The URL can be used to link to this page

Home My WebLink About2011_11_22 CC PKT Brookings City Council Tuesday, November 22, 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. Overview of the Brookings Economic Development Corporation. 2. City Council Member Ex-Officio Reports. 3. Joint Powers Board members‘ Report. 4. City Council member introduction of topics for future discussion. 5. 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 on Resolution No. 131-11, a Resolution establishing Vision Insurance monthly contribution rates for the City of Brookings Vision Insurance Plan. D. Action on a Letter of Request regarding the next Railroad Safety Crossing Gate Project. E. Action to approve annual Liquor and Wine license renewals. F. Action on Resolution No. 132-11, a Resolution authorizing the City Manager to sign a midterm renewal / Liquor Operating Agreement for the Ram & O‘Hare‘s Eng. LLC/The Ram. G. Action on Resolution No. 133-11, a Resolution authorizing Change Order No. 1 for 2011-03BLD Airport Building Addition Project, Clark Drew Construction (deduct). 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. Recognition of local Governor‘s Awards Nominees. 7. Open Forum. 8. SDSU Student Senate Report. First Readings** **No vote is taken on the first reading of an Ordinance. The title of the Ordinance is read and the date for the public hearing is announced. 9. Ordinance No. 21-11: Budget Amendment #2: An Ordinance Entitled ―An Ordinance authorizing a supplemental appropriation to the 2011 Budget for the purpose of providing for additional funds for the operation of the City. Second Reading: December 13th 10. Ordinance No. 23-11: An Ordinance of the City of Brookings, South Dakota, amending Ordinance No. 22-05, Establishing the Retail Economic Development Investment Committee Fund, providing for its funding; providing for its use and providing for its Rules and Regulations. Second Reading: December 13th 11. Ordinance No. 24-11: An Ordinance rezoning the east 140 feet of Outlot 2, excluding the north 40 feet thereof, in the NE ¼ of Section 1-T109N-R50W from an Agricultural A District to a Residence R-3 District. Public Hearing: December 13th 12. Ordinance No. 25-11: An Ordinance rezoning Block 2 and Lots 1-12 of Block 3, Legeros Addition from a Residence R-2 District to a Residence R-1C District. Public Hearing: December 13th Second Readings & Public Hearings 13. Ordinance No. 18-11: An Ordinance of the City of Brookings, South Dakota, repealing Ordinance No. 22-05, Establishing the Retail Economic Development Investment Fund, providing for its funding; providing for its use and providing for its Rules and Regulations. Action: Motion to terminate 2nd reading (Ordinance No. 23-11 replaces Ordinance No. 18-11) 14. Public hearing and action on an On-Off Malt Beverage Alcohol License for Aramark Educational Services, LLC, for the McCrory Gardens Event Center at South Dakota State University, 6th Street/22nd Avenue. Action: Open and close public hearing, Motion to approve, Roll Call 15. Public hearing and action on Resolution No. 134-11, a Resolution authorizing the City Manager to sign an Operating Agreement for an On-Off Sale Wine License for Aramark Educational Services, LLC, for the McCrory Gardens Event Center at South Dakota State University, 6th Street/22nd Avenue. Action: Open and close public hearing, Motion to approve, Roll Call 16. Public hearing and action on Resolution No. 135-11, a Resolution authorizing the City Manager to sign an Operating Agreement for an On-Off Sale Wine License for Schoon‘s Pump & Pak South, Jon Schoon, Owner, 1203 Main Avenue South, Outlot 8, NE 1/4, .66 acres, Section 35-110-50. Action: Open and close public hearing, Motion to approve, Roll Call 17. Public hearing and action on Resolution No. 136-11, a Resolution authorizing the City Manager to sign an Operating Agreement for an On-Off Sale Wine License for Oly‘s Neighborhood Bar & Grill, Ken & Kristi Olson, owners, 725 Main Ave. South, Lot 1, Block 1, Outlot ‗P‘, Shelden‘s Subdivision. Action: Open and close public hearing, Motion to approve, Roll Call 18. Public hearing and action on Ordinance No. 20-11, an Ordinance for an application for Conditional Use Permit to establish a major home occupation (chiropractic office) in a Residence R-2 District on Lot 20, Block 12, East Medary Addition (1513 Orchard Drive). Action: Open and close public hearing, Motion to approve, Roll Call 19. Public hearing and action on Resolution No. 137-11, a Resolution of Intent to Lease Real Property to Private Person (LNJ Farms & Ranch). Action: Open and close public hearing, Motion to approve, Roll Call 20. Public hearing and action on Ordinance No. 19-11, an Ordinance rezoning Lot 2, Block 2, Telkamp Addition from a Residence R-3 District to a Planned Development District (PDD), (2400 Block of 10th St.). Action: Open and close public hearing, Motion to approve, Roll Call Other Business 21. Action to approve the Den-Wil Initial Development Plan. Action: Motion to approve, Request Public Comment, Roll Call 22. Action on proposed amendments to the City of Brookings Governance and Ends Policies. Action: Motion to approve, Request Public Comment, Roll Call 23. Action to name the Nature Park the ―Dakota Nature Park.‖ Action: Motion to approve, Request Public Comment, Roll Call 24. Action on Resolution No. 138-11, a Resolution approving Tax Increment Finance District Number 5 Project Plan. Action: Motion to approve, Request Public Comment, Roll Call 25. Discussion and possible action on Highway 14 turn back. Action: Motion to approve, Request Public Comment, Roll Call 26. Potential acquisition of South Dakota Department of Transportation (DOT) old maintenance shop located on Highway 14 between I-29 and 32nd Avenue. Action: Motion to approve, Request Public Comment, Roll Call 27. Adjourn. Brookings City Council Tim Reed, Mayor Jael Thorpe, Deputy Mayor & Council Member Council Members Tom Bezdichek, John Kubal, Mike McClemans, Keith Corbett, Ope Niemeyer Council Staff: Jeffrey W. Weldon, City Manager Steven Britzman, City Attorney Shari Thornes, City Clerk View the City Council Meeting Live on the City Government Access Channel 9. Rebroadcast Schedule: Wednesday 1:00pm / Thursday 7:00pm / Friday 9:00pm / Saturday 1:00pm The complete City Council agenda packet is available on the city website: www.cityofbrookings.org If you require assistance, alternative formats, and/or accessible locations consistent with the Americans with Disabilities Act, please contact Shari Thornes, City ADA Coordinator, at 692-6281 at least 3 working days prior to the meeting. City of Brookings November 22, 2011 5 5:00 P.M. WORK SESSION Work Sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 1. Overview of the Brookings Economic Development Corporation. Per previous City Council direction, Al Heuton, BEDC Executive Director, will update the Council and public on the Brookings Economic Development Corporation‘s 2011 work program. Heuton will also give a PowerPoint presentation highlighting the BEDC‘s development strategy. City of Brookings November 22, 2011 6 Brookings Economic Development Corporation 2011 Work Plan 414 Main Avenue Brookings, SD 57006 Primary Program Components  Organization/Committee Management o BEDC o ADC o RREDC o Vision Brookings o Chamber – 10% o I-29 o Entrepreneur Network o Leader Roundtable  Community Committees/Task Forces o Growth Partnership o Innovation Campus Business Advisory Council o Innovation Campus Spec Building Task Force o DBI Economic Enhancement Committee o Chamber Retail Committee o Chamber Government Affairs Committee o SDSU IACUC Committee (Animal Research Committee) o Mayor Sustainability Council Organizing Task Force o SD Shared Research Facility Task Force o College of Engineering Advisory Council  Development Sites o Economic Development Policy/land pricing solution  Investment strategy & economic development policy created  Investment Committee created o Incentive development  Draft retail investment strategy developed  Draft base industry sales tax rebate investment strategy developed o Certified development sites & land option  Phase I Environmental completed on Foster property  Business & Industry Retention & Expansion, Recruitment, Entrepreneur Assistance o Industry visitation – 14 visits to date / approx. 35 to complete o Workforce recruitment strategy  Underway – November CEO/HR Director luncheon planned  Workforce strategy development in progress City of Brookings November 22, 2011 7 o Workforce training relationships with Lake Area Technical Institute (LATI) & Southeast Technical Institute (STE)  Organized industry meeting with LATI o East I-29 (Brookings) economic impact report  Business survey underway o Business Contacts - ongoing  106 contacts to date – information, research, assistance, site sheets, or intensive involvement  60 retail and entrepreneur contacts  46 industrial or research contacts Status of Projects Recruitment 30 Active 20 Companies Hosted 12 Retention/Expansion 6 Dead 18 Companies not hosted 18 Entrepreneurship 10 Started 8 Hosting Not Applicable 16 Total 46 Total 46 Total 46 Status of Projects Information 42 Active 13 Location Assistance 14 Dead 32 Technical Assistance 4 Started 15 Total 60 Total 60 Industrial Company Statistics Retail Company Statistics Site Visit StatisticsType of Projects Type of Assistance  Entrepreneurship Development o Idea & business plan competitions  Idea competition held in February – 5 cash or SDSU class awards made – 60+ business ideas submitted  Served as business plan judge for 2 business plan competitions  Served on review panel for SDSU Proof of Concept grant awards o Network building efforts  Monthly entrepreneur network meetings o Proof of Concept center assistance  Applied for EDA grant for POC center - pending  EDC funding provided to BEDC for revolving lab equipment - $300,000 o Enterprise Institute & SDSU Entrepreneurship program partnerships  Enterprise Institute funding provided through Vision Brookings  November – hosting Entrepreneur Network meeting on campus for students and community City of Brookings November 22, 2011 8  Marketing & Recruitment o Marketing strategy development  Limited to Active Adult Retirement Community (AARC) at this time o AARC awareness building – SDSU alumni & other  Marketing strategy development underway  Completed asset inventory  Submitted article idea to SDSU Alumni magazine - denied o Workforce  Marketing activity will begin upon completion of 2012 strategy. o Target industries  Continued research on industry targets o SDSU contact strategy implementation  Obtained list of industry connections from College of Engineering  Additional contact needed with other colleges plus follow-up o Retail Promotion  Purchased and utilizing Buxton Scout Program ($15,000 investment)  Developed site sheets and market information for:  Calla Center  Brickwood Plaza  University Mall  Brookings Mall  South main  Downtown facilities  Village Square  Crazy Days and Shop Brookings ads  Brookings Life ad (SDSU student market publication) o Trade Show & Conference Attendance  Evaluate and identify additional/alternate possibilities  Attended:  BIO International  International Conference of Shopping Centers  Midwest Area Economic Development Conference (site selectors)  MN - Medical Device Manufacturing Show  SD BIO Conference  Innovation Expo o Site selector visits through I-29 corridor  Hosted 2 site selectors in Brookings – meetings with elected officials and local development organizations o Earned media articles  No activity to date. o Websites  Continuous updating of BEDC website (site data, demographic data, articles, etc) City of Brookings November 22, 2011 9  Maintain Brookings area information on state website o Strategic Conferencing  Additional work needed with SDSU and CVB o Global Exposure  South Dakota Council on World Affairs  Consul General of India  Consul General of Mexico  Russian Delegation  Public Policy Efforts o Lobbyist  Develop agenda  Hire lobbyist in conjunction with Chamber o Brookings/SDSU Day at the Capital  Arrange travel, agenda & meetings  Provide legislator gift  Finance bus  Prepare and publish educational document – Brookings: Leading South Dakota‘s Innovation Economy publication o Congressional, Elected and Appointed Official Meetings & Tours  Representative Noem economic development discussion/virtual tour  Participated in Senator Johnson Brookings area tour  Pat Costello (GOED Director) Brookings tour  Multiple meetings with congressional delegation staff to promote local projects o Local Public Policy Efforts  Organize and attend cracker barrels  Organize and attend local candidate forums  Organize and attend legislative luncheon  Organize and attend pre & post legislative luncheons and local government strategy session o Consensus Council  Served on planning task force for SD, ND, MN, Manitoba legislative council meeting held in Brookings.  