Loading...
HomeMy WebLinkAbout2021.07.19 CC MinutesMinutes HUGO CITY COUNCIL MEETING HUGO CITY HALL 14969 Fitzgerald Avenue North • Hugo. MN SS039 MONDAY. JULY 19, 2021 — 7 P.M. Call to Order Mayor Weidt called the meeting to order at 7:00 p.m. COUNCIL PRESENT: Klein, Miron, Petryk, Strub, Weidt OTHERS PRESENT: City Administrator Bryan Bear, City Engineer Mark Erichson, City Attorney Dave Snyder, Community Development Director Rachel Juba, Parks Planner Shayla Denaway, Interim Finance Director Anna Wobse, City Clerk Michele Lindau Approval of Minutes for the June 21, 2021, City Council Meeting Klein made motion, Miron seconded, to approve the minutes for the City Council meeting held on June 21, 2021, as presented. All Ayes. Motion carried. Approval of Minutes for the July 6, 2021, Lions Park Groundbreaking Klein made motion, Strub seconded, to approve the minutes for Lions Park Groundbreaking Ceremony held on July 6, 2021, as presented. All Ayes. Motion carried Approval of Agenda Weidt made motion, Klein seconded, to approve the agenda as amended by staff to add the swearing in of Deputy Chief Dave Jensen and an update on drought conditions and water use. All Ayes. Motion carried. Swearing in of Hugo Deputy Fire Chief David Jensen Fire Chief Jim Compton Jr. explained on March 1, 2021, David Jensen was promoted to Deputy Fire Chief on the Hugo Fire Department. Jensen had been working out of town and unable to attend a meeting to be sworn in until now. Compton performed the swearing in of Deputy Fire Chief David Jensen. Metropolitan Council Representative Susan Vento Met Council Representative Susan Vento was in attendance and shared her background with the Council. Susan was a former elementary teacher in Wilmar for eight years, worked for the MEA for almost 30 years, then as an outreach coordinator for five years. After the 2018 election, she applied to be on the Metropolitan Council, though she never held any other elective office. She Hugo City Council Meeting Minutes for July 19, 2021 Page 2 of 12 said she knows the difference that can be made in a community, and she acknowledged Council Members Phil Klein, Becky Petryk, and former Council Member Chuck Haas for their work on different committees at the Met Council. She shared information about several committees she served on and said the Met Council did not have as much power as people may think, and the hard work happened at the local level. Susan said, per capita, Hugo was above and beyond being engaged, and she gave kudos to the City for its stormwater reuse projects. She invited the City to enlist her any way they could. Council shared their appreciation for her the partnership and her volunteerism over the years. Presentation of 2020 Audit Report — Jason Miller, Smith Schafer & Associates Jason Miller from the independent accounting firm of Smith Schafer & Associates presented a recap of the audit of City finances for the 2020 fiscal year. He explained they had issued an unmodified audit opinion this year, which is the highest level they could provide on financial statements. It basically stated the City is was in general compliance with accounting principles. He explained the seven area that were tested and said here were no exceptions. New this year due to COVID, was a single audit because the City spent more than $750,000 of Coronavirus Relief Funds, and no exceptions were noted. He reviewed the funds and revenues, saying property taxes were the largest revenue source. He reviewed expenditures saying governmental expenditures increased 12% from 2019, due to an increase in wages, election expenses and COVID-19 related expenses. Public safety expenditures increased 3% primarily due to an increase in police. Highways and streets decreased about 8% and park expenditures decreased about 1 % services. Miller talked about the general fund reserve saying it was the City's policy to reserve 50% of the following year's budgeted expenditures, and the City had consistently maintained slightly over that. Expenditures for capital projects were slightly less than last year and included Arcand Park, the new Public Works building, Adelaide Landing Park, street projects, audio visual equipment, and Fire Department and Public Works Department vehicle accessories. He reviewed the sewer and water funds saying revenues were very strong and continued to grow. Miller summarized by saying there was an unmodified audit opinion, no MN legal compliance exceptions, and no single audit exceptions. The City's Comprehensive Annual Financial Report was posted on the City's website. Weidt made motion, Klein seconded, to accept the findings of the audit. All Ayes. Motion carried. Approval of Consent Agenda Miron made motion, Petryk seconded, to approve the following Consent