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HomeMy WebLinkAbout2026.03.02 CC MinutesMINUTES City Council Meeting City Hall Council Chambers Monday, March 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 (ZOOM), Weidt COUNCIL ABSENT: None OTHERS PRESENT: City Administrator Bryan Bear, City Engineer Mark Erichson, City Attorney Dave Snyder, City Clerk Michele Lindau Approve Minutes for the February 2, 2026, City Council Meeting Petryk made motion, Krull seconded, to approve the minutes for the City Council meeting held on February 2, 2026, as presented. All Ayes. Motion carried. Approve Minutes for the February 17, 2026 HBA Breakfast Miron made, Petryk seconded, to approve the minutes for the Hugo Area Business Association Breakfast held on February 17, 2026, as presented. All Ayes. Motion carried. Approval of Agenda Weidt made motion, Miron seconded, to approve the agenda as presented. All Ayes. Motion carried. Recognition of Parks Commissioner Ranell Tennyson At its July 14, 2014, meeting, Council approved the appointment of Ranell Tennyson to the Parks Commission. Council approved her resignation on December 15, 2025, when Ranell declined reappointment to the Commission after serving for over 11 years. Ranell was in attendance with her family. Mayor Weidt presented her with a certificate of appreciation for her volunteerism on the Parks Commission. Council members expressed their pleasure in having her on the Commission and indicated they would welcome her back anytime. Council Meeting Minutes for March 2, 2026 Page 2 of 7 Parks Commission Annual Report – Parks Planner Shayla Denaway Parks Planner Shayla Denaway provided to Council the Parks, Recreation and Open Space Commission Annual Report. Shayla began with information on the success of the City’s facility rentals and the software that allowed 55% of the rentals to be completed online. There was a total of 882 reservations; however total revenue was down $1,300 last year, likely due to the increase in use by nonprofits. Eight percent of the reservations were made by non-residents, 29% by residents, and 63% by nonprofits, who use the Rice Lake Center at no cost or the Oneka Room at a discounted rate of $20. There were 56 rentals that had alcohol at their events, which require a paid deposit and certificate of insurance and are not allowed by nonprofits. Rentals at the Peder Pedersen Pavilion are primarily on the weekends, and reservations fill up quickly. Other actions in 2025 included the painting and wallpapering of the Peder Pedersen Pavilion and the naming of Prairie Park, which the City has taken over maintenance of. Oneka Lake Park was a big project last year. Flagstaff Recreation provided concepts, and a pour-in-place surfacing was added. Yet to be done this spring are the painting of the shelter and some concrete work. Public Works tried something new in 2025 to combat the damage done to trails from the roots of willow trees growing near stormwater ponds or wetlands. A contractor provided an herbicide that browned the willows, followed by the Public Works Department mowing them. It is hoped this will create more longevity and safety on the trails. Other activities in 2025 include the bands MT Pockets and Loose Change, who performed at Lions Volunteer Park in the summer; Washington County Story Times; and the Santa Party and Tree Lighting. The missing connection on the Hardwood Creek Trail is progressing with funding received through Washington County. The Parks Commission had met at Clearwater Creek Preserve and was pleased with the woodchip base Public Works had put on the trail. As part of the Beaver Ponds Neighborhood Street project in 2025, trails were resurfaced and pedestrian ramps installed. Replacement of park signs began in 2025 and will continue this year. Also this year, a committee will continue work on the design guidelines for the Veterans Memorial for Lions Volunteer Park, which will be presented to Council in the near future. 