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HomeMy WebLinkAbout2013_01_08 CC PKT1 Brookings City Council Tuesday, January 8, 2013 6:00 p.m. Regular Meeting Brookings City & County Government Center Chambers - Room 310 - 520 Third Street 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 p.m. REGULAR MEETING 1. Call to order. 2. Pledge of Allegiance. 3. Record of Council Attendance. 4. Action to approve the following Consent Agenda Items:* A. Action to approve the agenda. B. Action to approve the minutes. C. Action to approve various volunteer appointments. D. Action on Resolution No. 01-13, a Resolution authorizing Change Order No. 1 (CCO#1 Final) for 2012-15SSI, Wiese Addition Wetland Project. Action: Motion to Approve, Request Public Comment, Roll Call 5. Items removed from Consent Agenda. 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. Open Forum/Presentations/Reports 6. Open Forum. 7. SDSU Student Senate Report. January 8, 2013 City of Brookings 2 Contracts & Change Orders 8. Action on Resolution No. 02-13, a Resolution authorizing Change Order No. 2 (CCO#2) for 2012-05SSI, Camelot Square Drainage Improvement Project. Action: Motion to approve, request public comment, roll call First Readings** 9. Ordinance No. 32-12: An Ordinance granting to NorthWestern Corporation, its successors and assigns, the right to occupy any of the streets, alleys, or public places of the City of Brookings, South Dakota, for the purpose of transmitting or distributing natural gas. Public hearing: January 22nd **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. Second Readings & Public Hearings 10. Public hearing and action on Resolution No. 03-13, a Resolution authorizing city manager to sign an On-Off Sale Wine License Operating Agreement for Carpy’s Pub, Roger & Verla Carpenter, Owners, 714 22nd Ave. So., Brookings, South Dakota (legal: E 77' 5" of the W145' and the N 32' 9" of the S 655' and the E 30' of the W 137' of the N6’ of S 679' of Lot 2, Brookings Mall Addition). Action: Open & Close Public Hearing, Motion to Approve, Roll Call Other Business 11. Update on 20th Street South & Main Avenue South Signal Project. Action: Informational 12. 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. 13. Adjourn. Brookings City Council Tim Reed, Mayor, Keith Corbett, Deputy Mayor & Council Member Council Members Tom Bezdichek, Jael Thorpe, John Kubal, Mike McClemans, Ope Niemeyer 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. January 8, 2013 City of Brookings 3 CONSENT AGENDA #4 4. Action to approve the following Consent Agenda Items:* A. Action to approve the agenda. B. Action to approve the minutes. C. Action to approve various volunteer appointments. D. Action on Resolution No. 01-08, a Resolution authorizing Change Order No. 1 (CCO#1 Final) for 2012-15SSI, Wiese Addition Wetland Project. *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. Action: Motion to Approve, Request Public Comment, Roll Call January 8, 2013 City of Brookings 4 CONSENT AGENDA #4 B. Action to approve minutes. The draft December 18th Brookings City Council minutes are enclosed for Council review and approval. January 8, 2013 City of Brookings 5 Brookings City Council December 18, 2012 (unapproved) The Brookings City Council held a meeting on Tuesday, December 18, 2012 at 5:00 p.m., at City Hall with the following members present: Mayor Tim Reed, Council Members John Kubal, Mike McClemans, Ope Niemeyer, Keith Corbett and Jael Thorpe. Tom Bezdichek was absent. City Attorney Steve Britzman, City Manager Jeff Weldon and City Clerk Shari Thornes were also present. EXECUTIVE SESSION. A motion was made by Kubal, seconded by Niemeyer, to enter into Executive Session at 5:00 p.m. for purposes of discussing the qualifications, competence, performance, character or fitness of any public officer or employee or prospective public officer or employee with the City Manager present from 5:30 p.m. to 5:50 p.m. A motion was made by Kubal, seconded by Corbett, to exit Executive Session at 5:50 p.m. Consent Agenda. A correction was made to the volunteer appointments. Dick Peterson is not being reappointed to the Board of Adjustment. A public hearing and action on a temporary liquor license for the VFW and action to approve a temporary transfer from the public improvement fund to airport fund were added to the agenda. A motion was made by Kubal, seconded by Niemeyer, to approve the consent agenda. A. Action to approve the agenda as amended. B. Action to approve the December 4th Council meeting minutes. C. Action to approve the following volunteer appointments: Brookings Committee for people who have Disabilities: appoint Sylvia Lozada (term 1/1/2013-1/1/2016); Brookings Health Systems Board of Trustees: reappoint Justin Sell, appoint Dr. Jeremy Beireis (Medical Staff Appointment (terms 1/1/2013-1/1/2016); Business Improvement District #1 Board: reappoint Tom Richter (term1/1/2013-1/1/2016); Historic Preservation Commission: reappoint Mary McClure Bibby (term 1/1/2013-1/1/2016); Human Rights Committee: reappoint Rebecca Deinert and Penny Hauffe (terms 1/1/2013-1/1/2016); Library Board: reappoint Mac R. Harris (term 1/1/2013-1/1/2016); Planning Commission: reappoint Al Gregg, John Sydow and Al Heuton (terms 12/31/2012-12/31/2017); Sustainability Council: reappoint Ryan Carda, Paul Peterson and Norma Nusz Chandler (terms 1/1/2013-1/1/2016); Swiftel Center Advisory Committee: reappoint Rod Schaefer (term 1/1/2013-1/1/2016); Traffic Safety Committee: reappoint Daryl Englund, Pete Kirchhevel and Skip Webster (terms 12/31/2012-12/31/2015), and appoint Gregg Jorgenson (term 12/31/2012- 12/31/2015). D. Action on Resolution No. 167-12, a Resolution surplusing a pay loader. Resolution No. 167-12 - Declaring Surplus Property – 1988 John Deere 644E Pay Loader Whereas, the City of Brookings is the owner of the following described equipment formerly used by the City of Brookings Landfill Department: One (1) 1988 John Deere 644E Pay loader, Serial Number DW644EB516177. Whereas, in the best financial interest, it is the desire of the City of Brookings to sell same as surplus property; January 8, 2013 City of Brookings 6 Whereas, the City Manager is hereby authorized to sell the said surplus property; Whereas, the City Manager hereby authorized to appoint three qualified appraisers to appraise the value of the property; Now, Therefore, Be It Resolved by the governing body of the City of Brookings, South Dakota, that this property be declared surplus property according to SDCL Chapter 6-13. E. Action to purchase a John Deere 644 Loader off another governmental entity bid (State of Minnesota) from RDO Equipment Company, Burnsville, MN in the amount of $210,978.00. Bid letting was held on October 10, 2012. F. Action on Resolution No. 168-12, a Resolution updating the City of Brookings Personnel Policy Manual Sections 7.9 Shift Differential, and Section 8.7 Sick Leave. Resolution No. 168-12 - Establishing Personnel Policy Changes to Sections 7.9 Shift Differential and 8.7 Sick Leave from the City of Brookings Personnel Policy Manual Whereas, Be It Resolved, that the City of Brookings Personnel Policy Manual changes be established as follows: 7 .9 Shift Differential (Revised - Effective 1/1/2013) All hours worked between 6:00 PM and 6:00 AM Monday through Friday and all hours worked on Saturday and Sunday shall be paid at the applicable rate plus sixty cents ($.60) an hour. 8.7 Sick Leave (Revised - Effective 1/1/2013) Regular full-time employees shall accrue sick leave at a rate of twelve (12) hours per month. Sick leave shall be earned and credited to employees on the last working day of the month. Sick leave requests may not exceed the amount of leave accumulated. 8.7.1 Administrative Guidelines (1) Sick Leave Pay: Sick leave benefits shall be paid at the employee’s regular rate of pay at any time the leave is taken. The minimum charge to sick leave is one-fourth (1/4) hour per leave period. Sick pay shall not be used in the computation of overtime. (2) Using Sick Leave: Sick leave shall be granted to employees: • when they are incapacitated for the performance of their duties due to illness, injury, and injury not incurred in the course of their employment. • for medical, dental, and optical examinations or treatments during work hours, provided the employee gives the City one (1) week notice of such appointment, except in cases of emergency; sick leave requests may include travel time, waiting time and time for the appointment. • when an employee or ward child is sick or when a member of the immediate family is sick and requires the care and/or attendance of the employee during scheduled January 8, 2013 City of Brookings 7 work hours; immediate family is defined as spouse, son or daughter, parent or spouse’s parent, brother or sister, and dependent(s) residing in the employee’s home to include step-relatives in the same categories. After three consecutive sick days, the employee’s department head and/or Human Resources Director, may require a doctor’s statement specifying the requirement of care and/or attendance. The cumulative amount of sick leave that can be utilized by any one employee within the calendar year for their spouse’s parent, brother and/or sister is 160 hours for calendar year 2013, 140 hours for calendar year 2014, and 120 hours for calendar year 2015 and thereafter. • when, through exposure to a contagious disease, the presence of the employee at his/her post of duty would jeopardize the health of others provided, however, that sick leave for these purposes shall require a verification by a medical doctor’s certificate. • for up to five (5) working days of paid sick leave for the adoption of a child and for the father employee of newborn child(ren) to assist with care and/or delivery. If employee is eligible for the provisions of the Family Leave Act, he/she can request additional time off without pay up to a maximum of 12 total weeks. Vacation accrual, however, must be used to cover additional FMLA leave period. An employee absent from work due to illness or disability shall notify his/her Department Head before scheduled to work, or as soon as possible. If an emergency situation exists, indicate the nature of the situation and the expected length of absence. If an employee is absent three (3) consecutive days without proper notification he/she will be considered to have voluntarily resigned his/her position. The City reserves the right to require employees to submit verification from a medical practitioner of their reason for absence upon their return from three (3) consecutive sick days, or where a pattern of frequent absences exist. Upon returning to work, the employee shall notify his/her supervisor of her/her recovery. The City may also require any employee afflicted with an illness or injury that may require work restrictions to present verification from a medical practitioner of their fitness to return and/or continue to work. Any employee found to have abused his/her sick leave privileges may be subject to disciplinary action. (3) Carry-Over of Sick Leave: Employees with a start date prior to January 1, 2013 may accumulate up to a maximum of 260 days (2,080 hours) of sick leave. Employees with a hire date of January 1, 2013 and thereafter, may accumulate up to a maximum of 1500 hours of sick leave. Sick leave benefits not used during the calendar year in which they were earned may be carried over and used during the succeeding calendar years. (4) Leave of Absence: Employees on an unpaid leave of absence in excess of one-half month shall not accrue sick leave benefits. (5) Termination of Employment: After ten years of service and upon termination of employment other than discharge, any unused accumulated sick leave will be paid at ten percent (10%) of the employees current base hourly rate, plus one percent (1%) additional for each year of service beyond ten (10) years, up to 1,500 hours maximum accumulated sick leave. G. Action on Resolution No. 169-12, a Resolution authorizing Change Order