Conferences & Training o GOED Conference o Governors Ag Summit  Economic Development Strategy o 90% Complete  Other Projects o Brookings/SDSU Community Forum  Participated in planning and presentations at forum o Gateway Entrance City of Brookings November 22, 2011 10  Participated in gateway design concept planning sessions & land owner relations. Project originated through BEDC. o NW Campus  Attended multiple meetings related to project. BEDC task force held meetings and produced a position statement on the topic. o Manufacturing Extension Partnership (MEP)  Monitored and organized discussions related to establishment of an MEP in South Dakota. GOED established through USD/SBDC. o SDSU Impact Study  Hired Regional Technology Strategies, Inc. to conduct study/prepare report on SDSU impact on Brookings County o VA Nursing Home  Prepared RFP response and presentation, participated in presentation in Pierre  Participating in second round of response activity o Leadership Brookings  Jan provided service through completion of 2010/2011 class  BEDC provides an economic development overview and community tour o Vision Brookings II Campaign  Created and maintain website  Provided staff services to fundraising campaign  Manage VBII financials o Pocket Guide  Information to be developed on various Brookings topics for marketing purposes. o White Paper  Prepared a strategy brief to be delivered to the Governor regarding Economic Development, Innovation Economy strategy & funding. o Regional Cities Strategy & Tech. Assistance  Visioning/planning sessions with Volga o State Board Effort  Identified state boards, appointment process, open seats & working to have Brookings County representation on boards. o Database/Metrics  Maintain demographic and economic data for planning and evaluation purposes. o Information Resource  BEDC provides numerous individuals, businesses and organizations information about Brookings, state and federal programs, etc. each year. City of Brookings November 22, 2011 11 5:00 P.M. WORK SESSION Work Sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 2. City Council Member Ex-Officio Reports. Pursuant to council direction, ―City Council Member Ex-Officio Reports‖ will be a standing agenda item at all Council Work Sessions. The Council Members that serve as Ex-Officio members on the Brookings Health System Board of Trustees and Utility Board will provide verbal reports regarding recent meetings they have attended. Brookings Municipal Utility Board: 1. Council Member Niemeyer 2. Council Member Corbett Brookings Health Systems Board: 1. Council Member Kubal 2. Council Member McClemans City of Brookings November 22, 2011 12 5:00 P.M. WORK SESSION Work Sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 3. Joint Powers Board Council Members‘ Report. Pursuant to council direction, ―Joint Powers Board City Member Updates‖ will be a standing agenda item at all Council Work Sessions. The Council Members serving on the Joint Powers Board will provide verbal updates regarding recent meetings they have attended. Mayor Tim Reed & Council Member Kubal City of Brookings November 22, 2011 13 5:00 P.M. WORK SESSION Work Sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 4. City Council member introduction of topics for future discussion. Any Council member may request discussion of any issue at a future meeting only. Items cannot be added for action at this meeting. A motion and second is required stating the issue, requested outcome, and time frame. A majority vote is required. City of Brookings November 22, 2011 14 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. Review of Council Agenda, Invites and Obligations. Date Day Event & Brief Description Time Location / Town / Address / Directions December 13 Tuesday Council Meeting 4:00 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 9 Thursday Leadership Brookings 8:30 – 12:00 noon City Hall February 14 Tuesday Council Meeting 5:00 p.m. Council Chambers February 28 Tuesday Council Meeting 5:00 p.m. Council Chambers 15 6:00 p.m. REGULAR MEETING 1. Call to order. 2. Pledge of Allegiance. 3. Record of Council Attendance. 4. Action to approve the following Consent Agenda Items:* A. Action to approve the agenda. B. Action to approve City Council minutes. C. Action on Resolution No. 131-11, a Resolution establishing Vision Insurance monthly contribution rates for the City of Brookings Vision Insurance Plan. D. Action on a Letter of Request regarding the next Railroad Safety Crossing Gate Project. E. Action to approve annual Liquor and Wine license renewals. F. Action on Resolution No. 132-11, a Resolution authorizing the City Manager to sign a midterm renewal / Liquor Operating Agreement for the Ram & O‘Hare‘s Eng. LLC/The Ram. G. Action on Resolution No. 133-11, a Resolution authorizing Change Order No. 1 for 2011-03BLD Airport Building Addition Project, Clark Drew Construction (deduct). 5. Items removed from Consent Agenda. Open Forum/Presentations/Reports 6. Recognition of local Governor‘s Awards Nominees. 7. Open Forum. 8. SDSU Student Senate Report. First Readings: 9. Ordinance No. 21-11: Budget Amendment #2: An Ordinance Entitled ―An Ordinance authorizing a supplemental appropriation to the 2011 Budget for the purpose of providing for additional funds for the operation of the City. 10. Ordinance No. 23-11: An Ordinance of the City of Brookings, South Dakota, amending Ordinance No. 22-05, establishing the Retail Economic Development Investment Committee Fund, providing for its funding; providing for its use and providing for its Rules and Regulations. 11. Ordinance No. 24-11: An Ordinance rezoning the east 140 feet of Outlot 2, excluding the north 40 feet thereof, in the NE ¼ of Section 1-T109N-R50W from an Agricultural A District to a Residence R-3 District. 12. Ordinance No. 25-11: An Ordinance rezoning Block 2 and Lots 1-12 of Block 3, Legeros Addition from a Residence R-2 District to a Residence R-1C District. 2nd Readings & Public Hearings: 13. Ordinance No. 18-11: An Ordinance of the City of Brookings, South Dakota, repealing Ordinance No. 22-05, Establishing the Retail Economic Development Investment Fund, providing for its funding; providing for its use and providing for its Rules and Regulations. 14. Public hearing and action on an On-Off Malt Beverage Alcohol License for Aramark Educational Services, LLC, for the McCrory Gardens Event Center at South Dakota State University, 6 th Street/22nd Avenue. 15. Public hearing and action on Resolution No. 134-11, a Resolution authorizing the City Manager to sign an Operating Agreement for an On-Off Sale Wine License for Aramark Educational Services, LLC, for the McCrory Gardens Event Center at South Dakota State University, 6th Street/22nd Avenue. 16. Public hearing and action on Resolution No. 135-11, a Resolution authorizing the City Manager to sign an Operating Agreement for an On-Off Sale Wine License for Schoon‘s Pump & Pak South, Jon Schoon, Owner, 1203 Main Avenue South, Outlot 8, NE 1/4, .66 acres, Section 35-110-50. 17. Public hearing and action on Resolution No. 136-11, a Resolution authorizing the City Manager to sign an Operating Agreement for an On-Off Sale Wine License for Oly‘s Neighborhood Bar & Grill, Ken & Kristi Olson, owners, 725 Main Ave. South, Lot 1, Block 1, Outlot ‗P‘, Shelden‘s Subdivision. City of Brookings November 22, 2011 16 18. Public hearing and action on Ordinance No. 20-11, an Ordinance for an application for Conditional Use Permit to establish a major home occupation (chiropractic office) in a Residence R-2 District on Lot 20, Block 12, East Medary Addition (1513 Orchard Drive). 19. Public hearing and action on Resolution No. 137-11, a Resolution of Intent to Lease Real Property to Private Person (LNJ Farms & Ranch). 20. Public hearing and action on Ordinance No. 19-11, an Ordinance rezoning Lot 2, Block 2, Telkamp Addition from a Residence R-3 District to a Planned Development District (PDD), (2400 Block of 10 th St.). Other Business 21. Action to approve the Den-Wil Initial Development Plan. 22. Action on proposed amendments to the City of Brookings Governance and Ends Policies. 23. Action to name the Nature Park the ―Dakota Nature Park.‖ 24. Action on Resolution No. 138-11, a Resolution approving Tax Increment District Number Five Project Plan. 25. Discussion and possible action on Highway 14 turn back. 26. Potential acquisition of South Dakota Department of Transportation (DOT) old maintenance shop located on Highway 14 between I-29 and 32nd Avenue. 27. Adjourn. City of Brookings November 22, 2011 17 CONSENT AGENDA #4 4. Action to approve the following Consent Agenda Items: * A. Action to approve the agenda. B. Action to approve City Council minutes. C. Action on Resolution No. 131-11, a Resolution establishing Vision Insurance monthly contribution rates for the City of Brookings Vision Insurance Plan. D. Action on a Letter of Request regarding the next Railroad Safety Crossing Gate Project. E. Action to approve annual Liquor and Wine license renewals. F. Action on Resolution No. 132-11, a Resolution authorizing the City Manager to sign a midterm renewal / Liquor Operating Agreement for the Ram & O‘Hare‘s Eng. LLC/The Ram. G. Action on Resolution No. 133-11, a Resolution authorizing Change Order No. 1 for 2011-03BLD Airport Building Addition Project, Clark Drew Construction (deduct). *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 November 22, 2011 18 CONSENT AGENDA #4 B. Action to approve City Council Minutes. The draft October 25th Brookings City Council minutes are enclosed for Council review and approval. City of Brookings November 22, 2011 19 Brookings City Council October 25, 2011 (unapproved) The Brookings City Council held a meeting on Tuesday, October 25, 2011 at 5:00 p.m., at City Hall with the following members present: Mayor Tim Reed, Council Members John Kubal, Mike McClemans, Tom Bezdichek, Ope Niemeyer, Jael Thorpe and Keith Corbett. City Attorney Steve Britzman, City Manager Jeff Weldon and City Clerk Shari Thornes were also present. Executive Session. A motion was made by Kubal, seconded by Corbett, to enter into executive session at 5:05 p.m. for purposes of consulting with legal counsel on pending litigation with the City Manager, City Attorney and City Clerk present. A motion was made by Thorpe, seconded Kubal, to exit executive session at 5:27 p.m. All present voted yes, motion carried. Executive Session. A motion was made by Kubal, seconded by Niemeyer, to enter into executive session at 5:28 p.m. for purposes of consulting with legal counsel on contractual matters with the City Manager, City Attorney, City Clerk, and BEDC representatives (Al Heuton, Van Fishback, Mike Bartley, Ryan Brunner) present. A motion was made by Kubal, seconded Corbett, to exit executive session at 6:07 p.m. All present voted yes, motion carried. REGULAR MEETING. Consent Agenda. A correction to Resolution No. 130-11 was noted. Action to approve