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HomeMy WebLinkAbout2024.04.15 CC Packet A. CALL TO ORDER B. ROLL CALL C. PLEDGE OF ALLEGIANCE D. APPROVAL OF MINUTES 1. April 1, 2024, City Council Meeting 2. April 4, 2024, Local Board of Appeal and Equalization E. APPROVAL OF AGENDA F. APPOINTMENTS/PRESENTATIONS 1. Hugo Good Neighbor Days June 7 - June 9, 2024 2. Washington County Sheriff's Department Annual Report 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 Hiring of Public Works Seasonal Employees 3. Approve Resolution Establishing Water and Sanitary Sewer Service Rates 4. Approve Master Service Agreement with Baker Tilly for Municipal Advisory Services 5. Approve Purchase of Felling Pan Trailer for the Public Works Department 6. Approve Quote for 2024 Dust Control Project Mayor: Tom Weidt Councilmembers: Becky Petryk, Ward 1 Phil Klein, Ward 2 Dave Strub, Ward 3 Mike Miron, Council at Large City Council Agenda Monday, April 15, 2024 Address: 14669 Fitzgerald Ave. N. Hugo, MN 55038 Phone: 651-762-6300 Website: www.ci.hugo.mn.us H. PUBLIC HEARING 1. Nothing Scheduled I. UNFINISHED BUSINESS 1. Approve Resolution Receiving Bids and Awarding the Contract for 125th Street and Dellwood Ridge Development Street Project J. NEW BUSINESS 1. Nothing Scheduled K. VISITOR PRESENTATIONS 1. Nothing Scheduled L. COUNCIL PRESENTATIONS 1. Nothing Scheduled M. ADMINISTRATIVE PRESENTATIONS 1. Reminder - Council Workshop on Monday, April 22, 2024 2. Reminder – Metro Cities Annual Meeting on Wednesday, April 24, 2024 3. Schedule Diamond Point Park Neighborhood Meeting on Wednesday, May 15, 2024 O. ADJOURNMENT BACKGROUND MEMO FOR THE CITY COUNCIL MEETING ON APRIL 15, 2024 D.1 Minutes for the April 1, 2024, City Council Meeting D.2 Minutes for the April 4, 2024, Local Board of Appeal and Equalization Staff recommends Council approve the above minutes as presented. F. 1 Hugo Good Neighbor Days June 7 – June 9, 2024 The Hugo Lions Club will be holding their annual Hugo Good Neighbor Days Community Festival June 7-9, 2024, at the new Lions Volunteer Park. This will be the first year the event is held at the new park. Lions Club members will be in attendance to answer any questions the Council may have and will request the Council co-sponsor the event by waiving the Special Event Permit and providing Washington County deputies to be present during the event, as in the past. F.2 Washington County Sheriff's Department Annual Report Washington County Sheriff Dan Starry will present the 2023 Annual Report. G. 1 Approval of Claims Staff recommends Council approve the Claims Roster as presented. G.2 Approve Hiring of Public Works Seasonal Employees Staff is requesting Council approval to hire seasonal employees for the Public Works Department. In the 2024 General Fund Budget, Council approved funding for seven seasonal employee positions. There are two seasonal workers, Adler Siebenaler and William Heise, who will be returning from last year. Staff has interviewed new potential hires and are recommending approval of five new seasonal employees. Seasonal Public Works Employees assist with mowing, garbage/litter removal, park maintenance, boulevard maintenance and general public works maintenance. Staff recommends Council approve the rehiring of last year’s seasonal employees Adler Siebenaler and William Heise and new seasonal employees Elijah Johnson, Beck Rogers, Cohen Yerkes, Jacob Weierke, and Kristofer Bower. G.3 Approve Resolution Establishing Water and Sanitary Sewer Service Rates The Finance Department has completed an analysis of water and sewer billing data and is recommending a water rate increase to separately metered irrigation accounts and a sewer rate increase to the sanitary sewer base fee. The water rate increase to separately metered irrigation accounts follows the established conservation rate schedule. The revenue generated will offset a portion of operating expenses to help keep lower rates for lower usage water users. The sewer rate increase to the sanitary sewer base fee will help cover the ever-increasing charges from Metropolitan Council Environmental Services (MCES) for sewage treatment. Staff recommends that Council adopt the Resolution Establishing the 2024 Water and Sanitary Sewer Service Rates. G.4 Approve Master Service Agreement with Baker Tilly for Municipal Advisory Services The City entered into a contract with Baker Tilly (formerly Springsted Incorporated) on July 21, 2017, for municipal advisory services including debt issuance, arbitrage calculation and continuing disclosure. With the long lag between contract updates and current inflationary pressures, Baker Tilly has been rolling out new Master Service Agreements (MSA) for Municipal Advisory Services with updated contract fees. The City Attorney has reviewed the proposed MSA and the Finance Department recommends City Council approve the Master Service Agreement with Baker Tilly for Municipal Advisory Services and authorize the City Administrator to execute the agreement. G.5 Approve Purchase of Felling Pan Trailer for the Public Works Department In 2003, the City purchased a tandem axle Felling skid steer trailer that was primarily used to haul with either of the skid steers and any corresponding attachments, as well as items that were too large to be hauled in trucks. This trailer has been in service for 21 seasons and is nearing the end of its useful life. Money is included in the 2024 budget to cover the purchase of a new Felling skid steer trailer and the Public Works Department would like to purchase it using the Mn/DOT Cooperative Purchasing Venture (CPV) State contract which would assure that the City of Hugo will receive the best price available. Staff recommends Council authorize the purchase of the Felling pan tilt trailer as outlined in the quote from Lano Equipment Inc. in the amount of $17,125.44. G.6 Approve Quote for 2024 Dust Control Project The City of Hugo currently applies dust control to approximately 23 miles of gravel roads located within its municipal boundaries. The City’s 2024 General Budget has accounted for a dust control project in 2024. As in past years, staff will also work with May Township to cost share for the application of dust control on the shared portion of Keystone Avenue, north of County Road 4. Two quotes for dust control were received and opened on April 9, 2024. The low quote was from Envirotech Services at $1.39 per gallon. With City Council approval, staff would coordinate with Envirotech Services to deliver and place a total of 109,000 gallons of calcium chloride in two separate applications, once in mid-June and again in mid-August. Staff recommends Council approve the quote from Envirotech Services for calcium chloride for 2024 dust control. I.1 Approve Resolution Receiving Bids and Awarding the Contract for 125th Street and Dellwood Ridge Development Street Project At its March 4, 2024, meeting, Council approved a resolution approving the plans and specifications and authorizing advertisement for fids for the 125th Street and Dellwood Ridge Neighborhood street improvement project. The bid opening is scheduled for Friday, April 12, 2024, at 10 a.m. Staff will present the results of the bid opening to the Council and will request Council approve a resolution receiving the bids and awarding the contract. M.1 Reminder - Council Workshop on Monday, April 22, 2024 The Council has scheduled a workshop for Monday, April 22, 2024, at 6 p.m. at the Pede Pedersen Pavilion. Discussion items will be bridges, cannabis and shoreland ordinances, and Fire Department staffing structure. M.2 Reminder – Metro Cities Annual Meeting on Wednesday, April 24, 2024 Council has scheduled a meeting to attend the Metro Cities Annual Meeting on Wednesday, April 24, 2024, at the Roseville Skating Center from 5-7 p.m. M.3 Schedule Diamond Point Park Neighborhood Meeting on Wednesday, May 15, 2024 The Parks Commission has scheduled a neighborhood meeting for Wednesday, May 15, 2024, at 7:00 pm at the Peder Pedersen Pavilion. The neighborhood will be invited to view proposals from playground vendors to select new play equipment. Plans to reconstruct and update the park this summer will be shared. The neighborhood will also be asked if they want a pickleball court to replace the current sand volleyball court. Staff recommends Council schedule a meeting of the Council if they wish to attend the Diamond Point Park neighborhood meeting on May 15. O. Adjournment MINUTES City Council Meeting City Hall Council Chambers Monday, April 1, 2024 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, Petryk, Weidt COUNCIL ABSENT: Strub OTHERS PRESENT: City Administrator Bryan Bear, City Engineer Mark Erichson, City Attorney Dave Snyder, Community Development Director Rachel Juba, City Clerk Michele Lindau Approval of Minutes for the City Council Meeting on March 18, 2024 Petryk made motion, Klein seconded, to approve the minutes for the City Council meeting held on March 18, 2024, as presented. All Ayes. Motion carried. Approval of Agenda Weidt made motion, Klein seconded, to approve the agenda as presented. All Ayes. Motion carried. Swear in Tom Kaspszak as Chief Engineer on the Hugo Fire Department Tom Kaspszak had been a member of the Hugo Fire Department since November 2016. At its meeting on February 5, 2024, Council approved the appointment of Tom as the new Chief Engineer of the Department. Fire Chief Jim Compton officially swore in Kaspszak at the meeting. Kaspszak thanked his family and all the officers that helped him along the way. Mayor Weidt thanked him for his willingness to serve. Hugo Fire Department Annual Report Fire Chief Jim Compton, Jr. presented the 2023 Hugo Fire Department Annual Report. There were currently 27 firefighters on the staff, and they responded to 380 calls in 2023. Mutual aid calls were up a little bit due in part to the agreements Hugo had with seven other departments. Other departments were called into Hugo 12 times in 2023, and the Hugo department responded to 41 mutual aid calls outside of the City. Of the 380 calls to the department, calls to assist MHealth was the highest at 139 calls, and calls for alarms was next at 100. This was their fourth year assisting MHealth. Compton said they meet with them monthly to discuss operations. MHealth also provided free training including the four training courses necessary to keep up with annual certification. Including mutual aid, there was a total of 109 fire and service calls last year, mostly for structure fires. Council Meeting Minutes for April 1, 2024 Page 2 of 5 There was little or no increase in call volume over the past three years; however, calls were expected to increase with the growing population, and they expected to see more fires due to the dry weather conditions. Compton reviewed call data that showed February and May to be their busiest months with most calls coming in during daytime hours. Sundays were the busiest, and Saturdays were the least busy. Department personnel participated in 3,272 hours of training that included a propane simulator, helicopter rescue, auto extraction, entanglement, and animal and water rescue. Operational improvements in 2023 included the hiring of the City’s first full-time Fire Chief. Three firefighters had completed probation, and two new probationary firefighters were hired. The Department was awarded a 50/50 grant from the DNR for wildland gear, and a new grass firetruck was expected to be in service for the Spring 2024 grassfire season. Community involvement included blood drives, toy drives, rodeos, parades, CPR training, and Good Neighbor Days. In 2023, the department had received a total of $31,851 in donations. Some of the money went into the AED program to help maintain 28 AEDs throughout the community. The goals for 2024 were to recommend changes to the operation and structure of the department, continue discussions on daytime staffing, and hire more paid on-call firefighters. They were accepting applications, and the deadline to apply was June 28, 2024. Klein asked about AEDs in the schools and about training on electric vehicle fires. Compton replied that schools have and maintain their own AEDs, and some EV training was available at Century College. Compton said those types of fires take more water, and sometimes the vehicle needs to be completely submerged. Compton said they have had a handful of small electronic fires. Mayor Weidt thanked Chief Compton for the report. M Health Fairview EMS Annual Report M Health Operations Manager Kevin Kane was in attendance to present the 2023 M Health Fairview EMS Annual Report. Kane presented data on the overall 911 responses during the year and explained how this information was shared with the Hugo Fire Department at their monthly meetings. Within their region, they responded to 465 mutual aid calls, and requested help 216 times. Kane talked about how they categorized different types of calls according to severity, and he provided data on response times. In 2023, the response time in Hugo was eight minutes and ten seconds. In 2023, M Health received 990 requests for service. Forty-one of them were in Hugo. He presented a heatmap that showed where the calls came from, and said they used that information to determine where they station people. Kane talked about the community events they participated