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Home My WebLink About2011_06_14 CC PKT1 Brookings City Council Tuesday, June 14, 2011 City Hall Council Chambers 311 Third Avenue 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 Quarterly Financial Report. 2. City of Brookings Five (5) Year Capital Improvement Plan. 3. City Council Member Ex-Officio Reports. 4. Joint Powers Board members‟ Report. 5. City Council member introduction of topics for future discussion. 6. 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 City Council minutes. C. Action on Resolution No. 66-11, a Resolution authorizing the City Manager to sign midterm renewal Wine Operating Agreement for The Shamrock, 1104 22nd Ave. So. D. Action on Resolution No. 67-11, a Resolution declaring bikes and miscellaneous items as surplus items. E. Action on Resolution No. 68-11, a Resolution removing uncollectible checks from the Swiftel Center records. Action: Motion to Approve, Request Public Comment, Roll Call *Matters appearing on the Consent Agenda are expected to be non-controversial and will be acted upon by the Council at one time, without discussion, unless a member of the Council or City Manager requests an opportunity to address any given item. Items removed from the Consent Agenda will be discussed at the beginning of the formal items. Approval by the Council of the Consent Agenda items means that the recommendation of the City Manager is approved along with the terms and conditions described in the agenda supporting documentation. Open Forum/Presentations/Reports 5. Open Forum. 6. SDSU Student Senate Report. 2 Contract Awards / Change Orders 7. Action on Resolution No. 69-11, a Resolution awarding contracts for Sidewalk & Curb & Gutter Replacement Project (2011-01SWR). Action: Motion to Approve, Request Public Comment, Roll Call 8. Action to award contracts for the Brookings City and County Government Center; Bid Package Number Two. Action: Motion to Approve, Request Public Comment, Roll Call 9. Action on Resolution No. 70-11, a Resolution Authorizing the Sale of Surplus Real Estate to Brett Behrends. Action: Motion to Approve, Request Public Comment, Roll Call 10. Action on Resolution No. 71-11, a Resolution Authorizing the Sale of Surplus Real Estate to Keith and Cathy Vanderwal-Rounds. Action: Motion to Approve, Request Public Comment, Roll Call Alcohol Licenses 11. Action on Resolution No. 72-11, authorizing the City Manager sign an Operating Agreement for an On/Off Sale Wine License for Cenex Zip Trip #63, 1005 6th Street. Action: Motion to Approve, Request Public Comment, Roll Call 12. Public Hearing and action on a temporary liquor application for Ray‟s Corner for a wedding reception at the National Guard Armory on August 20th. Action: Open & Close Public Hearing, Motion to Approve, Roll Call 13. Public hearing and action on Temporary Liquor License requests for the Shamrock for events on 7/9, 7/23, 8/6 (2), 9/2, 9/3 (2), 9/4, 9/10, 10/1, 10/29, 11/11, and 12/3/2011. Action: Open & Close Public Hearing, Motion to Approve, Roll Call 14. Public Hearing and action on an On-Off Malt License for Wooden Legs Brewing Company, 311 5th Street. Action: Open & Close Public Hearing, Motion to Approve, Roll Call 15. Action on a Video Lottery application for the Shamrock, 1104 22nd Ave. So. Action: Motion to Approve, Request Public Comment, Roll Call Other Business 16. Discussion and possible action on an annexation and future street project along Western Avenue. Action: Motion to Approve, Request Public Comment, Roll Call 17. Action to accept the 2010 City of Brookings Audit Report. Action: Motion to Approve, Request Public Comment, Roll Call 18. Action on Resolution No. 73-11, a Resolution giving approval to certain storm sewer facilities improvements; giving approval to the issuance and sale of a Revenue Bond to 3 finance, directly or indirectly, the improvements to the facilities; approving the form of the loan agreement and the Revenue Bond and pledging revenues and collateral to secure the payment of the Revenue Bond; and creating special funds and accounts for the administration of funds for operation of the system and retirement of the Revenue Bond. Action: Motion to Approve, Request Public Comment, Roll Call 19. Presentations by Liquor Applicants. Action: Informational 20. Executive Session for purposes of consulting with legal counsel on contractual matters and pricing and marketing. Action: Motion to enter executive session – voice vote Motion to leave executive session – voice vote 21. Action on Resolution No. 76-11, a Resolution Authorizing The Transfer Of Real Property To Brookings Economic Development Corporation, Inc. for Economic Development Purposes. Action: Motion to Approve, Request Public Comment, Roll Call 22. Adjourn. Brookings City Council Tim Reed, Mayor Jael Thorpe, Deputy Mayor & Council Member Council Members Tom Bezdichek, John Kubal, Mike McClemans, Keith Corbett, Ope Niemeyer Council Staff: Jeffrey W. Weldon, City Manager Steven Britzman, City Attorney Shari Thornes, City Clerk View the City Council Meeting Live on the City Government Access Channel 9. Rebroadcast Schedule: Wednesday 1:00pm / Thursday 7:00pm / Friday 9:00pm / Saturday 1:00pm The complete City Council agenda packet is available on the city website: www.cityofbrookings.org 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 of Brookings June 14, 2011 4 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 Quarterly Financial Report. Steve Meyer, Executive Vice-President/General Manager of Brookings Municipal Utilities, will provide the City Council with BMU‟s Quarterly Financial Report. City of Brookings June 14, 2011 5 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 of Brookings Five (5) Year Capital Improvement Plan. TO: Mayor and City Council Members FROM: City Manager Jeff Weldon RE: Draft 2012-2016 Capital Improvement Program As part of our annual budget process, we will update the Capital Improvement Program (CIP). This document is a five-year planning tool designed to itemize the intended year of purchase, cost, and revenue stream for major expenditures. Such items include property acquisition, heavy equipment, building and structural facilities, infrastructure, and major mechanical items throughout all departments. The final CIP is approved along with the annual operating budget. The emphasis is on the most current year; in this case, 2012; with less specificity in succeeding out-years to the fifth year. In many cases, the CIP for the later years serves as a “placeholder” for some items with more latitude and flexibility on those expenditures. This document remains a “work in progress” as staff has gone through the departments that have significant capital budgets, but for those departments that have smaller capital budgets, we will develop those during the operating budget process in the coming weeks. Before we go any further, staff wanted to preview the CIP with the Council with an emphasis on 2012 and progressively less consideration on 2013-2016. During the work session, we will go through each department‟s capital expenditure program. No specific action is needed on the CIP as it remains in draft form, but Council feedback on the prioritization of expenditures is requested as we discuss them. 6City of Brookings June 14, 20116 7City of Brookings June 14, 20117 8City of Brookings June 14, 20118 9City of Brookings June 14, 20119 10City of Brookings June 14, 201110 11City of Brookings June 14, 201111 12City of Brookings June 14, 201112 13City of Brookings June 14, 201113 14City of Brookings June 14, 201114 15City of Brookings June 14, 201115 16City of Brookings June 14, 201116 17City of Brookings June 14, 201117 18City of Brookings June 14, 201118 19City of Brookings June 14, 201119 20City of Brookings June 14, 201120 21City of Brookings June 14, 201121 22City of Brookings June 14, 201122 23City of Brookings June 14, 201123 24City of Brookings June 14, 201124 25City of Brookings June 14, 201125 26City of Brookings June 14, 201126 27City of Brookings June 14, 201127 28City of Brookings June 14, 201128 29City of Brookings June 14, 201129 30City of Brookings June 14, 201130 31City of Brookings June 14, 201131 32City of Brookings June 14, 201132 33City of Brookings June 14, 201133 34City of Brookings June 14, 201134 35City of Brookings June 14, 201135 36City of Brookings June 14, 201136 37City of Brookings June 14, 201137 38City of Brookings June 14, 201138 39City of Brookings June 14, 201139 40City of Brookings June 14, 201140 41City of Brookings June 14, 201141 42City of Brookings June 14, 201142 43City of Brookings June 14, 201143 44City of Brookings June 14, 201144 45City of Brookings June 14, 201145 46City of Brookings June 14, 201146 47City of Brookings June 14, 201147 48City of Brookings June 14, 201148 49City of Brookings June 14, 201149 50City of Brookings June 14, 201150 51City of Brookings June 14, 201151 52City of Brookings June 14, 201152 53City of Brookings June 14, 201153 54City of Brookings June 14, 201154 55City of Brookings June 14, 201155 56City of Brookings June 14, 201156 57City of Brookings June 14, 201157 58City of Brookings June 14, 201158 59City of Brookings June 14, 201159 60City of Brookings June 14, 201160 61City of Brookings June 14, 201161 62City of Brookings June 14, 201162 63City of Brookings June 14, 201163 64City of Brookings June 14, 201164 65City of Brookings June 14, 201165 66City of Brookings June 14, 201166 67City of Brookings June 14, 201167 68City of Brookings June 14, 201168 69City of Brookings June 14, 201169 City of Brookings June 14, 2011 70 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. 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 Niemeyer 2. Council Member Corbett Brookings Health Systems Board: 1. Council Member Kubal 2. Council Member McClemans City of Brookings June 14, 2011 71 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. 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 City of Brookings June 14, 2011 72 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. City Council member introduction of topics for future discussion. Any Council member may request discussion of any issue at a future meeting only. Items cannot be added for action at this meeting. A motion and second is required stating the issue, requested outcome, and time frame. A majority vote is required. City of Brookings June 14, 2011 73 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. 6. Council Invites & Obligations. Date Day Event & Brief Description Time Location / Town / Address / Directions June 14 Tuesday Council Photos 4:30 p.m. Council Chambers June 14 Tuesday Council Meeting 5:00 p.m. Council Chambers June 18-26 Friday- Saturday Open World Leadership Center – Russian Delegates in Brookings TBA TBA June 20 Monday Russian Delegation – Bus Tour of Brookings 4:30 p.m. June 20 Monday Russian Delegation – Evening Dinner & Social 5:15 p.m. Library June 28 Tuesday Council Meeting 5:00 p.m. Council Chambers July 4 Monday 4th of July Parade 12:00 p.m. line up 2:00 p.m. parade 3rd Street by City Hall July 12 Tuesday Council Meeting 5:00 p.m. Council Chambers July 14 Thursday 2011 Elected Officials Workshop 9:30 a.m. Ramkota, Pierre July 26 Tuesday Council Meeting 5:00 p.m. Council Chambers August 9 Tuesday Council Meeting 5:00 p.m. Council Chambers August 18 Thursday Campus / Community Forum 5:00 P.M. TBD August 23 Tuesday Council Meeting 5:00 p.m. Council Chambers September 13 Tuesday Council Meeting 5:00 p.m. Council Chambers September 15-17 Thursday- Saturday NLC 19th Annual Leadership Summit Minneapolis, MN September 27 Tuesday Council Meeting 5:00 p.m. Council Chambers 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 74 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 City Council minutes. C. Action on Resolution No. 66-11, a Resolution authorizing the City Manager to sign midterm renewal Wine Operating Agreement for The Shamrock. D. Action on Resolution No. 67-11, a Resolution declaring bikes and miscellaneous items as surplus items. E. Action on Resolution No. 68-11, a Resolution removing uncollectible checks from the Swiftel Center records. Open Forum/Presentations/Reports 5. Open Forum. 6. SDSU Student Senate Report. Contract Awards / Change Orders 7. Action on Resolution No. 69-11, a Resolution awarding contracts for Sidewalk & Curb & Gutter Replacement Project (2011-01SWR). 8. Action to award contracts for the Brookings City and County Government Center; Bid Package Number Two. 9. Action on Resolution No. 70-11, a Resolution Authorizing the Sale of Surplus Real Estate to Brett Behrends. 10. Action on Resolution No. 71-11, a Resolution Authorizing the Sale of Surplus Real Estate to Keith and Cathy Vanderwal-Rounds. Alcohol Licenses: 11. Action on Resolution No. 72-11, authorizing the City Manager sign an Operating Agreement for an On/Off Sale Wine License for Cenex Zip Trip #63, 1005 6th Street. 12. Public Hearing and action on a temporary liquor application for Ray‟s Corner for a wedding reception at the National Guard Armory on August 20th. 13. Public hearing and action on Temporary Liquor License requests for the Shamrock for events on 7/9, 7/23, 8/6 (2), 9/2, 9/3 (2), 9/4, 9/10, 10/1, 10/29, 11/11, and 12/3/2011. 