HomeMy WebLinkAbout2019_02_26 CC PKTCity 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!"
Council Chambers6:00 PMTuesday, February 26, 2019
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 2019-0078 Action to approve the February 12, 2019 City Council Minutes.
2/12/2019 MinutesAttachments:
3.C.ID 2019-0050 Action on an appointment to the Sustainability Council as the student
representative.
3.D.ID 2019-0079 Action on appointments to the Brookings Human Rights Commission.
Page 1 City of Brookings
February 26, 2019City Council Meeting Agenda
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:
6.A.RES 19-002 Action on Resolution 19-002, a Resolution Awarding Bids on 2019-06STI,
Chip Seal Project.
Memo
Resolution
Map
Attachments:
Action: Motion to Approve, Request Public Comment, Roll Call
6.B.RES 19-023 Action on Resolution 19-023, a Resolution Awarding Bids on 2019-07STI,
Freight On Board Asphalt Material.
Memo
Resolution
Attachments:
Action: Motion to Approve, Request Public Comment, Roll Call
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.ORD 19-002 Public Hearing and Action on Ordinance 19-002, an Ordinance pertaining
to a Conditional Use Permit to erect a temporary telecommunication tower
with a height of 165 feet in a Residence R-2 Two-Family District on Lot 3
and the East ½ of Lot 4, Block 1, Hill Park Addition, also known as 1116
4th Street.
Page 2 City of Brookings
February 26, 2019City Council Meeting Agenda
Memo
Ordinance
01-07-2019 Planning Commission Minutes
Notice
Vicinity Map
Conditional Use Map
Site Plan
Attachments:
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
Legislative History
1/22/19 City Council read into the record
9. Other Business:
9.A.RES 19-025 Action on Resolution 19-025, a Resolution Authorizing the Execution of
Sales Tax Bonds in the Aggregate Principal Amount of Not to Exceed
$7.1M to Provide Funds for Capital Improvements Relating to the
Renovation of the Larson Ice Center, the Bob Shelden Baseball Fields,
and other Infrastructure.
Memo
Resolution
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. Executive Session
11.A.ID 2019-0081 Executive Session, pursuant to SDCL 1-25-2, for purposes of c onsulting
with legal counsel or reviewing communications from legal counsel about
proposed or pending litigation or contractual matters.
Action: Motion to enter into Executive Session, Voice Vote
Action: Motion to exit Executive Session, Voice Vote
12. 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 Bonnie Foster, Acting 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
Page 3 City of Brookings
February 26, 2019City Council Meeting Agenda
Assisted Listening Systems (ALS) are available upon request. Please contact Maggie Owens, City of Brookings
Director of Administrative Services, at (605)692-6281 or mowens@cityofbrookings.org
<mailto:mowens@cityofbrookings.org>. If you require additional assistance, alternative formats, and/or accessible
locations consistent with the Americans with Disabilities Act, please contact Maggie Owens, City ADA Coordinator,
at (605)692-6281 at least three working days prior to the meeting.
Page 4 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 2019-0078,Version:1
Action to approve the February 12, 2019 City Council Minutes.
Attachments:
02/12/2019 Minutes
City of Brookings Printed on 2/21/2019Page 1 of 1
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Brookings City Council
February 12, 2019 (unapproved)
The Brookings City Council held a meeting on Tuesday, February 12, 2019 at 6:00 PM,
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 Acting City Clerk Bonnie Foster were also present.
6:00 PM REGULAR MEETING
Consent Agenda:A motion was made by Council Member Wendell, seconded by
Council Member Hansen, to approve the Consent Agenda. The motion carried by the
following vote: Yes: 7 - Niemeyer, Hansen, Kidwiler, Wendell, Bacon, Tilton Byrne, and
Corbett.
3.A. Action to approve the agenda.
3.B. Action to approve the January 22, 2019 City Council Minutes.
3.C. Action on a request to abate property taxes from Matthew & Michele Schmidt,
1903 Windermere Way, in the amount of $104.70, legal description: Lot 22, Block 3,
Windermere Pointe Addition. Parcel #40677-00300-022-00.
3.D.Action on a request to abate property taxes from Brookings Municipal Utilities in
the amount of $49.71, legal description: Lot 2, Block 2, Nelson 5th Addition. Parcel
#40412-00200-002-00.
3.E. Action on a request to abate property taxes from the City of Brookings in the
amount of $1,302.07, legal description: Lot 9, Block 3 of First Addition, City of Brookings
aka: 211 6th Ave. Parcel #40160-00300-009-00.
3.F. Action on a request to abate property taxes from the City of Brookings in the
amount of $225.47, legal description: W102’ of Lots 10 & 10A, Block 3, First Addition,
City of Brookings aka: 519 Front Street. Parcel #40160-00300-010-05.
3.G. Action on a request to abate property taxes from the City of Brookings in the
amount of $969.53, legal description: E73’ of Lots 10 & 10A, Block 3 of First Addition,
City of Brookings aka: 205 6th Ave. Parcel #40160-00300-010-00.
3.H. Action on a request to abate property taxes from the City of Brookings in the
amount of $30.53, legal description: Lot 53A, 53B, 53C, Sioux Village Indian Hills
Addition, City of Brookings. Parcel #40265-02000-053-05.
3.I. Action on a request to abate property taxes from the City of Brookings in the
amount of $424.42, located on Lot 1, Block 2, Nelson 5th Addition, City of Brookings.
Parcel #40412-00200-001-00.
3.J. Action on a request to abate property taxes from the City of Brookings in the
amount of $71.28, legal description: Lot 1, Lift Station Addition, City of Brookings.
Parcel #40311-00000-001-00.
3.K. Action on Resolution 19-022, a Resolution authorizing Change Order No. 1
(Final) for 2018-07STI Asphalt Concrete Freight on Board Project; Bowes
Construction, Inc.
Resolution 19-022 - A Resolution Authorizing Change Order No. 1 (Final), for
2019-07STI Freight On Board Project; Bowes Construction Inc.
Be It Resolved by the City Council that the following change order be allowed for
2019-07STI Freight on Board Project: Construction Change Order Number 1 Final
Adjust estimated bid quantities to “as-built” quantities for a total decrease of
($17,463.49) to close out the project.
Open Forum. Nick Schmeichel asked for clarification on recent staff position changes
pertaining to titles and open positions, and shared some concerns regarding the
Brookings Committee for People who have Disabilities, and the Human Rights
Commission.
Resolution 19-020. A motion was made by Council Member Kidwiler, seconded by
Council Member Niemeyer, that Resolution 19-020, a Resolution Awarding a Contract
on the Design-Build Project for the Larson Ice Center Ice Plant and Ice Floor
Replacement, be approved. The motion carried by the following vote: Yes: 5 -
Niemeyer, Kidwiler, Bacon, Tilton Byrne, and Corbett; No: 2 - Hansen, and Wendell.
Resolution 19-020 - Resolution Awarding a Contract on the
Design-Build Project for theLarson Ice Center Ice Plant and Ice Floor Replacement
Whereas, the City of Brookings opened financial proposals for the Design-Build Project
for the Larson Ice Center Ice Plant and Ice Floor Replacement on Friday, January 25,
2019 at 3:00 pm at the Brookings City & County Government Center; and
Whereas, the City of Brookings has received the following proposals for the Larson Ice
Center Ammonia Indirect Ice Plant and Ice Floor Replacement: McKinstry -
$3,690,278.00; JLG Building Solutions & Ice - $3,841,109.54.
Whereas, the City of Brookings has determined the Adjusted Price based on the Best
Value calculation as per Resolution 109-12, “Procedures for City of Brookings
Design-Build Procurement” to be: McKinstry - $3,878,787.05; JLG Building Solutions &
Ice - $4,350,560.13.
Now, Therefore, Be It Resolved, that the proposal of $3,690,278.00 for McKinstry be
accepted.
Resolution 19-016. A public hearing was held on Resolution 19-016, a Resolution
Levying Assessment for 2018-12SSA, Western Avenue Sanitary Sewer Assessment
Project. A motion was made by Council Member Niemeyer, seconded by Council
Member Hansen, that Resolution 19-016 be approved. The motion carried by the
following vote: Yes: 7 - Niemeyer, Hansen, Kidwiler, Wendell, Bacon, Tilton Byrne, and
Corbett.
Resolution 19-016 - Resolution Levying Assessment for Project No. 2018-12SSA
Western Avenue Sanitary Sewer Assessment Project
Whereas, the City Council has provided for the construction work to be completed under
Project No. 2018-12SSA, Western Avenue Sanitary Sewer Assessment Project.
Be It Resolved by the City Council of the City of Brookings, South Dakota, as follows:
1. The City Council has made all investigation which it deems necessary and has
found and determined that the amount which each lot or tract will be benefited by
the construction of the sanitary sewer improvement heretofore designated as
Sanitary Sewer Assessment Project No. 2018-12SSA is the amount stated in the
proposed Assessment Roll.
2. The assessment for Sanitary Sewer Assessment Project No. 2018-12SSA is
hereby approved and the assessments thereby specified are levied against each
and every lot, piece or parcel of land thereby described.
3. The assessment for all assessable properties shall be divided into ten (10) equal
annual installments and interest of ten (10) percent per annum shall accrue on
the unpaid balance of the assessment.
4. Such assessments, unless paid within thirty (30) days after the statement due
date, shall be collected by the City in accordance with the procedure for Plan
One in Section 9-43-102, South Dakota Compiled Laws of 1967, as amended.
Resolution 19-017. A public hearing was held on Resolution 19-017, a Resolution of
Intent to Lease Real Property at the Brookings Airport Terminal Building to Eric Hartung.