Agenda: 1. Approve Claims Roster 2. Approve Special Event Permit for Wilson Tool Company Picnic 3. Approve Temporary Liquor License for the Lions for Wilson Tool Company Picnic 4. Approve Special Event Permit for Blue Heron Tent Party 5. Approve Donation to the Hugo Fire Department from the Bayport American Legion 6. Approve Ordinance and Personnel Policy Amendment Regarding Firefighter Response Times Hugo City Council Meeting Minutes for July 19, 2021 Page 3 of 12 7. Approve Resolution Approving Interim Use Permit for Centra North, LLC for Hugo Meadows Sign 8. Approve Reduction in Cash Escrow for Hugo Gardens 9. Approve Resolution Approving Encroachment Agreement for Fence at 15817 Ethan Trail 10. Approve Hugo Firefighter's Relief Association Request for Increase in Lump -Sum Pension 11. Approve Hiring of Terence Hagstrom as New Building Inspector 12. Approve Pay Request No. 9 to Ebert Construction for Public Works Facility 13. Approve Pay Request No. 1 to Ebert Construction for Salt Storage Building 14. Approve Hiring Special Inspector for Lions Park Pavilion 15. Approve Resolution for Bond Reimbursement for Lions Park and Related Improvements 16. Approve Replacement of Public Works Truck #115-12 17. Approve Replacement of Public Works Truck #103-11 All Ayes. Motion carried. Approve Claims Roster Adoption of the Consent Agenda approved the Claim Roster as presented. Approve Special Event Permit for Wilson Tool Company Picnic Wilson Tool had applied for a Special Event Permit to hold their annual company picnic on Saturday, August 14, 2021, at the Hanifl Shelter and Fields. This event required a Special Event Permit approved by Council because there would be amplified sound, alcohol served, temporary structures (tents), and approximately 800 people were expected to attend. This was a private event and free of charge to Wilson Tool employees and their families. Adoption of the Consent Agenda approved the Special Event Permit for Wilson Tool subject to the conditions attached to the permit. Approve Temporary Liquor License for the Lions for Wilson Tool Company Picnic The Hugo Lions Club had applied for a temporary on -sale liquor license to serve beer at the Wilson Tool company picnic on Saturday, August 14, 2021. Adoption of the Consent Agenda approved the temporary permit for the Hugo Lions Club. Approve Special Event Permit for Blue Heron Tent Party The Blue Heron Bar and Grill, 14725 Victor Hugo Boulevard, had applied for a Special Event Permit for their annual outdoor tent party to be held on Friday, August 27 and Saturday, August 28, 2021. A Special Event Permit approved by Council was required because alcohol would be sold outdoors, approximately 500 people were expected to attend, it would extend after dark, and there would be amplified music. Adoption of the Consent Agenda approved the Special Event Permit for the Blue Heron Tent Party on August 27 and 28, 2021, subject to the conditions attached to the permit. Hugo City Council Meeting Minutes for July 19, 2021 Page 4 of 12 Approve Donation to the Hugo Fire Department from the Bayport American Legion The Bayport American Legion wanted to donate $5,000 to the Hugo Fire Department. Donations to the department must be approved by the City Council. Adoption of the Consent Agenda approved the donation to the Fire Department from the Bayport American Legion Post 491 in the amount of $5,000. Approve Ordinance and Personnel Policy Amendment Regarding Firefighter Response Times Hugo Fire Chief Jim Compton Jr. requested changing the requirements for how far away someone would have to live from the station in order to get hired on the fire department. He had proposed they live within an eight minute radius of the Fire Hall instead of six minutes as was currently required. Response times were addressed in the City Code and the personal policy. Adoption of the Consent Agenda approved the amendment to the Personnel Policy changing the response time from six minutes to eight minutes, and approved ORDINANCE 2021-506 AMENDING HUGO CITY CODE, CHAPTER 34, FIRE PREVENTION AND PROTECTION, SECTION 34-1, ADMINISTRATION, TO REFERENCE THE PERSONNEL POLICY FOR MEMBER REQUIREMENTS. Approve resolution Approving Interim Use Permit for Centra North, LLC for Hugo Meadows Sign Centra North, LLC had requested approval of an Interim Use Permit to allow one temporary off - site directional sign for the Meadows at Hugo residential development. The sign was proposed to be located at 5850 159th Street North. The Hugo Planning Commission had considered the request at their July 8, 2021 meeting and held a public hearing. The Planning Commission recommended approval subject to the conditions listed in the resolution. Adoption of the Consent Agenda approved RESOLUTION 2021-43 APPROVING