Loading...
HomeMy WebLinkAbout2026.06.15 CC Packet A. CALL TO ORDER B. ROLL CALL C. PLEDGE OF ALLEGIANCE D. APPROVAL OF MINUTES 1. June 1, 2026, Council Meeting 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 Kimberly Johnson as Associate Member on the Historical Commission 3. Approve Joint Powers Agreement with Lino Lakes for Elmcrest Avenue Improvement Project 4. Approve Lawful Gambling Exempt Permit for Ducks Unlimited Event on September 20, 2026 5. Approve Special Event Permit Verizon Wireless for Backpack Giveaway on July 26, 2026 6. Approve Proposal from Spheros Environmental to Complete Part 1 of the Wellhead Protection Plan Mayor: Tom Weidt Councilmembers: Becky Petryk, Ward 1 Ben Krull, Ward 2 Dave Strub, Ward 3 Mike Miron, At Large City Council Agenda Monday, June 15, 2026 Address: 14669 Fitzgerald Ave. N. Hugo, MN 55038 Phone: 651-762-6300 Website: www.ci.hugo.mn.us H. PUBLIC HEARING 1. Nothing Scheduled I. UNFINISHED BUSINESS 1. Nothing Scheduled J. NEW BUSINESS 1. Nothing Scheduled K. VISITOR PRESENTATIONS 1. Nothing Scheduled L. COUNCIL PRESENTATIONS 1. Nothing Scheduled M. ADMINISTRATIVE PRESENTATIONS 1. Nothing Scheduled N. ADJOURNMENT BACKGROUND MEMO FOR THE CITY COUNCIL MEETING ON JUNE 15, 2026 D.1 June 1, 2026 City Council Meeting Staff recommends Council approve the above minutes as presented. G. 1 Approval of Claims Staff recommends Council approve the Claims Roster as presented. G.2 Approve Kimberly Johnson as Associate Member on the Historical Commission Kimberly Johnson has applied to be a member of the Historical Commission. Kimberly has met with the Commission who are recommending she be formally appointed. Staff recommends Council approve the appointment of Kimberly Johnson as an associate member of the Historical Commission with a term to expire December 31, 2027. G.3 Approve Joint Powers Agreement with Lino Lakes for Elmcrest Avenue Improvement Project The City of Hugo and Lino Lakes mutually agree the paving on Elmcrest Avenue/24th Avenue is prudent given the existing and future traffic on this gravel roadway. 24th Avenue/Elmcrest Avenue is a shared roadway with City of Lino Lakes and a Joint Powers Agreement for improvements and maintenance has been prepared by staff from both communities and identifies an equal cost share for the road improvements, design and future maintenance responsibilities. Construction costs are estimated to be $ 684,000 and will be split evenly. The cost share will be based on actual costs for both construction and engineering for this segment of roadway only. Staff recommends Council approve the resolution for a Joint Powers Agreement with the City of Lino Lakes for improvements and maintenance of Elmcrest Avenue/ 24th Avenue. G.4 Approve Lawful Gambling Exempt Permit for Ducks Unlimited Event on September 20, 2026 Ducks Unlimited Coon Rapids Chapter 187 has applied for a Lawful Gambling Exempt Permit to hold a bingo and raffles at their event on Sunday, September 20, 2026, to be held at the Hugo American Legion. The permit will be issued by the MN Gambling Control Board after approval by the City Council. Staff recommends Council approve the Lawful Gambling Exempt Permit for Ducks Unlimited. G.5 Approve Special Event Permit Verizon Wireless for Backpack Giveaway on July 26, 2026 Verizon Wireless, 14755 Victor Hugo Boulevard, has applied for a Special Event Permit for a Backpack Giveaway event to be held in the parking lot on Sunday, July 26, 2026, from 1-4 p.m. Verizon has received permission from the chief manager of Victor Hugo Boulevard, LLC, for use of a portion of the lot for this event. The event requires a Special Event Permit approved by Council because 200-300 are expected to attend the event. Staff recommends Council approve the Special Event Permit for the Verizon Backpack Giveaway. G.6 Approve Proposal from Spheros Environmental to Complete Part 1 of the Wellhead Protection Plan The state of Minnesota’s Wellhead Protection (WHP) Program, administered by the Minnesota Department of Health (MDH), requires all public water suppliers to develop local WHP programs to protect local groundwater and drinking water sources. The goal of the plan is to identify and manage potential sources of contamination in areas that supply water to the City’s wells. These plans are to be amended approximately every 10 years in accordance with the Minnesota Wellhead Protection Rule (Minnesota Rules parts 4720.5100 to 4720.5590). Staff has been working with MDH to review the requirements for the amendment to our current WHP Program. The WHP has two parts. Part 1, in general, includes development of a hydrogeologic model, assessment of well and aquifer vulnerability and delineation of a Drinking Water Supply Management Area (DWSMA). Part 2 is planning document, taking information from Part 1, and identifying management strategies for potential contaminant sources. The City’s deadline to complete both parts is March 31, 2029. Each part can take approximately one year to complete. Staff obtained a proposal from Sphero’s Environmental to complete this work in the amount of $29,400 for Part 1. Sphero’s has completed several Part 1 plans for communities and is qualified to complete the work. Part 2 will be addressed separately once Part 1 has been completed. Staff recommends Council approve the proposal from Spheros Environmental to complete Part 1 of the WHPP. N. Adjournment MINUTES City Council Meeting City Hall Council Chambers Monday, June 1, 2026 7:00 p.m. Call to Order Mayor Weidt called the meeting to order at 7:00 p.m. Roll Call and Pledge of Allegiance COUNCIL PRESENT: Krull, Miron, Petryk, Strub, Weidt COUNCIL ABSENT: None OTHERS PRESENT: City Administrator Bryan Bear, City Engineer Mark Erichson, City Attorney Dave Snyder, Community Development Director Rachel Juba, City Clerk Michele Lindau Approve Minutes for the May 18, 2026, City Administrator Performance Review Krull made motion, Petryk seconded, to approve the minutes for the City Administrator performance review on May 18, 2026, as presented. All Ayes. Motion carried. Approve Minutes for the May 18, 2026, City Council Meeting Miron made motion, Strub seconded, to approve the minutes for the City Council meeting held on May 18, 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. Hugo Yellow Ribbon Network Annual Report - Chair Chuck Haas Chair Chuck Haas provided an update on the Hugo Yellow Ribbon Network and presented certificates of appreciation to Burger Night sponsors. He began by thanking the Council and staff for their support. Haas discussed the 1,000 pounds of care packages the YRN has sent and presented photos of care package recipients, including Operation Kinship, as well as photos of items that had been sent. He also spoke about meat raffles held at the Hugo Legion and at Sal’s Angus Grill in the fall, winter, and spring. Council Meeting Minutes for June 1, 2026 Page 2 of 8 He announced all the past year’s sponsors, which included C.G. Hill and Company, Ideal Credit Union, Honor Fitness, Keystone Place, St. John’s Men’s Club, Bald Eagle Sportsman’s Club, Hugo Lions, Washington County Sheriff’s Office, and Mueller Memorials. Haas explained that the Burger Night Sponsor of the Year usually goes to the organization that served the most burgers, but Culver’s was a significant draw, so he recognized Culver’s along with the Centerville Lions and Oneka Ridge, which was second in the number of burgers served. Colonel Kurt Steinmetz from the Minnesota National Guard joined Haas in presenting the awards. Approval of Consent Agenda Krull made motion, Petryk seconded, to approve the following Consent Agenda: 1. Approve Claims Roster 2. Approve Annual Performance Review for Public Works Mechanic Steven Garcia 3. Approve Annual Performance Review for Public Works Worker Riley Hollerback 4. Approve Annual Performance Review for Public Works Streets Lead Worker Tom Smith 5. Approve Donation to the Hugo Fire Department from the Hugo American Legion 6. Approve Special Event Permit for North Star Gay Rodeo on July 25-26, 2026 7. Approve Temporary Liquor License for the North Star Gay Rodeo on July 25- 26, 2026 8. Approve Special Event Permit for Tough Mudder on June 27, 2026 All Ayes. Motion carried. Approve Claims Roster Adoption of the Consent Agenda approved the Claims Roster as presented. Approve Annual Performance Review for Public Works Mechanic Steven Garcia At its June 6, 2023, meeting, Council approved the hiring of Steve Garcia as the new Public Works Mechanic beginning June 7, 2023. Adoption of the Consent Agenda approved the Annual Performance Review for Public Works Mechanic Steve Garcia. Approve Annual Performance Review for Public Works Worker Riley Hollerback At its June 6, 2022, meeting, Council approved the hiring of Riley Hollerback as a Public Works Worker beginning on June 30, 2022. Adoption of the Consent Agenda approved the Annual Performance Review for Public Works Worker Riley Hollerback. Approve Annual Performance Review for Public Works Streets Lead Worker Tom Smith Tom Smith was hired by the City of Hugo on June 26, 2000, as a Worker in Public Works Department and promoted to Streets Lead Worker on April 17, 2023. Adoption of the Consent Agenda approved the annual performance review for Public Works Streets Lead Worker Tom Smith. Council Meeting Minutes for June 1, 2026 Page 3 of 8 Approve Donation to the Hugo Fire Department from the Hugo American Legion The Hugo American Legion donated $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 Special Event Permit for North Star Gay Rodeo on July 25-26, 2026 The North Star Gay Rodeo had applied for a Special Event Permit to hold a regional rodeo at the Dead Broke Arena site at 5676 170th Street North on July 25-26, 2026. Set up for the event will take place on July 24. A SEP was required because there will be amplified sound and alcohol served outside. Adoption of the Consent Agenda approved the SEP for the North Star Gay Rodeo as outlined in their application and subject to the conditions in the staff memo. Approve Temporary Liquor License for the North Star Gay Rodeo on July 24- 26, 2026 North Star Gay Rodeo Association had applied for a Temporary On-Sale Liquor License to serve alcohol at their rodeo event on July 24-26, 2026, at the Dead Broke Arena, 5676 170th Street North. Staff has received the completed application, fee, and proof of liquor liability insurance. Adoption of the Consent Agenda approved the Temporary On-Sale Liquor License for the North Star Gay Rodeo. Approve Special Event Permit for Tough Mudder on June 27, 2026 Tough Mudder had applied for a Special Event Permit to hold a one-day endurance sport event at Wild Wings Game Farm on Saturday, June 27, 2026. This will be the tenth year the event has been held at Wild Wings. A Special Event Permit approved by Council is necessary because there will be over 200 people in attendance, impacts to public streets, use of an amplified sound system, and alcohol served. Adoption of the Consent Agenda approved the Special Event Permit for the Tough Mudder on June 27, 2026, subject to the conditions in the staff memo. Renewal of IUP for 17627 Henna Avenue North (Ludeke) Community Development Director Rachel Juba explained that the applicant, Terry Ludeke, is requesting renewal of an interim use permit (IUP) for a motor vehicle repair business operated as a home occupation at 17627 Henna Avenue North. Juba presented a map showing the location of the property and noted that, on the west side of the property, there is a shared driveway from Henna Avenue owned by Ludeke and shared with the properties to the north. Juba explained that Ludeke is requesting renewal of the IUP under the same conditions approved on October 21, 2013, in addition to approval of a site plan to relocate the existing driveway and install a fence. The IUP was initially approved in July 2011 and has been renewed several times, mostly through administrative approvals due to a lack of complaints. However, since 2023, staff Council Meeting Minutes for June 1, 2026 Page 4 of 8 has received three formal complaints concerning hours of operation, improper vehicle storage, exceeding the number of business-related trips, and business vehicles