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HomeMy WebLinkAbout2018_03_27 CC PKT - RevisedCity Council City of Brookings Meeting Agenda Brookings City Council Brookings City & County Government Center 520 3rd St., Suite 230 Brookings, SD 57006 Phone: (605) 692-6281 Fax: (605) 692-6907 "We are an inclusive, diverse, connected community that fuels the creative class, embraces sustainability and pursues a complete lifestyle. We are committed to building a bright future through dedication, generosity and authenticity. Bring your dreams!" Room 310, Chambers6:00 PMTuesday, March 27, 2018 The City of Brookings is committed to providing a high quality of life for its citizens and fostering a diverse economic base through innovative thinking, strategic planning, and proactive, fiscally responsible municipal management. 6:00 PM REGULAR MEETING 1. Call to Order / Pledge of Allegiance. 2. Record of Council Attendance. 3. Consent Agenda: Action: Motion to Approve, Request Public Comment, Roll Call Matters appearing on the Consent Agenda are expected to be non-controversial and will be acted upon by the Council at one time, without discussion, unless a member of the Council or City Manager requests an opportunity to address any given item. Items removed from the Consent Agenda will be discussed at the beginning of the formal items. Approval by the Council of the Consent Agenda items means that the recommendation of the City Manager is approved along with the terms and conditions described in the agenda supporting documentation. 3.A. Action to approve the agenda. 3.B.ID 2018-0149 Action to approve the March 13, 2018 City Council Minutes. 3/13/2018 CC MinutesAttachments: 3.C.ID 2018-0150 Action to schedule a special council meeting on April 3, 2018. 3.D.RES 18-023 Action to approve Resolution 18-023, a Resolution Authorizing the Mayor to Sign an Agreement for Project PP-PS 3301(12), PCN 0613, Medary Avenue Rail Crossing Project, Brookings, SD. Page 1 City of Brookings March 27, 2018City Council Meeting Agenda Resolution Agreement Attachments: 3.E.ID 2018-0155 Action to abate the 2017 Drainage Fee and Interest for Parcel Number 40625-00200-003-05, located at 721 20th Avenue on Lot 3A, Block 2, University First Addition in the City of Brookings, South Dakota. Abatement FormAttachments: 4. Items removed from Consent Agenda. Action: Motion to Approve, Request Public Comment, Roll Call 5. Open Forum/Presentations/Reports: 5.A.ID 2018-0151 “Tangle Town” - Public Arts Video. 5.B.ID 2018-0147 Public Inquiry about Modifying Snow Removal Operations by adding Snow Gates to Equipment. 5.C.ID 2018-0029 National Volunteer Week Proclamation - April 15-21, 2018 ProclamationAttachments: 5.D. Open Forum. At this time, any member of the public may request time on the agenda for an item not listed. Items are typically scheduled for the end of the meeting; however, very brief announcements or invitations will be allowed at this time. 5.E. SDSU Student Association Report. 6. Contracts/Change Orders: 6.A.RES 18-021 Action on Resolution 18-021, a Resolution awarding the Contract for Remodeling Office and Meeting Space in the Swiftel Center. ResolutionAttachments: Action: Motion to Approve, Request Public Comment, Roll Call 6.B.RES 18-022 Action on Resolution 18-022, a Resolution awarding the Contract on the 2018-04SSI, 8th Street & 20th Avenue Drainage Improvement Project. Resolution Map Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 7. Ordinance First Readings: No vote is taken on the first reading of an Ordinance. The title of the Ordinance is read and the date for the public hearing is announced. Page 2 City of Brookings March 27, 2018City Council Meeting Agenda 8. Public Hearings and Second Readings: 8.A.ORD 18-005 Public Hearing and Action on Ordinance 18-005, an Ordinance Amending Chapter 26 of the Ordinances of the City of Brookings to include the regulation of Transportation Network Companies in the City of Brookings. Ordinance - clean Ordinance - marked Attachments: Action: Open & Close Public Hearing, Motion to Approve, Roll Call 8.B.RES 18-016 Public Hearing and Action on Resolution 18-016, a Resolution authorizing the City Manager to enter into an Operating Agreement for a Liquor License for Apple BRK, LLC, dba Applebee’s Neighborhood Grill & Bar, Jonathan Rolph, David Rolph, and Gregory Stroud, owners, 3001 LeFevre Dr., Brookings, SD, legal description: S 225’ of Lot 8, LeFevre Addition. Resolution Operating Agreement Hearing Notice Attachments: Action: Open & Close Public Hearing, Motion to Approve, Roll Call 9. Other Business: 10. City Council member introduction of topics for future discussion. Any Council Member may request discussion of any issue at a future meeting only. Items cannot be added for action at this meeting. A motion and second is required stating the issue, requested outcome, and time. A majority vote is required. 11. Adjourn. Brookings City Council: Keith Corbett, Mayor, Mary Kidwiler, Deputy Mayor & Council Member Council Members Patty Bacon, Dan Hansen, Ope Niemeyer, Holly Tilton Byrne, and Nick Wendell Council Staff: Jeffrey W. Weldon, City Manager Steven Britzman, City Attorney Shari Thornes, City Clerk View the City Council Meeting Live on the City Government Access Channel 9. Rebroadcast Schedule: Wednesday 1:00pm/Thursday 7:00pm/Friday 9:00pm/Saturday 1:00pm The complete City Council agenda packet is available on the city website: www.cityofbrookings.org Assisted Listening Systems (ALS) are available upon request. Please contact Shari Thornes, Brookings City Clerk, at (605)692-6281 or sthornes@cityofbrookings.org. If you require additional assistance, alternative formats, and/or accessible locations consistent with the Americans with Disabilities Act, please contact Shari Thornes, City ADA Coordinator, at (605)692-6281 at least three working days prior to the meeting. Page 3 City of Brookings City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ID 2018-0149,Version:1 Action to approve the March 13, 2018 City Council Minutes. Attachments: 3/13/2018 Minutes City of Brookings Printed on 3/21/2018Page 1 of 1 powered by Legistar™ Brookings City Council March 13, 2018 (unapproved) The Brookings City Council held a meeting on Tuesday, March 13, 2018 at 5:00 p.m., at City Hall with the following City Council members present: Mayor Keith Corbett, Council Members Mary Kidwiler, Dan Hansen, Holly Tilton Byrne, Nick Wendell, Patty Bacon, and Ope Niemeyer. City Manager Jeff Weldon, City Attorney Steve Britzman, and Communications Specialist Laurie Carruthers were also present. 5:00 PM Study Session The City Council held discussions on the following: the 2018-2023 Strategic Plan suggested format, and the list of potential recommended action steps identified by the Affordable Housing Task Force Final Report. 6:00 PM Regular Meeting Consent Agenda. A motion was made by Council Member Hansen, seconded by Council Member Niemeyer, to approve the Consent Agenda. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Hansen, Kidwiler, Bacon, Wendell, and Tilton Byrne. A. Action to approve the agenda. B. Action to approve the February 27, 2018 City Council Minutes. C. Action on an appointment to the Hospital Board: Lynn Darnall (term expires 1/1/2020). D. Action to approve Resolution 18-024, a Resolution amending the Residential Contractor’s Licensing Fee for Certain Building Projects. Resolution 18-024 - A Resolution Amending the Residential Contractor’s Licensing Fee for Certain Building Projects Whereas, the City desires to assist Interlakes Community Action, Inc. and Habitat for Humanity with construction of affordable housing within the City of Brookings; and Whereas, Interlakes Community Action, Inc. and Habitat for Humanity have undertaken several affordable housing projects to serve the residents of the City of Brookings. Now, Therefore, Be It Resolved that the annual Residential Contractor’s Licensing Fee be waived for Interlakes Community Action, Inc. and Habitat for Humanity. Open Forum. Rainer Westall lives at 2011 Western Avenue S. He is currently on a septic system, but understands there are plans to install a permanent sewer system. He wants to know when this project will occur and any possibility to advance it on the City’s project list. City Manager Weldon stated the 20th Street Improvement Project is scheduled for 2018 and would include water and sewer systems, but the City is still working through the details. Residents along this project would be responsible for the service line extensions from the right-of-way to the house. Westall will meet with Weldon. First District Planning and Development. Todd Kays, First District Planning and Development Executive Director, provided an update on First District activities to the City Council. City of Brookings Financial Report. Shawna Costello, Finance Director, presented the 2017 "unaudited" Annual City of Brookings Financial Report. FIRST READING – Ordinance 18-005. Introduction and First Reading was held on Ordinance 18-005, an Ordinance Amending Chapter 26 of the Ordinances of the City of Brookings to include the regulation of Transportation Network Companies in the City of Brookings. Public Hearing: March 27, 2018. Ordinance 18-003. A second reading was held on Ordinance 18-003, an Ordinance authorizing Supplemental Appropriation #1 to the 2018 Budget. A motion was made by Council Member Hansen, seconded by Council Member Kidwiler, that Ordinance 18- 003 be approved. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Hansen, Kidwiler, Bacon, Wendell, and Tilton Byrne. City Council Member introduction of topics for future discussion. Council Member Wendell requested the affordable housing conversation be continued at a future study session, but before the Strategic Planning Session. Mayor Corbett scheduled a continuation of the affordable housing discussion at a Study Session on April 24. Adjourn. A motion was made by Council Member Hansen, seconded by Council Member Wendell, to adjourn the meeting at 6:33 p.m. The motion carried by a unanimous vote. CITY OF BROOKINGS Keith W. Corbett, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ID 2018-0150,Version:1 Action to schedule a special council meeting on April 3, 2018. State Law requires official Council action to schedule or cancel a meeting. City of Brookings Printed on 3/21/2018Page 1 of 1 powered by Legistar™ City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:RES 18-023,Version:1 Action to approve Resolution 18-023, a Resolution Authorizing the Mayor to Sign an Agreement for Project PP-PS 3301(12), PCN 0613, Medary Avenue Rail Crossing Project, Brookings, SD. Summary: This resolution will authorize the Mayor to sign the Agreement for Project PP-PS 3301(12), PCN 0613 for the installation of highway-rail grade crossing signals and precast concrete crossing surfacing at the Medary Avenue railroad crossing in Brookings. Background: The South Dakota Department of Transportation (SDDOT) has programmed Project PP-PS 3301 (12), PCN 0613, to construct rail crossing signals and precast concrete crossing surfacing at the Medary Avenue railroad crossing. The project is being funded and administered by the SDDOT, and is anticipated to be constructed in the 2018 construction season. The estimated total project cost for the engineering and precast concrete crossing surface is $16,800.00. The City of Brookings’ share of the project is 10%, which is anticipated to be $1,630.00. The City’s cost was included in the recent budget amendment and the final actual cost will be based on as-constructed quantities. The SDDOT will coordinate with Rapid City, Pierre & Eastern Railroad, Inc. for the rail crossing signal construction as a separate project and will pay the 10% share of the signal cost. As part of this project, the City agrees to install new sidewalk up to the new rail crossing and it will be constructed after the rail signals and concrete crossing surfacing are installed. The sidewalk work will be included in the Concrete Maintenance Project and will be bid separately. This project will complete another railroad crossing signal for the City of Brookings, with only Western Avenue and 17 th Avenue South remaining. Fiscal Impact: The City’s share of the project is approximately $1,630.00. Recommendation: Staff recommends approval. Attachments: Resolution Agreement City of Brookings Printed on 3/21/2018Page 1 of 1 powered by Legistar™ Resolution 18-023 A Resolution for Authorizing the Mayor to Sign an Agreement for Project PP-PS 3301(12), PCN 0613, Medary Avenue Rail Crossing Signals, Brookings, SD Whereas, the Brookings City Council desires the design, construction administration and construction of highway rail grade crossing signals for Project PP-PS 3301(12), PCN 0613 on Medary Avenue; and Whereas, the City of Brookings is obligated and hereby agrees to provide the associated roadway work required for the crossing surface and to maintain the roadway, sidewalks and pavement markings at the highway-rail grade crossing as stated in the Agreement between the City and the State of South Dakota; and Whereas, the City of Brookings is obligated and hereby agrees to reimburse the State the City’s 10% share of the participating project costs. Now, Therefore Be It Resolved, that the Mayor is hereby authorized to sign the Agreement and other related documents for Project PP-PS 3301(12), PCN 0613. Passed and approved this 27th day of March, 2018. CITY OF BROOKINGS ____________________________ Keith W. Corbett, Mayor ATTEST: ________________________ Shari Thornes, City Clerk City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ID 2018-0155,Version:1 Action to abate the 2017 Drainage Fee and Interest for Parcel Number 40625-00200-003-05, located at 721 20th Avenue on Lot 3A, Block 2, University First Addition in the City of Brookings, South Dakota. Summary: This motion will authorize Brookings County to abate the 2017 Drainage Fee and Interest in the amount of $178.98 for Parcel Number 40625-00200-003-00, located at 721 20th Avenue on Lot 3A, Block 2, University First Addition. Background: Parcel Number 40625-00200-003-05 is located at 721 20th Avenue and owned by Ceres Women’s Fraternity. The City and County made changes to the drainage fee billing in 2017 where several fraternities were invoiced directly for their building’s drainage fees instead of including them on SDSU’s Invoice. In 2017, the Ceres Women’s Fraternity was sent the incorrect information and paid the drainage fee on a different fraternity’s parcel of land. This motion will abate the drainage fee and interest in the amount of $178.98 from their parcel at 721 20th Avenue to make the correction. Fiscal Impact: None. Recommendation: Staff recommends approval. Attachments: Abatement Form City of Brookings Printed on 3/21/2018Page 1 of 1 powered by Legistar™ City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ID 2018-0151,Version:1 “Tangle Town” - Public Arts Video. Summary: The Brookings Public Arts Commission (BPAC) has produced a Public Education Video of Public Arts in Brookings. The BPAC will present this video to the City Council and public. City of Brookings Printed on 3/26/2018Page 1 of 1 powered by Legistar™ City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ID 2018-0147,Version:1 Public Inquiry about Modifying Snow Removal Operations by adding Snow Gates to Equipment. Summary: The City has received an inquiry from a member of the public asking the City Council to investigate/consider adding snow gates to plows for snow removal operations. Street Superintendent Matt Bartley is collecting research on this issue and will present it at the meeting. Fiscal Impact: Unknown at this time. City of Brookings Printed on 3/26/2018Page 1 of 1 powered by Legistar™ City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ID 2018-0029,Version:2 National Volunteer Week Proclamation - April 15-21, 2018 Summary: Sarah Lippert, Brookings Volunteer Connections Coordinator, will be accepting the Proclamation. Attachments: Proclamation City of Brookings Printed on 3/21/2018Page 1 of 1 powered by Legistar™ MAYORAL PROCLAMATION CITY OF BROOKINGS, SOUTH DAKOTA WHEREAS: Every community member can effect positive change with any volunteer action no matter how big or small; and in South Dakota, 240,933 people volunteer annually; and WHEREAS: Volunteers can connect with local community service opportunities through hundreds of community service organizations like volunteer centers; and WHEREAS: Millions of volunteers working in their communities utilize their time and talent daily to make a real difference in the lives of children, adults, and the elderly; and WHEREAS: During this week, all over the nation, service projects will be performed and volunteers recognized for their commitment to service; and WHEREAS: The giving of one’s self and service to another empowers the giver and the recipient; and WHEREAS: Experience teaches us that government by itself cannot solve all of our nation’s social problems; and WHEREAS: Our country’s volunteer force, which is over 62.6 million people, is a great treasure. NOW, THEREFORE, BE IT RESOLVED, that I, Keith W. Corbett, Mayor of the City of Brookings, do hereby proclaim April 15 through April 21, 2018 as: NATIONAL VOLUNTEER WEEK And I urge all citizens to volunteer. IN WITNESS WHEREOF, I have placed the Seal of the City of Brookings, State of South Dakota, this 27th day of March, 2018. Keith W. Corbett, Mayor City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:RES 18-021,Version:1 Action on Resolution 18-021, a Resolution awarding the Contract for Remodeling Office and Meeting Space in the Swiftel Center. Summary: The City Council previously purchased the County Resource Center (CRC) from Brookings County which included two