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HomeMy WebLinkAbout2016_06_28 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 Vision Statement: "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, June 28, 2016 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.RES 16-052 Action on Resolution 16-052, a Resolution authorizing the write-off of a receivable account as bad debt. ResolutionAttachments: 4. Items removed from Consent Agenda. Action: Motion to Approve, Request Public Comment, Roll Call 5. Open Forum/Presentations/Reports: Page 1 City of Brookings June 28, 2016City Council Meeting Agenda 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. 5.C.ID 2016-0462 Downtown Brookings, Inc. Quarterly Report 6. Contracts/Change Orders: 6.A.RES 16-054 Action on Resolution 16-054, a Resolution of Intent to Lease Real Property to Private Entity. Resolution Lease Agreement Aerial Photo Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 6.B.RES 16-056 Action on Resolution 16-056, a Resolution awarding the contract for the purchase of one new unmarked police vehicle. Sponsors:Police Department ResolutionAttachments: Action: Motion to Approve, Request Public Comment, Roll Call 7. Ordinance First Readings: No vote is taken on the first reading of an Ordinance. The title of the Ordinance is read and the date for the public hearing is announced. 7.A.ORD 16-013 Introduction and First Reading on Ordinance 16-013, an Ordinance providing for Notification to the Police Chief for Certain Under Twenty-One (21) Events held in Licensed Establishments in the City of Brookings, South Dakota. Public Hearing: July 12, 2016. OrdinanceAttachments: 8. Public Hearings and Second Readings: 8.A.ID 2016-0443 Public Hearing and Action on a Temporary Liquor Application for Downtown Brookings, Inc., to host a series of events for Downtown at Sundown on the 300 Block of 5th Street (between 3rd Ave. and Main Ave.) on July 14, July 21, July 28, August 4, August 11, August 18 and August 25, 2016. Public Hearing NoticeAttachments: Action: Open & Close Public Hearing, Motion to Approve, Roll Call Page 2 City of Brookings June 28, 2016City Council Meeting Agenda 9. Other Business: 9.A.ID 2016-0412 Action on Governance & Ends Policy Amendments. G&E Policy - redlined versionAttachments: Action: Motion to Approve, Request Public Comment, Roll Call 9.B.RES 16-057 Action on Resolution 16-057, a Resolution authorizing the Termination of Prairie Hills, L.L.C. Covenants and Restrictions. Resolution Prairie Hills Deed - Revocation Prairie Hills Lots 1-5, Block 3 - Vacated Prairie Hills Final Plat Drawing Blocks 12-17 Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 9.C.ID 2016-0455 Action on Property Owner Request for Certification of New Tax Increment District. Letter from Mike McClemans Property Tax Projections Map of Project Area TIF Guidelines 9/22/2015 Council Packet Staff Memo Consulting Eng. Preliminary Cost Estimate 9/22/2015 Council Minutes Excerpt Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 10. City Council member introduction of topics for future discussion. Any Council Member may request discussion of any issue at a future meeting only. Items cannot be added for action at this meeting. A motion and second is required stating the issue, requested outcome, and time. A majority vote is required. 11. Adjourn. Brookings City Council: Tim Reed, Mayor, Keith Corbett, Deputy Mayor & Council Member Council Members Patty Bacon, Dan Hansen, Mary Kidwiler, Ope Niemeyer, Nick Wendell Council Staff: Jeffrey W. Weldon, City Manager Steven Britzman, City Attorney Shari Thornes, City Clerk View the City Council Meeting Live on the City Government Access Channel 9. Rebroadcast Schedule: Wednesday 1:00pm/Thursday 7:00pm/Friday 9:00pm/Saturday 1:00pm The complete City Council agenda packet is available on the city website: www.cityofbrookings.org Assisted Listening Systems (ALS) are available upon request. Please contact Shari Thornes, Brookings City Clerk, at (605)692-6281 or sthornes@cityofbrookings.org. If you require additional assistance, alternative formats, and/or accessible locations consistent with the Americans with Disabilities Act, please contact Shari Thornes, City ADA Coordinator, at (605)692-6281 at least three working days prior to the meeting. Page 3 City of Brookings June 28, 2016City Council Meeting Agenda 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 #:RES 16-052,Version:1 Action on Resolution 16-052, a Resolution authorizing the write-off of a receivable account as bad debt. Summary: The outstanding account balance of $322.16 was turned over to our collection agency and has been determined uncollectible due to the business going out of business. Recommendation: Staff recommends approval. Attachments: Resolution City of Brookings Printed on 6/23/2016Page 1 of 1 powered by Legistar™ Resolution 16-052 Resolution authorizing bad debt write-off for the City of Brookings Whereas, The City of Brookings has an uncollectable accounts receivable in the amount of $322.16; and Whereas, this bill has been sent to the Brookings Credit Bureau and has been considered uncollectible; Now, Therefore Be It Resolved that the following account receivable for the City of Brookings be determined as uncollectible and removed from the records. 12/29/2015 Via Italia / MN LLC $322.16 Passed and approved this 28 th day of June, 2016. CITY OF BROOKINGS ____________________________________ Tim Reed, Mayor ATTEST: ______________________________ Shari Thornes, City Clerk City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ID 2016-0462,Version:1 Downtown Brookings, Inc. Quarterly Report Summary: Elliot Johnson, DBI Director, will provide an update to the Mayor and City Council on current and upcoming events. City of Brookings Printed on 6/23/2016Page 1 of 1 powered by Legistar™ City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:RES 16-054,Version:1 Action on Resolution 16-054, a Resolution of Intent to Lease Real Property to Private Entity. Summary: This resolution is to enter into a lease agreement with South Dakota Kart Club, Inc., a South Dakota Corporation, for a period of five (5) years. The purpose of this Lease is to provide a location for kart racing. The Lease provides that as rent for the above-mentioned premises, the infield, bleachers, parking and restroom facilities shall be available for use by the City of Brookings Park and Recreation Department for sponsored activities. The lease is pertaining to the following described property: the West Half of the Southwest Quarter (W1/2 SW1/4) of Section Thirteen (13), Township One Hundred Ten (110) North, Range Fifty (50) West of the 5th P.M., within the City of Brookings, Brookings County, South Dakota, less the North Seven Hundred (N 700’) of the East Seven Hundred Twenty Feet (E 720’) and also less the North Nine Hundred Fifty Feet (N 950’) of the West Six Hundred Feet (W 600’) and also less the South Nine Hundred Feet (S 900’) and less any Highway right-of-ways of the West Half of the Southwest Quarter (W1/2SW1/4) of said Section Thirteen (13). Background: In 1983, the City Council approved a lease agreement with the Dakota Plains Kart Club, Inc., a local go-cart racing non-profit organization, which permitted them to develop and operate a race track facility on city property. The site is located at North Brook Park, which is east of Medary Avenue and north of the Highway 14 Bypass, north of SDSU, and is adjacent to the Chittick Community Gardens on the south and BMU well fields to the north. Named the University Plains Speedway, the race track has operated continuously and successfully to the present. The track is recognized by others in the area as a very good facility and worthy of being maintained. In 2008 the South Dakota Kart Club, Inc. took over an updated 5-year lease agreement with the City from the Dakota Plains Kart Club, Inc. The 2008 lease agreement has continued verbally to the present. The South Dakota Kart Club pays all its own operating expenses and for any improvements they make to the facility. An annual Certificate of Liability Insurance ($1,000,000-$2,000,000) is provided to the City. The current lease contains no provision for rent, and realistically, given the difficulty of meeting operating expenses, would be difficult to expect. The South Dakota Kart Club is organized as a non-profit corporation and recognized as such by the S.D. Secretary of State. It is anticipated there would be 7-11 races each summer on weekend dates. A renewed lease agreement is essential to the continuation of races and the future of the facility. If it ceases to operate, the track becomes a liability to the city, and under the terms of the lease, the City may request the property be returned to its original condition. Fiscal Impact: N/A City of Brookings Printed on 6/23/2016Page 1 of 2 powered by Legistar™ File #:RES 16-054,Version:1 Recommendation: Staff recommends approval. Attachments: Resolution Lease Agreement Aerial Photo of Leased Property City of Brookings Printed on 6/23/2016Page 2 of 2 powered by Legistar™ Resolution 16-054 Resolution of Intent to Lease Real Property to Private Entity 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 South Dakota Kart Club, Inc., a South Dakota Corporation, for a period of Five (5) years and pertaining to the following described property: the West Half of the Southwest Quarter (W½SW¼) of Section Thirteen (13), Township One Hundred Ten (110) North, Range Fifty (50) West of the 5th P.M., within the City of Brookings, Brookings County, South Dakota, less the North Seven Hundred Feet (N 700') of the East Seven Hundred Twenty Feet (E 720') and also less the North Nine Hundred Fifty Feet (N 950') of the West Six Hundred Feet (W 600') and also less the South Nine Hundred Feet (S 900') and less any Highway right of ways of the West Half of the Southwest Quarter (W½SW¼) of said Section Thirteen (13); and The purpose of this Lease is to provide a location for kart racing. The term of the Lease is five years. The Lease provides that as rent for the above-mentioned premises, the infield, bleachers, parking and restroom facilities shall be available for use by the City of Brookings Park and Recreation Department for sponsored activities. Be It Further Noted, that a Public Hearing on this Resolution was held on this 28 th day of June, 2016 at 6:00 o'clock P.M. at the City Council Chambers and that all persons were given an opportunity to be heard on the intent to lease real property. Passed and approved this 28th day of June, 2016. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk LEASE AGREEMENT THIS LEASE AGREEMENT is made and executed this 28th day of June, 2016, by and between the CITY OF BROOKINGS, a South Dakota municipal corporation, its licensees, successors, transfers and assigns, hereinafter called “Lessor”, and the SOUTH DAKOTA KART CLUB, INC., a South Dakota corporation, hereinafter called “Lessee”; WITNESSETH: WHEREAS, Lessor, is possessed of certain land being located and situated on the premises described as follows, to-with: The West Half of the Southwest Quarter (W1/2 SW1/4) of Section Thirteen (13), Township One Hundred Ten (110) North, Range Fifty (50) West of the 5th P.M., Within the City of Brookings, Brookings County, South Dakota, less the North Seven Hundred (N 700’) of the East Seven Hundred Twenty Feet (E 720’) and also less the North Nine Hundred Fifty Feet (N 950’) of the West Six Hundred Feet (W 600’) and also less the South Nine Hundred Feet (S 900’) and less any Highway right of ways of the West Half of the Southwest Quarter (W1/2SW1/4) of said Section Thirteen (13); and WHEREAS, the above-described premises were leased to the DAKOTA PLAINS KART CLUB, INC., by an initial lease agreement dated April 26, 1983, for an initial ten-year term, with renewals as provided therein; and WHEREAS, the purpose of such lease was for the construction, and maintenance of a kart racetrack facility and related improvements thereto, said facilities and improvements to be build, constructed and maintained on the premises aforesaid; and WHEREAS, a kart racetrack facility with related improvements was constructed on said premises, and said premises have been continuously maintained and operated a such racing facility from and after April 26, 1983; and WHEREAS, an agreement which is satisfactory to Dakota Plains Kart Club, Inc. has been reached whereby the SOUTH DAKOTA KART CLUB, INC., has obtained permission to use said facility with leasehold improvements and now desires to assume operation of the racing facility; and WHEREAS, to facilitate such operation, SOUTH DAKOTA KART CLUB, INC., herein referred to as Lessee, is desirous of having the lease to the above-described real estate transferred to its organization; now therefore IT IS MUTUALLY AGREED, COVENANTED AND UNDERSTOOD, by and between the parties hereto that the Lessor, in consideration of the rents and covenants hereinafter mentioned, does hereby demise, lease and let unto the said Lessee, and the Lessee does hereby lease, hire and take from the said Lessor, that portion of the above- described premises upon which the racing facility has been constructed and maintained upon the following terms and conditions. 1. IT IS AGREED, by and between the parties hereto that Lessee shall be entitled to have and to hold the above-leased premises unto itself and its successors as hereinafter provided, for and during the full term of five (5) years from and after the 28th day of June, 2016. Thereafter subsequent renewals shall be under such terms as are mutually agreed upon by the parties. 2. IT IS FURTHER AGREED, that the Lessee shall be privileged to operate said kart racing facility, which operation shall be in compliance with all applicable laws, statutes and ordinances of the City of Brookings. 3.IT IS FURTHER AGREED, that the use of the above-described premises shall be subject to certain utility easements reserved in favor of Lessor, said utility easement being recorded in the office of the Register of Deeds in Book 102 of Miscellaneous, at pages 484-485 therein. 4. IT IS FURTHER AGREED, that as rent for the above-mentioned premises, the infield, bleachers, parking and restroom facilities shall be available for use by the City of Brookings Parks and Recreation Department for sponsored activities. It is understood that these activities will be scheduled at such times as do not conflict with the Lessee’s use of the facilities and such scheduling shall be mutually agreed upon by both parties. 5. IT IS UNDERSTOOD AND ACKNOWLEDGED, that the electrical hook-up was paid for by the prior Lessee and that the actual cost of the utility usage shall be borne by the party using such facility. 