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HomeMy WebLinkAbout2011_07_12 CC PKT Brookings City Council Tuesday, July 12, 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. Executive Session to consult with legal counsel on contractual matters. Action: Motion to enter executive session – voice vote Motion to leave executive session – voice vote 2. City Council Member Ex-Officio Reports. 3. Joint Powers Board members’ Report. 4. City Council member introduction of topics for future discussion. 5. Council Invites & Obligations *Any Council member may request discussion of any issue at a future meeting only. Items cannot be added for action at this meeting. A motion and second is required starting the issue, requested outcome, and time. A majority vote is required. 6:00 p.m. REGULAR MEETING 1. Call to order. 2. Pledge of Allegiance. 3. Record of Council Attendance. 4. Action to approve the following Consent Agenda Items:* A. Action to approve the agenda. B. Action to approve City Council minutes. C. Action on Resolution No. 79-11, a Resolution declaring items surplus (vehicles & 4-wheeler). D. Action on Resolution No. 80-11, a Resolution Authorizing a Revision to Change Order No. 2 (CCO#2 Final) for 2009-05STI SDSU Innovation Campus Infrastructure – Phase II, Bowes Construction Inc. (change in completion date). E. Action on Resolution No. 81-11, a Resolution Authorizing Change Order No. 1 (CCO#1) for 2011-07STI, Main Avenue and Front Street Project ($150 total increase to the contract). 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. City of Brookings July 12, 2011 Open Forum/Presentations/Reports 5. Open Forum. 6. SDSU Student Senate Report. 7. State of the City Message by Mayor Tim Reed. Contract Awards / Change Orders 8. Action on Resolution No. 82-11, a Resolution Authorizing the City Manager to Sign an Agreement for Professional Services for Airport Improvement Project #3-46-0005-024- 2011, New Airport Layout Plan & Approach Survey. Action: Motion to Approve, Request Public Comment, Roll Call Second Readings / Public Hearings 9. Public Hearing and action on a temporary liquor application for Ray’s Corner for a street dance for ABATE on July 23rd. Action: Open & Close Public Hearing, Motion to Approve, Roll Call Other Business: 10. Discussion and possible action to award Liquor Operating Agreements. Action: Motion to Approve, Request Public Comment, Roll Call 11. Consideration of permission for School District to install an educational wind tower at Mickelson Middle School. Action: Motion to Approve, Request Public Comment, Roll Call 12. Discussion and action on Project Description for 25th Avenue Improvement Project. Action: Motion to Approve, Request Public Comment, Roll Call 13. Action on Resolution No. 83-11, a Resolution Authorizing the Transfer of Real Property to the Brookings Economic Development Corporation, Inc. Pursuant to SDCL 9-27-36 for Economic Development Purposes. Action: Motion to Approve, Request Public Comment, Roll Call 14. Possible Action to appoint City Council members to the Investment Committee. Action: Motion to Approve, Request Public Comment, Roll Call 15. Executive Session to consult with legal counsel on pending litigation. Action: Motion to enter executive session – voice vote Motion to leave executive session – voice vote 16. 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 City of Brookings July 12, 2011 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 July 12, 2011 1 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. Executive Session to consult with legal counsel on contractual matters. 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 July 12, 2011 2 5:00 P.M. WORK SESSION Work Sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 2. City Council Member Ex-Officio Reports. Pursuant to council direction, “City Council Member Ex-Officio Reports” will be a standing agenda item at all Council Work Sessions. The Council Members that serve as Ex-Officio members on the Brookings Health System Board of Trustees and Utility Board will provide verbal reports regarding recent meetings they have attended. Brookings Municipal Utility Board: 1. Council Member Niemeyer 2. Council Member Corbett Brookings Health Systems Board: 1. Council Member Kubal 2. Council Member McClemans City of Brookings July 12, 2011 3 5:00 P.M. WORK SESSION Work Sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 3. Joint Powers Board Council Members’ 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 July 12, 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. 4. City Council member introduction of topics for future discussion. Any Council member may request discussion of any issue at a future meeting only. Items cannot be added for action at this meeting. A motion and second is required stating the issue, requested outcome, and time frame. A majority vote is required. City of Brookings July 12, 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. 5. Council Invites & Obligations. Date Day Event & Brief Description Time Location / Town / Address / Directions 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 August 31 Wed Allyn Frerichs Retirement Event 5:00 p.m. Swiftel Center 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 14 Friday City of Brookings Employee Recognition Event 6:00 p.m. Swiftel Center October 25 Tuesday Council Meeting 5:00 p.m. Council Chambers November 8 Tuesday Council Meeting 5:00 p.m. Council Chambers November 8-12 Tuesday- Saturday NLC Congress of Cities Phoenix, AZ November 22 Tuesday Council Meeting 5:00 p.m. Council Chambers December 13 Tuesday Council Meeting 5:00 p.m. Council Chambers December 20 Tuesday Council Meeting 5:00 p.m. Council Chambers 6 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. 79-11, a Resolution declaring items surplus (vehicles & 4- wheeler). D. Action on Resolution No. 80-11, a Resolution Authorizing a Revision to Change Order No. 2 (CCO#2 Final) for 2009-05STI SDSU Innovation Campus Infrastructure – Phase II, Bowes Construction Inc. (change in completion date). E. Action on Resolution No. 81-11, a Resolution Authorizing Change Order No. 1 (CCO#1) for 2011-07STI, Main Avenue and Front Street Project ($150 total increase to the contract). Open Forum/Presentations/Reports 5. Open Forum. 6. SDSU Student Senate Report. 7. State of the City Message by Mayor Tim Reed. Contract Awards / Change Orders 8. Action on Resolution No. 82-11, a Resolution Authorizing the City Manager to Sign an Agreement for Professional Services for Airport Improvement Project #3-46-0005-024-2011, New Airport Layout Plan & Approach Survey. Action: Motion to Approve, Request Public Comment, Roll Call Second Readings / Public Hearings 9. Public Hearing and action on a temporary liquor application for Ray’s Corner for a street dance for ABATE on July 23rd. Action: Open & Close Public Hearing, Motion to Approve, Roll Call Other Business: 10. Discussion and possible action to award Liquor Operating Agreements. Action: Motion to Approve, Request Public Comment, Roll Call 11. Consideration of permission for School District to install an educational wind tower at Mickelson Middle School. Action: Motion to Approve, Request Public Comment, Roll Call 12. Discussion and action on Project Description for 25th Avenue Improvement Project. Action: Motion to Approve, Request Public Comment, Roll Call 13. Action on Resolution No. 83-11, a Resolution Authorizing the Transfer of Real Property to the Brookings Economic Development Corporation, Inc. Pursuant to SDCL 9-27-36 for Economic Development Purposes. Action: Motion to Approve, Request Public Comment, Roll Call 14. Possible Action to appoint City Council members to the Investment Committee. Action: Motion to Approve, Request Public Comment, Roll Call 15. Executive Session to consult with legal counsel on pending litigation. Action: Motion to enter executive session – voice vote Motion to leave executive session – voice vote 16. Adjourn. City of Brookings July 12, 2011 7 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. 