INTERIM USE PERMIT TO ALLOW A TEMPORARY OFF -SITE DIRECTIONAL SIGN LOCATED AT 5850 159TH STREET NORTH FOR THE MEADOWS AT HUGO RESIDENTIAL DEVELOPMENT. Approve Reduction in Cash Escrow for Hugo Gardens The Hugo Gardens Project had grading and utility work completed to date and the Hugo Garden Apartments, LLC., requested a reduction in the Cash Escrow. The current amount of cash escrow for the Hugo Gardens Project was in the amount of $1,810,892. Staff had inspected the work completed to date and recommended approval. Adoption of the Consent Agenda approved the reduction in cash escrow to $1,651,778 based on the value of work remaining to be completed. Approve Resolution Approving Encroachment Agreement for Fence at 15817 Ethan Trail North Timothy Vang and Hlee Moua had requested an encroachment agreement to allow construction of a fence within a drainage and utility easement on their property located at 15817 Ethan Trail North. Adoption of the Consent Agenda approved RESOLUTION 2021-44 APPROVING AN ENCROACHMENT AGREEMENT FOR TIMOTHY VANG AND HLEE MOUA TO ALLOW Hugo City Council Meeting Minutes for July 19, 2021 Page 5 of 12 CONSTRUCTION OF A FENCE WITHIN A DRAINAGE AND UTILITY EASEMENT ON THE PROPERTY LOCATED AT 15817 ETHAN TRAIL NORTH. Approve Hugo Firefighter's Relief Association 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 $300 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 to ratify the Board of Trustees request for a $300 increase in their lump -sum pension benefit and a corresponding change to their by-laws. Approve Hiring of Terence Hagstrom as New Building Inspector At its May 17, 2021, meeting, Council approved the job description and advertisement for a Building Inspector. The City received eleven applications and interviewed eight for the position. Staff found Terence (Terry) Hagstrom to be the best fit for the position. Adoption of the Consent Agenda approved the hiring of Terry Hagstrom as the new Building Inspector effective July 12, 2021. Approve Pay Request No. 9 to Ebert Construction for Public Works Facility Ebert Construction had submitted Pay Request No. 9 for the Hugo Public Works Facility project in the amount of $1,272,818.87. The quantities completed to date had been reviewed and agreed upon by the architect, contractor and City staff. The amount indicated above reflected the work certified through June 30, 2021, with a 5% retainage applied. Total retainage being held for the project to date was $223,803.54. Adoption of the Consent Agenda approved Pay Request No. 9 for Ebert Construction in the amount of $1,272,818.87. Approve Pay Request No. 1 to Ebert Construction for Salt Storage Building Ebert Construction had submitted Pay Request No. I for the Public Works salt and materials storage building project in the amount of $55,963.54. The quantities completed to date had been reviewed and agreed upon by the architect, contractor and City staff. The amount indicated above reflected the work certified through July 6, 2021 with a 5% retainage applied. The total retainage being held to date was be $2,945.46. Adoption of the Consent Agenda approved payment request No. 1 in the amount of $55,963.54 to Ebert Construction for the construction of the City of Hugo Public Works salt and materials storage building. Approve Hiring Special Inspector for Lions Park Pavilion Proposals were received from Northern Technologies, LLC (NTI) and American Engineering Testing, Inc. (AET) to provide third party inspections for the pavilion in Lions Park. The proposals were for special inspections and testing including earthwork observation, soil testing, concrete testing, and structural steel and connections inspection and testing. NTI provided the lowest quote for the scope of work. Adoption of the Consent Agenda approved the hiring of NTI for special inspections in the amount of $14,860. Hugo City Council Meeting Minutes for July 19, 2021 Page 6 of 12 Approve Resolution for Bond Reimbursement for Lions Park and Related Improvements Federal treasury regulations permitted the City to issue bonds after construction began on a project and use the subsequent bond proceeds to reimburse itself for expenses that had already been paid, subject to certain timelines. To comply with these regulations, the Council needed to approve a bond reimbursement resolution. Passage of this resolution did not require the City to issue bonds; it merely preserved the City's rights to do so. Adoption of the Consent Agenda approved RESOLUTION 2021 -45 ESTABLISHING PROCEDURES RELATING TO COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE. Approve Replacement of Public Works Truck #115-12 Included in the City's Equipment Replacement schedule was funding for the purchase of 1-ton dump truck to replace the Department's