HomeMy WebLinkAbout2013_02_26 CC PKT1
Brookings City Council
Tuesday, February 26, 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 to approve Resolution No. 17-13, a Resolution designating the official
newspaper.
E. Action to cancel the March 12, 2013 City Council meeting.
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.
Contracts & Change Orders
8. Action to approve Resolution No. 18-13, a Resolution authorizing Change Order No. 3
for Dakota Nature Park Nature Center; Clark Drew Construction, Inc.
Action: Motion to Approve, Request Public Comment, Roll Call
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Second Readings & Public Hearings
9. Public hearing and action on Resolution No. 19-13, a Resolution Levying Assessment for
Street Assessment Project No. 2012-09STA, 25th Avenue and 10th Street Project.
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
10. Public hearing and action on 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.
Action: Motion to remove from Table – Roll Call
Open & Close Public Hearing, Motion to Approve, Roll Call
Other Business
11. Action on Resolution No. 20-13, a Resolution extending the Agreement between the City
of Brookings and Northwestern Corporation.
Action: Motion to Approve, Request Public Comment, Roll Call
12. Action to approve Downtown Brookings Inc. 2013 Work Plan.
Action: Motion to Approve, Request Public Comment, Roll Call
13. Quarterly Financial Report from Brookings Health Systems.
Informational
14. Action to approve Resolution No. 21-13, a Resolution Authorizing Prepayment and
Refunding of a Portion of a Lease Agreement; Approving the Execution of a Second
Lease Agreement 2013A and an Amended and Restated Irrevocable Declaration of Trust
by First Bank and Trust, as Trustee; Providing for the Execution, Sale and Delivery of not
to exceed $5,000,000 Aggregate Original Amount of Refunding Certificates of
Participation Series 2013A in the Lease-Purchase Agreement 2013A Pursuant to a
Certificate Purchase Agreement and the Application of the Proceeds Thereof to prepay a
Portion of the Lease Agreement and Authorizing and Approving other Actions and
Agreements necessary to Consummate the Contemplated Improvement and Financing.
Action: Motion to Approve, Request Public Comment, Roll Call
15. Action to approve District Transportation/Utility Development Plan for South Main
Avenue (South Main Avenue from 20th Street to 32nd Street).
Action: Motion to Approve, Request Public Comment, Roll Call
16. 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.
17. Adjourn.
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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.
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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 to approve Resolution No. 17-13, a Resolution designating the
official newspaper.
E. Action to cancel the March 12, 2013 City Council meeting.
*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
February 26, 2013
City of Brookings
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CONSENT AGENDA #4
B. Action to approve minutes.
The draft February 12th and February 19th Brookings City Council minutes are enclosed
for Council review and approval.
February 26, 2013
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Brookings City Council
February 12, 2013 (unapproved)
The Brookings City Council held a meeting on Tuesday, February 12, 2013 at 6:00 p.m., at City
Hall with the following members present: Mayor Tim Reed, Council Members John Kubal, Mike
McClemans, Ope Niemeyer, Keith Corbett, Jael Thorpe and Tom Bezdichek. City Attorney Steve
Britzman, City Manager Jeff Weldon and City Clerk Shari Thornes were also present.
Consent Agenda. A motion was made by Kubal, seconded by Corbett, to approve the consent
agenda.
A. Action to approve the agenda.
B. Action to approve the January 22nd Council meeting minutes.
C. Action to appoint Sara Bentzen to the Park & Rec Board student position (term expiring
5/1/2013).
D. Action on Resolution No. 11-13 a Resolution setting forth a schedule of proposed fines for
violations of the Ordinances of the City of Brookings, SD (littering, excavation, texting).
Resolution No. 11-13 - A Resolution setting forth a Schedule of Proposed Fines for Violations
of the Ordinances of the City of Brookings, South Dakota.
Be It Resolved by the Governing Body of the City of Brookings, South Dakota, that the
following Schedule of Proposed Fines shall be effective as prescribed by law for all violations
of Ordinances set forth herein.
SCHEDULE OF PROPOSED FINES WITH COURT COSTS. Miscellaneous Offenses: Section 70-
37 - Littering, Fine $60.00, Costs $60.00, Total $120.00; Section 74-141 thru 149 - Excavation
Offenses, Fine $100.00, Costs $60.00, Total $160.00; Section 82-312 - Texting, Fine $60.00,
Costs $60.00, Total $120.00.
E. Action on Resolution No. 12-13, a Resolution fixing time and place for hearing upon
Assessment Roll for Street Assessment Project No. 2012-09STA (25th Avenue and 10th
Street Project).
Resolution No. 12-13 - Resolution fixing time and place for Hearing Upon Assessment Roll
for Street Assessment Project No. 2012-09STA (25th Avenue and 10th Street Project)
Be It Resolved by the City Council of the City of Brookings, South Dakota, as follows:
1. The assessment roll for Street Assessment Project No. 2012-09STA having been filed in
the office of the City Clerk on the 5th day of February, 2013, the City Council shall meet in
the Chambers, Brookings City & County Government Center, in said City on Tuesday, the
26th day of February, 2013 at 6:00 o'clock PM, the said date being not less than twenty (20)
days from the filing of said assessment roll for hearing thereon.
2. The City Engineer is authorized and directed to prepare a notice describing, in general
terms Street Assessment Project No. 2012-09STA, the date of filing the assessment roll, the
time and place of hearing thereon, stating that the assessment roll will be open for public
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inspection at the office of the City Engineer and referring to the assessment roll for further
particulars.
3. The City Clerk is authorized and directed to publish said notice in the official newspaper
at least one (1) week prior to the date set for hearing and to mail a copy thereof, by first
class mail addressed to the owner or owners of any property to be assessed at his, her or
their last mailing address as shown by the records of the Director of Equalization at least
one (1) week prior to the date set for said hearing.
F. Action to abate the 2013 Drainage Fees for 815 Medary Avenue ($461.70) and 317 11th
Street ($334.38), SDSU Foundation (40365-00700-005-00 and 40960-11050-232-10).
G. Action on Resolution No. 16-13, a Resolution authorizing Change Order No. 2 for the
Dakota Nature Park – Nature Center; Clark Drew Construction, Inc.
Resolution No. 16-13 - A Resolution Authorizing Change Order No. 2 for
Dakota Nature Park – Nature Center; Clark Drew Construction, Inc.
Be It Resolved by the City Council that the following change order be allowed for the Dakota
Nature Park – Nature Center: Construction Change Order Number 2.
TE Underground: Materials - Reducing 6” pipe to 4” = ($1,740.00); Reduce 6” tapping valve
= ($153.40); Eliminating 6” material = ($1,662.66); Add: 8” valve, pipe and plug = $3,890.35.
Labor: Reducing 6” to 4” = ($1,740.00); Live tap fee for 8” = $910.00. Subtotal: ($495.71)
Clark Drew Construction, Inc.: Subtotal = $495.71; SD Excise Tax @ 2% = $9.91; Bonding
1.2% = $6.07; Lump Sum Total = $511.69; There will be a total deduction of $511.69.
Contract history: $1,198,700.00 original contract sum; $1,191,990.00 after Change Order
No. 1; $1,191,478.31 new contract amount after Change Order No. 2.
On the motion, all present voted yes; motion carried.
Resolution No. 13-13. A motion was made by Thorpe, seconded by Corbett, to approve
Resolution No. 13-13, a Resolution Authorizing the Mayor to sign an Amendment to Agreement
for Professional Services for Brookings Regional Airport Project No. AIP #3-46-0005-025-2012,
Design and Construction of Runway 11/29 Realignment Phase I. All present voted yes; motion
carried.
Resolution No. 13-13 - Resolution Authorizing the Mayor to Sign an Amendment to Agreement
for Professional Services for Brookings Regional Airport Project No. AIP #3-46-0005-025-2012;
Design and Construction of Runway 11/29 Realignment Phase I
Whereas, the City of Brookings desires the construction of the Runway 11/29 Realignment
Project;
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Whereas, the City of Brookings desires South Dakota Department of Transportation assistance
with the Brookings Regional Airport Project 3-46-0005-25-2012;
Whereas, the City of Brookings desires to expand the first phase of the grading for the Runway
11/29 Realignment Project and the City of Brookings desires that this work be added to the
original scope of work for professional services with Helms and Associates for the design and
construction of Runway 11/29 Realignment Phase I including relocation of 6-Mile Creek with
Bridge, 404 permit wetland mitigation, earthwork/grading, granular fill and gravel base course
and wildlife fencing;
Now Therefore Be It Resolved that the mayor of the City of Brookings is authorized to sign
Amendment Number 1 to the Agreement for Professional Services and other related
documents for Runway 11/29 Realignment Phase I, Regional Airport Project 3-46-0005-25-
2012.
Ordinance No. 01-13. A public hearing was held on Ordinance No. 01-13, an Ordinance
Rezoning Lots 1-6, 6A, 7-15, 15A, 16-47, and the vacated alley and park lot adjacent thereto, in
Fishback Subdivision; and Lots 4-7, Block 17, Morehouse Addition from a Residence R-2 District
to a Residence R-1C District. Public Hearing: Scott Peterson spoke against the proposal. Dick
Peterson, Cris Ingen and John Hageman spoke in favor. A motion was made by Corbett,
seconded by Kubal, to approve Ordinance No. 01-13. All present voted yes, except McClemans
voted no; motion carried.
Ordinance No. 02-13. A public hearing was held on Ordinance No. 02-13, an Ordinance for a
Conditional Use permit to establish a sorority/fraternity on Lot 4, Block 2, Peterson’s First
Addition (712 Main Avenue). Public Hearing: The applicants and representatives of the sorority
spoke in favor of the proposal. A motion was made by Bezdichek, seconded by Niemeyer, to
approve Ordinance No. 02-13. A motion was made by Reed, seconded by Thorpe, to amend the
date to August 31, 2014. On the amendment, all present voted yes; motion carried. On the
main motion as amended, all present voted yes; motion carried. A motion was made by Reed,
seconded by Thorpe, directing staff to review the circumstances for when we have possible
change in uses as opposed to willful abandonment and send the city attorney as our
representative in that process. All present voted yes; motion carried.