79-11, a Resolution declaring items surplus (vehicles & 4-wheeler). D. Action on Resolution No. 80-11, a Resolution Authorizing a Revision to Change Order No. 2 (CCO#2 Final) for 2009- 05STI SDSU Innovation Campus Infrastructure – Phase II, Bowes Construction Inc. (change in completion date). E. Action on Resolution No. 81-11, a Resolution Authorizing Change Order No. 1 (CCO#1) for 2011-07STI, Main Avenue and Front Street Project ($150 total increase to the contract). *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 July 12, 2011 8 CONSENT AGENDA #4 B. Action to approve City Council Minutes. The draft June 28th and July 6th Brookings City Council minutes are enclosed for Council review and approval. City of Brookings July 12, 2011 9 Brookings City Council June 28, 2011 (unapproved) The Brookings City Council held a meeting on Tuesday, June 28, 2011 at 5:00 p.m., at City Hall with the following members present: Mayor Tim Reed, Council Members John Kubal, Mike McClemans, Tom Bezdichek, Ope Niemeyer, Jael Thorpe and Keith Corbett. City Manager Jeff Weldon, City Attorney Steve Britzman and City Clerk Shari Thornes were also present. Pub Crawl. The City Council received public comment on the pub crawl held downtown. Kris Struwe, Downtown Brookings Inc. President, reported the DBI program director met with a number of business owners to get their comments on the event. Struwe provided the Council with a letter summarizing comments received. The Council also heard comments from Patty Kratochvil, Darlene Fische, Mason Wheeler, Brian Burkhalter, Anthony Sutton, and Troy Hicks. Topics discussed: event start time, difficulty in restricting one event, enforcement of over serving laws, image and visitor impressions, encourage morning clean -up, possible committee of city/bar owners/police chief for all big events, and retail and bar owners finding a solution without city involvement. Council consensus was for the Downtown Brookings Inc. organization to bridge the gap between the retail and bar owners to find a solution without city involvement. Video Lottery. The City Council requested additional review of the state and local video lottery laws, policies and procedures. The City Attorney noted the city no longer has any authority to make license placement decisions for businesses with on-sale liquor. The only restriction options available are to limit the number issued to on-off sale malt and on-off sale wine license holders or by the location. The city currently has an ordinance which only allows 20 on-off sale malt and on-off wine establishments to have video lottery. No changes to the ordinance were proposed. Ex-Officio Reports. McClemans suggested discussion regarding the City Council’s potential support of the Hospital’s anticipated bonding request. The City has not received an official financial request to date; however, the Mayor offered to contact hospital officials to determine if a request was coming and for what amount. REGULAR MEETING. Consent Agenda. The Carpy’s Pub alcohol transfer was removed from the agenda. Resolution No. 74 was removed from the consent agenda for separate action. An Open World report from the Mayor was added. Corrections noted on members’ terms for the Business Improvement District Number One. A motion was made by Kubal, seconded by Corbett, to approve the consent agenda: A. Action to approve the agenda as amended. B. Action to approve the June 14th Council minutes. City of Brookings July 12, 2011 10 C. Action to appoint Matthew Glanzer to fill the Park & Rec Board High School Student Position; term expires 5/1/2012. D. Action to approve a preliminary plat for John and Vicki Folkerts, Folkerts Addition in the SW ¼ of the SW ¼ of Section 2-T109N-R50W (21.45 acres). On the motion, all present voted yes; motion carried. Resolution No. 74-11. A motion was made by Kubal, seconded by Corbett, to approve Resolution No. 74-11, a Resolution authorizing the City Manager to sign a 10-year Liquor Operating Agreement for Ray’s Corner. All present voted yes; motion carried. Resolution No. 74-11 - Ray’s Corner – Liquor Operating Agreement Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Renewal Agreement for the Operating Liquor Management Agreement between the City of Brookings and Mike Fergen, Ray’s Corner, 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 401 Main Ave., also known as Ray’s Corner. 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 10 years. Resolution No. 75-11. A motion was made by Kubal, seconded by Thorpe, to approve Resolution No. 75-11, a Resolution awarding contract on City of Brookings Garage Project 2011-02 BLD. All present voted yes; motion carried. Resolution No. 75-11 - Resolution Awarding Bids on Project 2011-02BLD, City of Brookings Garage Project Whereas, the City of Brookings opened bids for Project 2011-02BLD City of Brookings Garage Project on Tuesday, June 21, 2011 at 1:30 pm at Brookings City Hall; and Whereas, the City of Brookings has received the following bids for Project 2011-02BLD City of Brookings Garage Project: Clark Drew Construction, Inc., Brookings, SD for $102,500, Cubb Construction, Inc., Volga, SD for $106,925, Owens Enterprises, Inc., Brookings, SD for $109,000, Rupp Inc., Brookings, SD for $113,022, Mills Construction, Brookings, SD for $118,500, Oakwood Equity Group, Brookings SD for $123,000, and Houtman Construction, Inc., Brookings, SD for $134,000. Now Therefore, Be It Resolved that the low bid of $102,500.00 for Clark Drew Construction, Inc., Brookings, SD be accepted. Resolution No. 78-11. A public hearing and action was held on Resolution No. 78-11, a Resolution Determining the Necessity of Repairing or Installing Sidewalks in the City of Brookings at the Expense of Abutting Property Owners, 2011-01SWR Sidewalk Repair Project. No public comment. A motion was made by McClemans, seconded by Corbett, to approve Resolution No. 78-11. All present voted yes; motion carried. City of Brookings July 12, 2011 11 Resolution No. 78-11 - Resolution Determining the Necessity of Repairing or Installing Sidewalks in the City of Brookings at the Expense of Abutting Property Owners, 2011-01SWR Sidewalk Repair Project Be It Resolved by the City Council of the City of Brookings, South Dakota, as follows: 1. It is hereby determined that sidewalk repairs or installation is necessary abutting the parcels and lots of land in the City described in the Notice to Property Owners attached to this Resolution and marked as 2011-01SWR Sidewalk Repair Project. 2. Such sidewalks shall be installed to the width and of the materials prescribed by Chapter 74, “Streets, Sidewalks and other Public Places” and Article V. “Sidewalks”, and to the grade and in accordance with the Plans and Specifications prepared in the office of the City Engineer. 3. The City Clerk has caused a copy of the Resolution and a Notice to Property Owners to be mailed to each property owner by certified mail. Resolution No. 77-11. A motion was made by Thorpe, seconded by Niemeyer, to approve Resolution No. 77-11, a Resolution establishing a policy pertaining to reconsideration actions. All present voted yes; motion carried. Resolution No. 77-11 - City Council Policy: Reconsideration Actions A Resolution establishing a policy pertaining to reconsideration actions Adopted: June 28, 2011 Whereas, Brookings City Ordinance, Chapter 1, Article 2, Section 2-32, provides the following procedure for reconsidering and/or rescinding of actions: “The city council may elect to reconsider and/or rescind any action taken by the council on the same date that such action is taken or at the next regularly scheduled city council meeting. A motion to reconsider or rescind may only be made by a councilmember who voted with the prevailing side,” and WHEREAS, there is no statutory procedure for consideration at a later date; and Now, Therefore, Be It Resolved, in the event the City Council votes to reconsider a previous action taken, it shall be the policy of the Brookings City Council to table final action to the next meeting if the original applicant cannot attend or is not present. Business Improvement District Board #1. A motion was made by McClemans, seconded by Thorpe, to appoint the following to the Business Improvement District Board #1: Lance Park and