A motion was made by Council Member Hansen, seconded by Council Member
Wendell, that Resolution19-017 be approved. The motion carried by the following vote:
Yes: 7 - Niemeyer, Hansen, Kidwiler, Wendell, Bacon, Tilton Byrne, and Corbett.
Resolution 19-017 - Resolution of Intent to Lease Real Property at the Brookings Airport
Terminal Building to Eric Hartung
Be It Resolved by the governing body of the City of Brookings, South Dakota, that the
City of Brookings intends to enter into a Lease with Eric Hartung for a period
commencing February 12, 2019 and ending December 31, 2019 and pertaining to the
following described property:
Approximately 282 square feet in the Brookings Airport Terminal Building located in
Section 26, T110N, R50W, in the City of Brookings, Brookings County, South Dakota.
The Lease will be an amount of Two Hundred Thirty Five Dollars per month ($235.00)
and one-half the monthly utility costs at the Airport Terminal Building.
Be It Further Noted, that a Public Hearing on this Resolution was held on February 12,
2019, at 6:00 o’clock P.M. in the Chambers of the City & County Government Center
and that all persons were given an opportunity to be heard on the intent to lease real
property.
Resolution 19-018. A public hearing was held on Resolution 19-018, a Resolution of
Intent to Lease Real Property at the Brookings Airport to United Development, LLC. A
motion was made by Council Member Wendell, seconded by Council Member Hansen,
that Resolution 19-018 be approved. The motion carried by the following vote: Yes: 7 -
Niemeyer, Hansen, Kidwiler, Wendell, Bacon, Tilton Byrne, and Corbett.
Resolution 19-018 - Resolution of Intent to Lease Real Property
at the Brookings Airport to United Development, LLC
Be It Resolved by the governing body of the City of Brookings, South Dakota, that the
City of Brookings intends to enter into a Lease with United Development, LLC, for a
period commencing February 12, 2019 and ending December 31, 2023 and pertaining
to the following described property:
Approximately 9,600 square feet at the Brookings Airport located in Section 27, T110N,
R50W, in the City of Brookings, Brookings County, South Dakota.
The Lease will be an annual amount of one thousand four hundred forty dollars
($1,440.00), which is $0.15 per square foot per year. The lease amount may be
adjusted by the Brookings City Council each year and the payment will be payable by
the last working day of January of each year. The City of Brookings may terminate this
Lease with a notice of 60 days to the lessee.
Be It Further Noted, that a Public Hearing on this Resolution was held on February 12,
2019, at 6:00 o’clock P.M. in the Chambers of the City & County Government Center
and that all persons were given an opportunity to be heard on the intent to lease real
property.
Resolution 19-019. A public hearing was held on Resolution 19-019, a Resolution of
Intent to Lease Real Property at the Brookings Airport to Wilde Air Service. A motion
was made by Council Member Kidwiler, seconded by Council Member Niemeyer, that
Resolution 19-019 be approved. The motion carried by the following vote: Yes: 7 -
Niemeyer, Hansen, Kidwiler, Wendell, Bacon, Tilton Byrne, and Corbett.
Resolution 19-019 - Resolution of Intent to Lease Real Property
at the Brookings Airport to Wilde Air Service
Be It Resolved by the governing body of the City of Brookings, South Dakota, that the
City of Brookings intends to enter into a Lease with Wilde Air Service, for a period
commencing February 12, 2019 and ending December 31, 2023 and pertaining to the
following described property:
Approximately 8,960 square feet at the Brookings Airport located in Section 27, T110N,
R50W, in the City of Brookings, Brookings County, South Dakota.
The Lease will be an annual amount of one thousand three hundred forty four dollars
($1,344.00), which is $0.15 per square foot per year. The lease amount may be
adjusted by the Brookings City Council each year and the payment will be payable by
the last working day of January of each year. The City of Brookings may terminate this
Lease with a notice of 60 days to the lessee.
Be It Further Noted, that a Public Hearing on this Resolution was held on February 12,
2019, at 6:00 o’clock P.M. in the Chambers of the City & County Government Center
and that all persons were given an opportunity to be heard on the intent to lease real
property.
Adjourn. A motion was made by Council Member Hansen, seconded by Council
Member Wendell, that this meeting be adjourned at 6:44 p.m. The motion carried by a
unanimous vote.
CITY OF BROOKINGS
__________________________
Keith W. Corbett, Mayor
ATTEST:
__________________________
Bonnie Foster, Acting 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 2019-0050,Version:1
Action on an appointment to the Sustainability Council as the student representative.
Summary:
Mayor Keith Corbett is recommending the reappointment of McKinley Lain as the student
representative.
Sustainability Council
Number of positions:1
Term Length:1 year
Residency Requirement:City required for majority
The purpose of the Sustainability Council is to investigate, propose, educate, communicate, and
advocate investment strategies and policies that will improve our future quality of life while still
meeting the needs of the present.
City of Brookings Printed on 2/21/2019Page 1 of 1
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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 2019-0079,Version:1
Action on appointments to the Brookings Human Rights Commission.
Summary:
Mayor Keith Corbett has submitted the following Human Rights Commission appointment
recommendations for City Council advice and consent:
Human Rights Commission
Number of positions:3
Term Length:2 - 1 year; 1 - 3 year
Residency Requirement:Not Required
Purpose: The mission of the Brookings Human Rights Commission (BHRC) is to improve human
relations in the Brookings area by fighting discrimination through education and a complaint
resolution procedure. The Commission seeks to protect the rights of and prevent and eliminate bias
and discrimination against individuals or groups because of their sex, race, color, creed, religion,
ancestry, disability, familial status, national origin, age, marital status, ethnicity, sexual orientation,
gender identity, or political affiliation, with respect to employment, labor union membership, housing
accommodations, property rights, education, public accommodations or public services. The
Commission promotes educational activities to make Brookings an inclusive and welcoming
community.
Mayor’s Recommendation:
1. Appoint Kati Hanson
2. Appoint Jason Meusburger
3. Appoint Marilyn Hildreth
City of Brookings Printed on 2/21/2019Page 1 of 1
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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 19-002,Version:1
Action on Resolution 19-002, a Resolution Awarding Bids on 2019-06STI, Chip Seal Project.
Summary:
The City held a bid letting on Tuesday, February 19, 2019 for the 2019-06STI, Chip Seal Project.
Topkote Inc. from Yankton submitted the low bid of $310,749.00, which was approximately 5% higher
than the Engineer’s Estimate of $294,600.00. Staff will examine the street list and may need to delay
one of the streets until next year to keep the project within the $311,000 budget as the pea rock also
needs to be purchased from this budget. This resolution will award the project to Topkote, Inc. for the
low bid amount of $310,749.00.
Recommendation:
Staff recommends approval.
Attachments:
Memo
Resolution
Map
City of Brookings Printed on 2/21/2019Page 1 of 1
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City Council Agenda Memo
From:Jackie Lanning, City Engineer
Council Meeting:February 26, 2019
Subject:Action on Resolution 19-002, a Resolution Awarding Bids on
2019-06STI, Chip Seal Project
Person(s) Responsible: Jackie Lanning, City Engineer
Summary:
This resolution will approve awarding the 2019-06STI Chip Seal Project to Topkote, Inc.
for the low bid of $310,749.00.
Background:
This project is the chip seal project for the 2019 Project Area, which is shown on the
attached map. This is an annual project, where the contractor applies oil and city-
purchased pea rock chips to the streets. The City then sweeps up the excess chips a
few days afterward for re-use or sale.
The City opened bids on Tuesday, February 19, 2019 at 1:30 pm at the City & County
Government Center and the following bids were received:
Topkote, Inc., Yankton, SD $310,749.00
Bituminous Paving, Inc., Ortonville, MN $364,200.00
The Road Guy Construction Co., Inc., Yankton, SD $381,800.00
The low bid of $310,749.00 was approximately 5% higher than the Engineer’s Estimate
of $294,600.00 which was due to higher oil prices than anticipated.
Discussion:
Staff will examine the street list and may need to delay one of the streets until next year
to keep the project within the $311,000 budget.
Legal Consideration:
None.
Financial Consideration:
The City will enter into a contract with Topkote, Inc. for the low bid of $310,749.00.
Options:
The City Council has the following options:
1. Approve as presented
2. Approve with recommended adjustments
3. Deny
Recommendation:
Staff recommends approval of the resolution as presented.
Action Requested:
Approval of the resolution to award the project to the low bidder.
Supporting Documentation:
1. Resolution
2. Map
Resolution 19-002
Resolution Awarding Bids on Project 2019-06STI Chip Seal Project
Whereas, the City of Brookings opened bids for Project 2019-06STI Chip Seal Project
on Tuesday, February 19, 2019 at 1:30 pm at the Brookings City and County
Government Center; and
Whereas, the City of Brookings has received the following bids for Project 2019-06STI
Chip Seal Project: Topkote, Inc. - $310,749.00; Bituminous Paving, Inc. - $364,200.00
and The Road Guy Construction Co., Inc. - $381,800.00.
Now Therefore, Be It Resolved that the low bid of $310,749.00 for Topkote, Inc. be
accepted.
Passed and approved this 26th day of February, 2019.
CITY OF BROOKINGS
________________________________
Keith W. Corbett, Mayor
ATTEST:
_________________________
Bonnie Foster, Acting City Clerk
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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 19-023,Version:1
Action on Resolution 19-023, a Resolution Awarding Bids on 2019-07STI, Freight On Board Asphalt
Material.
Summary:
The City held a bid letting on Tuesday, February 19, 2019 for the 2019-07STI, Freight On Board
Asphalt Material. Bowes Construction Inc. submitted a bid of $93,950.00, which is approximately
19% higher than the Engineer’s Estimate of $78,630.00. The increase is due to asphalt and oil
prices being higher than anticipated this year.