maneuvering on a neighbor’s driveway. Staff inspections confirmed noncompliance with vehicle and equipment storage, though the property was cleaned after letters were sent. The issue of vehicles on the neighbor’s driveway remains unresolved. The current IUP is set to expire on June 24, 2026, and a public hearing has been requested for its renewal. Home occupations, including vehicle repair, are permitted in the district with conditions to minimize impacts on adjacent properties. Staff believes that the proposed relocation of the driveway and installation of a fence will reduce impacts on surrounding properties, potentially resolving the ongoing driveway issue and improving screening of the business operations. The business continues to operate at the same scale and intensity as originally approved, with no significant changes proposed other than the inclusion of the new site plan as part of the permit. Staff supports renewal of the IUP contingent upon completion of the driveway relocation and fence installation, noting that some plan modifications may be recommended upon further review. The City Council may approve the renewal of the IUP for a period of up to five years. Mayor Weidt opened the public hearing. Terry Ludeke, 17627 Henna Avenue North, owner of Terry’s Repair, explained that he opened his business in 2008 after purchasing the home in Hugo. John Davis purchased the home adjacent to his in 2013, and there were no complaints until 2023. Terry stated that his purchase of additional property to the west of Davis’s, where he keeps his horses, triggered the situation. Terry described the ten-year friendship they had prior to this, noting that he employed John for a short time and often helped him. When John complained about driving on his property, Terry installed signs and speed bumps to slow traffic and reduce dust. He noted that John would often speed on the road and said he feared for the safety of children who use it. He stated that the IUP is a public document and, in his view, a basis for ongoing complaints. He felt businesses should be protected from neighbors unwilling to live in harmony. He added that he supports other local businesses and submitted a plan to appease neighbors that will cost approximately $40,000. He did not believe his business was the root of the problem, noting that complaints did not begin until 2023. He explained how his business helps farmers and other businesses in the community, including the City of Hugo, and requested that his permit be renewed for five years. John Davis, 17527 Henna Avenue North, acknowledged there were many people present who would vouch that Terry is a good person. He said it has been difficult living next to a commercial site and that records show the IUP has been contentious since its origin, with issues persisting to this day. He stated that, notwithstanding the zoning provision, the area is residential. He said Terry’s business is not a small auto repair operation but a large-scale, 24/7 repair facility for large equipment. He referenced the original IUP, stating there were 17 provisions for the use and that 14 have not been complied with. He expressed concern that the facility will continue to expand beyond what is acceptable for rural residential areas, impacting quality of life and property values. He stated he is subject to a constant barrage of noise. He explained efforts to be a good neighbor, including installing trees and fencing for screening and buffering. He said he had requested that tractor-trailers not park on his property and described an incident in which a 40-foot trailer blocked his driveway, resulting in Washington County issuing a trespass notice. Council Meeting Minutes for June 1, 2026 Page 5 of 8 He also described incidents of harassment, stating this is not consistent with being a good neighbor. He concluded that whether Terry is a good person is irrelevant, as the facility is not compatible with a residential environment. Art Ludeke, Terry’s father, stated that John speeds on the road. He said Terry installed speed bumps, owns the road, pays the taxes, and maintains it, while John has an easement. He added that Terry has been in business for 15 years, is an asset to the community, and spends significant money locally. He stated that issues began after John stopped working for Terry and Terry purchased the property west of John’s. He noted that Terry is installing a $40,000 driveway to address concerns. Art expressed support for a five-year renewal and said requiring inspections every three months seemed like harassment. Cory Triemert, 17525 Henna Avenue North, stated he supports the business and sees no issues. He said the shop has been a positive asset, with Terry contributing to the City, farmers, and agricultural activity. He emphasized the importance of keeping services local and stated the shop operates responsibly. He said forcing changes would increase costs, cause downtime, and burden operations. Brent Krause, 17590 Henna Avenue North, stated he has no issues as Terry’s neighbor and that Terry is willing to help others. He questioned whether there was more than one complainant, noting that no one he knew had concerns. Brent Husfeldt, 7495 195th Street North, Forest Lake, said he lives on a dead-end road with many issues, stating that it is part of living in the country. He discussed plowing his field at night and receiving complaints from neighbors. He said he has known Terry since he moved in. He commented on neighbors driving 30–50 miles per hour down the road, stating traffic has slowed since Terry installed the speed bumps. He said Terry gets along with everyone except one neighbor and that getting along with neighbors is part of living in the country. Frank Puleo, 6375 165th Street North, a former Council member, said he served on the committee that drafted the IUP ordinance. He stated that economic conditions and timing can make compliance difficult and that new neighbors may object to existing uses. He expressed support for a five-year renewal. John Lutz, 8050 157th Street North, explained he has farmed in Hugo since he was a child and has seen many changes, including times when he received complaints about his business. He commented that Terry works on large vehicles that would not be appropriate to repair in a typical in-town garage. He described times Terry had helped him and said he is trying to protect his business just as Terry is trying to protect his. Jeremy L’Allier, 7130 177th Street North, stated he was the first to receive an IUP, which was issued for two years. He said every two years he had to go through a rigorous renewal process and questioned whether the standards shift when complaints are made. He said it is difficult to remain compliant when expectations change. Joe Riel, 1627 County Road H2, White Bear Township, owner of White Bear Lawn and Snow, Council Meeting Minutes for June 1, 2026 Page 6 of 8 said he provides plowing services at a school and, when he has an issue with a machine, Terry is available to fix it in the middle of the night so he can complete his work. He said he has seen Hugo change and questioned who would be impacted next if Terry’s business were no longer allowed. He noted that supply chain issues since COVID have made parts difficult to obtain, resulting in temporary vehicle storage. He said Terry supports the broader community. Art Ludeke added that parts shortages can require temporary increases in vehicle storage and stated there should be reasonable flexibility. He reiterated support for a five-year permit. John Davis showed a picture of what he sees when looking out his window. It depicted a large piece of equipment. He stated he did not want Terry to go out of business but did not want that view from his home. He said the proposed plan would mitigate many concerns but remained concerned about enforcement. Brent Krause commented that the photograph appeared to have been taken from Davis’s driveway. Joe Wewers, 21118 Everton Avenue North, Forest Lake, said Terry is a valuable asset and that the photo reflects normal circumstances when equipment is being repaired. He discussed operating a tree nursery with his father for 40 years and the changes they have experienced. He said they have helped Terry with landscaping and could add more trees to improve screening. Matt Rehbein, 5225 217th Street, Forest Lake, stated that the photo Davis presented showed his equipment and that he was present to perform work. He added that he supports a five-year permit. Dan Starks, 20010 Jeffrey Avenue North, Forest Lake, stated he has worked with Terry and clarified that the business does not operate 24/7, but typically from 7:00 a.m. to 5:00 p.m. He described Terry as a valuable community asset. Mayor Weidt stated he had visited the property and observed that fence and turnaround improvements were underway and that signage had been installed near Davis’s driveway. He asked Terry if he agreed to the proposed conditions, and Terry confirmed, noting work had already begun with an August completion target. There were no further comments, and Mayor Weidt closed the public hearing. Petryk stated she served on the Council when the original IUP was approved and recalled few complaints at that time. She discussed the City’s balance between urban development and preserving rural character and stated that access to large equipment repair is valuable. She acknowledged impacts but noted that Terry owns and maintains the road. She expressed support for the applicant and appreciation for the proactive improvements. Strub questioned whether approval should be for one year or five years under the new conditions. He suggested a one-year term with the option to extend if compliance is achieved, stating this approach would ensure completion of required improvements. Council Meeting Minutes for June 1, 2026 Page 7 of 8 Miron asked how noncompliance would be addressed. Juba explained that it would follow standard code enforcement procedures, with staff attempting resolution before returning to Council for possible revocation if necessary. Petryk asked how long the permit had been administratively approved. Juba responded that it had been since 2013. Petryk noted this was the first time complaints had escalated to Council review. Krull stated he appreciated the feedback and recognized the service provided to the community. He noted that Davis appeared supportive of the proposed improvements but concerned about enforcement. Krull stated he preferred a five-year approval with enforcement handled as needed rather than revisiting the issue annually. Weidt questioned whether, if approved for one year and all conditions were met, staff could administratively approve it. Juba responded that the same process would be followed: notices would go out to the public, City Council, and Planning Commission, and a public hearing would only be held if requested. Bear confirmed this has been the standard renewal process. Weidt recalled concerns about the driveway in prior years and stated that installing the new driveway and turnaround would make a significant difference. He said he felt Davis wants to control what he sees and hears from beyond his property. He noted that Terry’s business has operated since 2011 and that changes have been made to address concerns, with significant investment in improvements. He stated that neighbor conflicts can persist but believed the proposed improvements would help resolve the situation. He emphasized the importance of mutual respect among neighbors. He supported a five-year permit with a deadline of September 1 to complete the work. Miron questioned whether a five-year permit could be automatically granted if the changes are completed by the August deadline. Bear clarified that a five-year approval could be granted with a condition that, if the work is not completed by August 1, the matter could be brought back to Council. Bear also suggested tabling the application until after the improvements are completed, after which it could return to Council on the Consent Agenda without a public hearing, subject to the applicant’s consent. Weidt asked Terry if he understood that if the item is tabled, it would return to Council for