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2025.01.06 CC Packet
OATH OF OFFICE Tom Weidt, Mayor Benjamin Krull, Council Member Ward 2 Mike Miron, Council Member at Large A. CALL TO ORDER B. ROLL CALL C. PLEDGE OF ALLEGIANCE D. APPROVAL OF MINUTES 1. December 16, 2024, Environmental Center Ribbon Cutting 2. December 16, 2024, City Council Meeting 3. December 18, 2024, Emergency and Disaster Training Meeting E. APPROVAL OF AGENDA F. APPOINTMENTS/PRESENTATIONS 1. Northeast Youth & Family Services – Director of Operations Jessie Everts G. CONSENT AGENDA All matters listed under the Consent Agenda are considered to be routine by the City Council and will be enacted by one motion and a roll call vote. If a member of the City Council or the public wishes to discuss an item, that item will be removed from the Consent Agenda and will be considered separately. 1. Approve Claims Roster 2. Approve Annual Performance Review for Building Inspector Scott Baller 3. Approve Annual Performance Review for Community Development Director Rachel Juba 4. Approve Annual Performance Review for Public Works Worker Neal Nelson 5. Approve Annual Performance Review for Accounting Clerk Jennifer Taylor 6. Approve Appointment of Mike Miron as Acting Mayor 7. Approve Renewal of Term for Planning Commissioners Matthew Derr and Michael Kelly 8. Approve Renewal of Terms for Parks Commissioners Meredith St. Pierre and Valerie Boyd 9. Approve Renewal of Terms for Historical Commissioners Scott Cregan and Daniel Koch 10. Approve Renewal of Term for EDA Commissioner John Chrun 11. Approve Appointment of Bronwen Kleissler as Chair and Matthew Derr as Vice-Chair of the Planning Commission 12. Approve Appointment of Meredith St. Pierre as Chair and Cathy Moore-Arcand as Vice- Chair of the Parks Commission 13. Approve Reassignment of Neal Arcand from the EDA to the Parks Commission and Declare EDA Vacancy 14. Approve Appointment of Brad LeTourneau as Chair of Historical Commission Mayor: Tom Weidt Councilmembers: Becky Petryk, Ward 1 Ben Krull, Ward 2 Dave Strub, Ward 3 Mike Miron, At Large City Council Agenda Monday, January 6, 2025 Address: 14669 Fitzgerald Ave. N. Hugo, MN 55038 Phone: 651-762-6300 Website: www.ci.hugo.mn.us 15. Approve Appointment of Tom Weidt and Ben Krull as Council Representatives on the EDA 16. Approve Appointment of Mayor Tom Weidt, Planning Commissioner Cindy Petty, and Resident Scott Arcand to the Board of Zoning Appeals and Adjustments 17. Approve Appointment of Tom Weidt as Chair of the Board of Zoning Appeals and Adjustments 18. Approve Appointment of WSB as City Engineer 19. Approve Appointment of Landform as City Planner 20. Approve Appointment of Johnson & Turner as City Attorney 21. Approve Appointment of Baker Tilly as Financial Advisor 22. Approve Appointment of US Bank as Depository for City Funds 23. Approve Appointment of The Citizen as Official Newspaper 24. Approve Appointments to Hugo Firefighter Relief Association 25. Approve Appointments to the Ordinance Review Committee 26. Approve Donation to the Hugo Fire Department from the Hugo American Legion 27. Approve Contract with Northeast Youth and Family Services for 2025 28. Approve Animal Control Service Contracts with Companion Animal Control 29. Approve Ordinance Amending Chapter 10-Animals, Changing Impound from Ten Days to Five Days. 30. Approve Ordinance on Cannabis and Ordinance Amending Fee Schedule and Related Summary Ordinances for Publication 31. Approve Release of Letter of Credit for Adelaide Landing 5th and 6th Addition H. PUBLIC HEARING 1. Nothing Scheduled I. UNFINISHED BUSINESS 1. Nothing Scheduled J. NEW BUSINESS 1. Nothing Scheduled K. VISITOR PRESENTATIONS 1. Nothing Scheduled L. COUNCIL PRESENTATIONS 1. Nothing Scheduled M. ADMINISTRATIVE PRESENTATIONS 1. Reminder – Fire Department Banquet Saturday, January 18, 2025 2. Reminder - Council Goal Setting Session Monday, January 27, 2025 3. Schedule Lions Club 50th Anniversary on Sunday, February 2, 2025 4. Schedule the Board of Appeal and Equalization for Thursday, April 3, 2025 N. ADJOURNMENT BACKGROUND MEMO FOR THE CITY COUNCIL MEETING ON JANUARY 6, 2025 D.1 December 16, 2024, Environmental Center Ribbon Cutting D.2 December 16, 2024, City Council Meeting D.3 December 18, 2024, Emergency and Disaster Training Meeting Staff recommends Council approve the above minutes as presented. F.1 Northeast Youth & Family Services – Director of Operations Jessie Everts Jessie Everts is the Director of Operations at NYFS will be in attendance to provide the annual report. G. 1 Approval of Claims Staff recommends Council approve the Claims Roster as presented. G.2 Approve Annual Performance Review for Building Inspector Scott Baller Scott Baller was hired by the City as a Building Inspector on January 1, 2006. Building Official Joel Hoistad recommends Council approve the annual performance review for Building Inspector Scott Baller. G.3 Approve Annual Performance Review for Community Development Director Rachel Juba Rachel Juba was hired as the City’s new Associate Planner on January 2, 2007, and promoted to Planner in 2010, then Community Development Director in May 2018. City Administrator Bryan Bear recommends Council approve the annual performance review for Community Development Director Rachel Juba. G.4 Approve Annual Performance Review for Public Works Worker Neal Nelson Neal Nelson was hired on January 3, 2017, as a Public Works Worker. Public Works Director Scott Anderson recommends Council approve the Annual Performance Review for Neal Nelson. G.5 Approve Annual Performance Review for Accounting Clerk Jennifer Taylor At its January 8, 2024, meeting, Council approved the hiring of Jennifer Taylor as the new Accounting Clerk beginning on January 29, 2024. Finance Director Anna Wobse recommends Council approve the annual performance review for Accounting Clerk Jennifer Taylor. G.6 Approve Appointment of Mike Miron as Acting Mayor Each year, the Council appoints a member of the Council for the position of Acting Mayor. On behalf of Mayor Tom Weidt, City staff recommends approval of the appointment of Council Member Mike Miron as Acting Mayor for the year 2025. G.7 Approve Renewal of Term for Planning Commissioners Matthew Derr and Michael Kelly The term for Planning Commissioners Matthew Derr and Michael Kelly expired on December 31, 2024. Both have indicated they would like to be reappointed for another four-year term. Staff recommends Council approve the reappointment of Commissioners Matthew Derr and Michael Kelly for another four-year term on the Planning Commission to expire December 31, 2028. G.8 Approve Renewal of Terms for Parks Commissioners Meredith St. Pierre and Valerie Boyd Terms for Parks Commissioners Meredith St. Pierre and Valerie Boyd expired on December 31, 2024. Both have indicated they would like to be reappointed for another three-year term. Staff recommends Council approve the reappointment of Meredith St. Pierre and Valerie Boyd for another three-year term on the Parks Commission to expire on December 31, 2027. G.9 Approve Renewal of Terms for Historical Commissioners Scott Cregan and Daniel Koch Terms for Historical Commissioners Scott Cregan and Daniel Koch expired on December 31, 2024. Both have indicated they would like to be reappointed for another three-year term. Staff recommends Council approve the reappointment of Scott Cregan and Daniel Koch for another three-year term to expire on December 31, 2027. G.10 Approve Renewal of Term for EDA Commissioner John Chrun The term for EDA Commissioner John Chrun will expire on December 31, 2024. John indicated he would like to be reappointed for another six-year term. Staff recommends Council approve the reappointment of Commissioner John Chrun for another six-year term on the EDA Commission to expire December 31, 2030. G.11 Approve Appointment of Bronwen Kleissler as Chair and Matthew Derr as Vice- Chair of the Planning Commission Annually, Council appoints a member of the Planning Commission to serve as Chair of the Commission. Bronwen Kleissler has been serving as the Chair of the Planning Commission since August 2015, and Matt Derr was appointed as Vice-Chair in March 2022. Staff recommends Council approve the reappointment of Bronwen Kleissler as the Chair and Matthew Derr as Vice-Chair of the Planning Commission for 2025. G.12 Approve Appointment of Meredith St. Pierre as Chair and Cathy Moore-Arcand as Vice-Chair of the Parks Commission Annually, the City Council appoints members of the Parks Commission to serve as chair and vice-chair. Meredith St. Pierre was appointed as the Chair of the Parks Commission in September 2022. Cathy Moore-Arcand has served as Vice-Chair since January 2017. City staff recommends reappointment of Meredith St. Pierre as Chair and Cathy Moore-Arcand as Vice- Chair for the Parks and Recreation Commission for 2025 G.13 Approve Reassignment of Neal Arcand from the EDA to the Parks Commission and Declare EDA Vacancy Current EDA Commissioner Neal Arcand has expressed interest in serving on the parks commission. Mayor Weidt recommends Council approve the reassignment of Neal Arcand from the EDA to the Parks Commission for a term ending on December 31, 2026, and declare a vacancy on the EDA. G.14 Approve Appointment of Brad Letourneau as Chair of Historical Commission Annually, the City Council appoints a member of the Historical Commission to serve as the Chair of the Commission. Brad Letourneau has served as the Chair of the Commission since September 2023. Staff recommends Council approve the reappointment of Brad as the Chair of the Historical Commission for 2025. G.15 Approve Appointment of Tom Weidt and Ben Krull as Council Representatives on the EDA Annually, Council appoints two representatives from the Hugo City Council to serve on the Economic Development Authority (EDA). Staff recommends Council appoint Mayor Weidt and Council Member Krull to serve as the Council Representatives on the EDA for 2025. G.16 Approve Appointment of Mayor Tom Weidt, Planning Commissioner Cindy Petty, and Resident Scott Arcand to the Board of Zoning Appeals and Adjustments Annually, the Hugo City Council appoints a member of the Planning Commission, City Council, and a resident to serve on the Board of Zoning Appeals and Adjustments. Tom Weidt has agreed to continue to serve another year as the City Council representative, and Cindy Petty has agreed to serve as the Planning Commission representative, and Scott Arcand as the resident representative. Staff recommends Council approve the reappointment of Tom Weidt as the City Council representative, and Cindy Petty as the Planning Commission representative, and Scott Arcand as the resident representative on the Board of Zoning Appeals and Adjustments for one-year terms. G.17 Approve Appointment of Tom Weidt as Chair of the Board of Zoning Adjustments Annually, Council approves appointment of Chair of the Board of Zoning Appeals and Adjustments. Staff recommends Council reappoint Board Member Tom Weidt as Chair of the Board of Zoning Appeals and Adjustments for 2025. G. 18 Approve Appointment of WSB as City Engineer WSB Engineers has been the City Engineer for the past 21 years. WSB Engineers is requesting to continue to provide this service to the City with an average rate adjustment of 5.75%. City staff recommends approval of the appointment of WSB Engineers and Mark Erichson as the City Engineer for 2025. G. 19 Approve Appointment of Landform as City Planner Kendra Lindahl from Landform has worked over the past 22 years as the City Planner. Landform would like to continue to provide this service to the City at a revised rate schedule. City staff recommends approval of the appointment of Kendra Lindahl as the City Planner/Planning Consultant for the year 2025. G. 20 Approve Appointment of Johnson & Turner as City Attorney City Attorney Dave Snyder has served the City with the law firm of Johnson & Turner for the past several years. Johnson & Turner would like to continue to provide legal services to the City at the adjusted rate schedule. City staff recommends approval of the appointment of David K. Snyder and the Johnson & Turner Law Firm as the City Attorney for the year 2025. G.21 Approve Appointment of Baker Tilly as Financial Advisor Financial Advisors Chris Hogan, Mikaela Huot and the other members of the Baker Tilly Virchow Krause, LLP team have served the City very well over the years on a wide variety of projects. City staff recommends approval of Baker Tilly Virchow Krause, LLP, as the City’s financial advisors for the year 2025. G.22 Approve Appointment of US Bank as Depository for City Funds Each year, Council selects a depository/bank for the deposit of City funds. For many years, Council has selected the local Hugo branch of US Bank. City staff recommends the approval of U.S. Bank-Hugo as the official depository for City funds for 2025. G.23 Approve Appointment of The Citizen as Official Newspaper Each year, Council selects a newspaper as the official publication for all public notices and publishing of ordinances. For the past 15 years, the City Council appointed The Citizen as the City’s new official newspaper, and The Citizen would like to continue to provide this service at a rate increase from $13.99 to $14.69 per column inch. City staff recommends Council approve The Citizen as the City’s official newspaper for 2025. G. 24 Approve Appointments to Hugo Firefighter Relief Association Minnesota State Statute requires the official appointment of the ex-officio members of the Hugo Fire Department Relief Association Board. Council must appoint two elected or appointed members. City staff recommends appointment of Mayor Tom Weidt and Finance Director Anna Wobse as ex-officio members of the Hugo Fire Department Relief Association Board. G.25 Approve Appointments to the Ordinance Review Committee In 2009, the Council formally established the Ordinance Review Committee to making recommendations on new ordinances and changes to existing ordinance. The Committee consists of three Planning Commissioners and two City Council Members. Staff recommends Council approve the appointment of Planning Commissioners Bronwen Kleissler, Mike Granger, and Phil Klein and Council Members Mike Miron and Ben Krull to the ORC. G.26 Approve Donation to the Hugo Fire Department from the Hugo American Legion The Hugo American Legion would like to donate $1,000 to the Hugo Fire Department from pull-tab proceeds for equipment and training. All donations to the Fire Department must be approved by the Council. Staff recommends Council approve the donation of $1,000 to the Hugo Fire Department. G.27 Approve Contract with Northeast Youth and Family Services for 2025 Over the past several years, the City had entered into an agreement with Northeast Youth and Family Services to support programs for Hugo families related to counseling, intervention, and enrichment. Through this agreement, the City sponsored NYFS by providing financial support. In the 2025 budget, Council approved $17,671 in funding for their youth diversion services. Staff recommends Council approve the agreement with Northeast Youth and Family Services. G.28 Approve Animal Control Service Contracts with Companion Animal Care The City had contracted with Companion Animal Control and Otter Lake Animal Care since 2016 for animal control and impound services. Otter Lake has determined they are no longer able to provide impound services beginning January 1, 2025. Companion Animal Control is constructing a new impound facility in Oakdale to be completed in May 2025. In the interim, Northwoods Humane Society will provide impound services. Staff recommends Council approve the Animal Control Service Agreement Pricing Addendum and Animal Companion Care Impound Service Agreement effective January 1, 2025. G.29 Approve Ordinance Amending Chapter 10-Animals Changing Impound from Ten Days to Five Days MN State Statute 346.47 on seized animals only requires an animal to be impounded for five days and not ten days as required in Hugo City Code. According to the owner of Companion Animal Care, the longer hold period exposes animals to unnecessary stress of waiting at the impound before being sent to a foster rescue. In addition, longer holds would cost the City additional impound fees for unclaimed animals. Staff recommends Council approve the amendment to Chapter 10-Animals amending the number of impound days from ten to five. G.30 Approve Ordinance on Cannabis and Ordinance Amending Fee Schedule and Related Summary Ordinances for Publication At its November 18, 2024, meeting the City Council directed staff to draft an ordinance relating to and regulating cannabis businesses within the City of Hugo, and provided some high-level direction for some ordinance items. Staff received further feedback from the EDA at its November 19, 2024, meeting and the Ordinance Review Committee prior to drafting the ordinance. Staff proposed an ordinance that creates definitions for cannabis-related items, allows cannabis retail businesses in commercial zoning districts and all other cannabis business types in industrial zoning districts, establishes a process by which cannabis businesses register with the city, and created performance standards for cannabis businesses. The Planning Commission reviewed the ordinance and held a public hearing at its December 12, 2024, meeting. There were two people who spoke during the public hearing, both requesting that cannabis cultivation be allowed as a conditional use within rural zoning districts. The Planning Commission had a discussion on the ordinance and the request from the public and were generally comfortable with the ordinance as it was proposed. The Planning Commission voted unanimously to recommend approval of the ordinance to the City Council. Additionally, staff is proposing a set of fees related to cannabis business registration and penalties to be added to the city fee schedule. Staff recommends that the City Council approve the cannabis ordinance, the ordinance amending the fee schedule, and the associated summary ordinances. G.31 Approve Release of the Letter of Credit for Adelaide Landing 5th and 6th Additions OP5 Adelaide, LLC, the developer, has requested the City release their letter of credit for Adelaide 5th and 6th Additions. City staff has inspected the work, and the warranty period has expired therefore staff recommends the release of the letter of credit being held for the constructed improvements of the Adelaide 5th and 6th Additions. M.1 Reminder – Fire Department Banquet Saturday, January 18, 2025 Council has scheduled a meeting to attend the Hugo Fire Department Annual Banquet on Saturday, January 18, 2025, at the Hugo American Legion beginning at 5 p.m. Council should RSVP to Ross Hoernemann. M.2 Reminder - Council Goal Setting Session Monday, January 27, 2025 Council had scheduled their Annual Goal Setting Session for Monday, January 27, 2025, at 6 p.m. in the Council Chambers. M.3 Schedule Lions Club 50th Anniversary on Sunday, February 2, 2025 The Lions Club has invited the Council to their 50th Anniversary Celebration to be held on Sunday, February 2, 2025, at 1 p.m. at the Pede Pedersen Pavilion. Staff recommends Council schedule it as a meeting if they wish to attend. M.4 Schedule the Board of Appeal and Equalization for Thursday, April 3, 2025 Washington County is requesting the Council schedule the Board of Appeal and Equalization meeting for Thursday, April 3, 2025, from 5:30-7:00 pm. Staff recommends Council schedule the meeting for Thursday, April 3, 2025, in the Oneka Room at City Hall. N. Adjournment MINUTES City Council Meeting – Ribbon Cutting North Environmental Center Monday, December 16, 2024 10:00 a.m. COUNCIL PRESENT: Klein, Miron, Petryk, Strub, Weidt COUNCIL ABSENT: None The Hugo City Council attended the Ribbon Cutting to celeberate the opening of the Washington County North Environmental Center at 6065 Headwaters Parkway. Respectfully Submitted, Bryan J. Bear, City Adiministrator MINUTES City Council Meeting City Hall Council Chambers Monday, December 16, 2024 7:00 p.m. Call to Order Mayor Weidt called the meeting to order at 7:00 p.m. Roll Call and Pledge of Allegiance COUNCIL PRESENT: Klein, Miron, Petryk, Strub, Weidt COUNCIL ABSENT: None OTHERS PRESENT: City Administrator Bryan Bear, Finance Director Anna Wobse, Community Development Director Rachel Juba, City Clerk Michele Lindau Approval of Minutes for the December 2, 2024, City Council Meeting Klein made motion, Petryk seconded, to approve the minutes for the City Council Meeting held on December 2, 2024, as presented. All Ayes. Motion carried. Approval of Minutes for the December 4, 2024, Santa Party Miron made motion, Klein seconded, to approve the minutes for the Santa Party held on December 4, 2024, as presented. All Ayes. Motion carried. Approval of Minutes for the December 5, 2024 Holiday Party Strub made motion, Klein seconded, approve the minutes for the Holiday Party held on December 5, 2024, as presented. All Ayes. Motion carried. Approval of Agenda Klein made motion, Miron seconded, to approve the agenda as written. All Ayes. Motion carried. Introduction of New Sergeant Matt Wieland and Deputy Isaac Robbins Washington County Sergeant Matt Wieland would be replacing Sergeant Joe Zerwas as the contracted sergeant for the City of Hugo beginning January 1, 2025. Washington County Sheriff Dan Starry talked about changes to the Hugo contract team and thanked Zerwas for his work in Council Meeting Minutes for December 16, 2024 Page 2 of 6 Hugo and the relationships he had built. He introduced the new Hugo Sergeant Matt Weiland saying he worked in Lake Elmo and in the canine division. Matt addressed the Council saying Hugo has always been a desirable contract city, and he looked forward to proving services to the City. Sergeant Zerwas introduced Deputy Isaac Robbins. Robbins would be replacing Deputy Ross Peterson who will be going to the canine division. Deputy Robbins had been with the Sheriff’s Department for over a year and a half and would be on the afternoon shift. Robbins said he was excited to be working for Hugo and looked forward to serving the City. Mayor Weidt thanked Zerwas, congratulated Weiland and Robbins, and wished Peterson good luck in the canine division. Recognition of Council Member Phil Klein – Washington County Commissioner Fran Miron Washington County Commissioner Fran Miron talked about Phil Klein’s service to the community saying he had served in numerous roles. Fran presented him with the Commissioners Service Award for his outstanding service to Washington County. Council members each spoke of their positive interactions with Klein and expressed appreciation for his unselfish service saying he will be missed. Mayor Weidt talked about the friendship and trust he had in Klein and the positive changes in Hugo that Klein had been a part of. He presented Klein with a card signed by Council and staff and a plaque in recognition and appreciation for his 16 years of dedicated service to the citizens of Hugo. Phil talked about his fortune of ending up in Hugo and being able to get involved in the community. He talked about how he enjoyed the comradeship with the Council and commended them, the Sheriff’s Department, County Commissioner, and staff on the excellent job they do. City Administrator Bryan Bear said it was a pleasure working with Phil the past 16 years and talked about how positive council relationships help get good things accomplished. He thanked Phil on behalf of the entire staff. Approval of Consent Agenda Klein made motion, Petryk seconded, to approve the following Consent Agenda. 1. Approve Claims Roster 2. Approve Annual Performance Review for Public Works Worker Miguel Souffront 3. Approve Annual Performance Review for Utility Lead Worker Rick Fox 4. Approve Resignation of Planning Commissioner Corky Lessard 5. Approve Appointment of Phil Klein to the Planning Commission 6. Approve Recommendation for Appointment of David Strub to MAWSAC 7. Approve Resolution on Statutory Tort Liability Limits Council Meeting Minutes for December 16, 2024 Page 3 of 6 8. Approve Resolution Certifying Delinquent Utility Accounts 9. Approve Ordinance Establishing 2025 Fee Schedule and Publication of Summary Ordinance 10. Approve Resolution Setting 2025 Salary and Reimbursement Levels 11. Approve Resolution Approving Refuse Hauler Licenses for 2025 12. Approve Resolution Approving Liquor and Tobacco Licenses for 2025 13. Approve Fire Station Office Remodel Project 14. Approve Pay Request No. 5 for the Lift Station No. 12 Project 15. Approve Resolution Approving Encroachment Agreement for 5351 129th Street North – Richard and Marilyn Sinclair All Ayes. Motion carried. Approve Claims Roster Adoption of the Consent Agenda approved the Claims Roster as presented. Approve Annual Performance Review for Public Works Worker Miguel Souffront At its November 20, 2023, meeting, Council approved the hiring of Miguel Souffront as a Public Works Worker with a starting date of December 4, 2023. Adoption of the Consent Agenda approved the annual performance review for Miguel Souffront. Approve Annual Performance Review for Utility Lead Worker Rick Fox At its November 20, 2023, meeting, Council approved the hiring of Rick Fox as a Public Works Utility Lead Worker with a starting date of December 11, 2023. Adoption of the Consent Agenda approved the annual performance review for Rick Fox. Approve Resignation of Planning Commissioner Corky Lessard Planning Commissioner Corky Lessard had submitted his letter of resignation from the Planning Commission. Adoption of the Consent Agenda approved the resignation of Corky Lessard effective immediately. Approve Appointment of Phil Klein to the Planning Commission With the resignation of Corky Lessard from the Planning Commission, Mayor Weidt had recommended Council approve the appointment of Phil Klein to the Planning Commission effective January 1, 2025. Adoption of the Consent Agenda approved the appointment of Phil Klein to the Planning Commission for a term ending on December 31, 2026 Approve Recommendation for Appointment of David Strub to MAWSAC Soon to be former Council Member Phil Klein would be unable to continue his service on the Metropolitan Area Water Supply Advisory Committee as an elected official. Adoption of the Consent Agenda approved Council Member David Strub be recommended to Metro Cities and the Governor’s office for appointment to MAWSAC. Council Meeting Minutes for December 16, 2024 Page 4 of 6 Approve Resolution on Statutory Tort Liability Limits In the late 1990’s the League of Minnesota Insurance Trust required each City that obtained liability coverage from them to decide whether or not to waive the statutory tort liability limits to the extent of coverage purchased. Currently these limits were $500,000 per claimant and $1,500,000 per occurrence. At that time the City Council opted not to waive the statutory limits. LMCIT required each member city to reaffirm their position on an annual basis. Adoption of the Consent Agenda approved RESOLUTION 2024-62 NOT TO WAIVE STATUTORY TORT LIABILITY LIMITS. Approve Resolution Certifying Delinquent Utility Accounts Annually, the Finance Department reviewed all delinquent utility bills, which were the result of nonpayment or underpayment of water and sewer utility bills. In accordance with City Ordinance, Council was required to adopt a resolution to certify delinquent utility bills to the property tax rolls. Property owners who had not paid their outstanding utility bill would have it certified to the property tax rolls. Adoption of the Consent Agenda approved RESOLUTION 2024-63 CERTIFYING UNPAID UTILITY BILLS TO THE COUNTY AUDITOR FOR COLLECTION Approve Ordinance Establishing 2025 Fee Schedule and Publication of Summary Ordinance City staff annually reviewed the schedule of fees, rates and charges and recommended changes. The Finance Department reviewed and incorporated them into the fee schedule