No. 1 (CCO#1 Final) for 2012-14SSI Storm Sewer Improvement Project, VJ Ahlers Excavating, Inc. January 8, 2013 City of Brookings 8 Resolution No.169-12 - Resolution Authorizing Change Order No. 1 (CCO#1 Final) for 2012-14SSI Storm Sewer Improvement Project, VJ Ahlers Excavating, Inc. Be It Resolved by the City Council that the following change order be allowed for 2012-14SSI Storm Sewer Improvement Project: Construction Change Order Number 1 (Final): Adjust plan quantities to as-built quantities to final out the project for a total decrease of $793.26 to the contract. H. Action on Resolution No. 171-12, a Resolution authorizing Closeout on 2011-01 Gateway Project (Phase I) Improvements; Clark Drew Construction, Inc.. Resolution No. 171-12 - A Resolution Authorizing Closeout on 2011-01 Gateway Project (Phase I) Improvements; Clark Drew Construction, Inc. Be It Resolved by the City Council that the following be allowed for 2011-01 Gateway Project Improvements (Phase I) with Clark Drew Construction, Inc.: Construction Closeout on Phase I Improvements for the Gateway Project. There are no further adjusted bid quantities for this phase of the project. I. Action to approve an amendment to the Brookings Event Center Agreement City-County Agreement for the County Resource Center use by the Swiftel Center. AMENDMENT TO BROOKINGS EVENT CENTER AGREEMENT THIS AGREEMENT is made and entered into by and between the CITY OF BROOKINGS, hereinafter sometimes referred to as "CITY", a Municipal Corporation, of Brookings, South Dakota; BROOKINGS COUNTY, hereinafter referred to as "COUNTY", a political subdivision of the State of South Dakota; and the BROOKINGS EVENT CENTER, INC., hereinafter sometimes referred to as the "CORPORATION", a South Dakota Non-Profit Corporation, of Brookings, South Dakota, WITNESSETH: WHEREAS, the parties previously entered into an Agreement entitled "BROOKINGS AREA MULTIPLEX, INC. AGREEMENT", dated April 10, 2000; and WHEREAS, the parties previously amended the BROOKINGS AREA MULTIPLEX, INC. AGREEMENT on the 25th day of September, 2001 and on the 13th day of June, 2006. WHEREAS, BROOKINGS AREA MULTIPLEX, INC., has subsequently changed its Corporate name to BROOKINGS EVENT CENTER, INC.; and WHEREAS, the parties now desire to modify the Agreement dated April 10, 2000, and as previously amended, by making certain modifications as hereinafter specified, now therefore, IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: Section 8. of the Brookings Event Center, Inc. Agreement is hereby amended to provide as follows: 8. County Meeting Rooms: County Resource Center Rooms C and D shall be scheduled and utilized as follows: a. Brookings County shall continue to use County Resource Center rooms C and D for 4- H -sanctioned events and for the annual township meeting; Brookings County will January 8, 2013 City of Brookings 9 not schedule any other events in such rooms other than the 4-H events and the annual township meeting. It is further agreed that 4-H events for (1) Achievement Days; (2) Horse Show; and (3) Dog show shall have access to the Swiftel Arena at no cost pursuant to scheduling procedures of the Swiftel Center. b. The Swiftel Center shall maintain the schedule and be entitled to use and schedule all events in County Resource Center Rooms C and D at no cost at any time except when4-H-sanctioned events or the annual township meetings are scheduled. The Swiftel Center shall be entitled to receive all revenues generated from events scheduled in the County Resource Center Rooms C and D except for 4-H-sanctioned events and the annual township meeting. c. Any events (excluding 4-H events) that involved catering must follow the Swiftel Center's Catering Policy and all other Swiftel Center Policies for Rental of facilities. d. As compensation to Brookings County for its use of County Resource Center Rooms C and D the Swiftel Center shall deduct a sum equal to 80% of the amount otherwise due from Brookings County for maintenance and utility costs under the annual maintenance agreement and Brookings County shall only be obligated to pay the remaining 20%. This Amendment shall be effective from and after November 1, 2012, and shall continue unless canceled by any Party upon thirty (30) days written notice. The parties hereby ratify and confirm all other provisions of the original BROOKINGS AREA MULTIPLEX, INC. AGREEMENT, dated as of April 10, 2000, and previous Amendments, not modified by this Amendment, and hereby affirm their intent to have said Agreement remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this Agreement the dates set forth below. J. Action on Resolution No. 173-12, a Resolution authorizing a CDBG Payment Request for the Boys & Girls Club of Brookings. Resolution No. 173-12 - CDBG Payment Request for the Boys & Girls Club of Brookings Whereas, the City of Brookings is the recipient of a Community Development Block Grant, on behalf of the Boys & Girls Club of Brookings for the construction of a Boys & Girls Club Facility in the City of Brookings; Therefore, Be It Resolved, that the funds for CDBG #1212-105 disbursed by the State of South Dakota be disbursed directly to the Boys & Girls Club of Brookings and any such payment requests shall originate from the Executive Director of the Boys & Girls Club of Brookings. This resolution shall be effective upon publication. K. Action on Resolution No. 183-12, a Resolution Authorizing Change Order No. 2 for 2012- 04SSI, Pheasant Nest Detention Pond Project. Resolution No. 183-12 - Resolution Authorizing Change Order No. 2 (CCO#2 Final) for 2012-04SSI, Pheasant Nest Detention Pond Project January 8, 2013 City of Brookings 10 Be It Resolved by the City Council that the following change order be allowed for 2012- 04SSI, Pheasant Nest Detention Pond Project: Construction Change Order Number 2 Final: Adjust contract to as-built quantities and for lawn irrigation repair due to culvert installation for a total increase of $357.30 to the contract. On the motion, all present voted yes; motion carried. Resolution No. 175-12. A motion was made by Corbett, seconded by McClemans, to approve Resolution No. 175-12, a Resolution Awarding Bids on Bel Brands Wastewater Pretreatment Facility Project. All present voted yes; motion carried. Resolution No. 175-12 - Resolution Awarding Bids on Bel Brands Wastewater Pretreatment Facility Project Whereas, the City of Brookings opened bids for the Bel Brands Wastewater Pretreatment Facility Project on Tuesday, December 4, 2012 at 1:30 pm at Brookings City & County Government Center; and Whereas, the City of Brookings has received the following bids for the Bel Brands Wastewater Pretreatment Facility Project – John T. Jones Construction Co., Fargo, ND: Bid Schedule 1 Base Bid - $5,000,000.00, Alternate #1 - $164,645.50, Alternate #2 - $58,903.00, Alternate #3 - $166,241.70, Alternate #4 – No Bid, Alternate #5 - $153,990.00, and Bid Schedule 2 Base Bid - $151,393.00; Rice Lake Construction Group, Deerwood, MN: Bid Schedule 1 Base Bid - $5,168,600.00, Alternate #1 - $126,000.00, Alternate #2 - $72,000.00, Alternate #3 - $160,000.00. Alternate #4 - $165,000.00, Alternate #5 - $30,000.00, and Bid Schedule 2 Base Bid - $200,000.00; Wenck Construction and Remediation, Inc., Maple Plain, MN: Bid Schedule 1 Base Bid - $5,100,000.00, Alternate #1 - $152,000.00, Alternate #2 - $54,000.00, Alternate #3 - $158,000.00, Alternate #4 - $1,000,000.00, Alternate #5 - $1,000,000.00, and Bid Schedule 2 Base Bid - $326,000.00; Miron Construction Co., Inc., Neenah, WI: Bid Schedule 1 Base Bid - $5,271,000.00, Alternate #1 - $146,000.00, Alternate #2 - $61,400.00, Alternate #3 - $99,200.00, Alternate #4 - $536,700.00, Alternate #5 - $19,400.00, and Bid Schedule 2 Base Bid - $233,030.00; PKG Contracting, Inc. Fargo, ND: Bid Schedule 1 Base Bid - $5,521,900.00, Alternate #1 - $142,000.00, Alternate #2 - $67,000.00, Alternate #3 - $197,000.00, Alternate #4 - $350,000.00, Alternate #5 - $200,000.00, and Bid Schedule 2 Base Bid - $205,000.00; Swanberg Construction, Inc., Valley City, ND: Bid Schedule 1 Base Bid - $5,534,000.00, Alternate #1 - $155,000.00, Alternate #2 - $75,000.00, Alternate #3 - $165,000.00, Alternate #4 – No Bid, Alternate #5 - $200,000.00, and Bid Schedule 2 Base Bid - $275,000.00. Now Therefore, Be It Resolved that the low bid of John T. Jones Construction Co. of Fargo, ND for the Bid Schedule 1 Base Bid of $5,000,000.00, Alternate #1 of $164,645.50, Alternate #2 of $58,903.00 and Bid Schedule 2 Base Bid of $151,393.00 for the total of $5,374,941.50 for Bel Brands Wastewater Pretreatment Facility Project be accepted. January 8, 2013 City of Brookings 11 Resolution No. 176-12. A motion was made by Niemeyer, seconded by Kubal, to approve Resolution No. 176-12, a Resolution Awarding a Contract on Recycling Carts. All present voted yes; motion carried. Resolution No. 176-12 - Resolution Awarding Bids for Automated Containers Whereas, the City of Brookings has received the following bid(s) for 65-gallon Universal Automated containers: Sanitation Products, Inc. in the amount of $57.00 per container. Now Therefore, Be It Resolved that the bid from Sanitation Products, Inc. in the amount of $57.00 per cart be accepted. City Manager Compensation Package. A motion was made by Thorpe, seconded by Corbett, to increase the City Manager annual salary by six percent (6%) in the amount of $7594.65 for a total salary of $134,172.15 for 2013. All present voted yes; motion carried. A motion was made by Kubal, seconded by Niemeyer, directing the Mayor to create a differed compensation package for the city manager with the goal of aiding in the retention of Jeff Weldon as the Brookings City Manager for 5 years. An agreement will be brought to an open meeting of the council for approval. All present voted yes; motion carried. Union Contracts. A motion was made by Corbett, seconded by Kubal, to approve the City General Employee Contract. All present voted yes; motion carried. A motion was made by Corbett, seconded by Niemeyer, to approve the City Police Department Employee Contract. All present voted yes; motion carried. Purchase Agreement. A motion was made by McClemans, seconded by Niemeyer, to approve a purchase agreement with Dean Christie for south fire station property. All present voted yes; motion carried. REAL ESTATE SALE AND PURCHASE AGREEMENT THIS REAL ESTATE SALE AND PURCHASE AGREEMENT is made and executed by and between the City of Brookings, South Dakota, (hereinafter referred to as the "City"), and Dean Christie, Trustee of the Christie Family Trust, (hereinafter referred to as "Seller"). WITNESSETH: WHEREAS, the City desires to acquire the real property described below and Seller agrees to convey to the City, pursuant to the terms and conditions of this Real Estate Purchase Agreement, the real estate described below. NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND AGREEMENTS CONTAINED HEREIN, THE PARTIES HERETO MUTUALLY AGREE TO THE FOREGOING AND AS FOLLOWS: January 8, 2013 City of Brookings 12 1. Purchase of Real Property. The Seller hereby agrees to sell to the City and the City hereby agrees to purchase from Seller the following described real property: The East Seven Hundred Seven Feet (E 707') of the South Two Hundred Twenty-nine Feet (S 229') of the Northwest Quarter (NW ¼ ) of Section Two (2), Township One Hundred Nine (109) North, Range Fifty (50) West of the 5th P.M., County of Brookings, State of South Dakota, consisting of 3. 7 acres, more or less, with the exact acreage to be determined by survey of this property. The approximate dimensions are shown on the attached map, marked Exhibit "A". 2. Effective Date. This Real Estate Purchase Agreement 1s effective upon its execution by all parties. 