HUGO along with the PowerPoint and presentation.
Roll call vote – all ayes. Motion carried.
Yellow Ribbon Network Report
Council Member Chuck Haas and Council Member Phil Klein reported to Council on the Yellow
Ribbon Network activities held recently. A care package event was held with the help of the Sam
Leedom family. Jeff Hanzal of Hanzal Construction responded to a frantic need from a family to get
door replaced. Barb Connolly and Marilyn Stromberg re-did the display in the City Hall entryway
featuring the YRN. Pheasant hunts are being planned for October and December, and a youth hunt
will take place in the beginning of October.
Midyear Budget Workshop on Tuesday, September 15, 2020
City Administrator Bryan Bear reminded Council a midyear budget workshop had been scheduled for
Tuesday, September 15, 2020, at 4 p.m. This meeting would be held virtually.
Roll call vote – all ayes. Motion carried.
Schedule Groundbreaking Ceremony for New Public Works Building
City Administrator Bryan Bear recommended Council select a date on which to hold the
groundbreaking ceremony for the new Public Works building.
Weidt made motion, Miron seconded, to schedule the groundbreaking ceremony for the new Public
Works facility for Thursday, September 17, 2020 at 3 p.m.
Roll call vote – all ayes. Motion carried.
Set Date for the Grand Opening of the Future Park in Adelaide Landing
City Administrator Bryan Bear recommended that Council schedule a grand opening for October
6, 7, or 8, or before the regular Council meeting on October 5th for the future park in Adelaide
Landing, which is anticipated to be complete at the end of September. Residents would be
invited, and all who attend would be asked to social distance.
Klein made motion, Petryk seconded, to schedule grand opening for October 7, 2020 at 3 p.m.
Roll call vote – all ayes. Motion carried.
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Adjournment
Miron made motion, Klein seconded, to adjourn at 8:18 p.m.
Roll call vote – all ayes. Motion carried.
Respectfully Submitted,
Michele Lindau
City Clerk