in that included the Tough Mudder, live burns, Fridays with Firefighters, and Good Neighbor Days. He said Clayton the dog also attends those events. The Mayor said he appreciated their involvement and partnership. Yellow Ribbon Network Update – Chuck Haas Hugo Yellow Ribbon Board President Chuck Haas presented information on recent activities of the YRN. He began by thanking Council and staff for their support which helped the YRN get their volunteer needs met. Care packages had been sent to Japan, and Haas shared a photo he received as a “thanks”. He said there were currently 600 soldiers being deployed to Kuwait and Afghanistan, and the YRN would continue to send care packages. He shared photos of the Welcome Home Pheasant Hunt that was held at the end of March, and a photo of the grand prize Council Meeting Minutes for April 1, 2024 Page 3 of 5 winner from the Military Appreciation Hunt, which was a helicopter pig hunt in Texas. Haas showed photos of the Burger Night that was sponsored by the Oneka Ridge Golf Course. The Fire Department was a recent sponsor, and the Washington County Sheriff’s Department would be sponsoring Burger Night next month. They continued to send Red Bull Blend Coffee, made in LeCenter, to those deployed. Haas said the YRN responded to requests for gas cards, moving assistance, help after house fires, and medical support. The Mayor thanked him for the update. Approval of Consent Agenda Klein made motion, Miron seconded, to approve the following Consent Agenda: 1. Approve Claims Roster 2. Approve Appointment of Gloria Brisson Gebhard to the Historical Commission 3. Approve Donation to the Hugo Fire Department from the Hugo American Legion 4. Approve Purchase of Two 2024 Chevrolet Trucks for the Public Works Department All Ayes. Motion carried. Approve Claims Roster Adoption of the Consent Agenda approved the Claims Roster as presented. Approve Appointment of Gloria Brisson Gebhard to the Historical Commission Gloria Brisson Gebhard had applied to fill a vacancy on the Historical Commission. Adoption of the Consent Agenda approved the appointment of Gloria Brisson Gebhard to fill the vacancy on the Historical Commission with a term ending December 31, 2024. Approve Donation to the Hugo Fire Department from the Hugo American Legion The Hugo American Legion had requested to donate $1,000 in gambling proceeds to the Hugo Fire Department for training and equipment. All donations to the Fire Department needed to be approved by the Council. Adoption of the Consent Agenda approved the donation from the Hugo American Legion to the Hugo Fire Department. Approve Purchase of Two 2024 Chevrolet Trucks for the Public Works Department Included in the 2023 budget was the purchase of two Chevrolet 2500HD pickup trucks for use at Public Works. Both trucks were ordered in 2023, and purchased using the Mn/DOT Cooperative Purchasing Venture Contract, assuring the City of Hugo received the best price available while providing the City with the necessary options. Adoption of the Consent Agenda approved the purchase of two 2024 Chevrolet 2500HD trucks as outlined in the quote from Saxon Fleet Service for the amount of $46,268.00 each. Discussion on Middle Missing Housing Legislation Community Development Director Rachel Juba talked about bills that had been introduced at the legislature known as the Middle Missing Housing Legislation, which would restrict or eliminate local control over residential developments and land use with the goal of increasing housing and Council Meeting Minutes for April 1, 2024 Page 4 of 5 making it more affordable. She said the bills were changing every week, and the League of Minnesota Cities had been to the legislature testifying on them. She explained it was a bipartisan bill that would replace city zoning regulations with state mandates. It would require cities, “by-right” to allow six types of housing other than singe family to be built on any residential lot and in any zoning district. It would force administrative approvals, prohibit public hearings, and allow accessory dwelling units on residential properties. It also would limit off-street parking to one space per unit. Juba talked about how this legislation would cause problems by departing from how cities plan for infrastructure. There were also concerns about lack of parking to support development, impacts to the neighborhoods, residents' inability to voice concerns at a public hearing, and impacts to the equipment CIP and the environment. Juba stated this legislation would not adequately address housing availability and affordability challenges, and instead the State could look at their existing mandates and learn how they have an impact. The State could provide tools and resources to make progress towards housing goals. Petryk, as a representative on the Transportation Advisory Board, said she was aware of money being spent on mass transit solutions and the need to build ridership in areas with a certain density of housing. She questioned why they were not focusing on the intercity areas. Juba explained the bill contained more requirements for areas in close proximity to transit. Petryk asked what was being heard from the other cities on these bills and the likelihood that they would pass. Juba responded that it was a bipartisan bill, and Metro Cities and the League of MN Cities are in opposition, and other communities have testified in opposition, Miron questioned whether the Metropolitan Council had weighed in on this since infrastructure was built to support their density targets, and how would they support the infrastructure with unknown growth targets. Juba responded that she did not know Met Council’s views on this. Klein talked about the need to address water if they were developing policies to create greater density. He also voiced concerns about not allowing local conversations in the decision-making process. Miron agreed and said he supported a letter stating opposition, not because a problem didn’t exist, but because there was an issue concerning purposeful planning, and what they were proposing would create unintentional consequences. Weidt talked about how the legislation would create larger problems. Mandates from the State had created a lot of costs on building, but cutting fees seemed to just increase the builders’ profits. The proposed legislation took away the citizens’ ability to have a voice and public input. He said he fully supported a strong letter of opposition and was willing to be a part of the conversation to solve this. Weidt made motion, Klein seconded, to send a letter opposing this legislation to representatives and to the hearing committee. All Ayes. Motion carried. Council Meeting Minutes for April 1, 2024 Page 5 of 5 Miron added that he felt it was prudent to send to the legislators, Met Council, and the County to let them know the action the City took on this issue, and he suggested the letter be signed by the Mayor. Reminder – Local Board of Appeal and Equalization Meeting Thursday, April 4, 2024 City Administrator Bryan Bear reminded Council the Local Board of Appeal and Equalization would be held on Thursday, April 4, 2024, in the Oneka Room at City Hall from 5:30 – 7 p.m. Schedule Metro Cities Annual Meeting on Wednesday, April 24, 2024 City Administrator Bryan Bear informed Council they had been invited to attend the Metro Cities Annual Meeting on Wednesday, April 24, 2024, at the Roseville Skating Center beginning at 5 p.m. Weidt made motion, Klein seconded, to schedule a meeting to attend the Metro Cities Annual Meeting on Wednesday, April 24, 2024. All Ayes. Motion carried. Schedule Nystrom & Associates Ribbon Cutting on Tuesday, May 21, 2024 City Administrator Bryan Bear informed Council they had been invited to attend the Ribbon Cutting Ceremony for Nystrom & Associates at their new location at 4638 Victor Path, Suite 900, on Tuesday, May 21, 2024, from noon to 1 p.m. Petryk made motion, Klein seconded, to schedule a meeting to attend the Nystrom & Associates Ribbon Cutting Ceremony. All Ayes. Motion carried. Adjournment Klein made motion, Miron seconded, to adjourn at 8:07 p.m. All Ayes. Motion carried. Respectfully Submitted, Michele Lindau, City Clerk MINUTES LBAE Meeting City Hall Oneka Room Thursday, April 4, 2024 5:30 p.m. COUNCIL PRESENT: Klein, Miron, Petryk, Weidt COUNCIL ABSENT: Strub ALSO PRESENT: City Administrator Bryan Bear, City Clerk Michele Lindau, County Staff Mayor Weidt called the Local Board of Appeal and Equalization meeting to order at 5:30 p.m. Assessor Recommendations Council reviewed all assessor recommendations and made the following motions: Klein made motion, Miron seconded, to approve correction on new construction on PIDs 17.031.21.13.0018, 17.031.21.13.0019, and 17.031.21.13.0027 owned by Fenway Land Co/MI Homes All Ayes. Motion carried. Miron made motion, Klein seconded, to approve change in classification on PID 10.031.21.13.0001 owned by Tim Skarpohl. All Ayes. Motin carried. Petryk made motion, Klein seconded, to approve reduction of $115,100 on PID 19.031.21.21.0016 owned by Summit Commons, LLC. All Ayes. Motion carried. Miron made motion, Petryk seconded, to approve reduction of $26,500 on PID 04.031.21.32.0005 and $29,5000 on PID 05.031.21.41.0001 owned by Gregory and Valerie Dereschuk Trust. All Ayes. Motion carried. Petryk made motion, Klein seconded, to approve a reduction of $96,000 on PID 19.031.21.23.0164 owned by Finnegan Holdings, LLC All Ayes. Motion carried. Local Board of Appeal and Equalization Attendees Five property owners attended the LBAE. There was no action on PID 19.031.21.22.0070. On the four other appeals, the following actions were taken: LBAE Meeting Minutes for April 4, 2024 Page 2 of 2 Miron made motion, Klein seconded, to lower the valuation on PID 19.031.2114.0011 owned by Johnson Wholesale Florist to $682,300. All Ayes. Motion carried. Weidt made motion, Petryk seconded, to make no change pending inspection on PID 18.031.21.21.0023 owned by Pat and Molly Suko. All Ayes. Motion carried. Klein made motion, Miron seconded, lower the valuation on PID 04.031.21.32.0004 owned by Lessard-Nyren Leasing to $204,2000. All Ayes. Motion carried. Miron made motion, Klein seconded, to make no change on PIDs 07.031.21.32.0004 and 07.031.21.31.0006 owned by Walter and Barbara Erickson. All Ayes. Motion carried. Adjournment Weidt made motion, Klein seconded, to adjourn at 7:00 p.m. All Ayes. Motion carried. Respectfully Submitted, Michele Lindau, City Clerk City of Hugo Claims April 15, 2024 G. 1 Vendor Invoice Amount Description Department Abdo Financial Solutions LLC 486544 2,850.00$ Accounting Assistance Finance Dept Abdo Financial Solutions LLC 486546 8,250.00$ Accounting Assistance Finance Dept Advanced Graphix Inc 213751 857.50$ Decals - Unit #6109-24 Fire Dept Alex Air Apparatus Inc 8069 85.12$ LiteBox Battery (2) Fire Dept Alex Air Apparatus Inc INV-49534 67.80$ LiteBox Battery Fire Dept American Public Works Assoc 834956 225.00$ Facilities & Ground Management Certificate - Kieffer Parks Dept AutoNation 443202 5.52$ Parts - Unit #111-15 Building Inspections AutoNation 632965 139.95$ Repairs - Unit #109-15 Street Dept AutoNation 633003 1,511.97$ Repairs - Unit #108-15 Water & Sewer Bill Weigel Signs 24-221 36.00$ Nameplate - Taylor Finance Dept Bound Tree Medical LLC 85286728 108.27$ Medical Supplies Fire Dept Bound Tree Medical LLC 85286729 104.08$ Medical Supplies Fire Dept Brighton Sandblasting Inc 78880 5,900.00$ Sandblast & Paint - Unit #329-11 Street Dept Canteen Refreshment Services MSP94686 304.73$ Breakroom Supplies Public Works Carroll Construction Supply LL072582 210.93$ Floor Cleaning Supplies - Hanifl Parks Dept Comcast 3/12/2024 25.13$ Business Cable (thru April 21) Administration Como Lube & Supplies 702633 75.00$ Used Oil Filters Pickup Public Works Companion Animal Control LLC March 182.78$ Callout Fees & Mileage Animal Control Cummins Sales and Service E4-36986 24.14$ Parts - Unit #314-16 Street Dept Earl F. Andersen 0135660-IN 965.50$ Street Sign Plates Street Dept Earl F. Andersen 0135087-CM (82.44)$ Street Sign Plates (Recycling) Street Dept Forest Lake NAPA March 2,099.58$ Auto Parts & Shop Supplies Various Gopher State One Call 4030486 286.20$ March Service Charges Water & Sewer Hach Company 13982071 519.00$ Water Testing Supplies Water Utility Hawkins Inc 6708578 10.00$ Water Chemicals (Cylinder Charge) Water Utility Hawkins Inc 6721105 218.36$ Water Chemicals Water Utility Hawkins Inc 6721105 2,042.00$ Pumps & Materials - Well No. 2 Water Utility Hawkins Inc 6721105 1,013.00$ Pump & Materials - Well No. 3 Water Utility Hawkins Inc 6721105 146.00$ Materials - Well No. 4 Water Utility Hawkins Inc 6721105 1,233.00$ Pump, Nozzle & Materials - Well No. 5 Water Utility Hawkins Inc 6721105 146.00$ Materials - Well No. 6 Water Utility Hawkins Inc 6721148 468.00$ Switchover Module - Well No. 3 Water Utility Hawkins Inc 6721148 468.00$ Switchover Module - Well No. 5 Water Utility Hotsy Equipment of Minnesota 2035 829.96$ Bulk Soap for Washbay Public Works Innovative Office Solutions LLC IN4505698 20.40$ Clipboards Water Utility Innovative Office Solutions LLC IN4505698 38.55$ Storage Boxes Public Works Innovative Office Solutions LLC IN4505698 53.35$ Trash Can Liners Public Works Instrumental Research, Inc. 5436 120.00$ Water Bacteria