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HomeMy WebLinkAbout2022.07.18 CC Minutes Call to Order Mayor Weidt called the meeting to order at 7:00 p.m. COUNCIL PRESENT: Klein, Miron, Petryk (ZOOM), Strub, Weidt COUNCIL ABSENT: None OTHERS PRESENT: City Administrator Bryan Bear, City Attorney Dave Snyder, City Engineer Mark Erichson, Community Development Director Rachel Juba, City Clerk Michele Lindau Approve Minutes for the July 5, 2022, City Council Meeting Klein made motion, Miron seconded, to approve the minutes for the regular Council meeting held on July 5, 2022, as presented. All Ayes. Motion carried. Approval of Agenda Weidt made motion, Klein seconded, to approve the agenda as presented. All Ayes. Motion carried Presentation of 2021 Audit Report - Jill Schultz, Smith Schafer & Associates Jill Schultz from the independent accounting firm of Smith Schafer & Associates presented a recap of the audit of City finances for the 2021 fiscal year. Jill talked about the six areas that are required to be tested by the State of Minnesota. Jill reviewed revenues showing the largest came from property taxes and the next being intergovernmental funds, which showed an increase due to COVID money. She next reviewed expenditures. General government expenditures, which were 23% of total expenses, decreased slightly from 2020 due to COVID related expenses that incurred in 2020. Public safety expenditures increased 9% from last year due likely to increases in fire protection and inspection increases services. Highway and streets expenditures increased 18% due to more money spent on materials for repairs and maintenances. Park maintenance and programming expenditures were up 6%. Jill explained general fund reserves were 65% of general fund expenditures. The state auditor recommends 35-50%, but Hugo looks at spending for next the year, and it is City policy to reserve 50% of the following year’s budgeted expenditures. She explained the purpose and benefits of those reserves. Minutes HUGO CITY COUNCIL MEETING HUGO CITY HALL MONDAY, JULY 18, 2022 – 7 P.M. Hugo City Council Meeting Minutes for July 18, 2022 Page 2 of 5 She reviewed Hugo’s debt services requirements over the next five years, which had risen to almost one million dollars a year for the three outstanding bonds. Capital project fund expenditures rose significantly due mainly to the construction of the Lions Park Pavilion and the improvements to the park and the new Public Works facility. Jill talked about the water and sewer fund, which is supported by ratepayers, saying the funds show net income every year. Jill concluded by saying Hugo received an unmodified audit opinion and no MN legal compliance exceptions. 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 on August 13, 2022 3. Approve Temporary Liquor License for the Lions for Wilson Tool Company Picnic August 13, 2022 4. Approve the Policy for Donation of Surplus Equipment to a Nonprofit Organization 5. Identify and Approve Expired Fire Department Gear as Surplus Equipment Eligible for Donation 6. Approve Purchase Agreement for 14716 Fondant Avenue North 7. Approve Estimate from Russel Williams for Installation of Holiday Lights 8. Approve Max Gort as New Associate Planner 9. Approve Facility Rental Policy 10. Approve Pay Request No.11 to Shreiber Mullany for Lions Park Building 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 on August 13, 2022 Wilson Tool had applied for a Special Event Permit to hold their annual company picnic on Saturday, August 13, 2022, 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 900 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. Hugo City Council Meeting Minutes for July 18, 2022 Page 3 of 5 Approve Temporary Liquor License for the Lions for Wilson Tool Company Picnic August 13, 2022 The Hugo Lions Club had applied for a temporary on-sale liquor license to serve alcohol at the Wilson Tool company picnic on Saturday, August 13, 2022. Adoption of the Consent Agenda approved the temporary on-sale liquor license for the Hugo Lions Club. Approve the Policy for Donation of Surplus Equipment to a Nonprofit Organization In 2016, the Minnesota Legislature passed a new law allowing local governments to donate surplus equipment to nonprofit organizations. Before a city was allowed to donate surplus equipment, State Statutes required the city to adopt a policy on how it would determine what qualifies as surplus equipment eligible for donation and how it would select nonprofit organizations eligible to receive donations. Staff had assembled a policy that established procedures for identifying surplus equipment and for the donation of surplus equipment to nonprofit organizations. Adoption of the Consent Agenda approved the Policy for Donation of Surplus Equipment to a Nonprofit Organization. Identify and Approve Expired Fire Department Gear as Surplus Equipment Eligible for Donation The Hugo Fire Department had 23 sets of turnout gear (coat and pant) and 12 helmets that no longer met industry standards for fire departments in the United States and thus had no resale value. The National Fire Protection Agency standards required the above-mentioned gear to be retired, and neither