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HomeMy WebLinkAbout2011_10_11 CC PKT Brookings City Council Tuesday, October 11, 2011 5:00 p.m. Work Session 6:00 p.m. Regular Meeting 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. Presentation and Recommendations from Business Improvement District Board. 2. Proposed Amendments to the City of Brookings Governance and Ends Policies. 3. City Council Member Ex-Officio Reports. 4. Joint Powers Board members‘ Report. 5. City Council member introduction of topics for future discussion. 6. Review of Council Agenda, Invites and 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 stating 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 to cancel the November 8th City Council meeting. D. Action on an I-1R Site Plan for Lot 1, Block 1, Foster Addition (1200 Block of 32nd Avenue). 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. 5. Items removed from Consent Agenda. Open Forum/Presentations/Reports 6. Open Forum. 7. SDSU Student Senate Report. Second Readings / Public Hearings 8. Ordinance No. 17-11: Pawnbrokers - An Ordinance Amending Article IV. of Chapter 26 of the Code of Ordinances of the City of Brookings and pertaining to regulation of Pawnbrokers in the City of Brookings, South Dakota. Action: Motion to approve, Request Public Comment, Roll Call 9. Public hearing and action on Resolution No. 116-11, a Resolution to Annex Lots C and D, Christie Addition in the NW ¼ of Section 2-T109N-R50W; and Outlot C in the NW ¼ of the NW ¼ of Section 2-T109N-R50W. Action: Open and close public hearing, Motion to approve, Roll Call Other Business 10. Discussion and action to approve cost share with the South Dakota Department of Transportation for storm sewer on 6th Street between Highway 14 Diagonal and Main Avenue. Action: Motion to approve, Request Public Comment, Roll Call 11. 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. 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. 1. Presentation and Recommendations from Business Improvement District Board #1. The Business Improvement District #1 Board of Directors will present their recommendations for the plan of improvements within the district boundaries. The Board consists of the following members: Lance Park, Tom Richter, Tari Waterman, Deb Garbers and Bob Johnson. The Business Improvement District #1 is an area consisting of non - contiguous properties within the City of Brookings and comprised of all hotels/motels with 25 or more rooms. The occupational tax is based on rooms rented by a lodging establishment and may not exceed two dollar s per occupied room per night. A powerpoint presentation will be presented during the meeting. 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. 2. Proposed Amendments to the City of Brookings Governance and Ends Policies. Pursuant to our annual review of the Governance and Ends (G & E) Policy, staff is recommending some technical corrections to the document; especially in the area of finance. There have been a number of changes in government auditing and accounting practices (GADB 54) which will require us to modify some of our practices. Attached is the entire G & E policy and with the amendments indicated by strikethroughs and new language. City Finance Manager Rita Thompson will provide an overview and explanation of the proposed changes. 5 City of Brookings Governance and Ends Policies (Suggested changes 10/11/2011) City of Brookings October 11, 2011 6 City of Brookings Governance and Ends Policies This document, established by the Brookings City Council, defines, protects, and prioritizes the workings of City Government. It is the ongoing hope of the Brookings City Council to lead the Citizens of Brookings in an ethical and prudent manner, in the best interests of the citizens, looking to the future rather than the past, as provided in the Mission Statement: 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. Table of Contents: Governance Policies Defining the Purpose of the City Council, City Manager, and all City Employees 1. Governance Process 1.1 Ownership of the Council 1.2 Council Role 1.3 Council Style and Vision 1.4 Council Action 1.5 Council Code of Conduct 1.6 Citizen Advisory Boards 1.7 Review and Update of Policies 2. Council-Staff Linkage 2.1 City Manager Role 2.2 Delegation to the City Manager 2.3 Monitoring Executive Performance Ends Policies Establishing what is to be done, for whom, at what cost, and Executive Limitations to define unacceptable means 1. Financial Stability 2. Municipal Services 3. Business Models 4. Economic Development 5. Employee Training and Development 6. Intergovernmental Cooperation and Relations Appendix A: City Council Code of Ethics Appendix B: Volunteer Code of Ethics City of Brookings October 11, 2011 7 City of Brookings Policy 1, Governance Process Defining the purpose of the City Council, City Manager, and all City Employees: 1.1 Governance Process, Ownership of the Council – Key Performance Area Governance Process is considered a key performance area by the Brookings City Council, and appears in the Mission Statement as ―municipal management.‖ The Brookings City Council shall answer to, and take into consideration the best interests of, all residents of the City of Brookings, both vocal and silent citizens, with respect paid to all residents, regardless of their economic status. Since the City is ―owned‖ by the Citizens, the Council‘s thinking shall be influenced by this ownership. Secondarily, the City Council shall consider the needs of any person who regularly shops in, uses facilities of, or accesses services from the City of Brookings. 1. The Council represents the Citizens. Therefore, it shall educate itself regarding the values held by the persons it represents and shall act always under the influence of those values. The Council‘s education may be facilitated by (a) formal and informal Citizen opinions; (b) formal and informal focus groups to explore specific issues; (c) considering input by citizen volunteers who participate on advisory boards, committees and commissions; (d) monitoring the demand and utilization of services; (e) discussions with representatives from other governmental and educational bodies; and (f) reviewing reports and citizen responses in the media. 2. The Council shall report periodically to the Citizens on its stewardship. At least once per year, the Mayor shall give an accounting of the City‘s financial resources and the extent to which these funds have been translated into services, in the State of the City message. 1.2 Governance Process, Council Role The role of the Council, on behalf of the Citizens of Brookings, is to assure that the City of Brookings (a) accomplishes what it should, and (b) avoids unacceptable activities and conditions. 1. The Council will engage in structured contact with citizens of Brookings to represent their diversity. 2. The Council will define in Ends policies what is to be accomplished in terms of benefits, recipients, and their relative priorities. It will define in Executive Limitations policies those activities and conditions it considers unacceptable. The Council will delegate performance on these matters to a City Manager. 3. The Council will carry out its job with discipline, emphasizing strategic rather than short-term issues, policy rather than single events, and group rather than individual decisions. 4. Whenever possible, the Council will avoid the use of committees that separate the wholeness of the Council. When further research on a topic is needed, the Council may appoint one member to investigate. However, the Council should avoid subgroups City of Brookings October 11, 2011 8 of Council members, since subgroups tend to develop a life separate from the Council as a whole. 5. The annual cycle of the Council will conclude with a review of Ends policies, in April, just prior to City Manager construction of a new annual plan and budget. 6. The Council shall honor all demands and restrictions outlined in the Brookings City Charter. 1.3 Governing Process, Council Style & Vision The Council will govern with an emphasis on (a) outward vision rather than an internal preoccupation, (b) strategic leadership rather than administrative detail, (c) clear distinction of Council and City Manager roles, (d) collective rather than individual decisions, (e) future rather than past or present, and (f) proactively rather than reactivity. The Council will: 1. Deliberate in many voices, but govern in one. 2. Cultivate a sense of excellence. The Council will be responsible for excellence in governing. The Council will be an initiator of policy, with the advice and counsel of the City Manager. 3. Cultivate a sense of group responsibility. The Council will use the expertise of individual members to enhance the ability of the Council as a body. However, it is not the intention of the Council to defer the group‘s judgment to any one individual. 4. Direct, control and inspire the organization through the careful establishment of broad written policies reflecting the Council's values and perspectives. The Council's major policy focus will be on the intended long-term impacts outside the operating organization, not on the administrative or programmatic means of attaining those effects. 5. Enforce upon itself whatever discipline is needed to govern with excellence. Discipline will apply to matters such as attendance, preparation for meetings, policymaking principles, respect of roles, and ensuring the continuity of governance capability. Continual Council development will include orientation of new members in the Council's governance process and periodic Council discussion of process improvement. The Council will allow no officer, individual or committee of the Council to hinder or be an excuse for not fulfilling its commitments. In compliance with this policy, in May 2002 the City Council adopted a City Council Code of Ethics. It is attached to this document as Appendix A. 6. Monitor and discuss the Council's process and performance at each meeting. Self- monitoring will include comparison of Council activity and discipline to policies in the Ends, Governance Process and Council-Staff Linkage categories. City of Brookings October 11, 2011 9 1.4 Governance Process, Council Action The job of the City Council of Brookings is to achieve the mission in a prudent and ethical way. The job of the Council is to make certain contributions which are unique to its public trusteeship role and necessary for proper governance and management of the City. Consequently, the "products" of the Council itself shall be: A. Connection between the Council and its "ownership," the Citizens. B. Written governing policies that concern: a. Governance Process (how the Council carries out its task, and the passing of power and measurement of its use). b. Ends Policies (what benefits, for whom, at what cost), and Executive Limitations (prudent and ethical limitations binding upon the staff). C. The assurance of staff performance (through guidance and evaluation of the City Manager). 1.5 Governance Process, Council Code of Conduct Since Council members have no authority as individuals, members shall refrain from efforts that may lead to situations in which a Councilperson might have occasion to overstep their bounds. Although not every situation can be outlined, some common areas of concern include: 1. Staff being intimidated or manipulated by a Councilperson‘s individual comments or actions. Council members must bear in mind that at times, staff may ask for an individual opinion from a Council member, and while the Council member may sincerely respond only as an individual, staff will often place undue emphasis on the opinion, due to the Council member‘s status. 2. Staff being polarized by dissention. Although all Council members are obligated to register differences of opinion on Council issues at the Council level as passionately as desired, individual members must not direct their differences of opinion to staff in a manner which creates dissension or polarization in the organization. 3. Since no one has the right to speak on behalf of the entire Council, individual Council members are encouraged to conduct themselves in a professional manner in all communications. 4. Members will not individually render binding judgments of the City Manager or staff performance apart from compliance with Council policies as monitored by the Council as a body. 1.6 Governance Process, Citizen Advisory Boards The Council values the expression of citizen viewpoints on topics of concern to the Council. Therefore, the Council will continue the tradition of seeking input from volunteer citizen advisory boards and committees, although final responsibility for decisions, and the implementation that follows, rests entirely with the Council. The Council reminds staff that the ideal purpose of citizen involvement is not to advance staff agendas, but to seek objective opinions from a diverse range of citizens. City of Brookings October 11, 2011 10 Guideline A: The Council will make every effort to offer overall direction and guidelines to citizen volunteers, through the use of Council Ends Policy statements, and by reviewing the mission and need for each citizen advisory board and committee on an annual basis. During the annual review: 1. The Council will determine if the need for a citizen advisory board or committee justifies continuation of the board or committee. If continuation is justified, proceed to #2. 2. The Council will make an effort to determine the most effective use of citizen volunteers, with a primary decision being the length of service for each board and committee. The Council believes citizen input will be more likely objective and updated if the advisory board or committee is kept in an ad hoc (short-term) format. However, the Council recognizes that some complex issues require citizen involvement for a longer period in order to be effective. 3. Unless otherwise specified by the Council, the City Manager will coordinate the activities and reporting functions of all citizen advisory boards and committees. 4. The City Manager will base his guidance of citizen advisory boards and committees on Ends Policies established by the Council. 5. The Mayor, with advice and consent of the Council, will make all appointments to citizen advisory boards and committees. 