6. IT IS FURTHER AGREED, that Lessor shall not be liable for any personal injury or property damage occurring on or to the leased premises or to any persons thereon, and Lessee shall assume all liability for any injury or damages that may arise from any accident that occurs on the leased premises and which arises from Lessee’s use of said premises. Further, Lessee waives all claims against Lessor for injury or damage to persons or property sustained by Lessee or any person on the leased premises arising from Lessee’s use of said premises. Lessee shall be responsible for maintaining all spectator, participant and premises liability insurance in a minimum amount of one million dollars ($1,000,000.00) for each occurrence, and two million dollars ($2,000,000.00) aggregate coverage pertaining to Lessee’s use of the leased premises, and shall furnish proof of the same to Lessor with Lessor named as an additional insured party. Any deviation from the minimums will require prior approval from the Lessor. It is further understood and agreed that Lessee shall be responsible for all clean up of the leased premises when such clean up is required as a result from Lessee’s use of the premises. 7. IT IS FURTHER AGREED, that for any use of the leased premises, other than specifically authorized herein, Lessee shall first obtain the permission of the City of Brookings, which request shall be governed by the regular permission procedures pertaining to city park use and said permission shall not be unreasonably withheld. 8. IT IS FURTHER AGREED, that the Lessor specifically covenants and agrees that the leasehold interest of Lessee shall not be subject to summary forfeiture or cancellation. If any violations of the terms of this lease agreement are noted, Lessee shall be given written notice thereof and shall be permitted thirty (30) days from the date of said notice in which to correct the deficiencies. In the event that Lessee fails to remedy any deficiencies or violations of the lease agreement as hereinbefore provided, Lessor may, at its election, cancel and forfeit this lease. In the event of such default, Lessor shall have the right to purchase from Lessee any fixed assets or improvements constructed by Lessee, which may be useful in other recreational uses of the property, the value of which shall be determined by appraisal. In the event the Lessor does not desire to purchase such assets or improvements, Lessee shall be given a reasonable time to remove its property from the premises or to forfeit the same. Further, Lessor may require that all grading and dirt work be returned to its original condition. 9. IT IS FURTHER AGREED, that upon performing the covenants of this Lease, Lessee shall peaceably and quietly have, hold and enjoy the said demised premises for the term or terms aforesaid and that upon termination of this lease agreement, said Lessee shall be privileged to remove at its own cost and expense any and all improvements built, constructed, erected, maintained and placed on the premises for the purposes herein contained. Provided, however, that in the event that Lessee desires not to renew this lease agreement under its present terms, then and in that event, Lessor shall have the option of purchasing from Lessee any fixed assets or improvements constructed by Lessee which may be useful in other recreational uses of the property, the value of which shall be useful in other recreational uses of the property, the value of which shall be determined by appraisal. 10. IT IS FURTHER AGREED, that Lessee will keep and maintain the leased premises during the aforesaid term in a good state of repair. In the event that Lessor requires that the grading and dirt work be returned to its original condition as hereinbefore provided, the fixed assets or improvements of Lessee shall be held by Lessor as security, and shall not be removed by Lessee until such grading and dirt work is accomplished. 11. IT IS FURTHER AGREED, that Lessee may not assign this lease or sublet the leased premises without first obtaining the permission of the City of Brookings, which permission shall not be unreasonably withheld. 12. IT IS FURTHER AGREED, that annually, at the conclusion of the racing season and no later than December 31st, South Dakota Kart Club representatives shall meet with city staff to review the past year’s activities. A purpose of this meeting would be to identify any changes in the working relationship that could improve the next year’s operation. Items discussed at this meeting may include, for informational purposes only, a review of the club’s annual financial statement as normally compiled for non-profit corporations. IN WITNESS WHEREOF, the parties hereunto set their respective hands and seals the day and year first written above. ATTEST:CITY OF BROOKINGS, Lessor ___________________________________________________________ Shari Thornes, City Clerk Tim Reed, Mayor ATTEST:SOUTH DAKOTA KART CLUB, Lessee ___________________________________________________________ Doug Norgaard, Vice President Mylon Mork, President 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 16-056,Version:1 Action on Resolution 16-056, a Resolution awarding the contract for the purchase of one new unmarked police vehicle. Summary: Attached is the resolution for the proposed purchase of one new unmarked police vehicle. This purchase replaces one 2015 Chevy Tahoe currently being used by the Assistant Chief that will be reassigned to patrol. The 2015 Chevy Tahoe will be replacing the 2011 Chevy Tahoe marked police vehicle which has reached its 100,000 benchmark for replacement. The reassignment comes as a result of the unavailability of fleet Chevy Tahoe police vehicles at this time. The City of Brookings received a bid of $37,789.00 for one 2017 Ford Explorer from Einspahr Auto Plaza of Brookings. The purchase of this vehicle is a part of the 2016 capital budget. This bid is $789 over budget; however, the two marked patrol vehicles also being purchased this fiscal year are $3,189 each under budget. This resolution will approve the purchase of a model year 2017 SUV for use by the Assistant Chief. A resolution and recommendation is made to you and to the council for the purchase of this police vehicle. Recommendation: Staff recommends approval. Attachments: Resolution City of Brookings Printed on 6/23/2016Page 1 of 1 powered by Legistar™ Resolution 16-056 Resolution awarding the contract for the purchase of one new unmarked police vehicle. Whereas, the City of Brookings purchases police vehicles to replace in to the fleet of the Brookings Police Department; and Whereas, the City of Brookings has approved the replacement and purchase of one police vehicle for the fiscal year 2016; and Whereas, the Brookings Police Department has requested the purchase of one unmarked police vehicle for the replacement of one unmarked police vehicle; and Whereas, the Brookings Police Department has received an offering according to specifications set forth from Einspahr Auto Plaza of Brookings, South Dakota for one Ford Explorer. Now, Therefore, Be It Resolved by the governing body of the City of Brookings, South Dakota, shall approve the purchase of one Ford Explorer from Einspahr Auto Plaza of Brookings, South Dakota. Passed and approved this 28th day of June, 2016. City of Brookings __________________________ Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ORD 16-013,Version:1 Introduction and First Reading on Ordinance 16-013, an Ordinance providing for Notification to the Police Chief for Certain Under Twenty-One (21) Events held in Licensed Establishments in the City of Brookings, South Dakota. Public Hearing: July 12, 2016. Summary: Alcohol license holders will notify the Brookings Police Chief of any underage non- alcoholic events that are held on the premises at least one week prior to event. Background: The intent of the ordinance will allow the Brookings Police Department adequate time to arrange for proper policing of said events. The policing of that event would include an on-site visit to insure that all alcoholic beverages have been properly secured and unavailable to underage patrons and that all video lottery machines are secured and prevented from underage use as well. Fiscal Impact: No fiscal impact to the city. Recommendation: Staff recommends approval. Attachments: Ordinance City of Brookings Printed on 6/23/2016Page 1 of 1 powered by Legistar™ Ordinance 16-013 An Ordinance Providing for Notification to the Police Chief for Certain Under Twenty-One (21) Events held in Licensed Establishments in the City of Brookings, South Dakota. Be It Ordained and Enacted by the Council of the City of Brookings, State of South Dakota, as follows: I. Sec. 1. – Notification to Police Chief Required. In order to provide for appropriate law enforcement during non-alcohol events for persons under the age of twenty-one (21) advertised or held in establishments licensed for alcoholic beverage sales, any holder of an operating agreement for the sale of alcoholic beverages or retail malt or on-sale wine license shall notify the Brookings Police Chief at least seven (7) days prior to holding any event which is advertised or intended for persons who are under twenty-one (21) and is to be held on the premises of the holder of an alcoholic beverage operating agreement or on-sale alcoholic beverage license. II. Any or all ordinances in conflict herewith are hereby repealed. First Reading:June 28, 2016 Second Reading: Published: CITY OF BROOKINGS, SD Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ID 2016-0443,Version:1 Public Hearing and Action on a Temporary Liquor Application for Downtown Brookings, Inc., to host a series of events for Downtown at Sundown on the 300 Block of 5th Street (between 3rd Ave. and Main Ave.) on July 14, July 21, July 28, August 4, August 11, August 18 and August 25, 2016. Summary: Downtown Brookings, Inc. has applied for a temporary liquor license to host Downtown at Sundown, a Summer Music Concert Series with food and craft vendors and children’s activities, on the 300 Block of 5th Street (between 3rd Ave. and Main Ave.) on July 14, July 21, July 28, August 4, August 11, August 18 and August 25, 2016. All documents have been filed with the City pertaining to insurance and other licensing requirements. Recommendation: Staff recommends approval. Attachments: Legal Notice City of Brookings Printed on 6/23/2016Page 1 of 1 powered by Legistar™ Public Hearing Sale of Alcoholic Beverages NOTICE IS HEREBY GIVEN that the Brookings City Council, Brookings, South Dakota, will hold a public hearing at 6:00 p.m., Tuesday, June 28, 2016, in the Brookings City & County Government Center, 520 Third Street, to consider an application for a temporary liquor license to operate within the City of Brookings, South Dakota to host a series of events on the 300 Block of 5th Street (between 3rd Ave. and Main Ave.) on July 14, July 21, July 28, August 4, August 11, August 18 and August 25, 2016. At which time and place all persons interested will be given a full, fair and complete hearing thereon. Dated at Brookings, South Dakota, this 17 th day of June, 2016. Shari Thornes, City Clerk Published time(s) at an approximate cost: $. City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ID 2016-0412,Version:1 Action on Governance & Ends Policy Amendments. Summary: The City Council held an annual review of the Governance & Ends Policies at their April 19, 2016 Study Session. In addition to the previously reviewed changes, City Manager Jeff Weldon has since modified Guideline C under Ends Policy 1, Financial Stability. This section is highlighted in yellow in the attached red-lined version of the Governance & Ends Policy. Background: Annual review mandated by G&E Policy 1.7. City of Brookings Policy 1, Governance Process Defining the purpose of the City Council, City Manager, and all City Employees: 1.7 Governance Process, Review and Update of Policies The Council will review all policies (including Governance, Council-Staff Linkage, Ends, and Executive Limitations) during the first quarter of each year, although the Council may also review and update any policy at any time deemed prudent and necessary by the Council. The Council expects immediate adjustment by the City Manager to any policy change instituted by the Council. Recommendation: Staff recommends approval. Attachments: Governance & Ends Policy City of Brookings Printed on 6/23/2016Page 1 of 1 powered by Legistar™ City of Brookings Governance & Ends Policies Adopted: December 11, 2000 Amended: April 15, 2014 (SUGGESTED AMENDMENTS 4/19/2016) Amended: 04/15/2014 1 City of Brookings Governance and Ends Policies This document, established by the Brookings City Council, defines, protects, and prioritizes the workings of City Government. It is the ongoing hope of the Brookings City Council to lead the Citizens of Brookings in an ethical and prudent manner, in the best interests of the citizens, looking to the future rather than the past, as provided in the Mission Statement: 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. Table of Contents: Governance Policies Defining the Purpose of the City Council, City Manager, and all City Employees 1. Governance Process 1.1 Ownership of the Council 1.2 Council Role 1.3 Council Style and Vision 1.4 Council Action 1.5 Council Code of Conduct 1.6 Citizen Advisory Boards 1.7 Review and Update of Policies 2. Council-Staff Linkage 2.1 City Manager Role 2.2 Delegation to the City Manager 2.3 Monitoring Executive Performance Ends Policies Establishing what is to be done, for whom, at what cost, and Executive Limitations to define unacceptable means 1. Financial Stability 2. Municipal Services 3. Business Models 4. Economic Development 5. Employee Training and Development 6. Intergovernmental Cooperation and Relations 7. Strategic Planning Appendix A: City Council Code of Ethics Appendix B: Volunteer Code of Ethics Amended: 04/15/2014 2 City of Brookings Policy 1, Governance Process Defining the purpose of the City Council, City Manager, and all City Employees: 1.1 Governance Process, Ownership of the Council: Key Performance Area Governance Process is considered a key performance area by the Brookings City Council, and appears in the Mission Statement as “municipal management.” The Brookings City Council shall answer to, and take into consideration the best interests of, all residents of the City of Brookings, both vocal and silent citizens, with respect paid to all residents, regardless of their economic status. Since the City is “owned” by the Citizens, the Council’s thinking shall be influenced by this ownership. Secondarily, the City Council shall consider the needs of any person who regularly shops in, uses facilities of, or accesses services from the City of Brookings. 1. The Council represents the Citizens. Therefore, it shall educate itself regarding the values held by the persons it represents and shall act always under the influence of those values. The Council’s education may be facilitated by (a) formal and informal Citizen opinions; (b) formal and informal focus groups to explore specific issues; (c) considering input by citizen volunteers who participate on advisory boards, committees and commissions; (d) monitoring the demand and utilization of services; (e) discussions with representatives from other governmental and educational bodies; and (f) reviewing reports and citizen responses in the media. 2. The Council shall report periodically to the Citizens on its stewardship. At least once per year, the Mayor shall give an accounting of the City’s financial resources and the extent to which these funds have been translated into services, in the State of the City message. 