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