This project consists of asphalt material that street department staff picks up at the asphalt plant and
is used for patching City streets. The bid is an estimate of the tons of material that may be used by
the City, however, the City budget for the asphalt material is $70,000. Since the asphalt material is
paid for by the ton of mix, City staff will adjust how much material they pick up to stay within the
budgeted amount.
This resolution will award bids for 2017-07STI, Freight On Board Asphalt Material to Bowes
Construction Inc. for the low bid of $93,950.00.
Recommendation:
Staff recommends approval.
Attachments:
Memo
Resolution
City of Brookings Printed on 2/21/2019Page 1 of 1
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City Council Agenda Memo
From:Jackie Lanning, City Engineer
Council Meeting:February 26, 2019
Subject:Action on Resolution 19-023, a Resolution Awarding Bids on
2019-07STI, Freight on Board Asphalt Material
Person(s) Responsible: Jackie Lanning, City Engineer
Summary:
This resolution will approve awarding the 2019-07STI Freight on Board Asphalt Material
to Bowes Construction Inc. for the low bid of $93,950.00.
Background:
This project is the annual street maintenance project that provides the asphalt patching
material that the Street Department picks up at the plant to repair asphalt pavement
throughout the City. The Street Department staff also uses the materials to overlay
small street areas which are usually one block long or shorter.
A bid letting was held on Tuesday, February 19, 2019 and the City received the
following bid:
Bowes Construction Co., Inc.$93,950.00
The total low bid is approximately 19% higher than the engineer’s estimate of
$78,630.00 which was due to higher oil prices than anticipated.
Discussion:
This project consists of asphalt material that street department staff picks up at the
asphalt plant and is used for patching City streets. The bid is an estimate of the tons of
material that may be used by the City, however, the City budget for the asphalt material
is $70,000. Since the asphalt material is paid for by the ton of mix, City staff will adjust
how much material they pick up to stay within the budgeted amount.
Legal Consideration:
None.
Financial Consideration:
The City will enter into a contract with Bowes Construction, Inc. for the low bid of
$93,950.00.
Options:
The City Council has the following options:
1. Approve as presented
2. Deny
Recommendation:
Staff recommends approval of the resolution as presented.
Action Requested:
Approval of the resolution to award the project to the low bidder.
Supporting Documentation:
1. Resolution
Resolution 19-023
Resolution Awarding Bids on Project 2019-07STI
Freight on Board Asphalt Material
Whereas, the City of Brookings opened bids for Project 2017-07STI Freight On Board
Asphalt Material on Tuesday, February 19, 2019 at 1:30 pm at the Brookings City and
County Government Center; and
Whereas, the City of Brookings has received the following bid: Bowes Construction
Co., Inc.: $93,950.00.
Now Therefore, Be It Resolved that the total low bid of $93,950.00 for Bowes
Construction Co., Inc., Brookings, SD be accepted.
Passed and approved this 26th day of February, 2019.
CITY OF BROOKINGS
________________________________
Keith W. Corbett, Mayor
ATTEST:
_________________________
Bonnie Foster, Acting 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 #:ORD 19-002,Version:2
Public Hearing and Action on Ordinance 19-002, an Ordinance pertaining to a Conditional Use Permit
to erect a temporary telecommunication tower with a height of 165 feet in a Residence R-2 Two-
Family District on Lot 3 and the East ½ of Lot 4, Block 1, Hill Park Addition, also known as 1116 4th
Street.
Summary:
Brookings Municipal Utilities (BMU) has requested a Conditional Use Permit to erect a temporary
telecommunications tower with a height of 165 feet in a residential district until the new water tower is
constructed. At such time, a permanent telecommunications tower will be co-located on the water
tower structure.
Background:
The property is located along 4th Street in a residential district and is owned by the City of Brookings.
The existing telecommunications tower is co-located on the current water tower. The water tower is
scheduled to be replaced with an estimated construction timeline of July 2019 to August 2020. The
temporary telecommunication tower is necessary to provide cellular service until the new water tower
is constructed. The location of the monopole is near the rear of the property close to the alley to
minimize aesthetic impacts and maximize the distance from homes.
Section 94-396 of the Zoning Ordinance states the maximum height of a telecommunication tower in
a residential district shall be determine through the conditional use process. The development
standards section requires the tower to meet the setbacks of the district and to have a setback from
residential structures no less than the tower height. The tower meets the setbacks of the R-2 District;
however, it is not feasible to have a setback the height of the tower due to the limited land area.
BMU is requesting a 60-foot setback from the nearest residence with the conditional use permit.
Section 94-301.4 states the following:
Telecommunication towers shall be sited to minimize the visual impact on surrounding uses. The
ability to provide stealth design elements and adequately screen the tower base and equipment
facilities from any residential buildings shall be given special consideration. Co-location is important
in minimizing the visual presence of towers within the community. Therefore, construction of any new
tower shall have the capacity to accommodate more than one provider.
The tower has been strategically located near the alley to help mitigate visual impacts and provide a
greater setback distance from residences. A Conditional Use is defined as a use which, because of
its unique or varying characteristics, cannot be properly classified as a permitted use in a particular
district. After due consideration of the impacts of such use upon neighboring land and of the public
need for the particular use at a particular location, such conditional use may or may not be granted.
In this case, the temporary telecommunications tower is necessary to fill a service gap while the new
water tower is being constructed. Telecommunication/cellular service is a public need as it assists
with emergency service and response for the citizens of Brookings.
City of Brookings Printed on 2/21/2019Page 1 of 2
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File #:ORD 19-002,Version:2
Recommendation:
Staff recommends approval of the conditional use permit with the following condition:
1.The monopole shall be removed and the temporary telecommunication tower shall be co-
located on the new water tower within 12 months of the completion of the water tower.
Planning Commission Recommendation:
The Planning Commission voted 7-0, with one member abstaining, to recommend approval of the
conditional use permit with the following condition:
1.The temporary telecommunication tower shall be removed and the antenna shall be co-
located on the new water tower within 12 months of the completion of the water tower.
Attachments:
Memo
Ordinance
01-07-2019 Planning Commission Minutes
Notice
Vicinity Map
Conditional Use Map
Site Plan
City of Brookings Printed on 2/21/2019Page 2 of 2
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City Council Agenda Memo
From: Mike Struck, Community Development Director
Council Meeting: February 26, 2019
Subject: Temporary Telecommunications Tower- Conditional Use
Person(s) Responsible: Mike Struck, Community Development Director
Summary:
Brookings Municipal Utilities (BMU) has requested a Conditional Use Permit to erect a
temporary telecommunications tower with a height of 165 feet in a residential district
until the new water tower is constructed. At such time, a permanent
telecommunications tower will be co-located on the water tower structure.
Background:
The property is located along 4th Street in a residential district and is owned by the City
of Brookings. The existing telecommunications tower is co -located on the current water
tower. The water tower is scheduled to be replaced with an estimated construction
timeline of July 2019 to August 2020. The temporary telecommunication tower is
necessary to provide cellular service until the new water tower is constructed. T he
location of the monopole is near the rear of the property close to the alley to minimize
aesthetic impacts and maximize the distance from homes.
Discussion:
Section 94-396 of the Zoning Ordinance states the maximum height of a
telecommunication tower in a residential district shall be determine through the
conditional use process. The development standards section requires the tower to meet
the setbacks of the district and to have a setback from residential structures no less
than the tower height. The tower meets the setbacks of the R-2 District; however, it is
not feasible to have a setback the height of the tower due to the limited land area. BMU
is requesting a 60-foot setback from the nearest residence with the conditional use
permit.
Section 94-301.4 states the following:
Telecommunication towers shall be sited to minimize the visual impact on surrounding
uses. The ability to provide stealth design elements and adequately screen the tower
base and equipment facilities from any residential buildin gs shall be given special
consideration. Co-location is important in minimizing the visual presence of towers
within the community. Therefore, construction of any new tower shall have the capacity
to accommodate more than one provider.
The tower has been strategically located near the alley to help mitigate visual impacts
and provide a greater setback distance from residences. A Conditional Use is defined
as a use which, because of its unique or varying characteristics, cannot be properly
classified as a permitted use in a particular district. After due consideration of the
impacts of such use upon neighboring land and of the public need for the particular use
at a particular location, such conditional use may or may not be granted. In this case,
the temporary telecommunications tower is necessary to fill a service gap while the new
water tower is being constructed. Telecommunication/cellular service is a public need
as it assists with emergency service and response for the citizens of Brookings.
Legal Consideration:
None.
Financial Considerations:
None.
Options:
The City Council has the following options:
1. Approve as presented
2. Approved with recommended adjustments
3. Deny
Recommendation:
Staff and the Planning Commission recommend approval of the conditional use permit
with the following condition:
1. The monopole shall be removed and the temporary telecommunication tower
shall be co-located on the new water tower within 12 months of the completion of
the water tower.
Action Requested:
Approval of the conditional use permit to allow a temporary telecommunications tower.
Supporting Documentation:
Ordinance
01-07-2019 Planning Commission Minutes
Notice
Vicinity Map
Conditional Use Map
Site Plan
Ordinance 19-002
An Ordinance Pertaining to an Application for a Conditional Use to erect a
Temporary Telecommunication Tower with a Height of 165 feet in a Residence R-2
Two-Family District.
Be It Ordained by the Governing Body of the City of Brookings, South Dakota that said
Conditional Use shall be approved to erect a temporary telecommunication tower with a
height of 165 feet on Lot 3 and the East ½ of Lot 4, Block 1, Hill Park Addition, also
known as 1116 4th Street with the following condition:
1. The temporary telecommunication tower shall be removed and the antenna shall
be co-located on the new water tower within 12 months of the completion of the
water tower.
All sections and ordinances in conflict herewith are hereby repealed.