3. Purchase Price. The Buyer shall pay Seller the sum of Twenty-five Thousand and no/100 ($25,000.00) Dollars per acre for purchase of the above-described property, which consists of approximately Three and Seven Tenths (3.7) acres, the exact dimensions of which will be determined by a survey, with the purchase price adjusted for the final dimensions of the property as determined by a survey. A computation of the exact purchase price based on the survey shall be attached to this Purchase Agreement as an Addendum after the survey is completed and shall be approved by Seller and Buyer. The purchase price shall be paid as follows: a) An earnest money down payment of the sum of One Thousand Five Hundred and no/l 00 ($1,500.00) Dollars at the time of execution of this Agreement. b) The balance of the purchase price shall be paid at Closing. 4. Merchantable Title/Real Estate Closing Documents and Miscellaneous. Seller will convey the property free of liens and mortgages, but the property may be subject to easements, rights of way and restrictions of record. Seller will provide clear and marketable title to the City concerning the above described real property, by Warranty Deed, which contains only easements, rights of way and reservations of record. If there are any title restrictions, defects or burdens to which the City objects, other than easements, rights of way and restrictions of record, such objections, shall be stated in writing to Seller, and Seller will be allowed a reasonable time of not less than sixty ( 60) days in which to correct the same, and the Closing date will be delayed for not less than sixty (60) days to provide Seller with time to correct said defect or defects. If the foregoing contingency is not satisfied or corrected by Seller prior to the Closing date, then this Agreement may be terminated at the option of the Buyer and the earnest money down payment of $1,500.00 will be returned to Buyer and this Agreement shall be null and void. In addition, the City and Seller, as the case may be, will also perform the following: A. Title Insurance Policy. Seller will provide a Title Insurance Commitment, the amount of which will be based on the purchase price, which shows Seller has marketable and merchantable title to the real property which is the subject of this Agreement. At the time of Closing, the City will pay the entire cost of the Title Insurance Policy. January 8, 2013 City of Brookings 13 B. Deed Preparation/Closing Service Fees. The City Attorney for the City will prepare the Warranty Deed and a Certificate of Real Estate Value required for this transaction at no expense to Seller at the time of Closing. C. Transfer Fee/Recording Fee/Real Estate Taxes. 1. This transaction is exempt from transfer fees. 2. The City will pay the recording fee for the Warranty Deed. 3. The Seller will pay the 2013 Real Estate Taxes. Because the property will be owned by the City of Brookings, which is a political subdivision, the property will be exempt from real property taxes from and after the date of Closing. D. Closing/Possession/Insurance. The Closing date will be scheduled at the convenience of the parties at such time as all contingencies have been satisfied or waived, with possession to be given to the City at the time of Closing. The City estimates that the Closing date will be on or about January 3, 2013. Seller agrees to maintain all existing insurance coverage on the property until the time of Closing. It is understood and agreed that the City will not be permitted to take possession of the property until title has transferred. Closing will be scheduled at a location mutually convenient for Seller and the City after the expiration of the referendum period ends without a referendum occurring, or if a referendum occurs and the public vote approves the purchase by the City of the real property which is the subject of this Agreement. E. No Personal Property Included in this Agreement. No personal property is included in the sale of the above-described real estate. F. Current Use of Premises/Leases. Seller acknowledges there is a current oral lease of the above-described property. This lease will terminate on or about December 31,2013. G. Surveys and Tests. The City, its employees, agents and contractors will have the right to enter upon the above-described real property to perform such soil tests and surveys upon execution of this Agreement which the City deems necessary, provided the City's representatives do not interfere with Seller's use of the property. The City intends to survey the above-described real property and will pay the costs of the survey. 5. Contingencies. The obligation of the City to purchase the above-described property pursuant to this Agreement is contingent upon the following contingencies: a) That Seller provides clear and marketable title to the Buyer concerning the above described real property, by Warranty Deed, which contains only easements, rights of way and reservations of record. If there are any title restrictions, defects or burdens to which Buyer objects, other than easements, rights of way and restrictions of record, such objection will be stated in writing to January 8, 2013 City of Brookings 14 Seller, and Seller will be allowed a reasonable time of not less than sixty (60) days in which to correct the same, and the Closing date will be delayed for not less than sixty (60) days to provide Seller with time to correct said defect. (b) The parties also acknowledge the following contingencies are also condition precedents to the performance of this Agreement by the City. Briefly stated, the contingencies concern: (i) the Resolution of the City, discussed at greater length in subsection (i) below; and (ii) that no actions or suits are commenced or threatened against the City prior to Closing and pertaining to the performance of this Agreement, as is more fully discussed in subsection (ii) below. i. Referendum/Election. The City's obligation to purchase the property described herein will be terminated if the City Council's decision to purchase the above-described property is referred by the voters and the voters do not approve the purchase. "Referred" means the voters of the City, at an election, vote to nullify the decision of the City to purchase or pay for the property described herein. In the event of a successful referral, this Agreement will be null and void. This contingency will be waived at the later of the expiration date of any referendum period if there is no referendum, or the date following the election canvassing if there is a referendum election, and the purchase is approved at a referendum election. However, a referendum decision by voters of the City which does not approve the purchase will permit the City to terminate this Agreement. If this Agreement is terminated pursuant to this provision, City will be entitled to a refund of its earnest money down payment. ii. Pending or Threatened Litigation. Through the date of Closing, there are no actions, suits or proceedings pending or threatened against the City at law or in equity pertaining to this transaction which might adversely affect the ability of the City to perform its obligations under this Purchase Agreement. In the event of pending or threatened litigation pertaining to this transaction, at the option of the City, this Agreement may be declared null and void. If this Agreement is terminated pursuant to this provision, City will be entitled to a refund of its earnest money down payment. 6. Good Faith/Mutual Cooperation. a) The City will in good faith seek to satisfy all contingencies to this Real Estate Purchase Agreement and will act in a timely manner to permit its Closing as close to the January 3, 2013 Closing date as possible. At any time and from time to time before and after the Closing, the City will, at the request of Seller, and without further consideration, promptly execute, acknowledge and deliver such further instruments and take such further action as Seller may reasonably request in order to consummate and confirm the transaction contemplated by this Agreement and to accomplish the purposes of January 8, 2013 City of Brookings 15 this Agreement; however, no such instruments or actions will impose upon the City any burden or obligation which is in excess of any burden or obligation specifically imposed upon the City pursuant to the terms of this Agreement. b) At any time and from time to time before and after the Closing, Seller will, at the request of the City, and without further consideration, promptly execute, acknowledge and deliver such further instruments and take such further action as the City may reasonably request in order to consummate and confirm the transaction contemplated by this Agreement and to accomplish the purposes of this Agreement; however, no such instruments or actions will impose upon Seller any burden or obligation which is in excess of any burden or obligation specifically imposed upon Seller pursuant to the terms of this Agreement. 7. Review by Counsel. The City and Seller acknowledge that they each have had an opportunity to review this Agreement with legal counsel, and the parties agree that the rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement. 8. Applicable Law. The laws of South Dakota govern this transaction. 9. Entire Agreement. This written Agreement constitutes the complete Agreement between the parties and supersedes any prior oral or written Agreement between the parties regarding the subject matter of this Agreement. There are no verbal agreements that change this Agreement and no waiver of its terms will be effective unless such are made and executed in writing and duly acknowledged as received by the parties. 10. Binding Effect. This Agreement binds the parties hereto and their heirs, successors and assigns, if any. Resolution No. 180-12. A motion was made by Kubal, seconded by Corbett, to approve Resolution No. 180-12, a Resolution for Federal Aid Construction Project Number P-PH 0014(172)418 PCN 01TJ, 6th Street from west of Western Avenue to Main Avenue, Brookings, SD. All present voted yes; motion carried. Resolution No. 180-12 - A Resolution for South Dakota Federal Aid Construction Project Number P-PH 0014(172)418 PCN 01TJ; Highway 14 from west of Western Avenue to Main Avenue, Brookings, SD Whereas, the Brookings City Council desires the construction improvement of Highway 14 from west of Western Avenue to Main Avenue, and Whereas, the City of Brookings is obligated and hereby agrees to provide proper maintenance as required by the Financial Agreement between the Department of Transportation and the City of Brookings, and Whereas, the City of Brookings is obligated and hereby agrees to the provisions outlined in the January 8, 2013 City of Brookings 16 Financial Agreement between the Department of Transportation, City of Brookings and Brookings Municipal Utilities. Now, Therefore Be It Resolved, that the Mayor is hereby authorized to sign the revised State of South Dakota Joint Powers Financial Agreement between the Department of Transportation, City of Brookings and Brookings Municipal Utilities for South Dakota Federal Aid Construction Project Number P-PH 0014(172)418 PCN 01JT. Resolution No. 181-12. A motion was made by Corbett, seconded by McClemans, to approve Resolution No. 181-12, a Resolution Annexing the following property for the airport: Outlots 1A and 2 in the NE ¼ of Section 28-T110N-R50W, and the SW ¼ of the NW ¼, except Sublots A and B of Outlot 1, in Section 27-T110N-R50W. All present voted yes; motion carried. Resolution No. 181-12 - Resolution Annexing the following property for the airport: Outlots 1A and 2 in the NE ¼ of Section 28-T110N-R50W, and the SW ¼ of the NW ¼, except Sublots A and B of Outlot 1, in Section 27-T110N-R50W. Whereas, the City of Brookings is authorized pursuant to South Dakota Codified Law 9-4-1 to annex contiguous territory upon receipt of a written petition, describing said territory sought to be annexed, signed by not less than three-fourths (3/4) of the legal voters and by the owner or owners of not less than three-fourths (3/4) of the value of said territory, and Whereas, The City of Brookings desires to annex the following described property, to wit: Outlots 1A and 2 in the NE ¼ of Section 28-T110N-R50W, and the