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HomeMy WebLinkAbout2026.02.02 CC MinutesMINUTES City Council Meeting City Hall Council Chambers Monday, February 2, 2026 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 Engineer Mark Erichson, City Attorney Dave Snyder, Community Development Director Rachel Juba, City Clerk Michele Lindau Approve Minutes for the January 5, 2026, City Council Meeting Petryk made motion, Strub seconded, to approve the minutes for the City Council meeting held on January 5, 2026, as presented. All Ayes. Motion carried. Approve Minutes for the January 14, 2026, Legislative Reception Strub made motion, Petryk seconded, to approve the minutes for the White Bear Lake Area Legislative Reception held on January 14, 2026, as presented. All Ayes. Motion carried. Approve Minutes for the January 17, 2026, Fire Department Banquet Miron made motion, Krull seconded, to approve the minutes for the Fire Department Annual Banquet held on January 17, 2026, as presented. All Ayes. Motion carried. Approve Minutes for the January 26, 2026, Goal Setting Workshop Petryk made motion, Krull seconded, to approve the minutes for the City Council Goal Setting Workshop held on January 26, 2026, as presented. All Ayes. Motion carried. Council Meeting Minutes for February 2, 2026 Page 2 of 8 Approval of Agenda Weidt made motion, Miron seconded, to approve the agenda as presented. All Ayes. Motion carried. Northeast Youth & Family Services – President and CEO Angela Lewis Dmello Angela Lewis-Dmello, President & CEO of Northeast Youth & Family Services (NYFS), presented the organization’s Annual Report. NYFS is one of two organizations providing mental health services to Hugo residents, with City funding included in the budget to support these programs. Lewis-Dmello announced NYFS’s upcoming 50th anniversary and reviewed its mission and values. Founded in 1976 by ten municipalities and two school districts, NYFS provides accessible mental health care on a sliding fee scale, including free domestic and sexual violence services. The organization partners with 16 municipalities, five law enforcement agencies, three school districts, and the county sheriff’s departments. Its board includes representatives from partner cities. She described NYFS’s new community-centered model of care, informed by client data. In the past year, NYFS served 1,261 individuals, an increase of 40%, through nearly 20,000 appointments. Forty-eight percent of clients are teens, and most are under age 28. Lewis-Dmello reported on funding and expenses, noting revenue from grants, donations, and third-party billing (36%), with 12% from municipalities. Following post-COVID reinvestment, NYFS moved from a $790,000 deficit in 2023 to a fully funded $5.25 million budget in 2026. The sale of their Shoreview building enabled the creation of an endowment fund. She highlighted programs including clinic- and school-based mental health services, early childhood mental health, community service, and restorative programs. NYFS recently added criminal legal advocacy to support domestic violence victims through law enforcement partnerships and is seeking to expand group therapy and regional service locations. Council Member Weidt commended the growth in services and thanked Lewis-Dmello for the presentation. Community Development Annual Report – Associate Planner Max Gort Associate Planner Max Gort presented to Council the 2025 Community Development Annual Report. He shared information on population estimates saying he expected the 2025 estimate to be17,700 or 18,000 when it is available in the spring. There were a total of 34 applications submitted in 2025 that include three ordnance amendments. Encroachment agreements were high at 13 applications but the City will see a decrease due to them now being handled administratively. A chart of residential building permits over the past ten years showed that, in the last year, 118 single-family home permits and 149 multifamily units were permitted, including five Oneka Council Meeting Minutes for February 2, 2026 Page 3 of 8 Fields buildings with 12 units each and 89 units in the Frenchman Place apartments. A new inspector, Mason Libke, was hired to fill the position previously held by Terry Hagstrom. Approved commercial projects included the Cedar Creek Solar Farm, Kwik Trip, and a dance studio, along with two minor subdivisions. Multifamily projects under construction include Arbor West Apartments and Oneka Fields Apartments, while active single-family projects include the Shores of Oneka Lake and Watercrest of Hugo, as well as a 33,500‑square‑foot addition to Liberty Classical Academy. The Economic Development Authority’s major initiative has been the marketing of the City‑owned property along Highway 61. The City is currently working with La Delicious on a proposed restaurant, community space, retail, and row homes facing Egg Lake. Additional commercial is planned for Frenchman Village and the Shores of Oneka Lake North, and work involving Clarus Dermatology and Agape Spanish Immersion Academy. Max explained another major project staff is working on is the 165th Street AUAR. The objective is to determine impacts of land uses, extension of utilities, and