6. Upon recommendation of the City Manager, the Council may approve the creation of ad hoc committees to assist the City Manager or his staff. 7. In compliance with this policy, in May 2002 the City Council adopted a Volunteer Code of Ethics. It is attached to this document as Appendix B. Guideline B: The Council directs all staff to review relevant Ends Policies with citizens upon their appointment to an advisory board or committee. The Council asks staff to be as objective as possible in educating and presenting options to citizens, since the purpose of advisory boards and committees is not only to hear from citizens, but to increase citizen involvement, loyalty, and creativity toward their City. 1. The Council asks the City Manager to create and regularly update an orientation packet for each new volunteer that includes relevant Ends Policies. 2. The Council asks staff to review this orientation packet with each potential volunteer, prior to their appointment, emphasizing this very policy (Policy 1.6), and asking for a citizen signature on the line that indicates understanding of this policy. 3. Staff will provide regular summaries of citizen committee work to the Council. 1.7 Governance Process, Review and Update of Policies The Council will review all policies (including Governance, Council-Staff Linkage, Ends, and Executive Limitations) during the first quarter of each year, although the Council may also review and update any policy at any time deemed prudent and necessary by the Council. The Council expects immediate adjustment by the City Manager to any policy change instituted by the Council. City of Brookings October 11, 2011 11 City of Brookings Policy 2, Council-Staff Linkage Defining the purpose of the City Council, City Manager, and all City Employees: 2.1 Council-Staff Linkage, City Manager Role As the Council's single official link to the operating City government, the City Manager's performance will be considered to be synonymous with organizational performance as a total. Consequently, the City Manager's job contributions can be stated as performance in these, but not limited to: 1. City government accomplishment of the provisions of Council policies within the Policy Governance Model, especially Ends Policies, but also including Governance Process, and Council-Staff Linkage policies. 2. City government operation within the boundaries of prudence and ethics established in Council policies on Executive Limitations. 2.2 Council-Staff Linkage, Delegation to the City Manager All Council authority delegated to staff is delegated through the City Manager, so that all authority and accountability of staff--as far as the Council is concerned--is considered to be the authority and accountability of the City Manager. 1. The Council will direct the City Manager to achieve certain results, for the citizens, at a certain cost, through the establishment of Ends policies. The Council will limit the latitude the City Manager may exercise in practices, methods, conduct, and other "means" through the establishment of Executive Limitations within those policies. 2. As long as the City Manager uses any reasonable interpretation of the Council's Ends and Executive Limitations policies, the City Manager is authorized to establish all further policies, make all decisions, take all actions, establish all practices, and develop all activities. 3. The Council may change its Ends and Executive Limitations policies, thereby shifting the boundary between Council and City Manager domains. By doing so, the Council changes the latitude given to the City Manager. Council members will respect and support the City Manager‘s decisions and choices, whenever made pursuant to existing Council Policies. 4. Only decisions of the Council acting as a body are binding upon the City Manager. 5. In the case of Council members, citizen advisory committees, or others, requesting information or assistance without Council authorization, the City Manager may turn to the Council for guidance, especially when such requests will require an inordinate amount of staff time or funds, or are disruptive to the efficient operation of the City. City of Brookings October 11, 2011 12 2.3 Council-Staff Linkage, Monitoring Executive Performance. Monitoring executive performance is synonymous with monitoring organizational performance against Council policies on Ends and on Executive Limitations. Any evaluation of the City Manager‘s performance, formal or informal, may be derived only from these monitoring data. This policy places the burden of measuring success on two pivotal points: well-defined Ends and Executive Limitation policies, and accurate measurements. Without well-defined policies and accurate measurements, the point of monitoring performance is lost. The Council recognizes the need to insulate the City Manager‘s role from performance reviews that rate personality rather than performance. 1. The purpose of monitoring is simply to determine the degree to which Council policies are being fulfilled. Information which does not do this will not be considered monitoring. Monitoring will be as automatic as possible, using a minimum of Council time so that meetings can be used to create the future rather than to review the past. 2. A given policy may be monitored in one or more of three ways: a. Internal report: Disclosure of compliance information to the Council from the City Manager. b. External report: Discovery of compliance information by an objective party who is selected by and reports directly to the Council. Such reports must assess executive performance only against policies of the Council, not those of the external party unless the Council has previously indicated that party's opinion to be the standard. c. Direct Council inspection: Discovery of compliance information by a Council member, or the Council as a whole. This is a Council inspection of documents, activities or circumstances directed by the Council which allows a "prudent person" test of policy compliance. 3. The Council recognizes that, at times, non-compliance with a policy may be necessary and prudent in the short term. However, in order to monitor the performance of the City, and to modify policies that need improvement, the Council must be constantly aware of compliance issues. The Council expects monitoring and reporting compliance or non-compliance to be the City Manager‘s highest priority. To promote regular monitoring, the Council asks the City Manager to follow these guidelines: a. All Ends and Executive Limitations statements will be monitored and compliance will be formally announced by the City Manager to the Council on a quarterly basis. b. Any non-compliance will be reported immediately, at the next Council meeting, if not before, and non-compliance will then be monitored on a monthly basis, until compliance is reestablished, or the policy is changed. 4. During the first quarter of each year, the Council will institute a formal evaluation of the City Manager. This evaluation will consider only monitoring data as defined here, as it has appeared over the intervening year. City of Brookings October 11, 2011 13 City of Brookings Ends Policy 1, Financial Stability Establishing what is to be done, for whom, at what cost, and Executive Limitations to define unacceptable means Financial Stability – Key Performance Area Financial stability is considered a key performance area by the Brookings City Council, and appears in the Mission Statement as ―fiscally responsible municipal management.‖ One of the duties of the City Manager is the development of a process that keeps the Council aware of upcoming budgetary needs and requests, so that the Council may aid in the creation of ongoing budget priorities. Good stewardship requires the Council to discern what is in the best interests of the citizens, and budget accordingly. Therefore, budgeting for any fiscal period or the remaining part of any fiscal period shall not deviate materially from Council Policies as established in key performance areas, or other City Council policies. The City Manager is therefore prohibited from budgeting or spending that: 1. Lowers the City‘s bond rating; 2. Lowers the pledged revenues collected by the City in the last preceding fiscal years as determined by the City to not less than 1.75 times the annual principal and interest requirements on the outstanding bonds with a goal to maintain a 2 times coverage. 3. Violates Federal, State, or Municipal laws; ethical standards; and generally accepted accounting and budgeting principles. In addition, the City Manager may not bypass Council judgment to allow budgeting that: 1. Allows expenditures to exceed revenues, including the contingency as an expenditure; 2. Increases the property tax rate; 3. Includes capital expenditures that have not been previously approved by the Council; in a Capital Improvement Plan or other council action; 4. Causes the City to incur new debt; 5. Increases operating expenses (meaning personnel and capital excluded) in any department beyond inflation using at least a rolling six month average of the Midwest Consumer Price Index; 6. Provides for employee compensation and benefits that exceed market standards; Guideline A: With respect to budget preparations, the City Manager shall stay within the confines of what constitutes a conservative perspective, as it is the Council‘s intention to: 1. Make conservative revenue projections using the previous five-year average as a benchmark, with an emphasis on the previous year actual and current year actual. Projections using current data should not be made with less than 6 months rolling actual data. 2. Provide valuable citizen services; 3. Lighten the debt load of the City; City of Brookings October 11, 2011 14 4. If a property tax rate is justified only because of state limitations, a special reserve will be created. 5. The City has established the policy that financial, service and program performance measures be developed and used as an important component of decision making and incorporated into governmental budgeting. The City encourages all departments to utilize performance measures. At a minimum, performance measures should be used to report on the outputs of each program and should be related to the objectives of each department. Performance measures should: a. Be based on program objectives that tie to the City Council‘s goals and program mission or purpose; b. Measure program results or accomplishments; c. Provide for comparisons over time; d. Measure efficiency and effectiveness; e. Be reliable, verifiable and understandable; f. Be reported internally and externally; g. Be monitored and used in decision-making processes; and h. Be limited to a number and degree of complexity that can provide an efficient and meaningful way to assess the effectiveness and efficiency of key programs. Guideline B: In addition, as the City Manager assumes his duties, the Council requests that the City Manager keep information flowing to the Council, especially concerning plans relating to consolidation or expansion of any City departments. Therefore, the City Manager may not consolidate or expand any City Department without first informing the Council of the intended action. Guideline C: With respect to reserve funds the City Manager‘s overall budgetary goal will be to present a budget that allows for reasonable reserve creating options for the Council. The City Manager may not bypass Council judgment to allow budgeting that: 1. Lowers the General Fund Reserve below a 3-month operational level: a. The 3-month calculation shall be based upon General Fund expenditures, derived from the previous year‘s Audited Financial Statement. The reserve amount shall reflect the targeted reserve amount, deficiencies below the targeted reserve amount and any discretionary funds available above the targeted reserve amount. b. General Fund reserves may be used at the Council‘s discretion to address temporary cash-flow shortages, emergencies unanticipated economic downturns, one-time opportunities and capital needs related to buildings, structures and vehicles used specifically in the operation of the General Fund. They provide flexibility to respond to unexpected opportunities that may help the City achieve its goals. The funds identified in ―b‖ above may be used at the Council‘s discretion to address temporary cash flow shortages, emergencies, unanticipated economic downturns, and one- time opportunities. They provide flexibility to respond to unexpected opportunities that may help the City achieve its goals. City of Brookings October 11, 2011 15 2. Lowers the following funds below the following: a. The Industrial Development fund – a cash flow reserve of 10% and a capital reserve of 90% funded with revenue from the sale of industrial lands with a minimum of $500,000 in capital reserve. b. The Special Assessment fund – a reserve based on an annual analysis of current development and future needs. c. The Storm Drainage fund - a cash flow reserve of 20% of annual revenues and a capital reserve based on the capital improvement plan with a minimum of 80% of annual revenues from the previous year. The City of Brookings establishes and will maintain reservations of Fund Balance, as defined herein, in accordance with Governmental Accounting and Financial Standards Board Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. This Policy shall only apply to the cities governmental funds. The fund balance information is used to identify the available resources to repay long-term debt, reduce property taxes, add new governmental programs, expand existing ones, or enhance the financial position of the City, in accordance with policies established by the City Council. Fund Balance shall consist of five categories: non- spendable, restricted, committed, assigned and unassigned amounts. a. Non-spendable Fund Balance– Amounts that are not in a spendable form (such as inventory) or are required to be maintained intact. b. Restricted Fund Balance – Amounts that can be spent only for the specific purposes stipulated by external resource providers, or enabling legislation. Restrictions may be changed or lifted only with the consent of the resource providers. c. Committed Fund Balance- Amounts that can be used only for the specific purposes determined by a formal action of