aging 2012 Ford F-550. The current truck was used for two main functions. In the winter months, it was used by the tree trimming crew to haul tree debris. During the summer, it was used by the asphalt crew to haul asphalt. Staff had worked diligently to research and specify the appropriate truck to meet the needs of the Public Works Department. Staff recommended purchasing a 2021 Ford F-600 cab and chassis from Boyer Ford and a dump body from Custom Truck One Source. This truck would be purchased off a state contract through the Cooperative Purchasing Venture (CPV) assuring the City a fair and discounted price of $78,535.90 plus tax and licensing. With the delays in the production of vehicles, staff recommended placing the order for this truck now so delivery could occur sometime in 2022 when the truck was up for replacement. Adoption of the Consent Agenda authorized the purchase of the Ford F-600 cab and chassis from Boyer Ford and a dump body from Custom Truck One Source through the State of Minnesota Cooperative Purchasing Venture for a price of $78,535.90 plus tax and licensing. Approve Replacement of Public Works Truck #103-11 Included in the City's 2021 Equipment Replacement Fund was funding for the purchase of I -ton dump truck to replace the Department's aging 2011 Ford F-550. The current truck was used for two main functions. In the winter months, it was used for the snow plowing of cul-de-sacs. In the summer months, it was used by the parks employees for routine park maintenance. Staff had worked diligently to research and specify the appropriate truck to meet the needs of the Public Works Department. Staff recommended purchasing a 2021 Ford F-600 cab and chassis from Boyer Ford and a dump body and plow from Custom Truck One Source. This truck would be purchased off a state contract through the Cooperative Purchasing Venture (CPV) assuring the City a fair and discounted price of $81,153.90 plus tax and licensing. Adoption of the Consent Agenda authorized the purchase of the Ford F-600 cab and chassis from Boyer Ford and a dump body and plow from Custom Truck One Source through the State of Minnesota Cooperative Purchasing Venture for a price of $81,153.90 plus tax and licensing. Public Hearing on 121st Street and Acres of Bald Eagle Improvement Proiect and Approval of Related Items Community Development Director Rachel Juba explained Drengson May Enterprises, LLC's request to develop three existing properties with a wetland in the middle that were located north Hugo City Council Meeting Minutes for July 19, 2021 Page 7 of 12 of 121" street and west of Falcon Avenue. The properties were zoned R-1 Large Lot Single Family Residential, as were the surrounding properties, where there was a one acre minimum lot size. Earlier this year, a concept plan was reviewed by Council, Planning Commission, and Parks Commission. She explained the development would consist of nine single family lots on approximately 13 acres of property. The applicant was requesting a property line adjustment to widen the access to 121" Street, a variance for Lots 8 and 9 from the shoreland regulations, and preliminary plat and final plat for Acres of Bald Eagle. All other lots met zoning code requirements. A landscape plan required two over story trees per lot, and they would be putting together a lighting plan with Xcel Energy. Draining and grading met stormwater management requirements and there wouldl be a stormwater management area constructed in the northwest corner. Staff was continuing to work with the developer and property owners on grading in that area. City Engineer Mark Erichson talked about the streets utilities showing the new roadway off 121 st Street and explained any subdivision in this area would require extension of sewer and water. Existing properties were served by individual septic systems. Twelve properties would have utilities going past them with this development. Council had directed staff to hold a meeting with these residents to determine if they wanted to receive sewer and water service. The meeting was held on April 8, 2021, and there was positive feedback. Council accepted the Feasibility Study at their June 21, 2021, meeting and scheduled the public hearing to be held this evening. He showed a map identifying the properties that would be assessed for the extension of utilities and explained the developer would fund the reconstruction of 121 st Street, minor drainage improvements, installation of sewer and water to eight new proposed lots. Lot 9 would receive services from Everton Avenue. He provided a breakdown of the cost explaining $711,881 would be paid for by the developer, $49,932.44 by the City for the oversizing of the watermain, and $113,315.64 in assessments, totaling $875,129.26 for