a five-year approval upon completion of the work. Terry confirmed. City Attorney Dave Snyder summarized that the IUP would convert to a five-year term subject to staff confirmation that all conditions have been met by September 1 and subsequent Council approval on the Consent Agenda. Weidt made motion, Petryk seconded, to table the item. All Ayes. Motion carried. Council Meeting Minutes for June 1, 2026 Page 8 of 8 Adjournment Miron made motion, Petryk seconded, to adjourn at 8:48 p.m. All Ayes. Motion carried . Respectfully Submitted, Michele Lindau, City Clerk City of Hugo Claims June 15, 2026 G. 1 Vendor Invoice Amount Description Department A Hard Days Night Tribute to the Beatles LLC HUGO 3,000.00$ Band for Concert in the Park at Lions Park Parks Dept Abdo Financial Solutions LLC 523119 3,210.00$ Accounting Assistance Finance Dept Amazon Capital Services 1Q4P-JTRH-3J37 67.43$ Fire Department Open House Supplies Fire Dept Amazon Capital Services 1Q4P-JTRH-3J37 36.17$ Restroom Supplies Public Works Amazon Capital Services 1Q4P-JTRH-3J37 29.96$ Tape & Fingertip Grips Public Works Amazon Capital Services 196R-3636-CJYJ 127.57$ Shop Tools Public Works Amazon Capital Services 196R-3636-CJYJ 16.79$ Restroom Repair Supplies - PPP Parks Dept Amazon Capital Services 196R-3636-CJYJ 9.99$ Mailbox Repair Supplies Street Dept Arnt Construction Company Inc 32322 10,950.28$ Class 6 Gravel Street Dept Baker Tilly Municipal Advisors LLC BT3653157 2,275.00$ Continuing Disclosure Services Finance Dept Century Link 651 429-3212 79.83$ Fire Station Phone Lines Fire Dept Cintas Corporation 5338274509 238.66$ First Aid Supplies Public Works Cintas Corporation 5338274509 146.00$ First Aid Supplies Gen Gov't Bldgs City of St. Paul IN65339 633.99$ Asphalt Street Dept Comcast 5/18/2026 274.14$ Business Internet (thru June 27)Fire Dept Companion Animal Control LLC May 170.00$ Callout Fees & Mileage Animal Control Companion Animal Control LLC May 300.00$ Boarding & Rescue Fees Animal Control Earl F. Andersen 0142868-IN 55.00$ Street Sign Plates Street Dept Gene's Disposal Service Inc 541268 3,463.00$ Trash & Appliance Removal - Cleanup Day Recycling Gene's Disposal Service Inc 541400 128.93$ June Waste Hauling - City Hall Gen Gov't Bldgs Gene's Disposal Service Inc 541400 273.97$ June Waste Hauling - Fire Station Fire Dept Gene's Disposal Service Inc 541400 1,137.95$ June Waste Hauling - PW Facility Public Works Gene's Disposal Service Inc 541400 269.07$ June Waste Hauling - Rice Lake Room Gen Gov't Bldgs Gene's Disposal Service Inc 541400 479.61$ June Waste Hauling - Lions Park Parks Dept Gene's Disposal Service Inc 541400 269.07$ June Waste Hauling - Hanifl Fields Parks Dept Gopher State One Call 6050491 598.05$ May Service Charges Water & Sewer Gort, Max CLAIM 46.20$ Meeting Mileage (Sensible Land Use Coalition)Planning & Zoning Granicus Inc 229834 12,368.89$ Web Streaming Service (05/07/26 thru 05/06/27)Audio/Video Hawkins Inc 7433788 7,897.60$ Water Chemicals Water Utility Home Depot Credit Services 6523148 119.82$ Trash Bags Parks Dept Home Depot Credit Services 6523148 13.96$ Shop Supplies Public Works Hugo Equipment Company 229422 59.97$ Small Engine Oil Parks Dept Hydraulic Specialty Inc 90007917061 934.92$ Repairs - Unit #340-07 Streets Dept Jefferson Fire & Safety Inc IN339320 395.46$ Parts - Unit #7103-08 Fire Dept Jefferson Fire & Safety Inc IN339320 72.53$ Harrington Swivel Adapter Fire Dept Jefferson Fire & Safety Inc IN339320 43.93$ Hydrant Wrench Fire Dept Jefferson Fire & Safety Inc IN340203 125.60$ Glove Straps (15)Fire Dept Johnson/Turner April 5,880.00$ Prosecution Fees (Flat Fee)General Legal Johnson/Turner April 340.00$ Disbursements (Prosecution Costs)General Legal Johnson/Turner April 21,107.00$ Civil Legal Fees - See Attached Breakdown General Legal Kath Fuel Oil Service Co.10308 7,131.45$ April Unleaded Gas & Diesel Purchases Various Kath Fuel Oil Service Co.10308 10,855.85$ May Unleaded Gas & Diesel Purchases Various Kath Fuel Oil Service Co.10388 5,895.99$ Bulk Lubricants Public Works Kraft Mechanical LLC 44632 5,006.25$ Furnace & A/C Replacements - 14 Units (CH) (Final)Gen Gov't Bldgs Lincoln National Life Insurance Co.June 1,154.70$ Disability Premium Finance Dept LRS Portables of Minnesota MP299856 130.00$ Toilet Rental - Oakshore Park Parks Dept LRS Portables of Minnesota MP299857 130.00$ Toilet Rental - Oneka Park Parks Dept LRS Portables of Minnesota MP299858 130.00$ Toilet Rental - Beaver Ponds Park Parks Dept LRS Portables of Minnesota MP299859 130.00$ Toilet Rental - Diamond Point Park Parks Dept LRS Portables of Minnesota MP299860 130.00$ Toilet Rental - Frog Hollow Parks Dept LRS Portables of Minnesota MP299861 260.00$ Toilet Rental - Hanifl Park West Parks Dept LRS Portables of Minnesota MP299862 130.00$ Toilet Rental - Valjean Park Parks Dept LRS Portables of Minnesota MP299863 130.00$ Toilet Rental - Arbre Park Parks Dept LRS Portables of Minnesota MP299864 130.00$ Toilet Rental - Heritage Ponds Park Parks Dept LRS Portables of Minnesota MP299865 130.00$ Toilet Rental - McCollar Park Parks Dept LRS Portables of Minnesota MP299866 130.00$ Toilet Rental - Arcand Park Parks Dept LRS Portables of Minnesota MP299867 70.00$ Toilet Rental - Irish Ave Park Parks Dept LRS Portables of Minnesota MP299868 260.00$ Toilet Rental - Hanifl Park East Parks Dept Marco INV15313385 77.54$ June Copier Maintenance Building Inspections Martin Marietta Materials 49363152 122.25$ Asphalt Street Dept Martin Marietta Materials 49377921 159.74$ Asphalt Street Dept Menards 79603 128.04$ Fire Department Supplies Fire Dept Menards 79913 255.36$ Concrete Mix - Oneka Lake Park Bench Pad Special Park Fund Menards 79913 47.98$ Shop Tools Public Works Menards 80409 19.58$ Irrigation Supplies Parks Dept Menards 80409 10.98$ Shop Tools Public Works Metro-INET 3514 13,019.00$ June Computer Service Various Niebur Tractor & Equipment 01-219386 775.05$ Parts - Unit #343-20 Parks Dept Niebur Tractor & Equipment 01-219528 210.05$ Parts - Unit #343-20 Parks Dept Olson Power & Equipment Inc P30670 381.80$ Parts - Unit #343-20 Parks Dept Olson Power & Equipment Inc P30824 889.87$ Parts - Unit #343-20 Parks Dept Olson Power & Equipment Inc P31040 517.38$ Parts - Unit #343-20 Parks Dept Olson's Sewer Service Inc 108448 8,018.21$ PW Septic System - Pump, Pipe, Filter & Labor Public Works Oxygen Service Company 3651744 160.25$ Welding Supplies Public Works Peterson Companies 63320 697.18$ Lions Park Irrigation Start Up & Repairs Parks Dept Pipe Services 1220 19,639.08$ Televise Sanitary Sewer - Bald Eagle Industrial Park Improvements Street Reconstruction Press Publications 852515 466.00$ Seasonal Public Works Position Notice Ordinances/Proceedings Press Publications 858963 54.99$ Consumer Confidence Report Notice Water Utility SafeAssure Consultants Inc 4024 5,376.02$ Annual Safety Training Public Works SealTech Inc 1821 66,797.35$ Farnham Avenue Trail Replacement Street Reconstruction SiteOne Landscape Supply LLC 166835280-001 29.72$ Herbicide Parks Dept Page 1 City of Hugo Claims June 15, 2026 G. 1 Vendor Invoice Amount Description Department SiteOne Landscape Supply LLC 167088409-001 203.18$ Raingarden Supplies Gen Gov't Bldgs Stanley Access Technologies Inc 90149174 2,035.80$ Repairs - Touchless Door Openers (CH)Gen Gov't Bldgs Stanley Access Technologies Inc 90152356 399.00$ Repairs - Touchless Door Openers (CH)Gen Gov't Bldgs TASC IN3732022 50.00$ June Cobra Administration Fee Finance Dept T-Mobile 870254054 473.37$ Cellular Phone Charges Various T-Mobile 870254054 30.22$ 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 Toshiba Financial Services 5038765955 148.74$ June Lease Payment Fire Dept Toshiba Financial Services 5038765955 39.89$ Overage Charges (Color)Fire Dept Toshiba Financial Services 5038765955 1.47$ Overage Charges (B & W)Fire Dept Twin City Garage Door Co 451546122 695.00$ Test Fire Shutters (CH)Gen Govt Bldgs Uline 208251436 322.09$ Poly Sheeting Fire Dept UniFirst Corporation 1410227880 134.44$ Uniforms, Supplies & Floor Mat Services (PW)Public Works UniFirst Corporation 1410229572 29.77$ Restroom Supplies & Floor Mat Services (CH)Gen Gov't Bldgs UniFirst Corporation 1410229585 136.28$ Uniforms, Supplies & Floor Mat Services (PW)Public Works UniFirst Corporation 1410230635 134.89$ Uniforms, Supplies & Floor Mat Services (PW)Public Works UniFirst Corporation 5410005616 1.13$ Restroom Supplies & Floor Mat Services (CH)Gen Gov't Bldgs Verizon Wireless 6144363285 866.91$ Cellular Phone Charges Various Wright, Gregory May 2,310.00$ May Cleaning Services (PPP)Parks Dept WSB & Associates March 149,043.50$ Engineering Fees - See Attached Breakdown Various WSB & Associates April 127,937.00$ Engineering Fees - See Attached Breakdown Various Xcel Energy 51-0013986182-3 42,509.55$ Fenway Blvd Streetlight Installation - Bald Eagle Industrial Park Improvements Street Reconstruction 554,998.45$ Total Claims for June 15, 2026 Page 2 Project Budget Tracking For the period 4/1/2026 - 4/30/2026 Project Name WSB Project # Project Manager Current Invoice Fee Type JTD Billed Budget Comments Client Invoice Reviewer 2026 LGU Services Havranek, Anthony $ 936.00 $ 6,632.25 $ - Juba, Rachel HUGO - 165th Street Area Study Harwood, Alison $ 732.75 $ 141,191.25 $ 142,200.00 Juba, Rachel HUGO - 2025 Beaver Ponds Area Street Improvement Project Erichson, Mark $ 1,141.75 $ 112,107.25 $ 198,947.00 Anderson, Scott HUGO - 2025 Duck Pass, Palme Long Lake Estate, and Ingersoll Neighborhood Improvement Project Erichson, Mark $ 1,805.50 $ 109,801.10 $ 178,177.00 Anderson, Scott HUGO - 2026 Bald Eagle Industrial Park Area Street Improvement Project Erichson, Mark $ 44,576.00 $ 534,793.99 $ Anderson, Scott HUGO - 2026 General Engineering Services Erichson, Mark $ 9,309.75 $ 31,757.50 $ 91,640.00 Bear, Bryan HUGO - 2026 GIS Services Pittman, Bryan $ 601.00 $ 1,083.00 $ 15,000.00 Bear, Bryan HUGO - 2026 Oneka Lake Reserve Erichson, Mark $ 1,094.25 $ 1,094.25 $ (6&52:Juba, Rachel HUGO - Fable Hill Bridge Hornby, Paul $ 55,656.25 $ 166,352.94 $ Anderson, Scott HUGO - Forest Road Bridge Hornby, Paul $ 2,993.75 $ 109,199.00 $ Anderson, Scott HUGO - Kwik Trip - 159th Street Keller, Kris $ 142.50 $ 9,413.25 $ (6&52:Juba, Rachel HUGO - MS4 Support Bonnell Roe, Kory $ 658.75 $ 16,811.00 $ +285/<Juba, Rachel HUGO - Shores of Oneka Lake North Erichson, Mark $ 6,483.00 $ 7,499.25 $ (6&52:Juba, Rachel HUGO - WCA- 25.13 Busy B Boundary and Type Havranek, Anthony $ 60.25 $ 3,101.25 $ 1,499.84 Juba, Rachel HUGO - WHP Amendment Bisson, Shibani $ 1,446.50 $ 2,361.75 $ Anderson, Scott Hugo Lions Memorial Amberg, Candace $ 299.00 $ 299.00 $ 21,000.00 Denaway, Shayla Final Totals $ 127,937.00 R-035689-000 Not to Exceed R-035285-000 Hourly R-031981-000 Not to Exceed R-035454-000 Hourly R-024016-000 Hourly R-032337-000 Hourly R-022684-000 Hourly R-023811-000 Hourly R-035687-000 Hourly R-032740-000 Hourly R-031774-000 Hourly R-028436-000 Not to Exceed R-026750-000 Hourly R-026749-000 Hourly R-028899-000 Not to Exceed R-032972-000 Hourly Page 1 of 1 JOINT POWERS AGREEMENT BETWEEN THE CITY OF LINO LAKES AND THE CITY OF HUGO REGARDING 24TH AVENUE / ELMCREST AVENUE STREET AND UTILITY IMPROVEMENTS AND MAINTENANCE THIS AGREEMENT is made and entered into on the latest date set forth below by and between the City of Hugo and the City of Lino Lakes, both of which are municipal corporations under the laws of the State of Minnesota. RECITALS: WHEREAS, the City of Lino Lakes (hereinafter described as “Lino Lakes”) is constructing the Otter Lake Road Extension project, (the “Extension Project”) from where it exists today (300 feet north of Main Street) to 400 feet north of Heritage Parkway, as shown in the attached Exhibit A; and WHEREAS, the City of Hugo (hereinafter described as “Hugo”) and Lino Lakes have determined it be in the best interest of Hugo and Lino Lakes to pave Elmcrest Avenue / 24th Avenue from approximately 400 feet north of Heritage Parkway to Washington County Road 4A / Anoka County Road 140 (the “Overlay Project”), as shown in the attached Exhibit B (the area to be improved hereinafter referred to as the “Roadway Improvements”); and WHEREAS, 24th Avenue / Elmcrest Avenue is a border roadway between Lino Lakes and Hugo, and Lino Lakes and Hugo recognize and acknowledge that the Overlay Project will benefit both Lino Lakes and Hugo; and WHEREAS, a portion of the Overlay Project is to be constructed within the corporate limits of Lino Lakes and a portion is to be constructed within the corporate limits of Hugo, as shown in the attached Exhibit B; and WHEREAS, subject to the terms hereof, Lino Lakes is assuming responsibility for the design and construction of the Overlay Project to be built both within the corporate limits of Lino Lakes and Hugo; and NOW, THEREFORE, in consideration of the mutual undertakings herein expressed, the sufficiency of which is acknowledged by the parties, Lino Lakes and Hugo agree as follows: SECTION 1. PURPOSE. The purpose of this Agreement is to set forth the terms of the agreement Lino Lakes and Hugo have reached regarding the design, construction, maintenance, and financing of the Overlay Project both within the corporate limits of Lino Lakes and Hugo, in accordance with Minnesota Statutes, Section 471.59. 