The URL can be used to link to this page

Home My WebLink About2011_01_25 CC PKT Brookings City Council Tuesday, January 25, 2011 City Hall Council Chambers 311 Third Avenue 5:00 p.m. Work Session 6:00 p.m. Regular Meeting The City of Brookings is committed to providing a high quality of life for its citizens and fostering a diverse economic base through innovative thinking, strategic planning, and proactive, fiscally responsible municipal management. 5:00 p.m. WORK SESSION Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 1. Brookings Municipal Utilities Funds Overview 2. City Council Member Ex-Officio Reports 3. Joint Powers Board members’ Report 4. City Council member introduction of topics for future discussion* 5. Council Invites & Obligations *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 starting the issue, requested outcome, and time. A majority vote is required. 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 on a request from Mt. Calvary Lutheran Church to abate real estate taxes for a portion of 2010 in the amount of $1,143.90 for property located at S 100’ Lots 6- 7, Block 2, Morehouse Addition, Parcel #40365-00200-006-00. D. Action on a request from SDSU to abate real estate taxes for a portion of 2010 in the amount of $1,011.00 for property located at W 85’ of Lots 1-2-3, Block 1, Wheatons Addition, Parcel #40665-00100-001-00. E. Action on Resolution No. 02-11 Declaring Surplus Property: one (1) 1990 SnoGo MP-3D Snow Blower, Serial Number 3450. F. Action on Resolution No. 03-11 Declaring Surplus Property: one (1) 1994 Caterpillar 140G Motorgrader, Serial Number 08Z81984, one (1) Snow Wing, Serial Number 14004C2. G. Action on Resolution No. 04-11, a Resolution Designating Mayor as Certifying Officer for ICAP Self-Help Homeownership Opportunity Program. Action: Motion to Approve, Request Public Comment, Roll Call 1 *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: 5. Presentation of the Annual Dr. Martin Luther King, Jr. Day Awards 6. Open Forum 7. SDSU Student Senate Report 8. Swiftel Center Financial Reports Contract Awards / Change Orders 9. Action on Resolution No. 05-11: Awarding bid on Landfill Skid Steer Loader. Action: Motion to Approve, Request Public Comment, Roll Call 10. Action on Resolution No. 06-11: Awarding bid on Landfill Automated Garbage Truck. Action: Motion to Approve, Request Public Comment, Roll Call 11. Action on Resolution No. 10-11: A Resolution Authorizing Change Order No. 2 (CCO#2) for 2009-05STI, SDSU Innovation Campus Infrastructure Project, Phase 2, Bowes Construction, Inc. Action: Motion to Approve, Request Public Comment, Roll Call Second Readings / Public Hearings 12. Public hearing and action on Resolution No. 11-11, a Resolution of Intent to Lease Real Property (Wiese and Freeland Addition). Action: Open & Close Public Hearing, Motion to Approve, Roll Call 13. Public hearing and action on Resolution No. 12-11, a Resolution of Intent to Lease Real Property (Harrison Thompson). Action: Open & Close Public Hearing, Motion to Approve, Roll Call 14. Public hearing and action on Resolution No. 13-11, a Resolution of Intent to Lease Real Property (Paul Moriarty). Action: Open & Close Public Hearing, Motion to Approve, Roll Call 15. Public hearing and action on Resolution No. 14-11, a Resolution of Intent to Lease Real Property (SDSU). Action: Open & Close Public Hearing, Motion to Approve, Roll Call 16. Public hearing and action on Resolution No. 15-11, a Resolution of Intent to Lease Real Property (Advance). Action: Open & Close Public Hearing, Motion to Approve, Roll Call 2 3 Alcohol Licenses 17. Public hearing and action on an Off-Sale Malt License for the Fireside Restaurant & Lounge, 2515 E. 6th Street (Lot 12, Telkamp Addition). Action: Open & Close Public Hearing, Motion to Approve, Roll Call Other Business 18. Action on Resolution No. 07-11, an amendment to the City of Brookings Investment Policy. Action: Motion to Approve, Request Public Comment, Roll Call 19. Action on Resolution No. 08-11, an amendment to the City of Brookings Capital Assets Policy. Action: Motion to Approve, Request Public Comment, Roll Call 20. Action on Resolution No. 09-11, establishing a Naming Rights Policy for the City of Brookings. Action: Motion to Approve, Request Public Comment, Roll Call 21. Adjourn. Brookings City Council Tim Reed, Mayor Mike Bartley, Deputy Mayor & Council Member Council Members Tom Bezdichek, John Kubal, Mike McClemans, Jael Thorpe, Keith Corbett 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 @ 1pm Thursday @ 7 pm Friday @ 9 pm Saturday @ 1 pm The complete City Council agenda packet is available on the city website: www.cityofbrookings.org If you require assistance, alternative formats, and/or accessible locations consistent with the Americans with Disabilities Act, please contact Shari Thornes, City ADA Coordinator, at 692-6281 at least 3 working days prior to the meeting. City Council Packet January 25, 2011 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 1. Brookings Municipal Utilities Funds Overview Steve Meyer, Executive Vice-President/General Manager of Brookings Municipal Utilities, requested an opportunity to provide the City Council with an overview of all Utilities funds. Estimated Time: 45 minutes 4 City Council Packet January 25, 2011 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 2. City Council Member Ex-Officio Reports. Pursuant to council direction, “City Council Member Ex-Officio Reports” will be a standing agenda item at all Council Work Sessions. The Council Members that serve as Ex-Officio members on the Brookings Health System Board of Trustees and Utility Board will provide verbal reports regarding recent meetings they have attended. Brookings Municipal Utility Board: 1. Council Member Bezdichek 2. Council Member Corbett Brookings Health Systems Board: 1. Council Member Kubal 2. Council Member McClemans 5 City Council Packet January 25, 2011 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 3. Joint Powers Board Council Member’s Report. Pursuant to council direction, “Joint Powers Board City Member Updates” will be a standing agenda item at all Council Work Sessions. The Council Members serving on the Joint Powers Board will provide verbal updates regarding recent meetings they have attended. Mayor Tim Reed & Council Member Kubal 6 City Council Packet January 25, 2011 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 4. 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 starting the issue, requested outcome, and time. A majority vote is required. 7 City Council Packet January 25, 2011 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 5. Council Invites & Obligations. Date Day Event & Brief Description Time Location / Town / Address / Directions January 26 Wednesday Daugaard Luncheon 12-1:30 p.m. February 1 Tuesday Rib Dinner with your Legislator Pierre, SD February 2 Wednesday Municipal Government Day Pierre, SD February 2 Wednesday Mtg with Leadership Team 5:30 p.m. Swiftel Center February 3 Thursday City Council Goal Setting Retreat 8:30 a.m. Swiftel Center February 8 Tuesday Council Meeting 5:00 p.m. Council Chambers February 22 Tuesday Council Meeting 5:00 p.m. Council Chambers March 8 Tuesday Council Meeting 5:00 p.m. Council Chambers March 12-16 Saturday- Wednesday NLC Congressional City Conference Washington, DC March 21-25 Monday- Friday Board of Equalization City Hall Meeting Room March 22 Tuesday Council Meeting 5:00 p.m. Council Chambers April 5 Tuesday Council Meeting 5:00 p.m. Council Chambers April 26 Tuesday Council Meeting 5:00 p.m. Council Chambers May 10 Tuesday Council Meeting 5:00 p.m. Council Chambers May 24 Tuesday Council Meeting 5:00 p.m. Council Chambers June 14 Tuesday Council Meeting 5:00 p.m. Council Chambers June 28 Tuesday Council Meeting 5:00 p.m. Council Chambers July 12 Tuesday Council Meeting 5:00 p.m. Council Chambers July 26 Tuesday Council Meeting 5:00 p.m. Council Chambers August 9 Tuesday Council Meeting 5:00 p.m. Council Chambers August 23 Tuesday Council Meeting 5:00 p.m. Council Chambers September 13 Tuesday Council Meeting 5:00 p.m. Council Chambers September 27 Tuesday Council Meeting 5:00 p.m. Council Chambers 8 City Council Packet January 25, 2011 9 Date Day Event & Brief Description Time Location / Town / Address / Directions October 4-7 Tuesday- Friday SDML Annual Conference Sioux Falls, SD October 11 Tuesday Council Meeting 5:00 p.m. Council Chambers October 25 Tuesday Council Meeting 5:00 p.m. Council Chambers November 8 Tuesday Council Meeting 5:00 p.m. Council Chambers November 8-12 Tuesday- Saturday NLC Congress of Cities Phoenix, AZ November 22 Tuesday Council Meeting 5:00 p.m. Council Chambers December 13 Tuesday Council Meeting 5:00 p.m. Council Chambers December 20 Tuesday Council Meeting 5:00 p.m. Council Chambers 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 on a request from Mt. Calvary Lutheran Church to abate real estate taxes for a portion of 2010 in the amount of $1,143.90 for property located at S 100’ Lots 6-7, Block 2, Morehouse Addition, Parcel #40365- 00200-006-00. D. Action on a request from SDSU to abate real estate taxes for a portion of 2010 in the amount of $1,011.00 for property located at W 85’ of Lots 1-2-3, Block 1, Wheatons Addition, Parcel #40665-00100-001-00. E. Action on Resolution No. 02-11 Declaring Surplus Property: one (1) 1990 SnoGo MP-3D Snow Blower, Serial Number 3450. F. Action on Resolution No. 03-11 Declaring Surplus Property: one (1) 1994 Caterpillar 140G Motorgrader, Serial Number 08Z81984, one (1) Snow Wing, Serial Number 14004C2. G. Action on Resolution No. 04-11, a Resolution Designating Mayor as Certifying Officer for ICAP Self-Help Homeownership Opportunity Program. Action: Motion to Approve, Request Public Comment, Roll Call Open Forum/Presentations/Reports 5. Presentation of the Annual Dr. Martin Luther King, Jr. Day Awards 6. Open Forum 7. SDSU Student Senate Report 8. Swiftel Center Financial Reports Contract Awards / Change Orders 9. Action on Resolution No. 05-11: Awarding bid on Landfill Skid Steer Loader Action: Motion to Approve, Request Public Comment, Roll Call 10. Action on Resolution No. 06-11: Awarding bid on Landfill Automated Garbage Truck Action: Motion to Approve, Request Public Comment, Roll Call 11. Action on Resolution No. 10-11: A Resolution Authorizing Change Order No. 2 (CCO#2) for 2009-05STI, SDSU Innovation Campus Infrastructure Project, Phase 2, Bowes Construction, Inc. Action: Motion to Approve, Request Public Comment, Roll Call Second Readings / Public Hearings 12. Public hearing and action on Resolution No. 11-11, a Resolution of Intent to Lease Real Property (Wiese and Freeland Addition). Action: Open & Close Public Hearing, Motion to Approve, Roll Call 13. Public hearing and action on Resolution No. 12-11, a Resolution of Intent to Lease Real Property (Harrison Thompson). Action: Open & Close Public Hearing, Motion to Approve, Roll Call 14. Public hearing and action on Resolution No. 13-11, a Resolution of Intent to Lease Real Property (Paul Moriarty). Action: Open & Close Public Hearing, Motion to Approve, Roll Call 15. Public hearing and action on Resolution No. 14-11, a Resolution of Intent to Lease Real Property (SDSU). Action: Open & Close Public Hearing, Motion to Approve, Roll Call 16. Public hearing and action on Resolution No. 15-11, a Resolution of Intent to Lease Real Property (Advance). Action: Open & Close Public Hearing, Motion to Approve, Roll Call Alcohol Licenses 17. Public hearing and action on an Off-Sale Malt License for the Fireside Restaurant & Lounge, 2515 E. 6th Street (Lot 12, Telkamp Addition). Action: Open & Close Public Hearing, Motion to Approve, Roll Call Other Business 18. Action on Resolution No. 07-11, an amendment to the City of Brookings Investment Policy. Action: Motion to Approve, Request Public Comment, Roll Call 19. Action on Resolution No. 08-11, an amendment to the City of Brookings Capital Assets Policy. Action: Motion to Approve, Request Public Comment, Roll Call 20. Action on Resolution No. 09-11, establishing a Naming Rights Policy for the City of Brookings. Action: Motion to Approve, Request Public Comment, Roll Call 21. Adjourn. 10 City Council Packet January 25, 2011 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 on a request from Mt. Calvary Lutheran Church to abate real estate taxes for a portion of 2010 in the amount of $1,143.90 for property located at S 100’ Lots 6-7, Block 2, Morehouse Addition, Parcel #40365-00200-006-00. D. Action on a request from SDSU to abate real estate taxes for a portion of 2010 in the amount of $1,011.00 for property located at W 85’ of Lots 1-2-3, Block 1, Wheatons Addition, Parcel #40665-00100-001-00. E. Action on Resolution No. 02-11 Declaring Surplus Property: one (1) 1990 SnoGo MP-3D Snow Blower, Serial Number 3450. F. Action on Resolution No. 03-11 Declaring Surplus Property: one (1) 1994 Caterpillar 140G Motorgrader, Serial Number 08Z81984, one (1) Snow Wing, Serial Number 14004C2. G. Action on Resolution No. 04-11, a Resolution Designating Mayor as Certifying Officer for ICAP Self-Help Homeownership Opportunity Program. *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 CITY MANAGER RECOMMENDATION: Approve 11 City Council Packet January 25, 2011 CONSENT AGENDA #4 B. Action to approve City Council Minutes. The draft January 11th Brookings City Council minutes are enclosed for Council review and approval. 12 City Council Packet January 25, 2011 Brookings City Council January 11, 2011 (unapproved) The Brookings City Council held a meeting on Tuesday, January 11, 2011 at 5:00 p.m., at City Hall with the following members present: Council Members John Kubal, Keith Corbett, Mike McClemans, Tom Bezdichek and Jael Thorpe. Mayor Tim Reed and Council Member Mike Bartley were absent. City Manager Jeff Weldon, City Attorney Steve Britzman, and City Clerk Shari Thornes were also present. First District Update. Todd Kays, Executive Director for First Planning District, updated the Council on District activities from 2010 and plans for 2011. City Investment Policy. The Council reviewed proposed amendments to the current policy. A motion was made by Kubal, seconded by Corbett, to schedule action on proposed policy amendment for the January 25, 2011 meeting, 6:00 p.m. session. All present voted yes; motion carried. Capital Assets Policy. The Council reviewed proposed amendments to the current policy. A motion was made by McClemans, seconded by Kubal, to approve the policy. All present voted yes; motion carried. Naming Rights for Municipal Facilities. The Council reviewed a draft Naming Rights Policy for the City of Brookings. There was consensus to schedule discussion and possible action at the January 25, 2011 meeting, 6:00 p.m. session. Joint Powers Board Update. Kubal reported the Board activities have included the following: design modification review, bid package preparation, completion of SDCL 11.1 historic preservation review, ongoing ADA review, research of building security and technology specifications, and inventory of furniture and fixtures to prepare projected operating budget for the building. Topics for future discussion. McClemans asked if the City Council wanted to meet with state legislators soon to consider a bill to amend the full service restaurant on-sale license law. The City Attorney drafted a proposed amendment for council consideration. There was consensus to request the City Manager circulate the proposed bill with the legislators at the earliest possible date. 6:00 P.M. REGULAR MEETING. Consent Agenda. A motion was made by Thorpe, seconded by Corbett, to approve the consent agenda: A. Action to approve the agenda. B. Action to approve the December 28, 2010 City Council Meeting minutes. C. Action on appointments to Board of Health and Traffic Safety Committee. Traffic Safety Committee: Pete Kirchhevel to fulfill unexpired term (1/1/2011-1/1/2013); Board of Health: Shari Landmark to fulfill unexpired term (1/12011-1/1/2012). 13 City Council Packet January 25, 2011 D. Action on Resolution No. 01-11, A Resolution Setting Certain Lease Rates at the Brookings Regional Airport. Resolution No. 01-11 A Resolution Setting Certain Lease Rates at the Brookings Regional Airport Whereas, the City of Brookings is the owner of all land located within the Brookings Regional Airport boundaries; and Whereas, the land at the Brookings Regional Airport is available for lease by the City of Brookings; and Whereas, the City is desirous in establishing land lease rates at the Brookings Regional Airport for hangar and property usage; and Now Therefore, Be It Resolved that the land lease rate be set at $0.11 per square foot for 2011. E. Action to abate the 2011 drainage fee for Parcel No. 40122-00100-001-00, Lot A, County Highway First Addition, located at the County Highway Shop on Western Avenue. On the motion, all present voted yes; motion carried. Bid Award – Skid Steer Loader. Three bids were received at the bid letting held December 28, 2010: 1) Bobcat of Brookings, Brookings, SD for $27,677.19, 2) Titan of Sioux Falls, SD for $35,865.00, and 3) Schuneman Equipment Co., Brookings, SD for $30,236.95. A motion was made by McClemans, seconded by Kubal, to award the contract for the Park & Recreation Dept. Skid Steer Loader to Bobcat of Brookings. All present voted yes; motion carried. Ordinance No. 40-10. A public hearing was held on Ordinance No. 40-10, an Ordinance Amending Chapter 70 of the Code of Ordinances of the City of Brookings, South Dakota and pertaining to Collection Containers in the City of Brookings, South Dakota. A motion was made by Kubal, seconded by Corbett, to approve Ordinance No. 40-10. Discussion: Thorpe suggested a longer grace period and wanted to know the fine before approving the ordinance. All present voted yes, except Thorpe voted no, motion carried. Ordinance No. 41-10. A public hearing was held on Ordinance No. 41-10, an Ordinance to allow a Conditional Use to establish a Major Home Occupation (metal sharpening and repair) on Lot 15, Block 10, East Acres Second Addition (2031 Derdall Drive). A motion was made by Kubal, seconded by McClemans, to approve Ordinance No. 41-10. All present voted yes; motion carried. Ordinance No. 42-10. A public hearing was held on Ordinance No. 42-10, an Ordinance amending the Zoning Ordinance pertaining to the creation of the Residence R-1C District. A motion was made by Thorpe, seconded by McClemans, to approve Ordinance No. 42-10. All present voted yes; motion carried. 