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HomeMy WebLinkAbout2006 10-09 CCP Regular Session AGENDA CITY COUNCIL STUDY SESSION October 09, 2006 6:00 P.M. City Council Chambers A copy of the full City Council packet is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 1. City Council Discussion of Agenda Items and Questions 2. Discussion of Work Session Agenda Items as Time Permits 3. Miscellaneous 4. Adjourn CITY COUNCIL MEETING City of Brooklyn Center October 9, 2006 AGENDA 1. Informal Open Forum With City Council 6:45 p.m. provides an opportunity for the public to address the Council on items which are not on the agenda. Open Forum will be limited to 15 minutes, it is not televised, and it may not be used to make personal attacks, to air personality grievances, to make political endorsements, or for political campaign purposes. Council Members will not enter into a dialogue with citizens. Questions from the Council will be for clarification only. Open Forum will not be used as a time for problem solving or reacting to the comments made but, rather, for hearing the citizen for informational purposes only. 2. Invocation 7 p.m. 3. Call to Order Regular Business Meeting —The City Council requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 4. Roll Call 5. Pledge of Allegiance 6. Council Report 7. Approval of Agenda and Consent Agenda —The following items are considered to be routine by the City Council and will be enacted by one motion. There will be no separate discussion of these items unless a Councilmember so requests, in which event the item will be removed from the consent agenda and considered at the end of Council Consideration Items. a. Approval of Minutes Councilmembers not present at meetings will be recorded as abstaining from the vote on the minutes. 1. September 25, 2006 Study Session 2. September 25, 2006 Regular Session 3. September 25, 2006 Work Session b. Licenses C. Resolution Appointing Election Judges d. Performance Guarantee Release for Estates of Riverwood CITY COUNCIL AGENDA -2- October 9, 2006 8. Planning Commission Items a. Planning Commission Application No. 2006 -011 submitted by Harvestime Global Ministry. Request for Special Use Permit approval to allow a church use in an I -1 zone at 6820 Shingle Creek Parkway. The Planning Commission recommended approval of this application at their September 28, 2006, meeting. •Requested Council Action: Motion to approve Planning Commission Application No. 2006 -011 subject to the conditions recommended by the Planning Commission. 9. Council Consideration Items a. Mayoral Appointment Northwest Hennepin Human Services Council Advisory Commission -Requested Council Action: Motion to ratify Mayoral nomination. b. Proclamation Observing the Week of October 23 October 27, 2006, as Minnesota Manufacturer's Week Requested Council Action: Motion to adopt proclamation. C. Resolution Establishing 2007 Street and Storm Drainage Special Assessment Rates -Requested Council Action: Motion to adopt resolution. d. An Ordinance Relating to Discharges and Connections to the Stormwater System Requested Council Action: Motion to approve first reading of ordinance and set seconding reading and Public Hearing for November 13, 2006. e. Resolution Authorizing Addendum to City Manager Employment Agreement -Requested Council Action: Motion to adopt resolution. f. Resolution Approving Amendment to the Fire Department Relief Association By- Laws -Requested Council Action: Motion to adopt resolution. g. Resolution Authorizing Certification of Postponed Utility Bill Assessment for 5546 Emerson Ave North. Requested Council Action: Motion to adopt resolution. 10. Adjournment City Council Agenda Item No. 7a 10 -9 -06 Fr: Councilmember Niesen Re: Changes to Minutes COUNCIL STUDY SESSION 9 -25 -06 CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS (page2, para.2 beginning with: She stated she was denied..) She stated in her Memo to Council that included the proposed CM Evaluation Form, she proposed Council review the contract as the council makeup had changed since it was first written but that suggestion apparently died with the tabling of the proposed CM Evaluation Form until February 2007. She stated that now that she has reviewed it, the City Council, composed of new members from the 2002 and 2004 election, must review it together and come to agreement. same: Mayor Kragness states it is a basic contract... (page3, para. l beginning with: She requested a comparison table on the information provided) She requested a comparison table to show proposed changes from what the Council had originally been presented. COUNCIL REGULAR SESSION 9 -25 -06 APPROVAL OF AGENDA AND CONSENT AGENDA (page3, para.2 under heading, beginning with: She She stated to be fair...) She stated to be fair, the item should be tabled for at least 2 weeks and the Council should meet and review the offer made between Karl Nollenberger, PAR Group and Mr. Boganey, and decide by consensus what Council wanted to offer to their first choice candidate. 9a. CITY MANAGER EMPLOYMENT AGREEMENT (page 15) The sentence: Mr. LeFevere responded to Councilmember Niesen in that it is intended to be a waiver of unintentional acts, is not clear. I request a clarification from Mr. LeFevere at the 10/9/06 meeting. (page 16, para. 13) in the language in Section 12G... (page 16, para. 14) think of a way that having the clause in Section 12G. 10/9/2006 1 of 1 Office of the City Clerk City of Brooklyn Center A Millennium Community MEMORANDUM TO: Curt Boganey, City Manager Sharon Knutson City FROM: ty Clerk DATE: October 9, 2006 SUBJECT: COUNCILMEMBER LASMAN: Requested Changes to Minutes Councilmember Lasman requested the following changes to the September 25, 2006, Regular Session: Page 2 Councilmember Lasman stated she attended the District 279 Community Cafe on September 13th, which is an opportunity provided by the District to provide input on the District's direction. She stated the District will be having the Parade of Schools on October 3 and 5 which is open to the community in order to showcase improvements made to each of the schools as a result of the bond referendum in 2000. She stated she attended a Block Watch meeting on September 14th, which was a time to visit and hear concerns on the particular neighborhoods. She stated she also attended a dinner with the City Manager candidates on September 15 which was a great way to meet the candidates under a social setting. She stated on September 16 the City Council attended interviews, narrowing the search down to the finalist including Curt Boganey. She stated the process was thorough. She stated on September 19 she attended the Financial Commission meetinz concerning language changes on investments and other items, with more information to be submitted to the City Council at a later day. She stated on September 20 she attended the Crime Prevention meeting where two new Officers and the loss of one Officer to be filled later at a later date was discussed. She stated Crime Prevention will also be contributing $1,000 to the Summer Safety Camp which will help to enable the youth program to continue. She stated on September 21 she attended the second Special Events Committee meeting and stated the Special Events Awards evening will be on February 3, 2007. She stated on September 24 she attended the Lions Pancake Breakfast which was a celebration of the Brooklyn Center All School Reunion. She mentioned that Hennepin County has a Small Business and Finance presentation on Thursday, October 9, at 7:00 p.m. at the Library for all entrepreneurs who are interested in starting a new business. 6301 Shingle Creek Parkway Recreation and Community Center Phone TDD Number Brooklyn Center, MN 55430 -2199 (763) 569 -3400 City Hall TDD Number (763) 569 -3300 FAX (763) 569 -3434 FAX (763) 569 -3494 www.cityofbrooklyncenter.org Office of the City Clerk City of Brooklyn Center A Millennium Community MEMORANDUM TO: Curt Boganey, City Manager FROM: Sharon Knutson, City Clerk,.'�� DATE: October 9, 2006 SUBJECT: COUNCILMEMBER CARMODY: Requested Changes to Minutes Councilmember Carmody requested the following changes to the September 25, 2006 minutes: Regular Session Pase 1 Councilmember Carmody stated it is considered unconstitutional to restrict the number or location of rental property. PaLye 10 Section 4. Evaluation Councilmember O'Connor stated she would like to change the date of evaluation from July to September or October so that a complete year of management is reviewed. Mr. Boganey explained that this section of the contract was negotiated and he gave a lot to agree to the proposed language. Work Session Pase 1 Councilmember O'Connor stated she would like to receive reports for purchases over $10,000. Councilmembers Carmodv and Lasman stated thev would like to discuss this policv before making decisions like that. 6301 Shingle Creek Parkway Recreation and Community Center Phone TDD Number Brooklyn Center, MN 55430 -2199 (763) 569 -3400 City Hall TDD Number (763) 569 -3300 FAX (763) 569 -3434 FAX (763) 569 -3494 www.cityolbrooklyncenter.org Office of the City Clerk City of Brooklyn Center A Millennium Community MEMORANDUM TO: Curt Boganey, City Manager FROM: Sharon Knutson, City Clerk DATE: October 9, 2006 SUBJECT: COUNCILMEMBER O'CONNOR: Requested Changes to Minutes Councilmember O'Connor requested the following changes to the September 25, 2006, Regular Session: Paae 6 Councilmember O'Connor inquired about the ongoing maintenance responsibility of the lines. Mr. Boganey responded the City would maintain the City's equipment and Access Communications would maintain their equipment. He also stated that Access Communications will provide the locator for both the City's equipment and their own. Paee 10 (same as reauest from Councilmember Carmodv Section 4. Evaluation Councilmember O'Connor stated she would like to change the date of evaluation from Julv to September or October so that a complete year of management is reviewed. Mr. Boganey explained that this section of the contract was negotiated and he gave a lot to agree to the proposed language. Pate 12 t:ve all t,o,. Pate 13 Councilmember O'Connor stated the $4,000 increase is a 3.47% increase, which is not consistent with other employees and indicated that it should be 2%. Councilmember Niesen stated agreement. 6301 Shingle Creek Parkway Recreation and Community Center Phone TDD Number Brooklyn Center, MN 55430 -2199 (763) 569 -3400 City Hall TDD Number (763) 569 -3300 FAX (763) 569 -3434 FAX (763) 569 -3494 www.cityofbrooklyncenter.org a Mr. Boganey stated the City Council authorized a Fiber Optic Agreement to allow installation of fiber optic materials for the City's network. He stated this has been completed and an agreement has been entered into with Access Communications in order to share the easement and in return Access Communications will provide a one call service to locate the fiber optic line, an annual value of $7,000. Councilmember O'Connor asked if Access Communications would be allowed to install additional materials along the City's in the same easement area. Mr. Boganey responded yes. Councilmember Carmody moved and Councilmember Lasman seconded to adopt RESOLUTION NO. 2006 -108 Authorizing Execution of a Fiber Optic Easement for Access Communications Inc. Councilmember Niesen inquired about the City's fiber optic capacity and if the excess capacity could be sold to them. Mr. Boganey responded Access Communications would have no interest in the City's fiber optic equipment. There was discussion regarding the previously purchased fiber optic equipment that was to be sold. Councilmember O'Connor inquired about the ongoing maintenance responsibility of the lines. Mr. Boganey responded the City would maintain the City's equipment and Access Communications would maintain their equipment. He also stated that Access Communications will provide th ocate both the City's equipment and their own. 10 cst`�� Motion passed unanimously. 9d. RESOLUTION NO. 2006 -109 DECLARING A PUBLIC NUISANCE AND ORDERING THE REMOVAL OF DISEASED TREES Mr. Boganey stated it is the recommendation of City staff that the City Council approve the Declaration of Public Nuisance so that the diseased trees can be removed. Councilmember Carmody moved and Councilmember Lasman seconded to adopt RESOLUTION NO. 2006 -109 Declaring a Public Nuisance and Ordering the Removal of Diseased Trees. Councilmember O'Connor inquired about the number of removed trees. She inquired about a tree on Lyndale Ave N that has been marked for some time_ Mr. Blomstrom responded that the memorandum included a typographical error in that it should read a total of 148 rather than 147. He explained that there is a possibility that Hennepin County marked the tree in question; however he will research the item. Councilmember O'Connor voted against the same. Motion passed. 9e. RESOLUTION NO. 2006 -110 ACCEPTING WORK PERFORMED AND AUTHORIZING FINAL PAYMENT, IMPROVEMENT PROJECT NO. 2006 -10 09/25/06 6 DRAFT The City Council discussed Section Y 13d.a. regarding sick leave. Coun cilmember O'Connor and S Separation. Councilmember Niesen stated the sick leave should not be paid upon Involuntary ep Mr. Boganey stated he would be willing to reach an agreement on this section; however the attorney should be directed to negotiate the language that is acceptable to both parties. Section 2. Duties Councilmember O'Connor stated the language "which are consistent therewith" should be deleted. it was the majority consensus not to amend this section of the employment agreement. Section 3. Discharge of Duties Councilmember Niesen stated the following last sentence "To that end, the Manager will work flexible hours as is necessary to Manager to discharge the duties of his position" should be deleted because it enters into the issue of flextime. Councilmember Carmody stated disagreement with amending the section and pointed out other a comparison contracts that have similar language. Councilmember Lasman stated this item does not change the contract in a substantial manner and that only items of importance should be discussed. Section 4. Evaluation, e-r� Section Councilmember Evaluation stated she would like to change the date of evaluation to J�SSO that a complete year of management is reviewed. Mr. Boganey explained that this section of the contract was negotiated and he gave a lot to agree to the proposed language. Councilmember Carmody stated typically an evaluation is around one year, however in a position of City Manager, the evaluation should be done in July. The City Council discussed the salary amount and the history of Mr. Boganey's salary and that his position has changed, allowing for a higher rate of pay. C n„ncilmemher Niesen stated the salary and history comparison is important and asked what Mr. Boganey gave up while making 30% more than in the year 2005. Councilmember Carmody stated it is an inappropriate question and stated preference that Mr. Boganey not to answer the question. Mr. Boganey did not answer the question. Councilmember O'Connor suggested that an evaluation be given on the stated date, however not a raise. Mayor Kragness stated a raise is typically involved in an evaluation. IO AOL Y\/ Y S is not generous, however it is fair. t Councilmember O'Connor asked if Mr, Boganey will hire an Assistant City Manager. Mr. Boganey responded he has been performing the work of two jobs, which has taken him from his family more than he would like, which will not improve a great deal, therefore for the benefit of the City and himself, he will need some assistance. He further explained that he is not 100% certain he would recommend that the position of Assistant City Manager be filled as it exists. He stated assuming an employment agreement is agreed upon, he will look for ways that will result in efficiency an d reduced cost in the management structure. He stated this may result in some consolidations. He stated he needs help, however it may not be with an Assistant City Manager position as it currently exists. Councilmember O'Connor stated if an Assistant City Manager is hired, Mr. Boganey's salary should remain at $113,500 with a raise to follow at the time of evaluation. Councilmember Carmody stated objection to amending this section of the employment agreement. It was the majority consensus not to amend this section of the employment agreement in that the salary is listed at $115,000 annually. Councilmember Niesen stated the annual salary should remain at $113,500 until completion of the evaluation. Section 8B. Evaluation and Salary Increases Councilmember Niesen stated the wording in the contracts indicates that increasing compensation should be considered when the City evaluates an employee. She stated preference that the evaluation is given at the end of the year so that the City Council goals are incorporated. d st Councilmember Carmody explained that the City Manager is supervising employees with salaries over $100,000; therefore his salary should remain at $115,000 until his evaluation. It was the majority consensus not to amend this section of the employment agreement. Mr. Boganey explained that according to the contract, the evaluation would occur in July of each year, with the salary increase at the beginning of the year. Mr. LeFevere explained that after the 2007 salary increase, the timing of the decision is specified in the contract, however the criteria is not. He stated if the City Council deems the performance unacceptable, there would be no increase. He stated if the performance is deemed acceptable, however the City can not afford an increase, there would be no increase. He stated there are no specifications on what the City Council has to do, just the timeframe in which action must take place. Councilmember O'Connor stated the $4,000 increase is a 3.47% increase, which is not consistent 09/25/06 12 DRAFT IV C (5 y V -7_ t C Vk with other employeevouncumember Niesen stated agreement. Section 8C. Personal Auto Usaze Councilmember Councilmember Niesen stated she would like to delete the entire Paragraph- O'Connor stated agreement. Councilmember Carmody compared the section on car allowance to other contracts from the comparison cities. She stated objection to amending the paragraph. Councilmember Niesen stated the car allowance col because it is considered double dipping in that he is reimbursed for a car allowance along with mileage. Mr. LeFevere stated this agreement is not the same as Mr. McCauley's in the Car Allowance aspect. He stated the salary is set and does not say it includes the car allowance. He stated it is up to the City Council on how Mr. Boganey should be reimbursed. Councilmember Lasman read from information provided that indicates that the average annual salary for a community the size of Brooklyn Center, not including the car allowance is $110,000. Mr. Boganey stated rather than including a car allowance of $6,000, he agreed to not consider adding a car allowance, however agreeing on an annual salary of $115,000. He stated there is nothing in the agreement that specifically provides consideration for a car allowance, however the salary amount took into consideration that there is no car allowance in the agreement. He stated the personal auto usage in the agreement is for mileage. Councilmember Niesen stated she is troubled by this matter because she recalls ls the reason She McCauley's salary increased was due �ve been the t�ime�h was receiving a car mileage reimbursemen allowance. She stated concern that when Mr. Boganey received 95% of Mr. McCauley's salary, a car allowance was included in the salary used. Councilmember Carmody stated when the City Council a e an agreement to allowance was not She be Interim City Manager with a salary of with or without the car allowance, stated other candidates would have been at comparable salary therefore this agreement is not excessive. Mayor Kragness explained that he receives mileage because he has to travel places for work. Councilmember Lasman explained that if Mr. Boganey is not using his personal vehicle, the City would have to provide one for his use, therefore this alternative is less expensive for the City. Mr. Boganey stated he did not insist on a car allowance because there would be an offset in salary. He stated it is all salary to the IRS. It was the majority consensus not to amend this section of the employment agreement. Section 8D. Professional Membership Dues and Professional Subscriptions Councilmember O'Connor stated preference that the section be deleted. Councilmember 09/25/06 13 DRAFT Sharon Knutson From: Curt Boganey Sent: Monday, October 09, 2006 7:43 AM To: Sharon Knutson Subject: FW: minutes Please handle. Thank you. Frpfi»: Kay Lasman Serft: +day October 06, 2006 7:31 PM To: Curt Boganey Subject: minutes Curt, have a change /correction of the minutes of the September 25th, Regular Session as follows: page 2, item 6- Council Reports -there is a spelling error in the 11th line -it should be meeting instead of meting. Thanks. Kay 10/9/2006 MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL /ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA WORK SESSION SEPTEMBER 25, 2006 CITY HALL COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council/Economic Development Authority (EDA) met in Work Session and was called to order by Mayor/President Myrna Kragness at 10:50 p.m. ROLL CALL Mayor /President Myrna Kragness and Councilmembers /Commissioners Kathleen Carmody, Kay Lasman, and Mary O'Connor. Also present were Interim City Manager Curt Boganey, and Deputy City Clerk Camille Worley. Councilmember Niesen left the Council Chambers prior to the beginning of the Work Session. EBHC HOTEL DEVELOPMENT Interim City Manager Curt Boganey stated the item could be postponed two weeks. ESTABLISH AGENDA FOR NOVEMBER 11, 2006, GOAL SETTING SESSION Mr. Boganey stated many facilitators are available on November 11, 2006. He asked if it is the interest of the City Council to do long range planning or focus on the next year. He discussed the option of involving the Staff at either the retreat or collecting input prior to the retreat. Councilmember Carmody stated that long range planning and team building may be moot points with the reelections. She suggested a half a day to set goals for the year, such as from 9:00 a.m. to 12:00 p.m. Mayor Kragness, Councilmember Lasman, and Councilmember Carmody stated interest in City Staff involvement in the City Council retreat. REQUEST FROM COUNCILMEMBER NIESEN TO DISCUSS FINANCIAL REPORTS Councilmember Niesen was not present for this discussion. Councilmember O'Connor stated she would like to receive reports for purchases over $10,000. I t^Donrilr+imb�s Lit CaCrAbal V 4 10 3+Ate +Jveti WOO I i i 4v A*5et)SS +ki5 Pn1; cy be fbre- Mr. Boganey stated the item would be placed back on the agenda. �K1 n q dect5ien 5 09/25/06 1 DRAFT MISCELLANEOUS Councilmember O'Connor discussed a complaint received from Nancy Curtis that the City Hall office was closed at 4:28 p.m. Mr. Boganey responded that the two front desk employees along o with the City Clerk claim Y the were in the office at that time and the doo r was open at 4:30 p.m. He stated the door is kept open and employees will remain in the office until all public who entered by 4:30 p.m. have been helped. ADJOURNMENT Councilmember /Commissioner Carmody moved and Councilmember /Commissioner Lasman seconded adjournment of the City Council/Economic Development Authority Work Session at 11:00 P.M. Motion passed unanimously. City Clerk Mayor /President I i i i I i I 09/25/06 2 DRAFT I MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA f REGULAR SESSION SEPTEMBER 25, 2006 CITY HALL COUNCIL CHAMBERS 1. INFORMAL OPEN FORUM WITH CITY COUNCIL CALL TO ORDER INFORMAL OPEN FORUM The Brooklyn Center City Council met in Informal Open Forum and was called to order by Mayor Myrna Kragness at 6:48 p.m. ROLL CALL Mayor Myrna Kragness and Councilmembers Kathleen Carmody, Kay Lasman, Diane Niesen, and Mary O'Connor. Also present were Interim City Manager Curt Boganey, Public Works Director /City Engineer Todd Blomstrom, City Attorney Charlie LeFevere, and Deputy City Clerk Camille Worley. Charles Atkinson, 5309 64 Avenue, stated concern with the condition of the City, especially with the upkeep of property. He discussed a home with garbage piled up to the eaves of the home. He stated the property is still a mess with excessive garbage and poor lawn conditions. He stated he is concerned with the amount of rental property, amount of homes for sale, and un- repaired storm damage. He stated he is considering moving due to the poor conditions. Mayor Kragness stated improvement to the appearance of the City is a long process. She addressed a particular legal matter of the property he discussed. She stated Code Enforcement is doing the best job they can. +�f h vMbPr or (o ca A Councilmember Carmody stated it is considered unconstitutional to restricf rental property. Councilmember Lasman moved and Councilmember Carmody seconded to close the Informal Open Forum at 6:51 p.m. Motion passed, unanimously. 2. INVOCATION Mayor Kragness offered a prayer as the Invocation. 3. CALL TO ORDER REGULAR BUSINESS MEETING The Brooklyn Center City Council met in Regular Session and was called to order by Mayor Myrna Kragness at 7:00 p.m. 09/25/06 1 DRAFT 4. ROLL CALL Mayor Myrna Kragness and Councilmembers Kathleen Carmody, Kay Lasman, Diane Niesen, and Mary O'Connor. Also present were Interim City Manager Curt Boganey, Public Works Director /City Engineer Todd Blomstrom, City Attorney Charlie LeFevere, and Deputy City Clerk Camille Worley. 5. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 6. COUNCIL REPORT Councilmember O'Connor stated she attended the Park and Recreation Commission meeting on September 19, 2006, where the Parks Capital Improvement Plan was discussed and that it was extended. She stated the Three Rivers Park District would like to lease the City's land and maintain the regional trails. She stated it was indicated that the Central Garage Salt Storage Building would be completed by November 1 She stated there was also an update given on the Golf Course Capital Improvement Plan funding. Councilmember Lasman stated she attended the District 279 Community Cafe on September 13th, which is an opportunity provided by the District to provide input on the District's direction. She stated the District will be having the Parade of Schools on October 3 rd and 5th which is open to the community in order to showcase improvements made to each of the schools as a result of the bond referendum in 2000. She stated she attended a Block Watch meeting on September 14th, which was a time to visit and hear concerns on the particular neighborhoods. She stated she also attended a dinner with the City Manager candidates on September 15 which was a great way to meet the candidates under a social setting. She stated on September 16 the City Council attended interviews, narrowing the search down to the finalist including Curt Boganey. She stated the process was thorough. She stated on September 19 she attended the Financial Commission meting concerning language changes on investments and other items, with more information to be submitted to the City Council at a later day. She stated on September 20 she attended the Crime Prevention meeting where two new Officers and the loss of one Officer to be filled later at a later date was discussed. She stated Crime Prevention will also be contributing $1,000 to the Summer Safety Camp which will help to enable the youth program to continue. She stated on September 21" she attended the second Special Events Committee meeting and stated the Special Events Awards evening will be on February 3, 2007. She stated on September 24 she attended the Lions Pancake Breakfast which was a celebration of the Brooklyn Center All School Reunion. She mentioned that Hennepin County has a Small Business and Finance presentation on Thursday, October 9, at 7:00 p.m. at the Library for all entrepreneurs who are interested in starting a new business. Councilmember Carmody stated she attended a few of the same meetings as Councilmember Lasman. She discussed the Housing Commission meeting that was held on September 19 She stated she will distribute the report at the Work Session. 09/25/06 2 DRAFT Councilmember Niesen stated she attended the quarterly meeting held by the Northwest Suburbs Cable Communications Commission. She stated they tabled the exploration of WI -FI with joint Cities due to business model reasons. She stated they are undertaking their Preliminary Budget and Comcast gave a presentation on the acquisition of Time Warner and new service features. Mayor Kragness read a paragraph regarding the rating of Centerbrook Golf Course that praises the course as the Best Condition Par 3 Course. She congratulated the crew of the golf course. She stated there are some volunteer opportunities in Brooklyn Center including the Housing Commission, Financial Commission, and Charter Commission. She encouraged those interested to call Sharon Knutson at City Hall. 7. APPROVAL OF AGENDA AND CONSENT AGENDA Councilmember Niesen moved and Councilmember O'Connor seconded to table item 9a. City Manager Employment Agreement. Councilmember Niesen stated the hiring of a City Manager is the most important job of a City Council. She stated the City Council made a choice to make an offer to a candidate and she thought the offer would be discussed prior to the offer being presented to the candidate. She stated she does not feel this is the time or the place for the City Council to make a decision on the employment contract of the City Manager. She stated she has not had an opportunity to give her opinion on the proposed employment agreement. She stated time has not been allowed for the City Council to meet and discuss an offer. She stated she was not familiar with the contract; however she made effort to revise the City Manager review form in which she was unsuccessful. She stated she was unaware of the contract provision of the previous City Manager until recently and would now like to allow time to discuss the matter. She stated to be fair, the item should be tabled for two weeks so that she may have the time to review the offer made to the Interim City Manager Curt Boganey. Councilmember O'Connor agreed that the proposed contract should be fully discussed. Councilmember Carmody stated it is important to keep it on the agenda and a convincing argument has not been made to remove it from agenda. Mayor Kragness, Councilmember Lasman, and Councilmember Carmody voted against the same. Motion failed. Councilmember Carmody moved and Councilmember Lasman seconded to approve the consent agenda and agenda as amended with the removal of the Brewer and Brew Pub Off -Sale Malt Liquor License included in Item No. 7b. from the Consent Agenda to Council Consideration Item No. 9b. and amendments to the September 11, 2006, Regular Session and September 11, 2006, Work Session minutes as discussed at the Study Session. The following consent items were approved: 7a. APPROVAL OF MINUTES 1. September 11, 2006 —Study Session 2. September 11, 2006 Regular Session 3. September 11, 2006 Work Session 09/25/06 3 DRAFT 4. September 13, 2006 Special Session 5. September 16, 2006 Special Session 7b. LICENSES COMMERCIAL KENNEL Gentle Touch Animal Sanctuary 4900 France Ave N MECHANICAL ELK Mechanical HVAC Inc 6361 Sunfish Lake Ct., Ramsey Gopher Heating Sheet Metal, Inc. 12330 Ottawa Ave, Savage Snell Mechanical Inc. 8850 Wentworth Ave So, Bloomington SIGNHANGER Albrecht Sign Co., Inc. 12437 Magnolia Cir NW, Coon Rapids Apparently Graphic, Ltd. 7420 West Lake Street, St. Louis Park RENTAL Renewal 3007 68 Ave N (Single Family) Kao Vang NONE 5548 Dupont Ave N (Single Family) John Lindahl ASSAULT 5548 Dupont Ave N (Single Family) Dion Properties, Inc. ASSAULT (There were no calls for service for the following) 5332 Lilac Drive (Single Family) Mark Lundberg 5400 Sailor Lane (Single Family) Duane Christiansen 5925 Washburn Ave N (Single Family) Cheng Lor Initial (There were no calls for service for the following) 3713 54 Ave N (Single Family) Yer Yang 5730 Northport Dr (Single Family) Tuyet Le Motion passed unanimously. Councilmember Niesen moved and Councilmember O'Connor seconded to move Item No. 9a. to the end of the agenda. Mayor Kragness and Councilmember Lasman voted against the same. Motion passed. 8. PUBLIC HEARING 8a. AN ORDINANCE AMENDING CHAPTER 35 OF THE CITY ORDINANCES REGARDING THE ZONING CLASSIFICATION OF CERTAIN LAND (EASTERLY OF BROOKLYN BOULEVARD BETWEEN I -94 AND 69TH AVENUE NORTH) 09/25/06 4 DRAFT Interim City Manager Curt Boganey explained that it is necessary that the property be replatted and that the City Council should not approve the rezoning, rather table for a later date. Councilmember Lasman moved and Councilmember Carmody seconded to open the Public Hearing on An Ordinance Amending Chapter 35 of the City Ordinances Regarding the Zoning Classification of Certain Land (Easterly of Brooklyn Boulevard Between I -94 and 69th Avenue North). Motion passed unanimously. No public input was offered. Councilmember Carmody moved and Councilmember Lasman seconded to close the Public Hearing. Motion passed unanimously. Councilmember Lasman moved and Councilmember Carmody seconded to table to the November 13, 2006, agenda an Ordinance Amending Chapter 35 of the City Ordinances Regarding the Zoning Classification of Certain Land (Easterly of Brooklyn Boulevard Between I -94 and 69th Avenue North). Motion passed unanimously. 9. COUNCIL CONSIDERATION ITEMS 9a CITY MANAGER EMPLOYMENT AGREEMENT This item was moved to the end of Council Consideration Items. 9b. RESOLUTION NO. 2006 -107 ESTABLISHING FEE FOR BREWER AND BREW PUB OFF -SALE MALT LIQUOR LICENSE Mr. Boganey explained that amendments have been made to the Liquor portion of the Ordinance which includes a Brew Pub to be allowed to sell growlers. He stated since the adoption, Surly Brewery has submitted an application for the license. He stated since the license is new, a Resolution has been prepared regarding fees for that license. Councilmember Lasman moved and Councilmember Carmody seconded to adopt RESOLUTION NO. 2006 -107 Establishing Fee for Brewer and Brew Pub Off -Sale Malt Liquor License and License Application for Surly Brewing Company pending fee payment. Motion passed unanimously. 9c. RESOLUTION NO. 2006-108 AUTHORIZING EXECUTION OF A FIBER OPTIC EASEMENT FOR ACCESS COMMUNICATIONS INC. 09/25/06 5 DRAFT Mr. Boganey stated the City Council authorized a Fiber Optic Agreement to allow installation of fiber optic materials for the City's network. He stated this has been completed and an agreement has been entered into with Access Communications in order to share the easement and in return Access Communications will provide a one call service to locate the fiber optic line, an annual value of $7,000. Councilmember O'Connor asked if Access Communications would be allowed to install additional materials along the City's in the same easement area. Mr. Boganey responded yes. Councilmember Carmody moved and Councilmember Lasman seconded to adopt RESOLUTION NO. 2006 -108 Authorizing Execution of a Fiber Optic Easement for Access Communications Inc. Councilmember Niesen inquired about the City's fiber optic capacity and if the excess capacity could be sold to them. Mr. Boganey responded Access Communications would have no interest in the City's fiber optic equipment. There was discussion regarding the previously purchased fiber optic equipment that was to be sold. Councilmember O'Connor inquired about the ongoing maintenance responsibility of the lines. Mr. Boganey responded the City would maintain the City's equipment and Access Communications would maintain their equipment. He also stated that Access Communications will provide the locate for both the City's equipment and their own. Motion passed unanimously. 9d. RESOLUTION NO. 2006 -109 DECLARING A PUBLIC NUISANCE AND ORDERING THE REMOVAL OF DISEASED TREES Mr. Boganey stated it is the recommendation of City staff that the City Council approve the Declaration of Public Nuisance so that the diseased trees can be removed. Councilmember Carmody moved and Councilmember Lasman seconded to adopt RESOLUTION NO. 2006 -109 Declaring a Public Nuisance and Ordering the Removal of Diseased Trees. Councilmember O'Connor inquired about the number of removed trees. She inquired about a tree on Lyndale Ave N that has been marked for some time. Mr. Blomstrom responded that the memorandum included a typographical error in that it should read a total of 148 rather than 147. He explained that there is a possibility that Hennepin County marked the tree in question; however he will research the item. Councilmember O'Connor voted against the same. Motion passed. 9e. RESOLUTION NO. 2006 -110 ACCEPTING WORK PERFORMED AND AUTHORIZING FINAL PAYMENT, IMPROVEMENT PROJECT NO. 2006 -10, 09/25/06 6 DRAFT CONTRACT 2006 -D, 2006 STREET SEAL COATING Mr. Boganey stated the purpose of the Resolution and stated it is a joint effort with several other cities to ensure the best price for this service. He stated the amount of the final payment is $59,657.50 and stated staff recommends approval of the proposed. Councilmember Lasman moved and Councilmember Carmody seconded to adopt RESOLUTION NO. 2006 -110 Accepting Work Performed and Authorizing Final Payment, Improvement Project No. 2006 -10, Contract 2006 -D, 2006 Street Seal Coating. Motion passed unanimously. 9f. PROVISIONAL RENTAL DWELLING LICENSE 5240 DREW AVENUE NORTH Mr. Boganey explained the proposal and stated the property experienced numerous issues and complaints resulting in ineligibility for a rental license, however he stated the property has been under new ownership and no calls have been received since April 2006. He stated the new owner has been improving the property. He stated a review of the property would occur after six months with eligibility of a non provisional license after 12 months. Mr. Schumacher responded to Councilmember Lasman's inquiry regarding evicted tenants and stated freeloaders were living on the property and only three tenants who have signed a lease and paid the rent remain in the building. He stated rent will increase after the renovations are complete. He stated he purchased the property for the purpose of development and the property can be left unoccupied until the right tenants are found. He stated he resides in North Minneapolis and will be the manager of the proposed property. Mayor Kragness suggested that Mr. Schumacher get involved in the Association for Rental Management (ARM) group. Councilmember Lasman moved and Councilmember Niesen seconded to approve the application and the Mitigation Plan and Rental License. Motion passed unanimously. 9g. AN ORDINANCE RELATING TO THE LICENSURE OF MASSAGE PARLORS; AMENDING BROOKLYN CENTER CITY CODE SECTION 23 -1712 Mr. Boganey discussed the purpose and history of the Ordinance 'Amendment and stated the changes discussed by the City Council with regards to Massage Parlors are included in the proposal. Councilmember Lasman moved and Councilmember Carmody seconded to approve first reading of ordinance and set second reading and Public Hearing on October 23, 2006. Councilmember Carmody stated the amendments are to the requirements for a Health Club, not a Massage Parlor. Councilmember Lasman stated it will work better now that the State Building Code in relation to restrooms is included in the City of Brooklyn Center's Ordinance. 09/25/06 7 DRAFT Motion passed unanimously. 