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HomeMy WebLinkAbout2025.07.07 CC MinutesMINUTES City Council Meeting City Hall Council Chambers Monday, July 7, 2025 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: Krull, Miron, Petryk, Strub, Weidt COUNCIL ABSENT: None OTHERS PRESENT: City Administrator Bryan Bear, City Attorney Dave Snyder, City Engineer Mark Erichson, Community Development Director Rachel Juba, City Clerk Michele Lindau Approve Minutes for the June 2, 2025, City Council Meeting Miron made motion, Strub seconded, to approve the minutes for City Council meeting held on June 2,2025, as presented. All Ayes. Motion carried. Approve Minutes for the June 12, 2025, Schwieters Open House Petryk made motion, Strub seconded, to approve the minutes for the Schwieters Open House on June 12, 2025, as presented. All Ayes. Motion carried. Approval of Agenda Weidt made motion, Krull seconded, to approve the agenda as presented. All Ayes. Motion carried. Presentation of 2024 Audit Report – Smith Schafer & Associates Jill Schultz from the independent accounting firm of Smith Schafer & Associates was in attendance to present a recap of the audit of City finances for the 2024 fiscal year. She began by explaining that the audit determined that the City’s finances are accurate as presented. The State Auditor establishes the areas that are required to be tested. The audit found nothing in noncompliance and there were no exceptions noted during the audit. Jill reviewed governmental funds saying property tax revenue made up the largest part of governmental fund revenues. Intergovernmental revenue was lower than the previous year, Council Meeting Minutes for July 7, 2025 Page 2 of 9 primarily due to the receipt of ARPA funds the prior year. Investment income improved in 2024 due to favorable market conditions. General government expenses increased by 8%, mainly due to higher contract engineering and other professional service fees. This category has shown a steady upward trend each year. Public safety expenses rose by 11%, attributed to an increase in the Washington County Sheriff contract and having a full-time fire chief for the entire year. Highways and streets expenses increased by 5%, primarily from enhanced maintenance activities, including siren repairs, street lighting, and concrete work. Park maintenance expenses decreased by 8%, mainly due to reduced personnel costs. Jill displayed a pie chart illustrating that the majority of expenses were for public safety and general government functions. The distribution remained similar to previous years. Jill explained the purpose and benefit of general fund reserves and referenced the 2008 tornado as an example of why maintaining strong reserves is important for timely response to emergencies. The City’s reserve balance was approximately 69% of total expenditures. The State Auditor recommends a reserve level of 35–50%; Hugo's reserve is about 50% of the next year’s budget. The five-year debt service showed a slight decrease. Capital project activity dropped in 2024. Significant projects were done in 2021 and 2022, particularly the Public Works facility and Lions Park. Jill talked about Enterprise Funds, which included water, sewer, and related construction fees saying they fluctuate from year to year, and the revenue increase was fairly the same as last year. Jill concluded by saying the City was issued an unmodified audit opinion with no Minnesota legal compliance exceptions. The Annual Comprehensive Financial Report was posted on the City’s website and available in the Finance Directors office. Summary financials will also be published in the city’s official newspaper Weidt made motion¸ Petryk seconded, to accept the findings of the audit. All Ayes. Motion carried. Approval of Consent Agenda Krull made motion, Miron seconded, to approve the following Consent Agenda: 1. Approve Claims Roster 2. Approve Annual Performance Review for Public Works Worker Jeff Maas 3. Approve Hiring of Mason Libke as New Building Inspector 4. Approve Hiring of Mike Perron as New Public Works Worker 5. Approve Resignation of Utility Lead Worker Rick Fox 6. Approve Internal Advertisement for Public Works Lead Utility Worker Position 7. Approve Transfer of Ownership of AED to the Hugo Fire Department from the Hugo Good Neighbors Food Shelf 8. Approve Hugo Firefighter’s Relief Association Request for Increase in Lump-Sum Pension Council Meeting Minutes for July 7, 2025 Page 3 of 9 9. Approve Hugo Firefighter’s Relief Association Request to Ratify the Interest Rate for Deferred Members 10. Approve Revisions to the Hugo Firefighter’s Relief Association Bylaws 11. Approve Donation from the St. John’s the Baptist Men’s Club to the Hugo Fire Department 12. Approve Reduction in Letter of Credit for Watercrest 1st Addition 13. Approve Resolution Approving Encroachment Agreement for 4801 142nd Street North 14. Approve Resolution Approving Encroachment Agreement for 15539 Goodview Trail North 15. Approve Resolution Approving Encroachment Agreement for 6209 157th Street North 16. Approve Quote for Gravel Contract 