14 City Council Packet January 25, 2011 Temporary Liquor License Request. A public hearing was held on a Temporary Liquor License request for the Swiftel Center for a dance on February 17, 2011. No public comment was made. A motion was made by Corbett, seconded by McClemans, to approve. All present voted yes; motion carried. Temporary Liquor License Request. A public hearing was held on a Temporary Liquor License request for the Shamrock for a dance on January 20, 2011. No public comment was made. A motion was made by McClemans, seconded by Thorpe, to approve. All present voted yes; motion carried. Adjourn. A motion was made by McClemans, seconded by Corbett, to adjourn. All present voted yes; motion carried. Meeting adjourned at 6:26 p.m. CITY OF BROOKINGS ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk 15 City Council Packet January 25, 2011 CONSENT AGENDA #4 C. Action on Action on a request from Mt. Calvary Lutheran Church to abate real estate taxes for a portion of 2010 in the amount of $1,143.90 for property located at S 100’ Lots 6-7, Block 2, Morehouse Addition, Parcel #40365-00200-006-00. Mt. Calvary Lutheran Church has submitted a request to abate a portion of the 2010 property taxes on the above referenced property in the amount of $1,143.90. A copy of the application is enclosed. The County Director of Equalization recommends approval. 16 City Council Packet January 25, 2011 CONSENT AGENDA #4 D. Action on a request from SDSU to abate real estate taxes for a portion of 2010 in the amount of $1,011.00 for property located at W 85’ of Lots 1-2-3, Block 1, Wheatons Addition, Parcel #40665- 00100-001-00. South Dakota State University has submitted a request to abate a portion of the 2010 property taxes on the above referenced property in the amount of $1,011.00. A copy of the application is enclosed. The County Director of Equalization recommends approval. 22 City Council Packet January 25, 2011 CONSENT AGENDA #4 E. Action on Resolution No. 02-11 Declaring Surplus Property: one (1) 1990 SnoGo MP-3D Snow Blower, Serial Number 3450. City Council action is requested to declare the above referenced property surplus for disposal. Resolution No. 02-11 Declaring Surplus Property Whereas, the City of Brookings is the owner of the following described equipment formerly used at the City of Brookings Street Department: One (1) 1990 SnoGo MP-3D Snow Blower, Serial Number 3450 Whereas, in the best financial interest, it is the desire of the City of Brookings to sell same as surplus property; Whereas, the City Manager hereby authorized to appoint three qualified appraisers to appraise the value of the property; Now, Therefore, Be It Resolved by the governing body of the City of Brookings, South Dakota, that this property be declared surplus property according to SDCL Chapter 6-13. Passed and approved this 25th day of January, 2011. City of Brookings, SD Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk 29 City Council Packet January 25, 2011 CONSENT AGENDA #4 F. Action on Resolution No. 03-11 Declaring Surplus Property: one (1) 1994 Caterpillar 140G Motorgrader, Serial Number 08Z81984, one (1) Snow Wing, Serial Number 14004C2. City Council action is requested to declare the above referenced property surplus for disposal. Resolution No. 03-11 Declaring Surplus Property Whereas, the City of Brookings is the owner of the following described equipment formerly used at the City of Brookings Street Department: One (1) 1994 Caterpillar 140G Motorgrader, Serial Number 08Z81984 One (1) Snow Wing, Serial Number 14004C2 Whereas, in the best financial interest, it is the desire of the City of Brookings to sell same as surplus property; Whereas, the City Manager hereby authorized to appoint three qualified appraisers to appraise the value of the property; Now, Therefore, Be It Resolved by the governing body of the City of Brookings, South Dakota, that this property be declared surplus property according to SDCL Chapter 6-13. Passed and approved this 25th day of January, 2011. City of Brookings, SD Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk 30 City Council Packet January 25, 2011 CONSENT AGENDA #4 G. Action on Resolution No. 04-11, a Resolution Designating Mayor as Certifying Officer for ICAP Self-Help Homeownership Opportunity Program. Interlakes Community Action Partnership (ICAP) is preparing to utilize Self- Help Homeownership Opportunity Program (SHOP) funds from the U.S. Department of Housing and Urban Development. The proposed project is located at the following legal address: Lots 2-8 of Block 1 and Lots 1-8 of Block 2, Moriarty Heights Addition, City of Brookings, Brookings County, South Dakota First District Association of Local Governments is assisting ICAP with the application and administration of the program funds. However, the SHOP funds require a local unit of government to serve as the environmental certifying officer for the purpose of signing the required environmental documents pertaining to this grant program. The City has previously designated environmental certifying officers for similar projects, such as Brookings Area Habitat for Humanity, and other ICAP projects. Approval of this resolution will designate the Mayor of the City of Brookings as the certifying officer for the purpose of signing required environmental documents pertaining to this grant program. 31 City Council Packet January 25, 2011 Resolution No. 04-11 Resolution Designating Mayor as Certifying Officer for ICAP Self-Help Homeownership Opportunity Program Whereas, the Inter-Lakes Community Action Partnership (ICAP) expects to utilize US Department of Housing and Urban Development Self-Help Homeownership Opportunity Program (SHOP) funds to assist with the purchase of land for housing development purposes; and Whereas, the City of Brookings is required to designate an environmental certifying officer for the purpose of signing required environmental documents pertaining to this grant program; Now, Therefore, Be It Resolved, that the Mayor be hereby designated as the city's official for the purpose of signing environmental correspondence and other required documents and forms for said project. Passed and approved this 25th day of January 2011. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk 32 City Council Packet January 25, 2011 Open Forum / Presentations / Reports 5. Presentation of the annual Dr. Martin Luther King, Jr. Day Awards. In celebration of Dr. King’s birthday, the Brookings Human Rights Committee sponsored a poster contest for elementary students and an essay contest for middle school and high school grades to help students reflect on Dr. King’s ideas and their impact on the community. This year’s theme for the poster contest was “Bring Your Dreams” and the theme for the essay contest was “A Right Delayed is a Right Denied.” Mayor Tim Reed will present the winners with cash awards at the City Council meeting on Tuesday, January 25, 2011, at 6:00 p.m. All poster entries and the winning essays are on display at the Swiftel Center and on the city website (www.cityofbrookings.org) through January 31st. Grades K-1 - Poster Anthony Hildebrandt – 1st Place - $25.00 Hillcrest Elementary – 1st Grade Teacher – Mrs. Hadley Parent – Kristin Hildebrandt Christopher Gross, Jr. – 2nd Place - $10.00 Hillcrest Elementary – 1st Grade Teacher – Mrs. Rasmussen Parents – Christopher and Kathy Gross Autumn Linde – Honorable Mention Hillcrest Elementary – 1st Grade Teacher – Mrs. Rasmussen Parents – Myron & Stacey Linde Grades 2-3 - Poster Johanna Miller – 1st Place - $25.00 Hillcrest Elementary – 3rd Grade Teacher – Mr. Mogard Parents – Scott and Mary Miller Ayden Ellis – 2nd Place - $10.00 33 City Council Packet January 25, 2011 Hillcrest Elementary – 2nd Grade Teacher – Mr. Hanson Parents – Andrew and Cory Ann Ellis Lyndsey Way – Honorable Mention Hillcrest Elementary – 2nd Grade Teacher – Mrs. Gehring Parents – Brian and Dana Way Grades 4-5 - Poster Bridget Knudtson – 1st Place - $25.00 Camelot Intermediate School – 5th Grade Teacher – Mrs. Newman Parents – Ken and Tammy Knudtson Maret Otterson - 2nd Place - $10.00 Camelot Intermediate School – 5th Grade Teacher – Mrs. Newman Parents – Bob and Lisa Otterson Grace Eggebrecht – Honorable Mention Camelot Intermediate School – 5th Grade Teacher – Mrs. Newman Parents – Rick and Becky Eggebrecht Grades 4-5 – Essay Aarushi Rohila – 1st Place - $25.00 Camelot Intermediate School – 5th Grade Teacher – Mrs. Balsiger Parents – Jai and Suman Rohila Andrea Hult– Honorable Mention Camelot Intermediate School – 4th Grade Teacher – Mrs. Ruane Parents – Scott and Gena Hult Middle School – Essay Joe Kavanagh – 1st Place - $100.00 Mickelson Middle School – 7th Grade Teacher – Mrs. Thaler Parents – Edward and Clodagh 34 City Council Packet January 25, 2011 Chase Hunter– 2nd Place - $50.00 Mickelson Middle School – 7th Grade Teacher – Mrs. Thaler Parents – Dan and Stephanie Hunter High School – Essay Zarin Rahman – 1st Place - $100.00 High School – 9th Grade Teacher – Mr. Ganci Parents – Shafiqur and Moursheda Rahman Sarah He – 2nd Place - $50.00 High School – 9th Grade Teacher – Mr. Ganci Parents – Li Zhong and Hongshan He Abbie Sell – 3rd Place - $25.00 High School – 9th Grade Teacher – Mr. Ganci Parents – Justin and Jennifer Sell 35 City Council Packet January 25, 2011 Aarushi Rohila Grades 4-5 Essay – 1st Place Teacher – Mrs. Balsiger Parents – Jai and Suman Rohila Dr. King’s Dream and Today’s Diverse Society Martin Luther King, Jr. is the person who made it possible that everybody, whites and non- whites, live and work together in today’s society. He was born on January 15, 1929 in Atlanta, Georgia. At that time it was difficult being a black person in America, especially in the southern states where King lived. Around the King’s childhood time, slavery had ended, but the white people were still treating the blacks very roughly. When King was growing up there was a “segregation law”. The segregation law stated that people, whites and non-whites, can’t be friends. The blacks and the whites were going to separate churches and they lived in neighborhoods very far away from each other. They were drinking water from different water fountains and the children were going to separate schools. Whenever the buses were full and a white person came onto the bus, they made a black person to get up and let the white person sit down. By seeing all this, young Martin was very sad and he wanted to change the way whites were treating blacks. In 1963, King delivered a speech called “I Have A Dream.” His dream was “one day all people would be treated as equal whatever the color of their skin is.” He studied about a famous Indian person named Mahatma Gandhi. In 1959, he went to India to visit Gandhi and learn more about his non-violence plans. King learned that he shouldn’t fight with violence, he should fight with words. King thought that the black people should try to boycott the bus company. Instead, they took cars and only the black people would be allowed in that car. King watched the boycott for a few days and was happy that it worked. In November 1956, the Supreme Court said that segregation on any kind of public transportation is not allowed anymore. As a result of his achievements Martin Luther King, Jr. won the Noble Peace Prize in 1964. King had a vision to open everybody’s eyes to diversity of people in the society. He wanted everybody to know that everyone is different in this world. People from all around the world such as India, China, Africa, and Mexico come to the USA to get a better life and better jobs opportunities. Today, everybody from different cultures can go to the same school, they can play together, and they even work together at their work place. They can drink from the 45 City Council Packet January 25, 2011 same water fountains and celebrate their own religions. And most of all, they are free to do whatever they like. According to the Supreme Court, no one can force whites and non-whites to be apart today. Mr. Obama is the president of the USA, because of King’s dream. On the third week of January we celebrate Martin Luther King Day to remember all the good deeds he did. Because of Martin Luther King, Jr., everybody can live, play, and work together in this modern diverse society. 46 City Council Packet January 25, 2011 Andrea Hult Grades 4-5 Essay – Honorable Mention Teacher – Mrs. Ruane Parents – Scott and Gena Hult Martin Luther King, Jr. Martin Luther King, Jr. had a dream. Martin Luther was born on January 15, 1929 and lived in Atlanta, Georgia. Martin had an older sister, named Willie and a younger brother, Alfred Daniel. Martin went to jail a lot fighting for our freedom. Part of his dream was to get rid of signs like, “no blacks allowed.” Mr. King believed that black people should be able to go to any church, or any restaurant, and other places they wanted to go. He also wanted that black people could ride the buses and sit where they wanted. He helped people get their freedom! Martin Luther King, Jr., “The person that did it all,” is the person I carry in my heart! He had great, famous speeches and everyone loved him! That’s why I will always remember him too. 47 City Council Packet January 25, 2011 Joe Kavanagh Brookings Middle School Essay – 1st Place Teacher – Mrs. Thaler Parents – Edward and Clodagh Kavanagh How is Dr. King’s Dream opening eyes on Diversity? Martin Luther King had a vision of a world where each person would be judged by the content of their character, rather than the color of their skin, or what made them different. It was September 2004 when I first set my eyes on the place that I would live for the next six years. I was very different when I first moved to South Dakota. I was seven years old, I had a strong Irish accent, and I came from a very different background. On the first day of school, I didn’t know what to expect. How many friends will I have? What will my teacher be like? Over time, I learned to adapt and accept the culture, food, and people of South Dakota. And I think I have been accepted too. If people did not have a tolerance for other, different, people, how would I have turned out? No friends? No kind teacher? All of my relatives come from Ireland, but many of them have moved to other countries, and settled there. My uncle John lives in London, my aunt Maeve lives in Paris, and I also have relatives in Switzerland, Sweden, Italy and Australia. If these family members had not been accepted into those different cultures, how could they thrive in their lives and in their work? Or provide for their families? As Thomas Jefferson said, and which was repeated by Dr. King, “All men are created equal”. These words were not spoken just for the sake of saying it. Almost all great American heroes fought for the same thing; freedom. Abraham Lincoln, George Washington, World War II veterans and many more. In order to thrive in our diversity, we have to change, and respect each other. “Change”, something said by a President who has shattered the pattern of American history. President Barack Obama was elected President of the United States in 2008. I watched the TV as President Obama was been sworn into office, and I said to myself, “this will change everything”. Fifty years ago, if a black man or woman had tried to run for President, they would have been laughed off the state. President Obama has opened a wider gate to diversity. And all of this would not have been possible if it hadn’t been for someone like Dr. King, who stood up and fought for freedom. “An individual has not started living until he can rise above the narrow confines of his individualistic concerns to the broader concerns of all humanity”.Martin Luther King, Jr. 48 City Council Packet January 25, 2011 Chase Hunter Brookings Middle School Essay – 2nd Place Teacher – Mrs. Thaler Parents – Dan and Stephanie Hunter Dr. Martin Luther King Junior’s dream for diversity was for Americans to be exactly what the founder’s of our nation wanted: for all men to be treated equally, regardless of race and religion. On August 28, 1963, Dr. King gave his most famous speech echoing our founding father’s desires for us as a nation. I believe that Dr. King’s dream is becoming more of a reality with every decade. In our country today, we have several African Americans and other people of different ethnicities that are leaders in a variety of areas in our society. In the sports field, there is a very diverse group of athletes that are, or have been, leaders. Some names of the greatest athletes of all times that come to my mind would include: Michael Jordan, Magic Johnson, Kareem Abdul-Jabar, Yao Ming, Lebron James, Dwayne Wade, and Chris Bosh. All of these athletes are financially well off. They are also household names that people in our country would recognize. In the area of television broadcasting, there are a few names that come to my mind: Oprah Winfrey, George Lopez, Al Roker, and Montel Williams. I think the most well-known individual would have to be Oprah Winfrey. She grew up a very poor African American and today is one of the wealthiest individuals in our country. She is a respected philanthropist both in our country and in other countries as well. I believe the most significant step towards Dr. King’s dream of diversity happened in our country two years ago with the election of Barack Obama for President of the United States. This election was one of the most watched and reported on simply because it was a race between a white man and an African American. There were several threats against Mr. Obama and his family throughout the entire election process. Even after he won, he had to wear a bullet-proof vest to his inauguration for fear that someone was going to attempt to assassinate him. The security for our president is always a big effort; however, it became even more important once Obama won. 49 City Council Packet January 25, 2011 I am twelve years old and am very much aware I am living in a time where changes are happening. I believe these changes for equality are all for the greater good for our nation. This being said, even though I am young, I am not naïve in my thinking that we as a nation have diversity all figured out. In order for Dr. King’s dream to become reality, my generation, and the ones to come, are all going to have to keep working on the goal: diversity for all. 50 City Council Packet January 25, 2011 Zarin Rahman Brookings High School Essay – 1st Place Teacher – Mr. Ganci Parents – Shafiqur and Moursheda Rahman “A Right Delayed, Is A Right Denied” We as a nation have had many human rights violations in our history. Throughout history a race, gender, lifestyle has always been looked down upon or denied its rights of “life, liberty and the pursuit of happiness”. And these problems aren’t resolved until people fight for them. We've been fortunate to have pioneers in the fight for our human rights and equality, and Dr. Martin Luther King, Jr. is one of them. He marched thousands of miles and made many courageous speeches to make his point clear and spread his messages throughout America. His famous "I Have a Dream" speech led the Montgomery Bus Boycott and helped all people work peacefully to win equal rights. "A right delayed, is a right denied" is one of the most legendary Martin Luther King quotes that have inspired millions to take to the path of courage and truth, even decades after his death. It refers to how delays in true civil rights legislation is similar to denying the right to equality altogether. Many groups and individuals had tried to put an end to this form of discrimination and tried to establish equal rights long before Dr. King was born. The federal government, through time, made efforts to help the African Americans achieve “life, liberty, and the pursuit of happiness.” Creating the 13th, 14th, 15th, and 24th Amendments, all helped to contribute to this. The 13th amendment officially ended slavery in the United States. The 14th Amendment entitled all citizens to “equal protections of the laws.” The 15th Amendment forbid states to deny citizens the right to vote based on “race, color, or previous condition of servitude.” Lastly, the 24th Amendment gave citizens the right to vote without poll taxes interfering. Despite ratification of these amendments and government’s efforts, for years and years, the black community had to wait to have their voting rights. So, while people were waiting for their rights (a right delayed) they were basically being denied the use of that right (a right denied). Dr. King knew there would never be a right time to fight for his rights. He realized that African Americans would never be free or able to vote, if they did not protest. He followed the legendary women like Susan B. Anthony, Lucy Stone, Alice Paul, Lucy Burns and Elizabeth 51 City Council Packet January 25, 2011 Stanton who fought for women’s right to vote and won. He understood that compromise that leads to a delay of rights is indeed no compromise; it is surrender to denial. So, he fought for their delayed rights. The Voting Rights Act of 1965 is a landmark piece of national legislation in the United States that outlawed discriminatory voting practices that had been responsible for the widespread suffrage of African Americans in the U.S. Dr. King knew that without the fight, he and his next generation might still be riding on the back of the bus, still be segregated, and still be deprived of suffrage; their ultimate rights would be denied forever. Dr. King’s message is so strong and clear; it is still true today. What does the quote mean today? To me, it means that without basic rights, nothing else can be done, because everything flows from this rock-solid foundation: humanity, compassion, empathy and the progression of the human race. In recent times, Iraq is having troubles with the treatment of childrens’ and womens’ rights. According to Alaa Majeed’s (Iraqi Journalist, Pulitzer Center) report, there is an American prison in Iraq that imprisons “threats” to the army and community. The imprisoned men, many children, are not given a real trial. Often, their families are left to fend for themselves without a working male figure. In America, everyone in prison gets a trial; however, after September 11, 2001, many “terrorists” are held in Guantanamo without trials. Even in the U.S, families with members in prison may suffer without support. Many of these people could be innocent and since their right to a speedy trial (6th Amendment) is delayed, it is therefore denied. To this day, there are still people residing in America that do not have the right to vote. Immigrants, who are not citizens yet, are not allowed to vote until they receive their citizenship. Unnecessary delay in becoming a naturalized citizen ultimately denies their right to vote even though they are providing services to our country and paying their taxes, just like the women did in the 19th and 20th century. They are affected by the choices of the citizens who vote not only for our national leaders, but our state and city ones, too. Some even die before their naturalization process ends. Hence, this delayed process causes the denial of their basic rights. Department of States of the United States (2007 Trafficking in Persons Report) reports that human trafficking is still practiced here. People in large cities like New York, Los Angeles, and Chicago which are also highly populated with illegal immigrants sometimes take advantage of these immigrants. Sometimes their basic rights such as better working conditions and wages 52 City Council Packet January 25, 2011 are delayed or denied. We need to recognize mistreatment of illegal immigrants and create programs to help educate them about dangers in their lives. Their rights should be addressed without further delay. Dr. King was a leader, a pioneer struggling for freedom and rights. His powerful quote shows and encourages us not to give up, no matter what obstacles lie before us. We have to realize that issues with rights are still happening in USA and the other parts of the world. Around the world, people experience the same difficulties and are held down by similar barriers. Procrastinating is not going to help anyone. Many problems can be solved when people become aware of them and unite to fight the cause. In learning about global and local problems, we should strengthen our understanding. Programs endorsing awareness of such problems need to be created globally along with support groups for the people affected. These small actions of our life may not be defined as amazing acts of achievement, but by doing actions and helps at anytime and anywhere, we can win people’s hope that humanity does exist. The world will be a better place to live in if everyone has equal rights and these rights are administered properly without any delay. We have to carry out Dr. King’s dream, take his message, and spread it to the other parts of the world and let them know if a right they are supposed to have is being delayed, they must fight for it, before it is forever denied. 53 City Council Packet January 25, 2011 Yixuan (Sarah) He Brookings High School Essay –2nd Place Teacher – Mr. Ganci Parents – Hongshan He and Li Zhong “A Right Delayed is a Right Denied” In the modern twenty-first century, we are lucky enough to be born with the basic rights of life: the freedom of speech, the freedom of press, the freedom of assembly, etc. But of course, our society isn’t perfect, and it never has been. People have been discriminated and bullied to some extent or another, and there are still people who don’t even have the rights that we do! Dr. Martin Luther King Jr. once said: “A right delayed is a right denied.” What’s the definition of the word delayed? From Webster’s dictionary: postponed; put off; detain; to put to a stop to for the time being. Before the 1800’s, African Americans were slaves in America. They were thought of as “objects” to be bought and sold. Most were even sold into slavery as a child! They were forbidden to have education, freedom, and some were even bred like animals. They worked long and hard hours only to be sometimes beaten or starved to death; their rights to live like a person was denied. Finally, their rights could no longer be delayed any longer; in 1865, the American Civil War ended slavery. However, the ending of slavery did not give them equal rights as white men. There were separate bathrooms, separate water fountains, separate school... it was as if they were aliens! Some parents were even afraid of letting their child be close to somebody with brown skin, fearing that they would be hurt. After Dr. King led protests after protests against segregation, and after Rosa Parks led boycott after boycott, many still refused to believe that people of different races were equal. Finally, after many years, laws were created against segregation. The cries of help were ignored for so long that so many African American’s rights of life were completely denied. “A right delayed is a right denied.” Delayed rights did not only occur hundreds of years ago, it’s still happening! In Asian and the Pacific countries, where there are over 120 million kids involved in child labor, it is one of the most frequently debated topics. Child labor takes away many of the important rights of children; they don’t have the right to go to school and receive education, they don’t have the right to play, they don’t even the right to be kids. Additionally, 54 City Council Packet January 25, 2011 they work 12 hours every day and receive a pay of as little as 50 cents per hour! Many organizations have protested against this desertion of their rights, and many programs have been created to help fight against child labor, but companies are still putting off the discussion in order to receive more income. We need to fight, we need to get them back to school, and we need them to be kids again! Yes, our society definitely has flaws, but the denial of rights is consequences of delayed actions and delayed rights! We must not delay any longer! People deserve rights, no matter what gender, sex, age, or race they belong to, because as Dr. King said: “A right delayed is a right denied.” 55 City Council Packet January 25, 2011 Abbie Sell Brookings High School Essay –3rd Place Teacher – Mr. Ganci Parents – Justin and Jennifer Sell “A right delayed is a right denied” is a more powerful phrase than what it may seem at first. Though only seven words, it clearly communicates that you should not have to be denied something you rightly deserve. Nobody and nothing should have the right to not give reasonable rights that others can have just because they are believed to have “better” race, gender, religion, etc. Everybody deserves political and social freedom and equality. In United States history, women and people of different races were discriminated for a very long time. People fought and fought for equal rights, but the lawmakers of our society decided to just ignore their views. In modern times, people may seem to forget that, while present day America is generally accepting of many races, less than sixty years ago public places were segregated, and rights were denied to perfectly normal people who were seen as different merely because of their race or gender. Every moment that the government would not grant these people the rights they deserve was an atrocity. In our own little world here in Brookings, South Dakota, perhaps it is easy to forget that right now, rights are being delayed and denied to many people in other places in the world. However, this does not eliminate the possibility that some people may come across racists or sexists here who may not grant them certain rights; for example, girls are often denied the right to play football. There is nothing worse than to feel inferior because of something you can’t control. It’s not your fault if your born a woman, and it’s certainly not your fault that the men who may control the government think that sex makes such a big difference that men should have more civil rights than women. It is such a shame that so many people live somewhat miserable existences that could be improved with the establishing of civil rights that would benefit them. To have no say in your government, no freedom of speech, and to be segregated from others is a recipe for feeling detached from the region you live in. If only conflicts such as this did not exist, some civil wars may have been avoided. It is strange to think that not that long ago, our community was very different. It was segregated, not accepting of different races. Such a large effect has come all because our 56 City Council Packet January 25, 2011 government started to stop delaying civil rights for all people. So many perspectives and cultures would be missed out on, had the civil rights leaders such as Martin Luther Jr. not fought for a very long time to gain the rights that had been delayed and denied. There is no amount of time that you should have to wait to possess such important rights to be happy and feel belonged. 57 City Council Packet January 25, 2011 Open Forum 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 – Brett Monson Vice-President – Erin Kennedy Administrative Assistant – Kate Wegehaupt Finance Chair – Anthony Sutton State & Local Chair – Eric Haiar http://studentorgs.sdstate.org/studentsassociation/Default.htm 58 City Council Packet January 25, 2011 Open Forum / Presentations / Reports 8. Swiftel Center Financial Reports. At the December 28, 2010 Council meeting, the following motion was approved: “Motion by McClemans, seconded by Kubal, to review the Swiftel Center’s bonding costs, subsidy, and capital improvements per year for the last five years. All present voted yes; motion carried.” The following tables provide that information. For comparison purposes, I have added the annual investment for the Convention & Visitors Bureau and the Visitor Promotion Board. All these amounts are actual. Year Operating Subsidy CIP amount CVB/VPB amount 2010 $314,378 $300,846 $387,500 2009 $316,689 $ 57,754 $436,250 2008 $348,192 $191,030 $375,000 2007 $327,143 $ 70,311 $175,000 2006 $330,000 $ zero $175,000 2005 $300,000 $ zero $175,000 With regard to debt service, the City Council issued principal debt in 1998 in the amount of $7.2 million for the Multiplex, County Resource Center, and Research and Technology Center. That same month, the City approved $2.8 million in separate debt for the Library addition. In 2003, these two debt issuances were re-financed and combined for a total principle of $7,735,000 for all four buildings. Extrapolating just the principal for the first bond series 1998A bond of three buildings is as follows: Multiplex (.6388) $4.6 million R & T Center (.2083) $1.5 million (+$500,000 federal grant) CR Center (.1527) $1.1 million TOTAL $7.2 million Extrapolating the debt service for the Multiplex only from the 1998 debt issuance and the 2003 re-financing which combined existing debt for the Library Addition is as follows, which is the request of the motion: 59 City Council Packet January 25, 2011 YEAR Interest Principal Total 2005 $140,186.24 $274,718.40 $414,904.64 2006 $128,111.41 $287,496.00 $415,607.41 2007 $115,199.65 $300,273.60 $415,473.25 2008 $101,581.92 $313,051.20 $414,633.12 2009 $ 87,245.45 $325,828.80 $413,074.25 60 City Council Packet January 25, 2011 Contract Awards / Change Orders 9. Action on Resolution No. 05-11: Awarding bid on Landfill Skid Steer Loader To: City Manager, Mayor and City Council From: Todd Langland, Solid Waste Operations Supervisor Date: January 18, 2011 RE: Landfill Skid Steer Loader Bids Two bids were received on January 18th. All bids met specifications. The amount budgeted for this purchase was $40,000.00. Staff recommends acceptance of the low bid from bobcat of Brookings in the amount of $41,266.14 for a Bobcat