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HomeMy WebLinkAbout2026.05.04 CC Packet A.CALL TO ORDER B.ROLL CALL C.PLEDGE OF ALLEGIANCE D.APPROVAL OF MINUTES 1.April 18, 2026, Kidz ‘n Biz Event 2.April 20, 2026, City Council Meeting 3.April 23, 2026, Joint Workshop on Zoning Codes E.APPROVAL OF AGENDA F.APPOINTMENTS/PRESENTATIONS 1.Nothing Scheduled 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 Parks Planner Shayla Denaway 3.Approve Annual Performance Review for Public Works Parks Lead Worker Rick Kieffer 4. Approve Hiring of Public Works Summer Seasonal Positions 5.Approve Donation to the Hugo Fire Department from the Hugo American Legion 6.Approve Resolution Approving Cannabis Microbusiness Registration for Mi Sota Essence Cannabis, LLC 7.Approve Water Surface Use Permit for Slalom Course on Sunset Lake Mayor: Tom Weidt Councilmembers: Becky Petryk, Ward 1 Ben Krull, Ward 2 Dave Strub, Ward 3 Mike Miron, At Large City Council Agenda Monday, May 4, 2026 Address: 14669 Fitzgerald Ave. N. Hugo, MN 55038 Phone: 651-762-6300 Website: www.ci.hugo.mn.us H.PUBLIC HEARING 1.Improvement Hearing for 2026 Bald Eagle Industrial Park Area Street Project 2.Assessment Hearing for 2026 Bald Eagle Industrial Park Area Street Project I.UNFINISHED BUSINESS 1.Approve Resolution Receiving Bids and Awarding the Contract for the 2026 Bald Eagle Industrial Park Area Street Project J.NEW BUSINESS 1.Nothing Scheduled K.VISITOR PRESENTATIONS 1.Nothing Scheduled L.COUNCIL PRESENTATIONS 1.Nothing Scheduled M.ADMINISTRATIVE PRESENTATIONS 1.Schedule Commissioner Interviews N.ADJOURNMENT BACKGROUND MEMO FOR THE CITY COUNCIL MEETING ON MAY 4, 2026 D.1 April 18, 2026, Kidz ‘n Biz Event D.2 April 20, 2026, City Council Meeting D.3 April 23, 2026, Joint Workshop on Zoning Codes Staff recommends Council approve the above minutes as presented. G. 1 Approve Claims Roster Staff recommends Council approve the Claims Roster as presented. G.2 Approve Annual Performance Review for Parks Planner Shayla Denaway Shayla Denaway was hired on May 11, 2009, as the Economic Development/Parks Intern. On May 3, 2010, Council approved promoting Shayla as the new Parks Planner. Community Development Director Rachel Juba recommends Council approve the annual performance review for Parks Planner Shayla Denaway. G.3 Approve Annual Performance Review for Public Works Parks Lead Worker Rick Kieffer Rick Kieffer was re-hired by the City of Hugo as a Public Works Worker on May 31, 2005, returning after a short period of time in the private sector. In April 2023 Rick was promoted to Public Works Parks Lead Worker. Rick works under the direction of Public Works Director Scott Anderson who recommends Council approve the annual performance review for Public Works Parks Lead Worker Rick Kieffer. G.4 Approve Hiring of Public Works Summer Seasonal Positions At the April 6, 2026, Council meeting, Council approved the hiring of 5 seasonal employees. Since that meeting, one of the seasonal employees received an offer for a summer internship in the field of their education goals and will not be joining us. Also, a regular full-time employee is expected to be out on medical leave for much of the summer. Staff is requesting Council approval to hire two seasonal employees for the Public Works Department. Staff recommends Council approve the rehiring of last year’ s seasonal employee, Adler Siebenaler and the hiring of new seasonal, Ben Clausen. G.5 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. 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.6 Approve Resolution Approving Cannabis Microbusiness Registration for Mi Sota Essence Cannabis, LLC. The applicant, Mi Sota Essence Cannabis, LLC, has requested approval of a cannabis microbusiness registration that would allow for cultivation, production of consumer products, and retail operations. The business is proposed to operate under the name Carma Cannabis. The microbusiness’ primary use would be cultivation of cannabis flower and production of consumer products with cannabis flower, with an accessory use of retail sales of products manufactured on site. The applicant has received preliminary license approval from the Minnesota Office of Cannabis Management (OCM) and is requesting this registration to hold one of the two available retail registrations within the city while they develop their final plans of record and apply for full state license approval. The registration shall not become effective until the applicant has received full state license approval. Staff recommends that the City Council approve the resolution approving the cannabis microbusiness registration for Mi Sota Essence Cannabis, LLC, subject to the conditions listed in the resolution. G.7 Approve Water Surface Use Permit for Slalom Course on Sunset Lake Dave Strub has made application to the City of Hugo for a Water Surface Use Permit to allow water skiing on the slalom course on Sunset Lake. Washington County Sheriff’s Department issues the permit after City Council approval. Staff recommends Council approve the application for a Water Surface Use Permit for a slalom water skiing course on Sunset Lake. H.1 Improvement Hearing for 2026 Bald Eagle Industrial Park Area Street Project On February 27, 2025, the City Council authorized the preparation of a feasibility study for the 2026 Bald Eagle Industrial Park Area Street Improvement Project. City Council accepted the completed study at the November 17, 2025, Council meeting. At the April 6, 2026, City Council meeting, Council called for a Public Hearing to be held on May 4, 2026. Staff will present the proposed improvements, the feasibility study findings and bid results in a PowerPoint presentation for the public hearing. Total Project Costs have been identified to be $4,678,426 with the amount to be funded by assessments being $1,021,356.84. Following the improvement hearing, staff recommend approval of the resolution ordering the 2026 Bald Eagle Industrial Park Area Street Improvement Project. H.2 Assessment Hearing for 2026 Bald Eagle Industrial Park Area Street Project At the April 6, 2026, regular Council meeting, the Council adopted a resolution declaring costs to be assessed for the 2026 Bald Eagle Industrial Park Area Street Improvement Project and scheduled the assessment hearing on the proposed assessments for May 4, 2026. The Notice of Assessment Hearing has been published in the newspaper and mailed to the owners of each parcel described in the assessment roll at least two weeks prior to the hearing. As part of the assessment hearing, staff will give a PowerPoint presentation identifying the improvements, costs and detail payment options. Staff recommends the Mayor open the assessment hearing to take all comments and Council approve the resolution adopting assessments for the 2026 Bald Eagle Industrial Park Area Street Improvement Project I.1 Approve Resolution Receiving Bids and Awarding the Contract for the 2026 Bald Eagle Industrial Park Area Street Project Four bids for the 2026 Bald Eagle Industrial Park Area Street Improvement Project were received on April 29, 2026. The bid range for the project was from $3,774,283.50 to $5,095,769.33 with the engineer’s estimate being $4,337,315.60. The bids included the base bid, alternate 1 (140th Street trail), Alternate 2 (Fenway Boulevard trail), Alternate 3 (additional driveway at Wilson Tool) and provisional items that are uniform for all bidders. Wilson Tool has requested we exclude the award of alternate 3 as they do not want to move forward with the driveway addition at this time. Staff therefore recommends City Council award a contract for the base bid, alternate 1, alternate 2, and provisional items in the amount of $3,572,331.00 to Bituminous Roadways, Inc. based on the results of the bids received. The engineer’s estimate for this portion of the project was $4,113,310.60. M.1 Schedule Commissioner Interviews Staff recommends Council discuss scheduling interviews for commission vacancies. N. Adjournment MINUTES City Council-Kidz N Biz Oneka Elementary School Saturday, April 18, 2026 9 a.m. COUNCIL PRESENT: Krull, Miron, Strub, Weidt COUNCIL ABSENT: Petryk Council attended the Kidz N Biz annual event at the Oneka Elementary School. The event ended at noon. Respectfully Submitted, Shayla Denaway Parks Planner MINUTES City Council Meeting City Hall Council Chambers Monday, April 20, 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, Strub, Weidt COUNCIL ABSENT: Petryk OTHERS PRESENT: City Administrator Bryan Bear, City Engineer Mark Erichson, City Attorney Dave Snyder, City Clerk Michele Lindau Approve Minutes for the April 2, 2026, Local Board of Appeal and Adjustments Miron made motion, Strub seconded, to approve the Local Board of Appeal and Adjustments held on April 2, 2026, as presented. All Aye. Motion carried. Approve Minutes for the April 6, 2026, City Council Meeting Krull made motion, Miron seconded, to approve the minutes for the City Council meeting held on April 6, 2026, as presented. All Ayes. Motion carried. Approve Minutes for the April 8, 2026, Hardwood Creek Open House Strub made motion, Miron seconded, to approve the minutes for the Hardwood Creek Open House held on April 8, 2026, as presented. All Ayes. Motion carried. Approve Minutes for the April 15, 2026, Metro Cities Annual Meeting Krull made motion, Miron seconded to approve the minutes for the