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HomeMy WebLinkAbout2018 10-29 CCM Joint Work Session with Financial Commission 10/29/18 -1- MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA JOINT WORK SESSION WITH FINANCIAL COMMISSION OCTOBER 29, 2018 CITY HALL - COUNCIL CHAMBERS I. 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 6:30 p.m. Mayor Tim Willson and Councilmembers Dan Ryan and April Graves were present. Councilmembers Marquita Butler and Kris Lawrence-Anderson were absent. Also present were City Manager Curt Boganey, Deputy City Manager Reggie Edwards, Finance Director Nate Reinhardt, Director of Community Activities, Recreation and Services (CARS) Jim Glasoe, Liquor Operations Manager Tom Agnes, Golf Course Superintendent Steve Makowske, Earle Brown Heritage Center (EBHC) Manager Bruce Ballanger, Public Works Director Doran Cote, and Mary Mullen, TimeSaver Off Site Secretarial, Inc. Others present were Financial Commissioners Tia Hedenland, Abate Terefe and Dean Van Der Werf. Financial Commission Chair Teneshia Kragness was absent. II. APPROVAL OF AGENDA Councilmember Ryan moved and Councilmember Graves seconded to approve the agenda. Motion passed unanimously. III. ENTERPRISE FUNDS a. BC Liquor Operations Manager Tom Agnes provided an update on Brooklyn Center Liquor Enterprise Fund. There are three operation, two stores and the third being the one-day event of Surly Brewing Company’s Darkness Days. This event, previously hosted at the Surly Brewing Company headquarters, was moved to Somerset, Wisconsin. This year’s event was smaller, but the company operated the event and kept bottle sales revenues. Mr. Agnes stated Liquor Operations are legally allowed to sell spirits, wine, beer and cigarettes at two locations in Brooklyn Center: Store #1 is located at 5625 Xerxes Avenue, and Store #2 is located at 6930 Brooklyn Boulevard. The wine and beer clubs were eliminated, and a loyalty rewards program called “BC Buck$” was implemented in 2018. Customers who sign up for the program will receive 1 point for every dollar spent on a majority of the items sold by Liquor Operations. 10/29/18 -2- Mr. Agnes stated Liquor Operations wage increases are possibly due to the “livable wage” initiative and will be reviewed in January 2019. Mayor Willson requested clarification regarding the “livable wage”, which has been identified by Hennepin County at $16.16 per hour. Finance Director Reinhardt stated the City is reviewing this issue to determine which departments would be affected and what the total budget would be, and how it could be implemented. He added a total lump sum of $24,000 is required for Liquor Store employees based on the number of hours, but that could change. Mayor Willson referred to a recent article in the Minneapolis Star/Tribune about the recent financial success of municipal liquor stores. Mr. Agnes agreed, adding it is nice to get positive press. Mr. Agnes stated rent has continued to increase at Store #1. Staff continues to assess customer needs and explore building ownership in anticipation of the building lease expiration in June 2020. An emphasis will be placed on enhanced customer service and fiscal responsibility. Mr. Agnes stated two new potential locations are being considered: a 9,375 square foot space at the other end of the store’s current building, and a 13,600 square foot location at Shingle Creek Crossing, across from Applebee’s. The second location would have the potential for a 10,000 square foot store plus additional square footage for future expansion or another use. The Shingle Creek location has a back-loading dock which would provide efficiency, safety and security, and there would be a cost savings as the building would be finished on three sides. Mr. Agnes stated recommendations will be brought to the City Council before the end of 2018 but nothing has been signed. He added he assumes the build-out would be included in the overall price. He noted Store #1 is currently 7,100 square feet, and a recent study recommended that the City should own its facility and increase its size up to 10,000 square feet. Mr. Agnes reviewed the Liquor Operations’ 2019 performance objectives, including inventory variance; successful compliance checks; increase in awards members; and an increase in social media presence. He stated “BottleLox”, a theft prevention measure, was implemented in Store #1 in 2016. This initiative has been very successful in terms of savings as well as reduced stress for employees. He added the use of “BottleLox” will gradually expand into Store #2 as well. Councilmember Graves asked Mr. Agnes to remind staff to ask customers if they belong to the rewards program. Mr. Agnes agreed. Mayor Willson asked whether there is any data available related to tobacco sales. Mr. Agnes stated tobacco sales have increased in 2018. He agreed to provide that data to the City Council. Commissioner Terefe requested clarification regarding sales of cigarettes and alcohol by Brooklyn Center Liquor Operations. Mayor Willson stated it is a source of revenue for the City. 10/29/18 -3- Mr. Boganey stated the City’s objective in operating liquor stores is to regulate and limit the amount of alcohol sold in Brooklyn Center, and reduce access to alcohol by residents who are under 21 years of age. Rather than allow