improvement to 165th Street. Another open house is scheduled for March 24, 2026, and final adoption anticipated in May 2026. Ordinance updates were done to the solar farm ordinance, parking ordinance, and fence ordinance that streamlined the process to only require administrative approval if there is infrastructure in the easement. The City had also adopted a cannabis ordinance, and there have been a few inquiries regarding locations to allow retail, but no formal applications have been received. The shoreland ordinance was reviewed due to inconsistencies with the City’s ordinance and state standards. Staff has been working with the DNR on flexibility and has reached an agreement. Staff is preparing a new shoreland ordinance for DNR review. This is important for the proposed development of the City-owned property on Egg Lake. Work has begun on review of the zoning code. Staff is working with Landform to review zoning districts and performance standards. The City received a $50,000 grant for the project. The process of the 2050 comprehensive plan also began at the end of 2025. Max reported that the Metropolitan Council’s population forecasts for the City have been significantly reduced, and the City has formally appealed those projections. Petryk asked whether the shoreland ordinance was being reviewed in a timely manner. Max replied that staff was optimistic. Mayor Weidt thanked Max for the presentation. Approval of Consent Agenda Petryk made motion, Miron seconded, to approve the following Consent Agenda: 1. Approve Claims Roster 2. Approve Annual Performance Review for Finance and Public Works Administrative Assistant Jennifer Compton 3. Approve Resignation of Neil Arcand from the Parks Commission 4. Approve 2026 City Council Focus Goals and Ongoing Priorities Council Meeting Minutes for February 2, 2026 Page 4 of 8 5. Approve Contract with Northeast Youth and Family Services for 2026 6. Approve Emergency Service Agreement with the City of Lexington Fire Department 7. Approve Advertisement for Public Works Summer Seasonal Employees 8. Approve Polling Place Accessibility Grant Program Agreement for Automatic Doors at Fire Hall 9. Approve Special Event Permit for the Hugo American Legion for Snow Drag Races on Egg Lake February 28, 2026 10. Approve Temporary Liquor License for Hugo American Legion for Snow Drag Races on Egg Lake February 28, 2026 11. Approve Donation to the Hugo Fire Department from the Hugo American Legion All Ayes. Motion carried. Approve Claims Roster Adoption of the Consent Agenda approved the Claims Roster as presented. Approve Annual Performance Review for Finance and Public Works Administrative Assistant Jennifer Compton At its February 7, 2022, meeting, Council approved the hiring of Jennifer Compton as the Finance and Public Works Administrative Assistant. Adoption of the Consent Agenda approved the annual performance review for Finance and Public Works Administrative Assistant Jennifer Compton. Approve Resignation of Neil Arcand from the Parks Commission At their February 1, 2021, meeting, Council approved the appointment of Neil Arcand as an alternate member of the Economic Development Authority, then a regular member on January 9, 2023. At the January 6, 2025, meeting, Council approved the reassignment of Neil to the Parks Commission. Neil has now submitted his letter of resignation due to other obligations. Adoption of the Consent Agenda approved the resignation of Parks Commissioner Neil Arcand. Approve 2026 City Council Focus Goals and Ongoing Priorities The Council held their annual Goal Setting Workshop on Monday, January 26, 2026. Council reviewed and discussed goals for 2026 that were drafted by staff with input from the commissions and staff. Adoption of the Consent Agenda approved the focus goals and ongoing priorities for 2026. Approve Contract with Northeast Youth and Family Services for 2026 Over the past several years, the City has 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 2026 budget, Council approved $18,094 in funding for their youth diversion services. Adoption of the Consent Agenda approved the agreement with Northeast Youth and Family Services. Council Meeting Minutes for February 2, 2026 Page 5 of 8 Approve Emergency Service Agreement with the City of Lexington Fire Department City of Lexington Fire Department and the City of Hugo Fire Department had recommended an emergency service agreement to make equipment, personnel and other resources available to both departments. Whenever, in the opinion of the requesting official, there is a need for assistance from the other party, the requesting official may call upon the responding official to furnish assistance. No charges will be levied for assistance unless it continues for more than 12 hours. Time beyond 12 hours will be billed by the responding department according to the rate schedule as established by the Capital City Mutual Aid Association. Adoption of the Consent Agenda approved the Emergency Service Agreement with the City of Lexington. Approve Advertisement for Public Works Summer Seasonal Employees Staff had requested authorization to advertise and hire a total of seven seasonal employees for the Public Works Department. In the 2026 General Fund