MINUTES FOR THE HUGO CITY COUNCIL MEETING OF AUGUST 20, 2007

MINUTES FOR THE HUGO CITY COUNCIL MEETING OF AUGUST 20, 2007 Mayor Fran Miron called the meeting to order at 7:03 pm. PRESENT: Granger, Haas, Petryk, Puleo, Miron City Administrator Mike Ericson, CD Director Bryan Bear, City Attorney Dave Snyder, City Engineer Jay Kennedy, Building Official John Benson, PW Director Chris Petree, Finance Director Ron Otkin, and City Clerk Mary Ann Creager APPROVE MINUTES FOR CITY COUNCIL MEETING OF AUGUST 6, 2007 Haas made motion, Petryk seconded, to approve the minutes for the August 6, 2007 meeting as presented. APPROVE MINUTES FOR CITY COUNCIL MEETING OF AUGUST 7, 2007 W/PAUL HUGO FARMS WMA ADVISORY TEAM The minutes for this meeting should reflect that Mayor Miron abstained from discussions. Puleo made motion, Petryk seconded, to approve the minutes for the August 7, 2007 meeting with the Paul Hugo Farms WMA Advisory Team as amended. MINUTES FOR CITY COUNCIL MEETING OF AUGUST 13, 2007 (RURAL & OPEN SPACE ORDINANCE Haas made motion, Petryk seconded, to table approval of minutes until meeting of September 4, 2007. All aye. Motion Carried APPROVAL OF AGENDA Add F.3 Activities on Ethan Avenue (Sgt. Wayne Johnson) Add M.1 Update on Everton/Ethan/120 th /122th Streets at Council meeting of September 4, 2007 Miron made motion, Haas seconded, to approve the agenda for August 20, 2007 as amended. WBL SCHOOL LEVY REPORT FROM WBL SUPT TED BLAESING AND PRINCIPAL TERRY DAHLEM The WBL School District officials have scheduled a family picnic on September 11 th at Hugo Lions Park at which the Hugo City Council has scheduled a public meeting in order to attend. City staff invited WBL School superintendent Ted Blaesing and Oneka Elementary School principal Terry Dahlem to address Council and residents with information regarding the operating levy scheduled for a

referendum City Council meeting of August 20, 2007 Page 2 in November. WBL School board member Lorie Swanson provided Council with an overview of the upcoming operating levy referendum and introduced the others present from the school board. Mayor Miron noted that the City Council is projecting a tax rate reduction again this year and hopes that residents living in the WBL school district will consider this at voting time. PRESENTATION OF PLAQUE FROM WBL NE916 STUDENTS FOR HUGO BUILDING INSPECTION DEPT As Council is aware, the WBL School District NE916 students constructed a home in the Heritage Ponds development, just west of Oneka Elementary School. Former 916 Director Mike Smoczyk provided City staff with an inspection of the home, which was built with both NE916 students and local trades people. The quality of the home is excellent and it is currently for sale by a local realtor, who is donating his regular fees. Mike reported that the project superintendent was so impressed by the level of professional service provided by the Hugo building inspection department that they wish to present a plaque to the department on behalf of all the 916 students, more than 30 who helped construct the house. 916 Board of Directors Vice Chair Rolf Parsons presented building official John Benson the plaque on behalf of the Hugo building department and John recognized his coworkers inspectors, Scott Baller and Chuck Preisler, and building department secretaries, Eileen Ottney and Debi Close. DISCUSSION ON ACTIVITIES ON ETHAN AVENUE Council member Becky Petryk stated that after the recent rains last weekend, there were a number of youths were using Ethan Avenue for mudding with their trucks and getting stuck. Sergeant Wayne Johnson addressed Council and stated that deputies were called and citations issued for going around barricades. As the road is currently under construction, the potential for damage existed. PW Director Chris Petree will discuss proper signage with staff and the contractor. CONSENT AGENDA Haas made motion, Granger seconded, to approve the following Consent Agenda: Approval of Claims Approve Charitable Gambling License for Northern Star Council BSA to Conduct Raffle at Wild Wings on October 11, 2007 Approve Pay Request #2 from Arcon Construction Inc for Work Completed to Date on Oakshore Park P.I. Project Approve Rescheduling of First Council Meeting in September to September 4, 2007 Approve Annual Performance Review for PW Mechanic Dave Greeder Approve Annual Performance Review for Senior Engineering Technician Scott Anderson Approve Annual Performance Review for PW Worker Jeff Maas Approve Site Plan and CUP for Building Addition at 15817 Forest Blvd. (Gusset Design) Approve Authorization to Solicit Quotes for Demolition of Houses at 14635/14655 Forest Blvd. Approve Tuition Reimbursement for PW Worker Rick Kieffer Approve Addendum to Encroachment Agreement for Utility Easement at 6515 175 th St (LaNasa) Approve Authorization to Advertise for Construction of Well House No. 5