the cost of the project. The properties would be assessed $9,443 per unit. Erichson explained that if utilities were brought to these lots without the development, the cost would be $53,800 per unit. Juba explained staff found the development request met the criteria needed to approve the applications and it met the City Code and subdivision regulation. At its July 8, 2021, meeting, the Planning Commission held a public hearing, and there were questions and concerns regarding the height of the homes, wildlife and tree preservation, grading, drainage, and flooding. Juba had addressed the comments saying there was a maximum height allowed for the homes, and there was a plan to remove some of the trees on the west side of the development for grading and drainage. The developer was working with an engineer and tree service company to save as many trees as they could. They were also working to pull as much grading as possible away from the adjacent properties. The Planning Commission had unanimously recommended approval of the variance, property line adjustment, minor subdivision, and preliminary plat subject to the conditions listed in the resolutions. Staff recommended approval of the final plat and development agreement, subject to the City Attorney's approval. Petryk talked about improvements that had been done to the sewer inceptor in the past that caused water issues with residents. She questioned whether this development would help solve some of those issues. Erichson responded that the inceptor improvements coincided with some very wet years that may have attributed to that. He said there it is likely this project could provide more relief there, and it would not aggravate the water problems further. Hugo City Council Meeting Minutes for July 19, 2021 Page 8 of 12 Mayor Weidt opened the public hearing. Johanna Markeson, 4898 121 st Street, asked about the digging of holes killing her trees. Erichson stated he would have discussions with individual property owners and they would assess the trees and impacts. He noted it was unsafe to have roots removed on one side. Markeson also asked that the road be lowered to avoid water ponding at the end of her driveway. Theresa Sorensen, 5049 120 Street Court, was concerned about the trees they planted on their property line. She referenced a memo from July 14 about pulling back the grading, and she wanted that to be on the record. She said they would need 13-14 feet from the base of the trees, and she hoped the buffer could be but in writing. Richard Degnan, 12160 Falcon Avenue, said his home was built in 1984, and the majority of the homes in the area were operating on septic systems designed well before that time. He said they need to have these services, and the street improvement project provided them a golden opportunity to get it done. He encouraged the Council to adopt all the resolutions. Tom Sames, 12116 Falcon Avenue, stated his house was built in early 1900s and had an old system in dire need of being upgraded. He said he would like to see the utilities come through but was concerned about the proposed connection to the house because of trees planted there. The thought it might be easier to come in from the north. Erichson stated that he and Senior Engineer Technician Liz Finnegan would work with him and other property owners on how to make connections prior to finalizing construction. Denise Sames, 12116 Falcon Avenue, state she was in favor of sewer and water and saw it as a good opportunity. She noted there had been years of drainage issues in the area. She said she worried about the wildlife saying there was always a down size to growth. There were no other comments, and Mayor Weidt closed the public hearing The applicant spoke about how their engineering team worked hard with the City's engineering team to meet the standards, and were pleased they could collectively afford to get the neighbors connected to City services. She referenced the trees on north side saying they were working on the process. She said there had been questions regarding stakes, and she explained they were for the clearing limits. Upon approval they would stake the trees they wanted to save. Klein asked how drainage was being addressed. Erichson replied there was going to be one large oversized infiltration basin, and the existing wetland would also be utilized. Petryk made motion, Klein seconded, to approve RESOLUTION 2021-46 APPROVING A MINOR SUBDIVISION FOR DRENGSON MAY ENTERPRISES, LLC, FOR THE PROPERTY LOCATED AT 13165 EVERTON AVENUE NORTH. Roll call vote — All Ayes. Motion carried. Hugo City Council Meeting Minutes for July 19, 2021 Page 9 of 12 Petryk made motion, Miron seconded, to approve RESOLUTION 2021-47 APPROVING A PROPERTY LINE ADJUSTMENT FOR DREGSON MAY