operation of private liquor stores, the City can limit the sales and use of alcohol. Another objective is profitability to offset City costs. Commissioner Van Der Werf asked if there is any concern whether current customers will come to the new location of Store #1. Mr. Agnes stated there will be informational signage as well as a notice on every receipt, so customers know about the location change. He added the new location is very close to the old location Mr. Reinhardt stated a recent market study showed that the new location is close enough to the old location that it will remain within the same high traffic area. Councilmember Ryan stated parking at the new potential location would be a vast improvement. He added he has had multiple incidents in the current parking lot. Mr. Agnes agreed, adding improved parking was a crucial component in the decision to change locations. Councilmember Graves stated the end of the building has a more distinguished corner entrance. Mr. Agnes agreed, although the entrance would have to be altered to accommodate both an entrance and exit in compliance with Fire Code regulations. b. Centerbrook Golf Course Golf Course Superintendent Steve Makowske gave a presentation on the Centerbrook Golf Course facility. He stated the mission at the Golf Course is to provide a high value golf course that is challenging and well-kept, with consistently exceptional customer service. He added it is a 9-hole, par 3 course, built in 1988 with a Capital Improvements Fund loan. He noted the Golf Course is open to the public, and there is a user-based charge. Mr. Makowske reviewed the key initiatives at the Golf Course: customer-based development, focused on beginning golfers and “ending” golfers. He stated this is a unique niche in the golfing community, and a round of golf can be completed in 90 minutes. A program sponsored by the Minnesota Golf Association called Youth On Course has been adopted at Centerbrook. Families pay an initial enrollment fee of $15 per child, which gives kids the opportunity to golf at Centerbrook and approximately 25 other local golf courses for only $5. Centerbrook applied a $5,000 grant from Luther Auto toward the Youth On Course program, so kids who are enrolled can golf for free. Mr. Makowske stated about 50 junior golfers signed up for the Youth On Course program. He added families are already calling to register for summer 2019. Mr. Makowske stated the new Top Golf facility in Brooklyn Center presents some potential opportunities for collaboration. Top Golf, a $26 million investment, opened in September 2018, and Golf course staff hope to connect with them soon to establish a relationship and some potential collaborations. He added Top Golf is community-minded, and they are ready and willing to work with us toward common goals. 10/29/18 -4- Mr. Makowske stated there are 6 women’s leagues and 1 men’s league at Centerbrook. He added 25 new league members were recently added. Women’s league members can bring a friend to play for $5, in an attempt to expand the women’s leagues. Mr. Makowske stated Golf Course staff provide excellent customer service and get to know league members and their preferences. Golf Course staff love the golf course and the unique opportunity it presents to play golf in a beautiful setting in the heart of the City. Mr. Makowske stated profitability is based on “playable days”, which can be disrupted by weather and other circumstances. Revenues increased, both per player and per round, as well as operating expenses and maintenance costs. Mr. Makowske stated the 6th Annual Skeleton Scramble was held at the golf course on October 20, 2018, with a graveyard on the putting green, as well as candy at each hole and skeletons throughout the course. He added it was a cold day, and not a “playable” day, but the event was sold out at $45 per person, and the golf course made a profit on a cold October day. Mr. Makowske stated the golf course hosted a Golf Festival and lunch on June 22, 2018, during Earle Brown Days Festival. He added he hopes to continue such collaborations in 2019. Mr. Reinhardt stated the golf course was started with an initial advance from the Capital Improvements Fund, and payments were made to forgive that advance. He added golf course operations are currently an Enterprise Fund, to be viewed as a Special Revenue fund, with transfers from the General Fund. Mayor Willson asked whether tobacco is sold at the golf course. Mr. Makowske stated tobacco is not sold at the Golf Course, but they hold a full liquor license. Councilmember Graves asked whether a caddie program has ever been considered. She added Brooklyn Bridge Alliance for Youth might be a good partner. Mr. Makowske stated there is no caddy program, and he is aware of the Alliance’s excellent programs. Councilmember Graves asked whether the City has any Special Revenue funds. Mr. Reinhardt confirmed this, adding the Golf course, which is recognized as a Special Revenue fund, provides significant funding. Mr. Boganey confirmed this, adding the City Auditor recommended moving the golf operations from the Enterprise Fund to a Special Revenue fund. He added the City wants to report the golf course in a manner that is more reflective of its function in the City budget. He noted utility funds are enterprise operations and cover costs, maintenance and depreciation with the goal of breaking even. Councilmember Graves asked how the golf course was initially set up. Mr. Glasoe stated there was an advance for a golf course and a land swap with the Little League in 1999. He added this was completed at the direction of the City Council at the time. 10/29/18 -5- Commissioner Terefe stated caddy programs are beneficial and highly competitive. He added the Evans Scholarship program for caddies is well-regarded and can provide opportunities for urban youth that changes their lives. He noted the Centerbrook Golf Course is a good place for events due to its proximity to Minneapolis. Mr. Makowske stated the Golf Course Clubhouse can seat 48 people at tables. He added they have hosted graduation parties in the past. Mr. Boganey stated the Evans Caddy Scholarship is a great program. He asked if the golf course were to implement a caddy program, whether the participants would qualify for the Scholarship. Mr. Makowske confirmed this. He added the Evans Scholarship is highly competitive and difficult to secure, as there are a limited number of scholarships available. Mr. Makowske stated he has looked into the possibility of a caddy program, but golf course members have indicated they would not use a caddy. He added he supports the idea and will continue to review possible programs that might be appropriate for the golf course. c. Earle Brown Heritage Center Earle Brown Heritage Center (EBHC) Manager Bruce Ballanger gave a presentation on the mission and function of EBHC. He added the mission of EBHC is to provide quality customer service and extraordinary dining in an uncommon setting. He noted there are four divisions within EBHC: the convention center, Administration, Catering Services, and commercial office rentals, including tenants Brooklyn Bridge Alliance for Youth and Innovative Presentations. Mr. Ballanger stated the catering contract will be up for renewal soon, so he will bring that to the City Council for review at an upcoming meeting. He added EBHC currently has 23 employees. He noted he anticipates hiring an additional Sales Manager in 2019. Mr. Ballanger stated EBHC’s high percentage repeat business is a testament to their staff and excellent customer service. Mr. Ballanger stated he hopes to be able to set up some events collaboration with Top Golf. Mayor Willson asked if there is any data on whether exposure provided by the Visitor’s Bureau has had a positive effect on EBHC’s business. Mr. Ballanger stated EBHC has used the Grant program, and the Visitor’s Bureau has brought 5 tours to EBHC in the last 5 months, which is more than the last 10 years combined. He added they have also booked one conference at EBHC, and he hopes the Bureau will continue to draw new business. He noted he does not have any conclusive data. Mr. Ballanger stated chefs at EBHC have been using Trim Trax, a program designed to minimize food waste. 10/29/18 -6- Mr. Boganey asked whether the proposed additional Sales Manager will affect targeted revenue. Mr. Ballanger stated there will be no noticeable change for the first year, but by the third full year, he expects close to $1 million additional revenue. Mr. Ballanger stated projects completed in 2018 included replacement of dining chairs and de- watering of the well header. He added additional projects have not been completed: implementation of new booking and reservation software and a new phone system. He added these projects, and a few others, should be completed by the end of 2018. Mr. Ballanger reviewed other capital project expenses: new carpet, electric switches, new entrance doors and a new roof for the Carriage Hall. He added the new phone system is being installed by Logis, and a temporary power source is currently being used. He noted the Carriage Hall entrance doors are included as a capital project as the door frames need to be re-built. Mr. Ballanger stressed the importance of the “livable wage” initiative in finding and keeping good qualified employees. He added many former staff members have gone to other hotels where they earn a higher wage. Mayor Willson agreed there will be a severe shortage of employable staff, especially in the Hospitality sector. Mr. Ballanger reviewed building and facilities maintenance projects: an upgrade of the EMS heating and cooling system; crushed ice machines; three new computers and increased corporate advertisements in print as well as on social media. Mayor Willson asked about Wi-Fi access points. Mr. Ballanger stated the system was upgraded in 2017 due to high user volumes. He added Wi-Fi is complimentary, which is a big selling point for potential customers, and regular customers expect it. Councilmember Graves stated she has become more aware of the many different types of events happening at EBHC. She added she attended the Kente Circle Training Institute Fall Conference which was held at EBHC on October 18, 2018. She noted she is interested in attending more events at EBHC in the future. Mr. Ballanger stated the EBHC has won many State government conference bids. Mr. Boganey stated staff had discussed the possibility of the EDA underwriting and hosting a community-wide event at EBHC that would be open to the general public. He added sponsors would be sought for this event, which would be give community members an opportunity to visit EBHC. Mayor Willson stated that is a great idea. He added he would support making it affordable, so more residents would attend. Mr. Ballanger stated local residents who host their wedding at EBHC will receive a 10% discount. He added a public event, Slice of Twin Cities, was held at EBHC on October 21, 2018, and EBHC did a trade-out with them for advertising. He noted 500 people attended that event. 10/29/18 -7- Mr. Boganey stated a public event could be planned during a time of year when the demand for events and activities at the Community Center would be low. IV. UTILITY FUNDS Public Works Director Doran Cote stated the Public Works Department provides services and infrastructure maintenance in a quality, cost-effective manner. He added the City has 121 miles of water main, 7,000 metered single-family homes and 16,000 metered multi-family homes, and a total of 9,000 sewers. He noted safe drinking water standards are a priority goal, as well as management of the stormwater run-off maximum daily load plan. Mr. Cote stated a maintenance schedule manual for new treatment plant will be developed in 2019, as well as streamlining of management strategies. He added the Public Works Department is currently addressing the City’s abandoned wells and plans to seal 20 wells per year. He noted a sanitary sewer videotaping program has been introduced, and 31.9 miles of sewer were televised in 2018. Mr. Cote reviewed the Public Works Department’s key initiatives for 2019: completion of Water Tower 2; and rehabilitation of Wells 2 and 3 as well as the 70th Avenue trunk storm sewer. He added anticipates adding1 full-time sewer maintenance employee. Mr. Cote stated new streetscape elements have been added throughout the City since 2009, including 24 rain gardens. Stormwater regulations continue to expand, with additional regulations and requirements for maintenance, inspection and reporting. The Public Works Department provides twice-weekly trash pick-up and weekly bus-stop maintenance. He noted an additional F/T maintenance employee is required. Mr. Reinhardt reviewed the Public Works Department’s $2.6 million proposed bond issue for infrastructure improvements that have been identified in the Capital Improvement Plan. He added annual payments will begin in 2020 and the rate increase will level over a period of time. Mr. Reinhardt stated the City’s storm sewer utility rate is a flat fee, and not a volume-based charge. He added the fee is the third lowest among comparable metropolitan cities. He noted the street light utility rate should remain steady from 2018 to 2019. Mr. Reinhardt stated no increase is projected in 2019 for the recycling utility rate. He added the City’s biennial curb-side recycling pick-up will take place the first week in April 2019. He noted City Staff have already received phone calls looking for information. Councilmember Ryan asked whether the City’s biennial curbside recycling pickup is covered under the residential recycling charge. Mr. Reinhardt confirmed this. Councilmember Ryan stated residents would like to have the curbside recycling pickup every year. He added perhaps the City Council could review this issue. Mayor Willson stated recycling rates will increase when organic recycling is introduced in 2022. Mr. Boganey agreed. 10/29/18 -8- Councilmember Graves stated the only budgetary issue that concerns her is the purchase of a SWAT vehicle. Councilmember Graves asked whether Public Works full-time Maintenance II employees have a division of labor. Mr. Cote confirmed this, adding there is some cross-functioning, but each group has specific duties. Mayor Willson asked whether there is a plan in place for the “living wage” initiative for the City’s part-time employees. Mr. Reinhardt stated implementation is planned by the City depending upon how much funding is allocated. Mayor Willson stated part-time staff should be made aware so the City can maintain its employees over the long term. Councilmember Ryan stated qualified workers are in high demand, as referenced by Mr. Ballanger, which will drive wages up. He added, however, the City must consider how this will affect the budget in the coming years, and what is reasonable and feasible. Mr. Boganey stated funding has been allocated for this initiative, but it will happen in stages. He added a solution might be to consider $15/hour instead of $16.16/hour. Mayor Willson stated he does not support that. He stressed the importance of taking the lead on implementing the new minimum wage among City staff, to encourage other entities to do the same. Mr. Boganey stated City Staff is reviewing all options to determine what is economically feasible. Mr. Boganey reminded the meeting attendees that absentee voting starts tomorrow, October 29, 2018. Balloting will take place at the Community Activity Center. Councilmember Graves requested that this information be made public. Mr. Boganey stated it is posted on the City website. V. FUTURE BUDGET DISCUSSIONS Mr. Reinhardt stated this meeting is the final budget work session. He added a public hearing is scheduled for December 3, 2018, to include the final budget presentation. VI. ADJOURNMENT Councilmember Graves moved and Councilmember Ryan seconded to adjourn the Work Session at 8:47 p.m. Motion passed unanimously.