14. Public Hearing and action on an On-Off Malt License for Wooden Legs Brewing Company. 15. Action on a Video Lottery application for the Shamrock. Other Business: 16. Discussion on annexation and future street project along Western Avenue. 17. Action to accept City of Brookings Audit Report. 18. Action on Resolution No. 73-11, a Resolution giving approval to certain storm sewer facilities improvements; giving approval to the issuance and sale of a Revenue Bond to finance, directly or indirectly, the improvements to the facilities; approving the form of the loan agreement and the Revenue Bond and pledging revenues and collateral to secure the payment of the Revenue Bond; and creating special funds and accounts for the administration of funds for operation of the system and retirement of the Revenue Bond. 19. Presentations by Liquor Applicants. 20. Executive Session for purposes of consulting with legal counsel on contractual matters and pricing and marketing. 21. Action on Resolution No. 76-11, a Resolution Authorizing The Transfer Of Real Property To Brookings Economic Development Corporation, Inc. for Economic Development Purposes. 22. Adjourn. City of Brookings June 14, 2011 75 CONSENT AGENDA #4 4. Action to approve the following Consent Agenda Items: * A. Action to approve the agenda. B. Action to approve City Council minutes. C. Action on Resolution No. 66-11, a Resolution authorizing the City Manager to sign midterm renewal Wine Operating Agreement for The Shamrock. D. Action on Resolution No. 67-11, a Resolution declaring bikes and miscellaneous items as surplus items. E. Action on Resolution No. 68-11, a Resolution removing uncollectible checks from the Swiftel Center records. *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 of Brookings June 14, 2011 76 CONSENT AGENDA #4 B. Action to approve City Council Minutes. The draft May 24th, June 1st, and June 2nd Brookings City Council minutes are enclosed for Council review and approval. City of Brookings June 14, 2011 77 Brookings City Council May 24, 2011 (unapproved) The Brookings City Council held a meeting on Tuesday, May 24, 2011 at 5:00 p.m., at City Hall with the following members present: Council Members John Kubal, Mike McClemans, Tom Bezdichek, Ope Niemeyer, Jael Thorpe (arrived 6:00 p.m.) and Keith Corbett. Mayor Tim Reed was absent. City Manager Jeff Weldon, City Attorney Steve Britzman and City Clerk Shari Thornes were also present. Council Member Bezdichek presided over the 5 p.m. work session. Review of Procedures for Code Enforcement of Rental Inspections. Council reviewed the code enforcement procedures for administration of the rental dwelling inspections. No changes were recommended. Discussion on Signage Costs for Parking Enforcement. In response to the increase of patrolling efforts for city parking violations, a study adding “no parking here to corner” signs at intersections of the areas south and east of SDSU was conducted by City Engineering intern Zachary Rothstein. Rothstein presented the study‟s findings to the Council. The study area boundary was from Seventh Avenue on the West to Faculty Drive on the East, and from Eleventh Street on the North to Fifth Street on the South. In total, 148 signs would be needed in the study area, with an estimated cost of $14,289.40. The material cost and labor cost per sign was assumed based on a May 11, 2011 pay estimate from the Brookings Streets Department to be $53.42 for materials and $43.13 for labor, bringing the total cost to $96.55 per sign. There was consensus from the Council that no further research was needed and no sign installation was warranted at this time. REGULAR MEETING. Deputy Mayor Thorpe presided over the 6 p.m. meeting. Consent Agenda. A motion was Corbett, seconded by Bezdichek, to approve the consent agenda: A. Action to approve the agenda. B. Action to approve the May 10 City Council minutes. C. Action to appoint Ben Stout to the Park & Recreation Board, college student representative, term expires 5/1/2012. D. Action on Resolution No. 61-11, Resolution authorizing Change Order No. 2 for Airport Wildlife Fence Project AIP #3-46-0005-023-2010, Brookings Regional Airport. Resolution No. 61-11 - Resolution Authorizing Change Order No. 2 for Airport Wildlife Fence project, AIP #3-46-0005-023-2010, American Fence Company, Inc. Be it Resolved by the City Council that the following change order be allowed for Airport Wildlife Fence Project, AIP #3-46-0005-023-2010: Construction Change Order Number 2 Additional work to remove and salvage existing fence and install 8‟ high woven wire fence with 4 strands of high tensile wire for a total increase of $2,703.00 to the contract Adjust the contract time by 107 calendar days to June 15, 2011. E. Action on Resolution No. 65-11, a Resolution establishing a Temporary Vendor Permit Fee. Resolution No. 65-11 - Establishing Temporary Vendor Permit Fee Whereas, the City is desirous in licensing and inspecting temporary vendors, City of Brookings June 14, 2011 78 Whereas, Ordinance No. 09-11requires a permit be obtained prior to a temporary vendor locating a business upon the sidewalk in the Central Business District, Whereas, the Temporary Vendor Permit Fee as per Ordinance No. 09-11 shall be set by resolution from time to time by the City Council, and Be It Resolved that the fee be adopted as follows: Temporary Vendor Permit, $50.00 On the motion, all present voted yes; motion carried. Contract Award Brookings City and County Government Center #2. A motion was made by Kubal, seconded by Corbett to award the contracts for the Brookings City and County Government Center, Bid Package #2 to: Contract #0610, Mills Construction, Inc., in the amount of $419,700; Contract #0750, Guarantee Roofing & Sheet Metal of SD, Inc., in the amount of $304,837; Contract #0840, Midwest Glass, Inc., in the amount of $279,590; Contract #0920, Fox Drywall & Plastering, Inc., in the amount of $650,000; Contract #0966, Kenneth Janning & Sons, Inc., in the amount of $124,050; Contract #2100, Total Fire Protection, Inc., in the amount of $102,997; Contract #2200, Krier & Blain, Inc., in the amount of $925,500; Contract #2300, Manning Mechanical, Inc., in the amount of $537,000; Contract #2500, Johnson Controls, Inc., in the amount of $118,656; and Contract #2600, American Electric Construction, in the amount of $824,670. All present voted yes; motion carried. The following is a summary of bids received on May 17, 2011: Contract #0610 – Rough Carpentry / Accessories: Mills Construction, Inc. bid of $419,700, and Crossroad Construction, Inc. bid of $499,900. Contract #0750 – Roofing / Sheet Metal / Wall Panels: Guarantee Roofing & Sheet Metal of SD, Inc. bid of $304,837, Dalsin Inc. (dba MJ Dalsin Roofing & Sheet Metal), bid of $353,694, Architectural Roofing & Sheetmetal, Inc. bid of $376,530, and Pro Tec Roofing, Inc. bid of $398,730. Contract #0840 – Aluminum Entrances / Windows / Glazing: Midwest Glass, Inc., bid of $279,590. Contract #0920 – Drywall / EIFS: Fox Drywall & Plastering, Inc. bid of $650,000, Cornerstone Mastering and Drywall, Inc. bid of $749,888, Olympic Companies, Inc. bid of $757,120, Sands Drywall, Inc. bid of $797,111, and GJP, Inc. (Gerald Johnson Plastering & Drywall) bid of $996,800. Contract #0966 – Resinous Matrix Terrazzo Flooring: Kenneth Janning & Sons, Inc. bid of $124,050, Advance Terrazzo and Tile Co., Inc. bid of $167,000, Grazzini Brothers and Company bid of $172,500, Twin City Tile and Marble Co. bid of $175,370, and WTG Terrazzo & Tile, Inc. bid of $183,800. Contract #2100 – Fire Protection: Total Fire Protection, Inc. bid of $102,997, Summit Fire Protection bid of $104,000, Midwestern Mechanical, Inc. bid of $105,650, Building Sprinkler, Inc. bid of $115,000, Howe Heating & Plumbing, Inc. bid of $120,000, Xtrene Fire Protection, LLC bid of $126,800, and Rapid Fire Protection, Inc. bid of $130,950. Contract #2200 – Plumbing & Hydronics: Krier & Blain, Inc. bid of $925,500, Hander Inc. Plumbing & Heating bid of $953,480, Howe Heating & Plumbing Inc. bid of $1,010,000 and Redlinger Bros. Plumbing & Heating Co. bid of $1,075,000. Contract #2300 – HVAC: Manning Mechanical Inc. bid of $537,000, Baete-Forseth HVAC bid of $564,600, Active Heating Inc. bid of $580,000, McDowall Company bid of $587,980, Chappell Central Inc. bid of $597,000, Tessier‟s Inc. bid of $597,400, and Krier & Blain, Inc. bid of $614,900. Contract #2500 – Temperature Controls: Johnson Controls, Inc. bid of $118,656, G&R Controls, Inc. bid of $119,400, Climate Systems, Inc. bid of $136,220, Direct Digital Control bid of $164,717, and Start Control bid of $165,417. Contract #2600 – Electrical / Communication / Security: American Electric Construction bid of $824,670, Engelstad Electric City of Brookings June 14, 2011 79 Co. bid of $886,759, Clites Electric Construction, Inc. bid of $891,880, Thompson Electric bid of $931,914, and Muth Electric Inc. bid of $913,973. Resolution No. 62-11. A motion was made by McClemans, seconded by Bezdichek, to approve Resolution No. 62-11, awarding contracts for 2011-08STI Street Maintenance and Overlay Project. No public comment. All present voted yes; motion carried. Resolution No. 62-11 - Resolution Awarding Bids on Project 2011-08STI, Street Maintenance and Overlay Project Whereas, the City of Brookings opened bids for Project 2011-08STI Street Maintenance and Overlay Project on Tuesday, May 17, 2011 at 1:30 pm at Brookings City Hall; and Whereas, the City of Brookings has received the following bids for Project 2011-08STI Street Maintenance and Overlay Project: Schedule A Overlays, Bowes Construction Co., Inc. bid of $482,066.9; Schedule B Larson Ice Arena, Bowes Construction Co., Inc. bid of $120,274.80. Total Schedule A + Schedule B in the amount of $602,341.77. Now Therefore, Be It Resolved that the total low bid of $602,341.77 for Schedules A and B for Bowes Construction Co., Inc., Brookings, SD be accepted. Resolution No. 63-11. A motion was made by Kubal, seconded by Bezdichek, to approve Resolution No. 63-11, awarding contracts for 2011-09STI Asphalt Concrete Freight on Board (FOB) Project. No public comment. All present voted yes; motion carried. Resolution No. 63-11 - Resolution Awarding Bids on Project 2011-09STI, Asphalt Concrete Freight On Board Project Whereas, the City of Brookings opened bids for Project 2011-09STI Asphalt Concrete Freight On Board Project on Tuesday, May 17, 2011 at 1:30 pm at Brookings City Hall; and Whereas, the City of Brookings has received the following bids for Project 2011-09STI Asphalt Concrete Freight on Board Project: Bowes Construction Co., Inc., $65,155.00. Now Therefore, Be It Resolved that the total low bid of $65,155.00 for Bowes Construction Co., Inc., Brookings, SD be accepted. Temporary Liquor License – The Shamrock. A public hearing was held on Temporary Liquor License requests for the Shamrock for the following events: 6/3 wedding reception, 6/11 wedding receptions (2), 6/18 wedding receptions (2), and 6/25/2011 wedding reception. No public comment. A motion was made by Niemeyer, seconded by Corbett, to approve. All present voted yes; motion carried. Ordinance No. 12-11. A motion was made by Kubal, seconded by Bezdichek, to approve Ordinance No. 12-11, an Ordinance amending Article IV of Chapter 26 of the Code of Ordinances of the City of Brookings to establish additional regulations pertaining to Pawnbrokers in the City of Brookings, South Dakota. All present voted yes; motion carried. Annual Malt Renewals. A public hearing was held on the annual malt alcohol license renewals. No public comment. A motion was made by Corbett, seconded by McClemans, to approve the following Malt Renewals for the 2011-2012 calendar year: On-Off Sale Malt: Gonz Production, Inc. (Main Street Pub), 408 Main Ave., Old Sanctuary, 928 4th St., Guadalajara, Village Square Mall #1, Boss‟ Pizza & Chicken, 420 Main Ave., Skinner‟s Pub, 300 Main Ave., Cottonwood Bistro, 1710 6th St., George‟s Pizza & Steakhouse, 311 Main Ave., Danny‟s, 703 City of Brookings June 14, 2011 80 Main Ave. So., BraVo‟s, 610 Medary Ave., Pizza Hut #2769, 418 6th St., Oly‟s Neighborhood Pub & Grill, 725 Main Ave. So., Ray‟s Corner, 401 Main Ave., Carpy‟s Pub, 700 22nd Ave. So., Edgebrook Golf Course, 1415 22nd Ave. So., Taste of Europe, 1300 Main Ave. So., Sixth Street Diner, 223 6th St., South Main Diner, 615 Main Ave. So., Casino 2000, 622 25th Ave., The Shamrock, 1104 22nd Ave. So., Swiftel Center, 824 32nd Ave., PNP Pub, 318 2nd St. So., Schoon‟s PNP Pub South, 1203 Main Ave. So., Cubby‟s Sports Bar & Grill, 307 Main Ave., Brookings Softball Assoc. (Southbrook Softball Diamonds), 2800 22nd Ave. So., and Sun-Dried Tomato Pizzeria, 417 Main Ave. Off-Sale Malt: Jim‟s Tap, 309 Main Ave., Sully‟s Irish Pub, 421 Main Ave., Schoon‟s Pump-n-Pak, 202 S. Main Ave., Gas N Mor, 600 6th St., CHS (dba Zip Trip #63), 1005 6th St., CHS (dba Zip Trip #64), 3045 LeFevre Dr., BP of Brookings, Inc., 2420 6th St., Newman‟s Kerr McGee, 503 6th St., Hy-Vee Food Store, 700 22nd Ave., Hy-Vee Gas, 716 22nd Ave. So., Wal-Mart Supercenter #1538, 2233 6th St., Fireside Inc., 2515 E. 6th St., and El Tapatio, Inc., 1717 6th St. Off-Sale Malt and Off-Sale SD Farm Wine (package): Casey‟s General Store #2419, 534 22nd Ave. So., Casey‟s General Store #1694, 620 8th St. So., and Casey‟s General