9a. CITY MANAGER EMPLOYMENT AGREEMENT Councilmember Niesen stated it is important to the City that the top official be compensated fairly and because this agreement sets precedence, she investigated the proposed contract, that being the same contract as the former City Manager, Mike McCauley. She stated that her redlined copy of the contract was submitted to the City Council for review. She stated that she is City he proposing something that is fair and a contract she would approve if t y Council is in agreement. She stated she sought contracts from several neighboring communities for the purpose of comparison. She stated she spoke with the League of Minnesota Cities who emailed her information on hiring the City Manager. She stated disappointment that Mr. Nollenberger was absent from the meeting. Mayor Kragness stated Mr. Nollenberger was instructed to use Mr. McCauley's contract as a basis. Councilmember Niesen discussed the proposed vacation and sick leave and stated she contacted several legal firms regarding the matter, one at her own expense. Mayor Kragness stated the decision can not be made by Councilmember Niesen alone. Councilmember Carmody stated objection to several of Councilmember Niesen's comments and stated disagreement with most of the redlining done by Councilmember Niesen. She stated Councilmember Niesen has objected to several steps of the process for the search for the new City Manager, all of which were given to the City Council on a dateline in advance. She stated surprise that Councilmember Niesen mentioned that this was the most important task of the City Council, however in the past three years the contract of Mr. McCauley was approved; she did not request to review the contract. She stated Councilmember Niesen's argument is not convincing. Councilmember Niesen stated she should have reviewed the contract, however she was learning at the time. She stated the full contract was never supplied with exception of the car allowance and salary portions. She discussed her proposed amended evaluation form for the City Manager. b h i She stated that she collected several opinions on the proposed contract, one of which c y another law firm. She stated objection to several portions of the contract and stated reasons for those objections. She stated Brooklyn Center can not afford to pay this generous contract that puts the and moral turpitude. City t risk. She discussed concern for the sections relating to termination rp Y g She discussed the salary history of the previous City Manager and Mr. Boganey. She stated she would like to review the contract with the City Council, item by item. Councilmember O'Connor agreed with many of Councilmember Niesen's concerns and stated she would like the City Council to walk through each item of the contract. Councilmember Carmody pointed out that other contracts provided for comparison by Councilmember Niesen should also be reviewed. The City Council discussed the following aspects of the City Manager Employment Agreement: Section 1. Employment Councilmember Niesen stated she has no amendments to the paragraphs that precede Section 1 and no changes to Section 1 Employment. She stated she would like to add a section titled: Term of Agreement that states: "the agreement shall terminate on the 26 day of September 2007 09/25/06 8 DRAFT and subsequent extension shall be allowed only by a majority vote of the City Council prior to the expiration date." She stated this does not allow for an indefinite contract, however a proactive stance that this contract will be reviewed year to year. Councilmember Carmody stated disagreement and pointed out a section of the St. Louis Park agreement in that the expiration or termination of the contract is discussed. She stated she is not in favor to change this section. Councilmember Niesen discussed the importance of indicating an expiration of the contract. The City Council discussed this section in comparison to those employment agreements of other communities. Councilmember Niesen indicated the importance of including removal for cause in the agreement. The City Council discussed the amount Mr. McCauley received at the time of separation, that being only his regular salary. The City Council discussed termination on malfeasance, moral turpitude, or illegal activity and the lack of it being addressed in the proposed employment contract. Councilmember Niesen and Councilmember O'Connor stated they wish to include language addressing termination on malfeasance, moral turpitude, or illegal activity in the City Manager Employment Agreement. City Attorney Charlie LeFevere stated the contract that the City has had in place for many years is based on a slightly different premise. He stated the idea is that an employer can negotiate every piece it wishes. He stated it is thought by many employers to start off with a more cooperative relationship. He stated with Mr. McCauley's contract, it does not have a tremendous amount of detail. He stated a provision on moral turpitude is not unreasonable; however the term moral turpitude does not have a clear definition and means different things to different people. He stated the proposed contract is predicated on the idea that it is protection for the employee. Councilmember Niesen stated there is sample language addressing termination on malfeasance, moral turpitude, or illegal activity provided by the League of Minnesota Cities and suggested that the City use the language provided by them. Councilmember Niesen read the language as follows: However, in the event employee is terminated because of his or her malfeasance in office, gross misconduct, conviction for a felony, or conviction for an illegal act involving personal gain for employee, then employer shall have no obligation to pay termination benefits. The City Council and Staff discussed severance packages and circumstances of other City employees. Mr. Boganey stated that he believes Mr. McCauley provided a copy of the contract in question to Councilmember Niesen on two different occasions. Councilmember Niesen asked that the language from the League of Minnesota Cities be inserted into the employment agreement. Councilmember Carmody stated she would be in favor of inserting the language if inserted exactly as stated by Councilmember Niesen. Mr. Boganey stated if the City Council wishes to add the language eliminating certain severance benefits if terminated for illegal actions by the City manager, he would agree. He suggested that the City Council direct the City Attorney to negotiate language with the City Manager on this issue. 09/25/06 9 DRAFT The City Council discussed Section 13d.a. regarding sick leave. Councilmember O'Connor and Councilmember Niesen stated the sick leave should not be paid upon Involuntary Separation. Mr. Boganey stated he would be willing to reach an agreement on this section; however the attorney should be directed to negotiate the language that is acceptable to both parties. Section 2. Duties Councilmember O'Connor stated the language "which are consistent therewith" should be deleted. It was the majority consensus not to amend this section of the employment agreement. Section 3. Discharge of Duties Councilmember Niesen stated the following last sentence "To that end, the Manager will work flexible hours as is necessary to Manager to discharge the duties of his position" should be deleted because it enters into the issue of flextime. Councilmember Carmody stated disagreement with amending the section and pointed out other comparison contracts that have similar language. Councilmember Lasman stated this item does not change the contract in a substantial manner and that only items of importance should be discussed. Section 4. Evaluation Super 0C/2(`^1r Councilmember O'Connor stated she would like to change the date of evaluation to 3U+Y so that a complete year of management is reviewed. Mr. Boganey explained that this section of the contract was negotiated and he gave a lot to agree to the proposed language. Councilmember Carmody stated typically an evaluation is around one year, however in a position of City Manager, the evaluation should be done in July. The City Council discussed the salary amount and the history of Mr. Boganey's salary and that his position has changed, allowing for a higher rate of pay. Councilmember Niesen stated the salary and history comparison is important and asked what Mr. Boganey gave up while making 30% more than in the year 2005. Councilmember Carmody stated it is an inappropriate question and stated preference that Mr. Boganey not to answer the question. Mr. Boganey did not answer the question. Councilmember O'Connor suggested that an evaluation be given on the stated date, however not a raise. Mayor Kragness stated a raise is typically involved in an evaluation. Section 5. Participation in Emnlovee Benefits There was no discussion on this section of the Employment Agreement. Section 6. Vacation and Holidays Councilmember O'Connor stated preference to delete the third sentence that reads "The Manager may, at Manager's discretion take '/2 day increments of vacation leave for an absence from the 09/25/06 10 DRAFT performance of Manager's duties." Councilmember Carmody stated disagreement and stated the City Manager should be allowed to use a half day of vacation due to his busy schedule. Councilmember Niesen stated the contract indicates that if the City Manager was to work one hour in a given day, he would not be required to use vacation for the remaining seven hours, which he should have to do. Mr. Boganey stated it is the job of exempt employees to make sure certain jobs get performed. He stated he believes the Federal Law indicates that exempt employees may not be required to use vacation for absences that are less than a day. Councilmember Carmody stated there are instances where the City Manager will work off hours and he should be able to use discretion in taking time off. She stated the White Bear Lake contract has similar language as the proposed agreement. Mr. LeFevere stated the language is not intended to give someone free vacation, rather be a limitation on the use of flextime. He stated if the sentence is removed and placed in the flextime area and stated the manager can use flextime, provided if he takes the whole day off, he must use vacation time. He stated this would represent the intent of the contract. It was the majority consensus not to amend this section of the employment agreement. Section 7. Sick Leave Councilmember Niesen stated preference to delete the second paragraph that reads: "Upon leaving the City's employ, for whatever reason, the Manager shall be entitled to payment for all unused sick leave in accordance with the provision of the City's personnel code applicable to nonunion employees." She stated it should be removed because the contract includes enough payments to the City Manager and should not be paid for sick leave. Mayor Kragness stated disagreement. Councilmember O'Connor stated agreement with Councilmember Niesen. Councilmember Carmody indicated that other cities pay for sick leave in comparison contracts and stated objection to removal of the language. Councilmember Niesen stated it should be treated the same as other employees in that a portion of sick leave is paid based on the years of service. She stated the maximum of paid sick leave should be one third of that accrued. It was the majority consensus not to amend this section of the employment agreement. Section 8. Compensation Section 8A. Initial Salary Councilmember O'Connor stated the annual salary should remain at $113,500. Councilmember Carmody stated the annual salary of $115,000 should remain. Councilmember Lasman stated the annual salary of $113,500 was for the Interim City Manager position and his position will change now that he is the City Manager. She stated the agreement 09/25/06 11 DRAFT i is not generous, however it is fair. Councilmember O'Connor asked if Mr. Boganey will hire an Assistant City Manager. Mr. Boganey responded he has been performing the work of two jobs, which has taken him from his family more than he would like, which will not improve a great deal, therefore for the benefit of the City and himself, he will need some assistance. He further explained that he is not 100% certain he would recommend that the position of Assistant City Manager be filled as it exists. He stated assuming an employment agreement is agreed upon, he will look for ways that will result in efficiency and reduced cost in the management structure. He stated this may result in some consolidations. He stated he needs help, however it may not be with an Assistant City Manager position as it currently exists. Councilmember O'Connor stated if an Assistant City Manager is hired, Mr. Boganey's salary should remain at $113,500 with a raise to follow at the time of evaluation. Councilmember Carmody stated objection to amending this section of the employment agreement. It was the majority consensus not to amend this section of the employment agreement in that the salary is listed at $115,000 annually. Councilmember Niesen stated the annual salary should remain at $113,500 until completion of the evaluation. Section 8B. Evaluation and Salary Increases Councilmember Niesen stated the wording in the contracts indicates that increasing compensation should be considered when the City evaluates an. employee. She stated preference that the evaluation is given at the end of the year so that the City Council goals are incorporated. Councilmember O'Connor stated he should get an increase on January 1 St like all other employees. She recommended an increase of 2 Councilmember Carmody explained that the City Manager is supervising employees with salaries over $100,000; therefore his salary should remain at $115,000 until his evaluation. It was the majority consensus not to amend this section of the employment agreement. Mr. Boganey explained that according to the contract, the evaluation would occur in July of each year, with the salary increase at the beginning of the year. Mr. LeFevere explained that after the 2007 salary increase, the timing of the decision is specified in the contract, however the criteria is not. He stated if the City Council deems the performance unacceptable, there would be no increase. He stated if the performance is deemed acceptable, however the City can not afford an increase, there would be no increase. He stated there are no specifications on what the City Council has to do, just the timeframe in which action must take place. Councilmember O'Connor stated the $4,000 increase is a 3.47% increase, which is not consistent 09/25/06 12 DRAFT with other employees. Councilmember Niesen stated agreement. Section 8C. Personal Auto Usage Councilmember Niesen stated she would like to delete the entire paragraph. Councilmember O'Connor stated agreement. Councilmember Carmody compared the section on car allowance to other contracts from the comparison cities. She stated objection to amending the paragraph. Councilmember Niesen stated the car allowance aspect of this contract is not legal because it is considered double dipping in that he is reimbursed for a car allowance along with mileage. Mr. LeFevere stated this agreement is not the same as Mr. McCauley's in the Car Allowance aspect. He stated the salary is set and does not say it includes the car allowance. He stated it is up to the City Council on how Mr. Boganey should be reimbursed. Councilmember Lasman read from information provided that indicates that the average annual salary for a community the size of Brooklyn Center, not including the car allowance is $110,000. Mr. Boganey stated rather than including a car allowance of $6,000, he agreed to not consider adding a car allowance, however agreeing on an annual salary of $115,000. He stated there is nothing in the agreement that specifically provides consideration for a car allowance, however the salary amount took into consideration that there is no car allowance in the agreement. He stated the personal auto usage in the agreement is for mileage. Councilmember Niesen stated she is troubled by this matter because she recalls the reason Mr. McCauley's salary increased was due to the car allowance being added to his salary. She stated mileage reimbursement should not have been allowed at the time he was receiving a car allowance. She stated concern that when Mr. Boganey received 95% of Mr. McCauley's salary, a car allowance was included in the salary used. Councilmember Carmody stated when the City Council made an agreement to have Mr. Boganey be Interim City Manager with a salary of $113,500, a car allowance was not discussed. She stated other candidates would have been at comparable salary with or without the car allowance, therefore this agreement is not excessive. Mayor Kragness explained that he receives mileage because he has to travel places for work. Councilmember Lasman explained that if Mr. Boganey is not using his personal vehicle, the City would have to provide one for his use, therefore this alternative is less expensive for the City. Mr. Boganey stated he did not insist on a car allowance because there would be an offset in salary. He stated it is all salary to the IRS. It was the majority consensus not to amend this section of the employment agreement. Section 8D. Professional Membership Dues and Professional Subscriptions Councilmember O'Connor stated preference that the section be deleted. Councilmember 09/25/06 13 DRAFT Carmody stated disagreement and stated the portion of the contract is similar to that of St. Louis Park and White Bear Lake. Councilmember Niesen suggested additional language that states: "in accordance with City policies," so that the City Council can create a policy regarding this matter in the future. It was the majority consensus not to amend this section of the employment agreement. Section 8E. Participation in Professional Trainine/Develonment Councilmember O'Connor stated preference that the section be deleted. It was the majority consensus not to amend this section of the employment agreement. Mr. Boganey explained that it should be clarified that this language does not give the City Manager authority to spend any amount he wishes on Professional Training/Development, there is a budget in place that the City Manager must follow and the City Council has other means of controlling this spending. Councilmember Niesen stated this is only a matter of limiting things to reasonable limitations. Councilmember Carmody stated that the City Manager includes his attendance in training sessions in the weekly update. Section 10. Expenses Incurred in Performing Duties Councilmember Niesen stated preference that the reference to reimbursement of personal use of his vehicle be deleted. Mayor Kragness explained that the City Manager will fill out an expense report itemizing all of his expenditures. It was the majority consensus not to amend this section of the employment agreement. Section 11. Retirement Benefits Councilmember Niesen stated that the Manager should not be allowed to participate in another pension or retirement fund, other than PERA, to ensure that he does not have a second form of employment. Councilmember Lasman stated the only job the City Council should be concerned with is the one with the City of Brooklyn Center. It was the majority consensus not to amend this section of the employment agreement. Section 12. Discontinuance of Emplovment Relationship Councilmember Niesen stated all the unnecessary verbiage should be deleted. She stated Involuntary Separation does not give the City Manager time to resign. She stated if the City Council were to terminate for cause, resignation should not be an option. Councilmember Carmody stated no change is needed and that it minimizes damage to the City 09/25/06 14 DRAFT and the City Manager's reputation. Mr. LeFevere stated if language provides for discharge for committing a crime that would not be Involuntary Separation. It was the majority consensus not to amend this section of the employment agreement. Section 12D. Pavment Upon Involuntary Separation Item (b) Councilmember Niesen stated concern with the indication that 12 full months of full cost of family health insurance would be provided in the case of Involuntary Separation. She stated disagreement with the period of 12 months and stated it should be replaced with six months due to the high cost of health insurance. Councilmember Carmody stated disagreement and stated preference that it remain as presented. Councilmember Lasman stated 12 months of coverage is acceptable, however, she would be willing to reduce it to six months of coverage. Mr. Boganey stated the reduction from 12 months of full cost of family health insurance to six months is acceptable to him. It was the majority consensus to change the 12 months of full cost of family health insurance to six months of full cost family health insurance. Councilmember Niesen stated "until other employment is found" should be included in the clause. Councilmember Lasman stated it is not likely that someone would get themselves set up with a similar position in less than six months. Section 12F. Pavment Upon Voluntary Termination Councilmember Niesen stated the contract should indicate that no sick leave or at the highest of any other employee which is 40% should be paid at the time of Voluntary Termination. It was the majority consensus not to amend this section of the employment agreement. Section 12G. Councilmember Niesen stated the whole provision should be deleted. Councilmember O'Connor stated agreement. Councilmember Lasman stated the provision is protection of both parties and should remain. Mr. LeFevere responded to Councilmember Niesen in that it is intended to be a waiver of unintentional acts. Councilmember Niesen stated should the City Manager bring forward a lawsuit, this provision indicates that he can seek beyond what is agreed to in the contract. Mr. LeFevere stated if an employee has an unrelated claim, the intent of this language is severance payment and is not intended to be damage for other claims. He stated it is not interpreted to be a payment of another claim. He stated the provision does not expose the City to anything it would not otherwise be exposed to. Councilmember Niesen stated there is no reason to put this provision in the contract, it is only asking for more litigation. Councilmember O'Connor stated agreement. Mr. LeFevere stated the clause is for the protection of the employee and if it is not in the contract, there is no 09/25/06 15 DRAFT r claim they would waive anyway. Councilmember Carmody stated the provision should remain in the contract. It was the majority consensus not to amend this section of the employment agreement. Section 13. Term There was no discussion on this section of the Employment Agreement. Section 14. Indemnification Councilmember Niesen stated the second sentence that reads: "The City shall also defend and hold harmless and indemnify the Manager from all torts, civil damages, penalties, fines, provided the Manager was acting in the performance of Manager's duties" should be deleted. Councilmember Carmody stated disagreement. It was the majority consensus not to amend this section of the employment agreement. Mr. LeFevere stated it is up to the courts to determine if the City Manager were acting in Manager's duties or not. He explained that this is to protect the employee from losing their fortune because of something they did during the job. He stated it is a direct protection for the employee, which would be part of the reason for them to work for the City. Councilmember Lasman stated preference that the section remains as presented. She stated she was glad to know that she would be covered under such a clause if she were acting as a Councilmember. She stated this clause is necessary. It was the majority consensus not to amend this section of the employment agreement. Sections 15 Section 19. There was no discussion on these sections of the Employment Agreement. Councilmember Carmody moved and Councilmember Lasman seconded to approve the City Manager Employment Agreement as presented with one amendment to Section 13D(b) regarding payment by the City of the full cost of family health insurance, striking 12 full months and replacing with six (6) full months and to leave the language on moral turpitude for discussion at the next Council meeting when the City Attorney and City Manager drafts the verbiage. Councilmember Niesen posed two questions to the City Attorney, 1) is the language in Section 13G more protective or less protective to the City; 2) how is the agreement changed once it is entered into overall. In response to Councilmember Niesen's inquiries, Mr. LeFevere stated he has not been able to think of a way that having the clause in Section 13G. is going to harm the City; however, he stated that he is not infallible and a case could come up that this clause could be of disadvantage to the City. He stated this clause is not for the protection of the City, it is of that of the City Manager. He further explained that the contract is for the purpose of compensation and generally for the benefit of the employee; it defines a relationship. He stated the contract could be amended 09/25/06 16 DRAFT with the consent and approval by both parties. It was the majority consensus not to amend this section of the employment agreement. Councilmember Niesen and Councilmember O'Connor voted against the same. Motion passed. 10. ADJOURNMENT Councilmember Carmody moved and Councilmember Lasman seconded adjournment of the City Council meeting at 10:49 p.m. Motion passed unanimously. City Clerk Mayor 09/25/06 17 DRAFT MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA STUDY SESSION SEPTEMBER 25, 2006 CITY HALL COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Study Session and was called to order by Mayor Myrna Kragness at 6:00 p.m. ROLL CALL Mayor Myrna Kragness and Councilmembers Kathleen Carmody, Kay Lasman, Diane Niesen (arrived at 6:03 p.m.), and Mary O'Connor. Also present were Interim City Manager Curt Boganey, and Deputy City Clerk Camille Worley. CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS Councilmember O'Connor requested that the EDA and HRA meeting minutes be approved at the next regular City Council meeting rather than waiting for the next EDA or HRA meeting. Mayor Kragness responded the meetings are different bodies and therefore the minutes can not be approved by the City Council. It was the majority consensus of the City Council to continue to approve the EDA and HRA minutes at there respective meetings. Councilmember O'Connor stated her following corrections to the minutes: Regular Session Page 2 The Brooklyn Center City Council met in Regular Session and was called to order by Mayor Myrna Kragness at 7-04 7:10 p.m. Work Session Page 1 The Brooklyn Center City Council/Economic Development Authority (EDA) met in Work Session and was called to order by Mayor/President Myrna Kragness at 8:09 9:06 p.m. The following meeting minute corrections were submitted by Councilmember Carmody: Work Session Page 3 Councilmember Carmody stated disappointment of the loss of a candidate that she believed was due to a data request by Councilmember Niesen t Couneilme ber Councilmember Lasman inquired about the Brewer and Brew Pub Off -Sale Malt Liquor License being approved on the Consent Agenda prior to the fee being set for the license on the regular portion of the agenda and stated the fee should be set before the license is approved. Interim City Manager Curt Boganey stated it would be appropriate to approve the fee prior to the license approval. The City Council discussed that the Brew Pub Off -Sale Malt Liquor License indicates that the 09/25/06 1 DRAFT fee is required to be paid before the approval of the license. It was the majority consensus of the City Council to make the license approval subject to fee payment. Councilmember Niesen stated she would like to table item 9a. because she has not had an opportunity to meet with the City Council to discuss negotiations for the employment agreement of the City Manager. She stated after a long day of interviews, what she understood is that Mr. Nollenberger would explore Mr. Boganey's contract desires and return to the City Council with the findings. She stated the hiring of the City Manager is the most important job of the City Council and requested a meeting to discuss what will be offered in the contract. Mayor Kragness stated the meeting minutes from the September 16, 2006, meeting indicates that Mr. Nollenberger was to draft an employment agreement and present it to the City Council at its next meeting. Mayor Kragness, stated the proposed contract is the same as the former City Manager, Mike McCauley's, which has never proposed a problem to the City or the City Manager. Councilmember Niesen stated the City Council only received the salary information with regard to Mr. McCauley's contract and not the full contract. She stated she was denied the opportunity to review the entire contract and now that she has reviewed it, the City Council must review it together and come to agreement. Mayor Kragness stated it is a basic contract offered to a City Manager and needs to be moved forward and stated postponing the process is unfair to Mr. Boganey. Councilmember Carmody state she does not wish to table the item. Councilmember Niesen stated there is no City that has an agreement like this based on her research and added that according to the League of Minnesota Cities, the process should not be rushed, therefore she is requesting that it be tabled so that a discussion can take place without the presence of Mr. Boganey. Councilmember O'Connor stated she would like to discuss the item today. Councilmember Lasman stated adequate information has been provided including comparison charts with other cities in and out of Minnesota. She stated she feels the salary that was agreed upon is an amount that the entire City Council is familiar with. She stated the proposed salary is fair and Mr. Boganey has more experience in this City than the other candidates. She stated he was selected as the City Manager and the City Council needs to move forward. She stated there is nothing unusual about the proposed contract. Councilmember Niesen stated the proposed salary is only a factor among others that need to be discussed. She stated the City Council has not made an offer; rather Mr. Boganey has only met with Mr. Nollenberger to craft an agreement. She stated the agreement needs to be discussed paragraph by paragraph and should be discussed by the City Council to be fair. Councilmember Lasman responded with disagreement and stated it would be an open meeting if discussed and tabling the item is not the best option. Councilmember Niesen responded the City Council should meet with the sole purpose of reviewing the contract and stated an offer needs to be created that is protective of the City. Councilmember O'Connor suggested that amendments be made and discussed, and then the amended contract returned to the City Council for approval. She requested an opportunity to review the contract since this is the first time she has seen it. There was discussion regarding the $250 traveling allowance. DISCUSSION OF WORK SESSION AGENDA ITEMS AS TIME PERMITS 09/25/06 2 DRAFT Councilmember Niesen requested postponement of the hotel agreement. She requested a comparison table on the information provided. Mayor Kragness stated she would like to see the item moved forward. Mr. Boganey stated if the item meets the requirements of the City Council, staff recommends it be moved forward. DISCUSSION OF FIRE PENSION PROPOSAL Mr. Boganey stated this is the third and final increase which is part of a gentlemen's agreement made three or fours years ago when the lump sum pension payment amount had fallen substantially below the State maximum. He stated it is requested that it be brought back to the State's allowed maximum given that the total funding is expected to come out of the investment of the State funds that the City receives on an annual basis. He stated the Fire Relief Association sees it as critical to their recruitment activities. He explained a study done of the condition of their investment fund and that forecasted what the effect would be if the payout were increased. He stated Springsted has indicated that in the first year, the City was able to increase it to $6,000 without negatively affecting the ability to make the payment, and in the second year the analysis indicated that the increase to $7,000 could go forward without significantly impacting the fund's ability to cover the payment, and the last study indicated that the $500 increase, bringing it to statutory maximum could also go forward with reasonable expectation that the investment portfolio would be able to cover these costs. He stated the analysis and forecast is just that and not guarantees. He stated the fund appears to be strong enough to support this request. Councilmember O'Connor inquired about other benefits provided to Firefighters and the timeframe of retirement benefit payout. Mr. Boganey stated the Firefighters receive duty pay, mandated FICA, along with paid training. Kent Korman, Brooklyn Center Fire Relief Association, explained that Firefighters are paid $13 per hour and Officers are paid $18 per hour for training. He explained that they are paid $82 for duty shifts and that during fire response; the only two people paid are those on their scheduled duty, all other fire response is volunteer. He stated retirement funds cannot be collected until age 50 and only by those who have at least 10 years invested in the program. There was discussion regarding the decrease in surplus. Councilmember Carmody inquired about the retention of firefighters. Mr. Korman responded he hopes the pension proposal will assist in retention of Firefighters. He stated the last time the City Council had to make a payment to the pension was in 2002 for approximately $16,000. Mayor Kragness stated she is in favor of approval, Councilmember Lasman agreed. There was discussion of pension payments made in recent years and the amount of those payments. The majority consensus of the City Council was to move the item to the next City Council agenda ADJOURNMENT 09/25/06 3 DRAFT Councilmember Carmody moved and Councilmember Lasman seconded to close the Study Session at 6:48 p.m. Motion assed unanimously. p City Clerk Mayor 09/25/06 4 DRAFT MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION SEPTEMBER 25, 2006 CITY HALL COUNCIL CHAMBERS 1. INFORMAL OPEN FORUM WITH CITY COUNCIL CALL TO ORDER INFORMAL OPEN FORUM .The Brooklyn Center City Council met in Informal Open Forum and was called to order by Mayor Myrna Kragness at 6:48 p.m. ROLL CALL Mayor Myrna Kragness and Councilmembers Kathleen Carmody, Kay Lasman, Diane Niesen, and Mary O'Connor. Also present were Interim City Manager Curt Boganey, Public Works Director /City Engineer Todd Blomstrom, City Attorney Charlie LeFevere, and Deputy City Clerk Camille Worley. Charles Atkinson, 5309 64 Avenue, stated concern with the condition of the City, especially with the upkeep of property. He discussed a home with garbage piled up to the eaves of the home. He stated the property is still a mess with excessive garbage and poor lawn conditions. He stated he is concerned with the amount of rental property, amount of homes for sale, and un- repaired storm damage. He stated he is considering moving due to the poor conditions. Mayor Kragness stated improvement to the appearance of the City is a long process. She addressed a particular legal matter of the property he discussed. She stated Code Enforcement is doing the best job they can. Councilmember Carmody stated it is considered unconstitutional to restrict rental property. Councilmember Lasman moved and Councilmember Carmody seconded to close the Informal Open Forum at 6:51 p.m. Motion passed unanimously. 2. INVOCATION Mayor Kragness offered a prayer as the Invocation. 3. CALL TO ORDER REGULAR BUSINESS MEETING Session and was called to order b Mayor Brooklyn Center City Council met in Regular Sess Y The ty gu Y Myrna Kragness at 7:00 p.m. 09/25/06 1 DRAFT 4. ROLL CALL Mayor Myrna Kragness and Councilmembers Kathleen Carmody, Kay Lasman, Diane Niesen, and Mary O'Connor. Also present were Interim City Manager Curt Boganey, Public Works Director /City Engineer Todd Blomstrom, City Attorney Charlie LeFevere, and Deputy City Clerk Camille Worley. 5. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 6. COUNCIL REPORT Councilmember O'Connor stated she attended the Park and Recreation Commission meeting on September 19, 2006, where the Parks Capital Improvement Plan was discussed and that it was extended. She stated the Three Rivers Park District would like to lease the City's land and maintain the regional trails. She stated it was indicated that the Central Garage Salt Storage Building would be completed by November I". She stated there was also an update given on the Golf Course Capital Improvement Plan funding. Councilmember Lasman stated she attended the District 279 Community Cafe on September 13th, which is an opportunity provided by the District to provide input on the District's direction. She stated the District will be having the Parade of Schools on October 3 rd and 5th which is open to the community in order to showcase improvements made to each of the schools as a result of the bond referendum in 2000. She stated she attended a Block Watch meeting on September 14th, which was a time to visit and hear concerns on the particular neighborhoods. She stated she also attended a dinner with the City Manager candidates on September 15 which was a great way to meet the candidates under a social setting. She stated on September 16 the City Council attended interviews, narrowing the search down to the finalist including Curt Boganey. She stated the process was thorough. She stated on September 19 she attended the Financial Commission meting concerning language changes on investments and other items, with more information to be submitted to the City Council at a later day. She stated on September 20 she attended the Crime Prevention meeting where two new Officers and the loss of one Officer to be filled later at a later date was discussed. She stated Crime Prevention will also be contributing $1,000 to the Summer Safety Camp which will help to enable the youth program to continue. She stated on September 21 she attended the second Special Events Committee meeting and stated the Special Events Awards evening will be on February 3, 2007. She stated on September 24 she attended the Lions Pancake Breakfast which was a celebration of the Brooklyn Center All School Reunion. She mentioned that Hennepin County has a Small Business and Finance presentation on Thursday, October 9, at 7:00 p.m. at the Library for all entrepreneurs who are interested in starting a new business. Councilmember Carmody stated she attended a few of the same meetings as Councilmember Lasman. She discussed the Housing Commission meeting that was held on September 19 She stated she will distribute the report at the Work Session. 09/25/06 2 DRAFT Councilmember Niesen stated she attended the quarterly meeting held by the Northwest Suburbs Cable Communications Commission. She stated they tabled the exploration of WI -FI with joint Cities due to business model reasons. She stated they are undertaking their Preliminary Budget and Comcast gave a presentation on the acquisition of Time Warner and new service features. Mayor Kragness read a paragraph regarding the rating of Centerbrook Golf Course that praises the course as the Best Condition Par 3 Course. She congratulated the crew of the golf course. She stated there are some volunteer opportunities in Brooklyn Center including the Housing Commission, Financial Commission, and Charter Commission. She encouraged those interested to call Sharon Knutson at City Hall. 7. APPROVAL OF AGENDA AND CONSENT AGENDA Councilmember Niesen moved and Councilmember O'Connor seconded to table item 9a. City Manager Employment Agreement. Councilmember Niesen stated the hiring of a City Manager is the most important job of a City Council. She stated the City Council made a choice to make an offer to a candidate and she thought the offer would be discussed prior to the offer being presented to the candidate. She stated she does not feel this is the time or the place for the City Council to make a decision on the employment contract of the City Manager. She stated she has not had an opportunity to give her opinion on the proposed employment agreement. She stated time has not been allowed for the City Council to meet and discuss an offer. She stated she was not familiar with the contract; however she made effort to revise the City Manager review form in which she was unsuccessful. She stated she was unaware of the contract provision of the previous City Manager until recently and would now like to allow time to discuss the matter. She stated to be fair, the item should be tabled for two weeks so that she may have the time to review the offer made to the Interim City Manager Curt Boganey. Councilmember O'Connor agreed that the proposed contract should be fully discussed. Councilmember Carmody stated it is important to keep it on the agenda and a convincing argument has not been made to remove it from agenda. Mayor Kragness, Councilmember Lasman, and Councilmember Carmody voted against the same. Motion failed. Councilmember Carmody moved and Councilmember Lasman seconded to approve the consent agenda and agenda as amended with the removal of the Brewer and Brew Pub Off -Sale Malt Liquor License included in Item No. 7b. from the Consent Agenda to Council Consideration Item No. 9b. and amendments to the September 11, 2006, Regular Session and September 11, 2006, Work Session minutes as discussed at the Study Session. The following consent items were approved: 7a. APPROVAL OF MINUTES 1. September 11, 2006 Study Session 2. September 11, 2006 —Regular Session 3. September 11, 2006 —Work Session 09/25/06 3 DRAFT 4. September 13, 2006 Special Session 5. September 16, 2006 Special Session 7b. LICENSES COMMERCIAL KENNEL Gentle Touch Animal Sanctuary 4900 France Ave N MECHANICAL ELK Mechanical HVAC Inc 6361 Sunfish Lake Ct., Ramsey Gopher Heating Sheet Metal, Inc. 12330 Ottawa Ave, Savage Snell Mechanical Inc. 8850 Wentworth Ave So, Bloomington SIGNHANGER Albrecht Sign Co., Inc. 12437 Magnolia Cir NW, Coon Rapids Apparently Graphic, Ltd. 7420 West Lake Street, St. Louis Park RENTAL Renewal 3007 68`" Ave N (Single Family) Kao Vang NONE 5548 Dupont Ave N (Single Family) John Lindahl ASSAULT 5548 Dupont Ave N (Single Family) Dion Properties, Inc. ASSAULT (There were no calls for service for the following) 5332 Lilac Drive (Single Family) Mark Lundberg 5400 Sailor Lane (Single Family) Duane Christiansen 5925 Washburn Ave N (Single Family) Cheng Lor Initial (There were no calls for service for the following) 3713 54 Ave N (Single Family) Yer Yang 5730 Northport Dr (Single Family) Tuyet Le Motion passed unanimously. Councilmember Niesen moved and Councilmember O'Connor seconded to move Item No. 9a. to the end of the agenda. Mayor Kragness and Councilmember Lasman voted against the same. Motion passed. 8. PUBLIC HEARING 8a. AN ORDINANCE AMENDING CHAPTER 35 OF THE CITY ORDINANCES REGARDING THE ZONING CLASSIFICATION OF CERTAIN LAND (EASTERLY OF BROOKLYN BOULEVARD BETWEEN I -94 AND 69TH AVENUE NORTH) 09/25/06 4 DRAFT Interim City Manager Curt Boganey explained that it is necessary that the property be replatted and that the City Council should not approve the rezoning, rather table for a later date. Councilmember Lasman moved and Councilmember Carmody seconded to open the Public Hearing on An Ordinance Amending Chapter 35 of the City Ordinances Regarding the Zoning Classification of Certain Land (Easterly of Brooklyn Boulevard Between I -94 and 69th Avenue North). Motion passed unanimously. No public input was offered. Councilmember Carmody moved and Councilmember Lasman seconded to close the Public Hearing. Motion passed unanimously. Councilmember Lasman moved and Councilmember Carmody seconded to table to the November 13, 2006, agenda an Ordinance Amending Chapter 35 of the City Ordinances Regarding the Zoning Classification of Certain Land (Easterly of Brooklyn Boulevard Between I -94 and 69th Avenue North). Motion passed unanimously. 9. COUNCIL CONSIDERATION ITEMS 9a CITY MANAGER EMPLOYMENT AGREEMENT This item was moved to the end of Council Consideration Items. 9b. RESOLUTION NO. 2006 -107 ESTABLISHING FEE FOR BREWER AND BREW PUB OFF -SALE MALT LIQUOR LICENSE Mr. Boganey explained that amendments have been made to the Liquor portion of the Ordinance which includes a Brew Pub to be allowed to sell growlers. He stated since the adoption, Surly Brewery has submitted an application for the license. He stated since the license is new, a Resolution has been prepared regarding fees for that license. Councilmember Lasman moved and Councilmember Carmody seconded to adopt RESOLUTION NO. 2006 -107 Establishing Fee for Brewer and Brew Pub Off -Sale Malt Liquor License and License Application for Surly Brewing Company pending fee payment. Motion passed unanimously. 