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HomeMy WebLinkAbout2013 07-08 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 8, 2013 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 8:17 p.m. ROLL CALL Mayor/President Tim Willson and Councilmembers/Commissioners Carol Kleven, Kris Lawrence-Anderson, Lin Myszkowski, and Dan Ryan. Also present were City Manager Curt Boganey, Finance Director Dan Jordet, Assistant City Manager/Director of Building & Community Standards Vickie Schleuning, and Carla Wirth, Timesaver Off Site Secretarial, Inc. DRAFT ORDINANCE REGARDING EXTERIOR STRUCTURE REQUIREMENTS FOR MULTI-FAMILY PROPERTIES Assistant City Manager/Director of Building & Community Standards Vickie Schleuning reintroduced the item and described the need to address maintenance of common areas and exterior building materials for multi-family properties to assure the value of the entire complex is not compromised. Councilmember/Commissioner Myszkowski stated she had supported this idea until Mayor/President Willson raised concerns relating to enforceability. She agreed with the benefit of larger sized and consistent house numerals. Counciimember/Commissioner Ryan stated he found some of the multi-family properties were not in good repair and if the City Council/EDA is serious about placing mechanisms to preserve the City's multi-family residences and values, there is a need for such a tool. He agreed with the need for clear and straightforward addressing but sees there could be an issue when exterior/architectural standards are imposed on buildings under multiple ownership. Ms. Schleuning stated there will be an educational component and oftentimes, property owners are proactive to address maintenance issues but the concern is when the association no longer exists or does not have funds available. Councilmember/Commissioner Ryan stated support for the City to have those types of tools so an aesthetically unpleasing situation does not arise and so the exteriors match even though it may not be the original building materials. He asked about the number of townhome rentals in Brooklyn Center. Mr. Schleuning stated staff can provide that information. 07/08/13 -1- Councilmember/Commissioner Kleven stated address numerals should also be reflective so they can be easily seen during evening hours. Mayor/President Willson stated he is not opposed to considering an ordinance but wonders if the City has legal footing when dictating or regulating color, shape, and building material. He noted it may result in more of a guideline format than an ordinance. Councilmember/Commissioner Myszkowski asked what it would take to reestablish homeowner associations. Ms. Schleuning stated there is a process but it is cost prohibitive. There was discussion on people's perception of color, which may differ. Ms. Schleuning stated the intent is to have a plan in place for common areas and exterior maintenance but not to become involved with regulating color. It was acknowledged that the properties under consideration are multi-family with a shared wall, which is a distinction from single-family properties Councilmember/Commissioner Ryan stated in self-defined communities there can be a requirement for homeowners to sign certain covenants regulating address and mailbox structure, roofing materials, which is analogous to the townhome association arrangement. He noted that originally the townhome association addressed consistent exterior material and color, which established a precedent to which buyers agreed. Mayor/President Willson stated if the City has such an agreement signed by the property owners, it may be something to stand on but if it is not the original owner, they may not be aware of those regulations. City Manager Curt Boganey stated the City Council/EDA has expressed a consensus to do something ith respect to address numbers being more visible and uniform. In addition points g P g p have been raised on the issue of townhome associations and outgrowth of what happens when they are abandoned. Mr. Boganey noted a separate track is to think through what it would take or what could be done to encourage unified properties to become part of a townhome association and how to prevent the breakup of single homes into multi-family units. Mr. Boganey stated there is no City Council/EDA consensus to impose, through ordinance, requirements to work uniformly. He stated staff will consider what can be accomplished through policy,guidance, and persuasion to obtain cooperation. DRAFT ORDINANCE FOR PARKING, DRIVEWAYS,AND WASTE CONTAINERS, LOT COVERAGE,AND SNOW REMOVAL Ms. Schleuning summarized the draft ordinance amendments and recommendation of the Housing Commission. She noted the results of the resident survey had been provided for the City