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2021.08.02 CC Packet
Meetings of the City Council are held in the Council Chambers. For those wishing to speak but do not wish to attend can participate in the meeting virtually via ZOOM pursuant to MN Statute Sec. 13D.021. The meeting ID and passcode are below. For more information on virtual participation, visit https://www.ci.hugo.mn.us/participate. Meeting ID: 883 7475 2886 Passcode: 776529 A. CALL TO ORDER B. ROLL CALL C. PLEDGE OF ALLEGIANCE D. APPROVAL OF MINUTES 1. July 19, 2021, Council Meeting E. APPROVAL OF AGENDA F. APPOINTMENTS/PRESENTATIONS 1. MN House Resolution to Chuck Haas for Service to Hugo – State Representative Bob Dettmer 2. Hugo Yellow Ribbon Update – Chuck Haas G. CONSENT AGENDA All matters listed under the Consent Agenda are considered to be routine by the City Council and will be enacted by one motion and a roll call vote. If a member of the City Council or the public wishes to discuss an item, that item will be removed from the Consent Agenda and will be considered separately. 1. Approve Claims Roster 2. Approve Annual Performance Review for Public Works Mechanic Dave Greeder 3. Approve Annual Performance Review for Public Works Director Scott Anderson 4. Approve Annual Performance Review for Public Works Lead Worker Mike Loeffler 5. Approve Revised Job Descriptions for the Hugo Fire Department 6. Approve Authorization for Zoning Ordinance Text Amendments to be Reviewed by the Ordinance Review Committee 7. Approve Pay Request No. 8 to Ebert Construction for the Public Works Facility Project 8. Approve Pay Request No.2 to Ebert Construction for Public Works Salt and Materials Storage Project Agenda HUGO CITY COUNCIL MEETING HUGO CITY HALL MONDAY, AUGUST 2, 2021 – 7 P.M. H. PUBLIC HEARING 1. None Scheduled I. UNFINISHED BUSINESS 1. Approve Resolution Providing for the Sale of $8,380,000 General Obligation Tax Abatement Bonds and Authorize Staff to Accept the Amount of Reoffering Premium Necessary to Fully Fund the Construction Fund 2. Discussion on Drought Conditions and Restrictions for Outdoor Water Use J. NEW BUSINESS 1. None Scheduled K. VISITOR PRESENTATIONS 1. None Scheduled L. COUNCIL PRESENTATIONS 1. None Scheduled M. ADMINISTRATIVE PRESENTATIONS 1. National Night Out Tuesday, August 3, 2021 2. Retirement Gathering for Fire Chief Kevin Colvard Saturday, August 28, 2021 N. ADJOURNMENT BACKGROUND MEMO FOR THE HUGO CITY COUNCIL MEETING ON AUGUST 2, 2021 D.1 Approval of Minutes for the July 19, 2021, Council Meeting Staff recommends Council approve of the minutes for the July 19, 2021, City Council meeting as presented. F.1 MN House Resolution to Chuck Haas for Service to Hugo – State Representative Bob Dettmer Minnesota House Representative Bob Dettmer will present a House resolution to former Council Member Chuck Haas for his years of service as a Hugo Council Member. F.2 Hugo Yellow Ribbon Update – Chuck Haas Chuck Haas will provide an update on the Hugo Yellow Ribbon activities. G.1 Approve Claims Roster Staff recommends Council approve the Claims Roster as presented. G.2 Approve Annual Performance Review for Public Works Mechanic Dave Greeder Dave Greeder was hired by the City of Hugo as the mechanic in the Public Works Department on August 8, 2005. Public Works Director Scott Anderson recommends Council approve the annual performance review for Public Works Mechanic Dave Greeder. G.3 Approve Annual Performance Review for Public Works Director Scott Anderson Scott Anderson was hired by the City of Hugo on August 11, 2003 as a Senior Engineering Technician, and on August 5, 2008, Scott was promoted as the City’s Public Works Director. City Administrator Bryan Bear recommends Council approve the annual performance review for Public Works Director Scott Anderson. G.4 Approve Annual Performance Review for Public Works Lead Worker Mike Loeffler Mike Loeffler was hired as a Maintenance Worker for the City of Hugo’s Public Works Department on August 5, 2002. On October 17, 2011, Mike was promoted to be the Public Works Lead Worker. Public Works Director Scott Anderson recommends Council approve the annual performance review for Public Works Lead Worker Mike Loeffler G.5 Approve Revised Job Descriptions for the Hugo Fire Department The Hugo Fire Department has updated the job descriptions for all positions with the exception of the Fire Chief, which was recently updated. Fire Chief Jim Compton, Jr. recommends Council approve the revised job descriptions for the Fire Department. G.6 Approve Authorization for Zoning Ordinance Text Amendments to be Reviewed by the Ordinance Review Committee The Ordinance Review Committee (ORC) has reviewed several ordinance text amendments since 2004. Over the next year the ORC will be reviewing and making recommendation on zoning ordinance text amendments. Some of these include the Shoreland Overlay District regulations, Adequate Public Facilities ordinance, and Zoning District regulations. Staff will be preparing a work plan for the ORC on these revisions. There are also areas of the zoning code that have inconsistencies or minor revisions that should be fixed. Staff recommends the City Council authorize zoning ordinance text amendment to be reviewed by the ORC. G.7 Approve Pay Request No. 10 to Ebert Construction for the Public Works Facility Project Ebert Construction has submitted pay request No. 10 for payment for the City of Hugo Public Works Facility project in the amount of $601,187.02. The quantities completed to date have been reviewed and agreed upon by the architect, contractor and City staff. The amount indicated above reflects the work certified through July of 2021, with a 5% retainage applied. Total retainage being held for the project to date is $255,444.96. Staff recommends the City Council approve payment request No. 8 in the amount of $601,187.02 to Ebert Construction. G.8 Approve Pay Request No.2 to Ebert Construction for Public Works Salt and Materials Storage Project Ebert Construction has submitted pay request No. 2 for payment for the City of Hugo Public Works Salt and Materials Storage project in the amount of $152,861.17. The quantities completed to date have been reviewed and agreed upon by the architect, contractor and City staff. The amount indicated above reflects the work certified through July of 2021, with a 5% retainage applied. Total retainage being held for the project to date is $10,990.79. Staff recommends the City Council approve payment request No. 2 in the amount of $152,861.17 to Ebert Construction. I.1 Approve Resolution Providing for the Sale of $8,380,000 General Obligation Tax Abatement Bonds and Authorize Staff to Accept the Amount of Reoffering Premium Necessary to Fully Fund the Construction Fund At the June 21 and July 19, 2021 City Council meetings, Council accepted bids and proposals for the Lions Park pavilion, site improvements, phase one and phase two playgrounds and related improvements. At the June 21 meeting, Council called for a public hearing on tax abatement to be held on July 19, 2021 in preparation for considering the sale of tax abatement bonds to pay for the improvements. The tax abatement public hearing was held on July 19 at the regularly scheduled City Council meeting and no public comments were received. Council approved the tax abetment district and the resolution approving the property tax abatements thus allowing the City to issue tax abatement bonds to finance the Lions Park project and related public improvements. Staff expects the cost of the improvements to total $8,650,000. Staff has been working with Paul Steinman from Baker Tilly on a preliminary debt service schedule and staff is recommending the issuance of tax abatement bonds in the principal amount of $8,380,000. The remainder of the project construction funds will come from the reoffering premium that is generated when the bonds are sold. Baker Tilly is projecting that the bond sale will bring a large enough reoffering premium which can be added to the project construction fund to fully fund the cost of the improvements at $8,650,000. If the reoffering premium comes in under or over the projected amount, the principal amount of the bond will need to be increased or decreased on the morning of the sale. Interim Finance Director Anna Wobse will give a brief presentation and Mikaela Huot from Baker Tilly will be in attendance to answer any questions. Staff recommends adoption of the Resolution Providing for the Competitive Negotiated Sale of $8,380,000 General Obligation Tax Abatement Bonds, Series 2021A and authorizing staff to accept the amount of reoffering premium that results in fully funding the project construction fund at $8,650,000 on the morning of the bond sale. I.2 Discussion on Drought Conditions and Restrictions for Outdoor Water Use At the June 21, 2021 meeting, staff provided an update to the City Council on drought conditions and reviewed existing watering restrictions within the City. The City Council directed staff to revise the watering restrictions outlined in Resolution 2001-10 and 2001-11 and work on educational outreach initiatives to residents. Since the meeting, staff has sent a letter to the top 50 residential water users in the City and included a flyer with residential irrigation tips in the last set of utility bills. Staff will provide an update at the City Council meeting on drought conditions as noticed by the DNR. Staff recommends that the City Council approve the resolution approving watering restrictions and regulations pertaining to the conservation of water. M.1 National Night Out Tuesday, August 3, 2021 The Council has scheduled a meeting to attend National Night Out events on Tuesday, August 3, 2021. Council will meet at Hugo City Hall at 4:30 p.m. Staff will provide a list of events. M.2 Retirement Gathering for Fire Chief Kevin Colvard Saturday, August 28, 2021 The Colvard Family is hosting a retirement party for Fire Chief Kevin Colvard on Saturday, August 28, 2021 from 5-8 p.m. at the Hanifl Fields Athletic Park. Staff recommends Council schedule as a meeting if they wish to attend. N. Adjournment 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 Minutes HUGO CITY COUNCIL MEETING HUGO CITY HALL MONDAY, JULY 19, 2021 – 7 P.M. 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. 1 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 1-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 Project 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 121st 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 121st 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 121st 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 121st 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 121st 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 124th 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 121ST 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 City of Hugo Claims August 2, 2021 G. 1 Vendor Invoice Amount Description Department Allstream 17616316 103.53$ Fax Lines Administration Batteries Plus Bulbs #031 P41699434 11.65$ Batteries - Unit #107-20 Water & Sewer Brock White Company LLC 14855065-00 793.60$ Tuck-Pointing Materials (CH) Gen Gov't Bldgs Canteen Refreshment Services MSP29072 89.39$ Breakroom Supplies Gen Gov't Bldgs Canteen Refreshment Services MSP29073 47.04$ Breakroom Supplies Public Works CAP Carpet & Flooring LLC 58682 6,967.50$ Carpet & Installation - FH (1/2) Fire Dept CDW Government G524575 183.26$ UPS Backups for Lift Stations Sewer Utility CDW Government G524575 91.63$ UPS Backups for Wells Water Utility City of Roseville 230236 877.78$ Laserfiche License Administration Comcast 7/12/2021 25.17$ Business Cable (thru August 21) Administration Comcast 126001910 505.40$ Business Internet (July) Administration Comcast 126001910 505.40$ Business Internet (July) Public Works Core & Main LP P237929 12,264.10$ Radio Meters Water Utility Custom Cap & Tire LLC 270038672 1,416.00$ Tire Replacement - Unit #317 Street Dept De Lage Landen Financial Services Inc 73053930 311.37$ July Copier Lease Payment Administration Fobbe Contracting Inc 4817 1,800.00$ Hydrant Repairs Water Utility Grainger 9947747409 38.79$ Inspection and Out of Service