Approval of Resolution Making Substandard Findings for House at 14635 Forest Blvd North City Council meeting of August 20, 2007 Page 3 Approval of Resolution Making Substandard Findings for House at 14655 Forest Blvd North Approval of Resolution Making Substandard Findings for House at 14593 Forest Blvd North APPROVAL OF CLAIMS Adoption of the Consent Agenda approved the claims roster for August 20, 2007 as presented. APPROVE CHARITABLE GAMBLING FOR NORTHERN STAR COUNCIL BSA TO CONDUCT RAFFLE AT WILD WINGS ON OCTOBER 11, 2007 City staff has received an application from the Northern Star Council BSA for a charitable gambling license in order to conduct a raffle on October 11, 2007 at the Wild Wings game farm. City staff has reviewed the application and found it to be satisfactorily complete. Adoption of the Consent Agenda approved the charitable gambling license for the Northern Star Council BSA to conduct a raffle on October 11, 2007 at the Wild Wings game farm. APPROVE PAY REQUEST #2 FROM ARCON CONSTRUCTION INC FOR WORK COMPLETED TO DATE ON OAKSHORE PARK P.I. PROJECT City staff has received pay request #2 from Arcon Construction Inc for work completed to date on the Oakshore Park P.I. project. Senior Engineering Tech Scott Anderson has reviewed the pay request and found it to be satisfactory for work completed to date on the project. Adoption of the Consent Agenda approved pay request #2 in the amount of $295,448.63 from Arcon Construction Inc for work completed to date on the Oakshore Park P.I. project. APPROVE RESCHEDULING OF FIRST COUNCIL MEETING IN SEPTEMBER TO SEPTEMBER 4, 2007 The first meeting in September falls on the Labor Day Federal Holiday. Adoption of the Consent Agenda moved the first Council meeting in September to Tuesday, September 4, 2007 at 7:00 pm. APPROVE ANNUAL PERFORMANCE REVIEW FOR PW MECHANIC DAVE GREEDER Dave Greeder was hired by the City as its new mechanic on August 8, 2005. Over the past two years, Dave has provided an excellent level of professional mechanic services for the public works department s vehicles and equipment, as well as the Hugo fire department s equipment. He has organized the regular maintenance of all of the vehicles, which extends the life of all vehicles and equipment. Dave has also provided a wide variety of duties in the public works department, from snow plowing to meter reading. Dave has an excellent work ethic and is well respected within his department and at City Hall. Adoption of the Consent Agenda approved the annual performance review for mechanic Dave Greeder

City Council of August 20, 2007 Page 4 APPROVE ANNUAL PERFORMANCE REVIEW FOR SENIOR ENGINEERING TECHNICIAN SCOTT ANDERSON Scott Anderson was hired as the City s new senior engineering technician on August 11, 2003. He is a reliable and conscientious employee, who has excellent communication skills. Scott is the City s point person on major construction projects, and he represents the City s position in a firm, yet professional manner. Scott is well respected by the contractors and he has an excellent sense of humor. Adoption of the Consent Agenda approved the annual performance review for Senior Engineering Technician Scott Anderson. APPROVE ANNUAL PERFORMANCE REVIEW FOR PW WORKER JEFF MAAS Jeff Maas was hired as the City s new public works worker on July 24, 2006. Over the past year, Jeff has worked hard and demonstrated an excellent work ethic in performing a wide variety of public works maintenance duties. Jeff is reliable and a very competent employee and he provides an excellent level of customer service to our residents and business owners. Adoption of the Consent Agenda approved the annual performance review for public works worker Jeff Maas. APPROVE SITE PLAN AND CUP FOR BUILDING ADDITION AT 15817 FOREST BOULEVARD (GUSSET DESIGN) Rick Burr requested a site plan approval for an addition to an existing building located at 15587 Forest Boulevard North. The current use is a legal non-conforming use because the property is zoned General Business (C-2) and the use is industrial. The existing building totals 5,740 square feet and is used for office, manufacturing and warehousing. The building addition totals 12,060 square feet and will be used for warehousing