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 Senior Engineering Technician Liz Finnegan 3. Approve Annual Performance Review for Building Department Secretary Debi Close 4. Approve Annual Performance Review for Public Works Worker Madison Siebenaler 5. Approve Donation to the Hugo Fire Department from the Hugo American Legion 6. Approve Lawful Gambling Exempt Permit for Ducks Unlimited at the Hugo American Legion on April 17, 2026 7. Approve Lawful Gambling Exempt Permit for Ducks Unlimited at Sal’s Angus Grill on April 19, 2026 8. Approve Water Surface Use Permit for Bald Eagle Water Club Council Meeting Minutes for March 2, 2026 Page 3 of 7 9. Approve Ordinances Amending the Right of Way Ordinance and Related Fees 10. Approve Request for Proposals for Frog Hollow Playground Replacement 11. Approve Replacement of Water Truck Tank 12. Approval of Sale of Surplus Public Works and Fire Department Equipment All Ayes. Motion carried. Approve Claims Roster Adoption of the Consent Agenda approved the Claims Roster as presented. Approve Annual Performance Review for Senior Engineering Technician Liz Finnegan Liz Finnegan was hired on March 11, 2019, as the City’s Senior Engineering Technician. Adoption of the Consent Agenda approved the annual performance review for Senior Engineering Technician Liz Finnegan. Approve Annual Performance Review for Building Department Secretary Debi Close Debi Close was hired as the City’s Building Department Receptionist on March 20, 2006. Adoption of the Consent Agenda approved the annual performance review for Building Department Secretary Debi Close. Approve Annual Performance Review for Public Works Worker Madison Siebenaler Madison Siebenaler was hired starting February 18, 2025. Adoption of the Consent Agenda approved the annual performance review for Public Works Worker Madison Siebenaler. Approve Donation to the Hugo Fire Department from the Hugo American Legion The Hugo American Legion has requested 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. Adoption of the Consent Agenda approved the donation of $1,000 to the Hugo Fire Department. Approve Lawful Gambling Exempt Permit for Ducks Unlimited at the Hugo American Legion on April 17, 2026 Ducks Unlimited Coon Rapids Chapter had applied for a Lawful Gambling Exempt Permit to hold bingo at its event on April 17, 2026, at the Hugo American Legion. The permit is issued by the Gambling Control Board after it is approved by the City. Adoption of the Consent Agenda approved the Lawful Gambling Exempt Permit for Ducks Unlimited American Legion Chapter. Approve Lawful Gambling Exempt Permit for Ducks Unlimited at Sal’s Angus Grill on April 19, 2026 Ducks Unlimited White Bear Lake Chapter had applied for a Lawful Gambling Exempt Permit to hold bingo at its event on April 19, 2026, at Sal’s Angus Grill. The permit is issued by the Council Meeting Minutes for March 2, 2026 Page 4 of 7 Gambling Control Board after it is approved by the City. Adoption of the Consent Agenda approved the Lawful Gambling Exempt Permit for Ducks Unlimited White Bear Lake Chapter. Approve Water Surface Use Permit for Bald Eagle Water Club Paul Chapin, President of the Bald Eagle Water Club, had applied for a Water Surface Use Permit on behalf of the club. The permit would allow for a slalom course to be installed at the north end of Bald Eagle Lake. They also have a course at the southwest end of the lake and would like to have one on the north end for times when winds prohibit the use of that course. The Washington County Sheriff’s Office issues the permit after it is approved by the City. Adoption of the Consent Agenda approved the Water Surface Use Permit for the Bald Eagle Water Club Approve Ordinances Amending the Right of Way Ordinance and Related Fees With the ongoing expansion of fiber optics within the City of Hugo and the amount of staff time required to manage the expansion projects, staff recommended approval of an amendment to the Right of Way Ordinance and the establishment of related fees. Amendments to the Right of Way Ordinance will provide more clarity and requirements to permittees to help facilitate successful projects that will benefit both residents and staff. Revenue generated from fees will cover staff time spent managing ROW permits and fiber optic project installations. Adoption of the Consent Agenda approved ORDINANCE 2026-547 AMENDING CHAPTER 82 – UTILITIES, ARTICLE IV RIGHT-OF-WAY and ORDINANCE 2026-548 AMENDING SECTION 30-2, FEE SCHEDULE TO INCLUDE FEES FOR RIGHT OF WAY (ROW) RELATED and the summary ordinances for publication. Approve Request for Proposals for Frog Hollow Playground Replacement At the meeting of February 18, 2026, the Parks Commission recommended replacement of the playground at Frog Hollow Park. Funding of $300,000 was included for the project in the Parks Capital Improvement Plan. The current playground