2 SECTION 2. TERM. This Agreement shall become effective upon execution by both Parties and shall remain in effect until terminated by mutual written agreement of the Parties, or as otherwise expressly provided herein. The provisions of this Agreement relating to payment obligations, maintenance responsibilities, and cost reconciliation shall survive completion of the Overlay Project and any termination of this Agreement to the extent applicable. SECTION 3. DESIGN AND CONSTRUCTION. A. Design. Lino Lakes shall be responsible for the design and construction of both the portion of the Overlay Project located within Hugo and the portion of the Overlay Project located within Lino Lakes. Therefore, the parties agree that: 1) Lino Lakes shall design the Overlay Project, administer the construction, and conduct inspections of the construction process. Hugo shall have the right to inspect, review, and comment upon construction of the Overlay Project. Hugo shall have the right to review and approve the final plans and specifications prior to Lino Lakes submitting the advertisement for bids, with such approval not being unreasonably withheld, delayed, or conditioned. 2) For purposes of performing its obligations under this Agreement, Hugo hereby grants to Lino Lakes the right to use the streets, public ways, and easements of Hugo for purposes of constructing the Extension Project and Overlay Project, including any excavations necessary to perform work incidental to the performance of this agreement. 3) Lino Lakes and Hugo agree to notify property owners in their own communities of the construction Overlay Project scope and schedule. 4) The project is planned to be constructed within existing public right of way. Stormwater management will be coordinated between Lino Lakes and Hugo during the design. Lino Lakes will obtain the Rice Creek Watershed District permit, if necessary. B. Cost Sharing. Hugo shall be responsible for fifty percent (50%) of the engineering costs and fifty percent (50%) of the construction costs of the Overlay Project. Estimated project costs and each Party’s respective share shall be set forth in Exhibit C, which may be updated to reflect actual bid prices and project phasing. Lino Lakes shall invoice Hugo for one hundred percent (100%) of Hugo’s share of design engineering costs upon completion of design engineering services. Hugo shall pay such invoice within thirty (30) days of receipt. With respect to construction engineering and construction costs, Hugo shall pay ninety percent (90%) of its estimated share, as updated based on awarded bid 3 prices, no later than May 30 of the year in which construction is anticipated to occur. The remaining ten percent (10%) of Hugo’s share shall be reconciled and paid based on actual costs incurred upon final completion of the Overlay Project, as provided herein. Final project costs shall be determined upon completion of the Overlay Project, and any necessary adjustments to Hugo’s estimated share shall be made through a credit or additional payment as part of the final cost reconciliation. C. Termination Prior to Award of Contract. Each city has the right to terminate this Agreement prior to award of a construction contract within 15 days after the opening of bids for the construction contract. The terminating party is responsible for all design costs incurred up to the date of termination. D. City Council Approval. Before this Agreement shall become binding and effective, it shall be approved by appropriate resolutions of the City Councils of Hugo and Lino Lakes, which resolutions shall be attached hereto as Exhibits D and E, respectively. E. Change Orders. Any change order that affects the scope or cost of the Overlay Project within the project area subject to this Agreement shall require the prior written approval of both Lino Lakes and Hugo. Approved change orders shall be incorporated into the Project and the costs associated therewith shall be shared equally by the Parties, with Hugo responsible for fifty percent (50%) and Lino Lakes responsible for fifty percent (50%) of such costs. SECTION 4. STREET MAINTENANCE AND IMPROVEMENTS A. Routine Maintenance. After each City’s written acceptance of the Overlay Project’s Roadway Improvements, Lino Lakes shall, at its sole cost and expense, perform routine, day-to-day maintenance of the Roadway Improvements (“Routine Maintenance”) as Hugo is currently providing this maintenance to the north shared section between 170th Street and 180th Street, the section from Heritage Parkway south to CSAH 8/CSAH 14, as well as the south shared section of Elmcrest/24th Avenue between Fable Hill Parkway and 65th Street N. Routine Maintenance includes, but is not limited to: snow plowing, street sweeping, minor patching, signage, striping, crack filling, and other customary municipal roadway maintenance activities. Routine Maintenance shall be performed in a manner consistent with Lino Lakes customary municipal practices and standards for similar roadway facilities. Nothing herein shall be construed to require maintenance at a level exceeding Lino Lakes standard practices. Hugo shall continue to be responsible for annual bridge inspections over Hardwood Creek and Judicial Ditch 2. B. Overlay and Capital Improvements. Lino Lakes and Hugo acknowledge that certain work exceeds Routine Maintenance and constitutes capital maintenance or improvement work, including without limitation mill and overlay, reclamation, or 4 other significant resurfacing of the Roadway Improvements (collectively referred to as “Overlay and Capital Improvements”). Any determination that an Overlay and Capital Improvements project is necessary shall be made jointly by Lino Lakes and Hugo. The Parties shall coordinate in good faith to evaluate roadway condition, scope, timing, and estimated costs prior to proceeding with any Overlay and Capital Improvements. The costs of any bridge repairs and bridge maintenance associated with the Roadway Improvements shall be shared equally by the Parties, with Lino Lakes and Hugo each responsible for fifty percent (50%) of such costs; provided, however, that no such bridge repair or maintenance work shall be undertaken, nor shall either Party be obligated to share in the cost thereof, unless approved in writing by the Parties’ respective City Councils in a manner consistent with the approval requirements for Overlay and Capital Improvements set forth herein. No Overlay and Capital Improvements shall be undertaken, nor shall either Party be obligated to share in the cost thereof, unless the Parties’ respective City Councils mutually agree in writing that such work is necessary and approve the general scope and cost estimate. Upon mutual agreement, Lino Lakes and Hugo shall equally share the costs of Overlay and Capital Improvements. Each Party shall pay its share within forty-five (45) days after receipt of written invoice and reasonable documentation of the Overlay and Capital Improvements, with such documentation including, at a minimum, a summary of project costs, copies of contractor invoices or pay applications, and such other supporting materials as are reasonably necessary to substantiate the invoiced amount. C. Ditch System. Lino Lakes shall maintain the westerly ditch system of the Roadway Improvements, and Hugo shall maintain the easterly ditch system of the Roadway Improvements. The maintenance of the culverts located under the roadway, connecting the westerly ditch and easterly ditches, shall be performed by Hugo, and the costs of such maintenance, including materials and labor, shall be shared equally by the Parties, with Hugo and Lino Lakes each responsible for fifty percent (50%). SECTION 5. MISCELLANEOUS PROVISIONS A. No Waiver of Immunities. Nothing in this Agreement is intended to, nor shall it be construed to, waive or limit any statutory or common-law immunities, defenses, or limitations of liability available to either Party under Minnesota law. B. Insurance. Each Party shall maintain insurance coverage as required by law and consistent with its customary practices. Upon reasonable request, a Party shall provide evidence of such coverage to the other Party. C. Amendments. This Agreement may be amended or modified only by a written agreement executed by authorized representatives of both Parties and approved by their respective City Councils. 5 D. Written Approval. Each Party shall designate an authorized staff representative responsible for coordination, communication, and administration under this Agreement. Such designation may be made by title or position and may be changed from time to time upon written notice to the other Party. Authorized representatives may act on behalf of their respective Parties for routine administrative matters consistent with this Agreement. E. Notices. All notices required or permitted under this Agreement shall be in writing and shall be deemed given when personally delivered or when deposited in the United States mail, postage prepaid, addressed to the City Clerk or other designated official of the respective Parties at their principal offices, or at such other address as a Party may designate by written notice. F. Severability. If any provision of this Agreement is determined to be invalid or unenforceable, such determination shall not affect the validity or enforceability of the remaining provisions, which shall remain in full force and effect. G. Entire Agreement. This Agreement constitutes the entire understanding between the Parties relating to the subject matter hereof and supersedes all prior negotiations, representations, or agreements, whether written or oral. [signature page to follow] 6 IN WITNESS WHEREOF, Hugo and Lino Lakes have caused this Agreement to be executed by the proper officers. CITY OF HUGO CITY OF LINO LAKES ______________________ ________________________ Mayor Mayor Attest: Attest: ______________________ ________________________ City Clerk City Clerk ______________________ ________________________ Date Date 7 Exhibit A Overview of the Extension Project 8 Exhibit B Overview of the Overlay Project area with outline of corporate limits 9 Exhibit C Estimate of Overlay Project cost share 10 Exhibit D Lino Lakes approval resolution 11 Exhibit E Hugo approval resolution CITY OF HUGO RESOLUTION NO 2026- APPROVING A JOINT POWERS AGREEMENT BETWEEN THE CITY OF HUGO AND THE CITY OF LINO LAKES REGARDING 24TH AVENUE / ELMCREST AVENUE STREET IMPROVEMENTS AND MAINTENANCE WHEREAS, the City of Lino Lakes is constructing the Otter Lake Road Extension project, from where it exists today, 300 feet north of Main Street to 400 feet north of Heritage Parkway; and WHEREAS, the City of Hugo and the City of Lino Lakes have determined it be in the best interest of Hugo and Lino Lakes to pave Elmcrest Avenue / 24th Avenue from approximately 400 feet north of Heritage to Washington County Roade 4A / Anoka County Road 140; and WHEREAS, 24th Avenue / Elmcrest Avenue is a boarder roadway where Lino Lakes and Hugo recognize and acknowledge that the Project will benefit both Lino Lakes and Hugo; and WHEREAS, a portion of the Project is to be constructed within the corporate limits of Lino