Resolution No. 14-13. A public hearing was held on Resolution No. 14-13, an Resolution upon a
petition to vacate W. 16th Avenue abutting Outlot A in the N ½ of Section 27-T110N-R50W,
Sublot A of Outlot 1 in the NW ¼ of Section 27-T110N-R50W, and Outlots 1A and 2 in the NE ¼
of Section 28-T110N-R50W. Public Hearing: Jean Lacher spoke. A motion was made by Kubal,
seconded by Thorpe, to approve Resolution No. 14-13. All present voted yes; motion carried.
Resolution No. 14-13 - Street Vacation
Whereas, a petition to vacate has been filed with the City Clerk of the City of Brookings, and
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Whereas, the petition was filed in proper form and signed by one hundred percent (100%) of
the adjacent property owners.
Now, Therefore, Be It Resolved, by the City Council of the City of Brookings that the portion of
West 16th Avenue abutting Outlot A in the N ½ of Section 27-T110N-R50W; Sublot A of Outlot 1
in the NW ¼ of Section 27-T110N-R50W; and Outlots 1A and 2 in the NE ¼ of Section 28-T110N-
R50W be vacated.
Off-Sale Malt License. A public hearing was held on an Off-Sale Malt Beverage Alcohol License
for the Brookings Brownstone, Inc., dba The Brownstone, Lorraine & Brennan Sullivan, owners,
Lot 7, Block 3, Original Plat Addition, 313 Main Avenue. A motion was made by Bezdichek,
seconded by Niemeyer, to approve an off-sale malt license for the Brownstone. All present
voted yes; Thorpe abstained; motion carried.
Resolution No. 15-13. A public hearing was held on Resolution No. 15-13, a Resolution of
Intent to Lease Real Property in Wiese and Freeland Additions. A motion was made by
Bezdichek, seconded by Kubal, to approve Res. No. 15-13. All present voted yes; motion
carried.
Resolution No. 15-13 - Resolution of Intent to Lease Real Property
in Wiese and Freeland Additions
Be It Resolved by the governing body of the City of Brookings, South Dakota, that the
City of Brookings intends to enter into a Lease with Foundation Seed Stocks for a period of one
(1) year, commencing on March 9, 2013 and ending March 8, 2014, and pertaining to the
following described property: The designated farmland in the Brookings Wiese Addition, thirty
(30) acres more or less in Section 19, T110N, R49W, and the designated farmland in the
Brookings Freeland Addition, thirty-eight (38) acres more or less in Section 18, T110N, R49W in
the City of Brookings, Brookings County, South Dakota.
The Lease will be an amount of One Hundred Five Dollars ($105.00) per acre for farmland
annually, payable first half on April 1 and the remaining half on November 1. The City of
Brookings may terminate this Lease at any time in the event a parcel of the above described
property is to be sold by the City of Brookings. If a portion of the leased land is sold, the
number of acres to be paid for will be adjusted at the unit price per acre.
Be It Further Noted that a Public Hearing on this Resolution was held on February 12, 2013 at
6:00 o’clock P.M. at the City Council Chambers and that all persons were given an opportunity
to be heard on the intent to lease real property.
2013 Strategic Plan. A motion was made by Corbett, seconded by Thorpe, to approve the
Proposed 2013 Strategic Plan.
AMENDMENT: A motion was made by Reed, seconded by Corbett, to amend the following:
“Lean Government Services Implementation Pilot Project. Commentary: This initiative involves
a strategic analysis of specific City services and analyzes the process and procedures for
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implementing the services with the goal of making service delivery more efficient and effective.
Such analysis seeks to add value to City services through continuous improvement and that
they remain citizen-focused. Adoption of Lean practices involves the adoption of principles,
practices, and methods that eliminate non-value-added activities in the service delivery process
to citizens. Action steps: Identification of staff teams around specific lean project(s); Provide
specialized training to the team(s) about lean practices; Identification of one major,
comprehensive pilot project; Identification of a minimum of two, minor, departmental pilot
projects; and Teams develop/implement lean initiatives for targeted pilot projects. Complete
two projects and report out to the City Council. Create and utilize a Lean project advisory
review board comprised of local industry expertise and staff leadership. Lead staff assignment:
City Manager Jeff Weldon, City Clerk Shari Thornes, and Finance Manager Rita Thompson.”
All present voted yes; motion carried
AMENDMENT: A motion was made by Reed, seconded by Thorpe, to amend the following:
Citizen Engagement through Internet and on-line mobile applications. “Commentary: This
initiative would research and launch specific tools designed to increase citizen engagement,
transparency, and provide certain City services through the advent of mobile applications. Such
applications ‘mobile apps’ would be specifically tailored to identified City services as well as
facilitating two-way communication, and be a resource for general community information for
residents and visitors. The research would consider current City initiatives including CivicPlus
and the website, and select new applications apps to be developed and implemented
consistent with stated goals. Policies and procedures specifically adopted would be an
amendment to the Technology Plan. Partner with other community entities with mobile
applications. Action steps: TBD. Lead staff assignment: City Manager Jeff Weldon, City Clerk
Shari Thornes, and Finance Manager Rita Thompson.” All present voted yes; motion carried.
AMENDMENT: A motion was made by Reed, seconded by Thorpe, to amendment the
following: Long-Term Maintenance/Finance plan for Streets. Commentary: While the City
currently has a multi-year schedule for maintenance of existing streets, the schedule should be
expanded beyond the current five years. Research should be done pertaining to the viability of
instituting a pavement management system that provides a scientific “index” of the condition
of streets for enhanced forecasting of scheduled maintenance. The primary two methods of
street maintenance are cracksealing/chipcoating and mill/overlay. In extreme cases, streets
need to be completely re-constructed. Action steps: TBD. Street construction and re-
construction methods will be reviewed to ensure the best life cycle value. Lead staff
assignment: City Engineer Jackie Lanning and Street Superintendent Koss Delfinis
On the main motion as amended, all present voted yes; motion carried.
2013 STRATEGIC PLAN - City of Brookings
Primary Issues
1) Comprehensive Long-Range Debt Financial Analysis
Commentary: With the refinancing of the City’s debt and the expected continued issuance of
State debt through the SRF program for the storm drainage master plan, as well as anticipated
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CIP projects needing debt, an analysis should be undertaken for long-range financial
implications beyond the five-year CIP. This analysis needs to consider all existing debt service
obligations as well as City-issued debt on behalf of Brookings Municipal Utilities and Brookings
Health System. Such planning will be necessary to insure prioritize capital projects are
developed and long-range financial stability is preserved.
Action steps: TBD
Lead staff assignment: City Manager Jeff Weldon and Finance Manager Rita Thompson
Technical assistance: Finance Advisor Dougherty & Associates (Toby Morris), BMU/Swiftel CEO
Steve Meyer, and BHS Administrator Jason Merkley
2) Economic Development Initiatives
Commentary: An on-going project, the economic development initiatives for 2013 are
expected focus on two primary areas; (1) retail development and (2) business recruitment in
the Research Park at South Dakota State University. A parallel economic development initiative
will continue to be the visitor industry through tourism and events. Other on-going economic
development initiatives will be business and industry recruitment and inquiry responses, the
sale of commercial/industrial land in the City’s inventory for development, workforce
development, and other aspects of implementing the BEDC strategic plan.
Action steps: TBD
Lead staff assignment: City Manager Jeff Weldon and Community Development Director Mike
Struck
Technical assistance: BEDC Executive Director Al Heuton, Growth Partnership Executive
Director Dwaine Chappel, and CVB Director Jennifer Johnson
3) Lean Government Services Implementation Pilot Project
Commentary: This initiative involves a strategic analysis of specific City services and analyzes
the process and procedures for implementing the services with the goal of making service
delivery more efficient and effective. Such analysis seeks to add value to City services through
continuous improvement and that they remain citizen-focused. Adoption of Lean practices
involves the adoption of principles, practices, and methods that eliminate non-value-added
activities in the service delivery process to citizens.
Action steps: Identification of staff teams around specific lean project(s); Provide specialized
training to the team(s) about lean practices; Identification of one major, comprehensive pilot
project; Identification of a minimum of two, minor, departmental pilot projects; and Teams
develop/implement lean initiatives for targeted pilot projects. Complete two projects and
report out to the City Council.
Lead staff assignment: City Manager Jeff Weldon, City Clerk Shari Thornes, and Finance
Manager Rita Thompson
Create and utilize a Lean project advisory review board comprised of local industry expertise
and staff leadership.
TR/KC -
4) Citizen Engagement through Internet and mobile applications
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Commentary: This initiative would research and launch specific tools designed to increase
citizen engagement, transparency, and provide certain City services through the advent of
mobile applications. Such applications would be specifically tailored to identified City services
as well as facilitating two-way communication, and be a resource for general community
information for residents and visitors. The research would consider current City initiatives, and
select new applications to be developed and implemented consistent with stated goals.
Policies and procedures specifically adopted would be an amendment to the Technology Plan.
Partner with other community entities with mobile applications.
Action steps: TBD
Lead staff assignment: City Manager Jeff Weldon, City Clerk Shari Thornes, and Finance
Manager Rita Thompson
5) South Main Avenue Infrastructure Development Project
Commentary: Development of private property along South Main Avenue from 20th Street to
32nd Street represents the next major area for residential development with some supporting
commercial development. Development of this area is consistent with the comprehensive plan
and is one of the few, remaining large tract areas for residential development in the near
future. The only other opportunity for residential growth for the near-future is the continual
build-out of existing subdivisions with in-fill, and residential re-development. This road lacks
the necessary infrastructure to accommodate such development. Additional public amenities
are slated to further support this growing area such as a new elementary school and fire sub-
station. While total build-out will be decades away, interest currently exists for initial
development. This component of the strategic plan provides for developing a District
Transportation/Utility Development Plan for South Main Avenue for subsequent City Council
consideration. If adopted, this District Plan would be implemented with design in 2013 and
construction in 2014.
Action steps: Submit District Plan to City Council on Feb. 22; Council approval/rejection of
District Plan; and Implementation of steps enumerated in the District Plan.
Lead staff assignment: Community Development Director Mike Struck and City Engineer Jackie
Lanning
6) Space Needs Analysis for Street Department operations
Commentary: The buildings and facilities that comprise the Street Department maintenance
operation have been identified as needing further analysis for on-going structural repair and
future viability. Four buildings comprise the facility at 125 7th Avenue. Three of the four
structures should be examined in detail regarding present condition, anticipated
improvements, and future needs. The fueling facility is nearing the end of its expected life. The
location should also be examined for future viability of serving the community. A central
question would be to determine the extent and scope of future repairs and improvements
needed to the three structures compared to the financial and operational viability of
replacement. This initiative should consider a consolidated facility with the County Highway
Department.