First Reading:January 22, 2019
Second Reading:February 26, 2019
Published:March 1, 2019
CITY OF BROOKINGS
__________________________
Keith W. Corbett, Mayor
ATTEST:
________________________________
Bonnie Foster, Acting City Clerk
Planning Commission
Brookings, South Dakota
January 7, 2019
OFFICIAL MINUTES
Chairperson Eric Rasmussen called the regular meeting of the City Planning
Commission to order on Monday, January 7, 2019, at 5:30 PM in the Chambers Room
#310 on the third floor of the City & County Government Center. Members present
were Tanner Aiken, Leah Brink, James Drew, Greg Fargen, Alan Johnson, Charles
Siver, Lee Ann Pierce and Fargen. Absent was Gregg Jorgenson. Also present were
City Planner Staci Bungard, Community Development Director Mike Struck, Curt Kabris
and Eric Witt representing BMU, and others.
Item #5a – Brookings Municipal Utilities has submitted an application for a Conditional
Use on Lot 3, and the E 1/2 of Lot 4, Block 1, Hill Park Addition, also known as 1116 4th
Street.
(Drew/Fargen) Motion to approve the Conditional Use.
(Pierce/Aiken) Motion to amend the original motion to include the Staff
Recommendation that the temporary telecommunication tower shall be removed and
the antenna shall be co-located on the new water tower within 12 months of the
completion of the water tower. The amendment was voted on. All present voted aye,
except Rasmussen who abstained. AMENDMENT CARRIED.
Motion as amended was voted on. All present voted aye, except Rasmussen who
abstained. MOTION CARRIED.
OFFICIAL SUMMARY
Item #5a – Kabris informed those in attendance that BMU is replacing a water tower,
and Swiftel needs to be able to erect a temporary communication tower to keep 911
services and other phone services up and running during the construction. Upon
investigation, they have found that placing a temporary communication tower on the
same site would be most beneficial. They have been through FAA approval and the
FCC process is still under review. Aiken asked how tall the new water tower will be?
Witt explained that the new tower will actually be shorter than the current tower. Kabris
commented that the temporary tower will have to be slightly taller than the current tower
to allow for the demolition of the old tower and to prevent shadowing issues with the
towers.
If you require assistance, alternative formats and/or accessible locations consistent with the Americans with Disabilities
Act, please contact the City ADA Coordinator at 692-6281 at least 48 hours prior to the meeting.
Published ______ time(s) at an approximate cost of $ _____________.
NOTICE OF HEARING
UPON APPLICATION FOR CONDITIONAL USE
NOTICE IS HEREBY GIVEN THAT BROOKINGS MUNICIPAL UTILITIES
submitted an application for a Conditional Use on the following described real estate:
Lot 3, and the E ½ of Lot 4, Block 1, Hill Park Addition, also known as 1116
4th Street
The request is to erect a temporary communications tower with a height of 165 feet in a
Residence R-2 Two-Family District
NOTICE IS FURTHER GIVEN that said request will be acted on by the City
Planning Commission at 5:30 PM on Monday, January 7, 2019, in the Chambers Room
on the third floor of the Brookings City and County Government Center at 520 Third
Street, Brookings, South Dakota. Any action taken by the City Planning Commission is
a recommendation to the City Council.
Any person interested may appear and be heard in this matter.
Dated this 28
th day of December, 2018.
____________________________
Staci Bungard
City Planner
B rook ings County, SD
Vicinity Map - Con ditio na l Use
Temporary Telecommunication Tower
127 ft
Overvi ew
Legend
Br ookings City
Limits
City L imits
T ow nship Boundar y
Sections
Parcels
Roa ds
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 19-025,Version:1
Action on Resolution 19-025, a Resolution Authorizing the Execution of Sales Tax Bonds in the
Aggregate Principal Amount of Not to Exceed $7.1M to Provide Funds for Capital Improvements
Relating to the Renovation of the Larson Ice Center, the Bob Shelden Baseball Fields, and other
Infrastructure.
Summary:
The City is proposing a sales tax revenue bond to finance upgrades for the Larson Ice Center, Bob
Shelden Baseball Fields and other infrastructure. This funding is accounted within the new CIP and
the bond will be secured by the City’s Sales Tax proceeds.
Recommendation:
Staff recommends approving the resolution to proceed with Sales Tax Revenue Bonds for the Larson
Ice Center, the Bob Shelden Baseball Fields, and other infrastructure projects.
Attachments:
Memo
Resolution
City of Brookings Printed on 2/21/2019Page 1 of 1
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City Council Agenda Memo
From:Erick Rangel, Chief Financial Officer
Council Meeting:February 26, 2019
Subject:Action on Resolution 19-025 Authorizing $7.1 million in
Sales Tax Bonds for The Larson Ice Center, Bob Shelden
Baseball Facility & Other Infrastructure
Person(s) Presenting: Erick Rangel, Chief Financial Officer
Summary:
The City is proposing a sales tax revenue bond to finance upgrades for the Larson Ice
Center, Bob Shelden Baseball Facility and other infrastructure. This expenditure is
accounted within the new CIP and the bond will be secured by the City’s Sales Tax
proceeds.
Background:
The City recently completed a feasibility report on the Larson Ice Center ice system
which recommended replacement of the ice plant and ice system. The City chose the
design-build process to expedite the process and create efficiencies between the city,
engineer and contractor. The estimated cost of the project is $3.7 million.
In addition, the Bob Shelden Athletic Complex is in need of repairs and upgrades which
were presented to the City Council on May 22, 2019. The preliminary cost estimate of
the project without the artificial turf is approximately $3.4 million depending on the
options selected.
The City Council approved awarding the Design-Build Larson Ice Center Project to
McKinstry Firm from Roseville, MN at their February 12, 2019 City Council meeting.
Discussion:
The attached resolution was prepared by the City’s financial advisor and bond counsel
providing for the issuance of bonded indebtedness not to exceed $7.1 million. This
resolution will authorize the City, the financial advisor and bond counsel to proceed with
the necessary steps to issue the bond and to execute closing.
Legal Consideration:
The City will follow the requirements outlined in the resolution.
Financial Consideration:
Adding $7.1M to the City’s CIP debt would slightly reduce its current revenue to debt
ratio (coverage ratio). However, the City’s projected coverage ratio remains well above
the minimum legal coverage factor of 1.75.
The resolution allows staff to solicit proposals to gain the best interest rates for the City
and to issue the bond. Furthermore, two measures are requested that grants either
flexibility to utilize the entire debt or gear back to the amount only needed as the exact
cost of Bob Shelden is not known yet. With the Bob Sheldon upgrades anticipated in
2020, the full bonding utilization is traditionally available until 14-18 months after
closing.
Involving Dougherty & Co as placement agent should help keep bond costs and
conditions competitive at national levels, while soliciting responses from local and
regional banks Dougherty & Co will work diligently with The City to analyze, structure
and close the bond.
Options:
The City Council has the following options:
1. Approve the resolution as presented
2. Approve the resolution with modifications.
3. Reject the resolution and determine a different financing plan.
Recommendation:
Staff recommends approving the resolution to proceed with sales tax revenue bonds for
the Larson Ice Center, the Bob Shelden Baseball Fields and other infrastructure
projects.
Action Requested:
Approve the resolution to proceed with acquiring sales tax revenue bond at the most
advantageous price and structure.
Supporting Documentation:
1. Resolution
2. Resolution memo
RESOLUTION 19-025
RESOLUTION AUTHORIZING THE EXECUTION, TERMS, ISSUANCE, SALE, AND
PAYMENT OF SALES TAX REVENUE BONDS, SERIES 2019 IN THE AGGREGATE
PRINCIPAL AMOUNT OF NOT TO EXCEED SEVEN MILLION ONE HUNDRED
THOUSAND DOLLARS ($7,100,000), OF THE CITY OF BROOKINGS OF
BROOKINGS COUNTY, SOUTH DAKOTA TO PROVIDE FUNDS TO PAY COSTS
ASSOCIATED WITH PUBLIC IMPROVEMENTS INCLUDING THE RENOVATION
OF THE LARSON ICE CENTER AND THE BOB SHELDEN BASEBALL FIELDS, AND
COSTS OF ISSUANCE.
WHEREAS, the City of Brookings is authorized by the provisions of SDCL §10-52-2.10 to issue
Sales Tax Revenue Bonds to pay costs associated with the public improvements including the
renovation of the Larson Ice Center and the Bob Shelden Baseball Fields; and
WHEREAS, the City of Brookings, pursuant to the provisions of Article II, Chapter 78 of the
Revised Ordinances of the City of Brookings, South Dakota, pledges the proceeds of the City’s
two percent (2%) sales and service tax and use tax collected in each year; and
WHEREAS, the City Council has determined and does hereby declare that it is necessary and in
the best interest of the City to issue Sales Tax Revenue Bonds, Series 2019 for the purpose of
providing funds to (i) pay costs associated with Public improvements including the renovation of
the Larson Ice Center and the Bob Shelden Baseball Fields, and (ii) pay the Costs of Issuance of
the Bonds described herein.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
BROOKINGS OF BROOKINGS COUNTY, AS FOLLOWS:
ARTICLE I
DEFINITIONS
Section 1.1. Definition of Terms.
In addition to the words and terms elsewhere defined in this Bond Resolution, the following
words and terms as used herein, whether or not the words have initial capitals, shall have the
following meanings, unless the context or use indicates another or different meaning or intent,
and such definitions shall be equally applicable to both the singular and plural forms of any of
the words and terms herein defined:
"Act" means collectively SDCL Chapter 6-8B and Chapter 10-52-2.10, as amended.
"Authorized Officer of the City" means the Mayor and the Finance Officer, or, in the case of any
act to be performed or duty to be discharged, any other member, officer, or employee of the City
then authorized to perform such act or discharge such duty.