SW¼ of the NW¼, except Sublots A and B of Outlot 1, in Section 27-T110N-R50W Whereas, the aforesaid land is contiguous to the present boundaries of the City of Brookings, and Whereas, the City of Brookings has received a Petition For Annexation of Territory signed by the owners of greater than three-fourths (3/4) of the value of the aforesaid property and by not less than three-fourths (3/4) of the legal voters residing in said territory, now therefore Be It Resolved by the City of Brookings, South Dakota, that the property described above is hereby annexed to the City of Brookings. Resolution No. 182-12. A motion was made by Thorpe, seconded by Niemeyer, to approve Resolution No. 182-12, a Resolution pertaining to the Procurement of Professional Services for the City of Brookings. All present voted yes; motion carried. Resolution Pertaining to the Procurement of Professional Services for the City of Brookings Whereas, the City of Brookings frequently utilizes a wide variety of professional services to implement the mission, services, programs, and strategic plan of the City, and January 8, 2013 City of Brookings 17 Whereas, policies that encourage businesses to locate within the City of Brookings help strengthen the local economy, and Whereas, dollars expended on local vendors and employees leads to return on the investment through local vendors and employees spending earned dollars in Brookings; that such local purchases retains and circulates more money in the local economy, and Whereas, it shall be the commitment of the City to facilitate local economic development by encouraging the retention of City professional development expenditures within the local economy to the greatest extent possible, and Whereas, the City has a fiduciary responsibility to all taxpayers to seek the best possible value for the City in the procurement of professional services; Now, Therefore, Be It Resolved by the City Council of the City of Brookings that: 1) When considering contract awards for professional services, such contract shall be awarded to the proposer that represents the best value to the City in the sole determination of the City; and it is in the best interest of the City to secure multiple competitive proposals for such services. 2) When all such considerations constituting a best value determination are made and such considerations are deemed to be equal among two or more proposals, the award shall go to the local proposer. In the event two or more equal proposals are local, the City shall further revise with more detail the evaluation and make a selection from among the local proposals. 3) Consideration of “best value” determination shall include but not be limited to: (a) local presence, (b) price, (c) qualifications and capabilities, (d) quality of work, (e) applicable warranties, (f) service, (g) past experience with City, (h) reference checks (i) balance of awarded contracts among local firms; and that an objective system, to the greatest extent feasible, be applied to the evaluation of proposals based on these criteria. 4) All local firms may submit proposals for consideration for professional services with the possible exception of: (i) emergency situations; (ii) situations where state and federal contract procurement policies conflict with this policy; or (iii) for joint contracts with third parties who express preferences in providers. The City Manager may solicit proposals from non-local firms in the interest of obtaining multiple competitive proposals for the best possible value. 5) Professional Services subject to this policy are those defined in South Dakota Codified Law and are project-oriented for a limited duration. Professional services exempt from this policy shall be those deemed to be on-going (i.e. City Attorney, Auditor, Bond Counsel, and Financial Advisor. 6) For professional services estimated to cost in excess of $75,000, formal Requests for Proposals (RFP) shall be made, local firms will be notified of the RFP via electronic or telephonic communication, and a formalized point evaluation system suitable for the January 8, 2013 City of Brookings 18 service(s) requested will be used. The City may utilize RFPs for projects less than $75,000. 7) The following criteria helps to define the extent a service provider is local: (a) having a physical address in Brookings County; (b) owning or leasing commercial space in a commercially permitted address where that location is for the express purpose of providing the professional service; (c) a number of employees that work from the local office; and (d) corporate headquarters or local ownership. Resolution No. 174-12. A motion was made by Thorpe, seconded by McClemans, to approve Resolution No. 174-12, a Resolution to exchange Federal Surface Transportation Program Funds for State Funds. All present voted yes; motion carried. Resolution No. 174-12 - A Resolution to Exchange Federal Surface Transportation Program Funds for State Funds Whereas, the City of Brookings desires funding for the construction and improvement of local road and/or bridge projects; and Whereas, the City of Brookings Surface Transportation Program fund balance is sufficient for the projects currently programmed for the City of Brookings. Now Therefore Be It Resolved, that the City of Brookings elects to participate and enter into an agreement for the swap program that SDDOT is offering for federal fiscal year 2013 as referenced in the letter from Darin P. Bergquist, Secretary, South Dakota Department of Transportation. Ordinance No. 30-12. A public hearing and action was held on Ordinance No. 30-12, an Ordinance pertaining to an Application for a Conditional Use for a Community Center in the Business B-2A District. A motion was made by Corbett, seconded by McClemans, to approve Ordinance No. 30-12. All present voted yes; motion carried. TABLED ITEM: Ordinance No. 25-12. A motion was made by Niemeyer, seconded by McClemans, to remove Ordinance No. 25-12, an Ordinance amending the Zoning Ordinance pertaining to the Conditional Use Permit process, from the table. McClemans and Niemeyer voted yes; Corbett, Kubal, Reed and Thorpe voted no; motion failed. Ordinance No. 28-12. A public hearing and action was held on Ordinance No. 28-12, an Ordinance revising Article IV and pertaining to Excavations in the City of Brookings, SD. A motion was made by Kubal, seconded by Corbett, to approve Ordinance No. 28-12. All present voted yes; motion carried. Ordinance No. 29-12. A public hearing and action was held on Ordinance No. 29-12, an Ordinance prohibiting littering in the City of Brookings, SD. A motion was made by Corbett, January 8, 2013 City of Brookings 19 seconded by McClemans, to approve Ordinance No. 29-12. All present voted yes; motion carried. Ordinance No. 31-12. A public hearing and action was held on Ordinance No. 31-12, an Ordinance prohibiting texting (while driving) in the City of Brookings, SD. A motion was made by Kubal, seconded by Corbett, to approve Ordinance No. 31-12. All present voted yes; except Thorpe voted no; motion carried. ADDITION – Temporary Liquor License. A public hearing was held on a Temporary On-Sale Liquor License for the VFW for the National Guard Christmas Party at the National Guard Armory on January 5, 2013. A motion was made by Corbett, seconded by Niemeyer, to approve. All present voted yes; motion carried. ADDITION – Fund Transfer. A motion was made by McClemans, seconded by Corbett, to authorize a temporary transfer from the Public Improvement Fund to the Airport Fund. All present voted yes; motion carried. Adjourn. A motion was made by Corbett, seconded by McClemans, to adjourn. All present voted yes; motion carried. Meeting adjourned at 7:26 p.m. CITY OF BROOKINGS ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk January 8, 2013 City of Brookings 20 CONSENT AGENDA #4 C. Action to approve various volunteer appointments. Mayor Tim Reed has submitted the following appointment recommendations for City Council advice and consent: Business Improvement District #1 Board Number of positions: 1 Position Held by: Lance Park Term Length: 3 years Residency Requirement: Not Required The Business Improvement District #1 Board is responsible to prepare a plan of improvements for a district and provide improvement recommendations to the City Council. The boundaries of Business Improvement District #1 are defined as non-contiguous properties to include all hotels/motels with 25 or more rooms situated within the corporate limits of the city of Brookings. Mayor’s Recommendation: 1. Appoint Jennifer Johnson Brookings Committee for People who have Disabilities – Student Position Number of positions: 1 (vacancy) Term Length: Unexpired Term – 05/01/13 Residency Requirement: Required for 7 members The Brookings Committee for People who have Disabilities strives to advocate for the rights of people who have disabilities in our community. Throughout the year, specific events are held to bring awareness and information to our citizens. Technical assistance is provided to the business community, private individuals, governmental entities and nonprofit organizations. This is a service not provided by any other entity in Brookings. The goals of this service are to improve the quality of life for people who have disabilities through enhancing the knowledge base of entities in the community; and to further serve as a community-based advocacy group enhancing the ability of local entities to comply with Federal Civil Rights legislation. Mayor’s Recommendation: 1. Appoint Nadine Gjerde Sustainability Council Number of positions: 1 (vacancy) Term Length: Unexpired Term – 01/01/14 Residency Requirement: Required for Majority The purpose of the Sustainability Council is to investigate, propose, educate, communicate, and advocate investment strategies and policies that will improve our future qualities of life while still meeting the needs of the present. Mayor’s Recommendation: 1. Appoint Betty L. Beer January 8, 2013 City of Brookings 21 CONSENT AGENDA #4 D. Action on Resolution No. 01-13, a Resolution authorizing Change Order No. 1 (CCO#1 Final) for 2012-15SSI, Wiese Addition Wetland Project. The Wiese Addition Wetland Project has been completed and is ready to be closed out. This project was designed by Banner Associates and included the construction of wetlands, grading, wetland seeding, buffer zone seeding, and hydromulch. The City obtained a wetland permit to construct wetlands on Block 2 in Wiese Addition, which is owned by the City. These wetlands were built as mitigation for the disturbed wetlands from Block 1 in Wiese Addition, in conjunction with an agreement with Steve Schwanke, the owner of Block 1. Mr. Schwanke will pay a prorated share of the entire construction project. The project substantial completion deadline was November 12, 2012 with $50.00/day for liquidated damages. However, the construction staking was not completed by Banner Associates until November 9, 2012, which did not allow the contractor time to complete the work by the deadline. The contractor began work on November 12, 2012, and completed the work on November 14, 2012. The contractor is requesting a time extension of 3 working days on the attached letter. The City is agreeable to extending the contract due to the construction staking. This resolution will adjust the contract quantities to final as-built quantities for an increase of $0.00 to the contract and will adjust the contract time by three working days to close out the project. The project summary is as follows: Original Contract Price: $17,623.00 Increase from Previous Change Orders: $ 0.00 Contract Price Prior to this Change Order: $17,623.00 Increase of this Change Order (No. 1 Final): $ 0.00 Contract Price incorporating this Change Order: $17,623.00 This resolution will approve Change Order No. 1 (CCO #1 final) for an increase of $0.00 to the contract and adjust the contract time by three working days to close out the project. January 8, 2013 City of Brookings 22 Resolution No. 01–13 Resolution Authorizing Change Order No. 1 (CCO#1 Final) for 2012-15SSI, Wiese Addition Wetland Project Be It Resolved by the City Council that the following change order be allowed for 2012-15SSI, Wiese Addition Wetland Project: Construction Change Order Number 1 (final): Adjust contract quantities to final as-built quantities for an increase of $0.00 and adjust contract time by three working days to close out the project. Passed and approved this 8th day of January, 2013. CITY OF BROOKINGS ___________________________ Tim Reed, Mayor ATTEST: _________________________ Shari Thornes, City Clerk January 8, 2013 City of Brookings 24 5. Items removed from Consent Agenda. 