Lakes and a portion is to be constructed within the corporate limits of Hugo; and WHEREAS, subject to the terms of the Agreement, Lino Lakes is assuming responsibility for the design and construction of the Project to be built both within the corporate limits of Lino Lakes and Hugo; and WHEREAS, THE City of Hugo has planned for this improvement as part of Capital Improvement Planning and has funds budgeted for this expenditure; and NOW, THEREFORE, BE IT RESOLVED by the City Council of Hugo, Minnesota, that the Council hereby approves the Joint Powers Agreement with the City of Lino Lakes and authorizes the Mayor and City Clerk to execute the agreement on behalf of the City, subject to any non-substantive changes to the agreement approved by the City Attorney and City Administrator. Adopted by the City Council of the City of Hugo this 15th day of June 2026. ___________________________ Tom Weidt, Mayor ATTEST: ___________________________ Michele Lindau, City Clerk June 5, 2026 Honorable Mayor and City Council City of Hugo 14669 Fitzgerald Avenue North Hugo, MN 55038 Re: Wellhead Protection Plan Amendment Approve Proposal from Spheros Environmental for WHP Part 1 WSB Project No. 026749-000 Dear Mayor and Council, The state of Minnesota’s Wellhead Protection (WHP) Program, administered by the Minnesota Department of Health (MDH), requires all public water suppliers to develop local WHP programs to protect local groundwater and drinking water sources. The goal of the plan is to identify and manage potential sources of contamination in areas that supply water to the City’s wells. The City currently has a WHP Plan from 2015 and information for that plan is located on the City’s website. These plans are to be amended approximately every 10 years in accordance with the Minnesota Wellhead Protection Rule (Minnesota Rules parts 4720.5100 to 4720.5590). Staff has been working with MDH to review the requirements for the amendment. The WHP has two parts. Part 1, in general, includes development of a hydrogeologic model, assessment of well and aquifer vulnerability and delineation of a Drinking Water Supply Management Area (DWSMA). Part 2 is planning document, taking information from Part 1, and identifying management strategies for potential contaminant sources. The City’s deadline to complete both parts is March 31, 2029. Each part can take approximately one year to complete. The first step is to complete Part 1 per the attached MDH Scoping Decision Notice No. 1. Staff obtained a proposal from Sphero’s Environmental to complete this work in the amount of $29,400. Sphero’s has completed several Part 1 plans for communities and is qualified to complete the work. Staff recommends approval of the proposal from Spheros Environmental to complete Part 1 of the WHPP. If you have any questions or items you wish to discuss, you can contact me at 612-360-1278. Sincerely, WSB Mark Erichson, PE City Engineer Attachments: MDH Scoping Decision Notice No. 1 Honorable Mayor and City Council June 5, 2026 Page 2 Spheros Environmental Proposal- WHPP Part 1 cc: Bryan Bear, City Administrator, City of Hugo Scott Anderson, Public Works Director, City of Hugo Liz Finnegan, Senior Engineering Technician, City of Hugo An equal opportunity employer. Protecting, Maintaining and Improving the Health of All Minnesotans April 23, 2026 Scott Anderson, Public Works Director City of Hugo 8220 140th Street North Hugo, Minnesota 55038 Dear Scott Anderson, Subject: Scoping Decision Notice No. 1 for the City of Hugo, PWSID 1820007 This letter provides notice of the results of the Scoping 1 Meeting held between you, Shibani Bisson (City of Hugo), Abby Shea, and me (Minnesota Department of Health) on April 8, 2026, regarding wellhead protection planning. In general, the preparation of Part 1 of a Wellhead Protection Plan (WHPP) that will document the 1) delineation of a wellhead protection area, 2) delineation of a drinking water supply management area, and 3) assessments of well and aquifer vulnerability related to these areas for the primary water supply wells that are used by the study area communities. The wellhead protection area is the surface and subsurface area surrounding public water supply wells through which contaminants are likely to move and affect drinking water supply. The drinking water supply management area is the area delineated using identifiable landmarks that reflect the wellhead protection area boundaries as closely as possible. Scoping Decision Notice Table 2 lists all Public Water Supply wells addressed by the WHPP. The primary wells are included within this notice and the emergency wells are exempt. However, the community must manage an inner wellhead management zone that is defined by a 200-foot radius around each emergency standby well. The community will have until March 31, 2029, to complete the amendment of its entire Wellhead Protection Plan, Part 1 and Part 2. The Minnesota Department of Health (MDH) highly recommends that half of the time be dedicated to completing Part 2 of the plan. The community will be responsible for the completion of Parts 1 and 2 of the Wellhead Protection Plan, with technical assistance provided by MDH. The Wellhead Protection Plan must be prepared in accordance with Minnesota Rules, parts 4720.5100 to 4720.5590. General wellhead protection requirements and criteria for delineating the wellhead protection area and data reporting are presented in Minnesota Rules, parts 4720.5500 to 4720.5510. The enclosed Scoping Decision Notice No. 1 formally identifies the information necessary to meet rule requirements for preparing Part 1 of the Wellhead Protection Plan. The wellhead rule refers to the existing information required for wellhead planning as data elements. Much of this information is 2 available in the public domain, as described in the Scoping Decision Notice No. 1 form. You only need to provide the information that is not in the public domain and, therefore, not available to MDH. The Scoping Decision Notice No. 1 form also: • Lists the Minnesota unique well number and well construction for each well that will be included in the Wellhead Protection Plan (Table 2). • Lists the pumping volumes for each well (Table 3). • Includes a map of the well locations. A summary of the information that the community needs to provide is included at the end of the Scoping Decision Notice No. 1 form. Finally, it is our understanding that you will serve officially as the wellhead protection manager on behalf of your community. If this is incorrect, please let me know. You are responsible for providing a notice of intent to develop the Wellhead Protection Plan, as required by the Wellhead Protection Rule (part 4720.5300, subpart 3). A copy of this notice should be forwarded to MDH and must include a list of the community’s wells, the unique numbers, and contact information for you as wellhead protection manager. If you need an example notice, please reach out to Abby Shea ; 651- 201-4386). 3 In closing, we look forward to working with you on completion of your Wellhead Protection Plan. If you have any questions regarding our comments, please contact me at 651-201-5841 or at anneka.munsell@state.mn.us. Sincerely, Anneka Munsell Hydrologist Source Water Protection Unit PO Box 64975 St. Paul, MN 55164-0975 651-201-5841 www.health.state.mn.us Enclosures: Scoping Notice Map of Existing DWSMA CC: Abby Shea, Planner, Minnesota Department of Health, St, Paul District Office Lucas Martin, District Engineer, Minnesota Department of Health, Drinking Water Protection, St. Paul District Office Luke Stuewe, Minnesota Department of Agriculture An equal opportunity employer. Wellhead Protection Plan Minnesota Department of Health Source Water Protection Unit Staff PO Box 64975 St. Paul, MN 55164-0975 Fax: 651-201-4701 health.drinkingwater@state.mn.us www.health.state.mn.us To obtain this information in a different format, call: 651-201-4700 5 Scoping Decision Notice No. 1 VULNERABLE SETTING April 23, 2026 Introduction The purpose for the first Scoping Meeting, as required by Minnesota Rules, part 4720.5310, is to discuss the information necessary for preparing the Part I Report of a Wellhead Protection Plan. The Part I Report identifies the area that provides the source of drinking water for the public water supply (PWS) so that the PWS can develop land use or management practices to protect their groundwater resource from contamination. Specifically, the Part I Report documents the delineation of the wellhead protection area (WHPA), the delineation of the drinking water supply management area (DWSMA) and assesses the vulnerability of the PWS well(s) and DWSMA. The wellhead rule (Minnesota Rules, part 4720.5310) refers to the information required for wellhead planning as data elements. This form lists the data elements that are stated in Minnesota Rules, part 4750.5400. The Minnesota Department of Health (MDH) uses this form to designate which data elements are needed to prepare the Part I Report, based on the hydrogeological setting, vulnerability of the well(s), and aquifer information known at the time of the Scoping 1 Meeting. Public Water Supply Contact Information: Name: City of Hugo PWSID: 1820007 Wellhead Protection Manager: Scott Anderson, Public Works Director Address: 8220 140th Street North, Hugo, Minnesota 55038 Unique well numbers included in notice: 523948 (Well #2), 654497 (Well #3), 671642 (Well #4), 686272 (Well #5), and 773400 (Well #6) SCOPING 1 NOTICE 6 Using the Data Elements Table The data elements table describes the different datasets used to develop a wellhead protection plan. Each line of the data elements table has one data element. There are four different columns that could be checked with an “X”. • If the “Not Necessary” column is checked, this means that the element is not required for the Part 1 Report of the wellhead protection plan. • If the “Delineation” column is checked, this means the element is required for use in the delineation of the WHPA and/or the DWSMA. • If the “Vulnerability” column is checked, this means the element is required for use in the vulnerability assessment of the PWS well(s) and/or DWSMA. • If the “Submit” column is checked, this means the PWS is required to submit the information to MDH. Unless it is part of the public domain or submitted to Department of Natural Resources (DNR) through the Minnesota Permitting and Reporting System (MPARS). Other Tables Tables 2 and 3 contain data known by the Minnesota Department of Health (MDH), Minnesota Geologic Survey (MGS), Minnesota Pollution Control Agency (MPCA), Minnesota Department of Transportation (MNDOT), and Minnesota Department of Natural Resources (DNR). Please review these tables and verify the information is correct. If there is any incorrect information, please let me know. SCOPING 1 NOTICE 10 Data element type Data Element Not Necessary Delineation Vulnerability Submit Possible Data Source Groundwater Quality J.6 An existing report to the Minnesota Department of Agriculture and the Minnesota Pollution Control Agency of contaminant spills and releases. X X MDH, MPCA 12 Figure 1. Well locations Minneapolis – Saint Paul, Minnesota www.spherosenv.com Innovative Environmental Solutions for a Sustainable Future May 4, 2026 P26-00779-00 Shibani Bissan, PE Senior Professional Engineer 701 Xenia Avenue S, Suite 300 Minneapolis, MN 55416 RE: Proposal for Completing the Part 1 Wellhead Protection (WHP) Plan Amendment City of Hugo, Minnesota Dear Shibani, Spheros Environmental Group Parent (Spheros) provides herein our Scope of Services and associated cost estimate to assist WSB Engineering (WSB or Client) and the City of Hugo, Minnesota (City) with completing a Part 1 Amendment of the City’s Wellhead Protection (WHP) Plan (Project). PROJECT UNDERSTANDING The purpose of this section is to present Spheros’ understanding of the Part 1 WHP Plan project (Project) objectives and goals, and the work that will be implemented to meet these goals. This proposal outlines the tasks necessary for delineation of the wellhead protection area (WHPA), assessment of the well and aquifer vulnerability, and associated reporting requirements commonly required by the Minnesota Department of