Tom Richter (1-year terms expiring 1/1/2013), Tari Waterman and Deb Garbers (2- year terms expiring 1/1/2014), and Bob Johnson (3-year term expiring 1/1/2015). Executive Session. A motion was made by Corbett, seconded by McClemans, to enter into Executive Session at 6:54 p.m. for purposes of consulting with legal counsel on contractual matters and pricing with the City Council, City Manager and City Attorney present. All present voted yes; motion carried. A motion was made by Kubal, seconded by Corbett, to exit Executive Session at 7:40 p.m. All present voted yes; motion carried. Discussion on strategy for awarding Liquor Operating Agreements. A motion was made by Reed, seconded by Corbett, to request confidential credit information from all City of Brookings July 12, 2011 12 applicants per section 6D of the application requirements to be returned to the city attorney by July 7, 2011. All present voted yes; except Bezdichek voted no; motion carried. Discussion and possible action to award Liquor Operating Agreements. No action. Adjourn. A motion was made by Kubal, seconded by Corbett, to adjourn. All present voted yes; motion carried. Meeting adjourned at 7:55 p.m. CITY OF BROOKINGS ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk City of Brookings July 12, 2011 13 Brookings City Council July 6, 2011 (unapproved) The Brookings City Council held a special meeting on Wednesday, July 6, 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 McClemans, 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, BEDC Representatives Mike Bartley, Al Heuton, Van Fishback, Ryan Brunner, the City Council, City Attorney and City Clerk present. All present voted yes, motion carried. A motion was made by Corbett, seconded by Kubal, to exit Executive Session at 5:36 p.m. All present voted yes, motion carried. Adjourn. A motion was made by Corbett, seconded by Kubal, to adjourn. All present voted yes; motion carried. Meeting adjourned at 5:36 p.m. CITY OF BROOKINGS ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk City of Brookings July 12, 2011 14 CONSENT AGENDA #4 C. Action on Resolution No. 79-11, a Resolution declaring items surplus (vehicles & 4-wheeler). The City has several vehicles that we would like to surplus. Many of these vehicles have been used by several departments and have been replaced by new pre-owned vehicles. These vehicles are listed as follows along with their corresponding City Department:  One (1) 1992 Chevrolet Tandem Truck, Chassis and Dump Box, VIN #1GBS7H4M1NJ105135 (Street)  One (1) 2000 Dodge Durango, VIN #1B4HS28NXYF255771 (CDD)  One(1) 1999 Ford Expedition, VIN #1FMPU18L9XLB73639 (Engineering)  One (1) 1977 Chevrolet Pickup, VIN #CCD447J114513 (Airport)  One (1) 1985 Honda Fourtrax 250 2WD Four-wheel All Terrain Vehicle, VIN #JH3TE0600FC001536 (Airport)  One (1) 2007 Dodge Durango, VIN #1D8HB38PX7F565493 (Police)  One (1) 2009 Ford Crown Victoria, VIN #2FAHP71V79X120481 (Police)  One (1) 2009 Ford Crown Victoria, VIN #2FAHP71V79X120480 (Police)  One (1) 1984 Chevrolet Pickup, VIN #1GCDC14HOEJ113818 (Parks)  One (1) 1982 GMC Pickup, VIN #1GTDC14HXJ513544 (Parks) These vehicles are being declared surplus property according to SDCL Chapter 6-13. The Dodge Durango and the Ford Crown Victoria police vehicles have been replaced by two new Ford Crown Victoria police cars and a Chevy Tahoe. It is anticipated that the City will attempt to sell several of these vehicles using the on-line auction process, and may utilize a closed bid process for the Tandem Truck and other vehicles that do not receive a favorable bid price using the on-line auction. This resolution will surplus the vehicles and allow the City Manager to sell the vehicles. City of Brookings July 12, 2011 15 Resolution No. 79-11 Declaring Surplus Property Whereas, the City of Brookings is the owner of the following described equipment formerly used by the City of Brookings street, engineering, community development, airport, police and parks departments:  One (1) 1992 Chevrolet Tandem Truck, Chassis and Dump Box, VIN #1GBS7H4M1NJ105135  One (1) 2000 Dodge Durango, VIN #1B4HS28NXYF255771  One(1) 1999 Ford Expedition, VIN #1FMPU18L9XLB73639  One (1) 1977 Chevrolet Pickup, VIN #CCD447J114513  One (1) 1985 Honda Fourtrax 250 2WD Four-wheel All Terrain Vehicle, VIN #JH3TE0600FC001536  One (1) 2007 Dodge Durango, VIN #1D8HB38PX7F565493  One (1) 2009 Ford Crown Victoria, VIN #2FAHP71V79X120481  One (1) 2009 Ford Crown Victoria, VIN #2FAHP71V79X120480  One (1) 1984 Chevrolet Pickup, VIN #1GCDC14HOEJ113818  One (1) 1982 GMC Pickup, VIN #1GTDC14HXJ513544 Whereas, in the best financial interest, it is the desire of the City of Brookings to sell same as surplus property; Whereas, the City Manager hereby authorized to sell said surplus property. Now, Therefore, Be It Resolved by the governing body of the City of Brookings, South Dakota, that this property be declared surplus property according to SDCL Chapter 6-13. Passed and approved this 12th day of July, 2011. CITY OF BROOKINGS _________________________ Tim Reed, Mayor ATTEST: ____________________________ Shari Thornes, City Clerk City of Brookings July 12, 2011 16 CONSENT AGENDA #4 D. Action on Resolution No. 80-11, a Resolution Authorizing a Revision to Change Order No. 2 (CCO#2 Final) for 2009-05STI SDSU Innovation Campus Infrastructure – Phase II, Bowes Construction Inc. (change in completion date). This project entails the construction of Phase II in the SDSU Innovation Campus, which is located east of 22nd Avenue. This construction project was designed by Banners Associates, and includes water mains and services, sanitary sewer mains and services, grading, detention pond, gravel, curb & gutter, asphalt paving, paint striping, signing, and storm sewer. The final change order for this project was approved by the City Council with Resolution No. 10-11 on January 25, 2011. The approved change order indicated the final completion date was May 15, 2011. This date was anticipated to be enough time for the contractor to complete their final punch list items and final grading work on the northeast detention pond. However, due to the wet spring conditions, the contractor was not able to complete the final grading work until July 8, 2011. This change order will adjust the final completion date from May 15, 2011 to July 8, 2011. Resolution No. 80-11 A Resolution Authorizing a Revision to Change Order No. 2 (CCO#2 Final) for 2009-05STI SDSU Innovation Campus Infrastructure – Phase II Bowes Construction Inc. Be It Resolved by the City Council that the following change order be allowed for 2009-05STI SDSU Innovation Campus Infrastructure – Phase II:  Revision to Construction Change Order Number 2 (CCO#2 Final), Res. No. 10-11:  Adjust contract final completion date to July 8, 2011. Passed and approved this 12th day of July, 2011. CITY OF BROOKINGS _________________________ ATTEST: Tim Reed, Mayor ____________________________ Shari Thornes, City Clerk City of Brookings July 12, 2011 17 CONSENT AGENDA #4 E. Action on Resolution No. 81-11, a Resolution Authorizing Change Order No. 1 (CCO#1) for 2011-07STI, Main Avenue and Front Street Project ($150 total increase to the contract). This project was designed by Civil Design Inc. and entails the construction of new curb & gutter and islands at the railroad tracks on Main Avenue in preparation for the new railroad safety crossing gate project, realignment and reconstruction of Front Street between 3rd Street and Main Avenue, and the construction of the Fire Department Parking Lot and the Park & Recreation Parking Lot. The City will be reimbursed $100,000 from the Railroad Crossing Improvement Program (RCIP) through the SD Department of Transportation for the new railroad safety crossing gates. The program’s purpose is to provide funding for the implementation of safety improvements where a public roadway intersects active railroad tracks. In the design of the project, the Front Street intersection at Main Avenue was moved to the north of its current location to provide the appropriate stacking distance on the north side of the railroad tracks. During the construction of the project, a few unforeseen