large meeting rooms, two small meeting rooms, and office space. The City Council also previously authorized remodeling this space. This action provides for the remodeling construction project. Background: The CRC has not undergone any significant improvements since it was built with the Swiftel Center in 1999. The remodeling of two, larger CRC meeting rooms will increase our capacity for meeting the needs of conferences and meetings because the rooms will be a more attractive venue with suitable technology. It also adds two, smaller rooms that were generally not available. The scope of work includes mostly floor covering, paint, security systems, some HVAC modifications, and conference room technology upgrades necessary to host conferences and meetings. The project was designed by JLG Architects and let for bids which were received on March 13. The results of the bidding were as follows: Clark Drew Construction $193,750.00 Mills Construction $234,000.00 Ronning Enterprises $243,900.00 Fiscal Impact: The architectural estimate for the project as described in the schematic budget presented to the City Council on March 13 was $346,922. The low bid was 44 percent below the estimate. Funds for the entire project will be from the Third Penny fund cash balance. Recommendation: Staff recommends awarding the contract to Clark Drew Construction. Attachments: Resolution City of Brookings Printed on 3/21/2018Page 1 of 1 powered by Legistar™ Resolution 18-021 Resolution Awarding a Remodeling Contract for the Swiftel Center Whereas, the City of Brookings authorized the advertisement of bids for a remodeling project to certain office and meeting spaces at the Swiftel Center on January 9, 2018; and Whereas, the City of Brookings opened bids for said remodeling project on Tuesday, March 13, 2018 at 1:30 p.m. at the Brookings City and County Government Center; and Whereas, the City of Brookings received the following bids for the project: Clark Drew Construction $193,750.00 Mills Construction $234,000.00 Ronning Enterprises $243,900.00 Now, Therefore, Be It Resolved that the low bid of $193,750.00 from Clark Drew Construction be accepted. Adopted and approved this 27th day of March, 2018. CITY OF BROOKINGS _________________________ Keith W. Corbett, Mayor ATTEST: _________________________ Shari Thornes, City Clerk City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:RES 18-022,Version:1 Action on Resolution 18-022, a Resolution awarding the Contract on the 2018-04SSI, 8th Street & 20 th Avenue Drainage Improvement Project. Summary: This resolution will award bids for 2018-04SSI, 8th Street & 20th Avenue Drainage Improvement Project to VJ Ahlers Excavating for the low bid of $181,893.33. Background: The 8th Street and 20th Avenue Drainage Improvement Project is located north of 6th Street and east of Jackrabbit Avenue (previously 16th Avenue) as shown on the attached map. The drainage project was identified as the first phase of the State Avenue watershed area and was designed by Banner Associates. The work will include installing new storm sewer pipe and inlets, gravel, asphalt pavement, curb ramps, and other miscellaneous work. The contractor will start exploratory excavation (pot-hole coring) for utility depth locates in April or May, which will have a minimal effect on traffic. The pipe and street construction work is scheduled to begin after May 14th with a deadline of August 10th, 2018 and the work area will be closed during this phase. The City held a bid letting at 1:30 PM on Tuesday, March 13, 2018 at the Brookings City & County Government Center and the following bids were received: VJ Ahlers Excavating, Brookings, SD:$181,893.33 Bowes Construction, Inc., Brookings, SD:$185,683.68 Deboer Construction, Clear Lake, SD:$248,467.50 Duininck, Inc., Prinsburg, MN:$270,206.50 The bid prices were very competitive and the low bid of VJ Ahlers Excavating was approximately 38% lower than the Banners Associates Engineer’s Estimate, which was $291,424.00. This project will be funded by the Storm Drainage Budget. Fiscal Impact: The City will enter into a contract with VJ Ahlers Excavating for the low bid amount of $181,893.33. Recommendation: Staff recommends approval. Attachments: Resolution Map City of Brookings Printed on 3/21/2018Page 1 of 1 powered by Legistar™ Resolution 18-022 Resolution Awarding the Contract on the 2018-04SSI 8th Street & 20th Avenue Drainage Improvement Project Whereas, the City of Brookings opened bids for 2018-04SSI 8th Street & 20th Avenue Drainage Improvement Project on Tuesday, March 13, 2018 at 1:30 pm at the Brookings City & County Government Center; and Whereas, the City of Brookings has received the following bids for 2018-04SSI 8 th Street & 20th Avenue Drainage Improvement Project: VJ Ahlers Excavating - $181,893.33, Bowes Construction, Inc. - $185,683.68, Deboer Construction – 248,467.50 and Duininck, Inc. - $270,206.50. Now Therefore, Be It Resolved that the low bid of $181,893.33 for VJ Ahlers Excavating be accepted. Passed and approved this 27th day of March, 2018. CITY OF BROOKINGS ________________________________ Keith W. Corbett, Mayor ATTEST: _________________________ Shari Thornes, City Clerk 8T H ST 8 T H ST 20TH AVE20TH AVE6 T H S T 6 T H S T City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ORD 18-005,Version:2 Public Hearing and Action on Ordinance 18-005, an Ordinance Amending Chapter 26 of the Ordinances of the City of Brookings to include the regulation of Transportation Network Companies in the City of Brookings. Summary:The enclosed Ordinance is an amendment to the current regulations of Transportation Network Companies (TNC) in the City of Brookings. The initial ordinance regulating TNCs was adopted on January 12, 2016, which was prior to any statewide regulations or guidance. Since that time, the State adopted insurance requirements. The primary changes are as follows: 1)Vehicle inspections by the City would no longer be required. The transportation network company would require that a personal vehicle used to provide any prearranged ride comply with all applicable laws and rules concerning vehicle equipment as required by SDCL 32-40-6. 2)Drivers would not be individually licensed by the City, nor would they provide their insurance requirements. 3)Background checks will be conducted by the TNC company instead of the City. The TNC would conduct a local and national criminal background check for each applicant that shall include: Multi-state/multi-jurisdiction criminal records locator or other similar commercial nationwide database with validation (primary source search); National Sex Offender Registry database; and obtain and review a driving history research report for such individual. 4)The TNC company insurance requirements were modified to correspond with South Dakota Codified Laws. Background: A “ride-sharing” or Transportation Network Company (TNC) is a company that uses an online- enabled platform to connect passengers with drivers using their personal, non-commercial, vehicles. TNCs do not actually provide transportation services, but only serve to connect the provider with the user. The TNC organizes “prearranged” transportation services by using a smart phone application to connect for-hire drivers using their personal vehicles with riders. Industry leaders include, Uber, Lyft, and Sidecar. Each of these companies retain a maximum of 20% of the fare the user pays with his or her credit card through the app and forwards the remainder to the driver's account. Rides from a TNC are requested via a smart phone app by a pre-registered customer. Customers establish an online account with credit card payment information prior to requesting a ride and download an “app” on their smart phone. Customers enter their location and desired destination. City of Brookings Printed on 3/21/2018Page 1 of 2 powered by Legistar™ File #:ORD 18-005,Version:2 The app provides a map view of available drivers, real-time locations, and proximity to the customer. Cash is never paid to the driver and there is no tipping. TNC drivers set their own schedule and can use their personal vehicle. Drivers sign up online with TNCs. The TNC conducts a motor vehicle and criminal background check. Recommendation: Staff recommends approval. Attachments: Ordinance City of Brookings Printed on 3/21/2018Page 2 of 2 powered by Legistar™ Ordinance 18-005 An Ordinance Amending Division 5 of Chapter 26 of the Ordinances of the City of Brookings and Pertaining to Transportation Network Companies in the City of Brookings. Be It Ordained and Enacted by the Council of the City of Brookings, State of South Dakota, as follows: I. DIVISION 5. - TRANSPORTATION NETWORK COMPANIES (TNC) Sec. 26-280. - Definitions. The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Digital network means any online-enabled application, software, website, or system offered or utilized