9c. RESOLUTION NO. 2006-108 AUTHORIZING EXECUTION OF A FIBER OPTIC EASEMENT FOR ACCESS COMMUNICATIONS INC. 09/25/06 5 DRAFT i Mr. Boganey stated the City Council authorized a Fiber Optic Agreement to allow installation of fiber optic materials for the City's network. He stated this has been completed and an agreement has been entered into with Access Communications in order to share the easement and in return Access Communications will provide a one call service to locate the fiber optic line, an annual value of $7,000. Councilmember O'Connor asked if Access Communications would be allowed to install additional materials along the City's in the same easement area. Mr. Boganey responded yes. Councilmember Carmody moved and Councilmember Lasman seconded to adopt RESOLUTION NO. 2006 -108 Authorizing Execution of a Fiber Optic Easement for Access Communications Inc. Councilmember Niesen inquired about the City's fiber optic capacity and if the excess capacity could be sold to them. Mr. Boganey responded Access Communications would have no interest in the City's fiber optic equipment. There was discussion regarding the previously purchased fiber optic equipment that was to be sold. Councilmember O'Connor inquired about the ongoing maintenance responsibility of the lines. Mr. Boganey responded the City would maintain the City's equipment and Access Communications would maintain their equipment. He also stated that Access Communications will provide the locate for both the City's equipment and their own. Motion passed unanimously. 9d. RESOLUTION NO. 2006 -109 DECLARING A PUBLIC NUISANCE AND ORDERING THE REMOVAL OF DISEASED TREES Mr. Boganey stated it is the recommendation of City staff that the City Council approve the Declaration of Public Nuisance so that the diseased trees can be removed. Councilmember Carmody moved and Councilmember Lasman seconded to adopt RESOLUTION NO. 2006 -109 Declaring a Public Nuisance and Ordering the Removal of Diseased Trees. Councilmember O'Connor inquired about the number of removed trees. She inquired about a tree on Lyndale Ave N that has been marked for some time. Mr. Blomstrom responded that the memorandum included a typographical error in that it should read a total of 148 rather than 147. He explained that there is a possibility that Hennepin County marked the tree in question; however he will research the item. Councilmember O'Connor voted against the same. Motion passed. 9e. RESOLUTION NO. 2006 -110 ACCEPTING WORK PERFORMED AND AUTHORIZING FINAL PAYMENT, IMPROVEMENT PROJECT NO. 2006 -10, 09/25/06 6 DRAFT CONTRACT 2006 -D, 2006 STREET SEAL COATING Mr. Boganey stated the purpose of the Resolution and stated it is a joint effort with several other cities to ensure the best price for this service. He stated the amount of the final payment is $59,657.50 and stated staff recommends approval of the proposed. Councilmember Lasman moved and Councilmember Carmody seconded to adopt RESOLUTION NO. 2006 -110 Accepting Work Performed and Authorizing Final Payment, Improvement Project No. 2006 -10, Contract 2006 -D, 2006 Street Seal Coating. Motion passed unanimously. 9f. PROVISIONAL RENTAL DWELLING LICENSE 5240 DREW AVENUE NORTH Mr. Boganey explained the proposal and stated the property experienced numerous issues and complaints resulting in ineligibility for a rental license, however he stated the property has been under new ownership and no calls have been received since April 2006. He stated the new owner has been improving the property. He stated a review of the property would occur after six months with eligibility of a non provisional license after 12 months. Mr. Schumacher responded to Councilmember Lasman's inquiry regarding evicted tenants and stated freeloaders were living on the property and only three tenants who have signed a lease and paid the rent remain in the building. He stated rent will increase after the renovations are complete. He stated he purchased the property for the purpose_ of development and the property can be left unoccupied until the right tenants are found. He stated he resides in North Minneapolis and will be the manager of the proposed property. Mayor Kragness suggested that Mr. Schumacher get involved in the Association for Rental Management (ARM) group. Councilmember Lasman moved and Councilmember Niesen seconded to approve the application and the Mitigation Plan and Rental License. Motion passed unanimously. 9g. AN ORDINANCE RELATING TO THE LICENSURE OF MASSAGE PARLORS; AMENDING BROOKLYN CENTER CITY CODE SECTION 23 -1712 Mr. Boganey discussed the purpose and history of the Ordinance Amendment and stated the changes discussed by the City Council with regards to Massage Parlors are included in the proposal. Councilmember Lasman moved and Councilmember Carmody seconded to approve first reading of ordinance and set second reading and Public Hearing on October 23, 2006. Councilmember Carmody stated the amendments are to the requirements for a Health Club, not a Massage Parlor. Councilmember Lasman stated it will work better now that the State Building Code in relation to restrooms is included in the City of Brooklyn Center's Ordinance. 09/25/06 7 DRAFT Motion passed unanimously. 9a. CITY MANAGER EMPLOYMENT AGREEMENT Councilmember Niesen stated it is important to the City that the top official be compensated fairly and because this agreement sets precedence, she investigated the proposed contract, that being the same contract as the former City Manager, Mike McCauley. She stated that her redlined copy of the contract was submitted to the City Council for review. She stated that she is proposing something that is fair and a contract she would approve if the City Council is in agreement. She stated she sought contracts from several neighboring communities for the purpose of comparison. She stated she spoke with the League of Minnesota Cities who emailed her information on hiring the City Manager. She stated disappointment that Mr. Nollenberger was absent from the meeting. Mayor Kragness stated Mr. Nollenberger was instructed to use Mr. Mc aule s contract as a b asis. C Y Councilmember Niesen discussed the ro osed vacation and sick leave and stated she contacted p P several legal firms regarding the matter, one at her own expense. Mayor Kragness stated the decision can not be made by Councilmember Niesen alone. Councilmember Carmody stated objection to several of Councilmember Niesen's comments and stated disagreement with most of the redlining done by Councilmember Niesen. She stated Councilmember Niesen has objected to several steps of the process for the search for the new City Manager, all of which were given to the City Council on a dateline in advance. She stated surprise that Councilmember Niesen mentioned that this was the most important task of the City Council, however in the past three years the contract of Mr. McCauley was approved; she did not request to review the contract. She stated Councilmember Niesen's argument is not convincing. Councilmember Niesen stated she should have reviewed the contract, however she was learning at the time. She stated the full contract was never supplied with exception of the car allowance and salary portions. She discussed her proposed amended evaluation form for the City Manager. She stated that she collected several opinions on the proposed contract, one of which by another law firm. She stated objection to several portions of the contract and stated reasons for those objections. She stated Brooklyn Center can not afford to pay this generous contract that puts the City at risk. She discussed concern for the sections relating to termination and moral turpitude. She discussed the salary history of the previous City Manager and Mr. Boganey. She stated she would like to review the contract with the City Council, item by item. Councilmember O'Connor agreed with many of Councilmember Niesen's concerns and stated she would like the City Council to walk through each item of the contract. Councilmember Carmody pointed out that other contracts provided for comparison by Councilmember Niesen should also be reviewed. The City Council discussed the following aspects of the City Manager Employment Agreement: Section 1. Emplovment Councilmember Niesen stated she has no amendments to the paragraphs that precede Section 1 and no changes to Section 1 Employment. She stated she would like to add a section titled: Term of Agreement that states: "the agreement shall terminate on the 26 day of September 2007 09/25/06 8 DRAFT and subsequent extension shall be allowed only by a majority vote of the City Council prior to the expiration date." She stated this does not allow for an indefinite contract, however a proactive stance that this contract will be reviewed year to year. Councilmember Carmody stated disagreement and pointed out a section of the St. Louis Park agreement in that the expiration or termination of the contract is discussed. She stated she is not in favor to change this section. Councilmember Niesen discussed the importance of indicating an expiration of the contract. The City Council discussed this section in comparison to those employment agreements of other communities. Councilmember Niesen indicated the importance of including removal for cause in the agreement. The City Council discussed the amount Mr. McCauley received at the time of separation, that being only his regular salary. The City Council discussed termination on malfeasance, moral turpitude, or illegal activity and the lack of it being addressed in the proposed employment contract. Councilmember Niesen and Councilmember O'Connor stated they wish to include language addressing termination on malfeasance, moral turpitude, or illegal activity in the City Manager Employment Agreement. City Attorney Charlie LeFevere stated the contract that the City has had in place for many years is based on a slightly different premise. He stated the idea is that an employer can negotiate every piece it wishes. He stated it is thought by many employers to start off with a more cooperative relationship. He stated with Mr. McCauley's contract, it does not have a tremendous amount of detail. He stated a provision on moral turpitude is not unreasonable; however the term moral turpitude does not have a clear definition and means different things to different people. He stated the proposed contract is predicated on the idea that it is protection for the employee. Councilmember Niesen stated there is sample language addressing termination on malfeasance, moral turpitude, or illegal activity provided by the League of Minnesota Cities and suggested that the City use the language provided by them. Councilmember Niesen read the language as follows: However, in the event employee is terminated because of his or her malfeasance in office, gross misconduct, conviction for a felony, or conviction for an illegal act involving personal gain for employee, then employer shall have no obligation to pay termination benefits. The City Council and Staff discussed severance packages and circumstances of other City employees. Mr. Boganey stated that he believes Mr. McCauley provided a copy of the contract in question to Councilmember Niesen on two different occasions. Councilmember Niesen asked that the language from the League of Minnesota Cities be inserted into the employment agreement. Councilmember Carmody stated she would be in favor of inserting the language if inserted exactly as stated by Councilmember Niesen. Mr. Boganey stated if the City Council wishes to add the language eliminating certain severance benefits if terminated for illegal actions by the City manager, he would agree. He suggested that the City Council direct the City Attorney to negotiate language with the City Manager on this issue. 09/25/06 9 DRAFT The City Council discussed Section 13d.a. regarding sick leave. Councilmember O'Connor and Councilmember Niesen stated the sick leave should not be paid upon Involuntary Separation. Mr. Boganey stated he would be willing to reach an agreement on this section; however the attorney should be directed to negotiate the language that is acceptable to both parties. Section 2. Duties Councilmember O'Connor stated the language "which are consistent therewith" should be deleted. It was the majority consensus not to amend this section of the employment agreement. Section 3. Discharge of Duties Councilmember Niesen stated the following last sentence "To that end, the Manager will work flexible hours as is necessary to Manager to discharge the duties of his position" should be deleted because it enters into the issue of flextime. Councilmember Carmody stated disagreement with amending the section and pointed out other comparison contracts that have similar language. Councilmember Lasman stated this item does not change the contract in a substantial manner and that only items of importance should be discussed. Section 4. Evaluation Councilmember O'Connor stated she would like to change the date of evaluation to July so that a complete year of management is reviewed. Mr. Boganey explained that this section of the contract was negotiated and he gave a lot to agree to the proposed language. Councilmember Carmody stated typically an evaluation is around one year, however in a position of City Manager, the evaluation should be done in July. The City Council discussed the salary amount and the history of Mr. Boganey's salary and that his position has changed, allowing for a higher rate of pay. Councilmember Niesen stated the salary and history comparison is important and asked what Mr. Boganey gave up while making 30% more than in the year 2005. Councilmember Carmody stated it is an inappropriate question and stated preference that Mr. Boganey not to answer the question. Mr. Boganey did not answer the question. Councilmember O'Connor suggested that an evaluation be given on the stated date, however not a raise. Mayor Kragness stated a raise is typically involved in an evaluation. Section 5. Participation in Emnlovee Benefits There was no discussion on this section of the Employment Agreement. Section 6. Vacation and Holidays Councilmember O'Connor stated preference to delete the third sentence that reads "The Manager may, at Manager's discretion take Y2 day increments of vacation leave for an absence from the 09/25/06 10 DRAFT performance of Manager's duties." Councilmember Carmody stated disagreement and stated the City Manager should be allowed to use a half day of vacation due to his busy schedule. Councilmember Niesen stated the contract indicates that if the City Manager was to work one hour in a given day, he would not be required to use vacation for the remaining seven hours, which he should have to do. Mr. Bo ane stated it is the job of employees to make sure certain jobs get performed. g Y J exempt P em to p Y He stated he believes the Federal Law indicates that exempt employees may not be required to use vacation for absences that are less than a day. Councilmember Carmody stated there are instances where the City Manager will work off hours and he should be able to use discretion in taking time off. She stated the White Bear Lake contract has similar language as the proposed agreement. Mr. LeFevere stated the language is not intended to give someone free vacation, rather be a limitation on the use of flextime. He stated if the sentence is removed and placed in the flextime area and stated the manager can use flextime, provided if he takes the whole day off, he must use vacation time. He stated this would represent the intent of the contract. It was the majority consensus not to amend this section of the employment agreement. Section 7. Sick Leave Councilmember Niesen stated preference to delete the second paragraph that reads: "Upon leaving the City's employ, for whatever reason, the Manager shall be entitled to payment for all unused sick leave in accordance with the provision of the City's personnel code applicable to nonunion employees." She stated it should be removed because the contract includes enough payments to the City Manager and should not be paid for sick leave. Mayor Kragness stated disagreement. Councilmember O'Connor stated agreement with Councilmember Niesen. Councilmember Carmody indicated that other cities pay for sick leave in comparison contracts and stated objection to removal of the language. Councilmember Niesen stated it should be treated the same as other employees in that a portion of sick leave is paid based on the years of service. She stated the maximum of paid sick leave should be one third of that accrued. It was the majority consensus not to amend this section of the employment agreement. Section 8. Compensation Section 8A. Initial Salary Councilmember O'Connor stated the annual salary should remain at $113,500. Councilmember Carmody stated the annual salary of $115,000 should remain. Councilmember Lasman stated the annual salary of $113,500 was for the Interim City Manager position and his position will change now that he is the City Manager. She stated the agreement 09/25/06 11 DRAFT is not generous, however it is fair. Councilmember O'Connor asked if Mr. Boganey will hire an Assistant City Manager. Mr. Boganey responded he has been performing the work of two jobs, which has taken him from his family more than he would like, which will not improve a great deal, therefore for the benefit of the City and himself, he will need some assistance. He further explained that he is not 100% certain he would recommend that the position of Assistant City Manager be filled as it exists. He stated assuming an employment agreement is agreed upon, he will look for ways that will result in efficiency and reduced cost in the management structure. He stated this may result in some consolidations. He stated he needs help, however it may not be with an Assistant City Manager position as it currently exists. Councilmember O'Connor stated if an Assistant City Manager is hired, Mr. Boganey's salary should remain at $113,500 with a raise to follow at the time of evaluation. Councilmember Carmody stated objection to amending this section of the employment agreement. It was the majority consensus not to amend this section of the employment agreement in that the salary is listed at $115,000 annually. Councilmember Niesen stated the annual salary should remain at $113,500 until completion of the evaluation. Section 8B. Evaluation and Salary Increases Councilmember Niesen stated the wording in the contracts indicates that increasing compensation should be considered when the City evaluates an employee. She stated preference that the evaluation is given at the end of the year so that the City Council goals are incorporated. Councilmember O'Connor stated he should get an increase on January l like all other employees. She recommended an increase of 2 r Councilmember Carmody explained that the City Manager is supervising employees with salaries over $100,000; therefore his salary should remain at $115,000 until his evaluation. It was the majority consensus not to amend this section of the employment agreement. Mr. Boganey explained that according to the contract, the evaluation would occur in July of each year, with the salary increase at the beginning of the year. Mr. LeFevere explained that after the 2007 salary increase, the timing of the decision is specified in the contract, however the criteria is not. He stated if the City Council deems the performance unacceptable, there would be no increase. He stated if the performance is deemed acceptable, however the City can not afford an increase, there would be no increase. He stated there are no specifications on what the City Council has to do, just the timeframe in which action must take place. Councilmember O'Connor stated the $4,000 increase is a 3.47% increase, which is not consistent 09/25/06 12 DRAFT with other employees. Councilmember Niesen stated agreement. Section 8C. Personal Auto Usaae Councilmember Niesen stated she would like to delete the entire paragraph. Councilmember O'Connor stated agreement. Councilmember Carmody compared the section on car allowance to other contracts from the comparison cities. She stated objection to amending the paragraph. Councilmember Niesen stated the car allowance aspect of this contract is not legal because it is considered double dipping in that he is reimbursed for a car allowance along with mileage. Mr. LeFevere stated this agreement is not the same as Mr. McCauley's in the Car Allowance aspect. He stated the salary is set and does not say it includes the car allowance. He stated it is up to the City Council on how Mr. Boganey should be reimbursed. Councilmember Lasman read from information provided that indicates that the average annual salary for a community the size of Brooklyn Center, not including the car allowance is $110,000. Mr. Boganey stated rather than including a car allowance of $6,000, he agreed to not consider adding a car allowance, however agreeing on an annual salary of $115,000. He stated there is nothing in the agreement that specifically provides consideration for a car allowance, however the salary amount took into consideration that there is no car allowance in the agreement. He stated the personal auto usage in the agreement is for mileage. Councilmember Niesen stated she is troubled by this matter because she recalls the reason Mr. McCauley's salary increased was due to the car allowance being added to his salary. She stated mileage reimbursement should not have been allowed at the time he was receiving a car allowance. She stated concern that when Mr. Boganey received 95% of Mr. McCauley's salary, a car allowance was included in the salary used. Councilmember Carmody stated when the City Council made an agreement to have Mr. Boganey be Interim City Manager with a salary of $113,500, a car allowance was not discussed. She stated other candidates would have been at comparable salary with or without the car allowance, therefore this agreement is not excessive. Mayor Kragness explained that he receives mileage because he has to travel places for work. Councilmember Lasman explained that if Mr. Boganey is not using his personal vehicle, the City would have to provide one for his use, therefore this alternative is less expensive for the City. Mr. Boganey stated he did not insist on a car allowance because there would be an offset in salary. He stated it is all salary to the IRS. It was the majority consensus not to amend this section of the employment agreement. Section 8D. Professional Membership Dues and Professional Subscriptions Councilmember O'Connor stated preference that the section be deleted. Councilmember 09/25/06 13 DRAFT Carmody stated disagreement and stated the portion of the contract is similar to that of St. Louis Park and White Bear Lake. Councilmember Niesen suggested additional language that states: "in accordance with City policies," so that the City Council can create a policy regarding this matter in the future. It was the majority consensus not to amend this section of the employment agreement. Section 8E. Participation in Professional Training/Development Councilmember O'Connor stated preference that the section be deleted. It was the majority consensus not to amend this section of the employment agreement. Mr. Boganey explained that it should be clarified that this language does not give the City Manager authority to spend any amount he wishes on Professional Training/Development, there is a budget in place that the City Manager must follow and the City Council has other means of controlling this spending. Councilmember Niesen stated this is only a matter of limiting things to reasonable limitations. Councilmember Carmody stated that the City Manager includes his attendance in training sessions in the weekly update. Section 10. Expenses Incurred in Performing Duties Councilmember Niesen stated preference that the reference to reimbursement of personal use of his vehicle be deleted. Mayor Kragness explained that the City Manager will fill out an expense report itemizing all of his expenditures. It was the majority consensus not to amend this section of the employment agreement. Section 11. Retirement Benefits Councilmember Niesen stated that the Manager should not be allowed to participate in another pension or retirement fund, other than PERA, to ensure that he does not have a second form of employment. Councilmember Lasman stated the only job the City Council should be concerned with is the one with the City of Brooklyn Center. It was the majority consensus not to amend this section of the employment agreement. Section 12. Discontinuance of Emplovment Relationship Councilmember Niesen stated all the unnecessary verbiage should be deleted. She stated Involuntary Separation does not give the City Manager time to resign. She stated if the City Council were to terminate for cause, resignation should not be an option. Councilmember Carmody stated no change is needed and that it minimizes damage to the City 09/25/06 14 DRAFT and the City Manager's reputation. Mr. LeFevere stated if language provides for discharge for committing a crime that would not be Involuntary Separation. It was the majority consensus not to amend this section of the employment agreement. Section 12D. Pavment Unon Involuntary Separation Item (b) Councilmember Niesen stated concern with the indication that 12 full months of full cost of family health insurance would be provided in the case of Involuntary Separation. She stated disagreement with the period of 12 months and stated it should be replaced with six months due to the high cost of health insurance. Councilmember Carmody stated disagreement and stated preference that it remain as presented. Councilmember Lasman stated 12 months of coverage is acceptable, however, she would be willing to reduce it to six months of coverage. Mr. Boganey stated the reduction from 12 months of full cost of family health insurance to six months is acceptable to him. It was the majority consensus to change the 12 months of full cost of family health insurance to six months of full cost family health insurance. Councilmember Niesen stated "until other employment is found" should be included in the clause. Councilmember Lasman stated it is not likely that someone would get themselves set up with a similar position in less than six months. Section 12F. Pavment Upon Voluntary Termination Councilmember Niesen stated the contract should indicate that no sick leave or at the highest of any other employee which is 40% should be paid at the time of Voluntary Termination. It was the majority consensus not to amend this section of the employment agreement. Section 12G. Councilmember Niesen stated the whole provision should be deleted. Councilmember O'Connor stated agreement. Councilmember Lasman stated the provision is protection of both parties and should remain. Mr. LeFevere responded to Councilmember Niesen in that it is intended to be a waiver of unintentional acts. Councilmember Niesen stated should the City Manager bring forward a lawsuit, this provision indicates that he can seek beyond what is agreed to in the contract. Mr. LeFevere stated if an employee has an unrelated claim, the intent of this language is severance payment and is not intended to be damage for other claims. He stated it is not interpreted to be a payment of another claim. He stated the provision does not expose the City to anything it would not otherwise be exposed to. Councilmember Niesen stated there is no reason to put this provision in the contract, it is only asking for more litigation. Councilmember O'Connor stated agreement. Mr. LeFevere stated the clause is for the protection of the employee and if it is not in the contract, there is no 09/25/06 15 DRAFT claim they would waive anyway. Councilmember Carmody stated the provision should remain in the contract. It was the majority consensus not to amend this section of the employment agreement. Section 13. Term There was no discussion on this section of the Employment Agreement. Section 14. Indemnification Councilmember Niesen stated the second sentence that reads: "The City shall also defend and hold harmless and indemnify the Manager from all torts, civil damages, penalties, fines, provided the Manager was acting in the performance of Manager's duties" should be deleted. Councilmember Carmody stated disagreement. It was the majority consensus not to amend this section of the employment agreement. Mr. LeFevere stated it is up to the courts to determine if the City Manager were acting in Manager's duties or not. He explained that this is to protect the employee from losing their fortune because of something they did during the job. He stated it is a direct protection for the employee, which would be part of the reason for them to work for the City. Councilmember Lasman stated preference that the section remains as presented. She stated she was glad to know that she would be covered under such a clause if she were acting as a Councilmember. She stated this clause is necessary. It was the majority consensus not to amend this section of the employment agreement. Sections 15 Section 19. There was no discussion on these sections of the Employment Agreement. Councilmember Carmody moved and Councilmember Lasman seconded to approve the City Manager Employment Agreement as presented with one amendment to Section 131)(b) regarding payment by the City of the full cost of family health insurance, striking 12 full months and replacing with six (6) full months and to leave the language on moral turpitude for discussion at the next Council meeting when the City Attorney and City Manager drafts the verbiage. Councilmember Niesen posed two questions to the City Attorney, 1) is the language in Section 13G more protective or less protective to the City; 2) how is the agreement changed once it is entered into overall In response to Councilmember Niesen's inquiries, Mr. LeFevere stated he has not been able to think of a way that having the clause in Section 13G. is going to harm the City; however, he stated that he is not infallible and a case could come up that this clause could be of disadvantage to the City. He stated this clause is not for the protection of the City, it is of that of the City Manager. He further explained that the contract is for the purpose of compensation and generally for the benefit of the employee; it defines a relationship. He stated the contract could be amended 09/25/06 16 DRAFT with the consent and approval by both parties. It was the majority consensus not to amend this section of the employment agreement. Councilmember Niesen and Councilmember O'Connor voted against the same. Motion passed. 10. ADJOURNMENT Councilmember Carmody moved and Councilmember Lasman seconded adjournment of the City Council meeting at 10:49 p.m. Motion passed unanimously. City Clerk Mayor 09/25/06 17 DRAFT MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA WORK SESSION SEPTEMBER 25, 2006 CITY HALL COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council/Economic Development Authority (EDA) met in Work Session and was called to order by Mayor/President Myrna Kragness at 10:50 p.m. ROLL CALL Mayor/President Myrna Kragness and Councilmembers /Commissioners Kathleen Carmody, Kay Lasman, and Mary O'Connor. Also present were Interim City Manager Curt Boganey, and Deputy City Clerk Camille Worley. Councilmember Niesen left the Council Chambers prior to the beginning of the Work Session. EBHC HOTEL DEVELOPMENT Interim City Manager Curt Boganey stated the item could be postponed two weeks. tY g g Y P ESTABLISH AGENDA FOR NOVEMBER 11, 2006, GOAL SETTING SESSION Mr. Boganey stated many facilitators are available on November 11, 2006. He asked if it is the interest of the City Council to do long range planning or focus on the next year. He discussed the option of involving the Staff at either the retreat or collecting input prior to the retreat. Councilmember Carmody stated that long range planning and team building may be moot points with the reelections. She suggested a half a day to set goals for the year, such as from 9:00 a.m. to 12:00 p.m. Mayor Kragness, Councilmember Lasman, and Councilmember Carmody stated interest in City Staff involvement in the City Council retreat. REQUEST FROM COUNCILMEMBER NIESEN TO DISCUSS FINANCIAL REPORTS Councilmember Niesen was not present for this discussion. Councilmember O'Connor stated she would like to receive reports for purchases over $10,000. Mr. Boganey stated the item would be placed back on the agenda. 09/25/06 1 DRAFT MISCELLANEOUS Councilmember O'Connor discussed a complaint received from Nancy Curtis that the City Hall office was closed at 4 :28 p.m. Mr. Boganey responded that the two front desk employees along with the City Clerk claim they were in the office at that time and the door was open at 4:30 p.m. He stated the door is kept open and employees will remain in the office until all public who entered by 4:30 p.m. have been helped. ADJOURNMENT Councilmember /Commissioner Carmody moved and Councilmember /Commissioner Lasman seconded adjournment of the City Council /Economic Development Authority Work Session at 11:00 P.M. Motion passed unanimously. City Clerk Mayor /President 09/25/06 2 DRAFT City Council Agenda Item No. 7b City of Brooklyn Center A Millennium Community TO: Curt Boganey, City Manager FROM: Sharon Knutson, City Clerk 11 Vvy( DATE: October 4, 2006 SUBJECT: Licenses for Council Approval The following companies /persons have applied for City licenses as noted. Each company /person has fulfilled the requirements of the City Ordinance governing respective licenses, submitted appropriate applications, and paid proper fees. Licenses to be approved by the City Council on October 9, 2006, are as follows: MECHANICAL American Appliance 340123 rd Ave NW, Coon Rapids Assured Heating A/C 334 Dean Ave E, Champlin In -A -Vent Heating and A/C 6101 104 Circle, Brooklyn Park RENTAL Renewal (There were no calls for service for the following) 540163 d Ave N (1 Bldg, 4 Units) John Schwarz 2807 66` Ave N (Single Family) Nicole Franklin 5347 53 Brooklyn Blvd (Two Family) Randall Cook 4902 France Ave N (Single Family) William Dudley Victoria Townhomes (8 Bldgs, 48 Units) The Gaughan Properties 7 Dist. Peace, 1 Burglary, 1 Drugs Initial (There were no calls for service for the following) 371253 d Place N (Single Family) Alice Karpeh 134963 d Lane N (Single Family) Teresa James 6605 Camden Drive (Single Family) Alexander Lakanu 6612 Ewing Ave N (Single Family) Andy Evuleocha Domestic Assault (There were no calls for service for the following) 7107 Ewing Ave N (Single Family) Zarr Yarpah 6804 Fremont Place (Single Family) Teresa James 6301 Shingle Creek Parkway Recreation and Community Center Phone TDD Number Brooklyn Center, MN 55430 -2199 (763) 569 -3400 City Hall TDD Number (763) 569 -3300 FAX (763) 569 -3434 FAX (763) 569 -3494 www.cityofbrooklyncenter.org 6728 Grimes Ave N (Single Family) Kasanda Dorcas Warrant Arrest (There were no calls for service for the following) 5900 Xerxes Ave N (Single Family) Katherine Hicks SIGNHANGER Pinnacle Signs Graphics 340 Taft St NE, Minneapolis Topline Advertising 11775 Justen Circle, Maple Grove Franz Reprographics 2781 Freeway Blvd, Brooklyn Center i 10/09/06 2 i City Council Agenda Item No. 7c its adoption: Member introduced the following resolution and moved RESOLUTION NO. RESOLUTION APPOINTING ELECTION JUDGES WHEREAS, a State General Election will be held November 7, 2006; and WHEREAS, Minnesota State Statutes, Section 204B.21, subd. 2, requires election judges be appointed by the governing body at least 25 days before the election at which the election judges will serve; and WHEREAS, the individuals selected to perform the duties of election judge are qualified to serve as election judges. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the following individuals be appointed to serve as election judges for the November 7, 2006, State General Election. Lorraine Blarney Octavious Hney Grace Lamusga Joyce Lamusga Susan Okerstrom October 9, 2006 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor Thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. City Council Agenda Item No. 7d MEMO To: Curt Boganey, City Manager From: Ronald A. Warren, Planning and Zoning e-cialist Subject: Site Performance Guarantee Release Date: October 4, 2006 The following site performance guarantee being held by the City for completion of various site improvements should be recommended to the City Council for release: Estates of Riverwood (6500 -6573 Riverwood Lane) Planning Commission No. 2001 -005 Amount of Guarantee $10,000 (Letter of Credit) Obligor Sylvia Development LP, A Minnesota Limited Partnership All site improvements and conditions for which a site performance guarantee was posted have been completed with respect to this Planned Unit Development project approved in 2001. An as built survey has been submitted to the Engineering Department and other engineering related items including a detention pond have been completed and accepted by the Engineering Department. Landscaping has been installed over the years as the units were completed. Review of the site was done in late November of 2005 following notice of completion by the developer. On February 13, 2006 the City Council authorized reduction of the original $70,000 Letter of Credit to $10,000 pending review this year of the viability of landscape improvements for this project. The landscaping has proved to be viable. It is recommended that the City Council authorize release of the remaining $10,000 Letter of Credit based on completion of this project. City Council Agenda Item No. 8a MEMO To: Curt Boganey, City Manager From: Ronald A. Warren, Planning and Zoning S cialist Subject: City Council Consideration Item Planning Commission Application No. 2006 -011 Date: October 3, 2006 On the October 9, 2006 City Council Agenda is Planning Commission Application No. 2006- 011 submitted by Harvestime Global Ministries requesting a Special Use Permit to allow a church in the an industrial zone Attached for your review are copies of the Planning Commission Information Sheet for Planning Commission Application No. 2006 -011 and also an area map showing the location of the property under consideration, various site and building plans for the proposed development, the Planning Commission minutes relating to the Commission's consideration of this matter and other supporting documents. This matter was considered by the Planning Commission at their September 28, 2006 meeting and was recommended for approval. It is recommended that the City Council, following consideration of this matter, approve the application subject to the conditions recommended by the Planning Commission. Application Filed on 9 -14 -06 City Council Action Should Be Taken By 11 -13 -06 (60 Days) Planning Commission Information Sheet Application No. 2006 -011 Applicant: Harvestime Global Ministry Location: 6820 Shingle Creek Pkwy Request: Special Use Permit The applicant, Pastor David Bruno Nthite on behalf of Harvestime Global Ministries, is seeking a special use permit for a church use in a 5,411 sq. ft. tenant space in the northwest corner of the building at 6820 Shingle Creek Parkway. The property in question is zoned I -1 (Industrial Park) and is located on the north side of Shingle Creek Parkway in a speculative office /industrial building westerly of the Medtronic buildings. It is bounded on the south by Shingle Creek Parkway with an industrial building and the Metropolitan Council Transit Facility on the opposite side of the street; on the west by another office /industrial building; and the Medtronic facilities to the east. All of these properties are zoned I -1. To the north of the site is 69 Avenue with R -1 zoned property containing single family homes on the opposite side of that street. The proposed Harvestime Ministries Church is a permitted use in the C -1 and C -2 zoning districts. Under the category of "places of religious assembly such as chapels, churches, temples, mosques and synagogues This category of use is an allowable use in the I -1 zone through the special use permit process, pursuant to Section 35 -330, Subdivision 3c of the zoning ordinance. This section allows limited commercial and service and office uses such as proposed to be located in the I -1 zoning district provided the use can meet the general standards for special use permits contained in Section 35 -220 of the zoning ordinance and the special criteria outlined in Section 35 -330, Subdivision 3e (copies attached). The applicant's plan is to provide a 180 seat capacity assembly area, three offices, a youth room, a fellowship area and restrooms in the 5,411 sq. ft. tenant space. The applicant has submitted information relating to their operation and how they believe their proposed use meets the standards for special use permits. Lisa Diehl of Steiner Development, owner of the building, has provided a survey of the property, a site plan, and a floor plan along with a parking analysis and other information. Harvestime Global Ministries plans to provide worship, prayer, marriage, crusades, baptisms and counseling services at this location. Worship services will be on Sundays at 8:00 a.m., 10:30 a.m. and 7:00 p.m. with Sunday School service being provided at the morning worship services. Wednesday evenings will be devoted to prayer services and advanced school ministries. On Thursdays they will have pastoral counseling including family, individual and marital counseling. On Fridays their plan is to have prayer vigil- evening worship service and on Saturday their school of ministries will be conducted. They indicate that the times of these services will not interfere with adjacent users, it will generally be a quiet and clean use with no hazardous materials and not be a distraction to neighboring businesses. They point out that it will generally operate at off peak hours with respect to other uses in the building. 