items were discovered and are included in this change order. One inlet with a size of 5.5’ x 5.5’ Type B Drop Inlet with Frame and Grate was discovered very near a gas line. It was determined by the consultant that a 2’ x 3’ Type B Drop Inlet could be installed in its place which would avoid the gas line and would not hinder the storm water flows. This change order will delete the 5.5’ x 5.5’ drop inlet and add one 2’ x 3’ drop inlet. In addition, an unknown concrete retaining wall and ramp was discovered underground on the north side of the old armory building and a portion of it needed to be removed to move the gas regulator station to the east side of the proposed alley. These items result in a total increase of $150.00 to the contract, which is summarized as follows: Original Contract Price: $377,604.58 Change from Previously Approved Change Orders: $0.00 Contract Price Prior to this Change Order: $377,604.58 Increase of this Change Order (No. 1): $150.00 Contract Price incorporating this Change Order: $377,754.58 This resolution will approve Change Order No. 1 (CCO #1 Final) for an increase of $150.00 to the contract for this project. City of Brookings July 12, 2011 18 Resolution No. 81-11 A Resolution Authorizing Change Order No. 1 (CCO#1) for 2011-07STI Main Avenue and Front Street Project Bowes Construction Inc. Be It Resolved by the City Council that the following change order be allowed for 2011-07STI Main Avenue and Front Street Project:  Construction Change Order Number 1  Adjust contract cost to delete one 5.5’ x 5.5’ Type B Drop Inlet with Frame and Grate, add one (1) 2’ x 3’ Type B Drop Inlet, and remove concrete retaining wall and ramp for a total increase of $150.00 to the contract. Passed and approved this 12th day of July 2011 contingent upon concurrence by the SD Department of Transportation. CITY OF BROOKINGS _________________________ Tim Reed, Mayor ATTEST: ____________________________ Shari Thornes, City Clerk City of Brookings July 12, 2011 19 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 July 12, 2011 20 Open Forum/Presentations/Reports 7. State of the City Message by Mayor Tim Reed. Mayor Reed will present his annual State of the City Message at the meeting. A copy of the report will be available after the meeting on the City of Brookings website (www.cityofbrookings.org). City of Brookings July 12, 2011 21 Contract Awards / Change Orders 8. Action on Resolution No. 82-11, a Resolution Authorizing the City Manager to Sign an Agreement for Professional Services for Airport Improvement Project #3-46-0005-024-2011, New Airport Layout Plan & Approach Survey. The City Council has determined the Brookings Regional Airport improvements will occur at the current airport site and the next step in the process is to complete the New Airport Layout Plan (ALP) and Approach Survey. Helms and Associates will be the engineering consultant for the next five years of projects for the Brookings Regional Airport and they will be designing the Airport Layout Plan. In addition, Helms and Associates has negotiated a contract with Aerometric, the firm to perform the Approach Survey. Aerometric was in Brookings on April 28th to give the Airport Board and City Council a briefing on the approach survey and what it entails. The cost of the Agreement for Professional Services is $188,973.51, which is less than the cost anticipated on the approved Airport CIP, which was $300,000. The City anticipates receiving a grant from the Federal Aviation Administration for the ALP and Approach Survey. The grant will be 95% FAA funding and 3% SD State of Aeronautics Department funding, with the City’s funding match at 2% of the project, and will come at a later date. The next steps in the airport project are to complete the No Rise Study for 6-Mile Creek, the Corps of Engineers 404 permit, land acquisition, and construction design. These upcoming tasks will be eligible for grant funding, however, it is anticipated that they will not be fully covered by grants and the City of Brookings will be responsible to fund the upfront costs for these tasks. A separate resolution will be presented to the City Council for these upcoming tasks. This resolution will authorize the City Manager to sign the Agreement for Professional Services for Brookings Regional Airport for Project No. #3-46- 0005-024-2011 for the Airport Layout Plan and the Approach Survey. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings July 12, 2011 22 Resolution No. 82-11 Resolution Authorizing Mayor to Sign an Agreement for Professional Services for Brookings Regional Airport Project No. AIP #3-46-0005-024-2011 New Airport Layout Plan and Approach Survey Whereas, the Brookings City Council desires a New Airport Layout Plan and Approach Survey, Project No. 3-46-0005-024-2011; and Whereas, The City of Brookings is obligated to and hereby agrees to pay for the Agreement for Professional Services for Brookings Regional Airport Project No. AIP #3-46-0005-024-2011, New Airport Layout Plan and Approach Survey; and Whereas, The City of Brookings anticipates receiving grant funding for the New Airport Layout Plan and Approach Survey from the Federal Aviation Administration for 95% and SD State Aeronautics Department for 3% of the allowable costs incurred in accomplishing Airport Improvement Project No. 3-46-0005-024-2011. Now, Therefore, Be Resolved, that the City Manager is hereby authorized to sign all documents related to an Agreement for Professional Services for Brookings Regional Airport Project No. AIP #3-46-0005-024-2011, New Airport Layout Plan and Approach Survey. Passed and approved this 12th day of July 2011. CITY OF BROOKINGS ____________________________ Tim Reed, Mayor ATTEST: ________________________ Shari Thornes, City Clerk City of Brookings July 12, 2011 23 Second Readings / Public Hearings 9. Public Hearing and action on a temporary liquor application for Ray’s Corner for a street dance for ABATE on July 23rd. Ray’s Corner has applied for a temporary liquor license for a street dance for the ABATE Poker Run on July 23, 2011. 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 July 12, 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 an Abate Poker Run/Street Dance Fundraiser on July 23, 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 1st day of July, 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 July 12, 2011 24 Other Business 10. Discussion and possible action to award Liquor Operating Agreements. 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 applicants presented proposals to the City Council on June 14th. 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 – The Brownstone 313 Main Avenue Owners: Brennan and Lorraine Sullivan Pursuant to the adopted enclosed schedule, the City Council plans to discuss the applications and may to choose to award one or more of the agreements at this time. If the Council chooses to take action at this meeting, adoption of the enclosed resolution will be needed to authorize the city manager to sign the standard ten year on-sale liquor operating agreement. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings July 12, 2011 25 City of Brookings Liquor Operating Agreement Application Process Schedule Adopted 4/26/11 (by consensus) Feb 22nd City Council initial discussion regarding issue March 8th City Council Meeting (WORK SESSION)  Draft Process & Schedule March 22nd City Council Meeting  One-time license fee *  Application fee increase from $25 to $100*  Video Lottery ordinance revisions* March 25th Resolutions Published Res. 35-11: A Resolution increasing the Application Fee for new Liquor Operating Agreements Res. 38-11: Resolution Establishing the License Fee for the Issuance of Operating Agreements in the City of Brookings April 5th City Council Meeting  1st reading – video lottery ordinance April 7th City Council Special Planning Retreat  Operating Agreement revisions*  Liquor Policy revisions *  Applicant Criteria *  Transfer Fee Discussion – clarification on fee o Types: Location, New Owner(s), Change in Corporate Structure, Change in family ownership  Finalize Process, Schedule & Application Packet * items must be finalized for inclusion in application packet April 14th Effective Date for Resolutions No 35 & 38 April 26th City Council Meeting  2nd reading – video lottery ordinance – amended and approved  Action on operating agreement revisions – no change *  Action on liquor related policies – no change *  Applicant Criteria - no change *  Transfer Fee Discussion – clarification on fee – Not discussed o Types: Location, New Owner(s), Change in Corporate Structure, Change in family ownership  Finalize Process, Schedule & Application Packet – Approved * items must be finalized for inclusion in application packet April 29th Video Lottery Ordinance Published City of Brookings July 12, 2011 26 May 3rd Notifications  Press release on availability of agreements issued to media  Legal notice on availability of agreements sent to the newspaper May 5th Publish Legal Notice on Availability May 19th Video Lottery Ordinance Effective Date May 24th City Council Meeting – Clarification on Transfer Fee Amount May 31st Deadline for submission of complete applications and supporting materials June 6th Publish Legal Notice regarding the Council public hearings June 14th Action Meeting – City Council – presentations – no action June 28th Action Meeting – City Council – for presentations (if needed) or action ** July 12th Action Meeting - Action to award agreement(s) (if needed) ** ** Not official until final approval from State Department of Revenue City of Brookings July 12, 2011 27 Resolution No. _____-11 __________– Liquor Operating Agreement Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Renewal Agreement for the Operating Liquor Management Agreement between the City of Brookings and _______ (owner), _____________(business) , 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 _______ (address), also known as ___________ (business name). 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 10 years. Passed and approved this 28th day of June 2011. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings July 12, 2011 28 Liquor Operating Agreement _________ (business name) THIS AGREEMENT made and entered into by and between the CITY OF BROOKINGS, a municipal corporation of the State of South Dakota, hereinafter referred to as the “City” and _______ (owner), _____________(business) , hereinafter referred to as “Manager.” WITNESSETH; WHEREAS, the City has been issued an on-sale alcoholic beverage license and is engaged in the sale of alcoholic beverages, and WHEREAS, the City desires to enter into an Operating Agreement on a limited basis with the Manager for the purpose of operating an on-sale establishment or business for and on behalf of the City pursuant to law, and WHEREAS, the Manager has offered to have facilities in which to operate said on-sale establishment solely upon the premises hereinafter described. NOW, THEREFORE IT IS MUTUALLY AGREED AS FOLLOWS: I. This Agreement is made and entered into on a limited basis between the parties hereto allow the Manager to operate a retail on-sale premises, pursuant to and in accordance with all of the terms and conditions of this Agreement in accordance with all State laws and City Ordinances now in effect and as may be enacted in the future. II. The Manager shall be individually responsible for all operating expenses of said on-sale establishment, including but not limited to utilities, taxes, insurance, and license fees, if any. The Manager shall furnish all equipment and fixtures necessary to operate the establishment. III. The on-sale establishment shall be located upon real estate in the City of Brookings, South Dakota, described as: ________________________ (legal description), City of Brookings, South Dakota IV. The Manager shall dispense only alcoholic beverages supplied by the Municipal off-sale establishment. V. This Agreement shall be in full force and effect for a period of five (5) years with the Manager having the option and privilege of a five (5) year extension, subject to the approval of the governing body of the City of Brookings. City of Brookings July 12, 2011 29 VI. Either the Manager or the City may terminate this Agreement without cause upon ninety (90) days written notice served by either party upon the other. The City reserves the right to immediately suspend or revoke this Agreement without ninety (90) days written notice for alcohol related violations in accordance with the provisions of Resolution No. 25-88 or any amendments thereto or for any late payments for alcoholic beverages supplied by the Municipal off-sale establishment to be sold on the premises of Manager. VII. The Manager shall receive as full compensation for its services rendered, the net profit from the on-sale establishment under its management, and the sole profit to be derived by the City shall be the markup hereinafter set forth on alcoholic beverages furnished by the municipality to the Manager for the purposes of resale on the premises as above described. VIII. The Manager shall pay to the City for all alcoholic beverages sold by the City to the Manager for resale on the above-described premises, the actual cost of distilled spirits and wine supplied by the City, plus eleven percent (11%) in excess of such cost; the Manager shall pay to the City for all malt beverages sold by the City to the Manager for resale on the above-described premises, the actual cost of malt beverages, plus ten percent t(10%) in excess of such cost. The actual cost shall include cost price and transportation charges. The markup percentages provided in this Agreement are subject to change by the City of Brookings. In the event markup percentages are changed by Ordinance, then the markup percentages provided by City Ordinance shall supercede the markup percentages provided herein. The Manager further agrees that if either of the markup percentages shall be increased at any time by the City, the Manager shall pay the markup as so increased. IX. A complete and detailed record shall be maintained by the City of all alcoholic beverages supplied to the on-sale Manager and such alcoholic beverages so supplied shall be evidenced by pre-numbered invoices prepared in triplicate showing the date, quality, brand, size, and actual cost of such item, and such invoice shall bear the signature of the authorized representative of the on-sale Manager or its authorized representative. One copy thereof shall be retained by the Municipal off-sale establishment, one copy shall be retained by the on-sale establishment, and one copy shall be filed with the City Clerk. All copies shall be kept as permanent records and made available for reference and audit purposes. The Manager also agrees to maintain a complete record of all alcoholic beverages received from the City. X. In consideration of the covenants herein contained, the Manager agrees to pay the CITY OF BROOKINGS, One Thousand Five Hundred, and no/100 Dollars ($1,500.00), constituting the Annual License Fee on or by January 1, 2012, and on or by the first day of each year thereafter as long as this agreement shall remain in force and effect. The Manager further agrees that if the annual fee shall be increased at any time by the legislature, the Manager shall pay the amount of any such increase. In addition, the Manager agrees to pay the federal stamp fee. City of Brookings July 12, 2011 30 XI. The Manager agrees to keep the premises in a neat, clean and attractive appearance, and Manager further agrees to operate said on-sale establishment only on such days and at such hours as permitted by state law and city ordinances. XII. The Manager shall have the right to return, at any time, alcoholic beverages received from the City and to receive in return any deposit made for such alcoholic beverages; in the event of termination of the business, all unused alcoholic beverages, which may be resold without discount may be returned to the City and the Manager shall be reimbursed for the of such alcoholic beverages. XIII. The Manager agrees to abide by the credit policies of the City and acknowledges, by execution of this Agreement, receipt of a copy of the credit policies of the City. The City reserves the right to change or