Council's/EDA's review and were similar to the recommendation of the Housing Commission. Ms. Schleuning displayed illustrations of front yard definitions and pictures depicting Code violations involving parked vehicles. She stated the current ordinance allows 07/08/13 -2- vehicles to be stored in the side and rear yards on any surface. The new ordinance would require some type of improved surface and total impervious yard surface area. Councilmember/Commissioner Ryan asked if the property owner would have the option of extending the driveway. Ms. Schleuning stated that is correct or they could extend a well- maintained gravel driveway. Ms. Schleuning next presented examples of allowable locations for storage of waste containers and locations that would result in a violation. She stated the new ordinance would allow some type of enclosure if within four feet of the garage or principle structure. Ms. Schleuning asked if the City Council/EDA agrees with the newly defined front yard diagrams. Mayor/President Willson stated he supports the ordinance across-the-board with the exception of requiring garbage containers to not be placed before 4 p.m. the day before pickup due to holiday situations. Ms. Schleuning stated residents will probably not complain about that type of situation but the ordinance is meant to address the consistent violator. Mayor/President Willson stated it does not matter whether or not there is a complaint because if it is written in the ordinance and staff sees a violation, the ordinance would have to be enforced. Ms. Schleuning stated if staff notices a violation, such as a pile of brush but the residents are working on limb ,removal, it will be considered. Mayor/President Willson suggested the ordinance then contain wording to indicate it is to address a continuous violation. Mr. Boganey stated the concern is understood and suggested staff take it under consideration whether to write language so it is clear the City will not be out every day looking for violations or to establish Council policy guidance that is separate from the ordinance. Councilmember/Commissioner Kleven asked why a time needs to be included in the ordinance and asked how many complaints are received. She noted a resident may be at the hospital visiting a family member or have another engagement and need to take out the garbage container earlier. Also, in the winter months when it becomes dark earlier in the day, residents may want to take out their garbage container before dark. Councilmember/Commissioner Ryan stated support for the suggestion of Mr. Boganey to develop an effective means to communicate that issue. Mayor/President Willson thanked Ms. Schleuning for her work on this ordinance. Ms. Schleuning agreed this is a complex issue and the ordinance also needs to be enforceable. She noted the current ordinance starts at dusk and staff will review the language. Councilmember/Commissioner Lawrence-Anderson stated she is fine with the language on parking, driveways, and snow removal but has issue with the garbage cans. She stated her biggest concern is that the City can barely enforce grass, weeds, and garbage cans that are out a week later. She asked how the City would have enough Code Enforcement Officers to check where garbage cans are placed. Councilmember/Commissioner Lawrence-Anderson stated she 07/08/13 -3- is concerned about enforcement and would not support adoption of an ordinance that cannot be adequately enforced. Councilmember/Commissioner Myszkowski stated she is supportive of all the language proposed but would ask whether setting the time at 4 p.m. is arbitrary. She stated she supports staff reviewing the language as discussed and wants to assure the ordinance, if adopted, is enforceable. Councilmember/Commissioner Myszkowski stated she appreciates that there had been a lot of community engagement throughout this process. Councilmember/Commissioner Ryan stated the concern is the reputation of Brooklyn Center and maintaining pride in the community. He stated if the explanation is clear and in concrete terms, he thinks the community will be accepting. Councilmember/Commissioner Ryan thanked staff for their work on this ordinance. He asked if other communities require snow removal within a certain period of time to address reasonable care and maintenance. He noted if driveways are not cleared, it may result in emergency response taking longer. Councilmember/Commissioner Kleven stated she does not feel parking violations are enforced or that vehicles should be allowed to be parked in the rear yard. She supported requiring snow removal from driveways so the property does not appear to be vacant and invite theft. Councilmember/Commissioner Kleven supported making no change to the language about garbage containers