for 2025. Adoption of the Consent Agenda approved ORDINANCE 2024-537 AUTHORIZING ESTABLISHMENT OF FEES, RATES AND CHARGES and approved the summary ordinance for publication Approve Resolution Setting 2025 Salary and Reimbursement Levels At the Mid-Year Budget Review Workshop, the City Council indicated their willingness to adjust the City’s salary matrix by 5% and to grant step increases to those employees who had not yet reached their pay grade maximums. Council approved the 2025 budget containing these adjustments at their December 2, 2024, Council Meeting. Adoption of the Consent Agenda approved RESOLUTION 2024-64 SETTING 2025 SALARIES FOR CITY EMPLOYEES AND ESTABLISHING EMPLOYEE REIMBURSEMENT LEVELS. Approve Resolution Approving Refuse Haulers Licenses for 2025 The City had received completed applications from six refuse haulers who provided refuse collection and recycling services to Hugo businesses and residents. Adoption of the Consent Agenda approved RESOLUTION 2024-65 APPROVING 2025 REFUSE HAULERS LICENSES. Council Meeting Minutes for December 16, 2024 Page 5 of 6 Approve Resolution Approving Liquor and Tobacco Licenses for 2025 Staff had received the appropriate applications for renewals of liquor and tobacco licenses for 2025. Staff recommended approval of the license renewals subject to payment of all fees, taxes and utilities, and receipt of certificates of Liquor Liability Insurance. Adoption of the Consent Agenda approved RESOLUTION 2024-66 APPROVING THE 2025 LIQUOR AND TOBACCO LICENSES. Approve Fire Station Office Remodel Project Under Council direction, the fire department leadership had been looking to fill daytime response needs by allowing firefighters who typically work from home to have office space at the fire station. Necessary updates to the office include office furniture, plumbing, painting, carpet cleaning, and office/computer supplies. To keep costs down, much of labor will be done by fire department members. There is sufficient funding in the budget to cover these improvements. Adoption of the Consent Agenda approved fire station remodel project in the amount of $25,661.25. Approve Pay Request No. 5 for the Lift Station No. 12 Project C.W. Houle, Inc. had submitted Pay Request No. 5 in the amount of $70,346.45 for work certified through November 30, 2024, on the Lift Station No. 12 Project. The lift station was fully operational, and the Contractor was working on final punch-list items. Adoption of the Consent Agenda approved payment to C.W. Houle, Inc. in the amount of $70,346.45 Approve Resolution Approving Encroachment Agreement for 5351 129th Street North – Richard and Marilyn Sinclair Richard and Marilyn Sinclair had requested an encroachment agreement to allow construction of a fence within a drainage and utility easement on property located at 5351 129th Street North. The Senior Engineering Technician had reviewed the location of the fence and was comfortable with the request. Adoption of the Consent Agenda approved RESOLUTION 2024-67 APPROVING AN ENCROACHMENT AGREEMENT TO ALLOW CONSTRUCTION OF A FENCE WITHIN A DRAINAGE AND UTILITY EASEMENT ON THE PROPERTY LOCATED AT 5351 129TH STREET NORTH Reminder-Emergency & Disaster Training on Wednesday, December 18, 2024 City Administrator Bryan Bear reminded Council they had scheduled a meeting to attend Emergency and Disaster Training at the Washington County Government Center on Wednesday, December 18, 2024, from 6-8:30 p.m. Schedule Hugo Fire Department Annual Banquet on Saturday, January 18, 2025 City Administrator Bryan Bear informed Council they had been invited to attend the Hugo Fire Department Annual Banquet on Saturday, January 18, 2025, at the Hugo American Legion beginning at 5 p.m. Council Meeting Minutes for December 16, 2024 Page 6 of 6 Weidt made motion, Petryk seconded, to schedule a meeting to attend the Fire Department Annual Banquet. All Ayes. Motion carried. Cancel January 20, 2025, City Council Meeting Every year, the Martin Luther King Holiday falls on the same day as the second regular Council meeting in January. City Administrator Bryan Bear informed Council that staff had no agenda items that needed to go to that meeting and recommend Council cancel the January 20, 2025, Council meeting. Miron made motion, Strub seconded, to cancel the January 20, 2025, Council meeting. All Ayes. Motion carried. Schedule Goal Setting Workshop for Monday, January 27, 2025 Staff recommends Council schedule their annual Goal Setting Workshop for Monday, January 27, 2025. Petryk made motion, Miron seconded, to schedule the Goal Setting Workshop for January 27, 2025, at 6:00 p.m. in the Council Chambers. Adjournment Klein made motion, Miron seconded, to adjourn at 7:41 p.m. All Ayes. Motion carried. Respectfully Submitted, Michele Lindau, City Clerk MINUTES City Council Meeting – Emergency & Disaster Training Washington County Government Center Wednesday, December 18, 2024 6:00 p.m. COUNCIL PRESENT: Klein, Miron, Petryk, Strub, Weidt COUNCIL ABSENT: None The Hugo City Council attended the Washington County Emergency Management training done by MN Homeland Security on disaster roles and responsibilities for elected officials. The training concluded at approximately 8:30 p.m. Respectfully Submitted, Bryan J. Bear, City Adiministrator City of Hugo Claims January 6, 2025 G. 1 Vendor Invoice Amount Description Department A-1 Hydraulic Sales & Service Inc 0133940-IN 212.77$ Repairs - Unit #501 Public Works Alex Air Apparatus Inc 8955 1,042.38$ Compressor Service & Air Quality Test Fire Dept Allstream 21131662 116.39$ Fax Line Administration Amazon Capital Services 11PD-FLKD-GYRL 55.94$ Drinking Fountain Filter Public Works Amazon Capital Services 11PD-FLKD-GYRL 22.99$ USB Storage Case Engineering Dept Amazon Capital Services 11PD-FLKD-GYRL 20.48$ Tissues Public Works Amazon Capital Services 19CM-9MCR-DWGC 77.59$ Breakroom Supplies Public Works Amazon Capital Services 19HC-DPXN-G9CK 33.59$ Breakroom Supplies Public Works Amazon Capital Services 19HC-DPXN-G9CK 9.97$ Thermal Paper Rolls Public Works Amazon Capital Services 1FL1-NQJW-HP7X 91.96$ Cell Phone Accessories Street Dept Amazon Capital Services 1FL1-NQJW-HP7X 29.79$ Breakroom Supplies Public Works Amazon Capital Services 1FL1-NQJW-HP7X 19.98$ Cell Phone Accessories Public Works Amazon Capital Services 1HHL-R91L-RR1N 126.95$ Cell Phone Accessories Street Dept Amazon Capital Services 1T1P-34JH-NJFN (91.96)$ Cell Phone Accessories (Returned) Street Dept Apple Ford White Bear Lake 39560W 192.50$ Parts - Unit #110-16 Parks Dept Aspen Mills 342906 107.40$ Bugle Pins Fire Dept Aspen Mills 345242 343.89$ HFD Polo Shirts, Sweatshirts & Embroidery Fire Dept Basic Animal Rescue Training 2024-01 1,080.00$ Small Animal Rescue Training Fire Dept Batteries Plus Bulbs #031 P78500089 163.80$ LED Bulbs - Well Houses Water Utility Batteries Plus Bulbs #031 P79071567 546.00$ LED Bulbs - Well Houses Water Utility Bill Weigel Signs 24-307 25.00$ Nameplate - Ben Krull Mayor/Council Canteen Refreshment Services MSP115028 218.00$ Breakroom Supplies Gen Gov't Bldgs Canteen Refreshment Services MSP115228 378.77$ Breakroom Supplies Gen Gov't Bldgs Capital One Trade Credit/Northern Tool 54479784 909.98$ Pump for Hydro Seeder - Unit #420-25 Street Dept Century Link 651 429-3212 75.10$ Fire Station Phone Lines Fire Dept Christmas Light Contractors USA 26384 507.75$ Holiday Lighting Supplies (PPP) Parks Dept Cintas Corporation 5245632906 268.13$ First Aid Supplies Public Works CivicPlus 325147 1,342.92$ Annual Full Service Supplementation Subscription City Clerk Close, Debi CLAIM 64.85$ Meeting Mileage Building Inspections Comcast 226327229 509.40$ Business Internet (November) Administration Comcast 226327229 509.40$ Business Internet (November) Public Works Comcast 222187742 509.40$ Business Internet (December) Administration Comcast 222187742 509.40$ Business Internet (December) Public Works Comcast 12/12/2024 25.13$ Business Cable (thru Jan 21) Administration Comcast 12/19/2024 261.94$ Business Internet (thru Jan 27) Fire Dept Davis Mechanical Systems Inc 101140 2,420.00$ HVAC Repairs (FH) Fire Dept Dell Marketing LP 10775035800 1,670.52$ Micro Computers (2) Fire Dept Emergency Automative Technologies SERV24575 417.42$ Emergency Light System Repairs - Unit #6103-06 Fire Dept Emergency Automative Technologies SERV24605 19.14$ Emergency Light System Repairs - Unit #6103-06 Fire Dept Excel AV Group SI-156117 315.00$ Projector Repair - Lions Park Pavilion Parks Dept Fire Safety USA Inc 195096 680.55$ Structural Fire Gloves Fire Dept Fire Safety USA Inc 190999 6,106.17$ Repairs - Unit #7104-18 Fire Dept Foremost Promotions 729464 542.73$ Fire Department Open House Supplies Fire Dept Forest Lake NAPA November 978.36$ Auto Parts & Shop Supplies Various General Repair Service 83620 95.87$ Float - Lift Station No. 4 Sewer Utility General Repair Service 83620 (51.90)$ Float - Lift Station No. 4 (Returned) Sewer Utility Gregoire, Rick 2024 240.00$ Fitness Program Reimbursement Fire Dept Hawkins Inc 6932181 5,658.25$ Water Chemicals Water Utility Hawkins Inc 6937519 1,340.55$ Water Chemicals Water Utility Hisdahl Inc 18111 65.00$ Plaque (Council) Mayor/Council Hisdahl Inc 18126 42.00$ Par Tags Fire Dept Home Depot Credit Services 5520601 46.52$ Materials - Sump Pump Repair (CH) Gen Gov't Bldgs Home Depot Credit Services 5520601 29.97$ Heater - Hanifl Parks Dept Home Depot Credit Services 5520601 21.76$ Safety Gear Parks Dept Home Depot Credit Services 5520601 21.04$ Mailbox Repair Supplies Street Dept Home Depot Credit Services 5520601 19.88$ Work Lights (2) Public Works Hotsy Equipment of Minnesota 23490 424.55$ Parts for Washbay Public Works Innovative Office Solutions LLC IN4710004 140.27$ Restroom Supplies (PPP) Parks Dept Innovative Office Solutions LLC IN4721826 287.94$ Copy Paper Administration Innovative Office Solutions LLC IN4721826 183.79$ Breakroom Supplies Gen Gov't Bldgs Innovative Office Solutions LLC IN4721826 74.44$ Trash Can Liners (CH) Gen Gov't Bldgs Innovative Office Solutions LLC IN4721826 18.20$ Rubber Bands Administration Instrumental Research, Inc. 6041 120.00$ Water Bacteria Testing Water Utility Jefferson Fire & Safety Inc IN321654 511.84$ Fire Hoses Fire Dept Jefferson Fire & Safety Inc PB001951 1,363.75$ TFT Storz Coupler Valve Fire Dept Jensen, David 2024 100.00$ Fitness Program Reimbursement Fire Dept Johnson/Turner November 4,829.00$ Prosecution Fees (Flat Fee) General Legal Johnson/Turner November 294.95$ Disbursements (Prosecution Costs) General Legal Johnson/Turner November 5,624.25$ Civil Legal Fees - See Attached Breakdown General Legal Klein, Lori December 595.00$ December Cleaning Services (PPP) Parks Dept Klein, Matthew CLAIM 29.25$ Propane (Holiday) Public Works Knife Lake Concrete Inc 992423.1 24,974.40$ Pickleball Court & Concrete Playground Curb - Diamond Point Special Park Fund Page 1 City of Hugo Claims January 6, 2025 G. 1 Vendor Invoice Amount Description Department Knowlan's Super Markets Inc 8894 643.54$ Election Judge Supplies Elections Knowlan's Super Markets Inc 9710 15.17$ Meeting Supplies Planning & Zoning Knowlan's Super Markets Inc 9720 85.76$ Meeting Supplies Public Works Lakes Gas 83069 200.00$ Propane Cylinder for Sod Roller - Unit #429-25 Parks Dept Landform 36287 573.78$ Residential Zoning Code Update Planning & Zoning Leadership Growth Group LLC 24201b 147.94$ Continuing Education Books Administration Leadership Growth Group LLC 25201 600.00$ Advanced Management Program - Bryan Bear Administration League of Minnesota Cities 417833 125.00$ MCMA Workshop - Bryan Bear Administration League of Minnesota Cities 417175 350.00$ Elected Leaders Institute - Krull Mayor & City Council Lebens Floral & Garden 10977 317.50$ Landscaping Supplies Parks Dept Lebens Floral & Garden 10977 287.50$ Landscaping Supplies Gen Gov't Bldgs Lincoln National Life Insurance Co. January 1,207.10$ Disability Premium Finance Dept Lindau, Michele CLAIM 89.90$ State Flag (CH) Gen Gov't Bldgs Lindau, Michele CLAIM 29.98$ Canva Subscription (Nov - Dec) Administration Lindau, Michele CLAIM 13.76$ Meeting Mileage City Clerk Lindau, Michele CLAIM 10.72$ Office Supplies (Amazon) Administration Lindau, Michele CLAIM 5.58$ Certified Mail Administration LRS Portables of Minnesota MP265535 128.00$ Toilet Rental - Oakshore Park Parks Dept MacQueen Emergency P404020 21.95$ Helmet Decals Fire Dept MBPTA 2025 100.00$ 2025 Membership Dues - Debi Close Building Inspections Menards 48020 54.99$ Shop Tools Public Works Menards 48020 7.18$ Street Sign Materials Street Dept Menards 48304 8.99$ Wire for Lights - Well Houses Water Utility Menards 48332 69.94$ Fire Department Supplies Fire Dept Menards 48457 164.97$ Paint & Supplies (RLC) Gen Gov't Bldgs Menards 48457 49.49$ Motion Sensor Public Works Menards 48457 27.98$ Shop Supplies Public Works Menards 48754 6.47$ Pest Control Supplies - Well Houses Water Utility Menards 49277 69.99$ Vacuum (PPP) Parks Dept Menards 48751 (49.49)$ Motion Sensor (Returned) Public Works Metering & Technology Solutions INV6728 129.26$ Water Meter Hardware Water Utility Metering & Technology Solutions INV6768 5,610.08$ Water Meters Water Utility Metro Area Management Association 2011 50.00$ MAMA Membership Dues - Bryan Bear Administration Metro Chief Fire Officers Association Dues 100.00$ 2025 Membership Dues - Compton Jr. Fire Dept Metro-INET 2314 10,341.00$ December Computer Service Various Minnesota Cleaning Services Inc 0125HH02 605.00$ December Cleaning Services Gen Gov't Bldgs Minnesota Cleaning Services Inc 0125HH03 100.00$ December Cleaning Services - Hanifl Parks Dept Minnesota Cleaning Services Inc 0125HH04 741.00$ December Cleaning Services - PW Facility Public Works Minnesota Cleaning Services Inc 0125HH04 450.00$ December Cleaning Services Fire Dept Minnesota Cleaning Services Inc 0125HH04 247.00$ December Cleaning Services - Rice Lake Room Gen Gov't Bldgs Minnesota Pollution Control Agency SD-57451775 23.00$ Wastewater Certification Renewal - Anderson Sewer Utility Minnesota Rural Water Association 2025 450.00$ 2025 Membership Dues Water & Sewer Minnesota State Fire Chiefs Association 8746 580.00$ 2025 Membership Dues (9) Fire Dept MN Dept of Transportation P00019441 32.12$ Fable Hills Bridge Inspection Services Street Reconstruction MN Fire Service Certification Board 13345 131.00$ Fire Instructor I Certification Exam - Gregoire Fire Dept Municipal Emergency Services Inc IN2172666 420.00$ Silv-Ex Plus Foam Fire Dept Olson, Timothy 2024 160.00$ Fitness Program Reimbursement Fire Dept O'Reilly Auto Parts 5914-314480 14.99$ Parts - Unit #348-23 Parks Dept O'Reilly Auto Parts 5914-314947 84.64$ Parts - Unit #112-18 Street Dept O'Reilly Auto Parts 5914-315891 54.92$ Parts - Unit #116-18 Street Dept O'Reilly Auto Parts 5914-317327 15.99$ Cell Phone Accessories Water & Sewer O'Reilly Auto Parts 5914-318075 42.32$ Parts - Unit #116-18 Street Dept Otter Lake Animal Care Center 253967 2,010.00$ Boarding & Rescue Fees Animal Control Performance Plus LLC 11062076 351.00$ Pre-Placement Medical & Screening - Pieper Fire Dept Performance Plus LLC 11062076 473.00$ Pre-Placement Medical & Screening - Brauner Fire Dept Performance Plus LLC 11062097 5,379.00$ Medical Evaluations, Audiometry & Mask Fittings (24) Fire Dept Pomp's Tire Service Inc 150188260 853.35$ Service Call & Tire Repairs - Unit #326-11 Street Dept Quadient Inc 17583753 175.75$ Ink Cartridge Administration RDO Equipment Co P2547970 143.62$ Safety Gear (Tree Trimming) Street Dept Ricoh USA, Inc 108822452 194.61$ January Copier Lease Payment Public Works Sensible Land Use Coalition 2994 250.00$ 2025 Membership Dues Dues & Subscriptions Signature Lighting Inc 1417 7,585.00$ Streetlight Repairs - Materials Street Dept Signature Lighting Inc 1420 329.17$ Streetlight Repairs Street Dept SiteOne Landscape Supply LLC 148700431-001 68.71$ Irrigation Hardware Parks Dept SiteOne Landscape Supply LLC 148700431-001 54.90$ Outdoor Lighting Hardware (CH) Gen Gov't Bldgs TASC IN3289772 50.00$ January Cobra Administration Fee Finance Dept The Prestwick Group Inc INV29413 1,715.68$ New Public Works Facility Sign Public Works The Prestwick Group Inc INV29413 1,636.63$ Diamond Point Park Sign Special Park Fund The Prestwick Group Inc INV29413 2,506.94$ Irish Avenue Park Sign (2) Special Park Fund T-Mobile 870254054 603.87$ Cellular Phone Charges Various T-Mobile 870254054 10.50$ Tower No. 4/Well No. 6 Cradlepoint Water Utility T-Mobile 870254054 10.50$ Rice Lake Centre Cradlepoint Administration Page 2 City of Hugo Claims January 6, 2025 G. 1 Vendor Invoice Amount Description Department T-Mobile 870254054 40.25$ Hanifl Cradlepoint Parks Dept Toshiba Financial Services 5032514317 148.74$ January Copier Lease Payment Fire Dept Toshiba Financial Services 5032514317 14.51$ Overage Charges (Color) Fire Dept Toshiba Financial Services 5032514317 1.00$ Overage Charges (B & W) Fire Dept Total Control Systems Inc 11464 981.47$ Tech Labor & Parts - Lift Station No. 2 Sewer Utility Total Control Systems Inc 11464 981.47$ Tech Labor & Parts - Lift Station No. 3 Sewer Utility Total Control Systems Inc 11464 247.95$ Tech Labor - Well House No. 5 Water Utility Total Control Systems Inc 11464 247.95$ Tech Labor - Lift Station No. 2 Sewer Utility Total Control Systems Inc 11464 155.75$ Tech Labor - Lift Station No. 11 Sewer Utility Total Control Systems Inc 11464 155.75$ Tech Labor - Lift Station No. 12 Sewer Utility Trepanier Stucco, LLC 12/16/2024 650.00$ Stucco Repairs (FH) Fire Dept Triemert, Corey CLAIM 325.00$ Work Boot Reimbursement Street Dept Tri-State Bobcat A43450 340.32$ Parts - Unit #350-24 Street Dept Tri-State Bobcat A44455 260.00$ Parts - Unit #350-24 Street Dept TruGreen 203150939 585.06$ Salt (Snow & Ice Control) Street Dept Tyler Technologies Inc 025-486813 5,980.86$ Annual Software Maintenance Fees Finance Dept Tyler Technologies Inc 025-486813 402.02$ Annual Support Service for Scanning System Water & Sewer Uline 186184328 110.74$ Sandbags Public Works Uline 186260131 128.74$ Clear Poly Sheeting & Cutter Fire Dept UniFirst Corporation 1410106391 162.82$ Uniforms, Supplies & Floor Mat Services (PW) Public Works UniFirst Corporation 1410107914 159.62$ Uniforms, Supplies & Floor Mat Services (PW) Public Works UniFirst Corporation 1410109323 12.80$ Restroom Supplies & Floor Mat Services (CH) Gen Gov't Bldgs UniFirst Corporation 1410109324 159.62$ Uniforms, Supplies & Floor Mat Services (PW) Public Works UniFirst Corporation 1410110722 10.55$ Restroom Supplies & Floor Mat Services (CH) Gen Gov't Bldgs UniFirst Corporation 1410110724 159.62$ Uniforms, Supplies & Floor Mat Services (PW) Public Works US Bank Equipment Finance 544272131 557.03$ December Copier Service Payment Administration US Bank Equipment Finance 544272131 52.01$ Overage Charges (Color) Administration Verizon Wireless 6101902670 23.38$ Cellular Phone Charges Public Works Verizon Wireless 6101902671 20.02$ Cellular Phone Charges Fire Dept Viking Electric S008703350.001 56.24$ Light Bulb Sockets - Well Houses Water Utility Washington County 227433 32,523.07$ Traffic Striping Services Street Dept Washington County 227567 4,500.90$ 800 Radio User Fees - Oct thru Dec Fire Dept Washington County 227399 1,944.22$ 2025 Truth In Taxation Notice Miscellaneous White Bear Locksmith 35465 57.00$ Keys - Towers & Well Houses Water Utility White Bear Locksmith 35465 54.00$ Keys - Lift Stations Sewer Utility White Bear Locksmith 35465 12.00$ Keys - RLC Gen Gov't Bldgs WSB & Associates November 28,359.50$ Engineering Fees - See Attached Breakdown Various Ziegler Inc IN001717409 1,052.20$ Parts - Unit #326-11 Street Dept Ziegler Inc IN001746774 73.91$ Parts - Unit #304-23 Street Dept 202,424.37$ Total Claims for January 6, 2025 Page 3 Landform® and Site to Finish® are registered service marks of Landform Professional Services, LLC. December 17, 2024 Rachel Juba City of Hugo 14669 Fitzgerald Avenue North Hugo, MN 55038 RE: 2025 Rate Schedule Dear Ms. Juba, Thank you for utilizing Landform to provide planning services for the City. Our firm is dedicated to our values of quality, leadership, relationships, mentorship and enthusiasm. We appreciate the opportunity to continue to bring thoughtful planning solutions and add value for you and the community. We look forward to working with your team to continue to provide planning services in support of City staff efforts. As you know, employee recruitment and retention are the greatest challenges facing businesses and cities right now. We are committed to providing the highest quality of client service and our rate schedule allows us to be competitive with other firms and provide a comprehensive range of services through retention of our most talented employees. Our 2025 rates are attached. We deeply value our 20+ year relationship with the City of Hugo and look forward to continuing to provide professional planning services to assist your staff. Landform has a full-time staff of professionals, all of whom are committed to providing services that are truly tailored to the communities we serve and helping our clients plan great places. If you have any questions or comments, please do not hesitate to call me at 612.638.0225. Sincerely, Landform Kendra Lindahl, AICP Principal Planner Rachel Juba 2 December 17, 2024 2025 Municipal Rate Schedule Professional Services Title Hourly Rates Senior Principal $276 Principal $226 Principal Planner* $179 Associate $178 Studio Lead $186 Project Lead/Senior Designer/Senior CAD Manager $173 Planning Lead/Senior Planner $173 Planner III/Designer III/Survey Technician III $132 Planner II/Designer II/Survey Technician II $110 Planner I/Designer I/Survey Technician I $97 Survey Lead $178 Senior Surveyor $178 Crew Chief $173 Survey Coordinator $151 Field Technician $81 Construction Administrator III $189 Construction Administrator II $135 Construction Administrator I $113 Accounting/Business/Office Lead $113 Office Coordinator $108 Administrative Assistant $86 *Reduced Principal Planner rate 1. Standard Internal reimbursable expenses associated with prints, plots, scanning and mileage are included in our hourly rates. Deliverable plots and prints will be charged at internal rate. 2. External reimbursable expenses shall be billed at cost plus 15%. From:Jennifer Prock To:Michele Lindau Cc:Angela Lewis Dmello Subject:2025 NYFS Contract Date:Monday, November 25, 2024 4:05:26 PM Attachments:Hugo and NYFS Agreement 2025.pdf Hugo Invoice 2025.pdf NYFS Hugo FY24 Report.pdf NYFS General Brochure.pdf NYFS Restoring Power Program.pdf Caution: This email originated outside our organization; please use caution. Dear Michele, I hope this finds you well as we approach the transition from fall to winter, and with it all the busyness and connection this season can bring. I have attached the updated 2025 contracts with NYFS, Invoice, Service Statistics for your city and general service demographic information, and some updated materials. Please let me know if there are any questions. Angie has shared that she would be happy to come any time to present on the work being done at NYFS to your city council and she is cc’d on this email if you would like to get that scheduled! We are thrilled to share some exciting updates at NYFS. We had another successful year of strengthening and deepening our work, and are seeing increased need that we are meeting in our communities: We served 895 clients, up from 605 clients last FY – a 48% increase! This is incredible growth in one year, and we are proud of how we are meeting our mission. We provided 24,083 appointments, up 107% from 11,630 last year! Clients are sticking with us for as long as they need care. We had the first fiscal year in many years (including pre-pandemic) with a balanced budget. We are now operating in a fiscally sustainable way. We have increased revenue to 4.7-million-dollars annually from 2.75-million-dollars annually in just two years. We launched our Restoring Power Program, working with child and adult victim- survivors of domestic violence and sexual assault in advocacy, case management, individual, and group therapy. We are now supporting White Bear Lake with criminal advocacy for victim-survivors. We launched Psychological Evaluation Services, specializing in trauma informed ADHD and Autism evaluation. This program ensures that all children and adolescents who need a formal evaluation from a psychologist to ensure a correct diagnosis can access this service (which is scarce in our community). We expanded our School Based Mental Health Services to the Centennial School District and added positions with Mounds View School District in Early Childhood education. We have had all of our providers trained in specialty interventions for treating trauma across the lifespan. We updated and revised our (newly named) Youth Pathways program, ensuring we are integrating best practices in Youth Diversion and Community Connections. We have maintained our 95% success rate at 6 months post completion of diversion services without any re-offenses. We launched a collaboration with the White Bear Area Food Shelf and supported their development of trauma informed care and design, and now have NYFS staff at their new food shelf to connect with potential clients weekly. We have deepened our investment in mental health workforce development, expanding our Internship Program to our Community Services department, and launching a Clinical Ladders Program where offer robust training during therapists’ apprenticeships. We sadly were forced to close our NETS Day Treatment program. This program is not reimbursed by medical insurance at a rate that allows us to operate sustainably. Thank you for your continued partnership. NYFS would be unable to provide these services, and unable to offer a low sliding fee scale our clients if it weren’t for your investment and collaboration. We are able to do so much more together than we could ever do on our own! Best, Jennifer Prock Finance Director & Angela Lewis-Dmello President & CEO Jennifer Prock / Finance Director jennifer.prock@nyfs.org / 651-379-3464 Northeast Youth & Family Services Office: 651-486-3808 / Fax: 651-486-3858 3490 Lexington Ave N, Suite 205, Shoreview, MN 55126 1280 Birch Lake Blvd N., White Bear Lake, MN 55110 nyfs.org AGREEMENT 1. PARTIES This agreement is made and entered into by and between the City of Hugo, Minnesota (“Municipality”) and Northeast Youth and Family Services (“NYFS”). 