terminate its credit policies at any time, but shall be required to provide written notice to Manager prior to the effective date of the change or termination date of the credit policies. XIV. The Manager agrees to furnish the City upon demand, evidence of payment of the following: A. All salaries of on-sale employees; B. Social Security and withholding taxes on said employees; C. Worker’s Compensation insurance premiums covering said employees; D. Unemployment taxes on the payrolls of said employees; E. General liability insurance protecting both the City and the Manager against claims for injury or damages to persons or property, said policy to have general liability limits of at least Five Hundred Thousand Dollars ($500,000.00) single limit, and One Million Dollars ($1,000,000.00) aggregate, and a limitation of Fifty Thousand Dollars ($50,000.00) for damage to property. The general liability insurance limits are subject to change and Manager agrees to change limits of insurance if required by the City; F. Rent and utility bills; G. Any and all miscellaneous expenses, including taxes. XV. The Manager agrees to observe all Federal and State laws and ordinances of the City of Brookings. XVI. The City covenants and agrees to furnish the on-sale license to Manager pursuant to the terms and conditions of this Operating Agreement and the terms and conditions of the on-sale license. City of Brookings July 12, 2011 31 XVII. The City shall have the right to make inspections and investigations of the premises during the hours of operation, and make audits and examinations of the records of the Manager relating to the on-sale establishment. XVIII. It is further specifically understood and agreed that the waiver of the rights of the City under this Agreement shall not constitute a continuous waiver, and any violation or breach of the terms of this Agreement by the Manager shall constitute a separate and distinct offense and grounds for immediate termination and revocation of this Agreement. XIV. This agreement shall not be assignable to another person or location without the written consent of the City. IN WITNESS WHEREOF, the parties hereto have executed this Agreement this 28th day of June, 2011. CITY OF BROOKINGS, South Dakota A Municipal Corporation By: Jeffrey W. Weldon, City Manager ATTEST: Shari Thornes, City Clerk MANAGER By: City of Brookings July 12, 2011 32 Other Business 11. Consideration of permission for School District to install an educational wind tower at Mickelson Middle School. The Brookings School District is requesting permission to install an outdoor educational wind tower classroom at the Mickelson Middle School. Wind Powering America sponsors the Wind for Schools project to raise awareness in rural America about the benefits of wind energy while simultaneously developing a wind energy knowledge base in future leaders of our communities, states, and nation. Science teachers utilize the wind turbine as a teaching aid in energy-related curricula and possibly as a source for science fair concepts. The program supplies curricula, educational kits, and training to teachers to support wind curricula implementation in the classroom. A Wind Application Center is implemented at a state university or college under the leadership of an interested university professor. The South Dakota Wind Application Center is located at South Dakota State University under the direction of Michael Twedt in the Mechanical Engineering Department. The Wind Application Centers provide technical assistance to rural schools (analyzing the wind resource, energy usage, siting, permitting, land use, and financials, overseeing the installation of the power and the data acquisition system and analyzing the performance data). The Wind for Schools Program has implemented outdoor education wind tower classrooms at the following South Dakota Schools: Dakota Valley Douglas Elkton Faith Sanborn Central Selby Sioux Falls Memorial Middle School The proposed wind turbine is the Skystream AirX and would be installed in the southeast corner of the Mickelson Middle School grounds approximately 92 feet west of the tennis and volle yball courts and 119 feet east of the parking lot. City of Brookings July 12, 2011 33 Skystream AirX  Has a 12, 24, or 48 VDC wind turbine generator  Total diameter is 46 inches  Maximum power is 400 Watts and 300 Watts of continuous power  Cut-in Wind Speed is 8 mph  Total Swept Area is 46.2 square feet  Total Height with 29’ tower is approximately 32’10”  4 times total height is approximately 131’4”  1.1 times total height is approximately 36’1”  1.5 times total height is approximately 49’3”  Brookings School District has agreed to install a 6 foot high security fence. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings July 12, 2011 36 Other Business 12. Discussion and action on Project Description for 25th Avenue Improvement Project. TO: Mayor and City Council Members FROM: City Manager Jeff Weldon Community Development Director Mike Struck City Engineer Jackie Lanning Finance Director Rita Thompson City Attorney Steve Britzman RE: Installation of 25th Avenue/10th Street extension; adjacent commercial development For the past two years, our capital budget has been carrying as a project, the completion of 25th Avenue from its current terminus at 9th Street north to Innovation Drive. This project has not been initiated as the need is driven chiefly by the development of adjacent parcels that would benefit from such infrastructure. In addition, an extension of 10th Street from its current dead-end at Innovation Village Apartments to the newly- constructed 25th Avenue is needed. We have now been approached by developers who are ready to proceed with adjacent private development, thus the need for the street and utility infrastructure. This project does require a partnership with the City to complete. This project will open up approximately 40 acres of development for commercial and certain types of residential uses just off Highway 14 and I- 29. Staff has been working with Mr. Dennis Bielfeldt of Den-Wil Properties and Mr. Craig Lloyd of Lloyd Companies to craft an arrangement whereby the infrastructure could be installed to support private, adjacent, commercial development on several parcels. I (Weldon) met with Mayor Reed and Council Members McClemans and Bartley several months ago to initially City of Brookings July 12, 2011 37 discuss this idea and now we are bringing the overall development concept to the City Council as the developers are ready to proceed. Infrastructure The infrastructure under consideration includes the two streets indicated above with the addition of associated water, sewer, storm drainage, curb and gutter, and any other private utilities. These costs would be assessable under our current policy to benefitting property owners. The streets have been dedicated as public right-of-way by the current owner and such streets are in the City’s Master Street Plan. (Refer to attached concept plan map.) Sidewalks and landscaping would be done at the time of development and not a part of this project. The assessable portion would be the normal size infrastructure but oversizing would be necessary for water and sewer lines. Pursuant to their policy, BMU would pay the oversizing costs. Likewise, the street section would be more extensive than what would be assessable so the City would pay for “extra width and thickness” pursuant to our policy. Benefitting Parcels The benefitting parcels are currently unplatted, but would be dissected into three distinct parcels by virtue of the installation of the streets. One parcel would be approximately 25 acres in size immediately to the north of Lowe’s and east of 25th Avenue. (Identified as parcel 1) A second parcel would be approximately 306 feet by 731 feet in size immediately to the west of 25th Avenue and south of 10th Street. (Identified as parcel 2) A third parcel would be approximately 100 feet by 400 feet in size also to the west of 25th Avenue and just north of 10th Street. (Identified as parcel 3) As you can see from its size, this parcel has very limited development potential. The developers