amendments to the City of Brookings Governance and Ends Policies was removed from the agenda. A motion was made by Kubal, seconded by Corbett, to approve the consent agenda as amended: A. Action to approve the agenda as amended. B. Action to approve the August 30th and October 11th Council minutes. C. Action to hold a special City Council Meeting on November 15th from 5:00 to 7:00 p.m., regarding the Brookings Municipal Liquor Store. D. Action on Resolution No. 121-11, a Resolution cancelling certain outstanding checks. Resolution No. 121-11 - Cancelling Certain Outstanding Checks Whereas, the City of Brookings, has issued checks that have been outstanding for more than six (6) months. Now, Therefore, Be It Resolved that the following amounts be canceled and the proper funds be credited from the General Fund: 07-14-2010 David Felton $22.50, and 11-03- 2010, Farmers Implement & Irrigation, $17.98, for a total of $40.48. E. Action on Resolution No. 122-11, a Resolution authorizing Change Order No. 1 (CCO#1 Final) for 2010-04SSI, Southland Lane Landscaping Project, Groundwater, Inc. (increase of $0.00). Resolution No. 122-11 - Resolution Authorizing Change Order No. 1 (CCO#1 Final) for 2010-04SSI Southland Lane Landscaping Project, Groundwater, Inc. Be It Resolved by the City Council that the following change order be allowed for 2010- 04SSI Southland Lane Landscaping Project: Construction Change Order Number 1 Final; Adjust contract to final as-built quantities for a total increase of $0.00 to the contract. On the motion, all present voted yes; motion carried. City of Brookings November 22, 2011 20 Resolution No. 129-11. A motion was made by Corbett, seconded by Kubal, to approve Resolution No. 129-11, a Resolution authorizing Change Orders for the Joint City/County Administration Building. No public comment. All present voted yes; motion carried. Resolution No. 129-11 - 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 $6,600; and that the County Board has forthwith approved such change orders: 1) Mills Construction -- Deletion of exterior clock, ($5,000), 2) American Electric -- Credit for certain conduit, ($4,500), 3) Olson Const. -- Insulation material for exterior sheating, $16,100, for a Net Change of $6,600. Be It Resolved by the City Council that the change orders be allowed for the Joint City-County Government Center, with the $6,600 provided by the construction contingency. Memorandum of Understanding. Mayor Reed noted a conflict of interest and turned the meeting over to Deputy Mayor Thorpe. Corbett noted he would not benefit from this project and was not directly involved, so he planned to vote. A motion was made by Niemeyer, seconded by Kubal, to approve a Memorandum of Understanding by and between the City of Brookings, a South Dakota municipality under the laws of the State of South Dakota, and the South Dakota State University Foundation and South Dakota State University for the McCrory Gardens Education and Visitor Center. Discussion: Council members asked how the facility could be used on and off season and the fee structure. Could catering services be open to any entity? Dean Barry Dunn said SDSU is under contract with Aramark only. All present voted yes, except Reed abstained; motion carried. McCrory Gardens Education and Visitor Center, South Dakota State University MEMORANDUM OF UNDERSTANDING By and between the City of Brookings, a South Dakota municipality under the laws of the State of South Dakota, the South Dakota State University Foundation and South Dakota State University WHEREAS, the Legislature of the State of South Dakota authorized the Board of Regents to contract for the construction, equipping, and furnishing of an Education and Visitor Center at McCrory Gardens on the campus of South Dakota State University, at an estimated cost of four million dollars ($4,000,000) and consisting of 10,000 square feet, to be paid from donations, gifts and grants to South Dakota State University Foundation; and, WHEREAS, the act provided that the administration of the design and construction of these facilities and oversight of the building committees appointed therefor shall be under the general charge and supervision of the Governor and the Executive Director of the Board of Regents or their designees; and, City of Brookings November 22, 2011 21 WHEREAS, the City of Brookings, by virtue of the power granted to the City of Brookings under SDCL 9-12-4 and 9-12-5, has the power to enter into an agreement with the State of South Dakota, and with any authorized agency of the State, to carry out any authorized municipal function, and is authorized to provide funding to the State to be used for an authorized public purpose, upon the terms and in the manner provided by Resolution of the governing body; and, WHEREAS, the Foundation is constructing the McCrory Gardens Education and Visitor Center on the campus of South Dakota State University, Brookings, South Dakota; and, WHEREAS, the City of Brookings is contributing to the financing for construction of said facility to enhance the availability of multi-use facilities for the City of Brookings, and to attract visitors to the area and McCrory Gardens; and, WHEREAS, in order to recognize the cooperative effort of the City of Brookings and South Dakota State University for the use of the McCrory Gardens Education and Visitor Center, the parties are executing this Memorandum of Understanding. NOW, THEREFORE, this Memorandum of Understanding is entered into by and between South Dakota State University Foundation and the City of Brookings, a municipal corporation of the State of South Dakota, to set forth in writing in general terms the right of access to the facility and the nature of the cooperative arrangements which will be utilized in the use of the facility to maximize the benefit, not only to the campus of South Dakota State University, but also to the City of Brookings; and to enumerate the terms and conditions of the City of Brookings‘ financial participation. Section 1: All parties to this agreement recognize this is a Contract, granting right of access to the facility in the manner contractually established by the SDSU Foundation and the City of Brookings, which is granted and given in consideration of the payment by the City of Brookings of $250,000 for the construction of the McCrory Gardens Education and Visitor Center at South Dakota State University. Section 2: All parties to this agreement recognize that the facility being constructed is primarily intended for the educational, cultural and tourism needs of South Dakota State University and the City of Brookings. Section 3: The administration of South Dakota State University will be responsible for the primary management of the facility, including scheduling, security, maintenance, concessions, operations, formulation and enforcement of building rules and establishment of fee schedules for use of the facility. Section 4: In consideration of the financial participation from the City of Brookings toward this project, the following terms and conditions will apply: City of Brookings November 22, 2011 22 A) The City of Brookings will be entitled use of the facility through duly adopted scheduling and reservation procedures, guaranteeing up to ten days for each calendar year without a facility rental charge for a period of 25 successive years. Once scheduled, the reservation will not be revoked by the managing entity due to other priorities. The City of Brookings will pay applicable custodial, food service, or security fees associated with the use pursuant to the usual and customary fee schedule for such services. B) The McCrory Gardens Education and Visitor Center will be constructed to meet all applicable building code requirements. As a State-owned facility, the City of Brookings will not be responsible for plan review of the construction, will not issue or charge for a building permit, and will not perform any building inspections unless there is a supplemental agreement to the contrary for such services. C) The McCrory Gardens Education and Visitor Center will be constructed to meet all applicable requirements of the Americans with Disabilities Act; and will be subject to applicable review and compliance requirements of the City of Brookings Committee for People who have Disabilities. D) The McCrory Gardens Education and Visitor Center will be constructed to meet all applicable regulations of the City of Brookings pertaining to parking, access road specifications, stormwater management, and water and sewer utility connections. E) The City of Brookings will not be responsible for any operating or maintenance costs of McCrory Gardens Education and Visitor Center. F) If site access to McCrory Gardens Education and Visitor Center is from either 22nd Avenue, 11th Street, or 20th Avenue, the specific access locations to these streets will be approved by the City of Brookings. G) Payment will be made by the City of Brookings during the first budget year following the final completion of the McCrory Gardens Education and Visitor Center and a determination made by the City of Brookings that all applicable terms and conditions of this section have been satisfied; but no sooner than January, 2012 and no later than June 30, 2012 if all terms and conditions are satisfied. The City will make one lump-sum payment. Section 5: Any use by the City of Brookings will not result in any liability to the University arising from the use of the facility and liability will be the responsibility of the sponsors of any such event or activity scheduled for the facility. Likewise, the University and State of South Dakota will indemnify, hold harmless, and agree to defend the City of Brookings from all liability of claims that may arise from the University‘s use, operation, management, maintenance, or ownership of the facility by virtue of the City‘s financial participation. This Memorandum of Understanding does not constitute a binding contract concerning the specific use of the facility for any specific events, but it does impose an obligation and duty upon City of Brookings November 22, 2011 23 the State of South Dakota to provide for a right of access to the facility in the manner contractually established herein. This Memorandum of Understanding for the intergovernmental cooperation and use of the facility being constructed on the campus of South Dakota State University is executed by the City of Brookings and South Dakota State University Foundation. Resolution No. 123-11. A motion was made by Kubal, seconded by McClemans, to approve Resolution No. 123-11, a Resolution awarding bids on Agricultural Land Rent (92 acres of hayland at the airport) to LNJ Farms of Aurora, SD for $75.00 per acre. No public comment. All present voted yes; motion carried. Resolution No. 123-11 - Resolution Awarding Bids on Agricultural Land Rent Whereas, the City of Brookings opened bids for approximately 60 acres of Agricultural Hay/Pasture Land Rent for City-owned parcel located in Section 21-T110-R50 on Tuesday, October 18, 2011 at 1:30 pm at Brookings City Hall; and Whereas, the City of Brookings has received the following bids for Agricultural Hay/Pasture Land: LNJ Farms & Ranch, Aurora, SD - $75.00/acre, John Moriarty, Brookings, SD - $70.00/acre, Lyle Johnson, Brookings, SD - $55.00 per acre. Now Therefore, Be It Resolved that the high bid of LNJ Farms & Ranch, Aurora, SD for the high bid of $75.00 per acre be accepted. First Reading – Ordinance No. 18-11. First reading was held on Ordinance No. 18-11, an Ordinance of the City of Brookings, repealing Ordinance No. 22-05, establishing the Retail Economic Development Investment Fund, providing for its funding; providing for its use and providing for its Rules and Regulations. Public Hearing: November 22, 2011. First Reading – Ordinance No. 19-11. First reading was held on Ordinance No. 19-11, an Ordinance rezoning Lot 2, Block 2, Telkamp Addition