2. RECITALS a. NYFS is a non-profit social service agency whose mission is to meet the unmet developmental needs of at-risk youth and families within their community environment with emphasis on providing services through collaboration and coordination with existing community resources. These services are available to youth and families residing in the northern suburbs of Ramsey and Washington County, including, but not limited to, the municipalities which are signatory to agreements which are identical to this Agreement (“participating municipalities”) and students and families from Independent School Districts 621, 622, 623, 624, 282, and 832. b. Through this Agreement the Municipality intends to contract with NYFS to provide such services to its residents and to act as a sponsor of NYFS by providing financial support, a method to establish appropriate services to be provided and policy guidance for its activities. c. This Agreement shall be used as the formal agreement between NYFS and each of the participating municipalities. This Agreement is intended to continue the spirit of cooperation and collaboration in the provision of social services between the Municipality and NYFS. 3. TERMS AND CONDITIONS In consideration of the mutual understandings of this Agreement, the parties hereby agree as follows: a. Prior Agreements Cancelled. By execution of this Agreement any prior agreements and amendments thereto between the parties are hereby cancelled. b. Services Provided. NYFS shall provide the Municipality and its residents with youth and family programs set forth in the Addendum attached hereto. c. Principles of Service and Program Establishment and Operations. On a yearly basis and prior to submission of its annual budget, as provided for hereafter, NYFS shall: i. Report regarding proposed changes in services and programs to the Municipality; and ii. Establish a fair and open bidding/request for proposal (RFP) process to contract, manage or provide such services and programs, which are not directly provided by NYFS staff. d. Funding i. In addition to the participating municipalities’ share of the annual budget, funds for the operation of NYFS will be raised by NYFS endeavoring to secure user fees, grants and appropriations from private organizations, the State of Minnesota, Federal and County agencies, and other legal and appropriate sources. ii. The Municipality shall pay annually to NYFS the base amount listed in Exhibit A. This base amount will be adjusted annually for inflation/deflation based on the Standard Metropolitan Statistical Area Consumer Price Index for All Urban Consumers (CPI-U) and municipal population estimates based on MN State Demographic Center. Any adjustment in the payment beyond those indicated by reference to the CPI-U shall require approval of each of the participating municipalities. iii. Any new municipality joining into this agreement will pay a base amount annually to NYFS that is on par with the amount paid by current participating municipalities. iv. Amounts payable by the Municipality shall be paid to NYFS on or before January 30th of each year, or at a date mutually agreed upon by both parties, to cover the Municipality’s share for that year. e. Board Representation. The Municipality shall have the right to NYFS Board Representation of City Council, staff or community members (as designated by the Municipality and approved by NYFS Board) on the Board of Directors as either a Board Member or Board Advisor. f. Further Obligations of NYFS. In addition to the obligations set forth elsewhere in this Agreement, this Agreement is further contingent upon NYFS doing the follows: i. The Bylaws of NYFS shall be amended to add provisions requiring an open process for contracting services as provided for in paragraph C.2., above, and prohibiting NYFS from supporting or opposing individual candidates for election to public office in any of the participating municipalities; and adding the requirement that IRS 501.C3 status be maintained. ii. On or before June 30, of any year NYFS shall submit the proposed city budgeted amount for the subsequent year. iii. On or before December 31, of any year NYFS shall submit a written report to the Municipality including an Annual Report, the audited financial statement, and a program specific summary of services provided to the municipality; in addition, biannually NYFS shall submit a written report to the participating municipality. iv. Periodically advising the Municipality of services available through NYFS to the Municipality’s residents; v. Establishing a sliding scale for services available through NYFS to the Municipality’s residents and periodically advising the Municipality of such fees; vi. Providing other reasonable information requested by the Municipality; vii. Purchasing a policy of liability insurance in the amount of at least $1,500,000.00, naming the Municipality as an additional insured and providing a copy of the insurance certificate evidencing such policy to the Municipality; viii. Upon Request NYFS will provide the Municipality with a copy of its Articles of Incorporation, Bylaws, Amendments thereto, and the IRS tax exempt status letter; ix. NYFS shall defend and indemnify the Municipality from any and all claims or causes of actions brought against the Municipality of any matter arising out of this Agreement or the services provided pursuant to this Agreement; and, x. Without the written approval of the Municipality, NYFS will not enter into any agreement with any other municipality which differs from the terms and conditions of this Agreement. g. Term. The term of this agreement will be through December 31, 2025. Unless either party gives at least 6 months written notice of its intent to cancel this Agreement effective December 31 of the year in which the notice is made, NYFS will continue to provide services to the Municipality if a successor agreement has not been executed prior to the end of the term. h. (A) Distribution of Assets Upon Dissolution. If NYFS ceases to operate, the Board of Directors will do one of the following: i. Give the assets to one or more non-profit agencies providing similar social services in the northern suburbs of Ramsey County; or, ii. Form a new Foundation to fund appropriate social service programming in the northern suburbs of Ramsey County. The final Distribution of Assets Plan must be approved by the Ramsey County District Court. (B) Deviation from the Mission. If the City Council determines that NYFS has materially deviated from its mission (See II. Recitals, A.), the City Council may ask the NYFS Board of Directors to consider dissolving the agency and liquidating the assets. The Board will do one of the following: iii. Consider the request and by a majority vote deny it. iv. Consider the request and by a majority vote agree to modify the programs to be consistent with the mission. v. Consider the request and by a majority vote agree with the request and move to dissolve the agency and liquidate the assets. IN WITNESS WHEREOF, the parties have executed this Agreement on this date set forth below. MUNICIPALITY City of Hugo By: ______________________________ Elected Official Its: ______________________________ Clerk/Manager/Administrator Dated: ______________________________ NYFS Northeast Youth & Family Services By: _______________________________ Its: President/CEO By: _______________________________ Its: Chair of the Board of Directors Dated: _______________________________ Municipal Contract Community Advocate Municipal Contract Community Advocate 2024 2024 2025 2025 Board Approved Increase Dollar increase Board Approved Increase Dollar increase of 3.5% based on CPI-U over 2024 of 3.5% based on CPI-U over 2024 Falcon Heights 12,846.17$ 13,295.79$ 449.62$ -$ Little Canada 24,351.22$ 25,203.52$ 852.29$ -$ Mounds View 31,249.09$ 29,307.75$ 32,342.81$ 1,093.72$ 30,333.52$ 1,025.771$ -$ New Brighton 54,205.27$ 11,723.10$ 56,102.45$ 1,897.18$ 12,133.41$ 410.31$ -$ North Oaks 12,435.86$ 12,871.12$ 435.26$ -$ Roseville 85,044.05$ 23,446.20$ 88,020.59$ 2,976.54$ 24,266.82$ 820.62$ -$ St. Anthony 21,258.67$ 14,653.87$ 22,002.72$ 744.05$ 15,166.76$ 512.89$ -$ Shoreview 62,085.53$ 64,258.53$ 2,172.99$ -$ Birchwood 2,053.89$ 2,125.77$ 71.89$ -$ Hugo *17,072.48$ 17,670.01$ 597.54$ -$ Mahtomedi 18,850.74$ 19,510.52$ 659.78$ -$ Vadnais Heights 30,944.29$ 32,027.34$ 1,083.05$ -$ City of WBL 59,689.33$ 29,307.75$ 61,778.46$ 2,089.13$ 30,333.52$ 1,025.77$ -$ WB Tnship 26,013.56$ 26,924.03$ 910.47$ -$ Lauderdale 5,324.63$ 5,510.99$ 186.36$ -$ Arden Hills 23,303.54$ 24,119.16$ 815.62$ Total 486,728.34$ 108,438.67$ 503,763.83$ 17,035.49$ 112,234.02$ 3,795.35$ * Hugo splits its support of NYFS with another Community-Based Mental Health agency Northeast Youth & Family Services Municipal Participation Figures Page 1 of 1 NORTHEAST YOUTH & FAMILY SERVICES 3490 Lex ingt on Av enue N . Shorev iew , M N 55126 U S 651-486-3808 jennifer.proc k@ny fs .org ww w .ny f s .org INVOICE BILL TO City of Hugo INVOICE 1583 DATE 01/01/2025 TERMS Net 30 DUE DATE 01/31/2025 ACTIVITY QTY RATE AMOUNT Municipality Service Contract Mental Health Serv ic es Contract between City and NE Youth & Family Serv ic es 1 17,670.01 17,670.01 SUBTOTAL 17,670.01 TAX 0.00 TOTAL 17,670.01 BALANCE DUE $17,670.01 City of Hugo Report Period: July 1, 2023 to June 30, 2024 $17,072 $26,090 # of Clients Service Cost 12 155 Sessions 24,490.00$ 2 2 Youth 1,600.00$ 14 157 26,090.00$ 14 157 26,090.00$ Total for Contracted Services Totals for all Individual Services Mental Health Diversion Services The following is a brief report on Northeast Youth & Family Services’ programs that directly affect the residents of your community. If you have any questions about this report, please call Angela Lewis Dmello, President & CEO, at (651) 379-3404. Contracted Services Services Provided City Totals (Please note that these numbers represent the actual cost of services provided, not what NYFS charges clients for these services. Because of your collaboration with NYFS, many of these services are offered free of charge or on a sliding-fee scale based on income.) Annual City Contract for Service in CY 2024 Total cost of all services July 1, 2023-June 30, 2024 Units Northeast Youth and Family Services Client Statistics July 1, 2025 –June 30, 2024 Total Clients Served Ages Race/Ethnicity Gender Identity Transforming Lives Northeast Youth & Family Services is a community-driven, trauma-informed, and culturally responsive mental health and community service agency. We serve clients of all ages and specialize in supporting youth and their families. Our commitment to equity, authenticity, and community-driven services provides hope for many in our community who face financial, cultural, linguistic, and logistical barriers to care. Our sliding-fee scale means our doors are open to all, regardless of financial circumstances. Our focus on transformative relationships informs our collaboration with families, school staff, and law enforcement and enhances the positive impact on our clients and the communities we serve. Together, we are doing so much more than we could ever achieve on our own. Our mission is to transform lives by ensuring access to care that nurtures healing, cultivates community, and inspires hope. Welcome NYFS.ORG community- centered committed& NYFS mental health services are culturally responsive, trauma informed, and community-centered. Mental Health Clinics We collaborate with clients to identify their goals and develop a plan to help reduce challenging symptoms and increase their mental health and wellbeing. We believe healing and growth occur when clients can better understand their needs and experiences through a supportive relationship with a skilled, compassionate provider. Our goal is to offer clients quality mental health treatment within the context of their culture and lived experiences. We provide individual, couple, family, and group psychotherapy services attuned to the needs of each client, and we are the only nonprofit clinic in our area that specializes in serving youth and families. Our providers have a diverse array of training and experience and offer specialized child-centered play therapy, art therapy, trauma-focused therapy, and child and adolescent psychiatry services. We are proud to meet clients where they are in their health and healing journey. School-Based Mental Health Our school-based services provide mental health support to students in four northeast metro school districts. Staff provide individual and group therapy to address issues related to trauma, depression, anxiety, and other concerns to elementary, middle, and high school youth. NYFS therapists collaborate with school staff to support student mental health needs in the classroom. Therapists also serve as a resource for schools, sharing their expertise while helping staff attend to the mental health needs of the school as a whole. This helps create better social, emotional, and academic outcomes for students, teachers, and schools. Day Treatment Program Our Day Treatment program offers therapeutic support to youth who are struggling with mental health symptoms that negatively affect their daily functioning. Our services are trauma- informed, culturally-responsive and individualized. We serve teens age 12-18 and specialize in serving those who have experienced trauma and are coping with moderate to severe anxiety or depression. We combine coping skills and behavioral interventions with group, individual, and family therapy. Our half-day therapeutic programming is paired with half-day educational services in partnership with the Mounds View School District. With these supports, youth are better able to identify, express, and regulate their emotions, heal from challenging past experiences, and connect with their families and communities in positive ways. Mental Health Services NYFS.ORG empower support& SERVING CHILDREN AGES 4 AND UP, YOUTH, & ADULTS INDIVIDUAL, COUPLES, AND FAMILY THERAPY IN-PERSON & TELEHEALTH CLINIC IN SHOREVIEW & WHITE BEAR LAKE We serve clients seeking care for: • depression & anxiety • relationship concerns • parenting support • identity exploration & development • traumatic experiences • attention challenges • autism • mood & psychotic disorders • and a variety of goals related to enhancing mental health and relationships. Diversion Program The Diversion Program is an alternative to the traditional juvenile justice system that works with youth ages 12–17 who have justice system involvement including theft, disorderly conduct, or alcohol/drug use. Using restorative principles, we help youth address the incident and harm caused, rebuild their lives, and get back on track. Youth attend one-to-one consultations, educational seminars with their parents, perform community service, and if applicable, pay restitution. Youth may also complete service projects, write apology letters to those they have harmed, and participate in chemical use testing. The program works to reduce the number of negative contacts youth have with law enforcement while significantly reducing the likelihood that they will reoffend in the future. Community Services Community Connections Program The Community Connections Program is a seven-week, group-based experience for youth that builds social skills, self-confidence, and resilience through career exploration, self-reflection, volunteer activities, and contacts with other community service organizations. It is offered to youth who would benefit from deeper and healthier connections with peers, adults, and their community. Components of the program include community service, work skills identification, and development of key life skills. Youth benefit from social connections with their peers and supportive adults while learning about resources in their community that will help them now and in the future. Youth are also introduced to activities that promote healthy living through nutrition, fitness, routine setting, time management, goal setting and moderation. Combined together, these components foster self-awareness, confidence, social skill development, and resilience. Community Advocate Program Through partnerships with five local law enforcement departments, our Community Advocate Program co-creates public safety by supporting citizens who have needs outside of the scope of law enforcement. The program serves adults who have had repeated contact with law enforcement and have underlying needs that cannot be resolved by law enforcement alone. The advocate provides crisis intervention services, mental health support, referrals for chemical health services, assists with homelessness prevention, and support for survivors of abuse. By serving as a bridge between law enforcement, case managers, caregivers, and family members, the advocate is able to improve the quality of life of our clients while reducing reliance on law enforcement. The last few years have been really tough on our youth. A lot of those connections, and feeling like being a part of a community, have gone away. Youth and their families are really struggling and that’s why programs like these are so important. — Erika Scheider, Roseville Chief of Police Organizational Values Equity, Inclusion, and Belonging We are dedicated to creating an inclusive, accessible, and accepting environment that embraces diverse perspectives and backgrounds. It is our responsibility to work toward systemic justice and provide care individualized to client needs. Authenticity We strive to be genuine, grounded, and true to our values in order to be both trusting and trustworthy. We are invested in learning and we approach each encounter with humility and sincerity. Community Driven Our services are driven by the strengths and needs of our community. Through collaboration with clients and community members we ensure our services are financially, logistically, linguistically, and culturally accessible. Integrity We are accountable, ethical, fiscally responsible, transparent, and dedicated to aligning our decisions with our organizational values. Transformative Relationships We believe that healing and growth happen in the context of empathic, client-centered, intentional relationships. We bear witness to our clients’ journeys with curiosity and kindness to promote transformational change. Innovation We look beyond what is and imagine what could be. We stay on the leading edge of care by encouraging our clients and staff to explore their passions and strengths with a creative and playful spirit. Wellbeing We believe that staff wellness and work sustainability are key to providing excellent mental health care. We understand the importance of organizational supports for secondary traumatic stress and are committed to a family- first work philosophy for staff. We envision a world where thriving individuals and families are the building blocks of safe, unified communities established through a network of empowered and collaborative partnerships. Transforming lives together. innovative passionate& ©2023 Northeast Youth & Family Services. All rights reserved. Shoreview Headquarters 3490 Lexington Avenue North, Suite 205 Shoreview, MN 55126 Phone: (651) 486-3808 Fax: (651) 486-3858 White Bear Lake Clinic 1280 North Birch Lake Blvd. White Bear Lake, MN 55110 Phone: (651) 429-8544 Fax: (651) 407-5301 NYFS.ORG NYFSorg Northeast Youth & Family Services OUR PARTNERS MUNICIPALITIES Arden Hills Birchwood Village Falcon Heights Hugo Little Canada Lauderdale Mahtomedi Mounds View New Brighton North Oaks Roseville St. Anthony Shoreview Vadnais Heights White Bear Lake White Bear Township SCHOOL DISTRICTS Roseville Area Schools Mounds View Public Schools St. Anthony- New Brighton Schools White Bear Lake Area Schools PUBLIC SAFETY Mounds View New Brighton Ramsey County Attorney’s Office Roseville St. Anthony White Bear Lake NYFS is here for you, because of you. If you need help — reach out today. If you can offer help — please donate. TO MAKE AN APPOINTMENT: Call us at 651-486-3808 or visit nyfs.org/request-appointment TO DONATE: Go to nyfs.org/donate or mail your donation to: 3490 Lexington Ave. N. Shoreview, MN 55126 DOMESTIC VIOLENCE AND SEXUAL ASSAULT SERVICES We work with children, adolescents, and adults. In our work with youth, we recognize and help to heal the effects of witnessing violence, even when the child has not directly experienced abuse. VISIT NYFS.ORG We support individuals and families as they seek safety in many different ways. People come to NYFS with a variety of situations and needs, which can include: • The family wants to stay together and for the violence to stop • A person is in the process of leaving or has left an abusive relationship • The relationship violence was years or decades ago and the person is interested in deepening their healing and sense of connection to themselves, others, and/or a larger sense of meaning and purpose. If you think you or someone you care for has experienced any form of abuse or trauma, please reach out today to get support and resources to help you seek safety and recovery. Our Restoring Power program supports victim-survivors who have experienced a range of abusive behaviors from others, including emotional, psychological, physical, technological, and sexual violence. Restoring PowerRestoring Power ©2024 Northeast Youth & Family Services. All rights reserved. Shoreview Clinic 3490 Lexington Ave N Suite 205 Shoreview, MN 55126 (651) 486-3808 White Bear Lake Clinic 1280 North Birch Lake Blvd. White Bear Lake, MN 55110 (651) 429-8544 LOCATIONS: NYFSorg Northeast Youth & Family Services NYFS.ORG Transforming lives by ensuring access to care that nurtures healing, cultivates community, and inspires hope. NYFS offers many different services within our Restoring Power Program: • Safety planning • Emotional support and coping skills • Learning about abuse, its effects, and opportunities for healing • Information about victim rights and resources • Case management and resource referral • Legal advocacy: court and law enforcement interview accompaniment, applying for an Order for Protection or Harassment and Restraining Order • Individual Therapy: for all ages and is typically helpful for reducing mental health symptoms of trauma • Group Therapy: a variety of groups for all ages What constitutes abuse? SCAN THE QR CODES WITH YOUR PHONE TO LEARN MORE RESOURCES: The effects of witnessing violence on youth. Visit nyfs.org/community/domestic-violence- and-sexual-assault-services. To make an appointment, call 651-486-3808 or visit nyfs.org/start/appointment. Take Your Next Step. Page 1 of 1 Animal Control Service Agreement Pricing Addendum Municipality: __Hugo, MN____________________________ This Pricing Addendum (the “Pricing Addendum”) is entered into and to be effective January 1st 2025 by and between the “Contractor” Companion Animal Control LLC., PO Box 3, Bayport, MN 55003 and the “Municipality”. This addendum is intended to establish pricing for services provided by Contractor pursuant to the “Animal Control Services Agreement” previously entered between during the year of __2013_____. CONTRACTOR FEES FOR SERVICES: The Municipality shall pay the Contractor for performance of this Contract as detailed in ‘Contractor Duties’, in current funds: 2025 Monthly Retainer Fee Increases Jurisdiction’s Human Population Increase of A. <1,000 $20 B. 1,001-2,000 $40 C. 2,001-4,000 $60 D. 4,001-8,000 $80 E. >8,001 $90 Current Monthly Retainer: $80 New Monthly Retainer: $170 2025 Service fee schedule: a. Daytime call response 7:00 am - 7:00 pm: $100 (a difference of__$5____) b. Overnight call response 7:00 pm - 7:00 am: $175 (a difference of __$60___) This agreement is entered into on the _____ day of _________________, 2024 by ________________________________ ___________________________________ Brittany Harmon, Owner & Operator Signed on behalf of Municipal Authority Companion Animal Control ____________________________________ Printed Name and Title An Important Update: In cooperation with the Companion Animal Control Agreement, your municipality currently impounds animals under contract with Otter Lake Animal Care in Hugo. However, due to staffing challenges and inadequate building space for housing impound animals the clinic has determined they are no longer able to provide animal impound services as of January 1st, 2025. This was an unanticipated change, so to ensure animals have a safe place to go we've secured impound space with Northwoods Humane Society (NHS) in Wyoming, MN. This is an interim solution; NHS will serve as the impound until construction of the Companion Animal Center in Oakdale is complete in May 2025. This means the Companion Animal Impound Service Agreement is to become effective January 1st instead of waiting until May 2025. The final version of this agreement is designed to save municipalities impound costs. Please add this item to your December consent agenda to ensure signatures by January 1st, so animal control services in your community can continue as normal. Once the Companion Animal Center is complete in May, 2025 this contract will remain in effect and there will not be any need for an additional or modified contract. About the Companion Animal Care Impound Service Agreement: The locations for animal impounding in Washington County, MN is extremely limited, the CAC agreement will provide affordable services to municipalities through lower per-animal fees and affordable monthly retainers based on the human population of each jurisdiction. This ensures that kennel spaces are held empty to be available for impound animals from contract municipalities. Based on CAC data from 2023, the CAC contract on average reduces annual costs to municipalities by $1,200. Comparison below: Alternative Impound Services Companion Animal Care Services Unclaimed animals $232-$285 per animal Owner- claimed animals $28-$35 administrative fee charged to the municipality Unclaimed animals $200 per animal Owner- claimed animals $0 administrative fee charged to the municipality Additional fee of $75 per day for housing dangerous or aggressive animals Stray bite quarantine fee of $630, charged to municipalities regardless of fees paid by owner No additional fees for aggressive or dangerous animals Bite quarantine required to be paid by owner in advance to avoid municipality fees, stray bite quarantine $500 Owner information provided to municipality quarterly, limiting ability to invoice owners for restitution of costs Owner information provided to municipality monthly, enhancing ability to invoice owners for restitution of costs All communication and invoicing will still come from CAC, so if you have any questions or concerns, please let me know as soon as possible. Brit Harmon, MPA, NCACO, WCHO Companion Animal Companies www.companionanimalcontrol.com (715) 220-1332 Companion Animal Care LLC and ______________________________________ <Municipality> Agreement for Animal Impound Services 1. Companion Animal Care (CAC) Agrees To: a. Housing for stray or abandoned animals that are lawfully retrieved by municipality’s law enforcement officer (LEO) or Companion Animal Care (CAC). b. For stray animals that are brought into the location by a citizen and CAC verifies the animal was retrieved within the municipality jurisdiction, CAC may but under no circumstances is required to, accept animals dropped off at the facility as its capabilities and space may permit. c. Housing to be provided under kennel licensing by the Minnesota Board of Animal Health is defined to include kennel space, outdoor time, daily cleaning, food and water. d. Herd management vaccination following our standard vaccination protocols, as well as medically necessary and/or emergency care for sick or injured animals impounded. e. Provide compassionate euthanasia services as deemed necessary by CAC and performed by a licensed veterinarian. These services may be provided at the end of the legally required holding period or in the case of a medical situation that requires immediate euthanasia. f. Animal placement services to ensure live outcomes for as many animals as possible, including private adoptions, transfer to 501c3 rescues and animal welfare organizations. All animals will be evaluated for these outcomes throughout their legally required holding period to determine the most appropriate outcome for each animal while ensuring the safety of the public. g. Provide animal rabies quarantine or diagnostic service as required by state statute for felines, canines and ferrets that have bitten a person. h. Hold animals for the legally required Minnesota stray holding period of 5 business days or until reclaimed by owner within this holding period. i. Municipality may request and view CAC policies at any time. a. CAC may choose to place any animal in a temporary foster home to ensure a live outcome, such as animals with compromised immune systems, pregnant, injuries, age related risks, etc. during the mandatory stray hold period. b. CAC may choose to accept owner surrendered animals (not including non-stray/at large or abandoned animals) at no cost to the municipality. c. CAC has the sole discretion to return any animal to the animal’s owner or authorized caretaker with or without impoundment, including the ability to waive any fees assessed. d. CAC is not responsible for collecting any fees from an owner for a municipality. e. CAC is not responsible for sick or injured animals that are left after hours by a law enforcement officer. Outside treatment must be sought for these animals prior to leaving the animals at the CAC facility when staff members are not on duty. f. Municipality law enforcement officers must contact CAC for guidance prior to any seized animal being brought to CAC that is not stray or abandoned. Ability to house animals that are not stray or abandoned is not guaranteed through this contract. g. CAC has the sole authority for the disposition of all animals that have not been reclaimed upon the expiration of the legally designated holding period. h. CAC will not accept un-handleable feral cats, with the exception of bite quarantines and/or injured animals, without prior approval by CAC. i. CAC shall not be mandated to perform any service that contradicts the organization’s mission and/or philosophical beliefs regarding animal welfare. 