Health (MDH). The Part 1 WHP Plan is being completed to include City Wells No. 2 through 6. (Minnesota Well Index [MWI] Unique Nos. 523948, 654497, 671642, 686272, and 773400). Only the primary wells will be included in the updated groundwater model and objectives noted below. Spheros’ proposal will meet the requirements for Part 1 of the WHP Plan following Minnesota Rules (MR) 4720.5100 to 4720.5590 to obtain approval from the MDH. The objectives are as follows:  Assemble the necessary data elements;  Delineate the WHPAs for the City wells;  Conduct Fracture Flow and Surface Water Contribution Area Delineation (if warranted);  Delineate the Drinking Water Supply Management Area (DWSMA); Spheros Environmental | www.spherosenv.com | Page 2  Conduct well and aquifer vulnerability assessments;  Complete the final report and deliverable requirements; and,  Attend Project meetings virtually. The Project approach is based on our Project team’s familiarity with the MDH requirements, and staff who have completed more than 40 Part 1 WHP Plan projects in Minnesota, and conducted hydrogeologic assessments of the Ordovician-age Prairie du Chien and Cambrian-age Jordan Sandstone aquifer that the City’s wells are completed in. Spheros has compiled and reviewed the following information, which provided the basis for our Project approach: the MDH Scoping Decision Notice, well logs from the MWI Database, maps from the Minnesota Department of Natural Resources (MDNR) and Minnesota Geological Survey (MGS) Washington County Hydrogeologic Atlases, MetroModel 3 (MM3) groundwater model, USGS’ and DNR’s Northeast Metro groundwater modeling, communication with MDH staff, and the previous 2013 Part 1 WHP Plan completed by our Project team. A successful Part 1 WHP Plan is developed through a comprehensive analysis and evaluation of existing data and new data obtained by performing a number of tasks. Spheros will approach the Project by completing the proposed tasks in an efficient and cost-effective manner that addresses the specific aspects of the wellfield and meets the requirements of the MDH and MR 4720.5100 to 4720.5590. The ultimate goal of the WHP Plan is to ensure that the aquifer utilized by the City is protected as the current and future water sources. The first phase of this process is to delineate the WHPAs. This is done by characterizing the local hydrogeology, developing/updating a site- specific conceptual hydrogeologic model, delineating the 1-, 5-, and 10-year times-of-travel (capture zones) used to delineate the WHPAs for all City wells, completing a fracture flow analysis, assessing the need for a surface water capture area or conjunctive delineation, and assessing the vulnerability of the wells and the aquifer(s) within the delineated DWSMA. The need for a surface water delineation will be evaluated given the source aquifer and vulnerability; therefore, costs for a conjunctive delineation are included in this proposal. To begin the WHPA delineation process, initial collection of the data elements that will be outlined in the scoping meeting notes will be completed. Typically, most of this information is available through the public domain. Using the assembled data, Spheros will make a general evaluation of these criteria and build upon existing information to refine the existing conceptual hydrogeologic model that is specific to the City and surrounding area. Following development of the initial conceptual hydrogeologic Spheros Environmental | www.spherosenv.com | Page 3 model, Spheros will discuss the delineation criteria and the WHPA delineation method with MDH. The following scope and costs are based on our understanding of the City’s current well field and the experience of Spheros’ Project team completing the previous City WHP Plan in 2013 and completing WHP Plans for wells completed in the Prairie du Chien and Jordan aquifers for other communities, and our previous experience working on groundwater projects within this area of the Twin Cities Metropolitan Area. 1. SCOPE OF SERVICES Spheros designed the proposed services outlined herein to meet Project objectives. The Scope of Services presented herein also provide assumptions and exclusions associated with the work. This proposal outlines the tasks necessary for delineation of the wellhead protection area (WHPA), assessment of the well and aquifer vulnerability, and associated reporting requirements commonly required by the MDH. Task 1: Assemble Data Elements Our review of the MDH’s Scoping Decision Notice and our understanding of the MDH requirements and MODFLOW modeling will allow us to efficiently complete the Project. A Determination of Aquifer Properties - Aquifer Test Plan (DAP-ATP), will be required by the wellhead rule to document the aquifer transmissivity used in the delineation process. This task includes preparation of the DAP-ATP. No additional aquifer testing is anticipated, but new data may be incorporated compared to the previous 2013 Plan. In addition, reports, maps, hydrogeologic cross sections, publications, and personal communication with WSB, City, and MDH staff will also provide information. This proposal assumes that no additional cross sections will be needed as part of this Plan. Task 2: Delineate WHPAs Using MODFLOW Spheros will plan to use an existing numerical groundwater flow model, the Northeast Metro Lakes Groundwater (NMLG) model, that includes the City and was previously created, updated, and recalibrated by the United States Geological Survey (USGS), Minnesota Department of Natural Resources (DNR), and multiple consultants. This model will either be used at its current extent, or reduced further to a local-scale model. It will be updated and recalibrated by updating the model layers in the area of the City with geologic information obtained since the completion of the model and the City’s 2013 WHP Plan. Spheros Environmental | www.spherosenv.com | Page 4 Spheros will use MODFLOW to simulate the flow field and delineate the WHP Areas, and will provide WSB and the City with a cost-effective, flexible, and appropriate model. Once the model is created, the required time-of-travel zones will be used to determine the WHP Areas for the City wells. Pumping rates applied to each well will be based on the maximum daily volume determined from either: 1) the previous 5 years; or, 2) the projected annual pumping over the next 5 years. Following the initial WHPA delineation from this task, Spheros will calibrate the model and complete the sensitivity analysis as required by the MDH. The costs associated with modeling in Task 2 assume the aquifer parameters and hydrogeologic information in the existing NMLG model are reasonably calibrated and significant changes to the conceptual model and aquifer parameters will not be required. Task 3: Conduct Fracture Flow and Surface Water Contribution Area Delineation (if warranted) A fracture flow delineation will be required for the City Wells since the Prairie du Chien and Jordan sandstone aquifers are utilized by the City wells. Even wells solely completed in the Jordan receive flow contribution from the overlying fractured Prairie du Chien dolomite aquifer near the wellfield. The delineation will be based on MDH methodology and reflect a similar approach and assumptions used to complete the previous 2013 plan’s fracture flow delineation. The potential need for a Surface Water Capture Area (SWCA) will be assessed. If needed, it will be delineated based on high vulnerability of the aquifer below surface water features. It is likely that either the DNR’s Level-9 Auto-Catchment watershed boundaries or sewersheds will be used to delineate a SWCA, pending communication with MDH. Task 4: Delineate the DWSMA Following completion of Tasks 1 through 3, Spheros will work with the City and MDH in delineating the boundaries of the DWSMA. The DWSMA includes the surface and subsurface area surrounding the wells and follows the WHPA as closely as possible in accordance with the rules. The boundaries of the DWSMA will be identified using landmarks as defined in the rules. To simplify the City’s management of the resulting DWSMA, particular focus will be on using Minnesota Department of Transportation (MNDOT) road centerlines and quarter section boundaries while also not splitting parcels into multiple parts. Spheros Environmental | www.spherosenv.com | Page 5 Task 5: Assess Well Field and DWSMA Vulnerability Spheros will assist with the vulnerability assessment within the DWSMA in accordance with MR 4720.5210. The assessment will follow the MDH’s guidance document, Assessing Well and Aquifer Vulnerability for Wellhead Protection. The assessments will include a review of well construction details to evaluate individual well vulnerability. Spheros will evaluate data from the above tasks to assess the vulnerability of the target aquifers underlying the DWSMA. This will include review of geologic logs, cross sections and maps, and existing groundwater chemistry and any isotopic data. Task 6: Complete Report Following completion of the above tasks, Spheros will prepare a draft report. The report will include the conceptual hydrogeologic model, model input and the results used to delineate the WHPAs, DWSMA, and well and aquifer vulnerability assessments. After review of the draft, a final report will be prepared which incorporates comments received from WSB, the City, and MDH staff. Supporting data files that are Project-specific and define aquifer characteristics used in the model will be delivered in ArcGIS format. Task 7: Attend Project Meetings (Virtually) Spheros is assuming three meetings total with two meetings being required by MDH: one for the required pre-delineation meeting with the MDH hydrologist; the second will be an interim meeting with Spheros and the MDH to discuss the modeling results and determine if it meets MDH’s expectations. If other meetings are necessary during the Project, Spheros will notify WSB. Spheros assumes the meetings with MDH will be held virtually. Costs also include attending one City Council meeting (virtually) at the end of the Part 1 Project, if needed. 2. TIME REQUIRED Upon receiving authorization, Spheros will initiate the Scope of Services, with an expected completion timeframe of 8 to 10 months from the notice to proceed. Delays caused by major changes in the project plans or by circumstances beyond the control of Spheros could extend the time of completion. This will allow for over half of the Project timeline ahead of the March 2029 deadline for completion of Parts 1 and 2. Spheros Environmental | www.spherosenv.com | Page 7 GENERAL TERMS AND CONDITIONS I. APPLICABILITY. These terms and conditions for services (these “Terms”) are the only terms that govern the provision of services by Spheros Group Parent, Inc. (“Spheros”) to name of the customer (“Client” and together with Spheros, the “Parties” and each, a “Party”) set forth on the accompanying order confirmation, letter, statement of work, or purchase order (the “Order Confirmation”). The Order Confirmation and these Terms (collectively, this “Agreement”) comprise the entire agreement between the Parties, and supersede all prior or contemporaneous understandings, agreements, negotiations, representations and warranties, and communications, both written and oral. In the event of any conflict between these Terms and the Order Confirmation, these Terms shall govern, unless the Order Confirmation expressly states that the terms and conditions of the Order Confirmation shall control. These Terms prevail over any of Client’s general terms and conditions regardless of whether or when Client has suWSBtted its request for proposal, order, or such terms. Provision of services to Client does not constitute acceptance of any of Client’s terms and conditions and does not serve to modify or amend these Terms. This Agreement may not be modified except by an amendment in writing, signed by both Parties. II. SERVICES; PERFORMANCE DATES. Spheros shall provide the services to Client as described in the Order Confirmation (the “Services”) in accordance with these Terms. Spheros shall use reasonable efforts to meet any performance dates specified in the Order Confirmation, and any