are in the process of acquiring all parcels now from the current owner but that real estate transaction, to the best of my knowledge, has not yet occurred. Current status It has been the staff position that neither private developers, nor the City, should incur the cost of this infrastructure unless there is private development imminent that would benefit from it. Consequently, supporting infrastructure needs to be available and precede private development if the property is to be attractive to commercial development. City of Brookings July 12, 2011 38 To that end, the developers have offered to undertake a development project on Lot 2 Block 2 by constructing Innovation Village II on this parcel if the City installs the infrastructure and assesses the developers for the cost over time. This way, the developers will still pay for the infrastructure but it will be installed like a typical street/utility assessment project. The real benefit here is that Innovation Village II gets added to the taxable valuation of Tax Increment District #1 and starts our reimbursement of funds from capital expenditures associated with the Innovation Campus. Even though this building is outside the research park, it is still in the TIF district and contributes to increased valuation. Recommended agreement Staff is recommending a development agreement with the developers via the draft agreement which is attached. Essentially, the basic provisions of the draft agreement are as follows: 1) The City will undertake the infrastructure improvements associated with the project if the developer builds Innovation Village II as a mutual commitment to the project. 2) The City will assess the developers on a five-year deferral following project completion of the project without interest. This gives time for infrastructure development to occur before assessment begins. 3) The assessment will begin at the five-year time period OR at the time any private development were to occur, whichever comes first. If development were to occur on any part of any of the three parcels, that assessment against that respective parcel would be due and payable in full. 4) Typically, assessments are levied against the property owners. However, state law does permit third parties to assume the assessment liability in lieu of the property owner of record. If the developers do not secure ownership at the time any assessment is due, they would be responsible for assessment payments, not the current owner. Appropriate documents, such as a loan agreement, would be necessary to put such provisions in place beyond the City of Brookings July 12, 2011 39 development agreement. City Attorney Britzman has prepared the initial draft of such an agreement. 5) In the event the developers default on the assessment, the liability of the assessment would revert to the property owner of record so the City would be assured of re-payment. As an alternative assessment method to what is described in Item 4-5 above, state law does permit 100 percent of the assessment to be levied against one parcel of benefit, even if it is not directly contiguous to the improvement but otherwi se benefits from it by close proximity. This would mean that the Innovation Village II apartment building could bear all of the assessment and then the responsibility would be directly with the owner and a third -party assignment would not be necessary. The attached draft development agreement does not contemplate this option but it is possible. 6) The City has begun engineering work on the project and has contracted with CDI and BMU for the engineering and survey work. However, we will not advertise for bidding the project until we have assurances the developers will construct Innovation Village II through such means as a building permit or other mutually agreeable assurance. The developers will be at the Council meeting to further discuss their perspectives on this project. If this development concept is acceptable to the City Council, staff requests authorization to proceed with final details of all essential documents to promulgate the project. Final authorization would come back to the City Council at the appropriate time. The projected timeline is for the developers to initiate construction of Innovation Village II this current construction season. The City would likewise proceed with construction this season of the storm drainage, water/sewer utilities and possibly curb and gutter. Street surface would wait until next year to allow for adequate settling and compaction of the sub-base before the surface. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings July 12, 2011 41 MEMORANDUM OF UNDERSTANDING BY AND BETWEEN THE CITY OF BROOKINGS AND DEN-WIL DEVELOPMENT AND LLOYD COMPANIES FOR THE DEVELOPMENT OF 25TH AVENUE & 10TH STREET EXTENSION PROJECT Preamble and Purpose Statement This Memorandum of Understanding (MOU) is intended to identify the terms, conditions and agreements thereto between the abovementioned parties that provide for the necessary infrastructure improvements associated with the extension of 25th Avenue from its current terminus point on the south and Innovation Drive on the north; also, the extension of 10th Street from its current terminus point on the west at 10th Street dead-end to 25th Avenue on the east. The City has the authority to undertake such improvements and contracts related thereto pursuant to SDCL 9-12-1(1) and 9-45-1. The purpose of the installation of such infrastructure improvements is to promote and encourage the private development of currently-vacant commercial property. 1) Site location Attached is Exhibit A which identifies the site location of the proposed improvements. 2) Proposed infrastructure improvements The improvements associated with these two streets include the street, curb and gutter, storm drainage, trunk water and sanitary sewer mains. All improvements will be installed in the existing right-of-way which has been duly dedicated to the City except for the possibility of de/retention ponds that may be needed to be installed on private property pursuant to the details of the drainage plan. Secondary improvements including but not limited to interior utility service lines, sidewalks, and landscaping are not included in the scope of this project but will be the ultimate responsibility of the developer for the development of the private property that shall be serviced by these public improvements pursuant to applicable City regulations. City and developers agree to work cooperatively to a mutually-agreed upon final plan and design. 3) Engineering, design, and construction of the improvements The City shall be responsible for the engineering, design, staking, construction, and inspection of the proposed improvements. City shall engage the services of Civil Design, Inc. for the design and construction administration of the street and all storm drainage improvements. Brookings Municipal Utilities shall design the water and sanitary sewer systems. These two engineering consultants shall work exclusively for the City. If the project is ultimately approved, the City shall undertake the advertising, bidding, and contracting for the construction of the project. 4) Development of Lot 2, Block 2 for Innovation Village II It is the intent of the Developers to initiate construction of an apartment complex on Lot 2, Block 2 Telkamp Addition during the 2011 construction season. Evidence of such construction City of Brookings July 12, 2011 42 of said development must occur to the satisfaction of the City before the City agrees to advertise for the construction of the infrastructure project. 