S750. The skid steer loader will be used to assist the public when loading compost as well as other smaller jobs like snow removal. The skid steer loader comes with two attachments, a set of pallet forks and a broom attachment for sweeping. The pallet forks will be used to handle and load electronic s for recycling and loading yard waste bags for delivery to the local stores. The broom attachment will be used to sweep the scale and surrounding area. Skid Steer Loader Bid Tab Bobcat of Brookings Titan Machinery January 18, 2011 803 Main Ave. South 4201 N. Cliff Ave. Brookings, SD 57006 Sioux Falls, SD 57104 Bid Bond / Cashier’s Check CC BB Total Price $ 41,266.14 $ 42,356.00 City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City Manager Recommendation: Approve 61 City Council Packet January 25, 2011 Resolution No. 05-11 Resolution Awarding Bids Landfill Skid Steer Loader Whereas, the City of Brookings has received the following bid(s) for one (1) 2011 Skid Steer Loader: Company Bid price Bobcat of Brookings $41,266.14 Titan Machinery Inc. $42,356.00 Now Therefore, Be it Resolved that the low bid from Bobcat of Brookings, in the amount of $41,266.14 be accepted. Passed and approved this 25th day of January 2011. CITY OF BROOKINGS _______________________ Tim Reed, Mayor ATTEST: _____________________ Shari Thornes, City Clerk 62 City Council Packet January 25, 2011 Contract Awards / Change Orders 10. Action on Resolution No. 06-11: Awarding bid on Landfill Automated Garbage Truck To: City Manager, Mayor and City Council From: Todd Langland, Solid Waste Operations Supervisor Date: January 18, 2011 RE: Automated truck Bid Two bids were received on January 18th. Elliott Sanitation did not meet the bid specifications. The bid included trading in the 2003 automated loader. The amount budgeted for this purchase was $265,000.00. The bid came in under budget at $235,401.00 plus trade-in of $20,000.00 for a total of $215,401.00. Staff recommends acceptance of the bid from Sanitation Products for in the amount of $215,401.00. Automated Side Load Garbage Truck Elliott Sanitation Sanitation Products January 18, 2011 1247 Dawes Ave. P.O. Box 86222 Lincoln, NE 68521 Sioux Falls, SD 57118 Bid Bond BB BB Base Bid $ 235,000.00 $ 235,401.00 Less Trade-in $ 32,000.00 $ 20,000.00 Net Price to City $ 203,000.00 $ 215,401.00 City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City Manager Recommendation: Approve 63 City Council Packet January 25, 2011 Resolution No. 06-11 Resolution Awarding Bids Automated Garbage Truck Whereas, the City of Brookings has received the following bid(s) for one (1) 2011Automated garbage Truck: Company Bid price Trade-In Elliott Sanitation $ 235,000.00 $32,000.00 $203,000.00 Sanitation Products, Inc. $ 235,401.00 $20,000.00 $215,401.00 Now Therefore, Be it Resolved that the bid from Sanitation Products, Inc. in the amount of $215,401.00 be accepted. Passed and approved this 25th day of January 2011. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk 64 City Council Packet January 25, 2011 Contract Awards / Change Orders 11. Action on Resolution No. 10-11: A Resolution Authorizing Change Order No. 2 (CCO#2) for 2009-05STI, SDSU Innovation Campus Infrastructure Project, Phase 2, Bowes Construction, Inc. This project entails the construction of Phase II in the SDSU Innovation Campus, which is located east of 22nd Avenue. This construction project was designed by Banners Associates, and includes water mains and services, sanitary sewer mains and services, grading, detention pond, gravel, curb & gutter, asphalt paving, paint striping, signing, and storm sewer. This change order will approve the additional costs for plugging four existing wells, adding drain tile near the round-about to help drain a low area and additional grading work to breach a dike in the northeast section of the site which will help a low area drain to the northeast detention pond. The additional work resulted in additional costs of $3,160.00. This change order will also decrease the contract by $40,490.63 to adjust the bid quantities to as-built quantities. The additional work and modification to as-built quantities result in a total decrease of $37,330.86 to the contract. The additional work also requires 2 additional working days and the work will be done in the spring of 2011. This change order will adjust the final completion date to May 15, 2011. The following is a summary of the change order: Original Contract Price: $2,183,673.92 Increase from Previously Approved Change Order No. 1: $3,258.28 Contract Price prior to this Change Order: $2,186,932.20 Decrease of this Change Order (No. 2): $37,330.86 Contract Price incorporating this Change Order: $2,149,601.34 This resolution will approve a decrease of $37,330.86 to the contract with Bowes Construction Company, Inc. and extend the final completion date by 2 additional working days to May 15, 2011. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City Manager Recommendation: Approve 65 City Council Packet January 25, 2011 Resolution No. 10-11 A Resolution Authorizing Change Order No. 2 (CCO#2) for 2009-05STI SDSU Innovation Campus Infrastructure – Phase II Bowes Construction Inc. Be It Resolved by the City Council that the following change order be allowed for 2009-05STI SDSU Innovation Campus Infrastructure – Phase II: Construction Change Order Number 2 Adjust contract cost for additional costs for plugging four existing wells, adding drain tile near the round-about and additional grading work to breach a dike in the northeast section of the site and extending the contract by 2.0 working days for the additional work and to adjust bid quantities to as-built quantities for a total decrease of $37,330.86 to the contract. Adjust contract completion date by 2.0 working days for the additional work which will adjust the final completion date to May 15, 2011. Passed and approved this 25th day of January 2011. CITY OF BROOKINGS _________________________ Tim Reed, Mayor ATTEST: ____________________________ Shari Thornes, City Clerk 66 City Council Packet January 25, 2011 Second Readings / Public Hearings 12. Public hearing and action on Resolution No. 11-11, a Resolution of Intent to Lease Real Property (Wiese and Freeland Addition). The City would like to lease the unsold industrial property located in the Weise Addition and Freeland Addition for farming operations, which is shown on the enclosed map. In the past, the City has leased industrial property for farming operations which provides for extra income for the City’s industrial fund as well as provides for weed control. Prior to 2008, the City advertised for bids for farming on a three year basis. The City then held a public hearing for the adoption of a resolution of intent to lease real property to a private person, which is required by state law. Steve Britzman has researched the issue, and provided the SDCL references as: 9-12-5. Powers - Lease or transfer of property for public purposes. Every municipality shall have power to lease or sell or give and convey any personal or real property of the municipality or perform any work or render any services, to the state or any public corporation thereof, to be used by such grantee for an authorized public purpose; such lease or sale or gift and conveyance, or the performance of such work, to be authorized, made or done on the terms and in the manner provided by resolution of the governing body. 9-12-5.1. Powers - Lease of property - Term and conditions. Every municipality may lease its municipally-owned property. Any such lease shall be for a term and upon the conditions provided by resolution of the governing body. 9-12-5.2. Powers - Lease to private person - Resolution - Notice - Hearing - Authorization. If the governing body decides to lease any municipally owned property to any private person for a term exceeding one hundred twenty days and for an amount exceeding five hundred dollars annual value it shall adopt a resolution of intent to enter into such lease and fix a time and place for public hearing on the adoption of the resolution. Notice of the hearing shall be published in the official newspaper once, at least ten days prior to the 67 City Council Packet January 25, 2011 hearing. Following the hearing the governing body may proceed to authorize the lease upon the terms and conditions it determines. According to Mr. Britzman, this lease is not required to be bid, due to the fact the entity is a public-private business entity, though it could be offered for bids if you so desired. Since “Foundation Seed Stocks”, the proposed lessee, is not a “private person” and is not technically the “State”-- it is a nonprofit corporation affiliated with SDSU, he concluded we can lease without bidding provided it is not to a private person. Foundation Seed Stocks proposes to lease this property at $105.00 per acre, which is the same lease rate that they have paid since 2008 and it is higher than the previously bid lease rate of $70.00 per acre in 2007. This lease will be a one year lease, which will allow for acreage adjustments each year based on land sales. The Notice of Public Hearing was advertised one time ten days prior to the hearing. This resolution will allow the City to enter into a lease agreement with Foundation Seed Stocks for one year for the City-owned industrial property in the Weise and Freeland Additions. City Manager Introduction Action: Open & Close Public Hearing, Motion to Approve, Roll Call City Manager Recommendation: Approve 68 City Council Packet January 25, 2011 Resolution No. 11-11 Resolution of Intent to Lease Real Property 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, 2011 and ending March 8, 2012, 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 January 25, 2011 at 6:00 o’clock P.M. at the City Council Chambers and that all persons were given an opportunity to be heard on the intent to lease real property. Passed and approved this 25th day of January 2011. CITY OF BROOKINGS ____________________________________ Tim Reed, Mayor ATTEST: __________________________ Shari Thornes, City Clerk 69 City Council Packet January 25, 2011 Second Readings / Public Hearings 13. Public hearing and action on Resolution No. 12-11, a Resolution of Intent to Lease Real Property (Harrison Thompson). The City is proposing a lease for a parcel of property located at the Brookings Regional Airport. The property is a designated hangar area, which is Lot 1 of Block 3 of the Replat of Blocks 3 and 4 of Airport Hangar Area Addition Number One, NW ¼ of the SW¼, Section 26, T110N-R50W, City of Brookings, South Dakota. Since the airport decision has been made by the Brookings City Council, the airport leases are being renewed for a five- year period. Since this lease is in excess of $500 and 120 days, the City Council is required to hold a public hearing to adopt a resolution of intent to lease real property to a private person, which is referenced in the following SDCL excerpts: 9-12-5. Powers - Lease or transfer of property for public purposes. Every municipality shall have power to lease or sell or give and convey any personal or real property of the municipality or perform any work or render any services, to the state or any public corporation thereof, to be used by such grantee for an authorized public purpose; such lease or sale or gift and conveyance, or the performance of such work, to be authorized, made or done on the terms and in the manner provided by resolution of the governing body. 9-12-5.1. Powers - Lease of property - Term and conditions. Every municipality may lease its municipally-owned property. Any such lease shall be for a term and upon the conditions provided by resolution of the governing body. 9-12-5.2. Powers - Lease to private person - Resolution - Notice - Hearing - Authorization. If the governing body decides to lease any municipally owned property to any private person for a term exceeding one hundred twenty days and for an amount exceeding five hundred dollars annual value it shall adopt a resolution of intent to enter into such lease and fix a time and place for public hearing on the adoption of the resolution. Notice of the hearing shall 70 City Council Packet January 25, 2011 be published in the official newspaper once, at least ten days prior to the hearing. Following the hearing the governing body may proceed to authorize the lease upon the terms and conditions it determines. The lease with Harrison Thompson will be in the amount of $580.80 for 2011, which is $0.11 per square foot. The lease amount may be adjusted by the Brookings City Council for future years, which will be payable the last working day in January of each year. The City of Brookings may terminate this lease with a notice of 60 days to the lessee. The Notice of Public Hearing was advertised one time ten days prior to the hearing as required. This resolution will allow the City to enter into a five-year lease agreement with Harrison Thompson for the designated hangar area located at the Brookings Regional Airport. City Manager Introduction Action: Open & Close Public Hearing, Motion to Approve, Roll Call City Manager Recommendation: Approve 71 City Council Packet January 25, 2011 Resolution No. 12-11 Resolution of Intent to Lease Real Property 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 HARRISON THOMPSON for a period of five (5) years, commencing on January 1, 2011 and ending January 1, 2016 and pertaining to the following described property: Lot 1 of Block 3 of the Replat of Blocks 3 and 4 of Airport Hangar Area Addition Number One, NW ¼ of the SW¼, Section 26, T110N-R50W, City of Brookings, South Dakota The Lease will be an amount of five hundred eighty dollars and eighty cents ($580.80) payable by the last day of January. The City of Brookings may terminate this Lease at any time Be It Further Noted, that a Public Hearing on this Resolution was held on January 25, 2011 at 6:00 o’clock P.M. at the City Council Chambers and that all persons were given an opportunity to be heard on the intent to lease real property. Passed and approved this 25th day of January 2011. CITY OF BROOKINGS ____________________________ Tim Reed, Mayor ATTEST: __________________________ Shari Thornes, City Clerk 72 City Council Packet January 25, 2011 Second Readings / Public Hearings 14. Public hearing and action on Resolution No. 13-11, a Resolution of Intent to Lease Real Property (Paul Moriarty). The City is proposing a lease for a parcel of property located at the Brookings Regional Airport. The property is a designated hangar area, which is All of Lot 1, Block 5, of Airport Hangar Addition Number One, and a parcel being 20’ wide by 100’ long situated on the northeast side of said Lot 1 in Section 26 and Section 27, T110N-R50W, City of Brookings, Brookings County, South Dakota. Since the airport decision has been made by the Brookings City Council, the airport leases are being renewed for a five-year period. Since this lease is in excess of $500 and 120 days, the City Council is required to hold a public hearing to adopt a resolution of intent to lease real property to a private person, which is referenced in the following SDCL excerpts: 9-12-5. Powers - Lease or transfer of property for public purposes. Every municipality shall have power to lease or sell or give and convey any personal or real property of the municipality or perform any work or render any services, to the state or any public corporation thereof, to be used by such grantee for an authorized public purpose; such lease or sale or gift and conveyance, or the performance of such work, to be authorized, made or done on the terms and in the manner provided by resolution of the governing body. 9-12-5.1. Powers - Lease of property - Term and conditions. Every municipality may lease its municipally-owned property. Any such lease shall be for a term and upon the conditions provided by resolution of the governing body. 9-12-5.2. Powers - Lease to private person - Resolution - Notice - Hearing - Authorization. If the governing body decides to lease any municipally owned property to any private person for a term exceeding one hundred twenty days and for an amount exceeding five hundred dollars annual value it shall adopt a 73 City Council Packet January 25, 2011 resolution of intent to enter into such lease and fix a time and place for public hearing on the adoption of the resolution. Notice of the hearing shall be published in the official newspaper once, at least ten days prior to the hearing. Following the hearing the governing body may proceed to authorize the lease upon the terms and conditions it determines. The lease with Paul Moriarty will be in the amount of $836.00 for 2011, which is $0.11 per square foot. The lease amount may be adjusted by the Brookings City Council for future years, which will be payable the last working day in January of each year. The City of Brookings may terminate this lease with a notice of 60 days to the lessee. The Notice of Public Hearing was advertised one time ten days prior to the hearing as required. This resolution will allow the City to enter into a five-year lease agreement with Paul Moriarty for the designated hangar area located at the Brookings Regional Airport. City Manager Introduction Action: Open & Close Public Hearing, Motion to Approve, Roll Call City Manager Recommendation: Approve 74 City Council Packet January 25, 2011 Resolution No. 13-11 Resolution of Intent to Lease Real