"Bond Counsel" means Meierhenry Sargent LLP, a firm of attorneys recognized as having
experience in matters relating to the issuance of state or local governmental obligations.
1
"Bond Payment Date" means the payment dates as provided in the Bond Purchase Agreement.
"Bond Purchase Agreement" means the agreement between the City and the Purchaser for the
purchase of the Bonds.
"Bond Resolution" means the within Resolution, duly adopted by the City Council on the date
hereof, as it may be amended from time to time.
"Bonds" mean not to exceed $7,100,000 of Sales Tax Revenue Bonds, Series 2019, dated the
Closing Date, or such other designation or date as shall be determined by the City Council
pursuant to Section 8.1 hereof, authorized and issued under the Bond Resolution.
"City" means the City of Brookings, Brookings County, South Dakota, a Home Rule with City
Manager form of municipality organized under the State of South Dakota.
"City Council" means the Council Members of the City elected pursuant to the provisions of the
SDCL Title 9.
"City Finance Officer" “Finance Officer” means the Chief Finance Officer or chief financial
officer of the City appointed pursuant to the provisions of South Dakota Codified Laws Title 9
or, in the absence of such appointment or in the event the person so appointed is unable or
incapable of acting in such capacity, the person appointed by the City Council to perform the
duties otherwise performed by the City Finance Officer, or his/her designee.
"Closing Date" means the date the Bonds are exchanged for value.
"Code" means the Internal Revenue Code of 1986, as amended, and the applicable regulations of
the United States Department of Treasury promulgated thereunder as in effect on the date of
issuance of the Bonds.
"Costs of Issuance" means all costs, fees, charges and expenses incurred in connection with the
issuance of the Bonds, including costs for bond insurance and rating agency fees.
"Debt" means (1) indebtedness of the City for borrowed money or for the deferred purchase price
of property or services, and expressly including the obligation to pay principal and interest on or
with respect to revenue bonds, (2) the obligation of the City as lessee under leases which should
be recorded as capital leases under generally accepted accounting principles, and (3) obligations
of the City under direct or indirect guarantees in respect of, and obligations, contingent or
otherwise, to purchase or otherwise acquire, or otherwise to assure a creditor against loss in
respect of, indebtedness or obligations of others of the kinds referred to in subdivisions (1) and
(2) above.
"Interest Payment Dates" means the payment dates as provided in the Bond Purchase Agreement.
"Mayor" means the Mayor elected pursuant to the provisions of SDCL Chapter 9 or his or her
designee acting on his or her behalf.
2
"Paying Agent and Registrar" means the Finance Officer of the City of Brookings, its successor
or successors hereafter appointed in the manner provided in Article VI hereof.
"Person" means an individual, partnership, corporation, trust, or unincorporated organization, or
a governmental entity or agency or political subdivision thereof.
"Placement Agent" means Dougherty & Company LLC acting for and on behalf of itself and
such securities dealers as it may designate.
"Pledged Sales Tax" means the proceeds of the proceeds of the City’s Sales Tax collected in
each year.
"President" means the President of the City Council who may act for the Mayor in the absence of
the Mayor.
“Public Improvements” means improvements to any structure, building, or other improvements
of any kind to real property, including the renovation of the Larson Ice Center and the Bob
Shelden Baseball Fields.
"Purchase Agreement" means the Bond Purchase Agreement authorized pursuant to and
described in Section 8.1 hereof by and between the City and the Purchaser.
"Purchaser" means the purchaser of the Bonds.
“Reserve Requirement” means the lesser of (i) 10% of the original principal amount of the
Bonds, (ii) the maximum annual debt service on the Bonds, or (iii) 125% of the average annual
debt service on, all outstanding Bonds having a parity lien on the Pledged Sales.
"Resolution" means this Bond Resolution.
"Sales Tax" means the City’s two percent (2%) retail occupational sales and service tax imposed
upon the gross receipts of all persons engaged in business within the jurisdiction of the city who
are subject to the South Dakota Retail Occupational Sales and Service Tax, SDCL Chapter 10-45
(SDCL 10-45-1 et seq.) and the two percent (2%) excise tax on the privilege of the use, storage
and consumption within the jurisdiction of the city of tangible personal property purchased, at
the same rate as the municipal sales and service tax as provided in section 78-32 upon all
transactions or use, storage and consumption which are subject to the South Dakota Use Tax Act,
SDCL Chapter 10-46 (SDCL 10-46-1 et seq.).
"Schedule" means the principal and interest payment schedule for the Bonds.
Section 1.2. References to Resolution.
3
The words "hereof", "herein", "hereunder", and other words of similar import refer to this Bond
Resolution as a whole.
Section 1.3. References to Articles, Sections, Etc.
References to Articles, Sections, and other subdivisions of this Bond Resolution are to the
designated Articles, Sections, and other subdivisions of this Bond Resolution as originally
adopted.
Section 1.4. Headings.
The headings of this Bond Resolution are for convenience only and shall not define or limit the
provisions hereof.
ARTICLE II
FINDINGS
Section 2.1
It is hereby found, declared a necessity and determined by the City Council that all limitations
upon the issuance of Bonds have been met and the Bonds are being authorized, issued and sold
in accordance with the provisions of the Act.
ARTICLE III
AUTHORITY, PLEDGE, LEVY AND ACCOUNTS
Section 3.1 Authority.
The City declares it necessary and is authorized by SDCL 10-52-2.10 to issue Bonds to finance
the costs associated with the public improvements and pay Costs of Issuance. The sales tax
revenue bonds shall be issued pursuant to, and in accordance with, the provisions of the Act, the
Bond Resolution, and other applicable provisions of law.
Section 3.2 Pledge of Sales Tax.
The City pledges so much of the collections of the Pledged Sales Tax as may be necessary to pay
the principal, premium, and interest on the Bonds, and to maintain any debt service reserve
established for the Bonds, if any.
Section 3.3. Collection of Taxes.
Pursuant to SDCL 10-52-2.10, the City does hereby pledge, provide and agree that it will
continue to impose and collect the Pledged Sales Tax so long as the Bonds are outstanding. The
governing body shall also pledge so much of the collections of the Pledged Sales Tax as may be
necessary to pay the principal, premium and interest on the bonds and to maintain any Debt
Service Reserve established for the Bonds.
4
Section 3.4. Accounts.
(a) Sales Tax. The Finance Officer will administer, enforce and collect, or cause to be
administered, enforced and collected, the Sales Tax on goods and services subject to taxes and
shall take all reasonable action necessary for this responsibility in accordance with law and
standard principles of accounting. Notwithstanding the following named accounts, the Finance
Officer may establish such accounts as are required by the South Dakota Legislative Audit
Municipal Accounting Manual.
(b) Construction Account.There is hereby created and established a “Construction Account”
There shall be credited to the Construction Account the proceeds from the sale of the Bonds
remaining after (a) the deposit to the Reserve Account required by Section 3.04(d), and (b)
payment of the (i) Purchaser’s discount, (ii) original issue discount and (iii) any other expenses
of issuing the Bonds. All moneys credited to the Construction Account shall be applied solely to
the payment of the costs associated with the Public Improvements.
(c) Principal and Interest Account. There is hereby created and established a “Principal and
Interest Account.” Immediately upon delivery of the Bonds, there shall be credited to the
Principal and Interest Account the amount of accrued interest received from the Purchaser.
Commencing on the date specified in the Bond Purchase Agreement, there shall be withdrawn
from the Sales Tax receipts at least monthly and credited to the Principal and Interest Account an
amount which, together with future credits, will be sufficient to pay the principal of and interest
on the Outstanding Bonds as the same become due.
(d) Reserve Account. There is hereby created and established a “Reserve Account.” There shall
be credited to the Reserve Account from the proceeds of the Bonds, an amount equal to the
Reserve Requirement. Thereafter, in the event that the amount on deposit in the Reserve Account
shall thereafter fall below the Reserve Requirement, additional deposits shall be made from the
Pledged Sales Tax to the Reserve Account until the Reserve Requirement is again reached. Upon
the issuance of any parity lien bonds, the Reserve Requirement established in this section shall
be increased to an amount equal to the combined maximum annual debt service on the
Outstanding Bonds. The balance required shall be funded on the delivery date of the parity lien
bonds. Moneys credited to the Reserve Account may be used only for the payment of principal
of and interest on the Outstanding Bonds and shall be used only in the event that there are
insufficient moneys in the Principal and Interest Account to meet such principal and interest
payments promptly when due. The interest from any investment of the Reserve Account may be
transferred from time to time to the Construction Account, provided that after completion of the
Improvements such interest shall be transferred to the Principal and Interest Account. No transfer
of investment income shall be made from the Reserve Account at any time when the balance
therein is less than the Reserve Requirement. Such investments shall be subject to the limitations
of South Dakota law.
(e) Subordinate Lien Bonds.After making the above required payments, any remaining Pledged
Sales Tax may be used for the payment of the principal of and interest on any additional sales tax
5
revenue bonds having a lien which is subordinate to the lien of the Outstanding Bonds, and for a
reserve fund as additional security for the payment of such subordinate lien bonds.
(f) Other Expenditures.The remaining Pledged Sales Tax may be used for any legally
authorized purpose.
ARTICLE IV
FORM, TERMS, EXECUTION, AND TRANSFER OF BONDS
Section 4.1. Authorized Bonds.
The aggregate principal amount of Bonds that may be issued under the Bond Resolution shall not
exceed Seven Million One Hundred Thousand and No/100 Dollars ($7,100,000).
Section 4.2. Form of Bonds; Execution.
(a) The Bonds are issuable only as fully registered Bonds, without coupons, in any
denomination. All Bonds issued under the Resolution shall be substantially in the form set forth
in Exhibit A attached hereto, and by this reference incorporated herein as fully as though copied.
(b) The Bonds shall be executed in such manner as may be prescribed by applicable law in the
name and on behalf of the City with the manual or facsimile signature of the Mayor, attested by
the manual or facsimile signature of the City Finance Officer, and approved as to form and
countersigned by a Resident Attorney by his manual or facsimile signature.
(c) In the event any officer whose manual or facsimile signature shall appear on any Bonds shall
cease to be such officer before the delivery of such Bonds, such manual or such facsimile
signature shall nevertheless be valid and sufficient for all purposes as if he or she had remained
in office until such delivery. Any Bonds may bear the facsimile signature of, or may be manually
signed by, such individuals who, at the actual time of the execution of such Bonds, were the
proper officers of the City to sign such Bonds, although on the date of the adoption by the City of
this Resolution, such individuals may not have been such officers.
Section 4.3 Maturities, Interest Rates, and Certain Other Provisions of Bonds.
(a) The Bonds shall become due and payable and be subject to the terms and conditions as are
set forth in the Bond Purchase Agreement.
(b) The Bonds shall be designated "Sales Tax Revenue Bonds, Series 2019," or such other
designation as shall be determined by the City Council pursuant to Section 8.1 hereof. The
Bonds shall bear interest from their date or from the most recent interest payment date to which
interest has been paid or duly provided for, until the principal amount of the Bonds is paid, such
interest (computed upon the basis of a 360-day year of twelve 30-day months) being payable on
Interest Payment Dates. Interest on each Bond shall be paid by wire transfer, check or draft of
the Paying Agent, payable in lawful money of the United States of America, to the person in
whose name such Bond is registered at the close of business on the Record Date. The principal
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of the Bond shall be payable in lawful money of the United States of America at the principal
office of the Paying Agent on the Bond Payment Date. Each Bond shall state that it is issued
pursuant to the Act.
(c)The Paying Agent and Registrar shall make all interest payments with respect to the Bonds
on each interest payment date directly to the registered owners as shown on the bond registration
records maintained by the Paying Agent and Registrar as of the close of business on the Record
Date by wire transfer, check or draft mailed to such owners at their addresses shown on said
bond registration records, without, except for final payment, the presentation or surrender of such
registered Bonds, and all such payments shall discharge the obligations of the City in respect of
such Bonds to the extent of the payments so made. Payment of principal and premium, if any, on
the Bonds shall be made upon presentation and surrender of such Bonds to the Paying Agent and
Registrar as the same shall become due and payable.
Section 4.4 Negotiability of Bonds.
All Bonds issued under this Resolution shall be negotiable, subject to the provisions for
registration and transfer contained in this Resolution and in the Bonds.
Section 4.5 Registration, Transfer and Exchange of Bonds.
(a) The Bonds are transferable only by presentation to the Paying Agent and Registrar by the
registered owner, or his legal representative duly authorized in writing, of the registered bond(s)
to be transferred with the form of assignment on the reverse side thereof completed in full and
signed with the name of the registered owner as it appears upon the face of the bond(s)
accompanied by appropriate documentation necessary to prove the legal capacity of any legal
representative of the registered owner. Upon receipt of the bond(s) in such form and with such
documentation, if any, the Paying Agent and Registrar shall issue a new bond or bonds to the
assignee(s) in $1.00 denominations, or integral multiples thereof, as requested by the registered
owner requesting transfer. The Paying Agent and Registrar shall not be required to transfer or
exchange any bond during the period commencing on a Record Date and ending on the
corresponding interest payment date of such bond, nor to transfer or exchange any bond after the
publication of notice calling such bond for redemption has been made, nor to transfer or
exchange any bond during the period following the receipt of instructions from the City to call
such bond for redemption; provided, the Paying Agent and Registrar, at its option, may make
transfers after any of said dates. No charge shall be made to any registered owner for the
privilege of transferring any Bonds, provided that any transfer tax relating to such transaction
shall be paid by the registered owner requesting transfer. The person in whose name any bond
shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes
and neither the City nor the Paying Agent and Registrar shall be affected by any notice to the
contrary whether or not any payments due on the Bonds shall be overdue. Bonds, upon surrender
to the Paying Agent and Registrar, may, at the option of the registered owner, be exchanged for
an equal aggregate principal amount of Bonds of the same maturity in any authorized
denomination or denominations.
Section 4.6 Mutilated, Lost, Stolen, or Destroyed Bonds.
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(a) In the event any bond is mutilated, lost, stolen, or destroyed, the City may execute, and upon
the request of an Authorized Officer of the City the Paying Agent and Registrar shall
authenticate and deliver, a new bond of like maturity, interest rate, and principal amount, and
bearing the same number (but with appropriate designation indicating that such new bond is a
replacement bond) as the mutilated, destroyed, lost, or stolen bond, in exchange for the mutilated
bond or in substitution for the bond so destroyed, lost, or stolen. In every case of exchange or
substitution, the bondholder shall furnish to the City and the Paying Agent and Registrar: (1)
such security or indemnity as may be required by them to save each of them harmless from all
risks, however remote; and, (2) evidence to their satisfaction of the mutilation, destruction, loss,
or theft of the subject bond and the ownership thereof. Upon the issuance of any bond upon such
exchange or substitution, the City and the Paying Agent and Registrar may require the Owner
thereof to pay a sum sufficient to defray any tax or other governmental charge that may be
imposed in relation thereto and any other expenses, including printing costs and counsel fees, of
the City and the Paying Agent and Registrar. In the event any bond which has matured or is
about to mature shall become mutilated or be destroyed, lost, or stolen, the City may, instead of
issuing a bond in exchange or substitution therefor, pay or authorize the payment of the same
(without surrender thereof except in the case of a mutilated bond) if the Owner thereof shall pay
all costs and expenses, including attorneys’ fees, incurred by the City and the Paying Agent and
Registrar in connection herewith, as well as a sum sufficient to defray any tax or other
governmental charge that may be imposed in relation thereto and shall furnish to the City and the
Paying Agent and Registrar such security or indemnity as they may require to save them
harmless and evidence to the satisfaction of the City and the Paying Agent and Registrar the
mutilation, destruction, loss, or theft of such bond and of the ownership thereof.
(b) Every bond issued pursuant to the provisions of this section shall constitute an additional
contractual obligation of the City (whether or not the destroyed, lost, or stolen bond shall be
found at any time to be enforceable) and shall be entitled to all the benefits of this Bond
Resolution equally and proportionately with any and all other Bonds duly issued under this Bond
Resolution.
(c) All Bonds shall be held and owned upon the express condition that the provisions of this
Section are exclusive, with respect to the replacement or payment of mutilated, destroyed, lost,
or stolen Bonds, and, to the maximum extent legally permissible, shall preclude all other rights
or remedies, notwithstanding any law or statute now existing or hereafter enacted to the contrary.
Section 4.7 Authentication.
The Paying Agent and Registrar is hereby authorized to authenticate and deliver the Bonds to the
Purchaser or as it may designate upon receipt by the City of the proceeds of the sale thereof, to
authenticate and deliver Bonds in exchange for Bonds of the same principal amount delivered for
transfer upon receipt of the bond(s) to be transferred in proper form with proper documentation
as hereinabove described. The Bonds shall not be valid for any purpose unless authenticated by
the Paying Agent and Registrar by the manual signature of an officer thereof on the certificate set
forth herein on the bond form.
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ARTICLE V
REDEMPTION OF BONDS PRIOR TO MATURITY
Section 5.1 Redemption.
(a) Redemption. The Bonds shall be redeemable as set forth in the Bond Purchase Agreement.
ARTICLE VI
PAYING AGENT AND REGISTRAR
Section 6.1. Appointment and Acceptance of Duties.
(a) The City hereby authorizes the City Finance Officer as Paying Agent and Registrar with
respect to the Bonds and authorizes and directs the Paying Agent and Registrar to maintain bond
registration records with respect to the Bonds, to authenticate and deliver the Bonds as provided
herein, either at original issuance, upon transfer, or as otherwise directed by the City, to effect
transfers of the Bonds, to give all notices of redemption as required herein, to make all payments
of principal and interest with respect to the Bonds as provided herein, to cancel and destroy
Bonds which have been paid at maturity or upon earlier redemption or submitted for exchange or
transfer, to furnish the City at least annually a certificate of destruction with respect to Bonds
canceled and destroyed, and to furnish the City at least annually an audit confirmation of Bonds
paid, Bonds Outstanding and payments made with respect to interest on the Bonds. The Mayor
and the City Finance Officer, or either of them is hereby authorized to execute and the City
Finance Officer is hereby authorized to attest such written agreement between the City and the
Paying Agent and Registrar as they shall deem necessary or proper with respect to the
obligations, duties and rights of the Paying Agent and Registrar. The payment of all reasonable
fees and expenses of the Paying Agent and Registrar for the discharge of its duties and
obligations hereunder or under any such agreement is hereby authorized and directed.
Section 6.2. Permitted Acts and Functions.
The Paying Agent and Registrar may become the Owner of any Bonds, with the same rights as it
would have if it were not a Paying Agent and Registrar. The Paying Agent and Registrar may act
as an Purchaser or fiscal agent in connection with the sale of the Bonds or of any other securities
offered or issued by the City.
Section 6.3. Resignation or Removal of the Paying Agent and Registrar and Appointment
of Successors.
(a) The Paying Agent and Registrar may at any time resign and be discharged of the duties and
obligations created by the Bond Resolution by giving at least sixty (60) calendar days’ written
notice to the City Finance Officer. The Paying Agent and Registrar may be removed at any time
by the City Finance Officer, provided that such removal does not constitute a breach of any
contractual agreement with any such Paying Agent and Registrar, by filing written notice of such
removal with such Paying Agent and Registrar. Any successor Paying Agent and Registrar shall
be appointed by the City Finance Officer and shall be a trust company or a bank having the
9
powers of a trust company willing to accept the office of Paying Agent and Registrar on
reasonable and customary terms and authorized by law to perform all the duties imposed upon it
by the Bond Resolution.
(b) In the event of the resignation or removal of the Paying Agent and Registrar, such Paying
Agent and Registrar shall pay over, assign and deliver any monies and securities held by it as
Paying Agent and Registrar, and all books and records and other properties held by it as Paying
Agent and Registrar, to its successor, or if there be no successor then appointed, to the City
Finance Officer until such successor be appointed.
Section 6.4. Merger or Consolidation of Paying Agent and Registrar.
Any corporation or association into which the Paying Agent and Registrar may be converted or
merged, or with which it may be consolidated, or to which it may sell or transfer its trust
business and assets as a whole, or substantially as a whole, or any corporation or association
resulting from any such conversion, sale, merger, consolidation, or transfer to which it is a party
shall be and become successor Paying Agent and Registrar hereunder and shall be vested with all
the trusts, powers, discretion, immunities, privileges, and other matters as was its predecessor,
without the execution or filing of any instrument or any further act, deed, or conveyance on the
part of any of the parties hereto, anything herein contained to the contrary notwithstanding. Upon
any such conversion, merger, consolidation, sale or transfer, the City Finance Officer shall have
the right and option, upon notice to such converted, merged, consolidated or acquiring entity, to
remove such entity and appoint a successor thereto pursuant to the procedures and requirements
set forth in Section 6.3 hereof.
ARTICLE VII
ADDITIONAL BONDS
The City may issue additional bonds (the “Parity Bonds”) payable from the Pledged Sales Tax
and having a lien upon such revenues on a parity with the Bonds and the Outstanding Parity
Bonds providing that:
1. the City is current in the payment of principal and interest on the Outstanding Bonds
and is current in the collections required for the Principal and Interest Account and the Reserve
Account.
2. the City is in compliance with all covenants of outstanding sales tax revenue bonds
and
3. the Pledged Sales Tax collected by the City in the last preceding fiscal year are
sufficient to cover 1.25 times the combined average annual principal and interest requirements
on the Outstanding Bonds and the proposed Parity Bonds.
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ARTICLE VIII
SALE OF BONDS AND DEPOSIT OF PROCEEDS
Section 8.1. Sale of Bonds.
The Bonds shall be sold to the Purchaser at a price to be set forth in the Bond Purchase
Agreement. The Mayor and the Finance Officer, or either of them, in consultation with the
Purchaser, is authorized to make such changes in the structuring of the terms and sale of the
Bonds as they shall deem necessary. In this regard, they, or either of them, in consultation with
the Purchaser, are authorized to cause to be sold an aggregate principal amount of the Bonds less
than that authorized herein, to sell any or all of the Bonds as term Bonds with annual mandatory
redemption requirements which will produce substantially the same annual principal reductions
as authorized herein, to change the dated date of the Bonds, and to adjust principal and interest
payment dates and redemption dates of the Bonds. The form of the bond set forth in Exhibit A
attached hereto shall be conformed to reflect any changes, if any, as hereinbefore mentioned. The
Mayor and the City Finance Officer, or either of them, are hereby authorized to execute and the
City Finance Officer is authorized to attest the Bond Purchase Agreement with the Purchaser
providing for the purchase and sale of the Bonds. The Bond Purchase Agreement shall be in
form and content acceptable to the Mayor and City Finance Officer, the execution thereof by
either of them to constitute conclusive evidence thereof, provided the Bond Purchase Agreement
effects the sale of the Bonds in accordance with the provisions of this Resolution, and is not
inconsistent with the terms hereof. The Mayor and the City Finance Officer are authorized to
cause the Bonds to be authenticated and delivered by the Paying Agent and Registrar to the
Purchaser and to execute, publish, and deliver all Bonds and documents, including the Official
Statement, and closing Bonds and documents, as they shall deem necessary in connection with
the sale and delivery of the Bonds.
Section 8.2. Disposition of Bond Proceeds.
The proceeds of the sale of the Bonds shall be disbursed as follows:
(a) An amount, if any, necessary to fund the Reserve Account;
(b) An amount to fund the designated Capital Improvements will be deposited into the
Construction Account; and
(c) Any remaining amount will be used to pay the costs of issuance and sale of the Bonds
including necessary legal, accounting and fiscal expenses, printing, engraving, advertising and
similar expenses, administrative and clerical costs, rating agency fees, Paying Agent and
Registrar fees, and other necessary miscellaneous expenses incurred in connection with the
issuance and sale of the Bonds. Any funds remaining after payment of said expenses shall be
used to pay interest on the Bonds on the first interest payment date following delivery of the
Bonds.
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In the event that the Bonds will be draw down bond, all draws after the initial draw disbursed in
accordance with Section 8.2(a) through 8.2(c), shall be deposited in the Construction Account.
Section 8.3. Tax Matters.
(a) The City covenants and agrees with the registered owners from time to time of the Bonds that
it will not take or permit to be taken by any of its officers, employees or agents any action which
would cause the interest on the Bonds to become includable in gross income for federal income
tax purposes under the Code and applicable Treasury Regulations (the "Regulations"), and
covenants to take any and all actions within its powers to ensure that the basic interest on the
Bonds will not become includable in gross income for federal income tax purposes under the
Code and the Regulations.
(b) The Mayor and the City Finance Officer, being the officers of the City charged with the
responsibility for issuing the Bonds pursuant to this Resolution are hereby authorized and
directed to execute and deliver to the Purchaser thereof a certificate in accordance with the
provisions of Section 148 of the Code, and Section 1.148-2(b) of the Regulations, stating that on
the basis of facts, estimates and circumstances in existence on the date of issue and delivery of
the Bonds, it is reasonably expected that the proceeds of the Bonds will be used in a manner that
would not cause the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the
Code and the Regulations.
(c) The City shall file with the Secretary of the Treasury a statement concerning the Bonds
containing the information required by Section 149(e) of the Code.
ARTICLE IX
MISCELLANEOUS
Section 9.1. Failure to Present Bonds.
(a) Subject to the provisions of Section 4.7 hereof, in the event any Bond shall not be presented
for payment when the principal or redemption price hereof becomes due, either at maturity or at
the date fixed for prior redemption thereof or otherwise, and in the event monies sufficient to pay
such Bond shall be held by the Paying Agent and Registrar for the benefit of the Owner thereof,
all liability of the City to such Owner for the payment of such Bond shall forthwith cease,
determine, and be completely discharged. Whereupon, the Paying Agent and Registrar shall hold
such monies, without liability for interest thereon, for the benefit of the Owner of such Bond who
shall thereafter be restricted exclusively to such monies for any claim under the Resolution or on,
or with respect to, said Bonds.
(b) If any Bond shall not be presented for payment within a period of five years following the
date when such Bond becomes due, whether by maturity or otherwise, the Paying Agent and
Registrar shall, subject to the provisions of any applicable escheat or other similar law, pay to the
City any monies then held by the Paying Agent and Registrar for the payment of such Bond and
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such Bond shall (subject to the defense of any applicable statute of limitation) thereafter
constitute an unsecured obligation of the City.
Section 9.2. Payments Due on Saturdays, Sundays, and Holidays.
In any case where the date of maturity or interest on or principal of any Bonds, or the date fixed
for redemption of any Bonds, shall be a Saturday or Sunday or shall be, at the place designated
for payment, a legal holiday or a day on which banking institutions similar to the Paying Agent
and Registrar are authorized by law to close, then the payment of the interest on, or the principal,
or the redemption price of, such Bond need not be made on such date but must be made on the
next succeeding day not a Saturday, Sunday, or a legal holiday or a day upon which banking
institutions similar to the Paying Agent and Registrar are authorized by law to close, with the
same force and effect as if made on the date of maturity or the date fixed for redemption, and no
interest shall accrue for the period after such date.
Section 9.3. Miscellaneous Acts.
The appropriate officers of the City are hereby authorized, empowered, and directed to do any
and all such acts and things, and to execute, acknowledge, deliver, and, if applicable file or
record, or cause to be filed or recorded, in any appropriate public offices, all such documents,
instruments, and certifications, in addition to those acts, things, documents, instruments, and
certifications hereinbefore authorized and approved, as may, in their discretion, be necessary or
desirable to implement or comply with the intent of the Bond Resolution, or any of the
documents herein authorized and approved, or for the authorization, issuance, and delivery by
the City of the Bonds.
Section 9.4. Amendment.
The City Council is hereby authorized to make such amendments to the Bond Resolution as will
not impair the rights of the Bondholders.
Section 9.5. No Recourse Under Bond Resolution or on Bonds.
All stipulations, promises, agreements, and obligations of the City contained in the Resolution or
any supplemental resolutions shall be deemed to be the stipulations, promises, agreements, and
obligations of the City and not of any officer, director, or employee of the City in his or her
individual capacity, and no recourse shall be had for the payment of the principal of or interest
on the Bonds or for any claim based thereon or on the Resolution against any officer, director, or
employee of the City or against any official or individual executing the Bonds.
Section 9.6. Partial Invalidity.
If any one or more of the provisions of the Bond Resolution, or of any exhibit or attachment
thereto, shall be held invalid, illegal, or unenforceable in any respect, by final decree of any court
of lawful jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other
13
provision hereof, or of any exhibit or attachment thereto, but the Bond Resolution, and the
exhibits and attachments thereto, shall be construed the same as if such invalid, illegal, or
unenforceable provision had never been contained herein, or therein, as the case may be.
Section 9.7. Post Issuance Compliance.
The City does hereby adopt Meierhenry Sargent LLP Post Issuance Compliance Manual
procedures with regard to the Bonds. The City directs the Finance Officer to formalize the
written procedures.