equipment utilized by the business. In order to build the addition the applicant has applied for a conditional use permit (CUP) to expand the legal non-conforming use. The CUP can only be approved with findings that the expansion will reduce the impacts of the legal non-conforming use on the surrounding properties The applicant has stated that the exterior storage currently outside of the building will be put inside with the building addition; thus, reducing the impact of the industrial use on the surrounding properties. At its August 9, 2007 meeting the Planning Commission reviewed the site plan and the conditional use permit and recommended approval. The approving vote was 3-0-1. Adoption of the Consent Agenda approved Resolution 2007-41 for the site plan and Resolution 2007-42 for the conditional use permit. APPROVE AUTHORIZATION TO SOLICIT QUOTES FOR DEMOLITION OF HOUSES AT 14635 AND 14655 FOREST BLVD. City staff is seeking authorization from Council to proceed with the solicitation of quotes for demolition of the houses and 14635 and 14655 Forest Blvd. Over the past several years, the tenants in the houses have failed to maintain the interiors of the houses and they are in poor condition. City staff has personally inspected the homes, and the public works department determined that a significant amount of money is necessary to bring these buildings up to code. Adoption of the Consent Agenda authorized staff to proceed with the solicitation of quotes for the demolition of the houses at 14635 and 14655 Forest Blvd.

City Council meeting of August 20, 2007 Page 5 APPROVE TUITION REIMBURSEMENT FOR PW WORKER RICK KIEFFER In 2006, the Hugo City Council revised the City s personnel policy to allow tuition reimbursement for City employees who are taking additional training or education classes that would improve their level of competency in the completion of their day-to-day duties. PW worker Rick Kieffer has requested approval for tuition reimbursement to take an Introduction to Horticulture class at Century College. Adoption of the Consent Agenda approved the tuition reimbursement for public works worker Rick Kieffer. APPROVE ADDENDUM TO ENCROACHMENT AGREEMENT FOR UTILITY EASEMENT AT 6515 175 TH STREET (LANASA) On May 21, 2007, the Hugo City Council approved a conditional use permit for a shared driveway at 6515 175th Street for Mark LaNasa to access a five acre landlocked parcel to allow for the construction of a home. The approval included an encroachment agreement between the City, Mark LaNasa, and the new property owner. The encroachment agreement did not include conditions for utilities to be installed within the easement to the five acre parcel. The addendum will allow utilities to be constructed on the easement to the five acre parcel with conditions. Adoption of the Consent Agenda approved the addendum to the encroachment agreement for Mark LaNasa at 6515 175 th Street to include a utility easement. APPROVE AUTHORIZATION TO ADVERTISE FOR CONSTRUCTION OF WELL HOUSE NO. 5 In November 2006, the Hugo City Council awarded the contract for the construction of well #5 to Keys Well Drilling. Progress on the construction of well #5 has proceeded satisfactorily and it is now time to proceed with advertisement for the construction of the well house. Adoption of the Consent Agenda authorized City staff to advertise for the construction of well house #5. APPROVAL OF RESOLUTION MAKING SUBSTANDARD FINDINGS FOR HOUSE AT 14635 FOREST BLVD NORTH Consistent with the tax increment financing (TIF) plan approve by Council, bond counsel Mary Ippel requested that Council approve a resolution and adopt the findings of fact for the substandard conditions of houses located in the TIF district. City staff inspected a number of houses in the district, including those owned by the City of Hugo, and found them to be substandard. Adoption of the Consent Agenda adopted Resolution 2007-43 making substandard findings for the house at 14635 Forest Blvd. APPROVAL OF RESOLUTION MAKING SUBSTANDARD FINDINGS FOR HOUSE AT 14655 FOREST BLVD NORTH Consistent with the tax increment financing (TIF) plan approve by Council, bond counsel Mary Ippel requested that Council approve a resolution and adopt the findings of fact for the substandard conditions of houses located in the TIF district. City staff inspected a number of houses in the district, including those owned by the City of Hugo, and found them to be substandard. Adoption of the Consent Agenda adopted Resolution making 2007-44 substandard findings for the house at 14655 Forest Blvd.