ENTERPRISES, LLC AND JOHANNA MARKESON FOR THE PROPERTY LOCATED NORTH OF 121sT STREET NORTH AND WEST OF FALCON AVENUE NORTH. Roll call vote — All Ayes. Motion carried. Miron made motion, Klein seconded, to approve RESOLUTION 2021-48 APPROVING A VARIANCE FROM THE LOT WIDTH REQUIREMENTS FOR TWO LOTS LOCATED EAST OF EVERTON AVENUE NORTH AND NORTH OF 121 ST STREET NORTH. Roll call vote — All Ayes. Motion carried. Petryk made motion, Strub seconded, to approve RESOLUTION 2021-49 APPROVING A PRELIMINARY PLAT FOR DRENGSON MAY ENTERPRISES, LLC FOR "ACRES OF BALD EAGLE" LOCATED NORTH OF 121sT STREET NORTH AND WEST OF FALCON AVENUE NORTH. Roll call vote — All Ayes. Motion carried. Petryk made motion, Klein seconded, to approve RESOLUTION 2021-50 APPROVING A FINAL PLAT AND DEVLEOPMENT AGREEMENT FOR DRENGSON MAY ENTERPRISES, LLC FOR ACRES OF BALD EAGLE. Roll call vote — All Ayes. Motion carried. Klein made motion, Strub seconded, to approve RESOLUTION 2021-51 ORDERING THE PROJECT, APPROVE PLANS AND SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS FOR THE 121sT STREET AND ACRES OF BALD EAGLE UTILITY AND STREET IMPROVEMENTS. Roll call vote — All Ayes. Motion carried. Public Hearing on Property Tax Abatement for Lions Park Improvements and Related Public Improvements and Approval of Related Items At the June 21, 2021 meeting, Council awarded bids for the downtown improvement project and Lions Park Site Improvements, new park pavilion, and CSAH 8 Stormwater Reuse Project. At that meeting, Council also directed staff to prepare a design and estimate for the second phase of the playground area. Hugo City Council Meeting Minutes for July 19, 2021 Page 10 of 12 Parks Planner Shayla Denaway presented additional equipment that had been identified by the Play Ground Committee. Minor changes to the grading and landscape plan would be completed by Peterson Companies. Phase two could be installed with the first phase in early November. She explained the second phase would be a challenge course with a linear set of activities geared for 13 years older and adults, and signs would provide direction on use of equipment. She informed the Council that the Committee had not reviewed these pieces in the last month, but they were the same Fitcore line the Committee had earlier identified to be located there. Also, the Parks Committee had not met since the last Council meeting to discuss these options. Denaway said there were two options for surfacing. One was artificial turf that would bring the total cost to $251,605.57 and the other was a pour -in -place surfacing that would bring the total to $207,854.64. She explained the difference of the two, and recommend Council discuss their preferred surfacing. Council asked questions on drainage, colors, fading, and how it acted as a landing surface. Denaway said they were mainly the same, and the difference was mostly aesthetics. Some fading would be expected with both products, and they would both have a warranty. Miron, who was on the Playground Committee, stated this equipment was the same as what the Committee originally considered. He added that the variety in equipment would draw different users, allowing residents to grow with the park. Strub made motion, Klein seconded, to approve the artificial turf but have Parks Commission review and possibly override the decision. All Ayes. Motion carried. Shayla talked about installation of an access control system and security cameras in the new Lions Park Pavilion. The access control system would be installed by Electro Watchman and connect to the existing system used at City Hall and other buildings. With the construction of the building, Electro Watchman also proposed to provide connections for a future intrusion alarm system. A proposal to install an access/door control system and wiring for a future intrusion system came to $26,360.95. Denaway explained there was also a proposal to install an Avigilon Security Camera System which would provide coverage of the interior and exterior of the pavilion and the adjacent parking lots in the amount of $47,213.17. This was just for installation of the system and did not include operation, maintenance, or data storage costs Council questioned why the intrusion system would not be installed now and questioned if the security system would affect insurance rates. Denaway stated intrusion systems often triggered false alarms, and Interim Finance Director Anna Wobse said she spoke with the insurance company and the system would likely help rates. The Council generally agreed that the cameras were necessary. Miron made motion, Klein seconded to approve the installation of the access control system and Avigilon security camera system in the amount of $73,574.12. All Ayes. Motion carried. Hugo City Council