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HomeMy WebLinkAbout2026.05.04 CC MinutesMINUTES City Council Meeting City Hall Council Chambers Monday, May 4, 2026 7:00 p.m. Call to Order Acting Mayor Miron called the meeting to order at 7:00 p.m. Roll Call and Pledge of Allegiance COUNCIL PRESENT: Krull, Miron, Petryk, Strub COUNCIL ABSENT: Weidt 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 April 18, 2026, Kidz ‘n Biz Event Strub made motion, Krull seconded, to approve the minutes for the Kidz ‘n Biz Event held on April 18, 2026, as presented. All Ayes. Motion carried. Approve Minutes for the April 20, 2026, City Council Meeting Krull made motion, Strub seconded, to approve the minutes for the City Council meeting held on April 20, 2026, as presented. All Ayes. Motion carried. Approve Minutes for the April 23, 2026, Joint Workshop on Zoning Codes Strub made motion, Krull seconded, to approve the minutes for the Joint Workshop with the Planning Commission on Zoning Codes held on April 23, 2026, as presented. All Ayes. Motion carried. Approval of Agenda Miron made motion, Petryk seconded, to approve the agenda as amended to reschedule the City Administrator’s performance review. All Ayes. Motion carried. Council Meeting Minutes for May 4, 2026 Page 2 of 6 Approval of Consent Agenda Miron made motion, Petryk seconded, to approve the following Consent Agenda: 1. Approve Claims Roster 2. Approve Annual Performance Review for Parks Planner Shayla Denaway 3. Approve Annual Performance Review for Public Works Parks Lead Worker Rick Kieffer 4. Approve Hiring of Public Works Summer Seasonal Positions 5. Approve Donation to the Hugo Fire Department from the Hugo American Legion 6. Approve Resolution Approving Cannabis Microbusiness Registration for Mi Sota Essence Cannabis, LLC 7. Approve Water Surface Use Permit for Slalom Course on Sunset Lake All Ayes. Motion carried. Approve Claims Roster Adoption of the Consent Agenda approved the Claims Roster as presented. Approve Annual Performance Review for Parks Planner Shayla Denaway Shayla Denaway was hired on May 11, 2009, as the Economic Development/Parks Intern. On May 3, 2010, Council approved promoting Shayla to Parks Planner. Approval of the Consent Agenda approved the annual performance review for Parks Planner Shayla Denaway. Approve Annual Performance Review for Public Works Parks Lead Worker Rick Kieffer Rick Kieffer was rehired by the City of Hugo as a Public Works Worker on May 31, 2005, returning after a short period of time in the private sector. In April 2023 Rick was promoted to Public Works Parks Lead Worker. Approval of the Consent Agenda approved the annual performance review for Public Works Parks Lead Worker Rick Kieffer. Approve Hiring of Public Works Summer Seasonal Positions At the April 6, 2026, Council meeting, Council approved the hiring of five seasonal employees. Since that meeting, one of the seasonal employees received an offer for a summer internship in the field of his education goals and will not be joining the City. Also, a regular full-time employee is expected to be out on medical leave for much of the summer. Staff requested Council approval to hire two seasonal employees for the Public Works Department. Approval of the Consent Agenda approved the rehiring of last year’s seasonal employee, Adler Siebenaler and the hiring of new seasonal, Ben Clausen. Council Meeting Minutes for May 4, 2026 Page 3 of 6 Approve Donation to the Hugo Fire Department from the Hugo American Legion The Hugo American Legion would like to donate $1,000 to the Hugo Fire Department from pull- tab proceeds for equipment. All donations to the Fire Department must be approved by the Council. Approval of the Consent Agenda approved the donation of $1,000 to the Hugo Fire Department. Approve Resolution Approving Cannabis Microbusiness Registration for Mi Sota Essence Cannabis, LLC. The applicant, Mi Sota Essence Cannabis, LLC, had requested approval of a cannabis microbusiness registration that would allow for cultivation, production of consumer products, and retail operations. The business is proposed to operate under the name Carma Cannabis. The microbusiness’ primary use would be cultivation of cannabis flower and production of consumer products with cannabis flower, with an accessory use of retail sales of products manufactured on