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HomeMy WebLinkAbout2006 10-09 CCM Work Session 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 OCTOBER 9, 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 8:25 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 Curt Boganey, Director of Fiscal and Support Services Dan Jordet, City Attorney Charlie LeFevere, and Deputy City Clerk Camille Worley. I REQUEST FROM COUNCILMEMBER NIESEN TO DISCUSS FINANCIAL REPORTS (TABLED FROM 9/25/06) Mr. Boganey explained the email received from Councilmember Niesen in which financial reports are requested. City Attorney Charlie LeFevere explained that claims are presented to the City Council in Statutory Cities because it is required by State law. He stated according to the City Charter, this kind of approval is not required. He stated the language suggests that the City Manager make the payments based on the budget. He said the Charter states that the procedures can be changed by ordinance by the City Council. Councilmember Niesen stated the majority of the cities in Minnesota are Statutory Cities in which the City Council is required to review claim registers and asked Mr. Boganey about the practices of Brooklyn Park. Mr. Boganey discussed his recollection of the practices of Brooklyn Park. Councilmember Niesen stated she needs more information in order to effectively do her job of oversight. She continued to explain the reason she feels it is necessary for the City Council to view all the payments made by the City. She sited City Charter provision 7.10 Disbursements — How Made and noted that the provision did not address the process of approvals, only the process of disbursement. Mr. Boganey explained the process currently used by the City and stated he personally looks at the Check Distribution Report and asks questions as he deems necessary. 10/09/06 1 Mayor Kragness stated the Council previously received a statement of all checks distributed; however with the former City Manager, Mr. McCauley, the Council decided it was not necessary to review the paid claims. Councilmember Lasman stated City Council direction is needed on the item. She stated she would like to know how much time this request would take City Staff to accommodate. She stated if the time spent is minimal, she would not be opposed, however if it will take a lot of time, she sees it as micromanagement. She stated checks and balances are in place and the budget has been running fine. Mr. Boganey stated it would not take much time to produce and copy the report, however the staff time spent reacting to inquiries from Councilmembers could be greater. Councilmember Niesen read a portion of Section 7.12 of the City Charter that discussed the financial reporting requirements and noted specific information required to be provided to City Council that Council is not receiving. There was discussion regarding the requirements of the City Charter. Mr. Boganey stated it is good practice for staff to provide meaningful financial information to the City Council. He stated he would like to provide draft reports with financial information at a policy level, starting at the first of the year. Councilmember Lasman stated she would like to apply parameters on how inquiries on the financial information are made. Mayor Kragness agreed. Councilmember Niesen stated she would like to start receiving the information so that the City Council can determine the types of questions they can ask. She stated if the City Council does not wish to receive the reports, she would still like to receive them. Councilmember Lasman stated objection to Councilmember Niesen receiving the report and stated the entire City Council should act as a whole. She stated operations have been in tact for some time and all the financial aspects of the City are healthy. She stated if Councilmember Niesen requests the Check Register as public data, she should be required to pay for the public data. She stated the City Council does not wish to receive the information as a whole; therefore she can request and purchase the information. She stated the information proposed for January is sufficient for her. Councilmember O'Connor stated she is in favor of receiving the information in the same way as Councilmember Niesen. Councilmember Carmody stated based on recent activities, going over the check register would be cumbersome for staff and stated she is not in favor of going over all the details of spending. She stated the request by Councilmember Niesen is inappropriate and could be an attempt to go after Mr. Boganey. REVISIONS TO NEW HOTEL DEVELOPMENT AGREEMENT — CITY MANAGER Mr. Boganey stated after a couple years, the City believes it has an agreement with Brooklyn Hotel Partners, LLC to move forward with construction of a 175 room, full service hotel and 10/09/06 2 potentially later, a 75 room hotel adjacent on the property, owned by the EDA. He stated with the passing of time, some circumstances have changed and has resulted in a request on the part of the partners to modify certain aspects of the previously approved agreement. He stated the staff feels the modified agreement works to the EDA's advantage and the results will be the same quality as originally envisioned. Community Development Director Brad Hoffinan explained that since last May, the lawsuit was settled and in August of last year, the Embassy Suites changed their format including the site plan, formerly approved by the EDA. He stated the new proposal is that the parcel be removed from the TIF District and the City enter into a tax abatement agreement with the developers for a period up to 10 years for each phase and an amount not to exceed the original concept of $2,100,000 of assistance. He continued to discuss other aspects of the proposed agreement. Councilmember Niesen stated concern with the selling price of the land proposed in the agreement. She stated concern with the freezing of TIF dollars. There was discussion regarding TIF District funding, Tax Abatement and the value of the land now, verses 20 years from now. Mayor Kragness stated she would like to see the item brought to the City Council for a vote. She stated it has been a long time in the making. Mr. Hoffinan stated it is his understanding that the site plan has begun and the developer wishes to start construction this spring. Councilmember O'Connor stated she would prefer to sell the land and does not support a hotel. Councilmember Lasman stated the hotel has been envisioned for a long period of time for this parcel of land and will stimulate business at the Heritage Center. She stated she is in favor of the hotel development and the City should move forward with the development. Mayor Kragness stated the Earle Brown Heritage Center has not been able to book large conferences because of the lack of hotel space. She stated this is a priority to the Heritage Center and the City. It was the majority consensus of the City Council to go ahead with the negotiations for a new agreement. RECOMMENDATION REGARDING INVESTMENT POLICY MODIFICATIONS PER AUDIT — CITY MANAGER Director of Fiscal and Support Services Dan Jordet explained changes made to the investment policy and practices to increase the yield. He described sample investment policies by the Government Finance Officers Association, the League of Minnesota Cities, and the City of Shakopee. He stated the change proposed is that the City be allowed to invest in agency securities. He suggested that the use of Section 118A of the Minnesota State Statutes be added to the policy as the source of reference. He suggested that the policy project the Enterprise Funds be projected out five years. 10/09/06 3 There was discussion on the risks of investments and tax increment revenues. NORTHWEST SUBURBS CABLE COMMUNICATIONS COMMISSION REGARDING RESOLUTION TO THE LEAGUE OF MINNESOTA CITIES — GREGORY MOORE Councilmember Carmody stated she would like to verify the information presented and hold this item until the next City Council meeting. It was the majority consensus of the City Council to continue this item until the next City Council meeting. CITIZEN COMMENT CARD RESULTS — COUNCIL Mr. Boganey explained that 28 citizen comment cards were received. Councilmember Niesen stated she would like to use them in the goal setting session at the retreat. MISCELLANEOUS Councilmember Lasman asked why Councilmember Niesen thought it was appropriate to ask the City for reimbursement for legal fees after she stated she went on her own time and paid for it out of her own pocket. Councilmember Niesen responded she was looking at the legal advice as a whole and stated she thought a second opinion would be appropriate. She stated she wanted to see how the City Council receives legal services and testing the path of obtaining legal advice. Councilmember Lasman stated Councilmember Niesen is giving the impression that she is working for a crooked organization with some of her actions. Mayor Kragness stated Councilmember Niesen is consuming a lot of staff time and making the staff feel she does not trust them. Councilmember Lasman stated Councilmember Niesen's actions are costing the tax payers a lot of money. Councilmember Niesen requested that the City Council receive the golf course fund reports along with the liquor stores reports. Councilmember O'Connor stated agreement. It was the majority consensus of the City Council to receive the golf course fund reports along with the liquor store fund reports. ADJOURNMENT Councilmember /Commissioner Lasman moved and Councilmember /Commissioner Niesen seconded adjournment of the City Council/Economic Development Authority Work Session at 10:08 p.m. Mo n passed unanimously. ��� City Clerk Mayor/President 10/09/06 4