Action steps: Staff identifies issues to be researched relative to the facility, and Research is
initiated on the identified issues and report prepared.
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Lead staff assignment: Street Superintendent Koss Delfinis and Community Development
Director Mike Struck
7) Long-Term Maintenance/Finance plan for Streets
Commentary: While the City currently has a multi-year schedule for maintenance of existing
streets, the schedule should be expanded beyond the current five years. Research should be
done pertaining to the viability of instituting a pavement management system that provides a
scientific “index” of the condition of streets for enhanced forecasting of scheduled
maintenance. The primary two methods of street maintenance are cracksealing/chipcoating
and mill/overlay. In extreme cases, streets need to be completely re-constructed.
Action steps: TBD
Street construction and re-construction methods will be reviewed to ensure the best life cycle
value.
Lead staff assignment: City Engineer Jackie Lanning and Street Superintendent Koss Delfinis
Secondary Issues
8) On-going advocacy of 34th Avenue/20th St. improvement project
Commentary: This transportation corridor remains a long-range improvement project deemed
essential for the further growth and development of Brookings. Since it involves an interstate
bridge crossing, federal funding will be necessary for a major portion of project financing. The
current financial viability is not conducive for this to be a short-range project. The City should
continue to incrementally build support for this project with state and federal policymakers
while strengthening local intergovernmental and stakeholder support sustainable over the long
term that will be required for this project.
9) Planning/monitoring involvement with SDDOT on Highway 14 upgrades
Commentary: The South Dakota Department of Transportation (SDDOT) will be undertaking
major reconstruction of Highway 14 from the ‘diagonal’ to Main Avenue; and planning for
improvements to 14B and future re-construction projects from Main Avenue to 34th Avenue in
future years. The first phase of construction and the planning of subsequent phases will be
done by SDDOT in 2013. As the single-most significant transportation corridor in Brookings, the
City needs to be an active participant with SDDOT in their planning process to insure the best
interests of the community are addressed as SDDOT undertakes this project.
ATTACHMENT
Primary Issues
1) Comprehensive Financial Analysis,
2) Economic Development Initiatives
3) Lean Government Services Pilot Project
4) Citizen Engagement through on-line mobile applications
5) South Main Avenue Infrastructure Development Project
6) Space Needs Analysis for Street Department operations
7) Long-Term Maintenance and Finance plan for Streets
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Secondary Issues
8) On-going advocacy of 34th Avenue/20th Street Improvement Project
9) Planning/monitoring involvement with SDDOT on Highway 14 upgrades
Major Staff projects (beyond Strategic Planning items)
Airport improvement project, construction (I), planning (II)-Engineering; Camelot Phase II storm
drainage-Engineering; Rotary Park storm drainage-Engineering; 20th/Medary storm drainage-
Engineering; 32nd Avenue completion, road surface-Engineering; Signalization of 12th St. S./17th
Ave. S.-Engineering; Gateway Project, Phase II-Community Development; Bel Brands digester
construction-Community Development; Park, Recreation and Forestry Projects - Bob Sheldon
restroom/concession building, Park development, playground equipment five parks, Dakota
Hills Nature Park, complete Phase II, undertake Phases 2-6, Pheasant Nest dog park,
Comprehensive athletic/recreational field use study; Trail/Pathway plan; amendment to Parks
Master Plan-Com. Dev./Parks & Rec.; and Ordinance Recodification-City Clerk/City Attorney.
City Council member introduction of topics for future discussion. Council Member Niemeyer
suggested scheduling a demonstration of the Swiftel online directory at the next open study
session.
Adjourn. A motion was made by Corbett, seconded by Kubal, to adjourn. All present voted
yes; motion carried. Meeting adjourned at 8:17 p.m.
CITY OF BROOKINGS
ATTEST: Tim Reed, Mayor
Shari Thornes, City Clerk
February 26, 2013
City of Brookings
15
Brookings City Council
February 19, 2013 (unapproved)
The Brookings City Council held a study session on Tuesday, February 19, 2013 at 5:00 p.m., at
City Hall with the following members present: Deputy Mayor Keith Corbett and Council
Members John Kubal, Mike McClemans, Tom Bezdichek and Ope Niemeyer. Mayor Tim Reed
and Council Member Jael Thorpe were absent. City Attorney Steve Britzman, City Manager Jeff
Weldon, and City Clerk Shari Thornes were also present.
Discussion topics: Board of Equalization briefing, Annual Report from First District Association
of Local Governments, updates from the following Subsidy Groups: Brookings Community
Band, Brookings Arts Council, Brookings Area Transportation Authority (BATA), Downtown
Brookings, Inc., Chamber of Commerce, Convention Visitor’s Bureau, Brookings Economic
Development Corporation (BEDC), and council reports.
Adjourn. A motion was made by McClemans, seconded by Kubal, to adjourn. All present voted
yes; motion carried. Meeting adjourned at 6:54 p.m.
CITY OF BROOKINGS
ATTEST: Tim Reed, Mayor
Shari Thornes, City Clerk
February 26, 2013
City of Brookings
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CONSENT AGENDA #4
C. Action to approve various volunteer appointments.
Mayor Reed has submitted the following appointment recommendations for City Council advice
and consent.
Board of Adjustment – 2nd Alternate Position
Number of Positions: 1 (vacancy)
Term Length: 3 years
Residency: Required or reside within the Joint Jurisdictional Area
Purpose: The Board of Adjustment has the authority to act on variances or special exceptions to
the zoning ordinance. Four of the five members must vote in the affirmative for a motion to
pass.
Mayor’s Recommendation:
Appoint Shawn Storhaug
Board of Appeals
Number of Positions: 1 (Gerald Foster vacancy)
Term Length: 5 years
Residency: Not required
Purpose: The function of the Board of Appeals is to hear and decide on appeals or orders,
decisions or determinations made by the city building officials relative to the application and
interpretation of the Building Code, and to determine the suitability of alternate materials and
methods of construction. All members of the Board must be qualified by training and
experience to pass upon the matters pertaining to building construction.
Mayor’s Recommendation:
Appoint George Houtman
Human Rights Committee
Number of Positions: 1 (Rebecca Deinert vacancy)
Term Length: 3 years
Residency: Not required
Purpose: The Human Rights Committee has the power to investigate alleging discrimination.
Other programs include: The study of the existence, character, causes and extent of
discrimination in employment, housing and public accommodations, property rights, education
and public services; Advise and provide a forum for those subjected to unfair and discriminatory
practices in the City and County; Advise City officials concerning issues of discrimination; and
Conducting educational programs and disseminates information to further the committee’s
policy to eliminate discrimination in the city.
Mayor’s Recommendation:
Appoint Sam Jennings
February 26, 2013
City of Brookings
17
CONSENT AGENDA #4
D. Action to approve Resolution No. 17-13, a Resolution designating the
official newspaper.
Pursuant to SDCL 9-12-6 “Designation of official newspapers,” every municipality shall
designate at a meeting of its governing body an official newspaper or newspapers for
the ensuing year. The newspaper shall be published in the municipality.
Resolution No. 17-13
Resolution Designating Official Newspaper
Pursuant to SDCL 9-12-6, the City Council of the City of Brookings, South Dakota, hereby
designates the Brookings Register as the official newspaper for the City of Brookings for
the ensuing year.
Passed and approved this 26th day of February, 2013.
CITY OF BROOKINGS
Mayor Tim Reed
ATTEST:
Shari Thornes, City Clerk
February 26, 2013
City of Brookings
18
CONSENT AGENDA #4
E. Action to cancel the March 12, 2013 City Council meeting.
The City Council meeting scheduled for March 12, 2013 is being cancelled due to several
council members attending the National League of Cities Conference. State Law
requires official Council action to schedule or cancel a meeting.
February 26, 2013
City of Brookings
19
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.
February 26, 2013
City of Brookings
20
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/#!
February 26, 2013
City of Brookings
21
Contracts & Change Orders
8. Action to approve Resolution No. 18-13, a Resolution authorizing Change
Order No. 3 for Dakota Nature Park Nature Center; Clark Drew
Construction, Inc.
The Dakota Nature Park is located on 22nd Ave. South on the site of the previous city
landfill. This phase of project entails the construction of a new Nature Center Building in
the southwest corner of the site.
This is the second of several phases under which the park will be developed. The new
Nature Center Building will be approximately 5,300 sq. ft. and will include a large
classroom, a large atrium (second classroom) with exhibits and reception desk, a four
season porch/meeting room, a storage room for outdoor gear, mechanical and custodial
rooms, and three bathrooms. The building project additionally includes the landscaping
in the immediate area around the building, geothermal and a city waterline.
Change Order No. 3 addresses the addition of a 1”waterline running from the Nature
Center to the South Fire Station and Training Area. The groundwater well which
services the station has malfunctioned, and the station is currently without water for
cleaning and bathroom amenities. The 4” inch waterline which will supply the Nature
Center can provide adequate water for both facilities. There will be a total addition of
$13,157.45 from the previously amended contract. The new contract amount will be
$1,204,635.76.
City Manager Introduction
Action: Motion to Approve, Request Public Comment, Roll Call
February 26, 2013
City of Brookings
22
Resolution No. 18-13
A Resolution Authorizing Change Order No. 3 for Dakota Nature Park - Nature Center;
Clark Drew Construction, Inc.
Be It Resolved by the City Council that the following change order be allowed for the Dakota
Nature Park Nature Center: Construction Change Order Number 3.
TE Underground
Materials: Pipe, fittings, etc. = $1,225.00
Labor: Boring 1” poly: 11.00/ft. @ 830’ = $9,130.00
Subtotal: $10,355.00
Prairie Sons
Materials: BFP, Meter, etc. = $476.00
Tax @ 6% = $29.00
Labor: 16 hrs. @ 47.00/h.r = $729.00
Travel: 4hrs. @ $47.00/hr. = $182.00
O/P: Truck exp. @ 7.5% = $68.00
Tools @ 3% = $27.00
Fuel Surcharge/mile @ $.10 = $12.00
@ 8% = $124.00
Bonding @ 1.44% = $24.00
Subtotal: $1,670.00
Clark Drew Construction, Inc.
Subtotal = $12,025.00
O/P @ 6% = $721.50
SD Excise Tax @ 2% = $254.93
Bonding 1.2% = $156.02
Lump Sum Total = $13,157.45
There will be a total addition of $13,157.45.
