HomeMy WebLinkAbout2011 07-25 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
JULY 25, 2011
CITY HALL — COUNCIL CHAMBERS
CALL TO ORDER
The Brooklyn Center City Council/Economic Development Authority (EDA) met in Work
Session called to order by Mayor/President Tim Willson at 7:42 p.m.
ROLL CALL
Mayor /President Tim Willson and Councilmembers /Commissioners Carol Kleven, Kay Lasman,
Tim Roche, and Dan Ryan. Also present were City Manager Curt Boganey, Director of Fiscal
and Support Services Dan Jordet, Public Works Director /City Engineer Steve Lillehaug, Director
of Business and Development Gary Eitel, and Carla Wirth, Timesaver Off Site Secretarial, Inc.
PROPOSAL BY WINGS FINANCIAL FOR THE
TERMINATION OF THE CEMENT POND/FOUNTAIN EASEMENT AND
DEDICATION OF A NEW TRAIL EASEMENT
City Manager Curt Boganey summarized the earlier Study Session discussion and consensus of
the City Council/EDA to terminate the existing Cement Pond Easement. He indicated staff will
bring forward a resolution for that action as well as cost estimates for construction of a trail,
lighting options, and installation/maintenance of a fountain.
FINANCIAL COMMISSION REPORT — UTILITY COLLECTION
Director of Fiscal & Support Services Dan Jordet introduced the item, explaining that at the
direction of the City Council/EDA, the Financial Commission examined utility bill collections
with the ultimate goal of reducing the number and dollar amounts assessed against properties.
He reported on the options considered by the Financial Commission such as monthly billing of
smaller amounts, flat rate payment plans, credit card payments, early pay discounts, increasing
late fees, as well as the pros /cons of each. Mr. Jordet reported that the options of credit card
payments and ACH payment have been implemented. He stated all utility customers received
information on the ACH payment option and estimated that 7 -10% are interested in that method
of payment.
Mr. Jordet described other options raised by the Financial Commission relating to notification of
consumer credit rating services for nonpayment, charging interest on payments certified for
collection, clearly marking envelopes to identify it is a utility bill, not sending the first
assessment letter reminding their utility payment is overdue and requesting payment, and a
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policy issue relating to the criteria for account write -off. Mr. Jordet reported that virtually all
utility bills are collected because it is a secured lien and eventually paid with property taxes. He
explained the Financial Commission will continue its discussion and draft a memorandum of
recommendation for the Council's consideration.
The City Council/EDA discussed the options proposed by the Financial Commission and
consensus was indicated to support the following: ACH payment option and recommended
additional notices be included in future billings; promotion of electronic billing/payment as being
a "green" initiative; clearly identifying on the envelope that the utility bill is enclosed; an early
pay discount; continuing to mail the first payment reminder notice prior to certification since it
results in a high level of payment; certifying delinquent bills once a year to Hennepin County for
collection; and, assessing interest/penalties to assure all certification processing and staff costs
are covered.
It was discussed whether increasing late penalty fees would result in fewer delinquent accounts.
Mr. Jordet noted the late penalty fees are already severe.
The City Council/EDA indicated that based on principle it supported collection of all utility bills,
teaching financial responsibility and so those costs are not passed to other taxpayers. However,
it also considered best management practices for writing off smaller amounts that result in
diminishing returns and do not justify expenditure of staff resources.
Mr. Boganey agreed that staff time is a significant cost and the time used for utility collection
cannot be recouped for other projects. Staff was asked to provide a cost estimate for collection
of delinquent utility bills, factoring in staff time. It was noted that if the staff time lost is
detrimental to the City, the Council may need to consider additional staff.
The City Council/EDA discussed whether non - payments and late payments should be reported to
credit rating agencies. It was noted that virtually all utility payments are collected because
certification to property taxes results in a secured property lien. Mr. Jordet stated he is not
familiar with the process for reporting to credit rating agencies, potential time commitment,
costs, or the follow -up process if someone is reported for nonpayment and then payment is made.
The City Council /EDA thanked the Financial Commission for its work on this matter. Mr.
Boganey stated the City Council/EDA's input has been useful and will be shared with the
Financial Commission.
ADJOURNMENT
Councilmember /Commissioner Kleven moved and Councilmember /Commissioner Ryan
seconded adjournment of the City Council/Economic Development Authority Work Session at
8:15 p.m.
Motion passed unanimously.
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STATE OF MINNESOTA)
COUNTY OF HENNEPIN) ss. Certification of Minutes
CITY OF BROOKLYN CENTER)
The undersigned, being the duly qualified and appointed City Clerk of the City of Brooklyn
Center, Minnesota, certifies:
1. That attached hereto is a full, true, and complete transcript of the minutes of 'a Work
Session of the City Council of the City of Brooklyn Center held on July 25, 2011.
2. That said meeting was held pursuant to due call and notice thereof and was duly held at
Brooklyn Center City Hall.
3. That the City Council adopted said minutes at its August 8, 2011, Regular Session.
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City Clerk Mayor
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