site. The applicant had received preliminary license approval from the Minnesota Office of Cannabis Management (OCM) and was requesting this registration to hold one of the two available retail registrations within the City while they develop their final plans of record and apply for full state license approval. The registration would not become effective until the applicant received full state license approval. Approval of the Consent Agenda approved RESOLUTION 2026-11 APPROVING A CANNABIS MICROBUSINESS REGISTRATION FOR MI SOTA ESSENCE CANNABIS, LLC. Approve Water Surface Use Permit for Slalom Course on Sunset Lake Dave Strub made application to the City of Hugo for a Water Surface Use Permit to allow water skiing on the slalom course on Sunset Lake. The Washington County Sheriff’s Department issues the permit after City Council approval. Adoption of the Consent Agenda approved the application for a Water Surface Use Permit for a slalom water skiing course on Sunset Lake. Improvement Hearing for 2026 Bald Eagle Industrial Park Area Street Project On February 27, 2025, the City Council authorized the preparation of a feasibility study for the 2026 Bald Eagle Industrial Park Area Street Improvement Project. City Council accepted the completed study at the November 17, 2025, Council meeting. At the April 6, 2026, City Council meeting, Council called for a Public Hearing to be held this evening, May 4, 2026. City Engineer Mark Erichson reviewed the project location showing which streets and trails in the Bald Eagle Industrial Park area were proposed to be improved and explained how roadways are rated on their condition every three years. That information is used to develop the City’s five-year Capital Improvement Plan (CIP). The project identified for this year includes the streets in the BEIP area. He displayed photos of existing conditions showing deterioration of the roadways and patching stating the desire to address the issues before they become too costly. Mark explained the proposed improvements involve partial reconstruction for the majority of the project noting that the lighting along Fenway Boulevard is not included in the bid because the contract with Xcel Energy is still being worked on. He reviewed the proposed trail improvements, which would not be included in the assessed cost. Other minor improvements Council Meeting Minutes for May 4, 2026 Page 4 of 6 included mill and overlay for Fenway Boulevard Court North and a portion of 130th Street North and the demolition of the building and removal of the watermain at Watertower Park. Erichson explained that the assessment process follows Minnesota State Statute Chapter 429 that requires two public hearings, both of which will be held this evening. Many other meetings had been held previously with businesses and residents in the project area. The total project cost have been identified to be $4,678,426 with the amount to be funded by assessments at $1,021,356.84. Assessments can be prepaid or spread over ten-year period at an interest rate of 4.55%. He explained the senior citizen deferral process noting that interest does occur. Written objections can be provided at this hearing and notice of appeal can be filed within 30 days after adoption of the assessment. Parcels would be assessed according to the City’s Assessment Policy last reviewed in 2013 pointing out that costs have increased leaving the City to take a larger share of the project costs. Rates would be $4,100 per unit for the partial reconstruction and $2,100 per unit for the urban roadway overlay. Commercial and industrial properties are based on a front footage basis. He presented a map that showed the assessment area. Erichson talked about the public engagement done with a majority of the businesses regarding construction impacts in addition to neighborhood meetings and meetings with residents on properties that are not being assessed. There will be full closure on some roads and a proposed one-way traffic loop to always guarantee access to TH61. Construction is expected to last three months. Staff will be working closely with businesses on access to their properties. If the improvements and award of contract were approved this evening, construction would take place from June through September 2026. Krull made motion, Petryk seconded, to open the public hearing on ordering