was installed in 2005 and has significant surface wear and color fading. The existing playground curb and other park amenities are in good shape and are not planned to be replaced. Minor landscaping improvements are anticipated following the installation of new playground equipment. The Parks Commission intends to request proposals from multiple playground designers and hold a neighborhood meeting to select the preferred playground. Adoption of the Consent Agenda approved the replacement of the playground at Frog Hollow Park and the request for proposals. Approve Replacement of Water Truck Tank In 2015, the City purchased a used water truck from Mountain Hi Truck in Walla Walla Washington for gravel road maintenance. This winter staff discovered leaks in the water tank from corrosion. Staff researched repairing the existing tank and found the cost to be prohibitive compared to the longevity of an old tank. Quotes were received to budget for a new water truck (chassis and tank), both steel and stainless steel. Pricing came in at $350,000.00 to $375,000.00 and would require renting water trucks for the interim. A third option would be ordering a new exact replacement tank from the original manufacturer for the existing chassis. New tanks are now sandblasted and epoxied on the interior for longevity. Since the City’s Peterbilt chassis Council Meeting Minutes for March 2, 2026 Page 5 of 7 alone has little resale value but is still in good condition, staff believes this is the best option for cost and longevity for the City of Hugo. After discussion with the Finance Director, and given the substantial cost of the replacement, staff recommended funding the purchase through the Equipment CIP Fund to prevent depleting the Street Department General Fund budget. Adoption of the Consent Agenda approved the ordering and purchase of a new water tank from Mountain High Truck & Equipment LLC for $28,000.00 with an additional cost of $15,000.00 for shipping, sandblasting, painting the exterior, and installing new fenders for the chassis. Approval of Sale of Surplus Public Works and Fire Department Equipment Public Works and Fire Department staff requested the City Council approve the sale of several pieces of City equipment that are no longer of service to the departments. Some of this equipment had been replaced and new equipment was already in service, and other pieces no longer in use had been stored at Public Works and the Fire Hall. Public Works staff would like to utilize an online auction service to facilitate the sale of this equipment. Adoption of the Consent Agenda approved the sale of surplus equipment using an online auction format. Approve Resolution Adopting Water and Sanitary Sewer Pro Forma Financial Guide for 2026 and Establishing Service Rates Josh Wicklander, 14230 Geneva Way North, requested this item be removed from the Consent Agenda. Mayor Weidt granted the request. City Administrator Bryan Bear gave a brief update on this item. The Finance Department had completed its analysis of water and sewer billing data and prepared a pro forma financial guide and corresponding service rates for the 2026 fiscal year. Water and sewer rates were last adjusted in 2025. At that time, adjustments were made to both base rates and usage rates. The overall goal is to provide adequate revenue to cover water and sewer operations as contained in the pro forma financial guide. Bear explained it is an enterprise fund and expenses and revenues need to balance. Mr. Wicklander questioned if the rate increase was due to the White Bear Lake lawsuit. He wanted more information on what was driving the cost factor and what could be done to get other agencies to stop increasing costs. Bear replied that, so far, the White Bear Lake issues have not affected the water rate; it is impactful, but the City has been aggressive in addressing it. There are legal fees, but they do not apply to water rates. One outcome from the lawsuit could be a total watering ban. The City derives income from people using water, and irrigators do pay a substantial amount. Overall, the water and sewer total bill will result in about a 5% increase, which is directly related to operating the water utility and the Metropolitan Council’s increase in fees for treatment costs. Mr. Wicklander thanked the Council. Weidt added that the City has been a good steward by working on water reuse projects that saved the City nearly 100 