by a TNC that enables the prearrangement of rides with TNC drivers. TNC driver means a person who drives a vehicle for a transportation network company. Personal vehicle means a vehicle that is used by a TNC driver and is: owned, leased, or otherwise authorized for use by the TNC driver; and which is not a taxicab, limousine or vehicle for hire. Prearranged ride means the provision of transportation by a driver to a rider, beginning when a driver accepts a ride requested by a rider through a digital network controlled by a TNC, continuing while the driver transports a requesting rider, and ending when the last requesting rider departs from the personal vehicle. A prearranged ride does not include transportation provided by a taxicab or vehicle for hire. Transportation network company or TNC means an entity licensed pursuant to this chapter that uses a digital network to connect passengers to transportation network company services provided by transportation network company drivers. A TNC shall not be deemed to control, direct or manage the personal vehicles or TNC drivers, except where agreed to by written contract. Transportation network company driver or TNC driver means an individual who operates a personal vehicle who: (a) Receives connections to potential passengers and related services from a TNC in exchange for payment of a fee to the TNC; and (b) Uses a personal vehicle to offer or provide a prearranged ride to riders upon connection through a digital network controlled by a transportation network company in return for compensation or payment of a fee. Sec. 26-281. - Requirements for a transportation network company. (a) Compliance with State vehicle equipment laws. A transportation network company shall require that a personal vehicle used to provide any prearranged ride shall comply with all applicable laws and rules concerning vehicle equipment as required by SDCL 32-40-6. It is the duty of each TNC driver to submit to the chief of police for inspection each vehicle at any time upon complaint, and the police department may also inspect such TNC vehicles at other times as it deems necessary. (b) No street hails.A TNC driver shall not solicit or accept street hails. (c) No cash trips.The TNC shall adopt a policy prohibiting solicitation or acceptance of cash payments or other compensation directly from passengers and notify TNC drivers of such policy. TNC drivers shall not solicit or accept cash payments or other compensation directly from passengers. Any payment for TNC services shall be made only electronically using the TNC's digital network or software application. (d) Fare collected for services.On behalf of a TNC driver, a TNC may charge a fare for the services provided to passengers; provided that, if a fare is collected from a passenger, the TNC shall disclose to passengers the fare calculation method on its website or within the software application service. The TNC shall also provide passengers with the applicable rates being charged and the option to receive an estimated fare before the passenger enters the TNC driver's vehicle. (e) Identification of TNC vehicles and drivers.The TNC's software application or website shall display a picture of the TNC driver, and the license plate number of the motor vehicle utilized for providing the TNC service before the passenger enters the TNC driver's vehicle. (f) Electronic receipt.Within a reasonable period of time following the completion of a trip, a TNC shall transmit an electronic receipt to the passenger on behalf of the TNC driver that lists: a. The origin and destination of the trip; b. The total time and distance of the trip; and c. An itemization of the total fare paid, if any. (g) Records.A TNC shall maintain the following records: a. Individual trip records of passenger customers for at least one year from the date each trip was provided; and b. Individual records of TNC driver customers at least until the one-year anniversary of the date on which a TNC driver's customer relationship with the TNC has ended. (h) Record inspection authority. a. The city has the authority to inspect the records of the TNC as necessary to investigate an alleged crime or violation of this chapter; accident involving a TNC driver; or for other good cause. The TNC shall cooperate with the city to facilitate the exchange of relevant information required in an investigation. The city shall provide advance written notice at least seven days prior to any inspection, which shall be conducted at a mutually agreed upon third-party location, or pursuant to court order, grand jury, or investigative subpoena. b. Any record or information made available by the TNC to the city pursuant to this chapter is confidential and proprietary, and shall not be made public without TNC's express written permission. If the city is required to disclose confidential information under court order or other applicable law, the city shall promptly notify the TNC of such requirement, prior to disclosure, and shall make diligent efforts to limit disclosure pursuant to any available basis in South Dakota open records law or other applicable law. Sec. 26-282. - Application for transportation network company license. (a) License required.A person shall not operate a TNC in Brookings without first having obtained a license from the city clerk. The city shall grant a TNC license if satisfied that the applicant has complied with all of the terms and provisions of this chapter and if the evidence submitted in support of the application meets the conditions precedent to granting the license. (b) License issuance.The city clerk shall issue a license to each applicant that meets the requirements for a TNC set forth in this chapter, and pays to the city an annual permit fee as established by resolution of the city. A licensing year, for the purposes of this section, begins January 1 and ends December 31 of the next year. (c) Application requirements.The application shall include: (1) The name and address of applicant; (2) Trade name if any under which the license is to be exercised; (3) If a partnership, the name and address of each partner; (4) If a corporation, the names and addresses of the officers; (5) Description of the activity to be carried on under the license; (6) The name and contact information for an agent to be maintained for service of process in the State of South Dakota. (7) The applicant provides proof of sales tax license if applicable. (d) Identification of TNC drivers.At the time of initial licensing and on a quarterly basis, a TNC shall submit to the city a list of driver's license numbers and the state of issuance for each active driver. Sec. 26-283. - Insurance requirements—Transportation network company. A TNC driver, or a TNC on the behalf of the TNC driver, shall maintain automobile insurance pursuant to chapter 40 of Title 32 of the South Dakota Codified Laws. Sec. 26-284. - Transportation network company driver requirements. (a) Before allowing an individual to accept trip requests through a TNC's digital platform: (1) The individual shall submit an application to the TNC, which includes information regarding the proposed TNC driver’s address, age, driver's license, driving history, motor vehicle registration, automobile liability insurance, and other information required by the TNC; (2) The TNC shall have a third party conduct a local and national criminal background check for each applicant that shall include: a. a. Multi-state/multi-jurisdiction criminal records locator or other similar commercial nationwide database with validation (primary source search); and b. National Sex Offender Registry database; c. The TNC shall review the results of (2a) and (2b) above for such individual prior to allowing an individual to accept trip requests. (3) The TNC shall obtain and review a driving history research report for such individual prior to allowing an individual to accept trip requests. (b) The TNC shall not permit an individual to act as a TNC driver on its digital platform who: (1) Has had more than three traffic offenses in the prior three-year period, or one major violation in the prior three-year period (including, but not limited to, attempting to elude the police, reckless driving, hit/run or leaving the scene, or driving on a suspended or revoked license); (2) Has been convicted, within the past seven years, of driving under the influence of drugs or alcohol, fraud, sexual offenses, indecent exposure (class 1 misdemeanor), use of a motor vehicle to commit a felony, a crime involving property damage, and/or theft, crimes of violence, felony possession/distribution of controlled substances or acts of terror; (3) Is a match in the National Sex Offender Registry database; (4) Does not possess a valid driver's license; (5) Does not possess proof of registration for the motor vehicle(s) used to provide TNC services; (6) Does not possess proof of automobile liability insurance for the motor vehicle(s) used to provide TNC services; or (7) Is not at least 18 years of age. (c) The TNC shall prohibit the use or influence of drugs or alcohol by a driver while providing TNC services requested through the TNC's digital platform. If a TNC receives a complaint of such drug or alcohol influence or other activity prohibited in section 26-284, the TNC shall: (1) Immediately revoke the driver's access to the TNC's digital platform until the duration of the investigation; and (2) If the complaint is found to be true, the TNC shall permanently revoke the driver's access to the TNC's digital platform. If the complaint is found to be untrue, the driver's access to the TNC's digital platform may be immediately reinstalled. Secs. 26-285—26-310. - Reserved. II. Any or all ordinances in conflict herewith are hereby repealed. First Reading:March 13, 2018 Second Reading:March 27, 2018 Published:March 30, 2018 CITY OF BROOKINGS, SD Keith W. Corbett, Mayor ATTEST: Shari Thornes, City Clerk Ordinance 18-005 An Ordinance Amending Division 5 of Chapter 26 of the Ordinances of the City of Brookings and Pertaining to Transportation Network Companies in the City of Brookings. Be It Ordained and Enacted by the Council of the City of Brookings, State of South Dakota, as follows: I. DIVISION 5. - TRANSPORTATION NETWORK COMPANIES (TNC) Sec. 26-280. - Definitions. The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Digital network means any online-enabled application, software, website, or system offered or utilized by a TNC that enables the prearrangement of rides with TNC drivers. TNC driver means a person who drives a vehicle for a transportation network company. Personal vehicle means a vehicle that is used by a TNC driver and is: owned, leased, or otherwise authorized for use by the TNC driver; and which is not a taxicab, limousine or vehicle for hire. Prearranged ride means the provision of transportation by a driver to a rider, beginning when a driver accepts a ride requested by a rider through a digital network controlled by a TNC, continuing while the driver transports a requesting rider, and ending when the last requesting rider departs from the personal vehicle. A prearranged ride does not include transportation provided by a taxicab or vehicle for hire. Transportation network company or TNC means an entity licensed pursuant to this chapter that uses a digital network to connect passengers to transportation network company services provided by transportation network company drivers. A TNC shall not be deemed to control, direct or manage the personal vehicles or TNC drivers, except where agreed to by written contract. Transportation network company driver or TNC driver means an individual who operates a personal vehicle who: (a) Receives connections to potential passengers and related services from a TNC in exchange for payment of a fee to the TNC; and (b) Uses a personal vehicle to offer or provide a prearranged ride to riders upon connection through a digital network controlled by a transportation network company in return for compensation or payment of a fee. Sec. 26-281. - Requirements for a transportation network company. (a) Compliance with State vehicle equipment laws Inspection required.No vehicle may be operated by a TNC driver within the city until it has been thoroughly and carefully tested and inspected and found to be in a safe condition for the transportation of passengers..A transportation network company shall require that a personal vehicle used to provide any prearranged ride shall comply with all applicable laws and rules concerning vehicle equipment as required by SDCL 32-40-6. It is the duty of each TNC driver to submit to the chief of police for inspection each vehicle at any time upon complaint, and the police department may also inspect such TNC vehicles at other times as it deems necessary. (b) No street hails.A TNC driver shall not solicit or accept street hails. (c) No cash trips.The TNC shall adopt a policy prohibiting solicitation or acceptance of cash payments or other compensation directly from passengers and notify TNC drivers of such policy. TNC drivers shall not solicit or accept cash payments or other compensation directly from passengers. Any payment for TNC services shall be made only electronically using the TNC's digital network or software application. (d) Fare collected for services.On behalf of a TNC driver, a TNC may charge a fare for the services provided to passengers; provided that, if a fare is collected from a passenger, the TNC shall disclose to passengers the fare calculation method on its website or within the software application service. The TNC shall also provide passengers with the applicable rates being charged and the option to receive an estimated fare before the passenger enters the TNC driver's vehicle. (e) Identification of TNC vehicles and drivers.The TNC's software application or website shall display a picture of the TNC driver, and the license plate number of the motor vehicle utilized for providing the TNC service before the passenger enters the TNC driver's vehicle. (f) Electronic receipt.Within a reasonable period of time following the completion of a trip, a TNC shall transmit an electronic receipt to the passenger on behalf of the TNC driver that lists: a. The origin and destination of the trip; b. The total time and distance of the trip; and c. An itemization of the total fare paid, if any. (g) Records.A TNC shall maintain the following records: a. Individual trip records of passenger customers for at least one year from the date each trip was provided; and b. Individual records of TNC driver customers at least until the one-year anniversary of the date on which a TNC driver's customer relationship with the TNC has ended. (h) Record inspection authority. a. The city has the authority to inspect the records of the TNC as necessary to investigate an alleged crime or violation of this chapter; accident involving a TNC driver; or for other good cause. The TNC shall cooperate with the city to facilitate the exchange of relevant information required in an investigation. The city shall provide advance written notice at least seven days prior to any inspection, which shall be conducted at a mutually agreed upon third-party location, or pursuant to court order, grand jury, or investigative subpoena. b. Any record or information made available by the TNC to the city pursuant to this chapter is confidential and proprietary, and shall not be made public without TNC's express written permission. If the city is required to disclose confidential information under court order or other applicable law, the city shall promptly notify the TNC of such requirement, prior to disclosure, and shall make diligent efforts to limit disclosure pursuant to any available basis in South Dakota open records law or other applicable law. Sec. 26-282. - Application for transportation network company license and license insurance. (a) License required.A person shall not operate a TNC in Brookings without first having obtained a license from the city clerk. The city shall grant a TNC license if satisfied that the applicant has complied with all of the terms and provisions of this chapter and if the evidence submitted in support of the application meets the conditions precedent to granting the license. (b) Certificate of insurance.Before any TNC license is issued, or any existing license is renewed, an insurance certificate or policy of insurance issued by a responsible insurer providing the coverage required by section 26-283 covering the vehicles to be operated by the TNC and TNC driver shall be filed with the city clerk. The policy or certificate of liability insurance required by this ordinance shall be approved by the city prior to issuance of the TNC license. (b) License issuance.The city clerk shall issue a license to each applicant that meets the requirements for a TNC set forth in this chapter, and pays to the city an annual permit fee as established by resolution of the city. A licensing year, for the purposes of this section, begins January 1 and ends December 31 of the next year. (c) Application requirements.The application shall include: (1) The name and address of applicant; (2) Trade name if any under which the license is to be exercised; (3) If a partnership, the name and address of each partner; (4) If a corporation, the names and addresses of the officers; (5) Description of the activity to be carried on under the license; (6) The name and contact information for an agent to be maintained for service of process in the State of South Dakota. (7) The applicant provides proof of sales tax license if applicable. (8) All required certificates of insurance. (d) Identification of TNC drivers.At the time of initial licensing and on a quarterly basis, a TNC shall submit to the city a list of driver's license numbers and the state of issuance for each active driver. Sec. 26-283. - Hold harmless/indemnification and Insurance requirements— Transportation network company. A TNC driver, or a TNC on the behalf of the TNC driver, shall maintain automobile insurance pursuant to chapter 40 of Title 32 of the South Dakota Codified Laws. (a) Financial responsibility of transportation network companies. (1) Indemnification and hold harmless.Transportation network companies must agree to indemnify and hold the City of Brookings, its officers, agents, and employees, harmless from and against any and all actions, suits, damages, liability or other proceedings that may arise as the result of performing services hereunder. This section does not require transportation network companies to be responsible for or to defend against claims or damages arising solely from errors or omissions of the City of Brookings, its officers, agents, or employees. (2) Liability of transportation network company beyond required limits.This ordinance does not limit the liability of a transportation network company arising out of an automobile accident involving a TNC driver in any action for damages against a transportation network company for an amount above the required insurance coverage. (3) General commercial liability insurance.Transportation network companies shall maintain occurrence based commercial general liability insurance or equivalent form with a limit of not less than $1,000,000.00 for each occurrence. If such insurance contains a general aggregate limit, it shall apply separately to this agreement or be no less than two times the occurrence limit. Such insurance shall add the City of Brookings and its employees as additional insureds. (4) Workers compensation.Transportation network companies shall procure and maintain workers' compensation and employers' liability as required by South Dakota law. (5) Required disclosures.A transportation network company shall disclose in writing or electronic form to its TNC drivers, as part of its agreement with those drivers, the insurance coverage and limits of liability that the transportation network company provides while the driver uses a vehicle in connection with a transportation network company's online-enabled application or platform and shall advise its TNC driver that the driver's personal automobile insurance policy may not provide coverage under the agreement. (b) Automobile liability insurance.A transportation network company driver or transportation network company on the driver's behalf shall maintain primary automobile insurance that: (1) Recognizes that the driver is a transportation network company driver or otherwise uses a vehicle to transport passengers for compensation and covers the driver: a. While the driver is logged onto the transportation network company's digital network; or b. While the driver is engaged in a prearranged ride. (2) The following automobile insurance requirements shall apply while a participating transportation network company driver is logged onto the transportation network company's digital network and is available to receive transportation requests but is not engaged in a prearranged ride: a. Transportation network companies shall maintain primary business automobile liability insurance with a limit of not less than $1,000,000.00 each accident for death, bodily injury and property damage. Such insurance shall include coverage for owned, hired, and non-owned vehicles. b. Uninsured and underinsured motorist coverage at the minimum limits required by SDCL § 58-11-9.4. c. The coverage requirements of this subsection may be satisfied by any of the following: 1. Automobile insurance maintained by the transportation network company driver; or 2. Automobile insurance maintained by the transportation network company; or 3. Any combination of subparagraphs c.1. and 2. (3) The following automobile insurance requirements shall apply while a transportation network company driver is engaged in a prearranged ride: a. Transportation network companies shall maintain primary business automobile liability insurance with a limit of not less than $1,000,000.00 each accident for death, bodily injury and property damage. Such insurance shall include coverage for owned, hired, and non-owned vehicles. b. Uninsured and underinsured motorist coverage at the minimum limits required by SDCL § 58-11-9.4. c. The coverage requirements of this subsection may be satisfied by any of the following: 1. Automobile insurance maintained by the transportation network company driver; or 2. Automobile insurance maintained by the transportation network company; or 3. Any combination of subparagraphs c.1. and 2. 4) Any insurance maintained by driver in subsection (a) has lapsed or does not provide the required coverage, insurance maintained by a transportation network company shall provide the coverage required by subsection (a) beginning with the first dollar of a claim and the transportation network company shall have the duty to defend such claim. (5) Coverage under an automobile insurance policy maintained by the transportation network company shall not be dependent on a personal automobile insurer first denying a claim nor shall a personal automobile insurance policy be required to first deny a claim. (6) Insurance required by subsection (a) may be placed with an insurer licensed in the state or with a surplus lines insurer eligible under chapter 58-32 of the South Dakota Insurance Code. (7) A transportation network company driver shall carry physical or digital proof of coverage satisfying subsection (a) at all times during the driver's use of a vehicle in connection with a transportation network company's digital network. In the event of an accident, a transportation network company driver shall provide this insurance coverage information to the directly interested parties, automobile insurers and investigating police officers, upon request pursuant to chapter 32-35 of the South Dakota Insurance Code. Upon such request, a transportation network company driver shall also disclose to directly interested parties, automobile insurers, and investigating police officers, whether the driver was logged onto the transportation network company's digital network or on a prearranged ride at the time of an accident. (8) In a claims coverage investigation, transportation network companies shall cooperate to facilitate the exchange of relevant information with directly involved parties and any insurer of the transportation network company driver if applicable, including the precise times that a transportation network company driver logged on and off of the transportation network company's digital network in the 12-hour period immediately preceding and in the 12-hour period immediately following the accident and disclose to one another a clear description of the coverage, exclusions and limits provided under any automobile insurance maintained under subsection (a). (9) A TNC automobile insurance policy shall not be modified or canceled without 30 days' actual notice to the city clerk. (10) The cancellation or other termination of any required automobile insurance policy shall automatically revoke and terminate all licenses issued for the TNC, unless another policy(ies), complying with this section, shall be provided and in effect at the time of such cancellation or termination. Sec. 26-284. - Transportation network company driver requirements. a) License required.Transportation network company drivers shall be required to obtain a license from the city. No person may drive a vehicle for a TNC without first obtaining a license as a TNC driver. (b) Age requirement.No TNC driver's license may be issued under the provisions of this ordinance to any person who is under the age of 18 years. (c) Application.Any person desiring a TNC driver's license required by this ordinance shall make written application upon forms provided by the city clerk. (d) Investigation of applicant by chief of police.Upon receiving a completed application for a TNC driver's license required by this ordinance, the city clerk shall promptly deliver the application to the chief of police, who may review the states of prior residence, and the qualifications and fitness of the applicant to obtain a TNC driver's license. Upon such inquiry, the police chief shall endorse upon the application their recommendation for approval or disapproval of the application and return the application to the city clerk. The chief of police shall consider whether the applicant has a state driver's license that would authorize operation of a TNC vehicle and whether the applicant has been convicted of a felony or misdemeanor which has a reasonable relationship to driving a TNC vehicle. (e) Licensing procedure.After the chief of police has returned the license application to the city clerk, the issuance of such license shall be discretionary with the city clerk and a license may be issued only upon the approval of the city clerk. The city clerk shall consult, as necessary, the police chief concerning any applicant. (f) Revocation.Any license or temporary permit issued under this division may be revoked by the city clerk for a violation by the licensee of any applicable provision of state law, city ordinance or rule or regulation of the city, or for other good cause. (g) Notices to chief of police.The city clerk shall notify the chief of police of the issuance or revocation of any license under the provisions of this ordinance. (h)Display of license.Each holder of a license issued under this division shall continuously display the license certificate in a conspicuous manner in the vehicle. (i) If a TNC driver meets the requirements of this chapter, a TNC may allow access for that TNC driver to the TNC's digital network. Before allowing an individual to accept trip requests through a TNC's digital platform: (a) Before allowing an individual to accept trip requests through a TNC's digital platform: (1) The individual shall submit an application to the TNC, which includes information regarding the proposed TNC driver’s his or her address, age, driver's license, driving history, motor vehicle registration, automobile liability insurance, and other information required by the TNC; (2) The TNC shall have a third party conduct a local and national criminal background check for each applicant that shall include: a. Multi-state/multi-jurisdiction criminal records locator or other similar commercial nationwide database with validation (primary source search); and b. National Sex Offender Registry database; c. The TNC shall review the results of (2a) and (2b) above for such individual prior to allowing an individual to accept trip requests. (3) The TNC shall obtain and review a driving history research report for such individual prior to allowing an individual to accept trip requests. (b) The TNC shall not permit an individual to act as a TNC driver on its digital platform who: (1) Has had more than three traffic offenses in the prior three-year period, or one major violation in the prior three-year period (including, but not limited to, attempting to elude the police, reckless driving, hit/run or leaving the scene, or driving on a suspended or revoked license); (2) Has been convicted, within the past seven years, of driving under the influence of drugs or alcohol, fraud, sexual offenses, indecent exposure (class 1 misdemeanor), use of a motor vehicle to commit a felony, a crime involving property damage, and/or theft, crimes of violence, felony possession/distribution of controlled substances or acts of terror; (3) Is a match in the National Sex Offender Registry database; (4) Does not possess a valid driver's license; (5) Does not possess proof of registration for the motor vehicle(s) used to provide TNC services; (6) Does not possess proof of automobile liability insurance for the motor vehicle(s) used to provide TNC services; or (7) Is not at least 18 years of age. (c) The TNC shall prohibit the use or influence of drugs or alcohol by a driver while providing TNC services requested through the TNC's digital platform. If a TNC receives a complaint of such drug or alcohol influence or other activity prohibited in section 26-284, the TNC shall: (1) Immediately revoke the driver's access to the TNC's digital platform until the duration of the investigation; and (2) If the complaint is found to be true, the TNC shall permanently revoke the driver's access to the TNC's digital platform. If the complaint is found to be untrue, the driver's access to the TNC's digital platform may be immediately reinstalled. Secs. 26-285—26-310. - Reserved. II. Any or all ordinances in conflict herewith are hereby repealed. First Reading:March 13, 2018 Second Reading:March 27, 2018 Published:March 30, 2018 CITY OF BROOKINGS, SD Keith W. Corbett, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:RES 18-016,Version:1 Public Hearing and Action on Resolution 18-016, a Resolution authorizing the City Manager to enter into an Operating Agreement for a Liquor License for Apple BRK, LLC, dba Applebee’s Neighborhood Grill & Bar, Jonathan Rolph, David Rolph, and Gregory Stroud, owners, 3001 LeFevre Dr., Brookings, SD, legal description: S 225’ of Lot 8, LeFevre Addition. Summary: The City of Brookings has received an application to transfer the Liquor License from Porter Apple Co. “B”, Inc., dba Applebee’s Neighborhood Grill & Bar, Todd Porter and Todd Schriever, owners, to Apple BRK, LLC, dba Applebee’s Neighborhood Grill & Bar, Jonathan Rolph, David Rolph, and Gregory Stroud, owners, 3001 LeFevre Dr., Brookings, SD, legal description: S 225’ of Lot 8, LeFevre Addition. An operating agreement is required for Liquor Licenses. This Resolution allows the City Manager to enter into the first five years of the 10-year agreement effective through 2023. Background: A public hearing and action by the local governing body is required for all alcohol licenses. This license would be effective until December 31, 2018 and then subject to an annual renewal. If approved, the application would be forwarded to the State Department of Revenue for final action and issuance of the license. Staff recommends approval. Listed below is specific information related to on-sale alcohol license request and other procedures that are following with an application. City Ordinances: Listed below is Chapter 6, Article 2, Section 6-42 of the City Code of Ordinances pertaining to Application Review Procedure. The city council shall review all applications submitted to the city for available on-sale alcoholic beverage agreements and for all alcoholic beverage licenses in accordance with SDCL 35-2 and in accordance with the following factors: 1)Type of business which applicant proposes to operate: on-sale alcoholic beverage operating agreements and on-sale alcoholic beverage licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold unless it can be established that minors do not regularly frequent the establishment. 2)The manner in which the business is operated:on-sale alcoholic beverage operating agreements and alcoholic beverage licenses may not be issued to establishments which are operated in a manner which results in minors regularly frequenting the establishment. 3)The extent to which minors are employed in such a place of business: on-sale alcoholic beverage operating agreements and on-sale alcoholic beverage licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold and which regularly employ minors. 4)Adequacy of the police facilities to properly police the proposed location: The city council shall inquire of the city manager whether the police department can adequately police the proposed location. City of Brookings Printed on 3/21/2018Page 1 of 2 powered by Legistar™ File #:RES 18-016,Version:1 5)Other factors: The hours that business is conducted shall be considered by the city council in its review of applications for on-sale alcoholic beverage operating agreements and on-sale alcoholic beverage licenses. Recommendation: Staff recommends approval. Attachments: Resolution Operating Agreement Hearing Notice City of Brookings Printed on 3/21/2018Page 2 of 2 powered by Legistar™ Resolution 18-016 Apple BRK, LLC, dba Applebee’s Neighborhood Grill & Bar On-Sale Liquor Operating Agreement Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Agreement for the Operating Liquor Management Agreement for Liquor between the City of Brookings and Apple BRK, LLC, dba Applebee’s Neighborhood Grill & Bar, Jonathan Rolph, David Rolph, and Gregory Stroud, owners, for the purpose of a liquor manager to operate the on-sale establishment or business for and on behalf of the City of Brookings at 3001 LeFevre Dr.: legal description: S 225’ of Lot 8, LeFevre Addition. Be It Further Resolved that the City Manager be authorized to execute the Agreement on behalf of the City, which shall be for a period of five (5) years and renewal for another five (5) years. Passed and approved this 27th day of March, 2018. CITY OF BROOKINGS Keith W. Corbett, Mayor ATTEST: Shari Thornes, City Clerk LIQUOR OPERATING AGREEMENT Apple BRK, LLC, dba Applebee’s Neighborhood Grill & Bar THIS AGREEMENT made and entered into by and between the CITY OF BROOKINGS, a municipal corporation of the State of South Dakota, hereinafter referred to as the “City” and Jonathan Rolph, David Rolph, and Gregory Stroud, owners, Apple BRK, LLC, dba Applebee’s Neighborhood Grill & Bar, hereinafter referred to as “Manager.” WITNESSETH; WHEREAS, the City has been issued an on-sale alcoholic beverage license and is engaged in the sale of alcoholic beverages, and WHEREAS, the City desires to enter into an Operating Agreement on a limited basis with the Manager for the