9 -28 -06 Page 1 The standards fors special use pen require that the proposed special use promote and enhance P p q p A p the general public welfare and not be detrimental to or endanger the health, safety, and welfare of the public; not be injurious to the use and enjoyment of other property in the immediate neighborhood nor substantially diminish or impair property values; not impede the normal and orderly development of surrounding property; be designed so as to minimize traffic congestion on the public streets; and conform with applicable regulations of the district in which it is located. Furthermore, it must be compatible with, complimentary to and of comparable intensity to permitted I -1 uses and not have an adverse impact upon the industrial park or the community. The site currently contains 337 parking spaces of which seven are handicap. Harvestime Global Ministries will occupy 5,411 sq. ft. of the 146,870 sq. ft. building. There is 24,233 sq. ft. of office space in the building requiring 121 parking spaces. The balance of the building requires 152 parking spaces. There are 63 surplus spaces on site. Based on the floor plan, there will be seating for 186 in the assembly area requiring 62 parking spaces. The additional parking for the church use can be accommodated on the site without negatively impacting other tenants in the building. Furthermore, much of the church use time is off peak from the normal business hours for the existing tenants on the site. It is not anticipated that problems associated with this church will exist. It might seem that a church use may not be an appropriate use with industrial uses. It should be pointed out, however, that there have been two churches located in the I -1 zone over the years. Spiritual Life Church got its start in Brooklyn Center in the industrial building at the northeast corner of Freeway Boulevard and Shingle Creek Parkway. The Hindu Temple on Freeway Boulevard is also located in the I -1 zone. There certainly is precedent for churches in the industrial park and it has not been shown that they are incompatible with the allowable uses in this zoning district. It has been pointed out to the applicant that "adult uses" are permitted uses in the industrial park zone provided they can meet parking and building code requirements. They are allowed in this zone by right and could potentially be allowed within the building that the church is proposing to occupy. Such a use might be considered incompatible with the church use proposed; however, adult uses are not required to meet the compatibility standard required of this use. It would not be sufficient justification to disallow an adult use because the church use has been located in this facility if all other factors are met by a proposed adult use. Again, this has been pointed out to the applicant and they are aware of this potential. A public hearing has been scheduled and notices of the Planning Commission's consideration have been sent to surrounding property owners. RECOMMENDATION All in all, it is believed that the standards for special use permit and the special criteria for allowing certain non industrial uses in the I -1 zoning district are met. It is recommended that the application be approved subject to the following conditions: 9 -28 -06 Page 2 1. The special use permit is issued for a place of religious assembly and associated uses at this location. No other uses, not comprehended by this application shall be permitted as part of this special use permit. Any expansion or major alteration to the use shall be subject to an amendment to this special use permit. 2. This special use permit is subject to all applicable codes, ordinances and regulations. Any violation, thereof, may be grounds for revocation. 3. Tenant improvement plans are subject to review and approval by the Building Official with respect to applicable codes through the building permit process. 4. Special use approval is exclusive of all signery which is subject to the provisions of Chapter 34 of the city ordinances and the city's sign policy with respect to 69 Avenue North. 9 -28 -06 Page 3 8STH. AVE. N. R5 kp HUMBOLD I PLACE 8 Rp C 1 ICE nON 67TH. AVE. N. 6m. P U DII 1 z� Planning Commission °Y App No. 2006 -011 U D R5� 0 FREEWAY BLVD A z M U n �1v3n�� pit \`•.w. h. `.rt' 1 r''~ t •2r C�MNIC�NFtY` �2�z •..:'TV. r, k �.`.,l 'r'cti•` �trL� v... �s D. 1 Yy ,.Y }r+:'•x_ r: .'V: 1 i t_if y 7 neTC� w.t �•l,. ,�ay. {J .JC ~-'fu. 4n h 1 4c+ L r, a N. O 1A EARLE BROW t t':''^.i: ^i 'tiac'4� t „�X HERITAGE R7 227 CENTER 2 t i SUMMIT m C 1 A r> r ��4 ;i =fps N.. n s, *:a °s.:;�_ t HENNEPIN CO. U GOVT. SERVICE �n L 0 1 CENTER it r.: e rR7 01 LOGISMap Output Page Page 1 of 1 s, a a b Y gk Y 3 http: /gis.logis. org /servlet/com. esri. esrimap. Esrimap ?ServiceName= bc_LOGISMap_OV 9/20/2006 i City of Brooklyn Center Special Use Permits Section 35 -224 2. Standards for Special Use Permits A special use permit may be granted by the City Council after demonstration by evidence that all of the following are met: a. The establishment, maintenance or operation of the special use will promote and enhance the general public welfare and will not be- detrimental to or endanger the public health, safety, morals or comfort. b. The special use will not be injurious to the use and enjoyment of other property in the immediate vicinity for the purposes already permitted, nor substantially diminish and impair property values within the neighborhood. c. The establishment of the special use will not impede the normal and orderly development and improvement of surrounding property for uses permitted in the district. 4. Adequate measures have been or will be taken to provide ingress, egress and parking so designed as to minimize traffic congestion in the public streets. e. The special use shall, in all other respects, conform to the applicable regulations of the district in which it is located. 3. Conditions and Restrictions The Planning Commission may recommend and the City Council may impose such conditions and restrictions upon the establishment, location, construction, maintenance and operation of the special use as deemed necessary for the protection of the public interest and to secure compliance with requirements specified in this ordinance. In all cases in which special use permits are granted, the City Council may require such evidence and guarantees as it may deem necessary as part of the conditions stipulated in connection therewith. 4. Resubmission No application for a special use permit which has been denied by the City Council shall be resubmitted for a period of twelve (12) months from the date of the final determination by the City Council; except that the applicant may set forth in writing newly discovered evidence of change of condition upon which he relies to gain the consent of the City Council for resubmission at an earlier time. 5. Revocation and Extension of Special Use Permits When a special use permit has been issued pursuant to the provisions of this ordinance, such permit shall expire without further action by the Planning Commission or the City Council unless the applicant or his assignee or successor commences work upon the subject property within one year of the date the special use permit is granted, or unless before the expiration of the one year period the applicant shall apply for an extension thereof by filling out and submitting to the Secretary of the Planning Commission a "Special Use Permit" application requesting such extension and paying an additional fee in an amount as set forth by the City Council resolution. Special use permits granted pursuant to the provisions of a prior ordinance of Brooklyn Center shall expire within one year of the effective date of this ordinance if construction upon the subject property pursuant to such special use permit has not commenced within that time. In any instance where an existing and established special use is abandoned for a period of one eyar, the special use permit related thereto shall expire one year following the date of abandonment. d. Accessory off -site parking not located on the same property with the principal use, subject to the provisions of Section 35 -701. e. Those commercial developments which, in each specific case, are demonstrated to the City Council to be: 1) Compatible with existing adjacent land uses as well as with those uses permitted in the I -1 district generally. 2) Complementary to existing adjacent land uses as well as to those uses permitted in the I -1 district generally. 3) Of comparable intensity to permitted I -1 district land uses with respect to activity levels. 4) Planned and designed to assure that generated traffic will be within the capacity of available public facilities and will not have an adverse impact upon the industrial park or the community. and, which are described in Section 35 -322, Subsection 1 d, e (subparts 1 -6), f, (subparts 2 and 3), g through j; 3 m and 3 p. Such commercial developments shall be subject to I -1 district requirements of Section 35 -400 and 35 -413 and shall otherwise be subject to the ordinance requirements of the use classification which the proposed development represents. g. Warehousing and storage uses which, in each specific case, are demonstrated to the City Council to be: 1) Compatible with existing adjacent land uses as well as with those uses permitted in the I -1 district generally. 2) Of comparable intensity to permitted I -1 district land uses with respect to activity levels. provided such uses shall adhere to applicable requirements in the I -1 district and shall not involve maintenance or servicing of vehicles on the site. h. Other noncommercial uses required for the public welfare as determined by the Council, including accessory outside storage of materials when screened from public view by an opaque wall. City of Brooklyn Center 35 -42 December 3, 2005 We are Harvestime Global Ministries, under the direction of Sr. Pastor, Apostle David Bruno Nthite. Harvestime is an open place for anyone who loves God. We are a spiritual family large in number, yet warm and friendly. With a variety of worship, growth, and serving opportunities, our mission is threefold. To invite people to share their faith and joy in Jesus Christ, to disciple people in their Christian journey and to help heal them from their hurts and deliver people from their bondages. Harvestime Global Ministries is a good place to grow spiritually. It's a good place to give and receive God's love. It's a good place for you. Vision To preach the Gospel to the poor, proclaim freedom for the prisoners and recovery of sight for the blind, to release the oppressed, (Luke 4:18) Standards For Special Use Permit The purpose for which the facility will be occupied will include such activities as: Worship; Prayer; Marriage; Crusades; Baptism and Counseling Services. a.) The establishment, maintenance and operation will be an enhancement to the general public welfare by: preaching, counseling, and maintaining family values and cohesiveness while working in conjunction with the community through outreach programs and Faith Based Initiatives. Instructional: Two Morning Services 8:00 A.M. Worship Service 10:30 A.M. Worship Service 7:00 P.M. Worship Service There will be two morning services to accommodate our congregation overflow. Sunday School Service will run Sunday School Service will run simoneoustly with the morning worship services while promoting our youth in moral and civic engagements These services are inclusive of moral and civic dedication to improving the quality of our youth in the community through religious education and programs open to the public. b). Time of Space /facility usage Our weekly service will include the following services: Wednesday- P.M. Prayer Services Advance School of Ministries Thursday Pastoral counseling to include Family, Individual and Martial Counseling Friday Prayer Vigil Evening Worship Service Saturday School of Ministries c). The establishment of the special use will not impede the normal and orderly development by: Harvestime Global Ministry Use /Cotenancy Quiet Enjoyment Times of Services will not interfere with the adjacent users Clean Use No hazardous materials Not a distraction to neighboring businesses d). Detail Parking analysis to be provided in plan attached. e). 12 Zoning- Harvestime Global Ministries applying for a special use permit r Steiner Development, Inc. 3610 County Road 101 Wayzata, MN 55391 (952)473 -5650 Fax (952)473-7058 August 16, 2006 VIA FACSIMILE (763) 569 -3494 Mr. Ronald A. Warren Planning Zoning Specialist City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 Re: Harvestime Global Ministries 6820 Shingle Creek Commerce Center Brooklyn Center, Minnesota Dear Ron: Dan Terry with CB Richard Ellis has requested I forward you the following information for his client, Harvestime Global Ministries. The client is aware they will be required to file for a Conditional Use Permit in order to lease space in our 6820 Shingle Creek Commerce Center building. 1. Site Plan: Plan attached. 2. Parking Stalls: 337 total parking spaces (3 3 0 Regular 7 Handicap) 3. Tenant Square Footage: Approximately 5,411 sf or 3.68% of building. Located on the northwest corner of the building. 4. Total Building Square Footage: 146,870 sf (24,233 sf Office, 122,017 sf Industrial, Mechanical Room 620 sf) Please do not hesitate to contact me should you require any additional information. Thank you for considering the request by Harvestime Global Ministries. Sincerely, STEINE DEVELOPMENT, INC. Lisa L. Diehl, CCIM, CPM Director Business Development S cc. Joe Smith, Steiner Development, Inc. Dan Terry, CB Richard Ellis m. ALWACWLAAD MLESWEYfZ'1�F Y. mow. PRUDENTIAL INSURANCE COMPANY OF AMER /CA STFINERDEVELOPMENT, /NC. 1 �Y•�.1�� y.... �Ya CHICAGO TITLE INSURANCE COMPANY 11,•1,1,. MINYa H.�.h NW M �•'�IYI. Illn•uK COMMERCIAL PAR771/ERS 7TlLE, LLC ,'w w�ia'1 L RUDE NICK ..•IMI=M°'OYM.Y..• VL W ANS i ADD /T /piy wl.nsuai #ISrmrLbg HALEK ADDITION rar onola °.H.' Y..1 'S I I m; i ADDITION I 'A•°�4.�P" 1kY' Y�M NMY\ ..d..�/ml FY aW..,.,.H 1. Y M •I.1 N .W.. ........a....w•..e w...a a. _J- ---L_ :"gym....... �.Wy.r ..IwA w ar.• r T r r M.. rM� rrW ...x.w �apinl �.r...rr aw YH 14. o�. a•.I�.r u�y �wL o"".. OHNN M..HpW.. fIM i, i� I�r� j,m..• r HIIiM NIW Mw... 1 Y w Y �n l. y WI[{.IC �AYlN16110. r.�,w m MN. bYYMY w�bwWll M I�IN ..HY M.HIY H WYN 0p r.... .,f MM OA 1.00 �q.1 y 1,1.Y�'.10..WU. IY0,10. ON.a. 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FLOORPLPN H g l MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA STUDY SESSION SEPTEMBER 28, 2006 CALL TO ORDER The Planning Commission meeting was called to order by Chair Willson at 7:05 p.m. ROLL CALL Chair Tim Willson, Commissioners Graydon Boeck, Sean Rahn, and Tim Roche were present. Also present were Secretary to the Planning Commission/Planning and Zoning Specialist Ronald Warren, and Planning Commission Recording Secretary Rebecca Crass. Commissioners Gary Ford and Rachel Lund were absent and excused. Commissioner Michael Parks was absent and unexcused. APPROVAL OF MINUTES AUGUST 17. 2006 There was a motion by Commissioner Graydon Boeck, seconded by Commissioner Roche, to approve the minutes of the August 17, 2006 meeting as submitted. The motion passed. CHAIR'S EXPLANATION Chair Willson explained the Planning Commission's role as an advisory body. One of the Commission's functions is to hold public hearings. In the matters concerned in these hearings, the Commission makes recommendations to the City Council. The City Council makes all final decisions in these matters. APPLICATION NO. 2006 -011 HARVESTIME GLOBAL MINISTRY Chair Willson introduced Application No. 2006 -011, a request for Special Use Permit approval to allow a church use in an I -1 zone at 6820 Shingle Creek Parkway. The proposed use is a permitted use in the C -1 and C -2 zoning districts. This use is also an allowable use in the 1 -1 zone through the special use permit process. Mr. Warren presented the staff report describing the location of the property and the proposal. (See Planning Commission Information Sheet dated 9 -28 -06 for Application No. 2006 -011, attached.) PUBLIC HEARING APPLICATION NO. 2006 -011 There was a motion by Commissioner Rahn, seconded by Commissioner Boeck, to open the public hearing on Application No. 2006 -011, at 7:30 p.m. The motion passed unanimously. Chair Willson called for comments from the public. Ms. Hawa Diggs, 10015 Elm Avenue North, Brooklyn Park, representing the applicant Harvestime Global Ministry addressed the Commission. Commissioner Rahn inquired if the 04 -13 -06 Page 1 applicant would be doing any cooking on site associated with the use of the fellowship area. The applicant responded that they use a catering service. Commissioner Roche asked when the church became incorporated. Ms. Diggs responded that they were incorporated in December 2004. She added that their pastor has traveled worldwide and the size of their membership is 90. Commissioner Roche asked for confirmation that the church is non denominational. Ms. Diggs confirmed that they are non denominational. Chair Willson asked how the church is structured. Ms. Diggs responded that there is a pastor, assistant pastor, committees, administration and finance persons, the same as any other church structure. Ms. Holly Beckstrom, 4059 Penn Avenue North, introduced herself to the Commission and stated she is one of the pastors of Harvestime Global Ministry and is here to show support for the application. No other persons from the public appeared before the Commission during the public hearing on Application No. 2006 -011. CLOSE PUBLIC HEARING There was a motion by Commissioner Roche, seconded by Commissioner Boeck, to close the public hearing on Application No. 2006 -011, at 7:39 p.m. The motion passed unanimously. The Chair called for further discussion or questions from the Commissioners. Commissioner Roche asked about the current vacancy rate in the building that the applicant is proposing to occupy. Mr. Warren responded that the plan submitted appears to show three other vacant spaces in the building. Commissioner Roche asked for further clarification on whether or not this use makes the building tax exempt. Mr. Warren explained that the owner pays taxes on the entire building and allowing this use would not make the building tax exempt. He also pointed out that zoning and tax law are two separate issues and an application cannot be denied based on the fact that it might create a tax exempt situation. Commissioner Rahn asked if there were any adult uses in the Industrial zone. Mr. Warren responded that there are not. He further explained that if an adult use were proposed in the same building it could not be denied based on the fact that the church use had been established in the Industrial zone. The Commissioners interposed no objections to approval of the Application. ACTION TO RECOMMEND APPROVAL OF APPLICATION NO. 2006 -011 HARVESTIME GLOBAL MINISTRY There was a motion by Commissioner Boeck, seconded by Commissioner Rahn, to recommend to the City Council that it approve Application No. 2006 -011, submitted by Harvestime Global Ministry for a Special Use Permit to operate a church in an I -1 zone at 6820 Shingle Creek Parkway, subject to the following conditions: 04 -13 -06 Page 2 1. The special use permit is issued for a place of religious assembly and associated uses at this location. No other uses, not comprehended by this application shall be permitted as part of this special use permit. Any expansion or major alteration to the use shall be subject to an amendment to this special use permit. 2. This special use permit is subject to all applicable codes, ordinances and regulations. Any violation, thereof, may be grounds for revocation. 3. Tenant improvement plans are subject to review and approval by the Building Official with respect to applicable codes through the building permit process. 4. Special use approval is exclusive of all signery which is subject to the provisions of Chapter 34 of the city ordinances and the city's sign policy with respect to 69 Avenue North. Voting in favor: Chair Willson, Commissioners Boeck, Rahn and Roche. The motion passed unanimously. The Council will consider the application at its October 9, 2006 meeting. The applicant must be present. Major changes to the application as reviewed by the Planning Commission will require that the application be returned to the Commission for reconsideration." Following the approval of the application there was discussion among the Commission regarding the appropriateness of discussing tax exempt issues related to proposals presented to the Planning Commission during a public hearing. OTHER BUSINESS There was no other business. ADJOURNMENT There was a motion by Commissioner Boeck, seconded by Commissioner Rahn, to adjourn the Planning Commission meeting. The motion passed unanimously. The meeting adjourned at 8:10 P.M. Chair Recorded and transcribed by: Rebecca Crass 04 -13 -06 Page 3 City Council Agenda Item No. 9a Cnya Office of the City Clerk BROOKLYN CENTER MEMORANDUM TO: Curt Boganey, City Manager FROM: Sharon Knutson, City Clerk'` DATE: October 4, 2006 SUBJECT: Mayoral Appointment: Northwest Hennepin Human Services Council Advisory Commission Member The Northwest Hennepin Human Services Council is a human services planning and coordinating agency serving the cities of Brooklyn Center, Brooklyn Park, Champlin, Corcoran, Crystal, Dayton, Golden Valley, Hanover, Hassan, New Hope, Maple Grove, Osseo, Plymouth, Robbinsdale, and Rogers since 1972. The goals of the Council are to improve access to human services for area residents, raise awareness of human service needs, and coordinate and assist in planning for needed human services in the community. The Advisory Commission is composed of citizen representatives appointed for two -year terms by their respective City Council. Brooklyn Center appoints two members. As an Advisory Commissioner, representatives are asked to attend one Advisory Commission meeting per month and serve on one Commission committee or task force during the year. One vacancy exists on the Advisory Commission with a term expiration of December 31, 2007. Notice of vacancy on the Commission was posted at City Hall and Community Center and on the City's web site and aired on Cable Channel 16 from August 15, 2006, through September 15, 2006. Announcement was made in the August 24, 2006, edition of Brooklyn Center Sun -Post. A letter was sent to those persons who previously had submitted an application for appointment to a Brooklyn Center advisory commission informing them of the vacancy and requesting that they call the City Clerk if they are interested in applying for either commission. They were given the choice of either submitting a new application or having their application previously submitted considered. Notices were also sent to current advisory commission members. Attached for City Council Members only are copies of the applications received: Christine Eaton 7007 Dallas Road Kimberley Meyer 6131 Kyle Avenue North A letter was sent to the applicants notifying them that their application for appointment would be considered at the October 9, 2006, City Council meeting. Other attachments include: 1) Memorandum from Mayor Kragness indicating her nomination. 2) Procedures for filling commission vacancies adopted by the City Council on March 27, 1995. Recommended Council Action: Motion by Council to ratify Mayoral nomination of Christine Eaton, 7007 Dallas Road, to the Northwest Hennepin Human Services Council Advisory Commission with term expiring December 31, 2007. r ar Office of the Mayor KLYN fiER MEMORANDUM TO: Councilmember Kathleen Carmody Councilmember Kay Lasman Councilmember Diane Niesen Councilmember Mary O'Connor FROM: Myrna Kragness, Mayor DATE: October 4, 2006 SUBJECT: Northwest Hennepin Human Services Council Advisory Commission Appointment As outlined in our policy for filling commission vacancies, I would request ratification from Council Members for the following nomination to the Northwest Hennepin Human. Services Council Advisory Commission: Christine Eaton 7007 Dallas Road City of Brooklyn Center Procedures for Filling Commission /Task Force Vacancies Adopted by Council 3 /27/95 The following process for filling commission/task force vacancies was approved by the City Council at its March 27, 1995, meeting: Vacancies in the Commission shall be filled by Mayoral appointment with majority consent of the City p g Council. The procedure for fillip Commission vacancies is as follows: 1. Notices of vacancies shall be posted for 30 days before any official City Council action is taken; 2. Vacancies shall be announced in the City's official newspaper; 3. Notices of vacancies shall be sent to all members of standing advisory commissions; 4. Applications for Commission membership must be obtained in the City Clerk's office and must be submitted in writing to the City Clerk; 5. The City lerk shall forward copies of the applications to the Mayor and City tY p PP Y Y Council; 6. The Mayor shall identify and include the nominee's application form in the City Council agenda materials for the City Council meeting at which the nominee is presented; and 7. The City Council, by majority vote, may approve an appointment at the City Council meeting at which the nominee is presented. COUNCIL PROCEDURES ESTABLISHED FOR FILLING COMMISSION VACANCIES City Council Agenda Item No. 9b City of r3 RDOI�LYN Office of the City Clerk CENTER MEMORANDUM TO: Curt Boganey, Interim City Mana er FROM: Sharon Knutson, City Clerk DATE: October 4, 2006 SUBJECT: Proclamation Observing the Week of October 23 October 27, 2006, as Minnesota Manufacturer's Week Dee Schutte of TwinWest Chamber of Commerce submitted via e-mail a request for a proclamation observing the week of October 23 October 27, 2006, as Minnesota Manufacturer's Week. Attachments Proclamation E -mail from Dee Schutte PROCLAMATION OBSERVING THE WEEK OF OCTOBER 23 OCTOBER 27, 2006, AS MINNESOTA MANUFACTURER'S WEEK WHEREAS, The manufacturing industry is a dynamic part of Minnesota's economy, and promotion of this sector's strength, success and high qualityof life is an integral part of Minnesota's economic development strategy; and WHEREAS, Manufacturing provides high skill, high wage jobs which significantly contribute to Minnesota's high standard of living and economic vitality, and WHEREAS, Manufacturing has the largest total payroll of any business sector in Minnesota, providing 16.8 billion in 2005 wages; and WHEREAS, Manufacturing produces $30.7 billion for the state economy and is the largest share, 13.7 percent of our gross state product; and WHEREAS, Manufactured exports brought over $13.8 billion into the Minnesota economyin 2005. NOW, THEREFORE, I, AS MAYOR OF THE QTY OF BROOKLYN CENTER, State of Minnesota, with the consent and support of the Brooklyn Center City Council, do herebyproclaim that the week of October 23 October 27, 2006, shall be observed as: MINNESOTA MANUFACTURER'S WEEK October 9. 2006 Date y ATTEST: City Clerk i Curt Boganey From: Schutte, Dee [dee @twinwest.com] 0 ent: Tuesday, September 19, 2006 4:48 PM 0: Curt Boganey Subject: TwinWest Chamber request to consider We are asking each of the mayors in the TwinWest "footprint" to declare Minnesota Manufacturer's Week (October 23 -27) for your community so this event can coincide with the statewide recognition of the manufacturing industry. A proclamation template is attached. Manufacturer's Week is designed to showcase Minnesota's diverse manufacturing industry and to increase legislative and public awareness of the importance in providing high -wage, high -skill jobs for our communities. Did you know that almost one out of every seven jobs in the state is in the manufacturing industry and that this industry accounts for 18.2 percent of Minnesota's total wages? And in 2005, manufacturing produced $30.7 billion for the state economy and is the largest share -13.7 percent -of our gross state product. Your recognition and promotion of the importance of to the state's economy is greatly appreciated. Thank you, Dee Schutte Director, Community Affairs TwinWest Chamber of Commerce 10550 Wayzata Boulevard Minnetonka MN 55305 952- 540 -0234, Ext.11 dee @twinwest.com 1 City Council Agenda Item No. 9c City of Brooklyn Center OX A Millennium Community MEMORANDUM DATE: September 29, 2006 TO: Curt Boganey, City Manager FROM: Todd Blomstrom, Director of Public Works IAf,7 SUBJECT: Resolution Establishing 2007 Street and Storm Drainage Special Assessment Rates Each year the City Council establishes assessment rates for R1, R2, and R3 residential zoned properties based on the City's Special Assessment Policy. Within these zoning districts, the assessment rate for street and storm drainage improvements is based on a unit amount that applies to all single family residential properties. The unit amount represents a specific portion of the average cost for reconstructing a typical residential street and storm drainage system. Street assessments for non- residential and R4 to R7 residential properties are computed separately for each project. The current average cost per single family residential lot for street and storm sewer improvements was determined based on a 3 -year running average of street and storm sewer project costs using the 2004 Northport Neighborhood Project, the 2005 Lions Park South Neighborhood Project and the 2006 Centerbrook Neighborhood Project. The resulting average construction costs per lot are $8,008 per lot for street improvements and $2,400 per lot for storm drainage improvements. Staff recommends that the Council continue to establish special assessments for R1, R2 and R3 property based on a value of 40 percent of the cost for street and storm drainage improvements. This would result in an assessment amount of $3,200 for street improvements and $960 for storm drainage improvements. The total assessment amount would be $4,160 per RI single family residential lot in 2006. The total proposed assessment rate increase for 2007 would be 4.5 percent. This proposed increase is comparable to the 4.2 percent increase in the ENR Construction Cost Index and the 3.8 percent increase in the Consumer Price Index over the past year. Both of these indicators tend to under estimate the increase in street construction cost due to the high fluctuation of oil prices that has occurred over the past two years. The average price of bituminous street pavement has increased approximately 32 percent between May 2004 and May 2006. Attached for consideration is a City Council resolution establishing 2007 Street and Storm Drainage Special Assessment Rates. 6301 Shingle Creek Parkway Recreation and Community Center Phone TDD Number Brooklyn Center, MN 55430 -2199 (763) 569 -3400 City Hall TDD Number (763) 569 -3300 FAX (763) 569 -3434 FAX (763) 569 -3494 www.cityofbrooklyncenter.org Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION ESTABLISHING 2007 STREET AND STORM DRAINAGE SPECIAL ASSESSMENT RATES WHEREAS, the residential assessment rates for street and storm drainage improvements are annually reviewed and approved by the City Council; and WHEREAS, the residential assessment rates should be adjusted annually to be effective January 1; and WHEREAS, the 2007 street and storm drainage assessment rates for R -1, R -2 and R- 3 zoned districts are based on a specific proportion of 40 percent of the average cost for street and storm drainage improvements; and WHEREAS, the R -4, R -S, R -6 and R -7 zoned districts will continue to be assessed based on an evaluation of project cost and project benefit. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that: 1. The residential street and storm drainage special assessment rates for street reconstruction shall apply to properties in R -1, R -2 or R -3 zoned districts. These rates shall also be applied to parcels of property in other land use zones when such parcels (a) are being used as one family or two family residential sites at the time the assessment roll is levied; and (b) could not be subdivided under the then existing Subdivision Ordinance. 2. The residential assessment rates for street and storm drainage reconstruction effective January 1, 2007 shall be as follows: Land Use 2007 Assessment Rates R -I zoned, used as one family $3,200 per lot (street) site that cannot be subdivided $960 per lot (storm drainage) RESOLUTION NO. Land Use 2007 Assessment Rates R -2 zoned, or used as a two family $42.67 per front foot with a site that cannot be subdivided $3,200 per lot minimum (street) $12.80 per front foot with a $960 per lot minimum (storm drainage) R -3 zoned (per unit) Assessable frontage x $40.51 (street) Number of residential units Assessable frontage x $12.53 storm Number of residential units 3. The residential assessment rates for street and storm drainage reconstruction shall not apply to R -4, R -5, R -6 or R -7 zoned districts. The assessment rates for street reconstruction for R -4, R -5, R -6 or R -7 zoned property shall be based on an evaluation of the project cost and the project benefit for each project. Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. City Council Agenda Item No. 9d 9;Z City of Brooklyn Center A Millennium Community MEMORANDUM DATE: September 29, 2006 TO: Curt Boganey, City Manager FROM: Todd Blomstrom, Director of Public Works SUBJECT: An Ordinance Relating to Discharges and Connections to the Stormwater System In 2003, the City of Brooklyn Center was required to obtain permit coverage under the National Pollutant Discharge Elimination System NPDES) permit program developed by the United States Environmental Protection Agency and the Mirmesota Pollution Control Agency. As part of this pen process, the City developed a Storm Water Pollution Prevention Program designed to minimize the discharge of pollutants from the storm drainage system, protect water quality, and satisfy the appropriate water quality requirements of the Clean Water Act. The it 's t r consists of a combination of several Best C y Storm Water Pollution Prevention Program co Management Practices and controls that the community will use to manage urban storm water runoff. The Storm Water Pollution Prevention Program continues to develop each year as the City addresses various requirements for NPDES permit coverage. Section 5 of the NPDES permit establishes minimum requirements for the City's Storm Water Pollution Prevention Program. This section of the permit states that the City must, to the extent allowable under law, effectively prohibit, through ordinance or other regulatory mechanism, non stonn water discharges into the municipal storm sewer system and implement appropriate enforcement procedures. Based on a review of this requirement and the existing City code, the City Attorney has prepared the attached ordinance to comply with non stormwater discharge controls for NPDES permit coverage. Consistent with the City Charter, a first reading to establish a date for a second reading and public hearing to consider the proposed ordinance is requested for November 13, 2006. 6301 Shingle Creek Parkway Recreation and Community Center Phone TDD Number Brooklyn Center, MN 55430 -2199 (763) 569 -3400 City Hall TDD Number (763) 569 -3300 FAX (763) 569 -3434 FAX (763) 569 -3494 www.cityo fbrooklyncenter.org CITY OF BROOKLYN CENTER Notice is hereby given that a public hearing will be held on the 11th day of November, 2006, at 7 p.m. or as soon thereafter as the matter may be heard at City Hall, 6301 Shingle Creek Parkway, to consider an ordinance relating to discharges and connections to the stormwater system. Auxiliary aids for handicapped persons are available upon request at least 96 hours in advance. Please notify the City Clerk at 763 -569 -3300 to make arrangements. ORDINANCE NO. AN ORDINANCE RELATING TO DISCHARGES AND CONNECTIONS TO THE STORMWATER SYSTEM THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS FOLLOWS: Section 1. The BrookIlyn Center City Code of Ordinances is amended by adding new Section 4 -404 as follows: Section 4 -04. CONNECTIONS AND DISCHARGES TO THE STORMWATER, SYSTEM. Subdivision 1. Definitions. For the purooses of this section. the following shall mean: Authorized Enforcement Officer. The Citv Manager or the Citv Manager's designee. who is authorized to enforce this section. Best Management Practices (BMPs). Schedules of activities, prohibitions of practices, general good house keeping practices, pollution prevention and educational practices. maintenance procedures. and other management practices to prevent or reduce the discharge of pollutants directiv or indirectiv to stormwater. receiving waters, or stormwater convevance systems. BMPs also include treatment practices, operating procedures, and practices to control site runoff. spillage or leaks. sludge or water disposal, or drainage from raw materials storage. Clean Water Act. The federal Water Pollution Control Act (33 U.S.C. 1251 et sec and anv subsequent amendments thereto. Construction Activitv. Activities subiect to NPDES Construction Permits. Currentiv these include construction proi ects resulting in land disturbance of 1 acre or more. Such activities include but are not limited to clearing and grubbing, grading, excavating, and demolition. Hazardous Materials. Anv material, including anv substance, waste. or combination thereof, that, because of its auantity. concentration, or physical. chemical, or infectious characteristics may cause, or significantly contribute to. a substantial present or potential hazard to human health, safety, vrooertv, or the environment when improperly treated, stored, transported. disposed of, or otherwise managed. ORDINANCE NO. Illegal Discharge. Anv direct or indirect non -storm water discharge to the storm drain system, except as exempted in subdivision 6 of this section.. Illicit Connections. An illicit connection is defined as either of the following:. Any drain or convevance, whether on the surface or subsurface, that allows an illegal discharge to enter the storm drain system including but not limited to anv conveyances that allow anv non- storm water discharge including sewage. process wastewater, and wash water to enter the storm drain system and anv connections to the storm drain system from indoor drains and sinks. regardless of whether said drain or connection had been previously allowed. permitte& or approved by the Authorized Enforcement Officer: or Anv drain or convevance connected from a commercial or industrial land use to the storm drain system that has not been documented in plans. maps, or equivalent records and approved by the Authorized Enforcement Officer. Industrial Activitv. Activities subiect to NPDES Industrial Permits as defined in 40 CFR, Section 122.26 (b)(14). MS4. The municipal separate storm sewer system. National Pollutant Discharge Elimination S 's/stem NPDES) Storm Water Discharge Permit. A p ermit issued by EPA (or by a State under authoritv delegated pursuant to 33 USC 1342(b)) that authorizes the discharge of pollutants to waters of the United States,. whether the permit is applicable on an individual. groum or general area -wide basis. Non -Storm Water Discharge. Any discharge to the storm drain system that is not composed entirelv of storm water. Person. Anv individual, association. organization. partnership, firm. corporation or other entitv recognized by law and acting as either the owner or as the owner's agent. Pollutant. Anvthing that causes or contributes to pollution. Pollutants may include. but are not limited to: paints. varnishes, and solvents: oil and other automotive fluids: non hazardous liquid and solid wastes and vard wastes: refuse. rubbish, garbage. litter. or other discarded or abandoned objects, ordinances. and accumulations. so that same may cause or contribute to pollution: floatables: pesticides. herbicides, and fertilizers: hazardous substances and wastes: sewage. fecal coliform and pathogens: dissolved and oarticulate metals: animal wastes: wastes and residues that result from constructing a building or structure: and noxious or offensive matter of any kind. Premises. Anv building. lot, parcel of land, or portion of land whether improved or unimproved including adjacent sidewalks and oarking strips. Storm Drainage Svstem. Publiclv -owned facilities by which storm water is collected and/or conveved, including but not limited to anv roads with drainage systems, municipal streets.. gutters, curbs. inlets, piped storm drains, pumping facilities, retention and detention basins, natural and human-made or altered drainage channels, reservoirs, and other drainage structures. ORDINANCE NO. Storm Water. Anv surface flow, runoff, and drainage consisting entirelv of water from anv form of natural precipitation. and resulting from such precipitation. Stormwater Pollution Prevention Plan. A document that describes the Best Management Practices and activities to be implemented by a person or business to identifv sources of pollution or contamination at a site and the actions to eliminate or reduce pollutant discharges to Stormwater, Stormwater Convevance Svstems, and/or Receiving Waters to the Maximum Extent Practicable. Wastewater means anv water or other liquid, other than uncontaminated storm water, discharged from a facilitv. Subdivision 2. Applicability. This section shall apply to all water entering the storm drain system generated on anv developed and undeveloped lands unless explicitly exempted by an Authorized Enforcement Officer. Subdivision 3. Resnonsibility for Administration. The Citv Manager or the Citv Manager's designee shall administer, implement. and enforce the provisions of this section. Subdivision 4. Severabilitv. The provisions of this section are herebv declared to be severable. If anv provision, clause, sentence, or paragraph of this section or the aDDlication thereof to anv Derson, establishment, or circumstances shall be held invalid, such invaliditv shall not affect the other Provisions or application of this section. Subdivision 5. Ultimate Responsibility. The standards set forth herein and promulgated Pursuant to this section are minimum standards. Therefore this section does not intend or imDly that comDliance by anv Derson will ensure that there will be no contamination, pollution, nor unauthorized discharge of pollutants. Subdivision 6. Discharge Prohibitions. Prohibition of Illegal Discharges. No Derson shall discharge or cause to be discharged into the municipal storm drain system or watercourses anv materials, including but not limited to pollutants or waters containing anv pollutants that cause or contribute to a violation of aDDlicable water aualitv standards, other than storm water. The commencement, conduct or continuance of anv illegal discharge to the storm drain system is Prohibited except as follows: a. The following discharges are exempt from discharge Drohibitions established by this section: water line flushing or other Dotable water sources, landscape irrigation or lawn watering, diverted stream flows. rising ground water. ground water infiltration to storm drains. uncontaminated Pumped ground water. ORDINANCE NO. foundation or footing drains (not including active groundwater dewatering systems), crawl space pumps. air conditioning condensation, springs, non commercial washing of vehicles, natural riparian habitat or wet -land flows. swimming pools (if dechlorinated tvpically less than one PPM chlorine), fire fighting activities. and any other water source not containing