Testing Water Utility International Code Council Inc 101758167 270.00$ 2024 Minnesota Commercial Energy Codebook Building Inspections John Deere Financial 9928701 12.10$ Parts - Unit #317-06 Street Dept Johnson/Turner February 4,829.00$ Prosecution Fees (Flat Fee) General Legal Johnson/Turner February 374.95$ Disbursements (Prosecution Costs) General Legal Johnson/Turner February 4,208.25$ Civil Legal Fees - See Attached Breakdown General Legal Kath Fuel Oil Service Co. 12320094 8,706.38$ March Unleaded Gas & Diesel Purchases Various Kieffer, Rick CLAIM 173.15$ Work Boot Reimbursement Parks Dept Klein, Lori 906373 630.00$ March Cleaning Services (PPP) Parks Dept Laughlin's Pest Control 63498 97.75$ March Pest Control Service Gen Gov't Bldgs Lincoln National Life Insurance Co. April 1,324.43$ Disability Premium Finance Dept MacQueen Emergency P27645 1,804.69$ Structural Boots Fire Dept Marco INV12346512 55.31$ April Copier Maintenance Building Inspections Menards 28475 7.99$ Screening - Well No. 3 Water Utility Menards 28475 9.99$ Shop Supplies Public Works Menards 28475 18.98$ Supplies - Unit #470 Parks Dept Menards 28475 44.98$ Shop Tools Public Works Menards 29319 7.78$ Supplies - Well No. 2 Water Utility Menards 29666 3.95$ Hardware - Oneka Room Gen Gov't Bldgs Menards 29685 11.38$ Hardware - Oneka Room Gen Gov't Bldgs Menards 29738 39.14$ Fire Department Supplies Fire Dept Menards 30148 37.14$ Painting Supplies - Hanifl Parks Dept Menards 30551 17.37$ Hardware - Unit #470 Parks Dept Menards 30623 9.97$ Floor Cleaning Supplies - Hanifl Parks Dept Menards 30663 20.49$ Supplies - Well Houses Water Utility Menards 29318 (19.98)$ Shop Supplies (Return) Public Works Metering & Technology Solutions INV4612 1,184.40$ Water Meters Water Utility Metering & Technology Solutions INV4675 168.86$ Water Meter Water Utility Metering & Technology Solutions INV4698 1,184.40$ Water Meters Water Utility MGX Equipment PSO061930-1 938.24$ Parts - Unit #202-17 Street Dept Minneapolis/St. Paul Business Journal 508453325 90.00$ 1 Year Subscription Administration Minnesota Cleaning Services Inc 0424HH01 605.00$ March Cleaning Services Gen Gov't Bldgs Page 1 City of Hugo Claims April 15, 2024 G. 1 Vendor Invoice Amount Description Department Minnesota Cleaning Services Inc 0424HH02 100.00$ March Cleaning Services - Hanifl Parks Dept Minnesota Cleaning Services Inc 0424HH03 741.00$ March Cleaning Services - PW Facility Public Works Minnesota Cleaning Services Inc 0424HH03 450.00$ March Cleaning Services Fire Dept Minnesota Cleaning Services Inc 0424HH03 247.00$ March Cleaning Services - Rice Lake Room Gen Gov't Bldgs Minnesota Department of Health C-8754 23.00$ Water Operator Renewal - Kieffer Water Utility Minnesota Department of Health D-14779 23.00$ Water Operator Renewal - Nelson Water Utility NAC Mechanical Corp 222230 5,981.71$ HVAC Repairs (CH) Gen Gov't Bldgs NAC Mechanical Corp 224096 (4,311.71)$ HVAC Repairs (CH) - Credit Gen Gov't Bldgs Nardini Fire Equipment Inc IV00283077 372.60$ Annual Monitoring of City Hall Alarm System Gen Gov't Bldgs Northern Door 74514 1,267.80$ Exterior Access for Garage Door - Tower No. 3 Water Utility Northern Timber 509693 990.00$ Decking Boards - Unit #329-11 Street Dept Pettee, Kraig CLAIM 25.00$ MRWA Conference Parking Water & Sewer Pomp's Tire Service 150180003 298.64$ Tires - Unit #310-05 Parks Dept Pomp's Tire Service 150180172 1,304.00$ Turf Tires - Unit #347-23 Parks Dept Pomp's Tire Service 150180172 1,304.00$ Turf Tires - Unit #318-24 Parks Dept Press Publications 801408 69.95$ Board of Appeal and Equalization Notice Ordinances/Proceedings Press Publications 801409 83.94$ Planning Commission Public Hearing Notice Ordinances/Proceedings Safe-Fast Inc INV288704 99.00$ 4-Gas Meter Calibration Sewer Utility Safe-Fast Inc INV288704 189.00$ Parts - 4-Gas Meter Sewer Utility SiteOne Landscape Supply LLC 139734242-001 70.58$ Irrigation Hardware Parks Dept Smith, Schafer & Associates 27617 1,600.00$ 2023 Audit Interim Billing Finance Dept Smith, Schafer & Associates 27617 525.00$ Accounting Assistance Finance Dept Station Automation Inc 5980 2,685.00$ PSTrax Modules Annual Software & Support Fire Dept Tablet Command INV-1074 750.00$ Tablet Command Annual Licenses (2 Pro-Rated) Fire Dept TASC IN3031930 50.00$ April Cobra Administration Fee Finance Dept UniFirst Corporation 1410047543 278.47$ Uniforms, Supplies & Floor Mat Services (PW) Public Works UniFirst Corporation 1410048859 158.53$ Uniforms, Supplies & Floor Mat Services (PW) Public Works UniFirst Corporation 1410050233 27.52$ Restroom Supplies & Floor Mat Services (CH) Gen Gov't Bldgs UniFirst Corporation 1410050234 160.53$ Uniforms, Supplies & Floor Mat Services (PW) Public Works Viking Electric S007742549.001 1,024.07$ Heater - Well No. 6 Water Utility Washington County 222461 2,943.00$ Special Assessment Collection Fee General/Unallocated 77,955.10$ Total Claims for April 15, 2024 Page 2 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, Finance Director  SUBJECT: 2024 Water and Sanitary Sewer Service Rates  DATE: For the City Council Meeting of April 15, 2024    DESIRED COUNCIL ACTION   Adoption of Resolution Establishing the 2024 Water and Sanitary Sewer Service Rates.      BRIEF HISTORY   Over the last six years, the Finance Department has prepared the water and sewer rate schedules rather than  outsourcing the task to a consulting firm. For the 2024 fiscal year the Finance Department is recommending a water  rate increase to only separately metered irrigation accounts and a sewer rate increase to the sanitary sewer base fee.      WATER RATES   Water service rates are established using a conservation rate schedule, which seeks to reward low‐end users with the  lowest rate while encouraging everyone to use water efficiently.  Using that philosophy, the Finance Department is  recommending a 15% increase to all separately metered irrigation accounts.  All other tiers will remain the same.  All  separately metered irrigation would be charged $6.45 per thousand gallons, up from $5.61 per thousand gallons.  This  revenue will offset a portion of operating expenses to help allow us to keep lower usage rates for low‐end water users.        SANITARY SEWER RATES   The largest expense item in the sewer department is for sewage treatment.  These charges are imposed by and paid to  Metropolitan Council Environmental Services (MCES).  In 2022 the City sustained a 20% increase from MCES, in 2023  the City saw an 18% increase and for 2024 MCES fees are increasing 11%, with the total yearly fee amounting to  $943,318.  Staff anticipates continuing yearly fee increases from MCES for sewage treatment.  With these large  increases year after year the sewer fund has been taking some large hits and the Finance Department is recommending  an increase in the base portion of the rate schedule in order to help cover the increased charges from MCES for sewage  treatment.      The utility fund currently has 5,590 residential SAC units.  Commercial, Industrial and Institutional customers account  for 667 SAC units. In order to help cover the continued increases from MCES, the Finance Department is recommending  that the residential base amount per SAC unit be increased 7% to $74.00 per quarter, up from $69.00 per quarter.  The  Finance Department is also recommending that Commercial, Industrial and Institutional customers see a base amount  increase per SAC unit of 7%, for a base charge of $23.00 per quarter, up from $21.50 per quarter.            2024 Water and Sewer Rates Memo                                                                                          Page 2 of 2        Current  2023 Base Fee  per Quarter per SAC    Proposed  2024 Base Fee  per Quarter per SAC      %  Increase  Estimated   Additional Revenue   Generated to Cover  MCES Increases  Residential $69.00 $74.00 7% $111,800.00  Comm/Ind/Inst $21.50 $23.00 7% $4,002.00      RECOMMENDATION   Staff recommends that Council adopt the attached resolution approving the recommended rate schedule.      Upon approval, a notice of the new rates will be provided to all municipal utility customers.    ATTACHMENTS   Metropolitan Council Environmental Services 2024 Municipal Wastewater Determination     Resolution Adopting the Rate Schedule    2024 Water and Sewer Rate Schedule (year to year comparison)                            May 08, 2023 City of Hugo For 2024, the estimated wastewater service fee for your community is $943,317.89, a change of 11.23% from 2023. The table below details your wastewater flow, in millions of gallons (mg), and allocated cost of service: Community Allocation 2024 2023 2022 Metered flow (mg) 272.56 264.14 255.90 Unmetered flow (mg) 0.00 0.00 0.00 Total flow (mg) 272.56 264.14 255.90 Percent of regional flow 0.34%0.32% 0.29% Municipal wastewater charge $943,318 $848,098 $717,921 Cost change from prior 11.23%18.13% 19.54% Your fee is based on the portion of wastewater flow discharged from your community to the regional system in the past year (2022) multiplied by the regional wastewater charge for the next year (2024). Year-to-year changes are affected by growth, water conservation, and inflow and infiltration. Region 2024 2023 2022 Regional allocated flow (mg) 81,361.07 82,130.28 89,095.42 Flow change from prior -0.94%-7.82% -8.12% Regional wastewater charge $281,587,000 $263,703,000 $249,955,000 Cost change from prior 6.8%5.5% 4.0% Community Map; see next page for details. Some wastewater may enter or leave your community but not be included in the metered flow total. These unmetered flows are shown below. Assigned wastewater volumes per unit, such as single-family unit (SFU) or residential equivalent connection (REC), vary based on past flow response to wet weather, age of services, and other available data. Flow from Hugo = 0.00 mg; added to allocated flow: Flow to Hugo = 0.00 mg; deducted from allocated flow: Unmetered flow total = 0.00 mg To: Calculation/ Description 1 st Q2ndQ3rdQ4thQNotes From: Calculation/ Description 1 st Q2ndQ3rdQ4thQNotes PRELIMINAAAAA,921,AANA9.54.54%%NANANANANAed from your ed from your multiplied by theltiplied by the ar-r-toto-year ar changes cha ow and infiltrationow and infiltration. . 2002233 202022 MINMINMINMIN82,1300..2828 89,0909MIMIMIMMI--77..828%%MMMMMMM7,0007,000 $2$26363,703703,,000000 $MMMMMIMM6.8%55..55%IMIMIMYLIMLIMLIMLIMee ee ne r leaver leav your communitymuni stewater volumes per unstewater volumes per response to wet weatheresponse to wet weathe 0.0000 mgm;added toadded allocaoca oo = = 0.00000mgm;deducted feducted f etered flow totaltered flow tot = 0.0000 Calculation/ DescriptionCalculation/ Description RERRRECalculation/ Descriplculation/ DescripRRRERRRR RESOLUTION 2024 - RESOLUTION ESTABLISHING WATER AND SANITARY SEWER SERVICE RATES THE 2024 FISCAL YEAR WHEREAS, it is necessary to provide adequate revenue for water and sanitary sewer operations; and WHEREAS, the water and sanitary sewer service rates recommended herein reflect the true and actual expenses incurred by the city for the services being provided. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hugo, Minnesota, as follows: 1. The water and sanitary sewer service rates for the 2024 fiscal year, attached hereto and made a part of this resolution, are hereby approved and shall remain in effect until altered by resolution of the City Council or until otherwise altered by law. 2. The Finance Department is hereby directed to provide notice to all municipal utility customers advising them of the water and sanitary sewer service rates approved herein. Upon roll call, the following Members voting AYE: Upon roll call, the following Members voting NAY: Whereupon said resolution was declared passed and adopted this 15th day of April, 2024. ______________________________ Tom Weidt, Mayor ATTEST: __________________________ Michele Lindau, City Clerk Gallons/Qtr. Rate Gallons/Qtr. Rate Base Rate: $36.00 per quarter Base Rate: $36.00 per quarter Volume Rate: Volume Rate: 1 ‐ 11,000 $1.00 per thousand 1 ‐ 11,000 $1.00 per thousand 11,001 ‐ 20,000 $2.00 per thousand 11,001 ‐ 20,000 $2.00 per thousand 20,001 ‐ 29,000 $3.00 per thousand 20,001 ‐ 29,000 $3.00 per thousand 29,000+ $5.61 per thousand 29,000+ $5.61 per thousand Gallons/Qtr. Rate Gallons/Qtr. Rate Base Rate: $36.00 per quarter Base Rate: $36.00 per quarter Volume Rate: Volume Rate: All Gallons $2.00 per thousand All Gallons $2.00 per thousand Gallons/Qtr. Rate Gallons/Qtr. Rate Base Rate: $36.00 per quarter Base Rate: $36.00 per quarter Volume Rate: Volume Rate: 1 ‐ 5,000 $1.00 per thousand 1 ‐ 5,000 $1.00 per thousand 5,001+ $1.65 per thousand 5,001+ $1.65 per thousand Gallons/Qtr. Rate Gallons/Qtr. Rate Volume Rate: Volume Rate: All Gallons $5.61 per thousand All Gallons $6.45 per thousand Gallons/Qtr. Rate Gallons/Qtr. Rate Charge for Each SAC Unit $69.00 per quarter Charge for Each SAC Unit $74.00 per quarter Single Family = 1 SAC Unit Single Family = 1 SAC Unit Multi‐Family = 1 SAC Unit per Dwelling Multi‐Family = 1 SAC Unit per Dwelling Volume Rate: Volume Rate: 1 ‐ 9,000 No Charge 1 ‐ 9,000 No Charge 9,001+ $2.09 per thousand 9,001+ $2.09 per thousand Gallons/Qtr. Rate Gallons/Qtr. Rate Charge for Each SAC Unit $21.50 per quarter Charge for Each SAC Unit $23.00 per quarter SAC Units Vary by Building SAC Units Vary by Building Volume Rate: Volume Rate: 1 ‐ 3,000 No Charge 1 ‐ 3,000 No Charge 3,000+ $2.09 per thousand 3,000+ $2.09 per thousand 2023 Multi‐Family Residential Water 2024 Multi‐Family Residential Water City of Hugo Utility Rates Effective January 1, 2024 2023 Rates 2024 Rates 2023 Single‐Family Residential Water 2024 Single‐Family Residential Water 2023 Commercial, Industrial and Institutional Water 2024 Commercial, Industrial and Institutional Water 2023 Irrigation (Metered Separately) 2024 Irrigation (Metered Separately) 2023 Residential Sewer 2024 Residential Sewer April, 2023 (for the January, February and March Quarter) April, 2024 (for the January, February and March Quarter) The number of gallons charged for residential sewer service shall be the same for all quarters and shall be determined by the amount of water used during the winter quarter (January, February and March) 2023 Commercial, Industrial and Institutional Sewer 2024 Commercial, Industrial and Institutional Sewer 2023 rates will first apply to the bill you receive in 2024 rates will first apply to the bill you receive in                                                                             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, Finance Director  SUBJECT: Master Service Agreement with Baker Tilly for Municipal Advisory Services  DATE: For the City Council Meeting of April 15, 2024  DESIRED COUNCIL ACTION Approve Master Service Agreement (MSA) with Baker Tilly for Municipal Advisory Services and authorize the City  Administrator to execute the agreement.    