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HomeMy WebLinkAbout2019 08-19 CCM Financial Commission Joint Work SessionMINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL,/FINANCIAL COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA JOINT WORK SESSION AUGUST 19, 2019 CITY HALL — CITY COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council/Financial Commission Joint Work Session was called to order by Mayor Elliott at 6:30 p.m. Mayor Elliott stated tonight's meeting would include budget presentations from three City Departments: Community Development, Public Works and Finance. ROLL CALL Mayor Mike Elliott and Councilmembers April Graves and Dan Ryan. Also present were Financial Commissioners David Dwapu, Tia Hedenland, Taneshia Kragness, and Abate Terefe. Also present were City Manager Curt Boganey, City Planner Meg Beekman, Director of Fiscal & Support Services Nate Reinhardt, and Public Works Director Doran Cote. APPROVAL OFAGENDA There was a motion by Councilmember Ryan and seconded by Councilmember Graves to approve the agenda as submitted. The motion passed. COMMUNITYDEVELOPMENT DEPARTMENT Community Development Director Meg Beekman reviewed strategic priorities and highlights in 2019 and the requested budget for 2020. She added the mission of the Community Development Department is to preserve and enhance the quality of life for residents and businesses. The Department guides the development of the city and balances issues related to planning, designing, and providing business assistance. Strategic priorities include targeted redevelopment, as well as the importance of a safe, secure and stable community and resident economic stability. Ms. Beekman stated the Department has 16 staff members, in a mix of part-time and full-time staff, including seasonal summer interns that assist with Code enforcement as well as Brooklynk Program interns. The Department's primary functions include a building and construction regulatory program; permitting and inspections; administration of the rental licensing program; property maintenance; vacant buildings; ownership services and homeownership programs. Also included in Community Development are planning and zoning services, Economic Development Authority programs, business retention, and workforce development. Councilmember Graves asked whether if there is staff designated for specific roles. Ms. Beekman stated Business and Workforce Development Specialist Brett Angell focuses on business retention and supports EDA activities and strategic acquisitions. City Planner and Zoning Administrator Ginny McIntosh focus on day-to-day planning activities. Deputy Director Jesse Anderson manages all issues related to the HRA, housing program, Department administration and activities related to rental programs and permits. Ms. Beekman stated Housing and Community Standards Supervisor Xiong Thao oversees licensing and Code Enforcement programs. Dan Grinnsteiner is the City's Building Official. Ms. Beekman stated the Planning and Building areas have been extremely busy over the last 12-18 months. The City had just over $77 million in building permit activity in 2018, and permit activity revenue in 2019 is going in the same direction, with $44 million years to date in project valuation. Ms. Beekman stated the City's rental program is a performance-based licensing program, with inspections performance and coordination of Association of Responsible Managers meetings, held every other month for all apartment managers. She added this is an effective way to receive and resolve tenant complaints regarding Code violations and investigate unlicensed rental properties. She noted the rental licensing program is nationally recognized for its innovation and efficiency. Councilmember Graves asked whether there is an informational review with details regarding Type 4 rental licenses. Ms. Beekman stated the program was adjusted last year to change provisional licenses to 6 months, but it is too soon to find a pattern or provide helpful data. She added the goal is to reduce the number of Type 4 licenses. Ms. Beekman stated City Staff undertakes a few different Code Enforcement programs — both complaint -based and weekly "sweeps." She added an abatement program is used with guidelines for regulations for non-compliance. Mr. Boganey stated abatements are a last resort as they require immediate resolution by the City. Ms. Beekman agreed, adding the City's inspectors do a great job of assessing Code Enforcement situations. Ms. Beekman reviewed the "knock and talk" Code Enforcement engagement program, which gives residents time and resources to address Code violations before a citation is issued. She added the average number of days that property is out of compliance had dropped significantly, from 46 days in 2014 to 9 days in 2019. Councilmember Ryan stated he appreciates hearing about this engagement program. He added many residents had expressed their appreciation of City Staff's handling of Code violations. Mayor Elliott asked whether there is a cost-saving associated with this program. Ms. Beekman stated City Staff had not calculated a dollar amount, but there is a significant reduction in the amount of Staff time spent on this issue is a qualitative cost-saving, as well as community image improvement. She added she could calculate estimated cost savings for the City Council's review. 08/19/2019 Page 2 Mr. Boganey stated this approach to customer service has a profound effect on the way residents perceive the City and its employees. Councilmember Ryan asked whether it is possible to figure out an annual cost for a curbside clean- up. He added many residents would like to see an annual clean-up. Mayor Elliott agreed with that suggestion. Ms. Beekman stated the vacant building program was started in 2009 when there was a high number of foreclosures due to the recession. She added approximately 20% of the single-family housing stock experienced foreclosure. She noted maintenance of vacant properties is addressed by this program, including regular inspection by a Code Enforcement Officer and stringent compliance with regulations. Ms. Beekman stated the former Sears and Earle Brown Bowl sites both take up a lot of Staff time and energy, as well as the former Target and Norwood Inn sites. They have all experienced water main breaks, flooding, vandalism, and break-ins, except Target. She noted the vast number of properties are single-family homes that are brought up to Code because of this program. Ms. Beekman reviewed Community Development Department activities and achievements to date: 14 planning applications received so far in 2019; the 2040 Comprehensive Plan was adopted; Opportunity Site agreement with Alatus Developers; continued work on master planning for the Opportunity Site; redevelopment is underway at the former Jerry's Foods site; Centra Homes 30 -lot subdivision planned at Eastbrook Estates; approval of a preliminary plat for a single-family home at 5355 Emerson Avenue; and preliminary agreements for commercial development at 1601 James Circle and Brooklyn Boulevard at 61St Avenue. Ms. Beekman stated, concerning economic development, many events and opportunities have been or are being planned: the Saturday Market had its second year with 137 vendors and approximately 1,000 attendees at four events. The City has an option agreement on the Target property, and due diligence is being completed. A joint Financial/Planning Commissions meeting is scheduled for August 29 to review the draft master plan for the Opportunity Site. The Economic Development Authority (EDA) acquired a variety of properties and received over $900,000 in grant funding to support planning activities. Staf has prepared information for distribution to local businesses. Ms. Beekman stated other development activities include: adoption of a backyard chicken ordinance, a beekeeping Ordinance; an amended rental licensing ordinance, which will hopefully result in a reduction of Type 4 licenses; adoption of a tenant protection ordinance that has been used since it was adopted; development of a rental housing brochure and tenant resources packet; and the commercial "Eat and Meet" brochure was updated; hired a new Building Inspector; and implemented Bluebeam software, which is an electronic plan review process. Ms. Beekman stated the Community Development Department requested increase is related to staffing. She added there were reductions in the supplies budget, and professional services maintained at the same level. She added a 14.75% increase, or $231,000, is requested. 08/19/2019 Page 3 Ms. Beekman stated a request for a software purchase for 2020 that will increase the Department's ability to provide improved customer service. This software would replace the current licensing and permits software and is a fully integrated system that would be more user-friendly and allow customer interface. The permit software would be integrated with Bluebeam planning software so contractors and residents will be able to submit building plans electronically. The one-time fee for the new software would be $61,000 to initiate the new system, and the recurring annual fee would be the same as the current software. Mayor Elliott asked whether residents can still submit permit applications on paper. Ms. Beekman confirmed that it will be an option for residential permits. Ms. Beekman stated tenant protection would be built into the rental program starting in fall 2019. She added this would help improve communication with renters. She noted mailing costs would increase the annual printing budget to accommodate that. Ms. Beekman stated the International Property Maintenance Code (IPMC) is being reviewed for adoption by the Housing Commission, and the goal is to adopt it before the end of 2019 for use in place of the property maintenance code currently used by the City. Ms. Beekman stated the Zoning Code is being re -written to ensure implementation of the 2040 Comprehensive Plan. She added this would also enable development strategies and visioning processes for development projects including the Sears site. Ms. Beekman stated, concerning HRA and housing, CDBG allocations are being reviewed, and a down payment assistance program has been created. She added the intention is that the program will be expanded along with the City's relationship with Center for Energy and Environment. She noted the new permit software would help streamline the entire process. PUBLIC WORKS DEPARTMENT Public Works Director Doran Cote stated the Public Works Department is responsible for the maintenance and operations of the City's infrastructure, including 100 miles of streets, 5,000 traffic signs, over 500 acres of natural spaces, and 62 miles of trails and sidewalks. He added no change in staffing levels is proposed. He noted the Department's strategic function is the administration and budgeting of CIP work, infrastructure planning, and responsibility for the State Aid street system. Mr. Cote stated the City's streets are repaired and patched, and maintenance crews sweep the streets year-round. He added the sweepers could cover every mile of the city in approximately five days, and there is always one sweeper out on the City's streets. Maintenance staff is responsible for snow and ice control operations, boulevard tree trimming; tree removals, city streetscape, traffic control signs and signals, and pavement markings. 08/19/2019 Page 4 Councilmember Graves asked whether Public Works staff communicate with Hennepin County staff when tree trimming is necessary on County roads. Mr. Cote stated City Staff try to communicate with County staff as necessary, but it is not often the case that they are available. Mr. Cote stated Maintenance staff is also responsible for parks facilities, ball fields, tennis courts, and ice rinks, as well as tree trimming and parks reforestation. Mayor Elliott asked whether the use of ice rinks have decreased, and how much funding goes into maintaining the ice rinks. Mr. Cote stated the ice rinks have declined in popularity, and City Staff is reviewing this issue with the new Parks supervisor to see if this is a viable use, or if it should be reduced. Mr. Cote stated the Emerald Ash Borer remediation program would begin during the Winter of 2019- 20. Mayor Elliott asked whether the only solution is to remove infested trees. Mr. Cote stated treatment would only delay an infested tree's inevitable decline. Mr. Cote stated, concerning streets performance, the City's street rating average is 7 out of 10. He added the target value is 8, which is attainable through the CIP. Mayor Elliott asked what type of streets fell into the "poor" category. Mr. Cote stated some streets were borderline last time they were rated, and this time they dropped a few points. He added these streets are in next year's reconstruction area, for the most part. Noted streets in the "poor" category are more difficult and expensive to maintain. He noted that technology has improved, and streets last longer, so it is not necessary to change the 30 years. Mr. Cote stated the Public Works Department is requesting an 8% increase over last year's budget. He added a new Engineering Technician was hired with City Council approval. He noted the budget included a vehicle which was removed from the budget and added to the 2020 budget. Mr. Cote stated Parks Maintenance would like to acquire a more powerful vehicle for a total of about $7,000. Mr. Cote stated a Maintenance position would be carried forward to the 2021 budget to augment existing staff in waste removal, streetscape and parks maintenance, and mowing. Mr. Boganey stated Maintenance staff have experienced a significant workload, and it is unrealistic to try to maintain streetscapes and facilities maintenance at current staff levels. Commissioner Kragness asked what the cost will be for the Parks position. Mr. Reinhardt stated that position is budgeted for approximately $90,000. Commissioner Terefe asked whether vacant commercial properties like the Target store could be used for an interim purpose, like a school program or local start-up. 08/19/2019 Page 5 Ms. Beekman confirmed the vacant building program applies to residential and commercial properties, which must be registered and monitored. She added the Sears site is the most prominent such property, which requires a significant amount of attention and maintenance from City Staff. She noted the vacant building program requires onsite management, and the City Staff they have indicated they want to work with the City. Ms. Beekman stated the EDA had discussed the possibility of purchasing the Target site. She added the School District is leasing the Brown College space for temporary classrooms while the high school is under construction. She added the City amended the Ordinance to allow the School District to use the site temporarily. She noted City Staff are discussing the best use for that site, which is a great spot for redevelopment. Mr. Boganey asked for an update on the old Wells Fargo building on Brooklyn Boulevard. Ms. Beekman stated Development staff have met with representatives of Old National Bank, who have plans to purchase the Wells Fargo building. She added this bank has a "minority -majority" program that uses census tracking to determine areas where the majority population has minority status and may require additional assistance to purchase a home. Ms. Beekman stated the new owner had expressed an interest in the city's CDBG home buyer program. She added they would like to discuss these and other programs with the City. FINANCE DEPARTMENT Finance Director Nate Reinhardt reviewed the existing functions of the Finance Department, which currently has six staff members: financial reporting and coordination of the City audit; utility billing; and property insurance. He added there are no proposed staffing changes for 2020. Mr. Reinhardt stated key initiatives for 2020 include the development of a financial plan for the Opportunity Site; continued community development and improved customer relationships; and increased process efficiency in utility billing. Mr. Reinhardt stated the City's bond rating of Double -A or better is an excellent rating for Brooklyn Center. Mr. Reinhardt stated the implementation and encouraged the use of the new utility billing software has improved returns and provides data on other cities that use the same software. He added Brooklyn Center is on the high end for utilization, and the software saves staff time and makes it easier for customers to pay their utility bills. He noted residents could receive text notifications with billing options, including how to pay and when their bill is due. Mr. Boganey stated the data is impressive, and the financial situation is extremely competitive. He added the bond rating of Double -A is excellent. He commended Mr. Reinhardt and his staff for their hard work. 08/19/2019 Page 6 Mayor Elliott requested clarification regarding payroll percentages. Mr. Reinhardt stated that the figure is not available as payroll goes through a separate Auto -Pay system processed by the bank. Mr. Reinhardt stated additional funding for programs is allocated to Brooklyn Bridge Alliance, Brooklynk, Vocational Restoration Services, Cornerstone Domestic Violence Resource Program, and Immersion programs. Mayor Elliott stated he attended Brooklynk annual gala event and learned some statistics about the program. He added 100% of the student participants graduate from high school, and 80% go on to graduate from college. He added statistics are proof that funding these partnerships is important. He noted the City Council should receive this type of information on an annual basis. Mr. Boganey agreed to contact these organizations and invite them to give a presentation at an upcoming City Council meeting. He added the Convention and Visitor's Bureau should be included in that list as they have not provided an update to the City Council for several years. Commissioner Kregness stated it would be helpful for Commissioners and Councilmembers to know ways that they can support these organizations, through volunteerism and involvement, and to get more information about their programs. Councilmember Ryan stated the Convention and Visitor's Bureau receives annual statutory funding of $554,000 that does not affect the levy, and City Staff attends their Board meetings. He added the City Council should be aware of what the Bureau is doing for the City of Brooklyn Center. He noted a Councilmember could attend their Board meetings as well. Mayor Elliott agreed. Ms. Beekman stated one of the focuses of Community Development's Business Retention and Expansion Program is to go out and meet with businesses, hotels, and tourism outlets. She added hotels and tourism are considered a City export, as the City produces more lodging than the residents of Brooklyn Center can consume. Councilmember Graves stated she would support having presentations for the City Council scheduled at Regular Meetings from Northern Star and Cornerstone. She added these organizations could potentially have a big impact on the community. Mr. Reinhardt stated the City received a Double -A rating from Standard & Poor, which is a high rating. He added they review policies and procedures, effective program management, and strength of the local economy. Commissioner Abate asked for clarification regarding the Brooklynk Program. Mr. Boganey stated several City Staff and the Mayor serve on the Executive Board, as well as committees, and Brooklynk administration is located in the City of Brooklyn Park. He added, however, Brooklyn Center and Brooklyn Park both run the programs. He noted he and Ms. Beekman serve on the Brooklynk Steering Committee. 08/19/2019 Page 7 Mr. Boganey stated the youth of Brooklyn Center are served by the Cornerstone program, as well as Northern Star Juvenile Diversion Program. Councilmember Ryan asked whether the Northern Star Program is operated jointly with Hennepin County. He added Northern Star is a program that diverts youth away from the juvenile detention system. Mr. Boganey stated Hennepin County has its juvenile diversion program. Mr. Boganey stated, concerning Mr. Reinhardt's report, a Double -A rating is an excellent result. He expressed his appreciation to the Financial Commissioners and City Council for the policies and guidance they have adopted which ensure that the City stays within budget. ADJOURNMENT There was a motion by Councilmember Ryan and seconded by Commissioner Graves to adjourn the meeting. The motion passed. The Brooklyn Center City Council/Financial Commission adj ourned at 8:52 p.m. 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 August 17, 2019. 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 23, 2019, Regular Session. 08/19/2019 Page 8 9 Mayor