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HomeMy WebLinkAbout2013 08-26 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 AUGUST 26, 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 8:21 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, Interim Finance Director Greg Andrews, Public Works Director/City Engineer Steve Lillehaug, Director of Business and Development Gary Eitel, Director of Community Activities Jim Glasoe, and Carla Wirth, TimeSaver Off Site Secretarial, Inc. DISCUSSION ON AN OPPORTUNITY TO ACQUIRE LOT 1, BLOCK 1, CHRYSLER ADDITION, FORMER CARS FOR HEART AUTO DEALERSHIP 6121 BROOKLYN BOULEVARD (REDEVELOPMENT WITHIN THE BROOKLYN BOULEVARD CORRIDOR)— CONTINUED It was noted that discussion on this item began at the August 26, 2013, Study Session. The majority consensus of the City Council/EDA was to authorize staff to meet with the property owners and negotiate a purchase agreement. CITY'S DRINKING WATER UPDATE—MANGANESE Public Works Director/City Engineer Steve Lillehaug introduced the item and past consideration to develop an action plan pertaining to manganese in the City's drinking water. It was noted that on March 7, 2013, the City commissioned a consultant, TKDA, to prepare a feasibility study report to evaluate and prepare short- and long-term alternatives to consider in addressing the potential manganese health risk. Manganese levels in the City's water supply have been historically high and the aesthetic issues have been well known and understood. The City chose not to construct a water treatment in the past; however, new guidance provided by the Minnesota Department of Health (MDH) suggests too much manganese from drinking water may be harmful to health. Thus, this new consideration by t)ie City is warranted to address the high levels of manganese in its drinking water. Mr. Lillehaug stated the City's level of manganese varies. .He noted the current guidance value for manganese in drinking water is 100 parts per billion (ppb) for formula-fed•infants and infants that drink tap water. The manganese guidance 08/26/13 -1- value for children and adults (including nursing mothers) is 300 ppb. Mr. Lillehaug displayed a chart depicting the levels of manganese at each of the City's wells. Mr. Lillehaug presented the action plan, as detailed in the staff report, options considered, and recommendation that the best long-term solution is to construct a Water Treatment Plant. Not for the sole purpose of manganese level reduction but also for other collective benefits as detailed in the consultant's report. He displayed a chart depicting the rate other cities charge for water, noting Brooklyn Center's current rate is in the lowest range. Mr. Lillehaug stated should a Water Treatment Plant be constructed, estimated at $18 million, it would increase the average water bill approximately $17.28 per quarter, to a total of$46.18/quarter, which would rank the City's rate at the lower end of the mid-range when compared with the rate of other cities. Mr. Lillehaug presented considerations in staff's recommendation to construct a Water Treatment Plant as detailed in the staff report. He stated Brooklyn Center's water fully meets compliance standards, so it does not need to construct a Water Treatment Plant at this time. He presented timeline options and asked the City Council/EDA whether it supports proceeding with the recommended action plan that includes constructing a Water Treatment Plant. Mayor/President Willson noted continual operation of Well 6 will increase wear and tear. He asked if there is County or State money available that can be pursued. Mr. Lillehaug stated the City applied for a Minnesota Public Facilities Authority low-interest grant/loan on June 6, 2013, to construct a Water Treatment Plant and the results of that application should be known in September 2013. Mayor/President Willson asked about the impact of the City's overall indebtedness should it bond for $18 million. Mr. Boganey stated the City is so far below debt limits, that $18 million will not put the City anywhere close to the Statute maximum debt limit. It will also not impact the City's bond rating. Mayor/President Willson asked about the staff complement to operate a Water Treatment Plant. Mr. Lillehaug stated a feasibility study has already been conducted relating to cost to operate and staff a Water Treatment Plant. Mr. Boganey indicated those operating expenses are included in the rate calculation. Councilmember/Commissioner Ryan stated he researched the Clean Water Act and learned there is a list of chemicals and substances that commonly occur in drinking water but due to political reasons, are not included on the list. Mr. Lillehaug stated it sometimes takes a political element to get a contaminant on the primary drinking water list. Councilmember/Commissioner Kleven thanked staff for its detailed report that includes all options. She noted this problem will not go away and she feels this is the time to take action and construct the Water Treatment Plant. Councilmember/Commissioner Kleven stated even with the added cost of the Water Treatment Plant,the City's water rates would still be below average. She asked where such a Plant can be constructed. Mr. Lillehaug explained the City already has the underground infrastructure for a Water Treatment Plant on a site in Evergreen Park, on the east side of Camden Avenue. 