Meeting Minutes for July 19, 2021 Page 11 of 12 At the June 21, 2021, City Council meeting, Council also called for a public hearing on tax abatement to be held this evening in preparation for considering the sale of Tax Abatement Bonds to pay for the Lions Park and related public improvements. Mikaela Huot from Baker Tilly presented information to the Council regarding the use of tax abatement financing. She explained this was a tool that communities use for different types of projects including parks and community centers. The proposal in front of the Council was to provide the City with the authority to finance up to nine million dollars in bonds. The City would abate the property taxes for the taxes levied by the City on the properties included in the tax abatement area. The revenues would be used to pay debt service on General Obligation Tax Abatement Bonds. She explained this was not an actual abatement. Each of the property owners would pay all their taxes, and a portion of the tax revenues would be redirected for project expenses. This would be done through an annual levy. Each taxing entity could choose to participate in the abatement on their share of the property taxes. Maximum duration of abatement would be 20 years if there were two or fewer participants. The school district declined their participation. To use tax abatement, the City must hold a public hearing and adopt a resolution establishing the tax abatement area. Approval did not require the property owner consent. Council would then set the sale date and terms at their August 2, 2021, meeting, consider award of the bonds at their September 7, 2021, meeting, and receive proceeds on October 7, 2021. Petryk asked Hout to clarify for the public to understand that this would impact their taxes. Weidt opened the public hearing. There was no one in attendance, so he closed the public hearing. Miron made motion, Klein seconded, to approve RSOLUTION 2021-52 RESOLUTION APPROVING PROPERTY TAX ABATEMENTS. Roll call vote -all ayes. Motion carried. Update on Drought Conditions and Water Use City Administrator Bryan added this to the agenda to provide the Council on the drought situation and the latest DNR update. He displayed a map showing drought warning phases throughout the state. Southern Hugo was in the moderate drought category, and northern Hugo was in the severe drought category. This drought warning phase triggers items in the City's Water Supply Plan. During the warning phase, water suppliers were encouraged to implement restrictions with a goal of reducing water use to 50% of January's water use levels, which was 19,931,000 gallons of water. June's water use was 70,452,000 gallons. In an exceptional drought, Bear expected the governor to ban all nonessential uses of water. To meet the DNR requirements, Hugo had to implement water use reduction actions with the goal of reducing water by 30 million gallons. The City had an ordinance and could adopt emergency water use regulations by resolution. The City already had odd/even water restrictions. Hugo City Council Meeting Minutes for July 19, 2021 Page 12 of 12 There was a suggestion to put information prominently on the front page of the website, and it was asked how often the drought status changed by the DNR. Bear replied the information update on a weekly basis. Staff would keep a close watch of the supply plan and be ready implement additional measures. Vacancy on Brown's Creek Watershed District Board of Managers City Administrator Bryan Bear informed Council that there was a vacancy on the Brown's Creek Watershed District, and the County Board selects watershed district managers from lists of nominees submitted by the municipalities. If the City would like to submit a list of nominees, Washington County requested that be done by September 23, 2021. Anyone wishing to be on the Board should contact the City. National Night Out on Tuesday, August 3, 2021 At its meeting on June 19, 2021, Council scheduled a meeting to attend National Night Out events on Tuesday, August 3, 2021. City Administrator Bryan Bear recommend Council select a time and place to meet on Tuesday. Council agreed to meet at City Hall at 4:30 p.m. on August 3, 2021. Reschedule September 6 Council Meeting to September 7, 2021 The Council's first meeting in September fell on the Labor Day Holiday, Monday, September 6. City Administrator Bryan Bear recommended Council reschedule the first meeting in September to Tuesday, September 7, 2021. Miron made motion, Klein seconded, to reschedule the September 6, 2021, Council meeting to Tuesday, September 7, 2021. All Ayes. Motion carried. Adjournment Klein made motion, Strub seconded, to adjourn at 9:09 p.m. All Ayes. Motion carried. Respectfully Submitted, Michele Lindau, City Clerk