the Hugo Fire Department nor any other City Department had any use for the expired gear. The Fire Department wanted to be able to donate their expired gear to a nonprofit that was able to send the turnout gear and helmets to impoverished countries around the world where it would be used by firefighters who could not afford turnout gear and in countries that did not have NFPA standards. In order for the Hugo Fire Department to put their expired gear out for donation, City Council needed to declare the gear surplus. Adoption of the Consent Agenda identified and approved 23 sets of expired turnout gear and 12 expired helmets as surplus equipment eligible for donation. Approve Purchase Agreement for 14716 Fondant Avenue North The City had been purchasing property in the downtown area from willing sellers since 1999 for economic development purposes as a way to facilitate redevelopment in the downtown. Staff was notified by the property owner at 14701 Fondant Avenue North that they were planning on selling their property, which contained a duplex with existing renters. This property, if purchased, would be added to contiguous land the City already owns. Staff had reviewed the assessed value by Washington County ($340,300), comparable sales, and trends in percent value change over the last few years in the area. With that, staff worked on an offer, which had been accepted. Staff drafted the purchase agreement contingent on City Council approval. Adoption of the Consent Agenda approved the purchase agreement for the property located at 14716 Fondant Avenue North with a purchase price of $365,000. Hugo City Council Meeting Minutes for July 18, 2022 Page 4 of 5 Approve Estimate from Russel Williams for Installation of Holiday Lights An estimate had been received for lighting during the 2022 holiday season to be provided, installed and removed at City Hall, the new park building, along Highway 61, and in the park. Adoption of the Consent Agenda approved the estimate from Russel Williams in the amount of $10,500 for holiday lighting in 2022. Approve Max Gort as New Associate Planner At its June 6, 2022, meeting, the City Council approved the advertisement for a new Associate Planner position in the Community Development Department. Recently, staff interviewed eight applications for the position and selected Max Gort to fill the position. This position would be Pay Grade 6, Minimum, in the 2022 salary matrix. Adoption of the Consent Agenda approved the hiring of Max Gort as the new Associate Planner with the start date of August 8, 2022. Approve Facility Rental Policy Staff had reviewed the Policy Regulating the Use of the City of Hugo Public Facilities that was last updated in 2012. Changes were drafted based on current operations and the new facilities that would be available for public use. The policy would continue to allow non-profits, based on City approval, to use facilities regularly. Requirements related to the use of alcohol, clean up, and gambling were updated. Staff anticipated future Council discussion on rental fees, recreation/ scheduling software, and staffing impacts. Adoption of the Consent Agenda approved the draft Policy Regulating the Use of the City of Hugo Public Facilities. Approve Pay Request No.11 to Shreiber Mullany for Lions Park Building Schreiber Mullaney had submitted Pay Request No. 11 for the new Pavilion in Lions Park in the amount of $28,789.85. 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 25, 2022 with a 5% retainage applied. The total retainage being held to date was $154,571.86. Adoption of the Consent Agenda approved payment in the amount of $28,789.85 to Schreiber Mullaney Construction for the construction of the City of Hugo Lions Park Pavilion. Discussion on Lions Park Signage Package At the Council meeting of July 5, 2022, Council reviewed the signs at Lions Park. Council discussed the impact of volunteers, including the Lions Club, to the Hugo community. A motion was made to name the park “Hugo Volunteer Park” and the building “Peder Pedersen Pavilion”. Staff was directed to come back to Council with a sign package for final approval. City Administrator Bryan Bear explained the signage options had been drafted. He had met with Pete Pedersen who indicated his preference was that the new building continue to be called a “pavilion” and that his full legal name be used thus “Peder Pedersen Pavilion. Bear presented two versions of the park name: “Hugo Volunteer Park” and “Lions Volunteer Park” Hugo City Council Meeting Minutes for July 18, 2022 Page 5 of 5 If approved, staff would move forward with ordering the signs, and there would be a formal celebration of the building. Weidt made motion, Klein seconded, to name the park “Lions Volunteer Park” and the building “Peder Pedersen Pavilion”. All Ayes. Motion carried. Preliminary Budget Meeting Monday, July 25, 2022 City Administrator Bryan Bear reminded Council that at its July 5, 2022 meeting, Council had scheduled a Preliminary Budget meeting for Monday, July 25, 2022, at 5 p.m. at City Hall. Adjournment Klein made motion, Strub seconded, to adjourn at 7:23 p.m. All Ayes. Motion carried. Respectfully Submitted, Michele Lindau City Clerk