Property to Private Person 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 PAUL MORIARTY for a period of five (5) years, commencing on January 1, 2011 and ending January 1, 2016 and pertaining to the following described property: All of Lot 1, Block 5, of Airport Hangar Addition Number One, and a parcel being 20’ wide by 100’ long situated on the northeast side of said Lot 1 in Section 26 and Section 27, T110N-R50W, City of Brookings, South Dakota The Lease will be an amount of eight hundred thirty-six dollars ($836.00), which is $0.11 per square foot, payable by the last day of January, 2011. The lease amount may be adjusted by the Brookings City Council each year and the payment will be payable by the last working day of January of each year. The City of Brookings may terminate this Lease with a notice of 60 days to the lessee. Be It Further Noted, that a Public Hearing on this Resolution was held on January 25, 2011 at 6:00 o’clock P.M. at the City Council Chambers and that all persons were given an opportunity to be heard on the intent to lease real property. Passed and approved this 25th day of January 2011. CITY OF BROOKINGS ____________________________ Tim Reed, Mayor ATTEST: __________________________ Shari Thornes, City Clerk 75 City Council Packet January 25, 2011 Second Readings / Public Hearings 15. Public hearing and action on Resolution No. 14-11, a Resolution of Intent to Lease Real Property (SDSU). The City is proposing a lease for a parcel of property located at the Brookings Regional Airport. The property is a designated hangar area, which is Lot Z of Block 5 of Airport Hangar Area Addition Number One and a 540 square foot parcel situated on the west side of Lot Z in the NW ¼ of the SW¼, Section 26, T110N-R50W, City of Brookings, South Dakota. Since the airport decision has been made by the Brookings City Council, the airport leases are being renewed for a five-year period. Since this lease is in excess of $500 and 120 days, the City Council is required to hold a public hearing to adopt a resolution of intent to lease real property to a private person, which is referenced in the following SDCL excerpts: 9-12-5. Powers - Lease or transfer of property for public purposes. Every municipality shall have power to lease or sell or give and convey any personal or real property of the municipality or perform any work or render any services, to the state or any public corporation thereof, to be used by such grantee for an authorized public purpose; such lease or sale or gift and conveyance, or the performance of such work, to be authorized, made or done on the terms and in the manner provided by resolution of the governing body. 9-12-5.1. Powers - Lease of property - Term and conditions. Every municipality may lease its municipally-owned property. Any such lease shall be for a term and upon the conditions provided by resolution of the governing body. 9-12-5.2. Powers - Lease to private person - Resolution - Notice - Hearing - Authorization. If the governing body decides to lease any municipally owned property to any private person for a term exceeding one hundred twenty days and for an amount exceeding five hundred dollars annual value it shall adopt a resolution of intent to enter into such lease and fix a time and place for 76 City Council Packet January 25, 2011 public hearing on the adoption of the resolution. Notice of the hearing shall be published in the official newspaper once, at least ten days prior to the hearing. Following the hearing the governing body may proceed to authorize the lease upon the terms and conditions it determines. The lease with SDSU will be in the amount of $587.40 for 2011, which is $0.11 per square foot. The lease amount may be adjusted by the Brookings City Council for future years, which will be payable the last working day in January of each year. The City of Brookings may terminate this lease with a notice of 60 days to the lessee. The Notice of Public Hearing was advertised one time ten days prior to the hearing as required. This resolution will allow the City to enter into a five-year lease agreement with SDSU for the designated hangar area located at the Brookings Regional Airport. City Manager Introduction Action: Open & Close Public Hearing, Motion to Approve, Roll Call City Manager Recommendation: Approve 77 City Council Packet January 25, 2011 Resolution No. 14-11 Resolution of Intent to Lease Real Property 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 SDSU for a period of five (5) years, commencing on January 1, 2011 and ending December 31, 2015 and pertaining to the following described property: Lot Z of Block 5 of Airport Hangar Addition Number One and a 540 square foot parcel situated on the west side of Lot Z, in the NW¼ of the SW¼ Section 26-T110-R50W, City of Brookings, South Dakota. The Lease will be an amount of five hundred eighty-seven dollars and forty cents ($587.40), which is $0.11 per square foot, payable by the last day of January, 2011. The lease amount may be adjusted by the Brookings City Council each year and the payment will be payable by the last working day of January of each year. The City of Brookings may terminate this Lease with a notice of 60 days to the lessee. Be It Further Noted, that a Public Hearing on this Resolution was held on January 25, 2011 at 6:00 o’clock P.M. at the City Council Chambers and that all persons were given an opportunity to be heard on the intent to lease real property. Passed and approved this 25th day of January 2011. CITY OF BROOKINGS ____________________________ Tim Reed, Mayor ATTEST: __________________________ Shari Thornes, City Clerk 78 City Council Packet January 25, 2011 Second Readings / Public Hearings 16. Public hearing and action on Resolution No. 15-11, a Resolution of Intent to Lease Real Property (Advance). The City is proposing a lease for a parcel of property located at the Brookings Regional Airport. The property is a designated parking lot of approximately 15,300 square feet in size, located on Brookings Airport property and adjacent to Division Avenue, in Section 27, T110N, R50W, in the City of Brookings, Brookings County, South Dakota. In the past, the City has leased this area to Advance for their parking lot use and they have paid the standard hangar and land lease rate for this parcel. Since the airport decision has been made by the Brookings City Council, the airport leases are being renewed for a five-year period. Since this lease is in excess of $500 and 120 days, the City Council is required to hold a public hearing to adopt a resolution of intent to lease real property to a private person, which is referenced in the following SDCL excerpts: 9-12-5. Powers - Lease or transfer of property for public purposes. Every municipality shall have power to lease or sell or give and convey any personal or real property of the municipality or perform any work or render any services, to the state or any public corporation thereof, to be used by such grantee for an authorized public purpose; such lease or sale or gift and conveyance, or the performance of such work, to be authorized, made or done on the terms and in the manner provided by resolution of the governing body. 9-12-5.1. Powers - Lease of property - Term and conditions. Every municipality may lease its municipally-owned property. Any such lease shall be for a term and upon the conditions provided by resolution of the governing body. 9-12-5.2. Powers - Lease to private person - Resolution - Notice - Hearing - Authorization. If the governing body decides to lease any municipally owned property to any private person for a term exceeding one hundred twenty days and for an amount exceeding five hundred dollars annual value it shall adopt a 79 City Council Packet January 25, 2011 resolution of intent to enter into such lease and fix a time and place for public hearing on the adoption of the resolution. Notice of the hearing shall be published in the official newspaper once, at least ten days prior to the hearing. Following the hearing the governing body may proceed to authorize the lease upon the terms and conditions it determines. The lease with Advance will be in the amount of $1,683.00 for 2011, which is $0.11 per square foot. The lease amount may be adjusted by the Brookings City Council for future years, which will be payable the last working day in January of each year. The City of Brookings may terminate this lease with a notice of 60 days to the lessee. The Notice of Public Hearing was advertised one time ten days prior to the hearing as required. This resolution will allow the City to enter into a five-year lease agreement with Advance the parking lot located at the Brookings Regional Airport. City Manager Introduction Action: Open & Close Public Hearing, Motion to Approve, Roll Call City Manager Recommendation: Approve 80 City Council Packet January 25, 2011 Resolution No. 15-11 Resolution of Intent to Lease Real Property 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 ADVANCE for a period of five (5) years, commencing on January 1, 2011 and ending January 1, 2016 and pertaining to the following described property: The designated parking lot of approximately 15,300 square feet in size, located on Brookings Airport property and adjacent to Division Avenue in Section 27-T110N- R50W in the City of Brookings, South Dakota The Lease will be an amount of One thousand, six hundred eight-three dollars ($1,683.00) for 2011, which is $0.11 per square foot, payable by the last day of January, 2011. The lease amount may be adjusted by the Brookings City Council each year and the payment will be payable by the last working day of January of each year. The City of Brookings may terminate this Lease with a notice of 60 days to the lessee. Be It Further Noted, that a Public Hearing on this Resolution was held on January 25, 2011 at 6:00 o’clock P.M. at the City Council Chambers and that all persons were given an opportunity to be heard on the intent to lease real property. Passed and approved this 25th day of January 2011. CITY OF BROOKINGS ____________________________ Tim Reed, Mayor ATTEST: __________________________ Shari Thornes, City Clerk 81 City Council Packet January 25, 2011 Alcohol Licenses 17. Public hearing and action on an Off-Sale Malt License for the Fireside Restaurant & Lounge, 2515 E. 6th Street (Lot 12, Telkamp Addition). The City of Brookings has received an application for an Off Sale Malt Beverage License for Fireside Restaurant & Lounge, 2515 E. 6th Street, from Judy Faber, owner. Legal description: Lot 12, Telkamp Addition. All the required documents have been submitted for this application. A public hearing and action by the local governing body is required to approve a Malt Beverage License. This license would be effective immediately until June 30, 2011 and then subject to an annual renewal. If approved, the application would be forwarded to the State Department of Revenue for final action and issuance of the license. Further Information: SDCL 35-2-1.2 provides all applications for retail licenses …shall be submitted to the governing board of the municipality within which the applicant intends to operate…The governing board: “shall have discretion to approve or disapprove the application depending on whether it deems the applicant a suitable person to hold such license and whether it considers the proposed location suitable.” SDCL 35-2-6.2 provides the “character” requirements for alcoholic beverage licensees: “Any license under this title…must be a person of good moral character, never convicted of a felony, and, if a corporation, the managing officers thereof must have like qualifications.” Procedure for issuance of licenses: Procedurally, SDCL 35-2-3 provides that “no license for the on or off-sale at retail of alcoholic beverages…shall be granted to an applicant for any such license, except after public hearing, upon notice.” SDCL 35-2-5 provides the procedure for the time and place of hearing and for publication of notice. If an application for a license is refused, “no further application may be received from a person until after the expiration of one year from the date of a refused application.” City Ordinances: Listed below is Chapter 5, Article 2, Section 5-20 of the City Code of Ordinances pertaining to Application Review Procedure. The City Council shall review all applications submitted to the City for available On-Sale Alcoholic Beverage Agreements and for On-Sale Malt Beverage and Wine Licenses in accordance with SDCL 35-2 and in accordance with the following factors: a) Type of business which applicant proposes to operate: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold unless it can be established that minors do not regularly frequent the establishment. 82 City Council Packet January 25, 2011 b) The manner in which the business is operated: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to establishments which are operated in a manner which results in minors regularly frequenting the establishment. c) The extent to which minors are employed in such a place of business: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold and which regularly employ minors. d) The adequacy of the police facilities to properly police the proposed location: The City Council shall inquire of the Police Chief whether the Police Department can adequately police the proposed location. e) Other factors: The hours that business is conducted shall be considered by the City Council in its review of applications for on-sale alcoholic beverage operating agreements and on-sale malt beverage and wine licenses Summary: SDCL and case law support the premise that the decision to issue an alcoholic beverage license is discretionary. The City can assess the character of the applicant and whether the location is suitable. A person convicted of a felony is prohibited from applying for a license; therefore, a convicted felon would fail the character test. In determining suitable location, the Council may involve the determination of whether the location is suitable consistent with the procedure developed through South Dakota Case Law. This includes the manner in which the business is operated; the extent to which minors frequent or are employed in such place of business; the adequacy of the police facilities to properly police the proposed location, and other factors associated with the sale of alcoholic beverages. City Manager Introduction Action: Open & Close Public Hearing, Motion to Approve, Roll Call City Manager Recommendation: Approve 83 City Council Packet January 25, 2011 Other Business 18. Action on Resolution No. 07-11, an amendment to the City of Brookings Investment Policy. Attached is the proposed revised Investment Policy for the City of Brookings. The last revision was dated July 24. 2004. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City Manager Recommendation: Approve 84 City Council Packet January 25, 2011 Resolution 07-11 City of Brookings Investment Policy Amended: January 25, 2011 Objective: The purpose of “The City of Brookings Investment Policy” is to set investment objectives, policies, establish guidelines, and define responsibilities for the investment of funds for the City of Brookings. Policy: City of Brookings Investment Policy 1.0 Purpose: ................................................................................................................................................... 2 2.0 Policy:........................................................................................................................................................ 2 3.0 Scope: ....................................................................................................................................................... 2 4.0 Objective:................................................................................................................................................. 2 5.0 Standard of Care:.................................................................................................................................... 4 6.0 Authority and Responsibility:…............................................................................................................. 5 7.0 Authorized Financial Dealers and Institutions:.................................................................................... 5 8.0 Authorized & Suitable Investments:..................................................................................................... 6 9.0 Investment Pool:...................................................................................................................................... 6 10.0 Safekeeping and Custody:..................................................................................................................... 7 11.0 Collateralization: .................................................................................................................................. 7 12.0 Diversification: ...................................................................................................................................... 8 13.0 Maximum Maturities:............................................................................................................................ 8 14.0 Reporting: .............................................................................................................................................. 