Pollutants. b. Discharges specified in writing by the Authorized Enforcement Officer as being necessary to protect public health and safety. C. Dve testing is an allowable discharge, but requires a verbal notification to the Authorized Enforcement Officer prior to the time of the test. d. The prohibition shall not apply to anv non -storm water discharge permitted under an NPDES permit. waiver. or waste discharge order issued to the discharger and, administered under the authority of the Federal Environmental Protection Agency. provided that the discharger is in full compliance with all requirements of the permit, waiver. or order and other applicable laws and regulations, and provided that written approval has been granted for anv discharge to the storm drain system. Prohibition of Illicit Connections. a. The construction, use. maintenance or continued existence of illicit connections to the storm drain system is prohibited. b. This prohibition expressly includes, without limitation, illicit connections made in the past. regardless of whether the connection was permissible under law or practices applicable or prevailing at the time of connection. C. A person is considered to be in violation of this section if the person connects a line conveving sewage to the MS4, or allows such a connection to continue. Subdivision 7. Suspension of MS4 Access. Suspension Due to Illicit Discharges in Emergency Situations The Authorized Enforcement Officer may. without prior notice, suspend MS4 discharge access to a person when such suspension is necessary to stop an actual or threatened discharge that presents or may present imminent and substantial danger to the environment, or to the health or welfare of persons, or to the MS4 or Waters of the United States. If the violator fails to comply with a suspension order issued in an emergency, the Authorized Enforcement Officer may take such steps as deemed necessary to prevent or minimize. damage to the MS4 or Waters of the United States, or to minimize danger to persons. ORDINANCE NO. s Suspension Due to the Detection of Illicit Discharge Anv person discharging to the MS4 in violation of this section may have their MS4 access terminated if such termination would abate or reduce an illicit discharge. The Authorized Enforcement Officer will notifv a violator of the proposed termination of its MS4 access. The violator may Detition the Authorized Enforcement Officer for a reconsideration and hearing., A person commits an offense if the person reinstates MS4 access to premises terminated pursuant to this subdivision. without the prior annroval of the Authorized Enforcement Officer. Subdivision 8. Industrial or Construction Activitv Discharges. Awl person subiect to an industrial or construction activitv NPDES storm water discharge permit shall comply with all provisions of such hermit. Proof of compliance with said hermit may be reauired in a form acceptable to the Authorized Enforcement Officer prior to the allowing of discharges to the MS4., Subdivision 9. Monitoring of Discharges. Applicability. This subdivision applies to all facilities that have storm water discharges associated with industrial activity, including construction activitv. Access to Facilities. a. The Authorized Enforcement Officer shall be permitted to enter and inspect facilities subiect to regulation under this section as often as may be necessary to determine compliance with this section. If a discharger has securitv measures in force that reauire Droner identification and clearance before entry into its Dremises. the discharger shall make the necessary arrangements to allow access to representatives of the Authorized Enforcement Officer., b. Facilitv operators shall allow the Authorized Enforcement Officer ready access to all Darts of the Dremises for the purposes of inspection, samDling, examination and covving of records that must be kept under the conditions of an NPDES permit to discharge storm water. and the performance of anv additional duties as defined by state and federal law. C. The Authorized Enforcement Officer shall have the right to set up on anv Dermitted facilitv such devices as are necessary in the opinion of the Authorized Enforcement Officer to conduct monitoring and/or sampling of the facilitv's storm water discharge. d. The Authorized Enforcement Officer has the right to reauire the discharger to install monitoring eauiDment as necessarv. The facility's sampling and monitoring equipment shall be maintained at all times in a safe and prober operating ORDINANCE NO. condition by the discharger at its own expense. All devices used to measure stormwater flow and duality shall be calibrated to ensure their accuracv. e. Anv temporary or permanent obstruction to safe and eas v access to the facilitv to be inspected and/or sampled shall be nromntly removed by the operator at the written or oral request of the Authorized Enforcement Officer and shall not be replaced. The costs of clearing such access shall be borne by the operator. f. Unreasonable delays in allowing the Authorized Enforcement Officer access to a, permitted facilitv is a violation of a storm water discharge permit and of this section. A person who is the operator of a facilitv with a NPDES permit to discharge storm water associated with industrial activitv commits an offense if the person denies the Authorized Enforcement Officer reasonable access to the, permitted facilitv for the DurDOSe of conducting anv activity authorized or reauired by this section. g. If the Authorized Enforcement Officer has been refused access to anv Dart of the Dremises from which stormwater is discharged, and he or she is able to demonstrate probable cause to believe that there may be a violation of this section, or that there is a need to inspect and/or sample as Dart of a routine inspection and sampling program designed to verifv com0liance with this section or anv order issued hereunder. or to protect the overall Dublic health, safetv, and welfare of the community, then the Authorized Enforcement Officer may seek issuance of a search warrant from anv court of competent iurisdiction. Subdivision 10. Reouirement to Prevent. Control, and Reduce Storm Water Pollutants by the Use of Best Management Practices. The Authorized Enforcement Officer will adopt requirements identifying Best Management Practices for anv activity, operation. or facilitv that may cause or contribute to Dollution or contamination of storm water, the storm drain system, or waters of the U.S. The owner or operator of a commercial or industrial establishment shall provide, at his or her own expense, reasonable protection from accidental discharge of prohibited materials or other wastes into the municipal storm drain system or watercourses through the use of these structural and non structural BMPs. Further, anv person responsible for a Drovertv or premise that is, or may be. the source of an illicit discharge. may be reauired to implement, at said Derson's expense, additional structural and non structural BMPs to prevent the further discharge of Dollutants to the municipal separate storm sewer system. Compliance with all terms and conditions of a valid NPDES Dermit authorizing the discharge of storm water associated with industrial activitv. to the extent practicable. shall be deemed compliance with the Drovisions of this section. These BMPs shall be Dart of a stormwater Dollution prevention plan (SWPP) as necessary for compliance with reauirements of the NPDES Dermit. Subdivision 11. Watercourse Protection. Every Derson owning oroDertv through which a watercourse Dasses. or such Derson's lessee, shall keen and maintain that Dart of the watercourse within the DroDertv free of trash, debris. excessive vegetation. and other obstacles that would pollute, contaminate, or significantly retard the flow of water through the watercourse. In addition, the owner or lessee shall maintain existing Drivately owned structures within or ORDINANCE NO. adiacent to a watercourse, so that such structures will not become a hazard to the use, function,, or phvsical integrity of the watercourse. Subdivision 12. Notification of Spills. Notwithstanding other requirements of law. as soon as anv person responsible for a facilitv or operation, or responsible for emergencv response for a facilitv or operation has information of anv known or suspected release of materials that are, resulting or may result in illegal discharges or pollutants discharging into storm water. the storm drain system, or water of the U.S. said person shall take all necessary steps to ensure the discoverv. containment, and cleanup of such release. In the event of such a release of hazardous, materials said person shall immediatelv notifv emergencv response agencies of the occurrence via emergencv dispatch services. In the event of a release of non hazardous materials, said, person shall notifv the Authorized Enforcement Officer in person or by phone or facsimile no later than the next business day. Notifications in person or by phone shall be confirmed by written notice addressed and mailed to the Authorized Enforcement Officer within three business, days of the phone notice. If the discharge of prohibited materials emanates from a commercial or industrial establishment. the owner or operator of such establishment shall also retain an on -site, written record of the discharge and the actions taken to prevent its recurrence. Such records shall, be retained for at least three vears. Subdivision 13. Enforcement. Notice of Violation. Whenever the Authorized Enforcement Officer finds that a person has violated a prohibition or failed to meet a requirement of this section, the Authorized Enforcement Officer may order compliance by written notice of violation to the responsible person. Such notice may reauire without limitation: a. The performance of monitoring. analvses. and reporting; b. The elimination of illicit connections or discharges;, C. That violating discharges. practices. or operations shall cease and desist; d. The abatement or remediation of storm water pollution or contamination hazards, and the restoration of anv affected pronertv. and e. The implementation of source control or treatment BMPs.. If abatement of a violation and/or restoration of affected propertv is required, the notice shall set a deadline within which such remediation or restoration must be completed. Said notice shall further advise that, should the violator fail to remediate or restore within the established deadline, the work will be done by a designated governmental aeencv or a contractor and the expense thereof shall be charged to the violator. ORDINANCE NO. Subdivision 14. Anneal of Notice of Violation. Anv person receiving a Notice of Violation may appeal the determination of the Authorized Enforcement Officer. The notice of anneal must be received within ten days from the date of the Notice of Violation. Hearing on the, anneal before the Citv Council shall take place within thirtv (30) days from the date of receipt of the notice of appeal. The decision of the Citv Council shall be final. Subdivision 15. Enforcement Measures After Appeal. If the violation has not been corrected pursuant to the requirements set forth in the Notice of Violation, or. in the event of an appeal, within ten days of the decision of the municipal authoritv upholding the decision of the Authorized Enforcement Officer, then representatives of the Authorized Enforcement Officer may enter upon the subiect private pronertv and are authorized to take anv and all measures necessary to abate the violation and/or restore the propertv. It shall be unlawful for anv person, owner, agent or person in possession of anv premises to refuse to allow the government agencv or designated contractor to enter upon the premises for the purrnoses set forth above. Subdivision 16. Cost of Abatement of the Violation. Within thirtv (30) days after abatement of the violation, the owner of the nropertv will be notified of the cost of abatement. including administrative costs. The orMertv owner may file a written protest obiecting to the amount of the assessment within ten days. If the amount due is not paid within a timelv manner as determined by the decision of the municipal authoritv or by the expiration of the time in which to file an appeal, the charges shall become a special assessment against the propertv and shall constitute a lien on the propertv for the amount of the assessment. Anv person violating anv of the provisions of this section shall become liable to the Citv by reason of such violation. Subdivision 17. Iniunctive Relief. It shall be unlawful for anv person to violate anv provision or fail to comply with anv of the reauirements of this section. If a person has violated or continues to violate the provisions of this section. the Authorized Enforcement Officer ma-4 petition for a prelimmary or permanent iniunction restraining the Berson from activities that would create further violations or compelling the person to perform abatement or remediation of the violation. Subdivision 18. Violations Deemed a Public Nuisance. In addition to the enforcement, processes and penalties provided, anv condition caused or permitted to exist in violation of anv of the provisions of this section is a threat to public health, safety, and welfare, and is declared and deemed a nuisance, and may be summarily abated or restored at the violator's expense, and/or a civil action to abate, enioin. or otherwise compel the cessation of such nuisance may be taken. Subdivision 19. Criminal Prosecution. Anv person that has violated or continues to violate this section shall be liable to criminal prosecution to the fullest extent of the law, and shall be subject to a criminal penalty as a misdemeanor. ORDINANCE NO. Subdivision 20. Remedies Not Exclusive. The remedies listed in this section are not, exclusive of anv other remedies available under anv annlicable federal. state or local law and it is within the discretion of the Authorized Enforcement Officer to seek cumulative remedies. Section 2. This Ordinance shall become effective after adoption and upon thirty (30) days following its legal publication. Adopted this day of 2006. Mayor ATTEST: City Clerk Date of Publication: Effective Date: (Str-i indicates matter to be deleted, underline indicates new matter.) i City Council Agenda Item No. 9e its adoption: Member introduced the following resolution and moved RESOLUTION NO. RESOLUTION AUTHORIZING ADDENDUM TO CITY MANAGER EMPLOYMENT AGREEMENT WHEREAS, the City of Brooklyn Center and Cornelius L. Boganey have entered into an Employment Agreement dated September 25, 2006; and WHEREAS, the parties wish to amend the Employment Agreement; and WHEREAS, the terms and conditions set forth in the proposed Addendum attached hereto and incorporated herein by reference as EXHIBIT A are reasonable and proper. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that the Mayor be and hereby is authorized to execute the attached Addendum to the employment Agreement with the City Manager. October 9, 2006 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. RESOLUTION NO. EXHIBIT A ADDENDUM TO CITY MANAGER EMPLOYMENT AGREEMENT This Addendum is made and entered into by and between the City of Brooklyn Center, a Minnesota municipal corporation (hereinafter referred to as the "City and Cornelius L. Boganey (hereinafter referred to as the "Manager as of the 9th day of October, 2006. WHEREAS, the City and Manager have entered into an employment agreement dated September 25, 2006 (hereinafter referred to as the "Employment Agreement and WHEREAS, the parties wish to amend the Employment Agreement as hereinafter set forth. NOW, THEREFORE, in consideration of the mutual covenants set forth in the Employment Agreement and herein, City and Manager agree that the Employment Agreement is amended as follows: 1. Section 12, paragraph D) of the Employment Agreement is amended by adding the following sentence: e) If the Manager is terminated by the City Council for substantiated and proven malfeasance in office, or intentional misconduct, the City shall have no obligation to provide payment and benefits listed in paragraph D) a) through D) c) of this section. Intentional misconduct is defined as substantiated and proven sexual, racial or other unlawful harassment, distribution of pornography, or acts of physical violence in the work place. "Intentional misconduct" and "malfeasance" as used in this paragraph do not include poor performance or neglect of duties. Except as explicitly modified in this Addendum, the Employment Agreement shall continue to be in full force and effect. CITY OF BROOKLYN CENTER, MINNESOTA EMPLOYEE By: Myrna Kragness, Mayor Cornelius L. Boganey By: Sharon Knutson, City Clerk City Council Agenda Item No. 9f City of Brooklyn Center A Millennium Community MEMORADUM TO: Mayor and Council Members FROM: Curt Boganey, City DATEL: October 5, 2006 SUBJECT: Fire Relief Association Pensions Last year the City Council adopted a resolution increasing the lump sum benefit for Fire Department Relief Association members form $6,000 per year to 7,000 per year (see attached memo). This decision reflected the continuation of the agreement to review the fund annually on an actuarial basis to determine if a further increase to the maximum of $7,500 per year of service was viable in response to a request from the Fire Relief Association. Attached is a letter from the association requesting this final increase raising the payment to the maximum allowed of $7,500.The City met in work session September 25 a agreed that this item should be placed on a regular agenda for consideration. Springsted has conducted the appropriate actuarial review of the fund and has provided a report. As in the previous years since 2005, the conclusion is that the fund continues to be capable of supporting an increase to $7,500 without an increase in the City annual contribution which currently is none. As indicated last year and implicit in the review this year, there always remains the potential that the City would be required to make up any deficit funding of the Fire Department Relief Association. The primary risks in that area would be a losing the valuation of the portfolio at a time during which distributions would be required or a loss of the State Pension Funding. Pension Funding receives resources from insurance surcharges or fees. Thus, State Funding may be more secure in the Fire Pension area than it has been in the area of Local Government Aid. 6301 Shingle Creek Parkway Recreation and Community Center Phone TDD Number Brooklyn Center, MN 55430 -2199 (763) 569 -3400 City Hall TDD Number (763) 569 -3300 FAX (763) 569 -3434 FAX (763) 569 -3494 www.cityofbrooklyncenter.org City of Brooklyn Center A Millennium Community MEMORANDUM TO: Mayor Kragness, Councilmembers Carmody, Lasman, Ni and O'Connor FROM: Michael J. McCauley, City Manager DATE: September 21, 2005 SUBJECT: Fire Relief Association Pension Last year, the Brooklyn Center Fire Department Relief Association requested an increase in the lump sum benefit from $5,000 per year to $6,000 per year. The City Council approved the amendment to the Fire Department Relief Association By -Laws to increase the benefit level to $6,000 per year. The resolution approving the amendment also directed a review of the lump sum benefit again in August 2005 and further encouraged the Fire Relief Association begin work on meeting the cash contingency targets that were recommended by Springsted in 2004. Pursuant to State Law, the maximum benefit amount is $7,500 per year. Fire Relief Association had requested a phase -in to the maximum benefit amount. As indicated, rather than move to $7,500, the staff recommendation, adopted by the Council, was to phase -in a benefit increase with a continued review of the actuarial status of the Fire Relief Association. Attached is the request received from the Brooklyn Center Fire Department Relief Association to increase the benefit to $7,000 per year of service in 2005 and a further request to review the benefit amount in 2006. Springsted again reviewed the actuarial valuation performed by the actuary that audits the Fire Relief Association records. Based on that review, the Brooklyn Center Fire Relief Association has made substantial progress in creating a liquid reserve to cushion potential market fluctuations in their portfolio value. The review also indicates that then Inwaarden, the Fire Relief Association actuary, would support an increase of the benefit amount to $7,000 per year of service without additional costs to the City. As indicated last year and implicit in the review this year, there always remains the potential that the City would be required to make up any deficit funding of the Fire Department Relief Association. The primary risks in that area would be a loss in the valuation of the portfolio at a time during which distributions would be required or a loss of State Pension Funding. Pension Funding receives resources from insurance surcharges or fees. Thus, State Funding may be more secure in the Fire Pension area than it is and has been in other areas where funds are transferred to local government. 6301 Shingle Creek Parkway Recreation and Community Center Phone TDD Number Brooklyn Center, MN 55430 -2199 (763) 569 -3400 City Hall TDD Number (763) 569 -3300 FAX (763) 569 -3434 FAX (763) 569 -3494 www.cityolbrooklyncenter.org BROOKLYN CENTER FIRE DEPARTMENT E�H P RELIEF ASSOCIATION R 6250 Brooklyn Boulevard, Brooklyn Center, Minnesota 55429.763 -569 -3360 i� E N G s��e isas x Serving your community since 1949 AM Ah, qL 4� P g i TO: Michael McCauley City Manager FROM: Kent A. Korman President Relief Assoc. SUBJECT: Increase to Fire Pension DATE: May 5, 2006 In 2005 upon your recommendation the Council approved an increase of $1,000 per year of service to the Brooklyn Center Fire Department Relief Association pension plan. This increase brought the plan benefit to $7000 per year of service which is still below the state pension cap of $7,500 per year of service. At the time of the increase it was agreed that we would revisit this in order to increase the benefit in 2006. The BCFD Relief Association has an excellent investment strategy; it should be possible to increase the benefit up to the state cap of $7,500 per year of service without the City of Brooklyn Center having to make any additional contribution toward the pension plan. I respectfully request the city of Brooklyn Center to increase the pension benefit by an additional $500 per year of service bring the benefit up to $7,500 per year of service in 2006. It is the hopes of the members of the Relief Association that we revisit this again in 2006 with the intention of bring us up to the cap of $7,500 per year of service. Following recommendations of Springsted Corporation the Relief Association has invested over 10 of its assets in cash funds that are safe and insured. Springsted Corporation made the recommendations during their review of the Relief association plan prier to the 2004 increase. We presently have over $400,000 in equity securities exceeding Springsted recommendations. We have provided you an actuarial report from Vaniwaarden Associates completed on June 6, 2005. The actuarial indicates that we have the amount of monies need for the increase to $7,000 per year of service in 2005 and increasing to $7,500 in 2006. The report also indicates that it was possible to increase to the state cap of $7,500 per year of service in 2005 without the city increasing its contributions with assets totaling $3,503,781.00. As of May 4, 2006 the fund has current assets of $3,724,167.00. I would like to point out our members receive no pay for fire or emergency calls (true volunteers) saving over $135,000 per year for the City of Brooklyn Center. The pension is one of the biggest selling points we have in attracting and retaining members for the department. Due to the ten year vesting requirement the increase(s) will help to enhance our ability to retain members for ten years or more. Please contact me at your convenience to schedule a meeting in order to discuss this matter further at 763- 569 -3311. It would be great if we could take care of this matter before you leave the city for you new position in Oregon. On behalf of the members of the BCFD Relief Association I would like thank you for all the Support you have shown the Fire Department during you tenure as City Manager and we will miss working with you, we wish you the best in your new role. Sincerely, Kent A. Korman President BCFD Relief Association Retirement planning for corporations June 6, 2005 Mr. Ron Boman Brooklyn Center Fire Dept. 6645 Humboldt Avenue North Brooklyn Center, MN 55430 Re`. Relief Association 2005 Benefit Study Dear Ron: Here is our estimate of the cost of increasing benefit levels for the Brooklyn Center Fire Department Relief Association. The enclosed exhibit shows the effect on the municipal contribution of increasing the lump sum benefit to $7,000 in 2005 and $7,500 in 2006, or alternatively to $7,500 in 2005. Please call with any questions regarding the exhibit or if you would like any additional information. Sincerely, v Paul D. Krueger, JD, EA Consulting Actuary VAN IWAARDEN ASSOCIATES 840 LUMBER EXCHANGE BUILDING TEN SOUTH FiETH STREET MINNEAPOLIS MN 55402 -1010 612.596.5960 f. 612.5 %.5999 WWW.vANIwAARDFN.com BROOKLYN CENTER FIRE DEP *MENT RELIEF ASSOCIATION Projected Cost of Alternative Benefit Increases Current Plan Alternative 1 Atternat 2 Lump sum amount: $6,000 $7,000 $7,500 $7,500 First effective January 1: 2004 2005 2006 2005 Liabilities below estimated as of January 1: 2005 2005 2006 2005 A. Pro %cted ac tuarial accrued liability 1. Active members $2,070,230 $2,415,268 $2,821,000 $2,587,788 2. Vested terminated members 190,549 190,549 200,000 190,549 3. Retired members 406,845 406,845 386,000 406,845 4.S pouses receiving benefits 318,599 318,599 294,000 318,599 5. Children receiving benefits 0 0 0 0 6. Disabled members receiving benefits Q Q Q Q 7. Total actuarial accrued liability $2,986,223 $3,331,261 $3,701,000 $3,503,781 B. Project snecia fund 3,381,603 3,381,603 3,633,000 3,381,603 (assumes a 5% rate of return) C. U nfunded accrued accrued l iability (395,380) (50,342) 68,000 122,178 D. Cr edit, or surplus (39,538) (5,034) 0 0 E.Am d&ationpayment N/A 0 5,197 9,337 I F. No rmal cost 79,135 92,324 99,000 98,919 G. An contributi payable: 2006 2006 2007 2006 1. Preliminary contribution (D. E. F.) 39,597 87,290 104,197 108,256 2. Administrative expense 19.562, 19.562 20.000 19.562 3. Annual contribution (1.+ 2.) 59,159 106,852 124,197 127,817 4. Estimated State Aid (158,991) (162,171) (165,414) (162,171) 5. Estimated municipal contribution $0 $0 $0 $0 NOTE& The values shown for 2005 are from the January 1, 2005 actuarial valuation report. The remaining values are based on the following assumptions: investment return: 5.00% annual State Aid increase: 2.00% number of active firefighters after 2005: 37 PRJAAFOS. WK4 06/06/2005 s BROOKLYN CENTER FIRE DEPARTMENT RELIEF ASSOCIATION Projected Cost of Alternative Benefit Increases Current Plaq Alternative 1 klternaliyt 2 Lump sum amount: $6,000 $7,000 $7,500 $7,500 First effective January 1: 2004 2005 2006 2005 Liabilities below estimated t ated as of January 1: 2005 2005 2006 2005 A Pr oiected actuarial a ccrue Id lability 1. Active members $2,070,230 $2,415,268 $2,821,000 $2,587,788 2. Vested terminated members 190,549 190,549 200,000 190,549 3. Retired members 406,845 406,845 386,000 406,845 4.S pouses receiving benefits 318,599 318,599 294,000 318,599 5. Children receiving benefits 0 0 0 0 6. Disabled members receiving benefits 0 0 0 0 7. Total actuarial accrued liability $2,986,223 $3,331,261 $3,701,000 $3,503,781 B. Pr ojected FPecial fund 3,381,603 3,381,603 3,633,000 3,381,603 (assumes a 5% rate of return) C. U nfunded accrued accrued liability (395,380) (50,342) 68,000 122,178 D. 0wdit for s wphia (39,538) (5,034) 0 0 E. AmortiMdan moment N/A 0 5,197 9,337 F Normal cost 79,135 92,324 99,000 98,919 G Annual contribution payable: 2006 7006 2007 2006 1. Preliminary contribution (D. +E. +F.) 39,597 87,290 104,197 108,256 2. Administrative expense 19.562 19.562 20.000 19.562 3. Annual contribution (1. +2.) 59,159 106,852 124,197 127,817 4. Estimated State Aid (158,991) (162,171) (165,414) (162,171) 5. Estimated municipal contribution $0 $0 $0 $0 NOTES'.• The values shown for 2005 are from the January 1, 2005 actuarial valuation report. The remaining values are based on the following assumptions: investment return: 5.00% -annual State Aid increase: 2.00 number of active firefighters a#dr 2005: 37 PRJAAF05. WK4 06/06/2005 I I Asset Allocation Presentation BROOKLYN CENTER FIRE DEPARTMENT Current vs Strategic Allocation Detailed Classification Analysis Current Custom -FRA 60 /40 Large Cap Growth (12.71 Large Cap Growth (12.50 Large Cap Value (15.04 AM Large Cap Value (12.50%) El Mid Cap Growth (3.75 Mid Cap Growth (5.00%) Mid Cap Value (9.10 Mid Cap Value (5.00 El Small Cap Growth (2.95 E] Small Cap Growth (5.00 Small Cap Value (4.26 Small Cap Value (5.00 International Equity (18.93 International Equity (15.00%) 0 Multi -Class (6.51 Long Term Taxable Fixed Income (5. Lon Term Taxable Fixed Income (5. 00 42.2) Intermediate Taxable Fixed Income Intermediate Taxable Fixed Income (30.00 (5.42 Cash Equivalent (5.00 International Fixed Income (0.11 Cash Equivalent (13.70 El Real Estate Investment Trusts (0.06 Other (2.02 Long Positions Detail Current Strategic Difference Large Cap Growth 473,462.53 12.71% 465,520.88 12.50% 7,941.65 -0.21% Large Cap Value 560,254.71 15.04% 465,520.88 12.50% 94,733.83 -2.54% Mid Cap Growth 139,729.34 3.75% 186,208.35 5.00% 46,479.01 1.25% Mid Cap Value 339,023.82 9.10% 186,208.35 5.00% 152,815.47 -4.10% Small Cap Growth 109,840.58 2.95% $186,208.35 5.00% 76,367.78 2.05% Small Cap Value 158,820.39 4.26% 186,208.35 5.00% 27,387.97 0.74% International Equity 704,931.38 18.93% 558,625.05 15.00% 146,306.33 -3.93% Multi -Class 242,355.80 6.51% 0.00 0.00% 242,355.80 -6.51% Long Term Taxable Fixed Income 201,997.98 5.42% 186,208.35 5.00% 15,789.63 -0.42% Intermediate Taxable Fixed Income 201,929.29 5.42% $1,117,250.11 30.00% 915,320.82 24.58% International Fixed Income 4,034.32 0.11% 0.00 0.00% 4,034.32 -0.11% Cash Equivalent 510,370.07 13.70% 186,208.35 5.00% 324,161.72 -8.70% I Real Estate Investment Trusts 2,166.00 0.06% 0.00 0.00% 2,166.00 -0.06% Other 75,250.82 2.02% 0.00 0.00% 75,250.82 -2.02% Total: 3,724,167.02 100.00% 3,724,167.02 100.00% 0.00 0.00% The Disclosures at the end of the report include definitions of the terms on this page and other detailed information. Market Values are based on closing prices and positions as of 313112006 for security level holdings. Copyright© 2006. Wachovia Securities, LLC. All Rights Reserved. Page 8 of 28 BROOKLYN CENTER FIRE DEPARTMENT RELIEF ASSOCIATION Serving with Pride Since 1949 BCFD Requirements It takes over 200 hours of training for a recruit firefighter to become state certified in firefighter 1. A members of the department train three Monday nights a -month and attend one business meeting every month. In addition, a member must respond to 33% of a emergency runs in order to remain a member of the fire department. BCFD Stats Our response time from the time we are dispatched on a ca to the time we arrive is under 6 minutes. We average 14 -20 firefighters responding on emergency runs. For the past three years we are averaging between 950 to 1000 emergency runs per year, or a most three ca s per day. Pension History Our fire department has not requested run pay from the city for responding to fire emergency ca s. his is because historica y when the State has raised the fire pension cei ing, the City has a owed us to increase our ump sum benefit to the maximum a owed by State statutes. he members have referred to this as deferred compensation and inform the new members that is why we do not receive run pay ike other fire departments do in the metro area. Comparable Fire Departments City City Population State 2% Contribution Run Pay Alexandria 8,820 $117,948 $63,198 0 Brainerd 13,178 $197,480 $75,870 $158,400 Golden Valley 20,281 $156,619 $73,820 $152,821 Hopkins 17,145 $105,417 $32,166 $135,545 Lake Johanna 39,459 $295,607 $82,381 $160,000 Northfield 17,147 $134,670 $91,413 $121,000 Plymouth 65,894 $497,000 0 $385,000 Robbinsdale 14,123 $80,091 $100,000 $43,500 White Bear 24,325 $239,920 0 $100,450 Brooklyn Center 1 29,7851 $154,346 1 0 0 1 Brooklyn Park 68,0001 $386,0001 $23,0001 $288,927 Fridley 1 28,0001 $176,5521 01 $162,8801 West Metro 43,5711 $244,0901 NA 1 $188,0961 Springsted Incorporated 380 Jackson Street, Suite 300 Saint Paul, MN 55101 -2887 Spring e d Tel: 651- 223 -3000 www p ringst e d.co www.sringstd.com August 11, 2006 Mr. Curt Boganey, Acting City Manager City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 -2199 Dear Curt: You have requested that we informally review the material provided by the Brooklyn Center Fire Relief Association and its most recent actuarial valuation which was performed by Van Inwaarden. As with similar reviews we have performed in past years, you have again asked that we review this information not from an actuarial standpoint but from the City's policy perspective in order to give you a second opinion regarding the potential policy implications for the City. We have undertaken an informal review utilizing the Associations 2005 Audit Report and the Van Inwaarden January 1, 2005 actuarial valuation dated June 6, 2005. Based on this review, we have come up with the following findings: The Fund continues to be well run and actuarially sound based upon the Van Inwaarden report. The plan had a surplus of $525,034 as of January 1, 2006 compared to $539,819 as of January 1, 2005. The small decrease in surplus is due primarily to the increase in the actuarial accrued liability of active members as of January 1, 2005 and reflects the increase in lump sum benefits from $6,000 per year of service to $7,000 per year of service for 2005. The firefighters are requesting that their lump sum benefits be increased from $7,000 per year of service to $7,500 per year of service, the state pension cap. The actuarial valuation incorporates two alternatives: the increase to $7,000 for 2005 and an increase to $7,500 for 2006 and the increase for 2005 to $7,500 per year of service. The City approved the increase to $7,000 and is now considering the increase to $7,500. Based on the actuarial valuation dated June 6, 2005, the City would not be required to make a contribution to the fund during the period 2005 and 2006, over and above what is projected for state aid, under either scenario. The City contributed $0 during 2005 and $0 during 2004. Public Sector Advisors City of Brooklyn Center, Minnesota August 11, 2006 Page 2 The state aid passed through to the Association for 2005 was $154,346 and $158,991 in 2004. State aid for 2006 is projected in the actuarial valuation to be $162,171 and then increased by two percent (2 each year. One of the issues addressed is the diversity of investments held by the Association. As of December 31, 2005 approximately forty-eight percent (47.74 or $1,768,957 of the plan assets continued to be held in corporate stocks and bonds with the remaining $1,936,462 held in primarily mutual funds and other cash equivalents. Approximately eleven percent (10.78 of total investments, or $399,579, was held in certificates of deposit. The Association has been very successful at achieving a reserve of more than ten percent (10 of the funds held in instruments subject to market fluctuations for the year ended December 31, 2005 which helps minimize the risks to the City which could be caused by fluctuations in the market. The primary concern of the City is if it concurs with the request, will the increase requested require the City to contribute additional dollar resources to the Relief Association Retirement Fund? Based upon the information available the answer would be no; there are no additional dollars required to be contributed by the City to the Association for an increase in the lump sum benefit to $7,500 per year of service in 2006. However, while there will be no apparent financial impact to the City increasing from $7,000 in 2005 to approximately $7,500 in 2006 based on the current actuarial valuation, changes in the economy could significantly impact the projected actuarial valuations. The situation continues to be complex and requires more than a simple yes or no answer. Some areas where we believe there could be issues are as follows: Investments The market while stable today could fluctuate significantly at any point in time as was seen in past years. As mentioned above, the Association still holds the majority of their investments in instruments that are subject to market fluctuations. The net value of the Associations assets could decline and be substantially less then the original purchase price. This could cause a need for additional contributions from the City to keep the Retirement Fund at a fully- funded status. We had recommended in past reviews, and concur with that recommendation today, that the City could protect itself and minimize its risk by requiring the Association to establish a reserve fund that would equal ten to twenty percent of the funds held in instruments subject to market fluctuations. This fund could be used to make -up any shortfall or portion thereof caused by market fluctuations and downturns that would have caused an increase in the City's contribution to meet the actuarial value of the fund. Monies held in money market accounts could be a part of the total reserve. Based on the investments held at December 31, 2005, a reserve of ten percent would have been approximately $370,542. As stated before, there was $399,579 held in certificates of deposit alone that could be applied to this reserve amount leaving an excess approximately $29,037, without taking into consideration any additional funds held in money market accounts as of December 31, 2005. Inclusion of the money market accounts would increase the percentage of the reserve. This reserve amount would be adjusted in direct relationship to the dollars invested in investments that are subject to market fluctuations. City of Brooklyn Center, Minnesota August 11, 2006 Page 3 State Aid The State Aid is projected to increase at a level of 2% each year in the actuarial valuation. The iv impact current. flux with the State's financial position could have a negative act on the amount p passed through to relief associations. Funding for fire state aid comes from taxes paid to the state for certain insurance policies. The distribution is based in part on the population and market value of the area served and in part on the number of "active" firefighters who are members of the relief association. This area should be monitored to ensure the actuarial valuations are not too aggressive in this area. Actuarial Valuation The most recent actuarial valuation included two alternatives and was most recently updated as of June 6, 2005. The first includes an increase in the lump sum benefit to $7,000 per year of service for 2005 (which was approved by the City) and to $7,500 per year of service for 2006. The second alternative included an increase in the lump sum benefit to $7,500 per year of service for 2005 but was not approved. Both alternatives indicate that based on current conditions, no additional contribution by the City would be required to fund the requests. These responses are based on a review utilizing the Associations 2005 and 2004 Audit Reports and the Van Inwaarden January 1, 2005 actuarial valuation dated June 6, 2005. We trust these responses address the policy issues raised on behalf o the City. Again, Springsted is not offering an opinion as to the actuarial status of the fund; rather, this is a review of potential risk and a way for the City to manage it. Sincerely, Spr I nco p&rute& Springsted Incorporated adoption: Member introduced the following resolution and moved its RESOLUTION NO. RESOLUTION APPROVING AMENDMENT TO THE FIRE DEPARTMENT RELIEF ASSOCIATION BY -LAWS WHEREAS, the Brooklyn Center Fire Department Relief Association has requested City approval of a benefit.increase for retirees; and WHEREAS, such benefit increase would require an amendment of the City of Brooklyn Center Fire Department Relief Association By -laws; and WHEREAS, Van Iwaarden and Associates has conducted an actuarial valuation and benefit study and determined that the anticipated assets available for benefits would be sufficient to support the proposed By -law amendment to increase the benefit the level to $7,500 per year; and WHEREAS, Springsted public finance advisors has reviewed the report prepared by Van Iwaarden and Associates and the financial statement for the City of Brooklyn Center Fire Department Relief Association for the year ended December 31, 2005, and found the fund to be well run and actuarially sound based upon the review of the Van Iwaarden and Associates report and financial statement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that an amendment to the By -laws of the City of Brooklyn Center Fire Department Relief Association to increase the lump sum benefit to $7,500 per year be and hereby is approved as of January 1, 2006. October 9. 2006 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. City Council Agenda Item No. 9g Memorandum Date: 5 October 2006 To: Curt Boganey City Manager From: Daniel Jordet Director of Fiscal Support Services Re: Utility Assessment at 5546 Emerson Avenue North At the 11 September 2006 meeting the City Council directed staff to remove two assessments from the proposed roll adopted that evening. One was for 3713 53 Place North and the other was for 5546 Emerson Avenue North. The 53 Place assessment was removed and placed in collection under City Council policy 2.30 -3.C.1 which states, if effect, that new owners will not be held responsible for bills incurred by previous owners. 5546 Emerson Avenue is a very different situation. The action removing the assessment from the roll was taken because Ms. Casandra Floyd appeared before the Council. She was concerned that her ownership status would be affected and was not clear on the impact this assessment would have on her interest in the property. Ms. C. Floyd has no legal interest in the property and is therefore not responsible for the assessment that would be made. The property is owned by her mother, Ms. Roberta Floyd who is responsible for all assessment and tax amounts. Ms. C. Floyd appears in the property and utility records only because she has obtained homestead tax status on the property as a relative of the owner of the property, Ms. R. Floyd. While the difficulty between Ms. C. Floyd and Ms. R. Floyd regarding payment of utilities and property tax assessments is regrettable, the City of Brooklyn Center has no legal remedies to deal with this situation. A history of the property's assessment and property tax status indicates that utilities have been previously assessed to this location in the Fall of 2005 and in the Spring of 2006. In addition, there is a weed removal assessment pending on the property. It would also appear that no property taxes or assessment have actually been paid on the property since 2004. This puts the property at risk of forfeiture. In the case of forfeiture, taxes and assessments are the first claims on proceeds from any tax sale that might take place. Therefore, I recommend that the assessment of delinquent utilities against the property at 5546 Emerson Avenue North be adopted and certified to Hennepin County as requested in the original memorandum and resolution. following introduced the o Member intro g resolution and moved its adoption: RESOLUTION NO. RESOLUTION CERTIFYING SPECIAL ASSESSMENTS FOR DELINQUENT PUBLIC UTILITY SERVICE ACCOUNTS TO THE HENNEPIN COUNTY TAX ROLLS WHEREAS, the records of the Public Utilities Department list certain accounts delinquent as of Julyl, 2006; and WHEREAS, the owners of record of the properties served by each delinquent account have requirements; and been notified of the delinquency according to legal re uire b q Y g g q WHEREAS, Minnesota Statutes, Section 444.075 and City Ordinances, Sections 4 -105 and 4 -201 authorize certification of such delinquent accounts to the County tax rolls for collection; and WHEREAS, an assessment roll, a copy of which is attached hereto and made part hereof by reference, has been prepared, tabulating those properties where a delinquent public utility account is to be assessed with the amount, including service charges, to be assessed; and WHEREAS, pursuant to proper notice duly given as required by law, the Council has met and heard and passed upon all objections to the proposed assessment for delinquent public utility accounts; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL of the City of Brooklyn Center, Minnesota, that: 1. The assessment roll of delinquent public utility accounts is hereby adopted and included in Levy No. 16571. 2. The assessments as adopted and confirmed shall be payable with ad valorem taxes in 2007, in one annual installment with interest thereon at five and a half (5.5) percent per annum, and shall bear interest on the entire assessment from October 1, 2006 through December 31, 2007. 3. The owner of any property so assessed may at any time prior to the certification of the assessment to the County Auditor pay the whole of the assessment to the City Treasurer, without interest, if the entire assessment is paid on or before November 9, 2006. After November 9, 2006, he or she may pay the total assessment, plus interest. RESOLUTION NO. Interest will accumulate from October 1, 2006, through the date of payment. Such payment must be made by the close -of- business November 29, 2006 or interest will be charged through December 31 of the succeeding year 4. The City Clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be extended on the proper tax lists of the county, and such assessments shall be collected and paid over in the same manner as other municipal taxes. October 9. 2006 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. l.Vnnr,N l l,rinl, 1.H 11 VLV nr,rvnl ACCOUNT -NUM1 NAME /ADDRESS ADDRESS- TYlTAX -ROLL- SEND -CD AMT -OPEN ADMIN- CHARGE ASSEOAMT PID ------------------------------------7------------------------------- 607963000703 CASANDRA FLOYD S Y 329.55 30.00 359.55 0111821320090 5546 EMERSON AVE N BROOKLYN CENTER MN 55430 -3156 607963000703 ROBERTA FLOYD B Y 329.55 30.00 359.55 0111821320090 7244 YORK AVE S #416 EDINA MN 55435 -4417 i I I I AGENDA CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY WORK SESSION October 9, 2006 Immediately Following Regular City Council and EDA Meetings Which Start at 7:00 P.M. City Council Chambers A copy of the full City Council packet is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. ACTIVE DISCUSSION ITEMS 1. Revisions to New Hotel Development Agreement City Manager 2. Recommendation Regarding Investment Policy Modifications per Audit City Manager 3. Selection of Retreat Facilitator Council 4. Request from Councilmember Niesen to Discuss Financial Reports (tabled from 9/25/06) 5. Northwest Suburbs Cable Communications Commission Regarding Resolution to the League of Minnesota Cities Gregory Moore 6. Mosaic Youth Center Resolution Mayor Kragness 7. Citizen Comment Card Results Council 8. Lang Nelson- Rental License Policy City Manager Pending List for Future Work Sessions October 23 New Law (HF 3779, Chapter 240) Zoning Requirements for Adult Establishments Councilmember Lasman Shingle Creek Watershed Management Commission Major Plan Amendment November Charter Amendments Charter Commission Revisions to Sign Ordinance- Banners Council Financial Commission Member Recruitment January 2007 Audit Committee Councilmember Niesen MEMORANDUM COUNCIL WORK SESSION DATE: October 6, 2006 TO: Brooklyn Center City Council/EDA FROM: Curt Boganey, Cit ger SUBJECT: New Hotel Development Agreement COUNCIL ACTION REQUIRED Further direction form the City Council/EDA regarding the acceptability of the proposed changes to the previously approved Development Agreement with Brooklyn Hotel Partners, LLC for the construction of a new Hotel in two phases on property currently owned by the EDA. BACKGROUND On May 9, 2005 the EDA approved a development agreement with Brooklyn Hotel Partners LLC for a new hotel development adjacent to the Earle Brown Heritage Center. p J Subsequent to that signing, the development agreement was challenged in court which led to significant delays in the project. Eventually the law suits were dismissed and at this time the developers are prepared to move forward with the project. Because of the delays conditions have changed that has made it necessary to modify the original terms of the agreement. We believe that the renegotiated terms remain favorable and will allow the EDA to meet its' original objectives. agreement and answer I will be prepared to explain the changes to the a Mr. Hoffman and g p P p g your questions on Monday. COUNCIL POLICY ISSUES Does the amended agreement meet continue to meet the goals and objectives of the City and Economic Development Authority? GACity Manager \Hote110.09.06.MEM.FRM.doc MEMORANDUM TO: Curt Boganey, City Manager FROM. Brad Hoffman, Community Development Director DATE: August 25, 2006 SUBJECT: Hotel Development Agreement At the May 9, 2005 EDA meeting a development agreement with Brooklyn Hotel Partners, LLC was approved. Under the terms of the agreement, the developer would construct two (2) hotels with a total of 250 rooms. The hotels would be physically linked by a 25,000 square foot water park. The entire development would also to be attached to the Earle Brown Heritage Center via a covered walkway/link. Prior to the developers' submission of construction plans for the issuance of building permits, the EDA development agreement was challenged by a non profit group established the same day as the filing of the law suit. The Courts eventually dismissed the suit as being without merit. However as a result of the law suit, sufficient time passed to require the developer and the EDA to reconsider the terms and conditions upon which the agreement was entered into. Also, the Embassy Suits changed its building format which would have required some modification of the site and building plan. Monday evening staff is prepared to discuss the terms and conditions of a new or restated development agreement that could be brought to the EDA for their consideration. Under the approved agreement which has not been rescinded, the developer would have purchased the development site owned by the EDA for $2,160,000. The EDA had agreed to defer payment for the property for a term of twenty (20) years without interest unless the property were sold or refinanced. The developer was to build a 175 room Embassy Suites and a 75 room Hampton Inn. The proposed agreement would have the developer still constructing a 175 room hotel; the agreement identifies several hotel flags including Embassy Suites, Radisson, Sheraton and Hilton as acceptable. It should be noted that the developer is still of the position of wanting to build the Embassy Suites. At this time only a Holiday Express has been identified by the developer for Phase Two (2) of the project. The developer was also required to construct a link to the Heritage Center with the EDA contributing $1,000,000 as its share of the cost for the link. The cost was based upon construction estimates for the link to be constructed on EDA property. The part of the link constructed on the developers' property was to be paid for by the developer. Finally, the developer was to build a 25,000 square foot water park connecting the two (2) hotels. As stated in the development agreement the water park became a required development although its inclusion was the concept of the developer and never was a development specifically sought by the EDA. Under the proposed agreement, the water park would not be required. The developer is still considering it however there is going to be a proliferation of such parks in the near future. The developer has expressed an interest in creating a spa at the site but as noted such additional developments would not be required. The addition of a water park or spa would be optional for the developer. The current agreement provides financial incentives to the developer in the form of tax increment financing (TIF). The project is located within the boundaries of TIF District 2 which expires in 2009. The developer would receive the TIF proceeds generated only by the hotel project through the remaining life of the district but not to exceed $2, 600,000 on a pay as you go basis. All TIF proceeds had to be used for eligible expenses as defined by statute. Under the terms of the proposed agreement, the site would be removed from the TIF District and the City would abate its portion of the taxes generated by the project for a period of ten (10) years. Each of the two (2) phases of development would be abated separately for a ten (10) year period. Again, the total abatement for both phases of the development would not exceed $2,600,000. The development would pay property taxes as any other development with taxes being paid to the School District, County and other taxing entities. The proposed agreement also differs from the current agreement in that the EDA would sell the land to the developer for $1 and other considerations as opposed to the $2,160,000 note that the EDA would receive in twenty (20) years. At a 5% discount rate, the current value of the $2,160,000 the EDA would receive is approximately $814,081. As previously noted, the current agreement requires an expenditure of $1,000,000 on the part of the EDA for its share of the link between the Heritage Center and the hotels. The proposed agreement would place the entire cost of the link upon the developer. As a result of the exchange of the long term note from the developer to the EDA for the construction of the link, the EDA realizes a net savings of approximately $185,919. Assuming approval of the agreement, the developer would be required to start construction on Phase 1 by April 30, 2007 and be completed by October 30, 2008. The developer would then have until April 30, 2012 to start Phase 2 and be completed by October 30, 2013. The Phase 1 abatement would run from 2010 to 2019 and the Phase 2 abatement assuming it is not completed sooner would run from 2015 to 2024. Again, the duration could be shorter if the maximum abatement of $2,600,000 is reached prior to these dates. Assuming the project has a taxable market value of $25,000,000 upon completion, the approximate distribution of property taxes would be; Hennepin County $131,958, Brooklyn Center School District $160,675, Brooklyn Center HRA $3,660, City of Brooklyn Center $161,034 (abated) and other taxing entities $36,662, State General Tax $254,618. We expect to be able to complete the development agreement very shortly and have it before the EDA for approval. Any changes to the language currently in the draft agreement should be minor. Staff will be able to discuss this issue in greater detail with the EDA at Monday evening's work session. At the work session, staff should be directed to complete the agreement and bring it to the Commissioners for approval if they find the terms and conditions acceptable. Memorandum Date: 6 October 2006 To: Curt Boganey City Manager From: Daniel )ordet Director of Fiscal Support Services Re: Financial Policies Investment Policies In preparing to make some investments last spring, staff discovered a. discrepancy in practice between past investments and existing City Council policy. The discrepancy is in the purchase of mortgage backed agency securities issued by agencies of the United States government. These types of securities were purchased for several years and, indeed, the City had a varied portfolio of agency securities when I arrived in 2004. After discovering this discrepancy I allowed all agency securities in our portfolio to mature and placed the proceeds in the 4M and 4M Plus funds for investment purposes. After making our audit firm aware of the discrepancy the City was cited for the agency investments in the 2005 audit management letter although the practice had been carried on for several prior years. Agency securities produce higher yields than the 4M and 4M Plus funds, higher yields than bank certificates of deposit, and provide more safety than corporate commercial paper, an investment allowed under the current investment policy. They are allowed by Minnesota Statutes section 118A which governs investments of funds by government entities. The Government Finance Officers Association (GFOA) includes agency securities as allowable investments in their model policy. The League of Minnesota Cities research paper on Deposits and Investments includes agency securities in the allowable investment types it lists. The Cities of Shakopee and Minneapolis, whose Investment Policies were reviewed in my research, allow government agency securities as proper investments. The City Council policy on investments specifically excludes ANY mortgage backed security. Most of the government agency securities are mortgage based securities. Federal National Mortgage Association (Fannie Mae), Government National Mortgage Association (Ginnie Mae), and Federal Home Loan Mortgage Corporation (Freddie Mac) are all government agencies involved in mortgages. However, they are allowed as safe investments by many investment policies, as 1 well as by State law. Therefore, I am recommending that the City Council's Investment Policy be amended to remove the restrictions on ALL mortgage backed securities and all investment in government agency securities involved in mortgage activities. Other changes proposed in the policy review are as follows: The schedule for requesting RFP's for professional services needs to be reconfigures as the current schedule only shows activity through 2005. The "prudent person standard" for investments is further defined as Section 118A of Minnesota Statutes. References to the Adequate General Fund Balance Formula have been revised to the General Fund Reserve Policy to conform with the existing City Council policy. Projections for Enterprise Funds are expanded to five years from three years both to conform with current practice and to provide more responsible financial planning. Tax increment revenues are classified, as per State classification, as a non property tax revenue source for bonding purposes. Property assessment updates have been changed from at least every four years to at least every five years to conform to new county and State regulations. Several semantic modifications have been incorporated to make the policies easier to understand and interpret. The Financial Commission reviewed the revised policies at their 19 September 2006 meeting and recommended them to the City Council for adoption. 2 SECTION II GENERAL POLICIES City Council Code of Policies 2.21 Financial Management Policies 1. Purpose The City of Brooklyn Center has a responsibility to its citizens to carefully account for public funds, to manage municipal finances wisely, and to plan the adequate funding of services desired by the public, including the provision and maintenance of public facilities. The City also has the responsibility to its citizens to provide both short-term and long -term future financial stability. The City must ensure that it is capable of adequately funding and providing local government services needed by the community. Further, the financial policies set forth herein, provide the basic framework for the overall fiscal management of the City. Operating independently of changing circumstances and conditions, these policies assist the decision making process of the City Council and Administration. Most of the policies represent long- standing principles, traditions and practices which have guided the City in the past and have helped maintain financial stability over the past years. The financial policies will be reviewed periodically to ascertain if modifications are necessary. 2. Objectives In order to achieve this purpose, this plan has the following objectives for the City's fiscal performance: A. To protect the City Council's policy- making ability by ensuring that important policy decisions are not controlled by financial problems or emergencies and to prevent financial difficulties. B. To provide sound principles to guide the important decisions of the City Council and of management which have significant fiscal impact and to enhance the City Council's policy- making ability by providing accurate information on program costs. C. To set forth operational principles which ffairiiimiz control the cost of local Formatted: Strikethrough government, to the extent consistent with services desired by the public and which ie lower financial risk. Formatted: strikethrough D. To employ revenue policies whichpfevgpt mitieate undue or unbalanced reliance Formatted: Strikethrough on certain revenues, especially property taxes; which distribute the costs of municipal services fairly; and which provide adequate funds to operate desired program and assist sound management of the city government by providing accurate and timely information on financial conditions. E. To provide essential public facilities and prevent deterioration of the City's public facilities and its capital plant. City of Brooklyn Center 08/14/06 Page 223 3 SECTION II GENERAL POLICIES City Council Code of Policies F. To protect and enhance the City's credit rating and prevent default on any municipal debts. G. To ensure the legal use and protection of all City funds through a quality system of financial and internal controls. H. The City will maintain a Risk Management Program that will minimize the impact of legal liabilities, natural disasters or other emergencies. 3. Financial Management Policies A. Capital Improvement Budget Policies 1. The City will make all capital improvements in accordance with an adopted Capital Improvement Budget. 2. The City will develop a multi -year plan for capital improvements and update it at least biennially. 3. The City will pan adont the annual Capital Imnrcn-emcnis BUdget 1 Formatted: Strikethrough based on the multi -year capital improvement plan. Future capital expenditures necessitated by changes in population, changes in real estate development, or changes in economic base will be calculated and included in Capital Budget projections. 4. The City will coordinate development of the Capital Improvement Budget with the development of the operating budget. Future operating costs associated with new capital improvements will be projected and included in operating budget forecasts. 5. The City will use intergovernmental assistance to finance only those capital improvement, which are consistent with the adopted capital Deleted: improvement plan and City priorities and for which operating and maintenance costs have been included in operating budget forecasts. 6. The City will project its equipment replacement and maintenance needs for the next several years and will update this projection each year. From this projection, a maintenance and replacement schedule will be developed and followed. 7. The City staff will identify the estimated costs and potential funding sources for each capital project proposal before it is submitted to the City Council for approval. 8. The City will determine the least costly financing method over the length of all new projects. City of Brooklyn Center 08/14/06 Page 224 4 SECTION II GENERAL POLICIES City Council Code of Policies B. Revenue Policies diversified and stable revenues stem i. The City ill attempt to maintain a dt Y Y P m short -run fluctuations in an to shelter it from Y one revenue source and to minimize property taxes. 2. The City will estimate its annual revenue by an objective conservative analytical process. 3. The City will project revenues for the next three years and will update this projection annually. Each existing and potential revenue source will be reexamined annually. 4. The City will maintain sound appraisal procedures to keep property values correct. Property will be assessed at the legally mandated market value for each type of property. Reassessments will be made of all property at least every €eaF five vears. 1 Formatted: Strikethrough 5. The City will follow an sggri sskte assertive policy of collecting property Formatted: Strikethrough tax revenues. The annual level of uncollected property taxes should generally not exceed two percent. 6. Each year the City will recalculate the full costs of activities supported by user fees to identify the impact of inflation and other cost increases. 7. The Cit y staff will recommend revised user fees with review by the City Council on an annual bass, to adjust for cost factors_ and Deleted: e inflation on the City cost of providing services. Formatted: Strikethrough 8. The City will set fees and user charges for each Enterprise Fund, such as Water and Sewer, at a level which fully supports the total direct and indirect costs of the activity. Indirect costs include the cost of annual depreciation of capital assets. 9, ix'„rh t ser charges and fees,aFe determined to be appropriate for City Formatted Strikethrough tl...�° ,.L.., «.7 F services Q will generally be establi at ..level Deleted which will recover the full cost of providing the service, including Formatted: Strikethrough administrative costs. Formatted: Strikethrough C. Debt Policies I. The City will confine long -term borrowing to capital improvements or projects which cannot be financed from current revenues. 2. When the City inances capital projects b issuing bonds, it will pay back Y P P J Y g the bonds within a period not to exceed the expected useful life of the project. City of Brooklyn Center 08/14/06 Page 225 5 SECTION II GENERAL POLICIES City Council Code of Policies 3. On all projects, at least 50% of the principal shall be retired within ten .years. 4. The City will wake every attempt to keep the average maturity of General Obligation Bonds at or below 20 years. 5. Total debt service navmentsfor General Obligation debt will not exceed five percent of total annual locally generated operating revenue in the general, special revenue, and proprietary funds. 6. Total outstanding General Obligation debt will not exceed two percent of the market valuation of taxable property. 7. Where possible, the City will use special assessment, revenue or other self supporting bonds instead of General Obligation Bonds. 8. The City will not incur debt to support current operations. 9. The City will maintain good communications with bond rating agencies regarding its financial condition. The City will follow a policy of full disclosure in every financial report. official statement and bond prospectus. 10. Direct net -debt (gross debt less debt fully supported by non- ormeriv tax revenues) per capita shall not exceed $600 per capita. 11. The City will require Minimum Assessment (Taxable Valuation) Agreements on all projects in which the City is providing development assistance through tax increment financing or committing its bonding authority. This will ensure minimal cash flow (increment) to repay obligations, provide another level of review before commitment (by the City Assessor), and to the minimal value agreed upon, eliminate tax appeals during the agreement period. 12. For ournoses of this section. tax increment revenues are classified as a non- orot)erty tax revenue source D. Reserve Policies 1. The City shall manage its cash flow needs by having a target unreserved and undesignated General Fund balance at the close of each fiscal year equal_fie l3et een of 50 and to 52% of the next_ year's General Fund ;Formatted: strikemroe9n operating budget. Formatted: strikethrough 2. Undesignated General Fund monies that are not required for cash flow purposes may be transferred into other funds as may be appropriate or needed during the fiscal year. It is specifically anticipated that transfers City of Brooklyn Center 08/14/06 Page 226 6 SECTION II GENERAL POLICIES City Council Code of Policies will be made to the Street Reconstruction Fund, Capital Improvements Fund, and the Technology Fund when operating results generate a surplus of actual revenues over actual expenditures to serve as a recurring source of funding for those three funds. Deleted: Page Break----- E. Investment Policies 1. The City will make cash flow analysis of all funds on a regular basis. Disbursement, collection and deposit of all funds will be scheduled to ensure maximum cash availability. 2. When permitted by law, the City will pool cash from several different funds for investment purposes. 3. The City will invest at least 98% of its idle cash on a continuous basis. 4. The City will analyze market conditions and investment securities to determine what yield can be obtained, and attempt to secure the best possible return on all cash investments. 5. The City's accounting system will provide regular information concerning cash position and investment performance. 6. The City will maintain a formal written investment policy which will contain legal and administrative guidelines necessary to ensure that the City's available funds will be invested to the maximum extent possible, at the highest rates obtainable at the time of the investment, consistent with minimizing credit and market risk and which provides proper safeguards for the keeping of the City's investments. F. Accounting, Auditing and Financial Reporting Policies 1. The City will establish and maintain a high standard of accounting practices in conformance with aenerally accented accountiria principals. 2. The accounting system will maintain records on a basis consistent with accepted standards for local government accounting using ,=r {Formatted: Strikethrough ae enial GASI3 34 as the basis of accounting for all governmental funds and an accrual basis of accounting for Enterprise and Internal Service Funds. Accounting policies will reflect the principle of charging current taxpayers and/or users for the full cost of providing current services. 3. Regular monthly and annual financial reports will present a summary of financial activity by major types of funds as determined by the prior veaCs Comprehensive Annual Financial Report. City of Brooklyn Center 08/14/06 Page 227 7 SECTION II GENERAL POLICIES City Council Code of Policies 4. Where possible, the reporting system will provide monthly information on the total cost of specified services by type of expenditure and, if necessary, by fund. 5. An independent public accounting firm will perform an annual audit and will publicly issue an opinion concerning the City's finances. T G. Risk Management Policies Deleted: Page Break I. The City will maintain a Risk Management Program that will minimize the impact of legal liabilities, natural disasters or other emergencies through the following activities: a. Loss Prevention. Prevent negative occurrences. b. Loss Control. Reduce or mitigate expenses of a negative occurrence. C. Loss Financing. Provide a means to finance losses. d. Loss Information Management. Collect and analyze relevant data to make prudent loss prevention, loss control and loss financing decisions. 2. The City's Risk Management Program will: a. Analyze all the City's risks. b. Avoid risks whenever possible. C. Reduce risks whenever possible. d. Transfer risks to other entities when possible. e. Of those risks that must be retained, it shall be the City's policy to fund risks which the City can afford and transfer all other risks to insurers. 3. The City will maintain an active Safety Committee comprised of City employees. 4. The City will periodically conduct educational safety and risk avoidance programs, through its Safety Committee and with the participation of its insurers, within its various departments. 5. The Safety Committee will report to the City Manager, at least annually, on the results and costs of the City's Risk Management Program for the preceding year. The City Manager shall report annually to the City Council. H. Operating Budget Policies 1. In accordance with Chapter 7, Section 7.06 of the City Charter, the total sum appropriated in the General Fund annual budget shall be equal to the City of Brooklyn Center 08/14/06 Page 128 8 SECTION II GENERAL POLICIES City Council Code of Policies total estimated General Fund revenue and tote an allocated General Fund Formatted: strikethrough balance. 2. The City will pay for all current expenditures with current revenues. The City will avoid budgetary procedures that balance current expenditures at the expense of meeting future year's revenues, or rolling over short-term debt, or that rely on accumulated fund balances to meet current obligations. 3. The City will annually appropriate a contingency appropriation in the General Fund budget, not to exceed five percent of the total budget, to provide for unanticipated expenditure of a non- recurring nature. 4. The City Manager, when submitting the Proposed Budget to the City Council, shall submit a balanced General Fund budget in which appropriations shall not exceed the total of the estimated General Fund revenue and the anti fund balance 1 Formatted: strikethrough anoroariated by the City Council. Formatted: strikethrough 5. Prior to adopting the General Fund Annual Budget, the City Council shall review the Reserve Polic Forma strikethrough Y- �Formatted: strikethrough 6. In the event that there is a shortfall of revenues in a current year budget, the City Manager may recommend the use of a portion of the General Fund balance not to exceed the amount available after deducting amounts reserved for items not readily convertible to cash or reserved for working capital Formatted: strikethrough shewn an he mest `1 as established by the City GeuRei4. 7. The budget will provide for adequate maintenance of the capital plant and equipment, and for their orderly replacement. 8. The budget will provide for adequate funding of all retirement systems. 9. The City will maintain a budgetary control system to assist in adhering to the budget. 10. The City administration will prepare regular monthly reports comparing actual revenues and expenditures to the budgeted amount. 11. Each year the City will update expenditure projections for its Enterprise Funds for at least the tee ensuing five vears. Projections will Formatted: striketh include estimated operating costs of future capital improvements included in the Capital Budget. City of Brooklyn Center 08/14/06 Page 229 9 SECTION II GENERAL POLICIES City Council Code of Policies 12. The Operating Budget will describe the major goals to be achieved, and the services and programs to be delivered for the level of funding provided. 13. Where possible, the City will integrate performance measurement and productivity indicators with the budget. ,14. Enterprise ,funds shall be _budgeted to have positive net income plus a Deleted: -Page Break sufficient margin to provide for replacement cost of property, plant, and equipment. I. Ethics Policy The City will maintain, and periodically review, a formal written ethics policy for all City employees and elected officials. J. Role of Auditors The City's independent auditors shall be required, in the course of their audit, in the €erm content of their MAnagement Fetter, to report any conditions_ t_h_ at appear Formatted: Strikethrough to be violations of our financial management policy. Deleted: m Deleted: l Reference: City Council Resolution Nos. 2004 -189; 99 -21; 98 -48; City Council Minutes 5/22/95 6/8/92; 2/26/90; 12/22/80 City of Brooklyn Center 08/14/06 Page 230 10 SECTION II GENERAL POLICIES City Council Code of Policies 2.22 Investment Policy 1. Scope This investment policy applies to all of the investment activities of the City, except for the E inpleyee DeF d r`, fisat e Age eey F aM the proceeds of refunding bond Formatted. Strikethrough issues where the investment of such proceeds is specifically governed by the bond escrow agreement. 2. Objective A. Safety Safety of principal is the foremost objective of_the_ investment_ program. FormattedyStrikethrough Investments shall be;� in a manner that eeks to ensures the preservation Formatted Strikethrough of capital in the overall portfolio. Formatted: Strikethrough i nterest fate risk. i Formatted: Strikethrough 1. Credit Risk Credit risk is the risk of loss due to failure of the security issuer or backer. Credit risk may be mitigated by: a. Limiting investments to the safest types of securities; and b. Pre qualifying the financial institution, broker /dealer, intermediaries, and advisors with which an entity will do business; and C. Diversifying the investment portfolio so that potential losses on individual securities will be minimized. 2. Interest Rate Risk Interest rate risk is the risk that the market value of securities in the portfolio will fall due to changes in general interest rate. Interest rate risk may be mitigated by: a. Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and b. By investing operating funds primarily in shorter -term securities. City of Brooklyn Center 08/14/06 Page 231 11 SECTION II GENERAL POLICIES City Council Code of Policies B. Liquidity The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands. Furthermore, since all possible cash demands cannot be anticipated, the portfolio should contain a large component of securities with active secondary or resale markets. C. Yield The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of least importance compared to the safety and liquidity objectives described 4 above. The core of investments is limited to relatively low risk securities in l Deleted:core ofinvestmentsare anticipation of earning a fair return relative to the risk being assumed. Securities shall be held to maturity with the following exceptions: I. Liquidity needs of the portfolio require that the security be sold. 2. A security of declining credit could be sold early to minimize loss of principal. D. Stable Earnings Since investment earnings are included in the budgeted revenues of the City, it is important that these earnings be stable and predictable through at least the next budget cycle. This�s emphasizes the need to purchase securities of various Formatted: strikeNvough maturities so that at least half of the portfolio will remain for two or more years with known interest rates. 3. Standards of Care A. Prudence The standard of prudence to be used by investment officials shall be the prudent person standard described in Minnesota Statutes Chaner 1.1.8A. It -will be applied D and shall in the context of managingpn the overall portfolio. Investment officials acting in Formatted: striketnrougn accordance with this policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and the purchase and sale of securities are carried out in accordance with the terms of the policy. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the City of Brooklyn Center 08/14/06 Page 232 12 SECTION II GENERAL POLICIES City Council Code of Policies management of ;gin the City's affairs, not for speculation, but for {F ormatted: Strikethrough investment, considering the probable safety of their capital as well as the probable income to be derived. B, Ethics and Conflicts of Interest Officials involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial /investment positions that could be related to the performance of the investment portfolio. Officials shall refrain from undertaking personal investment transactions with the same individual with whom business in conducted on behalf of the City. C. Delegation of Authority Authority to manage the investment program is derived from Minnesota State Statutes, Chapter I I 8 and Brooklyn Center City Charter Chapter 6, Section 6.04 and is ranted to the City Manager, City Treasurer, and Assistant j Formatted: Strikethrough g Y g Y ErE}r�ea�x� Finance Director. Responsibility for the operation of the investment program may be delegated by the City Manager to the City Treasurer, who shall carry out the program consistent with this policy. No person may engage in any investment transaction except as provided under the terms of this policy. The City Treasurer shall be responsible to the City Manager for all transactions undertaken and shall establish a system of controls to regulate the execution of all investment transactions. D. Training To ensure the competence of its investment officials, the City shall provide the opportunity for the officials to attend such investment training programs as are available and suitable. 4. Safekeeping and Custody A. Authorized Financial Dealers and Institutions A resolution shall be submitted to the City Council at least annually to designate depositories of City funds. This shall include institutions and dealersibrokers where accounts are maintained. for banking services, purchase and sale of investment securities, and the custody of securities. The City Treasurer shall provide to each broker or institution a written statement of investment restrictions which shall include a provision that all future investments are to be made in accordance with Minnesota Statutes governing the City of Brooklyn Center 08/14/06 Page 233 13 SECTION II GENERAL POLICIES City Council Code of Policies investment of public funds, prior to completing an initial transaction, and annually thereafter. An annual review of the depositories shall be conducted by the City Treasurer. Deleted: -Page Break 11 Requests for Proposals for banking services and custodian for investment securities shall be conducted on a periodic basis as defined in the Policy and Procedure on Requests for Proposals for Financial Professional Services. B. Internal Controls The City Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft, or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and the valuation of costs and benefits requires estimates and judgments by management. Internal controls shall include the following: 1. Control of Collusion. Collusion is a situation where two or more employees are working in conjunction to defraud their employer. 2. Custodial safekeepine. Securities purchased from any bank or dealer shall be placed with an independent third party for custodial safekeeping or held in an account with the Federal Reserve Bank of Minneapolis. 3. Avoidance of physical delivery securities. Book entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physical delivered securities. 4. Clear delegation of authoritv to subordinate staff members. Officials must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure. 5. Written confirmation of telephone transactions for investments and wire transfers. Due to the potential for errors and improprieties arising from telephone transactions, all transactions should be supported by written communications and approved by the appropriate official. Written communications may be via fax on letterhead. Institutions and brokers /dealers shall be provided with a list of authorized signers. 6. Development of a wire transfer agreement with institutions and brokers /dealers. This agreement should outline the various controls, security provisions, and delineate responsibilities of each party making and receiving wire transfers. City of Brooklyn Center 08/14/06 Page 234 14 SECTION II GENERAL POLICIES City Council Code of Policies 7. Independent Audit. The City's independent auditors shall conduct a thorough review of the City's investment portfolio and transactions as part of their engagement. C. Delivery Verses Payment All trades where applicable will be executed by delivery verses payment (DVP). This ensures that securities are deposited in the eligible financial institution prior to the release of funds. Securities will be held by a third party custodian. 5. Suitable and Authorized Investments A. Investment Types Consistent with Minnesota Statutes Chapter 118A, the following investments will be permitted by this policy: 1. Securities that are the direct obligations or are guaranteed or insured issues of the United States, its agencies, its instrumentalities, or organizations created by an act of Congress; including governmental bills, notes, bonds, and other securities. 2. Commercial paper issued by U.S. corporations or their Canadian subsidiaries that is rated in the highest quality by at least two nationally recognized rating agencies and matures in 270 days or less. 3. Time deposits that are fully insured by the Federal Deposit Insurance Corporation or bankers acceptances of U.S. banks. 4. Repurchase agreements and reverse repurchase agreements may be entered into with financial institutions identified by Minnesota Statutes Chapter I I8A. 5. Securities lending agreements may be entered into with financial institutions identified by Minnesota Statutes Chapter 118A. 6. Minnesota joint powers investment trusts may be entered into with trusts identified by Minnesota Statutes Chapter 118A. 7. Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of short term securities permitted by Minnesota Statutes Chapter 118A. 8. Bonds of the City of Brooklyn Center issued in prior years, may be redeemed at current market price, which may include a premium, prior to maturity using surplus funds of the debt service fund set up for that issue. City of Brooklyn Center 08/14/06 Page 235 i 15 SECTION II GENERAL POLICIES City Council Code of Policies Such repurchased bonds shall be canceled and removed form the obligation of the fund. B. Securities Not Purchased Derivative securities, which obtain their value by the calculation of some portion of the value of another security, shall not be purchased. JAe Formatted: strikethrougn Ft ��en if ins b F ederal Ageney, pull t b p :r e d -ova Securities, which represent the principal or interest payments stripped off from an original issue security, shall not be purchased. C. Collateral ization To the extent that deposits in bank accounts, certificates of deposit, and repurchase agreements exceed the available federal deposit insurance, collateral shall be furnished by the financial institution in accordance with Minnesota Statutes Chapter 118A. D. Maximum Maturities When purchasing investments, the Treasurer will attempt to match the maturity to future cash flow requirements. The City will not invest in securities maturing more than," five vears from the date of purchase. No more than ten percent of Formatted: strikethrough the City's portfolio at any time shall be invested in securities with maturities of more than five three years. i Formatted: strikethrough 6. Reporting A. The City Treasurer shall prepare a monthly investment report to the City Manager which shall include a succinct management summary; a list of significant transactions such as purchases, sales, and maturities of investments; a list of investments by type, a list of investments by maturity, a calculation of average yield on the portfolio, and a statement of interest earned. This report will be prepared in a manner which will allow the City Manager to ascertain whether investment activities during the month have conformed to the investment policy. B. A statement of the market value of the portfolio shall be issued at least annually. This will review the investment portfolio in terms of value and subsequent price volatility. Reference: City Council Resolution Nos. 97 -60; 90 -105 City of Brooklyn Center 08/14/06 Page 236 16 SECTION II GENERAL POLICIES City Council Code of Policies SCHEDULE FOR PROFESSIONAL SERVICES POLICIES fessional Services Procedure on Requests ests for Proposals for Financial Pro 2.80 Policy and Proce q P Need for Policy Y The City needs a policy and procedure to provide for the orderly conduct of requesting proposals for professional services for handling financial affairs, to ensure that all services will be periodically reviewed, and that the proper balance will be maintained between cost and quality of services. 2. Policy li A. All professional services aereements in the area of City finance will ,be y Formatted: Strikethrough periodically be subject to a Ja out e request for proposals (RFPs) process i Formatted Strkethrough according to an established schedule. Formatted: Strikethrough B. Service levels will be monitored by the City Council and Staff and if unsatisfactory service is received, that contract, wl may be re- advertised prior to 1 Formatted: Strikethrough l the year set in the schedule. C. Quality of service will be the primary factor in awarding a contract for professional service, but cost will also be a determinant. 3. Procedure A. A schedule shall be established for the conduct of RFPs. The schedule should be adhered to unless there is a performance problem or other justification for an earlier RFP. Going to the market too frequently with RFPs expends staff time Deleted: Suss requires extensive orientation of new professionals, and discourages quality firms from submitting proposals at their most attractive price sir a if they, ill expect to Formatted: Strikethrough et* have the contract for only a short time. Formatted: Strikethrough Formatted: Strikethrough B. Specifications tailored to the professional service to be advertised will be prepared by staff, reviewed by the Financial Commission,_ and_ approved_by the (Deleted S City Council. C. A review committee made up of the City Manager and Finance Director shall review proposals for Banking Services, Insurance Agent, Risk Management Consultant, and Custodian for Investment Securities. Proposals for Auditor and Financial Advisor shall be initially screened by Staff,_ and then _reviewed by _a Deleted: S committee of City Council Members and Financial Commission Members appointed by the Mayor in consultation with the Chair of the Financial Commission, with the approval of the City Council, which committee shall also include the City Manager and Finance Director. City of Brooklyn Center 08/14/06 Page 262 17 �I SECTION II GENERAL POLICIES City Council Code of Policies D. The specifications will emphasize the abilities, qualifications, and experience of the applicant firms to provide high quality service to the City. Price will be considered after one or more applicants have been identified as providing the desired quality of service. When appropriate, the specification shall require prices to be submitted in a separate, sealed envelope to be opened after applicants have been ranked according to quality. E. The City Manager shall make a recommendation to the City Council of a provider to be appointed to a multi -year engagement. It shall be written in the engagement L that the appointment may be terminated earlier. i Deleted: 1-111 Reference: City Council Resolution Nos. 2000 -120; 99 -20; City Council Minutes 5/28/96 Formatted: Double striketnrougn W AN i Formatted Table Financial Banking Insurance Risk Custodian for Auditor Advisor for Services Aaent Management Investment Bond Sales Consultant Securities c'3 1`31" 6 6 years 6 Years 6 Years 6 years 6-years years A t1 tFR 2004 2002 2003 2003 I 1998 1 2002 2 y I I I I RFP I. I I I RFP I 1 RFP I I I Formatted Table y 1 RFP I I RFP I I C�M RFP I q 2 T x I RFP I I I I I 0 I I RFP I I I RFP I I ..,.,a'.2 RFP Awarded to Deloite Touche who subsecuentiv withdrew after the FY 2001 audit. Balance of enoaaement awarded to HLB Tautoes Redoath for FY 2002 FY 2006. Scheduled RFP in former calendar Recommended New Schedule to arranee RFP's for one oer RFP Year City of Brooklyn Brookl Y n Center P 263 08/14/06 18 MEMORANDUM COUNCIL WORK SESSION DATE: October 6, 2006 TO: Brooklyn Center City Council FROM: Curt Boganey, City?"er SUBJECT: November 1 l th City Council Retreat COUNCIL ACTION REQUIRED The Council should provide direction to the City Manger regarding choice of facilitator for the upcoming Council retreat on November 11, 2006 at the Earle Brown Heritage Center. BACKGROUND Several months ago the City Council decided to set November 11` as date for a goal setting retreat. At the last Council work session further delineation of Council expectations was given. Based on feed back from colleagues, contact with the Government Training Service and the Kevin Frazell with the League of regarding Minnesota Cities, ies several potential facilitators were conta cted proposal submission. Attached is a brief RFP e- mailed to these consultants following our last work session. Enclosed for your review are responses from facilitators, Barbara K. Strandell, Barbara S. Arney, Karen Ray Associates and Donald Salverda. The costs of these services vary as do the approaches outlined: Base Fee Strandell $2,000 plus expenses estimated at $1,400 Amey $2,500 plus mileage at .445 /mile plus 480 for summary report Ray $2,400 City absorbs all other costs Salverda $2,000 plus .45 /mile base cost includes post retreat report Of the four firms above, I have only had first hand experience with Salverda. I am completing reference check for each the firms and will be able to provide that critical insight to you at the meeting COUNCIL POLICY ISSUES Should the City Council hold a goal setting retreat to help carry out its' policy making and management oversight responsibilities? GACity Manager\Retreat10 .09.06.MEM.FRM.doc Brooklyn Center Goal Setting Retreat Council for the City of Brooklyn Center has set Saturday November 11 cn The City Co ty Y Y 2006 for a goal setting retreat. Time: 9:00 a.m. to 3:00 p.m. with lunch and breaks as needed Council Participants: City Council Members and Council Members —Elect for a total of 6-8. r and s erha one additional staff member Staff Participants: City Manage perhaps p Purpose of the retreat: Review accomplishments related to 2006 Council Goals 1. Create a new Brooklyn Center "Downtown" blue print 2. Continue funding of community service 3. Sustain Code Enforcement, Crime Prevention, and Traffic Enforcement efforts 4. Continue the Street reconstruction program Establish new g oals for 2007 that the City Council and staff can use a way to measure success. It is not anticipated that that department directors will be directly involved in the retreat, the Council has indicated a willingness to include prepared staff comments, recommendations and background as input into the dialogue. With the expected change over on the City Council there is some concern expressed by look beyond the next practical to set g oals that y rs that it may not be g Council members y p calendar year. In your proposal please include a list of recent governmental clients that you have performed similar service for. Thank you. Please submit your proposal by Tuesday, October 3, 2006. The Council is expected to select a firm on October 9 2006. Please call me with further q uestions at 763 -569 -3303 Curt Boganey, City Manager Proposal by Barbara K. Strandell What Works Inc. CITY OF BROOKLYN CENTER Strategic Goal Setting Retreat for City Council l tt Pro ora o t Barbara K Strandell P I I What Works Inc. 652.298.9898 APPROACH: At the goal- setting retreat on November 11, 2006 we will develop a vision, goals (2 5 Years), short -term p riorities and a method for managing and measuring progress. We will use a process that identifies keys to sustaining success in a climate of scarce resources. the retreat the staff, with guidance Using he vision, goals and priorities developed in during g g from me will develop a work plan that will be used as a management- reporting tool. It will contain the programs and /or initiatives, assignment of responsibility, deadlines for completion and status. This is often called a Management Action Plan or MAP. This proposal contains an approach that was successfully used with the West Hennepin Affordable Housing Land T rust WHALT and the St. Paul Public Library. I have also use a similar process with the city councils of Inver Grove Heights, Lino Lakes, Hugo and Maplewood. d. Additional) y, I have used a similar process with MELSA (Regional Library System), Carver County Board and The Minnesota Nurses Association. It is a participatory process that will allow the Council to focus on the vision, goals and direction and not waste time on the minutia of operations. I All participants will be asked to respond to a pre meeting survey. Information from that effort will used in the meeting in a manner that will enable the Council to easily discuss substance and not process. Since the city council elections will occur just four days before the scheduled retreat, it will be necessary to survey any new council members immediately after the election. This assumes that the new members will be included in the goal setting process. 1 Proposal by Barbara K. Strandell What Works Inc. Also, if the council wishes to include department heads in the goal setting process, I will survey them as well and consolidate their responses separately from those of the council. STEPS: 1. Meet with City Manager to develop the pre meeting survey and determine scope and logistics of retreat. (2 hours) 2. Distribute, via email, pre meeting survey to all participants. (1 hour) 3. Collect input, survey responses, compile and create a preliminary agenda for the retreat. Review with City Manager. (3 hours) 4. Prepare for and facilitate the retreat. ($2,500 fixed fee*) Includes preparation of materials for the retreat, facilitation and retreat report. 5. Develop wort, plan format with City Manager based on retreat results. (2 hours) COSTS: 1. Meeting with City Manager: 2 hours 2. Develop and distribute pre meeting survey: 1 hour 3. Compile input from survey responses draft agenda: 3 hours. 4. Facilitate all- day retreat: Fixed fee 5. Develop work plan format with City Manager: 2 hours Total Estimated Hours 8 Hourly Rate $175.00 Costs 8 hours X $175.00 hr. Hourly Cos $1,400.00 Full-Day Facilitation Fee* $2,500.00 Includes P p re aration of materials for the retreat, facilitation and retreat report. TOTAL ESTIMATED COSTS $3,900 2 BIO Barbara K. Strandell What Works, Inc. 651.298.9898 Barbara Strandell helps organizations solve problems and identify future opportunities. Integral to these engagements is teaching managers how to manage, employees how to overcome workplace issues, and leaders how to think and act strategically. Combining her skill in organizational development and extensive business experience, Strandell has become a popular value -added facilitator for transforming organizations large and small, public and private. She taught at the Public Management Academy, Inver Hills Community College and delivers seminars and speeches on workplace issues including: work -life balance, leadership, performance management, communication, team building, conflict, change, and civility at work. Barbara has worked with Respond2, Inc. and Hennepin County Medical Society in implementing Abuse -Free Workplace Initiatives in the Healthcare Industry. Her 15 -year corporate career includes front -line management and executive positions in operations, marketing, sales, product management, small business development and strategy. She worked for The Service Bureau Company in Philadelphia and Commercial Credit Company in Baltimore and Control Data Corporation of Minneapolis. Ms. Strandell's published works include articles in the OD Practitioner, Executive Excellence Magazine, HMS Bulletin, The Tijiquan Journal and Accent. Strandell has been a featured guest and commentator on Public Radio's nationally syndicated Sound Money program and MPR's Mid Morning Show. In 1997 she was featured in a 90- minute documentary, called "Beyond Downsizing," produced by WTTW Public Television in Chicago. Ms. Strandell has contributed to the Business Solutions column in the Sunday edition of the St. Paul Pioneer Press. Her clients have included: Minnesota Library Association; St. Thomas University, Burlington Northern, MN Nurses Association, Carver County, Riverwood International, Drake Beam Morin, Cargill, St. Paul Libraries, IBM, MN Department of Corrections, City of Maplewood, 3M, AFSCME, Blue Cross Animal Hospital, Hopkins Police Department, Chubb, City of Plymouth, City of Inver Grove Heights, ALF Ambulance Service, City of Apple Valley, Scott County, Minnesota Association of High School Principals. Ms. Strandell holds an MBA in Management from the University of South Dakota and a BA in Psychology from South Dakota State University. Y GOVERNMENT TRAINING SERVICES October 2, 2006 Curt Boganey www.mngts.org Assistant City Manager, Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 Dear Curt: Government Training Services (GTS) is pleased to present a proposal to facilitate a Goal Setting Session for the Council of the City of Brooklyn Center. This session will be held on November 11, 2006, 9:00 a.m. to 3:00 p.m. at a location to be determined by you. The facilitator for this session would be Barbara Arney, consultant under contract to GTS. The purpose of the retreat would be to review accomplishments related to the 2006 Council Goals and to establish new goals for 2007 that the Council and staff can use as a way to measure success. The final agenda for the session would be determined in part by the pre work done by Barbara. This work would include confidential telephone interviews with Council Members and key staff to identify strengths, issues and concerns. The fee for the session would be $2,500 plus mileage at $.445 /mile. This fee would cover the costs associated with: Information gathering, including interviews and one pre- meeting meeting with you and /or the City Manager Design and preparation of the session and materials Facilitation of the one -day session If you decide that you want Barbara to prepare a Summary Report of outcomes from the session, there would be an additional cost of $480. Once you have reviewed this proposal, please contact me with any questions or comments. during this next week so she will be difficult to 'n du state doing training g Barbara will be out of the g g reach. We look forward to the opportunity to work with the City of Brooklyn Center again. Sincerely, Mary Mary Sabatke Program Planner YOUR PROVEN PARTNER FOR CONFERENCES AND EDUCATION 651.222.7409 office Suite 150, 2233 University Avenue W., St. Paul, Minnesota 55114 651.223.5307 fax Barbara S. Arney, M.A. Training Speaking Areas of Expertise Change Management Leadership/ Board Development Myers- Briggs Resiliency Indicator Enneagram Assessment Train the Trainer Strategic Planning Effective Presentations Team Building Customer Service Goal Setting Organization Development Conflict Resolution Group Facilitation Clients Government Corporate National League of Cities Alcoa Aluminum Association of Minnesota Counties Creative Breakthroughs, Inc. Minnesota Counties Information Systems Gardner Design IT Symposium The Pillsbury Company Counties and Cities Norwest Banks Anoka, Burnsville, Cottage Grove, U.S. Communications Dakota, Eagan, Edina, Medtronic, Inc. Eden Prairie, Lake City, Mankato, Carlson Corporation Minneapolis, Minnetonka, Cyber Optics, Inc. Mounds View, New Hope, IDS Red Wing, Scott, 3M St. Anthony, Waseca Templeton Associates State Government International d States Agency for International nesota Dept. of Transportation ation Unrte g Y Mm p P Minnesota Dept. of Human Services Development, Islamabad, Pakistan Minnesota Dept. of Education Abacus Ltd., Lahore, Pakistan Minnesota Dept. of the Blind Asia Pacific Television Broadcasting, Minnesota Office of Tourism Kuala Lumpur, Malaysia Jamalco Ocho Rios, Jamaica Schools Health Care Minneapolis Public Schools University of Minnesota Hospital Convent of Visitation Fairview Riverside Hospital St. Thomas Academy Group Health, Inc. Clara Barton Open School Health One Roosevelt High School Bio: Barbara S. Arnev. MA MA Applied Behavioral Science, Whitworth College, Spokane, Washington BS Education, Iowa State University, Ames, Iowa 3919 Thomas Ave. South Minneapolis, MN 55410 612- 920 -8619 Barb @MomentumUnlimited.com Barbara Arney is a coach, facilitator and consultant to leaders, teams, and employees as they learn to be resilient and strategic in the midst of "whitewater change Over the past 25 years, she has traveled throughout North America, Pakistan, Jamaica, Thailand and Malaysia facilitating strategic planning, strengthening leadership practices and building alignment in learning organizations. Her work with family businesses, government, non profits, manufacturing, and corporate clients empowers leaders to define and develop competencies, commitments and structures necessary to achieve their visions. She was graduate school faculty and Associate Director at the Leadership Institute, Whitworth College, during the 1970's and adjunct faculty at the University of Minnesota and the College of St. Catherine's in St. Paul, Minnesota in the 1980's. Currently, she is adjunct faculty at Martin University, School for Innovative Leadership where she facilitates a five -week High Performance Leadership program. Her methods for leadership development, change management, and building collaborative relationship weave together the latest brain research, principles of systemic thinking and experiential tools for "people engagement." She is a certified teacher of the Enneagram, a tool to determine leadership strengths and development opportunities and is recognized for her creativity in designing transformative learning experiences for participants. Karen RayAssociates TO: Curt Boganey, City Manager_ DATE: 10 -03 -06 City of Brooklyn Center FROM: Karen Ray Karen Ray Associates RE: City Council Goal Setting Retreat Thank you for sharing information with me about your upcoming City Council retreat. Government Training Service and Karen Ray Associates are pleased to submit this mini- proposal as partners; information about my experience is enclosed. As a training and organization development consultant, I specialize in innovation and problem solving in non -profit and government agencies. Most of my current leadership, is n teambuildin lead planning and inter agency g P work focuses o p g focus o n real- ration. I m known for active, highly participative sessions that collaboration. g time problems and potential solutions. During the last 23 years I've developed a strong reputation for meeting design and facilitation. My current client list includes the half a dozen municipalities in Minnesota, the he Duluth Housing Collaboration. Thomas University g State of Oregon, St. Tho ty and t Your City Council members are engaging newly elected members in a dialogue about the City's strategic direction. Council members want to achieve the following goals during a retreat on Saturday, November 11, 2006: Review accomplishments related to the goals set last year. Visioning, including: Council member priorities for 2006 2008 Brainstorming City Staff input Establish new goals, and benchmarks for success for staff to use. 4541 Victor Path Suite #8 612 377 -2128 Hugo, MN 55038 karenray@visi.com Page Two These goals can be accomplished in a one -day work session with the Council. Together, the City Manager and I will finalize a specific agenda. I will design and facilitate this session; if appropriate, I will collect input from City Council members during the planning process. City staff will complete a complete strategic planning document, and I will review and provide input as needed. This document needs to be created by and meaningful to the City staff because they will be using it as a primary work planning and evaluation tool. Should the City choose, Karen Ray Associates can draft the document; this would be contracted for separately. Most recently I completed strategic planning services for the City of Arden Hills; please call Michelle Wolfe at 651- 634 -5127. I also have recently helped the City of Northfield, although their mayor and several Council members have changed. Please contact their former City Administrator (who also served as Falcon Heights City Administrator) Susan Hoyt at 651- 645 -3849. The City would be responsible Fees for the Council retreat are $2400 a day. ty for all p costs for any meeting participants costs, including facility fees, lodging, meals, and work session materials. Mileage is not charged for any event conducted within the I4944694 ring. If additional services are required, such as Council input or report writing, additional charges may apply. Of course, these ideas are just a starting point. Your input is necessary in order to design and complete a focused, results- oriented work session. I look forward to hearing from you, and thank you for considering these ideas. 4541 victor Path Suite #8 612 377 -2128 Hugo, MN 55038 karenray@visi.com Karen Ray Associates WORKING WITH BOARDS AND BOARD MANAGED AGENCIES Karen Ray Associates has been helping agencies and their Boards grow and strengthen since 1983. While working with Board members or agency staff, the focus is on leadership, collaboration, conflict management, problem- solving approaches and customer relations. Examples of the results of this work in recent months include: Work relationships between staff and Board members were strengthened: During 2005 Karen Ray Associates conducted more than a dozen one day or multi -day workshops specifically on Board staff issues including succession planning, team building, strategic thinking, and problem solving. Long range plans developed for non profit organizations: Karen Ray Associates facilitated planning and problem solving sessions for these Boards that resulted in long range planning or strategic positioning documents. Collaboration enhanced among several organizations in downtown Pittsburgh: These Board- managed agencies had been competing for funding, and now file joint funding applications. Enhanced cooperation between providers of literacy services in school districts, industries and non profit organizations This multi -year project called for collaborative action among 67 Boards and their organizations. Created a network of 28 counties to improve delivery of services to troubled families: Karen Ray Associates facilitated retreats, meetings, and workshops to help County Commissions in rural Minnesota deal with family issues such as abuse and chemical dependency. i Karen Ray Associates WORKING WITH LOCAL GOVERNMENTS Karen Ray Associates has conducted training or consulting with many local governments since 1983. These examples are from the last few years: 2006 League of Cities; New Mayors Conference TOPIC Collaboration in a Municipal Setting 2006 City of Arden Hills TOPIC Strategic Planning 2005 City of Northfield TOPIC Teambuilding, Leadership, Collaboration 2004 Newly Elected Leadership Conference TOPIC Public Administration and Collaboration 2003 County of Anoka TOPIC Teambuilding, Leadership, Collaboration 2002 City of Northfield TOPIC Teambuilding 2001 New Mayors Conference TOPIC Collaboration 2001 City of West St. Paul TOPIC Council/Staff Goal Setting 1995- 1997 City of New Brighton TOPIC Strategic Planning for Public Safety 1993 1995 City of Worthington TOPIC Developing Family Service Collaborations Building A Cultural Diversity Effort RESUME FOR KAREN RAY EDUCATION BA College of St. Catherine, St. Paul Psychology, Sociology Secondary Education Certification Graduated Magna Cum Laude MA Whitworth College, Spokane Applied Behavioral Sciences Emphasis in Organization Development and Organization Leadership WORK HISTORY KAREN RAY ASSOCIATES 1983 Present Principal METROPOLITAN STATE UNIVERSITY Community Faculty 1977-1997 COLLEGE OF ST. CATHERINE 1989-1991 Faculty: Master of Arts in Organizational Leadership MINNESOTA INTERACTION INFLUENCE NETWORK A Collaborative Project for Literacy 1979-1983 Executive Director; Master Trainer LIFELONG LEARNING CENTER 1977-1979 A Northwest Suburbs Cooperative Resource Center Manager; Teacher MINNESOTA DEPARTMENT OF CORRECTIONS 1975-1977 Teacher SKILLS AND EXPERIENCE Non Profit Organization Leadership, including policy setting and agency start -up Non Profit Organization Management, including supervisory and fiscal roles -Group Process and Teambuilding emphasizing conflict management and negotiation Training emphasizing interpersonal effectiveness and communications Donald Salverda Associates Roseville Professional Center Suite 511 2233 N. Hamline Avenue Roseville, MN 55113 (651) 484 -1335 October 3, 2006 Mr. Curt Boganey City Manager City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 Dear Curt: First off Congratulations on being named City Manager. You bring many years of public sector executive level experience along with a high level of integrity and commitment to the job. I'm confident you will do well in your new role. Thank you also for the call and request for a proposal for a City Council Goal Setting Retreat. It's important for every leadership team to periodically assess progress, re- establish direction and enhance team spirit, particularly when there are new members on the leadership team. Over the years, I have led a number of retreats, seminars, and workshops for A variety of i organizations in the public and private sectors, always receiving favorable feedback, so I am comfortable with the assignment should you choose to use my services. Cities I have provided services to include: Mounds View, Delano, Forest Lake, Stillwater, St. Cloud, and Ramsey. Enclosed is a proposal for a "Goal Setting Retreat" using the six hour format that you desire. I trust the content and format are in line with your thinking; if not, we can alter accordingly. Enclosed also is biographic and support information from previous engagements. Should you choose to use my services, I pledge you my best efforts to plan and lead a retreat that meets your objectives, is educational, and enjoyable. to hearing from for our interest. I look forward g and hopefully working with, you and Thank you y the council. Sincerely yours, Don Salverda Consultant/Facilitator Encl. Donald Salverda Associates Roseville Professional Center Suite 511 2233 N. Hamline Avenue Roseville, MN 55113 (651) 484 -1335 A PROPOSAL FOR A GOAL SETTING RETREAT FOR THE BROOKLYN CENTER CITY COUNCIL Proposal To Mr. Curt Boganey City Manager Proposed By Don Salverda Cons ultant/FaciIitator WHY HAVE A GOAL SETTING RETREAT? 1) ORGANIZATIONS NEED TO PERIODICALLY ASSESS PROGRESS, RE- ESTABLISH DIRECTION, AND ENHANCE TEAM SPIRIT 2) HOW WELL THE CITY'S ELECTED OFFICIALS, CITY MANAGER, AND DEPARTMENT HEADS COMMUNICATE AND WORK TOGETHER TOWARD COMMON GOALS IS KEY TO THE CITY'S EFFECTIVENESS 3) IT'S EASIER TO DEVELOP CONSENSUS ON ISSUES, OPPORTUNITIES, AND GOALS IN AN OFF -SITE RELAXED ENVIRONMENT RATHER THAN THE FORMALITY OF THE NORMAL WORK ENVIRONMENT 4) A RETREAT IS AN EXCELLENT WAY TO INTEGRATE NEW MEMBERS ONTO THE CITY'S LEADERSHIP TEAM CITY OF BROOKLYN CENTER 2006 CITY COUNCIL GOAL SETTING RETREAT I PRIMARY OBJECTIVES 1) To review proaress related to the council's 2006 goals 2) To enhance communication and develop renewed team spirit among the participants 3) To discuss chances that are likely to impact the city 4) To develop consensus on issues and opportunities facing the city (1 -3 year perspective) 5) To develop an updated Goals Proaram for the city (1 -3 year perspective) 6) To discuss oreliminary strategies to achieve the highest priority goals 7) To be an educational and eniovable day 8) Other 11 FORMAT OF THE RETREAT The sessions will include group participation and discussion, individual activities, and comments of the facilitator. Seatino Arrangements: Two tables (preferably round) seating five participants per table Audio visual Needs: Three large, standing, easels and writing pads (None required) (facilitator will provide) III TIMING AND LOCATION Timin%, November 11 9:00 AM to 3:00 PM Location: To be determined IV PARTICIPANT MATERIALS Each participant will receive a comprehensive outline, related supplemental materials and an Executive Summary of the Retreat V THE CONSULTANT /FACILITATOR Over twenty -five years experience in the professional development field Skilled seminar, workshop, and retreat leader Leadership experience in the private, public, and volunteer sectors Student of leadership VI INVESTMENT Pre- Retreat Planning and Preparation 500 On -Site Retreat $1,000 Post- Retreat Report Writing 500 Plus any additional expenses incurred with the engagement such as duplicating of handout materials, easel pads, travel expenses Q $.45 /mile, etc. CITY OF BROOKLYN CENTER 2006 CITY COUNCIL GOAL SETTING RETREAT Tentative Aqenda 8:15 9:00 COFFEE AND DONUTS INFORMAL VISITING 9:00 9:05 OPENING REMARKS MAYOR AND CITY MANAGER 9:05 —10:15 SESSION 1: "WORKING AS A TEAM THE CHALLENGE OF PUBLIC SECTOR LEADERSHIP" Focus Objectives and expectations for the retreat Sharing points of view Review of progress Thoughts on leadership and importance of goal setting 10:15 —10:30 BREAK 10:15 —10:30 SESSION 2: "WORKING AS A TEAM PROVIDING DIRECTION" PART I Focus: The city's mission and values Changes that are likely to impact the city What's working well, not working well, etc. Issues and opportunities facing the city 12:00 1:00 LUNCH 1:00 2:15 SESSION 3: "WORKING AS A TEAM PROVIDING DIRECTION" PART II Focus: Converting issues and opportunities into goals Preliminary thinking on strategies to achieve the highest priority goals 2:15 2:30 BREAK 2:30 3:00 SESSION 4: "WORKING AS A TEAM THE IMPORTANCE OF FOLLOW THROUGH SUMMARY OF THE DAY" Focus: The next steps in formalizing the goals and developing and implementing action plans 0 Council's expectations of staff Review of the retreat DON SALVERDA Don Salverda is President of DONALD SALVERDA ASSOCIATES, a consulting firm that provides services and materials to business and industry, government, and professional organizations, in the areas of team building, strategic planning, leadership, management development, and customer service. He has designed and led team building, strategic planning, leadership, and management retreats and workshops for over fifteen years for a variety of organizations in both the public and private sectors. As a retreat and workshop leader his positive and enthusiastic approach convey his own sense of purpose and belief. He further believes that: 1) People are very busy with limited time; therefore, the process should be practical and highly productive 2) People learn from each other; therefore, the process should be highly participative 3) The process should be educational, enjoyable, and non threatening Don is highly respected for his leadership ability, his results oriented style, and his commitment of service to people. Combining an academic background in engineering with over thirty years of practical experience in the private, public, and volunteer sectors in a variety of roles and settings, Don has gained a unique and broad perspective of the challenges facing organizations and individuals. In addition to serving on a number of boards and commissions, he has served as President of the Sales and Marketing Executives of Minneapolis, the Roseville Falcon Heights Chamber of Commerce, the Association of Minnesota Counties, the Ramsey County League of Local Governments, the North Suburban Community Foundation and the North Suburban Gavel Association. He has also served as President of the Roseville Jaycees and as District Chair of the Indianhead Council of the Boy Scouts of America. He has been elected to public office and served eighteen years on the Ramsey County Board of Commissioners. Don is an active member of the Rotary Club of Roseville and is an avid downhill skier and biker. Donald Salverda Associates 2233 N. Hamline Avenue Roseville, Minnesota 55113 651- 484 -1335 MEMORANDUM COUNCIL WORK SESSION DATE: October 6, 2006 TO: Brooklyn Center City Council FROM: Curt Boganey, City 40 y SUBJECT: City Council Financial Oversight Approval of Expenditures COUNCIL ACTION REQUIRED The staff needs Council direction regarding council expectations for financial reporting. BACKGROUND Attached is an e -mail form Council member Niesen regarding her concerns that the Council does not review and approve claims as required by State Law. The City Attorney in response to Council members Niesen's statement is that Charter Cities such as Brooklyn Center are not bound by the State Statute requiring the claims be audited and allowed by the council." COUNCIL POLICY ISSUES In accordance with the City Charter Chapter 7.12 Accounts and Reports is there additional financial reporting required by the City Council? GACity Manager\Financialresponsbilty .MEM.FRM.doc Message Page 1 of 3 Curt Boganey From: LeFevere, Charlie L. [clefevere @Kennedy Graven.com] Sent: Monday, October 02, 2006 5:05 PM To: Curt Boganey Subject: RE: Planned discussion items from 9 -11 -06 meeting Curt, I don't know where this comes from. Minnesota Statutes, Section 412.271 requires claims (with some exceptions) to be "audited and allowed by the council However, that applies only to statutory cities. As a charter city, Brooklyn Center's procedures are governed by the charter. Therefore the question is whether a procedure is consistent with the charter and ordinances adopted pursuant to authority of the charter. City council members hold city funds in trust for the public and I would say that they act in a fiduciary capacity in that regard. However, unties there is a requirement of law (such as a statutory or charter provision), having fiduciary responsibilities does not necessarily require that the fiduciary see and approve of all expenditures. Charlie Charles L. LeFevere Kennedy and Graven, Chartered 470 U. S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 Telephone: (612) 337 -9215 Fax: (612) 337 -9310 clefevere@ kenned.y_ -g raven._com Original Message---- From: Curt Boganey [ma ilto: cboganey@ci. brooklyn -center. mn. us] Sent: Thursday, September 21, 2006 11:32 AM To: LeFevere, Charlie L. Subject: FW: Planned discussion items from 9 -11 -06 meeting Charlie an item has been placed on the work session in response to this e-mail. Could you prepare a response to the statement that the State of Minnesota requires City Councils to exercise full fiduciary responsibility by seeing /approving all city expenditures" Thank you very much. From: Diane Niesen Sent: Sunday, September 17, 2006 10:02 AM To: Curt Boganey Cc: state.auditor @state.mn.us; Comm issioner .Opat @co. hen nepin.mn.us; sen.linda.scheid @senate.mn; rep.debra.hilstrom @house.mn Subject: RE: Planned discussion items from 9 -11 -06 meeting To: Interim City Manager Boganey, When I recently learned that the State of Minnesota requires City Councils to exercise full fiduciary responsibility by seeing /approving all city expenditures, I was deeply troubled and concerned that I have not been given information by Brooklyn Center staff to fulfill my duties under the law. I have been in office since Jan 1, 2003, and have never seen a City claims /check register. I have no awareness of who is writing 10/3/2006 Message Page 2 of 3 City checks, for what amounts, with what authority, for what purposes, and with what checks and balance oversight to ensure Brooklyn Center is complying with Minnesota's Public Purpose Purchase Doctrine. I /we also do not receive investment fund information, City cash flow statements, or TIF Reports; we receive Enterprise Liquor Store, Enterprise Earle Brown Farm balance sheets and income statements but not Enterprise Golf Course (Centerbrook) statements. Brooklyn Center residents and businesses are dependent upon sound management of public funds, and the interconnection of federal, state and county funds. Unless the City Council receives all the financial information needed to exercise sound judgment, our hands are tied and we are operating only on a system of trust with current city employees, which is not allowed in the public sector. A financial system of checks and balances exists as a protective measure to both the public, and public employees. In order to better understand this financial picture, I will make myself available Monday, Sep 18 to review the claims /check register in whatever form it is in, paper or electronic, as Tuesday I am unavailable and Dan (Finance Director) is out Wed. -Fri. I then expect Council will receive in each packet (twice per month) a list showing check numbers, dates, amounts, purpose and fund(s) charged, to be presented for our review and approval. For the next Council meeting, please add to the Agenda an item for Council discussion: Financial Reports. As it is the law that Council see all expenditures, and that City Councils ensure that spending is appropriate to the public purpose, the discussion should happen as soon as possible so Council begins receiving the reports we need to fulfill our responsibilities under the law, and to the public who elected us. You indicated in your interview for the job of Brooklyn Center City Manager yesterday that staff can provide reports of the Council's choosing. This item must therefore appear on a Council Agenda. You also indicated that you had provided this information to the Brooklyn Park City Council when you were employed as their City Manager, so you are familiar with the requirements and format. I recently learned that the Brooklyn Park Council had at one time not been receiving the purpose for which expenditures were being made, and when they did, community conversation ultimately led to an Investigation by the Office of the State Auditor. Even though during your interview yesterday with the 5 members of the Brooklyn Center City Council for the position of City Manager, you stated that opinions regarding that OSA Investigation in Brooklyn Park from: 1) the League of MN Cities, 2) the City of Brooklyn Park's legal advisor Kennedy Graven (Jim Thompson), and 3) the then City of Brooklyn Park's EDA staff supported your statement that there was 99% disagreement with the OSA's findings, I disagreed with you after reading through the list of what I feel were numerous improper public expenditures. My job is to ensure only proper public expenditures be made using City of Brooklyn Center public funds and unless I am given full information, I cannot assess and monitor the situation. I am sure you can appreciate my position and role. If there is any reason why you would decline to place this Agenda item on Council Agenda for Sep 25, 2006, please indicate. Also, if you know of any reason why Council should not receive the information outlined in this email, please reply and help me understand the reason(s) for your position. If this is a question that should be directed to our City Attorney Charlie LeFevere, Kennedy Graven, please so direct. Time if of the essence as we have not approved the final budget for 2007, which includes staffs regular request for $250,000 for our EDA fund. I look forward to your response. Diane Niesen Brooklyn Center City Council From: Curt Boganey Sent: Thu 09/14/06 4:25 PM To: Diane Niesen Subject: RE: Planned discussion items from 9 -11 -06 meeting Sorry, it seems that Monday is not a good day. I will be in and out of the office throughout the day. So if Tuesday does not work, Friday after 2p.m or the following week seems to be best. Thank you. From: Diane Niesen 10/3/2006 Northwest Su6ur6s Ca6Ce Communications Commission 6900 Winnetka Avenue North Brooklyn Park, MN 55428 (763) 536 -8355 September 29, 2006 CURT BOGANEY CITY OF BROOKLYN CENTER 6301 SHINGLE CREEK PKWY BROOKLYN CENTER, MN 55430 RE: Resolution to League of Minnesota Cities Cable Legislation Dear Curt: We have attached a draft Resolution for you to place on the agenda of your City Council for adoption as soon as possible. Over the past several years, the League of Minnesota Cities has worked on various legislative matters where new cable television service providers have sought to change the regulatory scheme in Minnesota. In particular, legislation has been proposed to either reduce or eliminate the requirement that cable operators franchised by a City, or a joint powers entity, must serve all areas of a community. The Northwest Suburbs Cable Communications Commission (NWSCCC) has opposed legislation during the past several legislative sessions. Also, it has been concerned about efforts by the League of Minnesota Cities to compromise the rights of cities under current legislative authority that ensures that all persons and areas of a community have equal opportunity to benefit from cable services. The League of Minnesota Cities is currently in the process of developing policies for the 2007 legislative session. It is our belief that this legislative session may be critical from the standpoint of cable legislation. During the past year, the telecom industry has heavily lobbied various state legislatures throughout the country and also Congress to change laws and to eliminate "build -out" requirements. The League of Minnesota Cities, the National League of Cities, and other major municipal organizations have opposed federal legislation that would allow new entrants to decide the areas where they provide cable or video type services. It is our belief that the League of Minnesota Cities should also oppose proposed Minnesota legislation that would change existing build -out requirements in the current Minnesota law. In order to ensure that your City, and all of the cities comprising the NWSCCC, communicate their concerns regarding potential legislation in Minnesota that would alter current build -out requirements, it is most important to have the attached Resolution adopted and furnished to the League of Minnesota Cities at the earliest possible time. Brooklyn Center Brooklyn Park Crystal Golden Valley Maple Grove New Hope 9 Osseo Plymouth Robbinsdale Page 2 At the national level, changes included in a Bill pending in the U.S. Senate have been delayed and most experts believe the proposed legislation will not pass this year. Major telecom industry representatives have indicated that they will not be back to Congress in 2007 if it does not pass this year and also there have been indications that because they have been more successful at the state level their goal will be to heavily lobby state legislators. We want to be prepared to effectively oppose legislation that is proposed during the 2007 Minnesota Legislative session that changes current provisions in Chapter 238. We also want to have the League of Minnesota Cities oppose legislation that would change the build -out or area served requirements. The longstanding policy of Minnesota, included in Chapter 238, has been to encourage cities to jointly franchise cable services, and to make sure that the "have and have nots" will be able to equally benefit by having cable services available to all areas of cities. Further, we firmly believe that there is ample flexibility under Minnesota law and a Master Ordinance developed by the Northwest Suburbs Cable Communications Commission which allow reasonableness with regard to franchise requirements for build -out to all areas of a community. This is also true under the existing federal Cable Act. It includes the provision that local governments may allow a "reasonable" time for completion of construction. Inasmuch as existing law allows this flexibility to encourage competition by additional service providers, there is no reason why Minnesota should change its longstanding policy and the build -out requirements in existing law. Further, we are concerned that if the build -out requirements are reduced or altered, incumbent cable operators would say "me too' and seek to alter existing franchise agreements that require a "level playing field." Please let us know when your City Council has adopted this Resolution. Kindly furnish us with a certified copy of the Resolution. We will coordinate with all of the communities of the NWSCCC and deliver the Resolutions to the League of Minnesota Cities, unless you would prefer to provide direct contact with the League on this matter. If you have any questions with regard to the Resolution, please do not hesitate to give me a call. Very truly yours, Gregory Moore Executive Director Attachment Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION URGING THE LEAGUE OF MINNESOTA CITIES TO RECONSIDER ITS SUPPORT OF PROPOSED MINNESOTA LEGISLATION THAT WOULD REMOVE THE BUILD OUT PROVISIONS IN CHAPTER 238, RELATED TO CABLE SERVICE OF MINNESOTA STATE LAW WHEREAS, the City respectfully requests that the League of Minnesota Cities reconsider its support of proposed Minnesota legislation which would remove the build out provisions of Chapter 238, related to cable service of Minnesota State Law; and WHEREAS, the City pledges to work together with the League of Minnesota Cities and other interest groups to support policies regarding change that it is believed will continue to protect the rights available to the City and other members of the NWSCCC and they are also willing and open to legislative change that may accommodate the needs and interests of others to the extent any such change is not contrary to the City or NWSCCC interests; and WHEREAS, the City will support efforts directed against legislative change to ensure that all persons residing in the City will have unfettered access to all forms of information resources in the broadest range of rights and interests to ensure that those that use public rights of -way and benefit from the use of public rights -of -way are continued to be obligated to provide compensation in the form of franchise fees, public, educational, and governmental access funding, and other support services as well as ongoing community needs requirements notwithstanding technological changes or advancements; and WHEREAS, the City will submit this Resolution to the Executive Director's office of the League of Minnesota Cities, and such other persons as the City and members of the NWSCCC believe are in a position to affect legal changes relating to the matters outlined herein; and October 9. 