from a Residence R-3 District to a Planned Development District (PDD) (2400 Block of 10th Street). Public Hearing: November 22, 2011. First Reading – Ordinance No. 20-11. First reading was held on Ordinance No. 20-11, an Ordinance for an application for Conditional Use Permit to establish a major home occupation (chiropractic office) in a Residence R-2 District on Lot 20, Block 12, East Medary Addition (1513 Orchard Drive). Public Hearing: November 22, 2011. Resolution No. 124-11. A public hearing was held on Resolution No. 124-11, a Resolution of Intent to Lease Real Property (167 acres of airport hayland) to the South Dakota Ag Experiment Station for $40.00 per acre. No public comment. A motion was made by McClemans, seconded by Niemeyer, to approve Resolution No. 124-11. All present voted yes; motion carried. City of Brookings November 22, 2011 24 Resolution No. 124-11 - Resolution of Intent to Lease Real Property (Airport hayland) Be It Resolved by the governing body of the City of Brookings, South Dakota, that the City of Brookings intends to enter into a Lease with South Dakota Ag Station for a period of one (1) year, commencing on January 1, 2012 and ending December 31, 2012 and pertaining to the following described property: The designated hayland on the Brookings Regional Airport, one hundred sixty-seven (167) acres more or less in Sections 26, 27, and 35, T110N, R50W, in the City of Brookings, Brookings County, South Dakota. The Lease will be an amount of Forty Dollars ($40.00) per acre for the hayland, payable first half on April 1 and the remaining half on November 1. The City of Brookings may terminate this Lease at any time in the event a parcel of the above described property is to be adjusted by the City of Brookings. If a portion of the hayland is changed, the number of acres to be paid for will be adjusted at the unit price per acre. Resolution No. 125-11. A public hearing was held on Resolution No. 125-11, a Resolution of Intent to Lease Real Property (30 acres in the Wiese Addition and 38 acres in the Freeland Addition) to Foundation Seed Stocks for $105.00 per acre. No public comment. A motion was made by Kubal, seconded by Corbett, to approve Resolution No. 125-11. All present voted yes; motion carried. Resolution No. 125-11 - Resolution of Intent to Lease Real Property in Wiese and Freeland Additions Be It Resolved by the governing body of the City of Brookings, South Dakota, that the City of Brookings intends to enter into a Lease with Foundation Seed Stocks for a period of one (1) year, commencing on March 9, 2012 and ending March 8, 2013, and pertaining to the following described property: The designated farmland in the Brookings Wiese Addition, thirty (30) acres more or less in Section 19, T110N, R49W, and the designated farmland in the Brookings Freeland Addition, thirty-eight (38) acres more or less in Section 18, T110N, R49W in the City of Brookings, Brookings County, South Dakota. The Lease will be an amount of One Hundred Five Dollars ($105.00) per acre for farmland annually, payable first half on April 1 and the remaining half on November 1. The City of Brookings may terminate this Lease at any time in the event a parcel of the above described property is to be sold by the City of Brookings. If a portion of the leased land is sold, the number of acres to be paid for will be adjusted at the unit price per acre. Resolution No. 130-11. A public hearing was held on Resolution No. 130-11, a Resolution for special assessments for weed cutting, tree removal, debris removal, and snow removal. No public comment. A motion was made by Kubal, seconded by McClemans, to approve Resolution No. 130-11. All present voted yes; motion carried. Resolution No. 130-11 - Levy Assessment for Weed Cutting, Tree Removal, Debris Removal and Snow Removal City of Brookings November 22, 2011 25 Whereas, the City Manager has submitted to the City Council Special Assessments against the owner and legal description listed below as hereinafter set out for the cutting of weeds, tree removal, debris removal, and snow removal; Be It Resolved by the City Council of the City of Brookings, South Dakota, these fees be assessed, in accordance with South Dakota Codified Law 9-30-5 as follows: Martin Hesby, 1928 17th Ave. So., $245.00; John Sondey, 620 Medary Ave, $245.00; Julie Storovich, 1716 15th St. So., $145.00; Doris Rodas, 1118 Third Street, $1,832.99; Machoff Kellogg Law Firm, 203 8th St. W, $1,931.47; Machoff Kellogg Law Firm, 203 8th St. W, $315.00; Machoff Kellogg Law Firm, 1630 Elmwood, $830.00; and Green Tree, 208 8th St., $165.00. Resolution No. 126-11. A public hearing was held on Resolution No. 126-11, a Resolution of necessity for sidewalks. Public Hearing: City Engineer Lanning provided clarification on installation timing. A motion was made by Corbett, seconded by Niemeyer, to approve Resolution No. 126-11. All present voted yes; McClemans abstained, motion carried. Proposed Resolution No. 126-11 - Resolution Determining the Necessity of Installing Sidewalks in the City of Brookings at the Expense of Abutting Property Owners 2012-01SWR Sidewalk Repair Project Be It Resolved by the City Council of the City of Brookings, South Dakota, as follows: 1. It is hereby determined that sidewalk repairs or installation is necessary abutting the parcels and lots of land in the City described in the Notice to Property Owners attached to this Resolution and marked as 2012-01SWR Sidewalk Repair Project. 2. Such sidewalks shall be to the width and of the materials prescribed by Article V, Sidewalks, of Chapter 74 of the Code Ordinances of the City of Brookings and to the grade and in accordance with the Plans and Specifications prepared in the Office of the City Engineer. 3. The City Clerk has caused a copy of the Resolution and a Notice to Property Owners to be mailed to each property owner by certified mail. Resolution No. 127-11. A public hearing was held on Resolution No. 127-11, a Resolution authorizing the issuance of Electric Revenue Bonds; pledging certain revenues of the City to the payment of said Bonds; authorizing officers of the City to approve, execute and deliver certain agreements and documents relating to the Bonds. No public comment. A motion was made by Corbett , seconded by Kubal, to approve Resolution No. 127-11. All present voted yes; motion carried. Resolution No. 127-11 - A Resolution authorizing the issuance of Electric Revenue Bonds; pledging certain revenues of the City to the payment of said Bonds; authorizing officers of the City to approve, execute and deliver certain agreements and documents relating to the Bonds Be It Resolved by the City Council of the City of Brookings, South Dakota (the City), as follows: City of Brookings November 22, 2011 26 Section 1. Recitals, Authorization and Findings. 1.1. Recitals. The City is a political subdivision of the State of South Dakota and a body corporate and politic. Under the laws of the State of South Dakota and the City‘s charter, the City is possessed of all powers which are necessary, requisite or proper for the government and administration of its local and municipal matters, and all rights and powers that now or hereafter may be granted to municipalities by the laws of the State of South Dakota. The City, operating through the Brookings Municipal Utilities (BMU), currently operates a municipal electric utility (the Utility), consisting of a system or part of a system for the purpose of providing electricity for municipal, industrial and domestic purposes. 1.2. Authorization. The City is authorized to borrow money and issue its revenue bonds under South Dakota Codified Laws, Chapter 9-40 (the Act), in order to finance all or a portion of the cost of acquiring and constructing improvements to the electrical facilities of the Utility, consisting of the construction of a 115 kV transmission line, reconstruction of three substations, and installation of four 115/12.5 kV transformers and related improvements (the Improvements). The City is authorized to make the Improvements, to issue electric revenue bonds in order to defray the cost thereof and to make all pledges, covenants and agreements authorized by law for the protection of the owners of the revenue bonds, including, without limitation, those covenants set forth in Sections 9-40-16 and 9-40-17 of the Act. The City, acting through BMU, shall impose a separate surcharge for the availability, benefit and use of the Improvements as a part of the Utility and shall aggregate the gross revenues derived from such surcharge and the Improvements, together with the expenses of operation and maintenance of the Improvements. All gross revenues derived from the operation of the Improvements are irrevocably set aside, pledged and appropriated to a special fund within the Utility as received. The Bonds, together with any other electric revenue bonds issued by the City to finance other portions of the Improvements, are payable solely from the revenue or income derived from the operation of the Improvements and shall not constitute an indebtedness of the City within the meaning of any constitutional or statutory provisions or limitations. 1.3. Findings. It is hereby found, determined and declared to be in the best interest of the City to issue its electric revenue bonds, in one or more series (collectively, the Series 2011 Bonds), in accordance with the Act and under the terms and conditions of this resolution and an Indenture of Trust (the Indenture) to be entered into between the City and First Bank & Trust, Brookings, South Dakota, as trustee (the Trustee). The Series 2011 Bonds, together with any other electric revenue bonds issued under the Indenture to finance portions of the Improvements, and made payable from the surcharge, are referred to herein as the Bonds. City of Brookings November 22, 2011 27 Section 2. Sale, Bond Purchase Agreement, Official Statement, Indenture of Trust, Approval and Execution of Documents. 2.1. Sale. The Series 2011 Bonds authorized by this Resolution shall be sold to Dougherty & Company LLC, of Minneapolis, Minnesota, as underwriter (the Underwriter) in an aggregate principal amount not to exceed $6,500,000, which includes construction costs, the amounts necessary to fund a debt service reserve fund, pay capitalized interest not to exceed 24 months on the Series 2011 Bonds, and pay costs of issuance (including an underwriter‘s discount not exceeding 3% of the principal amount of the Series 2011 Bonds). The Series 2011 Bonds shall be issued in such form, mature at the time or times and on such terms, consistent with this Resolution, as shall be provided in the Indenture and other agreements whose execution and delivery is authorized by Section 2.5 of this Resolution, provided the Series 2011 Bonds shall not mature later than December 31, 2031, and shall bear interest at the rate or rates per annum provided in the Indenture, but at an average interest rate not to exceed 6.00% per annum. The City Manager and the General Manager of BMU are hereby authorized and directed to agree with the Underwriter upon the exact purchase price, principal amount, maturities, interest rate or rates, payment dates and redemption provisions for the Series 2011 Bonds, within the parameters set forth in this Section. 2.2. Bond Purchase Agreement. The execution of a Bond Purchase Agreement setting forth such final terms by the Mayor and City Clerk is hereby approved and authorized and such execution shall be conclusive evidence of such agreement and shall be binding upon the City. The provisions of the Bond Purchase Agreement as so executed, including all Exhibits and Appendices thereto, are incorporated herein by reference. The law firm of Dorsey & Whitney LLP, in Minneapolis, Minnesota, is hereby appointed as bond counsel for purposes of this issue of the Series 2011 Bonds. 