the project. Fred Rau, 4949 130th Street North asked about pedestrian options on 130th Street noting the communal mailboxes are down the street and he had concerns regarding traffic. Erichson explained there were options to add a trail but there is limited roadway, so widening it to meet City standards was preferred. Erichson stated that it will be monitored; Washington County Sheriff’s deputies will be on site while the roadway is new to set the standard for those who use it and will issue citations if necessary. Dan Cornell, 4859 130th Street North asked if the road will be open to local traffic only. Erichson replied that 130th, 132nd, and 134th Streets will be closed at Fenway Boulevard. Residents in those neighborhoods will have to exit west due to limit the amount of traffic going through the construction zone to exit at 140th and TH61. Mailings will be sent to property owners during construction to keep them informed of construction related matters. Miron made motion, Petryk seconded, to close the public hearing. All Ayes. Motion carried. Council Meeting Minutes for May 4, 2026 Page 5 of 6 Petryk made motion, Strub seconded, to approve RESOLUTION 2026-12 ORDERING THE PROJECT FOR 2026 BALD EAGLE INDUSTRIAL PARK AREA STREET IMPROVEMENT PROJECT. Roll call vote- Ayes: Krull, Petryk, Strub, Miron Nays: None Assessment Hearing for 2026 Bald Eagle Industrial Park Area Street Project Petryk made motion, Strub seconded, to open the assessment hearing. All Ayes. Motion carried. Erichson commented that the Finance Director would be sending out letters later this week to property owners regarding options for payments noting that property owners who wished to pay the assessment before it is certified to the Couty had until November 15, 2026, to do so. There were no other comments, and Miron made motion, Krull seconded, to close the public hearing. Petryk made motion, Krull seconded, to approve RESOLUTION 2026–13 ADOPTING ASSESSMENTS FOR THE 2026 BALD EAGLE INDUSTRIAL PARK AREA STREET IMPROVEMENT PROJECT. Roll call vote- Ayes: Petryk, Strub, Krull, Miron Nays: None Motion carried. Approve Resolution Receiving Bids and Awarding the Contract for the 2026 Bald Eagle Industrial Park Area Street Project City Engineer Mark Erichson explained that four bids for the 2026 Bald Eagle Industrial Park Area Street Improvement Project were received on April 29, 2026. The bid range for the project was from $3,774,283.50 to $5,095,769.33 with the engineer’s estimate being $4,337,315.60. The bids included the base bid, alternate 1 (140th Street trail), Alternate 2 (Fenway Boulevard trail), Alternate 3 (additional driveway at Wilson Tool) and provisional items that are uniform for all bidders. Wilson Tool had requested the City exclude the award of alternate 3 as they do not want to move forward with the driveway addition at this time. Staff recommended the Council award a contract for the base bid, alternate 1, alternate 2, and provisional items in the amount of $3,572,331.00 to Bituminous Roadways, Inc. based on the results of the bids received. Council Meeting Minutes for May 4, 2026 Page 6 of 6 Krull made motion, Petryk seconded to approve RESOLUTION 2026-14 RECEIVING BIDS AND AWARDING A CONTRACT FOR THE 2026 BALD EAGLE INDUSTRIAL PARK AREA STREET IMPROVEMENT PROJECT. Roll call vote- Ayes: Strub, Krull, Petryk, Miron Nays: None Motion carried. Schedule Commissioner Interviews City Administrator Bryan Bear asked Council to discuss scheduling interviews for vacant positions on the commissions and recommended waiting until July in hopes there will be additional candidates. He asked Council to encouraged others to apply. Miron made motion, Krull seconded, to schedule commissioner interviews for Wednesday, July 22, 2026, at 6 p.m. All Ayes. Motion carried. Reschedule Annual Performance Review for City Administrator Bryan Bear on Monday, May 4, 2026 The performance review for City Administrator Bryan Bear scheduled for this evening was postponed due to the inability of the full Council to attend. Strub made motion, Petryk seconded, to reschedule the performance review to Monday, May 18, 2026, at 6:00 p.m., one hour prior to the City Council meeting. All Ayes. Motion carried. Adjournment Strub made motion, Krull seconded, to adjourn at 7:44 p.m. All Ayes. Motion carried. Respectfully Submitted, Michele Lindau, City Clerk