million gallons of water last year. Council Meeting Minutes for March 2, 2026 Page 6 of 7 Miron made motion, Petryk seconded, to approve RESOLUTION 2026 – 2 ADOPTING A PRO FORMA FINANCIAL GUIDE FOR WATER AND SANITARY SEWER OPERATIONS FOR THE 2026 FISCAL YEAR AND ESTABLISHING SERVICE RATES All Ayes. Motion carried. Approve Plans and Specs and Authorize Bids for 2026 Bald Eagle Industrial Park Area Street Improvement City Council had previously authorized staff to prepare plans and specifications for the 2026 Bald Eagle Industrial Park Area Street Improvement Project. City Engineer Mark Erichson explained the project consists of full-depth pavement removal, paving, mill and overlay improvements, spot curb and gutter replacement, trail improvements, street lighting improvements, and minor utility improvements. Plans and Specifications have been prepared and are ready for advertising for bidding. He recommended Council approve the resolution approving plans and specifications and authorizing advertisement for bids for the 2026 Bald Eagle Industrial Park Area Street Improvement Project. Petryk made motion, Krull seconded, to approve RESOLUTION 2026-3 APPROVING PLANS AND SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS FOR THE 2026 BALD EAGLE INDUSTRIAL PARK AREA STREET IMPROVEMENT PROJECT. All Ayes. Motion carried. Declare Cost to be Assessed and Set Public Hearing for 2026 Bald Eagle Industrial Park Area Street Improvement On December 15, 2025, the City of Hugo authorized the preparation of plans and specifications and held a public hearing ordering the improvements for the 2026 Bald Eagle Industrial Park Area Street Improvement Project. As part of the public improvement process, in accordance with the requirements of State Statute Chapter 429 for assessments to benefiting properties, the Council needs to declare the costs to be assessed and conduct the assessment hearing. A resolution declaring the costs to be assessed and ordering the preparation of the proposed assessment roll was prepared for Council consideration. Staff recommends Council approve the resolution declaring costs to be assessed and the resolution setting the assessment hearing for the 2026 Bald Eagle Industrial Park Area Street Improvement Project for April 6, 2026. City Engineer Mark Erichson presented a map showing the project location that included 130th Street North, 140th Street North, Fenway Boulevard North, Fenway Boulevard Court North, and Farnham Avenue North. He explained the improvements will include street reconstruction, trail improvements, widening 130th Street North four feet to the north, mill and overlay improvements, and demolition of the building at Watertower Park. The total estimated project cost is $4,690,400. In accordance with the last Assessment Policy updated in 2013, residential lots will be assessed $4,100 per unit for partial reconstruction and $2,100 per unit for the urban roadway overlay. Commercial properties will be assessed $76.87 per foot for partial reconstruction and $39.87 per foot for urban roadway overlay. The total amount to Council Meeting Minutes for March 2, 2026 Page 7 of 7 assessed is $1,033,33. The City will pay $3,192,720, and the County will pay $464,350. Erichson presented a map showing the area to be assessed adding that assessment hearings are usually held later in the project schedule, but since the amounts are quite substantial, he wanted to hold the hearing in April. Assessments could still be paid in November. Krull made motion, Petryk seconded, to approve RESOLUTION 2026-4 DECLARING THE COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR THE 2026 BALD EAGLE INDUSTRIAL PARK AREA STREET IMPROVEMENT PROJECT. All Ayes. Motion carried. Petryk made motion, Miron seconded, to approve RESOLUTION 2026-5 FOR HEARING ON PROPOSED ASSESSMENT FOR THE 2026 BALD EAGLE INDUSTRIAL PARK AREA STREET IMPROVEMENT PROJECT All Ayes. Motion carried. Schedule Open House for 165th Street AUAR on Tuesday, March 24, 2026 City Administrator Bryan Bear informed council that an open house will be held on Tuesday, March 24, 2026, from 5:30-7:30 p.m. in the Oneka Room to gather input on the 165th Street AUAR. Weidt made motion, Petryk seconded, to schedule a meeting to attend the open house on March 24, 2026. All Ayes. Motion carried. Adjournment Miron made motion, Krull seconded, to adjourn at 7:44 p.m. Motion carried. Respectfully submitted, Michele Lindau City Clerk