3. Municipality Agrees To: a. Pay the designated as outlined below. i. To ensure kennel spaces will be reserved/available for animals from each municipality, a monthly retainer fee based on the current human population within the municipal jurisdiction according to the United States Census Bureau estimations. Retainer fee categories are as follows: Human Population Fee A. <1,000 $45 B. 1,001-2,000 $75 C. 2,001-4,000 $100 D. 4,001-8,000 $200 E. >8,000 $300 ii. Standard stray, seized or abandonment fee of $200 per canine or feline and a $50 fee per “other” domestic animals (rabbits, guinea pigs, birds etc.) not reclaimed by its owner. iii. If an animal is reclaimed by an owner, the municipality will not be charged for housing. iv. Litters of canines or felines under 8 weeks of age will count as one animal fee, not individual animal fees. v. A disposal fee of $75 for ‘deceased on arrival’ animals. vi. A fee up to $150 to medically stabilize or euthanize an animal as deemed necessary. vii. A bite/rabies quarantine fee of $50 per day for unclaimed stray animals held the entirety of the state mandated 10-day holding period to the municipality. viii. If the owner of a bite quarantine animal is known prior to intake, the owner is responsible for the entirety of the fee to be paid up-front and housing fees will not be charged to the municipality. b. If Municipality utilizes law enforcement officers, LEOs will adhere to the drop off procedures set forth by CAC including animal housing at the location and paperwork. Drop off procedures and paperwork training for law enforcement officers will be provided. c. Adhere to state laws and local ordinances that apply to animals. Municipality is responsible for ensuring its ordinances are not contradictory to the services outlined in this agreement, that ordinances are not contradictory to Minnesota State Statutes. Such as that the holding periods for animals within the municipality ordinance are the same length as the holding periods (i.e. number of days) as Minnesota State Statutes. d. Be available to members of your community to resolve their concerns related to the actions of your law enforcement officers and your municipality’s procedures, policies and requirements. 4. Administration: a. CAC will bill the municipality at during the first week of each month to the email address(s) provided. Payment is expected within 30 days of receipt of billing, any billing disputes must be raised within 10 days of receipt of billing by email or phone. b. CAC agrees to maintain all data received from Municipality in the same manner as Municipality as required under the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13. 5. Insurance Requirements. a. CAC shall procure and maintain, at its expense, general liability insurance coverage in the amounts listed below and shall provide to Municipality a Certificate of Insurance as evidence that the coverages are in full force and effect.: i. General Aggregate: $2,000,000 ii. Products and Completed Operations $2,000,000 iii. Each Occurrence: $1,000,000 iv. Personal and Advertising Injury: $1,000,000 v. Damage to Premises: $100,000 a. CAC agrees to comply with all applicable worker compensation laws in Minnesota. 6. Indemnification: a. To the fullest extent permitted by law, CAC agrees to defend and indemnify Municipality, and its officers, employees, and volunteers, from and against all claims, damages, losses, and expenses, including attorney fees, arising out of or resulting from the performance of work under this agreement; but only to the extent caused in whole or in part by the negligent acts, errors or omissions of CAC, CAC’s subcontractor(s), or anyone directly or indirectly employed or hired by CAC, or anyone for whose acts CAC may be liable. CAC agrees this indemnity obligation shall survive the completion or termination of this agreement. b. To the fullest extent permitted by law, Municipality agrees to defend and indemnify CAC, and its officers, employees, and volunteers, from and against all claims, damages, losses, and expenses, including attorney fees, arising out of or resulting from the performance of work under this agreement; but only to the extent caused in whole or in part by the negligent acts, errors or omissions of Municipality, or anyone directly or indirectly employed or hired by Municipality, or anyone for whose acts Municipality may be liable. Municipality agrees this indemnity obligation shall survive the completion or termination of this agreement. 7. Term: a. This Contract shall become effective upon its execution by both parties and continue annually, subject to termination upon 30-day advance written notification of termination by either party. Fees will be evaluated by CAC on an annual basis for cost -of-living adjustments up to 10%, any adjustments will be communicated in writing to Municipality. No amendment or modification of this agreement shall be effective unless made in writing and signed by both the Municipality and CAC. All provisions of this contract relating to insurance, indemnity and compliance with the State Data Practices act shall survive termination to the full extent needed for the protection of the Municipality and Contractor. b. If requested by either party at any time a contractual review shall be completed for the purpose of determining the effectiveness of the program, review costs and to implement improvement measures. This agreement is entered into on the _____ day of _________________, 202___ by ________________________________ ___________________________________ Brittany Harmon, Owner & Operator Signed on behalf of Municipal Authority Companion Animal Care ____________________________________ Printed Name and Title ORDINANCE 2025- CITY OF HUGO AN ORDINANCE WITHIN THE CITY OF HUGO, MINNESOTA AMENDING CHAPTER 10 -ANIMALS, ARTICLE II - DOGS WHEREAS, the City of Hugo amends the number of days a dog will be impounded from ten (10) days to five (5) days, to align with MN State Statute 346.47 SEIZED ANIMALS. THE CITY OF HUGO ORDAINS: SECTION 1. The City Council of the City of Hugo does hereby amend Chapter 10 - ANIMALS, Article II - DOGS to change the number of days an animal will be impounded from ten (10) days to five (5) day in the following sections: Sec. 10-27 Redeeming animals (1) and (2) Sec. 10-34 Dangerous dogs and potentially dangerous dogs (1)a and (1)c Sec. 10-35 Quarantine, determination, and appeal procedures (4)f SECTION 2. Severability. In the event that a court of competent jurisdiction adjudges any part of this Ordinance to be invalid, such judgment shall not affect any other provision of this Ordinance not specifically included with that judgment. SECTION 3. Effective Date. This amendment shall take effect January 6, 2025. ADOPTED BY THE HUGO CITY COUNCIL ON JANUARY 6, 2025. ______________________________ Tom Weidt, Mayor ATTEST: _____________________________ Michele Lindau, City Clerk ‐ CODE OF ORDINANCES Chapter 10 ‐ ANIMALS ARTICLE II. DOGS Hugo, Minnesota, Code of Ordinances Created: 2024‐10‐16 16:24:38 [EST] (Supp. No. 34) Page 1 of 7 ARTICLE II. DOGS Sec. 10‐25. Exemptions. Except where duties are expressly stated, this article does not apply to hospitals, clinics, and other premises operated by licensed veterinarians exclusively for the care and treatment of dogs. (Ord. No. 2011‐45, § 1, 3‐7‐2011) Sec. 10‐26. Seizure of dogs; impounding. (1) Any person may seize, impound, or restrain any dog found running at large. Any person impounding or restraining such dog shall immediately contact and surrender the dog to the animal control authority. (2) An impounded stray animal displaying a need for medical care may be taken by the animal control authority to a veterinarian for emergency treatment. The owner of the animal is responsible for payment of expenses incurred as a result of the veterinarian treatment. (3) The animal control authority may seize and impound an animal found at large on public property or claimed to be a stray by the occupant of the premises upon which the animal is found. (4) The animal control authority may enter onto private property to seize and impound animals only after a reasonable effort has been made to contact an occupant of the property, and when: a. They have a reasonable and immediate concern for the animal's health, safety or welfare, including an animal that is being neglected or endangered; or b. They have a reasonable and immediate concern for the health and safety of human beings or other animals as a result of the animal's continued presence on the property; or c. They have reasonable cause to believe that a violation of section 10‐29 or section 10‐34 of this article has occurred or is occurring and that seizure is necessary to prevent further violation, and there is a reasonable and immediate concern for the health and safety of human beings or other animals. (5) A person must not interfere with animal control authority impounding an animal, or refuse to surrender an animal to these personnel. (6) When an animal is impounded as required by this chapter, the animal owner shall pay all reasonable expenses related to the impounding of the animal. (Ord. No. 2011‐45, § 1, 3‐7‐2011) Sec. 10‐27. Redeeming animals. (1) Upon the impounding of a dog, the animal control authority must promptly notify the owner personally or by mail, addressed to the owner's last known address. If the owner is unknown, the city must post a written notice at the city hall. The notice must describe the dog and must state where the animal is impounded and that it can be redeemed within ten five days after the date of the notice by payment of all impounding and boarding fees. Created: 2024‐10‐16 16:24:38 [EST] (Supp. No. 34) Page 2 of 7 (2) If the impounded animal is not redeemed within ten five days after the required notice, authorized city personnel may give the animal away or direct the impounding facility to dispose of the animal in a humane manner. The dog owner is responsible for all fees associated with impounding, boarding, and disposal. (3) In the case where any dog has been impounded whose rabies vaccination is not current, said dog shall not be released unless the owner first provides written evidence, from a licensed veterinarian, that arrangements have been made to have the dog vaccinated upon its release. (Ord. No. 2011‐45, § 1, 3‐7‐2011) Sec. 10‐28. Rabies vaccination required. (1) All dogs in the city over the age of six months shall be vaccinated for rabies and shall be re‐vaccinated according to standard veterinary practices thereafter. Such vaccination must be performed by or under the direct supervision of a veterinarian duly licensed to practice veterinary medicine in the state in which the vaccine is administered. A certificate from the veterinarian vaccinating said dogs shall be exhibited to the animal control authority upon demand. (2) Each dog shall wear a sturdy collar for aid in identification. The dog must wear a veterinarian's metal tag showing proof of current rabies vaccination. In lieu of a veterinarian's metal tag, the dog's collar must contain identification including the name and phone number of the dog's owner. At the owner's discretion, a tattoo or implanted microchip may be used in lieu of the collar and tag. (Ord. No. 2011‐45, § 1, 3‐7‐2011) Sec. 10‐29. Animal bites and animals exposed to rabies. (1) Pursuit of biting dog authorized. Any law enforcement officer or animal control officer may enter upon the private property of any person while in pursuit of any dog under probable cause to believe that such dog has bitten a person or animal, or that such dog shows signs consistent with rabies. (2) Quarantine required. Subsection (1) of this section notwithstanding, whenever any person who owns, possesses or harbors any dog within the city learns that the dog has bitten any human being or domestic animal, such person shall immediately quarantine such dog for a period of at least ten days, keeping it apart from other animals until it is determined that the dog shows no signs of rabies. The quarantine may be by the person owning the dog if such dog has a current rabies vaccination at the time the bite occurred. If the dog does not have a current rabies vaccination at the time the bite occurred, the dog must be impounded at a licensed pound or with a licensed veterinarian at the owner's expense. Upon request, the owner of the dog must provide documentation of the location of the dog to the animal control authority. After the required ten‐day quarantine, the dog shall be examined by a licensed veterinarian to determine whether it shows signs consistent with rabies. If the dog is found to show such signs, it shall be humanely euthanized and sent to an appropriate facility for rabies testing. (3) Impoundment of biting dog. If the dog owner cannot be located or advised of the dog bite within two hours of the occurrence, or if the owner fails to quarantine the dog as required by this section, the animal control authority shall cause the dog to be impounded and so quarantined. After the required ten‐day quarantine, if the dog is still unclaimed, the dog shall be humanely euthanized and tested for rabies; if claimed, the dog shall be examined by a licensed veterinarian to ensure there are no clinical signs of rabies. If no signs of rabies are observed, the dog can be released to the owner as specified in section 10‐27. If the dog is found to show signs of rabies, it shall be humanely euthanized. Created: 2024‐10‐16 16:24:38 [EST] (Supp. No. 34) Page 3 of 7 (4) Verification of quarantine. The animal control authority, or other designate of the city, shall have the authority to verify if the dog is properly quarantined. Any veterinarian quarantining an animal shall notify the animal control authority before the release of such animal. (5) Bitten dog to be impounded; proof of vaccination required. Any dog known to have been bitten by a rabid dog or exposed to rabies shall be impounded. If, however, either dog is at large and cannot be apprehended after reasonable effort, the dog may be immediately destroyed. After impoundment, if proof of rabies immunization is furnished and booster injections are given by a licensed veterinarian at the expense of the owner, the dog may be released to the owner as specified in section 10‐27 of this article. If it cannot be proven that the animal has a current rabies immunization, the owner may, at his discretion, make provision for a suitable quarantine for a period of not less than six months. (Ord. No. 2011‐45, § 1, 3‐7‐2011) Sec. 10‐30. Running at large prohibited. No person shall allow a dog to run at large at any time, except dogs used as a necessary element of a bona fide livestock operation. (Ord. No. 2011‐45, § 1, 3‐7‐2011) Sec. 10‐31. Abandonment prohibited. No person shall abandon any dog within the city. (Ord. No. 2011‐45, § 1, 3‐7‐2011) Sec. 10‐32. Nuisances. (1) Unlawful acts or conditions. The following are public nuisances and unlawful: a. Any dog that damages property (that is not property of the owner), including plantings, lawns or structures, or that deposits fecal matter off of the owner's property that the owner fails to remove promptly to his own property or to an approved disposal location. b. Any dog that, without provocation, chases, molests or approaches pedestrians or bicyclists in a threatening manner upon the streets, sidewalks, right‐of‐way, or any public property, or habitually chases automobiles on the public streets or highways. c. Any dog that is kept under unsanitary and/or inhumane conditions such that the maintenance or keeping of the animal creates odors to the annoyance of the public in the vicinity. d. Any dog that kills or attacks another domestic animal or livestock without provocation while off the owner's property. e. The owning, keeping, or harboring of any dog which shall by any noise, unreasonably and/or excessively disturb the peace and quiet of any person in the vicinity. The phrase "unreasonably and/or excessively disturb the peace and quiet" includes, but is not limited to, the creation of any noise by a dog which can be heard by any person, including an animal control officer or law enforcement officer, from a location off the dog owner's property where the dog is being kept, and which noise occurs repeatedly over at least a five‐minute period of time with one minute or less lapse of time between each animal noise during the five‐minute period. This provision shall not apply to dogs that are responding to trespassers or to dogs that are teased or similarly provoked to bark. Created: 2024‐10‐16 16:24:38 [EST] (Supp. No. 34) Page 4 of 7 (Ord. No. 2011‐45, § 1, 3‐7‐2011; Ord. No. 2023‐525, § 1, 5‐15‐2023) Sec. 10‐33. Leashing of dogs within an active city park. All dogs that are within an active city park or on a public sidewalk or trail shall be under the physical control, by leash, of the owner, a member of the owner's immediate family, or a person designated by the owner. For the purposes of this section, an active city park shall include any park designated by the parks commission as active and as listed in the city's parks plan. (Ord. No. 2011‐45, § 1, 3‐7‐2011) Sec. 10‐34. Dangerous dogs and potentially dangerous dogs. (1) Dangerous dogs. It shall be illegal for any person to own, keep, possess or harbor any dog that has been declared a dangerous dog. This prohibition shall apply whether said declaration has occurred in the city or in some other jurisdiction. This prohibition shall also apply whether said declaration was made pursuant to Minn. Stats. § 347.50 or pursuant to another statute or ordinance which is substantially similar to Minn. Stats. § 347.50. a. Any dangerous dog shall be immediately seized by the animal control authority or law enforcement officer and impounded for no fewer than ten five days. The owner has until the end of this time period to provide written verification that the dog will be legally removed from the city to an appropriate place which allows for dangerous dogs, or that the dog will be humanely euthanized. b. The owner must pay all associated impounding and boarding costs prior to the release of the dog. Upon its release, the dog shall be immediately transported to a location outside of the city, or to a proper facility to be euthanized. c. Any such dog that is not properly claimed within ten five calendar days shall be humanely euthanized. The owner of the dog that is euthanized shall be responsible to pay the impounding, boarding and euthanization costs. (2) Potentially dangerous dogs. The owner of a potentially dangerous dog shall comply with the following requirements: a. The dog shall be contained within a proper enclosure, as defined by this chapter, at all times. b. When outside of a proper enclosure, the dog must be on a four‐foot, non‐retractable leash at all times. c. In accordance with state statute, a microchip must be implanted in the dog for identification, and the name of the name of the microchip manufacturer and identification number of the microchip must be provided to the animal control authority. If the microchip is not implanted by the owner, it may be implanted by the animal control authority. In either case, all costs related to the purchase and implantation of the microchip shall be paid by the dog's owner. d. Any other conditions deemed appropriate by the animal control authority. (Ord. No. 2011‐45, § 1, 3‐7‐2011) Sec. 10‐35. Quarantine, determination, and appeal procedures. (1) If a dog has bitten a person or domestic animal, the dog shall first be quarantined according to the provisions of subsection 10‐29(2). Following said quarantine period, the owner of the dog shall keep the dog confined in a proper enclosure until the procedures outlined in the remainder of this section have been completed. Created: 2024‐10‐16 16:24:38 [EST] (Supp. No. 34) Page 5 of 7 (2) Determination of a dangerous or potentially dangerous dog. Once a dog has bitten a person or domestic animal, the animal control authority shall determine, in no more than 14 days that a dog is a dangerous dog or potentially dangerous dog. (3) Exemption. Dogs may not be declared dangerous, or potentially dangerous if the threat, injury, or damage was sustained by a person: a. Who was committing, at the time, a willful trespass or other tort upon the premises occupied by the owner of the dog; b. Who was provoking, tormenting, abusing, or assaulting the dog or who can be shown to have repeatedly, in the past, provoked, tormented abused, or assaulted the dog; or c. Who was committing or attempting to commit a crime. (4) Notice of dangerous or potentially dangerous dog. Upon a determination by the animal control authority that a dog is dangerous or potentially dangerous pursuant to this chapter, the animal control authority shall provide a notice to the dog owner by delivering, mailing, or posting a copy of such notice at the place where the dog is kept. The notice must include: a. A description of the dog deemed to be dangerous or potentially dangerous; the authority for and purpose of the dangerous or potentially dangerous dog declaration and seizure, if applicable; the time, place, and circumstances under which the dog was declared dangerous or potentially dangerous; and if seized the telephone number and contact person where the dog is kept; b. The name of the animal control authority making the determination; c. A statement that the owner of the dog must keep the dog in a proper enclosure as defined by this chapter until the procedures outlined in the remainder of this section have been completed; d. A statement that the owner of the dog may request a hearing concerning the dangerous or potentially dangerous dog declaration, and that failure to do so within 14 days of the date of the notice will terminate the owner's right to a hearing under this subsection; e. A statement that if an appeal request is made within 14 days of the notice, the owners must immediately comply with the requirements of subsection 10‐34(2) of this article until such time as the hearing officer issues an opinion; f. A statement that if the hearing officer affirms the dangerous dog declaration, the animal control officer or law enforcement officer shall immediately seize and impound the dangerous dog, and the owner will have ten five days from receipt of that decision to comply with subsection 10‐34(1) of this article; or in such case the hearing officer affirms a potentially dangerous dog designation, the owner shall immediately comply with subsection 10‐34(2) of this article. g. A notice that if a potentially dangerous dog endangers the safety of humans or domestic animals again, it will be considered a dangerous dog. (5) Appeal of the dangerous or potentially dog designation. The owner of any dog declared dangerous or potentially dangerous has the right to a hearing by an impartial hearing officer. The owner of the dog may request in writing a hearing on the designation within 14 days of the date of the notice. Failure to appeal during this time period will terminate the owner's right to a hearing under subsection (6) of this section. a. The owner's written request for a hearing must be submitted to the city clerk. The written request must contain the following information: 1. The full name, address, daytime and evening telephone numbers of the person requesting an appeal; 2. The full name and address of all the dog's owners; Created: 2024‐10‐16 16:24:38 [EST] (Supp. No. 34) Page 6 of 7 3. The ownership interest of the person requesting the appeal; 4. The names of any witnesses to be called at the hearing; 5. A list and copies of all exhibits to be presented at the hearing; 6. A summary statement as to why the dog should not be declared dangerous or potentially dangerous; and b. The dog owner must provide a written behavioral assessment to the hearing officer. The behavioral assessment shall be prepared by a licensed veterinarian or certified animal professional and shall describe the dog's normal behaviors toward unknown persons, and may include recommendations regarding the dangerous or potentially dangerous dog determination, future care and training, and possible re‐evaluation of the dog. (6) Hearing procedure. a. Any hearing must be held within 14 days of the appeal to determine the validity of the dangerous dog declaration. The city shall mail written notice of the hearing to the owner requesting the hearing to the address provided on the request and to any person who was an alleged victim of the dog that is subject of the hearing. b. The hearing officer shall be the city administrator or an impartial person designated by the city administrator to conduct the hearing. "Impartial" means that the hearing officer did not have any direct involvement in the original determination that the dog is a dangerous dog or potentially dangerous dog. c. At the hearing, the parties shall have the opportunity to present evidence in the form of exhibits and testimony. Each party may question the other party's witnesses. The strict rules of evidence do not apply and the records of the animal control authority are admissible without further foundation. d. The hearing officer may add, remove, or modify all conditions deemed appropriate by the animal control authority for a potentially dangerous dog. In addition, the hearing officer may reevaluate the status of the dog after a specified time period or upon completion of any required dog training and may remove the potentially dangerous dog designation at that time. e. The hearing officer shall make written findings of fact and reach a written conclusion as to whether the dog is a dangerous dog or potentially dangerous dog pursuant to this chapter, within ten days after the hearing. The decision must be delivered to the dog's owners by hand delivery or registered mail as soon as practical and a copy must be provided to the animal control authority. f. The decision of the hearing officer is final without any further right of administrative appeal. An aggrieved party may obtain review thereof by petitioning the Minnesota Court of Appeals for a writ of certiorari not more than 30 days after service of the hearing officer's written decision. (Ord. No. 2011‐45, § 1, 3‐7‐2011) Sec. 10‐36. Police dogs. This chapter shall not apply to police dogs under the control of a licensed law enforcement officer during the performance of official police activities. (Ord. No. 2011‐45, § 1, 3‐7‐2011) Created: 2024‐10‐16 16:24:38 [EST] (Supp. No. 34) Page 7 of 7 Sec. 10‐37. Females in heat. Every female dog in heat shall be confined in a building or other secure enclosure in such manner that such female cannot come in contact with another dog, except for the express purpose of planned breeding, or shall be controlled on a leash while being exercised. (Ord. No. 2011‐45, § 1, 3‐7‐2011) Sec. 10‐38. Sanitation. (1) Animal waste. It is unlawful for any owner or custodian of any animal to cause or allow such animal to soil, defile or defecate on any public property or upon any street, sidewalk, public way, play area or common grounds owned jointly by the members of a homeowners' or condominium association, or upon private property other than that of the owner, unless such owner immediately removes and disposes of all feces deposited by such animal in a sanitary manner. a. Any person who owns, keeps or harbors any dog must remove all dog feces, on a daily basis, from all enclosed dog runs or kennels, and must remove, on a daily basis, any accumulations of dog feces which are visible from any location outside the borders of that person's property. (2) Disposal. Proper disposal of animal waste shall be limited to burial where lawfully permitted, flushing in the toilet, bagging for disposal in the owner or keeper's waste receptacle, and bagging for disposal in a waste receptacle in a public park or park area. Disposal of animal waste in storm drains and public composts is prohibited. (3) Violations. Violation of this section may be subject to a forfeiture of no more than $300.00. a. Any peace officer, animal control officer, park ranger, any duly authorized assistant, any duly authorized agent, or any person authorized by the animal control officer is responsible for issuing the citations. b. The provisions of this section shall not apply to the ownership or use of any properly identified service or tracking animals when used by or with the permission of the appropriate authorities. (Ord. No. 2011‐45, § 1, 3‐7‐2011; Ord. No. 2023‐520, § 1, 2‐6‐2023) Sec. 10‐39. Penalty. Any person found to be in violation of the provisions of any section of this chapter shall be guilty of a misdemeanor. (Ord. No. 2011‐45, § 1, 3‐7‐2011; Ord. No. 2023‐520, § 1, 2‐6‐2023; Ord. No. 2023‐524, § 1, 5‐15‐2023) Memorandum To: Bryan Bear, City Administrator From: Max Gort, Associate Planner Date: December 31, 2024, for the City Council Meeting of January 6, 2025 Re: Approve Cannabis Ordinance and Ordinance Amending Fee Schedule 1. PLANNING COMMISSION MEETING UPDATE: At its Thursday, December 12, 2024 meeting the Planning Commission held a public hearing and considered the proposed ordinance relating to and regulating cannabis businesses in th e City of Hugo. There were two people that spoke during the public hearing, both requesting that the Planning Commission consider allowing cannabis cultivation as a conditional use within rural zoning districts. The Planning Commission had a discussion on the ordinance and the request made by the people who spoke during the public hearing. There were some Commissioners who were interested in allowing some cannabis cultivation activity in rural zoning districts, but generally the Planning Commission felt that it would be beneficial to keep the restriction to commercial and industrial zoning districts. The Planning Commission was comfortable with the rest of the ordinance as presented, including the special event permit criteria, zoning districts proposed, business registration procedure, and not including buffers in the ordinance. The Planning Commission voted unanimously to recommend approval of the ordinance to the City Council. 