Tags Fire Dept Grainger 9947773975 201.91$ Axes Fire Dept Grainger 9962161379 63.62$ Batteries & Headlamp Fire Dept Green Value Nursery 72224 188.10$ Plantings - Beaver Ponds (Play Equip. Relocation) Special Parks Fund Hagstrom, Terry CLAIM 128.53$ Cell Phone Accessories (Wireless Zone) Building Inspections Hagstrom, Terry CLAIM 55.96$ Safety Gear (Menards) Building Inspections Hagstrom, Terry CLAIM 39.38$ Safety Gear (Fleet Farm) Building Inspections HCM Architects 2066-8 5,830.22$ Lions Park Architect Services Special Parks Fund Holiday Companies 83022003 38.63$ Propane Fire Dept Holiday Companies 104913008 19.32$ Propane for Paver Street Dept Holiday Companies 115812009 19.32$ Propane for Paver Street Dept Home Depot Credit Services 7520713 67.88$ Shop Tools Public Works Innovative Office Solutions LLC IN3407508 158.84$ Copy Paper Administration Innovative Office Solutions LLC IN3407508 96.92$ Calculator & Staplers Building Inspections Innovative Office Solutions LLC IN3407508 42.66$ Breakroom Supplies Gen Gov't Bldgs Innovative Office Solutions LLC IN3413209 54.65$ Restroom Supplies Public Works Innovative Office Solutions LLC IN3413209 35.44$ Trash Can Liners Public Works Innovative Office Solutions LLC IN3413248 76.77$ Restroom Supplies Public Works Innovative Office Solutions LLC IN3413248 35.44$ Trash Can Liners Public Works Innovative Office Solutions LLC IN3415063 31.51$ Breakroom Supplies Gen Gov't Bldgs Innovative Office Solutions LLC IN3419006 271.04$ Hand Towel Dispensers - Hanifl Parks Dept Innovative Office Solutions LLC IN3419006 45.58$ Restroom Supplies Public Works International Institute of Municipal Clerks 26741 175.00$ 2021 Membership Dues - Michele Lindau City Clerk Jimmy's Johnnys Inc 186828 152.44$ Portable Toilet Rental - Lions Park Parks Dept Jimmy's Johnnys Inc 186829 127.00$ Portable Toilet Rental - Oakshore Park Parks Dept Jimmy's Johnnys Inc 186830 127.00$ Portable Toilet Rental - Oneka Lake Park Parks Dept Jimmy's Johnnys Inc 186831 127.00$ Portable Toilet Rental - Beaver Ponds Park Parks Dept Jimmy's Johnnys Inc 186832 127.00$ Portable Toilet Rental - Diamond Point Park Parks Dept Jimmy's Johnnys Inc 186833 127.00$ Portable Toilet Rental - Frog Hollow Park Parks Dept Jimmy's Johnnys Inc 186834 508.00$ Portable Toilet Rental - Hanifl Park Parks Dept Jimmy's Johnnys Inc 186835 127.00$ Portable Toilet Rental - Valjean Park Parks Dept Jimmy's Johnnys Inc 186836 127.00$ Portable Toilet Rental - Arbre Park Parks Dept Jimmy's Johnnys Inc 186837 127.00$ Portable Toilet Rental - Heritage Ponds Park Parks Dept Jimmy's Johnnys Inc 186838 127.00$ Portable Toilet Rental - McCollar Park Parks Dept Jimmy's Johnnys Inc 186839 127.00$ Portable Toilet Rental - Arcand Park Parks Dept Johnson/Turner June 4,829.00$ Prosecution Fees (Flat Fee) General Legal Johnson/Turner June 364.95$ Disbursements (Prosecution Costs) General Legal Johnson/Turner June 4,013.25$ Civil Legal Fees - See Attached Breakdown General Legal Kahuna Window Cleaning 9524 558.48$ Window Cleaning Service (CH) Gen Gov't Bldgs Kahuna Window Cleaning 9524 528.00$ Exterior Cleaning Service (CH) Gen Gov't Bldgs Kahuna Window Cleaning 9524 167.00$ Window Cleaning Service (PW) Public Works Kahuna Window Cleaning 9524 390.00$ Window Cleaning Service (Hanifl) Parks Dept Lawson Products 9308615996 222.40$ Bulk Hardware Supplies Public Works Lawson Products 9308618182 252.30$ Bulk Hardware Supplies Public Works Lawson Products 9308633464 128.89$ Street Sign Hardware Street Dept Menards 66606 69.92$ Fire Department Supplies Fire Dept Menards 66793 164.95$ Hardware - Arcand Park Parks Dept Menards 66793 41.12$ Raingarden Supplies Gen Gov't Bldgs Menards 66887 131.78$ Safety Supplies Public Works Menards 66887 109.99$ Pop-Up Canopy Public Works Menards 66887 106.89$ Shop Tools Public Works Metering & Technology Solutions 19899 311.82$ Water Meters & Hardware Water Utility Metering & Technology Solutions 19955 13,808.91$ Water Meters & Hardware Water Utility Page 1 City of Hugo Claims August 2, 2021 G. 1 Vendor Invoice Amount Description Department Michael Basich Inc 712021-1 42,023.72$ Playground Equipment Relocation - Beaver Ponds Special Parks Fund Minnesota Cleaning Services Inc 0821HH01 605.00$ July Cleaning Service Gen Gov't Bldgs Minnesota Cleaning Services Inc 0821HH03 500.00$ July Cleaning Service Public Works Minnesota Cleaning Services Inc 0821HH03 450.00$ July Cleaning Service Fire Dept Minnesota Cleaning Services Inc 0821HH02 100.00$ July Cleaning Service - Hanifl Parks Dept Minnesota Rural Water Association Registration 900.00$ Hydrant Repair Workshop (9) Water Utility Motis Fire Rescue Inc S02212 350.94$ Snagger Rescue Tools Fire Dept NAC Mechanical Corp 186079 549.05$ HVAC Repairs - CH Gen Gov't Bldgs Nuss Truck & Equipment 4674293P 326.39$ Parts - Unit #201 Street Dept Oertel Architects 20-01.14 7,103.04$ Public Works Facility Public Works Olson's Sewer Service Inc 95242 1,128.00$ Septic System Pumping & Inspection (Hanifl) Parks Dept Olson's Sewer Service Inc 95377 284.65$ Septic System Repairs (Hanifl) Parks Dept Oxygen Service Company 3497128 52.80$ Welding Supplies Public Works Preisler, Chuck CLAIM 654.24$ Mileage Building Inspections Press Publications 707415 199.65$ Tax Abatement Public Hearing Notice - Lions Park Imps Special Parks Fund Press Publications 708690 127.06$ City Council Public Hearing Notice Ordinances/Proceedings Press Publications 708691 30.25$ City Council Special Meeting Notice Ordinances/Proceedings Press Publications 708692 235.95$ Statement of Cash Flows Ordinances/Proceedings Press Publications 708694 308.55$ Summary Financial Report Ordinances/Proceedings Press Publications 708695 254.10$ Statement of Revenues & Expenses Ordinances/Proceedings Press Publications 708696 254.10$ Statement of Net Position Ordinances/Proceedings Quadient Leasing USA Inc N8966240 68.99$ Meter Rental - June Administration Quadient Leasing USA Inc N8966240 68.99$ Meter Rental - July Administration Quadient Leasing USA Inc N8966240 68.99$ Meter Rental - August Administration Ricoh USA, Inc 105079619 194.61$ Copier Lease Payment (May) Public Works Ricoh USA, Inc 105079620 194.61$ Copier Lease Payment (June) Public Works Ricoh USA, Inc 105079621 194.61$ Copier Lease Payment (July) Public Works Ricoh USA, Inc 105174275 194.61$ Copier Lease Payment (August) Public Works Ricoh USA, Inc 105016083 (123.18)$ Copier Lease Payment (Previous Lease - May Credit) Public Works Ricoh USA, Inc 105016083 (34.55)$ Overage Charges (Previous Lease - May Credit) Public Works Ricoh USA, Inc 1029026USC (49.27)$ Carryover Credit from Previous Lease Public Works Safe-Fast Inc INV248490 1,086.01$ 4-Gas Meter & Accessories Sewer Utility Sam's Club 72723 109.09$ Fire Department Supplies Fire Dept Scandia Electric Inc 116621 7,160.00$ Electrical Undergrounding - Lions Park Imps Special Parks Fund Schifsky (T.A.) & Sons Inc 67407 4,010.62$ Asphalt Street Dept Schifsky (T.A.) & Sons Inc 67444 966.52$ Asphalt Street Dept SHI International Corp B13743989 365.00$ Windows Office License Building Inspections Signature Lighting Inc 1266 3,061.84$ Streetlight Repairs Street Dept Snap-On Industrial ARV / 48862165 12.12$ Shop Tools Public Works St. Croix Recreation Fun Playgrounds Inc 20893 6,900.00$ Engineered Surfacing- Beaver Ponds(Play Equip. Relocation)Special Parks Fund Sun Life Financial August 1,024.16$ Disability Premium Finance Dept Terrys Repair Co 5066 128.12$ Repairs - Unit #317 Street Dept Total Control Systems Inc 9837 1,369.05$ Transducer & Tech Labor - Well No. 6 Water Utility Total Control Systems Inc 9837 157.65$ Tech Labor - SCADA System Water & Sewer TruGreen 142139126 1,050.00$ Grub Control - Hanifl Fields Parks Dept UniFirst Corporation 090 0622601 44.61$ Supplies & Floor Mat Services (CH) Gen Gov't Bldgs UniFirst Corporation 090 0636335 135.30$ Uniform, Supplies & Floor Mat Services (PW) Public Works UniFirst Corporation 090 0637702 14.08$ Supplies & Floor Mat Services (CH) Gen Gov't Bldgs UniFirst Corporation 090 0637703 29.52$ Supplies & Floor Mat Services (FH) Fire Dept UniFirst Corporation 090 0637704 135.30$ Uniform, Supplies & Floor Mat Services (PW) Public Works Washington Conservation District 5278 675.00$ East Metro Watershed Membership Stormwater Fund Washington County Sheriff 191304 603,832.25$ Police Services January - June 2021 Law Enforcement Washington County Sheriff 191367 8,565.46$ Good Neighbor Days Security Law Enforcement Water Conservation Service Inc 11503 301.60$ Watermain Leak Locates (Foxhill) Water Utility Weber, Emily CLAIM 2.00$ Canva Image Fees (Irrigation Inserts) Water Utility Weigel Sings, Bill 21-274 48.00$ Nameplates - Parks Commissioners Parks Dept Xcel Energy 51-0013644037-3 83,352.92$ Electrical Undergrounding - Lions Park Imps Special Parks Fund Xcel Energy 51-0013656761-5 5,288.00$ Electrical Undergrounding - Lions Park Imps Special Parks Fund Xcel Energy 51-0013009096-8 139.07$ Water Tower No. 4 Electric Water Utility Xcel Energy 51-0013302066-4 11.61$ Public Works Facility Temporary Electric Public Works Xcel Energy 51-0013302066-4 11.78$ Public Works Facility Temporary Electric Public Works Ziegler Inc IN000173719 38.50$ Parts - Unit #T1 Fire Dept 849,079.50$ Total Claims for August 2, 2021 Page 2 Job Description Position Title: Assistant Chief Department: Fire Department Reports to: Fire Chief Pay Grade: Part Time/Paid on-Call Salary: Per City Salary Resolution Purpose Perform duties essential to the Fire Department Organizational Relationships Communicate with: Fire Department Officers, Firefighters, and other city staff Supervises: Directs work of the Captains and other subordinate staff Receives work assignments from: Fire Chief Essential Duties / Responsibilities The following duties are normal for this position. These are not to be construed as exclusive or all inclusive; other duties may be required or assigned. Essential Functions • Perform all essential functions of a Fighter’s position. • Supervise and provide direction to the Captains. • Oversee the hiring practices for the department. • Oversee building operations and maintenance. • Assist the Fire Chief in the development, planning and implementation of the goals and objectives of the department. • Direct and oversee multi-company response to an emergency event. • Serve as the incident commander at emergency scenes as needed. • Work within the given budget. • May assume full responsibility for the Fire Department in the absence of the Fire Chief and Deputy Chief. • Recommend changes in policies and procedures. • Maintain updated CIP for the fire station and building equipment. • Act as member of the Hiring Committee. Required Knowledge, Skills and Abilities • All knowledge, skills, and abilities listed under positions that report directly to this position. • Ability to assist the Fire Chief in planning, directing, managing/overseeing the activities and operations of the Fire Department. • Ability to manage and supervise the activities of one or more assigned functions, which may include all personnel issues and building equipment. • Ability to direct the work of the Training Captain and other subordinate staff. • Ability to participate in the development of departmental goals and objectives. • Assists in the formulation of policies and procedures. Education and /or Certifications Desired • All educational and/or certifications listed under positions that report directly to this position. • Attend any classes needed for the position as approved by the Fire Chief. Annual Requirements Meet all annual requirement of the Firefighter’s position. Job Description Position Title: Captain Department: Fire Department Reports to: Deputy or Assistant Chief Pay Grade: Part Time/Paid on-Call Salary: Per City Salary Resolution Purpose Perform duties essential to the Fire Department Organizational Relationships Communicate with: Fire Department Officers, Firefighters, and other city staff Supervise: Lieutenant Receives work assignments from: Fire Chief or other Fire Department Officers Essential Duties / Responsibilities The following duties are normal for this position. These are not to be construed as exclusive or all inclusive; other duties may be required or assigned. Essential Functions