Contract history: $1,198,700.00 original contract sum
$1,191,990.00 after change order No. 1
$1,191,478.31 after change order No. 2
$1,204,635.76 new contract amount after Change Order No. 3
Passed and approved this 26th day of February, 2013.
CITY OF BROOKINGS
ATTEST: Tim Reed, Mayor
Shari Thornes, City Clerk
February 26, 2013
City of Brookings
23
Second Readings & Public Hearings
9. Public hearing and action on Resolution No. 19-13, a Resolution Levying
Assessment for Street Assessment Project No. 2012-09STA, 25th Avenue
and 10th Street Project.
This project is a street assessment project located north of the Wal-Mart area that
entails grading, gravel, curb & gutter, sanitary sewer, water mains, storm sewer,
detention pond, asphalt and striping. The street project has been closed out and this
resolution is the final step in the assessment process. The City Council approved
Resolution No. 40-12, which authorized the City to proceed with the assessment project
and the estimated cost of the project was $214.50 per front foot. The final actual cost
of the project was $130.65 per front foot. This was primarily due to favorable bids for
the project and very few project change orders. This figure does not include the City
costs for the extra width and thickness and storm sewer which was $99,427.09.
The resolution to levy the project includes language approved by the City Council in the
attached “Memorandum of Understanding By and Between the City of Brookings and
Den-Wil Development and Lloyd Companies for the Development of 25th Avenue and
10th Street Extension Project” dated 9/13/2011 which, in part, states the following:
“Interest of ten (10) percent per annum shall accrue on the unpaid balance of the
assessment for a maximum of ten (10) years. No interest shall be due during the
five year deferral period. The first assessment installment shall be due on
January 1, 2017. If at any time during the initial five-year deferral period,
development were to occur on parcels 1, 2 or 3 as identified on Exhibit A, the
assessment shall be activated for that respective parcel. Development is defined
as any building permit or approved plat of said parcel. Any plat that seeks to
further subdivide parcels 1, 2 or 3 shall trigger that assessment for the entire
parcel that is being subdivided.”
In essence, the project will be levied upon approval, however the collection will be
deferred as described in the MOU and Resolution Levying Assessment for Street
Assessment Project 2012-09STA. The engineering office mailed a hearing notice and the
actual cost of street project by first class mail to the abutting property owner on the
project and the public hearing was published in the newspaper as required. This
resolution will approve the assessment roll and levy the assessment.
City Manager Introduction
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
February 26, 2013
City of Brookings
24
Resolution No. 19-13
Levying Assessment for Street Assessment Project No. 2012-09STA
25th Avenue and 10th Street Project
Whereas, the City Council has provided for the following work to be completed under Project
No. 2012-09STA, 25th Avenue and 10th Street Project
Be It Resolved by the City Council of the City of Brookings, South Dakota, as follows:
1. The City Council has made all investigation which it deems necessary and has found and
determined that the amount which each lot or tract will be benefited by the construction of
the street improvement heretofore designated as Street Assessment Project No. 2012-
09STA is the amount stated in the proposed assessment roll.
2. The assessment for Street Assessment Project No. 2012-09STA is hereby approved and the
assessment thereby specified are levied against each and every lot, piece or parcel of land
thereby described.
3. The assessment shall be divided into ten (10) equal annual installments.
4. Such assessments, unless paid within thirty (30) days after the date of mailing of a
statement of account by the City, shall be collected by the City in accordance with the
procedure for Plan One in Sections to SDCL 9-43-102. Interest of ten (10) percent per
annum shall accrue on the unpaid balance of the assessment for a maximum of ten (10)
years. No interest shall be due during the five year deferral period.
5. Collection of the assessment shall be as stated in the “Memorandum of Understanding by
and between the City of Brookings and Den-wil Development and Lloyd Companies for the
Development of 25th Avenue and 10th Street Extension Project”. The first assessment
installment shall be due on January 1, 2017. If at any time during the initial five-year
deferral period, development were to occur on parcels 1, 2 or 3 as identified on Exhibit A,
the assessment shall be activated for that respective parcel. Development is defined as any
building permit or approved plat of said parcel. Any plat that seeks to further subdivide
parcels 1, 2 or 3 shall trigger that assessment for the entire parcel that is being subdivided.
Passed and approved this 26th day of February, 2013.
CITY OF BROOKINGS
ATTEST: Tim Reed, Mayor
Shari Thornes, City Clerk
February 26, 2013
City of Brookings
29
Second Readings & Public Hearings
10. Public hearing and action on 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,
SD, for the purpose of transmitting or distributing natural gas.
February 19, 2013
TO: Mayor and City Council Members
FROM: City Manager Jeff Weldon
RE: Second reading and public hearing, 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
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 is the result of several meetings between staff and legal representatives of the
Company and the City. The legal staffs have been meeting extensively on the details. 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.
If this ordinance is adopted, we will need a further extension of the previous ordinance which
will expire on March 1. This new ordinance will not be effective until March 21. Procedurally,
you will need to a motion to further extend the old ordinance until March 20.
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.
February 26, 2013
City of Brookings
30
Section 3: Powers Granted to the Company
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: Term
Provides for a term of ten (10) years and the right of prior termination for just cause; includes
remedy provisions.
Sections 7-8: General Conditions-Miscellaneous
Standard contractual language.
City Manager Introduction
Action: Motion to remove from Table, Roll Call
Open & Close Public Hearing, Motion to Approve, Roll Call
February 26, 2013
City of Brookings
31
Ordinance No. 32-12
An Ordinance authorizing Northwestern Corporation to provide, transmit or
distribute Natural Gas upon and within city property and 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 grant Northwestern Corporation (referred to herein as the “Company”) the right
of access to City real property and the public rights-of-way area for the construction, operation
and maintenance of gas facilities. The right of access granted pursuant to this Ordinance is
subject to the City’s right to regulate the public rights-of-way area pursuant to SDCL § 9-35-1,
subject to restrictions upon the City pursuant to SDCL Chapter 49-34A.
The City recognizes and agrees that pursuant to SDCL § 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.
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.
(a) City shall mean the City of Brookings, State of South Dakota.
(b) City real property shall mean all land currently or in the future owned by the City within the
present and/or future corporate limits of the City.
(c) Company shall mean Northwestern Corporation, and its successors and/or assigns.
(d) Company facilities shall mean all gas facilities owned or operated or otherwise controlled by
the Company.
February 26, 2013
City of Brookings
32
(e) Construction shall mean, without limitation, constructing, acquisition, laying, maintaining,
testing, operating, extending, renewing, relocating, removing, replacing, repairing, and using
gas facilities.
(f) 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.
(g) Gas shall mean natural, artificial, and/or mixed methane-based gas.
(h) 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 real property or within public rights-of-way area,
whether the same be located above or below ground.
(i) Maintenance, maintaining, or maintain shall mean, without limitation, relaying, repairing,
replacing, relocating, examining, testing, inspecting, removing, digging and excavating, and
restoring operations incidental thereto.
(j) Public rights-of-way area means all rights-of-way for public roads, streets, avenues, alleys
and highways of the City as now or may hereafter be platted, dedicated, acquired or improved
within the limits of the City.
(k) Services shall mean 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 to construct, maintain and operate, within City real property and the public rights-of-
way area, gas facilities to provide services to consumers within the City limits.
(b) Non-exclusive use. The rights granted to the Company under this Ordinance are non-
exclusive. Therefore, this Ordinance is adopted upon the express condition that it shall not in
any manner prevent the City from granting others the right to use City real property or the
public rights-of-ways area for any lawful purpose.
Sec. 4. Powers Retained by the City.
(a) Retention of power to abate a dangerous situation.
(1) Whenever the construction, maintenance or operation of the Company’s facilities
has caused or contributed to a condition that endangers the public or adjoining City real
property, the public rights-of-way area or private property, the Company shall
determine the actions appropriate to the circumstances to alleviate the condition or
potential danger and proceed with due diligence to determine an appropriate and
timely remedy to alleviate the condition or potential danger. The Company shall
promptly notify the City’s Fire Chief of the condition or potential danger.
February 26, 2013
City of Brookings
33
(2) Furthermore, in the event of a public emergency, 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
shut off service to affected consumers, without prior notice. Public emergency shall be
such a condition which 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 and hazardous spills.
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 nearest
gas service valve.
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 (“legal requirements”), 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). Notwithstanding the foregoing, the City acknowledges and
agrees that federal legal requirements govern the construction, maintenance and
operation of Company facilities and control over any conflicting or inconsistent local
legal requirements. Additionally, if any term or condition of this Ordinance conflicts
with any local legal requirements, the provisions of this Ordinance shall govern and
control.
(2) No action or omission of the City shall operate as a future waiver of any legal
requirements of the City under this Ordinance.
(b) Record all Company facilities.
(1) The Company shall mark (or otherwise clearly identify ownership of) Company
facilities in accordance with federal legal requirements. Within thirty (30) days of the
effective date of this Ordinance, the Company shall provide to the City, at no cost, maps
and drawings showing the location of the Company facilities which have not been
previously provided to the City. Upon reasonable request, the Company shall provide to
the City, at no cost, updated maps and drawings to reflect modifications to the gas
facilities.
(2) The Company shall at all times keep maps and drawings showing the location and
size of all Company facilities. These Company facility location maps and drawings shall
be subject to inspection by City officials during business hours after reasonable prior
notice. In the case of a public emergency involving Company facilities, the Company
shall provide access to such Company facility location maps and drawings by City
February 26, 2013
City of Brookings
34
officials as expeditiously as possible even if outside business hours and without prior
notice.
(3) The City acknowledges and agrees that Company facility information delivered to the
City pursuant to this Ordinance is proprietary and confidential. The City shall restrict
access to Company facility information to those employees whose job duties require an
understanding of the gas facilities. The City shall not disclose or disseminate Company
facility information to any third parties without the express written consent of the
Company.
(4) The plans, maps and drawings delivered to or inspected by the City are for
informational purposes only and Company does not warrant the accuracy thereof. To
the extent the information delivered to the City identifies Company facilities, such
Company facilities are shown in an approximate location. Nothing herein is intended or
may be construed to relieve the City or any person with access to or in receipt of
Company facility information of their respective obligation under SDCL § 49-7A-5 to
determine the location of underground utilities.
(c) Construction, maintenance and operation of Company facilities.
