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HomeMy WebLinkAbout2020 05-11 CCM Work SessionMINUTES 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 MAY 26, 2020 CALL TO ORDER The Brooklyn Center City Council/Economic Development Authority (EDA) met in Work Session called to order by Mayor/President Mike Elliott at 7:42 p.m. The meeting was conducted via Webex. ROLL CALL Mayor/President Mike Elliott and Councilmembers/Commissioners Marquita Butler, April Graves, Kris Lawrence -Anderson, and Dan Ryan. Also present were City Manager Curt Boganey, Deputy City Manager Reggie Edwards, Finance Director Mark Ebenstemer, City Cleric Barb Suciu, City Attorney Troy Gilchrist. REVIEW PROCEDURES FOR OPEN FORUM AND PUBLIC HEARINGS City Clerk Barb Suciu reviewed potential best practices for virtual public hearings to ensure public participation in City meetings. She added City Staff reviewed practices in other cities and information from the League of Minnesota Cities, and met with the City Attorney to review potential changes. Ms. Suciu stated legal notice for public hearings will be published in the newspaper, posted at City Hall and, if zoning -related, mailed to neighboring properties. She added all City Council meetings are on the online City calendar and meeting notices have a link to the Webex meeting. She noted the meeting agenda can be downloaded, and also has a direct URL link to the Webex meeting. Ms. Suciu stated public hearings and open forums can be joined during the meeting, and rules will be listed in the agenda. She added the meeting host has the ability to mute participants, and individuals will be called upon by the Mayor. She noted the meeting host can also stop the video for a participant or expel them from the video. A participant can re-enter the meeting. Deputy City Manager Reggie Edwards stated the City Attorney has been consulted regarding the process of muting or expelling someone from a video meeting. He added residents and others have a right to free speech, but people engaging in unruly behavior can be muted or expelled. He added City Staff does not have the ability to expel someone permanently. Mr. Boganey stated disruptive behavior and negative protests are very rare, and people generally conduct themselves in a respectful manner. He added City Staff believes that inviting the public OS/26/20 -1- to the online meetings will encourage public participation. He noted City Staff will follow the direction of the Mayor. COVID-I9 FINANCIAL IMPACT OVERVIEW AND DISCUSSION Finance Director Marlc Ebensteiner provided a review of the City's actions related to COVID-19, including Resolutions to declare a Local Emergency and close Earle Brown Heritage Center (EBHC) as well as both liquor stores and the Community Center. He added these actions will have a significant impact on the economy, and the daily lives of residents. He noted there is continued uncertainty about the impact on revenues. Mr. Ebensteiner stated estimated revenue shortfalls have been increased to 10% fiom the 7% delinquency rate experienced in the last significant recession in 2007-2009. He added property taxes will be collected over time, as they transfer into delinquency and are collected over the next 7 years. He noted this could create cash flow issues. Mr. Ebensteiner stated the City's hotel and lodging industry is expected to take a significant hit. He added the City collects 3% of lodging taxes and remits 95% to the Visitor's Bureau, which amounts to approximately $600,000. He noted it is anticipated to that this fund will be at 20% which will be a cash impact. Mr. Ebensteiner stated a total overall estimated shortfall of $2,490,721 is estimated by City Staff, including a total non -personnel reduction of $906,595. He added some traffic -related expenditures will be funded with Municipal State Aid. He noted a net savings from personnel turnover of $260,000 is anticipated. Mr. Ebensteiner reviewed options for covering the revenue shortfall, including State and federal legislation; use of general fund reserves; additional expenditure reductions; use of emergency reserve. Mr. Ebensteiner stated the "We Care" bill has been introduced at the State level to cover costs related to COVID-19. He added the City has incurred approximately $6475000, mostly personnel costs and some for supplies. He noted a federal bill, the "Heroes Act", has allocated $375 million to aid local governments for direct reimbursement to aid revenue recovery. Mr. Ebensteiner stated there is a current balance of $12,372,940 in the General Fund reserves, with 5.6% needed to cover the estimated revenue gap. He added there would be an opportunity to change the