HomeMy WebLinkAbout2023.07.24 CC MinutesMINUTES
City Council Meeting
City Hall Council Chambers
Monday, July 24, 2023
7:00 p.m.
Call to Order
Mayor Weidt called the meeting to order at 7:00 p.m.
Roll Call
COUNCIL PRESENT: Klein, Miron, Strub, Weidt
COUNCIL ABSENT: Petryk
OTHERS PRESENT: City Administrator Bryan Bear, City Engineer Mark Erichson, City
Attorney Dave Snyder, Community Development Director Rachel Juba, Finance Director Anna
Wobse, City Clerk Michele Lindau
Approve Minutes for the July 10, 2023, City Council Meeting
Klein made motion, Strub seconded, to approve the minutes for the City Council meeting held on
July 10, 2023, 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 2022 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 2022 fiscal year. She began by providing background
and stated the reason for the audit was to provide assurance financial statements were free of
material misstatements. Six areas were required to be tested by the state, and there were no
exceptions noted during the 2022 audit.
She explained the difference between Governmental and Enterprise fund types and provided
details on each. She reviewed revenues stating City property taxes bring in the most revenue, and
building permit revenue decreased slightly in 2022. Governmental Fund revenues showed a loss
in investment earnings in 2021 and a larger loss in 2022, which was seen across the board in all
of their government clients. Government Expenditures showed increases in all categories due
mainly to the increased salaries for previously unfilled positions and materials and the
construction of the new Lions Park and Public Works facility. Overall, the General Government,
Public Safety, and Street and Highway funds made up most of the expenditures. Park
maintenance expenditures increased due to Lions Park. Jill talked about the purpose and benefit
of general fund reserves saying they create a favorable bond rating and provide for unanticipated
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expenditures. She said the state auditor recommended 35-50% in the reserve, but Hugo typically
budgeted at least 50% of the following year’s budget. She reviewed capital projects over the
past five years that showed large increases over the past two years due mainly to Lions Park and
the new Public Works building. She talked about the Enterprise Fund explaining decreases in
the revenue were due to less new construction so trunk fees and connection fees were down, and
the loss in investments. She summarized by saying the City was issued an unmodified audit
opinion with no Minnesota legal compliance exceptions. The Annual Comprehensive Financial
Report (ACFR) had been posted on the City’s website and a summary had been published in the
City’s official newspaper.
Miron made motion, Klein seconded, to formally accept the 2022 City Audit.
All Ayes. Motion carried.
Consent Agenda
Klein made motion, Strub seconded, to approve the following Consent Agenda:
1.Approve Claims Roster
2.Approve Annual Performance Review for Associate Planner Max Gort
3.Approve Summary Ordinance on Interim Cannabis.
4.Approve Lawful Gambling Excluded Bingo Permit for the Northern Lights Car Show
on September 17, 2023 at the Blacksmith
5.Approve Special Event Permit for Wenzel-Markfort Family Reunion on August 12, 2023
6.Approve Special Event Permit for Wilson Tool Company Picnic on August 13, 2022
7.Approve Special Event Permit for Kourageous Karter Race on September 16, 2023
8.Approve Encroachment Agreement for 13367 Fondant Trail North
9.Approve Encroachment Agreement for 6143 Goodview Trail Court North
10.Approve Shores of Oneka Lake, Outlot B Wetland Replacement Plan
All Ayes. Motion carried.
Approval of Claims
Adoption of the Consent Agenda approved the Claims Roster as presented.
Approve Annual Performance Review for Associate Planner Max Gort
Max Gort was hired as the new Associate Planner on August 8, 2022. Adoption of the Consent
Agenda approved the Annual Performance Review for Associate Planner Max Gort.
Approve Summary Ordinance on Interim Cannabis
At its July 10, 2023, meeting, Council approved an interim ordinance on cannabis. Staff had
prepared a summary of that ordinance for publication. Adoption of the Consent Agenda
approved SUMMARY ORDINANCE 2023-527, A SUMMARY OF AN INTERIM
ORDINANCE PROHIBITING THE SALE, TESTING, MANUFACTURING, AND
DISTRIBUTION OF CANNABINOID PRODUCTS.