(1) Except in an emergency situation, the Company shall obtain all necessary permits
before excavating City real property or the public rights-of-way area for the purpose of
constructing or maintaining Company facilities, which shall not be unreasonably
withheld or denied. If excavation is commenced without a permit due to an emergency
situation, the Company shall obtain all necessary permits as soon as commercially
reasonable after the emergency situation is resolved.
(2) The Company shall have the obligation under this Ordinance to maintain and operate its
facilities at all times in accordance with applicable industry standards. No City real property
or public rights-of-way area shall be obstructed longer than necessary during the Company’s
construction, maintenance and operations. 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 cause no damage to any City real
property or public rights-of-way area; however, if any such damage shall occur due to the
negligence of Company, the Company shall begin repair of the same as promptly as
possible. Upon ten (10) days written notice by the City to the Company of the repairs
required by the Company’s actions and failure by the Company to begin such repairs as
requested by the City, the City may make such repair of the City real property and public
rights-of-way area and the Company shall reimburse the City for all reasonable costs and
expenses incurred. Repairs and restoration by the City shall be limited to City real property
and the public rights-of-way area and this provision does not authorize any repair of
Company facilities. On notice from the City, the Company shall be responsible for correcting
or replacing, at its sole cost and expense, any defective work or Company facilities affecting
City real property or public rights-of-way area. Such corrections or replacements by the
Company shall be completed within the reasonable time specified by the City.
February 26, 2013
City of Brookings
35
(3) Upon not less than thirty (30) days prior written notice, the City, through its
authorized representative, may request that the Company relocate, protect, support,
disconnect, or remove Company facilities because of work to be otherwise performed
by the City for the construction, grading, reconstruction, maintenance or repair of a City
street or alley, or water, sewer or storm drainage lines. 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 circumstances which, through
no fault of the Company, delays the Company’s performance. 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, and shall as soon as reasonably possible (not to exceed 10
business days) 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 mutually agreed by the City and the Company.
(4) If the City vacates or consents to the vacation of a street or alley within the City
limits, and the City Manager determines that such vacation necessitates the removal
and/or relocation of Company facilities, 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
Company facilities if the vacation of a street or alley does not also require or make
necessary the removal or relocation. If relocation is requested, the Company shall
relocate its facilities to a reasonable alternative route mutually agreed by the City and
the Company.
(5) If the Company abandons a gas main after the effective date of this Ordinance and
such main restricts the City’s construction, grading, reconstruction, maintenance or
repair of a City street or alley, or water, sewer or storm drainage lines, upon request
from the City’s authorized representative and within a reasonable time after receipt
thereof, the Company shall remove the gas main, or shall take other action directed by
the City to allow for the completion of the restricted work. The Company will only be
obligated to remove the abandoned portion of the gas main necessary for the City to
complete the construction, grading, reconstruction, maintenance or repair. Such
removal or other action shall be at no cost to the City. All City real property or public
rights-of-way area affected by the Company’s removal of abandoned gas mains shall be
restored to its condition prior to the removal of the gas main by the Company. In the
event the Company fails to remove the abandoned gas main or perform the actions
requested by the City after a reasonable period, the City shall have the right to take such
actions and the Company shall pay the costs incurred by the City for such actions.
February 26, 2013
City of Brookings
36
(d) Obtain and maintain insurance.
(1) The Company shall self-insure or maintain, at its sole expense, during the entire term
of this Ordinance, general comprehensive liability insurance coverage for property
damage and bodily injury, including coverage for construction, operations,
maintenance, relocation, and repair. The Company may self-insure or maintain liability
insurance in such amounts as are consistent with applicable law and industry standards.
The Company shall provide to the City evidence of such insurance policy(ies) or self-
insurance upon request of the City; provided that the City shall not make such request
more frequently than annually. 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 has 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 Ordinance may be terminated at the sole discretion of the City.
(e) Reimburse the City for costs and expenses for proposed transfer of this Agreement. At the
City’s request, the Company shall reimburse the City for reasonable 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.
(f) File and maintain a local emergency response plan.
(1) The Company shall provide to the Brookings Fire Department those portions of its
emergency management plan applicable to the City.
(2) With respect to any construction of Company facilities subsequent to the date of this
Ordinance, the Company shall ensure, as of the date of completion of such construction
(but not thereafter), that Company service valves which can be used to shut off service
at the meter are accessible to authorized Fire Department personnel in time of an
emergency at no cost to the City. To the extent existing facilities are not so accessible
and any construction occurs concerning such existing facilities, the Company either shall
relocate or require the customer to relocate its inaccessible meter at no cost to the City.
Sec. 6. Term.
(a) Term of Ordinance. The term of the Ordinance is 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 Ordinance as
provided in Section 7 below.
February 26, 2013
City of Brookings
37
(b) Termination.
(1) If the Company fails to comply with any material provision of this Ordinance, 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, terminate this Ordinance; 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 shall reasonably 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
Ordinance 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 right to
terminate pursuant to this paragraph.
(2) Nothing in this Ordinance shall limit or restrict any legal rights that the City or the
Company may possess arising from any alleged violation of this Ordinance.
Sec. 7. General Conditions.
(a) Indemnification and hold harmless. The Company agrees to protect, hold harmless, and
indemnify the City (including its officials, 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
negligent act or negligent 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 written 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 reasonable 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.
(b) Exception. Notwithstanding Section 7(a) of this Ordinance, the Company shall not be
required to indemnify the City for negligence on the part of the City or its officials, agents,
contractors, 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, contractors, or
employees and for any such negligent acts committed by the Company in connection with
negligent action taken by the City and permitted by this Ordinance, on or adjacent to the
Company’s facilities.
February 26, 2013
City of Brookings
38
(c) No waiver. Neither the City nor the Company shall be excused from complying with any of
the terms and conditions of this Ordinance 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
Ordinance 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 Ordinance, 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. The rights granted Company pursuant to this
Ordinance may be assigned or transferred upon reasonable prior written notice to the City so
long as the assignee submits written confirmation of the assignee’s written acceptance of all
terms and conditions of the Agreement to the City. In the event of transfer or assignment in
whole or in part to secure indebtedness, submission of such written acceptance shall not be
required, but the Company shall provide notice of such assignment or transfer to the City within
thirty (30) days of the effective date of such assignment or transfer.
(g) Company as independent contractor. When performing under this Ordinance, 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 Ordinance.
No term or provision of this Ordinance, or act of the Company (or its employees, contractors, or
subcontractors), shall be construed as changing that status.
(h) Modification of the Ordinance. The City and the Company hereby reserve the right to alter,
amend or modify the terms and conditions of this Ordinance 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 to be in
writing under the terms of this Ordinance, shall be evidenced by receipt service of the
written notice and may be accomplished by facsimile, personal service, registered or
certified mail (postage prepaid), or reputable daytime or overnight courier service.
(2) Written notices shall be sent to the parties at the following addresses:
City:
City of Brookings
Attn: City Manager
P.O. Box 270
February 26, 2013
City of Brookings
39
Brookings, SD 57006
Tele: (605) 692-6281
Fax: (605) 692-6907
Company:
Northwestern Corporation
Attn: Area Manager
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 Ordinance 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 Ordinance within said period of
time shall be deemed a rejection of this Ordinance by the Company, and the rights and
privileges granted herein (after the designated timed period for filing acceptance) 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. 8. 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 Ordinance shall be deemed to exist
or to bind the parties hereto. The Ordinance may not be changed, modified, discharged, or
extended, except by written amendment, duly approved by the City if necessary and accepted
by the Company.
(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.
February 26, 2013
City of Brookings
40
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
written 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, 2013
Second Reading: January 22, 2013 TABLED
Second Reading: February 26, 2013
Published:
CITY OF BROOKINGS, SOUTH DAKOTA
Tim Reed, Mayor
ATTEST:
Shari Thornes, City Clerk
ACCEPTED: This Ordinance is accepted by Northwestern Corporation which agrees to be bound
by its terms and conditions.
NORTHWESTERN CORPORATION
Dated: By:
Its:
February 26, 2013
City of Brookings
42
Other Business
11. Action on Resolution No. 20-13, a Resolution extending the Agreement
between the City of Brookings and NorthWestern Corporation.
Resolution No. 20-13 will extend the terms of the current agreement between the City
of Brookings and NorthWestern Corporation until March 20, 2013. After which,
Ordinance No. 32-12 will be finalized.
Resolution No. 20-13
Resolution to Extend Northwestern Public Service Company Agreement
Whereas, The City of Brookings adopted Ordinance No. 29-92 on December 15, 1992, granting
to Northwestern Public Service Company, 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; and
Whereas, the term of Ordinance No. 29-92 was granted for a period of twenty years from the
31st day of December, 1992; and
Whereas, on December 4, 2012, the agreement was extended 60 days; and
Whereas, the terms of the renewal ordinance will not be finalized before the expiration date of
Ordinance No. 29-92; and
Therefore Be It Resolved, that the expiration date of Ordinance No. 29-92 be extended until
March 20, 2013.
Passed and approved this 26th day of February, 2013.
CITY OF BROOKINGS
____________________________________
Tim Reed, Mayor
ATTEST:
__________________________
Shari Thornes, City Clerk
City Manager Introduction
Action: Motion to Approve, Request Public Comment, Roll Call
Resolution No. 154-12
Resolution to Extend Northwestern Public Service Company Agreement
Whereas, The City of Brookings adopted Ordinance No. 29-92 on December 15, 1992,
granting to Northwestern Public Service Company, 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; and
Whereas, the term of Ordinance No. 29-92 was granted for a period of twenty years from the
15th day of December, 1992; and
Whereas, the terms of the renewal ordinance are under negotiation and will not be finalized
before the expiration date of Ordinance No. 29-92 on December 15, 20 12.
Therefore be it resolved, that the expiration date of Ordinance No. 29-92 be extended for 60
days.
Passed and approved this 4th day of December 20 12.
CITY OF BROOKINGS
Tim Reed, Mayor
February 26, 2013
City of Brookings
44
Other Business
12. Action to approve Downtown Brookings, Inc. 2013 Work Plan.
February 20, 2013
TO: Mayor and City Council Members
FROM: Jeff Weldon, City Manager
RE: 2013 Work Plan; Downtown Brookings, Inc.