Perform all essential functions of a Firefighter’s position. Supervise and provide direction to Lieutenants. Act as incident commander in the absence a Chief Officer. Act as a drill team leader. Additional Functions of the Training Captain Establish and schedule weekly training drills. Work within the given training budget. Schedule all required classes for newly hired employees. Maintain all training records. Develop and implement a leadership development program for the department. Instruct training sessions as needed. Act as Member of the hiring committee. Schedule extra training as the need arises. Encourage employees to attend extra classes in related subjects. Maintain all course outlines and training materials. Submit annually a year-end report to the Chief on the completed training and upcoming training for the annual report. Encourage safe practices during all training events. Follow up with colleges or other training entities in regards to billing, attendance, curriculum or other issues. Attend required meetings that are over and above those required of a Lieutenant or Firefighter. Additional Functions of the Safety Captain Act as the health and safety officer for all functions of the department. Act as the incident safety officer on emergency scenes. Establish and maintain a written respiratory protection program. Keep accurate records of all SCBA’s. Provide each firefighter with proper PPE’s and uniforms including ordering, repairing and distributing. Captain Job Description Page 2 of 2 Establish and maintain an infectious disease program. Keep and maintain records of all MSDS’s within fire station. Keep and maintain records of all hose testing. Establish and maintain an exposure control plan. Oversee any maintenance required for gas meter, inferred camera, heat detector, ladders and fill station. Direct maintenance and cleaning of station and equipment. Recommend changes that would benefit the operation of the station and emergency response. Schedule Fit and Physical test, Right to Know classes. Additional Functions of the Administrative Captain Schedule all community events the department participates in. Maintain attendance records at community events. Maintain any other Administrative records as needed Complete any other Administrative duties as directed by the Chief, Deputy Chief or Assistant Chief. Submit annually a year-end report to the Chief detailing the department’s involvement in community events. Coordinate and supervises department community outreach and events. Required Knowledge, Skills and Abilities All knowledge, skills, and abilities listed under positions that report directly to this position. (Training Captain) Ability to provide overall training needs to the department including scheduling, recordkeeping, and advising the Deputy Chief or Assistant Chief of additional training requirements for the department. (Safety Captain) Ability to provide overall safety for all firefighters in emergency response activities, training and general safety within the department. Education and /or Certifications • All Education and/or Certifications listed under positions that report directly to this position. Attend any classes needed for the position as approved by the Fire Chief. Annual Requirements Meet all annual requirements of the Firefighter’s position. Job Description Position Title: Chief Engineer Department: Fire Department Reports to: Deputy Chief Pay Grade: Part Time/Paid on-Call Salary: Per City Salary Resolution Purpose Perform duties essential to the Fire Department Organizational Relationships Communicate with: Fire Department Officers, Firefighters and other City staff Supervises: Engineers Receives work assignments from: Fire Chief and or other Fire Department Officers Essential Duties / Responsibilities The following duties are normal for this position. These are not to be construed as exclusive or all inclusive; other duties may be required or assigned. Essential Functions All essential functions of a Firefighter’s position. Supervise and provide direction to Engineers. Drive all apparatus safely to all calls. Be knowledgeable in all aspects of pumping, drafting and apparatus operations. Verify all vehicles and equipment are in good working order and safe. Keep records of maintenance, inspections and repairs. Act as member of all new truck purchase committees. Give feedback on all equipment purchases. Maintain inventory of equipment and supplies pertinent to fire and rescue apparatus and equipment. Work within the given equipment budget. Train Engineers on all aspects of apparatus operation. Instruct other firefighters in the proper use of all apparatus. Develop and schedule all work tasks for monthly apparatus checks. Operate fire pumps monthly. Schedule annual DOT inspections for all apparatus. Recommend changes that would benefit the operation of the station and emergency response. Attend required meetings that are over and above those required of a firefighter. Required Knowledge, Skills and Abilities All knowledge, skills, and abilities listed under positions that report directly to this position. Ability to maintain, inspect and establish quality records for all vehicles and equipment on vehicles. Education and /or Certifications Required All education and/or certifications listed under positions that report directly to this position. Obtain State Certification for Fire Apparatus Operator prior to appointment. Complete any educational opportunities approved by the Fire Chief. Annual Requirements • Meet all annual requirements of the Firefighter’s position. Job Description Position Title: Deputy Chief Department: Fire Department Reports to: Fire Chief Pay Grade: Part Time/Paid on-Call Salary: Per City Salary Resolution Purpose Perform duties essential to the Fire Department Organizational Relationships Communicate with: Fire Department Officers, Firefighters and other city staff Supervises: Directs the work of the Captains, Chief Engineer, and other subordinate staff Receives work assignments from: Fire Chief Essential Duties / Responsibilities The following duties are normal for this position. These are not to be construed as exclusive or all inclusive; other duties may be required or assigned Essential Functions • All essential functions of a Firefighters position. • Supervise and provide direction to Captains and Chief Engineer. • Assists the Fire Chief in the development, planning and implementation of the goals and objectives of the department. Directs and oversees multi-company response to an emergency event. Supervises and provides day to day oversight for Safety Captain and Chief Engineer. • Serves as the incident commander at emergency scenes as needed. • Work within the given budget. • May assume full control of the Fire Department in the absence of the Fire Chief. Establishes the communication plan for the department. Maintains all communications equipment for the department. Oversees technology for the department. • Recommends changes in policies and procedures. • Maintains inventory control of assigned communication devices, tools and equipment. • Maintains updated CIP for the fire trucks and equipment. Required Knowledge, Skills and Abilities All knowledge, skills, and abilities listed under positions that report directly to this position. • Ability to assist the Fire Chief in planning, directing, managing/overseeing the activities and operations of the Fire Department. • Ability to manage and supervise the activities of one or more assigned functions, which may include communications, fire apparatus and equipment. • Ability to direct the work of the Safety Captain, Chief Engineer, and other subordinate staff. • Ability to participate in the development of departmental goals and objectives. • Assists in the formulation of policies and procedures. Deputy Chief Job Description Page 2 of 2 Education and /or Certifications Desired All educational and/or certifications listed under positions that report directly to this position. • Attend any classes needed for the position as approved by the Fire Chief. Annual Requirements • Meet all annual requirements of the Firefighter’s position. Job Description Position Title: Engineer Department: Fire Department Reports to: Chief Engineer Pay Grade: Part Time/Paid on-Call Salary: Per City Salary Resolution Purpose: Perform duties essential to the Fire Department Organizational Relationships: Communicates with: Fire Department Officers, Firefighters and other City staff Supervises: None Receives work assignments from: Fire Chief, Chief Engineer and or other Fire Department Officers. Essential Duties/Responsibilities: The following duties are normal for this position. These are not to be construed as exclusive or all inclusive; other duties may be required or assigned. Essential Functions: All essential functions of a Firefighter’s position. Operate all apparatus safely. Be knowledgeable in all aspects of pumping, drafting and apparatus operations. Verify all vehicles and equipment are in good working order and safe. Keep records of maintenance, inspections and repairs. Maintain inventory of equipment and supplies pertinent to fire and rescue apparatus and equipment. Communicate with supervisor. Have considerable knowledge of city street, geography, hydrant areas and local water source locations. Other Functions: Instruct other firefighters in the proper use of all apparatus and equipment. Complete monthly engineer truck check lists as assigned by the Chief Engineer. Recommend changes that would benefit the operation at the station and/or emergency response. Attend required meetings that are over and above those required of a firefighter. Participate in drill demonstrations, courses in hydraulics, pump operation and maintenance, firefighting techniques and medical training. Attend additional work drills and pump drills when necessary. Required Knowledge, Skills and Abilities: • All knowledge, skills and abilities listed for the Firefighter position. Completion of probationary period. Ability to handle extensive training in operation of apparatus, tools and equipment. Ability to perform hazardous tasks under emergency conditions, which may require strenuous exertion under such handicaps as smoke and cramped surroundings and in the inspections of buildings for fire hazards to prevent fires from starting. Ability to maintain, inspect and keep quality records for all vehicles and equipment on vehicles. Engineer Job Description Page 2 of 2 Required Education and/or Certifications: • All education and/or certifications listed under positions that report directly to this position. Take and pass an approved Apparatus Operator course prior to appointment. Annual Requirements Meet all annual requirements of the Firefighter’s position. Job Description Position Title: Fire Marshal Department: Fire Department Reports to: Fire Chief Pay Grade: Part Time/Paid on-Call Salary: Per City Salary Resolution Purpose Perform duties essential to the Fire Department related to fire inspection and prevention. Organizational Relationships Communicate with: Fire Department Officers, Firefighters and other city staff. Supervises: None Receives work assignments from: Fire Chief. Essential Duties / Responsibilities The following duties are normal for this position. These are not to be construed as exclusive or all inclusive; other duties may be required or assigned. Essential Functions All Essential Functions of a Firefighter position. Participate in the inspection of sprinkling systems and elements of fire prevention or protection systems to ensure fire code requirements are met. Encourage and conduct voluntary fire prevention inspections of non-residential buildings within the City. Prepare and maintain correspondence, records and reports relating to fire prevention inspections. Coordinates and oversees the delivery of and participates in public fire prevention education programs. Work to ensure safe handling of hazardous materials in the City of Hugo. Issue Burning Permits. Communicate with Building Department and participate in reviews of commercial construction plans for fire code compliance, and resolves compliance problems with contractors and architects within scope of knowledge