AGREEMENT The MSA clarifies what services will be provided, upon request, to the City of Hugo and sets the level of compensation  for the following five primary services:    1) General Municipal Advisory Services  2) Securities Issuance  3) Arbitrage Monitoring Services  4) Continuing Disclosure Services  5) Housing and Economic Development Services (Tax Increment Financing and Tax Abatement)    REASON FOR AGREEMENT   Following the Great Recession of 1998, Congress approved legislation commonly called the Dodd‐Frank Wall Street  Reform and Consumer Protection Act.  The legislation requires that municipal advisors be registered with the Securities  and Exchange Commission, as well as disclose to their municipal clients what services they provide and the cost of such  services.      The City of Hugo entered into a contract with Baker Tilly (formerly Springsted Incorporated) on July 21, 2017 for  municipal advisory services including debt issuance, arbitrage calculation and continuing disclosure.  With the long lag  between contract updates and current inflationary pressures, Baker Tilly has been rolling out new Master Service  Agreements for Municipal Advisory Services with updated contract fees.     LENGTH OF AGREEMENT   The MSA will remain in place until terminated by either party, for any reason, upon reasonable advance written notice  to the other party.     RECOMMENDATION The City Attorney has reviewed the proposed MSA and the Finance Department recommends City Council approve the  Master Service Agreement with Baker Tilly for Municipal Advisory Services and authorize the City Administrator to  execute the agreement.    ATTACHMENT Master Service Agreement including Engagement Letter and Scope Appendix.    City of Hugo, Minnesota Engagement Letter, dated January 25, 2024 Page 1 | 18 January 25, 2024 City of Hugo, Minnesota Attn: Ms. Anna Wobse, Finance Director 14669 Fitzgerald Avenue North Hugo, MN 55038 RE: Engagement Letter Agreement Related to Services This letter agreement (the Engagement Letter) is to confirm our understanding of the basis upon which Baker Tilly US, LLP (Baker Tilly) and its affiliates are being engaged by the City of Hugo, Minnesota (the Client) to assist the Client with advisory services. Scope, Objectives and Approach It is anticipated that projects undertaken in accordance with this Engagement Letter will be at the request of the Client. The scope of services, additional terms and associated fee for individual engagements will be contained in a Scope Appendix or Appendices to this Engagement Letter. Authorization to provide services will commence upon execution and return of this Engagement Letter and one or more Appendices. Management's Responsibilities It is understood that Baker Tilly will serve in an advisory capacity with the Client. The Client is responsible for management decisions and functions, and for designating an individual with suitable skill, knowledge or experience to oversee the services we provide. The Client is responsible for evaluating the adequacy and results of the services performed and accepting responsibility for such services. The Client is responsible for establishing and maintaining internal controls, including monitoring ongoing activities. The procedures we perform in our engagement will be heavily influenced by the representations that we receive from Client personnel. Accordingly, false representations could cause material errors to go undetected. The Client, therefore, agrees that Baker Tilly will have no liability in connection with claims based upon our failure to detect material errors resulting from false representations made to us by any Client personnel and our failure to provide an acceptable level of service due to those false representations. The ability to provide service according to timelines established and at fees indicated will rely in part on receiving timely responses from the Client. The Client will provide information and responses to deliverables within the timeframes established in a Scope Appendix unless subsequently agreed otherwise in writing. The responsibility for auditing the records of the Client rests with the Client’s separately retained auditor and the work performed by Baker Tilly shall not include an audit or review of the records or the expression of an opinion on financial data. Baker Tilly US, LLP 30 East Seventh Street Suite 3025 Saint Paul, MN 55101 651-223-3086 bakertilly.com City of Hugo, Minnesota Engagement Letter, dated January 25, 2024 Page 2 | 18 Ownership of Intellectual Property Unless otherwise stated in a specific Scope Appendix, subject to Baker Tilly’s rights in Baker Tilly’s Knowledge (as defined below), Client shall own all intellectual property rights in the deliverables developed under the applicable Scope Appendix or Appendices ("Deliverables"). Notwithstanding the foregoing, Baker Tilly will maintain all ownership right, title and interest to all Baker Tilly’s Knowledge. For purposes of this Agreement “Baker Tilly’s Knowledge” means Baker Tilly’s proprietary programs, modules, products, inventions, designs, data, or other information, including all copyright, patent, trademark and other intellectual property rights related thereto, that are (1) owned or developed by Baker Tilly prior to the Effective Date of this Agreement or the applicable Scope Appendix or Appendices (“Baker Tilly’s Preexisting Knowledge”) (2) developed or obtained by Baker Tilly after the Effective Date, that are reusable from client to client and project to project, where Client has not paid for such development; and (3) extensions, enhancements, or modifications of Baker Tilly’s Preexisting Knowledge which do not include or incorporate Client’s confidential information. To the extent that any Baker Tilly Knowledge is incorporated into the Deliverables, Baker Tilly grants to Client a non- exclusive, paid up, perpetual royalty-free worldwide license to use such Baker Tilly Knowledge in connection with the Deliverables, and for no other purpose without the prior written consent of Baker Tilly. Additionally, Baker Tilly may maintain copies of its work papers for a period of time and for use in a manner sufficient to satisfy any applicable legal or regulatory requirements for records retention. The supporting documentation for this engagement, including, but not limited to work papers, is the property of Baker Tilly and constitutes confidential information. We may have a responsibility to retain the documentation for a period of time sufficient to satisfy any applicable legal or regulatory requirements for records retention. If we are required by law, regulation or professional standards to make certain documentation available to required third parties, the Client hereby authorizes us to do so. Timing and Fees Specific services will commence upon execution and return of a Scope Appendix to this Engagement Letter or no later than March 1, 2024, and our professional fees will be based on the rates outlined in such Scope Appendix. Payment of professional fees is not contingent upon project completion by Client nor material timing changes in project completion. Professional fees provided according to the Scope Appendix are due within 30 days of being invoiced, regardless of project status. If necessary, monthly payment plan arrangements may be negotiated upon request. Unless otherwise stated, in addition to the fees described in a Scope Appendix the Client will pay all of Baker Tilly’s reasonable out-of-pocket expenses incurred in connection with the engagement. All out of pocket costs will be passed through at cost and will be in addition to the professional fee. Dispute Resolution Except for disputes related to confidentiality or intellectual property rights, all disputes and controversies between the parties hereto of every kind and nature arising out of or in connection with this Engagement Letter or the applicable Scope Appendix or Appendices as to the existence, construction, validity, interpretation or meaning, performance, nonperformance, enforcement, operation, breach, continuation, or termination of this Agreement or the applicable Scope Appendix or Appendices as shall be resolved as set forth in this section using the following procedure: In the unlikely event that differences concerning the services or fees provided by Baker Tilly should arise that are not resolved by mutual agreement, both parties agree to attempt in good faith to settle the dispute by engaging in mediation administered by the American Arbitration Association under its mediation rules for professional accounting and related services disputes before resorting to litigation or any other dispute resolution procedure. Each party shall bear their own expenses from mediation and the fees and expenses of the mediator shall be shared equally by the parties. If the dispute is not resolved by mediation, then the parties agree to expressly waive trial by jury in any judicial proceeding City of Hugo, Minnesota Engagement Letter, dated January 25, 2024 Page 3 | 18 involving directly or indirectly, any matter (whether sounding in tort, contract, or otherwise) in any way arising out of, related to, or connected with this Agreement or the applicable Scope Appendix or Appendices as or the relationship of the parties established hereunder. Because a breach of any the provisions of this Engagement Letter or the applicable Scope Appendix or Appendices as concerning confidentiality or intellectual property rights will irreparably harm the non- breaching party, Client and Baker Tilly agree that if a party breaches any of its obligations thereunder, the non-breaching party shall, without limiting its other rights or remedies, be entitled to seek equitable relief (including, but not limited to, injunctive relief) to enforce its rights thereunder, including without limitation protection of its proprietary rights. The parties agree that the parties need not invoke the mediation procedures set forth in this section in order to seek injunctive or declaratory relief. Limitation on Damages To the extent allowed under applicable law, the aggregate liability (including attorney’s fees and all other costs) of either party and its present or former partners, principals, agents or employees to the other party related to the services performed under an applicable Scope Appendix or Appendices shall not exceed the fees paid to Baker Tilly under the applicable Scope Appendix or Appendices to which the claim relates, except to the extent finally determined to have resulted from the gross negligence, willful misconduct or fraudulent behavior of the at-fault party. Additionally, in no event shall either party be liable for any lost profits, lost business opportunity, lost data, consequential, special, incidental, exemplary or punitive damages, delays or interruptions arising out of or related to this Engagement Letter or the applicable Scope Appendix or Appendices as even if the other party has been advised of the possibility of such damages. Each party recognizes and agrees that the warranty disclaimers and liability and remedy limitations in this Engagement Letter are material bargained for bases of this Engagement Letter and that they have been taken into account and reflected in determining the consideration to be given by each party under this Engagement Letter and in the decision by each party to enter into this Engagement Letter. The terms of this section shall apply regardless of the nature of any claim asserted (including, but not limited to, contract, tort or any form of negligence, whether of you, Baker Tilly or others), but these terms shall not apply to the extent finally determined to be contrary to the applicable law or regulation. These terms shall also continue to apply after any termination of this