Metro Cities Annual Meeting held on April 15, 2026, as presented. All Ayes. Motion carried. Approval of Agenda Weidt made motion, Miron seconded, to approve the agenda as amended to add approval of a fireworks permit and temporary liquor license for the Hugo Lions for Hugo Good Neighbor Days. All Ayes. Motion carried. Council Meeting Minutes for April 20, 2026 Page 2 of 6 Hopkins Schoolhouse Update – Hopkins Schoolhouse and Heritage Center President Liz Cinqueonce President of the Hopkins Schoolhouse and Heritage Center Liz Cinqueonce provided and annual report and update. Liz reviewed the six measures of success the council had previously approved and how they were being met. They have received the 501(c)-(3) status and transitioned to the new nonprofit. Forest Lake is no longer a party to the agreement though they remain actively involved. They have applied for sales tax exemption with the state and their registration with the MN Attorney General’s Office Charities division. They are also working on a business plan for when the Hopkins Schoolhouse opens. Liz talked about the restoration that was overseen by Brad LeTrourneau and Floyd Petty. They replaced the front door, repaired the side door, replaced rails on the front steps, demolished and framed the interior, and restored the furnace face. She stated they were only able to make as much progress as they have due to Washington County’s Sentence to Serve and the City’s Building Official Joel Hoistad’s guidance. Tree removal and ground leveling were done with the help of Asplund and the Hugo Public Works Department and a preliminary site plan was created. They will be working on a final site plan for Council approval. Work is continuing on landscaping in front of the building and enhancements to the exterior steps. Liz explained the mission of the nonprofit was to engage students with programs implemented in the school about the schoolhouse. Students had visited on Patriot Day, and a Girl Scout troop built a free library that was placed in front of the building. They have done outreach to other local history groups and are helping a Hugo family history group to raise money to lift stones in the cemetery. Committee member Katherine Fraatz had commissioned for a model of the schoolhouse to be built to raise community support, and there is a video of it on YouTube. Liz reported that sufficient funds have been raised for interior framing and they have begun raising funds for future phase that includes infrastructure improvements, which they feel will be most challenging. There are contractors who would like to help but have run into barriers because it is a commercial structure. They have begun reaching out to trade schools. Current fundraising includes pending grant applications, Forest Lake History book sales, a Heart of the Schoolhouse campaign, and a fundraising event scheduled for October 24, 2026. ADA compliance has been confirmed for entry of the Schoolhouse. Bids have been secured for well evaluation, electrical, plumbing, and HVAC. Liz explained they continue with assessments and design plans for those items and for improvements to the interior. Miron stated his appreciation for a thorough report saying you can see progress, but a lot is done behind the scenes. He asked where people could go to find more information. Liz responded that they have a website, Facebook page, and YouTube channel. She invited the Council and offered to host a walkthrough at the schoolhouse. Weidt said he understood the problems with contractors and asked Liz to keep the Council updated. Council Meeting Minutes for April 20, 2026 Page 3 of 6 Approval of Consent Agenda Miron made motion, Strub seconded, to approve the following Consent Agenda: 1. Approve Claims Roster 2. Approve Special Event Permit for Outdoor Music at 13327 Goodview Avenue North on Friday, July 24, 2026 3. Approve Special Event Permit for Outdoor Services and Picnic for New Life Church on Sunday, June 7, 2026 4. Approve Quote for the 2026 Dust Control Project 5. Approve Selection of Enterprise Resource Planning (ERP) Software 6. Fireworks Permit and Temporary Liquor License for Hugo Lions Club for Hugo Good Neighbor Days All Ayes. Motion carried. Approve Claims Roster Adoption of the Consent Agenda approved the Claims Roster as presented. Approve Special Event Permit for Outdoor Music at 13327 Goodview Avenue North on Friday, July 24, 2026 Jodi Hemann has applied for a Special Event Permit for an outdoor Christian musical event on Friday, July 24, 2026, from 6-9:30 p.m. The event will be held at her home on five acres at 13327 Goodview Avenue North. A Special Event Permit approved by Council is required because they will be using an amplified sound system. Adoption of Consent Agenda approved the Special Event Permit for 13327 Goodview Avenue North for a musical event. Approve Special Event Permit for Outdoor Services and Picnic for New Life Church on Sunday, June 7, 2026 David Streitz on behalf of New Life Church has applied for a Special Event Permit to hold an outdoor service and picnic on Sunday, June 7, 2026, from 9 a.m. to 4 p.m. A Special Event Permit approved by Council is required because they will be using an amplified sound system for the service and game announcements during the event. Adoption of the Consent Agenda approved the Special Event Permit for New Life Church for outdoor events on June 7, 2026. Approve Quote for the 2026 Dust Control Project The City of Hugo currently applies dust control to approximately 23 miles of gravel roads located within its municipal boundaries, and the City’s General Budget accounted for a dust control project in 2026. As in past years, staff would work with May Township to cost share for the application of dust control on the shared portion of Keystone Avenue. Two quotes for dust control were received and opened on April 10, 2026. The low quote was from Envirotech Services at $1.57 per gallon. With City Council approval, staff would coordinate with Envirotech Services to deliver and place a total of 109,000 gallons of calcium chloride in two separate applications, once in mid-June and again in mid-August. Adoption of the Consent Agenda approved the quote from Envirotech Services in the amount of $171,130 for calcium chloride for 2026 dust control. Council Meeting Minutes for April 20, 2026 Page 4 of 6 Approve Selection of Enterprise Resource Planning (ERP) Software At the September 19, 2025, Midyear Budget Review Workshop, staff informed the City Council that Tyler Technologies had notified the City that support for the current Fund Balance accounting software will reach its end of life effective December 31, 2026. This will end support for all core financial modules currently utilized by the Finance Department. Staff has conducted a comprehensive review of replacement software options and demonstrations were completed with three vendors: BS&A, GovSense, and Tyler Technologies’ ERP Pro product. All three vendors offer robust ERP solutions with functionality extending beyond Finance to support operations in the Building Department and Planning and Zoning. The Building Department has expressed interest in transitioning from its current Permit Works software, while Planning and Zoning is seeking improved application tracking capabilities. After evaluation staff recommends proceeding with the selection of BS&A Software as the City’s new ERP solution. The system is expected to significantly reduce manual processes and improve operational efficiency across departments. BS&A has demonstrated the ability to successfully migrate data from the City’s existing system into its platform, helping to ensure continuity of financial records and minimize disruption during implementation. Adoption of the Consent Agenda approved BS&A Software as the City’s new Enterprise Resource Planning (ERP) software. Fireworks Permit and Temporary Liquor License for Hugo Lions Club for Hugo Good Neighbor Days This was added to the Consent Agenda by staff. The Hugo Lions Club applied for a fireworks permit and temporary liquor license to hold fireworks on Saturday, June 6, 2026, and to serve alcohol during the event on June 5-7, 2026. Adoption of the Consent Agenda approved the fireworks permit and temporary liquor license for the Hugo Lions Club. Update on Design Guidelines for Veterans Memorial and Approve Agreement for WSB to Design Memorial At the meeting of July 7, 2025, the City Council authorized the Lions Volunteer Park Veterans Memorial Subcommittee. The committee has met five times and has prepared a mission statement, conducted a visual preference survey, and drafted Design Guidelines for the Memorial. At their meeting of March 18, 2026, the Parks Commission recommended approval of the Veterans Memorial Design Guidelines. A proposal has been received from WSB to prepare three schematic designs, work with the committee to prepare a preferred design and cost estimates, and to prepare 3D images for fundraising purposes. At their meeting of April 15, 2026, the Parks Commission recommended approval of WSB’s proposal for design services for the Veterans Memorial and use of the Special Park Fund in the amount of $21,000. Parks Planner Shayla Denaway reviewed the mission statement and design guideline process. The Committee conducted a visual preference survey and reviewed 50 images to formulate their vision of what the memorial could look