and authority having jurisdiction. Participate in site plan review. Collaborate with the Building Official in assigning addresses for new developments. Respond to complaints from citizens as it pertains to fire safety, and works to resolve compliance problems with owners within scope of knowledge and authority. Research code issues and provide the general public with fire prevention and safety information. Maintain up-to-date working knowledge of current fire code requirements, regulations, and certifications through continuing education. Recommend changes in policies and procedures. Recommend changes that would benefit the operation of the station and emergency response. Attend required meetings that are over and above those required of a firefighter. Attend training courses, read and study assigned materials related the position of Fire Marshal. Participate in educating the public on fire safety. Fire Marshal Job Description Page 2 of 2 Required Knowledge, Skills and Abilities All knowledge, skills and abilities of a Firefighter’s position. Ability to coordinate work with City staff. Ability to act effectively in emergency and stressful situations. Ability to read and interpret building construction and site plans and specifications. Ability to express oneself clearly and concisely both orally and in writing. Ability to participate in the development of departmental goals and objectives. Assists in the formulation of policies and procedures. Education and /or Certifications Required Within 2 Years of Appointment All educational requirements for a Firefighter. Fire Inspector I Class or Equivalent. Attend any classes needed for the position as approved by the Fire Chief. Annual Requirements Meet all annual requirements of the Firefighter’s position. Job Description Position Title: Firefighter Department: Fire Department Reports to: Lieutenant Pay Grade: Part Time/Paid on-Call Salary: Per City Salary Resolution Purpose Perform duties essential to the Fire Department. Organizational Relationships Communicate with: Fire Department Officers, Firefighters, and other city staff Supervises: None Receives work assignments from: Fire Chief and other Fire Department Officers Essential Duties / Responsibilities The following duties are normal for this position. These are not to be construed as exclusive or all inclusive; other duties may be required or assigned. Essential Functions Respond to fire and other emergency calls. Drive and operate firefighting vehicles and equipment in a safe and appropriate manner. Select hose and nozzle depending on the type of fire and direct stream of water or chemical onto fire. Position and climb ladders to gain access to upper levels of buildings or to assist individuals from burning structures. Create openings in building for ventilation or entrance. Administer EMS to all injured persons. Communicate with supervisor. Act as a representative of the Fire Department at community events in a professional and positive manner. Act as Incident Command in the absence of Chief Officers, Captains or Lieutenants. Maintain positive attitude in performance of all duties. Participate in training drills, meetings, demonstrations and public events within or around the City of Hugo. Attend training courses, read and study assigned materials related to fire prevention, suppression, rescue, training, public fire safety education and emergency medical services. Perform assigned duties in maintaining apparatus, buildings, equipment, grounds and hydrants. Participate in educating the public in fire safety and fire prevention. Required Knowledge, Skills and Abilities Ability to frequently talk, listen, sit, stand, crawl, kneel, balance, reach or maneuver certain ways. Ability to frequently lift 10 pounds and occasionally lift and or move 100 pounds. Ability to handle extensive training in operations of apparatus, tools and equipment. Ability to work in extreme conditions including but not limited to heat, cold, heights, confined spaces, and high stress environments. Ability to perform hazardous tasks under emergency conditions, which may require strenuous exertion under such handicaps as smoke and cramped surroundings. Firefighter Job Description Page 2 of 2 Ability to identify fire safety hazards within the City. Ability to complete and pass Firefighter Physical Fitness Test. Ability to complete and pass Firefighter Oral Interview Test. Ability to complete and pass Firefighter Personal Evaluation. Ability to complete and pass Firefighter pre-employment physical, health history, drug screen “non DOT” and criminal background check. Education and/or Certifications Required High School Diploma or GED equivalent Education and/or Certifications required within 2 years of hire EMSRB EMR State Certified FFI State Certified FFII NIMS 700,100,200 NFPA 1072 Hazmat Ops Annual Requirements Attain the established percentages needed for calls and training to be held in good standing with the Fire Department. Maintain 100% of Mandatory Training included but not limited to Emergency Medical Responder Modules and CPR Training, OSHA Right to Know, Blood Borne Pathogens and other Fire Fighter Training required to maintain certifications provided by the Hugo Fire Department and approved outside entities. Receive clearance from annual medical evaluation to resume duties as a fire fighter for the City of Hugo based current medical tests included but not limited to, SCBA/N95 Fit Testing, Hearing, Cardiac and Pulmonary Functions and any other tests deemed necessary by the City of Hugo Fire Department or Medical Professionals. Maintain a valid Minnesota Driver’s License in accordance with the City of Hugo Employee Handbook and Personnel Policy. Job Description Position Title: Lieutenant Department: Fire Department Reports to: Captain Pay Grade: Part Time/Paid on-Call Salary: Per City Salary Resolution Purpose Perform duties essential to the Fire Department Organizational Relationships Communicate with: Fire Department Officers, Firefighters, and other city staff Supervise: Firefighters Receives work assignments from: Fire Chief or other Fire Department Officers Essential Duties / Responsibilities The following duties are normal for this position. These are not to be construed as exclusive or all inclusive; other duties may be required or assigned. Essential Functions Perform all essential functions of a Firefighter’s position. Direct a piece of apparatus and the crew that is assigned to that apparatus. Assure that all equipment under their direction is operated in a safe manner. Act as incident commander in the absence a Chief Officers or Captains. Act as a drill team leader. Direct maintenance and cleaning of station and equipment. Recommend changes that would benefit the operation of the station and emergency response. Attend required meetings that are over and above those required of a firefighter. Participate in or instruct drills, demonstrations, and courses in hydraulics, pump operation and maintenance, firefighting techniques and medical training. Attend or instruct training courses, read and study assigned materials related to fire prevention, suppression, rescue, training, and public fire safety education. Participate in educating the public on fire and life safety. Additional Functions of a Training Lieutenant Provide assistance to the Training Captain Act as a member of the Hiring Committee Additional Functions of a Safety Lieutenant Provide assistance to the Safety Captain Additional Functions of an Administrative Lieutenant Provide Assistance to the Administrative Captain Required Knowledge, Skills and Abilities All knowledge, skills, and abilities listed under positions that report directly to this position. Ability to direct a crew in firefighting, EMS, or other citizen assistance. Ability and willingness to enroll in educational opportunities that are approved by the Fire Chief. Lieutenant Job Description Page 2 of 2 Education and /or Certifications required within 2 years of Promotion All Education and/or Certifications listed under positions that report directly to this position. NIMS 300,400,800 Fire Officer I Course Attend any classes needed for the position as approved by the Fire Chief. Annual Requirements Meet all annual requirements of the Firefighter’s position Agenda Number ____ CITY OF HUGO COMMUNITY DEVELOPMENT DEPARTMENT MEMORANDUM TO: Bryan Bear, City Administrator FROM: Rachel Juba, Community Development Director SUBJECT: Ordinance Review Committee: Authorization for Zoning Ordinance Text Amendments. DATE: July 29, 2021, for the City Council Meeting of August 2, 2021 1. BACKGROUND: The Ordinance Review Committee (ORC) has reviewed several ordinance text amendments since 2004. Over the next year the ORC will be reviewing and making recommendation on zoning ordinance text amendments. Some of these include the Shoreland Overlay District regulations, Adequate Public Facilities ordinance, and Zoning District regulations. Staff will be preparing a work plan for the ORC on these revisions. There are also areas of the zoning code that have inconsistencies or minor revisions that should be fixed. 2. OVERVIEW OF ORDINANCE TEXT AMENDMENTS: Some of the inconsistencies are related to what uses are allowed in each zoning district and the performance standard for the use. Most uses have performance standards that are required in order to conduct the use. The inconsistencies in the Shoreland Overlay District is related to meeting the DNR rules for development in the Shoreland Overlay District. There are other minor revisions to certain sections that staff will present to the ORC. The ORC with will on each section separately and make recommendations to the Planning Commission. 3. RECOMMENDATION: Staff recommends the City Council authorize zoning ordinance text amendment to be reviewed by the ORC. All ordinance text amendments require public hearings. At the right time staff will recommend the City Council authorize notice of a public hearing on the text amendments. CITY OF HUGO CITY COUNCIL AGENDA REPORT TO: Bryan Bear, City Administrator FROM: Scott Anderson, Public Works Director SUBJECT: Construction Payment Request #10 Hugo Public Works Facility Ebert Construction DATE: For the City Council Meeting of August 2, 2021 BACKGROUND Please find the enclosed application for payment for the City of Hugo Public Works Facility project in the amount of $601,187.02. The quantities completed to date have been reviewed and agreed upon by the architect, contractor and city staff. The amount indicated above reflects the work certified through July 31, 2021, with a 5% retainage applied. Total retainage being held for the project to date is $255,444.96. DESIRED ACTION Staff recommends the City Council approve payment request #10 in the amount of $601,187.0 to Ebert Construction for the construction of the City of Hugo Public Works facility. CITY OF HUGO CITY COUNCIL AGENDA REPORT TO: Bryan Bear, City Administrator FROM: Scott Anderson, Public Works Director SUBJECT: Construction Payment Request #2 Hugo Public Works Salt and Materials Storage Building Ebert Construction DATE: For the City Council Meeting of August 2, 2021 BACKGROUND Please find the enclosed application for payment for the City of Hugo Public Works Salt and Materials Storage Building project in the amount of $152,861.17. The quantities completed to date have been reviewed and agreed upon by the architect, contractor and city staff. The amount indicated above reflects the work certified through July 31, 2021 with a 5% retainage applied. The total retainage being held to date will be $10,990.79. DESIRED ACTION Staff recommends the City Council approve payment request #2 in the amount of $152,861.17 to Ebert Construction for the construction of the City of Hugo Public Works salt and materials storage building. 