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 Jeff Maas Jeff Maas was hired by the City of Hugo on July 24, 2006, as a Public Works Worker. Adoption of the Consent Agenda approved the annual performance review for Public Works Worker Jeff Maas. Approve Hiring of Mason Libke as New Building Inspector After conducting interviews for a new Building Inspector, Community Development Director Rachel Juba had selected Mason Libke to fill the position. Adoption of the Consent Agenda approved the hiring of Mason Libke as the new Building Inspector at Pay Grade 7, Minimum Step with a start date of July 7, 2025. Approve Hiring of Mike Perron as New Public Works Worker After conducting interviews for a new Public Works Worker, Public Works Director Scott Anderson had selected Mike Perron to fill the position. Adoption of the Consent Agenda approved the hiring of Mike Perron as the new Public Works Worker at Pay Grade 5, Step 3 with a start date to be determined. Approve Resignation of Utility Lead Worker Rick Fox On Wednesday, June 18, 2025, Public Works Utility Lead Worker Rick Fox verbally submitted his resignation from his position at the City of Hugo. Adoption of the Consent Agenda approved the resignation of Rick Fox effective June 18, 2025. Approve Internal Advertisement for Public Works Lead Utility Worker Position The position of Utility Lead Worker became vacant following the resignation of Richard Fox. Since his departure, Public Works Director, Scott Anderson, had several current Hugo Public Council Meeting Minutes for July 7, 2025 Page 4 of 9 Works employees express interest in the position. Staff requested to advertise internally to fill this position. If no qualified internal applicant was found, staff would advertise outside of the Hugo Public Works organization. Adoption of the Consent Agenda approved staff to conduct interviews with internal candidates who are interested in the Utility Lead Worker position. Approve Transfer of Ownership of AED to the Hugo Fire Department from the Hugo Good Neighbors Food Shelf The Hugo Good Neighbors Food Shelf had an Automated External Defibrillator (AED) Unit it wanted to donate to the Hugo Fire Department. The Department would take on the responsibility of maintaining as they do all other AED’s in City buildings and vehicles. All donations to the Fire Department needed to be approved by Council. Adoption of the Consent Agenda approved the donation from the Hugo Good Neighbors Food Shelf to the Hugo Fire Department. Approve Hugo Firefighter’s Relief Association Request for Increase in Lump-Sum Pension The Board of Trustees for the Hugo Firefighter’s Relief Association had formally requested City Council ratification of an increase of $500 per year of service in their lump-sum pension benefit. The Finance Department reviewed this request and found it to be financially feasible and consistent with the Pension Fiscal Policy adopted in April 2012. Adoption of the Consent Agenda approved the Board of Trustees request for a $500 increase in their lump-sum pension benefit and corresponding change to their bylaws. Approve Hugo Firefighter’s Relief Association Request to Ratify the Interest Rate for Deferred Members The Office of the State Auditor recently issued guidance stating that, in order for deferred members to be credited with interest, the rate must be approved by a relief association’s board of trustees and ratified by the affiliated municipal governing board. To be in compliance with this mandate, the Hugo Firefighter’s Relief Association had voted to maintain the 5% interest rate earned by deferred members as currently stated in the bylaws and has formally requested City Council ratification of the interest rate. Adoption of the Consent Agenda approved the 5% interest rate for deferred members. Approve Revisions to the Hugo Firefighter’s Relief Association Bylaws The Hugo Firefighter’s Relief Association Board of Trustees recently participated in a training session presented by Ed Hoffman from the Minnesota State Fire Department Association. Best practices were reviewed, and updates were provided on state statutes. The current bylaws were reviewed to identify omissions, corrections and statute updates needed. Sections were revised to reflect statutory changes, language updates were made, and officer salaries were increased. The Hugo Firefighter’s Relief Association voted to approve the bylaws as presented and formally requested that the City Council ratify the revisions. Adoption of the Consent Agenda approved the revisions to the Hugo Firefighter’s Relief Association Bylaws. Council Meeting Minutes for July 7, 2025 Page 5 of 9 Approve Donation from the St. John’s the Baptist Men’s Club to the Hugo Fire Department St. John’s the Baptist Men’s Club requested to donate $500 to the Hugo Fire Department. All donations to the Fire Department needed to be approved by the City Council. Adoption of the Consent Agenda approved the $500 donation. Approve Reduction in Letter of Credit for Watercrest of Hugo 1st Addition The Watercrest of Hugo 1st Addition had substantial work completed to date, and Artemis Development