like, then selected their preferred images. This led to the creation of the design guidelines that included multiple focal features such as a three-flag display, a battlefield cross sculpture, monuments honoring the six military branches, and a design that would include education and not be a one-sided presentation. Council Meeting Minutes for April 20, 2026 Page 5 of 6 The committee had agreed that the design should reflect a traditional style, incorporating seating areas, adequate lighting for evening use, and landscaping that includes shade trees, shrubs, and colorful plantings. The space should accommodate small gatherings and feature a unique design that complements the surrounding park through varied materials and thoughtful landscaping. Entrance points should be considered to create a welcoming and intentional experience. The area should be buffered from adjacent park space, streets, and parking lots, while also incorporating focal features visible from within the park. Shayla informed the Council that WSB Engineering provided a proposal that includes meetings with staff and the committee to gather feedback on three schematic plans, as well as a follow-up meeting to review the preferred design. The proposal also includes preparation of a site plan and 3D renderings for use in marketing and fundraising efforts. The total cost is $21,000, and the committee has requested that the City cover the cost of the design services. Miron asked about the timeline for proposals and final design. Shayla responded that she hoped to have an update ahead of the final rendering. She anticipated it could take 3-4 months. Strub commented that the guidelines seem well thought out and Miron agreed. Weidt asked about the square footage. Shayla replied that it had not been measured out, but the committee is realistic in its budget and has had discussions on the scale. She reminded Council that power had been stubbed to that area. Weidt noted that the Yellow Ribbon Network has been very active in the community and the memorial should be a good representation of the sacrifices of Hugo service members. He also commented on the beautiful design of the park and desire to have a well-designed memorial installed in a timely manner. Weidt made motion, Krull seconded, to approve the Veterans Memorial Design Guidelines. All Aye. Motion carried. Weidt made motion, Strub seconded, to approve the proposal for design services with WSB in the amount of $21,000. All Ayes. Motion carried. Reminder – Joint Workshop on Zoning Code Revisions on Thursday, April 23, 2026 City Administrator Bryan Bear reminded Council that a joint workshop was scheduled with the Planning Commission for Thursday, April 23, 2026, at 5:30 p.m. in the Oneka Room at City Hall to discuss revisions to the Zoning Code. Reminder – Annual Performance Review for City Administrator Bryan Bear on Monday, May 4, 2026 City Administrator Bryan Bear reminded Council they had scheduled his performance review for Monday, May 4, 2026, at 6 p.m., one hour prior to the City Council meeting at 7 p.m. Council Meeting Minutes for April 20, 2026 Page 6 of 6 Annual Spring Cleanup Council Member Strub added a reminder that the annual spring cleanup was scheduled for Saturday, April 25, 2026, from 8-noon at the Public Works Building. Adjournment Miron made motion, Krull seconded, to adjourn at 7:49 p.m. All Ayes. Motion carried. Respectfully Submitted, Michele Lindau, City Clerk MINUTES City Council & Planning Commission Joint Workshop City Hall Oneka Room Thursday, April 23, 2026 5:30 p.m Mayor Weidt called the meeting to order at 5:30 PM COUNCIL PRESENT: Weidt, Miron, Klein, Strub COUNCIL ABSENT: Petryk PLANNING COMMISSION PRESENT: Andress, Derr, Granger, Klein, Kleissler, Petty PLANNING COMMISSION ABSENT: Fahey STAFF PRESENT: Bryan Bear, City Administrator Rachel Juba, Community Development Director Max Gort, Associate Planner CONSULTANTS: Kendra Lindahl, Landform John Uphoff, Landform Zoning Code Review Discussion Consulting City Planner Kendra Lindahl presented an update on the zoning code review project which began in 2024. The project’s goals were to update zoning districts to aid the implementation of the 2040 Comprehensive Plan, better accommodate contemporary development trends, evaluate the creation of a mixed-use zoning district, and update the multifamily design guidelines. The City Council and Planning Commission discussed several items, including considerations with the new proposed zoning districts and some new uses that would be allowed within the zoning code. The City Council directed staff to proceed with drafting the new zoning code based on recommendations from the workshop and prepare the draft code for a public hearing. Respectfully Submitted, Max Gort Associate Planner City of Hugo Claims May 4, 2026 G. 1 Vendor Invoice Amount Description Department Abdo Financial Solutions LLC 522042 14,903.00$ Accounting Assistance Finance Dept Affordable Muffler Inc 86856 25.00$ Parts - Unit #340-07 Street Dept Amazon Capital Services 1NF3-7GMF-KGJ4 109.98$ Lights - North Monument Sign Street Dept Amazon Capital Services 1NF3-7GMF-KGJ4 61.54$ Monitor Mount & Power Strip Finance/Water & Sewer Amazon Capital Services 1NF3-7GMF-KGJ4 37.00$ Cisco Phone Replacement Bldg Inspections Amazon Capital Services 1NF3-7GMF-KGJ4 29.97$ Tissues Public Works Amazon Capital Services 1NF3-7GMF-KGJ4 4.99$ Door Stops (PW)Public Works Amazon Capital Services 1JLK-L3KG-94QG 61.60$ Fire Department Supplies Fire Dept Amazon Capital Services 1JLK-L3KG-94QG 54.19$ Breakroom Supplies Public Works Amazon Capital Services 1JLK-L3KG-94QG 46.40$ Buoys (Water Rescue Supplies) Fire Dept Anderson, Scott CLAIM 98.32$ Cleanup Day Supplies Recycling Aspen Mills 373262 12.85$ Patches & Embroidery Fire Dept Aspen Mills 373322 371.73$ EMT Pants & Belt Fire Dept Aspen Mills 373322 154.99$ Alpha Swat Boot Fire Dept Blaine Brothers Inc 80001826477 3,128.98$ Repairs - Unit #208-97 Street Dept Bound Tree Medical LLC 86147186 169.60$ Medical Supplies Fire Dept Bound Tree Medical LLC 86151890 178.80$ Medical Supplies Fire Dept Bound Tree Medical LLC 86154031 13.99$ Medical Supplies Fire Dept Bound Tree Medical LLC 70377148 (147.87)$ Medical Supplies (Returned)Fire Dept Brauner, Dalton CLAIM 198.89$ Parts - Unit #8103-06 (Polaris)Fire Dept Canteen Refreshment Services MSP161173 238.00$ Breakroom Supplies Gen Gov't Bldgs Canteen Refreshment Services MSP162045 570.59$ Breakroom Supplies Public Works Century Link 651 429-3212 79.83$ Fire Station Phone Lines Fire Dept Cintas Corporation 5327205207 216.28$ First Aid Supplies Public Works Cintas Corporation 5327205207 96.53$ First Aid Supplies Gen Gov't Bldgs Clarey's Safety Equipment Inc 221758 110.10$ Repairs & Calibration of Gas Monitor Fire Dept Clarey's Safety Equipment Inc 222031 110.10$ Repairs & Calibration of Gas Monitor Fire Dept Comcast 4/18/2026 274.14$ Business Internet (thru May 27)Fire Dept Comcast 4/22/2026 25.19$ Business Cable (thru May 21)Administration Davis Mechanical Systems Inc 102612 530.00$ CO Detector Repairs (PW)Public Works Denaway, Shayla CLAIM 111.80$ Playground Replacement Signs - Frog Hollow (Smart Sign) Parks Dept Earl F. Andersen 0142406-IN 132.90$ Street Sign Plates Street Dept Electric Fire & Security C8178 428.00$ Annual Fire Alarm Monitoring Fee (4/01/26-3/31/27)Fire Dept Fastenal Company MNTC3243691 3.09$ Hardware - Unit #109-15 Street Dept Fastenal Company MNTC3243789 46.70$ Hardware - Unit #208-97 Street Dept Forest Lake NAPA March 1,602.32$ Auto Parts & Shop Supplies Various Gene's Disposal Service Inc 540597 128.93$ April Waste Hauling - City Hall Gen Gov't Bldgs Gene's Disposal Service Inc 540597 273.97$ April Waste Hauling - Fire Station Fire Dept Gene's Disposal Service Inc 540597 1,195.71$ April Waste Hauling - PW Facility Public Works Gene's Disposal Service Inc 540597 269.07$ April Waste Hauling - Rice Lake Room Gen Gov't Bldgs Gene's Disposal Service Inc 540597 329.76$ April Waste Hauling - Lions Park Parks Dept Gene's Disposal Service Inc 540597 269.07$ April Waste Hauling - Hanifl Fields Parks Dept Gopher State One Call 6030489 116.10$ March Service Charges Water & Sewer Home Depot Credit Services 3511923 55.91$ Tools Water Utility Home Depot Credit Services 4082751 27.96$ Cord & Surge Protector Parks Dept Home Depot Credit Services 4082751 19.97$ Trash Bags Parks Dept Home Depot Credit Services 4082751 15.02$ Mailbox Repairs Street Dept Home Depot Credit Services 6610379 14.05$ Quick Links for Pickleball Nets (Arcand Park)Parks Dept Home Depot Credit Services 8513618 13.32$ Post Supports for Pickleball Nets (Arcand Park)Parks Dept Hugo Feed Mill 192396 6.79$ Painting Supplies - Well Houses Water Utility Hugo Feed Mill 192483 6.49$ Restroom Light (CH)Gen Gov't Bldgs Hugo's Tree Care 23523 2,795.00$ Tree Removal (12616 Ingersoll Ave N)Street Dept ICMA Membership Renewals 446204 1,200.00$ ICMA Membership Dues - Bear Administration InnoGraphics Design Group 3908 645.00$ Spring Newsletter Design Misc Unallocated Innovative Office Solutions LLC IN5093179 242.81$ Toner Cartridges Finance Dept Instrumental Research, Inc.7015 135.00$ Water Bacteria Testing Water Utility Justin Taylor Companies LLC 8603 705.51$ Black Dirt (Plow Damage)Street Dept Kath Fuel Oil Service Co.10308 6,824.31$ March Unleaded Gas & Diesel Purchases Various Knowlan's Super Markets Inc 756 55.54$ 165th Street Area Study/AUAR