Pursuant to previous City Council action during the budget adoption process, you
directed the 2013 appropriation to Downtown Brookings, Inc. (DBI) be held in abeyance
pending approval of a work plan by the City Manager and the City Council. The attached
document was discussed at the February 19th Council Study Session as part of the
operational presentations by entities which receive city funding, where DBI discussed
the document.
Consistent with the Council’s action, I have reviewed the document and am of the
opinion it warrants approval from the City sufficient to justify a partial disbursement.
The balance of the appropriation will be paid later during the year upon implementation
of the plan. I recommend Council approval of the DBI 2013 Work Plan.
City Manager Introduction
Action: Motion to Approve, Request Public Comment, Roll Call
February 26, 2013
City of Brookings
60
Other Business
13. Quarterly Financial Report from Brookings Health Systems.
Representatives of Brookings Health Systems will provide the City Council and public
with a financial report and update on current and pending issues.
Informational
BROOKINGS HEALTH SYSTEM
Brookings Health System
Brookings City Council Meeting
February 26, 2013
BROOKINGS HEALTH SYSTEM
The Neighborhoods at Brookview
BROOKINGS HEALTH SYSTEM
Master Campus Plan
- BVM Demolition
- BHS Financial
Analysis
- Phase III/IV
•Pharmacy
•Lobby
•Registration
•Radiology
•Surgery
•Medical / Surgical
Nursing Unit
2008
BROOKINGS HEALTH SYSTEM
Robotics
BROOKINGS HEALTH SYSTEM
Transparency
•TeamShare
•Patient Satisfaction
–My Innerview
–NRC Picker
BROOKINGS HEALTH SYSTEM
HCAHPS – Getting to Always
HCAHPS Results
4Q11 – 4 Q12
BROOKINGS HEALTH SYSTEM
Brookings Health System
Financials
Fiscal Year 2012 (December)
BROOKINGS HEALTH SYSTEM
UNAUDITED
Period Ending Date 12/31/2012 12/31/2011 12/31/2010 12/31/2009
FINANCIAL STATEMENT
Inpatient Revenue $24,340,669 $21,508,156 $18,611,021 $19,160,804
Outpatient Revenue $43,918,109 $36,078,826 $33,885,081 $30,578,235
GROSS Patient Revenue $68,258,778 $57,586,982 $52,496,102 $49,739,039
Contractual Discounts and Charity -$30,028,958 -$24,994,214 -$22,464,725 -$19,524,124
NET Patient Revenue $38,229,820 $32,592,768 $30,031,377 $30,214,915
Other Revenue $2,061,867 $614,033 $602,912 $553,190
(Cafeteria, Brookhaven, Rented Space)
TOTAL Operating Expenses -$36,277,658 -$31,719,055 -$30,377,017 -$29,827,107
OPERATING INCOME $4,014,029 $1,487,746 $257,272 $940,998
Income from Investments, Grants and Other $376,048 $565,815 $154,059 $358,894
Distribution to Joint Partners -$602,106 -$527,497 -$332,835 -$326,397
TOTAL Non-Patient Revenue -$226,058 $38,318 -$178,776 $32,497
NET INCOME $3,787,971 $1,526,064 $78,496 $973,495
February 26, 2013
City of Brookings
69
Other Business
14. Action to approve Resolution No. 21-13, a Resolution Authorizing
Prepayment and Refunding of a Portion of a Lease Agreement; Approving
the Execution of a Second Lease Agreement 2013A and an Amended and
Restated Irrevocable Declaration of Trust by First Bank and Trust, as
Trustee; Providing for the Execution, Sale and Delivery of not to exceed
$5,000,000 Aggregate Original Amount of Refunding Certificates of
Participation Series 2013A in the Lease-Purchase Agreement 2013A
Pursuant to a Certificate Purchase Agreement and the Application of the
Proceeds Thereof to prepay a Portion of the Lease Agreement and
Authorizing and Approving other Actions and Agreements necessary to
Consummate the Contemplated Improvement and Financing.
City Manager Introduction
Action: Motion to Approve, Request Public Comment, Roll Call
110 SOUTH PHILLIPS AVENUE • SUITE 203 • SIOUX FALLS, SOUTH DAKOTA 57104.6727
605.339.9800 • 800.339.1111
MEMBER SIPC & FINRA
To: Jeff Weldon, City Manager - Brookings
From: Toby Morris, Dougherty & Company
Date: February 20, 2013
Re: Authorizing Resolution to Refinance Hospital Debt
The following is an overview and definition to give better explanation and clarification of the
proposed resolution that the City Council will consider on February 26th, 2013. In order for this
memo to make sense, I am first including some language regarding Bank Qualified (BQ) Bonds,
for this will hopefully shed some light on the purpose of the resolution:
Banks, like other investors, purchase municipal bonds in order to obtain the benefit of
earning interest that is exempt from Federal income taxation. Historically, commercial
banks were the major purchasers of tax-exempt bonds. Banks' demand for municipal
bonds changed in 1986 with the passage of the Tax Reform Act of 1986 (the "Act"), now
under section 265(b) of the Internal Revenue Code of 1986, as amended (the "Code").
Under the Code, banks may not deduct the carrying cost (the interest expense incurred
to purchase or carry an inventory of securities) of tax-exempt municipal bonds. For
banks, this provision has the effect of eliminating the tax-exempt benefit of municipal
bonds. An exception is included in the Code that allows banks to deduct 80% of the
carrying cost of a "qualified tax-exempt obligation." In order for bonds to be qualified tax-
exempt obligations the bonds must be (i) issued by a "qualified small issuer," (ii) issued
for public purposes, and (iii) designated as qualified tax-exempt obligations. A "qualified
small issuer" is (with respect to bonds issued during any calendar year) an issuer that
issues no more than $10 million of tax-exempt bonds during the calendar year.
Qualified tax-exempt obligations are commonly referred to as "bank qualified bonds."
Effectively two types of municipal bonds were created under the Act; bank qualified
(sometimes referred to as "BQ") and non-bank qualified. Although banks may purchase
non-bank qualified bonds they seldom do so. The rate they would require in order for
the investment to be profitable would approach the rate of taxable bonds. As a result,
issuers obtain lower rates by selling bonds to investors that realize the tax-exempt
benefit. In contrast, banks have a strong appetite for bank qualified bonds that are in
limited supply. As a result, bank qualified bonds carry a lower rate than non-bank
qualified bonds.
Background:
In 2012 the Brookings City Hospital broke ground on a new skilled nursing facility to replace the
aging Brookview Manor nursing home. The new facility will include 79 skilled nursing beds
designed under the social model concept with three distinct “neighborhoods.” The total project
costs were estimated at approximately $15M, of which the Hospital borrowed $10M which was
not designated as BQ.
In addition to the Hospital project, BMU borrowed approximately $30M from the State of South
Dakota through DENR’s SRF fund. In total, the City of Brookings borrowed close to $40M,
thus exceeding the $10M yearly cap required to achieve the BQ status.
In 2012 Dougherty and Company worked with both enterprises for the debt issuance; so we
structured the following language for the Hospital debt to ensure that the lowest possible interest
rate could be achieved for a fixed period of time. The following is language that was negotiated
with a local bank for the Hospital financing
Tax-exempt Non-Bank Qualified Rate:
For the first 3 years the interest rate will be fixed at 3.98%. The Hospital will have 3 years to
convert this rate to BQ status. Once BQ status is achieved, the interest rate will drop to 3.31%
and be fixed for 15 years. (the conversion could take place at one time or in two or more
segments). Should the allocation not become available within the next 3 years, the 3.98% will
expire and the Hospital will be subject to market rates at the end of the three year period.
This language provided the Hospital flexibility in achieving the BQ status. Working with all
entities, (City of Brookings / BMU / Hospital) we then identified all future borrowing plans and
the timing of when the funding may happen. It was determined that in calendar year 2013 and
2014 there would be very limited borrowing from all entities, and converting the Hospital debt to
BQ status could be achieved.
Items of Importance:
- Non BQ Bonds can be refinanced into BQ bonds, if the allocation is available.
o The refinancing does not increase or decrease the debt, rather it is an IRS
designation
- The Hospital debt is not classified as Constitutional Debt, same as before.
- This refinancing or reclassification will save in interest expense.
- The authorizing resolution allows for up to $10M in 2013, but right now we will only
convert $5M. The remainder will convert in 2013 if there is not a need from the City.
I will be present at the meeting on the 26th and can further answer any question you or the
council may have. In the meantime, please do not hesitate to call for this can be a complicated
subject.
February 26, 2013
City of Brookings
72
Resolution No. 21-13
Authorizing Prepayment And Refunding Of A Portion Of A Lease Agreement;
Approving The Execution Of A Second Lease Agreement 2013A And An
Amended And Restated Irrevocable Declaration Of Trust By First Bank And
Trust, As Trustee; Providing For The Execution, Sale And Delivery Of Not To
Exceed $5,000,000 Aggregate Original Amount Of Refunding Certificates Of
Participation Series 2013A In The Lease-Purchase Agreement 2013A
Pursuant To A Certificate Purchase Agreement And The Application Of The
Proceeds Thereof To Prepay A Portion Of The Lease Agreement And
Authorizing And Approving Other Actions And Agreements Necessary To
Consummate The Contemplated Improvement And Financing
Whereas, the City of Brookings (the "City") pursuant to Resolution No. 112-12 into a Ground
Lease, Lease Agreement and Declaration of Trust, as the terms are defined therein, all dated
October 1, 2012; and
Whereas, it is declared necessary pursuant to and in accordance with SDCL §§ 6-8B-30 through
6-8B-52 that the City refund and prepay a portion of the Lease Agreement and enter into an
Second Lease Agreement 2013A (the "Second Lease Agreement") and Amended and Restated
Declaration of Trust ("Amended Declaration of Trust") in order to save the City debt service on
the Lease Agreement.
Now, Therefore, Be It Resolved by the City Council of the City of Brookings as follows:
Section 1. Authorization and Approval of Transactions. Subject to the terms and conditions set
forth herein, the City hereby (i) authorizes the prepayment and refunding of $5,000,000 of the
Lease Agreement, (ii) authorizes the Second Lease Agreement 2013A on an annual
appropriation basis for an initial lease term and renewal terms not to exceed in the aggregate
30 years, and (iii) approves the Trustee's execution of the Amended and Restated Declaration
of Trust, (iv) approves the Trustee's execution and delivery of Certificates of Participation in the
Second Lease Agreement 2013A (the 2013A Certificates) payable as to principal in an aggregate
original amount not exceeding $5,000,000, to the First Bank and Trust ( the "Purchaser")
pursuant to the Amended and Restated Declaration of Trust and a Certificate Purchase
Agreement between the City and the Purchaser (the "Certificate Purchase Agreement") and the
use of the proceeds thereof to partially prepay and refund the Lease Agreement, and to pay the
expenses incurred in connection with the execution and delivery of the Certificates. The
Second Lease Agreement 2013A and the Certificates of Participation, Series 2013A are
designated as qualified tax-exempt obligations under the Internal Revenue Code and
regulations.