2. BACKGROUND AND MEETING UPDATES: By enacting Minnesota Statutes 2023, Chapter 342, the Minnesota Legislature has provided a regulatory framework for the sale and manufacturing of cannabis and hemp products, the licensing of cannabis and hemp businesses, and establishes a State Agency known as the Office of Cannabis Management (OCM). Section 342.13 of the act allows a local unit of government to adopt “reasonable restrictions on the time, place, and manner” of the operation of cannabis businesses. On July 10, 2023, the City Council enacted a 12 -month moratorium on the sale, testing, manufacturing, and distribution of cannabinoid products within the city, that was extended on August 5th, 2024 until January 1, 2025. The City Council gave some high -level direction to staff at a workshop on April 22, 2024 which included not prohibiting us e of cannabis in public places, not to consider a municipal cannabis store, and not to increase the limit of retail registrations beyond the minimum required by state statute. At that time, the OCM had not published any additional guidance for local govern ments. On September 3, 2024, the OCM released a guide for local governments as well as a model cannabis ordinance. Staff began to draft an ordinance relating to and regulating cannabis businesses within the City of Hugo, which would include definitions of cannabis businesses, a procedure for registering cannabis businesses within the city, zoning and land use designations G.29 2 for cannabis businesses, performance standards for cannabis businesses, and processes related to temporary cannabis events. An updated guide was released on November 25, 2024. At its meeting of November 18, 2024, the City Council gave some high -level direction to staff on a number of items to be included within the draft ordinance. After some discussion, the City Council recommended that staff proceed to draft an ordinance with the zoning districts proposed, no buffers in place for cannabis businesses, and for temporary cannabis events to be included in the special event permitting process. At its meeting of November 19, 2024, the EDA heard a presentation from staff asking for similar comments on the direction of the cannabis ordinance. The EDA had some debate about whether to require buffers to limit the ability to advertise to minors, but they agreed that this concern could be addressed through regulating signage specifically for cannabis business. Generally, the EDA was comfortable with staff’s recommendation for zoning districts , buffers, and the inclusion of cannabis events within the special event permitting process. At its meeting of December 2, 2024, the Ordinance Review Committee (ORC) discussed the direction of the cannabis ordinance and some questions that were raised during the previous City Council and EDA meetings. In general, the ORC recommended that staff proceed with the proposed zoning districts, not requiring any buffers, and including cannabis events under special event permits in the draft cannabis ordinance. 3. SUMMARY OF ORDINANCE: A. Cannabis Ordinance State statute allows local governments to adopt reasonable restri ctions on the time, place, and manner in which cannabis businesses can operate. While drafting an ordinance, staff considered whether to recommend buffer requirements for cannabis businesses. Based on findings related to existing zoning and separation of noncompatible uses, staff is recommending buffers not be included in the ordinance. Staff has drafted proposed zoning districts where certain cannabis business types would be allowed. Generally, staff found that cannabis retailers, and other business types that include retail sales, were land uses comparable to those allowed in commercial zoning districts. Meanwhile, all other cannabis business types were found to be more compatible with land uses allowed in industrial zoning districts. Additionally, the cit y is required by state statute to allow temporary cannabis events in some form, and can place restrictions on their operation. Staff is recommending adding standards for cannabis events into the existing special event permit process. B. Types of Cannabis Businesses The Minnesota Office of Cannabis Management (OCM) is setting up to issue licenses to 13 cannabis business types: • Cannabis cultivators • Cannabis manufacturers • Cannabis retailers 3 • Cannabis wholesalers • Cannabis transporters • Cannabis testing facilities • Cannabis event organizers • Cannabis delivery services • Cannabis microbusinesses • Cannabis mezzobusinesses • Lower-potency hemp edible manufacturers • Lower-potency hemp edible retailers • Medical cannabis combination businesses. Each of these represent a specific license issued by the OCM to business owners, and each have specific requirements for approval. The OCM requires that license applications receive a certificate of local compliance from the local government where the license is being proposed for. Cannabis microbusinesses and cannabis mezzobusinesses are businesses that can apply for endorsements on their state license to perform multiple business activities, such as cultivation, manufacturing, and/or retail sales but on a smaller scale than general cultivators, manufacturers, and retailers. C. General Standards for all Cannabis Businesses The OCM’s Guide for Local Governments on Adult -Use Cannabis provides some context for how different cannabis business types may fit into a city’s existing zoning framework. Based on this context, staff has developed some general standards for all cannabis businesses. These general standards must be met in addition to applicable performance standards for each business type. In general, cannabis businesses may conduct the operations of multiple cannabis business types, provided that they receive the required license from the OCM for each business type, which includes local zoning approval for each business type. The City shall conduct annual age -verification compliance checks for every cannabis business that conducts retail sales. Signage for cannabis businesses must remain minimal, with two on -site exterior signs permitted that can not advertise cannabis products, and can not be a temporary sign, portable sign, neon sign, window-mounted sign, or a sign lit with static LED, blinking, moving, or flashing lights. All interior signage must not be visible from the exterior of the business. Additionally, all cannabis businesses are required to register with the city after rec eiving state license approval. D. Registration of Cannabis Businesses State statute requires that cannabis businesses that operate retail sales to customers or patients register with the local government in which the retail establishment is located. Staff is proposing that the city require registration of all cannabis businesses, including retailers. Since the state issues and controls cannabis business licenses, requiring local registration allows the city to have an extra review of each business seeking to locate within the city. Section 90-280(c) of the draft ordinance outlines the procedure by which cannabis businesses will register with the city, including: the initial registration application and 4 fees, process for city council review, approval, and ba sis for denial, the process for renewal of a registration, the process by which the city addresses violations and grounds for suspension of a registration. State statute sets a limit on how much local governments can charge for registration of cannabis bus inesses based on the business type. The proposed registration fees are: Business Type City Initial Fee City Renewal Fee Microbusiness $0 $1,000 Mezzobusiness $500 $1,000 Cultivator $500 $1,000 Manufacturer $500 $1,000 Retailer $500 $1,000 Wholesaler $500 $1,000 Transporter $250 $500 Testing Facility $500 $1,000 Delivery Service $250 $500 Event Organizer $375 N/A LPHE Mfr. $500 $500 LPHE Retailer $125 $125 Med. Comb. $500 $1,000 *The above fees are proposals and are subject to change. Registration applications may be denied by the City Council if the application does not meet ordinance requirements, or the applicant does not have a valid state -issued license. Additionally, registration applications for retailers are limited to one registration per 12,500 residents, which would allow a maximum of two retailers to locate and register within the City of Hugo. T he City Council is not obligated to approve a retail registration application if the number of registered retailers across Washington County exceeds one registration per 12,500 residents. E. Proposed Zoning Staff reviewed the types of businesses for which OCM will be issuing licenses, and following OCM guidance, considered how each business type compares to existing uses within the zoning code. When considering cannabis cultivation, staff reviewed the state statute requirements and draft rules for cannabis cultivator operations, and determined that several factors will guide the type of land use and impact that cultivators will generate. Key factors include requirements for security and exterior lighting, the desire to control environmental factors within cultivation area, and the requirement to control odor, staff is recommending that cultivation activity be restricted to occur indoors. Staff found that cannabis cultivators will likely generate an impact that is more consistent with uses allowed in industrial zoning districts than those typically found in agricultural zoning districts. 5 Staff is proposing that the zoning code be amended to add the following permitted (P), accessory (AC), and conditional (CUP) uses to each applicable zoning district: Neighborhood Service (NS) Central Business (C-1) General Business (C-2) Business Park (BP) General Industrial (I-3) Cannabis Cultivator P P Cannabis Manufacturer P P Cannabis Retailer P P P Cannabis Wholesaler P P Cannabis Transporter P P Cannabis Testing Facilities P P Cannabis Delivery Services AC AC Lower-Potency Hemp Edible Manufacturers P P Lower-Potency Hemp Edible Retailers AC AC AC Medical Cannabis Combination Businesses CUP CUP Cannabis Microbusiness P P Retail Location of a Cannabis Microbusiness P P P AC AC Cannabis Mezzobusiness P P Retail Location of a Cannabis Mezzobusiness P P P AC AC F. Buffers 6 While drafting an ordinance, staff considered whether to recommend adoption of buffer requirements for cannabis businesses. State statute allows local governments to require cannabis businesses be buffered up to 1,000 feet from a school , or up to 500 feet from a daycare, residential treatment facility, or an attraction within a public park frequently utilized by minors, such as playgrounds and athletic fields. Local governments are encouraged to follow precedent for comparable uses withi n existing city code. The City of Hugo requires that liquor stores to be 200 feet from schools and churches, and that sexually oriented businesses be 300 feet from several sensitive uses. Staff created maps of the city showing where cannabis businesses wou ld be permitted and different buffer scenarios: the maximum buffer allowed by state statute, a 300 -foot buffer from sensitive uses following city code precedent, and a scenario with no buffers in place. Staff found that the existing zoning districts separate noncompatible uses, and that problems were created where adjacent parcels within the same zoning district can suddenly have different permissions. Staff is currently recommending that the cannabis ordinance not include buffers. G. Performance Standards The draft cannabis ordinance has performance standards in place for each cannabis business type, intended to ensure that any cannabis business application coming to the City of Hugo is compatible with the vision of the City Code and Comprehensive Plan. Performance standards are a tool that cities can use to restrict the time, place, and manner in which cannabis businesses may operate. In addition to the performance standards listed in the draft ordinance, each cannabis business shall be subject to applicable performance standards of the land use more generally, and zoning district regulations where the business is located. H. Cannabis Events While drafting the cannabis ordinance, staff has been finding ways to incorporate cannabis-related items into existing processes. Section 90-37.2 of City Code outlines requirements for special event permits, including standards for specific events and a process for review and approval at the administrative and City Council levels. Staff is proposing that the special event permit section of city code be amended to require that cannabis events be included as a special event that requires City Council approval. Cannabis events are proposed to be limited to operating between the hours of 10:00 AM and 10:00 PM, and may not permit on-site consumption of any cannabis products except lower-potency hemp edible products. Additionally, an applicant for a cannabis event special event permit will be required to obtain their state -issued cannabis event organizer license prior to the event taking place. 4. STAFF RECOMMENDATION Staff recommended that the Planning Commission recommend approval of the draft cannabis ordinance, subject to any recommendations from the Planning Commission , to the City Council. 5. PLANNING COMMISSION RECOMMENDATION 7 The Planning Commission voted unanimously to recommend approval of the draft cannabis ordinance to the City Council. 6.ORDINANCE AMENDING FEE SCHEDULE Along with the proposed cannabis ordinance, staff has drafted an ordinance amending the city fee schedule that includes fees for cannabis registrations, as well as administrative penalties for alleged violations of the ordinance. Staff recommends the City Council adopt the amended fee schedule for 2025 as proposed, and authorize the summary publication for the amended ordinance. Attachments: 1.Draft Cannabis Ordinance 2.Summary Cannabis Ordinance 3.Draft Ordinance amending the Fee Schedule 4.Summary Ordinance amending the Fee Schedule 5.Minnesota OCM Guide for Local Governments on Adult-Use Cannabis 6.Comments received from the public 1 CITY OF HUGO, COUNTY OF WASHINGTON ORDINANCE NO. 2025 -___ AN ORDINANCE RELATING TO AND REGULATING CANNABIS AND CANNABIS BUSINESSES WITHIN THE CITY OF HUGO TITLE: An ordinance adding to and amending Chapter 90, Article I, Section 90-1. – Definitions, Chapter 90, Article II. Section 90-37.2. – Special Event Permits, Chapter 90, Article IV – Zoning District Regulations, and Chapter 90, Article VI – Requirements for Specific Uses and Performance Standards. NOW, THEREFORE, the City Council of the City of Hugo does ordain: The City Council of the City of Hugo does hereby amend Chapter 90, Article I In General for the addition of the following Sections: Chapter 90, Article I, Section 90-1. -- Definitions Cannabis means the cannabis plant, and its related industry that is regulated in the state of Minnesota by the Office of Cannabis Management. Cannabis Business means any business that receives a license from the Minnesota Office of Cannabis Management. Cannabis Cultivator means a cannabis business that grows cannabis plants from seed or immature plant to mature plant, harvests and processes cannabis flower for sale to other cannabis businesses, and conducts operations pursuant to Minn. Stat. 342.30. Cannabis Delivery Service means a cannabis business that can purchase cannabis and lower- potency hemp products from specific cannabis businesses, and sells and delivers those products directly to consumers, and is licensed under Minn. Stat. 342.41 and conducts operations pursuant to Minn. Stat. 342.42. Cannabis Event means an event that serves, sells, or is otherwise related to cannabis or cannabis products, and conducts operations pursuant to Minn. Stat. 342.40. Cannabis Event Organizer means an individual or entity licensed to plan and host events featuring cannabis, and receives a license under Minn. Stat. 342.39. Cannabis Manufacturer means a cannabis business that manufactures cannabis products and is licensed to conduct operations pursuant to Minn. Stat. 342.31. A cannabis manufacturer may also include a cannabis testing facility and/or a lower-potency hemp edible manufacturer. Cannabis Mezzobusiness means a cannabis business that conducts operations pursuant to Minn. Stat. 342.29. Cannabis Microbusiness means a cannabis business that conducts operations pursuant to Minn. 2 Stat. 342.28. Cannabis Product means a product as defined under Minn. Stat. 342.01 Subd. 20. Cannabis Registration means an approved registration issued by the City of Hugo to a state- licensed cannabis business or lower-potency hemp edible retailer. Cannabis Retailer means any person, partnership, firm, corporation, or association, foreign or domestic, selling cannabis product to a consumer and not for the purpose of resale in any form, and conducts operations pursuant to Minn. Stat. 342.32. Cannabis Testing Facility means a cannabis business that receives cannabis products and lower-potency hemp products from manufacturers and cultivators, and tests them to ensure the products meet safety standards, and conducts operations pursuant to Minn. Stat. 342.37 and Minn. Stat. 342.38. Cannabis Transporter means a cannabis business that conducts operations pursuant to Minn. Stat. 342.35 and Minn. Stat. 342.36. Cannabis Wholesaler means a cannabis business that conducts operations pursuant to Minn. Stat. 342.33 and Minn. Stat. 342.34. A cannabis wholesaler may also include a cannabis transporter. Edible Cannabis Product means a product as defined under Minn. Stat. 342.01 Subd. 31. Lower-Potency Hemp Edible Product means a product as defined under Minn. Stat. 342.01 subd. 50. Lower-Potency Hemp Edible Manufacturer means a cannabis business that conducts operations pursuant to Minn. Stat. 342.45. Lower-Potency Hemp Edible Retailer means a retail business that receives a state-issued license pursuant to Minn. Stat. 342.46. Medical cannabis combination business means a cannabis business that can grow, manufacture, package, label, and sell cannabis products to both medical patients and adult consumers, and conducts operations pursuant to Minn. Stat. 342.515. Office of Cannabis Management means the state agency known as the Minnesota Office of Cannabis Management. Plant Canopy means the surface area within a cultivation facility that is used at any time to cultivate mature, flowering cannabis plants. For multiple tier cultivation, each tier of cultivation surface area contributes to the total plant canopy calculation, Calculation of the area of the plant canopy does not include the surface area within the cultivation facility that is used to cultivate immature cannabis plants and seedlings. The City Council of the City of Hugo does hereby amend Chapter 90, Article II Administration and 3 Enforcement for the amendment of the following Sections: Section 90-37.2 Special Event Permits Amend subsection (2) Special event application process to add the following: m. Whether food, alcohol, or cannabis will be served or sold at the event. Amend subsection (5) Special events subject to City Council approval to add the following: f. Cannabis events, subject to the following additional standards: 1. On-site consumption during cannabis events is limited to lower-potency hemp edible products[MG1]. 2. Cannabis events shall only take place between the hours of 10:00 AM and 10:00 PM. 3. Cannabis event operations shall be consistent with requirements listed in Minn. Stat. 342.40, as well as any other applicable rule or law. 4. Any special event permit for a cannabis event shall have a condition requiring that a copy of a state-issued cannabis event organizer license, as licensed under Minn. Stat. 342.39, be provided to the City Clerk prior to the event taking place. An approved special event permit for a cannabis event that does not receive state approval of a cannabis event organizer license is ineffective. 5. Proof of insurance, and a cash escrow payment to the city for damages. Amend subsection (7) Basis for denial to add the following: h. A cannabis event application that does not meet the standards under section 90-37.2(5)(f) of this ordinance. The City Council of the City of Hugo does hereby amend Chapter 90, Article IV Zoning District Regulations to add of the following Sections: Sec. 90-102. - Neighborhood service district (NS). (b) Permitted uses. (11) Cannabis retailers (refer to section 90-280(h)). (c) Accessory uses. (6) Retail sales of lower-potency hemp edible products (refer to section 90-280(j)). Sec. 90-103. - Central business district (C-1). (b) Permitted uses. (27) Cannabis retailers (refer to section 90-290(h)). (c) Accessory uses. (6) Retail sales of lower-potency hemp edible products (refer to section 90-280(j)). Sec. 90-106. – Business park (BP). 4 (b) Permitted uses. (13) Cannabis microbusinesses (refer to section 90-280(d)). (14) Cannabis mezzobusinesses (refer to section 90-280(e)). (15) Cannabis cultivators (refer to section 90-280(f)). (16) Cannabis manufacturers refer to section 90-280(g)). (17) Cannabis wholesalers (refer to section 90-280(i)). (c) Accessory uses. (6) Retail sales of cannabis products within a cannabis microbusiness or cannabis mezzobusiness, subject to applicable performance standards under Section 90-280 of this ordinance, as well as any other applicable rule or law. (7) Cannabis delivery service (refer to section 90-280(l)). (d) Conditional uses. (15) Medical cannabis combination businesses (refer to section 90-280(k)). Sec. 90-107. – General industrial district (I-3). (b) Permitted uses. (16) Cannabis microbusinesses (refer to section 90-280(d)). (17) Cannabis mezzobusinesses (refer to section 90-280(e)). (18) Cannabis cultivators (refer to section 90-280(f)). (19) Cannabis manufacturers refer to section 90-280(g)). (20) Cannabis wholesalers (refer to section 90-280(i)). (c) Accessory uses.[MG2] (6) Retail sales of cannabis products within a cannabis microbusiness or cannabis mezzobusiness, subject to applicable performance standards under section 90-280 of this ordinance, as well as any other applicable rule or law. (7) Cannabis delivery service (refer to section 90-280(l)). (d) Conditional uses. (23) Medical cannabis combination businesses (refer to section 90-280(k)). The City Council of the City of Hugo does hereby amend Chapter 90, Article VI Requirements for Specific Uses and Performance Standards for the addition of the following Section: 5 Sec. 90-280. – Cannabis businesses. (a) Findings and purpose – The purpose of this ordinance is to implement the provisions of Minnesota Statutes, Chapter 342, which authorizes the City of Hugo to protect the health, safety, and welfare of residents by regulating cannabis businesses within the boundaries of the city. 1. Authority and Jurisdiction -- The City of Hugo has the authority to adopt this ordinance applicable to the legal boundaries of the city, pursuant to: a) Minn. Stat. 342.13(c) regarding the authority of a local unit of government to adopt reasonable restrictions of the time, place, and manner of the operation of a cannabis business provided that such restrictions do not prohibit the establishment or operation of cannabis businesses. b) Minn. Stat. 342.22, regarding the local registration and enforcement requirements of state-licensed cannabis retailers and lower-potency hemp edible retailers. c) Minn. Stat. 152.0263, Subd. 5, regarding the use of cannabis in public places. d) Minn. Stat. 462.357, regarding the authority of a local authority to adopt zoning ordinances. 2. Severability – If any section, clause, provision, or portion of this ordinance is adjudged unconstitutional or invalid by a court of competent jurisdiction, the remainder of this ordinance shall not be affected thereby. 3. Enforcement – The City of Hugo is responsible for the administration and enforcement of this ordinance. A violation of this ordinance shall be punishable as a misdemeanor and may be, without limitation, enforced by the City through injunctive relief or any other remedy at law or equity. Violations of this ordinance can occur regardless of whether or not a permit is required for a regulated activity listed in this ordinance. (b) Unlawful unless conditions met. It shall be unlawful for any person or entity to operate a cannabis business within the city, except in conformance with this section. (c) General standards for all cannabis businesses. 1. Compliance verification prior to state license approval - Pursuant to Minn. Stat. 342.13 (g), within 30 days of receiving a copy of a state license application from the state office of cannabis management, the City of Hugo shall certify whether a proposed cannabis business complies with local zoning ordinances and, if applicable, whether the proposed business complies with the state fire code and building code. a) In order to verify that a state license application meets local ordinance requirements, the application must include the following to be reviewed and approved by staff: 1. A security plan consistent with all state requirements. 2. A waste management plan consistent with all state requirements. 