14669 Fitzgerald Avenue North, Hugo, MN 55038 • (651) 762‐6300 • www.ci.hugo.mn.us TO: Honorable Mayor Tom Weidt and Members of the City Council FROM: Anna Wobse, Interim Finance Director SUBJECT: Issuance of General Obligation Tax Abatement Bonds for Lions Park and Related Improvements DATE: For the City Council Meeting of August 2, 2021 DESIRED COUNCIL ACTION Adopt Resolution Providing for the Sale of $8,380,000 General Obligation Tax Abatement Bonds, Series 2021A and authorize staff to accept the amount of reoffering premium necessary to fully fund the project construction fund. BACKGROUND At the June 21 and July 19, 2021 City Council meetings, Council accepted bids and proposals for the Lions Park pavilion, site improvements, phase one and phase two playgrounds and related improvements. At the June 21 meeting, Council called for a public hearing on tax abatement to be held on July 19, 2021 in preparation for considering the sale of tax abatement bonds to pay for the improvements. The tax abatement public hearing was held on July 19 at the regularly scheduled City Council meeting and no public comments were received. Council approved the tax abetment district and the resolution approving the property tax abatements thus allowing the City to issue tax abatement bonds to finance the Lions Park project and related public improvements. Staff expects the cost of the improvements to total $8,650,000. Staff has been working with Paul Steinman from Baker Tilly on a preliminary debt service schedule and staff is recommending the issuance of tax abatement bonds in the principal amount of $8,380,000. The preliminary debt service schedule shows an estimated net interest cost of 1.68% over a 20 year term with annual levy payments averaging $543,430. The remainder of the project construction funds will come from the reoffering premium that is generated when the bonds are sold. In the current bond market, bonds are sold at a premium and generate a reoffering premium; issuers cannot choose whether or not their bonds sell at a premium. These bonds offer a greater yield for the investor but they also come with higher coupons (the interest rate the issuer pays). When a premium is generated it shows in the sources and uses as another source of funds. The reoffering premium can be used to reduce the principal amount of the bond or the premium can be added to the project construction fund. Baker Tilly is projecting that the bond sale will bring a large enough reoffering premium which can be added to the project construction fund to fully fund the cost of the improvements at $8,650,000. If the reoffering premium comes in under or over the projected amount, the principal amount of the bond will need to be increased or decreased on the day of the sale. The decision on how to handle the reoffering premium needs to be made within an hour of the actual sale time on the day of the bond sale and thus staff is seeking Council authorization to accept the amount of reoffering premium that is necessary to fully fund the project construction fund at $8,650,000 on the morning of the sale. An official statement will be assembled and the bonds will be rated by Standard & Poors. Bids for the sale of the bonds will be received and tabulated at 11:00am on Tuesday, September 7, 2021. Consideration for award of the bonds will be by the City Council at its 7:00pm meeting on Tuesday, September 7, 2021. General Obligation Tax Abatement Bonds, Series 2021A Page 2 RECOMMENDATION Staff is recommending the City Council adopt the Resolution Providing for the Competitive Negotiated Sale of $8,380,000 General Obligation Tax Abatement Bonds, Series 2021A and authorize staff to accept the amount of reoffering premium that results in fully funding the project construction fund at $8,650,000 on the morning of the bond sale. ATTACHMENTS Pre‐Sale Summary Resolution City of Hugo, Minnesota Pre-Sale Summary for Issuance of Bonds $8,380,000 General Obligation Tax Abatement Bonds, Series 2021A The Council has under consideration the issuance of bonds to fund improvements to the City’s Lions Park and related public infrastructure projects (the “Bonds”). This document provides information relative to the proposed issuance. KEY EVENTS: The following summary schedule includes the timing of key events that will occur relative to the bond issuance: August 2, 2021 Council sets sale date and terms Week of August 23, 2021 Rating conference is conducted September 7, 2021, 11:00 a.m. Competitive proposals are received September 7, 2021, 7:00 p.m. Council considers award of the Bonds October 7, 2021 Proceeds are received RATING: An application will be made to S&P Global Ratings (S&P) for a rating on the Bonds. The City’s general obligation debt is currently rated “AA+” by S&P. THE MARKET: Performance of the tax-exempt market is often measured by the Bond Buyer’s Index (“BBI”) which measures the yield of high grade municipal bonds in the 20th year for general obligation bonds rated Aa2 by Moody’s or AA by S&P (the BBI 20-Bond GO Index) and the 30th year for revenue bonds rated A1 by Moody’s or A+ by S&P (the BBI 25-Bond Revenue Index). The following chart illustrates these two indices over the past five years: Study No.: 2083.114_ 1751915 July 28, 2021 1.5% 2.5% 3.5% 4.5% 5.5%Index RateBBI 20-Bond (GO) and 25-Bond (Revenue) Indices for 5 Years Ending 7/22/2021 Revenue GO 7/22/2021 Revenue: 2.39% GO: 2.03% Data Source: The Bond Buyer Page 2 PURPOSE: The Bonds are being issued for the purpose of funding improvements to the City’s Lions Park and related public infrastructure projects. AUTHORITY: Statutory Authority: The Bonds are being issued pursuant to Minnesota Statutes Chapter 475 and Sections 469.1812 through 469.1815. Statutory Requirements: Pursuant to Minnesota Statures, Sections 469.1812 through 469.1815, the City must specify the public benefit of the abatement, identify properties located within its jurisdiction whose value will equal the proposed amount of abatement and the term of the abatement, and further comply with public hearing requirements. A public hearing was held on July 19, 2021, at which time the statutory requirements for issuing tax abatement bonds were met. SECURITY AND SOURCE OF PAYMENT: The Bonds are general obligations of the City for which the City will pledge general ad valorem taxes. In addition, the City will pledge available tax abatement revenue derived from specified abated parcels within the City. The City will make the first levy in 2021 for collection in 2022. Thereafter, each year’s collection of taxes and tax abatement revenue will be used to make the August 1 interest payment due in the collection year and the February 1 principal and interest payment due the following year. STRUCTURING SUMMARY: The Bonds have been structured with a repayment term of 20 years with approximately level annual payments of debt service. The estimated interest rates applied in the structuring of the Bonds are based on current market conditions and assume they will receive premium pricing. Premium pricing results when coupon rates are assigned that exceed market yields, thereby requiring investors pay a re-offering premium (an amount above the face value of the bonds) to drive their yield back down to market levels, and results in additional proceeds for the issuer. The underwriter who purchases such an issue is compensated from the reoffering premium. Any premium received above the par amount of the Bonds, after paying the underwriters compensation, can be (i) used to reduce the issue size, (ii) used to fund additional project costs, or (iii) deposited into the issuer’s debt service fund. The City will determine the use of any excess premium generated on the day of sale. SCHEDULES ATTACHED: Schedules attached for the Bonds include: (i) sources and uses of funds, (ii) pricing summary, and (iii) debt service schedule, given the current market conditions. RISKS/SPECIAL CONSIDERATIONS: The outcome of this financing relies on the market conditions at the time of the sale. Any projections included herein are estimates based on current market conditions. The Bonds are structured with a reasonable estimate of premium pricing under current market conditions, however, it is just an estimate - there is no guarantee those conditions remain the same or the winning bidder prices the issue at the same estimated levels. Market conditions constantly change, and actual bids received on the day of sale are likely to be different than estimated. SALE TERMS AND MARKETING: Variability of Issue Size: A specific provision in the sale terms permits modifications to the issue size and/or maturity structure issue once the price and interest rates are set on the day of sale. Page 3 Prepayment Provisions: Bonds maturing on or after February 1, 2032 may be prepaid at a price of par plus accrued interest on or after February 1, 2031. Bank Qualification: The City does not expect to issue more than $10 million in tax-exempt obligations that count against the $10 million limit for 2021; therefore, the Bonds are designated as bank qualified. Premium Pricing: Any excess proceeds generated as original issue premium and/or unused discount will be used to reduce the principal amount of the borrowing. Bid Parameters: The Bonds are being marketed with a minimum bid requirement of par. Par bidding requires underwriters bid not less than 100% of the face amount of an issue and take their compensation from the additional proceeds generated as original issue premium. In order to stay within the authorized par amount, the premium cannot exceed 2.0% of the authorized amount of the Bonds; therefore, the Bonds are also being marketed with a not to exceed bid amount. Post Issuance POST ISSUANCE COMPLIANCE: The issuance of the Bonds will result in post-issuance compliance responsibilities. The responsibilities are in two primary areas: (i) compliance with federal arbitrage requirements and (ii) compliance with secondary disclosure requirements. Federal arbitrage requirements include a wide range of implications that have been taken into account as this issue has been structured. Post-issuance compliance responsibilities for this tax-exempt issue include both rebate and yield restriction provisions of the IRS Code. In general terms the arbitrage requirements control the earnings on unexpended bond proceeds, including investment earnings, moneys held for debt service payments (which are considered to be proceeds under the IRS regulations), and/or reserves. Under certain circumstances any “excess earnings” will need to be paid to the IRS to maintain the tax-exempt status of the Bonds. Any interest earnings on gross bond proceeds or debt service funds should not be spent until it has been determined based on actual facts that they are not “excess earnings” as defined by the IRS Code. The arbitrage rules provide for spend-down exceptions for proceeds that are spent within either a 6-month, 18-month or, for certain construction issues, a 24-month period each in accordance with certain spending criteria. Proceeds that qualify for an exception will be exempt from rebate. These exceptions are based on actual expenditures and not based on reasonable expectations, and expenditures, including any investment proceeds will have to meet the spending criteria to qualify for the exclusion. The Bonds are expected to meet the 24-month spending exception, which will require the City to comply with the following spend-down schedule: • 10% spent within 6 months • 45% spent within 12 months • 75% spent within 18 months • 100% spent within 24 months Page 4 Regardless of whether the issue qualifies for an exemption from the rebate provisions, yield restriction provisions will apply to Bond proceeds (including interest earnings) unspent after three years and the debt service fund throughout the term of the Bonds. These moneys should be monitored until the Bonds are retired. Secondary disclosure requirements result from an SEC requirement that underwriters provide ongoing disclosure information to investors. To meet this requirement, any prospective underwriter will require the City to commit to providing the information needed to comply under a continuing disclosure agreement. Baker Tilly MA currently provides both arbitrage and continuing disclosure services to the City. Baker Tilly MA will work with City staff to include the Bonds under the existing respective Agreement for Municipal Advisor Services. SUPPLEMENTAL INFORMATION AND BOND RECORD: Supplementary information will be available to staff including detailed terms and conditions of sale, comprehensive structuring schedules and information to assist in meeting post-issuance compliance responsibilities. Upon completion of the financing, a bond record will be provided that contains pertinent documents and final debt service calculations for the transaction. Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and controlled subsidiary of Baker Tilly US, LLP, an accounting firm. Baker Tilly US, LLP trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2021 Baker Tilly Municipal Advisors, LLC. Page 5 Preliminary $8,380,000 City of Hugo, Minnesota General Obligation Tax Abatement Bonds, Series 2021A Sources & Uses Dated 10/07/2021 | Delivered 10/07/2021 Sources Of Funds Par Amount of Bonds..............................................................................................................................................$8,380,000.00 Reoffering Premium.................................................................................................................................................421,310.35 Total Sources........................................................................................................................................................$8,801,310.35 Uses Of Funds Deposit to Project Construction Fund......................................................................................................................$8,650,000.00 Total Underwriter's Discount (1.100%)..................................................................................................................92,180.00 Costs of Issuance...................................................................................................................................................57,330.00 Rounding Amount....................................................................................................................................................1,800.35 Total Uses..............................................................................................................................................................$8,801,310.35 2021A GO Tax Abatement Bo | SINGLE PURPOSE | 7/23/2021 | 9:39 AM Page 6 Preliminary $8,380,000 City of Hugo, Minnesota General Obligation Tax Abatement Bonds, Series 2021A Pricing Summary Maturity Type of Bond Coupon Yield Maturity Value Price YTM Call Date Call Price Dollar Price 02/01/2023 Serial Coupon 3.000%0.350%270,000.00 103.477% ---279,387.90 02/01/2024 Serial Coupon 3.000%0.400%335,000.00 105.989% ---355,063.15 02/01/2025 Serial Coupon 3.000%0.550%345,000.00 108.040% ---372,738.00 02/01/2026 Serial Coupon 3.000%0.700%360,000.00 109.762% ---395,143.20 02/01/2027 Serial Coupon 3.000%0.750%370,000.00 111.704% ---413,304.80 02/01/2028 Serial Coupon 3.000%0.850%380,000.00 113.194% ---430,137.20 02/01/2029 Serial Coupon 3.000%0.100%390,000.00 121.135% ---472,426.50 02/01/2030 Serial Coupon 3.000%1.100%400,000.00 115.059% ---460,236.00 02/01/2031 Serial Coupon 2.000%1.200%415,000.00 107.031% ---444,178.65 02/01/2032 Serial Coupon 2.000%1.350%425,000.00 105.671%c 1.407%02/01/2031 100.000%449,101.75 02/01/2033 Serial Coupon 2.000%1.450%430,000.00 104.776%c 1.538%02/01/2031 100.000%450,536.80 02/01/2034 Serial Coupon 2.000%1.500%440,000.00 104.331%c 1.611%02/01/2031 100.000%459,056.40 02/01/2035 Serial Coupon 1.650%1.650%450,000.00 100.000% ---450,000.00 02/01/2036 Serial Coupon 1.700%1.700%455,000.00 100.000% ---455,000.00 02/01/2037 Serial Coupon 1.750%1.750%465,000.00 100.000% ---465,000.00 02/01/2038 Serial Coupon 1.775%1.775%470,000.00 100.000% ---470,000.00 02/01/2039 Serial Coupon 1.800%1.800%480,000.00 100.000% ---480,000.00 02/01/2040 Serial Coupon 1.850%1.850%490,000.00 100.000% ---490,000.00 02/01/2041 Serial Coupon 1.900%1.900%500,000.00 100.000% ---500,000.00 02/01/2042 Serial Coupon 1.925%1.925%510,000.00 100.000% ---510,000.00 Total ---$8,380,000.00 -----$8,801,310.35 Bid Information Par Amount of Bonds.......................................................................................................................................................$8,380,000.00 Reoffering Premium or (Discount)....................................................................................................................................421,310.35 Gross Production..............................................................................................................................................................$8,801,310.35 Total Underwriter's Discount (1.100%)...........................................................................................................................$(92,180.00) Bid (103.928%).................................................................................................................................................................8,709,130.35 Total Purchase Price.........................................................................................................................................................$8,709,130.35 Bond Year Dollars............................................................................................................................................................$97,518.67 Average Life.....................................................................................................................................................................11.637 Years Average Coupon..............................................................................................................................................................2.0212086% Net Interest Cost (NIC)......................................................................................................................................................1.6837036% True Interest Cost (TIC)....................................................................................................................................................1.6524395% 2021A GO Tax Abatement Bo | SINGLE PURPOSE | 7/23/2021 | 9:39 AM Page 7 Preliminary $8,380,000 City of Hugo, Minnesota General Obligation Tax Abatement Bonds, Series 2021A Debt Service Schedule Date Principal Coupon Interest Total P+I 105% Levy 02/01/2022 ----- 02/01/2023 270,000.00 3.000%248,010.63 518,010.63 543,911.16 02/01/2024 335,000.00 3.000%180,262.50 515,262.50 541,025.63 02/01/2025 345,000.00 3.000%170,212.50 515,212.50 540,973.13 02/01/2026 360,000.00 3.000%159,862.50 519,862.50 545,855.63 02/01/2027 370,000.00 3.000%149,062.50 519,062.50 545,015.63 02/01/2028 380,000.00 3.000%137,962.50 517,962.50 543,860.63 02/01/2029 390,000.00 3.000%126,562.50 516,562.50 542,390.63 02/01/2030 400,000.00 3.000%114,862.50 514,862.50 540,605.63 02/01/2031 415,000.00 2.000%102,862.50 517,862.50 543,755.63 02/01/2032 425,000.00 2.000%94,562.50 519,562.50 545,540.63 02/01/2033 430,000.00 2.000%86,062.50 516,062.50 541,865.63 02/01/2034 440,000.00 2.000%77,462.50 517,462.50 543,335.63 02/01/2035 450,000.00 1.650%68,662.50 518,662.50 544,595.63 02/01/2036 455,000.00 1.700%61,237.50 516,237.50 542,049.38 02/01/2037 465,000.00 1.750%53,502.50 518,502.50 544,427.63 02/01/2038 470,000.00 1.775%45,365.00 515,365.00 541,133.25 02/01/2039 480,000.00 1.800%37,022.50 517,022.50 542,873.63 02/01/2040 490,000.00 1.850%28,382.50 518,382.50 544,301.63 02/01/2041 500,000.00 1.900%19,317.50 519,317.50 545,283.38 02/01/2042 510,000.00 1.925%9,817.50 519,817.50 545,808.38 Total $8,380,000.00 -$1,971,055.63 $10,351,055.63 $10,868,608.41 SIGNIFICANT DATES Dated........................................................................................................................................................................10/07/2021 Delivery Date............................................................................................................................................................10/07/2021 First Coupon Date....................................................................................................................................................8/01/2022 Yield Statistics Bond Year Dollars....................................................................................................................................................$97,518.67 Average Life............................................................................................................................................................11.637 Years Average Coupon......................................................................................................................................................2.0212086% Net Interest Cost (NIC).............................................................................................................................................1.6837036% True Interest Cost (TIC)............................................................................................................................................1.6524395% Bond Yield for Arbitrage Purposes..........................................................................................................................1.5373519% All Inclusive Cost (AIC)............................................................................................................................................1.7176818% IRS Form 8038 Net Interest Cost......................................................................................................................................................1.5426520% Weighted Average Maturity.....................................................................................................................................11.414 Years Interest rates are estimates. Changes in rates may cause significant alterations to this schedule. The actual underwriter's discount bid may also vary. 2021A GO Tax Abatement Bo | SINGLE PURPOSE | 7/23/2021 | 9:39 AM 13569209v1 1 EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL CITY OF HUGO, MINNESOTA HELD: AUGUST 2, 2021 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Hugo, Washington County, Minnesota, was duly held at the City Hall in said City on August 2, 2021, at 7:00 P.M. for the purpose in part of authorizing the competitive negotiated sale of the $8,380,000 General Obligation Tax Abatement Bonds, Series 2021A. The following members were present: and the following were absent: Member ________________ introduced the following resolution, the reading of which was dispensed with by unanimous consent, and moved its adoption: RESOLUTION NO. __________ RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $8,380,000 GENERAL OBLIGATION TAX ABATEMENT BONDS, SERIES 2021A A. WHEREAS, the City Council of the City of Hugo, Minnesota (the "City"), has heretofore determined that it is necessary and expedient to issue its $8,380,000 General Obligation Tax Abatement Bonds, Series 2021A (the "Bonds") to finance public improvements to the Lions Park and related public improvements in the City; and B. WHEREAS, the City has retained Baker Tilly Municipal Advisors, LLC, in Saint Paul, Minnesota ("Baker Tilly MA"), as its independent municipal adviser and is therefore authorized to sell these obligations by a competitive negotiated sale in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hugo, Minnesota, as follows: 1. Authorization. The City Council hereby authorizes Baker Tilly MA to solicit proposals for the competitive negotiated sale of the Bonds. 2. Meeting; Proposal Opening. This City Council shall meet at the time and place specified in the Terms of Proposal attached hereto as Exhibit A for the purpose of considering sealed proposals for, and awarding the sale of, the Bonds. The Administrator or designee, shall open proposals at the time and place specified in such Terms of Proposal. 3. Terms of Proposal. The terms and conditions of the Bonds and the negotiation thereof are fully set forth in the "Terms of Proposal" attached hereto as Exhibit A and hereby approved and made a part hereof. 