policy to a lower percentage with a replenishment plan. He noted this option is problematic as there is generally an annual increase in personnel costs. He recommended consideration of a temporary policy to get back to the same threshold. Mr. Ebensteiner stated, with regard to additional expenditure reductions, the average employee costs the City approximately $100,000 in salary and benefits. He added layoffs would result in an approximately 65% savings, or between $100,000-200,000, but there would be impacts to City services. OS/26/20 -2- Mr. Ebensteiner stated, with regard to the use of the emergency reserve, a cash balance of $1.144 million was available as of December 31, 2019. He added, if the balance decreases, a plan must be established by the City Manager to replenish the fund back to $1 million. Mr. Ebensteiner stated the City Council's feedback and comments are requested, to dVW V1111ine whether the direction City Staff is recommending is in keeping with the City Council's expectations. Mr. Boganey stated it is hoped that the City Council, having reviewed the pros and cons of these options, will agree that City Staff is going in the right direction related to 2020, and also establishes a way forward in 2021. Councilmember/Commissioner Graves asked whether the four options are presented in order of priority. Mr. Boganey confirmed this, adding he would not suggest that any one option be used exclusively, except State and Federal funding. He added the correct answer would probably be to do some of each, depending upon the final deficit. Councilmember/Commissioner Graves asked how many people have been laid off. She added she would put layoffs below the emergency fund. She noted she hopes the Federal funding comes through. She expressed confidence in City Staff s knowledge and expertise, adding she appreciates the thoughtfulness that has gone into these recommendations. Dr. Edwards stated, with regard to staffing, there have been 123 total layoffs — 118 part-time seasonal staff and five full-time staff. Mr. Boganey stated that does not include four full-time EBHC employees. He added a good portion of the part-time staff that were laid off were recreation and Public Works seasonal employees. Councilmember/Commissioner Ryan expressed his agreement with Councilmember/ Commissioner Grave's comments. He added a reserve balance of 40% would be the lowest supportable amount. He noted he is willing to move forward with the recommendations and getting additional information on tax delinquencies in the next 60-90 days. Councilmember/Commissioner Butler thanked Mr. Ebensteiner for his presentation and expressed her agreement with the City Council's comments. She asked what the impact of the pandemic will be on the budget planning process. Mr. Boganey stated it would not be prudent to assume there will be a significant tax levy increase given unemployment levels and general economic conditions. He added City Staff and the City Council have a few months, and a series of budget meetings, before decisions have to be made. Mr. Ebensteiner stated the Capital Improvement Projects and Capital Project Funds Work Session will be held July 6, 2020; the budget overview will be held July 20, 2020; and the General Fund review will be held August 10, 2020. OS/26/20 -3- Mr. Boganey stated City Staff will be seeking City Council direction at the July 20, 2020 meeting related to what is reasonable and appropriate for next year's levy. He added the City should be able to go through the normal budget cycle and develop a balanced budget based on limitations and priorities that you have set. He stressed the importance of anticipating services that will be required in 2021 as a result of the pandemic. CouncilIII ember/Commissioner Ryan asked whether there is funding in the capital budget for refurbishment of the last of the three water towers, for approximately $1 million. Mr. Boganey stated that that project is already under way. Councilmember/Commissioner Ryan stated the Public Worlcs Department may be able to provide recommendations for capital improvements projects that can reasonably be deferred. He added the economic crisis related to the current health pandemic will come to an end, although his optimism fades when he observes the public's disregard for the safety and mitigation measures recommended by experts. Mr. Boganey stated it may not be necessary to defer capital projects that do not rely on General Fund taxes. He added there are very few capital projects that are paid directly from the General Fund, with the exception of the Street Reconstruction Program. He noted the only way to benefit the General Fund in the event of a capital deferral would be to delay street reconstruction. Mayor/President Elliott stressed the importance of conservative practices in planning for next year's budget. He added he believes the City is striking the right balance, although there will be further developments, and it will be important to continue to be open to new solutions. Mayor/President Elliott stated he has heard that other cities are considering ways to help people keep their jobs by having staff take weeks off, or other ways to allow more people to keep their employment. He stressed the importance of retaining City employees and keeping them employed. He noted he believes the City is on the right track, in terms of easing the burden on City Staff. VOLUNTEER COMMISSION APPOINTMENTS Councilmember/Commissioner Ryan stated he was unable to attend the City Council's March 9, 2020 meeting, at which a Planning Commissioner was appointed, followed by a discussion regarding appointment of volunteer Commissioners. He added there are numerous volunteers on the City's advisory Commissions whose terms have expired, and nothing has been done to re- appoint them. He requested a consensus from the City Council to obtain a report of Commission applicants from the City Clerk. He stressed the importance of determining which existing Commissioners' terms have expired so they can be re -appointed by the City Council. Councilmember/Commissioner Ryan stated, under City Code Section 3.6, General Information for the City Council, "The City Council appoints all committees, boards and commissions that serve in a purely advisory role to the City Council." He added appointments are made by the City Council as terms expire or as vacancies occur. He noted Commissioners give their time, OS/26/20 -4- energy and wisdom to assist and advise the City Council. He expressed his frustration that their terms have expired, and they wish to be re -appointed, but have been overlooked or ignored. Councilmember/Commissioner Ryan, as an example, referred to Housing Commissioner Kathy Amdahl and Planning Commissioner Jack MacMillan, whose terms have expired, and who have re -applied for their Commission seats. Commissioner Amdahl has worked tirelessly to distribute Welcome packets to new residents. Commissioner MacMillan has attended numerous educational planning programs to bring his expertise and advice to the City Council. He added some Commissioner's terms expired in December 2018. He noted it is disrespectful to overlook volunteers who have been serving on Commissions and want to conti vnue to do so. Councilmember/Commissioner Ryan stated he understands the goal is to increase diversity on the City's volunteer Commissions. He added it is disrespectful to treat existing Commissioners as if their service is not of value, even when there are insufficient applicants to fill the vacancies. Mayor/President Elliott expressed his agreement with Councilmember/Commissioner Ryan's sentiments. He stated he has recommendations for Commission appointments, to be reviewed at the City Council's next Regular Session meeting. He added this issue was raised by Commissioner Graves but has not been addressed due to the pandemic and other issues, including his own recent surgery. He noted the City's volunteer Commissioners are valued members of the community and their service is invaluable. Councilmember/Commissioner Ryan stated he is pleased to hear there is plan in place for filling Commission positions. He added he has received negative feedback from residents on this issue. He noted he understands the process has been impeded by the public health crisis. He expressed his hope that the Mayor/President's surgery went well, and he is recovering expeditiously. Councilmember/Commissioner Ryan stated he looks forward to reviewing the Mayor/President's recommendations for Commission appointments. He added he would support a blanket motion to re -appoint existing Commissioners if vacancies are not filled. He noted he looks forward to reviewing Commission appointments at the next Regular Session meeting. Mr. Boganey agreed to add it to the agenda. ADJOURNMENT Councilmember/Commissioner Ryan moved and Councilmember/Commissioner Butler seconded adjournment of the City Council/Economic Development Authority Work Session at 8*49 p.m. Motion passed unanimously. OS/26/20 -5- STATE OF MINNESO I A) COUNTY OF HENNEPIN) ss. Certification of Minutes CITY OF BROOKLYN CENTER) The undersigned, being the duly quaed 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 May 11, 2020. 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 May 26, 2020, Regular Session. Barbara Suciu, City Clerk - - ike Elliott, Mayor OS/26/20 -6-