the City Council. Commitments may be changed or lifted only the City Council taking the same formal action that imposed the constraint originally. d. Assigned Fund Balance-Amounts the City intends to use for a specific purpose. e. Unassigned Fund Balance- The residual classification for the general fund and includes amounts that not contained in the other classifications. Unassigned amounts are the portion of fund balance which is not obligated or specifically designated and is available for any purpose. The City Manager is directed to use first the restricted resources, prior to the use of the unrestricted resources, when an expense is incurred for purposes for which both restricted and unrestricted funds are available. When expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications can be used, committed amounts should be reduced first, followed by assigned amounts and the unassigned amounts. City Council hereby directs the City Manager to establishes and maintain the following committed fund balance: a. Fiscal Stabilization Arrangement-A minimum of 10 percent of the General Fund beginning adopted appropriations (expenditure budget) should be incrementally established and maintained for use in meeting unanticipated needs and/or emergencies. City of Brookings October 11, 2011 16 I. Use of Stabilization Fund Balance-The amount shall be used only after all efforts have been exhausted to fund unanticipated needs and/or emergencies, such as would occur in event of a natural disaster. Once the City Manager or his/her designee has determined that it is necessary to draw down fund balance, written communication should be provided by the City Manager to the City Council, explaining the nature of the unanticipated need and/or emergency and requires approval by a two-thirds vote of the Council. The Stabilization Fund Balance may not be used for more than two consecutive years. II. Replenishment of Stabilization Fund Balance-If the reserves are drawn down below the minimum required level of 10 percent, then a budgetary plan shall be implemented by the City Manager to return the reserve to a minimum 10 percent level in no more than a 5 year period. The City Manager will report the progress of the replenishment to the Council in the annual budget. III. Funding of Stabilization Fund Balance-Proceeds from the sale of City owned surplus property and any other funds identified in the budget will be used to increase the reserve. Interest earnings will be applied on the reserve balance each fiscal year until replenished to the minimum required level. The City Council directs the City Manager to establish annually the Assigned Fund Balance by identifying at the close of each fiscal year, subject approval of the City Council, funds identified in the annual budget and any revisions thereto to provide for differences, if any, between budgeted revenues and expenditures for a specific purpose; however, before expenditure, amounts must be appropriated by the City Council. Council options for further reserves include: a. Transfer to increase the reserve of another fund that is not at the established target; b. To finance un-funded necessities of the previous year‘s budget reductions; c. To pay off debt with a portion of the reserve; d. To finance the expansion of City services; e. To offer property tax, or other tax relief. Other governmental funds are not addressed as they exist primarily to ensure and demonstrate compliance with limitations on the use of existing dedicated revenues and that they were expended for their intended purposes. Capital project funds would be spent out at the end of the project. Guideline D: The use of one-time revenues will be guided by this policy. Examples of one-time revenues include: infrequent sales of assets, bond refunding savings, infrequent revenues from development, and grants. These revenues may be available for more than one year (a three- year grant), but are expected to be non-recurring. Examples of expenditures for which the City may wish to use one-time revenues include startup costs, stabilization (to cover expenditures that temporarily exceed revenues), early debt retirement, and capital purchases. City of Brookings October 11, 2011 17 The City Manager will not bypass Council judgment in making use of one-time revenue. In utilizing one-time revenue, the City Manager will carefully analyze and minimize the need for ongoing expenditures. Guideline E: Capital expenditures will be planned each year in a five-year capital improvement plan. The annual budget will provide a separate accounting of capital expenditures in each department. The city manager should plan major projects with an estimated expenditure and with sources of funding identified. The general fund expenditures for furniture, equipment, and buildings is expected to fluctuate, but an average of 10% of the total general fund expenditures is expected, this includes the amount funded by the 25% 2nd Penny funds. Guideline F: Upon the City Council‘s adoption of an annual budget and five year capital plan that is presented in accordance with Guidelines A through E, the City Manager assumes responsibility for ensuring compliance with the budget as an established City Council Policy. This includes expenditure control, and program and service delivery within that budget. Minor deviations are tolerable and encouraged to maintain cost control and deliver quality services. Examples of minor deviations are variances of purchases and costs between line items in a budget, changes in programs and services resulting in cost savings or without cost, the use of grants that do not cause future costs, and the purchases of minor equipment. This list is not exhaustive. Major deviations require notification and sometimes-prior approval by the City Council. Examples of major deviations include the use of the contingency fund, program eliminations or additions, the use of cash instead of debt when debt was planned, changes in the capital improvement plan, and change orders in capital projects. This list is not exhaustive. To facilitate a budget that can respond to changing needs, the City Council will approve a contingency fund for the City Manager to utilize at his/her discretion. Examples of uses for the City Manager‘s contingency fund include: unbudgeted training opportunities for staff; purchases of software, hardware, and small equipment that was unbudgeted; one-time expenditures to fill a major position vacancy; one-time expenditures requested by outside entities; and emergencies in general. The Manager would be expected to make an effort to avoid utilizing the contingency. The City Manager will report compliance or deviations from this Guideline for Financial Stability on a quarterly basis. Guideline G: Budgets for Enterprise Funds will be prepared by the City Manager with a goal of providing quality services and sustaining a maximum return to the General Fund on a long-term basis. A return on assets (ROA) will be calculated on an annual basis. Net Assets serve over time a useful indicator of a government‘s financial position. Within the annual financial statement the City Manager will annually provide a management discussion and analysis of business type funds and the changes in net assets. City of Brookings October 11, 2011 18 Guideline H: Appropriation and Subsidy Policy & Guidelines Purpose. The purpose of this policy is to establish guidelines and criteria regarding the allocation and use of municipal subsidies within the City of Brookings. These guidelines shall be used in processing and reviewing applications requesting municipal subsidy assistance. Protecting the financial interest is of the City of Brookings is of the utmost importance, so it is the intent of the city to provide a minimum amount of municipal subsidies, as well as other incentives that the City may deem appropriate, for the shortest term required for the project to proceed. The City reserves the right to approve or reject projects on a case-by-case basis, taking into account established policies, specific project criteria, and demand on city services in relation to the potential benefits to be received from a proposed project. Meeting policy guidelines or other criteria does not guarantee the award of municipal subsidies. Furthermore, the approval or denial of one project is not intended to set precedent for approval or denial of another project. Whenever possible, it is the City‘s intent to coordinate the use of municipal services with other local governing bodies and taxing jurisdictions. Objective of Municipal Subsidies. 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. To fulfill this commitment, the Brookings City Council will closely examine its goals and the goals of its city departments to identify outcomes that will meet the standards as outlined in the mission statement above. The Council also recognizes that its support of programs and services outside the scope of its city departments may be necessary to fulfill the commitment and achieve the desirable quality of life for its citizens. As a matter of policy, the City of Brookings will consider using municipal funds to assist in the following areas, but are not limited to, opportunities in the areas of:  Affordable Housing  Arts & Culture  Youth Development  Diversity  Economic Development  Education & Literacy  Environment  Government Stewardship  Health  Parks, Recreation & Open Spaces  Partnerships  Preservation/ History  Safety City of Brookings October 11, 2011 19  Transportation/Transit The Brookings City Council may choose to annually allocate a specified funding amount for a specific category, regardless of the number of applicants for that particular programming area. General Guidelines for the Allocation of Municipal Subsidies. The City of Brookings may allocate up to four (4) percent of the annual General Fund expenditures to subsidize community needs and programs. The City‘s current and projected financial health and stability will be the key deciding factor in determining its ability to provide funds to outside organizations. In addition, the Council will consider a number of factors as defined in the City‘s Funding Application when making this decision. A key factor will be the applicant‘s ability to provide a service or outcome that improves the quality of life for the citizens of Brookings. The applicant must also provide a ―but for‖ analysis which demonstrates the need for public assistance. Other factors include the applicant‘s ability to become self-sustaining, the duration of the funding commitment, and operating verses capital requests. Municipal subsidy will not be used for projects that would place extraordinary demands on city infrastructure and services. Request for donations or subsidies from individuals, religious or political groups based out of the City of Brookings will not be considered. Request for donations or subsidies from qualified organizations outside of the funding timeline will not be considered. General Guidelines for Subsidies. The Brookings City Council evaluates program-funding proposals on an annual basis for funding in the following calendar year. The City‘s fiscal year is January 1 to December 31. Proposals must be submitted to the City Clerk in accordance with the budget cycle schedule and proposal format outlined below. Requests may only be made during this period of time. Completed applications must be received on or before June 1st of each given year. Following, a review by the City Manager and Finance Manager, the application shall be referred to the City Council for further consideration during the annual budget meetings. Organizations applying for a donation or subsidy must submit a completed Application for Funding along with a detailed description of the project; a preliminary site plan; the amount requested; the duration of the funding request; the public purpose of the project; verifiable funding sources and uses; and a ―but for‖ analysis which demonstrates the need for public assistance. Additional documents that may be required include the organization‘s current expense statement and budget, Board of Directors listing, current Annual Report, and all other items specified in the City of Brookings Application for Funding. Budget Hearing Process. Brookings City Council budget meetings are held in the months of August and September. All budget meetings are open to the public. Applicants may or may not City of Brookings October 11, 2011 20 be invited to make a presentation on their funding proposal. Applicants are encouraged to attend all budget meetings to remain informed during the process. Applicants should be prepared to answer questions based on the application. Final action on the budget occurs at the last Council meeting in September. Brookings School District Subsidies. Appropriation of public funds can be set aside for specific purposes which promote the City of Brookings mission and the local quality of life within the City of Brookings. Brookings Municipal Utilities transfers funds each year to the General Fund as a means to keep city property taxes at a low level for the citizens of Brookings. The City of Brookings may annually appropriate not less than 13.5% up to 15% of the transfer from the Brookings Municipal Utilities to the Brookings School District. Economic Development/Promotions Subsidies. A subsidy from the 3rd B Fund shall meet the requirements of the SD State Statute 10-52-8*. Funds will be appropriated from the 3rd B Fund to entities with the capacity to promote and advertise the city, its facilities, attractions, and activities. In any fiscal year, the City may require the unencumbered funds be returned to the City 3rd B Fund. Subsidy Agreement and Reporting Requirements. The City of Brookings requires all recipients of municipal funds to enter into appropriate agreements that identify the reason for the subsidy, the public purpose served by the subsidy, subsidy payment schedule, final the specific performance measurements to be attained, and final reporting on outcomes. Failure to provide final reporting of funds and all other required reports will make applicant ineligible for future subsidies. The City has established the policy that financial, service and program performance measures be developed and used as an important component of decision making and incorporated into