Meeting Supplies Street Reconstruction Knowlan's Super Markets Inc 2458 37.51$ Meeting Supplies Public Works L.T.G. Power Equipment 301337 339.62$ Filters for Mowers Parks Dept L.T.G. Power Equipment 301441 139.89$ Parts - Unit #344-20 Parks Dept Landform 37753 $ 2,723.00 165th Street Area Study/AUAR Street Reconstruction Landform 37784 $ 1,993.44 Residential Zoning Code Update Planning & Zoning Laughlin's Pest Control 77095 100.68$ April Pest Control Service Gen Gov't Bldgs Laughlin's Pest Control 77291 150.00$ Pest Control Service - 14715 Forest Blvd Rental Properties Leffler Printing Company Inc 22936 4,310.00$ Newsletter Printing Misc Unallocated Lincoln National Life Insurance Co.May 1,154.70$ Disability Premium Finance Dept LRS Portables of Minnesota MP295497 9.28$ Toilet Rental - Oakshore Park Parks Dept LRS Portables of Minnesota MP295498 9.28$ Toilet Rental - Oneka Park Parks Dept LRS Portables of Minnesota MP295499 9.28$ Toilet Rental - Beaver Ponds Park Parks Dept Page 1 City of Hugo Claims May 4, 2026 G. 1 Vendor Invoice Amount Description Department LRS Portables of Minnesota MP295500 9.28$ Toilet Rental - Diamond Point Park Parks Dept LRS Portables of Minnesota MP295501 9.28$ Toilet Rental - Frog Hollow Parks Dept LRS Portables of Minnesota MP295502 18.56$ Toilet Rental - Hanifl Park West Parks Dept LRS Portables of Minnesota MP295503 9.28$ Toilet Rental - Valjean Park Parks Dept LRS Portables of Minnesota MP295504 9.28$ Toilet Rental - Arbre Park Parks Dept LRS Portables of Minnesota MP295505 9.28$ Toilet Rental - Heritage Ponds Park Parks Dept LRS Portables of Minnesota MP295506 9.28$ Toilet Rental - McCollar Park Parks Dept LRS Portables of Minnesota MP295507 9.28$ Toilet Rental - Arcand Park Parks Dept LRS Portables of Minnesota MP295508 5.00$ Toilet Rental - Irish Ave Park Parks Dept LRS Portables of Minnesota MP295509 18.56$ Toilet Rental - Hanifl Park East Parks Dept Maas, Jeff CLAIM 230.00$ Work Boot Reimbursement Water & Sewer Marco INV15079852 77.54$ April Copier Maintenance Building Inspections Menards 76957 58.71$ Mailbox Repairs Street Dept Menards 76957 22.24$ Sideboard Lumber - Unit #119-22 Street Dept Metering & Technology Solutions INV10166 4,343.60$ Water Meters & Hardware Water Utility Metering & Technology Solutions INV10213 5,641.41$ Water Meters & Hardware Water Utility Metering & Technology Solutions INV10224 686.36$ Water Meters Water Utility Metering & Technology Solutions INV10228 121.40$ Water Meter Hardware Water Utility Metering & Technology Solutions INV10245 73.12$ Water Meter Hardware Water Utility Metro-INET 3389 13,019.00$ April Computer Service Various Metropolitan Council 1204712 500.00$ Industrial Discharge Permit (Vactor Truck) Sewer Utility Minnesota Cleaning Services Inc 0426HH03 788.67$ April Cleaning Services Gen Gov't Bldgs Minnesota Cleaning Services Inc 0426HH04 119.99$ April Cleaning Services - Hanifl Parks Dept Minnesota Cleaning Services Inc 0426HH05 780.00$ April Cleaning Services - PW Facility Public Works Minnesota Cleaning Services Inc 0426HH05 485.33$ April Cleaning Services Fire Dept Minnesota Cleaning Services Inc 0426HH05 260.00$ April Cleaning Services - Rice Lake Room Gen Gov't Bldgs MN Fire Service Certification Board 15371 131.00$ Fire Officer I Certification Exam - B. Bieniek Fire Dept Olson Power & Equipment Inc P30529 17.57$ Parts - Unit #343-20 Parks Dept O'Reilly Auto Parts 5914-382047 6.49$ Fuses - LED Speed Signs Street Dept O'Reilly Auto Parts 5914-382555 45.88$ Parts - Unit #6108-22 Fire Dept O'Reilly Auto Parts 5914-382809 7.77$ Parts - Unit #208-97 Street Dept Oxygen Service Company 3646143 160.25$ Welding Supplies Public Works Peterson Counseling Consulting HUGO 450.00$ Peer Support Training - Hoernemann Fire Dept Pioneer Press 12628181 510.00$ 26 Week Subscription Ordinances/Proceedings Press Publications 855597 102.12$ 165th Street Area Study/AUAR Public Notice of Availability Street Reconstruction Quadient Leasing USA Inc Q2326542 72.54$ Meter Rental - March Administration Quadient Leasing USA Inc Q2326542 72.54$ Meter Rental - April Administration Quadient Leasing USA Inc Q2326542 72.54$ Meter Rental - May Administration Ricoh USA, Inc 109968733 194.61$ May Copier Lease Payment Public Works Safe-Fast Inc INV323758 99.00$ 4-Gas Meter Calibration Sewer Utility Sensible Land Use Coalition 4036 58.00$ Meeting Registration - Juba Planning & Zoning Sensible Land Use Coalition 4036 58.00$ Meeting Registration - Denaway Parks Dept Sensible Land Use Coalition 4036 58.00$ Meeting Registration - Gort Planning & Zoning SimpleTexting LLC 86884/ACH 294.00$ SimpleTexting Messaging Plan Engineering Dept SimpleTexting LLC 86884/ACH 120.00$ SimpleTexting Messaging Subscription Engineering Dept SiteOne Landscape Supply LLC 164516984-001 2,218.84$ Grass Seed (Plow Damage) Street Dept Smith, Tom CLAIM 238.00$ Work Boot Reimbursement Street Dept Smith, Tom CLAIM 117.80$ Parts - Unit #420-25 (Turbo Technologies Inc) Street Dept TASC IN3708844 50.00$ May Cobra Administration Fee Finance Dept T-Mobile 870254054 473.37$ Cellular Phone Charges Various T-Mobile 870254054 23.01$ Tower No. 4/Well No. 6 Cradlepoint Water Utility T-Mobile 870254054 21.97$ Rice Lake Centre Cradlepoint Administration T-Mobile 870254054 40.25$ Hanifl Cradlepoint Parks Dept Tom's Radiator Repair 86759 395.00$ Repairs - Unit #324-09 Parks Dept Toshiba Financial Services 5038416238 148.74$ May Lease Payment Fire Dept Toshiba Financial Services 5038416238 27.53$ Overage Charges (Color) Fire Dept Toshiba Financial Services 5038416238 1.87$ Overage Charges (B & W) Fire Dept Trade Press Inc 44907 320.00$ Hydrant Flushing Signs Water Utility Trade Press Inc 44907 252.00$ Cleanup Day Receipt Books Recycling UniFirst Corporation 1410213800 102.13$ Uniforms, Supplies & Floor Mat Services (PW) Public Works UniFirst Corporation 1410215576 139.72$ Uniforms, Supplies & Floor Mat Services (PW) Public Works UniFirst Corporation 1410215761 37.75$ Restroom Supplies & Floor Mat Services (CH) Gen Gov't Bldgs UniFirst Corporation 1410217449 131.44$ Uniforms, Supplies & Floor Mat Services (PW) Public Works UniFirst Corporation 1410218966 135.84$ Uniforms, Supplies & Floor Mat Services (PW) Public Works UniFirst Corporation 1410220769 131.44$ Uniforms, Supplies & Floor Mat Services (PW) Public Works Washington Conservation District 7408 910.00$ East Metro Watershed Membership Stormwater Fund White Bear Locksmith 36233 135.00$ Door Lock Repairs (PPP) Parks Dept 83,426.97$ Total Claims for May 4, 2026 Page 2 Memorandum To: Bryan Bear, City Administrator From: Max Gort, Associate Planner Date: April 29, 2026 for the Planning Commission meeting of May 4, 2026 Re: Cannabis Microbusiness Registration for Mi Sota Essence Cannabis, LLC. – 13419 Fenway Boulevard North, Suite 103. 1. BACKGROUND: In 2025, the City Council adopted an ordinance relating to and regulating cannabis businesses within the City of Hugo. This ordinance was adopted in accordance with Minnesota Statutes Chapter 342, which established a regulatory framework for the sale and manufacturing of cannabis and hemp products, the licensing of cannabis and hemp businesses, and establish ed a State Agency known as the Office of Cannabis Management (OCM). The city’s ordinance established a procedure for cannabis businesses to register with the City of Hugo in conjunction with receiving their license from OCM, established which zoning districts would permit different types of cannabis businesses, and established performance standards for each type of cannabis business. State law requires cannabis businesses that conduct retail sales to consumers to register with the local government and allows local governments to limit the number of retail registrations to no fewer than one registration for every 12,500 residents. The City Council has chosen to limit the number of retail registrations available to two, which meets this state requirement. While state law only requires businesses that conduct retail sales to register with their local government, city ordinance requires that all cannabis businesses register with the city. Applicants for state-issued cannabis business licenses will have to receive preliminary license approval from OCM prior to applying for full license approval. OCM’s preliminary license review requires applicants to complete significant steps including a background check, but allows the applicant to have some confidence before developing the rest of the business , including securing a business location. State law allows applicants with preliminary license approval to apply for retail registration with their local government, which is limited in availability, before developing final plans for their prospective site. Applicants with preliminary license approval still need to develop final plans of record, receive approval of zoning compliance from the local government, and pass pre-licensure inspections from OCM before receiving their full license approval and beginning operations. State law requires applicants with preliminary license approval to complete the steps needed to receive full licensure within 18 months, with a one- time six-month extension available. G.X 2 OCM currently issues licenses for 14 different types of cannabis businesses. One of these license types is for a cannabis microbusiness, which allows for a business that is smaller in scale to conduct multiple activities when certain endorsements are applied to their license. For example, a microbusiness with the appropriate endorsements can operate a single retail location, cultivate up to 5,000 square feet of plant canopy indoors, and can produce consumer products. The city’s cannabis ordinance outlines criteria of approval for a cannabis business registration, which includes the submittal of the required registration fee(s), a copy of a valid state license application which can include proof of preliminary license approval, a written statement of approval from the property owner, and any additional measures as requested at the discretion of the city. 2. DESCRIPTION OF REQUEST AND STAFF ANALYSIS: The applicant, Mi Sota Essence Cannabis, LLC, has requested approval of a cannabis microbusiness registration that would allow for cultivation, production of consumer products, and retail operations. The business is proposed to operate under the name Carma Cannabis. The microbusiness’ primary use would be cultivation of cannabis flower and production of consumer products with cannabis flower, with an accessory use of retail sales of products manufactured on site. The applicant has received preliminary license approval from OCM and is requesting this registration to hold one of the two available retail registrations within the city while they develop their final plans of record and apply for full state license approval. The applicant has proposed to locate the cannabis microbusiness at 13419 Fenway Boulevard North, Suite 103. The property is located in the General Industrial (I-3) zoning district, which lists cannabis microbusinesses as a permitted use with retail sales of products produced on site as an accessory use. The suite is approximately 2,387 square feet in size. Retail sales of products produced on site would be conducted in an approximately 462 square foot public-facing area at the front of the suite, with the remainder of space being utilized for the cultivation of cannabis at varying stages, the production of consumer products, and storage. The floor plan meets ordinance requirements for a cannabis microbusiness, including those for the accessory retail area. The applicant has submitted preliminary plans including a written narrative describing the business and its activities, a floor plan with dimensions and descriptions of the activities in each room, and written descriptions of their plans for security, waste management, and odor control. The applicant has indicated that more formal versions of these plans will be submitted as they prepare construction plans and complete steps for full state license approval with OCM. The applicant’s odor control plan involves the installation of activated charcoal carbon filtration systems designed for cannabis cultivation, separation of HVAC zones to prevent cross - contamination and odor migration, and exhaust air being directed through sealed ductwork and discharged vertically to prevent odor accumulation at ground level outside the business. Staff is recommending the applicant take extra care with odor control measures to eliminate the detection of cannabis odor outside the microbusiness. 3 The applicant has 18 months from the date they received preliminary license approval to complete full state license approval, with an option of a one-time six-month extension available from OCM. Staff has drafted a resolution that approves the cannabis microbusiness registration if the applicant meets certain conditions, including approval of a full state license within the required time frame. The cannabis microbusiness registration will only become effective once the applicant receives full state license approval, will be effective for one calendar year following that date, and must be renewed once per year in conjunction with renewal of their state license. The applicant has submitted the materials required to approve a cannabis business registration, including a completed application form, the required registration fees, proof of state preliminary license approval, a copy of the lease agreement with the property owner, and additional materials requested by staff. 3.STAFF CONCLUSION AND RECOMMENDATION: Staff is of the opinion that the applicant has met all requirements to approve a cannabis microbusiness registration for an applicant with preliminary license approval. The applicant must obtain full state license approval for the registration to become ef fective. Staff recommends that the City Council approve the resolution approving the cannabis microbusiness registration for Mi Sota Essence Cannabis, LLC, subject to the conditions listed in the resolution. Attachments: 1.Resolution 2.Applicant’s Executive Summary RESOLUTION 2026-XX APPROVING A CANNABIS MICROBUSINESS REGISTRATION FOR MI SOTA ESSENCE CANNABIS, LLC Title: Approving a cannabis microbusiness registration that authorizes cultivation, manufacturing, and retail operations for Mi Sota Essence Cannabis, LLC, on property located at 13419 Fenway Boulevard North, Suite 103, subject to conditions listed herein. WHEREAS, Mi Sota Essence Cannabis, LLC (the applicant), has proposed to operate a cannabis microbusiness in a tenant suite on property legally described as; Unit 103, CIC 204 Units 101-107, Washington County, Minnesota. WHEREAS, in accordance with Chapter 342.22 of Minnesota Statutes, the City Council has chosen to limit the number of retail cannabis registrations issued to licensed cannabis businesses to one registration for every 12,500 residents; and WHEREAS, the applicant has received preliminary license approval from the Minnesota Office of Cannabis Management (OCM) with the number of MICRO-A24-000341, and has indicated intent to apply for a full state license with endorsements for cultivation, production of consumer products, and retail operations; and WHEREAS, Chapter 342.22 of Minnesota Statutes requires that a cannabis microbusiness with a retail operations endorsement must register with the city, town, or county in which the retail establishment is located, that an applicant for a retail registration must have a valid license or preliminary license approval issued by OCM, and that an applicant with preliminary license approval must receive full state license approval within 18 months of receiving preliminary license approval; and WHEREAS, the applicant has applied to register as a cannabis microbusiness within the City of Hugo that will be conducting cultivation, production of consumer products, and retail operations as an applicant with preliminary license approval by OCM. NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUGO, MINNESOTA, that it should and hereby does approve a cannabis microbusiness registration for Mi Sota Essence Cannabis, LLC, subject to the following findings and conditions of approval: 1. The property is located within the General Industrial (I-3) zoning district, which allows retail sales of cannabis products within a cannabis microbusiness as an accessory use to a principal use such as cultivation or production of consumer products. The applicant shall be conducting one or both of these principal uses prior to conducting retail sales as authorized by this registration. 2. The applicant shall receive full state license approval of a cannabis microbusiness with cultivation, production of consumer products, retail operations endorsements. 3. The cannabis microbusiness registration shall become effective on the date that the applicant receives final state license approval. The registration shall be effective for one calendar year and shall be renewed with the city each subsequent year thereafter at the time the applicant renews their state license. 4. If the applicant does not receive final state license approval within the required time frame of their preliminary license approval, or the preliminary license approval is rescinded by OCM, the registration shall be null and void. 5. This registration shall only apply to a business operating at the location of 13419 Fenway Boulevard North, Suite 103. If the applicant seeks to move to a new location still within the legal boundaries of the City of Hugo, the applicant must apply for a new cannabis registration and receive a new certification of zoning approval. If the applicant seeks to move to a new location outside the legal boundaries of the City of Hugo, this registration shall be null and void. 6. The applicant shall receive a local certification of zoning compliance in accordance with Minn. Stat. 342.13 and 342.14, which shall include the submittal of the following for staff review and approval: a. An interior floor plan with dimensions of each room, and a description of the activity taking place in each room, that is consistent with the final plan of record submitted to OCM. b. 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. c. Plans for signage. d. An exterior site plan for parking that includes ten (10) parking spaces for both customers and employees. 7. The applicant shall demonstrate that the following plans meet all state requirements: a. Security plan b. Waste management plan c. Odor control plan 8. The city shall conduct compliance checks at least once per calendar year in accordance with Minn. Stat. 342.22. These compliance checks will ensure that the business is meeting age-verification requirements, as well as any applicable city ordinance standards. 9. Odor of cannabis shall be strictly confined to the interior of the cannabis microbusiness, and no odor of cannabis shall be apparent outside of the cannabis microbusiness. An odor of cannabis that is not intermittent and easily apparent to be emanating from the cannabis microbusiness may be considered a noxious fume nuisance under Chapter 46 of City Code. 10. In addition to those listed, the applicant is responsible for obtaining all necessary state and local permits. ADOPTED by the City Council this 4th day of May, 2026. _______________________________ Tom Weidt, Mayor ATTEST: __________________________________ Michele Lindau, City Clerk EXECUTIVE SUMMARY Proposed Cannabis Microbusiness in Hugo, Minnesota Business Overview Mi Sota Essence Cannabis is the holder of a preliminary cannabis microbusiness license issued pursuant to Minn. Stat. ch. 342 and is advancing toward final licensure utilizing 13419 Fenway Blvd N, Hugo, Minnesota as its permanent site location. Mi Sota Essence Cannabis will operate as a cannabis microbusiness with vertically integrated post-harvest processing and a single on-site retail location. Retail operations will be conducted under the trade name Carma, a registered DBA of Mi Sota Essence Cannabis. Mi Sota Essence Cannabis will remain the sole licensed entity responsible for all regulated activities and compliance obligations at the site. Facility & Location The business will operate from 13419 Fenway Blvd N, Hugo, Minnesota, within an industrial building suitable for indoor cannabis cultivation, processing, and retail in accordance with City of Hugo Code Sec. 90-280. The facility layout includes: ● Approximately 1,400 square feet of indoor cultivation and post-harvest space within the warehouse ● A 16’ × 26’ vertical flower room, supported by vegetative/mother, drying and curing, processing/packaging, secure storage/QA, and biosecurity areas ● Approximately 990 square feet of retail space, including a secured vault and back-of-house storage ● Shared breakroom and restrooms. All uses are physically separated by function and designed to comply with zoning, building code, fire code, security, odor control, lighting, and signage requirements. Cultivation Operations Indoor cannabis cultivation will be one of the operational uses of the facility. All cultivation activity will occur within enclosed, code-compliant rooms consistent with City of Hugo Code Sec. 90-280(d) and (f), with total plant canopy maintained well below the 5,000 square foot limit applicable to cannabis microbusinesses. Cultivation operations will emphasize standardized genetics, repeatable production cycles, and craft quality-focused harvest, drying, and curing practices. Cultivated cannabis will be allocated to on-site processing, retail sales, and compliant wholesale distribution as permitted by state law. Processing & Manufacturing Post-harvest processing and manufacturing activities will be conducted on-site in enclosed rooms consistent with City of Hugo Code Sec. 90-280(g). Initial processing activities will include flower preparation, packaging, and pre-roll production to support both internal retail sales and lawful distribution channels. Retail Operations The business will operate an on-site retail location pursuant to a retail operations endorsement, consistent with City of Hugo Code Sec. 90-280(d)(1)(c). Retail operations will: ● Be limited in size and scope consistent with microbusiness intent ● Operate under the trade name Carma ● Offer cannabis products cultivated and processed on-site, as well as products lawfully sourced from other state-licensed cannabis cultivators and manufacturers ● Operate within permitted hours and signage restrictions ● Count toward the City of Hugo’s retail registration cap, as required Compliance & Implementation All cannabis cultivation, processing, and retail activity will commence following issuance of the final state license, city registration, and all required permits. Mi Sota Essence Cannabis will maintain full compliance with City of Hugo Code Sec. 90-280, including security, waste management, odor control, lighting, signage, and annual compliance inspection requirements. Interior floor plans and operational documentation are maintained in a regulator-ready format. Three-Year Objective Following final licensure, Mi Sota Essence Cannabis will operate a stable, compliant, and economically sustainable cannabis microbusiness with consistent indoor cultivation output, disciplined vertical integration, a compliant on-site retail presence operating as Carma, and flexibility to expand processing, wholesale distribution, or additional locations as permitted by law. Security Plan Summary Cannabis Retail, Cultivation, and Manufacturing Facility 13419 Fenway Blvd N, Suite 103, Hugo, Minnesota Total Area: 2,904 square ft. Purpose and Intent The purpose of this security plan is to demonstrate that the proposed cannabis facility is designed and operated in a manner that protects public health, safety, and welfare, minimizes impacts on surrounding properties, and ensures full compliance with applicable state and local regulations. The security measures described herein are intended to prevent unauthorized access, deter criminal activity, and provide effective coordination with law enforcement and emergency services. This plan is consistent with the City of Hugo’s zoning objectives related to operational safety, site security, and compatibility with surrounding land uses. Surveillance and Monitoring ● A continuous, professionally installed digital video surveillance system will operate 24 hours per day. ● Surveillance coverage will include all public and non-public interior areas, points of sale, cultivation and manufacturing areas, storage areas, loading areas, entrances, exits, and immediately adjacent exterior areas. ● Recorded footage will be retained in accordance with state requirements and made available to law enforcement upon lawful request. ● Cameras will be capable of clear identification under all lighting conditions. Minnesota Statute Reference: ● Minn. Stat. § 342.28, subd. 1, Security requirements for cannabis businesses Access Control ● Access to non-public and limited-access areas will be restricted through electronic access control systems. ● Access permissions will be role-based and limited to authorized employees only. ● All access activity will be electronically logged and retained. ● Access credentials will be deactivated immediately upon employee separation or change in duties. Minnesota Statute Reference: ● Minn. Stat. § 342.28, subd. 1(b), Restricted access and employee controls Alarm and Intrusion Detection ● A professionally monitored alarm system will be installed and operational during all non-business hours. ● The system will include door contacts, motion detection, and other appropriate sensors. ● Alarm activation will trigger notification to a licensed monitoring service and law enforcement as required. Minnesota Statute Reference: ● Minn. Stat. § 342.28, subd. 1(c), Alarm and intrusion detection systems Physical and Perimeter Security ● All exterior doors will be commercial-grade and securely locked. ● Loading and receiving areas will remain secure when not actively in use. ● Cannabis products, cash, and regulated materials will be stored in locked, limited-access areas. ● Exterior areas associated with the suite will be monitored and secured in a manner consistent with surrounding commercial and industrial properties. Minnesota Statute Reference: ● Minn. Stat. § 342.28, subd. 1(a), Physical security measures Lighting ● Exterior lighting will be provided to ensure adequate illumination of entrances, exits, loading areas, and adjacent parking areas. ● Lighting will be designed to enhance visibility and security without creating glare or adverse impacts on neighboring properties. Minnesota Statute Reference: ● Minn. Stat. § 342.28, subd. 1(d), Lighting and visibility requirements Emergency Preparedness and Coordination ● Fire extinguishers, first-aid equipment, and emergency exits will be provided in compliance with fire and building codes. ● Emergency response procedures will be documented, and staff will be trained accordingly. ● The facility will cooperate fully with local law enforcement, fire, and emergency medical services. Minnesota Statute Reference: ● Minn. Stat. § 342.28, subd. 2, Emergency response and safety planning Operations, Maintenance, and Compliance ● All security systems will be routinely inspected, tested, and maintained in good working order. ● Employees will receive regular training on security procedures and compliance obligations. ● The facility will operate in ongoing compliance with all applicable state and local requirements. Minnesota Statute Reference: ● Minn. Stat. § 342.31, Recordkeeping and compliance obligations ● Minn. Stat. § 342.37, Licensee responsibilities Consistency with City of Hugo Standards The proposed security measures: ● Promote safe and orderly development consistent with City of Hugo zoning objectives ● Mitigate potential impacts on neighboring properties ● Support effective enforcement and emergency response ● Ensure compatibility with surrounding commercial and industrial uses Conclusion The applicant respectfully submits that this security plan meets or exceeds the City of Hugo’s expectations for operational safety and is fully consistent with Minnesota law. Approval of the