Budget, Council approved the seasonal positions. Seasonal Public Works Employees assist with mowing, garbage/litter removal, park maintenance, boulevard and general Public Works maintenance. Money has been budgeted in the 2026 General Fund Budget for these positions. These positions will not exceed 40 hours per week. Adoption of the Consent Agenda approved the advertisement for Public Works Summer Seasonal workers. Approve Polling Place Accessibility Grant Program Agreement for Automatic Doors at Fire Hall The City has received Polling Place Accessibility Grant funds from the MN Secretary of State office for elections. This would put automatic/electronic door openers on exterior doors for public use at the Hugo Fire Hall where elections are held. The total amount of the project is $15,966.77. The grant will cover $7,876.28 of the costs and the remainer will come from the Building Maintenance Fund. Adoption of the Consent Agenda approved the Polling Place Accessibility Grant Agreement and the installation of automatic/electronic door openers at the Hugo Fire Hall. Approve Special Event Permit for the Hugo American Legion for Snow Drag Races on Egg Lake The Hugo American Legion had applied for a Special Event Permit to hold a one-day snowmobile racing event on Saturday, February 28, 2026. The American Legion is partnering with the Hugo Knight Riders Snowmobile Club and the Minnesota Snow Drag Tour, which has experience hosting similar events throughout Minnesota. This year, the Minnesota Snow Drag Tour has six events scheduled, including the Hugo American Legion Shootout. The event requires City Council approval of a Special Event Permit due to an estimated attendance of 750 people throughout the day on Saturday, the use of City-owned property along Egg Lake, the use of amplified sound, and the sale of alcohol. Adoption of the Consent Agenda approved the Special Event Permit for the Snow Drag on February 28, 2026, subject to the condition in the memo. Council Meeting Minutes for February 2, 2026 Page 6 of 8 Approve Temporary Liquor License for Hugo American Legion for Snow Drag Races on Egg Lake February 28, 2026 The Hugo American Legion had applied for a Temporary Liquor License for February 28, 2026, to serve alcohol at the Snow Drag Races. Sales would take place in a beer tent. Those entering the tent would be carded and wristbands would be issued to those 21+ years of age. The Legion submitted a completed application, fee, and liquor liability insurance for the event. Adoption of the Consent Agenda approved the Temporary Liquor License for the Hugo American Legion for the Snow Drag Races on February 28, 2026. Approve Donation to the Hugo Fire Department from the Hugo American Legion The Hugo American Legion had requested to donate $1,000 to the Hugo Fire Department from pull-tab proceeds for equipment and training. All donations to the Fire Department need to be approved by the Council. Adoption of the Consent Agenda approved the donation of $1,000 to the Hugo Fire Department. Frenchman Village Concept Plan Maplewood Development requested review and comments on a sketch plan for the properties generally located in the area south of Frenchman Road/CSAH 8 and west of Highway 61. The property totals approximately 97 acres, and the sketch plan shows single-family homes (140 units), townhomes (150 units), and various commercial businesses (95,000 square feet). The portion of the property at the southwest corner of Highway 61 and CSAH 8/Frenchman Road is guided by the Downtown Plan and design guidelines. Community Development Director Rachel Juba reminded Council that comments on a sketch plan are informal and non-binding. Juba provided the Council details on the proposed development. The 2040 Land Use Plan guides commercial, low-density residential, and mixed use at the corner of CSAH 8 and TH 61, and the current zoning matches the Comprehensive Plan for that area. The C-2 zoning is for most commercial uses, and C-1 is more pedestrian-oriented and can include high-density residential. The proposed development reduces the amount of commercial land along the County road but does have commercial on the east and west ends. The plan extends existing townhouse development to the west and proposes single-family housing east of Oneka Parkway, with screening such as berms, ponds, and landscaping recommended along CSAH 8. It was noted that the property has been marketed for several years under the current land use plan without success and that a shift toward residential uses is more viable based on market demand. A clubhouse with a pool and a four-acre park at the extension of Fenway Boulevard are proposed as neighborhood amenities. Some off-street trails will connect to the Hardwood Creek Trail. Staff recommends additional buffering between nearby homes and the Metropolitan Council lift station due to occasional odor concerns. The Parks Commission had reviewed the plan and supported the proposed park’s location and the trail network connecting to existing routes and the future park. They requested that the developer provide approximately five acres of usable parkland to accommodate future amenities such as athletic fields, courts, playgrounds, and picnic areas. The Commission