13569209v1 2 4. Official Statement. In connection with said competitive negotiated sale, the Administrator and other officers or employees of the City are hereby authorized to cooperate with Baker Tilly MA and participate in the preparation of an official statement for the Bonds, and to execute and deliver it on behalf of the City upon its completion. This resolution shall become effective immediately upon its passage and without publication. Passed this 2nd day of August, 2021. _______________________________________ /s/ Tom Weidt Mayor _______________________________ ATTEST: /s/ Michele Lindau City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member _______________ and, after full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. 13569209v1 3 STATE OF MINNESOTA COUNTY WASHINGTON CITY OF HUGO I, the undersigned, being the duly qualified and acting City Clerk of the City of Hugo, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City, duly called and held on the date therein indicated, insofar as such minutes relate to the City's $8,380,000 General Obligation Tax Abatement Bonds, Series 2021A. WITNESS my hand on _______________________, 2021. __________________________________ City Clerk 13569209v1 A-1 EXHIBIT A THE CITY HAS AUTHORIZED BAKER TILLY MUNICIPAL ADVISORS, LLC TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $8,380,000* CITY OF HUGO, MINNESOTA GENERAL OBLIGATION TAX ABATEMENT BONDS, SERIES 2021A (BOOK ENTRY ONLY) Proposals for the above-referenced obligations (the “Bonds”) will be received by the City of Hugo, Minnesota (the “City”) on Tuesday, September 7, 2021 (the “Sale Date”) until 11:00 A.M., Central Time (the “Sale Time”) at the offices of Baker Tilly Municipal Advisors, LLC (“Baker Tilly MA”), 225 South 6th Street, Suite 2300, Minneapolis, Minnesota, 55402, after which time proposals will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at its meeting commencing at 7:00 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Baker Tilly MA will assume no liability for the inability of a bidder or its proposal to reach Baker Tilly MA prior to the Sale Time, and neither the City nor Baker Tilly MA shall be responsible for any failure, misdirection or error in the means of transmission selected by any bidder. All bidders are advised that each proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds regardless of the manner in which the proposal is submitted. (a) Sealed Bidding. Completed, signed proposals may be submitted to Baker Tilly MA by email to bondservice@bakertilly.com or by fax (651) 223-3046, and must be received prior to the Sale Time. OR (b) Electronic Bidding. Proposals may also be received via PARITY®. For purposes of the electronic bidding process, the time as maintained by PARITY® shall constitute the official time with respect to all proposals submitted to PARITY®. Each bidder shall be solely responsible for making necessary arrangements to access PARITY® for purposes of submitting its electronic proposal in a timely manner and in compliance with the requirements of the Terms of Proposal. Neither the City, its agents, nor PARITY® shall have any duty or obligation to undertake registration to bid for any prospective bidder or to provide or ensure electronic access to any qualified prospective bidder, and neither the City, its agents, nor PARITY® shall be responsible for a bidder’s failure to register to bid or for any failure in the proper operation of, or have any liability for any delays or interruptions of or any damages caused by the services of PARITY®. 13569209v1 2 The City is using the services of PARITY® solely as a communication mechanism to conduct the electronic bidding for the Bonds, and PARITY® is not an agent of the City. If any provisions of this Terms of Proposal conflict with information provided by PARITY®, this Terms of Proposal shall control. Further information about PARITY®, including any fee charged, may be obtained from: PARITY®, 1359 Broadway, 2nd Floor, New York, New York 10018 Customer Support: (212) 849-5000 DETAILS OF THE BONDS The Bonds will be dated as of the date of delivery and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 2022. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will mature February 1 in the years and amounts* as follows: 2023 $270,000 2027 $370,000 2031 $415,000 2035 $450,000 2039 $480,000 2024 $335,000 2028 $380,000 2032 $425,000 2036 $455,000 2040 $490,000 2025 $345,000 2029 $390,000 2033 $430,000 2037 $465,000 2041 $500,000 2026 $360,000 2030 $400,000 2034 $440,000 2038 $470,000 2042 $510,000 * The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Bonds or the amount of any maturity or maturities in multiples of $5,000. In the event the amount of any maturity is modified, the aggregate purchase price will be adjusted to result in the same gross spread per $1,000 of Bonds as that of the original proposal. Gross spread for this purpose is the differential between the price paid to the City for the new issue and the prices at which the proposal indicates the securities will be initially offered to the investing public. Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus accrued interest to the date of redemption scheduled to conform to the maturity schedule set forth above. In order to designate term bonds, the proposal must specify “Years of Term Maturities” in the spaces provided on the proposal form. BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company (“DTC”), New York, New York, which will act as securities depository for the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The lowest bidder (the “Purchaser”), as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. 13569209v1 3 REGISTRAR The City will name the registrar which shall be subject to applicable regulations of the Securities and Exchange Commission. The City will pay for the services of the registrar. OPTIONAL REDEMPTION The City may elect on February 1, 2031, and on any day thereafter, to redeem Bonds due on or after February 1, 2032. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be redeemed. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All redemptions shall be at a price of par plus accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition, the City will pledge available tax abatement revenues for repayment of a portion of the Bonds. The proceeds of the Bonds will be used to finance various park and related public improvements. BANK QUALIFIED TAX-EXEMPT OBLIGATIONS The City will designate the Bonds as qualified tax-exempt obligations for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. BIDDING PARAMETERS Proposals shall be for not less than $8,380,000 (Par) or more than $8,966,600 (107%) plus accrued interest, if any, on the total principal amount of the Bonds. No proposal can be withdrawn or amended after the time set for receiving proposals on the Sale Date unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 1/100 or 1/8 of 1%. The initial price to the public for each maturity as stated on the proposal must be 98.0% or greater. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. ESTABLISHMENT OF ISSUE PRICE In order to provide the City with information necessary for compliance with Section 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder (collectively, the “Code”), the Purchaser will be required to assist the City in establishing the issue price of the Bonds and shall complete, execute, and deliver to the City prior to the closing date, a written certification in a form acceptable to the Purchaser, the City, and Bond Counsel (the “Issue Price Certificate”) containing the following for each maturity of the Bonds (and, if different interest rates apply within a maturity, to each separate CUSIP number within that maturity): (i) the interest rate; (ii) the reasonably expected initial offering 13569209v1 4 price to the “public” (as said term is defined in Treasury Regulation Section 1.148-1(f) (the “Regulation”)) or the sale price; and (iii) pricing wires or equivalent communications supporting such offering or sale price. Any action to be taken or documentation to be received by the City pursuant hereto may be taken or received on behalf of the City by Baker Tilly MA. The City intends that the sale of the Bonds pursuant to this Terms of Proposal shall constitute a “competitive sale” as defined in the Regulation based on the following: (i) the City shall cause this Terms of Proposal to be disseminated to potential bidders in a manner that is reasonably designed to reach potential bidders; (ii) all bidders shall have an equal opportunity to submit a bid; (iii) the City reasonably expects that it will receive bids from at least three bidders that have established industry reputations for underwriting municipal bonds such as the Bonds; and (iv) the City anticipates awarding the sale of the Bonds to the bidder who provides a proposal with the lowest true interest cost, as set forth in this Terms of Proposal (See “AWARD” herein). Any bid submitted pursuant to this Terms of Proposal shall be considered a firm offer for the purchase of the Bonds, as specified in the proposal. The Purchaser shall constitute an “underwriter” as said term is defined in the Regulation. By submitting its proposal, the Purchaser confirms that it shall require any agreement among underwriters, a selling group agreement, or other agreement to which it is a party relating to the initial sale of the Bonds, to include provisions requiring compliance with the provisions of the Code and the Regulation regarding the initial sale of the Bonds. If all of the requirements of a “competitive sale” are not satisfied, the City shall advise the Purchaser of such fact prior to the time of award of the sale of the Bonds to the Purchaser. In such event, any proposal submitted will not be subject to cancellation or withdrawal. Within twenty-four (24) hours of the notice of award of the sale of the Bonds, the Purchaser shall advise the City and Baker Tilly MA if 10% of any maturity of the Bonds (and, if different interest rates apply within a maturity, to each separate CUSIP number within that maturity) has been sold to the public and the price at which it was sold. The City will treat such sale price as the “issue price” for such maturity, applied on a maturity-by-maturity basis. The City will not require the Purchaser to comply with that portion of the Regulation commonly described as the “hold-the-offering-price” requirement for the remaining maturities, but the Purchaser may elect such option. If the Purchaser exercises such option, the City will apply the initial offering price to the public provided in the proposal as the issue price for such maturities. If the Purchaser does not exercise that option, it shall thereafter promptly provide the City and Baker Tilly MA the prices at which 10% of such maturities are sold to the public; provided such determination shall be made and the City and Baker Tilly MA notified of such prices whether or not the closing date has occurred, until the 10% test has been satisfied as to each maturity of the Bonds or until all of the Bonds of a maturity have been sold. GOOD FAITH DEPOSIT To have its proposal considered for award, the Purchaser is required to submit a good faith deposit via wire transfer to the City in the amount of $83,800 (the “Deposit”) no later than 2:00 P.M., Central Time on the Sale Date. The Purchaser shall be solely responsible for the timely 13569209v1 5 delivery of its Deposit, and neither the City nor Baker Tilly MA have any liability for delays in the receipt of the Deposit. If the Deposit is not received by the specified time, the City may, at its sole discretion, reject the proposal of the lowest bidder, direct the second lowest bidder to submit a Deposit, and thereafter award the sale to such bidder. A Deposit will be considered timely delivered to the City upon submission of a federal wire reference number by the specified time. Wire transfer instructions will be available from Baker Tilly MA following the receipt and tabulation of proposals. The successful bidder must send an e-mail including the following information: (i) the federal reference number and time released; (ii) the amount of the wire transfer; and (iii) the issue to which it applies. Once an award has been made, the Deposit received from the Purchaser will be retained by the City and no interest will accrue to the Purchaser. The amount of the Deposit will be deducted at settlement from the purchase price. In the event the Purchaser fails to comply with the accepted proposal, said amount will be retained by the City. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis calculated on the proposal prior to any adjustment made by the City. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and (iii) reject any proposal that the City determines to have failed to comply with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION The City has not applied for or pre-approved a commitment for any policy of municipal bond insurance with respect to the Bonds. If the Bonds qualify for municipal bond insurance and a bidder desires to purchase a policy, such indication, the maturities to be insured, and the name of the desired insurer must be set forth on the bidder’s proposal. The City specifically reserves the right to reject any bid specifying municipal bond insurance, even though such bid may result in the lowest TIC to the City. All costs associated with the issuance and administration of such policy and associated ratings and expenses (other than any independent rating requested by the City) shall be paid by the successful bidder. Failure of the municipal bond insurer to issue the policy after the award of the Bonds shall not constitute cause for failure or refusal by the successful bidder to accept delivery of the Bonds. CUSIP NUMBERS If the Bonds qualify for the assignment of CUSIP numbers such numbers will be printed on the Bonds; however, neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the Purchaser to accept delivery of the Bonds. Baker Tilly MA will apply for CUSIP numbers pursuant to Rule G-34 implemented by the Municipal Securities Rulemaking Board. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the Purchaser. 13569209v1 6 SETTLEMENT On or about October 7, 2021, the Bonds will be delivered without cost to the Purchaser through DTC in New York, New York. Delivery will be subject to receipt by the Purchaser of an approving legal opinion of Taft, Stettinius & Hollister LLP, of Minneapolis, Minnesota, and of customary closing papers, including a no-litigation certificate. On the date of settlement, payment for the Bonds shall be made in federal, or equivalent, funds that shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Unless compliance with the terms of payment for the Bonds has been made impossible by action of the City, or its agents, the Purchaser shall be liable to the City for any loss suffered by the City by reason of the Purchaser's non-compliance with said terms for payment. CONTINUING DISCLOSURE On the date of actual issuance and delivery of the Bonds, the City will execute and deliver a Continuing Disclosure Undertaking (the “Undertaking”) whereunder the City will covenant for the benefit of the owners of the Bonds to provide certain financial and other information about the City and notices of certain occurrences to information repositories as specified in and required by SEC Rule 15c2-12(b)(5). OFFICIAL STATEMENT The City has authorized the preparation of a Preliminary Official Statement containing pertinent information relative to the Bonds, and said Preliminary Official Statement has been deemed final by the City as of the date thereof within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For an electronic copy of the Preliminary Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Municipal Advisor to the City, Baker Tilly Municipal Advisors, LLC, by telephone (651) 223-3000, or by email bondservice@bakertilly.com. The Preliminary Official Statement will also be made available at https://connect.bakertilly.com/bond-sales-calendar. A Final Official Statement (as that term is defined in Rule 15c2-12) will be prepared, specifying the maturity dates, principal amounts, and interest rates of the Bonds, together with any other information required by law. By awarding the Bonds to the Purchaser, the City agrees that, no more than seven business days after the date of such award, it shall provide to the Purchaser an electronic copy of the Final Official Statement. The City designates the Purchaser as its agent for purposes of distributing the Final Official Statement to each syndicate member, if applicable. The Purchaser agrees that if its proposal is accepted by the City, (i) it shall accept designation and (ii) it shall enter into a contractual relationship with its syndicate members for purposes of assuring the receipt of the Final Official Statement by each such syndicate member. Dated August 2, 2021 BY ORDER OF THE CITY COUNCIL /s/ Michele Lindau City Clerk CITY OF HUGO RESOLUTION 2021-XX RESOLUTION APPROVING WATERING RESTRICTIONS AND REGULATIONS PERTAINING TO THE CONSERVATION OF WATER FOR PROPERTIES WITHIN THE CITY OF HUGO. WHEREAS, the City Council of the City of Hugo has determined that there is a need to reduce water usage throughout the City in order to reduce the environmental impact the City has on its long term water supply; and, WHEREAS, the City Council is authorized to adopt regulations pertaining to the conservation of water by Resolution; and, WHEREAS, unrestricted outdoor irrigation with municipal water could create a shortage of water, threatening the City. WHEREAS, the City of Hugo strives to “reduce, reuse, and replenish” its water resources by conserving water that is pumped from the ground and responsibly manage the City’s municipal infrastructure. NOW, THEREFORE, be it resolved by the City Council of the City of Hugo, Washington County, Minnesota, that it should and hereby does approve the following: 1. Effective as of August 9, 2021, the City Council hereby adopts restrictions on outdoor irrigation of properties using the municipal water supply to irrigate lawns, trees, or other vegetation. 2. Properties and owners within the City that use municipal water to irrigate, may only irri gate or sprinkle lawns on an odd-even basis. 3. Specifically, property addresses that end in an odd number may only water on odd calendar days and property addresses that end in an even number may only water on even calendar days. 4. In addition to irrigation on an odd-even basis, it shall be prohibited to irrigate or sprinkle lawns, trees, or other vegetation using the municipal water supply between the hours of 6:00 AM and 9:00 PM. 5. Flowers, landscaping beds, and vegetable gardens may be watered with a hand-held hose or watering can as needed. 6. Properties with new sod are exempt from irrigation restrictions for the first 14 days of placement. 7. All properties within the City are prohibited from augmenting wetlands and other natural water resources with water from the municipal water supply and individual wells. Resolution 2021-XX Page 2 8. Violations to this Resolution shall be subject to a written warning on the first offense and a $100.00 fine for any subsequent offense. Fines shall be added to the property owner’s next water bill. Continued violation may result in discontinuance of water services. 9. The City shall address alleged offenses of this Resolution pursuant to its system for handling administrative citations and civil penalties for non- licenses and non-permittees. BE IT FURTHER RESOLVED that the restrictions and fees within this Resolution replaces those listed in Resolutions 2001-10 and 2001-11. ADOPTED by the City Council this 2nd day of August 2021. _______________________________ Tom Weidt, Mayor ATTEST: __________________________________ Michele Lindau, City Clerk RESOLUTION 2001- 10 CITY OF HUGO WASHINGTON COUNTY, MINNESOTA A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF HUGO, WASHINGTON COUNTY, MINNESOTA, ADOPTING RESTRICTIONS ON LAWN SPRINKLING WHEREAS, the City Council of the City of Hugo has determined that a shortage of water supply could threaten the City such as by reducing the amount of available water for critical City services such as firefighting; and, WHEREAS, the City Council is authorized to adopt regulations pertaining to the conservation of water by Resolution; and, WHEREAS, unrestricted watering of lawns by sprinkling or other means could create a shortage of water threatening the City. NOW, THEREFORE, be it resolved by the City Council of the City of Hugo, Washington County, Minnesota, as follows: 1. The City Council hereby adopts restrictions on watering or sprinkling of lawns, trees or other vegetation on property using the municipal water supply as set forth herein. 2. Effective as of May 15, 2001, properties and owners within the City using water from the City of Hugo's municipal water system, may only water lawns, trees or other vegetation on an odd -even basis. 3. Specifically, property addresses which end in an odd number may only water lawns, trees or other vegetation on odd calendar days. Properties having addresses which end in an even number may water only on even calendar days. 4. It shall be unlawful for a property owner who receives water from the municipal water system to permit watering of lawns, trees or other vegetation on the property on even calendar days if the property address ends with an odd number and it shall be unlawful to permit such activity if the property address ends in an even number on an odd calendar day. 5. The City shall address alleged offenses of this Resolution pursuant to its system for handling administrative citations and civil penalties for non -licensees and non -permittees. WHEREUPON, a vote being taken upon the motion, the following members voted in favor: Mike Granger, Chuck Haas, Becky Petryk, Frank Puleo, and Fran Miron the following voted against: NONE 4 6. WHEREU ON, said motion was declared duly passed and adopted by the City Council this day of 2001. Fran , Mayor ATTEST: Mary ger, City Clerlf RESOLUTION 2001- 11 CITY OF HUGO WASHINGTON COUNTY, MINNESOTA A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF HUGO, WASHINGTON COUNTY, MINNESOTA, ESTABLISHING VARIOUS ADMINISTRATIVE FINES AND PENALTIES IN ACCORDANCE WITH HUGO CITY CODE CHAPTER 340. WHEREAS, the City Council of the City of Hugo has adopted an Ordinance establishing a procedure for adjudicating administrative offenses and providing for a schedule of offenses and administrative penalties; and,- WHEREAS, nd, WHEREAS, said ordinance authorizes the City Council from time to time to identify administrative offenses and establish penalties for such offenses. NOW, THEREFORE, be it resolved that the City Council of the City of Hugo, Washington County, Minnesota, hereby establishes administrative penalties as listed below: OFFENSE 1 OFFENSE SUBSEQUENT OFFENSES WITHIN ONE YEAR Watering lawn / odd -even violation 25.00 50.00 BE IT FURTHER RESOLVED that the fees in this Resolution shall be effective as of May 15, 2001, unless otherwise stated in the Resolution. WHEREUPON, a vote being taken upon the motion, the following members voted in favor: Mike Granger, Chuck Haas, Becky Petryk, Frank Puleo, Fran Miron the following voted against: NONE _; WHEREUPON, said motion was declared duly passed and adopted by the City Council this 2nd day of April , 2001. F&AwKMayof ATTEST: 4/z Mary & Creager, City Cl 17/29/2021 3:15 PMHugo City CouncilSu Mo Tu We Th Fr Sa12345678 9 10 11 12 13 1415 16 17 18 19 20 2122 23 24 25 26 27 2829 30 31August 2021Su Mo Tu We Th Fr Sa123456789101112 13 14 15 16 17 1819 20 21 22 23 24 2526 27 28 29 30September 2021August 2021Aug 12345677:00pm Council Meets5:00pm Natl Night Out (Time and Place TBD) - Hugo City Council8910111213146:30pm BOZA7:00pm Planning Comm151617181920217:00pm Council Meets5:30pm EDA6:30pm Hist. Comm.7:00pm Parks Comm5:00pm Budget Workshop (Council Chambers) - Hugo City Council222324252627285:00pm Burger Night (Legion)6:30pm BOZA7:00pm Planning Comm5:00pm Colvard Retirement Party (Hanifl)293031Sep 1234SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY 27/29/2021 3:15 PMHugo City CouncilSu Mo Tu We Th Fr Sa123456789101112 13 14 15 16 17 1819 20 21 22 23 24 2526 27 28 29 30September 2021Su Mo Tu We Th Fr Sa12345678910 11 12 13 14 15 1617 18 19 20 21 22 2324 25 26 27 28 29 3031October 2021September 2021Aug 293031Sep 12345678910117:00pm Council Meets6:30pm BOZA7:00pm Planning Comm121314151617187:00pm Parks Comm192021222324257:00pm Council Meets5:30pm EDA6:30pm Hist. Comm.6:30pm BOZA7:00pm Planning Comm2627282930Oct 125:00pm Burger Night (Legion)SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY