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HomeMy WebLinkAbout2018_07_10 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!" 5:00 PMTuesday, July 10, 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. 5:00 PM STUDY SESSION Location: Room 300, Community Room 1.ID 2018-0318 Humane Society Task Force Report. Task Force Final ReportAttachments: 6:00 PM REGULAR MEETING Location: Room 310, Chambers 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. Page 1 City of Brookings July 10, 2018City Council Meeting Agenda 3.A. Action to approve the agenda. 3.B.ID 2018-0313 Action to approve the June 26, 2018 City Council Minutes. 6/26/2018 MinutesAttachments: 3.C.RES 18-050 Action to approve Resolution 18-050, a Resolution authorizing the City Manager to Sign Documents for DTOS59-18-RA-BUILD1 Grant Application. Resolution 18-050 Resolution 18-049 Attachments: 4. Items removed from Consent Agenda. Action: Motion to Approve, Request Public Comment, Roll Call 5. Open Forum/Presentations/Reports: 5.A. 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.B. SDSU Student Association Report. 6. Contracts/Change Orders: None 7. Ordinance First Readings: None 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. 8. Public Hearings and Second Readings: 8.A.ID 2018-0312 Public Hearing and Action on a Temporary Liquor Application from Old Market Eatery for a temporary liquor license to operate within the City of Brookings, South Dakota for a Humane Society Fundraiser to be held on July 19 at Cinema 8 Theatre, 219 6th Street. Legal NoticeAttachments: Action: Open & Close Public Hearing, Motion to Approve, Roll Call 9. Other Business: None 9.A.ID 2018-0310 Discussion and Possible Action to Approve Tax Increment District #8 Pre-Application. Page 2 City of Brookings July 10, 2018City Council Meeting Agenda Pre-application Cost Estimates District Map Project Vicinity Map TIF Guidelines Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 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: Paul M. Briseno, 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 2018-0318,Version:1 Humane Society Task Force Report. Summary: The Humane Society Task Force will present their final report to the City Council and public. Attachments: Final Report City of Brookings Printed on 7/5/2018Page 1 of 1 powered by Legistar™        TASK FORCE FINAL REPORT BROOKINGS REGIONAL HUMANE SOCIETY BROOKINGS CITY BROOKINGS COUNTY   JULY 12, 2018    1  I. Executive Summary………………………………………………………………………………… 2 ‐ 3  II. Background………………………………………………………………………………………………4 ‐ 5  III. Process to Solution…………………………………………………………………………………… 6 ‐ 7  IV. Facility Solutions……………………………………………………………………………….…… 8 ‐ 10  V. Recommendations………………………………………………………………………………… 11 ‐ 12  VI. Appendix………………………………………………………………………………………………. 13 ‐ 23  i. Existing Layout ii. New Layout iii. Fundraising Plan iv. Other        CONTENTS   2 EXECUTIVE SUMMARY The Brookings Regional Humane Society, City and County (BCC) Task force is pleased to provide this final report of the work conducted over the past months since our kickoff meeting of January 24, 2018. This task force included the following team members: Kevin Catlin, Asst. City Manager – Chair Person Bill Davidson – Facilitator Beth Reams – BRHS President Maia Moore – BRHS Shelter Executive Director Holly Tilton Byrne – City Council Member Marty Stanwick – County Sheriff Dick Peterson – Cinema 8 - Local Citizen Duane Walburg – Animal Control Officer Dr. Bev Shelbourn – Volunteer Veterinarian Trent Brock – Daktronics – Local Citizen Adhoc Members Dr. Russ Daly, SDSU – BRHS Board Member Dr. Jill Ayres, Local Veterinarian Ashley Biggar – BRHS Vice President We appreciate everyone’s time and effort during this process. Fundamental to this report is understanding that the following topics were discussed at length and believed by a majority of members: 1) The dealing and handling of unwanted and at large animals is a responsibility of the city and county. 2) BRHS is not a “cause” but through its mission, assists the city and county with fulfilling of their responsibility. 3) It is presumptive of BRHS to assume the community and county citizens, council and commission wish to provide unwanted domestic animals (cats and dogs primarily) the opportunity for rehoming over euthanasia and disposal. 4) Providing the opportunity to rehome healthy adoptable animals at the lowest possible cost is the highest priority driving factor for the task force.   3  The process to solution and recommendation is discussed in more detail than the BCC task force followed. The outcome can be best described as follows: 1) The task force went through a discovery and prioritization process in the first meetings and had some consensus on the importance of the goal. 2) It was apparent that there was little interest on part of some members to change the status quo with the recognition that the $110 - 120,000/year that the city currently pays for animal control is bare bones and BRHS could do little to reduce that cost. 3) The task force opted to settle on the 3 possible solutions: a) Increased financial support by the city and county to assume a greater responsibility for the share of costs associated with the animals coming from the city and county (short term goal). b) Investment in the existing site as a permanent facility to modify and become more usable as a shelter and expand the building to meet long term needs incorporating animal control. c) Building of a new shelter that would include space for animal control. 4) The group then broke into 5 sub committees to work on these topics. It is the conclusion of this task force and its recommendation that the city should take one or more of the following actions: 1) Agree to pay for 50% of the costs to care for animals being delivered to BRHS by Brookings Animal Control which account for the majority of incoming animals. 2) Support the purchase and expansion of the existing shelter as a permanent site. We would propose that the city could provide 25% of this cost (similar % as asked for related to operations) as well as the funding described in #1. BRHS would negotiate a buyout of the facility before this option is exercised and enter into a capital campaign. Cost for remodel/expansion of is estimated at approximately 500K to 685K. As an option to this, the city could provide a no interest loan for the purchase and expansion of the existing shelter. a) Additional Cost for 1500 Ft2 for animal control holding and office space with an additional 500 Ft2 for garage estimated 267K. 3) Support the construction of a new shelter to include space for animal control. The city would pay 50% of the cost of a new shelter. Total cost for a shelter designed facility estimated for a 7500 Ft2 site is approximately 1.8M. EXECUTIVE SUMMARY   4  Brookings Regional Humane Society was founded over 20 years ago led by Dr. Rose Davidson and a group of concerned citizens. It is believed that at that time somewhere between 40% to more than half of all animals coming into the Brookings Animal Control were euthanized and disposed of in the Brookings landfill. The group knew that the city of Brookings could do better. Beginning with acceptance of animals into foster care in 1997 and then securing our first location in 2006, BRHS expanded to a bigger location in 2009 and moved finally into our current location in 2013. We have achieved the mission of medically treating, micro-chipping, spay/neuter, vaccinating and placing all adoptable animals that come into our care. We do euthanize for behavioral or serious medical needs. This model is similar to many progressive and publicly adopted models throughout the country and Midwest. Many shelters in SD, however, do not provide medical care, spaying/neutering and vaccination services to the extent that BRHS does. The group has been 100% funded by private donations up until just a few years ago as the need became greater and the city and county then began making modest contributions (4 – 5% of operating costs) through their funding programs. With the proportion of BRHS animal intakes now exceeding 50% from the city, and the loss of our founding veterinarian who provided free medical care, financial need has increased. BRHS continues to operate in a highly efficient manner at levels of 60 to 80% of the cost of similar sized humane societies that provide the same level of care. BRHS has calculated that over the past 20 years we have provided funds that could exceed 1 million dollars of donated funds for the costs of medical and housing of those animals received from the city. In 2000 a petition with over 2000 signatures was presented to the city council along with a proposal for the construction of a modest shelter utilizing 2nd penny sales tax through the then existing program soliciting projects for utilization of those funds. The council nearly passed this at that time with a vote of 3 in favor and 4 against. This demonstrated that BRHS services were and continue to be among the most highly community supported city services provided through private sources. Since that time BRHS continues to struggle with fundraising to cover expenses. Recently in danger of running out of funds, the Register reported on the challenge facing the Brookings Regional Humane Society raising awareness that the organization BACKGROUND   5  was not a city owned or highly supported organization but funded principally through private donations. BRHS approached the city and county in this attempt to find an approach that includes a closer integration with animal control and funding more appropriate to the quantity of animals coming into the BRHS system from the city. BACKGROUND   6  The BCC Task Force was enabled by the Brookings Regional Humane Society, City and County of Brookings to work together to determine if the animal control department for Brookings and BRHS could find opportunities to integrate and work together to create a more sustainable operation. Also included was the need to recognize all partners financial responsibility in creating this sustainable operation. The task force initial kick off meeting on January 24th took the group through identifying the following key elements: i) What does the Community Expect? ii) Identifying Goals and Challenges iii) Prioritization of the Elements iv) Round Table Discussions v) Sustainability Goal Copies of meeting minutes from that meeting include long lists of identified areas to consider, discuss, incorporate into the process. Additional meetings continued to hone into these areas. The group (All invited but only BRHS people participated) visited Hawk Creek Humane Society in Wilmar, MN, on March 3rd. Some of the key takeaways from this visit include: i) Fully integrated with Animal Control for 2 counties and city of Wilmar. ii) They utilize training officers and deputies for AC and have no AC department. Included at the round table were the following members from Wilmar, MN, Kandiyohi and Meeker Counties: Keith Nelson – HSKMC – President of TWC Ike Holland – HSKMC – City Manager – Willmar, MN Dick Rietsma – HSKMC – Board Chair – retired Larry Kleindl – HSKMC – Kandiyohi County Administrator Eric Toloufson – Kandiyohi County Sheriff’s Deputy Alex Anderson – Police Officer – City of Willmar Liz Warren – HSKMC Board Director Bobbie Buckminster – HSKMC – HCAS Administrator iii) Ike, Larry, Eric and Alex all shared in length how they were integrated with Hawk Creek Animal Shelter who all shared and insisted the system worked very well with no issues. iv) The facility is owned by the County and leased back to the HS for $1/year. v) The group has an appropriate fee-based schedule with both counties and the city that supports funding to nearly 40 - 50% of total operational costs. PROCESS TO SOLUTION   7  Through the next meetings the group discussed the 3 most likely outcomes of the task force. Those included: 1) Increased financial support from the city to pay for more of their share of the cost of re homing unwanted animals from the city. Limited changes to existing facility. 2) Including increased financial support highlighted above, additionally, changes to existing facility would be made to enable utilization as a long- term home for the organization with a mechanism to obtain ownership for the facility. Could include the relocation of animal control onto this site. 3) The most desirable option although a longer-term goal would be for a new facility designed for an animal shelter with integrated animal control on site. The group continued to work in 5 sub committees. These groups focused on: 1) Modeling of the 3 facility requirements for #1 and #2 and budgeting for #2 and #3. 2) Work on the capital campaign and financial modeling for ongoing fundraising. 3) Creation of a cost model for operational costs to accurately represent the costs associated with those animals coming from the city into the system. 4) Development of MOA or operating agreement with the city animal control department to create a more seamless and sustainable operation. 5) Work to create the final report and presentation to the city and county. The outcome of the process is this document with attachments. PROCESS TO SOLUTION   8  Option 1: Minimal Improvement of Current Facility – In this option we will work with the existing landlord to optimize the facility in the current state. This will include making the following minor modifications: 1) New Food Prep, Storage, Overflow – This area would be moved into the area currently utilized for the food pantry. Will make it easier to access the kennel area and access to better utilities. 2) Hallway Modification – Currently the flow of the public goes through the medical treatment area. A hallway will be added to allow the public access to the dog kennel area and keep them from the medical and surgical area. 3) Cat Room Modifications – In order to facilitate greater utilization, some minor modification will be made to open this space up. 4) Make Office new Meet/Greet Space – The existing meet and greet area will be moved into the general public access area and the existing office location. 5) Finish Current Food Prep into Office – This space will be refinished into the director office to position next to front desk and entry to provide for improved communications. 6) X Ray Room – Which is presently used for meet and great will now be utilized for the Food Pantry. 7) Repair Drainage Dog Kennels – Repair of drainage to improve ability to clean kennel space to be executed. 8) Exercise and Meet/Greet yard & Landscape – A space to be created with fencing on the exterior to provide a meet and greet exterior area. (allows future “siblings” to be introduced in a controlled environment. 9) Other – Existing kennels to have tops replaced from open mesh style to solid panels. Some rearrangement of space for exotics and over flows. Option 2: Includes all those items in option 1 but in addition provides first step toward the creation of a permanent home. Exercise of this option would include the option to purchase or eventually own the existing site. This will include making the following additional more major modifications: FACILITY SOLUTIONS   9  1) Finish Court Yard for Use – The existing courtyard space to be finished out with roof and flooring to provide for food prep area and storage/overflow. 2) Block Kennels Constructed – To improve the ability to clean and sterilize the existing panel style kennels to be replaced with more traditional block structured kennels. Allow for a roof panel as well to allow unit to be hosed and cleaned out quicker and more effectively. 3) Quiet Room Wall – Within the kennel space a wall will be added to isolate a number of kennels for particularly noisy dogs. To allow people to enter with less disruption to the animals and provide for more effective interaction. 4) Add Ventilation (EF's) to Kennels – Along with the new style kennels, exhaust fan will be added to draw airflow through the kennels and out for better infection control and better control of odor. 5) Fencing (300' to 500') – On the east side of the facility will add more fenced space to provide or exercise and temporary holding (during kennel cleaning). 6) Landscaping – Addition of trees, shrubs and grass to improve overall appearance of the space. Option 3: Includes all those items in option 1 and 2 but in addition provides more major efforts to create a permanent home. Exercise of this option would include the option to purchase or eventually own the existing site. This will include a major expansion to include: 1) Addition of approximately 2400 Ft on the east side of the existing facility. This space will then include: a. A separate area for the public to bring animals to surrender. This will help to allow the evaluation of new animals prior to introduction into the general population. b. A series of spaces is included then (not open to public) for the processing of animals into the system. This include: i. Medical Isolation ii. Behavioral Isolation iii. Quarantine Area c. Additional HVAC improvements for ventilation as well as heating and cooling efficiency improvements. d. Possible addition of a surgical space allowing for more SDSU student interaction. FACILITY SOLUTIONS   10  Option 4: Includes all those items in option 1, 2 and 3 but in addition provides for additional space to be added to house animal control. This addition would include: 1) Approximately 1500 square feet of space to provide for kennels, cat cages for 5 days hold as well as bite hold space and a small office. 2) An additional 500 square feet of garage to hold specialize animal control vehicle. Option 5: This is budgetary pricing to construct a new 7500 feet square facility. This would provide space for BRHS and AC needs. Current market conditions indicate that with specialized HVAC requirements and specialized furnishing, we would expect construction costs in the $185 to $225/Ft2 range. It is understood that this could be a future goal for the organization with the city and county. Having a facility designed properly will enable us to easily handle the population growth of the city and county and consequential stray pet population. A new facility that combines animal control would provide for a more streamlined process within the community and create a positive environment and face to the public of how the city treats it’s lost and discarder pets. FACILITY SOLUTIONS   11  Option 1: Should the city be willing to increase funding to a more appropriate share of the costs needed to house, medically treat, spay or neuter and vaccinate those animals coming into the system from the city and county, the task force would propose the following: Funding Formula: The methodology applied is a 50/50 partnership with the city/county to provide half the costs of the care for those animals coming from animal control and for the other half to be provided by BRHS through private funding and contributions. This amount could be budgeted for and adjusted annually if necessary. BRHS/City/County Cost Formula 2017 2018 Total Animals 532 545 Total Animals from City and County 321 335 % from City  60.3% 61.5% Total Expenses 201,632.00$            206,125 Cost per Animal 379.01$                     378.21$                    City/Co Animal Costs 121,661.41$            126,700.69$            Adoption Fees 36,744.37$               38,000.00$              % Credited (% from City * Fees) 22,170.95$               23,357.80$              Total City/Co Animal Costs 99,490.47$               103,342.89$            Proposed % Share Paid by City/Co 50% 50% Cost Paid by City/Co 49,745.23$               51,671.44$              Previously Paid 19,000.00$               19,000.00$              Balance proposed paid by City 30,745.23$               32,671.44$              RECOMMENDATIONS   12  Option 2: Discussions around the re-locating of animal control to the existing BRHS site with an expansion was discussed. Some members of the city on the task force felt no benefit from this arrangement would occur. Others felt there would be advantages for joint care of the animals ultimately having a positive impact on costs and the ability to be proactive in terms of animals known to be coming into the system. Should this occur, the existing site would be freed up for use by the city for storage or other uses or for sale. Combination of the operating costs would have some benefit. Option 3: The construction of a properly designed and dedicated shelter is a desirable solution. However, it is believed that given the current tone of the city this is not practical and would take a very generous donor to support a long-term solution. RECOMMENDATIONS   13    A. Existing Layout B. New Layout C. Fundraising Plan D. Other APPENDIX   14      APPENDIX A Existing w/Minor Tenant / Owner Modifications   15    APPENDIX A Existing w/Minor Tenant / Owner Modifications   16        APPENDIX B Existing w/Shelter Specific Remodel   17          APPENDIX B Existing w/Shelter Specific Remodel   18      APPENDIX B Existing w/Shelter Specific Remodel & Addition   19          APPENDIX B Existing w/Shelter Specific Remodel & Addition   20  Fundraiser  Net Profit Goal    Golf Tournament  $7,000.00     Poker Run  $700.00     Welly Walk  $2,500.00     Kickball Tournament  $1,000.00     Paws for Wine  $20,000.00     Bake Sales  $3,200.00     Movie Theater Event  $3,000.00     County Funding  $10,000.00   Requested $20,000  for 2019  City Funding  $9,000.00     Photography Sessions  $1,650     Holiday Mailer  $6,000     Gift Wrapping  $300.00     Hy‐Vee Receipts  $5,000.00     Aluminum Cans  $1,500.00     Memberships/Friends of  BRHS  $3,000.00     Second Mailer  $3,000.00     Community Fund  $500.00     Elmen Foundation  $3,000.00     Dog and Cat Banks  $1,800.00     APPENDIX C Fundraising Plan   21  General Donations  $60,000.00     Memorials  $500.00     Adoption/Surrender Fees  $37,000.00     Second Movie Theater Event  $3,000.00     Major Donation Requests  $30,000.00             Total  $212,650.00         The subcommittee on the revenue side did a great job of capturing the major events that BRHS has conducted traditionally as well as planning for 2 new events being added (poker run and golf tournament). As with all fundraising events this is a best estimate based on previous history. For example, since this was put together the Poker Run which was budgeted for $700 raised $1500 but the movie event budgeted for $3000 brought in $1200. The goal, of course, is to exceed our operational costs by at 10 – 20% in order to save for lean times and help fund expansion, new capital expenses and additional programs such as the low income spay/neuter program.     APPENDIX C Fundraising Plan   22  Hawk Creek Shelter Video. Active link or copy/type into browser.   https://youtu.be/VYz6I2VyI0s ‐ Hawk Recognition Wall and Discussion – 1:22 min https://youtu.be/mMwrnazgMKM ‐ Hawk Outdoor Kennel Space - :40 min https://youtu.be/X9rACsuULRY ‐ Hawk Medical Surg Panty Discussion – 2:47min https://youtu.be/jDXSVfOHyO4 ‐ Hawk Intake Iso Area – 1:42 min https://youtu.be/Lx1F5dKxtis ‐ Hawk Intake Dogs AC – 1:15 min https://youtu.be/JYSFW2xRNoE ‐ Hawk Dog Kennels post Intake – 1:50 min    additional videos from round table (audio quality poor but can hear most)  Video 1: This is our introduction with Bobbi at Hawk Creek 6:25  https://www.youtube.com/watch?v=mXEoO135oQ8&feature=youtu.be    Video 2: Q&A at Hawk Creek when 2 more of their board members joined. 13:50  https://www.youtube.com/watch?v=z0zLx3yR6bM&feature=youtu.be    Video 3: Introductions at the Q&A at TWC 4:12  https://www.youtube.com/watch?v=pLPgkmXAqlA&feature=youtu.be    Video 4: Q&A at TWC 33:10  https://www.youtube.com/watch?v=g3HkwoEkt68&feature=youtu.be    Video 5: Q&A at TWC continued 19:10  https://www.youtube.com/watch?v=gAfmwZRKucs&feature=youtu.be    Video 6: Closing comments after lunch 6:17  https://www.youtube.com/watch?v=sS4chwhHXIc&feature=youtu.be      APPENDIX D Other 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 2018-0313,Version:1 Action to approve the June 26, 2018 City Council Minutes. Attachments: 6/26/2018 Minutes City of Brookings Printed on 7/5/2018Page 1 of 1 powered by Legistar™ Brookings City Council June 26, 2018 (unapproved) The Brookings City Council held a meeting on Tuesday, June 26, 2018 at 6:00 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 Paul Briseno, City Attorney Steve Britzman, and Deputy City Clerk Bonnie Foster were also present. 6:00 PM Regular Meeting Consent Agenda. Item #8.C. Resolution 18-047, a Resolution annexing the N 340' of the E 660' excluding the E 350' and the E 440' excluding the E 350' all in the SE 1/4 SW ¼ of Section 2-T109N-R50W was removed from the agenda. A motion was made by Council Member Kidwiler, seconded by Council Member Wendell, to approve the agenda as amended. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Hansen, Kidwiler, Bacon, Wendell, and Tilton Byrne. 3.A. Action to approve the agenda. 3.B. Action to approve the June 12 and June 19, 2018 City Council Minutes. Open Forum. Heidi Gullickson, Executive Director of Brookings Area United Way, promoted the "Week of Impact" to be held September 16-25, 2018. Resolution 18-048. A motion was made by Council Member Niemeyer, seconded by Council Member Hansen, that Resolution 18-048, a Resolution Awarding Bids on 2018- 10STI LeFevre Drive Street Project, be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Hansen, Kidwiler, Wendell, Bacon, Tilton Byrne, and Corbett. Resolution 18-048 - Resolution Awarding Bids on Project 2018-10STI LeFevre Drive Street Project Whereas, the City of Brookings opened bids for the 2018-10STI LeFevre Drive Street Project on Tuesday, June 19, 2018 at 1:30 pm at the Brookings City & County Government Center; and Whereas, the City of Brookings has received the following bids for the 2016-10STI LeFevre Drive Street Project: Timmons Construction, Inc.: $297,154.26, Big-O- Concrete: $352,375.90 and BX Civil & Construction, Inc.: $445,283.40. Now Therefore, Be It Resolved that the low bid of $297,154.26 for Timmons Construction, Inc. be accepted. Temporary Liquor Application. A public hearing was held on a Temporary Liquor Application for the Brookings Volunteer Fire Association Street Dance to be held in the 300 Block of 5th Street on July 21, 2018. A motion was made by Council Member Kidwiler, seconded by Council Member Hansen, that the Temporary Liquor Application be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Hansen, Kidwiler, Wendell, Bacon, Tilton Byrne, and Corbett. Temporary Liquor Application. A public hearing was held on a Temporary Liquor Application for Downtown Brookings, Inc., to host a series of events for Downtown at Sundown on the 300 Block of 5th Street (between 3rd Ave. and Main Ave.) on July 12, July 19, July 26, August 2, August 9, August 16, and August 23, 2018. A motion was made by Council Member Tilton Byrne, seconded by Council Member Bacon, that the Temporary Liquor Application be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Hansen, Kidwiler, Wendell, Bacon, Tilton Byrne, and Corbett. Resolution 18-049. A motion was made by Council Member Kidwiler, seconded by Council Member Niemeyer, that Action on Resolution 18-049, a Resolution providing financial commitment for a Federal BUILD Grant to fund the development of the I-29 and 20th Street South Interchange be approved. Public Comment: Lyle Bowes and Regan Rohl. An amendment was made by Council Member Tilton Byrne, seconded by Council Member Hansen, that Resolution 18-049 include the following language "contingent upon receipt of the grant." On the amendment, the motion carried by the following vote: Yes: 7 - Niemeyer, Hansen, Kidwiler, Wendell, Bacon, Tilton Byrne, and Corbett. On the original motion, as amended, the motion carried by the following vote: Yes: 7 - Niemeyer, Hansen, Kidwiler, Wendell, Bacon, Tilton Byrne, and Corbett. Resolution 18-049 - A Resolution Providing Financial Commitment for a Federal BUILD Grant to fund the development of the I-29 and 20th Street South Interchange Whereas, the City of Brookings supports the development of a I-29 and 20th Street South Interchange; and Whereas, the City of Brookings is desirous in providing increased economic development opportunities, connectivity and safety improvements; and Whereas, the Federal Government has grant funds available through the Better Utilizing Investments to Leverage Development (BUILD) Grant Program; and Whereas, the City of Brookings will commit the necessary funds toward the local match not to exceed $3.6 million or 20% of the total project cost; and Whereas, the City of Brookings supports the Brookings Economic Development Corporation’s application for the I-29 and 20th Street South Interchange Project; and Now, Therefore, Be It Resolved that the City Council of the City of Brookings financially supports the described application for the I-29 and 20 th Street South Interchange Project, upon receiving the grant. Adjourn. A motion was made by Council Member Hansen, seconded by Council Member Niemeyer, to adjourn the meeting at 6:20 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 #:RES 18-050,Version:1 Action to approve Resolution 18-050, a Resolution authorizing the City Manager to Sign Documents for DTOS59-18-RA-BUILD1 Grant Application. Summary: A resolution designating the City Manager as an authorized representative to sign documents on behalf of the City of Brookings for a grant application. Background: The City of Brookings is interested in submitting a grant application through the Department of Transportation National Infrastructure Investments program. The City Council previously committed to a local match with Resolution 18-049. Resolution 18-050 designated the City Manager as the authorized representative to sign documents associated with the grant application and any potential funding awards. Staff Recommendation: Staff recommends approval. Attachments: Resolution 18-050 Resolution 18-049 City of Brookings Printed on 7/6/2018Page 1 of 1 powered by Legistar™ Resolution 18-050 A Resolution Authorizing the City Manager to Sign Documents for DTOS59-18-RA-BUILD1 Grant Application Whereas, the Brookings City Council desires to apply for grant assistance through the National Infrastructure Investments BUILD program for an interchange project; Whereas, the City of Brookings is committed to providing a local match towards the project costs; Now Therefore Be It Resolved that the City Manager of the City of Brookings is authorized to sign documents on behalf of the City of Brookings associated with the DTOS59-18-RA-BUILD1 grant application and funding award documents. Dated this 10th day of July, 2018. CITY OF BROOKINGS Paul M. Briseno, City Manager 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 2018-0312,Version:1 Public Hearing and Action on a Temporary Liquor Application from Old Market Eatery for a temporary liquor license to operate within the City of Brookings, South Dakota for a Humane Society Fundraiser to be held on July 19 at Cinema 8 Theatre, 219 6th Street. Summary: The Old Market Eatery has applied for a Temporary Liquor License for a Humane Society Fundraiser to be held on July 19 at Cinema 8 Theatre, 219 6th Street. All temporary alcohol licenses must be approved by the City Council through use of a public hearing. All documents have been filed with the City pertaining to insurance and other licensing requirements. Recommendation: Staff recommends approval. Attachments: Legal Notice City of Brookings Printed on 7/5/2018Page 1 of 1 powered by Legistar™ Public Hearing Sale of Alcoholic Beverages NOTICE IS HEREBY GIVEN that the Brookings City Council, Brookings, South Dakota, will hold a public hearing at 6:00 p.m., Tuesday, July 10, 2018, in the Brookings City & County Government Center, 520 Third Street, to consider an application from Old Market Eatery for a temporary liquor license to operate within the City of Brookings, South Dakota for a Humane Society Fundraiser to be held on July 19 at Cinema 8 Theatre, 219 6th Street. At which time and place all persons interested will be given a full, fair and complete hearing thereon. Dated at Brookings, South Dakota, this 3rd day of July, 2018. Shari Thornes, City Clerk Published time(s) at an approximate cost: $. 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 2018-0310,Version:1 Discussion and Possible Action to Approve Tax Increment District #8 Pre-Application. Summary: PEM Affordable Housing LLC has submitted a Tax Increment Financing pre-application for an affordable housing project. Background: PEM Affordable Housing LLC has submitted a Tax Increment Financing (TIF) pre-application for a 32 lot affordable housing project. The applicant is proposing to sell 32 shovel-ready residential lots to Inter-Lakes Community Action Partnership’s Mutual Self Help Housing Program. The proposed project is located within the Timberline Addition bounded by the future streets of Brighton Road, Summit Pass, Steamboat Trail and West 16th Avenue. The TIF proposal is a pay-as-you-go, whereby the developer is responsible for fronting all of the costs and would be reimbursed as increment is generated to the extent permissible by state law. The total project cost for the project is $2,409,904, of which the applicant is requesting $1,481,904 as TIF eligible expenses. The applicant will sell the 32 residential lots to ICAP for $29,000 per lot and re -invest the revenue from the sale of the residential lots directly back into the project, thus reducing the total TIF eligible expenses to $1,481,904 as requested. ICAP will in turn provide residential lots through their Mutual Self-Help Housing Program. Homeowners are pre-qualified for the program through income restrictions and participate in the build process. The individual home loans are guaranteed by USDA-Rural Development. Past ICAP homes have been constructed in Brookings in the $120,000 - $130,000 range. The proposed project satisfies Section I. Objectives governing the use of TIF as outlined in the Tax Increment Guidelines, specifically addressing the following objectives: 6. To stimulate the construction of safe and affordable housing units for low and moderate income residents and expand the general housing stock. 8. To facilitate the development process and to achieve development on sites which would not otherwise be developed BUT FOR the use of TIF. A review of residential lots listed for sale as of July 2, 2018 in the City of Brookings revealed 99 lots available with an average listing price of $53,188. The lowest priced lot was listed at $37,400 and a total of 7 lots listed under $40,000. Per the TIF guidelines, this is a pay-as-you-go TIF project whereby the developer is responsible for the upfront costs and is reimbursed for eligible expenses as increment is generated. City of Brookings Printed on 7/5/2018Page 1 of 2 powered by Legistar™ File #:ID 2018-0310,Version:1 Fiscal Impact: This is a pay-as-you-go TIF whereby the developer fronts the costs of infrastructure, site development, etc. and is reimbursed by increment generated from development. The City is not financing the project and assumes no risk. Recommendation: Staff recommends approval. Attachments: Pre-application Cost Estimates District Map Project Vicinity Map TIF Guidelines City of Brookings Printed on 7/5/2018Page 2 of 2 powered by Legistar™ Guidelines for the Use of Tax Increment Finance -City of Brookings, South Dakota- Adopted by the City Council: January 13, 2009 Guidelines for the Use of Tax Increment Finance -City of Brookings, South Dakota- Purpose of these Guidelines: These guidelines are established to outline the City‟s position governing the intended use of tax increment financing (TIF) as an economic development tool for development. These guidelines operate within the parameters of SDCL 11-9 as amended; and shall be used as a procedural framework for considering applications for its use. The fundamental purpose of tax increment financing in Brookings is to encourage desirable development or redevelopment that would not otherwise occur but for the assistance provided through TIF. It shall further be the intent of TIF use to be for the shortest duration possible to achieve the City‟s desired results for the specific project. The City reserves the right to approve or reject projects on a case-by-case basis, taking into consideration established policies, project criteria, existing ordinances, and demand on city services in relation to the potential benefits from the project. Meeting the criteria does not guarantee the award of TIF to the project. Approval or denial of one project is not intended to set precedent for approval or denial of another project. Each project is unique and must stand on its own merits. Section I: Objectives governing the use of TIF The City will consider using TIF to assist private and public development projects provided Item (8) in this Section and one additional of the following public purpose objectives are satisfied. 1) To retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits. These jobs should be at the level sufficient to being considered a living wage/head-of-household income, and be considered primary jobs. 2) To encourage the redevelopment of deteriorated, contaminated, designated “brownfield”, or otherwise blighted real property through the investment of TIF funding; to result in an appreciably higher level of quality redevelopment and private reinvestment. 3) To stimulate economic development in Brookings by assisting projects that promote the long term economic vitality of the community; and contributes to the fulfillment of the City‟s development or redevelopment objectives. 4) To stimulate increased private investment in areas that would have otherwise remained undeveloped or under-developed and which will, in the long term, provide a significant source of additional tax revenues to all taxing jurisdictions. 5) To encourage additional unsubsidized private development in the area, either directly or indirectly through “spin-off” development. 6) To stimulate the construction of safe and affordable housing units for low and moderate income residents and expand the general housing stock. (The latest available housing plan/survey, and information from South Dakota Housing Development Authority should be used as the primary guideline for determining affordability levels.) 7) To offset increased costs of redevelopment over and above the costs normally incurred in development. 8) To facilitate the development process and to achieve development on sites which would not otherwise be developed BUT FOR the use of TIF. Use of TIF shall be considered a financing means of last resort as determined by the City Council. 9) To support and assist in the implementation of the City‟s Comprehensive Plan. 10) To broaden and expand the tax base to the benefit of all taxing jurisdictions. 11) To support redevelopment efforts that enhance and preserve unique urban features including but not limited to the downtown central business district, historic districts, entryway features and amenities, and public assembly areas. 12) To the extent permitted by law, tax increment proceeds may be used to finance eligible city-owned projects and improvements within the district as deemed necessary by the City Council. Section II: General guidelines governing the use of TIF 1) The City of Brookings will comply with all requirements of SDCL 11-9 as amended. The City will undertake a comprehensive analysis to ensure the proposed project satisfies the “BUT FOR” criteria. The project must demonstrate to the satisfaction of the City Council, that it is not economically feasible without the use of TIF. 2) The City of Brookings will use tax increment financing only when a clearly identified city development objective is served and only to the degree necessary to accomplish that development objective. 3) Tax increment financing will only be used in cases where the City has the financial capacity to provide the needed public assistance, the Council deems it fiscally prudent to provide such assistance, and the developer can clearly demonstrate the development will be able to meet it‟s financial and public purpose obligation. 4) The financing method of TIF districts shall be a “pay-as-you-go” method whereby the applicant fronts the costs and will be reimbursed by the City over time as increment becomes available. The developer shall be considered the borrower under „pay-as-you-go” and the City shall not be liable for debt. As an alternative, the City Council may consider the issuance of bonded indebtedness through tax increment bonds only when unique circumstances determine “pay-as-you-go” is not feasible. 5) As a condition of using TIF, applicants agree to waive their right to use the discretionary formula. The discretionary formula provides a financial incentive in addition to the use of tax increment. Using the discretionary formula lessens the availability of increment needed to finance the project. 6) Only those public improvements and redevelopment costs directly associated with, or needed to service the proposed development plan or project, should be financed through tax increment proceeds. 7) The amount of increment remitted to the developer shall not exceed the amount in the approved project plan as adopted by the City Council; and shall be only for the lesser of either actual or budgeted expenditures in the approved plan. 8) The duration of the tax increment district shall be determined in the approved project plan as adopted by the City and shall terminate at such time as the sufficient increment has been generated pursuant to the approved project plan. In the event sufficient increment has not been generated by the time of the scheduled decertification of the district, the developer shall be responsible for any shortfall. 9) Tax increment expenditures shall only be made for items directly related to, and ancillary to, a bona fide public purpose or public benefit as determined exclusively by the City Council. 10) The City shall advertise for competitive bids for construction of the project, shall hold the construction contract, and shall make payments to the contractor with reimbursements from the applicant for pay-as-you-go projects, or from the bond fund for bonded indebtedness funds. The City shall not make any payments to the contractor until the applicant has made sufficient deposits to the City to cover the contractor payments for pay-as-you-go projects. 11) All development proposals should seek to maximize the amount of private investment per dollar of public assistance. Public assistance as a percentage of total development costs will be determined for each project as part of the review and compared to other development projects or subprojects of similar scope and magnitude whenever possible. 12) The City may, on a case-by-case basis, establish public purpose requirements specific to an application that must be met for the project. Such requirements shall be described in the project plan, development agreement, or other binding document between the City and the applicant, which may be in addition to the scope of applicable city ordinances or policies. Such items which may be included and if included would require performance by the Applicant may include but are not limited to: prescribed valuation of a home or building, acreage or building sizes, wages, number of jobs created/retained, building materials affecting appearance, landscaping, signage, property valuation increases, sales tax generating capacity, historic preservation, environmental improvements, transportation improvements, blight remediation, parking improvements, etc. 13) Applicant shall demonstrate to the satisfaction of the City that sufficient market demand exists for the proposed project. TIF shall not be used to support speculative projects. 14) Applicant must provide adequate financial guarantees to constitute a minimum of 10 percent equity investment cash infusion by Applicant into the overall project. Private lender financing and TIF shall not be counted toward the 10 percent equity requirement. 15) Applicant must provide adequate financial and legal guarantees to ensure completion of the project, including, but not limited to letters of credit, performance bonds, and personal guarantees. 16) For the purposes of underwriting the proposal, the applicant shall provide any requested market, financial, environmental, or other data pertaining to the proposed TIF project requested by the City or its consultants. 17) The project must be consistent with the City‟s Comprehensive Plan, Zoning Ordinances, Subdivision Regulations, Land Use Plan, and any other duly-adopted master plans affected by the use of Tax Increment Financing. 18) The applicant shall adequately demonstrate, to the City‟s sole satisfaction, an ability to complete the proposed project based on past development experience, general reputation, and credit history, among other factors, including the size and scope of the project. 19) The City may reject the use of TIF if it determines the project would place an extraordinary demand on city services or if the project that would have significant detrimental impacts on the health, safety, or general welfare of the community. 20) The City may consider amendments to either the district boundaries after a district is certified, or to the previously-adopted project plan. Amendments may be necessary to accommodate changes to desired public purpose outcomes. 21) The final interest rate and terms on the TIF Note shall be determined by the City Council and incorporated into the Development Agreement. Section III: Economic Analysis and Risk Assessment Process 1) Proposed uses of tax increment will be subject to rigorous economic analysis and risk assessment. This analysis will be conducted by the TIF Review Staff Team through their review process. The analysis may include review and assessment by consultants. (The TIF Review Staff Team shall consist of: City Manager (or designee), City Finance Officer, City Engineer, Community Development Director, Planning/Zoning Administrator, BEDC Economic Development Director.) 2) The analysis and assessment of all proposed uses of tax increment will address the following questions as part of the standard format for reports to the City Council. i. What is the public purpose of the financial assistance for this project? ii. Why is there a financial need for public investment and/or subsidy? iii. What is the total cost of the project? iv. What is the appropriate level of public participation? v. What are the risks associated with the project? vi. What are the alternative plans for managing the risk? vii. How does the proposed project finance plan compare with previously approved comparable projects? viii. What is the project‟s impact on other publicly financed projects? 3) The results of the Economic Analysis and Risk Assessment will be presented to the City Planning Commission and City Council at a time consistent with the schedule provided in Section V. The report shall identify any elements of the proposed project that are not in conformance with this policy. 4) Applicants shall pay a TIF application fee as determined by City resolution as a means of cost recovery for time and resources involved with approval of a TIF project. The fee shall be due and payable as part of the application process in Section V, Step 3. The process outlined in Section V shall not proceed until this amount has been paid in full. Applicants shall pay the fees associated with the Bond Counsel and Financial Advisor who shall be retained by the City for review of the TIF project. Applicants shall pay direct costs associated with processing the TIF application including but not limited to postage, hearing notices, surveys, platting, engineering, copying, legal fees, appraisals, recording fees, etc. Such costs shall not be the responsibility of the City. 5) The City may require periodic reports on the financial and developmental performance of the TIF district during the term of the district. Section IV: Eligible costs of tax increment revenue The City reserves the right to further restrict eligible costs as enumerated in state law in this section as well as for each TIF project. Private buildings, structures, utilities or other private-use improvements are not eligible for TIF assistance. Development costs that are eligible for reimbursement with tax increment revenues are listed below. Property acquisition Elimination of slum and blighted conditions on property/land clearance Soils corrections Site preparation/clearing and grading of land Removal of hazardous wastes or remediation of site contamination Construction of capital public improvements such as: Streets Curb and gutter Storm drainage utilities/ponds Wastewater utilities Water utilities Sidewalks/trails/pathways Landscaping improvements Signage & traffic controls Lighting Public parking lots Organizational costs Capitalized interest/finance charges Professional service costs Imputed administrative costs Relocation costs Other costs permitted by state law as may be prescribed in the TIF project plan. Section V: Tax Increment Finance application and approval process Each step must be approved before the project can move to the next step. The project shall be terminated for failure to meet the requirements of each step unless each step is satisfactorily completed or the step is modified to the satisfaction of the City in order to advance to the next step. 1) Applicant submits pre-application for TIF project to Community Development Director. (Attachment 1) 2) City Council reviews pre-application to assess viability/feasibility of project. 3) Applicant submits full application, including application fee, to Community Development Director. (Attachment 2) 4) TIF Review Team undertakes review of the application and project. 5) Project Plan is written by Review Team, Bond Counsel, & Financial Advisor. 6) Notices of a Public Hearing before Planning Commission are distributed. 7) Planning Commission holds public hearing; approves the district boundaries and project plan. 8) TIF Review Team develops Development Agreement. 9) City Council approves district boundaries and Project Plan. 10) City Engineer and Community Development Director give final approval of development plans. 11) City Council approves Development Agreement. 12) City advertises for bidders for the construction of the project. 13) City staff holds bid opening, City Council awards contract for construction. 14) City Engineer gives contractor notice to proceed with construction. 15) City forwards appropriate records to Dept. of Revenue and County Officers. 16) Review/evaluation of project performance. (Attachment 3) NOTE: In the event the TIF Review Team rejects the project in Step 4, the applicant may appeal to the City Council. The TIF Review Team shall provide the applicant a list of deficiencies as justification for any rejection of the project. Attachment 1: Pre-application Tax Increment Finance Policy -City of Brookings, South Dakota- Department of Community Development Applicant Name and Address: Date:________ Proposed project location: (Address, legal description) Attach a map Current zoning: _____ Zoning Change to accommodate proposed project: _____ Project Description: Improvements to be financed by TIF: Estimated cost of total project and TIF-eligible expenses: Current status of development: (platted, zoned, engineered, designed, etc.) --------------------------------------- FOR CITY USE ONLY----------------------------------- Staff Review Comments: Recommend to go to City Council for Section V; Step 2: ___YES ___NO If NO, what are the deficiencies? Community Development Director:________________________ Date:______ Attachment 2: TIF Application Tax Increment Finance Policy -City of Brookings, South Dakota- Department of Community Development THIS SECTION WILL BE WRITTEN AFTER THE CITY COUNCIL APPROVES THE OVERALL POLICY Attachment 3: Evaluation/project performance Tax Increment Finance Policy -City of Brookings, South Dakota- Department of Community Development THIS SECTION WILL BE WRITTEN AFTER THE COUNCIL APPROVES THE OVERALL POLICY