Store #2198, 122 West 6th St. All present voted yes; motion carried. Video Lottery Application. A motion was made by Bezdichek, seconded by McClemans, to approve a Video Lottery License for Main Street Pub, 408 Main Ave., Garner Hansen, owner. No public comment. All present voted yes; motion carried. On-Off Malt License. A public hearing was held on an On-Off Sale Malt License for Gas „N Mor, Brookings Developers, Inc., 606 6th Street, Lots 5-7, Block 11, Second Addition. Public comments: Representatives of the United Methodist Church voiced opposition to the request citing proximity to a residential neighborhood and churches. A motion was made by McClemans, seconded by Kubal, to approve the request. Bezdichek, Corbett, Kubal, and McClemans voted yes; Niemeyer and Thorpe voted no; motion carried. Video Lottery Application. A motion was made by McClemans, seconded by Kubal, to approve a Video Lottery License for Gas „N Mor, Brookings Developers, Inc., 606 6th Street. Bezdichek, Corbett, Kubal, McClemans and Thorpe voted yes; Niemeyer voted no; motion carried. Resolution No. 64-11. A public hearing was held on Resolution No. 64-11, a Resolution determining the necessity of installing sidewalks in the City of Brookings at the expense of abutting property owners, 2011-01SWR Sidewalk Repair Project. Public comment: Inquiries were made by Bill Davidson and Larry Ayres. Opposing comments and individual concerns were made by Dave Dininger Bill Hinshaw, Lance Park, Steve Gyliing, Christy Sik, Paul Moriarty, Jeff Jackson, David Kneip, and Lori Krogman. A motion was made by Kubal, seconded by Bezdichek, to approve Resolution No. 64-11. All present voted NO, McClemans abstained, motion failed. Adjourn. A motion was made by Kubal, seconded by Corbett, to adjourn. All present voted yes; motion carried. Meeting adjourned at 7:43 p.m. CITY OF BROOKINGS ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk City of Brookings June 14, 2011 81 Brookings City Council June 1, 2011 (unapproved) The Brookings City Council held a special meeting on Wednesday, June 1, 2011 at 3:00 p.m., at City Hall with the following members present: Mayor Tim Reed, Council Members John Kubal, Mike McClemans, Ope Niemeyer, Jael Thorpe and Keith Corbett. Council Member Tom Bezdichek was absent. City Manager Jeff Weldon, City Attorney Steve Britzman and Deputy City Clerk Bonnie Foster were also present. Policy Discussion regarding Intergovernmental Funding. Senator Larry Tidemann and Representatives Scott Munsterman and Spencer Hawley discussed school funding for K-12 and higher education. Discussion on Liquor License and Restaurant Licenses. Discussion ensued regarding full Liquor Licenses versus Restaurant Licenses, and where the city is at in the process of issuing Restaurant Licenses. Mayor Reed expressed the need to form a small committee to work on this issue now prior to the next Legislative Session. The committee would consist of City Manager Weldon, Mayor Reed, Representative Munsterman, SDML Exec. Director Yvonne Taylor, and City of Brookings Lobbyist Arne Brown. Adjourn. A motion was made by Reed, seconded by Thorpe, to adjourn. All present voted yes; motion carried. Meeting adjourned at 4:50 p.m. CITY OF BROOKINGS ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk City of Brookings June 14, 2011 82 Brookings City Council June 2, 2011 (unapproved) The Brookings City Council held a special meeting on Thursday, June 2, 2011 at 5:00 p.m., at City Hall with the following members present: Mayor Tim Reed, Council Members John Kubal, Mike McClemans, Ope Niemeyer, Jael Thorpe and Keith Corbett. Council Member Tom Bezdichek was absent. City Attorney Steve Britzman was also present. Executive Session. A motion was made by Kubal, seconded by Thorpe, to enter into Executive Session at 5:00 p.m. for reviewing communications from legal counsel about proposed or pending litigation or contractual matters with Community Development Director Mike Struck, Representative Spence Hawley, BEDC Representatives Mike Bartley and Ryan Brunner, the City Council and City Attorney present. All present voted yes, motion carried. A motion was made by Kubal, seconded by Corbett, to exit Executive Session at 6:03 p.m. All present voted yes, motion carried. Adjourn. A motion was made by Corbett, seconded by Niemeyer, to adjourn. All present voted yes; motion carried. Meeting adjourned at 6:03 p.m. CITY OF BROOKINGS ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk City of Brookings June 14, 2011 83 CONSENT AGENDA #4 C. Action on Resolution No. 66-11, a Resolution authorizing the City Manager to sign midterm renewal / Wine Operating Agreement for The Shamrock, 1104 22nd Ave. So. The City of Brookings enters into Wine Operating Agreements for a ten- year period with a renewal at five years. The Operating Agreement for The Shamrock, located at 1104 22nd Ave. So., is at the five-year point in the 10-year agreement. Resolution No. 66-11, would allow the City Manager to enter into the remaining five years of the agreement. Resolution No. 66-11 The Shamrock Operating Agreement Renewal - Wine BE IT RESOLVED by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Renewal Agreement for the Operating Wine Management Agreement between the City of Brookings and Mike Bailey, The Shamrock, for the purpose of a liquor manager to operate the on-sale establishment or business for and on behalf of the City of Brookings at 1104 22nd Ave. So., also known as the Shamrock. BE IT FURTHER RESOLVED that the City Manager be authorized to execute the Agreement on behalf of the City, which shall be for a period of five (5) years. Passed and approved this 14th day of June 2011. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings June 14, 2011 84 CONSENT AGENDA #4 D. Action on Resolution No. 67-11, a Resolution declaring bikes and miscellaneous items as surplus items. Council action is required to declare items as surplus for disposal when they no longer necessary or useful for city purposes. The following is a list of items from the City General & Enterprise Fund Departments including abandoned bicycles recovered by the Brookings Police Department over the past year. Resolution No. 67-11 Appraising and Authorizing Sale of Surplus Property Whereas, the City of Brookings has surplus items which are no longer necessary or useful for City purposes, and it is the desire of the City to dispose of same as surplus property; Now, Therefore, Be It Resolved, that the attached listed property be declared surplus by the City Council. Further Be It Resolved by the City Council that the property be offered for sale at public auction, date yet to be determined. Passed and approved this 14th day of June, 2011. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings June 14, 2011 85 Fire Department: 2006 Hp Color Laserjet 3600dn Printer; Brookings Library: Microwave oven, shredder, Video Projector, 4 ballast, 3 clocks, dustbuster; Street Dept.: Sharp AR-5132 Printer (Capital Asset #101-0671). City of Brookings June 14, 2011 102 CONSENT AGENDA #4 E. Action on Resolution No. 68-11, a Resolution removing uncollectible checks from the Swiftel Center records. The following checks from the Swiftel Center are uncollectible: 04-2008 Corey & Heather Ridgway $391.91 07-2009 Taylor Companies/Kyle Haug $3,039.36 Resolution No. 68-11 Uncollectible Checks Removed From Swiftel Center Records Whereas, The Swiftel Center has received a total amount of $3,431.27 in no account checks: $391.91 – 04-2008 Corey & Heather Ridgway, $3,039.36 – 07-2009 Taylor Companies/Kyle Haug; and Whereas, these checks and bills have been processed for collection with the States Attorney and Sheriff‟s Office and have been considered uncollectible; Now, Therefore, Be It Resolved that the checks totaling $3,431.27 for the Swiftel Center be determined as uncollectible and removed from the records. Such checks will be retained by the State‟s Attorney Office to support possible subsequent collection of that debt. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings June 14, 2011 103 Open Forum 5. 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. 6. SDSU Student Senate Report. President – Mark York Vice-President – Anthony Sutton Administrative Assistant – Brooke Reiner Finance Chair – Brian Gottlob State & Local Chair – Jameson Berreth SDSU Senate Website: http://www.wix.com/sdsu_sa/sa City of Brookings June 14, 2011 104 Contract Awards / Change Orders 7. Action on Resolution No. 69-11, a Resolution awarding contracts for Sidewalk & Curb & Gutter Replacement Project (2011- 01SWR). This project is the annual concrete project and entails construction of miscellaneous concrete work in the 2011 sidewalk area which is the area east of Medary Avenue between 6th Street and Orchard Drive. This project included repair of curb and gutter, fillets, valley gutters, curb ramps and homeowner trip hazard sidewalks. Also included with this project was concrete pavement repair on Railroad Street which was scheduled in the 2011 budget as the second year of the 5-year repair plan. In addition, new valley gutter is included on City property for the east/west drainage swale located between Western Avenue and the pedestrian bridge east of Indian Hills Road. The sidewalks included in this project are in the 2011 inspected area which is located east of Medary Avenue between 6th Street and Orchard Drive. The sidewalks on this project are different than the sidewalks discussed at the May 24th public hearing since they are existing sidewalks that are creating a trip hazard. The property owners with sidewalks that constitute a trip hazard were given the opportunity to replace the sidewalks themselves or be added to the City project. The sidewalks included in this project are those that were not completed by the deadline and those that requested to be on the City project. After this project is complete, the cost of the sidewalk plus 6% administration fee is assessed to the corresponding property owners. The bid letting was held on Tuesday, June 07, 2011 and the City received the following bids: Timmons Construction, Inc., Brookings, SD $103,147.50 Concrete Contractors, Inc., Brookings, SD $120,730.00 Owens Enterprises, Inc., Brookings, SD $117,247.50 The low bid was approximately 34% lower than the engineer‟s estimate of $158,322.50. In general, many of the items in the bid proposal were a lower cost than the 2010 prices. For example, the price for installation of 4” PCC sidewalk was $2.40 per square foot in 2011 and was $3.50 per square foot in 2010. This results both in a cost savings to the City and the property owners that are included in the sidewalk project. Timmons Construction, Inc., has not bid on a City project, however they have constructed concrete work in Windermere Addition and at SDSU. Recommend awarding the contract to Timmons Construction, Inc., of Brookings, SD for the low bid of $103,147.50. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings June 14, 2011 105 Resolution No. 69-11 Resolution Awarding Bids on Project 2011-01SWR Curb & Gutter and Sidewalk Repair Project Whereas, the City of Brookings opened bids for Project 2011-01SWR Curb & Gutter and Sidewalk Project on Tuesday, June 7, 2011 at 1:30 pm at Brookings City Hall; and Whereas, the City of Brookings has received the following bids for Project 2011-01SWR Curb & Gutter and Sidewalk Project: Timmons Construction, Inc., Brookings, SD $103,147.50 Concrete Contractors, Inc., Brookings, SD $120,730.00 Owens Enterprises, Inc., Brookings, SD $117,247.50 Now Therefore, Be It Resolved that the low bid of $103,147.50 for Timmons Construction, Inc., Brookings, SD be accepted. Passed and approved this 14th day of June 2011. CITY OF BROOKINGS ________________________________ Tim Reed, Mayor ATTEST: _________________________ Shari Thornes, City Clerk City of Brookings June 14, 2011 106 Contract Awards / Change Orders 8. Action to award contracts for the Brookings City and County Government Center; Bid Package Number Two. TO: Mayor and City Council Members FROM: City Manager Jeff Weldon RE: Final contract awards for Bid Package #2 Joint City-County Government Building At the last City Council meeting, you approved contract awards for 10 of 18 contracts comprising Bid Package #2 of the abovementioned project. The final eight contracts had yet to be reviewed with the apparent low bidder by the Construction Manager which is part of the process. Those evaluations and meetings have since been held and the Construction Manager recommended to the Joint Powers Board approval of the final eight contract awards that are attached. The JPB met on May 31 and agreed to the recommendation and are forthwith forwarding that recommendation to you and the County Board. The County Board is set to consider this recommendation at their next Commission meeting on June 7. The only irregularity in the bidding is for Contract #0833 (Coiling Doors/Sectional). The apparent low bidder was Overhead Door Company of Sioux Falls, Inc.; which was slightly lower than Skold Specialty Contracting. Upon review of the bid by Overhead Door Company, the bid was not in compliance with the specifications and needs to be rejected. Recommended Motion: The eight remaining contracts be awarded to those so indicated on the attachment; and that the bid from Overhead Door Company for Contract #0833 be rejected as an unresponsive bidder. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call BROOKINGS CITY ICOUNTY JOINT POWERS BOARD MEETING Tuesday, May 31, 2011 The Joint Powers Board met on Tuesday, May 31, 2011 with the following members present: John Kubal, Tim Reed, Dennis Falken and Alan Gregg. Also in attendance were Jeff Weldon, Stephanie Ellwein, Mark Kratochvil and Steve Britzman. Project Manager Tom Ginter with Bossardt Corporation and Architect Todd Moss with Cannon, Moss, Brygger were at the meeting via telephone. REGULAR BUSINESS Chairperson Kubal called the meeting to order and a quorum was established. City Manager Jeff Weldon said that the construction manager was able to meet with the final 8 apparent low bidders. Project Manager Tom Ginter said that all the meetings went well and all the bidders insured them that they have all of the items in the contracts covered. Ginter recommended approval of the final 8 awards. In speaking with Clark Drew regarding the Manufactured Casework/Woodwork contract, Ginter said that they had everything well covered. He said he checked with two other companies that were going to submit bids for that contract and both bids were over $500,000, so Ginter said that he believes they got a fair price. Ginter also discussed the Testing & Balancing contract and said that this is done right at the end where they go through and check the air flow from the duct work and make sure the proper exchange is taking place and that each vent is producing the right amount and the return air is going back as designed. Ginter also explained why Overhead Door, whose bid was lower for the Coiling Doors/Sectional contract, wasn't accepted. He said they didn't have a bid bond, they didn't recognize any addendums and it wasn't a sealed bid. Weldon said that if they want to make changes to the Clark Drew contract, they could reduce the amount of wood in the building. But he said they would incur more costs with the architect and it would take time. He said it would also reduce the visual impact that the wood creates. Reed said that the design looks good the way it is. He said it's a classic look, but still has a warm feel. Falken said that it would be a mistake to change it now. He said that they have put in a lot of effort to not go over the top with the design. Kubal asked about the two bid awards to Grazzini Brothers and Company. Ginter explained that they are for tile and for carpet, both for floor coverings. Motion by Reed, seconded by Falken to accept the recommendations of the construction manager for the remaining 8 bids for Bid Package #2 and note that the bid for contract #833 -Coiling Doors/Sectional from Overhead Door Company of Sioux Falls, Inc. is not responsive due to a lack of a bid bond; those bids being as follows: contract #833, Coiling Doors/Sectional to Skold Specialty Contracting for $19,111; contract #930, Tile to Grazzini Brothers and Company for $58,585; contract #950, Acoustical Ceilings to Gemini Acoustical, LLC for $88,995; contract #965, Resilient Flooring/Carpet to Grazzini Brothers and Company for $203,809; contract #990, Painting to Ellis-Lieffort Painting, Inc. for $153,200; contract #1022, Operable Partitions to Skold Specialty Contracting for $10,500; contract #1230, Manufactured Casework/Woodwork to Clark Drew Construction, Inc. for $499,600; contract #2305, Testing and Balance to Tab Systems, Inc. for $20,200. All members voted "aye." Motion carried. Weldon said that talked with Brent Koch with architects Cannon, Moss, Brygger and he said that the bulletproofing on the dais in the chambers was not included in the bid. He asked if that want that back in. Ginter said the preliminary pricing is $100 per square foot. Weldon said it would be approximately $14,200. Todd Moss with Cannon, Moss, Brygger said it would need to be put in during the construction process. Motion by Reed, seconded by Gregg to move forward in adding the protective materiaL to the dais in the chambers. Weldon said that this would require a change order to Clark Drew's contract. Falken said that he wouldn't do it for himself, but because they are trying to make a decision for everyone who will sit at that table and if something happens and they had the opportunity to do it, it's better to have it. Gregg said that it could be an issue 10 different commissions and councils down the road, but it's best to have it. Kubal agreed that it's better to put it in now. Al members voted "aye." Motion carried. Ginter explained that the contract for Clark Drew has to be awarded as is. He said they will receive a request for proposals from the architects, Clark Drew will provide a price and if they are comfortable with that price, it will become a change order to that contract that will be need to be approved by the Joint Powers Board and the full commission and council. ADJOURNMENT Motion by Gregg, seconded by Reed to adjourn. All members voted "aye." Motion carried. It is the policy of Brookings County, South Dakota, not to discriminate against the Handicapped in Employment or the Provision of Service. The County of Brookings is responsive to requests for communication aids and the need to provide appropriate access, and will provide alternative formats and accessible locations consistent with the Americans with Disabilities Act. Stacy Steffensen Deputy Finance Officer Brookings County Finance Office Published once at the total approximate cost of _____ _ City of Brookings June 14, 2011 111 Contract Awards / Change Orders 9. Action on Resolution No. 70-11, a Resolution Authorizing the Sale of Surplus Real Estate to Brett Behrends. To: Mayor and City Council Members Jeff Weldon, City Manager From: Mike Struck, Community Development Director Re: Telkamp Industrial Park Surplus Real Estate The City of Brookings held a public auction on May 26, 2011 at 10:00 a.m. to sell two surplus lots in the Telkamp Industrial Park. Notice of the auction was published twice in the Brookings Register, with the first being May 13th and the second on May 20th. In addition, block ads were published in the Register on May 21st and the Town and Country Shopper on May 11th and 18th. The advertisement and supplemental information was posted on the City of Brookings website and distributed to area realtors via the Realtor‟s Association. The surplus property is as follows: Lot Eight (8) in Block One (1) of Telkamp Industrial Addition to the City of Brookings, County of Brookings, State of South Dakota (1.32 acres +/-). Brett Behrends was the high bidder on lot 8 with an amount of $23,000 or $17,424.24 per acre. The attached resolution authorizes the Mayor, City Manager and City Clerk to execute the real estate documents. Staff recommends approval. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings June 14, 2011 112 Resolution No. 70-10 Resolution Authorizing the Sale of Surplus Real Estate to Brett Behrends Be it Resolved by the City Council of the City of Brookings, South Dakota as follows: Whereas, the City has declared the following described unimproved real property as surplus: Lot Eight (8) in Block One (1) of Telkamp Industrial Addition to the City of Brookings, County of Brookings, State of South Dakota. Whereas, an auction sale of the above-described property was conducted on May 26, 2011, and the highest bidder for the above-described parcel was Brett Behrends, and Whereas, Brett Behrends has offered to purchase the above-described property for the sum of $23,000.00, which the City of Brookings has determined is acceptable; Now, Therefore, It Is Hereby Resolved by the City Council of the City of Brookings, South Dakota, as follows: A. That the City convey title to the above-described property to Brett Behrends following termination of the applicable referendum period; and B. That the Mayor, City Clerk and City Manager are authorized to execute the documents required to convey title of the above-described surplus real property to Brett Behrends. Passed and approved this 14th day of June, 2011. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings June 14, 2011 113 Second Readings / Public Hearings 10. Action on Resolution No. 71-11, a Resolution Authorizing the Sale of Surplus Real Estate to Keith and Cathy Vanderwal- Rounds. To: Mayor and City Council Members Jeff Weldon, City Manager From: Mike Struck, Community Development Director Re: Telkamp Industrial Park Surplus Real Estate The City of Brookings held a public auction on May 26, 2011 at 10:00 am to sell two surplus lots in the Telkamp Industrial Park. Notice of the auction was published twice in the Brookings Register, with the first being May 13th and the second on May 20th. In addition block ads were published in the Register on May 21st and the Town and Country Shopper on May 11th and 18th. The advertisement and supplemental information was posted on the City of Brookings website and distributed to area realtors via the Realtor‟s Association. The surplus property is as follows:  Lot Twelve (12) in Block One (1) of Telkamp Industrial Addition to the City of Brookings, County of Brookings, State of South Dakota (1.7 acres +/-) Keith and Cathy Vanderwal-Rounds were the high bidder on lot 12 with an amount of $43,500 or $25,588.23 per acre. The attached resolution authorizes the Mayor, City Manager and City Clerk to execute the real estate documents. Staff recommends approval. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings June 14, 2011 114 Resolution No. 71-11 Resolution Authorizing the Sale of Surplus Real Estate to Keith and Cathy Vanderwal-Rounds Be It Resolved by the City Council of the City of Brookings, South Dakota as follows: Whereas, the City has declared the following described unimproved real property as surplus: Lot Twelve (12) in Block One (1) of Telkamp Industrial Addition to the City of Brookings, County of Brookings, State of South Dakota. Whereas, an auction sale of the above-described property was conducted on May 26, 2011, and the highest bidder for the above-described parcel was Keith and Cathy VanderWal-Rounds, and Whereas, Keith Rounds and Cathy VanderWal-Rounds have offered to purchase the above-described property for the sum of $43,500.00, which the City of Brookings has determined is acceptable; Now, Therefore, It Is Hereby Resolved by the City Council of the City of Brookings, South Dakota, as follows: A. That the City convey title to the above-described property to Keith Rounds and Cathy VanderWal-Rounds following termination of the applicable referendum period; and B. That the Mayor, City Clerk and City Manager are authorized to execute the documents required to convey title of the above-described surplus real property to Keith Rounds and Cathy VanderWal-Rounds. Passed and approved this 14th day of June, 2011. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings June 14, 2011 115 Alcohol Licenses 11. Action on Resolution No. 72-11, authorizing the City Manager sign an Operating Agreement for an On/Off Sale Wine License for Cenex Zip Trip #63, 1005 6th Street. Cenex Zip Trip #63 has applied for an on/off sale wine operating agreement for their 1005 6th Street location. Resolution No. 72-11 will allow the City Manager to enter into an operating agreement with the business for the first five years of the 10-year agreement effective through 2016. This license would be subject to annual state renewal in December. If approved, the application would be forwarded to the State Department of Revenue for final action and issuance of the license. Listed below is Chapter 5, Article 2, Section 5-20 of the City Code of Ordinances pertaining to Application Review Procedure. The City Council shall review all applications submitted to the City for available On-Sale Alcoholic Beverage Agreements and for On-Sale Malt Beverage and Wine Licenses in accordance with SDCL 35-2 and in accordance with the following factors: a) Type of business which applicant proposes to operate: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold unless it can be established that minors do not regularly frequent the establishment. b) The manner in which the business is operated: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to establishments which are operated in a manner which results in minors regularly frequenting the establishment. c) The extent to which minors are employed in such a place of business: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold and which regularly employ minors. d) The adequacy of the police facilities to properly police the proposed location: The City Council shall inquire of the Police Chief whether the Police Department can adequately police the proposed location. e) Other factors: The hours that business is conducted shall be considered by the City Council in its review of applications for on-sale alcoholic beverage operating agreements and on-sale malt beverage and wine licenses. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings June 14, 2011 116 Resolution No. 72-11 Cenex Zip Trip #63 Wine Operating Agreement Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Agreement for the Operating Liquor Management Agreement for wine between the City of Brookings and the Cenex Zip Trip #63 for the purpose of a liquor manager to operate the on-sale establishment or business for and on behalf of the City of Brookings at 1005 6th Street. Be It Further Resolved that the City Manager be authorized to execute the Agreement on behalf of the City, which shall be for a period of five (5) years and renewal for another five (5) years. Passed and approved this 14th day of June 2011. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings June 14, 2011 117 Alcohol Licenses 12. Public Hearing and action on a temporary liquor application for Ray’s Corner for a wedding reception at the National Guard Armory on August 20th. Ray‟s Corner has applied for a temporary liquor license for a wedding reception to be held at the National Guard Armory, 300 5th St. So., on August 20, 2011. Pursuant to changes in state law, all temporary alcohol licenses must be approved by the City Council through use of a public hearing. All documents have been filed with the City pertaining to insurance and other licensing requirements. Notice of Public Hearing On Application for Temporary Liquor Licenses NOTICE IS HEREBY GIVEN that the Brookings City Council in and for the City of Brookings, South Dakota, on June 14, 2011, at 6:00 p.m. in the City Council Chambers, 311 Third Avenue, City of Brookings, will meet in regular session to consider a Temporary Liquor License for Ray‟s Corner, 300 5th St. So., for a wedding dance on 8/20/2011. NOTICE IS FURTHER GIVEN that any person, persons of the attorney, may appear and be heard at said scheduled public hearing who are interested in the approval or rejection of any such application. Dated at Brookings, South Dakota, this 3rd day of June, 2011. Shari Thornes, City Clerk Published time(s) at an approximate cost: $ . City Manager Introduction Action: Open & Close Public Hearing, Motion to Approve, Roll Call City of Brookings June 14, 2011 118 Alcohol Licenses 13. Public hearing and action on Temporary Liquor License requests for the Shamrock for events on 7/9, 7/23, 8/6 (2), 9/2, 9/3 (2), 9/4, 9/10, 10/1, 10/29, 11/11, and 12/3/2011. The Shamrock has applied for temporary liquor licenses for the following events: 7/9 party 7/23 wedding reception 8/6 wedding reception 8/6 wedding reception 9/2 wedding reception 9/3 wedding reception 9/3 wedding reception 9/4 wedding reception 9/10 wedding reception 10/1 wedding reception 10/29 wedding reception 11/11 wedding reception 12/3 party Pursuant to changes in state law, all temporary alcohol licenses must be approved by the City Council through use of a public hearing. All documents have been filed with the City pertaining to insurance and other licensing requirements. NOTE: The City Attorney and State Department of Revenue have concluded temporary liquor license applications for events occurring after July 1st could still be considered for action if the City Council held hearings and took action prior July 1st. After July 1st, on-sale malt license holders will be no longer be eligible to apply for temporary liquor licenses. Notice of Public Hearing On Application for Temporary Liquor Licenses NOTICE IS HEREBY GIVEN that the Brookings City Council in and for the City of Brookings, South Dakota, on June 14, 2011, at 6:00 p.m. in the City Council Chambers, 311 Third Avenue, City of Brookings, will meet in regular session to consider Temporary Liquor Licenses for The Shamrock, 1104 22nd Avenue South on: 7/19 (party), 7/23, 8/6 (2), 9/2, 9/3 (2), 9?4, 9/10, 10/1, 10/29, 11/11 (wedding receptions), and 12/3 (party). NOTICE IS FURTHER GIVEN that any person, persons of the attorney, may appear and be heard at said scheduled public hearing who are interested in the approval or rejection of any such application. Dated at Brookings, South Dakota, this 3rd day of June, 2011. Shari Thornes, City Clerk Published 1 time at an approximate cost: $ . City Manager Introduction Action: Open & Close Public Hearing, Motion to Approve, Roll Call City of Brookings June 14, 2011 119 Alcohol Licenses 14. Public Hearing and action on an On-Off Malt License for Wooden Legs Brewing Company, 311 5th Street. Seth Koch, owner, has applied for an on-off sale Malt Beverage License for Wooden Legs Brewing Company, 311 5th Street, Lots 15-16, Block 14, Second 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 on July 1st effective through June 30, 2012 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. 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 City of Brookings June 14, 2011 120 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 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 of Brookings June 14, 2011 121 Alcohol Licenses 15. Action on a Video Lottery application for the Shamrock. Mike Bailey, owner of The Shamrock, 1104 22nd Ave. So., has applied for a Video Lottery License. The Shamrock has held an On-Sale Malt License and an On-Sale Wine License since 2007. With the recent approval of Ordinance No. 05-11, the City Council has the ability to issue up to three additional video lottery licenses to On-Sale Malt and On-Sale Wine License holders. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings June 14, 2011 122 Ordinance No. 05-11 An Ordinance Amending Section 6-6 of the Code of Ordinances of the City of Brookings, South Dakota and pertaining to Video Lottery Machine Placement in the City of Brookings, South Dakota. Be It Ordained and Enacted by the Council of the City of Brookings, State of South Dakota, as follows: I. Sec. 6-6. Authorizations for video lottery machine placement. (a) After the effective date of this Ordinance, not more than one authorization for a video lottery machine placement for establishments issued an alcoholic beverage license pursuant to subdivisions 35-4-2(12) and SDCL 35-4-2(16) who apply for video lottery establishment authorization will be granted for each 2,206 persons, or a fraction thereof, of the population of the city as determined each August 1 by the city planning department. No establishment authorized for a video lottery machine placement may be denied authorization in subsequent years solely by reason of any limitations of the number of authorizations under the provisions of this section. The quota and the criteria and requirements set forth in this section do not apply to any type of alcoholic beverage licensee other than wine and malt beverage retailers. (b) New video lottery sites shall be selected according to the following criteria and which satisfy the requirements set forth in subsection (b)(3) of this section: (1) The proximity of the proposed new video lottery site to other establishments which have been licensed as video lottery establishments. (2) The type of business the applicant proposes for the proposed new video lottery site and the manner in which the applicant proposes to operate it. (3) Consistent with state law, video lottery establishments shall be a bar, restaurant or lounge which is primarily maintained and operated for the selling and consumption of alcoholic beverages and food on the premises. In order to ensure that only bars, restaurants and lounges are authorized as video lottery establishments, proposed new video lottery establishments must derive 75 percent or more of their gross business income, excluding video lottery income, from the sale of beverages, room rentals and food which is prepared and consumed on the premises. Any applicant for authorization as a video lottery establishment shall certify that the applicant complies with this subsection. The city may require the applicant to provide proof through business records of compliance with this requirement. Bona fide chartered veterans' organiza- tions, religious, charitable or fraternal organizations are excluded from the requirements of this subsection (b)(3). (4) The location of the proposed new video lottery site to other businesses, residential areas, or activities within the same general area. City of Brookings June 14, 2011 123 (5) The extent to which minors frequent a business connected to the proposed new video lottery site. (6) The effect the proposed new video lottery site has on economic development. II. All ordinances in conflict herewith are hereby repealed. First Reading April 5, 2011 Second Reading and Adoption April 26, 2011 Published April 29, 2011 CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings June 14, 2011 124 Other Business: 16. Discussion and possible action on annexation and future street project along Western Avenue. The City received a request indicating interest in paving Western Avenue between 20th Street South and the south end of Esther Heights Addition. This agenda item will include discussion about the process to pave this portion of Western Avenue, which is shown on the attached drawing. History: In 2006, the City received a petition to pave this portion of Western Avenue. At that time, the east side of Western Avenue was outside the City limits. The petition included signatures from 35% of the frontage owners. After discussion, no council recommendations were made and no action was taken on this issue. Since that time, Moriarty Heights Addition has been annexed. There are three properties on the east side of Western Avenue that are currently outside the city limits. Annexation Procedure: At this time, there are three parcels outside the City limits. A couple years ago, the City sent a letter to the three property owners to invite them to contact the City if they wish to petition to annex. However, the City did not receive a voluntary petition. The City could begin the annexation of these properties, which would involve the Community Development Department initiating a study, creating a Resolution of Intent to Annex, and completing an Annexation Resolution. Assessment Procedure: SDCL 9-45-20 authorizes the City to proceed with a street improvement on its own initiative. SDCL 9-45-23 mentions that a street improvement can also be initiated by 55% of the frontage, and 9-45-26 recognizes that protest to the improvement requires owners of more than 55% of the adjoining property to protest or a referendum can accomplish the objection. The first step in the assessment process to construct Western Avenue would be a public hearing and adoption of a “Resolution of Necessity”. This resolution would only allow the properties within the City Limits to be assessed, therefore, the three parcels that are currently outside the City limits would need to be annexed before they could be subject to assessment. The following statutes pertain to street assessments: 9-45-20. Improvements - Streets - Resolution for street improvement by special assessments - Contents of resolution - Assumption of cost by municipality. Whenever the governing body shall deem it necessary to open, widen, extend, grade, gravel, surface with oil or other bituminous material, pave, repave, bridge, construct a City of Brookings June 14, 2011 125 viaduct upon or over, erect equipment for street lighting in, curb, gutter, drain, or otherwise improve any streets, alleys or public ways for which a special assessment is to be levied, it shall declare in a proposed resolution the necessity of such improvement, stating therein the streets, alleys, public ways, or grounds to be improved, the general nature of the proposed improvement, the material to be used or materials from which a choice may be made, an estimate of the total cost or cost per linear foot, a description of the classes of lots to be assessed, and the method of apportioning the benefits thereto as provided in §§ 9-45-28 to 9-45-32, inclusive. If it is deemed expedient for the municipality to assume and pay any portion of the cost of the improvement, the resolution may so provide, or the portion so to be assumed may be provided by a subsequent resolution, subject to the right of referendum on such resolution. 9-45-23. Improvements - Streets - Publication of notice of resolution for improvements by special assessment - Publication not required after petition by property owners. The resolution required by § 9-45-20 shall be published once in the official newspaper of the municipality, with an appended notice stating the place and time, at least two weeks after such publication, at which the governing body will meet for the consideration of the adoption of the resolution. Said notice shall state further that at said time and place the governing body will consider any objections to the proposed resolution by owners of property liable to be assessed for the improvement. If such improvement be petitioned for by the owners of more than fifty-five percent of the frontage of the property to be assessed therefore, it may be provided for by resolution without publication. 9-45-26. Improvements - Streets - Power to proceed with improvement after publication of resolution - Ratification of prior proceedings. After twenty days from the adoption and publication of the resolution referred to in § 9- 45-25, unless the referendum be invoked or unless a written protest shall have been filed with the auditor or clerk signed by the owners of more than fifty-five percent of the frontage of property liable to assessment, the governing body shall have power to cause such improvement to be made, to contract therefore, and to levy and collect special assessments therefore as provided in this title, provided, that any such proceedings taken prior to the adoption of such resolution shall be deemed ratified thereby. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings June 14, 2011 127 Other Business: 17. Action to accept the 2010 City of Brookings Audit Report. Mr. Roger Watton, BKD CPAs & Advisors, will present the 2010 City of Brookings Audit to the Council. Enclosed please find a communication from their firm summarizing the audit review. In addition to the agenda packet, a copy will be available for public inspection at the City Clerk‟s Office or on the city website: www.cityofbrookings.org City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call The Honorable Mayor, Members of the City Council and Management City of Brookings, South Dakota As part of our audit of the financial statements and compliance of the City of Brookings, South Dakota (City) as of and for the year ended December 31, 2010, we wish to communicate the following to you. AUDIT SCOPE AND RESULTS Auditor’s Responsibility Under Auditing Standards Generally Accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States and U.S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments and Nonprofit Organizations. An audit performed in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States and U.S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments and Nonprofit Organizations, is designed to obtain reasonable, rather than absolute, assurance about the financial statements and about whether noncompliance with the types of compliance requirements described in OMB Circular A-133 that could have a direct and material effect on a major federal program occurred. In performing auditing procedures, we establish scopes of audit tests in relation to the financial statements taken as a whole. Our engagement does not include a detailed audit of every transaction. Our engagement letter more specifically describes our responsibilities. These standards require communication of significant matters related to the financial statement and compliance audit that are relevant to the responsibilities of those charged with governance in overseeing the financial reporting process. Such matters are communicated in the remainder of this letter or have previously been communicated during other phases of the audit. The standards do not require the auditor to design procedures for the purpose of identifying other matters to be communicated with those charged with governance. An audit of the financial statements and compliance does not relieve management or those charged with governance of their responsibilities. Our engagement letter more specifically describes your responsibilities. 128 2 Qualitative Aspects of Significant Accounting Policies and Practices Significant Accounting Policies The City’s significant accounting policies are described in Note 1 of the audited financial statements. Alternative Accounting Treatments No matters are reportable Management Judgments and Accounting Estimates Accounting estimates are an integral part of financial statement preparation by management, based on its judgments. The following areas involve significant areas of such estimates for which we are prepared to discuss management’s estimation process and our procedures for testing the reasonableness of those estimates: • Allowance for uncollectible accounts • Depreciation expense Financial Statement Disclosures No matters are reportable Audit Adjustments During the course of any audit, an auditor may propose adjustments to financial statement amounts. Management evaluates our proposals and records those adjustments which, in its judgment, are required to prevent the financial statements from being materially misstated. Some adjustments proposed were not recorded because their aggregate effect is not currently material; however, they involve areas in which adjustments in the future could be material, individually or in the aggregate. Areas in which adjustments were proposed include: Proposed Audit Adjustments Recorded • Construction in progress, and related accounts and retainage payable • Adjustments relating to the bond refunding Proposed Audit Adjustments Not Recorded • Attached is a summary of uncorrected misstatements we aggregated during the current engagement and pertaining to the latest period presented that were determined by management to be immaterial to the financial statements as a whole. 129 3 Auditor’s Judgments About the Quality of the City’s Accounting Principles During the course of the audit, we made the following observations regarding the City’s application of accounting principles. The City implemented the following Governmental Accounting Standards Board (GASB) Statements: • GASB No. 51 – Accounting and Financial Reporting for Intangible Assets • GASB No. 53 – Accounting and Financial Reporting for Derivative Instruments Disagreements with Management No matters are reportable Significant Issues Discussed with Management During the Audit Process During the audit process, the following issues were discussed or were the subject of correspondence with management: • Bond refunding and the calculation of the deferred amount for refunding Difficulties Encountered in Performing the Audit No matters are reportable Other Material Written Communications Listed below are other material written communications between management and us related to the audit: • Management representation letter (attached) INTERNAL CONTROL OVER FINANCIAL REPORTING In planning and performing our audit of the financial statements of the City of Brookings, South Dakota (City) as of and for the year ended December 31, 2010, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and, therefore, there can be no assurance that all deficiencies, significant deficiencies or material weaknesses have been identified. 130 4 A deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements of the City’s financial statements on a timely basis. A deficiency in design exists when a control necessary to meet a control objective is missing or an existing control is not properly designed so that, even if the control operates as designed, a control objective would not be met. A deficiency in operation exists when a properly designed control does not operate as designed or when the person performing the control does not possess the necessary authority or competence to perform the control effectively. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We observed the following matters that we consider to be deficiencies. Deficiencies Financial Statement Adjustments Professional standards define an audit adjustment as a proposed correction of the financial statements that in our judgment may not have been detected except through our auditing procedures. An audit adjustment may or may not indicate matters that could have a significant effect on the financial reporting process (that is, cause future financial statements to be materially misstated) of the City. We suggest management review the entries proposed as noted in the audit adjustments section and develop a process to ensure these areas are all identified and properly recorded in future reporting periods. OTHER MATTERS Although not considered material weaknesses, significant deficiencies or deficiencies in internal control over financial reporting, we observed the following matters and offer these comments and suggestions with respect to matters which came to our attention during the course of the audit of the financial statements. Our audit procedures are designed primarily to enable us to form an opinion on the financial statements and, therefore, may not bring to light all weaknesses in policies and procedures that may exist. However, these matters are offered as constructive suggestions for the consideration of management as part of the ongoing process of modifying and improving financial and administrative practices and procedures. We can discuss these matters further at your convenience and may provide implementation assistance for changes or improvements if you require. Management letters are sometimes critical of accounting processes or internal control features that do not provide adequate safeguards for an entity’s assets, or suggest improvements for operational efficiency. We made numerous suggestions for improvement in last year’s 131 5 management letter. We commend you on the significant efforts made during the last year in response to these suggestions. Capital Contributions During the year, the general operations of the City incurred construction costs, which were transferred to the Water and Wastewater funds in the form of capital contributions. An estimation process was utilized by Brookings Municipal Utilities (BMU) management to derive a value of the capital contributions; however, documentation of the actual costs was available. We suggest this actual documentation be used in the future on these types of projects to save time and ensure the proper value is recorded within the financial statements. Capital Asset Organization and Preparation Due to system limitations imposed by the City's current accounting software, certain information and reports relating to capital assets are not accessible in a practical format. This causes difficulties in the year-end closing, reconciliation and audit process. We recommend management review the current system to determine if new modules are available which could improve this process. We understand management has already undertaken this process, which includes staff trainings on updated system capabilities. Preparation of the Schedule of Expenditures of Federal Awards Due to the variability and complexity of terms and requirements related to federal award programs, we recommend management closely review recognition criteria when preparing the Schedule of Expenditures of Federal Awards. We would be glad to assist in the evaluation of recognition criteria for new federal award programs, which may include such unique and complex terms and requirements. New Accounting and Auditing Standards Governmental Accounting Standards Board Statement No. 54 The Governmental Accounting Standards Board has issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, to enhance the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied and by clarifying the existing governmental fund type definitions. Statement 54 is effective for the fiscal year ending December 31, 2011. Governmental Accounting Standards Board Statement No. 60 The Governmental Accounting Standards Board has issued Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements, to improve financial reporting by addressing issues related to service concession arrangements (SCAs), which are a type of public- private or public-public partnership. As used in this Statement, an SCA is an arrangement between a transferor (a government) and an operator (governmental or nongovernmental entity) in which (1) the transferor conveys to an operator the right and related obligation to provide 132 6 services through the use of infrastructure or another public asset in exchange for significant consideration and (2) the operator collects and is compensated by fees from third parties. Statement 60 is effective for the fiscal year ending December 31, 2012. * * * * * This communication is intended solely for the information and use of management, the Mayor, Members of the City Council and others within the organization and is not intended to be and should not be used by anyone other than these specified parties. May 10, 2011 133 134 135 136 137 138 139 140 141 142 143 144 City of Brookings June 14, 2011 145 Other Business: 18. Action on Resolution No. 73-11, a Resolution giving approval to certain storm sewer facilities improvements; giving approval to the issuance and sale of a Revenue Bond to finance, directly or indirectly, the improvements to the facilities; approving the form of the loan agreement and the Revenue Bond and pledging revenues and collateral to secure the payment of the Revenue Bond; and creating special funds and accounts for the administration of funds for operation of the system and retirement of the Revenue Bond. The attached Resolution, prepared by our bond counsel, provides for the bond issuance and debt financing of our storm water drainage improvement projects. We have been approved for a state loan principle up to $483,538 worth of eligible infrastructure projects from the State Revolving Fund (SRF) of the Dept. of Environment and Natural Resources. This funding will go toward Project #3 (Pheasant Nest Detention Pond), which is scheduled be begin construction in 2011. The loan will be repaid by our Storm Drainage Utility Fund. State financing for this project was anticipated when you adopted the Finance Plan as a means of paying for the projects in the Storm Drainage Master Plan. We anticipate additional SRF applications in the future as a means of financing future storm drainage projects in the Master Plan. However, State Law and Agency Rules allow for financing of projects that can be completed within three years of application. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings June 14, 2011 146 Resolution No. 73-11 Resolution giving approval to certain storm sewer facilities improvements; giving approval to the issuance and sale of a Revenue Bond to finance, directly or indirectly, the improvements to the facilities; approving the form of the Loan Agreement and the Revenue Bond and pledging revenues and collateral to secure the payment of the Revenue Bond; and creating special funds and accounts for the administration of funds for operation of the system and retirement of the Revenue Bond. Whereas, one of the purposes of SDCL Chapter 9-40 (the “Act”) as found and determined by the Legislature is to provide for financing the acquisition, maintenance, operation, extension or improvement of any system or part of any system for the collection, treatment and disposal of sewage and other domestic, commercial and industrial wastes; or any system for the control of floods and drainage; or any combination thereof, together with extensions, additions, and necessary appurtenances; and, Whereas, a municipality is authorized to issue revenue bonds to defray the cost of extensions, additions and improvements to any utility previously owned and is authorized to pledge the net income or revenues from the system in accordance with Section 15 of the Act; and, Whereas, the City of Brookings (the “City”) currently operates a storm sewer system for the collection, treatment and disposal of sewage and other domestic, commercial and industrial wastes; and for the control of floods and drainage and has determined that improvements to the sewer facilities are necessary for the conduct of its governmental programs and qualifies as an improvement, extension or addition to its sewer system; and, Whereas, the City has determined to issue its revenue bonds to finance the improvements to its storm sewer system for the purpose of collecting, treating and disposing of sewage and other domestic, commercial and industrial wastes (the “System”) and has applied to the South Dakota Conservancy District (the “District”) for a Clean Water State Revolving Fund Loan to finance the improvements; Whereas, the City has adopted rates and charges to be pledged, segregated and used for the payment of the Revenue Bond. Now, Therefore Be It Resolved by the City as follows: SECTION 1. Definitions. The terms when used in this Resolution shall have the following meanings set forth in this section unless the context clearly requires otherwise. All terms used in this Resolution which are not defined herein shall have the meanings assigned to them in the Loan Agreement unless the context clearly otherwise requires. “Act” means South Dakota Codified Laws Chapter 9-40. “Loan” means the Loan made by the South Dakota Conservancy District to the City pursuant to the terms of the Loan Agreement and as evidenced by the Revenue Bond. City of Brookings June 14, 2011 147 “Project” means the City of Brookings Pheasant Nest Drainage Improvement Project as outlined in the facilities plan. “Revenue Bond” means the revenue bond or bonds issued the date of the Loan Agreement by the City to the South Dakota Conservancy District to evidence the City‟s obligation to repay the principal of and pay interest and Administrative Expense Surcharge on the Loan. “System” means the City‟s system of collecting, treating and disposing of sewage and other domestic, commercial and industrial wastes. SECTION 2. Declaration of Necessity and Findings. 2.1. Declaration of Necessity. The City hereby determines and declares it is necessary to construct and finance improvements to its System described as the Project. 2.2. Findings. The City does hereby find as follows: 2.2.1. The City hereby expressly finds that if the Project is not undertaken, the System will pose a health hazard to the City and its inhabitants, and will make the City unable to comply with state and federal law. 2.2.2. Because of the functional interdependence of the various portions of the System, the fact that the System may not lawfully operate unless it complies with State and federal laws, including SDCL Chapter 34A-2, and the federal Clean Water Act, and the nature of the improvements financed, the City hereby finds and determines that the Project will substantially benefit the entire System and all of its users within the meaning of Sections 15 and 17 of the Act. 2.2.3. The City hereby determines and finds that for the purposes of the Act, including, in particular, Sections 15 and 17 of the Act, that only the net income from the system as improved, financed by the Revenue Bond, be pledged for its payment. SECTION 3. Authorization of Loan, Pledge of Revenue and Security. 3.1. Authorization of Loan. The City hereby determines and declares it necessary to finance up to $483,538 of the costs of the Project through the issuance of bonds payable from net revenues of the system and other funds secured by the City. The City hereby determines that because the Revenue Bond is issued in connection with a financing agreement described in SDCL 46A-1-49, pursuant to Section 15 of the Act no election is required to issue the Revenue Bond. 3.2. Approval of Loan Agreement. The execution and delivery of the Revenue Obligation Loan Agreement (the “Loan Agreement”), the form of which is on file with the City Finance Officer (the “Finance Officer”) and open to public inspection, between the City as Borrower and the District, are hereby in all respects authorized, approved and confirmed, and the Mayor and Finance Officer are hereby authorized and directed to execute and deliver the Loan Agreement in the form and content attached hereto, with such changes as the attorney for the City deems City of Brookings June 14, 2011 148 appropriate and approves, for and on behalf of the City. The Mayor and Finance Officer are hereby further authorized and directed to implement and perform the covenants and obligations of the City set forth in or required by the Loan Agreement. The Loan Agreement herein referred to and made a part of this Resolution is on file in the office of the Finance Officer and is available for inspection by any interested party. 3.3. Approval of Revenue Bond. The issuance of a revenue bond in a principal amount not to exceed $483,538 as determined according to the Loan Agreement in the form and content set forth in Appendix B attached to the form of Loan Agreement (the “Revenue Bond”) shall be and the same is, in all respects, hereby authorized, approved, and confirmed and the Mayor, Finance Officer, and other appropriate officials shall be and are hereby authorized and directed to execute and seal the Revenue Bond and deliver the Revenue Bond to the District, for and on behalf of the City, upon receipt of the purchase price, and to use the proceeds thereof in the manner set forth in the Loan Agreement. The Mayor and Finance Officer are hereby authorized to approve the final terms of the Revenue Bond and their execution and delivery thereof shall evidence that approval. The Revenue Bond shall be issued under the authority of SDCL Chapter 9-40 and SDCL Chapter 6-8B, and the provisions of the Act are hereby expressly incorporated herein as provided in Section 19 of the Act. 3.4. Pledge of Revenues. The Revenue Bond together with the interest thereon, shall not constitute a charge against the City's general credit or taxing power, but shall be a limited obligation of the City payable solely out of the Project Debt Service Account, which payments, revenues and receipts are hereby and in the Loan Agreement pledged and assigned for the equal and ratable payments of the Revenue Bond and shall be used for no other purpose than to pay the principal of, interest and Administrative Surcharge on the Revenue Bond, except as may be otherwise expressly authorized in the Loan Agreement (including the purpose of securing Additional Bonds issued as permitted by the terms thereof). The City hereby irrevocably pledges to the South Dakota Conservancy District all income and revenues of the System, including, without limitation, fees, charges to users of the System, penalties and hook- up fees, sign-up fees, proceeds of business interruption insurance, proceeds from the sale of property constituting part of the System and investment income on all such revenues, but only to the extent that the revenues exceed the amounts necessary to operate and maintain the System, provided there shall be excluded from this pledge the proceeds of any federal or state grant or loan, and the investment income therefrom, to the extent such exclusion is a condition of such grant or loan. The City covenants and agrees to charge rates for all services from the System or establish charges or rates which will be sufficient to provide for the payments upon the Revenue Bond issued hereunder as and when the same become due, and as may be necessary to provide for the operation and maintenance and repairs of the System, and depreciation, and the Rate Ordinance shall be revised from time to time so as to produce these amounts. The City hereby reserves the right to determine on a periodic basis the appropriate allocation of operation and maintenance expenses, depreciation, repair and reserves associated with the facilities financed with the Revenue Bond, provided that such determination of allocable operation and maintenance expenses shall in no event abrogate, abridge or otherwise contravene the covenant of the City set forth in this Section 3 or any other covenant or agreement in the Loan Agreement. City of Brookings June 14, 2011 149 SECTION 4. Rates, Certification, Segregation and Review. 4.1. Rates and collection. There shall be charged rates for each fiscal year which shall ensure that its Net Revenues Available for Debt Service will equal at least 110% of its System Debt Service for such fiscal year. 4.2. Certification. In each fiscal year, or as soon as practicable, and in any event by the date of the delivery of the unaudited financial statements required in the Loan Agreement, the City shall (a) calculate its Net Revenues Available for Debt Service and System Debt Service for the fiscal year, and (b) certify such figures to the South Dakota Conservancy District. The certification described in clause (b) of the preceding sentence shall be substantially in the form of the certificate attached as Appendix E to the Loan Agreement. If the City fails to meet the Rate Covenant set forth in Section 6.4 of the Loan Agreement, the City shall supply the District with quarterly reports on the actions it is taking to correct its coverage deficiency until it delivers an annual coverage certificate showing compliance with the first sentence of this Section. 4.3. Segregation. The Finance Officer shall set up bookkeeping accounts in accordance with South Dakota Legislative Audit guidelines for the segregation of the revenue. 4.4. Periodic review. The storm sewer rates shall be reviewed from time to time, not less than yearly, and shall be modified in order to produce such funds as are necessary and required to comply with the Loan Agreement‟s rate covenant and to pay principal of, interest and Administrative Surcharge on the Revenue Bond when due. The rates may be set by ordinance or resolution in accordance with this Section. The rate ordinance or resolution shall be necessary for the support of government and shall be effective upon passage. SECTION 5. Additional Bonds. As permitted by Sections 8 and 9 of the Act, Additional Bonds payable from revenues and income of the System may be issued, as permitted in the Loan Agreement, and no provision of this Resolution shall have the effect of restricting the issuance of, or impairing the lien of, such additional parity bonds with respect to the net revenues or income from the extensions, additions or improvements. The City shall have the right to issue additional bonds secured by a lien subordinate to the lien from the Revenue Bond pursuant to the Loan Agreement. SECTION 6. Project Fund Accounts. For the purpose of application and proper allocation of net income of the System and to secure the payment of principal, Administrative Surcharge and interest on the Revenue Bond, the following mandatory asset segregations shall be included in the sewer system account of the City and shall be used solely for the following respective purposes until payment in full of the principal of and interest on the Revenue Bond: 6.1. Project Revenue Account. There shall be deposited periodically into the Project Revenue Account the net revenues as defined in Section 17 of the Act derived from the operation of the Project collected pursuant to the Ordinances and resolutions of the City of Brookings, South Dakota (collectively the “Rate Ordinance”). Moneys from the Project Revenue Account shall be transferred periodically into separate funds and accounts as provided below. City of Brookings June 14, 2011 150 6.2. Project Debt Service Account. Out of the revenues in the Project Revenue Account, there shall be set aside no later than the 25th day of each month into the account designated Project Debt Service Account, a sum sufficient to provide for the payment as the same become due of the next maturing principal of, interest and Administrative Surcharge on the Revenue Bonds and any reserve determined by the City‟s governing body to be necessary. The amount set aside monthly shall be not less than one-third of the total principal, interest, and Administrative Surcharge payable on the following January 15, April 15, July 15, or October 15 and if there shall be any deficiency in the amount previously set aside, then the amount of such deficiency shall be added to the current requirement. 