Company, LLC. had requested a reduction in the letter of credit. The current letter of credit for the Shores of Oneka Lake Project was in the amount of $1,454,987. Staff had inspected the work completed to date and recommended Council approve the reduction in the letter of credit to $145,498 based on the value of work remaining to be completed. Adoption of the Consent Agenda approved the reduction in the letter of Credit for Watercrest of Hugo 1st Addition. Approve Resolution Approving Encroachment Agreement for 4801 142nd Street North Anthony and Andrea Liebhard had requested an encroachment agreement to allow for the construction of a shed within a drainage and utility easement on property located at 4801 142nd Street North. The Senior Engineering Technician had reviewed the location of the shed and was comfortable with the request. Adoption of the Consent Agenda approved RESOLUTION 2025- 24 APPROVING AN ENCROACHMENT AGREEMENT TO ALLOW CONSTRUCTION OF A SHED WITHIN A DRAINAGE AND UTILITY EASEMENT ON THE PROPERTY LOCATED AT 4801 142ND STREET NORTH. Approve Resolution Approving Encroachment Agreement for 15539 Goodview Trail North Caitlin and Nicholas Frucci had requested an encroachment agreement to allow for the construction of a fence within a drainage and utility easement on property located at 15539 Goodview Trail North. The Senior Engineering Technician had reviewed the location of the fence and was comfortable with the request. Adoption of the Consent Agenda approved RESOLUTION 2025-25 APPROVING AN ENCROACHMENT AGREEMENT TO ALLOW CONSTRUCTION OF A FENCE WITHIN A DRAINAGE AND UTILITY EASEMENT ON THE PROPERTY LOCATED AT 15539 GOODVIEW TRAIL NORTH. Approve Resolution Approving Encroachment Agreement for 6209 157th Street North Anthony and Judith Straquadine had requested an encroachment agreement to allow for the construction of a fence within a drainage and utility easement on property located at 6209 157th 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 2025- 26 APPROVING AN ENCROACHMENT AGREEMENT TO ALLOW CONSTRUCTION OF A FENCE WITHIN A DRAINAGE AND UTILITY EASEMENT ON THE PROPERTY LOCATED AT 6209 157th STREET NORTH. Council Meeting Minutes for July 7, 2025 Page 6 of 9 Approve Quote for Gravel Contract Staff received quotes for class 5 modified gravel to be placed on our rural gravel roads. Staff received 3 quotes: Dresel Contracting, Miller Excavating and Arnt Construction. Dresel Contracting provided the low quote of $15.60 per ton delivered price. The City will need approximately 5,600 tons for a total contract of $87,360.00. The roads included in this year’s re- graveling project are: Fiona Rd, 140th St and 147th St. Adoption of the Consent Agenda approved the contract with Dresel Contracting to provide class 5 modified gravel at $15.60 per ton. Public Hearing on the Issuance of Educational Facilities Revenue Bonds – Legacy Christian Academy At the May 5, 2025, City Council meeting, the Council adopted a resolution calling for a public hearing on a proposal to Issue Educational Facilities Revenue Bonds in an amount not to exceed $6,000,000, on behalf of Legacy Christian Academy (the “Borrower”), a Minnesota nonprofit corporation organized under the laws of the State of Minnesota. Finance Director Anna Wobse explained the bond proceeds would be used to finance the acquisition and improvements of a currently leased pre-k through12 educational facility located at 3037 Bunker Lake Blvd NW in Andover. The Borrower agreed to pay the City of Hugo an issuer’s administrative fee of ½ of 1% of the principal amount of the bonds. Taft Law, the City’s bond counsel, had reviewed this request and found it to be a proper use of the City’s bonding authority. The City would only be serving as the bond issuer and would have no obligations for repaying investors. Wobse recommended Council open the public hearing and adopt the resolution approving the issuance and sale of the bonds. Rachel Lochner from Taft Law and Jake Mulvihill, the Head of School were in attendance to answer questions. Miron asked Anna to remind them why the City has the ability to issue the bonds. Anna explained the City has $10 million annually in bonding authority and has not used, nor plans to use, any this year. Jake thanked the Council on behalf of the families and students for considering this bond offer, Rachel reiterated that all costs and fees were being paid by the borrower. Weidt opened the public hearing. There were no comments, and he closed the public hearing. Miron made motion, Strub seconded, to approve RESOLUTION NO 2025-27 RESOLUTION APPROVING THE ISSUANCE AND SALE OF AN EDUCATIONAL FACILITIES REVENUE NOTE, SERIES 2025 AND AUTHORIZING THE EXECUTION OF DOCUMENTS RELATING THERETO (LEGACY CHRISTIAN ACADEMY PROJECT). Roll call vote- Ayes: Krull, Miron, Petryk, Strub, Weidt Nays: None Motion carried. Council Meeting Minutes for July 7, 2025 Page 7 of 9 Highway 61 Construction Update Washington County, in partnership with the City of Hugo and MNDOT, are making improvements to TH 61 between Egg Lake Road and Frenchman Road. Construction is scheduled to begin on July 7, 2025, with