Engagement Letter. You accept and acknowledge that any legal proceedings arising from or in conjunction with the services provided under this Engagement Letter must be commenced within twelve (12) months after the performance of the services for which the action is brought, without consideration as to the time of discovery of any claim. Other Matters E-Verify Program Baker Tilly participates in the E-Verify program. For the purpose of this paragraph, the E-Verify program means the electronic verification of the work authorization program of the Illegal Immigration Reform and Immigration Responsibility Act of 1996 (P.L. 104-208), Division C, Title IV, s.401(a), as amended, operated by the United States Department of Homeland Security or a successor work authorization program designated by the United States Department of Homeland Security or other federal agency authorized to verify the work authorization status of newly hired employees under the Immigration Reform and Control Act of 1986 (P.L. 99-603). Baker Tilly does not employ any “unauthorized aliens” as that term is defined in 8 U.S.C. 1324a(h)(3). Investments Baker Tilly certifies that pursuant to I.C. 5-22-16.5 et seq. Baker Tilly is not now engaged in investment activities in Iran. Baker Tilly understands that providing a false certification could result in the fines, penalties, and civil action listed in I.C. 5-22-16.5-14. City of Hugo, Minnesota Engagement Letter, dated January 25, 2024 Page 4 | 18 Non-Discrimination Pursuant to I.C. §22-9-1-10, Baker Tilly and its subcontractors, if any, shall not discriminate against any employee or applicant for employment to be employed in the performance of this Engagement Letter, with respect to hire, tenure, terms, conditions or privileges of employment or any matter directly or indirectly related to employment, because of race, religion, color, sex, disability, national origin, ancestry, or veteran status. Breach of this covenant may be regarded as a material breach of this Engagement Letter. Baker Tilly certifies that, except for de minimis and non-systematic violations, it has not violated the terms of I.C. 24-4.7, I.C. 24-5-12, or I.C. 24-5-14 in the previous three hundred sixty-five (365) days, even if I.C. 24-4.7 is preempted by federal law, and that Baker Tilly will not violate the terms of I.C. 24- 4.7 for the duration of the Engagement Letter, even if I.C. 24-4.7 is preempted by federal law. Baker Tilly further certifies that any affiliate or principal of Baker Tilly and any agent acting on behalf of Baker Tilly or on behalf of any affiliate or principal of Baker Tilly, except for de minimis and non-systematic violations, has not violated the terms of I.C. 24-4.7 in the previous three hundred sixty-five (365) days, even if I.C. 24-4.7 is preempted by federal law, and will not violate the terms of I.C. 24-4.7 for the duration of the Engagement Letter, even if I.C. 24-4.7 is preempted by federal law. Anti-Nepotism The Firm is aware of the provisions under I.C. 36-1-21 et seq. with respect to anti-nepotism in contractual relationships with governmental entities. The Firm is not aware of any relative (as defined in I.C. 36-1-21-3) of any elected official (as defined in I.C. 36-1-21-2) of the Client who is an owner or an employee of the Firm. In the event Baker Tilly is requested by the Client; or required by government regulation, subpoena, or other legal process to produce our engagement working papers or its personnel as witnesses with respect to its Services rendered for the Client, so long as Baker Tilly is not a party to the proceeding in which the information is sought, Client will reimburse Baker Tilly for its professional time and expenses, as well as the fees and legal expenses incurred in responding to such a request. Neither this Engagement Letter, any claim, nor any rights or licenses granted hereunder may be assigned, delegated, or subcontracted by either party without the ‘written consent of the other party. Either party may assign and transfer this Engagement Letter to any successor that acquires all or substantially all of the business or assets of such party by way of merger, consolidation, other business reorganization, or the sale of interest or assets, provided that the party notifies the other party in writing of such assignment and the successor agrees in writing to be bound by the terms and conditions of this Engagement Letter. In the event that any provision of this Engagement Letter or statement of work contained in a Scope Appendix hereto is held by a court of competent jurisdiction to be unenforceable because it is invalid or in conflict with any law of any relevant jurisdiction, the validity of the remaining provisions shall not be affected, and the rights and obligations of the parties shall be construed and enforced as if the Engagement Letter or statement of work did not contain the particular provisions held to be unenforceable. The unenforceable provisions shall be replaced by mutually acceptable provisions which, being valid, legal and enforceable, come closest to the intention of the parties underlying the invalid or unenforceable provision. If the Services should become subject to the independence rules of the U.S. Securities and Exchange Commission with respect to Client, such that any provision of this Engagement Letter would impair Baker Tilly’s independence under its rules, such provision(s) shall be of no effect. All non-municipal advisory services provided hereunder shall be performed in accordance with the professional standards of the Baker Tilly affiliate that performs the services and may not create a fiduciary relationship between the Baker Tilly affiliate and the Client. City of Hugo, Minnesota Engagement Letter, dated January 25, 2024 Page 5 | 18 Termination Both the Client and Baker Tilly have the right to terminate this Engagement Letter, or any work being done under an individual Scope Appendix at any time after reasonable advance written notice. On termination, all fees and charges incurred prior to termination shall be paid promptly. Unless otherwise agreed to by the Client and Baker Tilly, the scope of services provided in a Scope Appendix will terminate 60 days after completion of the services in such Appendix. Important Disclosures Incorporated as Attachment A and part of this Engagement Letter are important disclosures. These include disclosures that apply generally and those that are applicable in the event Baker Tilly is engaged to provide municipal advisory services. This Engagement Letter, including the attached Disclosures as updated from time to time, comprises the complete and exclusive statement of the agreement between the parties, superseding all proposals, oral or written, and all other communications between the parties. Both parties acknowledge that work performed pursuant to the Engagement Letter will be done through Scope Appendices executed and made a part of this document. Any rights and duties of the parties that by their nature extend beyond the expiration or termination of this Engagement Letter shall survive the expiration or termination of this Engagement Letter or any statement of work contained in a Scope Appendix hereto. If this Engagement Letter is acceptable, please sign below and return one copy to us for our files. Sincerely, Elizabeth Bergman, Principal Signature Section: The terms as set forth in this Engagement Letter are agreed to on behalf of the Client by: Name: _______________________________ Title: _______________________________ Date: _______________________________ City of Hugo, Minnesota Engagement Letter, dated January 25, 2024 (Attachment A) Page 6 | 18 Attachment A Important Disclosures Non-Exclusive Services Client acknowledges and agrees that Baker Tilly and its affiliates, including but not limited to Baker Tilly US, LLP, Baker Tilly Municipal Advisors, LLC, Baker Tilly Capital, LLC, and Baker Tilly Wealth Management, LLC, is free to render municipal advisory and other services to the Client or others and that Baker Tilly does not make its services available exclusively to the Client. Affiliated Entities Baker Tilly US, LLP is an independent member of Baker Tilly International. Baker Tilly International Limited is an English company. Baker Tilly International provides no professional services to clients. Each member firm is a separate and independent legal entity and each describes itself as such. Baker Tilly US, LLP is not Baker Tilly International’s agent and does not have the authority to bind Baker Tilly International or act on Baker Tilly International’s behalf. None of Baker Tilly International, Baker Tilly US, LLP, nor any of the other member firms of Baker Tilly International has any liability for each other’s acts or omissions. The name Baker Tilly and its associated logo is used under license from Baker Tilly International Limited. Baker Tilly Wealth Management, LLC (“BTWM”), a U.S. Securities and Exchange Commission (“SEC”) registered investment adviser, may provide services to the Client in connection with the investment of proceeds from an issuance of securities. In such instances, services will be provided under a separate engagement, for an additional fee. Notwithstanding the foregoing, Baker Tilly may act as solicitor for and recommend the use of BTWM, but the Client shall be under no obligation to retain BTWM or to otherwise utilize BTWM relative to Client’s investments. The fees paid with respect to investment services are typically based in part on the size of the issuance proceeds and Baker Tilly may have incentive to recommend larger financings than would be in the Client’s best interest. Baker Tilly will manage and mitigate this potential conflict of interest by this disclosure of the affiliated entity’s relationship, a Solicitation Disclosure Statement when Client retains BTWM’s services. Baker Tilly Capital, LLC (“BTC”) is a limited service broker-dealer specializing in merger and acquisition, capital sourcing, project finance and corporate finance advisory services. BTC does not participate in any municipal offerings advised on by its affiliate Baker Tilly Municipal Advisors. Any services provided to Client by BTC would be done so under a separate engagement for an additional fee. Baker Tilly Municipal Advisors (“BTMA”) is registered as a “municipal advisor” pursuant to Section 15B of the Securities Exchange Act and rules and regulations adopted by the SEC and the Municipal Securities Rulemaking Board (“MSRB”). As such, BTMA may provide certain specific municipal advisory services to the Client. BTMA is neither a placement agent to the Client nor a broker/dealer. The offer and sale of any bonds is made by the Client, in the sole discretion of the Client, and under its control and supervision. The Client acknowledges that BTMA does not undertake to sell or attempt to sell bonds or other debt obligations and will not take part in the offer or sale thereof. Baker Tilly, may provide services to the Client in connection with human resources consulting, including, but not limited to, executive recruitment, talent management and community survey services. In such instances, services will be provided under a separate scope of work for an additional fee. Certain executives of the Client may have been hired after the services of Baker Tilly were utilized and may make decisions about whether to engage other services of Baker Tilly or its affiliates. Notwithstanding the foregoing, Baker Tilly may recommend the use of Baker Tilly or a subsidiary, but the Client shall be under no obligation to retain Baker Tilly or an affiliate or to otherwise utilize either relative to the Client’s activities. City of Hugo, Minnesota Engagement Letter, dated January 24, 2025 (Attachment A) Page 7 | 18 (MSAAppAV20200825) Conflict Disclosure Applicable to Municipal Advisory Services Provided by BTMA Legal or Disciplinary Disclosure. BTMA is required to disclose to the SEC information regarding criminal actions, regulatory actions, investigations, terminations, judgments, liens, civil judicial actions, customer complaints, arbitrations and civil litigation involving BTMA. Pursuant to MSRB Rule G-42, BTMA is required to disclose any legal or disciplinary event that is material to the Client’s evaluation of BTMA or the integrity of its management or advisory personnel. There are no criminal actions, regulatory actions, investigations, terminations, judgments, liens, civil judicial actions, customer complaints, arbitrations or civil litigation involving BTMA. Copies of BTMA filings with the SEC can currently be found by accessing the SEC’s EDGAR system Company Search Page which is currently available at https://www.sec.gov/edgar/searchedgar/companysearch.html and searching for either Baker Tilly Municipal Advisors, LLC or for our CIK number which is 0001616995. The MSRB has made available on its website (www.msrb.org) a municipal advisory client brochure that describes the protections that may be provided by MSRB rules and how to file a complaint with the appropriate regulatory authority. Contingent Fee. The fees to be paid by the Client to BTMA are or may be based on the size of the transaction and partially contingent on the successful closing of the transaction. Although this form of compensation may be customary in the municipal securities market, it