governmental budgeting. The City encourages all departments to utilize performance measures. At a minimum, performance measures should be used to report on the outputs of each program and should be related to the objectives of each department. The performance measurements should: 1. Be based on program objectives that tie to the City Council‘s goals and program mission or purpose; 2. Measure program results or accomplishments; 3. Provide for comparisons over time; 4. Measure efficiency and effectiveness; 5. Be reliable, verifiable and understandable; 6. Be reported internally and externally; 7. Be monitored and used in decision-making processes; and 8. Be limited to a number and degree of complexity that can provide an efficient and meaningful way to assess the effectiveness and efficiency of key programs. All agreements and reports shall be timely prepared and filed with the City Clerk. Failure to comply with any of these requirements may result in the revocation of the requested subsidy as City of Brookings October 11, 2011 21 well as fines, repayment requirements, and a determination that the organization is ineligible for future municipal subsidies for a period of years. * Applicable State Statute: 10-52-8. Additional tax on lodgings, alcoholic beverages, prepared food, and admissions -- Purposes -- Conformance with state sales and use tax. Notwithstanding the tax rate limitations of §10-52-2 or 10-52-2.1, any municipality may impose an additional municipal non-ad valorem tax at the rate of one percent upon the gross receipts of all leases or rentals of hotel, motel, campsites, or other lodging accommodations within the municipalit y for periods of less than twenty-eight consecutive days, or sales of alcoholic beverages as defined in §35-1-1, or establishments where the public is invited to eat, dine, or purchase and carry out prepared food for immediate consumption, or ticket sales or admissions to places of amusement, athletic, and cultural events, or any combination thereof. The tax shall be levied for the purpose of land acquisition, architectural fees, construction costs, payments for civic center, auditorium, or athletic facility buildings, including the maintenance, staffing, and operations of such facilities and the promotion and advertising of the city, its facilities, attractions, and activities. Such taxes shall conform in all respects to the state sales and use tax on such items with the exception of the rate. City of Brookings October 11, 2011 22 City of Brookings Ends Policy 2, Municipal Services Establishing what is to be done, for whom, at what cost, and Executive Limitations to define unacceptable means Municipal Services – Key Performance Area Municipal Services is considered a key performance area by the Brookings City Council, and appears in the Mission Statement as ―providing a high quality of life for citizens.‖ The City Council deems City Services, along with fiscal management, as the highest priorities of the City Manager and City Employees. There is no more important function of City Government than to serve the Citizens of Brookings in a friendly, effective manner. For this document, the City Council defines Municipal Services as Life Safety (police and fire), and Functional Services (all other departments). Guideline A: In terms of Life Safety, involving the police and fire departments, the City Manager will: 1. In emergency situations, uphold the decisions made by the fire or police chief; 2. Maintain personnel at established baselines; 3. Provide appropriate equipment to maximize safety of personnel; 4. Enforce ordinances and laws; 5. Not allow situations to develop that may raise insurance rates for citizens or for the City; 6. Maintain the budget in such a way that will not lower the quality of services. Guideline B: In terms of Functional Services, which include all departments of the City other than Life Safety, the City Manager will: 1. Repair infrastructure in a timely manner; 2. Increase services while forecasting benefits; 3. Expand department budgets only while documenting baselines; 4. Approve changes that fall within the long-term plan; 5. Be intolerant to waste or inefficiency of any kind; Continually strive to improve operational efficiencies; 6. Be intolerant to poor service by City Employees; Establish, model, and enforce the highest standards of exceptional customer service from city employees; 7. Enforce ordinances and laws; 8. Document ongoing citizen satisfaction and performance reviews for services provided; 9. Provide support and guidance for staff when they are forced to work outside of their expertise; 10. Seek opportunities to share facilities with other entities; 11. Anticipate foreseeable needs; 12. Use foresight in developing services; 13. Deliver services in a timely and quality manner; 14. Consider citizen complaints; 15. Emphasize a user-friendly approach; City of Brookings October 11, 2011 23 16. Apply technology whenever beneficial. Guideline C: The City of Brookings has unique enterprise operations including the Solid Waste Fund, Disposal (landfill), the Solid Waste Collection, the Edgebrook Golf Course, the Research and Technology Center, the Liquor Retail Store, and the Liquor Override. In terms of enterprise operations the City Manager will: 1. Comply with Guideline B; 2. Review the Return on Assets (ROA) on an annual basis. The Return on Assets will be calculated comparing the net profit to the total assets of each enterprise operation. Net profit will be calculated using the total revenue of each enterprise including the sales of services or goods, interest, rents, sale of fixed assets, and miscellaneous income minus all expenses including depreciation, but excluding the General Fund transfer expense. Total assets will include long-term assets and current assets, but not restricted cash controlled by other entities (such as grants, closure funds, etc.). 2. Net Assets are an indicator of a financial position. The financial position of an enterprise fund can be tracked over time to assess whether a funds financial health is improving or deteriorating. The City Manager will report annually to the City Council a comparison of the net assets for the two most recent audited fiscal years for the above enterprise funds listed in Guideline C. 3. In addition the Liquor Fund‘s annual report will be presented annually comparing the net profit as the net asset report includes both the operating agreement income and the retail income. 3. Compare, as a percentage, the General Fund Transfer to the gross revenue of each enterprise operation on an annual basis; General Fund Transfer Comparison, Item #3 Total Year Landfill Collections Liquor Retail Override 2000 13.2% 6.6% 6.1% 4.6% 7.3% 2001 14.0% 6.7% 5.9% 4.4% 7.1% 2002 29.2% 12.4% 6.5% 5.1% 7.8% Return On Assets, Item #2 Year Landfill Collections Liquor Retail 2000 10.3% 26.5% 14.8% 2001 10.7% 35.4% 14.0% 2002 8.7% 16.5% 15.6% City of Brookings October 11, 2011 24 4. Compare the enterprise operations against other similar government operated enterprises in the state of South Dakota every two years. However, a description of the uniqueness of the enterprise operations must accompany the comparisons, which may include: a. Services provided b. Service area c. Fees charged d. General Fund Transfers (if any) e. Total gross revenue generated f. Source of funding for capital expenditures (revenues, grants, second penny sales tax, general fund, loans, etc.) Redwood Brookings Marshall, MN Falls, MN Comparison of Operations ~~2002~~ ~~~2001~~~ ~~2002~~ Population 18,500 12,023 4,859 Retail Sales 2,157,279 2,777,370 1,119,481 Override Sales 2,952,863 0 0 Net Profit/Retail 119,606 436,371 80,753 Transferred/Retail 110,773 301,230 25,000 Net Profit/Override 232,580 0 0 Transferred/Override 221,547 0 0 5. Calculate earnings ratio on an annual basis; (sales of goods or services minus expenses including depreciation, but excluding the General Fund transfer; divided by sales of goods and services times 100) Earnings Ratio, Item #5 Total Year Landfill Collections Liquor Retail Override 2000 28.9% -31.8% 6.1% 4.6% 7.7% 2001 28.3% -6.0% 6.1% 4.6% 7.8% 2002 22.8% -11.9% 6.9% 5.5% 7.9% 6. Review a five year Capital Improvement Plan (CIP) on an annual basis. The CIP must list the capital outlays and source of funds, including demonstrating that needed capital reserves are maintained so that the enterprises are being operated in a stable financial manner. Each department prepares a Five-year CIP on an annual basis. City of Brookings October 11, 2011 25 City of Brookings Ends Policy 3, Business Models Establishing what is to be done, for whom, at what cost, and Executive Limitations to define unacceptable means Business Models, (Long Range Planning, Customer Satisfaction, Productivity and Process Improvement)--Key Performance Areas Operation of the City under a business model, emphasizing long range planning, customer satisfaction, and productivity and process improvement, is considered a key performance area by the Brookings City Council, and appears in the Mission Statement as ―innovative thinking and strategic planning.‖ The City Council chooses to import models and practices not only from government, but just as importantly, from innovative business models. In other words, the Council wants the City, whenever possible and prudent, to operate with similar systems and attitudes adopted by any successful business. Some of the major themes the Council chooses to emphasize are: 1. Benchmarking. The Council wants to constantly compare City performance with other cities and other departments; to be sure Brookings is operating in not only an efficient, but creative and innovative manner. The Council is aware that Brookings is unique—at times, the City‘s emphasis and direction will, and should, differ considerably from other cities. However, information about best practices from other communities will always help the Council make better choices. 2. Continuous improvement. The Council expects measurements of performance to challenge the status quo, through the use of continuous improvement processes. Since the needs of our citizen customers are constantly changing, so should our practices. 3. Goal-setting. The Council expects specific goals to challenge each City Department. 4. Accountability. The Council expects the City Manager to hold City Employees to standards that demand excellence. ―Good enough‖ is not an acceptable standard. 5. Customer satisfaction. The Council expects the City to institute a form of measurement to gather and monitor customer satisfaction. City of Brookings October 11, 2011 26 City of Brookings Ends Policy 4, Economic Development Establishing what is to be done, for whom, at what cost, and Executive Limitations to define unacceptable means Mission Statement - 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. Economic Development – Key Performance Area Economic Development and expansion is considered a key performance area by the Brookings City Council, and appears in the Mission Statement as ―fostering a diverse economic base.‖ The Council understands and intends to emphasize the importance of a healthy economy in Brookings and the surrounding area. For the entire community a healthy economy is critical to a high quality of life. Because of its great importance, there are many entities involved in economic development in Brookings. As the City is a significant funding source for much of the economic development efforts in Brookings it is the Council‘s intention to spend economic development dollars in the wisest most productive manner possible. The City Council‘s desired End is to have an economy that is healthy and growing with enough economic activity to support and fund public services. Toward that end, some overall indicators, expressed as ends, have been identified: A. The property tax base is growing. B. Sales taxes are increasing. C. Retail, Commercial, and Industrial buildings are not vacant. D. There are employment opportunities. E. There are competitive wages. Having developed some overall Ends, following are more specific Ends to provide guidance to both the City Council and the City Manager. 1. City Government is prepared for economic development opportunities. a) 20 5% of the annual revenue of 75% - 2nd Penny Sales & Use Tax are reserved un- obligated 75%-2nd Penny dollars are set aside for future economic development opportunities until a $1 million dollar committed fund balance is achieved. A strategic plan will be developed to replenish the committed fund balance should it fall below the minimum committed fund balance of $1 million dollars. b) One time sales of land will be added to the committed fund balance for future land purchases for industrial and economic development. c) The City Manager is designated as the primary contact from city government for economic development inquiries. d) City government, through its City Manager, acts as a facilitator for cooperation amongst the various economic development entities. City of Brookings October 11, 2011 27 e) There is adequate land available for future Industrial and Commercial development. f) BEDC has an Action Plan with Committees in place to foster economic development, create opportunities, and react to opportunities. 2. Economic development entities are working cooperatively and collaboratively. a) A comprehensive economic development strategy exists. b) Economic development entities, the Growth Partnership Board, the BEDC, the DBI, and the Chamber meet with the city manager on a regular basis and report to the City Council on a regular basis. c) There is an excellent relationship between economic development entities and the Governor‘s Office of Economic Development. d) The BEDC is the primary host. There is a will be a planned, cooperative effort for all ―hostings‖. 