Section 2. Approval of Documents. The City hereby approves (i) the Amended and Restated
Declaration of Trust, (ii) the Second Lease Agreement 2013A, and (iii) the Certificate Purchase
Agreement, in substantially the respective forms thereof presented at this meeting.
February 26, 2013
City of Brookings
73
Section 3. Certificates of Participation. The 2013A Certificates shall be executed and delivered
in fully-registered form, shall be dated and numbered, shall be payable as to principal in the
denominations of $5,000 and integral multiples thereof and in such amounts (not exceeding in
the aggregate $10,000,000) and on such dates (not later than thirty years), shall be payable as
to interest at such rate or rates to be negotiated by the Authorized Officer and shall be subject
to prepayment upon such terms and conditions, in such amounts and on such dates as may be
specified in the Declaration of Trust and in the executed Certificate Purchase Agreement. The
Mayor, the Clerk and the Finance Manager (each an "Authorized Officer") of the City are hereby
authorized and empowered for and on behalf of the City to approve the Certificate Purchase
Agreement, his or her execution and delivery thereof to evidence conclusively the City’s
approval thereof.
Section 4. Execution and Delivery of Documents. Each Authorized Officer of the City is
authorized and empowered for and on behalf of the City to execute and deliver (i) Second Lease
Agreement 2013A, in substantially the respective forms thereof presented at this meeting or
with such changes therein and modifications thereto as may be approved by the Authorized
Officer executing and delivering the same on behalf of the City, such execution and delivery to
evidence conclusively such approval.
Section 5. Bond Counsel. The City hereby selects Meierhenry Sargent LLP to provide bond
counsel services with respect to the execution and delivery of the Certificates as is necessary in
order to accomplish the purposes of this Resolution. Any contracts for the provision of such
services shall be executed by an Authorized Officer, and the execution of such contracts shall
represent approval by the City of the terms of such contracts. The fees, costs and expenses
with respect to the foregoing shall be paid from the proceeds of the sale of the Certificates or
any other legally available moneys.
Section 6. Miscellaneous. Each Authorized Officer and any other agent or employee of the City
is hereby authorized and empowered to take such other actions and execute and deliver such
other instruments and agreements, including appropriate tax certifications and other closing
certificates, as may be necessary or appropriate for the purposes of consummating the
transactions contemplated herein, the necessity therefor and the appropriateness thereof to be
evidenced conclusively by any such Authorized Officer's taking any such action or executing and
delivering any such instrument, agreement or certificate and all actions taken heretofore and
hereafter pursuant to the authority hereof are hereby authorized, ratified and approved for and
as the actions of the City.
Passed and approved this 26th day of February, 2013.
CITY OF BROOKINGS, SD
ATTEST: Tim Reed, Mayor
Shari Thornes, City Clerk
February 26, 2013
City of Brookings
74
Resolution No. 21-13
Authorizing The Constructionprepayment and Equippingrefunding of Certain
Improvements to the Hospital Pursuant to a Portion of a Lease Agreement;
Approving the Execution of Ana Second Lease Agreement 2013A and an
Amended and Restated Irrevocable Declaration of Trust by First Bank and
Trust, as Trustee; Providing for the Execution, Sale and Delivery of Not to
Exceed $10,000,0005,000,000 Aggregate Original Amount of Refunding
Certificates of Participation Series 2013A in the Lease-Purchase Agreement
2013A Pursuant to a Certificate Purchase Agreement and the Application of
the Proceeds Thereof to Construct and Equip Improvements to the Hospital
and Design and Develop Improvements to Adjacent Property; Approving and
Authorizingprepay a Ground Leaseportion of the Hospital to First Bank and
Trust, as Trustee;Lease Agreement and Authorizing and Approving other
Actions and Agreements Necessary to Consummate the Contemplated
Improvement and Financing
Whereas, the City of Brookings (the "City") is a duly organized South Dakota municipality with
the power to establish, construct, purchase, and maintain hospitals, medical clinics, nursing
facilities and homes for the aged (collectively the “Hospital”); andpursuant to Resolution No.
112-12 into a Ground Lease, Lease Agreement and Declaration of Trust, as the terms are
defined therein, all dated October 1, 2012; and
Whereas, the City has the power pursuant to SDCL Chapters 34-9 and 9-12 to lease and lease-
purchase real and personal property; and
Whereas, it is the opinion of the City Council that the City would be best served by entering into
a ground lease and lease; and
Whereas, it is declared necessary that apursuant to and in accordance with SDCL §§ 6-8B-30
through 6-8B-52 that the City refund and prepay a portion of the Lease Agreement and enter
into an Second Lease Agreement 2013A (the "Second Lease Agreement") and Amended and
Restated Declaration of Trust (the "Amended Declaration of Trust") be executed by First Bank
and Trust, as Trustee (the “Trustee”) for the purpose of financing 79 skilled nursing beds
designed in a social model concept with three distinct neighborhoods (the “Project”).in order to
save the City debt service on the Lease Agreement.
Whereas, the City desires to improve the Hospital and for such purpose intends to enter into a
Ground Lease with the City as lessor and the Trustee as lessee (the “Ground Lease”), Lease
Agreement with the Trustee as lessor and the City as lessee (“the Lease Agreement”) and
Certificates of Participation, Series 2012 (the “Certificates”) payable as to principal in the
aggregate original amount not to exceed $10,000,000 evidencing proportionate interests of the
owners in the Lease Agreement;
February 26, 2013
City of Brookings
75
Whereas, the proceeds of the Certificates will be used to construct and equip improvements to
the Hospital, including construction of a new skilled nursing facility.
Now, Therefore, Be It Resolved by the City Council of the City of Brookings as follows:
Section 1. Authorization and Approval of Transactions. Subject to the terms and conditions set
forth herein, the City hereby (i) authorizes the City’s lease of the Property, hereafter defined, to
the Trustee for a period not to exceed 40 years pursuant to the Groundprepayment and
refunding of $5,000,000 of the Lease Agreement, (ii) authorizes the City's lease of the Property
from the Trustee pursuant to theSecond Lease Agreement 2013A on an annual appropriation
basis for an initial lease term and renewal terms not to exceed in the aggregate 30 years, and
(iii) approves the Trustee's execution of the Amended and Restated Declaration of Trust, (iv)
approves the Trustee's execution and delivery of the 2012 Certificates, of Participation in the
Second Lease Agreement 2013A (the 2013A Certificates) payable as to principal in an aggregate
original amount not exceeding $10,000,0005,000,000, to the First Bank and Trust ( the
"Purchaser") pursuant to the Amended and Restated Declaration of Trust and a Certificate
Purchase Agreement between the City and the Purchaser (the "Certificate Purchase
Agreement") and the use of the proceeds thereof to finance the construction and equipping of
improvements to the Projectpartially prepay and refund the Lease Agreement, and to pay the
expenses incurred in connection with the execution and delivery of the Certificates. The
Second Lease Agreement 2013A and the Certificates of Participation, Series 2013A are
designated as qualified tax-exempt obligations under the Internal Revenue Code and
regulations.
Section 2. Approval of Documents. The City hereby approves (i) the Amended and Restated
Declaration of Trust, (ii) the Ground Lease, (iii) theSecond Lease Agreement 2013A, and (iviii)
the Certificate Purchase Agreement, in substantially the respective forms thereof presented at
this meeting. The Authorized Officer may approve the entire legal description or a partial legal
description of the current site of the Hospital located in the City (the “Property”).
Section 3. Certificates of Participation. The 2013A Certificates shall be executed and delivered
in fully-registered form, shall be dated and numbered, shall be payable as to principal in the
denominations of $5,000 and integral multiples thereof and in such amounts (not exceeding in
the aggregate $10,000,000) and on such dates (not later than thirty years), shall be payable as
to interest at such rate or rates to be negotiated by the Authorized Officer and shall be subject
to prepayment upon such terms and conditions, in such amounts and on such dates as may be
specified in the Declaration of Trust and in the executed Certificate Purchase Agreement. The
Mayor, the Clerk and the Finance Manager (each an "Authorized Officer") of the City are hereby
authorized and empowered for and on behalf of the City to approve the Certificate Purchase
Agreement, his or her execution and delivery thereof to evidence conclusively the City’s
approval thereof.
Section 4. Execution and Delivery of Documents. Each Authorized Officer of the City is
authorized and empowered for and on behalf of the City to execute and deliver (i) the Ground
Lease and (ii) theSecond Lease Agreement 2013A, in substantially the respective forms thereof
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presented at this meeting or with such changes therein and modifications thereto as may be
approved by the Authorized Officer executing and delivering the same on behalf of the City,
such execution and delivery to evidence conclusively such approval.
Section 5. Financial Advisor and Bond Counsel. The City hereby selects Dougherty & Company
LLC to provide financial professional services and Meierhenry Sargent LLP to provide bond
counsel services with respect to the execution and delivery of the Certificates as is necessary in
order to accomplish the purposes of this Resolution. Any contracts for the provision of such
services shall be executed by an Authorized Officer, and the execution of such contracts shall
represent approval by the City of the terms of such contracts. The fees, costs and expenses
with respect to the foregoing shall be paid from the proceeds of the sale of the Certificates or
any other legally available moneys.
Section 6. Miscellaneous. Each Authorized Officer and any other agent or employee of the City
is hereby authorized and empowered to take such other actions and execute and deliver such
other instruments and agreements, including appropriate tax certifications and other closing
certificates, as may be necessary or appropriate for the purposes of consummating the
transactions contemplated herein, the necessity therefor and the appropriateness thereof to be
evidenced conclusively by any such Authorized Officer's taking any such action or executing and
delivering any such instrument, agreement or certificate and all actions taken heretofore and
hereafter pursuant to the authority hereof are hereby authorized, ratified and approved for and
as the actions of the City.
Passed, Adopted and Approved this day of August 2012 February, 2013.