proposed use, subject to ongoing compliance with these measures, will not be detrimental to public health, safety, or welfare. Odor Elimination and Cannabis Odor & Waste Management Plan Facility Type: Retail, Cultivation, and Manufacturing Location: 13419 Fenway Blvd N, Suite 103, Hugo, Minnesota Zoning: I-3 General Industrial District Facility Operations and Zoning Compliance The facility operates within the City of Hugo’s I-3 General Industrial District, which permits industrial uses provided they do not create detectable off-site nuisances, including odor. ● All cultivation, manufacturing, and processing activities occur entirely indoors within an enclosed warehouse space. ● Retail operations are separated from cultivation and manufacturing areas. ● No outdoor cultivation, processing, drying, or storage of cannabis occurs on site. ● HVAC systems are fully enclosed and designed to prevent odor migration outside the building. ● Exterior doors, loading areas, and transfer points are managed under controlled procedures to minimize air exchange during odor-producing activities. Odor Control Plan A. Carbon Filtration and Odor Elimination Equipment Odor elimination is achieved through the use of activated charcoal carbon filtration systems specifically designed for cannabis cultivation and processing environments. ● Flowering Room: ○ Three (3) carbon filters installed, as flowering produces the strongest odor profile. ● Drying Room: ○ One (1) dedicated carbon filter to control odor during post-harvest drying. ● Vegetative Room: ○ One (1) carbon filter to manage plant odor during growth. ● Facility-Wide Filtration: ○ One (1) large carbon filtration unit serving the overall facility air exhaust. Each carbon filter is paired with an appropriately sized exhaust fan and ducting system engineered to meet or exceed room-specific air exchange requirements. Filters are installed in locations that are easily accessible and interchangeable, allowing for routine inspection and periodic replacement to ensure ongoing effectiveness. B. Mechanical Controls ● Carbon-filtered exhaust systems are sized beyond minimum HVAC exchange requirements to provide redundancy. ● Exhaust air is routed through sealed ductwork and discharged vertically and away from adjacent properties to prevent odor accumulation at ground level. C. HVAC Zoning and Filtration ● Cultivation, drying, and manufacturing areas operate under separate HVAC zones, preventing cross-contamination or odor migration into retail or office areas. D. Operational Odor Control Protocols ● Facility doors remain closed during active cultivation, harvesting, drying, and processing operations except when personnel or materials are being transferred. ● Odor mitigation standard operating procedures (SOPs) are incorporated into employee training for all cultivation and manufacturing staff. ● Any detected odor issues are addressed immediately through equipment adjustment, filter replacement, or operational changes. Waste Management Plan A. Waste Streams by Operation Cultivation and Manufacturing Waste includes: ● Plant material (flowers, leaves, stems, root balls) ● Unusable biomass and processing byproducts All waste is classified and managed in accordance with Minnesota Administrative Rule 9810.1200, Subparts 2–5. B. Cannabis Waste Processing ● Nonhazardous cannabis waste is rendered unusable and unrecognizable prior to leaving the facility by mixing with non-cannabis material such as plant waste, paper, or soil, consistent with Minnesota OCM definitions. ● Hazardous waste (e.g., solvents or chemicals) is rendered non-retrievable and managed in compliance with applicable hazardous waste regulations. ● Waste materials not classified as cannabis waste (such as soil or stalks without visible trichomes) are disposed of under standard waste protocols. C. Storage and Containment ● All cannabis waste is stored in sealed, labeled, odor-tight containers within secured interior areas of the facility. ● Containers are routinely inspected and replaced as needed to prevent leaks or odor release. ● Waste storage areas are monitored under continuous video surveillance in accordance with the facility security plan. D. Removal and Disposal Procedures ● Waste transfers occur during scheduled, low-traffic periods to minimize disruption and odor exposure. ● Exterior doors are opened only for the duration necessary to complete waste transfers and remain subject to odor control protocols. ● Licensed waste haulers remove waste in full compliance with state and local regulations. E. Recordkeeping ● All cannabis waste handling, rendering methods, transport, and disposal activities are recorded in the statewide monitoring system as required under Minnesota Administrative Rule 9810.1200, Subpart 7. ● Records are retained and made available for inspection by City of Hugo officials or state regulators upon request. Monitoring, Maintenance, and Compliance ● Odor control and waste management systems are inspected and maintained according to manufacturer specifications. ● Carbon filters and exhaust components are replaced on a routine schedule or immediately if performance degrades. ● Any off-site odor complaint or compliance issue triggers immediate corrective action and, if required, notification to appropriate local authorities. ● Odor logs, maintenance records, waste tracking documentation, and security logs are maintained on site. Performance Statement The licensee commits to operating this cannabis retail, cultivation, and manufacturing facility in a manner that: ● Prevents detectable cannabis odor beyond the building exterior ● Manages cannabis waste in full compliance with Minnesota statutes and Office of Cannabis Management rules ● Integrates security and operational controls to prevent diversion and protect public health and safety All operations are conducted in alignment with the I-3 General Industrial District performance standards and the expectations of the City of Hugo. 17 8 E 9 T H S T R E E T | SU I T E 2 0 0 | SA I N T P A U L , M N | 55 1 0 1 | 65 1 . 2 8 6 . 8 4 5 0 | WS B E N G . C O M Memorandum To: Honorable Mayor and City Council Bryan Bear, City Administrator From: Mark Erichson, City Engineer Date: April 30, 2026 Re: 2026 Bald Eagle Industrial Park Area Street Improvement Project WSB Project No. 028436-000 On February 27, 2025, the City Council authorized the preparation of a feasibility study for the 2026 Bald Eagle Industrial Park Area Street Improvement Project. City Council accepted the completed study at the November 17, 2025. At the April 6, 2026 City Council meeting, Council called for a Public Hearing to be held on May 4, 2026. The 2026 Bald Eagle Industrial Park Area Street Improvement 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 on the following streets:  130th Street N from Europa Trail to Forest Blvd N / Trunk Highway 61 (TH 61)  Farnham Avenue N from the south terminus to 130th Street N  Fenway Blvd N from 130th Street N to 140th Street N  140th Street from Fenway Blvd N to Forest Blvd / TH 61  Fenway Blvd Court N from Fenway Blvd to its eastern terminus The project costs are summarized as follows: Total Project Costs – $4,678,426 Amount to be funded by assessments - $1,021,356.84 Staff will present the proposed improvements, the feasibility study findings and bid results in a PowerPoint presentation for the public hearing. Staff recommend approval of the resolution ordering the 2026 Bald Eagle Industrial Park Area Street Improvement Project. RESOLUTION NO. A RESOLUTION ORDERING THE PROJECT FOR 2026 BALD EAGLE INDUSTRIAL PARK AREA STREET IMPROVEMENT PROJECT WHEREAS, pursuant to a resolution of the Council adopted February 27, 2025, a report was prepared by WSB, with reference to the improvement of the following roadways:  130th Street N from Europa Trail to Forest Blvd N / Trunk Highway 61 (TH 61)  Farnham Avenue N from the south terminus to 130th Street N  Fenway Blvd N from 130th Street N to 140th Street N  140th Street from Fenway Blvd N to Forest Blvd / TH 61  Fenway Blvd Court N from Fenway Blvd to its eastern terminus WHEREAS, the following improvements are proposed: • Full-depth pavement removal, paving, mill and overlay improvements, spot curb and gutter replacement, trail improvements, street lighting improvements, and minor utility improvements WHEREAS, the City intends to assess benefited properties for a portion of the aforementioned improvements, pursuant to Minnesota Statutes, Chapter 429, and WHEREAS, the City Council has received and accepted the feasibility report prepared by the City Engineer on November 17, 2025, for the 2026 Bald Eagle Industrial Park Area Street Improvement Project; and WHEREAS, a resolution of the City Council adopted on April 6, 2026, fixed a date for the Council public hearing on the proposed improvements; and WHEREAS, ten days' mailed notice and two weeks' published notice in advance of said public hearing was given and the hearing was held thereon on the May 4, 2026, at which time all persons desiring to be heard were given an opportunity to be heard thereon. NOW THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF HUGO: 1. Such improvement is necessary, cost-effective, and feasible as detailed in the feasibility report for the 2026 Bald Eagle Industrial Park Area Street Improvement Project 2. Such improvement is hereby ordered as proposed in this Council resolution adopted May 4, 2026. 