5) Financing of infrastructure improvements; deferred assessment City agrees to finance the engineering and construction of the project. The City will levy an assessment for the total project cost to the developers pursuant to SDCL 9-54-3.1 ECONOMIC DEVELOPMENT PROJECT-“DEFINITION-REVENUE AGREEMENT.” The South Dakota Attorney General has issued two opinions stating that “a municipality may exercise these powers without the necessity of issuing revenue bonds, if other means can be worked out to finance a project.” AGR 1967-68, p. 460, 1988 S.D. Op. Atty. Gen. 172, 1988 WL 483235 (S.D.A.G.) The assessment will be levied by certification of the assessment roll being received by Brookings County Auditor pursuant to SDCL 9-43-31 so the first assessment installment shall be due on January 1, 2016. The assessment will be levied pursuant to the City’s standard assessment policies of ten percent (10%) interest for a maximum of ten (10) years. Interest shall be paid during the assessment period. No interest shall be due during the five year deferral period. The assessment shall be levied on a front-foot basis against parcels 1, 2, and 3 identified on Exhibit A. Assessable cost shall be all those costs associated with the project as permitted by state law. 6) Financial liability for assessments The developers and the City shall execute a Loan Agreement, Promissory Note, and such other documents as necessary to provide for the financing of the infrastructure improvements as described in Section 5 above, and to secure the payment of the indebtedness. 7) Assessment “trigger” in advance of deferral period If, at any time during the initial five-year deferral period, development were to occur on parcels 1, 2, or 3 as identified on Exhibit A, the assessment shall be activated for that respective parcel. Development is defined as any building permit or approved plat of said parcel. Any plat that seeks to further subdivide parcels 1, 2, or 3 shall trigger that assessment for the entire parcel. 8) Developer default of assessment In the event developers default on any assessment payment, the assessment responsibility for any unpaid, outstanding balance reverts to the owner of record of said parcel. APPROVED, THIS __________ DAY OF _______, 2011. _________________________ ________________________ Tim Reed Dennis Bielfeldt Mayor Den-WIl Properties, Inc. _________________________ ________________________ Shari Thornes Craig Lloyd City Clerk Lloyd Companies, Inc. City of Brookings July 12, 2011 43 Other Business 13. Action on Resolution No. 83-11, a Resolution Authorizing the Transfer of Real Property to the Brookings Economic Development Corporation, Inc. Pursuant to SDCL 9-27-36 for Economic Development Purposes. Brookings Economic Development Corporation is requesting City Council approval of the attached resolution to expedite the transfer of land for economic development. Approving the transfer of economic development land in one blanket resolution will greatly assist efforts to compete for both local business and industry expansion and the recruitment of new business and industry to the community. The ability to provide information and close deals in a timely manner is essential. BEDC is requesting that the transfer price be set at $0, or $1, per parcel to provide a high degree of latitude in the negotiation process. To ensure that the community and City of Brookings receive an adequate return on investment BEDC has formulated a review process, criteria to calculate return on investment, and enforceable business/industry performance measures. We look forward to discussing this important topic with the City Coun cil. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings July 12, 2011 44 Resolution No. 83-11 A Resolution Authorizing the Transfer of Real Property to the Brookings Economic Development Corporation, Inc. Pursuant to SDCL 9-27-36 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., (referred to herein as “BEDC”), which is a local nonprofit industrial development corporation, has determined that its economic development efforts will be furthered if it can expedite its real estate transactions due to the time intensive competition for companies evaluating possible sites; and Whereas, SDCL 9-27-36 authorizes a municipality to sell on a negotiated basis its real property to a local industrial development corporation for economic development purposes; and Whereas, in order to assist BEDC expedite its real property transactions, the City agrees to sell certain real property to BEDC for economic development purposes, with the description, selling price and terms of sale of the real property set forth in this Resolution; Now Therefore, the City Council of the City of Brookings, South Dakota, approves the foregoing policies and as follows: A. That the City agrees to sell the real property described on Exhibit “A” and for the price per parcel also as set forth therein. The City will convey title to the above described property to the Brookings Economic Development Corporation, Inc. when BEDC provides notice to the City of a qualifying prospect and identifies a specific parcel or parcels as set forth on Exhibit “A”, and thereafter pays the full purchase price; B. That any real estate title transfers by the City to BEDC shall contain covenants which require that the real property be used only as the site for a company or organization which constitutes an economic development purpose consistent with this Resolution; and C. That the City Manager and City Clerk are authorized to execute the documents and agreements in accordance with this Resolution. Passed and approved on the 12th day of July, 2011. CITY OF BROOKINGS: ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk Exhibit “A” Description of Property Price per Parcel City of Brookings July 12, 2011 45 BEDC Economic Development Policy Recommendation – Process (DRAFT – FOR DISCUSSION PURPOSES) 1. Approve Resolution - see attached Steve Britzman draft. (BEDC desires - a statement regarding the blanket transfer of economic development land to BEDC for qualifying projects.) 2. Qualifying projects are broadly characterized within the following categories: a. Industry Target: i. Plant Sciences & Food Production – Food & Energy Crop Research and Production, Value –added Processes ii. Green Energy – Solar, Wind, PV, Biomass, Energy Management iii. High Technology – Imaging Sciences, Financial Analytics, Engineered Products and Services, Materials R&D and Analysis iv. Animal Health – Vaccines, Diagnostics, Nutrition v. Human Health – Food & Nutrition, Drugs & Drug Delivery, Genetic & Diagnostic Testing Services, Value-added processes vi. Retail – select retail establishments b. Industry Type: i. Research & Development ii. Professional Services iii. Production c. Return on Investment (ROI) Scorecard (See attached) d. ROI/Incentive Investment break points i. TBD e. Required performance guarantees i. FTE’s, Wages and Total Payroll ii. Capital Investment – Equipment & Leasehold Improvements 3. Decision-Making Process : a. Investment Committee Composition – four board appointed BEDC members and three appointed Brookings City Council members. (Committee is empowered to close the deal.) b. Scoring – to be conducted based upon the following two criteria as depicted in the ROI Scorecard: i. Objective Criteria – 75% of total score ii. Subjective Criteria – 25% of total score 4. Economic Development Fund Replenishment : a. Several methods exist to replenish an economic development investment fund as follows: i. Land sale proceeds. ii. Portion of estimated sales tax of new projects. iii. Portion of 2nd penny tax similar to VPC 3rd penny tax funding mechanism. (The preferred method to establish an ongoing funding mechanism would be this option.) Since this fund would likely not be used every year it could be established with a $1 million cap. Other decisions, such as the use of TIF Districts in these improvement areas could also be considered. City of Brookings July 12, 2011 46 Other Business 14. Possible Action to appoint City Council members to the Investment Committee. In conjunction with the passage of Resolution No. 83-11, the Brookings Economic Development Corporation (BEDC) is forming an Investment Committee to review land sale proposals. The committee will be comprised of four (4) BEDC representatives and three (3) city representatives. Council action is requested to appoint the three city representatives. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings July 12, 2011 47 Executive Session 15. Executive Session to consult with legal counsel on pending litigation. 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 July 12, 2011 48 16. Adjourn.