TH 61 remaining open to traffic except for a two-week period. TH 61 between Egg Lake Road and Frenchman Road will be closed for a two-week period that is currently scheduled to start July 28th. The detour is extensive and shown on the Washington County Construction Newsletter. City Engineer Mark Erichson explained the improvements would include lengthening turn lanes. Replacing a large culvert, making pedestrian improvements. The City has entered into a cooperative agreement with the State for the City’s portion of some of the signal improvements. The widening and shoulder replacement on west side of TH61 will necessitate a full closure. Some of the work was being done that week and traffic will be shifting lanes next week. The week of July 28 will be the most disruptive part of the project with the closure of TH61 from Egg Lake Road to Frenchman Road which will help shorten the project time. Mark talked about the significant detour that will take traffic to the freeway. The road will be open to business and residents, but no through traffic will be allowed. Fire Chief Jim Compton and Washington County Sergeant Matt Wieland have been involved in the discussions on lane closures. The sheriff’s office will be present during the first few days to see that things go smoothly. It is realized people will find other routes, and there will be some cut-through traffic. The detour will be posted in advance of the July 28 closure. Business and residents have been notified. There is information on the project website and people can sign up to receive project notifications. They are also coordinating with mapping applications as well. As per City Code, City construction hours are 7:00 a.m. to 7:00 p.m. Monday through Friday and 8:00 a.m. to 5:00 p.m. on Saturdays, with no work on Sunday or holidays. Mark explained the contractor was requesting an extension of the working hours on Saturdays during the road closure. Specifically, they are requesting that working hours be extended to 7:00 a.m. to 7:00 p.m. on Saturdays to limit the duration of the closure. Miron made motion, Strub seconded, to grant the contractor’s request to extend construction hours per suggestion of the staff. All Ayes. Motion carried. Lions Volunteer Park Veterans Memorial Sub-Committee At the meeting of February 1, 2021, Council approved the overall site plan and preliminary designs for Lions Park. The plan included a future memorial in the southeast corner of Lions Volunteer Park in honor of Hugo Veterans. Future planning of the memorial was anticipated to involve the Hugo American Legion, and they would like to begin its planning. Parks Planner Shayla Denaway explained planning efforts would include operation, fundraising, and design of the memorial. At their meeting of June 18, 2025, the Parks Commission informally discussed the memorial and the establishment of a Memorial Sub-Committee. The Council Meeting Minutes for July 7, 2025 Page 8 of 9 sub-committee will make recommendations to the Parks Commission who will make recommendations to the City Council. It was anticipated that the memorial would be constructed in 3-5 years. Commissioners Andrew Reding and Cathy Arcand volunteered to be on the subcommittee. Five representatives of the Hugo American Legion have volunteered: Dave Fleming, Marcy Brake, Bill Juergens, Paul Christianson, and Carley Brake. Barb Connelly has volunteered to represent the Yellow Ribbon Network. The City would eventually have ownership of the memorial and staff recommended the City take a leadership role. Weidt made motion, Petryk seconded to authorize the Lions Volunteer Park Veterans Memorial Sub-Committee and appoint Ben Krull as the Council representative. All Ayes. Motion carried. Schedule Night to Unite on Tuesday, August 5, 2025 City Administrator Bryan Bear reminded Council that in the past, they had attended Night to Unite neighborhood parties along with Fire Department and Washington County Sheriff’s Office personnel. He recommended Council schedule a meeting to attend National Night Out events on Tuesday, August 5, 2025. Petryk made motion, Miron seconded, to schedule a meeting to attend Night to Unite events on Tuesday, August 5, 2025, at a time to be determined. All Ayes. Motion carried. Schedule Midyear Budget Workshop for Thursday, August 28, 2025 Staff recommended Council schedule the Midyear Budget Workshop for Thursday, August 28, 2025, at 6 p.m. in the Council Chambers. Krull made motion, Petryk seconded, to schedule the Midyear Budget Workshop for Thursday, August 28, 2025. All Ayes. Motion carried. Schedule Annual Citywide Bus Tour for Saturday, October 4, 2025 Staff recommended Council schedule the annual bus tour for Saturday, October 4, 2025, beginning at 10 a.m. Beginning and ending locations are to be determined. Strub made motion, Petryk seconded, to schedule the Annual Bus Tour for Saturday, October 4, 2025. All Ayes. Motion carried. Council Meeting Minutes for July 7, 2025 Page 9 of 9 Adjournment Miron made motion, Strub seconded, to adjourn at 7:55 p.m. All Ayes. Motion carried. Respectfully Submitted, Michele Lindau, City Clerk,