Section 9.9. Conflicting Resolutions Repealed.
All resolutions or parts thereof in conflict herewith are, to the extent of such conflict, hereby
repealed.
Said motion was seconded by Member Pummel and upon vote being taken the following
voted AYE: All
and the following voted NAY: None
ATTEST:Keith Corbett, Mayor
Bonnie Foster, Acting City Clerk
(SEAL)
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EXHIBIT A-(FORM OF BOND)
UNITED STATES OF AMERICA
STATE OF SOUTH DAKOTA
CITY OF BROOKINGS
BROOKINGS COUNTY, SOUTH DAKOTA
SALES TAX REVENUE BONDS, SERIES 2019
REGISTERED
REGISTERED
No. «No»$ .00
Initial Interest Rate Maturity Date Bond Date
%«maturity»
Registered Owner:
Maximum Principal Amount: « AND NO\100 DOLLARS
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THE CERTIFICATE SET FORTH ON THE
FOLLOWING PAGES, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF
SET FORTH AT THIS PLACE.
It is hereby certified and recited that all conditions, acts and things required by law to exist or to be done precedent to
and in the issuance of this Bond did exist, have happened, been done and performed in regular and due form and time as
required by law.
This Bond shall not be valid or become obligatory for any purpose or be entitled to any benefit or security under the
Resolution until it shall have been authenticated by the execution by the Registrar of the certificate of authentication endorsed
hereon.
IN WITNESS WHEREOF, the City has caused this Bond to be signed by the manual or facsimile signature of its
Mayor of the City and to be countersigned by the manual or facsimile signature of its City Finance Officer all as of the Bond Date
specified above.
ATTEST:
Acting City Clerk
COUNTERSIGNED:
Resident Attorney
City of Brookings, South Dakota
By:
Mayor
CERTIFICATE OF AUTHENTICATION
This bond is a bond of the series designated therein and has been issued under the provisions of the within-mentioned
Resolution and the date of its authentication is __________, 2019.
Bond Registrar and Paying Agent
By: _________________________________
City Finance Officer
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KNOW ALL MEN BY THESE PRESENTS: That the City of Brookings, South Dakota (the "City"), in Brookings County,
South Dakota, hereby acknowledges itself to owe and for value received promises to pay the Principal Amount as indicated in
the Principal Schedule attached to this Bond, to the Registered Owner mentioned above in lawful money of the United States of
America, together with interest thereon from the Bond Date mentioned above at the Initial Interest Rate mentioned above
[Adjusted interest rate provisions]. The interest hereon is payable ___________________ in each year to maturity or earlier
redemption by wire transfer, check or draft mailed to the Registered Owner at its address as it appears on the Bond registration
books of the City maintained by the City Finance Officer, Brookings, South Dakota, as Bond registrar and paying agent (the
"Registrar"), on the close of business on the last day (whether or not a business day) of the calendar month next preceding such
interest payment date (the “Record Date”). The principal hereof due at maturity or upon redemption prior to maturity is payable
at the office of Registrar upon presentation and surrender of this Bond at maturity or upon earlier redemption. The principal of,
premium (if any) and interest on this Bond is payable in any coin or currency of the United States of America which, at the time of
payment, is legal tender for the payment of public and private debts.
This Bond is one of an authorized issue of Bonds limited in aggregate principal amount to a maximum of $7,100,000 (the
"Bonds") all of like date and tenor except as to maturity, interest rates and privileges of redemption, the proceeds of this issue
(Series 2019) will be used for the purpose of providing funds by appropriation to pay costs associated with the public
improvements including to the renovation of the Larson ice Center and the Bob Shelden Baseball Fields, and pay the Costs of
Issuance of the Bonds, pursuant to a resolution duly and regularly adopted by the City (the “Bond Resolution”), and are subject
to all the provisions and limitations of the Resolution and Chapters 10-52-2.10 and 6-8B, South Dakota Codified Laws, as
amended. The City has pledged and agreed to collect, so long as the Bonds are outstanding, the City’s Sales Tax as defined in
the Resolution.
The City may issue additional bonds (the “Parity Bonds”) payable from the Pledged Sales Tax and having a lien upon
such revenues on a parity with the Bonds and the Outstanding Parity Bonds providing that: (1) the City is current in the payment
of principal and interest on the Outstanding Bonds and is current in the collections required for the Principal and Interest Account
and the Reserve Account, (2) the City is in compliance with all covenants of outstanding sales tax revenue bonds, and (3) the
Pledged Sales Tax collected by the City in the last preceding fiscal year are sufficient to cover 1.25 times the combined average
annual principal and interest requirements on the Outstanding Bonds and the proposed Parity Bonds.
[Redemption Provisions]
This Bond is transferable by the registered holder hereof in person or by his attorney duly authorized in writing at the
office of the Bond Registrar in, but only in the manner, subject to the limitations and upon payment of the charges provided in the
Bond Resolution, and upon surrender and cancellation of this Bond. Upon such transfer a new Bond or Bonds of authorized
denomination of the same maturity and for the same aggregate principal amount will be issued to the transferee in exchange
therefore.
The City and the Bond Registrar may deem and treat the registered holder hereof as the absolute owner hereof and
neither the City nor the Bond Registrar shall be affected by any notice to the contrary.
BOND OPINION
$7,100,000
City of Brookings
Brookings County, South Dakota
Sales Tax Revenue Bonds, Series 2019
Ladies and Gentlemen:
We have acted as bond counsel in connection with the issuance by the City of Brookings (the "Issuer") of $7,100,000
Sales Tax Revenue Bonds, Series 2019, dated _________ ____, 2019, (the "Bonds"). We have examined such certified
proceedings and other papers as we deem necessary to render this opinion.
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As to questions of fact material to our opinion, we have relied upon the certified proceedings and other certifications of
public officials furnished to us, without undertaking to verify such facts by independent investigation.
Based upon the foregoing, we are of the opinion that, under existing law:
1. The Issuer is duly created and validly existing as a body corporate and politic and public instrumentality of the State
of South Dakota with the corporate power to adopt and perform the Resolution and issue the Bonds.
2. Resolution _________ has been duly adopted by the Issuer on ____________ ___, 2019 and constitutes a valid
and binding obligation of the Issuer enforceable upon the Issuer.
3. The Resolution pledges the City’s two percent non-ad valorem sales, service and use tax authorized by SDCL §10-
52-2.10 and imposed by the provisions of Article II, Chapter 78 of the Revised Ordinances of the City of Brookings (the “Sales
Tax) in an amount sufficient to pay principal, premium and interest when due on the Bonds.
4. The Bonds have been duly authorized, executed and delivered by the Issuer and are valid and binding special
obligations of the Issuer, payable solely from City’s Sales Tax.
5. The interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax
preference for purposes of the federal alternative minimum tax. The opinions set forth in the preceding sentence are subject to
the condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986 as amended, that must be
satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross
income for federal income tax purposes. The Issuer has covenanted to comply with each such requirement. Failure to comply
with certain of such requirements may cause the inclusion of interest on the Bonds in gross income for federal income tax
purposes to be retroactive to the date of issuance of the Bonds. We express no opinion regarding other federal tax
consequences arising with respect to the Bonds.
6. The Bonds are free from taxation within the State of South Dakota, except for estate, inheritance taxes and taxes
imposed upon financial institutions under chapter 10-43. We express no further opinions regarding other South Dakota tax
consequences arising with regard to the Bonds.
It is to be understood that the rights of the holders of the Bonds and the enforceability thereof may be subject to
bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter
enacted to the extent constitutionally applicable and that their enforcement may be subject to the exercise of judicial discretion in
accordance with general principles of equity and subject to regulatory requirements under the laws of the United States and of
the State of South Dakota.
Meierhenry Sargent LLP
(Form of Assignment)
FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto
the within Certificate and all rights thereunder, and hereby irrevocably constitutes and appoints
attorney to transfer the within Certificate on the books kept for registration thereof, with full power of substitution in the premises.
Dated:
NOTICE: The signature to this Assignment must correspond
with the name as it appears upon the face of the within Certificate
in every particular, without alteration or enlargement or any
change whatever.
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 2019-0081,Version:1
Executive Session, pursuant to SDCL 1-25-2, for purposes of consulting with legal counsel or
reviewing communications from legal counsel about proposed or pending litigation or contractual
matters.
SDCL 1-25-2. Executive or closed meetings--Purposes--Authorization--Violation as misdemeanor.
Executive or closed meetings may be held for the sole purposes of:
1.Discussing the qualifications, competence, performance, character or fitness of any public
officer or employee or prospective public officer or employee. The term "employee" does not
include any independent contractor;
2.Discussing the expulsion, suspension, discipline, assignment of or the educational program of
a student or the eligibility of a student to participate in interscholastic activities provided by the
South Dakota High School Activities Association;
3.Consulting with legal counsel or reviewing communications from legal counsel about proposed
or pending litigation or contractual matters;
4.Preparing for contract negotiations or negotiating with employees or employee
representatives;
5.Discussing marketing or pricing strategies by a board or commission of a business owned by
the state or any of its political subdivisions, when public discussion may be harmful to the
competitive position of the business.
However, any official action concerning such matters shall be made at an open official meeting. An
executive or closed meeting shall be held only upon a majority vote of the members of such body
present and voting, and discussion during the closed meeting is restricted to the purpose specified in
the closure motion. Nothing in § 1-25-1 or this section may be construed to prevent an executive or
closed meeting if the federal or state Constitution or the federal or state statutes require or permit it. A
violation of this section is a Class 2 misdemeanor.
Source: SL 1965, ch 269; SL 1980, ch 24, § 10; SL 1987, ch 22, § 1; SL 2014, ch 90, § 2.
City of Brookings Printed on 2/21/2019Page 1 of 1
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