City Council meeting of August 20, 2007 Page 6 APPROVAL OF RESOLUTION MAKING SUBSTANDARD FINDINGS FOR HOUSE AT 14593 FOREST BLVD NORTH Consistent with the tax increment financing (TIF) plan approve by Council, bond counsel Mary Ippel requested that Council approve a resolution and adopt the findings of fact for the substandard conditions of houses located in the TIF district. City staff inspected a number of houses in the district, including those owned by the City of Hugo, and found them to be substandard. Adoption of the Consent Agenda adopted Resolution 2007-45 making substandard findings for the house at 14593 Forest Blvd. APPROVE CHARITABLE GAMBLING LICENSE FOR THE BAYPORT AMERICAN LEGION TO SELL PULLTABS AT SAL S ANGUS GRILL Council member Chuck Haas requested this item be removed from the Consent Agenda for discussion. City staff reviewed an application from the Bayport American Legion for a charitable gambling license in order to conduct a pull tab operation at Sal s Angus Grill. City staff reviewed the application and found it to be satisfactorily complete. The Bayport American Legion pledges to keep the funds local in order to serve the needs of our community. Chuck questioned how the gambling profits have been distributed, and gambling manager, Marion Zimney, stated that funds were available for Hugo but had no requests for money. City staff will communicate this information to local groups who could benefit. Haas made motion, Petryk seconded, to approve the charitable gambling license for the Bayport American Legion for the sale of pull tabs at Sal s Angus Grill at 12010 Keystone Avenue. APPROVE RESOLUTION SETTING SALE OF G.O. IMPROVEMENT BONDS (OAKSHORE PARK/129 TH STREET PROJECT) Council members Petryk and Granger requested this issue be removed from the Consent Agenda as they cannot vote on issues related to the Oakshore Park P.I. project. Council considered a resolution authorizing the sale of $1,230,000 in General Obligation Improvement Bonds. These bonds will be repaid solely from special assessments. The actual sale of the bonds will occur at the September 17, 2007 regular City Council meeting. The Finance Director will assist with the preparation of the official statement and will arrange to have the issue rated by Moody s Investor Services. Haas made motion, Puleo seconded, to adopt RESOLUTION 2007-46 PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $1,230,000 G.O. IMPROVEMENT BONDS, SERIES 2007A. VOTING AYE: Haas, Puleo, Miron ABSTAINED: Granger and Petryk Motion Carried.

City Council meeting of August 20, 2007 Page 7 PUBLIC HEARING CONSIDERATION OF AMENDMENT TO CITY S PUBLIC NUISANCE ORDINANCE WEEDS AND TALL GRASS City staff scheduled a public hearing for August 20, 2007 on or after 7:00 pm in order to allow the public to comment on the proposed amendment to the City s public nuisance ordinance. At its August 9, 2007 meeting, the Planning Commission considered the amendment and unanimously recommended Council approve it, to regulate the weeds and tall grass in excess of 10 in the City. This issue has been discussed by City staff and the special subcommittee for some time, and the City code is nonspecific in terms of the regulation of tall grass and/or weeds. Mayor Fran Miron opened the public hearing for any and all public comment regarding the proposed amendment to the City s public nuisance ordinance to regulate tall grass and or weeds. Jess Roush, 4776 126 th Street, questioned the formal complaint process and how the City would respond. He also provided photos of certain areas in the City that had weed cover. There were no other written or oral comments and Mayor Miron closed the public hearing. Haas made motion, Granger seconded, to adopt ORDINANCE 2007-410 AMENDING CHAPTER 200 PLACING REQUIREMENTS ON NOXIOUS WEEDS AND TALL GRASS. VOTING AYE: Granger, Haas, Petryk, Puleo, Miron Motion Carried. APPROVE AMENDMENT TO CUP FOR BALD EAGLE SPORTSMAN ASSOCIATION As a member of BESA, Council member Puleo did not partake in Council discussion. At its August 6, 2007 meeting, Council considered an amendment to the CUP for the operation of the Bald Eagle Sportsman Association. Council took comments from representatives of the gun club and Kevin Rhodes, who represented neighbors. After discussion with City Attorney Dave Snyder, he requested that Council include some appropriate language related to the conditions of the CUP related to state statute. Council agreed to table the issue to its next regular meeting in order to allow the City Attorney to make some necessary revisions. CD Director Bryan Bear provided a PowerPoint presentation of the history of the application. Miron made motion, Haas seconded, to adopt RESOLUTION 2007-47 APPROVING A MODIFICATION TO A SUP FOR BESA AND ENCOURAGING CONTINUED RESPONSIBLE OPERATION OF THE SHOOTING RANGE. VOTING AYE: Granger, Haas, Petryk, Miron ABSTAINED: Puleo Motion Carried. Petryk made motion, Granger seconded, authorizing the formation of a committee to work towards goals outlined in the resolution, consisting of Mayor Fran Miron, Council member Chuck Haas, who act as Chair, Kevin Rhodes, representing neighbors, and a representative(s) from BESA. VOTING AYE: Granger, Haas, Petryk, Miron ABSTAINED: Puleo

Motion Carried. City Council meeting of August 20, 2007 Page 8 DISCUSSION OF AUGUST 13 TH COUNCIL MEETING ON REVISED OPEN SPACE PRESERVATION ORDINANCE Council held a meeting on August 13, 2007 and invited residents living in the eastern rural area of the City to provide comment on the proposed revisions to the City s rural and open space preservation ordinance, with a new recommended name change of open space preservation ordinance. City staff mailed out more than 700 post cards to residents and Council was pleased with the over flow crowd of residents and property owners living in the rural eastern area of the City. Council received comments from thirty residents, who both supported the work of the task force who provided the original ordinance, as well as the residents who were not supportive of the original and/or revised ordinance. Council agreed to place this issue on its August 20 th agenda in order to allow Council discussion on the revisions made to the ordinance by the Hugo Planning Commission last month, as well as discussion on whether it should be abolished or whether a moratorium should be considered. After a lengthy discussion by the Mayor and Council members: Miron made motion, Granger seconded, to forward the Open Space Preservation ordinance to the Planning Commission for simplification, with a maximum density of 8 lots per 40 acres, and that the City begin the process of reviewing the City s planning policy through the 2008 comprehensive plan discussions. Council provided a three-month timeline for the Planning Commission to complete this directive. CONSIDER RECOMMENDATION FROM PARKS AND RECREATION COMMISSION TO EXPAND MEMBERSHIP At its August 6, 2007 meeting, Council listened to Council member Mike Granger, who reported that the City Council was very pleased with the quality of the applicants for the vacancy on the Parks and Recreation Commission. He and Mayor Miron met with Commission Chair, Roger Clarke, to discuss and bring forth a suggestion to expand the membership from seven to nine to allow for additional residents the volunteer service. At its August 8, 2007 meeting, the Parks and Recreation Commission agreed to recommend to Council the expansion of the commission membership from seven to nine due to the temporary absence of a few of the commissioners during the calendar year. Granger made motion, Haas seconded, directing City staff to amend City ordinance that created the Parks and Recreation Commission expanding the membership from seven to nine and appoint Jim Taylor, Noel Schmidt, and Dave Strub as the three new members on the Hugo Parks and Recreation Commission, with terms set to expire in 2008, as well new terms set by City ordinance. CONSIDER DRAFT REVISION TO CITY DOG ORDINANCE At its July 16, 2007 meeting, Council considered a request from the Parks Commission to review the