8 15.0 Policy Control:....................................................................................................................................... 8 GLOSSARY............................................................................................................................................. 10-14 85 City Council Packet January 25, 2011 1.0 PURPOSE The purpose of “The City of Brookings Investment Policy” is to set investment objectives, policies, establish guidelines, and define responsibilities for the investment of funds for the City of Brookings. 2.0 POLICY The policy of the City of Brookings is to invest all funds in a manner based upon state law, that will provide the highest investment return while maintaining maximum security and meeting cash flow demands. The primary goals are: A. To ensure compliance with all Federal, State, and local laws governing the investment of public funds under the control of the City Manager. B. To protect the principal monies entrusted to the City’s Finance Department. C. Achieve a reasonable rate of return within the parameters of prudent risk management while minimizing the potential for capital losses arising from market changes or issuer default. 3.0 SCOPE This policy applies to the investment of all funds of Brookings, South Dakota. Except for funds held in trust or special funds that are otherwise specifically provided for, the city will consolidate the balances from all funds to maximize investment 3.1 Pooling of Funds Except for cash in certain restricted and special funds the City of Brookings will consolidate cash balances from all funds, including utilities and hospital, to maximize investment earnings and meet the liquidity requirements of the city subject to the primary objective of providing security of principal. Investment income will be allocated to the various funds based on their respective participation of capital in the overall portfolio in accordance with generally accepted accounting principles. 4.0 OBJECTIVE Pursuant to South Dakota Codified Law, Chapter 4-5-8 it is the policy of the City of Brookings to invest funds in a manner to meet the daily cash flow demands of the City. The primary objectives, in priority order, being: a) Safety of Principal b) Liquidity c) Return on Investments: A) Safety of Principal Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate 86 City Council Packet January 25, 2011 the following risks. 1. Credit Risk The City of Brookings will minimize credit risk, which is the risk of loss due to the failure of the investment issuer or backer, by limiting the portfolio to the types of investments listed in section 9. Authorized and Suitable Investments of this policy and diversifying the investment portfolio to diminish the impact of potential losses from any one type of investment or from any one individual issuer. 2. Interest Rate Risk The City of Brookings will minimize interest rate risk, which is the risk that the market value of securities in the portfolio will fall due to changes in market interest rates, by structuring the portfolio to meet the cash requirements of ongoing operations, thereby mitigating the need to liquidate securities at a loss prior to maturity. 3. Concentration Risk The City of Brookings will minimize Concentration of Credit Risk, which is the risk of loss due to having a significant portion of resources invested in a single issuer, by diversifying the investment portfolio as described in section 16. Diversification so the impact of potential losses from any one type of security or issuer will be minimized. Investments issued or explicitly guaranteed by the U.S. government and investments in mutual funds, external investment pools, and other pooled investments are excluded from this requirement. 4. Custodial Credit Risk The City of Brookings will minimize Custodial Credit Risk for deposits, which is the risk that in the event of the failure of a depository financial institution the deposits or collateral securities that are in the possession of an outside party would not be able to be recovered, as addressed in section 15. Collateralization. The City of Brookings will minimize Custodial Credit Risk for investments, which is the risk that in the event of the failure of the counterparty to a transaction the value or collateral securities that are in the possession of an outside party would not be able to be recovered, as addressed in section 14. Safekeeping and Custody. B) Liquidity The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities 87 City Council Packet January 25, 2011 with active secondary or resale markets (dynamic liquidity). Alternatively, a portion of the portfolio may be placed in money market mutual funds or local government investment pools which offer same-day liquidity for short-term funds. C) Return on Investments The portfolio shall be designed to obtain a reasonable rate of return throughout budgetary and economic cycles. The return on investments is to be accorded secondary importance compared to the safety and liquidity objectives described above. The core of investments will focus on relatively low risk securities with an expectation of earning a reasonable return relative to the risk being assumed. Securities shall not be sold prior to maturity, with the following exceptions: • A security with declining value may be sold early to minimize loss of principal. • A security may be exchanged to improve the quality, yield, or target duration in the portfolio. • A security may be sold in order to satisfy liquidity requirements. When selling a security prior to maturity, the City Manager must be prepared to justify the reasons and explain any gains or losses. Policy compliance does not provide a benchmark to meet or exceed, but is a model to follow. The City will benchmark its portfolio performance to the appropriate “treasuries constant maturity” rate based on portfolio maturities of the investment plan. 5.0 Standard of Care 5.1 Prudence The standard of prudence to be used by investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. Investment officers, acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes. The “prudent person” standard states that “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.” 5.2 Ethics and Conflicts of Interest Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to 88 City Council Packet January 25, 2011 make impartial decisions. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the City of Brookings. The City Investment program shall be managed in a professional and prudent manner worthy of the public trust and review. 6.0 Authority and Responsibility 6.1 Authority In accordance with the City of Brookings, the responsibility for conducting investment transactions resides with the City Manager. The Finance Manager, under the general direction of the City Manager, shall be responsible for all transactions undertaken and shall establish a system of controls to regulate activities. 6.2 Responsibility Parties shall refrain from personal business activity that could impair his/her ability to make impartial decisions. The Finance Manager acting in accordance with this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual investment’s credit risk or market price changes, provided deviations form expectations are reported in a timely fashion and the liquidity and the sale of investments are carried out in accordance with the terms of this policy. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probably income to be derived. 7.0 Authorized Financial Dealers and Institutions 7.1 Selection Process A list of financial institutions authorized to provide investment services to the City of Brookings will be maintained. In addition, a list of broker/dealers will be maintained. This list may include both primary and regional dealers. Dealers will be approved by the Finance Manger on the following: • Credit worthiness • License to conduct business in South Dakota • Qualification under Securities and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule) 89 City Council Packet January 25, 2011 7.2 Financial Institutions and Brokers/Dealers All financial institutions and broker/dealers who desire to conduct business with the City of Brookings shall supply the City with the following: • Audited financial statements, provided annually • Trading resolutions • Proof of state registration, if applicable • Copy of the broker’s license for the individuals servicing the account • Resume of individual servicing the account • Any pending legal or regulatory sanctions • Certification of having read and understood and agreeing to comply with the City of Brookings investment policy • Evidence of adequate insurance coverage 8.0 Authorized & Suitable Investments The City of Brookings is empowered by statue to invest in the following types of securities: • Interest bearing checking accounts • Savings accounts • United States Treasury bills, bonds and notes (SDCL 4-5-6) • United States Government Agencies (SDCL 4-5-6) Securities issued by government-sponsored enterprises (GSEs) or federally related institutions that are guaranteed directly or indirectly by the US Government. Securities issued by the Government National Mortgage Association (GNMA or Ginnie Mae) are an example of securities directly guaranteed by the government. Securities issued by other GSEs may be allowable. Interest bearing checking accounts • Certificates of Deposit (CDs) (SDCL 9-22(municipalities), Certificates of Deposit (CDs) purchased through CDARS® (Certificate of Deposit Account Registry Service) (SDCL 4-5-6.1)* • Money Market Mutual Funds - open-end, no-load (SDCL 4-5-6) Mutual and money market funds that invest in US Treasury securities or securities issued by GSEs or federally related institutions that are guaranteed directly or indirectly by the US Government. • Repurchase Agreements fully collateralized by allowable securities (SDCL 4-5-6) • Local Government Investment Pool (SD FIT) When investing in Certificates of Deposit (CDs) public funds will be invested at the highest rate of interest possible. The above listed authorized deposits will be kept in banks in South Dakota as required by SDCL 9-22-6. 9.0 Investment Pool 90 City Council Packet January 25, 2011 Government sponsored investment pools are sources for short-term cash management. A thorough investigation of the pool is required prior to investing, and on a continual basis. Before investing in these pools, the following issues must be reviewed: • The pool must provide a written statement of policy and objectives. • A questionnaire should be developed that will address the following general topics: A description of eligible investment securities, and a written statement of investment policy and objectives. A description of interest calculations and how it is distributed, and how gains and losses are treated. A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. A description of who may invest in the program, how often, what size deposit and withdrawal are allowed. A schedule for receiving statements and portfolio listings. A description of how reserves, retained earnings, etc. are utilized by the pool. A model of the fee schedule, and when and how it is assessed. A description of eligibility and/or acceptance of bond proceeds. • The pool must contain only the types of investment allowed by this policy. 10.0 Safekeeping and Custody 10.1 Delivery vs. Payment All trades of marketable securities, where applicable, will be executed by delivery vs. payment (DVP) to ensure that securities are deposited in an eligible financial institution prior to the release of funds. Securities will be held by a third party custodian as evidenced by safekeeping receipts. 10.2 Safekeeping Securities will be held by a (centralized independent third-party custodian selected by the city as evidenced by safekeeping receipts in the City’s name as per SDCL 4-5-9. The safekeeping institution shall annually provide a copy of their most recent report on internal controls (SAS 70). 10.3 Internal Controls The Finance Manager is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City of Brookings are protected from loss, theft, or misuse. The internal controls shall address the following points: • Control of collusion • Separation of transaction authority from accounting and recordkeeping • Custodial safekeeping • Delivery versus payment • Clear delegation of authority 91 City Council Packet January 25, 2011 • Confirmation of transactions for investments and wire transfers 11.0 Collateralization In accordance with the SDCL 4-6A and 51A-10-9 Qualified Public Depositories will furnish collateral in the sum equal to one hundred percent (100%) of the public deposit account that exceed deposit insurance. The Finance Manager will review quarterly the liability report and report of condition filed with the Office of the State Treasurer on website, www.sdtreasurer.gov to ascertain compliance by financial institutions of adequate collateral coverage. SDCL 5-6A-3 requires that collateral be segregated by each depository in such manner as approved by the South Dakota Deposit Protection Commission. Collateral may not be held in any safety deposit vault owned or controlled either by directly or indirectly by the pledging financial institution but must be deposited for safekeeping in a financial institution that is a member of the Federal Reserve. 12.0 Diversification The purpose of diversification is to reduce overall portfolio risk while attaining market rates of return and to enable the City of Brookings to meet all anticipated cash requirements. The investments shall be diversified by: • Limiting investments to avoid over-concentration in securities of a specific issuer (excluding treasury bills). • Limiting investment in securities that have higher credit risks. • Limiting certificates of deposit to the amount approved for each financial institution. • Investing in securities with varying maturities. 13.0 Maximum Maturies To the extent possible, the City of Brookings will attempt to match its investments with anticipated cash flow requirements. The City of Brookings will keep investments for duration not to exceed five (5) years 14.0 Reporting 14.1 Methods The Finance Manager shall prepare an investment report quarterly for the City Council. This report will include the following: • List of individual securities held at the end of the reporting period further broken down by issuer, purchase date, maturity date, coupon rate, par value, and yield to maturity. 92 City Council Packet January 25, 2011 14.2 Performance Standards The portfolio is benchmarked to the applicable treasuries constant maturities rate as reported by the Federal Reserve. 15.0 Policy Control 15.1 Exemption Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirements of this policy as long as it was in compliance with State of South Dakota Law and the City’s investment policy in effect at the time of purchase. At maturity or liquidation, such monies shall be reinvested only as provided by this policy. 15.2 Amendments This policy shall be reviewed to ensure consistency to overall objectives of safety, liquidity, yield, compliance to current law, and economic trends. 15.3 Requirements This investment policy is required by SDCL 4-5-8 and approved by the city council. Approved on July 24, 2000 Revised on March 26, 2001 Revised on July 27, 2004 Revised on January 25, 2011 City of Brookings, SD Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk 93 City Council Packet January 25, 2011 Glossary ACCRUED INTEREST: The accumulated interest payable on a security since the last interest payment made by the issuer. AGENCY: A debt security issued by a federal or federally sponsored agency. Federal agencies are backed by the full faith and credit of the U. S. Government. Federally sponsored agencies (FSAs) are backed by each particular agency with a market perception that there is an implicit government guarantee. An example of a federal agency is the Government National Mortgage Association (GNMA). An example of an FSA is the Federal National Mortgage Association (FNMA). AMORTIZATION: The systematic reduction of the amount owed on a debt issue through periodic payments of principal. ASKED: The price at which securities are offered. BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investment. BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer. BOOK ENTRY: An electronic system of accountability, custody, transfer, and settlement of securities. Book-entry systems allow rapid and accurate transfers of securities with simultaneous cash settlement. BOOK VALUE: The value at which a security is carried on the inventory lists or other financial records of an investor. The book value may differ significantly from the security’s current value in the market. BROKER: A broker brings buyers and sellers together for a commission. CALL PRICE: The price at which an issuer may redeem a bond prior to maturity. The price is usually at a slight premium to the bond’s original issue price to compensate the holder for loss of income and ownership. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CDs are typically negotiable. CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SERVICE (CDARS): A program with an approved depository that removes the need for collateral by providing full FDIC insurance for certificates of deposit. 