6.3. Depreciation Account. There shall be established a General Depreciation Account. Out of the revenues of the Project Revenue Account there shall be set aside each month into the General Depreciation Account an amount determined by the Common Council to be a proper and adequate amount for repair and depreciation of the Project. 6.4. Project Surplus Account. There shall be established the Project Surplus Account. Revenues remaining in the Project Revenue Account at the end of any fiscal year after all periodic transfers have been made therefrom as above required, shall be deemed to be surplus and shall be transferred to the Project Surplus Account. If at any time there shall exist any default in making any periodic transfer to the Project Debt Service Account, the Common Council shall authorize the City Finance Officer to rectify such default so far as possible by the transfer of money from the Project Surplus Account. If any such default shall exist as to more than one account or fund at any time, then such transfer shall be made in the order such funds and accounts are listed above. When not required to restore a current deficiency in the Project Debt Service Account, moneys in the Project Surplus Account from time to time may be used for any of the following purposes and not otherwise: a) To redeem and prepay the Revenue Bond when and as such Revenue Bond becomes prepayable according to its terms; b) To pay for repairs of or for the construction and installation of improvements or additions to the System; and, if the balances in the Project Debt Service Account and the Project Depreciation Account are sufficient to meet all payments required or reasonably anticipated to be made there from prior to the end of the then current fiscal year, then: c) To be held as a reserve for redemption and prepayment of any bonds of the System which are not then but will later be prepayable according to their terms; or d) To be used for any other authorized municipal purpose designated by the Common Council. e) No moneys shall at any time be transferred from the Project Surplus Account or any other account of the Fund to any other fund of the City, nor shall such moneys at any time be loaned to other municipal funds or invested in warrants, special improvements bonds or other obligations payable from other funds, except as provided in this Section. City of Brookings June 14, 2011 151 SECTION 7. Approval of Paying Agent/Registrar. The Revenue Bond shall be payable at the office of The First National Bank in Sioux Falls, Sioux Falls, South Dakota, hereby designated as paying agent and registrar. SECTION 8. Approval of Bond Counsel. Meierhenry Sargent LLP is hereby retained as Bond Counsel with respect to the Revenue Bond. SECTION 9. Tax Matters. The Interest on the Revenue Bond shall be excludable from gross income for federal income tax purposes under the Internal Revenue Code of 1986, as amended (“the Code”) and applicable Treasury Regulations (the “Regulations”). SECTION 10. Covenants. The City hereby covenants and agrees with the District and other owners of the Revenue Bond as follows: 10.1. The City will punctually perform all duties with reference to the Project, the System and the Revenue Bond required by the constitution and laws of the State of South Dakota and by this Resolution. 10.2. The City agrees and covenants that it will promptly construct the improvements included in the Project. 10.3. The City covenants and agrees that pursuant to Sections 25 through 27 of the Act, the lawful holders of the Revenue Bond shall have a statutory mortgage lien upon the Project and the extensions, additions and improvements thereto acquired pursuant to the Act, until the payment in full of the principal and interest on the Revenue Bond, and the City agrees not to sell or otherwise dispose of the System, the Project, or any substantial part thereof, except as provided in the Loan Agreement and shall not establish, authorize or grant a franchise for the operation of any other utility supplying like products or services in competition therewith, or permit any person, firm or corporation to compete with it in the distribution of water for municipal, industrial, and domestic purposes within the City. 10.4. The City covenants and agrees with the District and other owners of the Revenue Bond that it will maintain the System in good condition and operate the same in an efficient manner and at a reasonable cost, so long as any portion of the Revenue Bond remains outstanding; that it will maintain insurance on the System for the benefit of the holders of the Revenue Bond in an amount which usually would be carried by private companies in a similar type of business; that it will prepare, keep and file records, statements and accounts as provided for in this Resolution and the Loan Agreement. The Revenue Bond shall refer expressly to this Resolution and the Act and shall state that it is subject to all provisions and limitations thereof pursuant to Section 19 of the Act. SECTION 11. Depositories. The Finance Officer shall cause all moneys pertaining to the Funds and Accounts to be deposited as received with one or more banks which are duly qualified public depositories under the provisions of SDCL Ch. 4-6A, in a deposit account or accounts, which shall be maintained separate and apart from all other accounts of the City, so long as any of the Bonds and the interest thereon shall remain unpaid. Any of such moneys not necessary for immediate use may be deposited with such depository banks in savings or time deposits. City of Brookings June 14, 2011 152 No money shall at any time be withdrawn from such deposit accounts except for the purposes of the Funds and Accounts as authorized in this Resolution; except that moneys from time to time on hand in the Funds and Accounts may at any time, in the discretion of the City‟s governing body, be invested in securities permitted by the provisions of SDCL 4-5-6; provided, however, that the Depreciation Fund may be invested in such securities maturing not later than ten years from the date of the investment. Income received from the deposit or investment of moneys shall be credited to the Fund or Account from whose moneys the deposit was made or the investment was purchased, and handled and accounted for in the same manner as other moneys therein. SECTION 12. Consent to Appointment. In the event of mismanagement of the Project, a default in the payment of the principal or interest of the Revenue Bond, or in any other condition thereof materially affecting the lawful holder of the Revenue Bond, or if the revenues of the Project are dissipated, wasted or diverted from their proper application as set forth in the Loan Agreement, Revenue Bond, or herein, the City hereby consents to the appointment of a receiver pursuant to Section 33 of the Act, and agrees that the receiver will have the powers set forth therein, and in Sections 34 and 35 of the Act to operate and administer the Project, and charge and collect rates as described therein. SECTION 13. Severability. If any section, paragraph, clause or provision of this Resolution, the Loan Agreement, the Revenue Bond, or any other Loan Document shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this Resolution or said Loan Agreement, Revenue Bond, or any other Loan Document. SECTION 14. Authorization of City Officials. The Mayor, Finance Officer, City Attorney and City officials shall be and they are hereby authorized to execute and deliver for and on behalf of the City any and all other certificates, documents or other papers and to perform such other acts as they may deem necessary or appropriate in order to implement and carry out the actions authorized herein. SECTION 16. Effective Date. This Resolution shall take effect on the 20th day following its publication, unless suspended by a referendum. Adopted at Brookings, South Dakota, this 14th day of June, 2011. CITY OF BROOKINGS ___________________________ (SEAL) Tim Reed, Mayor ATTEST: ______________________________ Shari Thornes, City Clerk Published: ________________ Effective: ________________ City of Brookings June 14, 2011 153 Other Business: 19. Presentations by Liquor Applicants. As a result of a population increase from the official 2010 Census, the City of Brookings has three additional liquor operating agreements available to issue. An invitation to apply was issued on May 3rd with a May 31st application deadline. The following four applications were received. 1) Bailey‟s Shamrock, LLC Dba The Shamrock, Tapper‟s Bar & Grill 1004 22nd Avenue Owners: Michael Daniel Bailey, Michael Fred Bailey, Leane Jean Bailey 2) Gonz Productions, Inc. Dba Main Street Pub & Grill 408 Main Avenue Owner: Garner Hansen 3) Old Market, LLC Dba Old Market Eatery 424 5th Avenue Owners: Katie Knutson and Jael Thorpe 4) Brennan & Lorraine Sullivan Dba – To Be Determined 313 Main Avenue Owners: Brennan and Lorraine Sullivan Applicants have been invited to present their proposal to the Council. Informational City of Brookings June 14, 2011 162 Executive Session 20. Executive Session for purposes of consulting with legal counsel on contractual matters and pricing and marketing. SDCL 1-25-2. Executive or closed meetings. Executive or closed meetings may be held for the sole purpose of: 1. Discussing the qualifications, competence, performance, character or fitness of any public officer or employee or prospective public officer or employee. The term “employee” does not include any independent contractors; 2. Discussing the expulsion, suspension, discipline, assignment of or the educational program of a student; 3. Consulting with legal counsel or reviewing communications from legal counsel about proposed or pending litigation or contractual matters; 4. Discussing marketing or pricing strategies by a board or commission of a business owned by the state or any of its political subdivisions, where public discussions would be harmful to the competitive position of the business. However, any official action concerning such matters shall be made at an open official meeting. An executive or closed meeting shall be held only upon a majority vote of the members of such body present and voting, and discussion during the closed meeting is restricted to the purpose specified in the closure motion. Nothing in 1-25-1 or this section may be construed to prevent an executive or closed meeting if the federal or state Constitution or the federal or state statutes require or permit it. A violation of this section is a Class 2 misdemeanor. Action: Motion to enter executive session – voice vote Motion to leave executive session – voice vote City of Brookings June 14, 2011 163 Other Business: 21. Action on Resolution No. 76-11, a Resolution Authorizing The Transfer Of Real Property To Brookings Economic Development Corporation, Inc. for Economic Development Purposes. RESOLUTION NO. – 76-11 A RESOLUTION AUTHORIZING THE TRANSFER OF REAL PROPERTY TO BROOKINGS ECONOMIC DEVELOPMENT CORPORATION, INC. FOR ECONOMIC DEVELOPMENT PURPOSES BE IT RESOLVED by the City Council of the City of Brookings, South Dakota as follows: WHEREAS, the Brookings Economic Development Corporation, Inc. desires to: A. Purchase approximately 10 acres of real property located in the south-west corner of the Foster Addition to the City of Brookings, South Dakota, for the price of ______Dollars & zero cents ($_____) per acre, and B. Purchase approximately 2 acres of real property located in the south-west corner of the Foster Addition to the City of Brookings, South Dakota, for the price of ______Dollars & zero cents ($_____) per acre, and WHEREAS, for the express purpose of furthering economic growth and development of the City of Brookings, South Dakota the Brookings Economic Development Corporation, Inc. agrees to sell, convey or otherwise transfer said property to a legal entity which is, or will be, conducting business in the City of Brookings, South Dakota, and WHEREAS, it is in the best interests of the City of Brookings that the City provide its economic development assistance in this matter to aid and assist with the completion of the aforesaid transaction which will further economic development in the City of Brookings; and WHEREAS, the City is authorized to enter into this transaction as an economic development activity under the laws of the State of South Dakota; NOW THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Brookings, South Dakota, as follows: City of Brookings June 14, 2011 164 A. That the City convey title to, and hold, the above-described property to the Brookings Economic Development Corporation, Inc. for the purposes of furthering economic growth and development of the City of Brookings, South Dakota; and B. That the Mayor, City Clerk and City Manager are authorized to execute the required documents in accordance with this Resolution. This resolution rescinds Resolution No. ____, dated June 14, 2011. Passed and approved on the 14th day of June, 2011. ________________________ Tim Reed, Mayor Attest: Shari Thornes, City Clerk City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings June 14, 2011 165 22. Adjourn