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HomeMy WebLinkAbout2015 07-06 CCM Joint Work Session with Financial Commission MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITYOF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA JOINT WORK SESSION WITH FINANCIAL COMMISSION JULY 6, 2015 CITY HALL—COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Joint Work Session with the Financial Commission and the session was called to order by Mayor Tim Willson at 6:37 p.m. ROLL CALL Mayor Tim Willson and Councilmembers April Graves, Kris Lawrence-Anderson, Lin Myszkowski, and Dan Ryan. Also present were City Manager Curt Boganey, Assistant City Manager/Director of Building & Community Standards Vickie Schleuning, Finance Director Nate Reinhardt, and Public Works Director/City Engineer Steve Lillehaug. Others present were Financial Commissioners Anna Burke, Teneshia Kragness, Steve Landis, Rex Newman, Dan Schueller, and Dean Van Der Wer£ APPROVAL OF AGENDA Mayor Willson moved for adoption of the July 6, 2015, Agenda. With no objection, the Agenda was adopted. OVERVIEW/INTRODUCTION Mayor Willson provided a brief welcome and overview, along with City Manager Curt Boganey and Finance Director Nate Reinhardt. Mr. Boganey informed the purpose of tonight's meeting was to discuss the long-range Capital Improvement Plan and the annual Capital Program for the various Capital Funds of the City. CAPITAL IMPROVEMENTS PLAN 2016—2030 Public Works Director/City Engineer Steve Lillehaug provided a PowerPoint presentation and review of the Capital Improvements Plan 2016 — 2030. Mr. Lillehaug reviewed the Neighborhood Reconstruction Program. He said one of the City's Strategic Priorities is key infrastructure investments. He reviewed the project types and funding sources. He reviewed the history stating utilities that are older than 55 years are causing problems and need replacement, such as sanitary and water. After the neighborhood projects are completed, they often see additional pride and improvements by neighbors. 07/06/15 -1- Mr. Lillehaug indicated there are some recommendations for project changes in upcoming years. He stated the Yellow Highlights for projects in the CIP indicate increase in costs in upcoming years. He also explained the challenges in recent years predicting project costs and extra diligence staff is taking to review bids. The price increases and fluctuations may be contributed to the 2006 housing market decline, as well as the reduced number of contractors; therefore not being able to keep up with market demand. INDIVIDUAL CAPITAL PROJECTS FUNDS Mr. Reinhardt provided a PowerPoint presentation and reviewed the various Capital Projects Funds including Capital Improvements Fund, Municipal State Aid Fund, Street Reconstruction Fund, Infrastructure Fund, Overview of Utility Fund, Technology Fund, EBHC Capital Fund, and BC Liquor Capital Fund. He provided an overview of CIP changes, costs, funds, and cash flow analysis. Mr. Reinhardt also spoke about neighborhood reconstruction projects and the increase due to rising construction costs beyond 3% inflation. Mr. Boganey explained the costs are based upon unit costs adjustment for construction, and then are adjusted to reflect inflation. Mr. Reinhardt reviewed the 2016 projects fund and the City's funding policy. Mr. Boganey stated the street reconstruction uses the general fund and sold bonds this year. The franchise fees won't cover the City's share of street reconstruction so it will come from property tax levy. Further,he stated the majority of investment will occur over five years. T During the review of the BC Liquor Funds, questions were asked about the impact of Total Wine and More, which may have a greater impact if built in Maple Grove. It was mentioned that Costco is now selling Surly beer. When asked about the impact of the beer cave on the liquor store, Mr. Reinhardt stated sales improve along with operation efficiencies. The large 24-packs allow for inventory to be replenished by moving pallets versus individual boxes. In response to a question regarding issuing more bonds and debt vs. property taxes, Mr. Boganey stated that additional bonds are recommended to help smooth the impact to the annual levy; the costs do not go up and down so much. There were concerns that pushing back projects would lead to more maintenance costs and resident complaints. Mr. Reinhardt stated the interest rates could be higher and increase costs additionally in the future. Mr. Boganey stated these projects are long-life assets. He stated that as public investment is delayed, private investment is often delayed. Others agreed. A question was asked about how the City will be positioned after the first round of capital projects. Mr. Lillehaug stated that road conditions are ranked. With the current CIP, roads average 80 out of 100. Six and a half years ago, the roads were rated at an average in the low 70s. Mr. Reinhardt stated the next five years will be the most difficult financially, and then will balance out. It was asked if the transportation funding at the Capitol will affect Brooklyn Center. It was mentioned that it may not help cities, but maybe Hennepin County surtax. Another question was if there was an impact with the City being listed on the inflow infiltration list for Met Council. 07/06/15 -2- Mr. Lillehaug said the transportation federal funding or future legislation of special districts may affect us. Mr. Boganey said if the street utility discussion is approved, Brooklyn Center could use a special tax but it is still a tax. Mr. Lillehaug stated Brooklyn Center is on the list due to surcharge sanitary sewer for one incident one year where someone lifted a manhole to drain rainwater. Tree roots and a substantial rain were problematic that incident. The City is now on that list to keep rainwater out of the sanitary sewer system. A question was asked about the Shingle Creek restoration project with Brooklyn Park. Mr. Lillehaug stated the first phase of the project was this year. Shingle Creek is impaired by chloride due to salt use in winter. The plan is to create a smaller channel and reduce erosion issues. The project cost is more than $300,000. Because of a federal grant, the cost to Brooklyn Center is $30,000. Options include clearing vegetative tall trees for sunlight or better rip raps for aeration. Other actions to reduce chloride include public education regarding prevention of contamination, reducing salt on roads, and improving landfills by cities that operate landfills. MISCELLANEOUS There were no miscellaneous items discussed. ADJOURNMENT Councilmember Ryan moved and Councilmember Myszkowski seconded to adjourn the Work Session at 8:32 p.m. Motion passed unanimously. 07/06/15 -3- 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 the City Council from the City of Brooklyn Center Joint Work Session with Financial Commission held on July 6, 2015. 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 27, 2015,Regular Session. 11�" �� 1 City Clerk Mayor I 07/06/15 -4-