City s current dog ordinance regulating the handling of dogs by residents. Specifically, there were a City Council meeting of August 20, 2007 Page 9 number of people with dogs at the Hugo Good Neighbor Days, who did not have their dogs on a leash, which caused some issues with parents and small children. Council agreed to direct City staff to have the Parks and Recreation Commission consider the request at its next regularly scheduled meeting and to submit forth a recommendation. At its August 8, 2007 meeting, the Parks Commission considered an amendment to the City s current ordinance, which would require dogs to be leashed in City parks which are considered active parks. The recommended revision to the City ordinance is very simple and it states that all dogs that are within an active City park shall be under the physical control by leash of the owner, a member of the owner's immediate family, or a person designated by the owner. Miron made motion, Granger seconded, directing staff to schedule a public hearing for Monday, September 17, 2007 at 7:00 pm, to consider amending the City s dog ordinance. SCHEDULE VOLUNTEER COMMISSIONS AND CITY STAFF POTLUCK APPRECIATION PICNIC FOR SEPTEMBER 15, 2007 At its August 6, 2007 meeting, Council considered the scheduling of a family picnic at which to publicly recognize and thank City volunteers and their families, who provide service to the City of Hugo. Council directed City staff to select a date and time on which to hold the volunteer commissions picnic and City staff reviewed the calendar and selected Saturday, September 15, 2007 after the City s first ever community-wide cleanup scheduled at the Hugo public works building. Miron made motion, Haas seconded, to Saturday, September 15 th at 1:00 pm to hold the City s first-ever volunteer commissions and City staff potluck appreciation picnic and direct staff to publish as a special Council meeting. DISCUSSION ON HUGO ELEMENTARY SCHOOL AREA STREET RECONSTRUCTION PROJECT At its August 6, 2007 meeting, Council considered a request from a resident who lives on Foxhill Avenue in the Hugo Elementary School neighborhood who would like his street reconstructed. Council directed City staff to hold a neighborhood meeting with residents living in and around the area to explain the project in more detail. On Monday, August 13, 2007, City Engineer Jay Kennedy and PW Director Chris Petree met with resident Hank Schnider to discuss his request for a street reconstruction project. Jay provided Council with an update on the meeting. Miron made motion, Haas seconded, directing City staff to schedule a Hugo Elementary School neighborhood meeting in September 2007 to discuss a road reconstruction project.

City Council meeting of August 20, 2007 Page 10 SCHEDULE INTERVIEWS FOR VACANCY ON BOARD OF ZONING APPEALS The deadline for submittal of applicants for the vacancy on the Hugo Board of Zoning Appeals was Friday, August 10, 2007. Staff announced that it has received three applications from residents who want to volunteer on the Zoning Appeals Board to replace the now retired Board member, Bernie Brunotte. Miron made motion, Petryk seconded, to schedule a special Council meeting for Monday, August 27, 2007, Hugo City Hall, at 7:00 pm, to conduct interviews for the vacancy on the Board of Zoning Appeals. DISCUSSION ON PROPOSED CITY POLICY ON SANITARY SEWER MAINTENANCE PW Director Chris Petree has been working with representatives from the League of Minnesota Cities Insurance Trust to develop a City policy that would regulate how the City of Hugo performs its regular sanitary sewer maintenance activities. As Council is aware, the LMCIT recommends that cities adopt policies under which they perform regular and routine maintenance activities in order to minimize and reduce insurance liability claims. Because of the late hour: Granger made motion, Puleo seconded, to table discussion of this matter to a later date. DISCUSSION OF PROPOSED IMPROVEMENTS TO ETHAN/EVERTON/120 TH /122 ND City Administrator Mike Ericson stated that an update on this proposed project will be on the City Council agenda for September 4, 2007. ADJOURNMENT Haas made motion, Petryk seconded, to adjourn at 10:00 pm. Mary Ann Creager City Clerk