CITY OF BROOKINGS, SD
Tim Reed, Mayor
ATTEST:
Shari Thornes, City Clerk
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Other Business
15. Action to approve District Transportation/Utility Development Plan for
South Main Avenue (South Main Avenue from 20th Street to 32nd Street).
February 19, 2013
TO: Mayor and City Council Members
FROM: City Manager Jeff Weldon
RE: Project Scoping Document: South Main Development Project
Attached is a staff memo which outlines the scope of the proposed South Main Avenue
Infrastructure Development project. As you know, improvements are needed to County
Highway 77 (Main Avenue) south of 20th Street South to provide for the next major area
of commercial and residential development for the City of Brookings. Prairie Hills and
Christie Springs are the two primary subdivisions which will need such infrastructure,
even though the initial phases of both can be serviced from existing utilities in 20th
Street.
The Brookings School District will be intensifying their plans for a K-3 elementary school
south of Christie Springs and will need such utility and road improvements. Now that
we have acquired three acres for a future fire station, this site will need utilities as well.
Future development further south is speculative at this point, but there could be future
benefit.
The schedule described in the memo prescribes design work this year with construction
next year. If we are to avail ourselves to certain state funding opportunities, the
timeframe is as tight as it is aggressive. As an alternative, we could undertake a
deliberately slower schedule with design in 2013 and 2014 but schedule construction in
2015. A project this complex with a multitude of procedural steps, not which the least
are some major policy questions regarding assessments, may warrant taking a little
more time. This is a policy consideration we should discuss.
This item is consistent with Strategic Plan Item #5, which was formally adopted by the
City Council at the last meeting. The staff memo was prepared and researched by
Community Development Director Mike Struck with assistance from City Engineer Jackie
Lanning.
City Manager Introduction
Action: Motion to Approve, Request Public Comment, Roll Call
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TO: Mayor and City Council Members
Jeff Weldon, City Manager
From: Mike Struck, Community Development Director
Re: Main Avenue South Infrastructure Project
I. Project Description
The Main Avenue South Infrastructure Project is primarily driven by the lack of sanitary
sewer serving future growth areas south of 20th Street South. The issue is the existing
gravity sanitary sewer is not adequate to serve areas beyond 900 feet south of 20th Street
South. Resolving the sanitary sewer issues will require routing at a depth capable of
aligning with the existing sanitary sewer on 40th Street South. Two alternatives are being
evaluated to determine the most feasible option for providing sanitary sewer services. The
alternatives are to install the sanitary sewer in Main Avenue South right of way or route the
sewer through the Prairie Hills Subdivision. Each alternative is described in more detail.
Main Avenue South Sanitary Sewer Route:
The Main Avenue South Infrastructure Project involves the installation of sanitary sewer,
water main, street improvements, storm sewer improvements, and traffic signalization.
Depth of the existing gravity sanitary sewer in 20th Street South is inadequate to serve a
majority of the undeveloped areas south of 20th Street South. The sanitary sewer
interceptor line is proposed to run along Main Avenue beginning approximately 900 feet
south of 20th Street South and extending 7,500 feet south to 40th Street South. The sanitary
sewer line will connect with an existing 30” sanitary sewer line which flows southwest to
the wastewater treatment facility.
In order to maintain correct sanitary sewer elevations, it is proposed that the project would
begin at the 40th Street South connection and work northward to ensure gravity flow is
continuously maintained. The sanitary sewer is proposed to be installed along the existing
shoulder area of Main Avenue South; however, due to the required depths and safety
requirements, a portion of Main Avenue South will be trenched and repaired. The proposal
would be to rebuild Main Avenue South to a three lane arterial with curb and gutter.
Offsetting the alignment provides value as when traffic volumes dictate expanding the
street to five lanes, only the curb and gutter on one side of the street will need to be
removed. In addition, offsetting the alignment will provide a hard surface over the sanitary
sewer line which is consistent with Brookings Municipal Utilities policy. Alternatives are
under review concerning the length of the three lane arterial. One alternative is to
construct a three lane arterial from 20th Street South to 32nd Street South. Another option
is to construct a three lane street section from 20th Street South to the future 26th Street
South alignment. The three lane street profile will be necessary as the future 26th Street
South will provide access to the site of a future elementary school. Beyond 32nd Street
South, the street will be repaired to current conditions as this segment of Main Avenue
South is outside city limits and under the current jurisdiction of Brookings County.
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Another component of the infrastructure project is the installation of approximately 5,400
feet of water main. Coordinating the installation of the water main along with the sanitary
sewer and street repairs will reduce delays associated with multiple construction schedules
over several years, prevent unnecessary street repairs, and reduce the traffic disturbances
associated with multiple construction projects. The water main will allow development to
proceed when ready rather than waiting on adjacent development to occur. The size of the
proposed water main is in anticipation of providing adequate flow for fire protection
services.
The final component of this infrastructure project is the lowering of the hill on Main Avenue
South. In order to obtain proper grade for the sanitary sewer line, a trench approximately
30 – 40 feet deep would need to be made through the hill. Safety standards for performing
such utility work would virtually require a side slope cut that would remove almost the
entire section of Main Avenue South. The alignment of future 26th Street South would be
near the crest of the hill on Main Avenue South and the current road elevation is a safety
concern with the volume and speed of traffic. Lowering the hill will improve safety at this
future intersection of 26th Street South as sight lines will be enhanced.
Prairie Hills Sanitary Sewer Route Alternative:
The Prairie Hills Subdivision routing of the sanitary sewer would follow proposed streets
within the subdivision leading around the east end of the hill and proceeding westward
towards Main Avenue. The sanitary sewer would follow Main Avenue north of 32nd Street
South and continue south to 40th Street South. This alternative will provide sewer capacity
to both sides of Main Avenue and will avoid a lengthy, deep cut through the hill.
This sanitary sewer route avoids major disruption to Main Avenue South associated with
cutting through the hill. There will still be patching of the road at connections across Main
Avenue as well as some reconstruction generally associated with the area south of 32nd
Street. This alternative reduces the initial total project cost by not incorporating the
reconstruction of Main Avenue from 20th Street to 32nd Street into a three-lane arterial.
The disadvantage to this alternative is some parcels could be stranded until adjacent
infrastructure development is installed to the property line. In addition, properties on the
west side may experience higher infrastructure costs associated with running sanitary sewer
lines to connection points dictated by development on the east side of Main Avenue.
II. Revenue Sources
The complexity of this project is evident in the potential financing package. An easy method
to portray the financing plan is to match the sources and use of funds. A combination of
revenue sources will be explored for potential financing as certain sources will only cover
certain portions of the project based upon lending regulations. For example, the State
Revolving Fund (SRF) is a loan program administered through DENR, however, eligible
expenses are associated with construction activities directly related to the installation of
sanitary and storm sewer. Therefore, the SRF funds would be eligible to pay for a portion of
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the road restoration above these sanitary and storm sewer improvements. However, the
water main improvements are not eligible expenses under the Clean Water SRF program
and therefore, will need to be financed solely by the City or BMU.
Another revenue source under consideration is tax increment financing. A tax increment
financing district could be created, whereby; the tax increment would be utilized to
reimburse the City for expenses secured by 2nd Penny Sales Tax. The complexity of a tax
increment district is compounded due to improvements outside city limits. One possibility
may be to utilize tax increment for the improvements south of 32nd Street South as well as
road improvements.
Source Use
Assessment, City or BMU Water
SRF, Assessment, TIF Sewer
SRF, City (2nd Penny or Drainage Fund) Storm Sewer
State Aid Allocation, TIF, SRF, 2nd Penny Road
III. Assessment
The South Dakota Legislature acknowledges the need for municipalities to recover costs
associated with infrastructure improvements by providing the means to recover these costs
by assessment. Historically, the assessment process has involved assigning costs to abutting
property on a per lineal front foot basis. Recent changes in state law have provided further
guidance on a less often utilized methodology, the benefits received method. Generally
speaking, the benefits received method distributes the costs of such improvements to the
beneficiaries of the improvements. This is an important concept as the infrastructure
improvements associated with the Main Avenue South project are consistent with the
general intent of the benefits received statutes.
There are two components of the overall assessment portion of the Main Avenue South
project; improvements south of 32nd Avenue South and improvements north of 32nd Avenue
South. Without the first improvements, the latter will not function properly. It is
imperative sanitary sewer improvements on the south leg of the project are completed to
ensure a gravity flow system. However, a key element of the southern improvements is the
adjacent property owners may not benefit from the sanitary sewer as the properties are
either already served by a regional sanitary sewer collection system or have private systems
serving their needs.
It is important we determine who benefits from the sanitary sewer collection system
improvements and apply those costs accordingly to the beneficiaries. The area of concern
pertains to the properties south of 32nd Street South and an alternative for reimbursement
of these improvements may be a connection charge. Staff anticipates utilizing the
consulting engineer to assist in determining the benefits received methodology as well as
addressing the issue of the stranded costs on the southern portion of these improvements.
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It is imperative we address the assessment methodology to alleviate any potential legal
challenges to the assessment procedures.
IV. Proposed Schedule
The proposed schedule for this infrastructure project anticipates completing the work in
one construction season. The financing package involves utilizing the Clean Water State
Revolving Loan Fund (SRF) and as such, requires submitting a State Water Plan Application
prior to requesting SRF funding. Preliminary design and cost estimates will be necessary for
completion of these applications. In order to accomplish this construction timeframe, the
following action items will need to be completed according to the dates provided.
Request for Proposals initiated March 1, 2013
State Water Plan Application Due May 1, 2013
SRF Application Due July 1, 2013
BWNR SRF Funding Approval September 2013
Closing on SRF Loan Oct. - Nov. 2013
Plans & Specs – DENR Dec. 2013 - Jan. 2014
Bid/Award Feb. 2014
Construction April – Nov. 2014
V. Engineering
The City Engineering Department will be drafting a Request for Proposals for engineering
services in the design and construction of the project. City and BMU staff recommends
contracting for engineering services as a time saving measure based upon previous
experience with a public/private engineering project resulting in delays associated with
design review as one change has the potential to affect other design components.
Main Avenue South Sanitary Sewer Route
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Prairie Hills Sanitary Sewer Route
VI. Next Steps
If directed by the City Council, City staff will proceed with issuing a Request for Proposals for
engineering services to design the project. City staff will also refine project costs and
proceed with applying for SRF funding from the SDDENR.
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Other Business
16. 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.
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17. Adjourn.