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. January 8, 2013 City of Brookings 25 Open Forum/Presentations/Reports 6. Invitation for a Citizen to schedule time on the Council Agenda for an issue not listed. 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. 7. SDSU Student Senate Report. President – Jameson Berreth Vice-President – Wyatt DeJong Administrative Assistant – Daniel Vellek Finance Chair – Ben Ruggeberg State & Local Chair – Jameson Goetz SDSU Sent Website: http://www.sdstatesa.com/#! January 8, 2013 City of Brookings 26 Contracts & Change Orders 8. Action on Resolution No. 02-13, a Resolution authorizing Change Order No. 2 (CCO#2) for 2012-05SSI, Camelot Square Drainage Improvement Project. The Camelot Square Drainage Improvement Project was designed by Civil Design Inc. and entails installing new storm sewer, channel grading, valley gutter and street and sidewalk repairs in the drainage basin from the Hammond and Horner Avenues of the Fairgrounds Addition through Camelot Square Addition, down to 15th Street South. This project is being funded with a loan from the South Dakota Department of Environment and Natural Resources, which will be paid back with Storm Drainage Fees. The contractors have been progressing on their work on the Camelot Square Drainage Improvement Project. Late fall, they constructed the concrete valley gutter on the south end of the project. The plan specifications did not require any erosion control measures for the side-slopes of the valley gutter embankment. However, the project engineer and City staff felt that turf reinforcement mat should be installed on the side- slopes to protect against erosion for heavy spring storm flows that may occur before grass is established. Sod will be placed approximately five feet wide along the valley gutter and the turf reinforcement mat will be installed from the edge of the valley gutter under the sod to the top of the slopes. This change order also includes gabion baskets around the south end of the box culvert where it connects to the valley gutter to protect from erosion. Gabion baskets are a wire mesh rectangular box with large rocks inside used for erosion control and bank stabilization. The cost for the turf reinforcement mat and gabion baskets is an increase of $9,378.00 to the contract amount. The summary is as follows: Original Contract Price: $1,715,775.43 Increase from Previously Approved Change Orders (No. 1): $ 1,590.00 Contract Price Prior to this Change Order: $1,717,365.43 Increase of this Change Order (No. 2): $ 9,378.00 Contract Price incorporating this Change Order: $1, 726,743.43 This resolution will approve Change Order No. 2 (CCO #2) for an increase of $9,378.00 to the contract amount. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call January 8, 2013 City of Brookings 27 Resolution No. 02-13 A Resolution Authorizing Change Order No. 2 (CCO#2) For 2012-05SSI Camelot Square Drainage Improvement Project Bowes Construction Inc. Be It Resolved by the City Council that the following change order be allowed for 2012-05SSI Camelot Square Drainage Improvement Project: Construction Change Order Number 2: Adjust contract to add turf reinforcement mat and gabion baskets around the box culvert opening and valley gutter side-slopes for an increase of $9,378.00 to the contract. Passed and approved this 8th day of January, 2013. CITY OF BROOKINGS _________________________ Tim Reed, Mayor ATTEST: ____________________________ Shari Thornes, City Clerk January 8, 2013 City of Brookings 28 First Reading ** 9. Ordinance No. 32-12: An Ordinance granting to NorthWestern Corporation, its successors and assigns, the right to occupy any of the streets, alleys, or public places of the City of Brookings, South Dakota, for the purpose of transmitting or distributing natural gas. Public hearing: January 22nd **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. TO: Mayor and City Council Members FROM: City Manager Jeff Weldon RE: First Reading, Ordinance Granting Franchise to conduct business in the City for NorthWestern Public Service Our current ordinance providing authority to NorthWestern Public Service to sell natural gas to customers in the City of Brookings expired on December 31, 2012. The Council approved a continuing Resolution No. 152-12 on December 4, 2012, for a 60-day extension of the expiring ordinance until a replacement ordinance can be adopted. Attached is the expired ordinance as well as the proposed replacement ordinance. The new language was the result of a meeting between staff and legal representatives of the Company and the City. You will note the new ordinance is significantly more complex and covers many more issues than the expired ordinance. This is due, in part, to the new changes we enacted with the excavation ordinance where those issues apply, but also reflects the changes over the years in the natural gas industry and the growth of the community as well as legal protections for the City. Perhaps most importantly, the new ordinance has much improved language to better address public safety considerations since natural gas is potentially very dangerous. To aid with understanding the content of the ordinance, I have prepared the following section summary. Section 1: Purposes of this Ordinance Grants authority from the City to NorthWestern Public Service (Company) the right to sell natural gas within the city limits via the city’s rights-of-way subject to certain state and local regulations. Acknowledges the City has no rate-setting authority. Section 2: Definitions Standard statutory language providing definitions for terms in the ordinance. Section 3: Powers Granted to the Company January 8, 2013 City of Brookings 29 Provides City approval for access by the Company to streets and public right-of-ways to provide gas line infrastructure. The ordinance is not exclusive meaning the City may grant competitive franchise approvals to other gas providers. Section 4: Powers Retained by the City Describes situations whereby if the City determines a dangerous situation exists, the City may direct the Company to abate the danger at the Company’s expense. In the event the Company fails to abate said dangerous situation, the City may, after exhausting all reasonable notification remedies, unilaterally abate the dangerous situation. Section 5: Duties of the Company Requires the Company to obtain the necessary permits from the City for work being done; and that the work substantially follow the plans submitted and subsequently approved. Provides for an exception for abating an emergency situation. Requires the Company to use existing right-of-ways where possible. Provides for restoration and repairs to property as a result of construction. Provides for the submission of “as-built” plans to the City so the City has a record of installed natural gas utility infrastructure; and that the Company must keep them up-to-date. An accurate inventory of existing infrastructure is important for future work planned in the area as well as identifying specific locations of infrastructure without requiring field locations. Prescribes construction standards and timing requirements to complete the work as well as situations where extensions would be permitted. Provides for the removal and re-location of Company infrastructure from right-of-ways when directed by the City to do so at the Company’s expense. Provides for the approval of abandonment-in-place in certain circumstances of Company infrastructure. Requires the Company to obtain and maintain liability insurance and a local emergency response plan, including the ability of City-trained personnel to shut-off gas meters in an emergency situation. Section 6: Duties of the City Requires the City to effectively maintain all City property in a manner suitable for being serviced with natural gas; and that the City will pay for such services. Section 7: Term Provides for a term of ten (10) years and the right of prior termination for just cause; includes remedy provisions. Section 8: General Conditions Standard contractual language. January 8, 2013 City of Brookings 30 Ordinance No. 32-12 An Ordinance authorizing granting a franchise to Northwestern Corporation to provide, transmit or distribute Natural Gas upon and within the streets and public rights-of- way in the City of Brookings, South Dakota, and establishing regulations pertaining thereto. Be It Ordained by the governing body of the City of Brookings, South Dakota, as follows: I. Sec. 1. Purposes of this Ordinance. To the extent permitted by law, the City Council of the City of Brookings is adopting this Ordinance to establish reasonable regulations applicable to Northwestern Corporation (referred to herein as the “Company”) for the construction, operation and maintenance of gas facilities in, along, across, under, or over the City’s property. Specifically, the purposes of this Ordinance are: (a) To regulate the construction, operation and maintenance of natural gas distribution lines on city property; (a) To authorize the Company to provide gas distribution services within the streets and public rights-of-way corporate limits of the City, subject to the City’s right to the regulation of its streets and public rights-of-ways pursuant to SDCL §9-35-1; and (b) To protect the health, safety, and welfare of the public in the City; and (d) To hold the City harmless from all claims arising from the granting of such franchise and the operations of the franchise thereunder. The City recognizes that pursuant to SDCL Chapter 49-34A-5, municipal corporations have no authority or jurisdiction over rates and conditions of service of any public utility subject to the jurisdiction of the South Dakota Public Utilities Commission. To the extent of any conflict between this Ordinance and SDCL Chapter 49-34A, State law shall control. The City is enacting this Ordinance pursuant to SDCL §9-35-1 and its police powers. Sec. 2. Definitions. For the purposes of this Ordinance, the following words and terms shall have the meanings provided in this Section, except where the context clearly indicates a different meaning. Unless otherwise expressly stated or clearly contrary to the context, words and terms not defined herein shall be given the meaning set forth in the City code; if not defined in the City code, the meaning set forth in any State law of general applicability; and if not defined either in the City code or in a State law, their common and ordinary meaning. When not inconsistent with the context, words used in the present tense include the future tense and vice versa; words in the plural number include the singular number and vice versa; and the masculine gender includes the feminine gender and vice versa. The words “shall” and “will” are mandatory; the word “may” is permissive. January 8, 2013 City of Brookings 31 (a) Agreement shall mean the terms of this Ordinance Franchise Agreement negotiated by the City and Company pursuant to this Ordinance. (b) City shall mean the City of Brookings, State of South Dakota. (c) City property shall mean all properties, facilities or objects currently or in the future owned or operated by the City within the present and/or future corporate limits of the City. (d) Company shall mean Northwestern Corporation, and its successors and/or assigns upon written approval of the City. (e) Company facilities