3. An interior floor plan with dimensions of each room, and a 6 description of the activity taking place in each room. 4. Demonstration that all light and glare from interior lighting will be confined to the interior of the building. 5. An exterior lighting plan that includes all lighting be downcast, and is otherwise consistent with outdoor lighting requirements under Section 90-239 of City Code. 6. An odor control plan that is consistent with all standards adopted by the state office of cannabis management and the state pollution control agency. 7. Plans for signage. 2. Cannabis Registrations a) No person or entity may operate a state-licensed cannabis business, or conduct retail sales of lower-potency hemp edible products with a license from the state, within the City of Hugo without registering with the city. Any state-licensed cannabis business or lower-potency hemp edible retailer that operates within the city without a valid municipal cannabis registration shall incur a civil penalty of up to the maximum allowed by state law. b) Cannabis Registration Application and Approval Procedure 1. Registration terms and fees – The City of Hugo shall charge a registration fee to applicants depending on the type of cannabis business, as established in the city fee schedule. a. Each cannabis registration shall be issued for a period of one calendar year. b. The first fee payment shall include the initial registration fee and first renewal fee. c. Any registration renewal fee shall be charged at the time of the second renewal, and each subsequent annual renewal thereafter. 2. Application Submittal – An applicant for a cannabis registration shall submit: a. A completed application form provided by the city. b. The required registration fee(s). c. A copy of a valid state license application. d. A written statement of approval from the property owner. e. Any additional materials requested at the discretion of the city. 3. City Council Review and Approval: a. Complete applications meeting all requirements shall be accepted by the city on a first-come, first-served basis. An application that is incomplete, or otherwise does not meet the requirements of this ordinance, shall be considered invalid. b. Once a registration application is considered complete, city 7 staff shall inform the applicant as such, and forward the application to the City Council for approval or denial within 30 calendar days. 4. Basis for Denial – the City Council may deny an application for a cannabis registration if the city finds that: a. The application does not meet the requirements of this ordinance or any other applicable rule or law. b. The applicant does not have a valid state-issued cannabis business license. c. The registration application is for a cannabis retailer, the retail location of a cannabis microbusiness with a retail operations endorsement, or a retail location of a cannabis mezzobusiness with a retail operations endorsement, and: 1. The registration of the retail business would exceed the maximum number of cannabis retail business registrations permitted under Section 90- 280(c)(2)(f) of this ordinance. 2. The total number of registered cannabis retailers, retail locations of cannabis microbusinesses, and retail locations of cannabis mezzobusinesses within Washington County meets or exceeds one registration per 12,500 residents within the county, pursuant to Minn. Stat. 342.13 Subd. j. d. The applicant has previously held a state-issued cannabis business license in another community that has been suspended or revoked. c) Location Change – If a state-licensed cannabis business registered with the city seeks to move to a new location still within the legal boundaries of the City of Hugo, the license holder must receive an updated certification of zoning approval and apply for a new cannabis registration. d) Renewal of Registration – the City of Hugo shall renew an annual cannabis registration if the applicant meets all requirements of this ordinance, and if the state renews the license. A cannabis registration issued under this ordinance shall not be transferred. 1. An applicant for renewal of a cannabis registration shall submit a renewal fee annually, beginning at the application for the second renewal. 2. The application for a cannabis registration renewal shall include all items for an initial registration as required under section 90- 280(c)(2)(b) of this ordinance. 3. Basis for denial – an application for renewal of a cannabis business registration may be denied if: a. Any of the conditions for basis of denial of an initial registration listed under section 90-280(c)(2)(b)(4) of this ordinance are met. b. The registration is currently suspended by the city. 8 c. The cannabis business no longer holds a valid license issued by the state office of cannabis management. d. The renewal application does not meet the requirements of this ordinance, or any other applicable rule or law. e) Suspension of Registration 1. Violations – Any violation of this ordinance, or any applicable rule or law, shall be deemed to be an administrative offense of the registration holder, and the registration holder shall be subject to the administrative penalties set forth in the city fee schedule for cannabis businesses. The administrative penalty amount shall be calculated against all offenses occurring within a 36 consecutive month period from the date of the most recent violation. Any violation having occurred beyond 36 consecutive months prior to the most recent violation shall not be counted in terms of imposing the fee. Penalties shall be paid within 60 days of the time of issuance of the notice. 2. When Suspension is Warranted – The City of Hugo may suspend a cannabis business registration, after notice and an opportunity for hearing when reasonably available, if it violates a city ordinance or poses an immediate threat to the health or safety of the public. The city shall promptly notify the cannabis business in writing the grounds for the suspension. 3. Notification to the state – The City of Hugo shall immediately notify the state office of cannabis management in writing the grounds for the suspension, who shall in turn provide the city and cannabis business a response to the complaint within seven calendar days, and perform any necessary inspections within 30 calendar days. 4. Length of suspension – The suspension of a cannabis business registration may be up to 30 calendar days, unless the state office of cannabis management suspends the license for a longer period. The business may not make sales to customers if their registration is suspended. The city may reinstate a registration if it determines that the violation(s) have been resolved. The city shall reinstate a registration if the state office of cannabis management determines that the violation(s) have been resolved. 5. Subject to Minn. Stat. 342.22 Subd. 5(e), the city may impose a civil penalty, as specified in the city fee schedule, for registration violations. The penalty shall not exceed the maximum allowed by state law. f) Limiting of Retail Registrations -- the City of Hugo shall limit the number of cannabis retail registrations to one registration for every 12,500 residents. This limit shall include registrations for cannabis retailers and the retail location(s) of a cannabis microbusiness or cannabis mezzobusiness. This limit shall not extend to lower-potency hemp edible retailers and the retail location(s) of a medical cannabis combination business. 3. Annual Compliance Checks – The City of Hugo shall complete at minimum one compliance check per calendar year of every registered cannabis business that 9 conducts retail sales of products to customers or patients, to assess if the business meets age verification requirements, as required under Minn. Stat. 342.22 Subd. 4(b) and Minn. Stat. 342.24. 4. Multiple license types – Subject to all applicable state law, and cannabis licensing rules under Minn. Stat. Chapter 342, a cannabis business that holds more than one license type can perform all activities for which they are granted a state-issued license, provided that the business meets all applicable conditions in this ordinance and any other applicable rule or law.[MG3][MG4] 5. Signs a) Cannabis businesses are limited to two exterior, on-site signs. b) Signs shall consist only of the name and logo of the business. c) Signage for cannabis business shall not be a temporary sign, portable sign, neon sign, window-mounted sign, or a sign lit with static LED, blinking, moving, or flashing lights. d) Exterior advertisement of cannabis products is prohibited. e) Interior signs shall not be visible from the exterior of the building. f) Special event signs are prohibited for cannabis business. g) Signs for cannabis businesses shall meet all other applicable requirements for signs under section 90-265 of City Code. (d) Cannabis microbusinesses. 1. Performance Standards a) All cultivation activity shall be consistent with the standards for cannabis cultivators under section 90-280(f) of this ordinance section, except that the plant canopy shall be limited to 5,000 square feet. b) All manufacturing activity shall be consistent with the standards for cannabis manufacturers under section 90-280(g) of this ordinance section. c) Cannabis microbusinesses with a retail operations endorsement may operate a retail location within the city that meets the performance standards for cannabis retailers under section 90-280(h) of this ordinance. A cannabis microbusiness may operate a retail location within a building that also has spaces for cultivation and manufacturing of cannabis products, provided that the retail location does not exceed more than 2,500 square feet of gross floor area. d) The registration of the retail location of a cannabis microbusiness in the City of Hugo shall count towards the limit of cannabis retail registrations under section 90-280(c)(2)(f) of this ordinance. (e) Cannabis mezzobusinesses. 1. Performance Standards a) All cultivation activity shall be consistent with the standards for cannabis 10 cultivators under section 90-280(f) of this ordinance section, except that the plant canopy shall be limited to 15,000 square feet. b) All manufacturing activity shall be consistent with the standards for cannabis manufacturers under section 90-280(g) of this ordinance section. c) Cannabis mezzobusinesses with a retail operations endorsement may operate a retail location within the city that meets the performance standards for cannabis retailers under section 90-280(h) of this ordinance. A cannabis mezzobusiness may operate a retail location within a building that also has spaces for cultivation and manufacturing of cannabis products, provided that the retail location does not exceed more than 2,500 square feet of gross floor area. d) The registration of the retail location of a cannabis microbusiness in the City of Hugo shall count towards the limit of cannabis retail registrations under section 90-280(c)(2)(f) of this ordinance. (f) Cannabis cultivators. 1. Performance Standards a) All cultivation of cannabis must occur indoors and may not occur in greenhouses, hoop houses, tents, or similar mixed-light structures. The building(s) for a cannabis cultivator must be constructed to the standards for commercial and industrial construction under Section 90-272 of City Code. b) Cannabis cultivators are limited to a plant canopy area of 30,000 square feet. c) Cannabis cultivators may utilize a portion of their building area for post- harvest processing and packaging for transportation. (g) Cannabis manufacturers. 1. Performance Standards. a) All manufacturing of cannabis products must occur in an enclosed building that is constructed to the standards for commercial and industrial construction under Section 90-272 of City Code, and the standards for light manufacturing under Section 90-240 of City Code. (h) Cannabis retailers. 1. Performance Standards a) Hours of Operation – Cannabis retailers are limited to operating between the hours of 10:00 AM and 10:00 PM. (i) Cannabis wholesalers. 1. Performance Standards a) A cannabis wholesaler shall be subject to the performance standards for 11 warehousing and distribution under Section 90-269 of city code, except that retail sales of cannabis products is prohibited. b) A cannabis wholesaler that operates a motor freight terminal shall be subject to all applicable performance standards under Section 90-248 of city code, and shall require approval of a conditional use permit. (j) Lower potency hemp edible retailers.[MG5] 1. Performance Standards a) Retail sales of lower-potency hemp edibles, in conjunction with a state- issued license under Minn. Stat. 342.46, may only occur in an establishment that: 1. Holds an alcohol license under Chapter 6, Article II of City Code, except that the license shall not be a one-day permit. 2. Holds a tobacco license under Chapter 38, Article III, Division 2 of City Code. 3. Is a cannabis retailer, a retail location of a cannabis microbusiness, or a retail location of a cannabis microbusiness, subject to all applicable performance standards under section 90-280 of this ordinance. b) The cannabis registration of a lower-potency hemp edible retailer shall not count towards the limit of retail cannabis registrations under section 90- 280(c)(2)(f) of this ordinance. (k) Medical cannabis combination businesses. 1. Performance Standards a) Medical cannabis combination businesses shall be conditional uses within the I-3 and BP zoning districts. b) All cultivation of cannabis must occur indoors and may not occur in greenhouses, hoop houses, tents, or similar mixed-light structures. The building(s) for a cannabis cultivator must be constructed to the standards for commercial and industrial construction under Section 90-272 of City Code. c) All manufacturing of cannabis products must occur in an enclosed building that is constructed to the standards for commercial and industrial construction under Section 90-272 of City Code. d) A medical cannabis combination business with appropriate endorsements may operate a retail location within a building that also has spaces for cultivation and manufacturing of cannabis products, provided that the retail location does not exceed more than 2,500 square feet of gross floor area. e) The cannabis registration of the retail location of a medical cannabis combination business shall not count towards the limit of retail cannabis registrations under section 90-280(c)(2)(f) of this ordinance. f) A medical cannabis combination business that operates a warehouse shall be subject to the performance standards for warehousing and distribution under Section 90-269 of city code, except that retail sales of 12 cannabis products stored on site is prohibited. If the medical cannabis combination business operates a motor freight terminal shall be subject to all applicable performance standards under Section 90-248 of city code, and include the motor freight terminal request in their conditional use permit request. (l) Cannabis delivery services. 1. Performance Standards a) Cannabis delivery services are allowed as accessory uses if the primary use of the property is a cannabis wholesaler, cannabis transporter, or medical cannabis combination business, subject to all applicable performance standards under section 90-280 of this ordinance. b) Cannabis delivery services may operate between the hours of 10:00 AM and 10:00 PM. EFFECTIVE DATE. This Ordinance shall be in full force and effect from and after its passage by the City Council. ADOPTED by the City Council this ____________________. ______________________________ Tom Weidt, Mayor ATTEST: _____________________________ Michele Lindau, City Clerk SUMMARY ORDINANCE 2025- NOTICE: THIS PUBLISHED MATERIAL IS ONLY A SUMMARY OF AN ORDINANCE OF THE CODE OF ORDINANCES FOR THE CITY OF HUGO. THE FULL TEXT OF THE ORDINANCE IS AVAILABLE FOR PUBLIC INSPECTION AT THE HUGO CITY HALL DURING REGULAR BUSINESS HOURS. SUMMARY OF ORDINANCE RELATING TO AND REGULATING CANNABIS AND CANNABIS BUSINESSSES WITHIN THE CITY OF HUGO: Chapter 90 ZONING AND LAND USE, Article I IN GENERAL, Article II ADMINISTRATION AND ENFORCEMENT, Article IV ZONING DISTRICT REGULATIONS, and Article VI REQUIREMENTS FOR SPECIFIC USES AND PERFORMANCE STANDARDS have been amended. The amendments create framework for zoning and registration of cannabis businesses within the city. Definitions for cannabis businesses and related items have been created. The special event permit requirements were amended to add criteria for cannabis events. The NS and C-1 zoning districts have been amended to allow cannabis retailers as permitted uses and retail sales of lower-potency hemp edibles as accessory uses. The BP and I-3 zoning districts have been amended to allow cannabis microbusinesses, cannabis mezzobusinesses, cannabis cultivators, cannabis manufacturers, and cannabis wholesalers as permitted uses, retail sales for microbusinesses and mezzobusinesses and cannabis delivery services as accessory uses, and medical cannabis combination businesses as conditional uses. All cannabis businesses will be required to register with the city after receiving state license approval, and before commencing operation. The ordinance establishes a process for registering cannabis businesses and associated fees. General performance standards for all cannabis businesses were created, along with performance standards for each specific cannabis business type. Please note this title and summary of this Ordinance clearly informs the public of the intent and effect of the Ordinance and conforms to Minn. Stat. § 412.191. This Ordinance shall be effective the date that it is published. The amended ordinance is available at City Hall for review. Passed and adopted by the City Council of the City of Hugo this 6th day of January, 2025. ___________________________ Tom Weidt, Mayor Attest: __________________________ Michele Lindau, City Clerk ORDINANCE 2025- AN ORDINANCE AMENDING SECTION 30-2, FEE SCHEDULE, TO INCLUDE FEES FOR CANNABIS BUSINESSES AND CANNABIS LAW VIOLATIONS THE CITY OF HUGO ORDAINS: Section 1. The City Council of the City of Hugo does hereby amend Hugo City Code, Section 30-2 FEE SCHEDULE, to include the following fees: CANNABIS RELATED: Cannabis Microbusiness $ - Initial Registration Fee $ 1,000.00 Registration Renewal Fee Cannabis Mezzobusiness $ 500.00 Initial Registration Fee $ 1,000.00 Registration Renewal Fee Cannabis Cultivator $ 500.00 Initial Registration Fee $ 1,000.00 Registration Renewal Fee Cannabis Manufacturer $ 500.00 Initial Registration Fee $ 1,000.00 Registration Renewal Fee Cannabis Retailer $ 500.00 Initial Registration Fee $ 1,000.00 Registration Renewal Fee Cannabis Wholesaler $ 500.00 Initial Registration Fee $ 1,000.00 Registration Renewal Fee Cannabis Transporter $ 250.00 Initial Registration Fee $ 500.00 Registration Renewal Fee Cannabis Testing Facility $ 500.00 Initial Registration Fee $ 1,000.00 Registration Renewal Fee Cannabis Delivery Service $ 250.00 Initial Registration Fee $ 500.00 Registration Renewal Fee Cannabis Event Organizer $ 375.00 Initial Registration Fee N\A Registration Renewal Fee Lower-Potency Hemp Edible Manufacturer $ 500.00 Initial Registration Fee $ 500.00 Registration Renewal Fee Lower-Potency Hemp Edible Retailer $ 125.00 Initial Registration Fee $ 125.00 Registration Renewal Fee Medical Cannabis Combination Business $ 500.00 Initial Registration Fee $ 1,000.00 Registration Renewal Fee CANNABIS LAW VIOLATIONS: Type of Violation 1st 2nd 3rd 4th Violation Violation Violation Violation $1,000 and Prohibited sale and/or other illegal acts seven (7) day At City Council's as defined by ordinance or state law $ 300.00 $ 600.00 suspension discretion Section 2. Severability. In the event that a court of competent jurisdiction adjudges any part of this Ordinance to be invalid, such judgment shall not affect any other provision of this Ordinance not specifically included with that judgment. Section 3. Effective Date. This amendment shall take effect upon its passage and publication. ___________________________ Tom Weidt, Mayor Attest: __________________________ Michele Lindau, City Clerk 1 SUMMARY ORDINANCE 2025- AMENDING THE 2025 CITY OF HUGO FEE SCHEDULE NOTICE: THIS PUBLISHED MATERIAL IS ONLY A SUMMARY OF AN ORDINANCE OF THE CODE OF ORDINANCES FOR THE CITY OF HUGO. THE FULL TEXT OF THE ORDINANCE IS AVAILABLE FOR PUBLIC INSPECTION AT THE HUGO CITY HALL DURING REGULAR BUSINESS HOURS. The City of Hugo City Council does ordain the following: Section 1. Findings. Pursuant to Minnesota Law, the City of Hugo City Code, and upon a review of a study conducted by City staff, a fee schedule for City services and licensing is hereby amended for the following: 2025 FEE SCHEDULE Businesses Licenses: Cannabis Related Cannabis Law Violations Section 2. Effective Date of Ordinance. This ordinance shall be effective upon publication. This is a summary of the amended ordinance. A full printed copy of the ordinance is available at City Hall; a full listing of the city’s fees is available on the City Website. Passed and adopted by the City Council of the City of Hugo this 6th day of January, 2025. ___________________________ Tom Weidt, Mayor Attest: __________________________ Michele Lindau, City Clerk A Guide for Local Governments on Adult-Use Cannabis Version 2.0 | Updated November 21, 2024 Page 2 Table of Contents Introduction ................................................................................................ 3 About OCM ................................................................................................. 4 Cannabis License Types ................................................................................ 5 Adult-Use Cannabis Law .............................................................................. 7 Cannabis Licensing Process .......................................................................... 8 General Authorities ................................................................................... 13 Zoning and Land Use .................................................................................. 15 Local Approval Process .............................................................................. 18 Inspections and Compliance Checks ........................................................... 23 Municipal Cannabis Stores ......................................................................... 24 Creating Your Local Ordinance ................................................................... 25 Additional Information – Tobacco Sales ....................................................... 26 Additional Resources ................................................................................. 27 Page 3 Introduction This guide serves as a general overview of Minnesota’s new adult-use cannabis law, and how local governments can expect to be involved. The guide also provides important information about Minnesota’s new Office of Cannabis Management (OCM), and the office’s structure, roles, and responsibilities. While medical cannabis continues to play an important role in the state’s cannabis environment, this guide is primarily focused on the adult-use cannabis law and marketplace. The following pages outline the variety of cannabis business licenses that will be issued, provide a broad summary of important aspects of the adult-use cannabis law, and cover a wide range of expectations and authorities that relate to local governments. This guide also provides best practices and important requirements for developing a local cannabis ordinance. Chapter 342 of Minnesota law was established by the State Legislature in 2023 and was updated in 2024. Mentions of “adult-use cannabis law” or “the law” throughout this guide refer to Chapter 342 and the changes made to it. As of this guide's date of publication, final state regulations governing the adult-use cannabis market have not yet been published. A draft of the rules is available on our Rulemaking webpage (https://mn.gov/ocm/laws/rulemaking.jsp). The first draft of rules is based on substantial input OCM has received through surveys, meetings, and conversations that took place since fall 2023, as well as OCM’s review of Minnesota’s cannabis statute and cannabis rules in other states. OCM will publish in the State Register a notice of intent to adopt rules, which will prompt a 30-day formal comment period. Watch the OCM website for updates. This guide is not a substitute for legal advice, nor does it seek to provide legal advice. Local governments and municipal officials seeking legal advice should consult an attorney. Page 4 About OCM Minnesota’s Office of Cannabis Management is the state regulatory office created to oversee the implementation and regulation of the adult-use cannabis market, the medical cannabis market, and the consumer hemp industry. Housed within OCM are the Division of Medical Cannabis (effective July 1, 2024), which operates the medical cannabis program, and the Division of Social Equity, which promotes development, stability, and safety in communities that have experienced a disproportionate, negative impact from cannabis prohibition and usage. OCM, through Chapter 342, is tasked with establishing rules and policy and exercising its regulatory authority over the Minnesota cannabis industry. In its duties, OCM is mandated to: • Promote public health and welfare. • Protect public safety. • Eliminate the illicit market for cannabis flower and cannabis products. • Meet the market demand for cannabis flower and cannabis products. • Promote a craft industry for cannabis flower and cannabis products. • Prioritize growth and recovery in communities that have experienced a disproportionate, negative impact from cannabis prohibition. OCM governs the application and licensing process for cannabis and hemp businesses, specific requirements for each type of license and their respective business activities and conducts enforcement and inspection activities across the Minnesota cannabis and hemp industries. Page 5 License Types Minnesota law allows for 13 different types of business licenses, each fulfilling a unique role in the cannabis and hemp supply chain. In addition to license types below, OCM will also issue endorsements to license holders to engage in specific activities, including producing, manufacturing, and sale of medical cannabis for patients. Microbusiness Microbusinesses may cultivate cannabis and manufacture cannabis products and hemp products, and package such products for sale to customers or another licensed cannabis business. Microbusiness may also operate a single retail location. Mezzobusiness Mezzobusinesses may cultivate cannabis and manufacture cannabis products and hemp products, and package such products for sale to customers or another licensed cannabis business. Mezzobusiness may also operate up to three retail locations. Cultivator Cultivators may cultivate cannabis and package such cannabis for sale to another licensed cannabis business. Manufacturer Manufacturers may manufacture cannabis products and hemp products, and package such products for sale to a licensed cannabis retailer. Retailer Retailers may sell immature cannabis plants and seedlings, cannabis, cannabis products, hemp products, and other products authorized by law to customers and patients. Wholesaler Wholesalers may purchase and/or sell immature cannabis plants and seedlings, cannabis, cannabis products, and hemp products from another licensed cannabis business. Wholesalers may also import hemp-derived consumer products and lower- potency hemp edibles. Page 6 License Types (continued) Transporter Transporters may transport immature cannabis plants and seedlings, cannabis, cannabis products, and hemp products to licensed cannabis businesses. Testing Facility Testing facilities may obtain and test immature cannabis plants and seedlings, cannabis, cannabis products, and hemp products from licensed cannabis businesses. Event Organizer Event organizers may organize a temporary cannabis event lasting no more than four days. Delivery Service Delivery services may purchase cannabis, cannabis products, and hemp products from retailers or cannabis business with retail endorsements for transport and delivery to customers. Medical Cannabis Combination Business Medical cannabis combination businesses may cultivate cannabis and manufacture cannabis and hemp products, and package such products for sale to customers, patients, or another licensed cannabis business. Medical cannabis combination businesses may operate up to one retail location in each congressional district. Lower-Potency Hemp Edible Manufacturer Lower-potency hemp edible manufacturers may manufacture and package lower-potency hemp edibles for consumer sale, and sell hemp concentrate and lower-potency hemp edibles to other cannabis and hemp businesses. Lower-Potency Hemp Edible Retailer Lower-potency hemp edible retailers may sell lower-potency hemp edibles to customers. Each license is subject to further restrictions on allowable activities. Maximum cultivation area and manufacturing allowances vary by license type. Allowable product purchase, transfer, and sale between licensees are subject to restrictions in the law. Page 7 The Adult-Use Cannabis Law Minnesota’s new adult-use cannabis law permits the personal use, possession, and transportation of cannabis by those 21 years of age and older, and allows licensed businesses to conduct cultivation, manufacturing, transport, delivery, and sale of cannabis and cannabis products. For Individuals • Possession limits: o Flower - 2 oz. in public, 2 lbs. in private residence o Concentrate - 8 g o Edibles (including lower-potency hemp) - 800 mg THC • Consumption only allowed on private property or at licensed businesses with on-site consumption endorsements. Consumption not allowed in public. • Gifting cannabis to another individual over 21 years old is allowed, subject to possession limits. • Home cultivation is limited to four mature and four immature plants (eight total) in a single residence. Plants must be in an enclosed and locked space. • Home extraction using volatile substances (e.g., butane, ethanol) is not allowed. • Unlicensed sales are not allowed. For Businesses • Advertising: o May not include or appeal to those under 21 years old. o Must include proper warning statements. o May not include misleading claims or false statements. o Billboards are not allowed. • The flow of all products through the supply chain must be tracked by the state-authorized tracking system. • All products sold to consumers and patients must be tested for contaminants. • Home delivery is allowed by licensed businesses. Page 8 The Cannabis Licensing Process An applicant will take the following steps to proceed from application to active licensure. As described, processes vary depending on social equity status and/or whether the type of license being sought is capped or uncapped in the general licensing process. License Preapproval: Early Mover Process for Social Equity Applicants The license preapproval process is a one-time application process available for verified social equity applicants. State law required OCM to open the application window on July 24, 2024, and close the window on August 12, 2024. The preapproval process was available for the following license types, and all are capped in this process: microbusiness, mezzobusiness, cultivator, manufacturer, retailer, wholesaler, transporter, testing facility, and delivery service. High-Level Pathway to License Preapproval and Conversion to Business Licensure 1. Applicant’s social equity applicant (SEA) status verified. 