2006 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof and the following voted against the same: whereupon said resolution was declared duly passed and adopted. CITY o� CRYSTAL 4141 Douglas Drive North Crystal, MN 55422 -1696 Telephone: (763) 531 -1000 Fax: (763) 531 -1188 Website: www.ci.crystal.mn.us September 21, 2006 Mayor Myrna Kragness City of Brooklyn Center 3401 63 Avenue North Brooklyn Center, MN 55429 Dear Mayor Kragness: am pleased to send you the enclosed Crystal Resolution #2006 -87 supporting the Mosaic Youth Center project's goals and and mission as well as its efforts to find a permanent home for the Mosaic youth center. As a stron g supporter orter of the Mosaic project, I am requesting that your city council adopt a similar resolution supporting the Mosaic's efforts. Additionally, I would like the opportunity to speak to your council about the Mosaic when it considers the resolution. Thanks for your consideration of my request; please feel free to call me at 763 -531 2074 with any questions or to schedule time with the city council. Ve truly yours, ae J. Bo rrfan Mayor Encl: Cc: Councilmembers Curt Boganey, City Manager C ITY OF CRYSTAL RESOLUTION No. 2006- 8 7 RESOLUTION SUPPORTING MOSAIC YOUTH CENTER WHEREAS, youth are one of the community assets of Crystal; and WHEREAS, the Crystal City Council values and supports youth; and WHEREAS, youth, centers generally help adolescent youth develop into healthy, productive adults; and WHEREAS, the Crystal City Council supports the creation of a youth center where youth of the community and school district have a safe place to recreate, receive certain academic, health and social services and develop career and social skills; and WHEREAS, the Mosaic Youth Center project was created in 1997 by Robbinsdale School District 281 to create a forum for youth and to provide a safe place for youth to get integrated services within the school district area, including Crystal; and WHEREAS, the Crystal City Council and police department staff is active in Mosaic Youth Center project events, programs and leadership; and WHEREAS, the Friends of the Mosaic Youth Center, Inc. desires to further expand and enhance youth services offered at the Mosaic Youth Center project by the acquisition of a permanent home for the Mosaic Youth Center within the northwest suburbs of Hennepin County. NOW, THEREFORE, BE IT RESOLVED BY the Crystal City Council that it supports the Mosaic Youth Center project's goals and mission and encourages all local governments in the school district and the school district to collaborate and support the efforts of the Friends of the Mosaic Youth Center, Inc. in its acquisition of a permanent home for the Mosaic Youth Center project. BE IT FURTHER RESOLVED THAT a copy of this resolution be provided to the Robbinsdale School District and the cities of Brooklyn Park, Brooklyn Center, Golden Valley, New Hope Plymouth and Robbinsdale. Adopted this 19 day of September, 2006. ReNae J. Bow n, or ATTEST: Je#et Lewis, City Clerk MEMORANDUM COUNCIL WORK SESSION DATE: October 6, 2006 TO: Brooklyn Center City Council FROM: Curt Boganey, C41ager SUBJECT: Citizen Comment Cards COUNCIL ACTION REQUIRED Does the City Council wish to take any further action regarding the feedback received? BACKGROUND At the suggestion of council member Niesen, the City Council directed staff to place a response card in the City Newsletter to residents to solicit public feedback from citizens regarding two questions. What do the citizens like about living in Brooklyn Center and would they like to see the City work on in the next 1 -3 years. This information has been provided to the City Council to inform the Councils judgment for future decision making. The Council may place as much weight on these responses as it deems appropriate recognizing the fact that these responses are not the result of a scientifically based survey. COUNCIL POLICY ISSUES To what extent should this feedback be used to inform the Councils judgment? If it is to be used, how should it be used? GACity Manager \WORKSESSION.MEMI M.doc Citizen Arnent Cards SEP 2 6 t �aF �x n k We loved livin here for 50 ears, but not anymore because the 1. Enforce the codes�we already h 1 property is not kept up, so we are going to put our house up for 2. The yards look worse everyday -mow the lawns and weeds sale. 3. Keep the cars off the street and stop the garage business. 1. "Fire" that snobby man who does not keep snow /ice off BC streets in 1. BC has a lot of churches which attracts a lot of good people. winter insults residents who reports it. 2. BC has a nice look (shopping, library, parks, etc.) 2. Lower taxes are better than no taxes we have lost great businesses as 2 3. Of 20 years living in BC, I have had very wonderful JCPennys, Office Supply, K -Mart, Rainbow. neighbors. 3. BC /Adult activities at the Civic Center usually work day mornings. a BC seniors who still have to "hold down a job" on workdays need .o weekend or evenin g activities scheduled. x� 1. Used to have a great mall. 1. Rental of houses controlled by City. Renter bring down a 3 8 2. Use to be convenient for work, living, playing. neighborhoods. U U b E 3. The restaurants have mostly left town along with the City's 2. More open use of Parks that our taxes pay for. N z good reputation. 3. Increase size of Police Department for better response times. 1. Close to freeways. 1. The whole City needs a face lift. Get some businesses into some of the 2. Grew up in this City- thought it would be a good place to live. empty buildings. But... This City is going down the tubes. Not sure we will 2. Save Brookdale -Get rid of the section 8 crap that's moving in. I pay 4 continue to live here. Working to get my father, a 50 year high taxes. resident out of this crime ridden section 8 city. 3. Build some upper scale housing in these vacant lots. The cackling hens on the City Council need to quit griping and get something accomplished. Your embarrassing to watch on Cable 12. 1. Access to major highways. 2. BC School district. 1. Code Enforcement for parking garage sale signs lawn/weeds. 5 3. Quiet neighborhood. 2. Development for on old Jerry's property Hmong Mall area. 3. Police presence in Cub area Transit station. 1. Convenient to shopping and work. 2. Neighborhood kept up (not the case now) 1. Code Enforcement, parking in driveway 6 2. Number of families living in one house. 3. Keeping up yards, again code enforcement. Code enforcement looks the other way. Why have one if you can't do the job. 1. Close to everything. 1. Obey rules of B.C. such as garbage cans out of sight and only 7 2. Quietness where I live off Bass Lake Rd west of Brooklyn sprinkling on designated days. Blvd not far from 100. 2. Cars Equipment in yard east of Northport Park. 3. House is paid for. 0 i 1. Attract retailers other than jewelry stores, dollar stores, Wusinesses 1. I grew up here. that attract low lifes. We home owners need a SAFE shopping 2. Locations: ease of getting anywhere I need to go in 20 environment and businesses that cater to baby boomers since we have to minutes. Central Location spend. We can't afford to loose more restaurants JCPenny stores. 3. Nice neighborhoods, limited rentals and low income housing 2. Home owners need real estate tax breaks. compared to Brooklyn Park, only 2 really troubled spots. 3. We need a face lift and clean up of rental property on 53rd Ave and off Xerxes where all the trouble makers are. 8 BC has a very negative image. People who don't live here call it the ghetto, are afraid to shop and drive here. I've lived here 52 years and am ashamed to admit to my colleagues that I live in what's perceived as the next N. Minneapolis. I don't want to move but as a single female, I feel I have to consider doing so if things don't get better soon. My neighborhood is ok but Brookdale, Cub and retail are is not. We have only the 50's grill left after TGIF goes away since Applebees and Refs are not safe. I t 1. Older, Quality, Affordable Homes. 1. Portable Basket Ball Hoops in the streets. Elimination 9 E x z 2. Close to Family 2. Brookdale (Quality Retail) 'El M 3. Quick Storm Clean -up! 3. Run Down Apartments N 1. Independent District 2. Nice Schools 1. Please install a stop sign or traffic light in between 57th to 53rd 10 3. Spacious yards and close to the City Logan Ave. Cars speed down my street 60mph during the day and night, where are the police? I think speeders like the long a stretch with no stop sign. One day a child is going to pay the price. 1. Convenient to major highways 2. Convenient to Mpls. 1. Cleanup trash graffiti in public areas -hold businesses accountable 3. Amount of trees. use volunteers 11 a 2. Go house to house to enforce code violations like Richfield in doing. 3. Make our intersections more attractive with plants flowers. A trashy city will only attract crime and people who don't care. Also, we can't hear the storm siren at 63rd and Regent. 1. The government has a social security office here. 1. Greatly improve the distribution of the local Sun Post, please. 12 2. Efforts for redevelopment keep going on and on. 2. Greatly improve snow removal from sidewalks and corners. 3. Proximity too Hwy 100 3. Efforts for redevelopment keep going on and on. Its proximity to everything. 2. Its small town feel. 1. The garbage at the bus stops by Brookdale on the weeks -its awful. 13 3. My neighbors 2. Attract a chipotle or Pizza Luce and more upscale dinning. 3. Get rid of empty buildings- coyote grill, cracker barrel etc. 1. Convenient location to freeways. 1. Cut down on the rental properties (houses) 2. I like the small BC #286 school district. 2. Do something with the vacant businesses that move out of BC 14 3. I work in BC so its convenient to live here, too. (teardownlget new tenants) 3. Eliminate problem apartment buildings. 1. Proximity to shopping (food, drugstores, etc) 2. My quiet neighborhood. 1. Widen our tax base empty businesses 58th County Rd 10, filling 15 3. Nice library Community service bldg programs. stations on Brooklyn Blvd (before you get to Zane), Northbrook (County Rd 10 Hwy 100) taxes are outrageous. 2. Admonish Speeders We need more Police! Esp. Bass Lake Rd. 3. Beautify public roads fine the litter bugs. 1. Entorce City Codes! Long grass and weeds everywhere in tfie summer, lack of shoveling in the winter, peeling paint and otherwise poorly kept homes, junk stored on properties, cars improperly parked on resident lawns, enforce leash laws in City parks. People use Bellevue Park as a dog run. No Comments 2. Revitalize Brookdale, area businesses and housing stock to improve the City's image and attract higher income households. 16 3. Crime 4. Lower property taxes Brooklyn Center appears to be in a downward spiral due to loss of businesses and quality housing stock. Consider running the City as a well run business. Draw quality businesses for the Brookdale area and heighten quality home developers to attract the household income base to support a vibrant and attractive City. Strict enforcement of City Codes will go far in working with what currently exists. z 1. Multi cultural and diverse population. 1. Revitalize Brookdale (and why are there palm trees in the common 2. Easy access to Twin Cities activities and airport. area? Are we in Florida 17 3. Streets are most city facilities are well maintained. 2. Reduce section 8 housing. 0 3. Increase community service patrols to help maintain appearance of neighborhoods. 1. Nearness to church shopping. 1. Better code enforcement. 18 2. Good police and fire dept local government. 2. Code enforcement needs to be improved. 3. Up to this time we have had a neighborhood interested in 3. Bring Brookdale back to life. family and keeping up property. It is where I've lived for the past 51 years. 10 1. Get people to take better care of their lawns. 19 Z 2. The City has done a good job keeping up the City of Brooklyn 2. Get stricter on littering, punishable if necessary. z Center. 3. All in all the City is doing a good job. 1. Have lived here for 47 years. 1. Inspection on ordinances. 2. Own my home. 2. Informing new residents on care of property. 20 c 3. Want to Police to enforce noise ordinances. 3. Keeping their property up I want BC to look good, not run down. New people moving in do not C care. ti 1. Don't particularly like living in B.C. the way neighborhoods 1. More aggressive to change commercial properties (not more Dollar are deteriorating. Stores) 2. Nothing all that positive to mention. 2. Enforcement of City Codes about up keep of individual properties 21 3. In due time will move. (Please) 3. "Brookdale" The way it exists needs to go, it will just get worse in time. 22 1. The Shingle Creek Trail System. 1. Concerned about City Parks- Brooklyn Dr Nash -drug deals. 2. Youth Sports. 2. Have a meet and greet with Police Officers that patrol our block. 1. Good Police Force 23 2. Good walking area (Palmer Lake Area) 1. Check yards for various violations. 3. Good shopping areas -some 2. Check home at the corner of Urban Drew -cars Start the revitalization that should have been started 10 years ago. 24 I'm Planning to sell my house. i.e. Crystal, Robbinsdale, Brooklyn Park. 1. With the large number of houses being sold and For Rent signs going 1. Small town atmosphere of BC School Dist. 286 up. 25 2. Diversity of our population 2. Strict regulations for land lords, like we have for apartments. 3. Large number of citizens who have lived here for 50+ years, 3. Continued code enforcement to keep yard, house, property neat and like me Many Friends clean. 1. Diversity of People (ethically, demographically) 1. Improve our image as a 1 st ring suburb -using strategies like Columbia 2. Affordable Heights and St. Louis Park. 3. Great Parks, Recreation Programs 2. Encourage more top tier businesses. 3. Investment like the Caribou World Headquarters 26 4. Encourage higher end ($350k) housing options /developments 5. Address the poor appearance of our retail (Brookdale) 6. Figure out an effective way to become a feeder community to the new "Downtown" of Maple Grove Brooklyn Park. So much is close to my apartment- restaurants, stores, library,, 1. Keep Target, Perkins, other stores and restaurants here (wOC is redone) 27 more. I live by the library. 2. Stop running City Hall's AC system practically 24 hrs 1 day wasteful and 2. Wonderful park and trail system. noisy 1. Diversity more accurately reflects the world. 1. Crime /perception of crime. 2. Get rid of junky looking areas think Brooklyn Blvd.) 28 3. Create plan to help homeowners maintain homes, esp. 1st generation home owners. i I MEMORANDUM COUNCIL WORK SESSION DATE: October 6, 2006 TO: Brooklyn Center City Council FROM: Curt Boganey, City eqp er SUBJECT: Lang Nelson Rental License COUNCIL ACTION REQUIRED Should staff be directed to review, reconsider or modify the rental licensing fees for apartment properties? BACKGROUND Attached is letter from Lang Nelson protesting the current rental licensing fee. I have also attached copies of the resolution adopted in October of 2005 and the background information provided to the City Council at that time when fees her under review and subsequently revised from the fees approved in August 2001. Hopefully, this information will help lain the bases of the current fees approved last P ex P year. If the council believes that this matter warrants further review or revision it would important that council clearly describe the policy objectives staff should follow in establishing fees going forward. COUNCIL POLICY ISSUES Do the current rental license policies and fees reasonably reflect the Council's policy objectives of cost recovery and equity? G: \City Manager \Langnelson.10.09.06.MEMYRM.doc I La lsorl ASSOCIATES INCORPORATED PROFESSIONAL PROPERTY MANAGEMENT September 20, 2006 Mayor Myrna Kragness 3401 63rd Avenue North Brooklyn Center, MN 55429 and Mr. Curt Boganey ssistant City Manager /Director of Operations 6301 Shingle Creek Parkway Brooklyn Center, Minnesota 55430 Re: Rental License Policy Dar Mayor Kragness and Mr. Boganey, I am writing this letter to express that p your Rental License policy as it relates to Twin Lake North does not work fairly and must be changed. Let me acknowledge that Lang Nelson Associates is proud to be owners and operators of rental property in the city of Brooklyn Center. Lang Nelson Associates manages 562 senior apartment units within the city of Brooklyn Center and pride ourselves in delivering the highest quality of housing services to our residents. At Lang Nelson, "Our mission is to go above and beyond our customer's expoctations. We are dedicated to providing quality living environments that enhance our residents' lives physically, socially and spiritually." We take great satisfaction in presenting premier senior housing facilities to our residents and are grateful to be located in Brooklyn Center. We further believe area positive asset to your city. Physically, our Lang Nelson communities are second to none. We attempt to deliver the highest quality physical asset to our residents. This is not only true for our residential units but also the common areas and the property grounds Now some statistics regarding your Rental License policy: You have dual billing i by assessing fees per building and also by unit. An example is our Crossings community where there is one building and 73 units. The fee is $200 per building and $18 per unit. This totals $1,514.00 or $20.74 per unit. s 4601 Excelsior Boulevard, Suite 650 Minneapolis, MN 55416 952- 920 -0400 Fax 952 920 -0982 info@Ianel.com My complaint is relative to our Twin Lake North property. The fee being charged is for 46 buildings and 276 units that totals $14,168.00. Per unit the License fee is $51.33. This represents a fee that is 147.5% greater than the Crossings. This disparity is clearly unfair and not appropriate especially to our senior citizens. In fact is there are only 23 buildings at Twin Lake North as each building has one boiler and two street addresses. I am asking that you i,rtime lately rectify the license policy by not double billing our property. Our I,ibense expires on October 31, 2006 and our residents await your response. I c l an be reabPed at 952 697 -4610. N` Thank you for your review of tis ma er. 4 Sincerel r- Francis W L ng President Lang Nelson, Associates, Inc. FWL:mnb Member Mary O'Connor introduced the following resolution and moved its adoption: RESOLUTION NO. 2005 -152 RESOLUTION AMENDING THE SCHEDULE FOR RENTAL DWELLING LICENSE FEES WHEREAS, the City Council of the City of Brooklyn Center adopted Resolution No. 2004 -92 on June 28, 2004, which amended the fees to be charged for rental dwellings; and WHEREAS, the City Council has determined that it wishes to modify the fees for rental dwelling licenses. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, to amend the City's fee schedule for rental dwelling licenses as follows: Rental Dwellings Biennial Fee Single Family Dwelling Initial License/New Owner $400 Renewal License (No change in license holder) $300 Two Family Dwelling Each Rental Unit $200 Multiple Family Dwelling Each Building $200 Each Unit $18 Minimum Base Fee $450 BE IT FURTHER RESOLVED by the City Council of the City of Brooklyn Center that this resolution shall be effective January 1, 2006. October 10. 2005 Date Q Mayor ATTEST: V iTAL� U City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Kathleen Carmody; and upon vote being taken thereon, the following voted in favor thereof: Myrna Kragness, O'Connor; Ka Tasman Diane Niesen Kathleen Carmody, y and Mary and the following voted against the same: none; whereupon said resolution was declared duly passed and adopted. City of Brooklyn Center A Millennium Community To: Mayor Kragness and Council Members C y, Lasman, Niesen, and O'Connor From: Michael J. McCaule City Manager Date: October 6, 2005 Re: Rental License Fees Attached are 2 alternate resolutions that reflect the direction given by the City Council at the last Work Session. In both alternates, single family fees are reduced for renewals and increased for initial licenses. Duplex fees are set at $200 per dwelling unit in both alternates. Alternate 1 per building fee is $200 per unit is $18 per unit Alternate 2 per building fee is $250 per unit fee remains at $13 per unit The Alternates assume an increase in the number of single family rental units licensed. Both alternat es roughly should raise the same revenue as the revenue estimates upon g y which the rates were changed in November of last year. 6301 Shingle Creek Parkway Recreation and Community Center Phone &TDD Number Brooklyn Center, MN 55430 -2199 (763) 569 -3400 City Hall TDD Number (763) 569 -3300 FAX (763) 569 -3434 FAX (763) 569 -3494 www.cityofbrooklyncenterorg ALTERNATE 0 Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION AMENDING THE SCHEDULE FOR RENTAL DWELLING LICENSE FEES WHEREAS, the City Council of the City of Brooklyn Center adopted Resolution No 2004 -92 on June 28, 2004, which amended the fees to be charged for rental dwellings; and WHEREAS, the City Council has determined that it wishes to modify the fees for rental dwelling licenses. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, to amend the City's fee schedule for rental dwelling licenses as follows: Rental Dwellings Biennial Fee Single Family Dwelling Initial License or Transfer of License $400 Renewal License (No change in license holder) $300 Two Family Dwelling Each Rental Unit $200 Multiple Family Dwelling Each Building $200 Each Unit $18 Minimum Base Fee $450 BE IT FURTHER RESOLVED by the City Council of the City of Brooklyn Center that this resolution shall be effective January 1, 2006. October 10. 2005 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. ALTERNATE #2 Member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION AMENDING THE SCHEDULE FOR RENTAL DWELLING LICENSE FEES WHEREAS, the City Council of the City of Brooklyn Center adopted Resolution No. 2004 -92 on June 28, 2004, which amended the fees to be charged for rental dwellings; and WHEREAS, the City Council has determined that it wishes to modify the fees for rental dwelling licenses. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, to amend the City's fee schedule for rental dwelling licenses as follows: Rental Dwellings Biennial Fee Single Family Dwelling Initial License or Transfer of License $400 Renewal License (No change in license holder) $300 Two Family Dwelling Each Rental Unit $200 Multiple Family Dwelling Each Building $250 Each Unit $13 Minimum Base Fee $450 BE IT FURTHER RESOLVED by the City Council of the City of Brooklyn Center that this resolution shall be effective January 1, 2006. October 10. 2005 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof. and the following voted against the same: whereupon said resolution was declared duly passed and adopted. Current Fee Structure Biennial Revenue of Buildings of units Minimum Building Fee Per unit Fee Total comply Total Fees 1 3 $450 $155 $39 $450 1 $450 1 4 $450 $155 $52 $450 19 $8,550 1 5 $450 $155 $65 $450 1 $450 1 6 $450 $155 $78 $450 2 $900 1 7 $450 $155 $91 $450 3 $1,350 1 8 $450 $155 $104 $450 1 $450 1 10 $450 $155 $130 $450 1 $450 1 11 $450 $155 $143 $450 9 $4,050 1 12 $450 $155 $156 $450 4 $1,800 1 18 $450 $155 $234 $450 1 $450 1 22 $450 $155 $286 $450 1 $450 1 24 $450 $155 $312 $467 1 $467 2 8 $450 $310 $104 $450 1 $450 Large Complexes j 276 3357 $42,780 $43,641 $86,421 $86,421 Sing;le Family 315 $118,125 $118,125 $118,125 Duplex 65 $29,250 $29,250 $29,250, Total Fees $254,063 FEES Annual $127,032 Per Building $155 Note: in 2 year cycle, fees not evenly split annually. Per Unit $13 Single Family $375 Duplex $450 Proposed Fee Structure Alternate #1 Biennial Revenue of Buildings of units Minimum Building Fee Per unit Fee Total compli Total Fees 1 3 $450 $200 $54 $450 1 $450 1 4 $450 $200 $72 $450 19 $8,550 1 5 $450 $200 $90 $450 1 $450 1 6 $450 $200 $108 $450 2 $900 1 7 $450 $200 $126 $450 3 $1,350 1 8 $450 $200 $144 $450 1 $450 1 10 $450 $200 $180 $450 1 $450 1 11 $450 $200 $198 $450 9 $4,050 1 12 $450 $200 $216 $450 4 $1,800 1 18 $450 $200 $324 $524 1 $524 1 22 $450 $200 $396 $596 1 $596 1 24 $450 $200 $432 $632 1 $632 2 8 $450 $400 $144 $544 1 $544 I I Large Complexes 276 3357 $55,200 $60,426 $115,626 $115,626 Single Family Renewal 315 $94,500 $94,500 $94,500 Single Familiy Initial 40 $16,000 $16,000 $16,000 Duplex 65 $13,000 $13,000 $13,000 Total Fees $259,872 Annual $129,936 FEES Note: in 2 year cycle, fees not evenly split annually. Per Building $200 Per Unit $18 Single Family Renewal $300 Single Family Initial $400 Duplex each unit $200 Proposed Fee Structure Alternate #2 Biennial Revenue of Buildings of units Minimum Building Fee Per unit Fee Total compl Total Fees 1 3 $450 $250 $39 $450 1 $450 1 4 $450 $250 $52 $450 19 $8,550 1 5 $450 $250 $65 $450 1 $450 1 6 $450 $250 $78 $450 2 $900 1 7 $450 $250 $91 $450 3 $1,350 1 8 $450 $250 $104 $450 1 $450 1 10 $450 $250 $130 $450 1 $450 1 11 $450 $250 $143 $450 9 $4,050 1 12 $450 $250 $156 $450 4 $1,800 1 18 $450 $250 $234 $484 1 $484 1 22 $450 $250 $286 $536 1 $536 1 24 $450 $250 $312 $562 1 $562 2 8 $450 $500 $104 $604 1 $604 Large Complexes 276 3357 $69,000 $43,641 $112,641 $112,641 Single Family Renewal 315 $94,500 $94,500 $94,500 Single Familiy Initial 40 $16,000 $16,000 $16,000 Duplex 65 $13,000 $13,000 $13,000 Total Fees $256,777 Annual $128,389 FEES Note: in 2 year cycle, fees not evenly split annually. Per Building $250 Per Unit Single Family Renewal $300 Single Family Initial $400 Duplex each unit $200 I MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA WORK SESSION SEPTEMBER 26, 2005 CITY HALL COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council/Economic Development Authority met in Work Session and was called to order by Mayor/President Myrna Kragness at 8:17 p.m. ROLL CALL Mayor/President Myrna Kragness and Councilmembers /Commissioners Kathleen Carmody, Kay Lasman, Diane Niesen, and Mary O'Connor. Also present were City Manager/Executive Director Michael McCauley, Assistant City Manager /Director of Op erations Curt Bo ane g y, and City Clerk Sharon Knutson. DISCUSSION OF RENTAL HOUSING LICENSE FEES The City Council continued its discussion from the Study Session of the rental dwelling license fee structure with regard to the potential for an initial fee and renewal fee for single family rental dwellings. Councilmember Lasman stated she could support a $375 fee for initial licenses, with a $300 or $325 renewal fee for single family rental dwellings. Councilmember Carmody said that the March report on inspectors' time spent on rental inspections shows that 65% of the inspectors' time is spent on single family rentals, and therefore does support leaving the single family fee higher. She said it isn't fair to charge other types of rental property higher fees to offset the reduced revenue in single family rental dwellings. re n Councilmember Lasman agreed with Councilmemb er Carmody regarding g not penalizing g multi family rental dwellings to subsidize single family rental dwellings. She said there must be some performance to justify a lowered renewal fee for single family rental dwellings (i.e., propertyhas not been problematic). e based on the number of times the Councilmember Carmody iscussed setting fees b inspector needs to Y g do a re- inspection and said there could be accusations that the inspectors are failing the inspection to get more money. 09/26/05 -1- l Mr. McCauley said the City of Brooklyn Park struggled with its rental dwelling fee structure. He said the fee schedule structure is a policy decision for the Council. Jeanette Messersmith, 5340 Queen Avenue North, addressed the Council and said Brooklyn Center is a first -ring suburb and asked why the rental license fees are so skewed compared to other first -ring suburbs. Councilmember Carmody said the taxpayers of Brooklyn Center are subsidizing the rental property inspections and that was the impetus for changing the fee structure. Ms. Messersmith said it is such an extreme increase and she is trying to keep her rents affordable. She suggested self policing like the Association of Rental Management (ARM). Mr. McCauley said it is time consuming to get owners of single family rental property to follow through on inspections. He said there are numerous "get rich, buy rental property" seminars that people are attending and they have no experience with owning and managing rental property. Ralph Johnson, 5440 Bryant Avenue North, addressed the Council and said they are not absentee landlords; they own duplexes and live on one side. Councilmember Niesen said she would like to discuss the homestead idea, that if your property is homestead you should not have to license the property. She discussed that New Brighton does not inspect one- and two family rental dwellings. She said the City's current provisional license only applies to four -unit dwellings or more. She stated there are a number of absentee landlords, and the homestead definition does reduce inspection costs. She inquired what was the purpose of the $450 minimum and how the fee structure kicks in when it is 24 units or more. Ms. Messersmith said she appreciates the inspection and learns what happens when there is a change in the code. She would like to see some incentive for living in close proximity to the rental property she owns. Councilmember O'Connor suggested that when one side of a duplex is homestead, the other side could have a reduced license fee. Mr. McCauley explained that the Council could rationally reduce the fee for a duplex that is homestead, but could not rationally reduce the fee of a rental property if it is in close proximity to the owner. Councilmember O'Connor suggested a fee of $200 for one side of a duplex, which would make the total costs for both sides $400. Councilmember Niesen inquired what information goes out to the rental property owner to notify them of the codes, and what education and skills are needed to be a housing inspector. She discussed the appeal process for rental property owners. 09/26/05 o r K SeSs ion -2- Ms. Messersmith inquired if inspectors could make inspections on evening hours or weekends. Mayor Kragness responded the Community Development Department would need to review that issue. u Councilmember Niesen inquired how long the City has had three inspectors, how they can keep p if the number of inspections keep increasing, and at what point the City would need to hire an additional inspector. She said she thought a time study had been authorized. Mr. McCauley responded that there is a push and bulge effect with inspections. He said previously they were enveloped in large apartment complexes; the current trend is single family rentals with a lull in multi family dwellings. He stated the prior fee schedule did not cover the costs of administering the rental housing inspections. Councilmember Lasman inquired if the housing inspectors are also building inspectors. Mr. McCauley responded that there is a complement of three inspectors; one building official, one building inspector, and one housing inspector and this group has been very efficient. Councilmember Lasman stated that the inspectors were busy with Brookdale during its renovation. Ms. Messersmith mentioned the Opportunity Site and Northbrook Site will also require inspectors' time. Mr. McCauley said the fee for rental licensing covers the cost of inspections, but does not include the cost of police or code enforcement. He stated that a lower fee for a duplex with one side homestead is defensible, as well as an initial and renewal fee for single family dwellings. Councilmember Carmody suggested $450 for initial single family rental dwellings. Councilmember Lasman said she would consider that fee. Councilmember O'Connor suggested $400 for initial and $300 for renewal single family rental dwellings. Councilmember Lasman summed up the discussion on suggested fees as $400 for initial and $300 for renewal single family dwellings and $200 for one side of a duplex. Mr. McCauley said he would take those fees and run the report and see if there is any adjustment needed for multi family dwellings. REVIEW OF CARL NEU'S OBSERVATIONS AND CONCLUSIONS FOR THE SEPTEMBER 14 CITY COUNCIL WORK SESSION This item was discussed at the Study Session. 09/26/05 WO/•K Se i rl -3- opening hours from 6 a.m. to 5 a.m. was because of early morning joggers. She also noted that there is a citizen's guide that lists park hours that will need to be updated. DISCUSSION OF WORK SESSION AGENDA ITEMS AS TIME PERMITS REVIEW OF CARL NEU'S OBSERVATIONS AND CONCLUSIONS FOR THE SEPTEMBER 14 CITY COUNCIL WORK SESSION Mr. McCauley said Mr. Neu had prepared his report from the September 14 City Council retreat and it was offered for any comment and/or correction. After review, the report would be placed on the next Council agenda for acceptance in resolution format. Mayor Kragness inquired if any Council Member had any comments regarding the report. Councilmember O'Connor said she didn't agree with all of the issues, but they were the consensus of the group. MISCELLANEOUS Mr. McCauley provided the Council Members with an update on the September 21 storm damage. He said he could make a PowerPoint presentation at the Regular Session Council meeting. Mayor Kragness raised the issue of whether or not there was any type of reforestation program that the City could look into. She also inquired if residents could get wood chips from the former Jerry's New Market site. With regard to wood chips, Mr. McCauley responded that there would be safety issues at the former Jerry's New Market site; Mr. Blomstrom added there is a stockpile of wood chips available for residents at Evergreen. DISCUSSION OF RENTAL HOUSING LICENSE FEES Councilmember Carmody referred to the current fee structure and the alternate scenarios for rental licensing fees She noted that the single family license fees are three to four times that of the multiple family dwelling units and inquired if the inspection of single family dwellings take three to four times as much time as the multiple family dwelling units and whether duplexes takes up to 1 times more. She said she wants to be able to justify that it really takes that much time to do the inspections. Mr. McCauley responded that about 65 percent of the inspectors time is spent on single family dwellings and noted that there are multiple notices sent to single family rental property owners requesting inspections or compliance. He explained with multiple family dwellings the inspectors do a sampling rather than inspect every unit, unless there is a need for a complete unit -by -unit inspection. He said that licensing 24 units in an apartment complex is working with one owner or 09/26/05 5+UA S ion -2 eS5 management company as compared to 24 single family dwellings and working with 24 different owners. Councilmember Carmody raised the issue of a fee structure that would create a higher initial license fee for single family dwellings and then a lower fee for renewal. between the three es of license concern about the disparity types Councilmember O'Connor expressed c p tY betty ins aid a minimum of $450 per building, revenues would if multiple family dwell p fees. She stated g p p Y Carmod 's idea of a higher initial increase by $40,000. She said she could consider Councilmember Carmody 's for single family dwellings and then a lower renewal fee. Mayor Kragness said the fee structure should differentiate on whether both sides of a duplex are rented. Councilmember Carmody stated the fee structure shouldn't increase license fees for multiple family dwellings to subsidize single family rental dwelling costs. She said the fees should be set according to who is using the most staff time. Councilmember Niesen said the City should be proactive with the rental license program and inquired if an inspection checklist is mailed to rental property owners before an inspection is done so the rental property owner knows what needs to be up to code. Mr. McCauley responded he had requested copies of the materials that a rental property owner receives and will provide those copies for the Council. Councilmember Lasman said there is a cost factor with the inspector's time, but there also tends to be other cost factors with rental property (i.e., code enforcement, neighbor disputes). She noted there is a different trend now with single family rental dwellings, and she is not willing to lower the license fees, as she would rather see homeownership. ADJOURNMENT Councilmember Carmody moved and Councilmember Niesen seconded adjournment of the Study Session at 6:45 p.m. Motion passed unanimously. City Clerk Mayor 09/26/05 d -3- e lOYt S�-u, S ss