shall mean all gas facilities owned or operated or otherwise controlled by the Company. (f) Construction or Construct shall mean, without limitation, constructing, acquisition, laying, maintaining, testing, operating, extending, renewing, relocating, removing, replacing, repairing, and using gas transmission or distribution facilities. (g) Consumer shall mean any person, firm, partnership, corporation, municipality, cooperative, organization, governmental agency or other form of legal entity currently or potentially provided services by the Company. (h) Gas shall mean natural, artificial, and/or mixed methane-based gas. (i) Gas facilities shall mean gas pipes, pipe lines, mains, laterals, conduits, feeders, regulators, meters, fixtures, connections, and all attachments, appurtenances, and accessories necessary and incidental thereto located within City properties or within the City limits, whether the same be located above or below ground. (j) Maintenance, maintaining, or maintain shall mean, without limitation, relaying, repairing, replacing, relocating, examining, testing, inspecting, removing, digging and excavating, and restoring operations incidental thereto. (k) Services shall mean natural gas service provided by the Company. Sec. 3. Powers Granted to the Company. (a) Right to construct, maintain and operate. The Company shall have the right, privilege and authority and franchise to construct, maintain and operate within the streets and public rights-of-way all necessary gas facilities to provide services to consumers within the City limits, so long as all such activities are performed in compliance with this Ordinance. (b) Non-exclusive use of the public rights-of-ways franchise. The rights franchise granted to the Company under this Ordinance are is a non-exclusive franchise. Therefore, this Ordinance franchise is adopted granted upon the express condition that it shall not in any manner prevent the City from granting to others the right to use streets and public rights-of- ways for the purpose of transmitting or distributing natural or further franchises for gas services. Sec. 4. Powers Retained by the City. (a) Retention of rights by the City. (1) Nothing contained in the franchise issued to the Company under this Ordinance shall be construed to prevent the City from purchasing or contracting for gas services for City property from sources other than the Company. (a) Retention of power to abate a dangerous situation. January 8, 2013 City of Brookings 32 (1) Whenever the construction, maintenance or operation of the Company’s facilities has caused or contributed to a condition that appears to City officials to substantially impair or endanger the public, or adjoining City property or private property, the City may direct the Company, at the Company’s expense and within a reasonable time period appropriate to the circumstances, to take such actions to protect the public or the potentially affected properties or facilities. The Company shall relocate, at its own cost, all Company facilities that an appropriate City official objectively determines are located in a place or in a way so as to constitute a danger to the public or to the City or private properties. In the event that the Company shall not take such actions within the requested time period, the Company and the City agree to meet to discuss the situation and proceed with due diligence to determine an appropriate and timely remedy may enter upon the Company’s facilities to take appropriate actions to alleviate the condition or potential danger. and The Company shall be liable to the City for the costs of any relocation of its facilities pursuant to this Section thereof. The Company will hold the City harmless for any actions taken pursuant to this subsection. This provision shall survive the expiration, revocation or termination of this Ordinance Franchise Agreement. (2) Furthermore, in the event of a public emergency, such as a fire or flood, and only in the event the Company does not act or is unable to take the necessary action, the City shall have the right to modify, sever, disrupt, dig up, or destroy facilities of the Company or to shut off service to one or more consumers, without prior notice, if such action is deemed necessary because of a public emergency. Public emergency shall be such a condition which, in the opinion of an official of the City, poses an immediate threat to the lives or property of the citizens of the City, caused by any natural or man- made disaster, including but not limited to storms, floods, fire, accidents, explosions, major water main breaks, hazardous spills, etc., where there is insufficient time for the City to notify the Company of the threat and the Company to resolve the problem after notice by the City. The City’s action shall only be performed by its authorized Fire Department personnel and only in the event the Company cannot act or requests the City to take action and the action taken shall be limited to shutting the gas meter down by closing the gas valve. The City shall be responsible for repair, at its sole expense, of any of the Company’s facilities damaged pursuant to any such emergency actions taken by the City under this provision. Sec. 5. Duties of the Company. (a) Comply with all laws and obtain all necessary permits. (1) The Company shall at all times be subject to all laws, statutes, ordinances, codes, rules, regulations, standards, and procedures regarding the construction, operation or maintenance of the Company’s facilities, whether Federal, State or local, now in force or which, hereafter, may be promulgated (including but not limited to zoning, land use, historic preservation ordinances, safety standards, and other applicable requirements). However, if any term or condition of this Agreement shall be in conflict with any local ordinance, code, rule, or regulation, the provisions of in this January 8, 2013 City of Brookings 33 Ordinance shall govern and control. The Company shall obtain all necessary permits or approvals for construction, maintenance and operations. (2) No action or omission of the City shall operate as a future waiver of any laws, statutes, ordinances, codes, rules, regulations, standards, or procedures of the City under this Agreement. (b) Construct Company facilities per filed plans and specifications filed. (1) Except in an emergency situation, the Company shall file with the City detailed project plans and specifications of for intended work and operations, and obtain all necessary permits before commencing construction, maintenance or operation of Company facilities. If construction, maintenance or operation is commenced without a permit due to an emergency situation, the Company shall file all necessary documents and obtain all necessary permits as soon as possible after commencing work under the emergency situation. The Company (and its contractors or subcontractors) shall construct, maintain and operate the Company’s facilities consistent with plans and specifications filed with and approved by the City. (2) To the maximum extent possible, the Company will utilize existing utility rights-of-way where practicable. Company construction, maintenance or operations under this Ordinance Franchise Agreement shall not unduly burden or interfere with present or future normal uses of any City property, except for periods expressly approved by the City. No City property shall be obstructed longer than necessary during the work of construction or maintenance. The Company shall coordinate with the City’s plans for street construction, rebuilding, resurfacing and repair to minimize multiple disturbances of the same area. The Company shall leave City property in as good and safe condition as it was before the commencement of work by the Company, its agents and contractors, and shall repair and restore any City property which is disturbed, damaged or injured by construction, maintenance or operations of the Company. The City shall have the final approval right over whether adequate repair and restoration has been completed by the Company. In the event that the Company fails to repair or restore affected City property in a manner acceptable to the City, the City shall have the right, after allowing the Company a reasonable period to complete the repair and restoration, to make such repairs and restoration and the Company shall pay the costs incurred by the City for such actions. Repairs and restoration by the City shall be limited to the City’s property and this provision does not authorize any repair of Company facilities. (3) Where possible, the Company shall bury Company facilities in the manner required by the City. (c) Record all Company facilities. (1) Within a reasonable time Immediately upon the effective date of this Agreement, and after construction or modification of Company facilities, the Company shall mark (or otherwise clearly identify ownership of) such facilities in a manner acceptable to the City. Within thirty (30) days of the effective date of this Agreement, the Company shall provide to the City, at no cost, all plans, maps and records showing the location and specifications of the Company facilities affected by this Agreement which have not been previously provided to the City. Where construction, maintenance January 8, 2013 City of Brookings 34 or operations cause such facilities to be modified in any significant manner, within a reasonable period after such modification, the Company shall provide to the City, at no cost, a copy of all as-built plans, maps and records to reflect such modifications. (2) The Company shall at all times keep full and complete plans, plat or plats, specifications, profiles, and records in accordance with industry standards showing the exact location and size of all Company facilities. These Company records shall be subject to inspection by City officials during business hours and on prior notice. In the case of an emergency involving Company facilities, the Company shall provide access to such records by City officials as expeditiously as possible even if outside business hours and without prior notice. (d) Maintain and operate Company facilities in a safe manner. (1) The Company shall have the obligation under this Agreement to maintain and operate its facilities at all times in a safe and careful manner which is consistent with applicable industry standards. No City property shall be obstructed longer than necessary during the Company’s construction, maintenance and operations. The Company shall cause no damage or injury to any City property; however, if any such damage or injury shall occur, the Company shall repair the same as promptly as possible. Upon thirty (30) days written notice by the City to the Company of the repairs required by the Company’s actions and failure by the Company to make such repairs as requested by the City, the City may make such repair of the City’s property and the Company shall reimburse the City for all costs and expenses incurred. On notice from the City, the Company shall be responsible for correcting or replacing, at its sole cost and expense, any defective work or materials on Company facilities affecting City property within a sixty (60) day period of the date of acceptance by the City for the replacement or repair of the City property. Such corrections or replacements by the Company shall be completed within the time specified by the City. (2) Upon not less than ninety (90) sixty (60) days prior written notice, the City may request that the Company, for the benefit of the City and its municipal utilities, relocate, protect, support, disconnect, or remove Company facilities because of work to be otherwise performed by the City (including but not limited to construction, grading, reconstruction, maintenance or repair of a City street or alley, or water, sewer or storm drainage lines; movement of buildings; or any other public improvement). The Company will be permitted additional time appropriate to the circumstances to take action pursuant to this