such dates shall be estimates only. III. CLIENT’S ACTS OR OMISSIONS. If Spheros’s performance of its obligations is delayed or prevented by any act or omission of Client or its agents, subcontractors, consultants, or employees, Spheros shall not be deemed in breach of its obligations under this Agreement or otherwise liable for any costs, charges, or losses sustained by Client to the extent arising directly or indirectly from such prevention or delay. IV. COMPENSATION. For the performance of the Services, Client agrees to pay, and Spheros agrees to accept, compensation set forth in the Order Confirmation. Spheros will be compensated in US dollars for its Services on a time-and-materials or fixed- price basis. Spheros’s estimate of the cost for its Services is based on the information provided by Client, and rates, reimbursable expenses, and management fees made a part of the Agreement. Client shall be responsible for all sales, use, and excises taxes, and any other similar taxes, duties, and charges of any kind imposed by any federal, state, or local governmental entity. Client agrees to reimburse Spheros for all reasonable travel and out-of-pocket expenses incurred by Spheros in connection with the performance of the Services. In the event that the Services occur over more than one (1) calendar year or the Services start date is delayed more than ninety (90) days due to factors outside of Spheros’s sole control, Spheros may, without the approval of Client, increase its rates by the greater of: (a) five percent (5%) or (b) the United States Department of Labor, Bureau of Labor Statistics consumer price index. Spheros will provide reasonable advance notice to Client prior to any potential rate increase. Invoices are suWSBtted routinely, but no more than monthly, for time and expenses incurred or in the event of a fixed price contract as determined by the scope of work and applicable milestone for the percent of work completed. Terms of payment are net thirty (30) days. Overdue accounts are subject to an interest charge of one and a half percent (1.5%) per month and services may stop whenever payment is overdue more than sixty (60) days. Either Party may, at any time and from time to time during the term of this Agreement, request a change to the Services (each, a “Change”). Upon receipt of a request for any Change from Client, Spheros shall prepare and deliver to Client a proposal regarding the effect that such Change would have on (i) the cost of the Services, (ii) the timing for performance of the Services; and (iii) any other material aspect of this Agreement. Client and Spheros shall agree in writing on the terms applicable to any Spheros Environmental | www.spherosenv.com | Page 8 Change (each, a “Change Order”). Spheros may charge for the time it spends assessing and documenting a change request from Client on a time and materials basis. Spheros shall not implement any Change, and shall not be entitled to compensation for Services performed in respect of any Change, unless a Change Order in respect of such Change has been executed by both Parties. In the event that Spheros seeks any change to the Services such that the cost, scope, or schedule is impacted, Spheros shall within seven (7) days, notify Client in writing of the Change and promptly prepare and deliver to Client a proposal regarding the effect that such Change would have on (1) the cost of the Services, (2) the timing for performance of the Services and (3) any other material aspect of this Agreement. Notwithstanding this Section IV, Spheros may change the Services without the consent of Client provided that such changes do not materially affect the nature or scope of the Services, or the fees or any performance dates. V. OWNERSHIP OF DOCUMENTS. All intellectual property rights, including copyrights, patents, patent disclosures and inventions (whether patentable or not), trademarks, service marks, trade secrets, know-how and other confidential information, trade dress, trade names, logos, corporate names, and domain names, together with all of the goodwill associated therewith, derivative works and all other rights (collectively, “Intellectual Property Rights”) in and to all documents, work product, and other materials that are delivered to Client under this Agreement or prepared by or on behalf of Spheros in the course of performing the Services, including any items identified as such in the Order Confirmation (collectively, the “Deliverables”) except for any Confidential Information (as defined in Section VI) of Client or Client materials shall be owned by Spheros. Spheros hereby grants Client a license to use all Intellectual Property Rights free of additional charge and on a non-exclusive, worldwide, non- transferable, non-sublicensable, fully paid-up, royalty- free, and perpetual basis to the extent necessary to enable Client to make reasonable use of the Deliverables and the Services. The Client shall not re- use or make any modification to Spheros’s designs, documents or work product without the prior written authorization of Spheros, and any such authorized use or modification shall be at the sole risk of Client with no liability to Spheros. VI. CONFIDENTIALITY. From time to time during the term of this Agreement, either Party (as the “Disclosing Party”) may disclose or make available to the other Party (as the “Receiving Party”), non-public, proprietary, and confidential information of Disclosing Party (whether or not marked, designated, or otherwise identified as “confidential”) in connection with the Services (“Confidential Information”); provided, however, that Confidential Information does not include any information that: (a) is or becomes generally available to the public other than as a result of Receiving Party’s breach of this Section VI; (b) is or becomes available to the Receiving Party on a non- confidential basis from a third-party source, provided that such third party is not and was not prohibited from disclosing such Confidential Information; (c) was in Receiving Party’s possession prior to Disclosing Party’s disclosure hereunder; or (d) was or is independently developed by Receiving Party without using any Confidential Information. Spheros’s Confidential Information shall include the Services performed hereunder and the nature or results of the work performed hereunder. The Receiving Party shall: (i) protect and safeguard the confidentiality of the Disclosing Party’s Confidential Information with at least the same degree of care as the Receiving Party would protect its own Confidential Information, but in no event with less than a commercially reasonable degree of care; (ii) not use the Disclosing Party’s Confidential Information, or permit it to be accessed or used, for any purpose other than to exercise its rights or perform its obligations under this Agreement; and (iii) not disclose any such Confidential Information to any person or entity, except to the Receiving Party’s Group who need to know the Confidential Information to assist the Receiving Party, or act on its behalf, to exercise its rights or perform its obligations under this Agreement. The Receiving Party shall be responsible for any breach of the confidentiality and non-use obligations contained herein by the Receiving Party’s Group. If the Receiving Party is required by applicable law or legal process to disclose any Confidential Information, it shall, prior to making such disclosure, use commercially reasonable efforts to notify Disclosing Party of such requirements to afford Disclosing Party the opportunity to seek, at Disclosing Party’s sole cost and expense, a protective order or other remedy. For Spheros Environmental | www.spherosenv.com | Page 9 purposes of this Section VI only, “Receiving Party’s Group” shall mean the Receiving Party’s affiliates and its or their employees, officers, directors, shareholders, partners, members, managers, agents, independent contractors, service providers, sublicensees, subcontractors, attorneys, accountants, and financial advisors. The terms of this Section VI shall survive and remain in force after any termination or expiration of this Agreement. VII. HEALTH AND SAFETY. Spheros has full responsibility for safety of its employees and agents, including providing appropriate safety equipment for its field personnel. In performance of the work, Spheros shall (a) comply with applicable federal, state and local statutes, regulations and ordinances regarding health and safety, and (b) prepare and comply with its own Health and Safety Plan, as well as any Health and Safety Plan prepared by Client and delivered to Spheros prior to commencement of the Services for the site. VIII. SITE ENVIROMENTAL CONDITIONS. Client shall furnish or make available to Spheros such documents and information that relate to the identity, location, quantity, nature, or characteristics of any petroleum products, hazardous materials or asbestos at, on, or under the site. If, at any time, evidence of the existence or possible existence of such substances is discovered, Spheros reserves the right to stop work and renegotiate any consulting agreement and, the fees for our services and our continued involvement in the project. Spheros will promptly notify Client of any unanticipated hazardous materials or suspected hazardous materials it discovers. In the event that Spheros removes any pre-existing materials, Spheros may, but not shall be required to, assist the Client in characterization and handle the pre-existing materials in accordance with applicable federal, state and local laws, rules, regulations and ordinances. Client shall be responsible for signing any manifest that may be required to ship pre-existing hazardous materials off site. At no time whatsoever shall Spheros be considered or assume the responsibilities of a generator of any pre-existing petroleum, chemical or hazardous material located on or about the site where the work is performed. The discovery of hazardous materials or suspected hazardous materials may make it necessary for Spheros to take immediate measures to protect human health and safety and/or the environment. Client agrees to compensate Spheros for the cost of any and all measures that, in our professional onsite judgment are justified to preserve and protect the health and safety of our personnel, Client’s employees and/or the public, and/or the environment. In addition, Client waives any claims against Spheros and, to the full extent permitted by law, agrees to indemnify, defend and hold Spheros harmless from any and all claims, damages and liability, including but not limited to cost of defense, in any way connected with petroleum products, hazardous materials or asbestos. IX. CLIENT OBLIGATIONS AND SITE ACCESS. Client shall at its cost and at such times as may be required by Spheros for the successful and timely completion of Services: (a) provide unimpeded and timely access to any site, including third party sites if required (b) provide an adequate area for Spheros’s site office facilities, equipment storage, and employee parking; (c) furnish all construction utilities and utilities releases necessary for the Services; (d) provide the locations of all subsurface structures, including piping, tanks, cables, and utilities; (e) approve all locations for digging and drilling operations; (f) obtain all permits and licenses which are necessary and required to be taken out in Spheros’s name for the Services; (g) cooperate with Spheros in all matters relating to Services; and (h) respond and provide promptly to any Spheros requests for information, material, authorizations, approvals, or other items reasonably necessary to provide or complete Services. Spheros will not be liable for damage or injury arising from damage to subsurface structures that are not disclosed in writing to Spheros in connection with its work. X. COST ESTIMATES. If included in the Services, Spheros will provide cost estimates based upon Spheros’s experience on similar projects, which are not intended for use by Client or any other party in developing firm budgets or financial models, or in making investment decisions. Such cost estimates represent only Spheros’s judgment as a