1.2 Governance Process, Council Role The role of the Council, on behalf of the Citizens of Brookings, is to assure that the City of Brookings (a) accomplishes what it should, and (b) avoids unacceptable activities and conditions. 1. The Council will engage in structured contact with citizens of Brookings to represent their diversity. 2. The Council will define in Ends policies what is to be accomplished in terms of benefits, recipients, and their relative priorities. It will define in Executive Limitations policies those activities and conditions it considers unacceptable. The Council will delegate performance on these matters to a City Manager. 3. The Council will carry out its job with discipline, emphasizing strategic rather than short-term issues, policy rather than single events, and group rather than individual decisions. 4. Whenever possible, the Council will avoid the use of committees that separate the wholeness of the Council. When further research on a topic is needed, the Council may appoint one Amended: 04/15/2014 3 member to investigate. However, the Council should avoid subgroups of Council members, since subgroups tend to develop a life separate from the Council as a whole. 5. The annual cycle of the Council will conclude with a review of Ends policies, in April, just prior to City Manager construction of a new annual plan and budget. 6. The Council shall honor all demands and restrictions outlined in the Brookings City Charter. 1.3 Governing Process, Council Style & Vision The Council will govern with an emphasis on (a) outward vision rather than an internal preoccupation, (b) strategic leadership rather than administrative detail, (c) clear distinction of Council and City Manager roles, (d) collective rather than individual decisions, (e) future rather than past or present, and (f) proactively rather than reactivity. The Council will: 1. Deliberate in many voices, but govern in one. 2. Cultivate a sense of excellence. The Council will be responsible for excellence in governing. The Council will be an initiator of policy, with the advice and counsel of the City Manager. 3. Cultivate a sense of group responsibility. The Council will use the expertise of individual members to enhance the ability of the Council as a body. However, it is not the intention of the Council to defer the group’s judgment to any one individual. 4. Direct, control and inspire the organization through the careful establishment of broad written policies reflecting the Council's values and perspectives. The Council's major policy focus will be on the intended long-term impacts outside the operating organization, not on the administrative or programmatic means of attaining those effects. 5. Enforce upon itself whatever discipline is needed to govern with excellence. Discipline will apply to matters such as attendance, preparation for meetings, policymaking principles, respect of roles, and ensuring the continuity of governance capability. Continual Council development will include orientation of new members in the Council's governance process and periodic Council discussion of process improvement. The Council will allow no officer, individual or committee of the Council to hinder or be an excuse for not fulfilling its commitments. In compliance with this policy, in May 2002 the City Council adopted a City Council Code of Ethics. It is attached to this document as Appendix A. 6. Monitor and discuss the Council's process and performance at each meeting. Self- monitoring will include comparison of Council activity and discipline to policies in the Ends, Governance Process and Council-Staff Linkage categories. 1.4 Governance Process, Council Action The job of the City Council of Brookings is to achieve the mission in a prudent and ethical way. The job of the Council is to make certain contributions to the total, which are unique to its public trusteeship role and necessary for proper governance and management of the City. Consequently, the "products" of the Council itself shall be: A. Connection between the Council and its "ownership," the Citizens. Amended: 04/15/2014 4 B. Written governing policies that concern: - Governance Process (how the Council carries out its task, and the passing of power and measurement of its use) and - Ends Policies (what benefits, for whom, at what cost), and Executive Limitations (prudent and ethical limitations binding upon the staff); C. The assurance of staff performance (through guidance and evaluation of the City Manager). 1.5 Governance Process, Council Code of Conduct Since Council members have no authority as individuals, members shall refrain from efforts that may lead to situations in which a Councilperson might have occasion to overstep their bounds. Although not every situation can be outlined, some common areas of concern include: 1. Staff being intimidated or manipulated by a Councilperson’s individual comments or actions. Council members must bear in mind that at times, staff may ask for an individual opinion from a Council member, and while the Council member may sincerely respond only as an individual, staff will often place undue emphasis on the opinion, due to the Council member’s status. 2. Staff being polarized by dissention. Although all Council members are obligated to register differences of opinion on Council issues at the Council level as passionately as desired, individual members must not direct their differences of opinion to staff in a manner which creates dissension or polarization in the organization. 3. Since no one has the right to speak on behalf of the entire Council, individual Council members are encouraged to conduct themselves in a professional manner in all communications. 4. Members will not individually render binding judgments of the City Manager or staff performance apart from compliance with Council policies as monitored by the Council as a body. 1.6 Governance Process, Citizen Advisory Boards The Council values the expression of citizen viewpoints on topics of concern to the Council. Therefore, the Council will continue the tradition of seeking input from volunteer citizen advisory boards and committees, although final responsibility for decisions, and the implementation that follows, rests entirely with the Council. The Council reminds staff that the ideal purpose of citizen involvement is to seek objective opinions from a diverse range of citizens. The Council and staff recognize that the ideal purpose of citizen involvement is to seek objective opinions from a diverse range of citizens. Guideline A: The Council will make every effort to offer overall direction and guidelines to citizen volunteers, through the use of Council Ends Policy statements, and by reviewing the mission and need for each citizen advisory board and committee on an annual basis. During the annual review: Amended: 04/15/2014 5 1. The Council will determine if the need for a citizen advisory board or committee justifies continuation of the board or committee. If continuation is justified, proceed to #2. 2. The Council will make an effort to determine the most effective use of citizen volunteers, with a primary decision being the length of service for each board and committee. The Council believes citizen input will be more likely objective and updated if the advisory board or committee is kept in an ad hoc (short-term) format. However, the Council recognizes that some complex issues require citizen involvement for a longer period in order to be effective. 3. Unless otherwise specified by the Council, the City Manager will coordinate the activities and reporting functions of all citizen advisory boards and committees. 4. The City Manager will base his guidance of citizen advisory boards and committees on Ends Policies established by the Council. 5. The Mayor, with advice and consent of the Council, will make all appointments to citizen advisory boards and committees. 6. Upon recommendation of the City Manager, the Council may approve the creation of ad hoc committees to assist the City Manager or his staff. 7. In compliance with this policy, in May 2002 the City Council adopted a Volunteer Code of Ethics. It is attached to this document as Appendix B. 8. The Mayor and Council may, but shall not be obligated, to re-appoint members to expiring terms subject to any term limitation as specified by each respective board. The Mayor and Council shall consider and balance the value of institutional knowledge and experience as well as the need for new and different perspectives and contributions to the board in the appointment/re-appointment process. Guideline B: The Council directs all staff to review relevant Ends Policies with citizens upon their appointment to an advisory board or committee. The Council asks staff to be as objective as possible in educating and presenting options to citizens, since the purpose of advisory boards and committees is not only to hear from citizens, but to increase citizen involvement, loyalty, and creativity toward their City. 1. The Council asks the City Manager to create and regularly update an orientation packet for each new volunteer that includes relevant Ends Policies. 2. The Council asks staff to review this orientation packet with each potential volunteer, prior to their appointment, emphasizing this very policy (Policy 1.6), and asking for a citizen signature on the line that indicates understanding of this policy. 3. Staff will provide regular summaries of citizen committee work to the Council. 1.7 Governance Process, Review and Update of Policies Amended: 04/15/2014 6 The Council will review all policies (including Governance, Council-Staff Linkage, Ends, and Executive Limitations) during the first quarter of each year, although the Council may also review and update any policy at any time deemed prudent and necessary by the Council. The Council expects immediate adjustment by the City Manager to any policy change instituted by the Council. Amended: 04/15/2014 7 City of Brookings Policy 2, Council-Staff Linkage Defining the purpose of the City Council, City Manager, and all City Employees. 2.1 Council-Staff Linkage, City Manager Role As the Council's single official link to the operating City government, the City Manager's performance will be considered to be synonymous with organizational performance as a total. Consequently, the City Manager's job contributions can be stated as performance in these, but not limited to: 1. City government accomplishment of the provisions of Council policies within the Policy Governance Model, especially Ends Policies, but also including Governance Process, and Council-Staff Linkage policies. 2. City government operation within the boundaries of prudence and ethics established in Council policies on Executive Limitations. 2.2 Council-Staff Linkage, Delegation to the City Manager All Council authority delegated to staff is delegated through the City Manager, so that all authority and accountability of staff -- as far as the Council is concerned -- is considered to be the authority and accountability of the City Manager. 1. The Council will direct the City Manager to achieve certain results, for the citizens, at a certain cost, through the establishment of Ends policies. The Council will limit the latitude the City Manager may exercise in practices, methods, conduct, and other "means" through the establishment of Executive Limitations within those policies. 2. As long as the City Manager uses any reasonable interpretation of the Council's Ends and Executive Limitations policies, the City Manager is authorized to establish all further policies, make all decisions, take all actions, establish all practices, and develop all activities. 3. The Council may change its Ends and Executive Limitations policies, thereby shifting the boundary between Council and City Manager domains. By doing so, the Council changes the latitude given to the City Manager. Council members will respect and support the City Manager’s decisions and choices, whenever made pursuant to existing Council Policies. 4. Only decisions of the Council acting as a body are binding upon the City Manager. 5. In the case of Council members, citizen advisory committees, or others, requesting information or assistance without Council authorization, the City Manager may turn to the Council for guidance, especially when such requests will require an inordinate amount of staff time or funds, or are disruptive to the efficient operation of the City. 2.3 Council-Staff Linkage, Monitoring Executive Performance. Monitoring executive performance is synonymous with monitoring organizational performance against Council policies on Ends and on Executive Limitations. Any evaluation of the City Manager’s performance, formal or informal, shall be measured against these expectations. This Amended: 04/15/2014 8 policy places the burden of measuring performance on two primary considerations: well-defined Ends and Executive Limitation policies, and reasonably accurate measurements. Without well- defined policies and reasonably accurate performance metrics, the effectiveness of monitoring performance is compromised. 1. The purpose of monitoring is simply to determine the degree to which Council policies are being fulfilled. Information which does not do this will not be considered monitoring. Monitoring will be as automatic as possible, using a minimum of Council time so that meetings can be used to create the future rather than to review the past. 2. A given policy may be monitored in one or more of three ways: a. Internal report: Disclosure of compliance information to the Council from the City Manager. b. External report: Discovery of compliance information by an objective party who is selected by and reports directly to the Council. Such reports must assess executive performance only against policies of the Council, not those of the external party unless the Council has previously indicated that party's opinion to be the standard. c. Direct Council inspection: Discovery of compliance information by a Council member, or the Council as a whole. This is a Council inspection of documents, activities or circumstances directed by the Council which allows a "prudent person" test of policy compliance. 3. The Council recognizes that, at times, non-compliance with a policy may be necessary and prudent in the short term. However, in order to monitor the performance of the City, and to modify policies that need improvement, the Council must be constantly aware of compliance issues. The Council expects monitoring and reporting compliance or non- compliance to be the City Manager’s highest priority. To promote regular monitoring, the Council asks the City Manager to follow these guidelines: a. All Ends and Executive Limitations statements will be monitored and compliance will be formally announced by the City Manager to the Council on a quarterly basis. a. All ends and Executive Limitations statements will be monitored by the City Manager who is expected to be responsible for achieving and maintaining compliance. b. Any non-compliance will be reported immediately, at the next Council meeting, if not before, and non-compliance will then be monitored on a monthly basis, until compliance is reestablished, or the policy is changed. b. Any non-compliance of material significance shall be reported to the City Council as soon as practical; and such non-compliance shall be monitored and corrective actions taken by the City Manager to re-gain compliance. 4. At a minimum annually, the Council will institute a formal evaluation of the City Manager. This evaluation will consider only monitoring data as defined here, as it has appeared over the intervening year. Amended: 04/15/2014 9 City of Brookings Ends Policy 1, Financial Stability Establishing what is to be done, for whom, at what cost, and Executive Limitations to define unacceptable means Financial Stability: Key Performance Area Financial stability is considered a key performance area by the Brookings City Council, and appears in the Mission Statement as “fiscally responsible municipal management.” One of the duties of the City Manager is the development of a process that keeps the Council aware of upcoming budgetary needs and requests, so that the Council may aid in the creation of ongoing budget priorities. Good stewardship requires the Council to discern what is in the best interests of the citizens, and budget accordingly. Therefore, budgeting for any fiscal period or the remaining part of any fiscal period shall not deviate materially from Council Policies as established in key performance areas, or other City Council policies. The City Manager is therefore prohibited from budgeting or spending that: 1. Lowers the City’s bond rating; 2. Lowers the pledged revenues collected by the City in the last preceding fiscal years as determined by the City to not less than 1.75 times the annual principal and interest requirements on the outstanding bonds with a goal to maintain a 2 times coverage. 3. Violates Federal, State, or Municipal laws; ethical standards; and generally accepted accounting and budgeting principles. In addition, the City Manager may not bypass Council judgment to allow budgeting that: 1. Allows expenditures to exceed revenues, including the contingency as an expenditure; 2. Increases the property tax rate; 3. Includes capital expenditures that have not been previously approved by the Council; in a Capital Improvement Plan or other council action; 4. Causes the City to incur new debt; 5. Increases operating expenses (meaning personnel and capital excluded) in any department beyond inflation using at least a rolling six month average of the Midwest Consumer Price Index; 6. Provides for employee compensation and benefits that exceed market standards; Guideline A: With respect to budget preparations, the City Manager shall stay within the confines of what constitutes a conservative perspective, as it is the Council’s intention to: a. Make conservative revenue projections using the previous five-year average as a benchmark, with an emphasis on the previous year actual and current year actual. Projections using current data should not be made with less than 6 months rolling actual data. b. Provide valuable citizen services; c. Lighten the debt load of the City; d. If a property tax rate is justified only because of state limitations, a special reserve will be created. e. The City has established the policy that financial, service and program performance measures be developed and used as an important component of decision making and Amended: 04/15/2014 10 incorporated into governmental budgeting. The City encourages all departments to utilize performance measures. At a minimum, performance measures should be used to report on the outputs of each program and should be related to the objectives of each department. Performance measures should: a. Be based on program objectives that tie to the City Council’s goals and program mission or purpose; b. Measure program results or accomplishments; c. Provide for comparisons over time; d. Measure efficiency and effectiveness; e. Be reliable, verifiable and understandable; f. Be reported internally and externally; g. Be monitored and used in decision-making processes; and h. Be limited to a number and degree of complexity that can provide an efficient and meaningful way to assess the effectiveness and efficiency of key programs. Guideline B: In addition, as the City Manager assumes his duties, the Council requests that the City Manager keep information flowing to the Council, especially concerning plans relating to consolidation or expansion of any City departments. Therefore, the City Manager may not consolidate or expand any City Department without first informing the Council of the intended action. Guideline C: The City of Brookings establishes and will maintain reservations of Fund Balance, as defined herein, in accordance with Governmental Accounting and Financial Standards Board Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. This Policy shall only apply to the cities governmental funds. The fund balance information is used to identify the available resources to repay long-term debt, reduce property taxes, add new governmental programs, expand existing ones, or enhance the financial position of the City, in accordance with policies established by the City Council. Fund Balance shall consist of five categories: non-spendable, restricted, committed, assigned and unassigned amounts. a. Non-spendable Fund Balance: Amounts that are not in a spendable form (such as inventory) or are required to be maintained intact. b. Restricted Fund Balance: Amounts that can be spent only for the specific purposes stipulated by external resource providers, or enabling legislation. Restrictions may be changed or lifted only with the consent of the resource providers. c. Committed Fund Balance: Amounts that can be used only for the specific purposes determined by a formal action of the City Council. Commitments may be changed or lifted only the City Council taking the same formal action that imposed the constraint originally. d. Assigned Fund Balance: Amounts the City intends to use for a specific purpose. e. Unassigned Fund Balance: The residual classification for the general fund and includes amounts that not contained in the other classifications. Unassigned amounts are the portion of fund balance which is not obligated or specifically designated and is available for any purpose. The City Manager is directed to use first the restricted resources, prior to the use of the unrestricted resources, when an expense is incurred for purposes for which both restricted and unrestricted funds are available. When expenditures are incurred for purposes for which amounts in any of the Amended: 04/15/2014 11 unrestricted fund balance classifications can be used, committed amounts should be reduced first, followed by assigned amounts and the unassigned amounts. City Council hereby directs the City Manager to establishes and maintain the following committed fund balance: a. Fiscal Stabilization Arrangement: A minimum of 10 percent of the General Fund beginning adopted appropriations (expenditure budget) should be incrementally established and maintained for use in meeting unanticipated needs and/or emergencies. I. Use of Stabilization Fund Balance: The amount shall be used only after all efforts have been exhausted to fund unanticipated needs and/or emergencies, such as an urgent event that affects the safety of the Citizens of the City of Brookings, City of Brookings Employees, and Brookings Students. The urgent event could be a blizzard, tornado, fire, flood, terrorist attack, bombing, explosions, train derailments, straight-line winds/severe thunderstorm, hazardous materials incident, water contamination, failure of electrical grid, mass casualty/fatality or health epidemic. Once the City Manager or his/her designee has determined that it is necessary to draw down fund balance, written communication should be provided by the City Manager to the City Council, explaining the nature of the unanticipated need and/or emergency and requires approval by a two-thirds vote of the Council. The Stabilization Fund Balance may not be used for more than two consecutive years. II. Replenishment of Stabilization Fund Balance: If the reserves are drawn down below the minimum required level of 10 percent, then a budgetary plan shall be implemented by the City Manager to return the reserve to a minimum 10 percent level in no more than a 5-year period. The City Manager will report the progress of the replenishment to the Council in the annual budget. III. Funding of Stabilization Fund Balance: Proceeds from the sale of City-owned surplus property and any other funds identified in the budget will be used to increase the reserve. Interest earnings will be applied on the reserve balance each fiscal year until replenished to the minimum required level. Fiscal Stabilization Emergency Reserve Fund: A minimum of $1 million shall be maintained for the use in meeting unanticipated needs and /or emergencies. 1) Funding of Stabilization Emergency Reserve Fund Balance Having established a fund balance in 2012 in excess of $1 million and prior to any draw- downs, increases to this fund balance shall be recommended by the City Manager in an amount of six percent (6%) of the annual General Fund operating expenditure budget to be indexed to each subsequent year’s General Fund operating expenditure budget. 2) Use of Stabilization Emergency Reserve Fund Balance The amount shall be used only after all efforts have been exhausted to fund unanticipated needs and/or emergencies, such as an urgent event that affects the health, safety, or general welfare of the City, its residents, as well as public and private property. The urgent event could be a blizzard, tornado, fire, flood, terrorist attack, bombing, explosions, train derailments, straight-line winds/severe thunderstorm, hazardous materials incident, water contamination, failure of electrical grid, mass casualty/fatality or health epidemic. Once the City Manager or his/her designee has determined that it is necessary to draw down the fund balance, written communication Amended: 04/15/2014 12 shall be provided by the City Manager to the City Council, explaining the nature of the unanticipated need and/or emergency which shall require approval of the Council. 3) Replenishment of Stabilization Emergency Reserve Fund Balance Whenever the reserves are drawn upon, a budgetary plan shall be implemented by the City Manager to return the reserve to the pre-drawn-down balance within five years. The City Manager shall report the progress of the replenishment to the Council in the annual budget. The City Council directs the City Manager to establish annually the Assigned Fund Balance by identifying at the close of each fiscal year, subject approval of the City Council, funds identified in the annual budget and any revisions thereto to provide for differences, if any, between budgeted revenues and expenditures for a specific purpose; however, before expenditure, amounts must be appropriated by the City Council. Council options for further reserves include: a. Transfer to increase the reserve of another fund that is not at the established target; b. To finance un-funded necessities of the previous year’s budget reductions; c. To pay off debt with a portion of the reserve; d. To finance the expansion of City services; e. To offer property tax, or other tax relief. Other governmental funds are not addressed as they exist primarily to ensure and demonstrate compliance with limitations on the use of existing dedicated revenues and that they were expended for their intended purposes. Capital project funds would be spent out at the end of the project. Guideline D: The use of one-time revenues will be guided by this policy. Examples of one-time revenues include: infrequent sales of assets, bond refunding savings, infrequent revenues from development, and grants. These revenues may be available for more than one year (a three-year grant), but are expected to be non-recurring. Examples of expenditures for which the City may wish to use one- time revenues include startup costs, stabilization (to cover expenditures that temporarily exceed revenues), early debt retirement, and capital purchases. The City Manager will not bypass Council judgment in making use of one-time revenue. In utilizing one-time revenue, the City Manager will carefully analyze and minimize the need for ongoing expenditures. Guideline E: Capital expenditures will be planned each year in a Five-Year Capital Improvement Plan. The annual budget will provide a separate accounting of capital expenditures in each department. The City Manager should plan major projects with an estimated expenditure and with sources of funding identified. Guideline F: Upon the City Council’s adoption of an annual budget and Five-Year Capital Plan that is presented in accordance with Guidelines A through E, the City Manager assumes responsibility for ensuring Amended: 04/15/2014 13 compliance with the budget as an established City Council Policy. This includes expenditure control, and program and service delivery within that budget. Minor deviations are tolerable and encouraged to maintain cost control and deliver quality services. Examples of minor deviations are variances of purchases and costs between line items in a budget, changes in programs and services resulting in cost savings or without cost, the use of grants that do not cause future costs, and the purchases of minor equipment. This list is not exhaustive. Major deviations require notification and sometimes prior approval by the City Council. Examples of major deviations include the use of the contingency fund, program eliminations or additions, the use of cash instead of debt when debt was planned, changes in the capital improvement plan, and change orders in capital projects. This list is not exhaustive. To facilitate a budget that can respond to changing needs, the City Council will approve a contingency fund for the City Manager to utilize at his/her discretion. Examples of uses for the City Manager’s contingency fund include: unbudgeted training opportunities for staff; purchases of software, hardware, and small equipment that was unbudgeted; one-time expenditures to fill a major position vacancy; one-time expenditures requested by outside entities; and emergencies in general. The City Manager would be expected to make an effort to avoid utilizing the contingency. The City Manager will report compliance or deviations from this Guideline for Financial Stability on a quarterly basis. Guideline G: Budgets for Enterprise Funds will be prepared by the City Manager with a goal of providing quality services and sustaining a maximum return to the General Fund on a long-term basis. Net Assets serve over time as a useful indicator of a government’s financial position. Within the annual financial statement the City Manager will annually provide a management discussion and analysis of business type funds and the changes in net assets. Guideline H: Appropriation and Subsidy Policy & Guidelines Purpose. The purpose of this policy is to establish guidelines and criteria regarding the allocation and use of municipal subsidies within the City of Brookings. These guidelines shall be used in processing and reviewing applications requesting municipal subsidy assistance. Protecting the financial interest is of the City of Brookings is of the utmost importance, so it is the intent of the City to provide a minimum amount of municipal subsidies, as well as other incentives that the City may deem appropriate, for the shortest term required for the project to proceed. The City reserves the right to approve or reject projects on a case-by-case basis, taking into account established policies, specific project criteria, and demand on city services in relation to the potential benefits to be received from a proposed project. Meeting policy guidelines or other criteria does not guarantee the award of municipal subsidies. Furthermore, the approval or denial of one project is not intended to set precedent for approval or denial of another project. Whenever possible, it is the City’s intent to coordinate the use of municipal services with other local governing bodies and taxing jurisdictions. Amended: 04/15/2014 14 Objective of Municipal Subsidies. 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. To fulfill this commitment, the Brookings City Council will closely examine its goals and the goals of its city departments to identify outcomes that will meet the standards as outlined in the mission statement above. The Council also recognizes that its support of programs and services outside the scope of its city departments may be necessary to fulfill the commitment and achieve the desirable quality of life for its citizens. As a matter of policy, the City of Brookings will consider using municipal funds to assist in the following areas, but are not limited to, opportunities in the areas of:  Affordable Housing  Arts & Culture  Youth Development  Diversity  Economic Development  Education & Literacy  Environment  Government Stewardship  Health  Parks, Recreation & Open Spaces  Partnerships  Preservation/ History  Safety  Transportation/Transit The Brookings City Council may choose to annually allocate a specified funding amount for a specific category, regardless of the number of applicants for that particular programming area. General Guidelines for the Allocation of Municipal Subsidies. The City of Brookings may allocate up to four (4) percent of the annual General Fund expenditures to subsidize community needs and programs. The City’s current and projected financial health and stability will be the key deciding factor in determining its ability to provide funds to outside organizations. In addition, the Council will consider a number of factors as defined in the City’s Funding Application when making this decision. A key factor will be the applicant’s ability to provide a service or outcome that improves the quality of life for the citizens of Brookings. The applicant must also provide a “but for” analysis which demonstrates the need for public assistance. Other factors include the applicant’s ability to become self-sustaining, the duration of the funding commitment, and operating verses capital requests. Municipal subsidy will not be used for projects that would place extraordinary demands on city infrastructure and services. Amended: 04/15/2014 15 Request for donations or subsidies from individuals, religious or political groups based out of the City of Brookings will not be considered. Request for donations or subsidies from qualified organizations outside of the funding timeline will not be considered. General Guidelines for Subsidies. The Brookings City Council evaluates program-funding proposals on an annual basis for funding in the following calendar year. The City’s fiscal year is January 1 to December 31. Proposals must be submitted to the City Clerk in accordance with the budget cycle schedule and proposal format outlined below. Requests may only be made during this period of time. Completed applications must be received on or before June 1st of each given year. Following, a review by the City Manager and Finance Manager, the application shall be referred to the City Council for further consideration during the annual budget meetings. Organizations applying for a donation or subsidy must submit a completed Application for Funding along with a detailed description of the project; a preliminary site plan; the amount requested; the duration of the funding request; the public purpose of the project; verifiable funding sources and uses; and a “but for” analysis which demonstrates the need for public assistance. Additional documents which may be required include the organization’s current expense statement and budget, Board of Directors listing, current Annual Report, and all other items specified in the City of Brookings Application for Funding. Budget Hearing Process. Brookings City Council budget meetings are held in the months of August and September. All budget meetings are open to the public. Applicants may or may not be invited to make a presentation on their funding proposal. Applicants are encouraged to attend all budget meetings to remain informed during the process. Applicants should be prepared to answer questions based on the application. Final action on the budget occurs at the last Council meeting in September. Brookings School District Subsidies. Appropriation of public funds can be set aside for specific purposes which promote the City of Brookings mission and the local quality of life within the City of Brookings. Brookings Municipal Utilities transfers funds each year to the General Fund as a means to keep city property taxes at a low level for the citizens of Brookings. The City of Brookings may annually appropriate up to 15% of the transfer from the Brookings Municipal Utilities to the Brookings School District. Economic Development/Promotions Subsidies. A subsidy from the 3rd B Fund shall meet the requirements of the SD State Statute 10-52-8*. Funds will be appropriated from the 3rd B Fund to entities with the capacity to promote and advertise the city, its facilities, attractions, and activities. In any fiscal year, the City may require the unencumbered funds be returned to the City 3rd B Fund. Subsidy Agreement and Reporting Requirements. The City of Brookings requires all recipients of municipal funds to enter into appropriate agreements that identify the reason for the subsidy, the public purpose served by the subsidy, subsidy payment schedule, final the specific performance measurements to be attained, and final reporting on outcomes. Failure to provide final reporting of funds and all other required reports will make applicant ineligible for future subsidies. Amended: 04/15/2014 16 The City has established the policy that financial, service and program performance measures be developed and used as an important component of decision making and incorporated into governmental budgeting. The City encourages all departments to utilize performance measures. At a minimum, performance measures should be used to report on the outputs of each program and should be related to the objectives of each department. The City encourages all subsidy recipients to utilize performance measures. At a minimum, performance measures should be used to report on the outputs/outcomes of each subsidized program and should be related to the objectives described earlier in this sub-section. The performance measurements should: 1. Be based on program objectives that tie to the City Council’s goals and program mission or purpose; 2. Measure program results or accomplishments; 3. Provide for comparisons over time; 4. Measure efficiency and effectiveness; 5. Be reliable, verifiable and understandable; 6. Be reported internally and externally; 7. Be monitored and used in decision-making processes; and 8. Be limited to a number and degree of complexity that can provide an efficient and meaningful way to assess the effectiveness and efficiency of key programs. All agreements and reports shall be timely prepared and filed with the City Clerk. Failure to comply with any of these requirements may result in the revocation of the requested subsidy as well as fines, repayment requirements, and a determination that the organization is ineligible for future municipal subsidies for a period of years. * Applicable State Statute: 10-52-8. Additional tax on lodgings, alcoholic beverages, prepared food, and admissions -- Purposes -- Conformance with state sales and use tax. Notwithstanding the tax rate limitations of §10-52-2 or 10-52-2.1, any municipality may impose an additional municipal non-ad valorem tax at the rate of one percent upon the gross receipts of all leases or rentals of hotel, motel, campsites, or other lodging accommodations within the municipality for periods of less than twenty-eight consecutive days, or sales of alcoholic beverages as defined in §35-1-1, or establishments where the public is invited to eat, dine, or purchase and carry out prepared food for immediate consumption, or ticket sales or admissions to places of amusement, athletic, and cultural events, or any combination thereof. The tax shall be levied for the purpose of land acquisition, architectural fees, construction costs, payments for civic center, auditorium, or athletic facility buildings, including the maintenance, staffing, and operations of such facilities and the promotion and advertising of the city, its facilities, attractions, and activities. Such taxes shall conform in all respects to the state sales and use tax on such items with the exception of the rate. Amended: 04/15/2014 17 City of Brookings Ends Policy 2, Municipal Services Establishing what is to be done, for whom, at what cost, and Executive Limitations to define unacceptable means Municipal Services: Key Performance Area Municipal Services is considered a key performance area by the Brookings City Council, and appears in the Mission Statement as “providing a high quality of life for citizens.” The City Council deems City Services, along with fiscal management, as the highest priorities of the City Manager and City Employees. There is no more important function of City Government than to serve the Citizens of Brookings in a friendly, effective manner. For this document, the City Council defines Municipal Services as Life Safety (police and fire), and Functional Services (all other departments). Guideline A: In terms of Life Safety, involving the police and fire departments, the City Manager will: 1. In emergency situations, uphold the decisions made by the fire or police chief; 2. Maintain personnel at established baselines; 3. Provide appropriate equipment to maximize safety of personnel; 4. Enforce ordinances and laws; 5. Not allow situations to develop that may raise insurance rates for citizens or for the City; 6. Maintain the budget in such a way that will not lower the quality of services. Guideline B: In terms of Functional Services, which include all departments of the City other than Life Safety, the City Manager will: 1. Repair infrastructure in a timely manner; 2. Increase services while forecasting benefits; 3. Expand department budgets only while documenting baselines; 4. Approve changes that fall within the long-term plan; 5. Continually strive to improve operational efficiencies; 6. Establish, model, and enforce the highest standards of exceptional customer service from city employees; 7. Enforce ordinances and laws; 8. Document ongoing citizen satisfaction and performance reviews for services provided; 9. Provide support and guidance for staff when they are forced to work outside of their expertise; 10. Seek opportunities to share facilities with other entities; 11. Anticipate foreseeable needs; 12. Use foresight in developing services; 13. Deliver services in a timely and quality manner; 14. Consider citizen complaints; 15. Emphasize a user-friendly approach; 16. Apply technology whenever beneficial. Amended: 04/15/2014 18 Guideline C: The City of Brookings has unique enterprise operations including the Solid Waste Fund, the Edgebrook Golf Course, the Research and Technology Center, the Liquor Retail Store, and the Liquor Override. In terms of enterprise operations the City Manager will: 1. Comply with Guideline B; 2. Review the Return on Assets (ROA) on an annual basis. The Return on Assets will be calculated, using the formula: Net income divided by average total assets. The numbers to calculate the return on assets ratio will be taken from the last and latest balance sheets and latest income statements for each enterprise fund. It will be necessary to average the total assets entries from your last and current balance statements when doing the calculation, but excluding the General Fund transfer expense. 3. Net Assets are an indicator of a financial position. The financial position of an enterprise fund can be tracked over time to assess whether a funds financial health is improving or deteriorating. The City Manager will report annually to the City Council a comparison of the net assets for the two most recent audited fiscal years for the above enterprise funds listed in Guideline C. 4. In addition the Liquor Fund’s annual report will be presented annually comparing the net profit as the net asset report includes both the operating agreement income and the retail income. 5. Compare, as a percentage, the General Fund Transfer to the gross revenue of each enterprise operation on an annual basis. General Fund Transfer Comparison, Item #3 Total Year Landfill Collections Liquor Retail Override 2000 13.2% 6.6% 6.1% 4.6% 7.3% 2001 14.0% 6.7% 5.9% 4.4% 7.1% 2002 29.2% 12.4% 6.5% 5.1% 7.8% 6. Review a five-year Capital Improvement Plan (CIP) on an annual basis. The CIP must list the capital outlays and source of funds, including demonstrating that needed capital reserves are maintained so that the enterprises are being operated in a stable financial manner. Each department prepares a Five-year CIP on an annual basis. Amended: 04/15/2014 19 City of Brookings Ends Policy 3, Business Models Establishing what is to be done, for whom, at what cost, and Executive Limitations to define unacceptable means Business Models (Long Range Planning, Customer Satisfaction, Productivity and Process Improvement): Key Performance Areas Operation of the City under a business model, emphasizing long range planning, customer satisfaction, and productivity and process improvement, is considered a key performance area by the Brookings City Council, and appears in the Mission Statement as “innovative thinking and strategic planning.” The City Council chooses to import models and practices not only from government, but just as importantly, from innovative business models. In other words, the Council wants the City, whenever possible and prudent, to operate with similar systems and attitudes adopted by any successful business. Some of the major themes the Council chooses to emphasize are: 1. Benchmarking. The Council wants to constantly compare City performance with other cities and other departments; to be sure Brookings is operating in not only an efficient, but creative and innovative manner. The Council is aware that Brookings is unique—at times, the City’s emphasis and direction will, and should, differ considerably from other cities. However, information about best practices from other communities will always help the Council make better choices. 2. Continuous improvement. The Council expects measurements of performance to challenge the status quo, through the use of continuous improvement processes. Since the needs of our citizen customers are constantly changing, so should our practices. 3. Goal-setting. The Council expects specific goals to challenge each City Department. 4. Accountability. The Council expects the City Manager to hold City Employees to standards that demand excellence. “Good enough” is not an acceptable standard. 5. Customer satisfaction. The Council expects the City to institute a form of measurement to gather and monitor customer satisfaction. Amended: 04/15/2014 20 City of Brookings Ends Policy 4, Economic Development Establishing what is to be done, for whom, at what cost, and Executive Limitations to define unacceptable means Mission Statement : “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.” Economic Development: Key Performance Area Economic Development and expansion is considered a key performance area by the Brookings City Council, and appears in the Mission Statement as “fostering a diverse economic base.” The Council understands and intends to emphasize the importance of a healthy economy in Brookings and the surrounding area. For the entire community a healthy economy is critical to a high quality of life. Because of its great importance, there are many entities involved in economic development in Brookings. As the City is a significant funding source for much of the economic development efforts in Brookings it is the Council’s intention to spend economic development dollars in the wisest most productive manner possible. The City Council’s desired End is to have an economy that is healthy and growing with enough economic activity to support and fund public services. Toward that end, some overall indicators, expressed as ends, have been identified: A. The property tax base is growing. B. Sales taxes are increasing. C. Retail, Commercial, and Industrial buildings are not vacant. D. There are employment opportunities. E. There are competitive wages. Having developed some overall Ends, following are more specific Ends to provide guidance to both the City Council and the City Manager. 1. City Government is prepared for economic development opportunities. a) 5% of the annual revenue of 75% - 2nd Penny Sales & Use Tax should be reserved for future economic development opportunities until a $1 million dollar committed fund balance is achieved. A strategic plan will be developed to replenish the committed fund balance should it fall below the minimum committed fund balance of $1 million dollars. b) One-time sales of land will be added to the committed fund balance for future land purchases for industrial and economic development. c) The City Manager is designated as the primary contact from city government for economic development inquiries. d) City government, through its City Manager, acts as a facilitator for cooperation amongst the various economic development entities. e) There is adequate land available for future Industrial and Commercial development. Amended: 04/15/2014 21 f) BEDC has an Action Plan with Committees in place to foster economic development, create opportunities, and react to opportunities. 2. Economic development entities are working cooperatively and collaboratively. a) A comprehensive economic development strategy exists. b) Economic development entities, the Growth Partnership Board, the BEDC, the DBI, and the Chamber meet with the city manager on a regular basis and report to the City Council on a regular basis. c) There is an excellent relationship between economic development entities and the Governor’s Office of Economic Development. d) The BEDC is the primary host. There will be a planned, cooperative effort for all “hosting.” 3. Economic development efforts are conducted with an emphasis on the community’s assets. a) The growth and expansion of existing Brookings industries and retail is the primary target for increased employment and economic growth. b) SDSU students and SDSU Colleges are viewed as potential partners to targeted businesses and industries. A business or industry closely related to a field of study at SDSU can profit from the use of a quasi-professional/professional work force willing to work part-time and eventually full-time, the knowledge base held within an SDSU college, and other partnerships with SDSU. c) The City will partner with the innovation campus at SDSU. Research Park at South Dakota State University. 4. The land around the Swiftel Center/Ice Arena is developed to enhance and complement the existing land use in the area. 5. Tourism is bringing outside money to the community. a) Quality events and promotions occur frequently. b) There is an events coordinator and an emphasis on filling the summer months with activities. Hotel rooms are full. c) “3rd Penny” tax receipts are increasing. d) Sales tax receipts are directly impacted by events. e) Facilities (Ice Arena, Swiftel Center, Sports Fields, Performing Arts Center, Wellness Center, Dakota Nature Center) are used at capacity. f) Promotion dollars leverage significant visitor spending. g) The community accepts a plan for the broadening of the tax base for promotional uses. 6. Tourism entities are working cooperatively and collaboratively. a) A comprehensive promotion strategy exists. b) City Government acts as a facilitator for cooperation among the various tourism entities. 7. Business Improvement District #1 “Pillow Tax” is bringing outside money to the community. a) Conferences, conventions, meetings occur frequently. b) The CVB aggressively recruits and promotes activities with an emphasis on filling week days with activities and increase week day overnight stays. c) Facilities are maintained, expanded to remain competitive in the market. Amended: 04/15/2014 22 d) BID Tax “Pillow Tax” funds leverage significant visitor spending. e) The Board of Directors appointed by the City Council annually prepares and updates plan reporting improvements for the district area for City Council approval. f) The City Council shall assign 10% of the annual revenue from the “Pillow Tax” until such time a minimum of $100,000 is assigned and maintained for the specific purpose of cash flow. 8. The Research and Technology Center operates to facilitate the start-up and continued health of commercial based business and industry. A specific policy guides the management of the Research and Technology Center. 9. Because the State of South Dakota provides local control of the number of liquor licenses allowed in a City, there are ample liquor licenses available for future development of amenities the traveling and visiting public desires. The City of Brookings has a policy to guide the distribution of licenses (operating agreements). 10. The appropriation for tourism and promotion will not exceed the sum of the “3rd Penny” revenues raised annually. 11. The cost of economic development activities fluctuate based on the need and projects proposed. 12. The City Council has considered predevelopment agreements with large retail developments. The Council will consider development agreements and incentives with business development projects that qualify for the various policy programs available. Amended: 04/15/2014 23 City of Brookings Ends Policy 5, Employee Training and Development Establishing what is to be done, for whom, at what cost, and Executive Limitations to define unacceptable means Employee Training and Development: Key Performance Area Employee Training and Development is considered a key performance area by the Brookings City Council, and appears in the Mission Statement as “proactive, fiscally responsible municipal management.” The Council values City of Brookings employees as emissaries to the world. With this in mind, the work environment for employees shall be one in which employees are appreciated, and encouraged to grow and expand their skills. Compensation and benefit packages will promote excellence, within the safest possible working conditions. The goal of training shall be to provide tools to assist staff to exceed management and customer expectations. Deviations from the below stated guidelines must be reviewed and approved by the Council. Guideline A: Training shall equip employees with the attitudes and behaviors necessary to achieve excellence. Based on this guideline, training shall: 1. Commence immediately upon hiring, and continue throughout the career of the employee, providing specific tools for optimal performance and productivity; 2. Emphasize continuous improvement of employees and processes; 3. Enhance an employee’s opportunity for promotion; 4. Emphasize customer service; 5. Focus on effective technological practices. Guideline B: Compensation Ranges will be objectively determined by the City Manager in accordance with this policy. Research shall compare compensation and benefits with those of other public entities with whom the City may compete for qualified employees, along with private sector organizations that have similar positions in the surrounding area. Infrequently, full market surveys may be required to evaluate and implement necessary modifications to the City’s pay system. Full market surveys that might require the services of a consultant to evaluate the City’s compensation levels will be completed only upon recommendation of City Manager and approval by the Council. The organizations to be included in the market research for non-exempt positions will consist of other public sector entities primarily in South Dakota, as well as private sector organizations in the local region, as appropriate, that have similar positions. For management and professional positions, the market will include many of the organizations previously identified, plus similarly sized cities in surrounding states that the city would compete with for applicants as identified by the City Manager. It is not intended that the market will include significantly larger South Dakota cities, such as Sioux Falls and Rapid City, unless the market conditions clearly suggest the need to do so. Amended: 04/15/2014 24 In order to ensure that there is consistency in the methodology used when determining the compensation ranges and benefits, the City Manager will follow the guidelines below. In addition to infrequent full market surveys, periodic checks of benchmark positions will be completed as directed by the City Manager to monitor and maintain the City’s compensation program. To maintain compensation levels that are comparable to market, the City Manager will identify and select benchmark positions and organizations to survey on a timetable appropriate to upcoming budget year. Efforts will be made to survey the same or like organizations as in the previous survey unless an exception to this policy can be justified. In order to maintain the internal equity of the compensation system, the Job Factor Evaluation System adopted by the City will be used for all job classification reviews. The job evaluation is not intended to provide a specific value for a position; rather it is intended to provide an assessment of the “relative” value of a position to the organization, compared to other positions. The following criteria defined in the Job Factor Evaluation will be used in evaluating the internal equity placement of City positions: 1. Scope of Supervision: Factor measures both the level of supervision required as well as the number of individuals supervised. 2. Job knowledge: Factor measures the extent and nature of knowledge required to perform the duties of the position. 3. External Contacts: Factor measures the nature and frequency of external contacts. 4. Decision Making: Factor measures the level of decision-making and independent thought required. 5. Job Complexity: Factor measures level of analytical ability required in the position and the complexity of typical situations faced. 6. Physical Working Conditions: Factor measures nature of physical working environment and frequency in which employee typically works in that environment. 7. Exposure to Hazards: Factor measures employee’s typical exposure to health and physical dangers and frequency of such exposure. The pay grades and pay ranges will remain consistent and uniform as follows: 1. The bargaining unit will have established pay grades with ranges of 21.7% and a six percent differential between each grade. The pay grades will be determined based on position title, specific duties involved, and job factor evaluation system. 2. The management group will also have established pay ranges of 35%. Pay ranges will be established by position title, specific duties involved, and job factor evaluation system. The non-union/non-management will be placed on a similar pay system with ranges of 21.7%. There is also in place for management exempt employees a pay for performance system which is administered by the City Manager based on budgeted funds to provide recognition to management staff for their additional contributions, achievements and service to the City of Brookings over the past year. 3. For the police bargaining the Council will have pay grades with ranges of 21.7% with exceptions with less than 21.7% ranges to minimize overlap. Amended: 04/15/2014 25 A combination of the data collected on the identified benchmark positions and the job factor evaluation system will be used to place each City position at appropriate pay grades in the City of Brookings Pay Plan Schedules. By using both the market survey data and the job factor evaluation, the City will have a pay system that is within market and reflects the City of Brookings organization. The Council will not assume an obligation to automatically increase pay ranges without justification. Justification will rely on a review of the Midwest CPI and specific salary date received/obtained from sources as determined appropriate by City Manager. The purpose of this process is to develop a pay system that is fair and within market and to provide a process that is consistent and reproducible. In summary, this policy provides further definition to the following Council policy. It is the intent of the Council for compensation to: 1. Be commensurate with individual productivity within the market range; 2. Be systematic, with defined ranges, with consistent span in the pay ranges where feasible using the median of the maximum rate of pay of surveyed positions as a benchmark; 3. Be used as a reward and motivation to achieve excellence; 4. Be attractive to top candidates; 5. Be adequate to retain top performers; 6. Exceed standards only when justified by exceptional performance; 7. Emphasize the use of reward bonuses over pay increases; 8. Be structured, when appropriate, to allow staff attrition to maintain market rates. Amended: 04/15/2014 26 City of Brookings Ends Policy 6, Intergovernmental Cooperation and Relations Establishing what is to be done, for whom, at what cost, and Executive Limitations to define unacceptable means Intergovernmental Cooperation and Relations: Key Performance Area Intergovernmental Cooperation and Relations is considered a key performance area by the Brookings City Council, and appears in the Mission Statement as “providing a high quality of life for citizens…through innovative thinking and strategic planning.” The Council wishes to coordinate efforts with other governmental bodies, to mutual benefit, whenever possible. The Council hopes to continue to work closely with any governmental body seeking to serve the best interests of the Citizens of Brookings in a more integrated manner. Staff must remember their importance in establishing and maintaining rapport with scores of governmental agencies and groups. At times, one staff person is the only representative of Brookings to encounter a given government official and regardless of the size or length of the interaction, the Council hopes staff conducts themselves in a manner that would be the pride of Brookings. Though too numerous to mention every governmental body, examples of governmental bodies that the Council wishes to coordinate efforts with include (not in order of importance): Federal, State, County, University, School District, Cities with home rule, other Cities, and Municipal League. Amended: 04/15/2014 27 City of Brookings Ends Policy 7, Strategic Planning In an effort to live out the City’s Mission Statement, the Council and staff will utilize a systematic process of Strategic Planning to guide its major policy decisions. Strategic Planning is a disciplined effort to produce fundamental decisions and actions that shape and guide organization, its purpose, function, priorities, decisions, and implementation process. Strategic Planning will enable to Council and staff to blend futuristic thinking, objective analysis, and subjective evaluation of goals and priorities to chart future courses of action that will ensure the long-run vitality and effectiveness of the organization. The result of this deliberative process should ideally be a specific set of priorities, developed and adopted over a timeline as determined by the Council, consisting of over-arching policy goals and objectives as outcomes of the decision-making process. The staff will then provide a suitable work plan that will ensure the effective implementation of the policy goals. Amended: 04/15/2014 28 Amendments • May 13, 2002 – The City Council approved the City Council Code of Ethics as Attachment A, and the Volunteer Code of Ethics as Attachment B. • November 27, 2002 – Amended Ends Policy 2, Municipal Services, to add Guideline C for enterprise funds. • May 27, 2003 – Amended Economic Development Policy. • January 11, 2005 – Amended Financial Stability Ends Policy. • May 8, 2007 – Amended Policy 1, Governance Process; Policy 2, Council-Staff Linkage; Ends Policy 1, Financial Stability; Ends Policy 2, Municipal Services; Ends Policy 4, Economic Development; Ends Policy 5, Employee Development and Training. • April 29, 2008 – Amended Ends Policy 1, Financial Stability, adding Guideline H: Appropriation and Subsidy Policy & Guidelines. • November 22, 2011 – Amended Policy 1, Financial Stability Kay Performance Area, Guideline C, Guideline E, and Guideline G; Amended Policy 2, Municipal Services, Guideline B, and Guideline C; Amended Ends Policy 4, Economic Development #1, #2, #7, #8 and #10. • December 4, 2012 – Resolution No. 153-12*: Amended Ends Policy 1, Financial Stability, Guideline C, Section a. Fiscal Stabilization Arrangement. • May 28, 2013 – Amended Appendix A, City Council Code of Ethics • April 15, 2014 – Resolution No. 40-14. Amended Governance Policy 2.2(2), Council-Staff Linkage, Delegation to the City Manager; Amended Governance Policy 2.3, Council-Staff Linkage, Monitoring Executive Performance; Amended Governance Policy 1.6, Governance Process. • *Commencing 2012, all amendments to the Governance & Ends Policy must be done by Resolution. Amended: 04/15/2014 29 City of Brookings Governance and Ends Policies - Appendix A City Council Code of Ethics Approved May 13, 2002 Amended May 28, 2013 The mayor and council are responsible for making policy decisions for the community. The City Council provides vision, direction and leadership to the community and the organization. The City Council further represents the Brookings Community with other governmental entities and officials. In order to maintain and enhance public trust and confidence in our local government, to achieve equity and social justice, to affirm human dignity, and to better the quality of life for residents of Brookings the members of the City Council dedicate themselves to the stewardship of the public trust and therefore embrace the following ideals, seeking to:  Uphold constitutional government and the laws of the City of Brookings by recognizing I am an agent for the democratic process and not the owner of authority;  Conduct public and private life as to be an example for my fellow citizens and take responsibility for my actions, even when it is uncomfortable or unpopular to do so;  Be mindful of my neutrality and impartiality, rendering equal service to all and to extend the same treatment I wish to receive myself;  Abstain from voting when a conflict of interest exists in accordance with the Brookings City Charter, Section 7.01 (a) Conflicts of Interest provision;  Be tolerant, respectful and attentive to divergent ideas, suggestions and opinions;  Maintain and respect the confidentiality of private and confidential information, and treat all persons, claims and transactions in a fair and equitable manner;  Attend and be actively engaged in all regular and special meetings, including briefings, and public functions where my presence is expected and be prepared in the execution of such;  Be a prudent steward of public resources and actively consider the impact of my decisions on the financial and social stability of the City and its citizens;  Make decisions based on the merits of the issue with attention to due process and citizen participation;  Be knowledgeable and develop an understanding of local, state, and national governmental guidance, directives, regulations and ordinances pertaining to my position.  Be prepared to make unpopular decisions based on my interpretation of the public’s best interest;  Make decisions and recommendations based upon research and facts involving staff and stakeholders which considers the goals, impacts and the best interest of the greatest number of those affected. It is the policy of the City of Brookings to uphold, promote, and demand the highest standards of ethics from all its Council members. Brookings Council members shall maintain the utmost standards of personal integrity, truthfulness, honesty, and fairness in carrying out their public duties, avoid any Amended: 04/15/2014 30 improprieties in their roles as public servants including the appearance of impropriety, and never use their city position or powers for improper personal gain. The code of ethical behavior will govern members of the City Council. City Council members are encouraged to monitor their compliance and offer constructive recommendations to fellow Council members if necessary. As a member of the City Council, I accept these ideals and policy, and pledge to do in the interest and purposes for which our government has been established. Date Signature Amended: 04/15/2014 31 City of Brookings Governance and Ends Policies - Appendix B City of Brookings Volunteer Code of Ethics Approved May 13, 2002 Volunteer advisory boards, committees and commissions provide a very important service to the City of Brookings. Members of volunteer boards, committees and commissions are often the first and only contact an individual might have with city government. In order to maintain and enhance public trust and confidence in our local government, to achieve equity and social justice, to affirm human dignity, and to better the quality of life for residents of Brookings the members of volunteer boards and committees dedicate themselves to the stewardship of the public trust and therefore embrace the following ideals, seeking to:  Uphold constitutional government and the laws of the city of Brookings;  Conduct public and private life as to be an example for my fellow citizens;  Abstain from voting when a conflict of interest exists in accordance with the Brookings City Charter, Section 7.01 (a) Conflicts of Interest provision;  Be mindful of my neutrality and impartiality, rendering equal service to all and to extend the same treatment I wish to receive myself;  Be tolerant, respectful and attentive. Avoid comments, body language or distracting activity that conveys a message of disrespect for the presentations from citizens, staff or colleagues;  Maintain and respect the confidentiality of private and confidential information;  Attend all regular and special meetings, including briefings, subcommittee meetings and public functions where my presence is expected;  Be prepared by reading all documents pertaining to an issue in advance of the above mentioned meetings or event;  Be an active and attentive participant;  Be professional in both appearance and manner; and  Read, comprehend and comply with local, state, and national governmental guidance, directives, regulations and ordinances pertaining to my position. It is the policy of the City of Brookings to uphold, promote, and demand the highest standards of ethics from all its appointed officials. Brookings City officials shall maintain the utmost standards of personal integrity, truthfulness, honesty, and fairness in carrying out their public duties, avoid any improprieties in their roles as public servants including the appearance of impropriety, and never use their city position or powers for improper personal gain. The code of ethical behavior will govern members of all City of Brookings boards, committees and commissions. Volunteers are responsible to self-monitor their behavior. Concerns regarding a volunteer’s behavior should be reported to the City Manager. Deviation from this Code of Ethics may result in removal from the Board. As an appointed official, I accept these ideals and policy, and pledge to act in the interest and purposes for which our government has been established. Date Signature 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 16-057,Version:1 Action on Resolution 16-057, a Resolution authorizing the Termination of Prairie Hills, L.L.C. Covenants and Restrictions. Summary: Prairie Hills, LLC is requesting City Council approve a resolution authorizing the termination of covenants and restrictions associated with vacated lots pursuant to SDCL 11-5-6. Background: Prairie Hills, LLC platted five residential lots in the SE 1/4 of Section 2-109-50 in 1997. Covenants and restrictions for the five lots were filed at the time of recording the plat. The developer vacated the five lots; however, the covenants and restrictions are still on file with the Register of Deeds. The developer has replatted the property into residential lots and desires to file new covenants and restrictions for the replatted property. In order to file new covenants and restrictions for the platted property, the existing covenants and restrictions need to be rescinded. South Dakota statutes provide guidance on the process to revoke a declaration of covenants and restrictions when located in a first or second class municipality. A copy of SDCL 11-5-6 is provided below. SDCL 11-5-6. Revocation of declaration or contract--Execution by successor in interest required--Approval by municipal governing body required. Any declaration or contract made pursuant to §§ 11-5-1 and 11-5-2 may be revoked and canceled only by the execution by the persons executing the same of a deed of revocation, which deed of revocation shall be acknowledged and recorded in the office of the register of deeds and a copy thereof filed in the office of the city auditor as provided in case of the original declaration or contract. In case any property owner signing such declaration or contract shall have died or shall have parted with his interest in the real property affected or any part thereof, such deed of revocation shall not be valid until executed by all persons having an interest in such real property as successors in interest to the person or persons executing such declaration or contract, and such deed of revocation shall not go into force or effect until after the same shall have been approved by a resolution duly adopted by the governing body of the first or second class municipality within which such land is situated. Enclosed in the packet is a copy of the Deed of Revocation for reference which will be executed by the developer upon City Council approval of the resolution authorizing the termination of Prairie Hills, LLC covenants and restrictions. Recommendation: Staff recommends approval. Attachments: Resolution City of Brookings Printed on 6/23/2016Page 1 of 2 powered by Legistar™ File #:RES 16-057,Version:1 Prairie Hills Deed of Revocation Prairie Hills Lots 1-5, Block 3 - Vacated Prairie Hills Final Plat Drawing Blocks 12-17 City of Brookings Printed on 6/23/2016Page 2 of 2 powered by Legistar™ Resolution 16-057 Resolution Authorizing the Termination of Prairie Hills, L.L.C. Covenants and Restrictions Be It Resolved by the City Council of the City of Brookings, South Dakota as follows: Whereas, Prairie Hills, L.L.C., of Brookings, South Dakota (hereinafter referred to as "Developer"), filed a Declaration of Covenants and Restrictions on November 12, 1997 which pertain to the following property: Lots One through Five (1-5) inclusive, Block Three (3) of Prairie Hills Addition to the City of Brookings, Brookings County, South Dakota, located in the Southeast Quarter (SE¼) of Section Two (2), Township One Hundred Nine (109) North, Range Fifty (50) West of the 5th P.M., Brookings County, South Dakota; and Whereas, the plat of the above-described property was vacated and a proposed plat which replaces the previous plat necessitates the termination of the above-referenced Covenants and Restrictions so that new Declaration of Covenants and Restrictions related to the new plat of the property may be filed; and Whereas, Prairie Hills, L.L.C. has requested the approval of the City of Brookings to revoke the above-described Declaration of Covenants and Restrictions; and Whereas, SDCL 11-5-6 requires the governing body of a first class municipality to consider and authorize the revocation of a Declaration of Covenants and Restrictions if appropriate, and good cause appearing for the revocation of the above-described Declaration of Covenants and Restrictions, Now, Therefore, It Is Hereby Resolved by the City Council of the City of Brookings, South Dakota, as follows: A. The above-referenced Declaration of Covenants and Restrictions filed on November 12, 1997 may be revoked and terminated; and B. The Mayor, City Clerk, City Manager and City Attorney are authorized to execute the required documents in accordance with this Resolution. Passed and approved on the 28th day of June, 2016. CITY OF BROOKINGS ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk Prepared by: Eric N. Rasmussen Helsper, McCarty & Rasmussen, P.C. 1441 Sixth Street, Suite #200 Brookings, SD 57006 (605) 692-7775 DEED OF REVOCATION KNOW ALL PERSONS BY THESE PRESENTS: WHEREAS, PRAIRIE HILLS, L.L.C., a South Dakota Limited Liability Company, of Brookings, South Dakota (hereinafter referred to as "Developer"), made, declared, and filed a Declaration of Covenants and Restrictions, dated the 12th day of November, 1997; filed the 12th day of November, 1997; and recorded in Book 145 of Miscellaneous records, Pages 360-371, in the Office of the Register of Deeds in and for Brookings County (hereinafter referred to as the "Declaration"); and WHEREAS, the real property made subject to the Declaration is legally described as follows: Lots One through Five (1-5) inclusive, Block Three (3) of Prairie Hills Addition to the City of Brookings, Brookings County, South Dakota, located in the Southeast Quarter (SE¼) of Section Two (2), Township One Hundred Nine (109) North, Range Fifty (50) West of the 5th P.M., Brookings County, South Dakota; and WHEREAS, the plat to the above described property was vacated by an Amended Vacation of Plat, dated October 28, 2014; filed October 28, 2014; and recorded in Book 184 of Miscellaneous records at Page 2204 in the Office of the Register of Deeds in and for Brookings County, South Dakota; WHEREAS, the Developer desires to revoke the Declaration of Covenants and Restrictions as provided for by SDCL 11-5-6; and WHEREAS, none of the real property above described has been transferred to any other person, and there is no other person having an interest in such real property; NOW THEREFORE, the Developer hereby revokes the Declaration and declares that the real property above described shall not be subject in any way to the Declaration and that the same is terminated and no longer of any force and effect. 