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HomeMy WebLinkAbout1993 10-04 CCM Special Work Session i 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 SPECIAL WORK SESSION OCTOBER 4, 1993 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 Barb Kalligher, Celia Scott, Dave Rosene, and Kristen Mann. Also present were City Manager Gerald Splinter, Director of Public Works Sy Knapp, Public Works Coordinator Diane Spector, Director of Finance Charlie Hansen, and Council Secretary Debbie Wolfe. CAPITAL IMPROVEMENTS PROGRAM The City Manager reviewed the proposed 1994 Capital Improvements Program and stated the purpose of this capital improvements program is to have it considered at the same time the City Council considers the general fund budget so the Council can have an appreciation for the impacts and the relationships between the operating budgets and the capital budgets. He stated there is no action required by the Council at this meeting and introduced the Director of Finance to review the accounting statements for the Council. City of Brooklyn Center Adequate General Fund Balance Policy Formula As Established by the City Council on December 22, 1980 (As set forth in M &C No. 80 -31 and amended February 26, 1990) 1. Latest Audited Total Fund Balance At: December 31, 1992 $5,040,652 2. Less Items Not Readily Convertible to Cash: a. Uncollected Taxes $319,112 b. Accounts Receivable 74,079 C. Advances to Other Funds 105,074 $498,265 10/4/93 { f 3. Fund Balance Convertible to Cash $4,542,387 4. Less Amount Appropriated to the General Fund Current Year Budget: Year: 1993 *36.079 5. Amount Available Before Deduction for Working Capital $4,506,308 6. Less Amounts to be Reserved for Working Capital: (40% of Total General Fund Current Year Budget) 1993 40% of: $10,619,492 $4,247,797 7. Amount Available After Deduction for Working Capital $258,511 8. Less Amounts to be Reserved for Other Purposes: a. Reserve for Delinquent Taxes (5% of Taxes Levied for General Fund in Current Year Budget) 1993 5% of: $4,950,325 $247,516 b. Reserve for Overestimation of Other Revenues: (10% of General Fund Other Revenues in Current Year Budget) 1993 10% of. $5,669,167 W6,917 $814,433 9. Amount Available per Formula for Other Use $- 555,922 *Appropriated by City Council When Adopting Budget $0 Plus $36,079 Reappropriated for 1992 Budget Carry Forwards The Director of Finance then presented statements showing Adequate General Fund Balance Policy Formula Amount Needed for Working Capital for 1991, 1992, and 1993 and a Summary for 1991, 1992, and 1993. The City starts out the year with a substantial amount of cash due to its fund balance. Payments go out for expenditures on a fairly even rate throughout the year. Revenues, however, come in large part from just two sources, property taxes and state aid. These are paid to the City in two equal payments, the first received in June /July and the second in December. As a result, the City pays out money for the first five months of the year, with little coming in, then receive revenues that bring its cash almost up to where it was on January 1, then pays out money again until December when the second half revenues restore the cash balance. This pattern creates two valleys in the cash flow, first in May, and then a second and usually deeper valley in November. In 1991, the November valley equalled 29% of the 1991 budget. In 1992, the November valley equalled ualled 30% of budget. For 1993, the May valley equals 31% of this year's budget and we estimate the November valley will equal 33% of the budget. For 1994, the valleys are likely to be even deeper since our reliance on the property tax and state aids for revenues is increasing. 10/4/93 -2- Councilmember Kalligher asked whether the staff anticipated the valley would ever use up the 40% allowance for working capital in the fund balance formula. The City Manager responded probably not and the fund gap will be at approximately 31% this year. The Director of Finance stated if the City did not have a fund balance, the City would have to borrow money to pay its operating expenses until the property tax revenue came in. Councilmember Kalligher asked staffs opinion as to whether the City would be alright this year with the amount they have. The City Manager responded the City is well within the range deemed appropriate by the Auditors. Councilmember Rosene questioned whether the general fund balance can be considered a savings account. The City Manager responded it is not extra money and is needed to pay operating expenses for the City until the property tax revenue and state aid is received. Councilmember Rosene suggested the City seek legislative help in getting the state aid funding sooner. The Director of Finance replied the State of Minnesota solved one of its budget problems a few years ago by delaying payment to the cities until the second half of the year. The City Manager stated on January 1 of each year the City should have a fund balance available. The fund balance needs to have an amount that will cover the deepest valley that could happen. Mayor Paulson asked staff what type of return the City was receiving on their money. Staff responded currently the City is receiving between 5.7 and 5.8% and next year the average will be around 5.4 %. Mayor Paulson asked if that was received on all the City's revenues. The Director of Finance responded they try to keep the checking account balance as small as possible and transfer money to the checking account only when it is needed for disbursements. The City Manager reported the City has one disbursement fund (checking account). Money is transferred from various funds when payments by check are necessary. The City Manager stated Cliff Hoffman had suggested money be moved from the general fund to the central garage service fund in the amount of $750,000, however City Administration has decided not to do this due to the fact the cushion would be removed. There is concern on the part of City staff if large amounts of money are seen to be remaining in funds by the State that State Aid may be decreased. Mayor Paulson asked if other funds could be set up to transfer some money into. The City Manager responded the safest place for money is spent. Councilmember Rosene asked how Phil and Bill feel about this. The City Manager replied the issue has been explained to them but he does not know for sure if they understand. Councilmember Scott stated there is a history of the State hitting those cities that are able to keep some money on hand. 10/4/93 -3- I The Director of Public Works introduced Public Works Coordinator Diane Spector who gave a more detailed presentation of the 1994 Capital Improvements Program (CIP). The Public Works Coordinator stated a capital improvement is defined as any major non- recurring expenditure or any expenditure for physical facilities of government. Typical expenditures are the cost of land acquisition or interest in land, construction of buildings or other structures; construction of roads, utilities, or parks; and acquisition of vehicles and data processing and other equipment. Aside from vehicles and equipment, capital improvements are typically funded from revenue sources other than the general fund. Maintenance of these improvements is primarily funded by the general fund. The CIP is directly linked to the goals and policies, land use and community facility sections of the Comprehensive Plan, since these sections indicate general policies of development, redevelopment, and the maintenance of the community. The primary objective of the CIP is to integrate the specific goals, policies, and recommendations contained in the City's plan with its capability to pay for and maintain capital improvements. The Public Works Coordinator reviewed the various sections of the CIP as follows: PUBLIC WORKS 1. Street Improvement and Maintenance Programs The City's programs relating to streets under its jurisdiction include the following: - An annual high -level maintenance program which includes the sealcoating of all City streets on an 8 -year (average) cycle. - The Municipal State Aid Street program, to which the State of Minnesota provides annual funding ($842,110 in 1993 to MSA Account #1496) to maintain and improve the 21.3 miles of collector streets which are designated as MSA streets. - Review and possible construction of traffic signal systems at intersections with growing traffic volumes. - Several landscaping projects to enhance the appearance of the City. - Rehabilitation and reconstruction of non -MSA streets upon receipt of petitions for such improvements. The established policy provides that one -third (1/3) of the costs for such improvements will be levied as special assessments, while two - thirds (2/3) of those costs will be paid by City funds. 10/4/93 -4- 2. Sidewalk/TrailImprovements The City has established and constructed a comprehensive sidewalk system which serves all major activity areas and corridors of pedestrian traffic. Only a few segments of this system remain to be completed. Funding for sidewalk and trail improvements is provided by two accounts within the Municipal State Aid Construction fund: a. MSA Local Account #2900 - the source of funds for this account consists only of investment interest earnings which have not been appropriated to construction projects or other costs. b. MSA Local Account #2911 - The source of funds for this account consists of surpluses from projects which have had more than 100% of the project cost recovered due to duplicate charges to the regular MSA fund (Account #1496) and special assessments. Activities included in the CIP for future consideration include: - Construction of several trail segments, with emphasis given to segments which connect major trail systems. - Some high priority sidewalk segments. Consideration of the Twin Lake Trail system and trail head improvements is shown under Parks and Recreation. Councilmember Scott questioned the NSP Easement Trail, Knox to Dupont suggested improvement in the amount of $50,000. Staff responded this would include blacktopping and also landscaping. 3. Water Utility Proposed activities relating to the public water supply / distribution system include the following: - A routine well inspection and maintenance program to assure the continued functioning of the existing wells. - Painting of the water towers. - Installation of various O &M features to improve the operability of the system. 10/4/93 -5- Consideration of construction of two new supply facilities (one storage reservoir and one additional well) to assure the system's ability to provided needed capacity during peak demand periods and for fire protection. Consideration of construction of a tie -in with Brooklyn Park's water system, to help meet demand during emergencies (e.g. a major fire, a disaster, the breakdown of one or more wells). Installation of various water distribution system improvements to assure the system's ability to deliver needed capacities to all portions of the City during peak demand periods and for fire protection. Mayor Paulson questioned whether any water quality improvements were included in the CIP. The City Manager responded the Council a few years ago decided the cost of a treatment plant for the City was not worth the expense. The Director of Public Works added the cost of water to residents would more than double with a treatment facility and the City found that the residents are basically satisfied with the quality of their water. 4. Sanitary Sewer Utility Proposed activities relating to the sanitary sewer collection system include the following: - A routine sewer and lift station inspection and maintenance program. - Replacement of the existing lift station monitoring system, to improve its reliability. - Installation of new sewers as needed to serve new developments or redevelopment areas. - Replacement of several segments of sewer which have been identified as needing replacement by the television inspection program. - Replacement of one major lift station and associated force main, to insure its reliability. - Replacement of a trunk line sewer main originally constructed from corrugated metal pipe (CMP). All costs for sanitary sewer system O &M and improvements are financed, through sewer use charges, capital improvement bonds, connection charges, and lateral assessments. Sewer use charges and connection charges are adjusted annually based on a comprehensive rate study analysis which reviews operation, maintenance, 10/4/93 -6- depreciation, and construction costs, as well as sewage treatment charges from the Metropolitan Waste Control Commission (which provides wastewater treatment for the entire Twin City metro area). 5. Storm Drainage Utility Proposed activities relating to the storm drainage system include the following: - Operational activities include storm drainage system maintenance and a street sweeping program. - Management activities include participation in two Watershed Management Commissions. These activities include the development of a local storm water management plan as required by the Minnesota Surface Water Management Act, and the development of a public education program relating to surface water management. - Major improvements to be considered in the period 1994 -95 include construction of "Gateway" storm drainage pond and park in the southwest quadrant of the I- 94 and Brooklyn Boulevard interchange; and a joint project with the City of Minneapolis to construct a drainage pond to serve the Brookdale commercial area and some residential areas. Storm drainage improvements proposed to be completed in conjunction with street improvement projects include the Northwest neighborhood (west of Brooklyn Boulevard and north of I -94); 57th Avenue from Logan to Lyndale; and 63rd Avenue west of Brooklyn Boulevard. All costs for storm drainage system O &M and improvements are financed through the storm drainage utility (SDU) user fee system which was adopted in 1991, capital improvement bonds and special assessments. SDU use charges will be adjusted annually based on a comprehensive rate study analysis which reviews all costs relating to the storm drainage system. PARKS AND RECREATION Park and Recreation facilities were comprehensively reviewed in 1993. While continuing the current level of operation and maintenance of the park and recreation system /program, the Capital Improvements Program anticipates the following expenditures: - Replacement of playground equipment in most of the City's neighborhood parks over the next three years. - Acquisition of new park land. 10/4/93 -7- Development of the Twin Lake/Preserve/Kylawn nature area and Twin Lakes Trail system, in cooperation with the cities of Crystal and Robbinsdale. Comprehensive review of shelter building needs and repair or replacement of most shelter buildings over the next five years. Construction of a new park/open space area (currently referred to as "Gateway Park ") in the southwest quadrant of the I- 94Brooklyn Boulevard interchange. This park is in conjunction with the storm drainage pond to be constructed in 1994. A major study of the Shingle Creek corridor, from the south City limits, through the golf course, Central Park, and Palmer Lake to the north City limits. The study would encompass recreational opportunities, water quality issues, and condition of existing facilities. Consideration of major new facilities, including a hockey arena or a golf dome. These items would only be considered by referendum. Some items are proposed for funding from the Capital Improvements Fund. Other major capital improvements are proposed to be funded with general obligation bonds authorized by referendum approval. A listing by park location was provided to the Council with the proposed improvements shown for each park. Mayor Paulson asked if improvements can be moved from one year to the next. The City Manager responded yes these are rough estimates and will come before the Council again for final approval. Councilmember Kalligher asked if all improvements were made would the City conform to ADA Standards. The City Manager responded they would be showing an attempt to conform. Total conformation will be done over a ten -year period but this would be a good start. 2. Data Processin Proposed major improvements include: - Upgrade the Local Area Network (LAN) in the Civic Center, and the remote access with the City Garage and Heritage Center. - Installation of Mobile Digital Terminals (MDTs) in Police and inspection vehicles. - Replacement of existing cash registers in the Liquor Stores, Parks and Recreation, Administration, and the Earle Brown Heritage Center. 10/4/93 -8- Acquisition, replacement, or upgrade of major application, such as replacing the U1tiMap GIS with Arclnfo and ArcView; adding AutoCAD; replacing the LOGIS financial investment module with a PC based package, and acquiring an imaging system. - In the long term, installation of a mini - computer in the Civic Center to convert Brooklyn Center to a LOGIS distributed site. Continued replacement of hardware and software as necessary. 3. Vehicles and Equipment The City policy for the replacement of vehicles and equipment establishes a projected reasonable life cycle for each item. Annually, the life cycles are reviewed and updated on the basis of experience or changed circumstances. New vehicles and equipment are proposed for addition to existing inventories and replacement schedules when new needs are clearly demonstrated. Additions of new vehicles and equipment are requested through the annual budget process. In 1994, the City will implement a Central Garage Internal Service Fund, which will own all vehicles and major equipment. The cost of owning (depreciation, license, insurance, overhead) and operating (preventative maintenance and repair) vehicles and equipment will be charged back to the departments using the equipment. Replacement of existing equipment would be funded from the Fund. The addition of equipment would be considered for funding from a variety of sources: The General Fund, enterprise funds, etc. The Public Works Coordinator added if vehicles are replaced with a similar vehicle it can be covered with Central Garage fund money. Councilmember Scott questioned if police cars could all be painted in the same design. The City Manager responded the reason for the different paint designs is due to the fact of the age of the vehicles. The City has now chosen a design that will be used on all future purchased cars. COMMUNITY DEVELOPMENT 1. Community Development Redevelopment of Brooklyn Boulevard is currently in its second phase of study. The first phase took a basic approach to identifying options for redevelopment. The second phase will identify specific themes, improvements, planning considerations, etc., to be used in guiding redevelopment. 10/4/93 -9- Community Development continues to work together with the Brookdale Shopping Center to provide support for redevelopment. Community Development and Engineering are working together with Brookdale to develop options for meeting storm drainage and water quality requirements which will be in effect if Brookdale undertakes any major remodeling and expansion. It is anticipated that the program of purchasing dilapidated single - family houses and apartment buildings will continue as funds are available. 2. Heritage Center Operations - Several minor remodeling projects are shown for consideration. These include both remodeling to meet the requirements of the Americans with Disabilities Act and other maintenance and repair. - Included for consideration is acquisition of additional land near the Heritage Center to serve as overflow parking and the eventual construction of the G barn. - Replacement or acquisition of several items of major equipment are included for consideration. Community Development activities are funded from a combination of TIF revenue, Community Development Block Grant (CDBG) funds, the EDA levy, and Heritage Center revenue. A category of "Other funds" is shown to indicate that funding has not been identified for some proposed activities. FACILITIES AND EQUIPMENT 1. Government Buildings Proposed major improvements to be considered over the next several years include: - Interim remodeling to the upper level of City Hall to alleviate severe space needs, improve the Council Chambers, and begin to meet ADA accessibility requirements. The proposed project would also provide short -term overflow office space for the Police Department and begin to address air quality needs. - Major remodeling of the Central Garage to meet life safety, EEO, ADA, building and fire code, and space needs. - An addition to the City Hall building with the emphasis on providing additional space for the Police Department and upgrading mechanical systems. 10/4/93 - 10 - An addition to the Community Center with the emphasis on providing space for senior activities. Construction of an additional storage building at the Central Garage to provide increased protection for the City's fleet of vehicles. Construction of additions to both of the City's fire stations to provide improved training facilities and increased vehicle storage space. Proposed funding for the improvements would come from several sources. In the j short term, remodeling of upper City Hall and the Central Garage would be funded primarily from the Capital Improvements Fund. The water and sewer utilities would contribute to the cost of the Garage remodeling. I Other improvements would be considered for funding from General Obligation bonds. It is expected that a referendum considering authorization of the sale of bonds would be placed on the ballot in late 1994 or early 1995. Councilmember Rosene questioned whether the City could levy $100,000 over five years to purchase a future radio system for the City. The City Manager responded no a bond can only be issued for principal and interest to pay existing debt. The City Manager reviewed briefly the bond issue proposal and stated given the major areas that would have to be addressed in the bond issue (including police department expansion, community center expansion- senior activities, fire stations remodeling, and park needs) it would not be feasible to do all the necessary preliminary work for a major bond issue to bring before Brooklyn Center voters prior to the spring of 1995. The City Manager provided some very preliminary cost estimates for addressing space needs, ADA issues, and_ our soft tissue injury problems: 1. If the Council is interested in developing a modern council chamber capable of effectively cablecasting meetings and eliminating the problems currently had in the council chambers, the cost of the remodeling would be in the area of $150,000. 2. The police department is in need of additional office space. There is also a similar need for the fire chief and his secretary. The current space available in the lower level of city hall cannot be remodeled and used any more efficiently than it is. Proposed for Council consideration is the lease of a temporary "classroom- type" building to be placed where the police cars currently park with a connection built into the investigators area on the lower level. The office space would then be connected to the city hall and relieve the overcrowding for the police department and the fire chiefs office. The cost of equipping the temporary building and setup and construction of the connection and the necessary internal remodeling within the department would 10/4/93 cost approximately $50,000. There would be an annual rental fee for the "temporary" building of approximately $15,000. 3. To address the space shortages for the community development department and the upper level of city hall, suggested is a remodeling project which would cost $75,000 to $100,000 for construction. This remodeling would include the ADA required modification to the existing restroom facilities on the upper level. 4. At the community center there is a need for clerical and administrative space. It is incumbent to move work areas away from the public counter areas, as it is almost impossible to work in this situation. It- is - anticipated that remodeling in the community center would expand either into the open "art display area" on the north side of the building or possibly eliminate the pottery and kiln room and turn it into office space. This remodeling would cost approximately $25,000. 5. The City Council previously stated concern that interim projects would cost significant dollars and the results of the interim project would not be able to be used in long -term solutions. In attempting to address this problem in addition to the construction remodeling estimates mentioned above, we are proposing to utilize the space on the upper level of city hall much better and address the soft tissue injury workers' compensation problem with the purchase of all new adjustable workstations and cubicles for most of the clerical and administrative personnel. These workstations would include all adjustable work surfaces and computer stations and screen panels. The cost of equipping most all of the workstations in the upper level and lower level of city hall would be in the area of $250,000 to $300,000. The beauty of using these modular adjustable workstations is they can be moved and reutilized in any future building expansion or remodeling. The total cost of these improvements would be in the range of $600,000 to $700,000. If the Council chooses to go ahead with the council chamber remodeling, that would be a permanent remodeling and would not have to be redone at a future date. In addition the modular adjustable workstations could be moved and salvaged when a long -term improvement is made and their costs would not be wasted. More than half the cost of the proposed remodeling would not be wasted when a future long -term expansion is implemented. Because it will take at least three to four more years to implement any long- term solution it would be necessary for Council ry to consider some type of interim action.. It seems to be in the City's economic interest and in the interest in avoiding physical problems for City employees to move quickly on modifying the workstations and purchasing adjustable ones to eliminate the workers' comp risk. Councilmember Scott stated the current Council chambers looks more like a court room than a Council chamber. The City Manager responded originally the Council chambers was used by the Court. Councilmember Rosene suggested the Council decide soon where they 10/4/93 -12- want to be located so some other issues can be resolved. Councilmember Rosene questioned whether the current Council chambers could be remodeled to use the height available in the room. The Public Works Director stated no due to the accessibility issue and circulation. Mayor Paulson asked if a bond issue would be more likely o ass on a special inter est Y Y P P versus general interest. The City Manager suggested a consultant make a presentation to the City Council during an upcoming worksession. The City Manager stated such a consultant would charge approximately $5,000 - $7,000 which would include the community survey. Mayor Paulson asked what was the action required by Council at this time and staff responded if Council wishes they can direct staff to develop a plan for the bond issue. Councilmember Kalligher asked staff to research how much Constitution Hall is used and what the impact would be if the Council chambers was moved to Constitution Hall. Councilmember Scott stated she is surprised more city employees have not complained about the space situation. She added she feels the current Council chambers is adequate and should not be remodeled now and then have the Council move to other chambers. Mayor Paulson stated the Council needs to find out what the citizens of Brooklyn Center are willing to pay for in a bond issue. Councilmember Scott asked what the solution to the space shortage problem is for now. The City Manager stated the Council can pick and choose which areas they want to remodel and how they want to handle expansion. Councilmember Kalligher asked staff how many workers' comp cases are now pending. Staff responded 5 with 3 occurring in the past 12 months. Staff was directed to schedule Bill Morris, bond issue consultant, for the next Council worksession to discuss bond issue process. Councilmember Scott announced the upcoming League of MN Cities meeting on October 21, 1993, 2:30 - 9 p.m. at the ,Park Inn. Discussion of Development of a RFP Process for Attorney's Services The City Manager reviewed the Council had suggested going to a RFP for attorney services. Mayor Paulson asked staff if the Council could get a listing of the bills that have been received by the City for attorney services and a breakdown of the bills. 10/4/93 - 13- Councilmember Kalligher asked if every City Attorney charged for their attendance at City Council Meetings. The City Manager responded it is generally included in the retainer fee. Councilmember Rosene questioned why the typical charges for different cities were different when provided by the same legal firm. The City Manager responded the fees depend on how much work is done by paralegal. Councilmember Kalligher stated she would like a RFP issued for attorney services. Mayor Paulson directed staff to prepare for Council approval at the next regular Council meeting the request for RFP for legal services. The City Manager stated he would be prepared at the meeting after next. ADJOURNMENT There was a motion by Councilmember Rosene and seconded by Councilmember Kalligher to adjourn the meeting. The motion passed unanimously. The Brooklyn Center City Council adjourned at 10:15 p.m. Deputy City Clerk Todd Paulson, Mayor Recorded and transcribed by: Debbie Wolfe TimeSaver Off Site Secretarial 10/4/93 -14-