3. Economic development efforts are conducted with an emphasis on the community‘s assets. a) The growth and expansion of existing Brookings industries and retail is the primary target for increased employment and economic growth. b) SDSU students and SDSU Colleges are viewed as potential partners to targeted businesses and industries. A business or industry closely related to a field of study at SDSU can profit from the use of a quasi-professional/professional work force willing to work part-time and eventually full-time, the knowledge base held within an SDSU college, and other partnerships with SDSU. c) The City will partner with the innovation campus at SDSU. 4. The land around the Swiftel Center/Ice Arena is developed to enhance and complement the existing land use in the area. 5. Tourism is bringing outside money to the community. a) Quality events and promotions occur frequently. b) There is an events coordinator and an emphasis on filling the summer months with activities. Hotel rooms are full. c) ―3rd Penny‖ tax receipts are increasing. d) Sales tax receipts are directly impacted by events. e) Facilities (Ice Arena, Swiftel Center, Sports Fields, Performing Arts Center, Wellness Center) are used at capacity. f) Promotion dollars leverage significant visitor spending. g) The community accepts a plan for the broadening of the tax base for promotional uses. 6. Tourism entities are working cooperatively and collaboratively. a) A comprehensive promotion strategy exists. b) City Government acts as a facilitator for cooperation among the various tourism entities. 7. Business Improvement District #1 ―Pillow Tax‖ is bringing outside money to the community. City of Brookings October 11, 2011 28 a) Conferences, conventions, meetings occur frequently. b) The CVB aggressively recruits and promotes activities with an emphasis on filling week days with activities and increase week day overnight stays. c) Facilities are maintained, expanded to remain competitive in the market. d) BID Tax ―Pillow Tax‖ funds leverage significant visitor spending. e) The Board of Directors appointed by the City Council annually prepares and updates plan reporting improvements for the district area for City Council approval. f) The City Council shall assign 10% of the annual revenue from the ―Pillow Tax‖ until such time a minimum of $100,000 is assigned and maintained for the specific purpose of cash flow. 8. The Research and Technology Center operates to facilitate the start-up and continued health of agricultural and research commercial based business and industry. Businesses and organizations placed in the Center are agricultural research and technology based. A specific policy guides the management of the Research and Technology Center. 9. Because the State of South Dakota provides local control of the number of liquor licenses allowed in a City, there are ample liquor licenses available for future development of amenities the traveling and visiting public desires. The City of Brookings has a policy to guide the distribution of licenses (operating agreements). 10. The cost for tourism and promotion will not exceed the sum of the ―3rd Penny‖ revenues raised annually to $300,000. 11. The cost of economic development activities fluctuate based on the need and projects proposed. 12. The City Council has considered predevelopment agreements with large retail developments. City of Brookings October 11, 2011 29 City of Brookings Ends Policy 5, Employee Training and Development Establishing what is to be done, for whom, at what cost, and Executive Limitations to define unacceptable means Employee Training and Development—Key Performance Area Employee Training and Development is considered a key performance area by the Brookings City Council, and appears in the Mission Statement as ―proactive, fiscally responsible municipal management.‖ The Council values City of Brookings employees as emissaries to the world. With this in mind, the work environment for employees shall be one in which employees are appreciated, and encouraged to grow and expand their skills. Compensation and benefit packages will promote excellence, within the safest possible working conditions. The goal of training shall be to provide tools to assist staff to exceed management and customer expectations. Deviations from the below stated guidelines must be reviewed and approved by the Council. Guideline A: Training shall equip employees with the attitudes and behaviors necessary to achieve excellence. Based on this guideline, training shall: 1. Commence immediately upon hiring, and continue throughout the career of the employee, providing specific tools for optimal performance and productivity; 2. Emphasize continuous improvement of employees and processes; 3. Enhance an employee‘s opportunity for promotion; 4. Emphasize customer service; 5. Focus on effective technological practices. Guideline B: Compensation Ranges will be objectively determined by the City Manager in accordance with this policy. Research shall compare compensation and benefits with those of other public entities with whom the City may compete for qualified employees, along with private sector organizations that have similar positions in the surrounding area. Infrequently, full market surveys may be required to evaluate and implement necessary modifications to the City‘s pay system. Full market surveys that might require the services of a consultant to evaluate the City‘s compensation levels will be completed only upon recommendation of City Manager and approval by the Council. The organizations to be included in the market research for non-exempt positions will consist of other public sector entities primarily in South Dakota, as well as private sector organizations in the local region, as appropriate, that have similar positions. For management and professional positions, the market will include many of the organizations previously identified, plus similarly sized cities in surrounding states that the city would compete with for applicants City of Brookings October 11, 2011 30 as identified by the City Manager. It is not intended that the market will include significantly larger South Dakota cities, such as Sioux Falls and Rapid City, unless the market conditions clearly suggest the need to do so. In order to ensure that there is consistency in the methodology used when determining the compensation ranges and benefits, the City Manager will follow the guidelines below: In addition to infrequent full market surveys, periodic checks of benchmark positions will be completed as directed by the City Manager to monitor and maintain the City‘s compensation program. To maintain compensation levels that are comparable to market, the City Manager will identify and select benchmark positions and organizations to survey on a timetable appropriate to upcoming budget year. Efforts will be made to survey the same or like organizations as in the previous survey unless an exception to this policy can be justified. In order to maintain the internal equity of the compensation system, the Job Factor Evaluation System adopted by the City will be used for all job classification reviews. The job evaluation is not intended to provide a specific value for a position; rather it is intended to provide an assessment of the ―relative‖ value of a position to the organization, compared to other positions. The following criteria defined in the Job Factor Evaluation will be used in evaluating the internal equity placement of City positions: 1. Scope of Supervision – Factor measures both the level of supervision required as well as the number of individuals supervised. 2. Job knowledge – Factor measures the extent and nature of knowledge required to perform the duties of the position. 3. External Contacts – Factor measure the nature and frequency of external contacts. 4. Decision Making – Factor measures the level of decision-making and independent thought required. 5. Job Complexity – Factor measures level of analytical ability required in the position and the complexity of typical situations faced. 6. Physical Working Conditions – Factor measures nature of physical working environment and frequency in which employee typically works in that environment. 7. Exposure to Hazards – Factor measures employee‘s typical exposure to health and physical dangers and frequency of such exposure. The pay grades and pay ranges will remain consistent and uniform as follows. 1. The bargaining unit will have established pay grades with ranges of 21.7% and a six percent differential between each grade. The pay grades will be determined based on position title, specific duties involved, and job factor evaluation system. 2. The management group will also have established pay ranges of 35% Pay ranges will be established by position title, specific duties involved, and job factor evaluation system. The non-union/non-management will be placed on a similar pay system with ranges of 21.7%. There is also in place for management exempt employees a pay for performance system which is administered by the City Manager based on budgeted funds to provide recognition to management staff for their additional contributions, achievements and service to the City of Brookings over the past year. City of Brookings October 11, 2011 31 3. For the police bargaining the Council will have pay grades with ranges of 21.7% with exceptions with less than 21.7% ranges to minimize overlap. A combination of the data collected on the identified benchmark positions and the job factor evaluation system will be used to place each City position at appropriate pay grades in the City of Brookings Pay Plan Schedules. By using both the market survey data and the job factor evaluation, the City will have a pay system that is within market and reflects the City of Brookings organization. The Council will not assume an obligation to automatically increase pay ranges without justification. Justification will rely on a review of the Midwest CPI and specific salary date received/obtained from sources as determined appropriate by City Manager. The purpose of this process is to develop a pay system that is fair and within market and to provide a process that is consistent and reproducible. In summary, this policy provides further definition to the following Council policy. It is the intent of the Council for compensation to: 1. Be commensurate with individual productivity within the market range; 2. Be systematic, with defined ranges, with consistent span in the pay ranges where feasible using the median of the maximum rate of pay of surveyed positions as a benchmark; 3. Be used as a reward and motivation to achieve excellence; 4. Be attractive to top candidates; 5. Be adequate to retain top performers; 6. Exceed standards only when justified by exceptional performance; 7. Emphasize the use of reward bonuses over pay increases. 8. Be structured, when appropriate, to allow staff attrition to maintain market rates. City of Brookings October 11, 2011 32 City of Brookings Ends Policy 6, Intergovernmental Cooperation and Relations Establishing what is to be done, for whom, at what cost, and Executive Limitations to define unacceptable means Intergovernmental Cooperation and Relations—Key Performance Area Intergovernmental Cooperation and Relations is considered a key performance area by the Brookings City Council, and appears in the Mission Statement as ―providing a high quality of life for citizens…through innovative thinking and strategic planning.‖ The Council wishes to coordinate efforts with other governmental bodies, to mutual benefit, whenever possible. The Council hopes to continue to work closely with any governmental body seeking to serve the best interests of the Citizens of Brookings in a more integrated manner. Staff must remember their importance in establishing and maintaining rapport with scores of governmental agencies and groups. At times, one staff person is the only representative of Brookings to encounter a given government official and regardless of the size or length of the interaction, the Council hopes staff conducts themselves in a manner that would be the pride of Brookings. Though too numerous to mention every governmental body, examples of governmental bodies that the Council wishes to coordinate efforts with include (not in order of importance): Federal, State, County, University, School District, Cities with home rule, other Cities, and Municipal League. City of Brookings October 11, 2011 33 Amendments May 13, 2002 – City Council approved the City Council Code of Ethics as Attachment A and the Volunteer Code of Ethics as Attachment B November 27, 2002 – Amended Ends Policy 2, Municipal Services, to add Guideline C for enterprise funds May 27, 2003 – Amended Economic Development Policy January 11, 2005 – Amended Financial Stability Ends Policy May 8, 2007 – Amended Policy 1, Governance Process; Policy 2, Council-Staff Linkage; Ends Policy 1, Financial Stability; Ends Policy 2, Municipal Services; Ends Policy 4, Economic Development; Ends Policy 5, Employee Development and Training. April 29, 2008 – Amended Ends Policy 1, Financial Stability, adding Guideline H: Appropriation and Subsidy Policy & Guidelines City of Brookings October 11, 2011 34 City of Brookings Governance and Ends Policies - Appendix A City Council Code of Ethics Approved May 13, 2002 The mayor and council are responsible for making policy decisions for the community. The City Council provides vision, direction and leadership to the community and the organization. The City Council further represents the Brookings Community with other governmental entities and officials. In order to maintain and enhance public trust and confidence in our local government, to achieve equity and social justice, to affirm human dignity, and to better the quality of life for residents of Brookings the members of the City Council dedicate themselves to the stewardship of the public trust and therefore embrace the following ideals, seeking to:  Uphold constitutional government and the laws of the city of Brookings;  Conduct public and private life as to be an example for my fellow citizens;  Be mindful of my neutrality and impartiality, rendering equal service to all and to extend the same treatment I wish to receive myself;  Abstain from voting when a conflict of interest exists in accordance with the Brookings City Charter, Section 7.01 (a) Conflicts of Interest provision;  Be tolerant, respectful and attentive. Avoid comments, body language or distracting activity that conveys a message of disrespect for the presentations from citizens, staff or colleagues;  Maintain and respect the confidentiality of private and confidential information;  Attend all regular and special meetings, including briefings, and public functions where my presence is expected;  Be prepared by reading all documents pertaining to an issue