94 City Council Packet January 25, 2011 COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date. CREDIT QUALITY: The measurement of the financial strength of a bond issuer. This measurement helps an investor to understand an issuer’s ability to make timely interest payments and repay the loan principal upon maturity. Generally, the higher the credit quality of a bond issuer, the lower the interest rate paid by the issuer because the risk of default is lower. Credit quality ratings are provided by nationally recognized rating agencies. CREDIT RISK: The risk to an investor that an issuer will default in the payment of interest and/or principal on a security. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U. S. Treasury Bills. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. DURATION: A measure of the timing of the cash flows, such as the interest payments and the principal repayment, to be received from a given fixed-income security. This calculation is based on three variables; term to maturity, coupon rate, and yield to maturity. The duration of a security is a useful indicator of its price volatility for given changes in interest rates. FAIR VALUE: The amount at which an investment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L’s, small business firms, students, farmers, farm cooperatives, and exporters. FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $100,000 per deposit. 95 City Council Packet January 25, 2011 FEDERAL FUNDS (Fed Funds): Funds placed in Federal Reserve banks by depository institutions in excess of current reserve requirements. These depository institutions may lend fed funds to each other overnight or on a longer basis. They may also transfer funds among each other on a same-day basis through the Federal Reserve banking system. Fed funds are considered to be immediately available funds. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D. C., 12 regional banks and about 5,700 commercial banks that are members of the system. FIDUCIARY: Person, company, or association holding assets in trust of a beneficiary. FUTURES CONTRACT: Agreement to buy or sell a specific amount of a commodity or financial instrument at a particular price on a stipulated future date. INVERTED YIELD CURVE: A chart formation that illustrates long-term securities having lower yields than short-term securities. This configuration usually occurs during periods of high inflation coupled with low levels of confidence in the economy and a restrictive monetary policy. INVESTMENT POLICY: A concise and clear statement of the objectives and parameters formulated by an investor or investment manager for a portfolio of investment securities. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARK-TO-MARKET: The process whereby the book value or collateral value of a security is adjusted to reflect its current market value. MARKET RISK: The risk that the value of a security will rise or decline as a result of changes in market conditions. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase---reverse repurchase agreement that 96 City Council Packet January 25, 2011 establishes each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid. OPTION: Right to buy or sell property that is granted in exchange for an agreed upon sum. If the right is not exercised after a specified period, the option expires and the option buyer forfeits the money. PORTFOLIO: Collection of securities held by an investor. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker-dealers, banks, and a few unregulated firms. PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state---the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity. REINVESTMENT RISK: The risk that a fixed-income investor will be unable to reinvest income proceeds from a security holding at the same rate of return currently generated by that holding. REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. 97 City Council Packet January 25, 2011 The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money that is, increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SPECULATION: Assumption of risk in anticipation of gain but recognizing a higher than average possibility of loss. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and corporations which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, and derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. SWAP: Trading one asset for another. TOTAL RETURN: The sum of all investment income plus changes in the capital value of the portfolio. For mutual funds, return on an investment is composed of share price appreciation plus any realized dividends or capital gains. This is calculated by taking the following components during a certain time period. (Price Appreciation) + (Dividends Paid) + (Capital Gains) = Total Return TREASURY BILLS: A non-interest bearing discount security issued by the U. S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BONDS: Long-term coupon-bearing U. S. Treasury securities issued as direct obligations of the U. S. Government and having initial maturities of more than ten years. TREASURY NOTES: Medium-term coupon-bearing U. S. Treasury securities issued as direct obligations of the U. S. Government and having initial maturities from two to ten years. VOLATILITY: A degree of fluctuation in the price and valuation of securities. WHEN ISSUED (WI): A conditional transaction in which an authorized new security has not been issued. All “when issued” transactions are settled when the actual security is issued. 98 City Council Packet January 25, 2011 YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. YIELD CURVE: A graphic representation that depicts the relationship at a given point in time between yields and maturity for bonds that are identical in every way except maturity. A normal yield curve may be alternatively referred to as a positive yield curve. YIELD-TO-CALL (YTC): The rate of return an investor earns from a bond assuming the bond is redeemed (called) prior to its nominal maturity date. 99 City Council Packet January 25, 2011 Other Business 19. Action on Resolution No. 08-11, an amendment to the City of Brookings Capital Assets Policy. Attached is the proposed revised capital assets policy for the City of Brookings. The original policy was adopted September 25, 2007. Revisions are being made to the useful lives of assets per staff recommendations based on historical data and use of the assets. Assets categorized by departments are being added within the policy. There is one addition to the Parks department and three additions to the Golf Course substantiate different types of mowers. These changes are highlighted. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City Manager Recommendation: Approve 100 City Council Packet January 25, 2011 Resolution No. 08-11 City of Brookings Capital Asset Policy Amended: January 25, 2011 Objective: Whereas, the City of Brookings is required to be accountable for all property under its control. Whereas, it is necessary to provide a standard method of maintaining records for the cities owned capital that city departments must follow. Now, Therefore, Be It Resolved the following Capital Assets Policy be adopted to provide control and accountability over all city capital assets. Purpose: The purpose of this capital asset policy to: 1) to provide control and accountability over capital assets, 2) to provide uniform procedures for furnishing information needed for effective analysis and control of capital expenditures, and 3) to provide a data base of inventory information to meet the reporting needs for the preparation of the Cities financial statements. The Benefits of Inventory System: 1. Property control and accountability through a comprehensive citywide inventory system. 2. Improved equipment utilization through control and identification of capital assets. 3. Database to meet the GAAP, Federal grants and City of Brookings requirements. 4. Data base to meet requirements of proper risk management and provide basis for identifying equipment for the City’s insurance. 5. Basis for management to project and budget future capital replacement requirements. The Finance Department is required to: 1. Establish a Generally Accepted Accounting Principles (GAAP) based accounting system and procedures to ensure the cities assets, including capital assets, are properly accounted for. 2. To provide a standard method of maintaining records for the cities owned equipment that city departments must follow. 3. To provide for the maintenance of an inventory of city owned or controlled land resources by the City. Policies differ in cases of absolute title and residual title. 1. When an external entity, such as the federal government retains residual title to a capital asset it will be included in the capital asset inventory (title remains at the disposal of the governmental authority after a delegation). 2. This includes capital on lease or long-term loan. 3. Temporary custodial responsibility or title shall not be considered absolute and should not be included as the cities capital asset. 101 City Council Packet January 25, 2011 Component units of the city must designate, in writing, one or more persons to be responsible for maintaining and safeguarding the component unit’s capital assets. The component unit is responsible for developing internal policies and procedures to protect and control the use of all capital assets. Capital projects will be tracked within a work in progress number assigned by the Finance Department. At the completion of the project the department in charge will: a) Break down the project into the proper categories to be added into the capital assets inventory. b) The Finance Office enters the above information in the Capital Assets Management System. 1) General Guidelines/Applicable Policies The City of Brookings requires all departments to be accountable for all property under its control. a) In accordance with state and federal guidelines, the current threshold for which an inventory of capital assets is maintained is $5,000 unless conditions of a grant require a lower threshold or assets of less value are subject to high rate of theft. b) The enterprise funds will continue to depreciate equipment purchased prior to 2003 in the same manner as previous to this policy until the equipment is fully depreciated. c) The City’s Departments responsibilities are to be accountable for all property under its control. 2) Department Responsibilities The departments have an important role in the maintenance of an accurate, up-to-date inventory system. Adherence to the following guidelines helps to ensure that departmental inventory records are as accurate and complete as possible. a) Entering correct information on purchases through the Accounts Payable (AP) system. Most of the data recorded on the Capital Assets system is taken directly from the vouchers. Correct coding by departments avoids the need for later corrections. b) Proper coding of capital assets expenditures. Equipment purchases must be coded with a ”5” and “900” expenditure object. Use of an object code outside the 5-900 ranges increases the possibility that the asset will be omitted from the CAP system. c) Entering correct asset location, serial numbers, make, etc on voucher saves considerable time and effort. 3) Capital Assets-Additions This statement explains the procedures for the addition of assets to the Capital Assets Management System. a) All capital equipment, regardless of whether the items are loaned to or owned by the City, must be included on the Capital Assets Management System. Additions of capital assets are generated by accounts payable, donations to the City, or equipment loans or private sources. b) The Finance Office is provided with copies and documents relating to the equipment purchases. (i.e. cost, fair market value, serial numbers, model numbers, building/room location of assets) 102 City Council Packet January 25, 2011 c) The Finance Office enters the above information in the Capital Assets Management System. 4) Capital Assets-Retirement a) Property unfit for use by reason of age, wear, tear, or otherwise and is beyond repair will be determined by City Manager. A note shall be given to the Finance Office to be entered into the Capital Assets Management System for that year of the condemnation of such property. b) Auctions or sealed bids for sale of unfit property is required. The property described on page 2 in 4 a) shall be sold only for cash at public auction or upon opening of sealed bids (1) The notice of the sale shall be published in the newspaper stating the following: • A day on which the sale is to be made (at least fifteen days after first publication) • Location where such auction will be held, or a place where offers or bids will be received (which day shall be at least fifteen days from the first publication of the notice). • The right to reject any or all bids shall be reserved. c) All money derived from the sale of public personal property shall be deposited to the City. d) Record retention. Departments should retain copies of surplus property forms, assets transfer form, stolen property reports and any other documentation regarding equipment dispositions. The information must be retained by the department for verification purposes until the Finance Office removes the item from the department’s inventory. Lost or destroyed property is to be noted in the inventory. An item is considered stolen when it has been illegally removed from its designated location. Send the Finance Office a copy of the stolen property report. 5) Capital Assets-Transfers This statement explains the procedures for the transfer of assets in the Capital Assets Management System. Transfers are recorded on the City’s inventory when there is a permanent change in asset location or physical custody. (i.e. from one department to another). If the equipment is temporarily loaned or relocated and the intention is to reclaim the item in the near future, the asset record need not be changed a) The physical custody of equipment is the responsibility of the department. All transfer data submitted to Finance Office must be accurate in order to ensure the reliability of the City’s inventory. b) Fill out the Equipment Transfer Disposition Request Form showing the old location and the new location. The form must be signed and dated by department head for the new location. 6) Capital Assets-Home Use of Equipment 103 City Council Packet January 25, 2011 This statement explains the procedures for notifying the Finance Office of equipment being used at home by management and staff. City management and staff may use equipment that is the property of the City at home, provided the following criteria are met: a) Use of the equipment at home will not interfere with the operational needs of the department. b) The appropriate department head approves home use. c) The equipment is used for City business only. d) Individuals who receive approval to remove equipment from the City for use at home for a period greater than 30 days should complete the Equipment Tracking Home Use Authorization Form. This form must be completed on any piece of equipment that is taken home regardless of the cost of the equipment or whether the asset is tagged. e) The first half of the form should be filled out when an employee is approved to use City equipment in his or her home for a period greater than 30 days. The original should be kept in the department’s files and a copy should be given to the employee. Once the equipment has returned to the City, the department should complete the bottom half of the original form that was retained in the departmental files. f) If the use of City equipment is less than 30days, then department should keep an internal record of equipment that has been approved for use off city property. The list should include a description of the equipment, the asset number, serial number, and the individuals name using the equipment, where the equipment is being used and the expected return date. 7) Capital Assets-Storage of Equipment on Privately Owned/Leased Premises This statement explains the procedures for requesting storage of assets at off-city locations that are privately owned or leased to the City. a) In order to maintain accurate inventory records and comply with asset control procedures, the Finance Office must be aware of approved storage of equipment at off- city locations. City personnel should anticipate storage needs in advance in order to obtain the proper approvals before removing the assets from the City. b) Fill out a request storage of assets at locations that are privately owned or leased to the City. The form must be signed by the City Manager and the Department Head and forwarded to the Finance Office. 8) Capital Assets-Gifts-in-kind This statement explains the procedures for reporting equipment and other assets donated to the City. a) All capital assets that are donated to the City must be included in the Capital Assets System inventory. It is the responsibility of each department head to notify the Finance Office when equipment and other assets are donated to the City. b) When donated items are received by departments, the pertinent sections of the Notification of Gift For must be completed and forwarded to the Finance Office. The Finance Office will record the information on its Capital Assets System. 