2 Attached hereto as Exhibit 1 is a true and correct copy of a Resolution duly adopted by the City of Brookings approving this Deed of Revocation. Dated this _____ day of June, 2016. PRAIRIE HILLS, L.L.C., a South Dakota Limited Liability Company BY: JOHN H. MILLS ITS:MANAGER STATE OF SOUTH DAKOTA ) :SS COUNTY OF BROOKINGS ) On this the _____ day of June, 2016, before me, ___________________, the undersigned officer, personally appeared JOHN H. MILLS, who acknowledged himself to be the Manager of PRAIRIE HILLS, L.L.C., and acknowledged that he executed the foregoing instrument for the purposes therein contained, by signing the name of the company by himself in the capacity therein stated. Subscribed and sworn to before me this _____ day of June, 2016. (SEAL)_________________________________ Notary Public - South Dakota My Commission Expires:___________ 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 2016-0455,Version:1 Action on Property Owner Request for Certification of New Tax Increment District. Summary: Mr. Mike McClemans, owner of McClemans Properties, has requested the City Council consider creating a Tax Increment District (TID) to pay for the improvement costs associated with the 15 th Street / 7th Avenue Improvement Project. The use any generated proceeds from Tax Increment would be applied to said improvement costs as opposed to utilizing assessments on affected property owners. The City is also a major landowner in this project area and Tax Increment Revenue could also replace Storm Drainage Funds and Second Penny Funds as a means of paying for the City’s share of the project. The use of increment is dependent upon the ability of private property in the TID to generate sufficient increment to cover the costs of the project. Such costs must be “fronted” as increment materializes over time from property tax payments. The purpose of the improvement project has been established by the Council as follows: ·Connect two currently dead-end streets / utility systems consistent with the Master Street Plan; ·Encourage private development on adjacent property; ·Provide for storm drainage management improvements; ·Convert surplus City property for private use; specifically low-moderate income housing. Background: The current plan for financing the estimated $2.746 million project has been by assessing the benefiting property owners pursuant to state law. Since the City is a major property owner in this area, the City’s share of the assessment would be paid by cash from the Storm Drainage and Public Improvement Funds. The project costs associated with private property would be paid by the benefitting private property owners. They have the option of financing the assessment by using the City finance plan, converting the debt to private financing, or paying cash. The use of special assessments is a common and often-used method of financing pubic improvements whereby the benefitting property owner pays for their share of the cost. It is used for such small projects as sidewalks to large projects such as new street and utility systems. The use of special assessments requires the City to “front” the cost of the project and recover revenue from private property owners for their respective share over time. The financing alternative requested would replace special assessments with the use of Tax Increment Revenue generated from the increase in property values of private property in the TID. While Tax Increment Revenue would no longer require the use of City cash for permanent financing of the project, it also means the benefitting property owners would not be paying any assessments. In order for this financing method to be successful, however, the private development must actually City of Brookings Printed on 6/23/2016Page 1 of 4 powered by Legistar™ File #:ID 2016-0455,Version:1 generate sufficient Tax Increment to reimburse the City for the project cost. If there is a shortfall, the City must cover the cost. Therein lies the risk of using this financing tool. If the projections submitted are accurate, they seem to presume development will occur immediately and the increment will begin. This is not realistic as there is always a lag-time in valuations being placed on new development even if the development is immediate; which is not likely to be the case. In addition, the projection would yield only $1.56 million; far short of the $2.74 million total project cost so the increment will most likely be insufficient and a shortfall would be inevitable. Precedent provides some guidance on this issue. Historically, we have utilized Tax Increment Finance as a financing means of last resort relying by the “but for” test that prescribes “but for” the use of TIF, the project could not feasibly occur. This criterion is part of the TIF Policy. It has also been used for relatively large development projects that had sufficient “public purpose.” Admittedly, this is a rather subjective determination but does provide some guidance for its use and application. The following is a brief summary of our use of Tax Increment: TID #1: SDSU Research Park The district includes the 125-acre Research Park and several private commercial parcels south of the Research Park to Highway 14. The City fronted the costs of park development and is being reimbursed with increment generated by private property growth in the district. The district will be decertified on-time or possibly a little early because of the rapid pace of build-out. TID #2: DOT property (district was de-certified due to no development activity) TID #3: Valley View Addition This district provided for a new residential subdivision on West 20th Street South for homes which had price limit of $160,000. It was a “pay-as-you-go” district with the developers fronting the development costs and being reimbursed as increment comes in. Any shortfall of increment is the responsibility of the developers; the City had no risk. The public purpose was to increase the availability of housing stock in this market range. The district is expected to be de-certified early because of the rapid build-out rate. TID #4: Sieler Addition Identical to TID #3 TID #5: 32nd Avenue Improvement Project This district encompasses three parcels of land west of 32nd Avenue from its previous terminus north to the bypass. The purpose of the project was to complete 32nd Avenue with the street connection and related utilities. The City fronted the costs with the intent of being reimbursed by increment resulting from development of the three Foster parcels as well as assessments from private property owners who also benefitted from the project. Subsequently, the City has sold the two final parcels and increment will soon materialize to reimburse the City for construction costs. Increment was also used to write-down the private assessments by 25 percent. TID #6: Bel Digester This was a city-initiated TIF District for Bel Brands USA to reimburse to the City a portion of the costs associated with constructing the wastewater solution for the company and was part of a City of Brookings Printed on 6/23/2016Page 2 of 4 powered by Legistar™ File #:ID 2016-0455,Version:1 comprehensive incentive package. The City fronted the cost and will be reimbursed over time from Property Tax Increment associated with the cheese plant. TID #7: Main Avenue South/26th Street Improvement Project This district encompasses several existing and future residential subdivisions as well as some future commercial parcels south of 20th Street South between Medary Avenue and Western Avenue. The purpose was to upgrade South Main Avenue and construct 26th Street to provide for residential, commercial, and institutional development. The City fronted the costs and will be reimbursed by increment generated as a result of the development as well as assessments from private property owners/developers who benefit from the project. Recommendation: At this stage, the request does not appear to satisfy the requirements of the policy as to being the financing means of last resort, therefore not meeting the “but for” test. The project would help address the public purpose issue of increasing affordable housing, albeit only ten residences. Still, these would likely develop even without the use of TIF as evidenced by the Council passage last September of a financing plan without the use of TIF. In staff’s opinion, TIF should not be used as a substitute for conventional financing of all infrastructure projects; and should not be used as a replacement for special assessments, which is clearly to motivating factor in this issue. TID #5, which most closely resembles this request, used TIF to pay for the public costs but still utilized special assessments for private benefit. Since the City has a long history of effectively utilizing special assessments for similar projects, and many property owners are paying them, we would not be consistent in our treatment of financing such improvements and would most likely face many requests for the use of TIF whenever considering an improvement project. The creation of TIDs is a cumbersome, extensive, and potentially expensive process and should only be used where the benefit justifies its use. The unnecessary diversion of Property Tax Increment from the City and the County for failing to meet the “but for” test can be politically and financially precarious. The opportunity to utilize increment as opposed to cash from City funds as a means of reimbursement of project costs does have financial appeal but the speculative nature of the build-out schedule, without the necessary assurances from the private property owners, raises serious concerns about the ability of this TID to be financially solvent. Finally, the TIF Policy requires benefitting property owners to waive their right to the discretionary formula for property taxes. It’s unknown if the projections submitted by Mr. McClemans contemplates that fact. The Council does have a range of options: 1)Reject this request and proceed with the financing plan adopted on 9-22-2015. 2)Certify a TIF District with increment dedicated only to City costs and levy special assessments to benefitting private property owners. (They retain their right to the discretionary formula.) City of Brookings Printed on 6/23/2016Page 3 of 4 powered by Legistar™ File #:ID 2016-0455,Version:1 3)Certify a TIF District with increment dedicated first to City costs, and if excess increment is generated, such excess can be dedicated to reimburse the property owners who would have already been paying special assessments. This way, their benefit is tied directly to their own build-out rate. 4)Approve the request. The City would assume the risk of an increment shortfall in the event the build-out rate and/or assessed valuation does not meet levels to cover the construction costs. Fiscal Impact: Unknown at this time. The City’s financial advisor would need to be consulted for an opinion on the financial viability of property tax projections and increment. Attachments: Letter from Mike McClemans Projections of property taxes (submitted by Mr. McClemans)(not independently verified) Map of project area (15th Street and 7th Avenue; area of potential tax increment district) Tax Increment Finance policy City Council packet item from 9-22-2015 meeting describing improvement project Consulting engineer’s preliminary cost estimate of total project Excerpt of minutes from 9-22-2015 meeting approving project finance proposal City of Brookings Printed on 6/23/2016Page 4 of 4 powered by Legistar™ I apologize for not getting this to you earlier. I am supposed to present in front of the city council on Tuesday regarding the 15th Street South and 7th Avenue South Intersection. Here are the main points, I would like to discuss: • The city’s policy or precedence on wetland delineation in for doing a 404 permit jointly with property owners. I discussed doing the project jointly with city, as was done with Camelot Road, which was turned down by Mr. Weldon. • The corp of engineers’ employee first question to me was “Why am I doing 2 permits for the project?” • Discussion with Mr. Weldon purchasing my property at his request • Discuss use of a TIF to pay for the project (particularly since the city will have a cost factor of 75-80% of the project) • Sunny Meadows Inc. has invested in water mains, culverts, and fill in the area since 1999 to control the drainage • Been informed I cannot discuss the project in detail with CDI, even though the project includes dumping all the water onto my property • The city has requested a drainage easement for Lot 17 coming off 7th Avenue South from the south. • This spring at the Planning and Zoning the city requested a drainage easement on my property as I was doing my final. I had no knowledge of this and when I asked what size easement no one had a size in mind. Thanks, Michael McClemans Brookings City Council September 22, 2015 The Brookings City Council held a meeting on Tuesday, September 22, 2015 at 6:00 p.m., at City Hall with the following members present: Mayor Tim Reed, Council Members Keith Corbett, Dan Hansen, Ope Niemeyer, Patty Bacon, Jael Thorpe and Scott Meyer. City Attorney Steve Britzman, City Manager Jeffrey Weldon and City Clerk Shari Thornes were also present. Financing Plan for 15th St. So. & 7th Ave. So. Project.A motion was made by Mayor Reed, seconded by Council Member Corbett, that the Financing Plan for 15th Street South and 7th Avenue South Project be approved along with an alley gutter improving the drainage channel. The motion carried by the following vote: Yes: 7 - Reed, Corbett, Hansen, Niemeyer, Thorpe, Meyer, and Bacon.