2. Applicant completes license preapproval application and submits application fees. 3. Application vetted for minimum requirements by OCM. 4. Application (if qualified) entered into lottery drawing. 5. If selected in lottery, applicant completes background check process and submits attestation of labor-peace agreement. 6. If applicant successfully completes Step 5, OCM issues license preapproval to applicant. 7. Applicants with license preapproval work with local governments to discuss zoning compliance, secure property, raise capital, etc., pursuant to Minnesota Session Laws 2024, Chapter 121, Article 2, section 148.* 8. Once rules are adopted and applicant is ready to move to next step in conversion, applicant with license preapproval* submits business location to OCM and updates application accordingly. 9. OCM forwards completed application to local government. Page 9 The Cannabis Licensing Process (cont.) 10. Local government completes zoning certification of whether a proposed cannabis business complies with local zoning ordinances, and if applicable, whether the proposed business complies with state fire code and building code. (This is distinct from the retail registration approval process.) 11. OCM conducts site inspection. 12. If applicant successfully passes site inspection, OCM issues license, operations may commence except for retail activity. Continued High-Level Pathway for Licensees Seeking to Conduct Retail Sales: Process for Required Local Retail Registration from Local Governments (Retailer, Microbusiness, Mezzobusiness) 13. Licensed business seeks local retail registration from local government. 14. Local government approves applicant for retail registration through means determined by ordinance (see page 19 for more information about the retail registration process). 15. Applicant pays retail registration fee to the local government (see appendix for relevant fees in accordance with Minn. Stat., section 342.22). 16. Local government conducts compliance check for any applicable local ordinance established pursuant to Minn. Stat., section 342.13, if desired. 17. Local government ensures tax compliance, if applicable. 18. Local government issues retail registration to licensee. 19. Licensee is able to conduct retail sales now that they have received a state license and a local retail registration. *Social equity applicants with license preapproval for microbusiness, mezzobusiness, or cultivator licenses may begin growing cannabis plants prior to the adoption of rules if OCM receives both a signed and completed Local Approval of Early Cultivation Form from the local government, and also a signed and completed Applicant Notice of Intent for Early Cultivation Form. “The Local Approval of Early Cultivation" form is available now and linked in the appendix. This is only applicable to cultivation and does not authorize retail sales or other endorsed activities of the licenses prior to the adoption of rules. OCM will share additional guidance related to the early cultivation opportunity and local governments’ role in this distinct process. Page 10 The Cannabis Licensing Process (cont.) The general licensing process will align with the adoption of rules and OCM will share more information about the timing of general licensing process. The general licensing process includes social equity applicants and non-social equity applicants. General Licensing: Cultivator, Manufacturer, Retailer, Mezzobusiness 1. Applicant completes application and submit application fees. If applicable, an applicant’s social equity applicant status may be verified. 2. Application vetted for minimum requirements by OCM. 3. Application (if qualified) entered into lottery drawing. 4. If selected in lottery, applicant completes background check process and submits attestation of labor-peace agreement. 5. If applicant successfully completes Step 5, OCM issues preliminary approval to applicant. 6. Once prepared for final licensure, applicant with preliminary approval submits business location and updates application accordingly. 7. OCM forwards completed application to local government. 8. Local government completes zoning certification of whether a proposed cannabis business complies with local zoning ordinances, and if applicable, whether the proposed business complies with state fire code and building code. (This is distinct from the retail registration approval process.) 9. OCM conducts site inspection. 10. If applicant successfully passes site inspection, OCM issues license, operations may commence except for retail activity.* Continued High-Level Pathway for Licensees Seeking to Conduct Retail Sales: Process for Required Local Retail Registration from Local Governments (Retailer, Mezzobusiness) 11. Licensed business seeks local retail registration from local government. 12. Local government approves applicant for retail registration through means determined by ordinance (see Page 19 for more information about the retail registration process). Page 11 The Cannabis Licensing Process (cont.) 13. Applicant pays retail registration fee to the local government (see appendix for relevant fees in accordance with Minn. Stat., section 342.22). 14. Local government conducts compliance check for any applicable local ordinance established pursuant to Minn. Stat., section 342.13, if desired. 15. Local government ensures tax compliance, if applicable. 16. Local government issues retail registration to licensee. 17. Licensee is able to conduct retail sales now that they have received a state license and a local retail registration. *For businesses seeking a retail endorsement (microbusiness, mezzobusiness, and retailer), a valid local retail registration is required prior to the business commencing any retail sales. See Page 19 for information on the local retail registration process. General Licensing: Microbusiness, Wholesaler, Transporter, Testing Facility, Medical Cannabis Combination Business 1. Applicant complete application and submit application fees. If applicable, an applicant’s social equity applicant status may be verified. 2. Application vetted for minimum requirements by OCM. 3. For qualified applicants, applicant completes background check process and submits attestation of labor-peace agreement. 4. If applicant successfully completes Step 3, OCM issues preliminary approval to applicant. 5. Once prepared for final licensure, selected applicant submits business location and amends application accordingly. 6. OCM forwards completed application to local government. 7. Local government completes zoning certification of whether a proposed cannabis business complies with local zoning ordinances, and if applicable, whether the proposed business complies with state fire code and building code. (This is distinct from the retail registration approval process.) 8. OCM conducts site inspection. 9. If applicant successfully passes site inspection, OCM issues license, operations may commence except for retail activity.* Page 12 The Cannabis Licensing Process (cont.) Continued High-Level Pathway for Licensees Seeking to Conduct Retail Sales: Process for Required Local Retail Registration from Local Governments (Microbusiness, Medical Cannabis Combination Businesses) 10. Licensed business seeks local retail registration from local government. 11. Local government approves applicant for retail registration through means determined by ordinance (see Page 19 for more information about the retail registration process). 12. Applicant pays retail registration fee to the local government (see appendix for relevant fees in accordance with Minn. Stat., section 342.22). 13. Local government conducts compliance check for any applicable local ordinance established pursuant to Minn. Stat., section 342.13, if desired. 14. Local government ensures tax compliance, if applicable. 15. Local government issues retail registration to licensee. 16. Licensee is able to conduct retail sales now that they have received a state license and a local retail registration. *For businesses seeking a retail endorsement (microbusiness, mezzobusiness, and retailer), a valid local retail registration is required prior to the business commencing any retail sales. See Page 19 for information on the local retail registration process. Applicant Responsibility All applicants and licensees are responsible for working with their local government to ensure their success in the zoning certification and, if applicable based on license type, the local retail registration process. This includes reviewing local ordinances and understanding how the local government will be selecting applicants for a retail registration (including if retail registrations will be limited). Local units of government have the statutory authority to limit retail registrations if they desire, and applicants should understand this prior to making decisions about site locations. OCM will not facilitate communication between applicants and units of local government, nor can it mediate disputes as they relate to local zoning compliance or retail registration. OCM is required to ask each local unit of government where an applicant intends to locate a business if that business has met all zoning and use requirements. Page 13 General Authorities Local governments in Minnesota have various means of oversight over the cannabis market, as provided by the adult-use cannabis law. Local governments may not issue outright bans on cannabis business, or limit operations in a manner beyond what is provided by state law. Cannabis Retail Restrictions (342.13) Local governments may limit the number of retailers and microbusiness/mezzobusinesses with retail endorsements allowed within their locality, as long as there is at least one retail location per 12,500 residents. Local units of government are not obligated to seek out a business to register as cannabis business if they have not been approached by any potential applicants but cannot prohibit the establishment of a business if this population requirement is not met. Local units of government may also issue more than the minimum number of registrations. Per statutory direction, a municipal cannabis store (Page 24) cannot be included in the minimum number of registrations required. For population counts, the state demographer estimates will likely be utilized. Tribal Governments (342.13) OCM is prohibited from and will not issue state licenses to businesses in Indian Country without consent from a tribal nation. Tribal nations hold the authority to license tribal cannabis businesses on tribal lands – this process is separate than OCM’s licensing process and authority. Subject to compacting, Tribal nations may operate cannabis businesses off tribal lands. There will be more information available once the compacting processes are complete. Taxes (295.81; 295.82) Retail sales of taxable cannabis products are subject to the state and local sales and use tax and a 10% gross receipts tax. Cannabis gross receipts tax proceeds are allocated as follows: 20% to the local government cannabis aid account and 80% to the state general fund. Local taxes imposed solely on sale of cannabis products are prohibited. Cannabis retailers will be subject to the same real property tax classification as all other retail businesses. Real property used for raising, cultivating, processing, or storing cannabis plants, cannabis flower, or cannabis products for sale will be classified as commercial and industrial property. Page 14 General Authorities (cont.) Retail Timing Restrictions (342.13) Local governments may prohibit retail sales of cannabis between the hours of 8 a.m. and 10 a.m. Monday-Saturday, and 9 p.m. and 2 a.m. the following day. Operating Multiple Locations with One License Certain cannabis licenses allow for multiple retail locations to be operated under a single license, with the following limitations: • Retailers: up to five retail locations. • Mezzobusinesses: up to three retail locations. • Microbusinesses: up to one retail location. • Medical cannabis combination businesses: one retail location per congressional district. Additionally, medical cannabis combination businesses may cultivate at more than one location within other limitations on cultivation. For all other license types, one license permits the operation of one location. Each retail location requires local certification and/or registration. Page 15 Zoning and Land Use Buffer Guidelines (342.13) State law does not restrict how a local government conducts its zoning designations for cannabis businesses, except that they may prohibit the operation of a cannabis business within 1,000 feet of a school, or 500 feet of a day care, residential treatment facility, or an attraction within a public park that is regularly used by minors, including playgrounds and athletic fields. Zoning Guidelines While each locality conducts its zoning differently, a few themes have emerged across the country. For example, cannabis manufacturing facilities are often placed in industrial zones, while cannabis retailers are typically found in commercial/retail zones. Cannabis retail facilities align with general retail establishments and are prohibited from allowing consumption or use onsite and are also required to have plans to prevent the visibility of cannabis and hemp-derived products to individuals outside the retail location. Industrial hemp is an agricultural product and should be zoned as such. Cannabis businesses should be zoned under existing zoning ordinances in accordance with the license type or endorsed activities held by the cannabis business. Note that certain types of licenses may be able to perform multiple activities which may have different zoning analogues. In the same way municipalities may zone a microbrewery that predominately sells directly to onsite consumers differently than a microbrewery that sells packaged beer to retailers and restaurants, so too might a municipality wish to zone two microbusinesses based on the actual activities that each business is undertaking. Table 1, included on Pages 16 and 17, explains the types of activities that cannabis businesses might undertake, as well as some recommended existing zoning categories. Page 16 Zoning and Land Use (cont.) Table 1: Cannabis and Hemp Business Activities Endorsed Activity License Type Eligible to Do Endorsed Activity Description of Activity Comparable Districts Municipal Considerations Cultivation • Cultivator • Mezzobusiness • Microbusiness • Medical Cannabis • Combination “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis plants, cannabis flower, hemp plants, or hemp plant parts. Indoor: Industrial, Commercial, Production Outdoor: Agricultural • Odor • Potential need for transportation from facility • Waste, water, and energy usage • Security Cannabis Manufacturing, Processing, Extraction • Manufacturer • Mezzobusiness • Medical Cannabis • Combination This group of endorsed activities turn raw, dried cannabis and cannabis parts into other types of cannabis products, e.g. edibles or topicals. Indoor: Industrial, Commercial, Production • Odor • Potential need for transportation from facility • Waste, water, and energy usage • Security Hemp Manufacturing • Lower-Potency Hemp Edible (LPHE) Manufacturing These businesses convert hemp into LPHE edible products. Indoor: Industrial, Commercial, Production • Odor • Waste, water, and energy Wholesale • Wholesale • Cultivator • Manufacturer • Mezzobusiness • Microbusiness • Medical Cannabis • Combination This activity and license type allows a business to purchase from a business growing or manufacturing cannabis or cannabis products and sell to a cannabis business engaged in retail. Indoor: Industrial, Commercial, Production • Need for transportation from facility • Security Page 17 Zoning and Land Use (cont.) Table 1: Cannabis and Hemp Business Activities (continued) Endorsed Activity License Type Eligible to Do Endorsed Activity Description of Activity Comparable Districts Municipal Considerations Cannabis Retail • Retailer • Mezzobusiness • Microbusiness • Medical Cannabis • Combination This endorsed activity and license type allow a business to sell cannabis products directly to consumers. Indoor: Retail, Neighborhood Shopping Districts, Light Industrial, Existing districts where off-sale liquor or tobacco sales are allowed. • Micros may offer onsite consumption, similar to breweries. • Micros and Mezzos may include multiple activities: cultivation, manufacture, and/or retail. Transportation • Cannabis Transporter This license type allows a company to transport products from one license type to another. - • Fleet based businesses that will own multiple vehicles, but not necessarily hold a substantial amount of cannabis or cannabis products. Delivery • Cannabis Delivery This license type allows for transportation to the end consumer. - • Fleet based business that will own multiple vehicles, but not necessarily hold a substantial amount of cannabis or cannabis products. Events • Event Organizer This license entitles license holder to organize a temporary event lasting no more than four days. Anywhere that the city permits events to occur, subject to other restrictions related to cannabis use. • On site consumption. • Retail sales by a licensed or endorsed retail business possible. Page 18 Local Approval Process Local governments play a critical role in the licensing process, serving as a near-final approval check on cannabis businesses nearing the awarding of a state license for operations. Once an applicant has been vetted by OCM and is selected for proceeding in the verification process, they are then required to receive the local government’s certification of zoning compliance and/or local retail registration before operations may commence. Local Certification of Zoning Compliance (342.13; 342.14) Following OCM’s vetting process, local governments must certify that the applicant with preliminary approval has achieved compliance with local zoning ordinances prior to the licensee receiving final approval from OCM to commence operations. During the application and licensing process for cannabis businesses, OCM will notify a local government when an applicant intends to operate within their jurisdiction and request a certification as to whether a proposed cannabis business complies with local zoning ordinances, and if applicable, whether the proposed business complies with state fire code and building code. According to Minnesota’s cannabis law, a local unit of government has 30 days to respond to this request for certification of compliance. If a local government does not respond to OCM’s request for certification of compliance within the 30 days, the cannabis law allows OCM to issue a license. OCM may not issue the final approval for a license if the local government has indicated they are not in compliance. OCM will work with local governments to access the licensing software system to complete this zoning certification process. Page 19 Local Approval Process (cont.) Local Retail Registration Process (342.22) Once the licensing process begins, local government registration applies to licensed cannabis retailers or other cannabis/hemp businesses seeking to conduct retail sales. Several license types are authorized to conduct retail sales if they receive a retail endorsement from OCM. Prior to conducting retail sales under their business license, state law also requires the business receive a local retail registration. There are five license types that are eligible to conduct cannabis retail activity and will seek a retail registration from local governments: • Cannabis retailers • Microbusinesses • Mezzobusinesses • Medical cannabis combination businesses • Lower-potency hemp edible retailers Local governments must issue a retail registration after verifying that: • The business has a valid license or license preapproval issued by OCM. • The business has paid a registration fee or renewal fee to the local government. o Initial registration fees collected by a local government may be $500 or half the amount of the applicable initial license fee, whichever is less, and renewal registration fees may be $1,000 or half the amount of the applicable renewal license fee, whichever is less. • The business is found to be in compliance with Chapter 342 and local ordinances. • If applicable, the business is current on all property taxes and assessments for the proposed retail location. Local registrations may also be issued by counties if the respective local government transfers such authorities to the county. Page 20 Local Approval Process (cont.) Option to Limit Retail Registrations for Cannabis Businesses: Determining a Process State law allows the option for a local government to place a limitation on the number of cannabis retailers, microbusiness, and mezzobusinesses with retail endorsements allowed within their locality via ordinance, as long as there is at least one retail location per 12,500 residents. Please see Page 13. Retail registrations for lower-potency hemp edible retailers and medical cannabis combination businesses are required but may NOT be limited in number by a local government. If a local government wishes to limit the number of cannabis retailers, microbusinesses, or mezzobusinesses via ordinance, state law does not define the process for a local government’s selection if there are more applicants than registrations available. Local units of government issuing retail registrations should consider how they will issue retail registrations. Local units of government may wish to consider whether they will accept applications during a specified application window or on a rolling basis. Local governments may wish to consider how to accommodate to the timing of accepting applications for retail registration as to not allocate all registrations at once. This may also include timelines that coincide with state licensing timelines as to limit bottlenecks. Additionally, local units of government should consider the process by which they will determine who gets a registration, e.g., through the use of a lottery, on a first-come/first- serve model, through a merit-based scoring system, etc. It is highly recommended that local governments work with an attorney to determine their specific process for selection if they wish to limit the number of retail registrations per section 342.13. It is also important to note that local governments are not required to limit the number of licensed cannabis retailers, microbusinesses, or mezzobusinesses, and instead local governments can determine a process that reviews requests/applications for retail registrations as they are received. Page 21 Local Approval Process (cont.) Other Considerations Existing retail locations. Retailers in Minnesota’s medical cannabis program and lower- potency hemp edible program may currently be operating in a local government’s jurisdiction under active registrations. In the future, these active businesses will be required to obtain a license from OCM and will need a local retail registration to continue their operations. Local governments may wish to consider how businesses currently operating will be issued retail registrations when determining if and how to limit retail registrations. Local zoning approval does not guarantee retail registration. Zoning certification from local governments does not guarantee a local retail registration. This is a distinctly separate approval process. All applicants seeking retail activity will be required to obtain a zoning certification from the local government to be issued a state license. Local governments may wish to monitor the number of zoning certifications they provide to OCM to inform the likely volume of retail registration applicants. Page 22 Local Approval Process (cont.) Local governments are permitted specific authorities for registration refusal and registration suspension, in addition to—and not in conflict with—OCM authorities. Registration and Renewal Refusals Local governments may refuse the registration and/or certification of a license renewal if the license is associated with an individual or business who no longer holds a valid license, has failed to pay the local registration or renewal fee, or has been found in noncompliance in connection with a preliminary or renewal compliance check. Local