9) Capital Assets-Annual Equipment Inventory 104 City Council Packet January 25, 2011 This statement provides policies and procedures relating to the annual physical inventory of capital assets conducted by departments. a) State regulations require the City to take an annual equipment inventory. Each department is responsible for verifying information about its own inventory and making all changes and corrections and forwarding them to the Finance Office. b) The Finance Office distributes annual inventory reports and instructions to departments in December of each year. All inventory reports are due back to Finance by January 11th. c) All changes and corrections should be made directly on the inventory printout. The department should keep a copy and send the original of the completed printout to the Finance Department. d) Use the departmental inventory printout to conduct a room-by-room equipment verification. Please verify all information on the report. 10) Capital Assets-Useful lives a) Depreciation is the systematic and rational allocation of the historical cost of a capital asset over its estimated useful service life. The estimated useful service life as listed will be for assets added in the year of 2011 and future years. (1) Buildings/Permanent structures 50 years (2) Buildings/Permanent structures/wood/pole 25 years (3) Buildings/Permanent structures/steel 35 years (4) Buildings/Portable structures 25 years (5) Buildings/Excavation 50 years (6) Buildings/Foundation 50 years (7) Buildings/Frame/masonry 50 years (8) Buildings/Frame/wood or pole 25 years (9) Buildings/Frame/steel 35 years (10) Buildings/Floor structure 50 years (11) Buildings/Floor covering 15 years (12) Buildings/Carpeting 10 years (13) Buildings/Computer flooring 10 years (14) Buildings/Exterior walls/masonry 50 years (15) Buildings/Exterior walls/wood or pole 25 years (16) Buildings/Exterior walls/steel 35 years (17) Buildings/Roof cover 15 years (18) Buildings/Roof cover/EDPM 20 years (19) Buildings/Interior construction 15 years (20) Buildings/Interior renovation 10 years (21) Buildings/Ceiling finish 10 years (22) Buildings/Plumbing 20 years (23) Buildings/HVAC 20 years (24) Buildings/Electrical/masonry 15 years (25) Buildings/Electrical/wood or pole 25 years (26) Buildings/Electrical/steel 35 years (27) Buildings/Elevator 20 years 105 City Council Packet January 25, 2011 (28) Roadways/Dirt 10 years (29) Roadways/Gravel 15 years (30) Roadways/Concrete 35 years (31) Roadways/Asphaltic Concrete 30 years (32) Roadways/Brick or Stone 50 years (33) Alleys/Concrete 40 years (34) Alleys/Asphaltic Concrete 25 years (35) Alleys/Dirt 10 years (36) Alleys/Gravel 15 years (37) Alleys/Brick or Stone 50 years (38) Sidewalks/Concrete 30 years (39) Sidewalks/Asphalt 25 years (40) Sidewalks/Gravel 10 years (41) Sidewalks/Brick or Stone 45 years (42) Parking Lots/Concrete 35 years (43) Parking Lots/Asphalt 20 years (44) Parking Lots/Gravel 10 years (45) Parking Lots/Brick or Stone 45 years (46) Airport Runways 30 years (47) Bridges/Continuous Concrete 50 years (48) Bridges/Prestressed Concrete 45 years (49) Bridges/Steel with Truss 50 years (50) Bridges/Steel Without Truss 45 years (51) Bridges/Timber/wood 30 years (52) Bridges/Pedestrian/Steel 30 years (53) Bridges/Pedestrian/Concrete 30 years (54) Bridges/Pedestrian/Wood 25 years (55) Major Culverts/Concrete 40 years (i) Precast box, precast elliptical Cast in place (56) Major Culverts/Concrete pre stress 40 years (57) Major Culverts/Timber log treated 30 years (58) Major Culverts/Steel 30 years (i) Corrugated round, Corrugated Bottomless arch (59) Small Culverts/Plastic 25 years (60) Small Culverts/Cast Iron 30 years (61) Small Culverts/Metal corrugated 30 years (62) Small Culverts/Concrete 50 years (63) Storm Drains/Plastic 25 years (64) Storm Drains/Cast Iron 30 years (65) Storm Drains/Metal Corrugated 30 years (66) Storm Drains/Concrete 40 years (67) Storm Drains/Ditch/Trench 100 years (68) Moveable Equipment (i) Athletic equipment 10 years 106 City Council Packet January 25, 2011 (ii) Audio visual equipment 7 years (iii) Books 7 years (iv) Multi-media materials 7 years (v) Business machines 7 years (vi) Contractors/construction equipment 12 years (vii) Furniture 20 years (viii) Machinery and tools 15 years (ix) Outdoors recreational equipment 15 years (x) Stage and auditorium equipment 20 years (xi) Custodial equipment 15 years (xii) Photocopiers 5 years (xiii) Sculptures/Wood 20 years (xiv) Sculptures/Stone 30 years Capital assets by department SOLID WASTE LANDFILL AND COLLECTION Landfill – Excavation of Cells (estimated # of years to fill excavation) Landfill – Leachate System (estimated life of landfill) Landfill – Liners (estimated life of landfill) Landfill – Test Wells (estimated life of landfill plus 30 years) Landfill large crawler loader 5 years Landfill large compactor 5 years Landfill large wheel loader 5 years Landfill small wheel loader 10 years Landfill blade 15 years Landfill grader 15 years Landfill pickups 10 years Landfill trucks 12 years Landfill tractors 10 years Collection-Garbage truck – rear loader 10 years Collection-Garbage truck – automated loader 8 years STREET DEPARTMENT Pickup 10 years Pickup for special use 20 years Tandem Trucks 12 years Skidsteer 10 years Loader 12 years Backhoe 20 years Street Sweeper 6 years Snow Blower 12 years Grader 12 years Blade 12 years Air compressor 15 years 107 City Council Packet January 25, 2011 Fuel computerized system 15 years Underground tanks 30 years Electronic Street Signals 15 years Road Signage 10 years RECREATION Buildings 50 years Parking lot 20 years Vehicle-Van 20 years Vehicle 20 years PARKS Buildings 50 years Restrooms 50 years Shelters 50 years Prefab shelters 50 years Pool 40 years Pool heaters 10 years Spectator heaters 15 years Irrigation system 40 years Parking lot 20 years Sidewalks 30 years Steel bridge 45 years Outdoor lighting 20 years Fencing, gates 35 years Retaining walls 20 years Bleachers 30 years Scoreboard 20 years Fountains 40 years Playground equipment 20 years Recreational equipment 15 years Landscaping 10 years Septic systems 15 years Underground tanks 30 years Athletic Field 40 years Soccer Fields 40 years Stadiums 45 years Skate Park 20 years Tennis courts 40 years Running track 30 years Disc Golf Facility 20 years Bike-Jogging Paths/Dirt 10 years Bike-Jogging Paths/Gravel 15 years Bike-Jogging Paths/Concrete 30 years Bike-Jogging Paths/Asphalt 20 years Grounds equipment 10 years 108 City Council Packet January 25, 2011 Mowers 10 years Other motorized equipment 15 years Tractor/compact skidsteer 15 years Tractor/standard 20 years Non motorized equipment/attachments 20 years Ice resurfacer 15 years Generator 15 years Pickups & trucks 10 years Seasonal Vehicles 20 years FORESTRY Buildings 50 years Loader /compact 15 years Motorized equipment 15 years Aerial trimming device 20 years Season vehicles 20 years Trucks and pickups 10 years GOLF COURSE Buildings-permanent 50 years Buildings-portable 25 years T-stands 40 years Driving range 40 years Executive nine 40 years Chipping green 40 years Concrete cart paths 30 years Mowers-Rough 15 years Mowers-Green 7 years Mowers-Fairway 10 years Tractors/compact 15 years Tractors/standard 20 years Motorized equipment 15 years Non motorized equipment 20 years Irrigation system 40 years Pumps 25 years Storm drainage improvements 25 years Pickups 10 years Pickups seasonal 20 years FIRE DEPARTMENT Fire Trucks (Structural Pumpers, Aerials, Rescue) 16 years 6F1 and 6F2 Command Vehicles 5 years Breathing air compressor 15 years Self Contained Breathing Apparatus (SCBA) 10 years Safety House 25 years Extrication equipment 10 years 109 City Council Packet January 25, 2011 Brush/Utility Trucks & Slide-in units 12 years Thermal Imagers 12 years POLICE DEPARTMENT Patrol Vehicles 3 years or 100,000 miles SRO Vehicle 7 years Unmarked Police Vehicles 8 years Animal Control Vehicle 5 years or 100,000 miles Sirens 15 years In vehicle video system 6 years Z-tron system 10 years Portable radios in vehicles 10 years Portable hand radios 8 years SWIFTEL CENTER Panels 20 years Window treatments 8 years Tradeshow equipment 12 years Food and beverage equipment 10 years Scoreboard & Electronic signs 10 years Scrubbers 5 years Battery back up 5 years Parking lots 20 years Concrete sealing 5 years Catwalk 50 years Air Conditioning Units 20 years Portable dance floor 10 years Portable stage 12 years Portable stalls 20 years Vehicles 20 years Skidsteer 10 years AIRPORT Building 50 years Grounds equipment 10 years Snow removal equipment 10 years ARFF truck (Fire truck) 20 years Fencing 30 years Gate opener 10 years Above ground fuel tanks 20 years Landscaping 10 years Runway lighting 10 years Taxiway lighting 10 years Runway asphaltic concrete 25 years Runway concrete 40 years Runway overlay 10 years 110 City Council Packet January 25, 2011 Beacon 20 years Security system 7 years Vehicles 10 years INFORMATION TECHNOLOGY Desktop computer 5 years Laptop computer 5 years Servers 6 years Networking (switches, firewalls, etc) 7 years Backup equipment 5 years Security system 7 years Small printers 6 years Large printer/copiers 5 to 10 years CODE ENFORCEMENT Vehicles 10 years 11) Forms a) Capital Asset Purchases b) Equipment Transfer Disposition Request c) Storage of Equipment on Privately owned/Leased Premises d) Equipment tracking home use authorization 111 City Council Packet January 25, 2011 (PLEASE attach a copy of the invoice to this form) DATE DEPARTMENT VENDOR NAME & NO. INVOICE DATE ACCOUNT NO. AMOUNT $ RESPONSIBLE PARTY (Job Title) LOCATION SERIAL # *LIFE OF ASSET *Refer to the Capital Asset Policy ~ use Article 10 ~ Identify category and useful life per policy COMPLETE DESCRIPTION List only ONE Capital Asset per form please. 112 City Council Packet January 25, 2011 CITY OF BROOKINGS Capital Asset System Equipment Transfer Disposition Request Equipment Description: Department: Name of Person Submitting Request: I. TRANSFER SECTION: To transfer asset to another department (requires dual signatures). II. DISPOSITION SECTION: To permanently remove assets from Capital Asset System. Please provide a brief narrative describing when and under what circumstances the asset was removed from inventory. If the equipment is returned or located in the future, the Finance Office must be notified as soon as possible to add the item(s) back into the inventory. Disposal Method (please check box and give explanation) Lost Destroyed Altered Hazardous Other Explanation: Both signatures below are required certifying the asset has been transferred to another department, or permanently removed from City Property by some other means. Asset Number: Date: Department Head Signature City Manager Signature 113 City Council Packet January 25, 2011 CITY OF BROOKINGS Capital Asset System Storage of Equipment on Privately owned/Leased Premises OFF-SITE STORAGE FACILITY Building Name: Address: Length of time equipment will be store at this facility: Reason for off-site storage: Description of Equipment: Asset Numbers: Department Head City Manager Please forward completed form to the Finance Office. 114 City Council Packet January 25, 2011 CITY OF BROOKINGS Equipment Tracking Home Use Authorization Department: : Name of User: Description of Equipment: Asset #: Justification for Home Use: Equipment condition: E – excellent G –good F –fair P –poor To Be Returned: Annual Review Date: Other User’s Signature Department Head COMPLETE UPON RETURN OF EQUIPMENT 115 The equipment listed above has been returned. User’s Signature Date Department Head Date Equipment condition: E – excellent G –good F –fair P –poor U –unusable L –lost S –Stolen X –Surplus Instructions for Initial Authorization: Complete and send original to Finance Office. Retain a copy for your files. Instructions for return: Use retained copy, complete bottom portion of form and send to Finance Office. Update equipment condition to the appropriate value. City Council Packet January 25, 2011 Passed and approved this 25th day of January, 2011. City of Brookings _______________________ Tim Reed, Mayor ATTEST: _________________________ Shari Thornes, City Clerk Passed: September 25, 2007 Amended: January 25, 2011 116 City Council Packet January 25, 2011 Other Business 20. Action on Resolution No. 09-11, establishing a Naming Rights Policy for the City of Brookings. Pursuant to your policy work session of last fall and the last meeting, you discussed the need for an adopted policy governing the process and procedure for assigning names to various items of City capital assets as a means of recognizing individuals. In the past, we have had several items named by the City in recognition of individuals on an intermittent, case-by- case, determination. Naming of facilities can be in honor of persons who exemplify high ideals of the community or in recognition of significant financial or in-kind contributions to the specific asset. Examples of each include Larson Ice Center, Moriarty Park, Swiftel Center, Fishback Soccer Park, Rotary and Lions Park, Bob Sheldon Field, Chittick Gardens, Sexauer Park, etc. Naming rights can also be utilized as a means of generating revenue as a result of the donations. Such revenue should be for capital expenses as opposed to operating expenses. Naming rights should not be confused with advertising rights, which is a totally different concept. Many businesses have purchased advertising rights at the Larson Ice Center, Swiftel Center, and many outdoor athletic facilities, for example. In each of these cases, we have specific administrative procedures governing advertising rights and they differ by facility. The purpose of advertising rights is strictly defined as an advertising investment on the part of the advertiser and an operating revenue stream on the part of the recipient. Attached is a proposed policy for naming rights. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City Manager Recommendation: Approve 117 City Council Packet January 25, 2011 Resolution No. 09-11 City of Brookings Naming Rights Policy Adopted: January 25, 2011 Objective: Whereas, the City of Brookings wishes to appropriately acknowledge individuals, organizations, and businesses by naming certain capital investment items and amenities in their honor, and Whereas, it is necessary and prudent to undertake such acknowledgements in a manner that provides a process for undertaking the naming of such items, and Whereas, it is desirable for the City of Brookings to utilize such naming rights procedure as a means of generating revenue to assist with deferring some of the capital costs of such public improvement, and Whereas, this policy shall not apply to naming rights for the Swiftel Center as an existing policy duly-adopted by the City Council is currently in effect. Now, Therefore, Be It Resolved by the City Council of the City of Brookings that the following Naming Rights Policy be adopted. Purpose: 1) Recognition of a donor who financially supported the item to be named in a significant amount to the satisfaction of the Council. 2) Recognition of a non-donor who exemplified a public stewardship, purpose, commitment or other high ideals of the community in an amount worthy of being named. 3) Where appropriate, generate revenue from private sources to defer a portion of the costs of the capital item. Items eligible to be named Items need to have significance worthy of a name by which it would be recognizable in the community, and be identified by its name. 1) Parks 2) Buildings, structures, unique monuments, and significant recreational amenities 3) Gardens and Landscaped areas 4) Trails and Pathway systems 5) Ponds or bodies of water of significance 6) Municipal streets Exclusions: Incidental items including but not limited to trees, park benches, planter boxes, picnic tables, etc. 118 City Council Packet January 25, 2011 Process 1) Persons may nominate/suggest a person and the item to be named by completing the NOMINATION FORM and submitting it to the City. 2) If the item nominated to be named is under the policy purview of an advisory board, the City Manager shall forward the nomination to the advisory board for a recommendation to the City Council. The City Manager shall also make a recommendation. 3) In the event the item to be named is not under the policy purview of an advisory board, the City Manager shall make a recommendation to the City Council. 4) The City Council shall make the final decision on all naming rights. 5) In cases where the City wishes to generate revenue to defer capital expenses through the utilization of this naming rights policy, staff shall seek out opportunities to identify and recruit potential donors. Recognition 1) Staff shall make the final determination of the means and methods of recognition of the named rights. (Signage, lettering, printing, etc. This shall be dependent upon, and will vary greatly, on the item to be named.) 2) Recognition shall be perpetual unless revoked by the City Council for just cause, or at the request of the namee or their family. 119 City Council Packet January 25, 2011 NAMING RIGHTS NOMINATION FORM Name/address of nominating person or organization: Date: Item proposed to be named (see attached policy for eligible items): Reason/justification for the nomination: Submit to: Office of City Clerk City of Brookings P.O. Box 270; 311 Third Avenue Brookings, SD 57006 605-682-6907 FAX FOR OFFICE USE ONLY Date Rec’d.: City Manager review: Advisory Board action (if necessary): City Council action: Action forwarded to appropriate Department for recognition: Recognition method: 120 City Council Packet January 25, 2011 121 21. Adjourn.