provision if necessary due to inclement weather or other circumstance which, through no fault of the Company, delays the Company’s performance. Written notice of the Company’s request for additional time shall be given to the City, and the Company and City shall enter into good faith discussions concerning the delay and the City shall thereafter determine whether additional time is appropriate given the circumstances. The City shall provide to the Company a description of its planned work and a description of the actions requested of the Company. The Company shall expeditiously take the action requested by the City, at its sole expense and without recovery from the City, and shall immediately inform the City of when such actions will be completed after receiving such notice. If relocation is requested, the Company shall relocate its facilities to a reasonable alternative route designated by the City. January 8, 2013 City of Brookings 35 (3) If the City vacates or consents to the vacation of a street or alley within the City limits, and such vacation necessitates the removal and/or relocation of Company facilities, as a condition to this Agreement, the Company agrees to consent to the vacation and further agrees to relocate or remove its facilities at its sole cost and expense if asked to do so by the City. The Company will not be obligated to remove or relocate its facilities if the vacation of a street or alley does not also require or make necessary the removal or relocation of its facilities. If relocation is requested, the Company shall relocate its facilities to a reasonable alternative route designated by the City. (4) The Company will not abandon its main service lines No Company facilities shall be abandoned without prior notice to approval from the City. This does not prevent the Company from abandoning customer service lines. In the event that this Agreement is not renewed at the end of its term or is terminated by forfeiture or breach, or the Company proposes to abandon service provided to consumers from Company facilities on City property, and the City has not purchased such Company facilities, the Company shall continue to provide services to consumers affected until alternative services can be arranged if necessary. For any period during which service continues after a termination or proposed abandonment, the Company shall be entitled to payment for services by consumers in no greater amount than that which it would have been entitled were such services provided prior to the termination of this Agreement or abandonment of Company facilities. Upon request from the City and within a reasonable time after receipt thereof, the Company shall remove all Company facilities affected by the termination or abandonment of facilities which are located upon City’s property, or services or shall take other actions directed by the City if the Company facilities are to be abandoned in place. Such removal shall be at no cost to the City the Company’s sole expense. All City property previously affected by the Company’s facilities shall be restored to its condition prior to the construction, maintenance and operation by the Company. In the event that in a reasonable period the Company fails to remove the abandoned Company facilities or perform the actions requested by the City for an abandonment in place, the City shall have the right to take such actions and the Company shall pay the costs incurred by the City for such actions. (e) Obtain and maintain insurance. (1) The Company shall maintain, at its sole expense, during the entire term of this Agreement, general comprehensive liability insurance coverage for property damage and bodily injury, including coverage for construction, operations, maintenance, relocation, and repair. Such policy(ies) shall be with a Company authorized to do business in the State of South Dakota and shall provide that the City (including all officials, officers, employees, and volunteers) is specifically covered as an additional insured with respect to any activities performed by or on behalf of the Company. To fulfill this obligation, the Company may self-insure in such amounts as are consistent with applicable law and industry standards good utility practice. The Company shall provide to the City evidence of such insurance policy(ies) or self- insurance on an annual basis upon request. A copy of the policy(ies) or other proof of self-insurance satisfactory to the City shall be filed with the City prior to commencement January 8, 2013 City of Brookings 36 of any work or operations related to City property. The Company shall hold the City harmless for any premiums due, amounts of deductible, or claims under such policy(ies). (2) Recovery by the City under insurance shall not limit the Company’s duty to hold the City harmless for its construction, maintenance and operations as set forth herein. Recovery by the City under insurance is in addition to all other rights of the City, whether specified in this Ordinance or as otherwise authorized by law. Such insurance policy(ies) may not be suspended, voided, canceled by either party, or reduced in coverage or limits, except after sixty (60) days prior written notice bas been received by the City. If the Company proposes to suspend, void or cancel such insurance previously approved by the City, unless the City expressly waives its right under this subsection (e), this Agreement may be terminated at the sole discretion of the City. (f) Reimburse the City for costs and expenses for proposed transfer of this Agreement. At the City’s option, the Company shall pay in advance or reimburse the City for expenses incurred with respect to any proposed transfer of this Agreement, including, without limitation, attorney’s fees, consultant’s fees, publication of notices and ordinances, and copying of documents in connection with a proposed transfer of this Agreement. In addition, the Company shall pay to the City the actual administrative expenses incurred by the City which are directly related to actions taken by the Company for any such transfer of this Agreement. As such administrative expenses and costs are incurred, the City shall bill the Company and the Company shall make payment to the City within thirty (30) days of receipt of such statement. (g) File and maintain a local emergency response plan. (1) The Company shall prepare and file with the Brookings Fire Department those portions of its an emergency management plan applicable to the City and County of Brookings for responding to any emergency condition. The plan shall designate responsible officials and emergency 24-hour on-call personnel and shall describe the procedures to be followed when responding to an emergency. After being notified of an emergency by the City, the Company shall cooperate with the City and make every effort to respond as quickly as possible with actions to minimize damage and to protect the health and safety of the public and/or property. (2) The Company shall ensure that Company meters facilities which can be used to shut off service at the meter are accessible to the City public safety personnel forces in time of an emergency at no cost to the City. To the extent existing facilities are not so accessible, the Company either shall immediately relocate or require the customer to relocate its inaccessible meter at no cost to the City, at its sole cost and expense such equipment to make it accessible or shall reach agreement with the City on a reasonable schedule for such relocation. (h) Provide safe and efficient services to the City. (1) During the term of this Agreement, the Company shall provide services to meet the reasonable demands of the City and the consumers located within the City limits without discrimination. The Company shall acquire, construct, maintain, equip, and operate all necessary Company facilities to provide such services as set forth in this Section. The Company shall not curtail services to the City or to its consumers except in compliance with a curtailment plan filed and approved by Public Utilities Commission. January 8, 2013 City of Brookings 37 (2) The Company promptly shall make any extension of Company facilities as may be necessary to service one or more current or potential consumers, provided that if the anticipated revenues to be derived from such extension shall not afford a reasonable return of the cost of providing and rendering service by the Company, the Company may decline to make such extension unless the consumer(s) to be served by such an extension submit(s) cash advances, minimum guarantees, service guarantees or other arrangements as will enable the Company to earn a reasonable return of its costs of providing such services. Sec. 6. Duties of the City. (a) Maintain City property. The City shall maintain its property in a sufficient condition that does not prevent the Company from performing its duties and obligations under this Agreement. If any City property is causing substantial adverse impact on Company facilities covered by this Agreement, upon written notice from the Company, the City will take reasonable steps to resolve such adverse impact. (b) Payment to City of charges for Company services. The City shall pay all reasonable charges for services provided to the City by the Company. Sec. 7. Term. (a) Term of Ordinance Franchise Agreement. The term of the Agreement under this Ordinance is will be ten (10) years from and after the effective date hereof, provided that neither the Company nor the City shall be bound by the provisions herein until the Company has filed with the City its written acceptance of this arrangement as provided in Section 8 below. (b) Termination. (1) If the Company shall fail to comply with any provision of this Agreement, the City may serve on the Company a written order to so comply within sixty (60) days from the date of the order. If the Company is not in compliance after expiration of that designated time period, the City may, after affording the Company a reasonable opportunity to be heard, declare an immediate breach and forfeiture of this Agreement; provided, however, that if any failure to comply cannot with reasonable and appropriate efforts by the Company be corrected within the designated time period, the City may extend that period upon appropriate representations and assurances by the Company that corrections are being made. Such extension will not be considered or deemed a waiver by the City of any such lack of compliance. The City may allow continuation of this Agreement for as long as the City deems appropriate, despite a breach or forfeiture as described herein, in order to ensure continuation of service to consumers; such continuation of the arrangement will not be deemed a waiver of the City’s claim of a breach or forfeiture. (2) Nothing in this Agreement shall limit or restrict any legal rights that the City may possess arising from any alleged violation of this Agreement. January 8, 2013 City of Brookings 38 Sec. 8. General Conditions. (a) Indemnification and hold harmless. The Company agrees to protect, hold harmless, and indemnify the City (including its officers, agents, contractors, and employees) from and against all claims, losses, damages, causes of action, suits and liability of every kind, which may occur to, or be suffered by, any person or persons, corporation, or property by reason of any act or failure to act on the part of the Company. In case suit or action is brought against the City for damages arising out of or by reason of the above-mentioned causes, the Company shall, upon notice to it of the commencement of said action against the City, defend the same at its sole cost and expense, and hold harmless and indemnify the City from any attorney’s fees and costs of litigation incurred by the City in connection with the litigation. In case judgment shall be rendered in such a suit or action against the City, the Company shall fully satisfy the judgment within sixty (60) days after the suit or action shall have been finally