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Approve Lawful Gambling Excluded Bingo Permit for the Northern Lights Car Show on
September 17, 2023 at the Blacksmith
The Northern Lights Car Club had applied for a Lawful Gambling Excluded Bingo Permit to
hold bingo during their Northern Lights Car Show at the Blacksmith Lounge on September 17,
2023. Licenses are issued by the Minnesota Gambling Control Board after the application is
approved by the City. Adoption of the Consent Agenda approved the application for a Lawful
Gambling Excluded Bingo Permit for the Northern Lights Car Club.
Approve Special Event Permit for Wenzel-Markfort Family Reunion on August 12, 2023
Kathy Wenzel-Markfort had applied for a Special Event Permit to hold a family reunion on her
property at 5623 142nd Street on Saturday, August 12, 2023. A band would be playing from 5
p.m. to 7 p.m. at this event. An event that included live music required a Special Event Permit
approved by Council. Adoption of the Consent Agenda approved the Special Event Permit for
the family reunion on August 12, 2023.
Approve Special Event Permit for Wilson Tool Company Picnic on August 12, 2023
Wilson Tool had applied for a Special Event Permit to hold their annual company picnic on
Saturday, August 12, 2023, 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 500-1,000 people were expected to attend. This would be 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 the Wilson Tool Picnic on Saturday,
August 12, 2023
Approve Special Event Permit for Kourageous Karter Race on September 16, 2023
Jennifer Williams, representing the Kourageous Karter Foundation, had applied for a Special
Event permit to hold the Kourageous Karter Race on Saturday, September 16, 2023. This would
be a run/walk to raise awareness and funds to help support the needs of medically complex kids.
The run/walk would begin at the Pede Pedersen Pavilion and continue onto the Hardwood Creek
Trail. This event required a Special Event Permit approved by Council because there was
expected to be over 200 people in attendance. Adoption of the Consent Agenda approved the
Special Event Permit for the Kourageous Karter Race on Saturday, September 16.
Approve Encroachment Agreement for 13367 Fondant Trail North
Sara Thorstenson and Brandon Porten had requested an encroachment agreement to allow
construction of a fence within a drainage and utility easement on property located at 13367
Fondant Trail North. The Senior Engineering Technician had reviewed the location of the fence
and was comfortable with the request. Adoption of the Consent Agenda approved
RESOLUTION 2023-19 APPROVING AN ENCROACHMENT AGREEMENT TO ALLOW
CONSTRUCTION OF A FENCE WITHIN A DRAINAGE AND UTILITY EASEMENT ON
THE PROPERTY LOCATED AT 13367 FONDANT TRAIL NORTH.
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Approve Shores of Oneka Lake, Outlot B Wetland Replacement Plan
Fenway Land Company had requested to impact a .5-acre wetland for future development of
Outlot B, The Shores of Oneka Lake. The City had not approved any development application or
development of the property with the wetland replacement plan. Any development of the site
would require approval from the City. The applicant proposed to replace the impacts to the
wetland basin though the purchase of wetland credits from an approved wetland bank. Adoption
of the Consent Agenda approved the wetland replacement plan, subject to final Technical
Evaluation Panel issuance of the Notice of Decision for the wetland replacement application.
Discussion and Approval of Solar Ordinance and Summary Ordinance
Community Development Director Rachel Juba provide background on the review of the Solar
Energy Systems Ordinance. At its June 12, 2023, meeting, Council extended the moratorium on
the new development of solar farm solar energy systems for six months. The Ordinance Review
Committee (ORC) had met several times to determine potential revisions to the ordinance and
proposed several revisions to the performance standards and conditions of approval. Proposed
changes included increasing the setbacks to 200 feet, five-acre size limit, and requirements for
six-feet tall vegetation for screening, pollinator friendly plants, and a vegetation management
plan. It was also proposed to include imposing addition setbacks based on conditions. Planning
Commission held a Public Hearing at its July 13, 2023, meeting and took public comments.