in advance of the above mentioned meetings or event;  Be an active and attentive participant;  Be professional in both appearance and manner; and  Read, comprehend and comply with local, state, and national governmental guidance, directives, regulations and ordinances pertaining to my position. It is the policy of the City of Brookings to uphold, promote, and demand the highest standards of ethics from all its Council members. Brookings Council members shall maintain the utmost standards of personal integrity, truthfulness, honesty, and fairness in carrying out their public duties, avoid any improprieties in their roles as public servants including the appearance of impropriety, and never use their city position or powers for improper personal gain. The code of ethical behavior will govern members of the City Council. City Council members are encouraged self-monitor their behavior and offer constructive recommendations to fellow Council members if necessary. As a member of the City Council, I accept these ideals and policy, and pledge to do in the interest and purposes for which our government has been established. Date Signature City of Brookings October 11, 2011 35 City of Brookings Governance and Ends Policies - Appendix B City of Brookings Volunteer Code of Ethics Approved May 13, 2002 Volunteer advisory boards, committees and commissions provide a very important service to the City of Brookings. Members of volunteer boards, committees and commissions are often the first and only contact an individual might have with city government. In order to maintain and enhance public trust and confidence in our local government, to achieve equity and social justice, to affirm human dignity, and to better the quality of life for residents of Brookings the members of volunteer boards and committees dedicate themselves to the stewardship of the public trust and therefore embrace the following ideals, seeking to:  Uphold constitutional government and the laws of the city of Brookings;  Conduct public and private life as to be an example for my fellow citizens;  Abstain from voting when a conflict of interest exists in accordance with the Brookings City Charter, Section 7.01 (a) Conflicts of Interest provision;  Be mindful of my neutrality and impartiality, rendering equal service to all and to extend the same treatment I wish to receive myself;  Be tolerant, respectful and attentive. Avoid comments, body language or distracting activity that conveys a message of disrespect for the presentations from citizens, staff or colleagues;  Maintain and respect the confidentiality of private and confidential information;  Attend all regular and special meetings, including briefings, subcommittee meetings and public functions where my presence is expected;  Be prepared by reading all documents pertaining to an issue in advance of the above mentioned meetings or event;  Be an active and attentive participant;  Be professional in both appearance and manner; and  Read, comprehend and comply with local, state, and national governmental guidance, directives, regulations and ordinances pertaining to my position. It is the policy of the City of Brookings to uphold, promote, and demand the highest standards of ethics from all its appointed officials. Brookings City officials shall maintain the utmost standards of personal integrity, truthfulness, honesty, and fairness in carrying out their public duties, avoid any improprieties in their roles as public servants including the appearance of impropriety, and never use their city position or powers for improper personal gain. The code of ethical behavior will govern members of all City of Brookings boards, committees and commissions. Volunteers are responsible to self-monitor their behavior. Concerns regarding a volunteer‘s behavior should be reported to the City Manager. Deviation from this Code of Ethics may result in removal from the Board. As an appointed official, I accept these ideals and policy, and pledge to act in the interest and purposes for which our government has been established. Date Signature City of Brookings October 11, 2011 36 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 October 11, 2011 37 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 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 October 11, 2011 38 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 October 11, 2011 39 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. Review of Council Agenda, Invites and Obligations. Date Day Event & Brief Description Time Location / Town / Address / Directions October 14 Friday City of Brookings Employee Recognition Event 6:00 p.m. Swiftel Center October 15 Saturday Pre-Game Reception Hall of Fame / Senior Day 12:00 - 1:30 p.m. President‘s Tent October 19 Wednesday Delta Chi Dinner 6:00 p.m. Delta Chi House (Highway 14 Bypass) October 22 Saturday Pre-Game Reception Dakota Marker Day 12:00 - 1:30 p.m. President‘s Tent October 25 Tuesday Council Meeting 5:00 p.m. Council Chambers November 5 Saturday Hobo Day Parade 8:30 a.m. staging 9:30 a.m. parade TBD 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 January 10 Tuesday Council Meeting 5:00 p.m. Council Chambers January 18 Wednesday Brookings Day in Pierre Pierre January 24 Tuesday Council Meeting 5:00 p.m. Council Chambers February 7 Tuesday Rib Dinner with your Legislator Kings Inn, Pierre February 8 Wednesday Municipal Government Day Pierre February 14 Tuesday Council Meeting 5:00 p.m. Council Chambers February 28 Tuesday Council Meeting 5:00 p.m. Council Chambers City of Brookings October 11, 2011 40 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 to cancel the November 8th City Council meeting. D. Action on an I-1R Site Plan for Lot 1, Block 1, Foster Addition (1200 Block of 32nd Avenue). Motion to Approve, Request Public Comment, Roll Call 5. Items removed from Consent Agenda. Open Forum/Presentations/Reports 6. Open Forum. 7. SDSU Student Senate Report. Second Readings / Public Hearings 8. Ordinance No. 17-11: Pawnbrokers - An Ordinance Amending Article IV. of Chapter 26 of the Code of Ordinances of the City of Brookings and pertaining to regulation of Pawnbrokers in the City of Brookings, South Dakota. Action: Motion to approve, Request Public Comment, Roll Call 9. Public hearing and action on Resolution No. 116-11, a Resolution to annex Lots C and D, Christie Addition in the NW ¼ of Section 2-T109N-R50W; and Outlot C in the NW ¼ of the NW ¼ of Section 2-T109N-R50W. Action: Open and close public hearing, Motion to approve, Roll Call Other Business 10. Discussion and action to approve cost share with the South Dakota Department of Transportation for storm sewer on 6th Street between Highway 14 Diagonal and Main Avenue. Action: Motion to approve, Request Public Comment, Roll Call 11. Adjourn. City of Brookings October 11, 2011 41 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 to cancel the November 8th City Council Meeting. D. Action on an I-1R Site Plan for Lot 1, Block 1, Foster Addition (1200 Block on 32nd Avenue). *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 October 11, 2011 42 CONSENT AGENDA #4 B. Action to approve City Council Minutes. The draft August 19th and September 27th Brookings City Council minutes are enclosed for Council review and approval. City of Brookings October 11, 2011 43 Brookings City Council August 19, 2011 (unapproved) The Brookings City Council held a special meeting on Friday, August 19, 2011 at 8:00 a.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 Attorney Steve Britzman, City Manager Jeff Weldon and City Clerk Shari Thornes were also present. Resolution No. 109-11. A motion was made by Kubal, seconded by Corbett, to approve Resolution No. 109-11, a Resolution authorizing the City Manager to enter into a Lease Agreement with the Government of the United States of America. No public comment. All present voted yes; motion carried. Resolution No. 109-11 - Resolution Authorizing City Manager to enter into a Lease Agreement with the Government of the United States of America Be It Resolved by the governing body of the City of Brookings, South Dakota that the City of Brookings authorizes the City Manager to negotiate and enter into a Lease with the Government of the United States of America, for a period of two months and automatically renewable on a month-to-month basis thereafter and pertaining to the following described property: Research & Technology Center, 803-811 32nd Avenue. Adjourn. A motion was made by Reed, seconded by Kubal, to adjourn. All present voted yes; motion carried. Meeting adjourned at 8:08 a.m. CITY OF BROOKINGS ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk City of Brookings October 11, 2011 44 Brookings City Council September 27, 2011 (unapproved) The Brookings City Council held a meeting on Tuesday, September 27, 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 (left at 6:00 p.m. and returned at 6:30 p.m.) and Keith Corbett. City Attorney Steve Britzman, City Manager Jeff Weldon and City Clerk Shari Thornes were also present. Consul General of Mexico for South Dakota. Ana Luisa Fajur, Consul General of Mexico for South Dakota, gave a brief presentation about her role as the representative of the government of Mexico in North and South Dakota, Minnesota, and northern Wisconsin. Brookings Municipal Liquor Store. The City Council discussed the continued operation of the Municipal Liquor Store. McClemans presented options previously considered before the Liquor Store moved to its current location. Other topics/issues discussed included the following: Are there reasons to do something different; consideration of additional locations; review of current location lease terms; and ways to improve the override. There was consensus to hold a special two-hour retreat on the BMLS issue only. Meeting to be held in the City Council chambers on an ―off‖ Tuesday commencing at 5:00 p.m. The following background information was requested: public input options--satisfaction survey options (website); estimated replacement costs for land and building; standard industry margins; consultant reports and labor costs. Future Discussion Topics. McClemans distributed correspondence pertaining to governance. A motion was made by McClemans, seconded by Corbett, to schedule at a future work session, a review of points provided by Larry Fjeldos regarding staff and volunteer board involvement related to governance. McClemans, Thorpe, Niemeyer and Corbett voted yes; Reed, Bezdichek and Kubal voted no; motion carried. Thorpe left meeting at 6:00 p.m. REGULAR MEETING. Consent Agenda. A motion was made by Kubal, seconded by Corbett, to approve the consent agenda: A. Action to approve the agenda. B. Action to approve the August 3rd and September 13th Council minutes. C. Action on Resolution No. 115-11, setting the Unit Financial Charge for 2012 Storm Drainage Fees. Resolution No. 115-11 - Setting the Unit Financial Charge for 2012 Storm Drainage Fees Whereas, Chapter 72, Section 72-1 (b), of Code of Ordinances for the City of Brookings, provides for setting the unit financial charge of Storm Drainage, by Resolution. Now, Therefore, Be It Resolved that the unit financial charge shall be .00054 for Storm Drainage purposes. D. Action to abate the drainage fee for Medary Lutheran Synod Church Cemetery. City of Brookings October 11, 2011 45 E. Action on the following volunteer board appointments: Human Rights Committee: Rebecca Deinart (term expires 1/1/2013); Brookings Committee for People who have Disabilities: Geoffrey Graff (term expires 1/1/2012); Park & Recreation Board SDSU Student Representative: Brittany Kleinsasser (term expires 5/1/2012). . On the motion, all present voted yes; motion carried. Resolution No. 118. A motion was made by McClemans, seconded by Bezdichek, to approve Resolution No. 118-11, a Resolution authorizing change orders for the Joint City/County Government Center. All present voted yes; motion carried. Resolution No. 118-11 - A Resolution Authorizing Change Orders for the Joint City-County Government Center Whereas, Brookings City and County have jointly agreed to construct and operate an intergovernmental center, and Whereas, the City Council of the City of Brookings and the County Board of Commissioners of Brookings County have mutually executed construction contracts, and Whereas, the Joint Powers Board has recommended the approval of 3 change orders to-date constituting an aggregate increase in the project of $17,514; and that the County Board has forthwith approved such change orders: 1) Extension of electrical service for a future remote backup generator, American Electric Construction, $6,017; 2) Waste piping modification for the cooling tower, Krier and Blain, Inc., $5,892; 3) Bullet-resistant fiberglass panels, Clark Drew Construction, $5,605. Be It Resolved by the City Council that the change orders itemized and herewith described on the attached Modification Log be allowed for the Joint City-County Government Center. Resolution No. 117-11. A motion was made by Niemeyer, seconded by Kubal, to approve Resolution No. 117-11, a Resolution authorizing Change Order No. 1, Final (CCO#1 Final) for 2010-05 SSI Southland Lane Detention Pond Project. All present voted yes; motion carried. Resolution No. 117–11 - Resolution Authorizing Change Order No. 1 (CCO#1 Final) for 2010-05SSI Southland Lane Detention Pond Project, Rounds Construction, Inc. Be It Resolved by the City Council that the following change order be allowed for 2010-05SSI Southland Lane Detention Pond Project: Construction Change Order Number 1: Adjust the contract quantities to final as-built quantities for a decrease of $3,118.93 to the contract. Ordinance No. 17-11. A first reading was held on Ordinance No. 17-11: Pawnbrokers - An Ordinance Amending Article IV. of Chapter 26 of the Code of Ordinances of the City of Brookings and pertaining to regulation of Pawnbrokers in the City of Brookings, South Dakota. Public Hearing: October 11, 2011. City of Brookings October 11, 2011 46 Ordinance No. 16-11. A motion was made by Kubal, seconded by Corbett, to approve Ordinance No. 16-11, the 2012 Budget Ordinance, an Ordinance appropriating Monies to Fund the necessary expenditures and liabilities of the City of Brookings for the 2012 Fiscal year and providing for the Annual Tax Levy and Annual Tax for all Funds. All present voted yes; motion carried. TABLED ITEM: Video Lottery Application. A motion was made by Kubal, seconded by McClemans, to remove from the table the following June 14th motion: ―A motion was made by Thorpe, seconded by Bezdichek, to reconsider the video lottery action for Gas ‗N Mor.