Registration Suspension (342.22) Local governments may suspend the local retail registration of a cannabis business or hemp business if the business is determined to not be operating in compliance with a local ordinance authorized by section 342.13 or if the operation of the business poses an immediate threat to the health and safety of the public. The local government must immediately notify OCM of the suspension if it occurs. OCM will review the suspension and may reinstate the registration or take enforcement action. Expedited Complaint Process (342.13) Per state law, OCM will establish an expedited complaint process during the rulemaking process to receive, review, read, and respond to complaints made by a local unit of government about a cannabis business. Upon promulgation of rules, OCM will publish the complaint process. At a minimum, the expedited complaint process shall require the office to provide an initial response to the complaint within seven days and perform any necessary inspections within 30 days. Within this process, if a local government notifies OCM that a cannabis business poses an immediate threat to the health or safety of the public, the office must respond within one business day. Page 23 Inspections & Compliance Checks Local governments are permitted specific business inspection and compliance check authorities, in addition to—and not in conflict with—OCM authorities. Inspections and Compliance Checks (342.22) Local governments must conduct compliance checks for cannabis and hemp businesses holding retail registration at least once per calendar year. These compliance checks must verify compliance with age verification procedures and compliance with any applicable local ordinance established pursuant to section 342.13. OCM maintains inspection authorities for all cannabis licenses to verify compliance with operation requirements, product limits, and other applicable requirements of Chapter 342. Page 24 Municipal Cannabis Stores As authorized in section 342.32, local governments are permitted to apply for a cannabis retail license to establish and operate a municipal cannabis store. State law requires OCM issue a license to a city or county seeking to operate a single municipal cannabis store if the city or county: • Submits required application information to OCM, • Meets minimum requirements for licensure, and • Pays applicable application and license fee. A municipal cannabis store will not be included in the total count of retail licenses issued by the state under Chapter 342. A municipal cannabis store cannot be counted as retail registration for purposes of determining whether a municipality’s cap on retail registrations imposed by ordinance. Page 25 Creating Your Local Ordinance As authorized in section 342.13, a local government may adopt a local ordinance regarding cannabis businesses. Establishing local governments’ ordinances on cannabis businesses in a timely manner is critical for the ability for local cities or towns to establish local control as described in the law and is necessary for the success of the statewide industry and the ability of local governments to protect public health and safety. The cannabis market’s potential to create jobs, generate revenue, and contribute to economic development at the local and state level is supported through local ordinance work. The issuance of local certifications and registrations to prospective cannabis businesses is also dependent on local ordinances. • Local governments may not prohibit the possession, transportation, or use of cannabis, or the establishment or operation of a cannabis business licensed under state law. • Local governments may adopt reasonable restrictions on the time, place, and manner of cannabis business operations (see Page 14). • Local governments may adopt interim ordinances to protect public safety and welfare, as any studies and/or further considerations on local cannabis activities are being conducted, until January 1, 2025. A public hearing must be held prior to adoption of an interim ordinance. • If your local government wishes to operate a municipal cannabis store, the establishment and operation of such a facility must be considered in a local ordinance. Model Ordinance For additional guidance regarding the creation of a cannabis related ordinance, please reference the additional resources on page 27. Page 26 Additional Information – Tobacco Sales Penalties Related to a Revocation or Suspension of Tobacco License A cannabis or hemp business license holder may also hold a tobacco license under Minnesota Statutes Chapter 461. However, tobacco cannot be sold in the cannabis retail location. Under section 461.12, Minnesota law allows a licensee’s authority to sell tobacco and related products under the section to be suspended and possibly revoked if the licensee also holds a cannabis or hemp business license under Chapter 342 or is a registrant under section 151.72 and that license or registration is revoked. This penalty also applies if the license holder is convicted of an offense under section 151.72 or has been convicted under any other statute for illegal sale of cannabis products. Clarifying Cannabis Businesses Authority Cannabis businesses will be able to sell vaporizers without a tobacco license. Under Minnesota Statutes, section 342.27, subd. 3(a), retail licensees are permitted to sell cannabis paraphernalia. Cannabis paraphernalia includes “all equipment, products, and materials of any kind that are knowingly or intentionally used primarily in ... ingesting, inhaling, or otherwise introducing cannabis products into the human body” [Minnesota Statutes, section 342.01, subd. 18(2)]. Therefore, Minnesota Statutes, section 342.27, subd. 3(a) specifically authorizes retail licensees to sell cannabis paraphernalia, which in this instance includes vaporizers. Page 27 Additional Resources OCM Toolkit for Local Partners Please visit the OCM webpage (mn.gov/ocm/local-governments/) for additional information, including a toolkit of resources developed specifically for local government partners. The webpage will be updated as additional information becomes available and as state regulations are adopted. Toolkit resources include: • Appendix A: Cannabis Model Ordinance (mn.gov/ocm/lgg-appendix-a) • Appendix B: Retail Registration Form and Checklist (mn.gov/ocm/lgg-appendix-b) • Appendix C: Cannabis Flower and Hemp-Derived Cannabinoid Products Inspection Checklist (mn.gov/ocm/lgg-appendix-c) • Appendix D: Enforcement Notice from the Office of Cannabis Management (mn.gov/ocm/lgg-appendix-d) • Appendix E: Notice to Unlawful Cannabis Sellers (mn.gov/ocm/lgg-appendix-e) • Appendix F: Model Guidelines on Age Verification Compliance Checks Policy and Procedures (mn.gov/ocm/lgg-appendix-f) • Appendix G: Cannabis and Hemp Age Compliance Check Form (mn.gov/ocm/lgg- appendix-g) • Appendix H: Local Unit of Government Cannabis Licensing Contact, Delegation Form, and Accela Registration Instructions Guide (mn.gov/ocm/local- governments/contactform.jsp) • Appendix J: Local Approval for Early Cultivation (mn.gov/ocm/lgg-appendix-j) Local Organizations There are several organizations who also have developed resources to support local governments regarding the cannabis industry. Please feel free to contact the following for additional resources: • League of Minnesota Cities • Association of Minnesota Counties • Minnesota Public Health Law Center Some people who received this message don't often get email from lyndabarry760@gmail.com. Learn why this is important From:Michele Lindau To:Max Gort; Rachel Juba Subject:FW: Hugo Cannabis - Important Distinction in the Population Rule Date:Thursday, December 5, 2024 10:25:55 AM Attachments:image001.png Michele Lindau Hugo City Clerk 651-762-6315 From: Lynda Barry <lyndabarry760@gmail.com> Sent: Thursday, December 5, 2024 10:13 AM To: Tom Weidt <mayortom@ci.hugo.mn.us>; Becky Petryk <jdpetryk@gmail.com>; Phil Klein <philklein7@msn.com>; Dave Strub <dstrub@ci.hugo.mn.us>; Mike Miron <mmiron@ci.hugo.mn.us> Cc: Hugo Info <info@ci.hugo.mn.us>; Bryan Bear <bbear@ci.hugo.mn.us>; Michele Lindau <mlindau@ci.hugo.mn.us> Subject: Hugo Cannabis - Important Distinction in the Population Rule Caution: This email originated outside our organization; please use caution. Dear Mayor Weidt and City Council Members ~ In reading the Nov 27 news article titled Hugo City Council sets public hearing for cannabis, I noticed that a very important nuance is missing in the following quote: " ...Per state statute, the city of Hugo would be required to allow a minimum of two cannabis businesses due to its population of 17,000. (One retail license is required per 12,500 residents.)" ... "Mayor Tom Weidt said that was a “big roundup,” but Gort explained that is the way the law is written." Having not attended the meeting, I don't know if Mr. Gort failed to mention - or if the reporter failed to include in the article - that under section 342.13 subsection (j) If a county has one active registration for every 12,500 residents, a city or town within the county is not obligated to register a cannabis business. In other words, if other cities within Washington county wish to exceed their population requirement, Hugo may not be required to issue any cannabis licenses at all ... or possibly issue just one license. [(k) Nothing in this section shall prohibit a local government unit from allowing licensed cannabis retailers in excess of the minimums set in paragraph (i).] I do not personally have a strong position on this topic one way or another - except for the fact that as 7-year residents of Hugo, my husband and I are both STRONG proponents of Hugo keeping the "small town/rural" feel we fell in love with (and the reason we happily left our St. Paul home of 30 years). Sadly, over the past 3 or 4 years we feel this rapidly slipping away and caution against any further actions (cannabis or otherwise) which might further deteriorate the unique treasure that is Hugo, MN. Thank you for your time and for your service to our beautiful community. Lynda (and Jeff) Barry 165th Street N, Hugo From:Dean Anderson To:Tom Weidt; Becky Petryk; Phil Klein; Dave Strub; Mike Miron; Michele Lindau; Bryan Bear; Max Gort; Rachel Juba Cc:Reece Geel; Isabeau Ryan Subject:Hugo"s Future - Cannabis Zoning Date:Monday, December 2, 2024 11:08:38 AM You don't often get email from dean@uffda.cc. Learn why this is important Caution: This email originated outside our organization; please use caution. The decisions you are about to make over the next few weeks on where and how cannabis cultivation can occur are not just policy—they are a defining moment for Hugo’s future. These choices will ripple through our community, affecting not only businesses like ours but also the very character and legacy of our city. This is an opportunity to lead, to shape Hugo into a place where tradition and innovation coexist, and where small farms and new ideas thrive together. It is imperative that cannabis cultivation be considered an agricultural activity. The world around us is changing, and farming as we know it is under threat. Small farms are disappearing, swallowed up by corporations that prioritize profit over stewardship. Traditional crops like corn, soybeans, and dairy have become increasingly difficult to grow and sell profitably, especially for independent farmers. The dream of owning a farm and being a full-time farmer is slipping away for many, unless they can operate at an industrial scale. We can see the writing on the wall. The aging hands that have tilled Hugo’s soil for decades are slowly retiring, and their farms—those patches of land that hold generations of blood, sweat, and dreams—are at a crossroads. What will become of them? Without innovation, their futures are bleak. These small, family-owned farms will either be swallowed whole by faceless Big Ag corporations, stripping them of their soul and connection to the community, or flattened and sold off to developers, paving over the legacy of Hugo’s agricultural roots. But it doesn’t have to be this way. We have an opportunity—a responsibility—to ensure that these farms not only survive but thrive. By embracing innovation, like incorporating cannabis cultivation as a modern cash crop, we can give the next generation of farmers the tools to succeed. We can preserve the heart of Hugo while paving the way for a future where farming is once again a livelihood to aspire to. Cannabis offers an opportunity to revitalize farming. As a cash crop, it has the potential to make homesteading and small- scale farming tangible again, giving new farmers a viable path to succeed without relying on massive volumes. We moved to Hugo with a vision of escaping the city, purchasing land, and building a homestead where we could grow cannabis. We were drawn to Hugo for its vibrant community of modern farmers—people like Niemczyk Gardens, T and Nae’s Flower Farm, and Applecrest Orchard—just to name a few who exemplify the harmony of agriculture and community. Restricting cannabis cultivation to industrial zones would miss the chance to treat this crop as part of our agricultural heritage and risks framing a vibrant opportunity as something disconnected from the land. Cannabis is not just a crop; it is a symbol of innovation and resilience in farming. It has the power to preserve Hugo’s agricultural roots while supporting sustainable growth. The choice of how to zone cannabis cultivation belongs to this council and this community—not distant bureaucrats who don’t know the heart of Hugo. This is your moment to lead, to protect the values and character of our city, and to ensure that the decisions made today honor the legacy of those who built Hugo while securing a future where the next generation can thrive and the promise of the American Dream endures. Thank you for your time and thoughtful consideration. Dean, Beau, and Reece From:Dean Anderson To:Rachel Juba; Max Gort Cc:Isabeau Ryan; Reece Geel Subject:Request for Feedback on Proposed Addendum: Cannabis Agriculture Operations Date:Wednesday, December 11, 2024 12:16:09 PM You don't often get email from dean@uffda.cc. Learn why this is important Caution: This email originated outside our organization; please use caution. Rachel and Max, We want to first commend the effort and thoughtfulness you’ve put into drafting the current ordinance regulating cannabis businesses in Hugo. It’s clear you’ve prioritized both the needs of the community and the importance of thoughtful oversight in this evolving industry. As part of the process, we’ve developed a proposed addendum to introduce Cannabis Agriculture Operations under a Conditional Use Permit (CUP) within Agricultural (AG) and Future Urban Service (FUS) districts. This proposal aligns with the state’s recognition of Microbusinesses and Mezzobusinesses as comparable to distilleries and breweries, while also considering their agricultural techniques. We believe this framework strikes a balance by fostering local innovation and supporting small-scale operators, while still maintaining the city’s rural character and providing oversight through the CUP process. (Please see attached Draft Addendum) Before sharing this with council members and stakeholders on Thursday, we would greatly value your thoughts and insights. Additionally, could you advise on the best way to submit this to the Planning Commission for review prior to their meeting? If there are email addresses for the members, that would be much appreciated; otherwise, we’re happy to submit hard copies at the meeting. Thank you for your time and guidance. We’re looking forward to your feedback and further collaboration on this effort. Best regards, Dean, Beau, and Reece Draft of Addendum Hugo SUGGESTED ADDENDUM TO ORDINANCE RELATING TO AND REGULATING CANNABIS AND CANNABIS BUSINESSES WITHIN THE CITY OF HUGO Submitted to the Hugo Planning Commission Thursday, December 12, 2024 Hugo City Hall, 7:00 PM TITLE: An addendum proposing amendments to the draft ordinance to include Cannabis Agriculture Operations as a Conditional Use within Agricultural (AG) and Future Urban Service (FUS) Districts. INTRODUCTION: The proposed addendum seeks to expand the scope of the draft ordinance regulating cannabis businesses within Hugo by introducing the concept of Cannabis Agriculture Operations. This amendment would allow Cannabis Microbusinesses and Mezzobusinesses to operate under a Conditional Use Permit (CUP) within Agricultural (AG) and Future Urban Service (FUS) districts, ensuring that cannabis cultivation and processing align with traditional farming practices while preserving Hugo’s rural aesthetic and community values. The Conditional Use Permit framework provides the city with a structured method for oversight and regulation, ensuring compatibility with existing land uses and maintaining the small-town character that defines Hugo. By adopting this addendum, Hugo would position itself as a forward-thinking community, safeguarding its agricultural heritage while embracing innovative farming practices. PROPOSED AMENDMENTS TO THE DRAFT ORDINANCE: 1. Chapter 90, Article I, Section 90-1 – Definitions Add the following definitions: ● Cannabis Agriculture: The cultivation, processing, and limited distribution of cannabis plants and products by state-licensed Cannabis Microbusinesses and Mezzobusinesses, regulated under the same standards and zoning practices as traditional agricultural uses. Permitted as a Conditional Use within Agricultural (AG) and Future Urban Service (FUS) districts, subject to specific performance standards. ● Cannabis Agriculture Operation: A state-licensed Cannabis Microbusiness or Mezzobusiness engaged in Cannabis Agriculture, adhering to traditional agricultural zoning, building codes, and land-use standards, and requiring Conditional Use Permit (CUP) approval. 2. Chapter 90, Article IV – Zoning District Regulations Section 90-101 – Agricultural District (AG): Add the following to subsection (d) Conditional Uses: ● (8) Cannabis Agriculture Operations (refer to Section 90-280(p)). Section 90-105 – Future Urban Service (FUS): Add the following to subsection (d) Conditional Uses: ● (5) Cannabis Agriculture Operations (refer to Section 90-280(p)). 3. Chapter 90, Article VI – Requirements for Specific Uses and Performance Standards Add Section 90-280(p) – Cannabis Agriculture Operations: 90-280(p) – Cannabis Agriculture Operations Purpose: To regulate and integrate Cannabis Agriculture Operations within Agricultural (AG) and Future Urban Service (FUS) districts, ensuring compatibility with existing agricultural uses, preserving Hugo’s rural character, and maintaining oversight through Conditional Use Permits. Performance Standards: 1. Only Cannabis Microbusinesses and Mezzobusinesses licensed under Minn. Stat. 342.28 and 342.29 may qualify as Cannabis Agriculture Operations. 2. Cultivation and processing must occur within agricultural accessory structures compliant with local building codes. 3. Operations must include a primary residence on-site to maintain the agricultural character. 4. Compliance with state requirements for waste management, security, and lighting is mandatory. Conditional Use Permit (CUP) Requirements: 1. Applicants must submit: ○ A site plan demonstrating compliance with agricultural building standards. ○ Odor mitigation and waste management plans consistent with local and state requirements. ○ Proof of residence or intent to establish a primary residence on the property. 2. CUPs may be revoked if the operation fails to comply with performance standards. 4. Chapter 90, Article VI – Registration of Cannabis Businesses Amend Section 90-280(c): Add the following under subsection (2) Registration of Cannabis Businesses: ● (g) A Cannabis Agriculture Operation must obtain a Conditional Use Permit (CUP) under Section 90-280(p) prior to registration approval. CONCLUSION: This proposed addendum strengthens the existing draft ordinance by introducing a framework that supports local farming innovation while maintaining control and oversight through the Conditional Use Permit process. By allowing Cannabis Agriculture Operations in Agricultural and Future Urban Service districts, Hugo can safeguard its rural identity, encourage modern homesteading, and ensure compatibility with the city’s zoning standards. Respectfully submitted, Dean, Beau, and Reece 11/2/2025 3:18 PMMeetings in green are scheduled/posted meetings.Su Mo Tu We Th Fr Sa123456789101112 13 14 15 16 17 1819 20 21 22 23 24 2526 27 28 29 30 31January 2025Su Mo Tu We Th Fr Sa12345678910111213141516 17 18 19 20 21 2223 24 25 26 27 28February 2025January 2025Dec 293031Jan 1, 252348:00am New Year5678910117:00pm City Council6:30pm BOZA7:00pm Planning Comm121314151617187:00pm Parks Comm5:00pm FD Banquet (Hugo American Legion) 19202122232425MLK5:30pm EDA6:30pm Hist Comm6:30pm BOZA7:00pm Planning Comm262728293031Feb 16:00pm Goal Setting Workshop (Council Chambers) SUNDAYMONDAYTUESDAYWEDNESDAYTHURSDAYFRIDAYSATURDAY 21/2/2025 3:18 PMMeetings in green are scheduled/posted meetings.Su Mo Tu We Th Fr Sa12345678910111213141516 17 18 19 20 21 2223 24 25 26 27 28February 2025Su Mo Tu We Th Fr Sa12345678910111213141516 17 18 19 20 21 2223 24 25 26 27 28 2930 31March 2025February 2025Jan 262728293031Feb 123456781:00pm Lions Club 50th (PPP)7:00pm City Council91011121314156:30pm BOZA7:00pm Planning CommValentine Day16171819202122Pres Day7:00pm City Council (Need to reschedule)5:30pm EDA6:30pm Hist Comm7:00pm Parks Comm232425262728Mar 16:30pm BOZA7:00pm Planning CommSUNDAYMONDAYTUESDAYWEDNESDAYTHURSDAYFRIDAYSATURDAY The following items were distributed at the Council meeting. From:Dean Anderson To:Tom Weidt; Becky Petryk; Dave Strub; Mike Miron; Bryan Bear; Rachel Juba; Michele Lindau; Max Gort Cc:Reece Geel; Isabeau Ryan Subject:Urgent Action Required: Cannabis Zoning Ordinance Procedural Concerns Date:Monday, January 6, 2025 5:15:07 PM You don't often get email from dean@uffda.cc. Learn why this is important Caution: This email originated outside our organization; please use caution. Dear Mayor, City Council Members, and Planning Commission Members, We are writing to urgently request that the City Council re-evaluate and refer the Cannabis Zoning Ordinance back for further review before its adoption. The current process, driven by fear and unfamiliarity rather than informed decision-making, raises significant concerns about procedural fairness and the disregard of public feedback. Despite ongoing public engagement, including expert consultations offered by stakeholders, the ordinance as it stands reflects the unchallenged influence of Associate Planner Gort rather than a balanced, community-driven approach. This course of action places the city at risk of potential legal challenges and undermines public trust in the integrity of the zoning process. Specifically, we urge the council to adopt the public-recommended amendment, which introduces a Conditional Use Permit (CUP) framework for cannabis cultivation in rural zoning districts. This amendment represents a balanced compromise addressing the concerns of both city staff and the public. The ordinance, as currently written, fails to reflect the broader interests of landowners and residents who have actively participated in this process. In light of these ongoing issues, we strongly urge the council to consider the following steps: 1. Adopt the Public-Recommended Amendment – The addendum offered by the public provides a pragmatic solution that addresses both city staff concerns and public interests. Adopting this amendment would demonstrate the city’s commitment to fair governance and responsible land-use planning. 2. Re-evaluate the Cannabis Zoning Ordinance and Refer it Back for Further Review – Allow additional time for meaningful integration of public feedback, expert consultation, and balanced zoning practices that reflect the realities of cannabis cultivation. Failure to take these steps may not only lead to negative public perception and backlash but could also lay the groundwork for legal challenges that could further complicate the city's efforts to regulate cannabis cultivation. By engaging more thoroughly with the community and demonstrating a commitment to transparency and fairness, the city can avoid unnecessary conflict and foster policies that benefit everyone involved. For Further Analysis and Detail: Lack of Due Process and Public Engagement: Throughout this process, we have consistently engaged with city officials, planning staff, and council members, offering public feedback and expert consultation from industry professionals to help bridge the knowledge gap regarding cannabis cultivation and its relationship to agricultural land use. Despite this, the primary justification for restrictive zoning continues to be based on fear, unfamiliarity, and a lack of understanding about the cannabis industry—a sentiment openly acknowledged by council members and staff during public meetings. We have been patient and proactive in offering our expertise and resources, including industry consultants, to help guide the city through this process. Unfortunately, these offers have been ignored, and our attempts to provide accurate, informed perspectives have not been reflected in the current draft of the ordinance. A particularly concerning element of this process is the outsized influence of Associate Planner Gort in shaping the ordinance. As demonstrated by Associate Planner Gort’s recent email, it is clear that some planning commissioners expressed interest in allowing cannabis cultivation in rural zoning districts, but rather than fostering a robust discussion or considering public feedback, the commission defaulted to maintaining restrictive zoning based on his guidance. The fact that Associate Planner Gort, with no formal background in cannabis or agricultural industries, has taken the lead in coordinating these efforts raises serious questions about procedural fairness and transparency. Further compounding the issue is the understanding that adjustments have been made to the ordinance since the Planning Commission meeting, none of which reflect public feedback. This suggests that changes were made based on Associate Planner Gort’s individual interpretation rather than through meaningful engagement with the community or elected officials. Efforts to Collaborate and Address Concerns: To further facilitate a productive outcome, we went so far as to draft and submit an addendum to the proposed ordinance, offering a reasonable Conditional Use Permit (CUP) framework that aligns with both public and council feedback. This addendum represents a middle ground, ensuring responsible cannabis cultivation without "opening the floodgates," as some have feared. However, to date, this effort has not been meaningfully acknowledged or integrated into the ordinance's development. The Risk of Arbitrary and Capricious Zoning: It is concerning that the planning commission and council have not provided a clear rebuttal or justification for why cannabis cultivation cannot be zoned as agricultural, particularly when comparable agricultural operations are permitted without similar restrictions. This selective treatment risks arbitrary and capricious zoning, exposing the city to potential legal challenges on the grounds of unequal treatment, regulatory overreach, and failure to adhere to due process. Additionally, some council members and commission members have publicly expressed discomfort with the restrictive nature of the ordinance, acknowledging that cannabis cultivation is fundamentally no different from other agricultural activities. These comments, now part of the public record, highlight internal inconsistencies that further undermine the credibility of the proposed zoning. We appreciate your attention to this matter and your dedication to serving the interests of our community. We look forward to constructive dialogue during the upcoming council meeting. Sincerely, Dean, Beau, Reece