presents a conflict because BTMA may have an incentive to recommend unnecessary financings, larger financings or financings that are disadvantageous to the Client. For example, when facts or circumstances arise that could cause a financing or other transaction to be delayed or fail to close, BTMA may have an incentive to discourage a full consideration of such facts and circumstances, or to discourage consideration of alternatives that may result in the cancellation of the financing or other transaction. Hourly Fee Arrangements. Under an hourly fee form of compensation, BTMA will be paid an amount equal to the number of hours worked multiplied by an agreed upon billing rate. This form of compensation presents a potential conflict of interest if BTMA and the Client do not agree on a maximum fee under the applicable Appendix to this Engagement Letter because BTMA will not have a financial incentive to recommend alternatives that would result in fewer hours worked. In addition, hourly fees are typically payable by the Client whether or not the financing transaction closes. Fixed Fee Arrangements. The fees to be paid by the Client to BTMA may be in a fixed amount established at the outset of the service. The amount is usually based upon an analysis by the Client and BTMA of, among other things, the expected duration and complexity of the transaction and the work documented in the Scope Appendix to be performed by Baker Tilly. This form of compensation presents a potential conflict of interest because, if the transaction requires more work than originally contemplated, Baker Tilly may suffer a loss. Thus, Baker Tilly may recommend less time-consuming alternatives, or fail to do a thorough analysis of alternatives. BTMA manages and mitigates conflicts related to fees and/or other services provided primarily through clarity in the fee to be charged and scope of work to be undertaken and by adherence to MSRB Rules including, but not limited to, the fiduciary duty which it owes to the Client requiring BTMA to put the interests of the Client ahead of its own and BTMA’s duty to deal fairly with all persons in its municipal advisory activities. To the extent any additional material conflicts of interest have been identified specific to a scope of work the conflict will be identified in the respective Scope Appendix. Material conflicts of interest that arise after the date of a Scope Appendix will be provide to the Client in writing at that time. SCOPE APPENDIX to Engagement Letter dated: January 25, 2024 Between the City of Hugo, Minnesota and Baker Tilly US, LLP (Scopev20230309) Page SA - 8 | 18 RE: Municipal Advisory Services - Debt Issuance, Arbitrage, Continuing Disclosure DATE: January 25, 2024 This Scope Appendix is attached by reference to the above-named engagement letter (the Engagement Letter) between the City of Hugo, Minnesota (the Client) and Baker Tilly US, LLP and relates to services to be provided by Baker Tilly Municipal Advisors, LLC. SCOPE OF WORK Baker Tilly Municipal Advisors, LLC (BTMA) will perform the following services: A. General Municipal Advisory Services Unless otherwise agreed to by the parties, in connection with any request for services relative to any financial topic, new project concept planning or other financially related topic or project (each referred to herein as a Project), BTMA shall perform the following services, as applicable: 1. Provide general financial advice relative to a Project. 2. Survey the resources available to determine the financial feasibility of a Project. 3. Assist in the development of a plan including alternative approaches for a particular Project that may be available and appropriate for such Project. 4. Assist the Client in selecting an approach for a Project. 5. Advise the Client generally on current market conditions, financial impacts of federal, state or other laws, and other general information and economic data that might be relevant to a Project. 6. Assist Client, as requested, in identifying other professional services that may be necessary to a Project. 7. Assist Client in coordinating the activities of the working group for a Project as needed. 8. Assist with the review of documents provided that are relevant to the development of a plan and alternative approaches for a Project. 9. Assist the Client with other components of a Project as requested and agreed upon. B. Securities Issuance Unless otherwise agreed to by the parties, in connection with any request for services relative to any debt issuance including modifying or refunding of a prior issuance or other financings (each referred to herein as a “Transaction”), BTMA shall perform the following services, as applicable: 1. Develop a preliminary estimate of project costs and provide a financial feasibility to assist the Client in its determination of what type of financing is most suitable to meet the needs of the Client for the particular issuance (“Debt Obligation”). 2. Assist the Client in determination of an appropriate method of sale for the Debt Obligation (e.g. competitive, negotiated, private placement.) 3. Provide for the Client’s consideration an amount, the security, maturity structure, call provisions, estimated pricing, and other terms and conditions of the Debt Obligation. 4. Advise the Client on current market conditions, financial impacts of federal, state or other laws, and other general information and economic data that might normally be expected to influence the ability to borrow or interest rates of the Debt Obligation. SCOPE APPENDIX to Engagement Letter dated: January 25, 2024 Between the City of Hugo, Minnesota and Baker Tilly US, LLP (Scopev20230309) Page SA - 9 | 18 5. Assist the Client in the analysis of advisability of securing a credit rating, and the selection of a credit rating firm or firms for the Debt Obligation and further assist in the development and presentation of information to obtain a credit rating or credit ratings for the Debt Obligation. 6. Assist the Client in the analysis of utilizing credit enhancement and provide assistance in seeking such credit enhancement if such credit enhancements would be advantageous to the Client. 7. Assist Client in coordinating the financing activities between various parties to any Transaction as needed. 8. Assist Client in identifying other professional services that may be necessary for the issuance or post-issuance requirements of the Debt Obligation. 9. Assist the Client in connection with the preparation, composition, review and distribution of an offering document (e.g. Preliminary and Final Official Statement, Offering Circular, Term Sheet, or Private Placement Memorandum, as applicable) of the type and nature generally prepared in connection with the sale of municipal securities, which will disclose technical data, information and schedules relating to the Client, the project and the Debt Obligation. 10. Provide relevant information for and assist with the review of other primary financing documents, including but not limited to the relevant governing body issuance resolutions/ordinances, bond purchase agreement, closing documents, and official notice of sale. 11. Communicate with potential underwriters or investors, as appropriate to any Transaction, to ensure that each is furnished with information the Client has deemed to be material in order to render an independent, informed purchase or investment decision concerning the Client’s proposed financing. 12. Facilitate the sale of Debt Obligations through receipt and analysis of bids in a competitive sale or analysis of pricing and terms offered by an underwriter or purchaser in a negotiated or private placement sale. 13. Coordinate with the proper parties to ensure the efficient delivery of the Debt Obligations to the applicable purchaser and receipt of proceeds. C. Arbitrage Monitoring Services BTMA shall, based on information supplied by Client, make arbitrage calculations (to include for purposes of this document, rebate and yield reduction calculations) required by Section 148 of the Internal Revenue Service (IRS) Code and related U.S. Treasury regulations with respect to specified Debt Obligations for the reporting period designated for any such Debt Obligation. Annually, BTMA will provide the Client with a listing of the specified Debt Obligations and the reporting period designated for any such Debt Obligation (an Authorization Listing) to confirm the scope of the ongoing arbitrage monitoring services. Exhibit A reflects the Authorization Listing as of the date of this Scope Appendix. In carrying out its duties, BTMA shall periodically, for each specified Debt Obligation: 1. Determine the arbitrage yield limit on the applicable Debt Obligation; 2. Determine the amount of any arbitrage payment due the IRS while taking into consideration applicable exceptions; 3. Notify Client and/or its designee of any liability amount; 4. Prepare for submission by Client the form(s) with which to submit any payment amount due to the IRS at the appropriate intervals throughout the term of the engagement relative to each specified Debt Obligation. SCOPE APPENDIX to Engagement Letter dated: January 25, 2024 Between the City of Hugo, Minnesota and Baker Tilly US, LLP (Scopev20230309) Page SA - 10 | 18 Client agrees to timely provide BTMA with accurate information concerning cash and investment activity within all funds relative to the subject Debt Obligations. The information to be provided shall include: 1. Deposits and withdrawals of proceeds or money from other sources within any funds subject to the IRS arbitrage rules; 2. Payments of principal and interest on the Debt Obligations; and 3. All investment activity including: a. Date of purchase or acquisition; b. Purchase price of investments including any accrued interest; c. Face amount and maturity date; d. Stated rate of interest; e. Interest payment dates; f. Date of sale, transfer, or other disposition; g. Sale or disposition price; and h. Accrued interest due on the date of sale or disposition. 4. The Client will provide copies of Debt Obligation offering or legal documents, including, but not limited to, the official statement, the information return filed upon issuance (Form 8038 or 8038-G), the arbitrage certificate, verification report and the bond ordinance/trust indenture. 5. Any other information necessary for BTMA to make the calculations required for the specified Debt Obligation. The Client is responsible for annually confirming the Authorization Listing and for notifying BTMA of any of the following: > additional or subsequent Debt Obligations that would require arbitrage monitoring services; > redemptions/refundings of Debt Obligations that would affect the reporting period designated in the most recent Authorization Listing. Our engagement will not include verifying that: proceeds were used for purpose expenditures; investments were purchased at market price; no amounts were paid to any party in order to reduce the yield on any investment; the Debt Obligation was appropriately structured or qualified as a tax-exempt offering; or information provided to us is complete and accurate. During the performance of these procedures, it may become necessary for us to consult with your bond counsel and/or obtain information from them concerning interpretations of the above information as affected by applicable sections of the Internal Revenue Code. We will consult with you before any such action is initiated. Subsequent changes in official interpretations of the tax law may require or permit revision of calculations by requiring or permitting a different methodology for the calculation of arbitrage rebate and yield reduction. We will be under no obligation to update our report for any events occurring, or data or information coming to our attention, subsequent to the issuance of our report. Calculation and payment of any arbitrage rebate liability and yield reduction payment due is the responsibility of the Client. As such, management has the primary responsibility for the arbitrage rebate and/or yield reduction payment return which the Client may be required to file. You should review the report and calculations carefully upon receipt. SCOPE APPENDIX to Engagement Letter dated: January 25, 2024 Between the City of Hugo, Minnesota and Baker Tilly US, LLP (Scopev20230309) Page SA - 11 | 18 D. Continuing Disclosure Services BTMA will commence continuing disclosure services for debt obligations as set forth in any continuing disclosure undertaking for the debt obligations that the Client will execute upon settlement. Annually, BTMA will check in with the Client to confirm the engagement for the next annual reporting period. In carrying out its duties, BTMA shall do the following: 1. Preparation and filing of annual reporting. The Client will provide BTMA with a copy of each executed Continuing Disclosure Undertaking (CDU) including master and supplemental CDUs if any. BTMA will: a. Identify the Client's reporting obligations, compile and prepare, as needed, any necessary operating data, and file any required annual report and financial statements, including the audit as provided for in each CDU for the reporting period; b. Provide to the Municipal Securities Rulemaking Board ("MSRB") through its Electronic Municipal Market Access System ("EMMA"), the annual information required under each respective CDU; and c. Provide additional reporting to purchasers, as set forth in Debt Obligation documents or private agreements: 2. Assistance filing reportable events on EMMA Upon notification of one of the events listed as set forth in each CDU (collectively, Reportable Events), BTMA will assist the Client with filing any Reportable Events. Most Reportable Events are required by the Rule to be filed within ten business days of the occurrence of such event. Client will notify BTMA as soon as possible when they believe a reportable event has or may have occurred to enable BTMA to file a timely notice on EMMA. It is the Client’s sole responsibility to notify BTMA of the potential occurrence of a Reportable Event. 