would also like to see better trail connections to the Clearwater Cove neighborhood. Council Meeting Minutes for February 2, 2026 Page 7 of 8 Juba provided details on the plan for landscaping, streets, and other infrastructure improvements. The proposed access locations and street locations meet the intent of the Comprehensive Plan. Future traffic signals are proposed at access points along CSAH 8/Frenchman Road at Fenway Boulevard and Everton Avenue. Developer contributions to the cost of the traffic signals will be considered with the development of the property. There is a roundabout shown on the plan that may need to be moved further south. Victor Path and Fenway Boulevard will need to be extended to connect to Frenchman Road, and easement acquisitions will be required. No full landscape plan was provided, but the site plan showed the cross-section between CSAH 8 and the lots. Juba stated that staff would like to see the lots set back a little more to provide more of a buffer. Sewer and water are available to the property, and the applicant is working with the Metropolitan Council to move the aging interceptor that bisects the property line. The plan showed some regional ponding and stormwater reuses. Juba updated the Council on comments from the EDA and Planning Commission. The EDA wanted to see more commercial land use but were comfortable with what was shown, noting the downtown area is expected to have higher-quality site design. The Planning Commission wanted a larger buffer from the lift station and to ensure that lots accommodate the needs of property owners. Juba concluded that the proposal would require amendments to the 2040 Land Use Plan. Development phasing and the traffic study will be important. The architectural design will be reviewed to ensure consistency with the Downtown Design Guidelines. Mario Cocchiarella, owner of Maplewood Development, Inc., spoke about his experience and the benefits of master planning, which will allow them to make more informed decisions. He acknowledged there were two large undertakings: working with the Metropolitan Council on the sewer interceptor line and working with FEMA on the approvals needed for the floodplain. He said he believed this development plan will work, though it may take some time to fill the commercial spaces. Krull questioned the Fenway Boulevard extension and whether the area will be able to accommodate vehicle traffic. Mario responded that the roundabout may need to be moved. He acknowledged there will be traffic in the area and that it is a lot of retail to fill, maybe with some medical uses. Krull commented that, though Hugo wants more commercial, they need to do what the market will bear. Miron noted there were details to be worked out, but overall, he said it was a well-thought-out plan. He appreciated the trail connections. He commented that it was a significant deviation from the existing land use, but the EDA had indicated they were comfortable with the adjustment. Miron appreciated that the plan incorporates water reuse. Strub commented that the land has a lot of potential and that the days of traditional commercial development are past. He said the single-family housing looks dense, but there would be a nice park. He liked the community center as an amenity. Petryk said she appreciated that it was a master plan and that she was happy about the park. Weidt said they have been looking for commercial uses there, but the world has changed dramatically, and waiting for large commercial development is likely unreasonable at this point. Council Meeting Minutes for February 2, 2026 Page 8 of 8 This plan provides the best scenario, and all the residential development may help spark the retail spaces. He stressed that traffic studies need to be completed. The plan will need to go through the EAW process, which can be done in parallel with the preliminary plat. Schedule HBA State of the City Breakfast on Tuesday, February 17, 2026 City Administrator Bryan Bear informed Council the Hugo Area Business Association will be holding the State of the City Breakfast on Tuesday, February 17, 2026, at the Blue Heron Grill from 7:30 – 9 a.m. Becky made motion, Strub seconded, to schedule a meeting to attend the HBA Breakfast on Tuesday, February 17, 2026. All Ayes. Motion carried. Cancel February 16, 2026, Council Meeting Due to Presidents Day Holiday The second regular meeting of the Council in February falls on the Presidents Day Holiday on February 16, 2026. City Administrator Bryan Bear recommended Council cancel the February 16 meeting. Strub made motion, Krull seconded, to cancel the February 16, 20206 Council meeting. All Ayes. Motion carried. Annual Spring Cleanup on Saturday, April 25, 2026. City Administrator Bryan Bear informed Council the annual Spring Cleanup is scheduled for Saturday, April 25, 2026, from 8 a.m. - noon at the Public Works Facility. Shredding Event on Thursday, April 30, 2026 City Administrator Bryan Bear informed Council a shredding event is scheduled for Thursday, April 30, 2026, from 8-10 a.m. in the City Hall parking lot. Adjournment Miron made motion, Krull seconded, to adjourn at 8:17 p.m. All Ayes. Motion carried. Respectfully Submitted, Michele Lindau, City Clerk