‖ On the motion to reconsider May 24th approval. All present voted yes to remove reconsideration motion from the table. A motion was made by McClemans, seconded by Kubal, to approve a Video Lottery application for Gas ‗N Mor, 606 6th St., Brookings Developers, Inc., Lots 5-7, Block 11, Second Addition. Public Hearing: Jeromy Pankratz, attorney representing Lyle Prussman, spoke in favor of the request, requested church representatives on the Council to abstain, noted this was the last license available under the current ordinance, and reviewed state statutes pertaining to criteria when issuing malt licenses and video lottery (location, proximity to other license holders, type of business and manner of operation, minors, safety). Thorpe returned at 6:30 p.m. Sherry Fuller Bordywk, Jeannette Bare and Beth Wilcock spoke against the proposal citing proximity to minors and safety concerns. On the motion, Bezdichek, Kubal and McClemans voted yes; Corbett, Niemeyer, Reed and Thorpe voted no; motion failed. Bike Lane Proposal. SDSU Student Association representatives presented a revised bike lane proposal for council consideration. They recommended the following: removal of parking and the subsequent striping of bike lanes on 1) 8th Street North from 16th Avenue to 20th Avenue, continuing South on 20th Avenue to 6th Street, 2) 8th Street North from 7th Avenue to Western Avenue and 3) 11th Street North from Medary Avenue to 3rd Avenue. Public Comments: Rob Rasmussen spoke in favor. Jody Owen, Mark Penner and Todd Struwe spoke against. A motion was made by Reed, seconded by Corbett, to remove parking from Medary Avenue to Main Avenue on 8th Street with Sunday exceptions near church at staff discretion; on 11th Street from Medary Avenue to 3rd Avenue; on 8th Street (north side) from 16th Avenue to 20th Avenue; on 20th Avenue from 6th Street to 8th Street; and bagging for some events at staff discretion. All present voted yes; motion carried. Resolution No. 119-11. A motion was made by Corbett, seconded by Kubal, to approve Resolution No. 119-11, a Resolution authorizing State Water Plan Application and related Grant/Loan Applications, Nelson 5th Detention Pond Project. All present voted yes; motion carried. Resolution No. 119-11 - Resolution Authorizing State Water Plan Application and related Grant/Loan Applications (Nelson 5th Addition Detention Pond Project) City of Brookings October 11, 2011 47 Submittal of Applications for Infrastructure Financing Whereas, the City of Brookings has determined a need for a drainage improvement project in the Nelson 5th Addition; and Whereas, financial assistance will be necessary to enable the City to construct this project; and Whereas, the South Dakota Department of Environment and Natural Resources provides grants and low-interest loans to eligible applicants for financing water, wastewater, and storm water infrastructure projects. Now, Therefore Be It Resolved: 1) The City of Brookings hereby authorizes the filing of a State Water Plan and grant and/or loan applications with the South Dakota Department of Environment and Natural Resources, including all understandings and assurances contained therein, to fund its drainage improvement project. 2) Be it further resolved, that the City of Brookings hereby authorizes the City Manager to act as Project Certifying Officer in connection with the applications, grant and/or loan agreements, and other required forms, and to provide such additional information as may be required by the South Dakota Department of Environment and Natural Resources. Resolution No. 120-11. A motion was made by Niemeyer, seconded by Kubal, to approve Resolution No. 120-11, a Resolution authorizing State Water Plan Application and related Grant/Loan Applications, Camelot Square Drainage Improvement Project (aka Hammond Ave. & Horner Ave. Project). All present voted yes; motion carried. Resolution No. 120-11 - Resolution Authorizing State Water Plan Application and related Grant/Loan Applications, Camelot Square Drainage Improvement Project (Hammond Avenue & Horner Avenue) Submittal of Applications for Infrastructure Financing Whereas, the City of Brookings has determined a need for a drainage improvement project in the Camelot Square Addition; and Whereas, financial assistance will be necessary to enable the City to construct this project; and Whereas, the South Dakota Department of Environment and Natural Resources provides grants and low-interest loans to eligible applicants for financing water, wastewater, and storm water infrastructure projects. Now, Therefore Be It Resolved: 1) The City of Brookings hereby authorizes the filing of a State Water Plan and grant and/or loan applications with the South Dakota Department of Environment and Natural Resources, including all understandings and assurances contained therein, to fund its drainage improvement project. 2) Be it further resolved, that the City of Brookings hereby authorizes the City Manager to act as Project Certifying Officer in connection with the spplications, grant and/or loan agreements, and other required forms, and to provide such additional information as may be required by the South Dakota Department of Environment and Natural Resources. City of Brookings October 11, 2011 48 Drainage Project Number Four. Shannon Schultz, Civil Design Inc., presented recommendations to improve the storm water sewer system in Storm Water Project No. 4, which is in the area of Hammond and Horner Avenues in the Fairgrounds Addition and Squire Court in the Camelot Square Addition. They began their analysis in the fall of 2010 after repeated flooding in this area. They also analyzed the drainage basin of Parkway Boulevard, which contributes a significant amount of storm water flows to the study area. Civil Design Inc. staff and City Engineer Jackie Lanning met throughout the summer with a number of property owners along the areas where storm sewer pipe would require easements and reconstruction on private properties. Lanning updated the Council on the adjacent downstream project, which is a detention pond located in Nelson 5th Addition on the east side of Medary Avenue between 15th Street South and 20th Street South. No action was taken. BraVo‘s Liquor Operating Agreement. Thorpe recused herself from the dias. The City Council reviewed the status and terms of the liquor operating agreement for BraVo‘s, 610 Medary Avenue, Kip and Michelle Pharis, owners. The owners are requesting removal of the temporary status on the BraVo‘s Agreement and without further investment cost. City Attorney Britzman provided the Council with the following options: 1) Terminate the temporary operating and enter into an operating agreement of whatever duration up to the five year with five year renewal; 2) Issue an operating agreement for a shorter duration, or 3) Terminate the operating agreement and issue a restaurant license. It was clarified the current agreement expires Friday, September 29, 2011. He noted that scheduling action for a future council meeting would be appropriate. A motion was made by Reed, seconded by Bezdichek, to extend the current operating agreement for thirty (30) days. On the motion, all present voted yes; motion carried. Thorpe returned to the dias. Capital Improvement Plan. A motion was made by Kubal, seconded by Bezdichek, to approve the Five Year Capital Improvement Plan for the City of Brookings. 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 8:58 p.m. CITY OF BROOKINGS ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk City of Brookings October 11, 2011 49 CONSENT AGENDA #4 C. Action to cancel the November 8th City Council Meeting. The City Council meeting originally scheduled for November 8th is being cancelled due to the National League of Cities Conference. State law requires official Council action to schedule or cancel a meeting. City of Brookings October 11, 2011 50 CONSENT AGENDA #4 D. Action on an I-1R Site Plan for Lot 1, Block 1, Foster Addition (1200 Block of 32nd Avenue). Applicant: GHP Systems, Inc. Proposal: Establish a manufacturing operation in a restricted industrial district Background: This property was recently annexed, zoned, and platted. It is located between 32nd Avenue on the east and I-29 on the west. The land was previously used for agricultural purposes except for an old shelterbelt along the south side. Specifics: The site contains 12 acres. A 36,000 square foot manufacturing facility with an attached office and separate cold storage and maintenance shop would be constructed initially. A future expansion of the manufacturing facility is also shown on the plan. The building design will be a metal sided and roofed Foltz building. Access drives and parking are centered between the buildings. Two (2) accesses are planned in order to separate truck traffic from employee traffic. A storage yard is planned for the west side of the lot. The site will have perimeter tree plantings. Recommendation: The Planning Commission voted 7 yes and 0 no to recommend approval of the I-1R Site Plan. City of Brookings October 11, 2011 55 Planning Commission meeting October 4, 2011 OFFICIAL MINUTES Hearing and action on an I-1R Site Plan for Lot 1, Block 1, Foster Addition Item 10 – (Bailey/Dekraai) Motion to approve the I-1R Site Plan. All present voted aye. Motion Carried. SUMMARY OF DISCUSSION Chris Jeppesen, representing GHP Systems, Inc., stated that the company had outgrown its current site and needed more room. The proposed site plan included a manufacturing facility, office, cold storage and maintenance building. A future expansion of the manufacturing facility was also shown on the plan. Two driveways provided access to a hard-surfaced parking area and storage yard. A landscape plan was also depicted on the site. Heuton inquired about the loading docks. Jeppesen replied the maintenance shop would have a dock on the north side. Heuton asked about the landscape plan. Jeppesen responded that in addition to the existing shelterbelt along the south side, perimeter tree plantings would occur on the west and north sides of the lot. City of Brookings October 11, 2011 56 5. Items removed from Consent Agenda. Matters appearing on the Consent Agenda are expected to be non-controversial and will be acted upon by the Council at one time, without discussion, unless a member of the Council or City Manager requests an opportunity to address any given item. Items removed from the Consent Agenda will be discussed at the beginning of the formal items. Approval by the Council of the Consent Agenda items means that the recommendation of the City Manager is approved along with the terms and conditions described in the agenda supporting documentation. City of Brookings October 11, 2011 57 Open Forum 6. Invitation for a Citizen to schedule time on the Council Agenda for an issue not listed. At this time, any member of the public may request time on the agenda for an item not listed. Items are typically scheduled for the end of the meeting; however, very brief announcements or invitations will be allowed at this time. 7. SDSU Student Senate Report. President – 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 October 11, 2011 58 Second Readings / Public Hearings 8. Ordinance No. 17-11: Pawnbrokers - An Ordinance Amending Article IV. of Chapter 26 of the Code of Ordinances of the City of Brookings and pertaining to regulation of Pawnbrokers in the City of Brookings, South Dakota. Proposed Ordinance No. 17-11 was initiated by the Brookings Police Department. It revises the holding period for pawned articles in order that owners of pawned articles may redeem them sooner than the 40 day holding requirement. Pawn brokers would still be required to maintain the articles for 30 days for open sale to the public. The revision will repeal the mandatory holding period by the city of Brookings. Ordinance No. 17-11 - An Ordinance amending Article IV. of Chapter 26 of the Code of Ordinances of the City of Brookings and pertaining to regulation of Pawnbrokers 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. Section 26-155 of Article IV of Chapter 26 of the Code of Ordinances of the City of Brookings and pertaining to the holding period for pawned articles is hereby repealed. II. All ordinances in conflict herewith are hereby repealed. First Reading September 27, 2011 Second Reading & Adoption October 11, 2011 Published City of Brookings, SD ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings October 11, 2011 59 Second Readings / Public Hearings 9. Public hearing and action on Resolution No. 116-11, a Resolution to annex Lots C and D, Christie Addition in the NW ¼ of Section 2-T109N-R50W; and Outlot C in the NW ¼ of the NW ¼ of Section 2-T109N-R50W. Proposal: Annex two small, separate areas into the city Background: Several property owners were asked earlier this year to voluntarily annex their land into the city. These particular properties were surrounded by the city limits. The property owners declined to do so, and subsequently, a detailed study was undertaken as provided for in SDCL 9-4- 4.1 to determine the need to annex additional, contiguous land. Based upon that study, a Resolution of Intent to Extend Boundaries was adopted by the City Council on August 23 rd, 2011. Specifics: This is the final step in the annexation process. Attached is the annexation study referred to above, the adopted Resolution o f Intent to Extend Boundaries, the annexation map depicting the areas to be annexed, and the Annexation Resolution. City Manager Introduction Action: Open & Close Public Hearing, Motion to Approve, Roll Call City of Brookings October 11, 2011 60 Resolution No. 116-11 Resolution of Annexation Whereas, the governing body of the City of Brookings has, pursuant to SDCL 9-4-4.1, conducted a study to determine the need to identify the resources necessary to extend the municipal boundaries to include Lots C and D, Christie Addition in the NW ¼ of Section 2- T109N-R50W and Outlot C in the NW ¼ of the NW ¼ of Section 2-T109N-R50W all in the County of Brookings, State of South Dakota, and Whereas, the governing body thereafter adopted a Resolution of Intent to Extend Boundaries and conducted a public hearing thereon as required by law, and Whereas, the study contained the following, to wit: 1. That the description of the property to be annexed is Lots C and D, Christie Addition in the NW ¼ of Section 2-T109N-R50W and Outlot C in the NW ¼ of the NW ¼ of Section 2-T109N-R50W all in the County of Brookings, State of South Dakota 2. That ample and suitable resources exist to accommodate the orderly development of the contiguous territory 3. That municipal utilities such as water, sewer, electricity, telephone, and garbage collection are existing or readily available and a major street network is already in place and dedicated for public use and that there is a definite timetable upon which other municipal services such as police protection and garbage collection will be extended into the contiguous territory 4. That the approximate cost of extending services to residents of the contiguous territory will be $0.00 for telephone and electricity; $16.50 per month for garbage collection; $40.00/foot for main sanitary sewer lines; $1500.00 for a sanitary sewer service line; $15.00/foot for a water service line; $80.00/foot/per side for street improvement; $176.00/acre for annual drainage fees for single-family residential uses and $67.00/acre for annual drainage fees for a vacant lot. 5. That the estimated difference in the tax assessment rate is an increase of $1.75/1,000 of valuation 6. That exclusions and irregularities in boundary lines are not the result of arbitrariness 7. That there is a reasonable present need to annex the contiguous territory because the majority of the land is already developed and is receiving certain municipal services. 