3. Five-year Compliance Check At the time any Debt Obligations subject to the Rule are issued, the Client must disclose in its official statement any instances in the past five years it failed to comply, in all material respects, with any previous undertakings for Debt Obligations which were subject to the Rule. BTMA will: a. Compile reporting requirements for any Debt Obligations that were outstanding during the five- year period and assess all financial data, operating data, and reportable event filings made for each applicable debt obligation. If necessary, at the time that BTMA conducts services annually under Item 1, BTMA will update the five-year compliance check. b. If a deficiency is found and the debt obligation(s) remain outstanding at the time of BTMA’s compliance check, BTMA will prepare any necessary reporting or notices to meet the CDU obligations. BTMA will provide the Client with documentation that the EMMA filing has been completed. Client agrees to provide BTMA with the audit and accurate information with respect to compiling the annual report in a timely manner and to fully disclose to BTMA any Reportable Events as they occur. SCOPE APPENDIX to Engagement Letter dated: January 25, 2024 Between the City of Hugo, Minnesota and Baker Tilly US, LLP (Scopev20230309) Page SA - 12 | 18 4. EMMA Issuer Homepage (Upon request. Hourly rates will apply.) BTMA will assist the Client on the creation of an Issuer Homepage on EMMA where Client and related entity filings may be shown. The Client will have the option to review the Homepage and provide additional information related to the Client. 5. Other post issuance services (Upon Request. Hourly rates will apply.) If requested, BTMA will provide to the Client other post issuance services including, but not limited to, consultation related to disclosure operating procedures, post issuance policies and procedures, and debt management. E. Housing and Economic Development Services 1. Preparation of preliminary tax increment or tax abatement revenues projections for proposed new project. Estimation of future values and tax increments for a targeted area. Forecast the projected tax increment revenues to be generated over the life of the district based on those assumptions. Estimated range of available revenues based on valuations. 2. Assist Client with establishment of tax increment financing (TIF) district including drafting of TIF Plan and required notifications, presentations and attendance at workshops and/or public hearings, etc. 3. Assist Client with the creation of tax abatement, identification of tax abatement properties, drafting of required notice(s) and supporting documentation, presentations and attendance at workshops and/or public hearings, etc. 4. Assist Client with incentive portfolio development and potential for availability of financing tools including review of federal, state, and local tax credits and incentives available. 5. Assist Client with financial needs (But-For) analysis through review of developer information and determination on the reasonableness of assumptions. In certain cases, suggest alternative assumptions and provide sensitivity analysis, as necessary. 6. Assist Client with completion of rate of return calculation including Cash-on-Cash Return and Internal Rate of Return. Assist Client with defining appropriate level of assistance based on developer’s rates of return comparing developer rate of return to the “market” return for similar projects, commenting on reasonableness of return considering type of project, current market and developer at risk equity. 7. Assist Client with negotiating public assistance agreements with developers. 8. Provide financial feasibility review to assist Client with assessment of the sufficiency of tax increment/tax abatement and other available revenues to support total project costs based on developer-provided total development costs and project assumptions. As necessary, suggest alternative assumptions and provide sensitivity analysis to assess sufficiency of tax increment or tax abatement revenues to support costs with considerations for timing of financing needs to provide financial support. Prepare cash flow analysis based on sensitivity analysis. 9. Provide background developer reviews to assist Client with learning more about prospective developers by performing in-depth business credit analyses, evaluating market conditions, assessing proposed business plans, and checking credentials and references. 10. Preparation of tax increment financing (TIF) management program to assist Client with analysis of existing TIF districts that includes an overview of current district status, preparation of cash flow analysis, suggestions for ongoing administrative goals, and recommendations for future opportunities or required compliance items. SCOPE APPENDIX to Engagement Letter dated: January 25, 2024 Between the City of Hugo, Minnesota and Baker Tilly US, LLP (Scopev20230309) Page SA - 13 | 18 11. Preparation of annual reports to assist Client with meeting annual compliance requirements and filing submission deadlines. 12. Assist Client with estimation of economic impacts of proposed developments including cost-benefit and/or net benefit analysis. 13. Assist Client with other components of a housing and economic development project as requested and agreed upon. SCOPE APPENDIX to Engagement Letter dated: January 25, 2024 Between the City of Hugo, Minnesota and Baker Tilly US, LLP (Scopev20230309) Page SA - 14 | 18 COMPENSATION AND INVOICING A. Compensation for services relating to debt obligations 1. Fees for Services a) General obligation debt: b) The foregoing schedule shall apply to the total Par amount as indicated in the Preliminary Official Statement or Terms of Offering. c) The foregoing schedule shall include BTMA's services through closing of a Debt Obligation. If BTMA performs post-closing services relative to a Debt Obligation, it shall be compensated for such services at the hourly rates set out in Section B herein. d) Non ad valorem supported debt and advance refundings, shall be compensated at 1.35 times the fee set out in paragraph 1.a. above. e) Debt Obligations dependent on successful referenda, including GO sales tax revenue, shall be compensated at 1.25 times the fee set out in paragraph 1.a. above. f) In the event it is necessary for BTMA to repeat Debt Obligation services because of events beyond BTMA's control, BTMA shall be compensated for such repetitive services at the hourly rates set in paragraph B herein. BTMA shall not be entitled to compensation under this section for failed referenda unless otherwise provided by agreement between the Client and BTMA. g) Fee schedule and billing rates are subject to change periodically due to changing requirements and economic conditions. Baker Tilly will notify Client thirty (30) days in advance of any change to fees. If Client does not dispute such change in fees within that thirty (30) day period, Client will be deemed to have accepted such change. The fees billed will be the fees in place at the time services are provided. Actual fees will be based upon experience of the staff assigned and the complexity of the engagement. h) BTMA's fees shall be payable as follows: (1) Except as specified elsewhere in this section, for a Debt Obligation, fees are due upon closing of the Debt Obligation, except that if the Debt Obligation is awarded but cannot be closed by reason of an error, act or omission of the Client, BTMA shall be paid the amount which it would have been due upon closing. (2) If an issuance is awarded and does not close for a reason that is beyond the control of the Client and without fault of the Client, then BTMA shall be compensated at one-half the amount which would have been due upon closing. (3) If a Client Debt Obligation is abandoned for any reason and BTMA is without fault for such abandonment, BTMA shall be paid a fee in the amount that would have been due if BTMA's services to the point of abandonment had been charged at the hourly rate set out in paragraph B herein however not more than the fee had the Debt Obligation been issued. A Debt Obligation shall be deemed abandoned upon notice by the Client to BTMA of abandonment or whenever the Client has taken no action with respect to the Debt Obligation for one year, whichever occurs first. Delay in the issuance of Debt Obligations resulting from failed authorization referenda shall not constitute abandonment unless otherwise provided by agreement between the Client and BTMA. (4) Fees for services provided in connection with a private placement are not contingent on the successful placement of the Debt Obligation. Additional Base Fee Purposes Fee Total Par Total Fee Tier 1 - to 2,999,999.99 18,000$ 5,000$ Total Par of all purposes Base Fee + $5,000 for each addt'l purpose Tier 2 3,000,000.00 to 4,999,999.99 25,000$ 5,000$ Total Par of all purposes Base Fee + $5,000 for each addt'l purpose Tier 3 5,000,000.00 to 9,999,999.99 30,000$ 7,500$ Total Par of all purposes Base Fee + $7,500 for each addt'l purpose Tier 4 10,000,000.00 to 24,999,999.99 45,000$ 7,500$ Total Par of all purposes Base Fee + $7,500 for each addt'l purpose Tier 5 25,000,000.00 to 49,999,999.99 65,000$ 10,000$ Total Par of all purposes Base Fee + $10,000 for each addt'l purpose Tier 6 50,000,000.00 to 74,999,999.99 75,000$ 10,000$ Total Par of all purposes Base Fee + $10,000 for each addt'l purpose Tier 7 75,000,000.00 to 99,999,999.99 100,000$ 10,000$ Total Par of all purposes Base Fee + $10,000 for each addt'l purpose Par Amount SCOPE APPENDIX to Engagement Letter dated: January 25, 2024 Between the City of Hugo, Minnesota and Baker Tilly US, LLP (Scopev20230309) Page SA - 15 | 18 The Client shall be responsible for issuance expenses including, without exclusion of other expenses: (i) posting and distributing the Official Statement, (ii) legal fees, (iii) printing, (iv) delivery and settlement, (v) travel, (vi) rating fees, (vii) out-of-pocket Debt Obligation related expenses, and (viii) governmental and governmental agency fees and charges. 2. Compensation and invoicing for arbitrage services Fees for services set forth in the Scope Appendix will be applied as follows per determination for each Debt Obligation: a) Initial determination for a Debt Obligation: $2,500 for the first year, plus $500 for each additional year up to a five-year period when such determinations are made for periods in excess of one year. b) Subsequent determination for a Debt Obligation: $1,750 for one year, plus $500 for each additional year when such determinations are made for periods in excess of one year. c) Preparation of Form 8038-T: $500 d) If BTMA is required to perform allocations of investments among funds and/or Debt Obligations, additional compensation will be charged at the standard hourly rates in place at the time services are provided. 3. Hourly rates for housing/economic development and other pre-debt or non-debt issuance related services Standard Hourly Rates by Job Classification 2024 Principal $330 Director $300 Manager $260 Consultant $200 Support, municipal bond disclosure specialist $150 Intern $110 Billing rates are subject to change periodically due to changing requirements and economic conditions. Baker Tilly will notify Client thirty (30) days in advance of any change to fees. If Client does not dispute such change in fees within that thirty (30) day period, Client will be deemed to have accepted such change. The fees billed will be the fees in place at the time services are provided. Actual fees will be based upon experience of the staff assigned and the complexity of the engagement. The above hourly fees shall include all expenses incurred by BTMA with the exception of expenses incurred for mileage which will be billed on a separate line item. No such expenses will be incurred without the prior authorization of the Client. Hourly projects that are active as of the date of this contract, will transition to the new hourly rates herein on March 1,2024. SCOPE APPENDIX to Engagement Letter dated: January 25, 2024 Between the City of Hugo, Minnesota and Baker Tilly US, LLP (Scopev20230309) Page SA - 16 | 18 4. Compensation for continuing disclosure services Fees for continuing disclosure services include the following: a) Full Disclosure - An annual report is required to be prepared by BTMA: (i) A fee of $1,300.00 will be applied to each separate type of debt report required (i.e., general obligation, revenue, etc.); plus (ii) A fee of $200.00 per debt obligation. b) Full Disclosure – The Client’s audited financial statements contain some or all of the required financial and operating data: (i) A fee of $600.00; plus (ii) A fee of $200.00 per debt obligation. c) Full Disclosure – A Final Official Statement previously filed on EMMA can be referenced as containing all the required financial and operating data: (i) A fee of $200.00 per debt obligation. d) Limited Disclosure (i) A fee of $600.00; plus (ii) A fee of $200.00 per debt obligation. In addition to the above, Client shall be responsible for any county auditor certificate fees incurred for the preparation of an annual report. 