professional and, if furnished, only for Client’s general guidance and are not guaranteed as to accuracy. XI. LIMITED WARRANTY AND REMEDIES. Spheros represents and warrants to Client that it shall perform the Services with the standard of care, diligence and skill ordinarily exercised by firms Spheros Environmental | www.spherosenv.com | Page 10 providing similar services and in accordance with generally recognized industry standards. Spheros shall furnish all tools, labor, and supplies in such quantities and of the proper quality to professionally and timely perform the Services. Spheros shall not be liable for a breach of the warranty set forth in this Section XI unless Client gives written notice of the defective Services, reasonably described, to Spheros within thirty (30) days of the time when Client discovers or ought to have discovered that the Services were defective. Subject to the foregoing, Spheros shall, in its sole discretion, either (a) repair or re-perform such Services; or (b) credit or refund the price of such Services at the pro rata contract rate. THE REMEDIES SET FORTH IN THIS SECTION XI SHALL BE CLIENT’S SOLE AND EXCLUSIVE REMEDY AND Spheros’S ENTIRE LIABILITY FOR ANY BREACH OF THE LIMITED WARRANTY SET FORTH HEREIN. XII. DISCLAIMER OF WARRANTIES. EXCEPT FOR THE WARRANTY SET FORTH IN SECTION XII ABOVE, Spheros MAKES NO WARRANTY WHATSOEVER WITH RESPECT TO THE SERVICES, INCLUDING ANY (a) WARRANTY OF MERCHANTABILITY; (b) WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE; (c) WARRANTY OF TITLE; OR (d) WARRANTY AGAINST INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS OF A THIRD PARTY; WHETHER EXPRESS OR IMPLIED BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE, OR OTHERWISE. XIII. INDEPENDENT CONTRACTOR. Spheros is an independent contractor, and is responsible for the means and methods of carrying out the scope of services and for the safety of its employees and agents. Spheros retains the right to require that the services provided by Spheros meet specific standards without regard to the manner and means of accomplishment thereof. Nothing contained in this Agreement shall be construed as creating any agency, partnership, joint venture or other form of joint enterprise, employment, or fiduciary relationship between the Parties, and neither Party shall have authority to contract for or bind the other Party in any manner whatsoever. XIV. INDEMNIFICATION. Client agrees, to the fullest extent permitted by law, to defend, indemnify, and hold harmless Spheros and their respective officers, directors and employees against damages, liabilities or costs, including reasonable attorneys’ fees and defense costs, arising out of or resulting from (a) bodily injury, death of any person, or damage to real or tangible, personal property resulting from negligent or willful acts or omissions of Client and (b) Client’s breach of any representation, warranty, or obligation of Client in this Agreement. This Section XIV shall survive the expiration or termination of this Agreement. XV. LIMITATION OF LIABILITY. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR TO ANY THIRD PARTY FOR ANY LOSS OF USE, REVENUE OR PROFIT OR LOSS OF DATA OR DIMINUTION IN VALUE, OR FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL, OR PUNITIVE DAMAGES WHETHER ARISING OUT OF BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE, REGARDLESS OF WHETHER SUCH DAMAGES WERE FORESEEABLE AND WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND NOTWITHSTANDING THE FAILURE OF ANY AGREED OR OTHER REMEDY OF ITS ESSENTIAL PURPOSE. IN NO EVENT SHALL Spheros’S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT, WHETHER ARISING OUT OF OR RELATED TO BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, EXCEED THE AGGREGATE AMOUNTS PAID OR PAYABLE TO Spheros PURSUANT TO THE APPLICABLE ORDER CONFIRMATION. XVI. INSURANCE. Spheros shall procure and maintain the following insurance throughout the term of this Agreement: (a) Commercial General Liability; (b) Automobile Liability; (c) Workers’ Compensation and Employer’s Liability; and (d) Professional Liability. XVII. FORCE MAJEURE. Neither Party shall be liable nor deemed to be in default for any delay or failure in performance under this Agreement resulting from the acts of God, civil or military authority, material change of law, acts of public enemy, war, accidents, fires, explosions, earthquakes, floods, failure of transportation, regional emergencies, strikes or other industrial interruptions by either Party’s employees, or any similar or dissimilar cause beyond the reasonable control of either Party. The impacted Party shall resume the performance of its obligations as soon as reasonably practicable after the removal of the cause. In the event that the impacted Party’s failure or delay remains uncured for a period of fifteen (15) consecutive days following written, either Party may thereafter Spheros Environmental | www.spherosenv.com | Page 11 terminate this Agreement upon twenty (20) days’ written notice. XVIII. NOTICE. Any notice to be given hereunder by either Party to the other, shall be in writing and addressed to the Parties at the addresses set forth in the Order Confirmation or to such other address that may be designated by the receiving Party in writing. All notices shall be deemed given when delivered (a) in person, (b) by certified mail, return receipt requested, (c) by commercial courier that provides a receipt of delivery, or (d) by email when the receiving Party acknowledges receipt. XIX. TERMINATION FOR CONVENIENCE. Either Party may terminate all or part of this Agreement for its convenience and without cause upon giving the other Party not less than thirty (30) days written notice. In such event, Spheros shall be compensated for the Services competently performed up to and including the date of termination. XX. TERMINATION FOR DEFAULT. Either Party may terminate this Agreement for cause upon giving the other Party not less than ten (10) days written notice for any of the following reasons: (a) substantial failure by the other Party to perform in accordance with the terms of this Agreement and through no fault of the terminating Party, including lack of payment by Client; (b) assignment of this Agreement or transfer of the project by either Party to any other entity without prior written consent of the other Party; (c) suspension of the project or of the Services for more than ninety (90) days, consecutive or in the aggregate; (d) material changes in the conditions under which this Agreement was entered into, the Services or the nature of the project, and the failure of the Parties to reach agreement on the compensation; or (e) Client becomes insolvent or files a petition for bankruptcy. Either Party shall have a period of ten (10) business days from the notice of noncompliance and threatened termination to cure or correct the default. If this Agreement is terminated following default by Spheros, Client is relieved of any unpaid payment obligations owed Spheros for services performed after the default. If this Agreement is terminated following default by Client, Client shall be liable to Spheros for all unpaid compensation for Services, as well as any collection fees associated with the collection of said compensation including but not limited to, attorneys’ fees, court costs, and other related expenses up to and including the termination date. XXI. ASSIGNMENT. Client shall not assign this Agreement without the prior written consent of Spheros. Any purported assignment or delegation in violation of this Section XXI is null and void. No assignment or delegation relieves Client of any of its obligations under this Agreement. XXII. ANTI-DISCRIMINATION. The Parties hereby incorporate the requirements of 41 C.F.R. § 60-1.4(a) and 29 C.F.R. § 471, Appendix A to Subpart A, if applicable. Spheros and Client shall also abide by the requirements of 41 CFR 60-300.5(a) and 41 CFR 60- 741.5(a), if applicable. These regulations prohibit discrimination against qualified protected veterans and qualified individuals with disabilities and require affirmative action by covered prime contractors and subcontractors to employ and advance in employment qualified protected veterans and qualified individuals with disabilities. XXIII. ENFORCEMENT AND WAIVER. The failure of either Party in any one or more instances to insist upon strict performance of any of the terms and provisions of this Agreement, shall not be construed as a waiver of the right to assert any such terms and provisions on any future occasion or of damages caused thereby. XXIV. CHOICE OF LAW; JURISDICTION. This Agreement shall be administered and interpreted under the laws of the State of Colorado without giving effect to any choice or conflict of law provision. Subject to Section XXVIII, any legal suit, action, or proceeding arising out of or relating to this Agreement shall be instituted in the federal courts of the United States of America or the courts of the State of Colorado, and each Party irrevocably suWSBts to the exclusive jurisdiction of such courts in any such suit, action, or proceeding. XXV. SEVERABILITY. If any of the provisions of this Agreement shall be invalid or unenforceable, such invalidity or unenforceability shall not invalidate or render unenforceable the entire Agreement, but rather the entire Agreement shall be construed as if not containing the particular invalid or unenforceable Spheros Environmental | www.spherosenv.com | Page 12 provision or provisions, and the rights and obligations of the Party shall be construed and enforced accordingly, to effectuate the essential intent and purposes of this Agreement. XXVI. NONEXCLUSIVE NATURE. This Agreement is not exclusive. Spheros is free to provide similar services or deliverables to others. Client makes no representations or warranties as to a minimum or maximum procurement of services hereunder. XXVII. SURVIVAL. Provisions of these Terms, which by their nature should apply beyond their terms, will remain in force after any termination or expiration of this Agreement including, but not limited to, the following provisions: Confidentiality, Disputes, Compensation, Ownership of Documents, Insurance, and Survival. XXVIII. DISPUTES. In an effort to resolve any conflicts that may arise, Client and Spheros agree to resolve any claims or disputes related to this Agreement, in an amicable, professional, and expeditious manner so as to avoid unnecessary disruptions and delays to the Services. For any claim or dispute the Parties shall first attempt to resolve such claim or dispute through discussions between Client’s and Spheros’s designated representatives. If any such claim or dispute is not resolved through such discussions, the responsible executive of each Party, who shall possess the authority to resolve such matter, shall attempt to resolve such claim or dispute. Either Party may initiate discussions by written notice to the other Party setting forth the subject of the claim or dispute and the resolution sought. The Party in receipt of such notice shall respond within five (5) business days with a written statement of its position on, and recommended solution to, the claim or dispute. If the claim or dispute is not resolved by this exchange of correspondence, then the responsible senior executives of each Party shall meet at a mutually agreeable time and place within ten (10) business days from the Party’s response in an attempt to resolve the claim or dispute. Any claims or disputes between the Parties arising out of or relating to this Agreement, which have not been resolved in accordance with the procedures set forth in this Section XXVIII shall be suWSBtted to nonbinding mediation unless the Parties mutually agree otherwise. Each Party shall pay for its own costs and one-half the cost of a mutually acceptable mediator. In the event mediation is not successful, the claims or disputes between the Parties shall subject to litigation in a court of competent jurisdiction in the State of Colorado. The Parties irrevocably consent to the personal jurisdiction of said courts and waive any and all defenses of forum non conveniens, improper venue, or lack of personal jurisdiction. [***]