8. That the city has experienced a recent growth rate of 19% between the 2000 and 2010 Census and will continue to develop beyond its present boundaries, and City of Brookings October 11, 2011 61 Whereas, it is determined to be necessary and in the best interests of the City of Brookings to annex the hereinbefore described property, now therefore, Be It Resolved by the governing body of the City of Brookings that the following described property be, and the same is hereby annexed, to the City of Brookings, to wit: Lots C and D, Christie Addition in the NW ¼ of Section 2-T109N-R50W and Outlot C in the NW ¼ of the NW ¼ of Section 2-T109N-R50W all in the County of Brookings, State of South Dakota Be it Further Resolved that the boundaries of the City of Brookings shall be adjusted accordingly. Passed and approved this 11th day of October, 2011. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings October 11, 2011 64 NOTICE OF HEARING UPON A RESOLUTION OF ANNEXATION NOTICE IS HEREBY GIVEN That the City Council will hold a public hearing to consider the adoption of a Resolution of Annexation to annex the following described real estate situated in Brookings County, South Dakota, to wit: Lots C and D, Christie Addition in the NW ¼ of Section 2-T109N-R50W; and Outlot C in the NW ¼ of the NW ¼ of Section 2-T109N-R50W NOTICE IS FURTHER GIVEN That said request will be acted on by the City Council at 6:00 PM on Tuesday, October 11, 2011 in the Council Chamber in the lower level of City Hall, Brookings, South Dakota. Any person interested may appear and be heard in this matter. ____________________________ Dan Hanson Planning & Zoning Administrator City of Brookings October 11, 2011 65 ANNEXATION STUDY (NW ¼ of Section 2-T109N-R50W) The City of Brookings continues to grow in physical size and population. Therefore, an annexation plan is essential for the managed growth of Brookings. The Vision 2020 Comprehensive Plan has identified future growth areas in Brookings County as logical extensions of the city‘s boundaries. Timely and well-planned annexations will achieve efficient and orderly growth of the urban area and tax equity among all urban residents. Based on the analysis presented in this study, the areas shown on Map 1 are recommended for annexation into the City of Brookings. The legal descriptions are as follows:  Lots C and D, Christie Addition in the NW¼ of Section 2-T109N-R50W  Outlot C in the NW¼ of the NW¼ of Section 2-T109N-R50W The Vision 2020 Comprehensive Plan identifies urban growth area boundary projections based on the future extension of urban services. In particular, the Future Land Use Map indicates the area described above as a future residential neighborhood. Over the last several years, significant development and land use changes have occurred in the southwest area of Brookings. Two (2) residential subdivisions have been created, and dozens of new homes have been built. A large mixed-use development has recently been approved, and the first residential phase will begin this fall. Lastly, several landowners in this area have petitioned to annex within the last five (5) years due to their desire for municipal services. The annexation of fringe developments will cause short term adjustment for residents and property owners of this area. Increased taxes and costs associated with street and utility improvements are a significant concern to existing residents. However, annexation will provide superior benefits to all residents of Brookings as follows: A. Equitable sharing of the local tax burden People residing just outside of a city often enjoy municipal services without providing tax monies to support their cost. Parks, bike trails, the library, and street improvements are examples of this. Annexation would require all to pay their fair share. B. Efficient provision of municipal services History has shown that as fringe development continues, residents in these areas demand more urban services such as police and fire protection, street improvements, parks, and municipal water and sewer systems. With appropriate annexations, a city can provide services to an entire area more economically and efficiently through economies of scale. C. Orderly growth and development Timely annexations of fringe areas enhance orderly and planned growth. The extension of streets and utilities to new growth areas can be obstructed by unincorporated land areas. Urban sprawl is also common in areas that are not provided with municipal City of Brookings October 11, 2011 66 utilities and services. The annexation of existing urban type developments and agricultural land located in future urban growth areas will benefit the long-range development goals of the City of Brookings. Study Area The proposed annexation areas are located in Medary Township. One area is bounded by 20th Street South on the north, and the other area is bounded by 20th Street South on the north and Western Avenue South on the west. The total area involved is 3.4 acres Land Use Land in the proposed annexation area is located in the A Agricultural District which is a district in the Zoning Ordinance of the Joint Jurisdiction Area surrounding the City of Brookings but is used primarily for residential purposes. One parcel is used as a rental storage unit. Changes in the land use classification of these parcels would likely occur in the future. The residential uses are currently legal non-standard uses. Population and Housing Three (3) families reside in the proposed annexation area. Two (2) lots are uninhabited. The surrounding area consists of mature neighborhoods, newly created subdivisions, and agricultural land. The majority of housing is single-family homes. Urban Services Streets The residents are served by 20th Street South and Western Avenue South. Twentieth Street South is an asphalt rural section road, and Western Avenue South is a gravel rural section road. The City has adopted Resolutions 88-11 and 89-11 which transfers jurisdictional control of 20th Street South from Main Avenue to Rio Grande Avenue and Main Avenue from 20th Street South to 32nd Street South from Brookings County to the City of Brookings. Therefore, maintenance of these roads will be done by the City. 20th Street South is planned to be reconstructed into an urban section road in 2012. No costs from this project will be assessed to abutting property owners provided they dedicate the required right-of-way necessary to build the street to city standards. Sidewalks are required to be installed along all developed property unless modified by other applicable regulations or the City Council. Access drives from the curb to the property line must be surfaced with asphalt or concrete. Water All property owners serviced by rural water systems would be required to connect to the city water system upon annexation. Currently, municipal water service is supplied to three parcels. Sanitary Sewer All property owners and parcels using a sanitary sewer installation will be required to hook-up to the municipal sewer system. Installation/conversion timetables would follow BMU policies and procedures. City of Brookings October 11, 2011 67 Electric Service All property owners serviced by an REA shall be connected to the city electric system. Conversion timetables would follow BMU policies and procedures. Telephone The current telephone service provider for a property would be continued and any changes would be a voluntary decision by the property owner/customer. Garbage Collection All residential uses shall be serviced by the municipal garbage collection department. One property owner already receives this service. Safety and Security All property owners will be served by the Brookings Police Department Fire Protection Fire protection will continue to be provided by the Brookings Fire Department. Drainage The city has adopted a master drainage plan to manage stormwater runoff. All property is assessed a drainage fee based on lot area, a runoff weighting factor based on the type of land use, and a unit financial charge (cost/square foot). City of Brookings October 11, 2011 68 Other Business 10. Discussion and action to approve cost share with the South Dakota Department of Transportation for storm sewer on 6th Street between Highway 14 Diagonal and Main Avenue. The South Dakota Department of Transportation (SDDOT) has been designing the 6th Street Reconstruction Project between Highway 14 Diagonal and Main Avenue, and this project is scheduled for construction in 2013. City staff has been involved in a number of design meetings with SDDOT to coordinate issues with the project. One critical issue right now is the replacement of the storm sewer. Storm Sewer Analysis: 6th Street west of Main Avenue currently has two large trunk line storm sewer pipes which discharge into a ditch west of Western Avenue near the Brookings Municipal Utility office and ultimately into Six Mile Creek. The watershed that contributes storm water to this portion of 6th Street is at least 500 acres in size and is mostly impervious. The watershed extends east to 17th Avenue, south past the railroad tracks, and northeast to the SDSU Campus. The original Drainage Master Plan showed the existing storm sewer in 6th Street is grossly inadequate for the 5-year storm and identified several capital improvements, known as Area 5 and 6 in the plan. Banner Associates performed a more detailed analysis of the storm sewer on 6th Street to confirm this issue, as well as determine what size piping would be required to handle the runoff from a 5 -year storm event without causing flooding. The existing storm sewer pipe in this portion of 6th Street consists of various sizes and segments installed at different times throughout the City‘s history; including some of the earliest segments constructed of clay tile and brick. It is believed the current capacity of the system is restricted to a 1 or 2-year storm event; thus resulting in localized flooding observed along 6th Street during minor storm events. Since the lack of capacity is at the lowest end of the watershed, it prevents the City from addressing flooding and capacity issues in the rest of the 500 acre watershed because all storm water must pass through this point. Project solution: The current City of Brookings standard is to carry a 5- year storm in a pipe or open channel conveyance system. An opportunity exists to upgrade the existing storm sewer to the 5 -year storm capacity City of Brookings October 11, 2011 69 during the 6th Street reconstruction project. Upsizing this section of storm sewer is critical because it is on the downstream discharge end of the 6th Street trunk line drainage system, with many other storm sewer lines and inlets that flow into it. It is also in conformance with the Master Drainage Plan. As a side benefit of upsizing the 6th Street storm sewer, another opportunity presents itself to temporarily connect a small portion of the Downtown watershed to the 6th Street storm sewer until the Downtown trunk line can be upgraded in the future. This has the potential to help relieve some of the flooding issues Downtown. Cost: Although the upgrades were addressed in the Drainage Master Plan, the costs have not yet been put on a CIP because it was unknown at the time the plan was published whether or not the SDDOT would reconstruct this portion of 6th Street. While we are still in the preliminary stages of design and negotiation, the SDDOT is proposing that they will pay for the replacement of the current storm sewer configuration on the 6 th Street project, and they have requested the City of Brookings to pay the upsizing cost. Specific storm sewer sizes and total costs are not known at this time. It is anticipated that the SDDOT will expect a lump sum payment to be due late 2013 or early 2014. The City will explore funding options such as using a portion of the Brookings Urban Fund balance, drainage fees, or second penny funds. At this point, the SDDOT is asking if the City of Brookings has an interest in paying a cost share for the storm sewer upgrades. Since the project is still in the preliminary stage of design, the range of cost the City could incur for the additional capacity is wide; ranging from $500,000 to $1,100,000. This motion will approve the City of Brookings interest in cost sharing for a 5-year storm sewer design for the SDDOT 6th Street Project from Highway 14 Diagonal to Main Avenue. Further cost information will be provided to the City Council as it becomes available. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings October 11, 2011 71 11. Adjourn