2.3. Official Statement. The Series 2011 Bonds will be offered for sale by means of an Official Statement. The Mayor, the City Attorney, and the City Manager are authorized, in cooperation with BMU, the Underwriter, Underwriter‘s Counsel and Bond Counsel, to prepare an Official Statement to be distributed to prospective purchasers of the Series 2011 Bonds. The Mayor and the City Clerk are hereby authorized and directed to approve, and, if requested, to execute the final Official Statement. The City hereby consents to the distribution of the Official Statement to prospective purchasers of the Series 2011 Bonds. 2.4. Indenture of Trust. To provide security for the Bonds and to set forth the terms and other matters relating to the Bonds, the City shall enter into the Indenture with the Trustee. The terms of the Bonds shall be set forth in the Indenture, and the City shall pledge the revenue or income derived from the operation of the Improvements to secure the Bonds. The Mayor and City Clerk are authorized and directed to approve and execute the Indenture on behalf of the City. The Indenture shall also provide the forms and other matters of other series of Bonds issued at substantially the same time as the Series 2011 Bonds; other series of Bonds shall be issued pursuant to supplements to the Indenture. 2.5. Approval and Execution of Documents. Upon the determination of the terms of the Series 2011 Bonds (within the limits set forth herein), the Indenture and the Bond Purchase City of Brookings November 22, 2011 28 Agreement, and such other documents, agreements or instruments as may be necessary to make covenants and recite facts required to demonstrate the validity and enforceability of Series 2011 Bonds under the laws of the State of South Dakota and to assure the exclusion of the interest thereon from the gross income of the owners of the Series 2011 Bonds under the Internal Revenue Code of 1986, as amended (the Code) and to effectuate the terms and intent of this Resolution, as may be approved by the City Attorney, shall be executed in the name and on behalf of the City by the Mayor and the City Clerk in substantially the form to be filed with the City Clerk, but with such changes therein, not inconsistent with this Resolution, the Bond Purchase Agreement or other law, as may be approved by the officers executing the same, which approval shall be conclusively evidenced by the execution thereof. Section 3. City Officers. The Mayor and City Clerk are hereby authorized and directed to execute and deliver the Indenture, agreements and documents authorized by Section 2 hereof. Execution and delivery of such items by the Mayor and City Clerk shall constitute evidence that such items are consistent with the terms of this Resolution and the Indenture and have been duly authorized, executed and delivered by the City and are enforceable against the City in accordance with their terms, subject to customary exceptions relating to bankruptcy, reorganization, insolvency and other laws affecting creditors' rights. The Mayor, City Clerk and City Attorney are further authorized to take such other actions as may be required to effectuate the terms and intent of this Resolution. In the event of the absence or disability of the Mayor, City Clerk or City Attorney, the acting Mayor, the acting City Clerk or the acting City Attorney are hereby authorized to act in the place and stead of the Mayor, City Clerk and City Attorney, and to take all actions and execute all documents approved hereby. Section 4. Continuing Disclosure Certificate. The City acknowledges that the Series 2011 Bonds are subject to the continuing disclosure requirements of Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 (17 C.F.R. § 240.15c2-12) (as in effect and interpreted from time to time, the Rule). The Rule governs the obligations of certain underwriters to require that issuers of municipal obligations enter into agreements for the benefit of the holders of the obligations to provide continuing disclosure with respect to the obligations. To provide for the public availability of certain information relating to the Bonds and the security therefor and to permit participating underwriters in the primary offering of the Bonds to comply with the Rule, which will enhance the marketability of the Bonds, the Mayor and City Clerk are hereby authorized and directed to execute a Certificate of Continuing Disclosure (the Certificate), by which the City agrees to provide such information, either directly or through a disclosure agent. The City hereby covenants and agrees to observe and perform the covenants and agreements contained in the Certificate, unless amended or terminated in accordance with the provisions thereof, for the benefit of the registered owners or beneficial owners from time to time of the outstanding Bonds as provided in the Certificate. Section 5. Qualified Tax-Exempt Obligation. This Council hereby designates the Bonds as "qualified tax exempt obligations" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, relating to the disallowance of interest expense for financial institutions, and hereby finds that the reasonably anticipated amount of qualified tax-exempt obligations (within the meaning of Section 265(b)(3) of the Code) which will be issued by the City of Brookings November 22, 2011 29 City and all subordinate entities thereof during calendar year 2011 does not exceed $10,000,000. Section 6. Amendment. This Resolution may be amended at any time prior to the issuance of the Series 2011 Bonds by adoption of a subsequent resolution amending this Resolution. Resolution No. 128-11. Thorpe recused herself due to personal conflict. A motion was made by Corbett, seconded by McClemans, to approve Resolution No. 128-11, a Resolution establishing the fee ($100,000.00) for the Issuance of Operating Agreements in the City of Brookings. Discussion: The Mayor raised a number of questions for discussion. Would this be a one-time fee or every ten years? According to the way it is currently, it would be every 10 years. Is this fee for new licensees only or does it affect existing license holders? New only. Will the override continue? Yes. Will it affect the Brownstone and Shamrock licenses? Britzman said that was a policy decision. Weldon recommended leaving the price at $25,000 due to differences between license types (food-liquor ratios, outright ownership vs. contractual, limited vs. unlimited), affordability, business recruitment and consistency in council policy. Friendly Amendment: A motion was made by Corbett, seconded by McClemans, to approve Resolution No. 128-11, a Resolution Establishing the Fee for the issuance of Operating Agreements with the following additional provision that the on-sale establishment would not be charged more than once for that particular operating agreement and there would be no additional compensation beyond the renewal fee. On the motion, Bezdichek, Corbett, McClemans and Niemeyer voted yes; Kubal and Reed voted no; motion carried. Resolution No. 128-11 - Resolution Establishing the Fee for the issuance of Operating Agreements in the City of Brookings Whereas, the State of South Dakota has authorized municipalities to enter into Operating Agreements pursuant to SDCL 35-4-19 for the purpose of operating an on-sale alcoholic beverage establishment for the municipality, and Whereas, the fee for issuance of an Operating Agreement is a significant contractual provision to be included in an Operating Agreement, and therefore is appropriate for public discussion and a determination by the City Council, Now, Therefore Be It Resolved that from and after the effective date of this Resolution, the fee for the issuance of Operating Agreements for on-sale establishments that have not previously been issued an Operating Agreement in the City of Brookings is One Hundred Thousand Dollars ($100,000.00). On-sale establishments which have paid the fee established in this Resolution will not be charged this $100,000.00 fee upon renewal of an Operating Agreement or upon the issuance of a subsequent Operating Agreement provided the on-sale establishment has previously paid the fee established in this Resolution. BraVo‘s On-Sale Liquor License. A public hearing was held on the issuance of either an On-Sale Liquor Operating Agreement or an On-Sale Restaurant Liquor License to BraVo‘s, Kip City of Brookings November 22, 2011 30 and Michelle Pharis, owners, 610 Medary Avenue, Brookings, SD, legal description: Lots 3-4-5, Randi Peterson Addition. A motion was made by Reed, seconded by Bezdichek, to issue BraVo‘s an unrestricted On-Sale Liquor Operating Agreement for $25,000 for a period of ten years. On the motion; Bezdichek and Reed voted yes; Corbett, Kubal, McClemans and Niemeyer voted no; motion failed. AMENDMENT: A motion was made by Kubal, seconded by Bezdichek, to extend the current Temporary Operating Agreement for one year at a cost of $30,000. A friendly amendment was made to charge $2,500. On the motion, Bezdichek, Kubal, McClemans, Niemeyer and Reed voted yes; Corbett voted no; motion carried. Thorpe returned to the dias. Supplemental Loan to the SDSU Innovation Campus / Growth Partnership. ACTION: A motion was made by Kubal, seconded by Thorpe, to approve a supplemental loan to the SDSU Innovation Campus / Growth Partnership in the amount of $35,000. No public comment. All present voted yes; motion carried. Adjourn. A motion was made by Corbett, seconded by Niemeyer, to adjourn. All present voted yes; motion carried. Meeting adjourned at 9:03 p.m. CITY OF BROOKINGS ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk City of Brookings November 22, 2011 31 CONSENT AGENDA #4 C. Action on Resolution No. 131-11, a Resolution establishing Vision Insurance monthly contribution rates for the City of Brookings Vision Insurance Plan. Date: November 14, 2011 To: Jeff Weldon, City Manager City Council From: Donna Langland, Human Resources Director Subject: City of Brookings 2012 Vision Insurance Premium Adjustment Please review for approval the attached resolution to initiate an increase of the monthly employee contribution rates for employee/child(ren) and family plan coverages of the City of Brookings Avesis vision plan effective January 1, 2012. The proposed rate change for 2012 health, dental, vision and life insurance within the 2012 budgeting process was projected for a ten (10) percent increase overall to the employee and the City of Brookings. We are pleased to announce that there are no increases anticipated at this time for the employer portion of any benefits for 2012. As you recall, the City of Brookings instituted a number of changes effective 01/01/2010 to the City of Brookings Health Insurance plan to place more of a focus on preventative benefits and adjust co-payment amounts within the pharmacy drug program, as well as eliminate the out-of- pocket maximum. In addition, the City of Brookings Safety/Wellness Committee developed a listing of Employee Wellness Activities and Participation Incentives again for 2011. These wellness activities and incentives inspired a large number of employees to participate in programs such as the 2011 Mark Your Steps Program (46 participants started the challenge and 22 employees logged 500,000 steps or more each at the end within the 100-day time frame) and the comprehensive 100-Day 2011 Summer Weight Loss Challenge (40 participants weighed in at the beginning and 20 weighed in at the end with a total weight loss of 128 lbs). A Holiday Maintain, No Gain Weight Challenge was held prior to Thanksgiving in 2010 and continued through January 2011 (31 participants weighed in at the beginning and 31 weighed in at the end with a total net loss of 144.2 lbs) and an Employee Health Fair in 2010 offered health screenings and the opportunity to participate in a Health Risk Assessment (HRA), which assessed the health risks among City of Brookings employees (81 employees participated in laboratory screenings and 79 employees completed the HRA). In reading recent benefit articles, it seems that more and more employers are following this same trend of encouraging employees to take responsibility for their health and are offering tools, such as health risk assessments and blood pressure and cholesterol screenings, to raise awareness of the personal health status among employees and their family members. We are pleased to inform you that the accumulated cash level in the City of Brookings self- insured health insurance fund as of 10/31/11 was $1,477,631.25, which is 9.6 percent higher than it was on 10/31/10, one year ago. We feel that placing a focus on wellness over the past City of Brookings November 22, 2011 32 two years, as well as the changes made within the pharmacy drug program on 1/1/2010, have allowed the City of Brookings to provide a less volatile self insured medical trust account for employees. Based on all these factors, I would like to propose a recommendation to adjust the projected health insurance premium rate increase down from 10%, as budgeted, to 0%. We just received notification from First Administrators that there will be an increase of ten (10) percent increase in our administration fees, an increase of seven (7) percent in utilization fees, and a projected five (5) percent increase in the excess stop loss premium for 2012. The projected total additional dollar amount of the combined increases is expected to decrease the fund annually by approximately $9,336.12, which the health trust fund balance should be able to absorb based on the current balance within the account. This is the first adjustment made by First Administrators, Inc. to the administration and utilization fees since 2009, and these increases are well within range considering overall health care costs are projected to rise statistically seven (7) percent per employee in 2012. The Brookings Municipal Utilities current accumulated cash level in the self-insured health insurance fund on 10/31/11 was $2,253,581.25. Therefore, if additional funds were needed above the dollar amount in the City of Brookings portion of the medical trust account for claims, we would be able to borrow from BMU reserves. The City of Brookings medical trust account balance for both entities combined on 10/31/11 is a record amount of $3,731,212.50, which we feel places the City of Brookings in a positive position in light of the healthcare reform changes which were effective January 1, 2011. The City of Brookings currently is under a grandfathered status, which provided us with protection from a number of changes that other entities already faced in 2011. Employee health insurance contribution increases and claims paid history data since 2001 are as follows: YEAR HEALTH CONTRIBUTION INCREASE CLAIMS PAID 2001 40.0% $ 569,800.14 2002 9.1% 733,390.51 2003 6.5% 994,580.73 2004 5.0% 712,212.75 2005 5.0% 913,207.14 2006 10.0% 1,173,949.07 2007 14.0% 1,312,601.16 2008 15.0% 1,041,894.67 2009 6.5% 1,266,005.18 2010 0.0% 983,143.26 2011 0.0% 975,239.01 (YTD thru 10/31/11) 2012 0.0% (10% budgeted) It is our plan to proceed with the 0% increase effective January 1, 2012, and monitor the 2012 claims experience and medical trust account balance closely on an ongoing basis to determine if an increase in premium may need to be instituted, for example, on July 1, 2012, etc. City of Brookings November 22, 2011 33 Based on the current and future union contract language through December 31, 2012, the City will continue to pay 75% of all categories of City General employees and 85% for the Public Safety and non-represented Public Safety employees. We were recently informed by National Insurance Services and Delta Dental of South Dakota that there will not be an increase in life insurance or dental plan premiums for plan year 2012. Based on current and future union contract language through December 31, 2012, the City of Brookings will continue to pay 100% of 1 X annual salary of life insurance premiums for employees and 75% of the single premium amount toward all levels of coverage for dental insurance coverage. VISION INSURANCE PREMIUM ADJUSTMENT RECOMMENDATION The premium increase announcement from Avesis vision insurance was 4.95% for employee/child(ren) plan and 4.98% for the family plan on 1/1/12. There were no rate increases to the single and employee/spouse vision plan amounts. Since the City of Brookings pays 75% of the single premium rate towards all coverage levels, there will not be an increase in the premiums paid by the City of Brookings for vision insurance. Only employees that have selected the employee/child(ren) and family coverage will experience an increase in vision premiums. Avesis indicated that the new rate structure, effective January 1, 2012, is guaranteed through December 31, 2013. Based on current and future union contract language through December 31, 2012, the City of Brookings agrees to participate in the vision premiums for employees by paying 75% of the single premium amount toward all levels of vision coverage. Resolution No. 131-11 Establishing monthly contribution rates for Vision Insurance for the City of Brookings Vision Insurance Plan Whereas, Be It Resolved, that the 2012 employee and employer contributions for the vision insurance plan be established as follows: City General & Public Safety Employees Employer‘s Share (75%) of single rate Employee‘s 2012 Share TOTAL Employee Only $6.42 $2.14 $8.56 Employee/Spouse $6.42 $8.56 $14.98 Employee/Children $6.42 $12.44 $18.86 Family $6.42 $16.96 $23.38 Passed and approved this 22nd day of November, 2011. CITY OF BROOKINGS ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk City of Brookings November 22, 2011 34 CONSENT AGENDA #4 D. Action on a Letter of Request regarding the next Railroad Safety Crossing Gate Project. The first Railroad Safety Crossing Gate Project located on Main Avenue has been completed. The project included new railroad safety crossing gates and medians to improve vehicle safety at the railroad tracks. Main Avenue was determined to be the most critical of the railroad crossings in Brookings, and the project was funded with a grant of $100,000 from the Railroad Crossing Improvement Program (RCIP) through the South Dakota Department of Transportation (SDDOT). The program‘s purpose is to provide funding for the implementation of safety improvements where a public roadway intersects active railroad tracks. The grant will typically fund 90% of a project, with the City providing the 10% matching funds. The second most critical railroad crossing is located at 22 nd Avenue. Each year, the SDDOT accepts letters of request for projects that qualify for the Railroad Crossing Improvement Program. The City of Brookings wishes to submit a letter of request for grant funding for a Railroad Safety Crossing Gate Project on 22nd Avenue. This motion will authorize the City Manager to submit a letter of request for grant funding for a Railroad Safety Crossing Gate Project on 22nd Avenue. City of Brookings November 22, 2011 35 CONSENT AGENDA #4 E. Action to approve annual Liquor and Wine license renewals. The annual State Liquor and Wine Licenses expire on December 31, 2011. In accordance with State Law, all licenses must be acted on by the governing body. The period of renewal is from January 1, 2012 to December 31, 2012. The cost of the Liquor License renewal is $1,500 and the Wine License renewal is $500; both are payable to the City of Brookings. All required documentation has been submitted. Staff recommends approval. NOTE: A public hearing is no longer required for alcohol license renewals, per recent changes in state law. Liquor (On-Sale) 1. Applebee‘s/Porter Apple Co. B Inc., 3001 LeFevre Dr. 2. BraVo‘s Inc., 610 Medary Ave. 3. Brownstone Restaurant & Bar, 313 Main Ave. 4. Cubby‘s Sports Bar & Grill / GDT Inc., 307 Main Ave. 5. Danny‘s / David Olson Inc., 703 Main Ave. So. 6. BPO Elks/ Brookings Lodge #1490, 516 4th St. 7. Fireside Inc., 2515 E. 6th St. 8. Jim‘s Tap, 309 Main Ave. 9. Half Pint Enterprise Inc. / Lantern Lounge, 303 3rd St. 10. 9 Bar Nightclub (Nine Inc.), 303 Main Ave. 11. Old Market Eatery, LLC, 424 5th St. (utilizing Buffalo Wild Wings Bar & Grill License) 12. Park Hospitality, Inc., 2500 6th St. 13. Pheasant Café & Lounge, 726 Main Ave. So. 14. Prairie Lanes Inc., 722 Western Ave. 15. Ram & O‘Hare‘s Ent. LLC/The Ram, 327 Main Ave. 16. Ray‘s Corner / Fergen Enterprises Inc., 401 Main Ave. 17. Skinner‘s Pub Inc., 300 Main Ave. 18. B&L Sullivan Inc./Sully‘s Irish Pub, 421 Main Ave. 19. GEO Dokken Post 2118/VFW, 520 Main Ave.; Liquor (Off-Sale) 1. Brookings Municipal Liquor Store, 780 22nd Ave. So. Wine (On-Off Sale) 1. BraVo‘s Inc., 610 Medary Ave. 2. Brookings Municipal Liquor Store, 780 22nd Ave. So 3. CHS, Inc. (Cenex Station), 1005 6th St. 4. Cottonwood Bistro, 1710 6th St. 5. Guadalajara, 1715 6th St., Suite F 6. Hy-Vee Food Store, 700 22nd Ave. 7. Old Sanctuary, 928 4th St. 8. Skinner‘s Pub Inc., 300 Main Ave. 9. Swiftel Center, 824 32nd Ave. 10. Taste of Europe, 1300 Main Ave. So. 11. Wal-Mart Supercenter #1538, 2233 6th Street City of Brookings November 22, 2011 36 SDCL 35-2-6.2 provides the ―character‖ requirements for alcoholic beverage licensees: ―Any license under this title…must be a person of good moral character, never convicted of a felony, and, if a corporation, the managing officers thereof must have like qualifications.‖ Procedure for issuance of licenses: Procedurally, SDCL 35-2-3 provides that ―no license for the on or off-sale at retail of alcoholic beverages…shall be granted to an applicant for any such license, except after public hearing, upon notice.‖ SDCL 35-2-5 provides the procedure for the time and place of hearing and for publication of notice. If an application for a license is refused, ―no further application may be received from a person until after the expiration of one year from the date of a refused application.‖ City Ordinances: Listed below is Chapter 5, Article 2, Section 5-20 of the City Code of Ordinances pertaining to Application Review Procedure. The City Council shall review all applications submitted to the City for available On-Sale Alcoholic Beverage Agreements and for On-Sale Malt Beverage and Wine Licenses in accordance with SDCL 35-2 and in accordance with the following factors: a) Type of business which applicant proposes to operate: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold unless it can be established that minors do not regularly frequent the establishment. b) The manner in which the business is operated: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to establishments which are operated in a manner which results in minors regularly frequenting the establishment. c) The extent to which minors are employed in such a place of business: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold and which regularly employ minors. d) The adequacy of the police facilities to properly police the proposed location: The City Council shall inquire of the Police Chief whether the Police Department can adequately police the proposed location. e) Other factors: The hours that business is conducted shall be considered by the City Council in its review of applications for on-sale alcoholic beverage operating agreements and on-sale malt beverage and wine licenses Summary: SDCL and case law support the premise that the decision to issue an alcoholic beverage license is discretionary. The City can assess the character of the applicant and whether the location is suitable. A person convicted of a felony is prohibited from applying for a license; therefore, a convicted felon would fail the character test. In determining suitable location, the Council may involve the determination of whether the location is suitable consistent with the procedure developed through South Dakota Case Law. This includes the manner in which the business is operated; the extent to which minors frequent or are employed in such place of business; the adequacy of the police facilities to properly police the proposed location, and other factors associated with the sale of alcoholic beverages. City of Brookings November 22, 2011 37 CONSENT AGENDA #4 F. Action on Resolution No. 132-11, a Resolution authorizing the City Manager to sign a midterm renewal / Liquor Operating Agreement for the Ram & O‘Hare‘s Eng. LLC/The Ram. The City of Brookings enters into Liquor Operating Agreement for a ten-year period with a renewal at five years. The Operating Agreement for the Ram & O‘Hare‘s Eng., LLC / The Ram, located at 327 Main Avenue, is at the five-year point in the 10-year Agreement. Resolution No. 132-11 would allow the City Manager to enter into the remaining five years of the agreement. Resolution No. 132-11 The Ram & O‘Hare‘s Eng LLC / The Ram Operating Agreement Renewal – Liquor Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Renewal Agreement for the Operating Liquor Management Agreement between the City of Brookings and Jim & Tammy Young, for the purpose of a liquor manager to operate the on-sale establishment or business for an on behalf of the City of Brookings at 327 Main Avenue, also known as The Ram & O‘Hare‘s. Be It Further Resolved that the City Manager be authorized to execute the Agreement on behalf of the City, which shall be for a period of five years. Passed and approved this 22nd day of November, 2011. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings November 22, 2011 38 CONSENT AGENDA #4 G. Action on Resolution No. 133-11, a Resolution authorizing Change Order No. 1 for 2011-03BLD Airport Building Addition Project, Clark Drew Construction (deduct). The 2011-03BLD Airport Building Addition Project with Clark Drew Construction entails work for the general construction of a 30‘ x 46‘ addition to the west side of the City of Brookings Airport Rescue & Fire Fighting building located at 509 West 2nd Street South. This project was bid as a lump sum project and involves earthwork, cast in place concrete, rough carpentry, overhead metal doors, asphalt shingles, siding, floor drains, and electrical work. The new garage bay will house the Airport snow removal equipment, which is currently stored in the Airport‘s storage shed located outside of airport property on the north side of 2nd Street South. The building addition was designed with a 24 gauge interior wall liner paneling. After researching the liner panel, it was found the 29 gauge liner panel, which was called for in the specifications, is a heavy gauge typically used for building exteriors. City staff recommends installing the 29 gauge liner panel, which is the typical interior gauge, and allows for a cost savings of $4,423.00 to the contract. The summary is the following: Original Contract Price: $93,000.00 Change from Previously Approved Change Orders (No. 1): $0.00 Contract Price Prior to this Change Order: $93,000.00 Decrease of this Change Order (No. 1): $4,423.00 Contract Price incorporating this Change Order: $88,577.00 The liner panel substitution was described in the bid award memo for this project to bring the construction cost closer to the budgeted amount of $80,000. The current airport budget will be able to cover the cost of this project with funds left over from the runway crack repair and painting improvements completed earlier this year. This resolution will approve Change Order No. 1 (CCO #1) for a decrease of $4,423.00 to the contract. City of Brookings November 22, 2011 39 Resolution No. 133-11 Resolution Authorizing Changer Order No. 1 for 2011-03BLD Airport Building Addition Project Clark Drew Construction Be it Resolved by the City Council that the following change order be allowed for 2011-03BLD Airport Building Addition Project: Construction Change Order Number 1 Adjust contract to change wall liner panel from 24 gauge to 29 gauge for a total decrease of $4,423.00 to the contract. Passed and approved this 22nd day of November 2011. CITY OF BROOKINGS ________________________________ Tim Reed, Mayor ATTEST: _________________________ Shari Thornes, City Clerk City of Brookings November 22, 2011 40 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 November 22, 2011 41 Open Forum 6. Recognition of local Governor‘s Awards Nominees. The Governor‘s Award is a program that recognizes individuals and employers for their contributions to the rehabilitation and employment of persons with disabilities in South Dakota. The Brookings Committee for People who have Disabilities and Brookings NDEAM (National Disability Employment Awareness Month) Committee are nominating the following for the 2012 Governor’s Awards:  The Brookings Humane Society has been nominated for Outstanding Small Private Employer.  The Days Inn has been nominated for Outstanding Small Private Employer.  The United Retirement Center has been nominated for Outstanding Large Private Employer. Nominations are then submitted to the Board of Vocational Rehabilitation for statewide competition for the Governor‘s Awards. Final selection for these awards will be made by the Board in March 2012. Award Categories: • OUTSTANDING EMPLOYEE WITH A DISABILITY: This award is given to an employee with a disability in recognition of outstanding achievements in competitive employment by overcoming a disability as well as providing inspiration for other individuals with disabilities (includes individuals who are self-employed). • OUTSTANDING CITIZEN WITH A DISABILITY: This award is given to an individual with a disability in recognition of outstanding achievements in overcoming a disability and for the promotion of independent living and employment opportunities for other individuals with disabilities. • OUTSTANDING EMPLOYER: These awards are offered for outstanding achievement in improving employment opportunities for persons with disabilities: small private employer (non-government); large private employer (non-government); or public employer (local, county, City of Brookings November 22, 2011 42 state or federal governmental entity, school district, university) of any size. • DISTINGUISHED SERVICE: This award is given to an individual or organization (public or private) in recognition of extraordinary contributions to advancing the empowerment and employment of people with disabilities. Individual or organization should have contributions spanning 10 or more years. • OUTSTANDING TRANSITION SERVICES: This award is given to an individual or organization (public or private) in recognition of extraordinary contributions to providing and developing a transition program to assist students with disabilities as they transition from school to the adult system. The individual or organization should have contributions spanning five or more years. City of Brookings November 22, 2011 43 MAYORAL PROCLAMATION CITY OF BROOKINGS, SOUTH DAKOTA WHEREAS, The Brookings Regional Humane Society has been nominated for Outstanding Small Private Employer, because of their efforts to work with people with disabilities; and WHEREAS, This award is given in recognition of private employers who have successfully incorporated employees with disabilities into their business; and WHEREAS, The Brookings Regional Humane Society has provided numerous opportunities for all persons with disabilities over the years; and WHEREAS, The Brookings Regional Humane Society has demonstrated commitment to ensuring the success of employees with disabilities, providing opportunities, work experience and skill development; and WHEREAS, The Brookings Regional Humane Society has recognized the need for employees to develop job related skills and has worked diligently with high school students, people with disabilities, and area service providers, for the benefit of all community members. NOW, THEREFORE I, Tim Reed, Mayor of the City of Brookings, State of South Dakota, do hereby proclaim: The Brookings Regional Humane Society as a Brookings‘ Nominee for Outstanding Small Private Employer to compete in the Board of Vocational Rehabilitation‘s statewide 2011 Governor‘s Awards. IN WITNESS WHEREOF, I have placed the Seal of the City of Brookings, State of South Dakota, this of 22th day of November, 2011. Tim Reed, Mayor City of Brookings November 22, 2011 44 MAYORAL PROCLAMATION CITY OF BROOKINGS, SOUTH DAKOTA WHEREAS, The Days Inn has been nominated for Outstanding Small Private Employer, because of their efforts to work with people with disabilities; and WHEREAS, This award is given in recognition of private employers who have successfully incorporated employees with disabilities into their business; and WHEREAS, The Days Inn has provided numerous opportunities for persons with disabilities over the years; and WHEREAS, The Days Inn employs persons with disabilities by providing opportunities that increase experience and exposure, resulting in personal skill growth and development; and WHEREAS, The Days Inn management and staff works with service providers and demonstrates their commitment to the success of all employees and the local community. NOW, THEREFORE I, Tim Reed, Mayor of the City of Brookings, State of South Dakota, do hereby proclaim: The Days Inn as a Brookings‘ Nominee for Outstanding Small Private Employer to compete in the Board of Vocational Rehabilitation‘s statewide 2011 Governor‘s Awards. IN WITNESS WHEREOF, I have placed the Seal of the City of Brookings, State of South Dakota, this of 22th day of November, 2011. Tim Reed, Mayor City of Brookings November 22, 2011 45 MAYORAL PROCLAMATION CITY OF BROOKINGS, SOUTH DAKOTA WHEREAS, The Governor‘s Award for Outstanding Large Private Employer is given to a public employer who has demonstrated outstanding commitment to improving employment opportunities for people with disabilities; and WHEREAS, United Retirement Center has hired and employed large numbers of people with disabilities and has held the belief that individuals with disabilities are entitled to the same opportunities to utilize their talents and succeed in their chosen careers; and WHEREAS, United Retirement Center has worked in the community to provide support to individuals with disabilities to ensure their success in employment including on the job training and job coaching; and WHEREAS, United Retirement Center has gone above and beyond to impact the lives of persons with disabilities. They regard people as family, and continue to make a difference not only in the lives of their residents and community, but also in the lives of their employees with and without disabilities; NOW, THEREFORE I, Tim Reed, Mayor of the City of Brookings, State of South Dakota, do hereby proclaim: United Retirement Center as a Brookings‘ Nominee for Outstanding Large Private Employer to compete in the Board of Vocational Rehabilitation‘s statewide 2011 Governor‘s Awards. IN WITNESS WHEREOF, I have placed the Seal of the City of Brookings, State of South Dakota, this of 22th day of November, 2011. Tim Reed, Mayor City of Brookings November 22, 2011 46 Open Forum 7. 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. 8. 