3. The improvements described in the notice of public hearing and the feasibility report are hereby designated and shall be known as the 2026 Bald Eagle Industrial Park Area Street Improvement Project. 4. The City Council shall let the contract for all or part of the work for said improvements or order all or part of the work done by day labor or otherwise as authorized by Minnesota Statutes, Section 429.041, Subdivision 2, within one year of the date of this Resolution ordering said improvements. This resolution was adopted by the City Council of the City of Hugo on the 4th day of May 2026, by a vote of Ayes and Nays. ________________________ Tom Weidt, Mayor ATTEST: Michele Lindau, City Clerk (seal) April 30, 2026 Honorable Mayor and City Council City of Hugo 14669 Fitzgerald Avenue North Hugo, MN 55038 Re: 2026 Bald Eagle Industrial Park Area Street Improvement Project Adopting Assessments WSB Project No. 026749-000 Dear Mayor and Council, At the April 6, 2026 regular Council meeting, the Council adopted a resolution declaring costs to be assessed for the 2026 Bale Eagle Industrial Park Area Street Improvement Project and scheduled the assessment hearing on the proposed assessments for May 4, 2026. The Notice of Assessment Hearing has been published in the newspaper and mailed to the owners of each parcel described in the assessment roll at least two weeks prior to the hearing. As part of the assessment hearing, staff will give a PowerPoint presentation identifying the improvements, costs and detail payment options. Staff recommends the Mayor open the public hearing to take all comments and Council approve the resolution adopting assessments for the 2026 Bald Eagle Industrial Park Area Street Improvement Project. Staff has prepared a resolution adopting the assessments for the 2026 Bald Eagle Industrial Park Area Street Improvement Project for your consideration in accordance with the requirement of state statutes Chapter 429 for assessments to benefitting properties. A copy of the assessment roll is attached for your reference. If you have any questions or items you wish to discuss, you can contact me at 612-360-1278. Sincerely, WSB & Associates, Inc. Mark Erichson, PE City Engineer Attachment cc: Bryan Bear, City Administrator, City of Hugo Scott Anderson, Public Works Director, City of Hugo Liz Finnegan, Senior Engineering Technician, City of Hugo RESOLUTION NO. 2026 – RESOLUTION ADOPTING ASSESSMENTS FOR THE 2026 BALD EAGLE INDUSTRIAL PARK AREA STREET IMPROVEMENT PROJECT CITY OF HUGO, WASHINGTON COUNTY, MN WHEREAS, pursuant to proper notice duly given as required by law, the council has met and heard and passed upon all objections to the proposed assessment against abutting property generally located along the following roadways:  130th Street N from Europa Trail to Forest Blvd N / Trunk Highway 61 (TH 61)  Farnham Avenue N from the south terminus to 130th Street N  Fenway Blvd N from 130th Street N to 140th Street N  140th Street from Fenway Blvd N to Forest Blvd / TH 61  Fenway Blvd Court N from Fenway Blvd to its eastern terminus The improvements include partial roadway reconstruction, mill and overlay, spot curb and gutter replacement, minor drainage improvements, and trail construction. NOW, THEREFORE, IT BE RESOLVED, by the City Council of the City of Hugo, Minnesota, as follows: 1. Such assessment, a copy of which is attached hereto and made a part hereof, is hereby accepted and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. 2. Such assessment shall be payable in annual installments extending over a period of 10 years, the first of the installments to be payable on or before the first Monday in January 2027, and shall bear interest at the rate of 4.55% per annum from the date of the adoption of this assessment resolution. To the first installment shall be added interest on the entire assessment from November 15, 2026 until December 31, 2026. To each subsequent installment when due shall be added interest for one year on all unpaid installments. 3. The owner of any property so assessed may, at any time prior to certification of the assessment to the county auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the city finance director, except that no interest shall be charged if the entire assessment is paid by November 15, 2026; and may, at any time thereafter, pay to the city finance director the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the next succeeding year. 4. The city clerk shall forthwith transmit a certified duplicate of this assessment to the county auditor to be extended on the property tax lists of the county. Such assessments shall be collected and paid over in the same manner as other municipal taxes. Page 2 of 2 Upon roll call, the following members voting AYE: Upon roll call, the following members voting NAY: Whereupon said resolution was declared passed and adopted this 4th day of May, 2026. ________________________ Tom Weidt, Mayor ATTEST: ___________________________________ Michele Lindau, City Clerk 17 8 E A S T 9 T H S T R E E T | S U I T E 2 0 0 | S T . P A U L , M N | 5 5 1 0 1 | 6 5 1 . 2 8 6 . 8 4 5 0 | W S B E N G . C O M April 30, 2026 Honorable Mayor and City Council City of Hugo 14669 Fitzgerald Avenue N Hugo, MN 55038 Re: 2026 Bald Eagle Industrial Park Area Street Improvement Project SAP No. 224-101-003, 224-108-003 & 224-110-003 City of Hugo WSB Project No. 028436-000 Dear Mayor and Council Members: Bids were received for the above-referenced project on Wednesday, April 29, 2026, and were opened and read aloud. Four bids were received. The bids were checked for mathematical accuracy. Please find enclosed the bid summary indicating the low bid for Base, Alternate 1: 140th Street N Trail Improvements, Alternate 2: Fenway Avenue N Trail Improvements, Alternate 3: 12912 Farnham Avenue N Driveway Improvements (Wilson Tool), and Provisional Items as submitted by Bituminous Roadways, Inc., Mendota Heights, Minnesota in the amount of $3,774,283.50. Contractor’s bids ranged from $3,774,283.50 to $5,095,769.33. The Engineer’s Estimate was $4,337,315.60. We recommend that the City Council consider these bids and award a contract for only the Base, Alternate 1: 140th Street N Trail Improvements, Alternate 2: Fenway Avenue N Trail Improvements and Provisional Items bids in the amount of $3,572,331.00 to Bituminous Roadways, Inc. based on the results of the bids received. The Engineer’s Estimate, excluding Alternate 3 (owner request), was $4,113,310.60. Sincerely, WSB Nick Guilliams, PE Sr. Project Manager Attachments ams RESOLUTION NO. A RESOLUTION RECEIVING BIDS AND AWARDING A CONTRACT FOR THE 2026 BALD EAGLE INDUSTRIAL PARK AREA STREET IMPROVEMENT PROJECT WHEREAS, the City Council of Hugo previously directed the City Engineer to advertise for bids for the above-referenced project, and WHEREAS, bids were publicly received and opened on Wednesday, April 29, 2026. NOW, THEREFORE, IT BE RESOLVED, by the City Council of the City of Hugo, Minnesota, as follows: 1. All bids for the construction of the 2026 Bald Eagle Industrial Park Area Street Improvement Project have been received and are tabulated on the attached summary. 2. The bid of Bituminous Roadways, Inc., in the amount of $3,572,331.00 for the base bid plus alternates one and two and provisional items for the construction of said improvements, is in accordance with the plans and specifications and advertisement for bids and is the lowest responsible bid. 3. The Mayor and Administrator/Clerk are hereby authorized and directed to enter into a contract with said bidder for the construction of said improvements for and on behalf of the City of Hugo. 4. The City Administrator/Clerk is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposit of the successful bidder and the next two lowest bidders shall be retained until a contract has been executed. Council members voting AYE: Council members voting NAY: Whereupon said resolution was declared passed and adopted this 4th day of May 2026. ________________________ Tom Weidt, Mayor ATTEST: ___________________________________ Michele Lindau, City Clerk 1 4/30/2026 9:59 AM Su Mo Tu We Th Fr Sa 12345678910 11 12 13 14 15 1617 18 19 20 21 22 2324 25 26 27 28 29 3031 May 2026 Su Mo Tu We Th Fr Sa 1234567 8 9 10 11 12 1314 15 16 17 18 19 2021 22 23 24 25 26 2728 29 30 June 2026May 2026 Apr 26 27 28 29 30 May 1 2 3 4 5 6 7 8 9 6:00pm Bryan's review (Hugo Conference Room) 7:00pm City Council 10 11 12 13 14 15 16 Mother's Day 6:30pm BOZA 7:00pm Planning Comm 17 18 19 20 21 22 23 7:00pm City Council 1:00pm Hist Comm 5:30pm EDA 7:00pm Parks Comm 24 25 26 27 28 29 30 Memorial Day 7:00pm Concert in the Park 6:30pm BOZA 7:00pm Planning Comm 31 Jun 1 2 3 4 5 6 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY 2 4/30/2026 9:59 AM Su Mo Tu We Th Fr Sa 1234567 8 9 10 11 12 1314 15 16 17 18 19 2021 22 23 24 25 26 2728 29 30 June 2026 Su Mo Tu We Th Fr Sa 123456789101112 13 14 15 16 17 1819 20 21 22 23 24 2526 27 28 29 30 31 July 2026June 2026 May 31 Jun 1 2 3 4 5 6 7:00pm City Council Good Neighbor Days 7 8 9 10 11 12 13 Good Neighbor Days 6:30pm BOZA 7:00pm Planning Comm 14 15 16 17 18 19 20 7:00pm City Council 1:00pm Hist Comm 5:30pm EDA 7:00pm Parks Comm Juneteenth 21 22 23 24 25 26 27 Father's Day 6:30pm BOZA 7:00pm Planning Comm 28 29 30 Jul 1 2 3 4 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY