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HomeMy WebLinkAbout1992 12-10 CCM Special 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 SESSION DECEMBER 10, 1992 CITY HALL CALL TO ORDER The Brooklyn Center City Council met in regular session and was called to order by Mayor Todd Paulson at 7:05 p.m. ROLL CALL Mayor Todd Paulson, Councilmembers Celia Scott, Jerry Pedlar, and Philip Cohen. Councilmember Dave Rosene arrived at 8:25 p.m. Also present were City Manager Gerald Splinter, Finance Director Paul Holmlund, Director of Planning and Inspection Ron Warren, EDA Coordinator Brad Hoffman, City Assessor Mark Parish and Council Secretary Nancy Berg. CONTINUED PUBLIC HEARING The City Manager stated the Brooklyn Center City Council conducted an initial state mandated hearing on November 30, 1992, and at that meeting the City Council adjourned the hearing to December 10, 1992. He explained State Law requires municipalities to adopt their budget and certify their tax levies at either the initial or the adjourned public hearing date for their annual budget, meaning the Brooklyn Center City Council must adopt its budget and tax levies on the evening f December 10, 1 2 g e 99 . The City Manager reminded the Council the Financial Commission recommended the City Council cut $75,000 from the proposed 1993 budget, add this $75,000 to the contingency fund and approve the tax levy as proposed. The City Manager explained this is a continuation of the public hearing, and also staff has provided answers to questions that were raised at the first public hearing. The City Manager summarized the answers to questions from the public. 1. Why has the number of full -time employees increased while the population has decreased over the past ten years. The City Manager explained the City's population decreased from a high of approximately 32,000 to the current level of approximately 29,000. During this period of time there was a net increase of nine fulltime employees. During this 10 year period 19 new positions were added and 10 existing positions were eliminated. Of the new 12/10/92 - 1 - positions added, 13 were in the Police Department. The Police Department was responsible for most of the increased employees, and was a result of the City's commitment to combating crime and drugs. 2. Mr. Perry, 3831 Eckberg Drive, testified that his proposed tax had increased nearly $500 while the value of his home had been reduced by $4,500. The City Manager explained the tax increase was caused by a change in Mr. Perry's homestead classification. 3. Why does the City of Brooklyn Center replace vehicles versus rehabilitating them? The City Manager stated the City currently considers replacing small trucks after five to seven years, and larger trucks after 10 to 12 years. The City currently replaces drive train elements in the larger trucks to extend their life beyond the 10 to 12 years. 4. The City Manager answered the questions raised by Ms. Nancy Carlson, 6024 Aldrich Avenue North. a. Ms. Carlson suggested the City Manager is a member of the Brooklyn Center Taxpayers Association. The City Manager stated he is not a member of the tY g BCTA. b. The Earle Brown Heritage Center is running in a deficit. The City Manager agreed this is true; however, it has always been projected and a matter of public record that the Heritage Center would operate in the red for a period of three to five years. At the current growth rate, it is anticipated the Heritage Center will be operating in the black in 1995. C. Why is the Earle Brown Heritage Center hiring another salesperson, and the salaries at the Heritage Center are too high. The City Manager explained the Heritage Center has requested a third salesperson for the simple reason it desperately needs additional help in this area. As to the salaries of the sales people and the others noted at the public hearing, the sales people tend to be at the lower end of the pay scale as opposed to the competition. The City Manager explained the Heritage Center sales people are paid $27,000 to $32,000 without commission, and stated that Atrium Catering is currently hiring at $35,000 to $43,000 plus incentives. d. Why does the Earle Brown Heritage Center need $54,000 in capital outlay? The City Manager stated the amount is $35,716, and the Center will make a profit from renting this equipment to companies using the facility. 12/10/92 -2- e. The labor expenses run 58 percent and 35 to 40 percent is the norm. The City Manager answered the actual ratio is 51.7 percent, and all business would have to carry a capitalization cost such as a mortgage to their expense side. If such an expense were applied to the Inn, the labor to expense ratio would be around 35 percent. f. The Inn is projected to lose $139,600 in 1993. The City Manager answered yes, it is correct the Inn will experience losses, but the projected amount is $122,904, not $139,600. Ms. Carlson had also questioned why a hostess at the Inn would earn $28,100. The City Manager explained this amount reflects an estimate of the part -time hours which might be needed to cover the Inn seven days a week, it is not one person's salary. g. Why spend $30,000 per year on a business retention/job expansion program? The City Manager explained as Brooklyn Center starts to redevelop, it is vitally important to the future of the City that it retain the businesses currently in the City. He further explained the survey was funded with a federal grant (CDBG funds), not property tax dollars, and this constitutes the only activity or program directed at the businesses of Brooklyn Center. h. The City Manager explained the EDA Coordinator position is not new, and under the City's budget, it is proposed to consolidate the EDA with the Planning and Inspections Department. i. Young families no longer want to move into Brooklyn Center. The City Manager stated in 1992 Brooklyn Center received $2,187,157 in first time home buyer mortgage money. j. The budget is fat, the City is inefficient, poorly managed, and staff is incompetent. The City Manager replied the average homeowner pays slightly more than $20 per month for all the services the City provides. These services include police, fire, parks, community center, street maintenance, snow removal, and many other services. The City Manager further stated the Financial Commission has reviewed the budget in great detail and has approved it. The City Manager informed Council staff received notification from the League of Minnesota Cities that the City's 1992 December Local Government Aid payment will be approximately $140,000 more than was anticipated. He stated staff has reviewed a number of options available to the Council on the use of this money, and it is recommended the Council not fund any ongoing operating cost increases with this one -time windfall in 1993 which will not be available to fund these programs into 1994. Mayor Paulson opened the meeting for the purpose of a public hearing regarding the proposed 1993 City of Brooklyn Center budget at 7:25 p.m. 12/10/92 -3- Joseph Noonan, explained he had viewed the first public hearing on cable television, and had also reviewed the proposed budget. Mr. Noonan disapproved of the proposed budget, and asked the Council revise the budget to accommodate for the shortfall, rather than increasing taxes. He explained the federal and state governments recently attempted, through a tax increase, to balance their budgets, and it did not work. Mr. Noonan defined the role of government is to learn to live within the City's means. He stated it was a disservice by City Council to continue to buy -off on the psychology that it can pass on the increase because the residents are getting a good deal. Mr. Noonan stated members of the Council had a negative attitude. He mentioned Councilmember Cohen had stated he did not want to micro- bisect the budget to find a decrease, and this is inappropriate. He also mentioned Councilmember Scott had explained personnel constitutes 59.8 percent of the budget and this figure is high because of unions. Mr. Noonan felt the fact the City has union contracts does not prevent the Council from reviewing the salaries. Mr. Noonan stated as a business owner himself, the Council must operate the City like a for - profit business, and each councilmember must be open to change. Mr. Noonan agreed the City should use bench- marking by comparing itself to both for - profit businesses and other cities. He suggested the City become a broker of services. He also suggested the City forego its capital equipment, and look at contracting these services. Mr. Noonan recommended the City discontinue the liquor businesses, sell the golf course, and also sell the Earle Brown Heritage Center. He further recommended the City lease property rather than own, and to aggressively seek competitive bids for all services such as legal, office supplies, insurance, etc. Mr. Noonan strongly recommended the City decrease the size of its staff, and he observed that many of the managers' salaries are too high. He further stated Council must be committed to keeping businesses in Brooklyn Center. Mr. Noonan expressed concern about the attitudes of the City Council toward one another and stated the Council has been unfair to Mayor Paulson. Joe Hall addressed the Council stating he is the Mayor of Osseo, the city with the highest tax increase. Mr. Hall stated city staff is only accountable through the City Council, and the staff at Osseo did not do its job; they were not levying enough money. Nancy Carlson, 6024 Aldrich Avenue North, explained she had not stated the City Manager was a member of the BTCA. She said she had stated the City Manager was the BTCA's hired gun. Councilmember Cohen asked for an explanation. Ms. Carlson explained this is someone who shoots down creative, imaginative ideas. Ms. Carlson asked how much was borrowed to finance the Earle Brown Heritage Center. The City Manager answered approximately $11 million, which will be paid back in the year 2002. Ms. Carlson asked if there is any money remaining from the $11 million. The City Manager stated no, explaining the City cannot sell bonds for more than the amount of the 12/10/92 -4- construction project. When a City sells bonds, it must expend the money for that purpose. Ms. Carlson called the Council's attention to a proposed new project entitled COOP NW. She stated this is something the City cannot afford. Ms. Carlson also asked Council to not allow the conversion of two- bedroom apartments into three - bedroom apartments. Gary Shallcross addressed the Council asking that his position be modified rather than eliminated. Mr. Shallcross provided Council with a memo outlining the proposed position and stated it is a position he believed the Council will need to create, and he asked the Council to consider him for the position. Fred Capshaw, 6910 Willow Lane, stated the proposed COOP NW program is very exciting to him. He stated the program will provide training for people of color and women to become police officers, at no cost to the City. He further stated he is receiving excellent services from the City of Brooklyn Center, and he believed the staff was doing a very good job of preparing a budget during such difficult times. Mr. Capshaw believed the budget was very conservative, and staff should be complimented. Mr. Capshaw explained he is the chairperson for the Communications Task Force. He explained the Communications Task Force will be joining forces with the Chamber of Commerce to prepare a brochure and a video of the services available to the residents of Brooklyn Center. He explained the brochure and video will be prepared at no cost to the residents, and it will be provided to realtors, service clubs, PTAs, school clubs, etc. to promote the City of Brooklyn Center. Mr. Capshaw spoke in favor of the proposed half- time communication position which will promote the City through press releases, major events, attractive logos and slogans. He stated the City must project a positive image. Mr. Capshaw informed Council there will be a meeting in January for the public to provide input for the brochure and video. Don Escher, chairman of the Financial Commission, reviewed the budget process for the Council. Mr. Escher stated the Financial Commission is comfortable with the levy, however, it does not like it. He explained the Financial Commission will be looking in more detail at staffing and capital outlay in 1993. He reiterated the Financial Commission does not like the levy of 8 percent, but it understands it, and the Commission will be doing more to evaluate the City and its services in the next year. Councilmember Pedlar asked the amount proposed for all capital outlay in 1993's budget. The Director of Finance answered $471,493. Councilmember Scott asked if the Brooklyn Center liquor stores were losing money. The Director of Finance answered the liquor stores have never lost money since their beginning in 1959, and average $125,000 to $155,000 in net profits. Councilmember Pedlar asked why the funding for the canine unit can now come from funds requested for domestic abuse. The City Manager answered at the time of preparing the 12/10/92 -5- budget, the police department was unaware other cities would be joining and thus decreasing the costs. Councilmember Rosene stated the residents want more police officers, and it was his understanding Chief Hampton was also asking for additional officers. He asked Council to find a way to fund another police officer. Councilmember Pedlar agreed with Councilmember Rosene, however he stated the Police Chief is new and is looking at a reorganization of the police department. Councilmember Pedlar suggested Council delay recommending the addition of another police officer until adequate data can be reviewed and evaluated. Mayor Paulson asked the City Manager to share Chief Hampton's memo requesting additional police officers. The City Manager agreed to provide Council with a copy, and he explained Chief Hampton will be reconsidering his request as some of the figures he was looking at misrepresented response time to emergency calls. Councilmember Rosene stated he would like the Council to show support for the new Police Chief. Councilmember Pedlar stated the new Police Chief will need to collect adequate data to justify additional police officers. Councilmember Pedlar further stated each department head must be accountable for their department. Mayor Paulson expressed frustration with the fact the residents want more protection, the Council wants more protection, and the Police Chief wants more protection, then why doesn't it happen. Mayor Paulson asked that all data supporting additional officers be provided to Council. Councilmember Pedlar asked if the Police Chief has data supporting his request, and if so, was the information being repressed. The City Manager answered no, he did not believe it had been. The City Manager explained it is his responsibility to bring the Council a budget, and he was not recommending a change at this time because he believed some of the data provided was flawed. Councilmember Rosene stated the Council must show it is listening to the public, and the Council must provide a financially responsible budget. Councilmember Cohen agreed with Councilmember Rosene, however Council cannot give everyone what they want, the City cannot afford it. Councilmember Cohen stated it comes down to leadership by the Council. The Police Chief has only been with the City for 60 days, and the Council must wait until the Chief has had time to fully evaluate the figures and to speak with all of the officers. He further stated the goal should be more in the area of crime prevention; keeping the people who commit crimes off the streets. Councilmember Cohen suggested expanding the neighborhood crime watch programs. He further agreed the COOP NW was a good example of cities coming together to provide better services, and the multi- community approach was the answer as cities cannot continue to provide everything on their own. 12/10/92 -6- Councilmember Cohen asked the City Manager to review the request with the Police Chief and provide Council with a final analysis. Councilmember Scott stated she had spoken with the Police Chief and she understood he was looking at a major reorganization. She stated he has not had time to sit down with all the people in his department, and he was not looking at requesting additional officers in 1993, he was looking into the future. Councilmember Scott agreed Crime Watch is growing and working, and the Police Department is looking at putting an article in the paper every week about crime prevention. Councilmember Scott stated the Police Department must be educated to deal with the ethnic changes in the community. Councilmember Scott also stated she had reviewed the bench - marking process, and believed it to be valuable, but cautioned the City to be careful in its comparisons. She urged staff to continue to look at contracting out services but only if it is good service, and to continue to look at joint powers. Councilmember Rosene reminded Council the City Manager recommended eliminating the water tanker ($77,750) and placing that amount in the Contingency Fund as recommended by the Financial Commission. Councilmember Rosene asked, on behalf of the Human Rights and Resources Commission, that an additional $2,750 be reserved to assist the funding of the February meeting of the Human Rights & Resources Commission with all commissions. Councilmember Rosene also asked that funds be provided to assist qualified residents to participate on commissions by providing them with child care and possibly a simple dinner. Councilmember Rosene explained it is the wish of the Human Rights and Resources Commission that all residents be given an opportunity to serve on commissions and the lack of funds to obtain child care or a meal should not prevent them from participating. Councilmember Pedlar asked where the City is projected to be at the end of 1992 as far as the operating budget is concerned. The Director of Finance answered it is projected the City will fall within $100,000 positive, which will go back into the general fund balance. Councilmember Cohen stated the Human Rights and Resources Commission should look into the legalities of providing meals and child care, and also the administration of such services to target those it wishes to attract. Councilmember Cohen explained the City had tried to sell the Earle Brown buildings, and had put them on the register of National Historic Sites. He further stated the decision to move forward with the Earle Brown Heritage Center was a public decision to give the City an identity. Councilmember Scott agreed with the capital expenditures for the Earle Brown Heritage Center stating this is a money - making avenue for the Center. Councilmember Scott thanked all the residents who came forward to address the Council and give their suggestions and opinions. 12/10/92 -7- Councilmember Pedlar stressed the City must begin to operate like a business. He stated staff is doing a good job, but staff must always be reevaluating and looking for better ways to manage the City. However, he was very distressed by the proposed elimination of one fulltime position and the cutting of one position from fulltime to parttime. Councilmember Pedlar reminded Council he is very concerned about the high number of management positions. He disagreed with the elimination of the planning position and expressed concern with the high amount of management in the Public Works Department. Councilmember Pedlar recommended the communication position funds be moved into unallocated funds until approval by the new council next year. Councilmember Rosene inquired what the cost of funding the two Planning Department positions would be; why the additional $140,000 of Local Government Aid received in 1992 was not used to continue the two positions; and whether the Director of Finance believed that there would be substantial reductions in Local Government Aid for 1993. The Director of Finance responded that it would cost approximately $67,000, or approximately one -half of the $140,000, to continue the two Planning Department positions. He also responded that the $140,000 in additional Local Government Aid was not used to continue the positions because the League of Minnesota Cities had recommended that cities not spend the additional funds for any ongoing operating costs. He also responded that he believed that it was very likely that their would be substantial reductions in 1993 Local Government Aid. The City Manager explained when expenses are to be reduced, this means a cut in personnel. Councilmember Pedlar reiterated his concern over too many managers. He suggested the workers be empowered -- given more responsibilities on their own without constant supervision. Mayor Paulson stated the Council must look at removing mid -level management. He further stated he did not want people currently employed to be eliminated. He suggested cuts should be made when the opportunities arise through retirements, resignations, etc. Councilmember Pedlar stated he did not want to make these upper management cuts now, he was looking to make them in the 1994 budget. He disagreed strongly with the elimination of the Shallcross position. Councilmember Pedlar stated it seemed staff had found funds to provide a canine unit, and has now decided not to install the water tanker, are there other areas the budget could be cut. The City Manager explained Council had requested further cuts, and he was recommending the elimination of the water tanker because it was the last capital outlay recommendation. Councilmember Pedlar stated his comments were not to criticize staff -- staff has done a very good job. The City Manager stated Council must make a judgment about these choices, and he did not recommend the canine unit nor the $75,000 contingency fund. The City Manager stated the only way to make further reductions, was to eliminate personnel. 12/10/92 -8- Councilmember Cohen stated he had very deep feelings for the personnel involved. He stated he accepted the recommendations of the City Manager and if the Council agrees to the reorganization, he requested a resolution be prepared setting forth the history and reasoning for the reorganization of the department, and also a resolution as requested by the League of Minnesota Cities stating the disposition of the $140,000 LGA aid. Donn Escher, chairman of the Financial Commission presented the history and procedures followed by the Financial Commission in determining its recommendation. The Commission feels strongly that any additions to the budget by the Council be offset by decreases. He also stated the Commission supports the concept of the reorganization. Councilmember Pedlar asked if the Financial Commission will be addressing the levels of management. Donn Escher answered yes, in 1993. Mayor Paulson stated the work of the Financial Commission has been good, and agreed the Commission must take a look at the levels of management. Gary Shallcross clarified he is not proposing to retain his current position, but he was asking to be considered for employment with the EDA. The City Manager used an overhead slide to show the Council the department reorganization. Councilmember Cohen asked how the City newsletter is distributed. The City Manager answered it was handled by the Swim Club, 6 times a year, at a cost of $1000 each time. Councilmember Cohen asked the Park and Recreation Commission look at other clubs who might be interested and put it out for bids. RESOLUTIONS The City Manager presented a Resolution to Adopt the 1993 Proposed Budget. There was a motion by Councilmember Scott and seconded by Councilmember Rosene to revise the Resolution to Adopt the 1993 Proposed Budget to show $77,500 be taken from the Park budget because of the elimination of the water tanker, $75,000 be added to the contingency Fund,$2,500 be added to the Council's Professional Services account, and $140,000 LGA aid remain in the Fund Balance. The motion passed unanimously. RESOLUTION NO. 92 -269 Member Dave Rosene introduced the following resolution and moved its adoption: RESOLUTION TO ADOPT THE 1993 PROPOSED BUDGET The motion for the adoption of the foregoing resolution was duly seconded by member Celia Scott. 12/10/92 -9- Mayor Paulson stated there had been a lot of good discussion, and based upon those comments at the hearings, he would like to see changes in the budget. Mayor Paulson stated he would be voting against the budget and the levies. I Councilmember Pedlar stated staff had done a very good job, however he did not like to support the elimination of positions. He stated he had mixed emotions on this budget, but Council must move forward. He further stated he would reluctantly support the budget. Councilmember Pedlar made a friendly amendment to the motion that the funds for the communication position be moved to unallocated funds to allow for review of this position by the new council. Mayor Paulson stated the communication position had been scrutinized by the Council, the staff, the newspaper, and just about everyone. He felt after all the examination of the position, it had become a very good position, and he wanted it to become a dynamic sparkplug for the community. Councilmember Pedlar stated the councilmembers -elect also have an opinion on this position and they should be given the opportunity to review. Councilmember Pedlar stated he would not be able to vote for this resolution without this amendment. Mayor Paulson reminded Councilmember Pedlar he is in favor of the marketing position for the Earle Brown Heritage Center, and this position is every bit as important. Councilmember Scott reminded Council a budget must be adopted tonight. Mayor Paulson stated he was not voting against the budget because of one particular item, it was the overall budget. Councilmember Scott reiterated a budget must be adopted tonight, and Council can make cuts anytime. Councilmember Cohen stated he had no problem with placing the funds for the communication position in unallocated funds. There was a motion by Councilmember Pedlar and seconded by Councilmember Cohen to amend the resolution to include that the one -half time communication position funds be moved to the unallocated a ocated funds and be addressed b sse y the new Council following instatement in January, 1993. Councilmember Cohen stated the new Council should take a look at this position and whether it could be handled by a current staff member. 12/10/92 _10- There was a motion by Mayor Paulson and seconded by Councilmember Rosene to add to the amendment that the funds for the Earle Brown Heritage Center position be moved to unallocated funds and be addressed by the new Council following instatement in January, 1993. Councilmember Cohen withdrew his second to the amendment. The motion failed due to a lack of a second. The motion passed. Mayor Paulson and Councilmember Pedlar voted against the motion. The City Manager presented a resolution to authorize a final tax levy for 1993 budget appropriations. RESOLUTION NO. 92 -270 Member Celia Scott introduced the following resolution and moved its adoption: RESOLUTION TO AUTHORIZE A FINAL TAX LEVY FOR 1993 BUDGET APPROPRIATIONS The motion for the adoption of the foregoing resolution was duly seconded by member Dave Rosene. The motion passed: three ayes, two nays. Mayor Paulson and Councilmember Pedlar voted against the motion. The City Manager presented a resolution to cancel part of a tax levy previously certified for the redemption of the $700,000 certificates of indebtedness sold in 1991. RESOLUTION NO. 92 -271 Member Celia Scott introduced the following resolution and moved its adoption: RESOLUTION TO CANCEL PART OF A TAX LEVY PREVIOUSLY CERTIFIED FOR THE REDEMPTION OF THE $700,000 CERTIFICATES OF INDEBTEDNESS SOLD IN 1991 The motion for the adoption of the foregoing resolution was duly seconded by member Dave Rosene, and the motion passed unanimously. The City Manager presented a Resolution Approving a Final Tax Capacity Levy for the Purpose of Defraying the Cost of Operation, Providing Informational Service, and Relocation Assistance Pursuant to the Provisions of MSA 469.001 through 469.047 of the Housing and Redevelopment Authority of the City of Brooklyn Center for the Year 1993. RESOLUTION NO. 92 -272 Member Philip Cohen introduced the following resolution and moved its adoption: 12/10/92 RESOLUTION APPROVING A FINAL TAX CAPACITY LEVY FOR THE PURPOSE OF DEFRAYING THE COST OF OPERATION, PROVIDING INFORMATIONAL SERVICE, AND RELOCATION ASSISTANCE PURSUANT TO THE PROVISIONS OF MSA 469.001 THROUGH 469.047 OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER FOR THE YEAR 1993 The motion for the adoption of the foregoing resolution was duly seconded by member Dave Rosene, and the motion passed unanimously. Councilmember Cohen stated as the Council moves on, he believed the City will be sharing more services with other cities and the County. ADJOURNMENT There was a motion by Councilmember Rosene, and seconded by Councilmember Scott to adjourn the meeting. The motion passed unanimously. The Brooklyn Center City Council adjourned at 11:10 p.m. a Deputy City Clerk Todd Paulson, Mayor Recorded and transcribed by: Nancy Berg Northern Counties Secretarial Services 12/10/92 -12-