determined, if determined adversely to the City. If the Company shall fail to satisfy the judgment within the designated time period set forth herein, this Agreement shall be deemed in breach and can be terminated by the City under Section 7 of this Agreement hereof. (b) Exception. The Company shall not be required to indemnify the City for negligence on the part of the City or its officials, agents, or employees (hereinafter “such acts”). The City shall hold the Company harmless for any damage resulting from any such acts of the City or its officials, agents, or employees and for any such acts committed by the Company in connection with action taken by the City and permitted by this Ordinance, on or adjacent to the Company’s facilities. (c) No waiver. Neither the City nor the Company shall be excused from complying with any of the terms and conditions of this Agreement by any failure of the other (including its affiliates, employers, or agents) to insist upon or seek compliance with any such term or condition. (d) No third-party rights. It is the express intent of the City and the Company that neither this Agreement nor any of its provisions shall create any rights in third parties. (e) Dispute resolution. In the event that there is any dispute between the City and the Company arising by reason of this Agreement, the City and Company may, by mutual agreement (both as to whether to hire and whom to hire) employ the services of technical consultants as mediators. All reasonable fees of the consultants incurred by the City and the Company in this regard shall be borne equally. (f) Assignment, lease/sublease, and transfer. (1) This Agreement may not be assigned or transferred without the express written approval of the City, with such approval not unreasonably withheld; except that the Company may freely assign this Agreement in whole or in part to a parent, subsidiary or affiliated entity or as part of any internal corporate financing, reorganization, or refinancing. Any proposed assignment which requires City approval shall be submitted to the City together with written confirmation of the assignee’s written acceptance of all terms and conditions of the Agreement and promise of compliance. The City shall have ninety (90) days in which to approve in writing such a proposed assignment before the proposed effective date of the assignment. In the event of transfer or assignment in whole or in part to secure indebtedness, consent by the City shall not be required. The Company shall promptly file with the City any such January 8, 2013 City of Brookings 39 assignment or transfer which does not require prior City approval within thirty (30) days of its effective date. (2) The Company shall not lease or sublease any portion of its Company facilities in the City limits without the express consent of the City. (g) Company as independent contractor. When performing under this Agreement, the Company’s status shall be that of an independent contractor and not an agent, servant, employee or representative of the City in the performance of work pursuant to this Agreement. No term or provision of this Agreement, or act of the Company (or its employees, contractors, or subcontractors), shall be construed as changing that status. (h) Modification of the Agreement. The City and the Company hereby reserve the right to alter, amend or modify the terms and conditions of this Agreement upon written agreement of both parties to such alteration, amendment or modification, and acceptance of such by the City Council, if required. (i) Notice. (1) All notices, including communications and statements which are required or permitted under the terms of this Agreement, shall be in writing and evidenced by receipt, service of a notice may be accomplished by facsimile, personal service, registered or certified mail (postage prepaid), or reputable daytime or overnight courier service. (2) Notices shall be sent to the parties at the following addresses: City: City of Brookings Attn: City Manager P.O. Box 270 Brookings, SD 57006 Tele: (605) 692-6281 Fax: (605) 692-6907 Company: Northwestern Corporation 1232 – 22nd Ave. S. P.O. Box 57 Brookings, SD 57006 Tele: (605) 692-6265 Fax: (605) 692-9108 (3) The City or the Company may designate a new address for itself for purpose of notice hereunder by written notice to the other duly given as provided herein. (j) Approval by City. The Agreement as set forth herein shall be approved by the City Council before acceptance by the Company. (k) Acceptance by the Company. Within sixty (60) days after approval and passage of this Ordinance by the City, the Company shall file with the City Clerk an unconditional written acceptance thereof. Failure of the Company to so accept this Agreement within said period of time shall be deemed a rejection of this the Franchise Agreement by the Company, and the rights and privileges granted herein (after the designated timed period for filing acceptance) January 8, 2013 City of Brookings 40 shall absolutely cease and be forfeited and null and void as to the Company, unless the time period for acceptance is extended by order of the City Council. (l) Effective date. This Ordinance shall be in full force and effect from and after its passage, approval by the City, acceptance by the Company, and legal publication as provided by law. Sec. 9. Miscellaneous. (a) The headings of sections and subsections of this Ordinance are for convenience of reference only and are not intended to restrict, affect, or be of any weight in the interpretation or construction of the provisions of such sections or subsections. (b) This Ordinance contains the entire agreement of the parties; and no other Agreement (oral, written, or otherwise) regarding the subject matter of the Agreement shall be deemed to exist or to bind the parties hereto. The Agreement may not be changed, modified, discharged, or extended, except by written amendment, duly executed by the parties. (c) If any term, condition, or provision of this Ordinance, to any extent, be held to be invalid, illegal or unenforceable (referred to herein as an “impaired provision”) the remaining terms, conditions and provisions shall remain valid in all other respects and continue to be effective. With respect to the impaired provision, the City and the Company shall enter into good faith negotiations and proceed with due diligence to draft a term, condition or provision that will achieve the original intent of the parties hereunder. In the event of a subsequent change in applicable, law so that the impaired provision is no longer impaired, and the impaired provision has not been renegotiated by mutual agreement of the City and the Company, upon reasonable notice by the City said provision shall thereupon return to full force and effect without further action by the City and shall thereafter be binding on the Company and the City. (d) Governing law: This Ordinance shall, in all respects be construed and interpreted in accordance with the laws of the State of South Dakota. II. Any or all ordinances in conflict herewith are hereby repealed. First Reading: January 8, 2012 Second Reading: Published: CITY OF BROOKINGS, SD ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk ACCEPTED: This Ordinance Franchise is accepted by Northwestern Corporation which agrees to be bound by its terms and conditions. NORTHWESTERN CORPORATION Dated: __________________ By: Its: January 8, 2013 City of Brookings 43 Second Readings & Public Hearings 10. Public hearing and action on Resolution No. 03-13, a Resolution authorizing city manager to sign on-off sale wine license operating agreement for Carpy’s Pub, Roger & Verla Carpenter, Owners, 714 22nd Ave. So., Brookings, SD (legal: E 77' 5" of the W145' and the N 32' 9" of the S 655' and the E 30' of the W 137' of the N6’ of S 679' of Lot 2, Brookings Mall Addition). Roger and Verla Carpenter, owners of Carpy’s Pub, 714 22nd Ave. So., have applied for an on-off sale Wine Alcohol license. A public hearing and action by the local governing body is required for all new alcohol licenses. Additionally, an operating agreement is required for wine licenses. Resolution No. 03-13 allows the City Manager to enter into the first five years of the 10-year agreement effective through 2018. This license would be effective January 1-December 31, 2013 and then subject to an annual renewal. If approved, the application would be forwarded to the State Department of Revenue for final action and issuance of the license. Staff recommends approval. City Ordinances: Listed below is Chapter 5, Article 2, Section 5-20 of the City Code of Ordinances pertaining to Application Review Procedure. The City Council shall review all applications submitted to the City for available On- Sale Alcoholic Beverage Agreements and for On-Sale Malt Beverage and Wine Licenses in accordance with SDCL 35-2 and in accordance with the following factors: a) Type of business which applicant proposes to operate: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold unless it can be established that minors do not regularly frequent the establishment. b) The manner in which the business is operated: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to establishments which are operated in a manner which results in minors regularly frequenting the establishment. c) The extent to which minors are employed in such a place of business: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold and which regularly employ minors. d) The adequacy of the police facilities to properly police the proposed location: The City Council shall inquire of the Police Chief whether the Police Department can adequately police the proposed location. e) Other factors: The hours that business is conducted shall be considered by the City Council in its review of applications for on-sale alcoholic beverage operating agreements and on-sale malt beverage and wine licenses. City Manager Introduction Action: Open & Close Public Hearing, Motion to Approve, Roll Call January 8, 2013 City of Brookings 44 Resolution No. 03-13 Carpy’s Pub Wine Operating Agreement Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Agreement for the Operating Liquor Management Agreement for wine between the City of Brookings and Carpy’s Pub, for the purpose of a liquor manager to operate the on-sale establishment or business for and on behalf of the City of Brookings at 714 22nd Ave. So. Be It Further Resolved that the City Manager be authorized to execute the Agreement on behalf of the City, which shall be for a period of five (5) years and renewal for another five (5) years. Passed and approved this 8th day of January, 2013. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk January 8, 2013 City of Brookings 45 Other Business 11. Update on 20th Street South & Main Avenue South Signal Project. The South Dakota Department of Transportation (SDDOT) has programmed the signal project for Main Avenue South and 20th Street South for construction. The Brookings City Council adopted Resolution No. 119-12 authorizing the mayor to sign the funding agreement for the project. The project is currently being designed by the engineering firm HDR in Sioux Falls. Originally, the signal project at this intersection was going to be constructed after the intersection was reconstructed with either the 20th Street South reconstruction project or the Main Avenue South reconstruction project. Both of these street reconstruction projects have been delayed due to funding issues. City staff has discussed the possibility of constructing the signal project in advance of these two street projects. This would require an update to the scope and an amendment to the SDDOT agreement since the project would involve pavement and radius replacement. A draft layout of the intersection is included. Staff will provide an update on this option. Action: Informational January 8, 2013 City of Brookings 47 Other Business 12. 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. January 8, 2013 City of Brookings 48 13. Adjourn.