purpose of operating an on-sale establishment or business for and on behalf of the City pursuant to law, and WHEREAS, the Manager has offered to have facilities in which to operate said on-sale establishment solely upon the premises hereinafter described. NOW, THEREFORE IT IS MUTUALLY AGREED AS FOLLOWS: I. This Agreement is made and entered into on a limited basis between the parties hereto to allow the Manager to operate a retail on-sale premises, pursuant to and in accordance with all of the terms and conditions of this Agreement in accordance with all State laws and City Ordinances now in effect and as may be enacted in the future. II. The Manager shall be individually responsible for all operating expenses of said on-sale establishment, including but not limited to utilities, taxes, insurance, and license fees, if any. The Manager shall furnish all equipment and fixtures necessary to operate the establishment. III. The on-sale establishment shall be located upon real estate in the City of Brookings, South Dakota, described as: S 225’ of Lot 8, LeFevre Addition, City of Brookings, Brookings County, South Dakota IV. The Manager shall dispense only alcoholic beverages supplied by the Municipal Off- Sale establishment. V. This Agreement shall be in full force and effect for a period of five (5) years, with the Manager having the option and privilege of a five (5) year extension, subject to the approval of the governing body of the City of Brookings. VI. Either the Manager or the City may terminate this Agreement without cause upon ninety (90) days written notice served by either party upon the other. The City reserves the right to immediately suspend or revoke this Agreement without ninety (90) days written notice for alcohol related violations in accordance with the provisions of Resolution No. 25-88 or any amendments thereto or for any late payments for alcoholic beverages supplied by the Municipal Off-Sale Establishment to be sold on the premises of Manager. VII. The Manager shall receive as full compensation for its services rendered, the net profit from the on-sale establishment under its management, and the sole profit to be derived by the City shall be the markup hereinafter set forth on alcoholic beverages furnished by the municipality to the Manager for the purposes of resale on the premises as above described. VIII. The Manager shall pay to the City for all alcoholic beverages sold by the City to the Manager for resale on the above-described premises, the actual cost of distilled spirits and wine supplied by the City, plus eleven percent (11%) in excess of such cost; the Manager shall pay to the City for all malt beverages sold by the City to the Manager for resale on the above-described premises, the actual cost of malt beverages, plus ten percent (10%) in excess of such cost. The actual cost shall include cost price and transportation charges. The markup percentages provided in this Agreement are subject to change by the City of Brookings. In the event markup percentages are changed by Ordinance, then the markup percentages provided by City Ordinance shall supercede the markup percentages provided herein. The Manager further agrees that if either of the markup percentages shall be increased at any time by the City, the Manager shall pay the markup as so increased. IX. A complete and detailed record shall be maintained by the City of all alcoholic beverages supplied to the on-sale Manager and such alcoholic beverages so supplied shall be evidenced by pre-numbered invoices prepared in triplicate showing the date, quality, brand, size, and actual cost of such item, and such invoice shall bear the signature of the authorized representative of the on-sale Manager or its authorized representative. One copy thereof shall be retained by the Municipal off-sale establishment, one copy shall be retained by the on-sale establishment, and one copy shall be filed with the City Clerk. All copies shall be kept as permanent records and made available for reference and audit purposes. The Manager also agrees to maintain a complete record of all alcoholic beverages received from the City. X. In consideration of the covenants herein contained, the Manager agrees to pay the CITY OF BROOKINGS, One Thousand Five Hundred, and no/100 Dollars ($1,500.00), constituting the Annual License Fee on or by the 1st day of November of each year thereafter as long as this agreement shall remain in force and effect. The payment of the Annual Renewal License Fee will not extend the term of this Operating Agreement beyond the term provided therein. The Manager further agrees that if the annual fee shall be increased at any time by the legislature, the Manager shall pay the amount of any such increase. XI. The Manager agrees to keep the premises in a neat, clean and attractive appearance, and Manager further agrees to operate said on-sale establishment only on such days and at such hours as permitted by state law and city ordinances. XII. The Manager shall have the right to return, at any time, alcoholic beverages received from the City and to receive in return any deposit made for such alcoholic beverages; in the event of termination of the business, all unused alcoholic beverages, which may be resold without discount may be returned to the City and the Manager shall be reimbursed for the of such alcoholic beverages. XIII. The Manager agrees to abide by the credit policies of the City and acknowledges, by execution of this Agreement, receipt of a copy of the credit policies of the City. The City reserves the right to change or terminate its credit policies at any time, but shall be required to provide written notice to Manager prior to the effective date of the change or termination date of the credit policies. XIV. The Manager agrees to furnish the City upon demand, evidence of payment of the following: A. All salaries of on-sale employees; B. Social Security and withholding taxes on said employees; C. Worker’s Compensation insurance premiums covering said employees; D. Unemployment taxes on the payrolls of said employees; E. General liability insurance protecting both the City and the Manager against claims for injury or damages to persons or property, said policy to have general liability limits of at least Five Hundred Thousand Dollars ($500,000.00) single limit, and One Million Dollars ($1,000,000.00) aggregate, and a limitation of Fifty Thousand Dollars ($50,000.00) for damage to property. The general liability insurance limits are subject to change and Manager agrees to change limits of insurance if required by the City; F. Rent and utility bills; and G. Any and all miscellaneous expenses, including taxes. XV. The Manager agrees to observe all Federal and State laws and ordinances of the City of Brookings. XVI. The City covenants and agrees to furnish the on-sale license to Manager pursuant to the terms and conditions of this Operating Agreement and the terms and conditions of the on-sale license. XVII. The City has the right to make inspections and investigations of the premises during the hours of operation, and make audits and examinations of the records of the Manager relating to the on-sale establishment. XVIII. It is further specifically understood and agreed that the waiver of the rights of the City under this Agreement shall not constitute a continuous waiver, and any violation or breach of the terms of this Agreement by the Manager shall constitute a separate and distinct offense and grounds for immediate termination and revocation of this Agreement. XIX. This agreement shall not be assignable to another person or location without the written consent of the City. IN WITNESS WHEREOF, the parties hereto have executed this Agreement which is effective this 27th day of March, 2018. CITY OF BROOKINGS, South Dakota A Municipal Corporation By: ATTEST:Jeffrey W. Weldon, City Manager Shari Thornes, City Clerk MANAGER By: By: NOTICE OF PUBLIC HEARING On-Sale Liquor License Transfer – Applebee’s Neighborhood Grill & Bar NOTICE IS HEREBY GIVEN that the Brookings City Council in and for the City of Brookings, South Dakota, on March 27, 2018, at 6:00 p.m. in the Brookings City & County Government Center Chambers, 520 Third Street, will meet in regular session to consider an application for the transfer of an On-Sale Liquor License from Porter Apple Co. “B”, Inc., dba Applebee’s Neighborhood Grill & Bar, Todd Porter and Todd Schriever, owners, to Apple BRK, LLC, dba Applebee’s Neighborhood Grill & Bar, Jonathan Rolph, David Rolph, and Gregory Stroud, owners, 3001 LeFevre Dr., Brookings, South Dakota, legal description: S 225’ of Lot 8, LeFevre Addition. At which time and place all persons interested will be given a full, fair and complete hearing thereon. Dated at Brookings, South Dakota, this 16th day of March, 2018. Shari Thornes, City Clerk Published time(s) at an approximate cost $ .