08/26/13 -2- Councilmember/Commissioner Lawrence-Anderson asked if the cities with the highest rates already have a Water Treatment Plant. She stated support to move forward in the near future and asked if the trend of increased water rates will occur in Brooklyn Center. Mr. Lillehaug explained some of the cities that have the highest water rates purchase its water supply from another municipality. Councilmember/Commissioner Myszkowski stated she knew construction of a Water Treatment Plan was inevitable once the City became aware of the level of manganese. She asked what would happen with the funding and rate calculations if the people of Brooklyn Center took water conservation efforts to heart and significantly reduced water usage. Mr. Lillehaug stated it would impact the funding available so the water rates would have to be increased. He noted the dollars presented are estimates and the City already encourages water conservation by offering a tiered rate. Mr. Lillehaug stated it would take a great effort of conservation to lower water consumption significantly. Mr. Boganey stated that is a good point and the City also has a Senior Rate, which may or may not come into play. Mayor/President Willson asked if the DNR's re-effort relating to treatment of discharge to the Mississippi River and/or the amount of sewage sent to Minneapolis plays into this calculation. Mr. Lillehaug stated a Water Treatment Plant will increase discharge into the sanitary sewer that is treated by the City of Minneapolis. Mr. Boganey stated if surface water has to be treated prior to discharge to the Mississippi River, it would be done by a separate system since it would not need to be treated to potable level. Mayor/President Willson asked about the jump in manganese levels from September 1975 to February 1987. Mr. Lillehaug stated he does not know for certain but speculated that the methods of testing in 1975 may not have been as accurate. Councilmember/Commissioner Ryan stated that on the basis of information received, it is only a question of the timeline. He supported a more immediate timeline as construction costs will only increase. Councilmember/Commissioner Ryan stated if successful with a grant application for a low-interest loan, it would be marginally lower in cost. Mr. Lillehaug stated that is correct; however, interest rates are currently very low. Mayor/President Willson also supported an immediate timeline of one to two years. He noted it has already been communicated to residents that the City intends to do something about this health risk. The majority consensus of the City Council/EDA was to move forward on a Water Treatment Plant based on an immediate timeline. PART II: COMPREHENSIVE OVERVIEW OF CAPITAL NEEDS AND DEBT FUNDING PLANS 08/26/13 -3- Mr. Boganey noted at the last meeting, the City Council/EDA engaged in a fairly detailed discussion regarding potential capital projects that currently have no clear identified funding source. He answered questions of the City Council/EDA relating to project specifics. Mr. Boganey asked the City Council/EDA to rank each of the projects as high, medium, low, or not a priority. He explained that ultimately, the City needs to have one CIP that identifies the source of funding for all known capital needs over the next 15 years. The City Council/EDA ranked the ten projects as follows: High Medium Lo3y Not a Priority Council Chambers Technology 2 1 1 1 Centennial Park Amphitheater 5 0 0 0 2014 Capital Maintenance Building Plan Project 5 0 0 0 2015-2025 Capital Maintenance Building Plan Project 0 4 0 1 City Hall/Community Center Doors/Windows 0 1 2' 2 Brooklyn Boulevard Corridor 2 2 0' 1 Street Reconstruction Fund Deficit 5 0 0 0 City Hall Renovation Options 0 3 1 1 Community Center Renovation Options 1 2 1 1 Highway 252 Improvements 1 2 1 1 Mr. Boganey stated he will collate the data and present a funding scenario at the next meeting with the objective that funding will be identified for the highest priority projects. ADJOURNMENT Councilmember/Commissioner Ryan moved and Councilmember/Commissioner Myszkowski seconded adjournment of the City Council/Economic Development Authority Work Session at 9:28 p.m. Motion passed unanimously. 08/26/13 -4- 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 August 26,2013. 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 September 9, 2013,Regular Session. City Clerk Mayor' 08/26/13 -5-