and to focus on parking and driveway violations. REPORT ON ASG BROOKLYN CENTER CONDUIT BOND REQUEST Finance Director Dan Jordet introduced the item and presented an overview of staff's report on the conduit financing request for $5,080,000 by ASG Brooklyn Center for Odyssey Charter School. He advised of the answers received to staff s• questions and indication the forecast is a market study but the financial projections were reviewed by MMKR. In addition, the School has a line of credit (not letter of credit) available to back the bonds. To address mitigation of risk, the School has indicated the $100,000 denomination is acceptable and he will ask why they crossed off language indicating: "at any point in their lifecycle." Mayor/President Willson stated if there are a lot of sticking points and not a general consensus, he is concerned about furthering this process. He stated the City has to conduct due diligence to assure there is no impact on the City under an scenario. Mr. Jordet noted the public benefit to p Y Y Brooklyn Center may outweigh any risk to Brooklyn Center, as there is no financial risk or impact to the City's bond rating. Mr. Jordet stated by mid-week, he expects to receive the bond indenturing and will provide an u p date to the City Council/EDA by Friday. He explained that if the City issues over$10 million in a fiscal year,banks are not allowed to purchase those bonds because of FDIC regulations. The City has four bond issues in 2013: $5 million for this project, $4 million of improvement bonds, $2 million for the street reconstruction project; and, $6.9 million and $2 million of refinancing on TIF debt and water meter project debt. It was noted the interest savings are about $485,000 over the life of the bonds or a present value of$435,000. 07/08/13 -4- Mr. Jordet stated he is working on the opportunity costs of incurring the bank qualification penalty (higher interest) that would cut into the savings or the option of simply issuing between January 1 and February 1 when the bond payments are due. Mayor/President Willson asked if there would be additional savings if the City's refinancing is done today rather than being delayed to January/February. Mr. Jordet explained why that is not the case and that the City can realize most of the savings even if it occurs in January/February. Councilmember/Commissioner Ryan stated he wanted to assure there was a worthy public purpose and the City also needs to be aware of any resulting costs on future bond issues. Councilmember/Commissioner Myszkowski noted it was indicated the interest rate of 7%o is high and asked about the factors that resulted in a higher interest rate. Mr. Jordet stated municipal bonds tend to be lower because the interest income is tax exempt and the security for repayment is the full tax base of the issuer. However, if the risk is higher or a city's bond rating is lower, then investors demand a higher interest rate on their investment. Mr. Jordet stated these would not be municipal bonds so the investor may ask for a higher rate. He explained that Springsted had indicated this type of bond was running in a 5°/0 range and Ziegler said they had used 7% as a conservative estimate of the interest rate. Councilmember/Commissioner Myszkowski asked if a 7% interest rate is a risk indicator. Mr. Jordet stated it can be. Councilmember/Commissioner Myszkowski referenced sensitivity risk indicators and that a change in two or more factors can create extreme difficulty. She asked if that would relate to a change in enrollment, lower aide, or budget shifts, which could happen over a 30-year term. Mr. Jordet stated that is correct as the four sensitivity factors were based on enrollment and State aid numbers. Councilmember/Commissioner Myszkowski asked whether this issue is too small to be rated by a bond rating agency. Mr. Jordet stated the City's bond attorney indicated it relates to the size of the school and because the Charter School bond market is relatively new so they do not have a good basis for giving well-informed ratings. The rating agency may be looking for larger issues to get ratings before rating some of the smaller issues. Mr. Jordet stated the hearing has been noticed and will be held on July 22, 2013. He reviewed actions available to the City Council at that time. ADJOURNMENT Councilmember/Commissioner Ryan moved and Councilmember/Commissioner Lawrence- Anderson seconded adjournment of the City Council/Economic Development Authority Work Session at 9:42 p.m. Motion passed unanimously. 07/08/13 -5- 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: L 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 8, 2013. 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 July 22, 2013, Regular Session. I„ City Clerk Mayor 07/08/13 -6-