5. Expenses and Hourly Fees Amounts due BTMA for expenses and services charged at hourly rates shall not be contingent. BILLING PROCEDURES Normally, you will receive a monthly statement showing fees and costs incurred in the prior month. Occasionally, we may bill on a less frequent basis if the time involved in the prior month was minimal or if arrangements are made for the payment of fees from bond proceeds. The account balance is due and payable on receipt of the statement. Nonattest Services As part of this engagement, we will perform certain nonattest services. For purposes of the Engagement Letter and this Scope Appendix, nonattest services include services that the Government Auditing Standards refers to as nonaudit services. We will not perform any management functions or make management decisions on your behalf with respect to any nonattest services we provide. In connection with our performance of any nonattest services, you agree that you will: > Continue to make all management decisions and perform all management functions, including approving all journal entries and general ledger classifications when they are submitted to you. > Designate an employee with suitable skill, knowledge, and/or experience, preferably within senior management, to oversee the services we perform. > Evaluate the adequacy and results of the nonattest services we perform. > Accept responsibility for the results of our nonattest services. > Establish and maintain internal controls, including monitoring ongoing activities related to the nonattest function. SCOPE APPENDIX to Engagement Letter dated: January 25, 2024 Between the City of Hugo, Minnesota and Baker Tilly US, LLP (Scopev20230309) Page SA - 17 | 18 Conflicts of Interest Attachment A to the Engagement Letter contains important disclosure information that is applicable to this Scope Appendix. We are unaware of any additional conflicts of interest related to this Scope Appendix that exist at this time. Termination Notwithstanding termination provisions contained in the Engagement Letter, this Scope Appendix is intended to be ongoing and applicable individually to specific services including financings, arbitrage computations, and/or continuing disclosure engagement, (Sub-engagements) as if they are the sole subject of the Scope Appendix. As such, termination may occur for a specific Sub-engagement without terminating the Scope Appendix itself. On termination of a Sub-engagement or the Scope Appendix, all fees and charges incurred prior to termination shall be paid promptly. Unless otherwise agreed to by the Client and Baker Tilly, the scope of services provided in a Sub-engagement performed under this Scope Appendix will terminate 60 days after completion of the services for such Sub-engagement. If this Scope Appendix is acceptable, please sign below and return one copy to us for our files. We look forward to working with you on this important project. Sincerely, Elizabeth Bergman, Principal Signature Section: The services and terms as set forth in this Scope Appendix are agreed to on behalf of the Client by: Name: _______________________________ Title: _______________________________ Date: _______________________________ SCOPE APPENDIX to Engagement Letter dated: January 25, 2024 Between the City of Hugo, Minnesota and Baker Tilly US, LLP (Scopev20230309) Page SA - 18 | 18 Exhibit A Arbitrage Monitoring Services Authorization to Engage Services (Authorization Listing) This Authorization Listing is pursuant to the Arbitrage Monitoring Services Scope Appendix (Scope Appendix) dated January 25, 2024 by and between the City of Hugo, Minnesota (Client) and Baker Tilly Municipal Advisors (BTMA). BTMA will provide the services outlined in the Scope Appendix with respect to the following Debt Obligation(s) unless written notification is provided to BTMA that the Client will not require these services within 30 days of receipt of this Authorization Listing: Bond Issue Closing Date Frequency $1,325,000 General Obligation Improvement Bonds, Series 2011A 11/9/2011 5th Year $8,000,000 General Obligation Capital Improvement Plan Bonds, Series 2020A 11/5/2020 5th Year $8,170,000 General Obligation Tax Abatement Bonds, Series 2021A 10/7/2021 5th Year CITY OF HUGO CITY COUNCIL AGENDA REPORT TO: Bryan Bear, City Administrator FROM: Mike Loeffler, Public Works Supervisor SUBJECT: Replacement of Skid Steer Trailer DATE: For the City Council Meeting of April 15, 2024 BACKGROUND In 2003, the City purchased a tandem axel Felling skid steer trailer from Lano Equipment Inc. This trailer is primarily used to haul either of the skid steers with any corresponding attachments, as well as items that are too large to be hauled in trucks. This trailer has been in service for 21 seasons and is nearing the end of its useful life. Staff is looking to replace the trailer, and is recommending a Felling FT-16-IT-I pan tilt trailer. The trailer listed on the quote from Lano Equipment Inc. has been reviewed with Finance Director, Anna Wobse and Public Works Director, Scott Anderson. Public Works staff has worked with the Finance Department and money is included in the 2024 budget to cover this purchase. Public Works staff is seeking Council authorization for the replacement of the existing 2003 skid steer trailer. If approved by the City Council, this trailer would be purchased using the Mn/DOT Cooperative Purchasing Venture (CPV) State contract #T-603 156368 assuring that the City of Hugo will receive the best price available while providing us with the necessary options to choose from. DESIRED ACTION Staff recommends the City Council authorize the purchase of the Felling pan tilt trailer as outlined in the quote from Lano Equipment Inc. for the amount of $17,125.44. Please see the attached trailer build sheet and quote. FELLING TRAILERS, INC. 1525 Main Street South, Sauk Centre, MN 56378 Phone: 800-245-2809 – www.felling.com 1000-F Page 1 Appx Completion Date Subject to Engineering Review Model Web Page: https://www.felling.com/trailers/construction/drop- deck-trailer/tilt-lines-drop-deck/ 03/14/2023 Ref. No: 245216JDM ATTENTION: Scott Fahey Quote Valid for 7 Days Reference No: 245216JDM Ship To:Bill to: Minnesota State Contract T-603-221690 Hugo Public Works Building 6900 137th St. N. Hugo MN 55038 651-762-6331 , Phone: FAX:Minnesota State Contract T-603- 221690 Lano Equipment Anoka MN , Customer Unit/Stock: Phone: FAX: PO#Sales Person Jacob Meyer Appx Completion 72 (weeks) Quote Date 02/01/2023 Dealer Discount 12%Other Charge Order Date Tier Discount 0%Product ID FT-16 IT-I Drop Deck - Tilt Order Status Quote Addtl Disc/Terms Net Due 30 Days Serial No Drawing No: OVL Length: 27 Copy No: Part No: Appx Wgt +/-: 4,550 lbs Shipping Notes: Notes: Mike Loeffler mloeffler@ci.hugo.mn.us phone: 651-762-6321 MRP No: Smart No: 51627 Item Type Options Description Add Qty Unit Total Qty Total Amt Base Trailer FT-16 IT-I Each 0 $17,126.00 Stationary Deck ✓Stationary Deck 2 Feet 6 $668.00 Deck Length Add Tilt Deck Length (Includes 2' Steel Punch Plate Approach) Feet 16 $0.00 Stationary Deck Type White Oak 2" Nom Std 1 $0.00 Deck Type White Oak 2" Nom Std 1 $0.00 Appx Deck Height 22.5" Loaded, 24.5" Unloaded Inches 1 $0.00 Width 102" OD, 81" ID Std 1 $0.00 Tie Downs D-Rings, 5/8" Straight Std 10 $0.00 Brakes Electric, FSA (Fwd Self Adj) On All Axles Std 1 $0.00 Axles 8K Oil Bath Drop Std 2 $0.00 Suspension Spring, 36" Spread Std 1 $0.00 Tires & Wheels 215/75R 17.5 H, 8 Bolt [17.5 x 6.75] Plate Wheel Each 4 $0.00 Hitch Length Center of Coupler to Headboard, Appx Feet 5 $0.00 Hitch Type 2.5" Adjustable Lunette Eye/Pintle, [C] 42,000 lb Plate Mount (5/8" Bolt) Std 1 $0.00 Hitch Height Approximate Adjustment Hitch Range 14.5" to 23.5" (21.5" to 26" if Hyd) Std 1 $0.00 Jack 12K w/ Spring Loaded Drop Leg, Side Wind Std 1 $0.00 Plug 7 Pole RV Std 1 $0.00 Lights LED,4 tail light system, Sealed Wiring Harness (Tail lights located on rear of fenders) Std 1 $0.00 Trailer Color Felling Black # CCA945378 (White Felling Decal) Std 1 $0.00 Standard 3/8" Safety Chains, Grade 70 Std 1 $0.00 Standard Dual cushion cylinders Std 2 $0.00 Standard Document Holder Std 1 $0.00 Option ✓Expanded Metal (3/4 x #9) Tool Tray in Hitch A-frame From Headboard to Jack Opt 1 $531.00 Option ✓Pallet Fork Holders Mounted 36" O.D. of tubes with Fork Securement Chains Pair 1 $598.00 Option ✓3/16" Tread Plate Fenders Opt 1 $515.00 GVWR 18,400 lbs Std 1 $0.00 FELLING TRAILERS, INC. 1525 Main Street South, Sauk Centre, MN 56378 Phone: 800-245-2809 – www.felling.com 1000-F Page 2 Appx Completion Date Subject to Engineering Review Model Web Page: https://www.felling.com/trailers/construction/drop- deck-trailer/tilt-lines-drop-deck/ 03/14/2023 Ref. No: 245216JDM Standard List Price:$19,438.00 Dealer Discount:$2,332.56 Sub Total:$17,105.44 Tier Discount:$0.00 Sub Total after Tier:$17,105.44 Net Cost:$17,105.44 MSO’s are not released until Payment Received **FOB IF NO FREIGHT charged** ** FET Tax may apply on 26,000 lb GVWR and above ** Please sign and date your acceptance of this quote: \signature1\ Freight:$0.00 Market Adjustment:$0.00 Other Charge (see above):$0.00 \date1\Sales Tax:$0.00 License Fees:$0.00 FET TAX (Less Tire Deduct):$0.00 TOTAL U.S.D.$17,105.44 **PRICING MAY BE SUBJECT TO MARKET ADJUSTMENT AT TIME OF INVOICE** CITY OF HUGO 14669 FITZGERALD AVE N HUGO, MN 55038 Bill To: CITY OF HUGO Ship To: QUOTE - DO NOT PAY Cust Email: Phone: Salesperson: User: awobse@ci.hugo.mn.us (651) 762-6300 Scott.F Scott.F PO: FT16 IT I CustId: CITYHUGO Quote: 02-172087 Date: 1/17/2024 Item Type Description Qty Tax Price Discount Net Price FT16ITI-6+16T / NEW QU Felling FT16ITI-6+16T Yr: 2024 1.0000 $17,105.44 TRA - FELLING TILT TRAILER,16K,6+16,FORK PKTS Total FT16ITI-6+16T / NEW $17,105.44 TRANSIT USE MC Transit Use 1.0000 $20.00 $20.00 Total:$17,125.44 Totals Sub Total:$17,125.44 Total Tax:$0.00 Invoice Total:$17,125.44 Minnesota State Contract T-603-221690 REFERENCE QUOTE/BUILD SPEC 1-45216 CUSTOMER TO DO THEIR OWN DOT INSPECTION Signature:______________________________________ Quote is Valid for 30 days, programs and discounts subject to change without notice 14669 Fitzgerald Avenue North, Hugo, MN 55038   • (651) 762‐6300  •   www.ci.hugo.mn.us            MEMO      TO: Bryan Bear, City Administrator FROM: Tom Smith, Public Works Streets Lead DATE: April 10, 2024 SUBJECT: Award of Bid – 2024 Dust Control Background   Staff is requesting Council approval and award of bid for the 2024 Dust Control project. The City of Hugo currently applies dust control to approximately 23 miles of gravel roads located within its municipal boundaries. The City’s 2024 General Budget has accounted for a dust control project in 2024. As in past years, staff will also work with May Township to cost share for the application of dust control on the shared portion of Keystone Ave. north of County Road 4. Quotes for dust control were received and opened on April 9, 2024. The following prices were received: Envirotech Services - $1.39/gallon (1st application), $1.39/gallon (2nd application) Northern Salt, Inc. - $1.515/gallon (1st application), $1.515/gallon (2nd application) With City Council approval, staff would coordinate with Envirotech Services to deliver and place a total of 109,000 gallons of calcium chloride in two separate applications, once in mid-June and again in mid-August. Recommendation Staff recommends Council approval of a contract with Envirotech Services. in the amount of $151,510 for the 2024 Dust Control Project.   14/11/2024 10:59 AM123456789101112131415161718192021222324252627282930April 2024Su Mo Tu We Th Fr Sa12345678910111213141516171819202122232425262728293031May 2024Su Mo Tu We Th Fr SaApril 2024Mar 31Apr 1234567:00pm City Council5:30pm Board of Appeals and Equal (Onela Room) 789101112136:30pm BOZA7:00pm Planning Comm141516171819207:00pm City Council5:30pm EDA6:30pm Hist Comm7:00pm Parks Comm212223242526276:00pm Council Workshop (Pede Pedersen Pavilion)5:00pm Metro Cities Annual Meeting (2661 Civic Center Drive)6:30pm BOZA7:00pm Planning Comm282930May 1234SUNDAYMONDAYTUESDAYWEDNESDAYTHURSDAYFRIDAYSATURDAY 24/11/2024 10:59 AMSu Mo Tu We Th Fr Sa123456789101112 13 14 15 16 17 1819 20 21 22 23 24 2526 27 28 29 30 31May 2024Su Mo Tu We Th Fr Sa12345678910111213141516 17 18 19 20 21 2223 24 25 26 27 28 2930June 2024May 2024Apr 282930May 12348:00am Spring Cleanup5678910117:00pm City Council6:30pm BOZA7:00pm Planning Comm121314151617187:00pm Parks Comm7:00pm Diamond Pk Meeting (Pede Pedersen Pavilion)192021222324257:00pm City Council12:00pm Nystrom Ribbon Cutting (4638 Victor Path, Suite 900)5:30pm EDA6:30pm Hist Comm6:30pm BOZA7:00pm Planning Comm262728293031Jun 1Memorial DaySUNDAYMONDAYTUESDAYWEDNESDAYTHURSDAYFRIDAYSATURDAY