There was discussion on setbacks, screening, and trespassing. The Planning Commission had
unanimously recommended approval of the proposed changes including language to have the
duration of the Interim Use Permit begin when the solar farm went into operation.
Klein and Miron were on the ORC and agreed it met what the committee had talked about to
maintain property rights with the understanding that this type of development has impacts.
Klein made motion, Miron seconded, to approve ORDINANCE 2023-528 AMENDING
CHAPTER 90 – ZONING AND LAND USE, ARTICLE VI – REQUIREMENTS FOR
SPECIFIC USES AND PERFORMANCE STANDARDS, SECTION 90-278 – SOLAR
ENERGY SYSTEMS, AS IT RELATES TO SOLAR FARMS.
Roll call vote-
Ayes: Klein, Miron, Strub, Weidt
Nay: None
Motion carried.
Miron made, motion, Klein seconded, to approve SUMMARY ORDINANCE 2023-528, A
SUMMARY OF AMENDED SOLAR ENERGY SYSTEMS ORDINANCE.
Roll call vote-
Ayes: Klein, Miron, Strub, Weidt
Nay: None
Motion carried.
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Receive Bids and Award Contract for Lift Station No. 12
City Engineer Mark Erichson explained that on July 20, 2023, bids were received for Lift Station
No. 12 Improvements. Six bids were received with the low bidder being CW Houle, Inc. Bids
ranged from $614,930.00 to $2,896,968.69. The engineer’s estimate was $750,000. The lift
station was on schedule to be substantially complete by January 19, 2024, with final completion
by May 17, 2024. Erichson recommended approval of the resolution receiving bids and
awarding the contract to CW Houle, Inc. in the amount of $614,930.00.
Miron made motion, Klein seconded, to approve RESOLUTION 2023-21 RECEIVING BIDS
AND AWARDING A CONTRACT FOR LIFT STATION NO. 12.
All Ayes. Motion carried.
Receive Bids and Award Contract for TH61 and 159th Street Improvements
City Engineer Mark Erichson explained that on July 21, 2023, bids were received for the TH 61
and 159th Street Roundabout Improvement Project. Six bids were received ranging from
$2,161,729.90 to 2,942,458.70. The engineer’s estimate was $2,755,147.20. The street
improvement project was on schedule to be substantially complete by December 1, 2023, with
final completion by May 31, 2024. Erichson recommended approval of the resolution receiving
bids and awarding a contract to Arnt Construction Company, Inc. in the amount of
$2,161,729.90.
Klein made motion, Strub seconded, to approve RESOLUTION 2023-22 RECEIVING BIDS
AND AWARDING A CONTRACT FOR THE TH 61 & 159TH STREET RECONSTRUCTION.
All Ayes. Motion carried.
Schedule National Night Out on Tuesday, August 1, 2023
City Administrator Bryan Bear reminded Council that in the past Council had attended
neighborhood parties along with Fire Department and Washington County Sheriff’s Office
personnel. He recommended Council schedule a meeting to attend 2023 National Night Out
events on Tuesday, August 1, 2023.
Weidt made motion, Klein seconded, to schedule National Night Out as a meeting to attend
neighborhood events on August 1, 2023.
All Ayes. Motion carried.
Vacancy on the Browns Creek Watershed District
City Administrator Bryan Bear informed Council of vacancies on the Browns Creek Watershed
District Board. Residents interested in being appointed to the board could contact City Hall.
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Expansion of Xfinity High Speed Internet to the Northeastern Hugo
City Administrator Bryan Bear informed Council the City was recently notified that Comcast
was awarded a grant to do a project that would provide Comcast service to 190 residents and 21
businesses located in the northeastern section of Hugo that were shown to be underserved. The
grant was being paid for with ARPA Funds and will be done at no cost to the City. Comcast will
extend its network to provide 1.2 Gbps download and 200 Mbps upload, which exceeds
Minnesota’s 2026 state speed goal.
Adjournment
Klein made motion, Miron seconded, to adjourn at 7:35 p.m.
All Ayes. Motion carried.
Respectfully Submitted,
Michele Lindau, City Clerk
Council Meeting Minutes for July 24, 2023
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