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HomeMy WebLinkAbout1994 06-21 CCM Special Work Session MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL WORK SESSION JUNE 21, 1994 CITY HALL COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in special work session and was called to order by Mayor Todd Paulson at 7 p.m. ROLL CALL Mayor Todd Paulson, Councilmembers Celia Scott, Barb Kalligher, Kristen Mann, and Dave Rosene. Also present were City Manager Gerald Splinter, Finance Director Charlie Hansen, Director of Public Services Diane Spector, Director of Community Development Brad Hoffman, Earle Brown Heritage Center Manager Judith Bergeland, and Council Secretdry Barbara Collman. Councilmember Mann requested the addition of three items to the agenda: a violation of the City Charter, discussion of the financial audit recommendations, and an upgrade of ordinance conduct. Since Bill Morris had not yet arrived, it was decided to move Councilmember Mann's agenda items to this point in the agenda. FINANCIAL AUDIT RECOMMENDATIONS There was a motion by Councilmember Kalligher and seconded by Councilmember Scott to schedule a discussion with the Finance Director of the financial audit recommendations at an upcoming work session. The motion passed unanimously. CITY CHARTER VIOLATION Councilmember Mann made reference to Section 2.09 of the City Charter, "Interference With Administration." 7 'She said she wished to point out that this section of the charter has been violated by Mayor Paulson. She said the interference related to an ongoing investigation concerning the Police Chiefs performance. She said the majority of the Councilmembers agree with her, the City Manager was interfered with when Mayor Paulson contacted media rather than contacting the City Attorney. She added a discussion on the issue is difficult because of the sensitivity of the issue, but offered to be more specific in a personal conversation. 6/21/94 _ 1 _ Mayor Paulson said he did not agree with Councilmember Mann's position and said her contact with the other Councilmembers had been unlawful. Councilmember Mann replied that she did not use a "telephone tree," but rather phoned Councilmembers individually; therefore, her actions were not unlawful. Councilmember Kalligher asked the City Manager whether the meeting could be closed at this point due to the difficulty in discussing the issue under the sensitivity restrictions. The City Manager said he was not comfortable in determining what type of discussion could be held. He suggested a Councilmember contact the City Attorney for his advice or the Council direct him to contact the City Attorney. Mayor Paulson asked why Councilmember Mann hadn't contacted him directly instead of bringing this to the work session as a "surprise attack." Councilmember Mann said she had tried to contact him. There was a motion by Councilmember Kalligher and seconded by Councilmember Mann that the City Attorney be contacted on how to conduct discussions on this matter. Mayor Paulson stated Councilmember Mann and others had interfered with the administration of the Police Department. The motion passed unanimously. Mayor Paulson added that he is willing to listen to complaints. CITY ORDINANCE AMENDMENT Councilmember Mann said there should be an upgrade to the ordinance regarding licensing. Some municipalities have added domestic abuse to the offenses to not renew rental licenses. She suggested the matter be discussed at a City Council meeting. The City Manager mentioned Brooklyn Park recently made such an addition to the ordinance. He asked whether Staff should point out any other differences found in the ordinances of other cities. Councilmember Mann responded affirmatively. Councilmember Scott said she would like to see samples of the other communities' ordinances. Councilmember Rosene requested the addition of an item to the agenda since the agenda was never approved. REQUEST FOR STATE AID REPRESENTATIVE TO ATTEND CITY COUNCIL MEETING Councilmember Rosene stated he has heard that the Humboldt area residents have contacted Mary Bieringer of State Aid - MnDOT. He expressed a desire for her to come to a meeting of the City Council. 6/21/94 -2- There was a motion by Councilmember Rosene and seconded by Councilmember Kalligher that Ms. Bieringer be asked to attend a City Council meeting. Mayor Paulson and the Director of Public Services said Ms. Bieringer will be attending the Transportation Task Force meeting on Tuesday, June 28. The City Manager said Staff has asked Ms. Bieringer to reply to some questions and can ask her to confirm the meeting on the June 28 or come to another meeting. There was a motion by Councilmember Rosene and seconded by Councilmember Kalligher that Ms. Bieringer be asked to attend a City Council meeting and the City Council be notified of meetings Ms. Bieringer will attend. Councilmember Rosene commented all Councilmembers might not be able to attend the Task Force meeting. The motion passed unanimously. PRESENTATION - BILL MORRIS DECISION RESOURCES INC The City Manager explained since the City Council had decided to proceed with the consideration of a bond issue, Bill Morris of Decision Resources, Inc. had been invited to present some information. Mr. Morris explained Decision Resources, Inc. is a survey and market research firm. The company has a 93 percent success rate on getting referendums passed by voters. He mentioned four considerations to be made when structuring a bond issue. The timing of the bond issue is important. If the bond issue is put on a general ballot, there will be a large number of voters to the polls; however, the bond issue can become insignificant to the voters in the face of larger campaigns. Conflict with referendums by other municipalities or school districts must be considered; voters are more apt to support a single issue. The number of issues within the referendum is an important question. The issues can be presented together, divided, or on a contingency plan. He said voters evaluate an issue based on its direct effect on their household property taxes. A visible citizen Yes committee is indispensable. The members help convince citizens the proposal is worth the tax increase. The City can issue informational materials, but not persuasional materials so a citizen committee must do that. Mr. Morris added ideally a bond issue campaign should be thirty to forty -five days long, which is enough time to identify, persuade, and motivate the voters. He also reviewed the characteristics of voters. He said it should be determined, by asking, how much people are willing to let their taxes be increased. At that point, you are aware of their comfort zone and can work on persuading them to a higher level. 6/21/94 - 3 _ Mr. Morris said his company recommends the items in a referendum be tested individually. He said a referendum might pass or not pass because of one small element. Knowing what is important to the voters allows you to plan the package with the right emphasis. His company conducts surveys to collect the broad thinking on the issues. Councilmember Scott remarked it sounded like the best plan is to separate the issues and present them separately. She asked if there were five issues what the chances would be of all five passing. Mr. Morris said if there are five issues, one can be expected to be lost. Usually no more than three issues are recommended. Councilmember Scott asked the chances of all the issues passing. Mr. Morris said it depends on what the issues are but two- thirds might pass with the right handling. Councilmember Scott said it seems separating issues is best because some voters might not like a part of a package and vote against it; voters like to feel they have a choice. Mr. Morris added that is true especially if there is a "red flag" item. He said if all three issues are acceptable issues, it doesn't matter. The City Manager asked Mr. Morris to describe the recommended steps in designing the bond issue. Mr. Morris said the ideal sequence would be to have a benchmark survey (find out what citizens see as needs, identify the symbolic no vote) and plan the information campaign. The Director of Public Services asked whether, during a survey, a question might be answered differently depending on the way it was asked. Mr. Morris said he feels the best phrasing to use is, "How much would you be willing to have your taxes increased ?" The Director of Public Services asked whether follow -up surveys are done. Mr. Morris said they are, especially when incorrect information has been around. He said surveys are not intended to be persuasional but rather to determine how well the information campaign has worked. Throughout his presentation, Mr. Morris gave numerous examples of other issues his.firm has been involved. Councilmember Scott said the dissemination of information is very important because people need to know the needs, and the only way they can be funded is with a bond issue. The City Manager commented it has been twelve years since the City had a bond issue. He asked Mr. Morris whether there is a trick to the timing of a bond issue. Mr. Morris said it is better if there is not a bond issue every two years from either the City or the school district, as there is a fatigue factor. He said there are windows of opportunity, however. 6/21/94 -4- Mr. Morris cautioned against presenting a bond issue at or around the same time as a school referendum. People are usually willing to increase taxes for schools. He also said to use sense about timing a bond issue; for example, a vote on a referendum should not come close to April 15. He said a "good" proposal can lose if presented at the "wrong" time. Councilmember Rosene commented two school districts in the area recently passed bond issues. He asked whether those events would affect a City bond issue in 1995. Councilmember Scott said another school district has an upcoming bond issue. The City Manager stated four school districts in the area complicate the matter. He said the City Council could discuss hiring Mr. Morris, especially for the initial survey. He said the best chance of success is to use people who have followed a process. He added an active Vote Yes committee is vital as the City cannot promote or put up money toward the campaign. Councilmember Kalligher mentioned a past use of teams in which the community effort was successful. The City Manager said that type of effort takes nine to twelve months. He added the dollar figures listed on the Council's materials are, unrefined. A refined wish list needs to be compiled following the initial survey since then limits are known. Councilmember Scott suggested contacting the superintendent of District 281 to find out whether that district has an upcoming bond issue. The City Manager said all four districts should be polled concerning their intentions. He suggested the Council direct Staff to do that and report to the Council in thirty days. Councilmember Rosene asked the City Manager whether Mr. Morris is being paid for this presentation and whether he will be recommending Decision Resources, Inc. to work for the City on this bond issue. The City Manager said Mr. Morris is not being paid for this evening's visit. Councilmember Rosene asked Mr. Morris how the citizen committees fund buttons, flyers, etc. Mr. Morris replied usually businesses in the community with an interest in the issue get involved in funding. He added if a sports facility is included in a referendum, the leagues will contribute funds and people power. The City Manager, in response to Councilmember Rosene, said Mr. Morris has a good track record and he does lean toward hiring his firm. He said an-estimated cost and timeframe will be presented to the Council. Councilmember Mann asked whether the next step would be for Staff to prepare an outline and cost estimate, including the elements and costs of executing the plan. It was confirmed that was the next step. 6/21/94 - 5 - Mayor Paulson asked at what point the Council gets involved in the process. Councilmember Scott and the City Manager answered the Council should be involved immediately. The City Manager said a Vote Yes committee should be formed and perhaps the commissions should be called upon for help. Councilmember Scott commented after the outline and survey are completed it might be necessary to go back and make cuts. The City Manager said the list might be too much to test even now. Councilmember Scott agreed the list should be cut first. Councilmember Rosene mentioned the City physical plant and the parks are on the list. He said Council had discussed bonds for property acquisitions but wondered if that would be an unreasonable effort. The City Manager said it probably would and the best source of funding for property acquisitions is probably Tax Increment Financing (TIF). There was a motion by Councilmember Scott and seconded by Councilmember Mann to have Staff bring a report listing a timeframe, identification of issues, and probable costs. The motion passed unanimously. Councilmember Scott expressed appreciation to Mr. Morris for his time at the meeting. Mayor Paulson asked Mr. Morris, in regard to surveys, how many citizens are polled, how long the survey lasts, and whether he could provide samples of surveys. Mr. Morris said about 400 people are surveyed for 21 to 22 minutes, and he could provide sample surveys. ACQUISITION OF 7000 ON BROOKLYN BOULEVARD The Director of Community Development explained an office building at 7000 Brooklyn Boulevard has become available for acquisition by the EDA (Economic Development Authority). He said he would have preferred to purchase this property in 1995 rather than now but it is available now. The building has been repossessed by Marquette Bank. The bank has offered to sell it to the EDA, but it needs to be cleared from the books immediately. The EDA can buy it now for $171,000. The cost to acquire the property later will be approximately $240,000. Councilmember Kalligher asked whether it is true tenants of the building have 30 -day leases and whether the EDA would collect the leases if it purchased the property. The Director of Community Development said the tenants have 30 -day leases which the EDA would collect. The money collected would go to the EDA reserve fund, which would also be the source of funding for the purchase. Monthly rents would be collected until such time as the building is leveled; however, when any tenant leaves that space will not be re- rented. There was a motion by Councilmember Mann and seconded by Councilmember Kalligher to have Staff present a resolution on this matter at the next Economic Development Authority meeting. The motion passed unanimously. 6/21/94 -6- Councilmember Rosene asked whether there are EDA funds available. The Director of Community Development said there are funds available. Mayor Paulson asked whether there will be money left in the fund to acquire residences on Brooklyn Boulevard as they become available. The Director of Community Development said such residences would probably be purchased with CDBG funds. He said there will be a point this fall at which all funding will be committed from that fund until bonds are sold. Councilmember Scott commented the EDA is in no hurry to tear down the building at 7000 Brooklyn Boulevard and it does generate a small income for the EDA. The Director of Community Development said the building will probably not be torn down until 1996. He added the income will be enough to pay the taxes. Councilmember Rosene asked about the residences which were for sale on June Avenue and if those would be acquired with CDBG funding. The Director of Community Development said Staff will be returning to the Council on that issue and that CDBG funding will probably be available. EARLE BROWN HERITAGE CENTER UPDATE AND RECOMMENDATION The City Mtinager stated the Earle Brown Heritage Center Manager and the Director of Community Development would be presenting an activity and finance update on the Earle Brown Heritage Center. The Earle Brown Heritage Center Manager announced if the Center is not in the black this year then it will be in the next year; it is moving rapidly in that direction. There has been a positive economic impact on the community. The figure showing the number of hotel rooms being occupied is significant; hotels in the area thought they would lose revenue but they are now working hand -in -hand with the Center to create additional business. Regarding the parking lot, the Earle Brown Heritage Center Manager said over the past 5- 1/2 months only 45 days was the parking lot not full. She said one reason the parking problem needs to be resolved is there are tenants renting office space from the Center who need parking. Using parking at the corporate center across the street is helpful, but those spaces are only available at night and the Center needs more parking during the day. The Director of Community Development discussed progress made on purchasing the lot across the street for parking. He said a Contract For Deed is acceptable to the selling party. The EDA, last week, offered $300,000 for the land, which is a good price. A reply has not been received; a counter - proposal is expected. The Contract For Deed would be paid from revenues from the existing TIF district. Councilmember Rosene mentioned concern that the landscaping of a new parking lot be appropriate for the farm motif. The Director of Community Development agreed design will be important but said the concern right now is obtaining the land. 6/21/94 -7- The Earle Brown Heritage Center Manager presented many hand -outs, overheads, and packet information. She said the net operating loss figures now are at $83,000 as opposed to approximately $500,000 four years ago. The Earle Brown Heritage Center Manager mentioned the Council's decision to re -do the Blacksmith Shop was a good one. Occupancy figures show the investment was wise. The Earle Brown Heritage Center Manager described the process of selling an event. She said the Center has a reputation for service and for client satisfaction. Sales personnel develop a relationship with their clients; in fact, a client works with the same sales representative through the entire process of the event. Because of the system of selling and servicing, sales representatives work non - traditional hours, including nights, weekends, holidays, and consecutive hours. Therefore, an increase in staffing needs to be considered. She reviewed the organizational flow chart and stated she would like to add a Director of Sales position. She estimated adding such a position would result in a net $50,000 increase in sales. Councilmember Rosene asked whether a person in that position would sell as well. The Earle Brown Heritage Center Manager answered yes. Councilmember Mann inquired about the salary schedule for a Director of Sales. The Earle Brown Heritage Center Manager said that, based on industry standards, a salary would be in the range of $33,000 to $38,000. Councilmember Kalligher asked whether there would be a performance clause attached to such a position; she was told no. Councilmember Kalligher asked whether the position would have a six-month review; she was told yes. Councilmember Kalligher commented it is risky to promise a salary of $33,000 with no assurance of an increase in sales. She asked whether the Council is being asked to authorize the addition of the position. The City Manager said the position would be presented in the budget. Councilmember Kalligher asked whether, if the question does come to the Council for authorization, they can impose a six-month trial period. Councilmember Ro�eneTcommented the Earle Brown Heritage Center Manager has a good track record and she is recommending the position. The Earle Brown Heritage Center Manager added she would like to continue the momentum which is present. 6/21/94 -8 - i Councilmember Scott stated business can be lost if someone is not available and only so much can be expected of the current sales representatives. The City Manager said when the budget comes up a justification will be presented. He added one sales representative is being replaced. Councilmember Rosene said there should be no time wasted. Councilmember Scott asked whether summer months are the biggest booking months at the Center. The Earle Brown Heritage Center Manager said July is good for booking seminars. Mayor Paulson asked the status of Earle's. The Director of Community Development said the cost of operation has been less than projected and the outlook is bright. The Earle Brown Heritage Center Manager reviewed marketing strategies. The Earle Br a e own Heritage Center Manager also explained that one of the two small meeting rooms needs some remodeling work. It needs finish on the concrete blocks. She would like to have dry wall installed, paint, baseboard heat, white board, and cork stripping. The cost would be approximately $4,000 and is not in the Center's budget. The Director of Community Development said there could be a capital outlay amendment to the budget and it would come out of revenue. Councilmember Scott asked whether the room will probably be booked more if it is finished. The Earle Brown Heritage Center Manager said it would. The Director of Community Development recommended Staff return to the Council in July with a justification for personnel changes for formal action. There was a motion by Councilmember Kalligher and seconded by Councilmember Scott to have formal actions recommended in the future. The motion passed unanimously. ADJOURNMENT There was a motion by Councilmember Kalligher and seconded by Councilmember Mann to adjourn the meeting. The motion passed unanimously. The Brooklyn Center City Council adjourned at 9:11 p.m. Deputy City Clerk Todd Paulson, Mayor Recorded and transcribed by: Barbara Collman Timesaver Off Site Secretarial 6/21/94 -9-