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 November 22, 2011 47 First Readings** 9. Ordinance No. 21-11: Budget Amendment #2: An Ordinance Entitled ―An Ordinance authorizing a supplemental appropriation to the 2011 Budget for the purpose of providing for additional funds for the operation of the City. Second Reading: December 13th **No vote is taken on the first reading of an Ordinance. The title of the Ordinance is read and the date for the public hearing is announced. Budget Amendment #2 for 2011 will increase General Fund revenues by $877,369, and increase expenditures by $183,369. The increased revenue of $877,369 in the General Fund is created by the closing of the Industrial Land Fund and moving the funds into the General Fund, as previously discussed during the 2012 budget meetings. Revenue is also being transferred in from the 25% Sales and Use Tax to fund the construction of the new garage at the new City/County Administration property. There are other revenues being adjusted that are either over or under the 2011 budgeted amount and are being adjusted accordingly. The additional $183,369 in expenditures includes the additional expenditure for building the garage, an increase in pay for special meetings, legal payment associated with the liquor license appeal, gasoline price increases, utility rate increases, multiple retirements, and multiple repair issues at the Larson Ice Arena. The Larson Ice Arena experienced the following unforeseen expenses: heater repair and controls ($2,000), air unit repair ($2,000), boiler repair ($4,200), repair and replacement of the compressor system ($14,500), for a total cost of $22,700. In addition, the utility bill was impacted significantly because we lost the ice twice due to equipment failure. We are reducing both the revenue and the expenditures within the Special Revenue Funds. The Bike Trail Project will be closed out, and excess funds in the amount of $148,569 transferred into the Public Improvement Fund. The Special Assessment Fund and the Storm Drainage Fund have projects City of Brookings November 22, 2011 48 which are not being done in 2011. We are designing 20th Street South, 25th Avenue, and 32nd Avenue in 2011 with construction to be done in 2012. The South Main Storm Sewer Project will not be built in 2011. The Pheasants Nest Storm Drainage Project is being designed in 2011 and built in 2012. The Joint 911 Committee approved an emergency replacement of a voice recorder for dispatch. The Nature Park is receiving a transfer from the Landfill Fund to pay for lead clean up at the former Police Department Shooting Range. The Airport Funds are being adjusted to reflect what is actually received in grants and spent on improvements. Anticipated grants in 2011 amount to $440,000. The land purchase will not be done in 2011. We are amending the budget for the garage and the fence in the amount of $260,000. Other capital is being amended for $88,365 for the administrative record and the dual track environmental assessment. The runway improvements is being amended to $198,500 for the ALP Approach Survey, 404 Permit No Rise Study. City of Brookings November 22, 2011 49 Ordinance No. 21-11 An Ordinance Entitled ―An Ordinance authorizing a supplemental appropriation to the 2011 Budget for the purpose of providing for additional funds for the operation of the City.‖ Be It Ordained by the City of Brookings, South Dakota: Whereas, there is a need to adjust the budget to respond to the actual revenues and expenditures in fiscal year 2011, Whereas, the City Council approved Resolution No. 110-10 effective May 1, 2011 establishing special meeting compensation Whereas, it was necessary to make payment for legal expenses associated with the liquor license appeal, Whereas, the Parks Department experienced significant equipment failure at the Larson Ice Arena, Whereas, the utility rates and gasoline prices had significant increases, Whereas, the Joint 911 Committee approved the emergency purchase of equipment, Whereas, the Industrial Fund and the Bike Trail Project are being closed and remaining funds are being transferred, Whereas, the 25th Avenue and 20th Street South will be designed in 2011 and built in 2012, Whereas, the South Main Sewer Project will not be completed in 2011, Whereas, the Pheasants Nest Storm Drainage Project will not be completed in 2011, Whereas, the Nature Park Project required the hazardous waste cleanup of lead be done at the Police Department Shooting Range and the Landfill Fund will fund the cleanup, Whereas State Law (SDCL 9-21-7) and the City Charter (4.06 (a) permit supplemental appropriations provided there are sufficient funds and revenues available to pay the appropriation when it becomes due, Now, Therefore Be It Resolved by the City Council that the City Manager be authorized to make the following budget adjustments to the 2011 budget: Budget Amendment #2 Revenue Expense Policy & Administration 9,068 Non-Departmental 858,981 69,638 Public Safety 15,500 14,000 City of Brookings November 22, 2011 50 Public Works (19,500) Culture & Recreation 22,388 88,163 Appropriations 2,500 Total General Fund 877,369 183,369 25% Sales & Use Tax 12,502 108,362 75% Sales & Use Tax 148,569 (800,000) E-911 21,594 Industrial Lands 398,600 694,637 Special Assessments (800,000) (892,000) Storm Drainage (1,320,000) (1,460,000) Total Special Revenue Funds (1,721,400) (2,327,407) Nature Park 53,568 Bike Trail (6,156) 65,975 Total Capital Project Funds 47,412 65,975 Landfill 53,568 Total Landfill 53,568 This Ordinance is declared to be for the support of the municipal government and its existing public institutions and it shall be in full force and effect after its passage and publication. All Ordinances or parts of Ordinances in conflict herewith are hereby repealed. First Reading: November 22, 2011 Second Reading: December 13, 2011 Published: December 16, 2011 CITY OF BROOKINGS _________________________ Tim Reed, Mayor ATTEST: ____________________________ Shari Thornes, City Clerk Page 1 Budget Ordinance No. 21-11 Amendment #2 11/22/2011 By Function Original Amended Difference Account Number Department Description Detail Budget Budget 101-401-5-101-00 Mayor & Council Regular Pay Special Meetings $26,450 $31,950 $5,500 101-412-5-422-01 City Attorney Contracted Legal Value of Liquor License $0 $3,568 $3,568 Policy & Adm Expenses $9,068 101-000-6-700-04 Transfer In 25% S&U Tax Cityhall garage $108,362 $108,362 101-000-4-669-08 Workmens Comp Insurance Premium Disb $0 $56,619 $56,619 101-000-6-700-00 Transfer in from Industrial Closing special rev fund $0 $694,000 $694,000 Other & Nondepartmental Revenue $858,981 101-405-5-856-99 Contingency Park/Rec/Forestry Retirements/Ice Arena $225,118 $186,394 ($38,724) 101-417-5-911-03 Gen Gov Buildings Building/Structures Cityhall garage $0 $108,362 $108,362 Other & Nondepartmental Expense $69,638 101-421-4-441-08 Police Reimbursed Exp Reimbursements $6,000 $16,500 $10,500 101-421-4-555-00 Police Parking Fines Fines $40,000 $70,000 $30,000 101-422-4-661-10 Fire Sale of Fixed Asset Engine 5 $50,000 $25,000 ($25,000) Public Safety Revenue $15,500 101-421-5-426-10 Police Gasoline Gasoline $60,000 $70,000 $10,000 101-422-5-426-10 Fire Gasoline Gasoline $12,000 $16,000 $4,000 Public Safety Expense $14,000 101-419-4-223-01 Engineering Building Permits Permit Fees $100,000 $80,500 ($19,500) Public Works Revenue ($19,500) 101-451-4-346-04 Recreation Aquatic Concessions Addn'l Revenue $27,500 $30,675 $3,175 101-451-4-441-08 Recreation Pool Fees Addn'l Revenue $150,000 $165,448 $15,448 101-454-4-441-08 Forestry Reimb Expenses Reimb Exp $0 $3,765 $3,765 Recreation & Forestry Revenue $22,388 101-451-5-101-00 Recreation Regular Pay 2 Retirements $281,400 $298,510 $17,110 101-452-5-101-00 Parks Regular Pay Adj previous amend $398,442 $391,051 ($7,391) 101-452-5-425-04 Parks Maintenance Equip Larson Ice Arena $30,000 $54,000 $24,000 101-452-5-428-02 Parks Utilities Electric & Water $150,000 $185,000 $35,000 101-452-5-920-00 Parks Equipment Bike racks-Cultural Center $960 $960 101-454-5-101-00 Forestry Regular Pay 2 Retirements $234,970 $253,454 $18,484 Parks & Recreation & Forestry Expense $88,163 101-495-5-856-49 4th of July Fireworks Increase Subsidy Uncle Sam Jam $10,000 $12,500 $2,500 Appropriations/Subsidies $2,500 Total General Fund Revenue $877,369 Total General Fund Expense $183,369 Balance to be assigned for Industrial Land $694,000 212-000-4-441-08 25% Sales & Use Wildfire Reimb $2,920 $15,422 $12,502 25% Sales & Use Revenue $12,502 212-000-7-899-00 25% Sales & Use Transfer to GF Cityhall garage $1,146,418 $1,254,780 $108,362 25% Sales & Use Expense $108,362 213-000-6-700-16 75% Sales & Use Transfer in Close bike trail project $0 $148,569 $148,569 75% Sales & Use Revenue $148,569 213-000-7-899-00 75% Sales & Use Transf/Special Assmnt Sewer Main $800,000 $0 ($800,000) 75% Sales & Use Expense ($800,000) Page 2 Budget Ordinance No. 21-11 Amendment #2 11/22/2011 By Function Original Amended Difference Account Number Department Description Detail Budget Budget 214-000-5-920-000 E-911 Capital-equipment Voice Recorder $0 $21,594 $21,594 E-911 Expense $21,594 278-000-4-664-00 Sale of Fixed Assets Land Sales $0 $388,995 $388,995 278-000-4-848-12 Rentals Rent $11,500 $21,105 $9,605 Industrial Land Development Revenue $398,600 278-000-5-701-00 Industrial Park Cost of land sold $361 $998 $637 278-000-7-899-00 Industrail Park Transfer out GF Closing fund $0 $694,000 $694,000 Industrial Land Development $694,637 280-000-6-700-20 Special Assessment Transfer In S& U tax S Main Sewer $800,000 $0 ($800,000) Special Assessment Revenues ($800,000) 280-000-5-960-00 Special Assessment Design 20th Street South $310,000 $20,000 ($290,000) 280-000-5-960-00 Special Assessment Design 25th Ave $32,000 $32,000 280-000-5-960-00 Special Assessment Extra width/thickness $166,000 $166,000 280-000-5-960-00 Special Assessment S Main Sewer $800,000 $0 ($800,000) Special Assessment Expenditures ($892,000) 282-000-4-663-50 Storm Drainage Proceeds SRF Loan Pheasants Nest $1,400,000 $80,000 ($1,320,000) Storm Drainage Revenues ($1,320,000) 282-000-5-422-03 Storm Drainage Consulting/Engineering $170,000 $122,000 ($48,000) 282-000-5-425-04 Storm Drainage Maintenance guard rails $60,000 $70,000 $10,000 282-000-5-980-00 Storm Drainage Improvements $1,610,000 $140,000 ($1,470,000) Storm Drainage Expense ($1,508,000) Total Special Revenue Funds Revenue ($1,560,329) Total Special Revenue Funds Expense ($2,375,407) 519-000-6-700-02 Transfer in Landfill Lead Clean up Old Fire Range $53,568 Nature Park Revenue $53,568 550-000-4-334-09 Bike Trail 2010 bal Grants $70,696 $64,540 ($6,156) Bike Trail Revenues ($6,156) 550-000-5-940-00 Bike Trail 2010 bal Improvement $170,000 $87,406 ($82,594) 550-000-7-899-20 Transfer out 2nd Penny Close out project balance transferred $0 $148,569 $148,569 Bike Trail Expenses $65,975 Total Capital Project Funds Revenue $47,412 Total Capital Project Funds Expense $65,975 606-000-4-334-09 Airport Grants Capital improvements $1,006,095 $440,000 ($566,095) Airport Revenues ($566,095) 606-000-5-101-00 Airport Regular Pay Adjusting $99,120 $90,620 ($8,500) 606-000-5-123-00 Airport Group Insurance Adjusting $6,065 $14,565 $8,500 606-000-5-426-03 Airport General Supplies Adjusting $4,774 $3,774 ($1,000) 606-000-5-426-13 Airport Diesel Adjusting $8,100 $9,100 $1,000 606-000-5-911-00 Airport Buildings Garage & Fencing only $880,000 $260,000 ($620,000) 606-000-5-940-00 Airport Other Capital Adm record/Dual Track $0 $86,365 $86,365 606-000-5-970-00 Airport Runway Improvements ALP survey/404 permit $41,200 $239,700 $198,500 Airport Expenses ($335,135) Page 3 Budget Ordinance No. 21-11 Amendment #2 11/22/2011 By Function Original Amended Difference Account Number Department Description Detail Budget Budget Total Airport Revenue ($566,095) Total Airport Expenses ($335,135) 625-000-7-899-23 Transf Out-Nature Park Lead clean up Fire Range $53,568 Landfill Expenses $53,568 City of Brookings November 22, 2011 54 First Readings** 10. Ordinance No. 23-11: An Ordinance of the City of Brookings, South Dakota, amending Ordinance No. 22-05, Establishing the Retail Economic Development Investment Committee Fund, providing for its funding; providing for its use and providing for its Rules and Regulations. Second Reading: December 13th **No vote is taken on the first reading of an Ordinance. The title of the Ordinance is read and the date for the public hearing is announced. Ordinance No. 22-05 was established to provide funds for economic development. We established a special revenue fund in 2005, called the Retail Development Fund. GASB 54 rules require a significant revenue stream, which this fund does not have. We are recommending amending the ordinance creating the ability to have a committed fund balance within the General Fund which meets the requirements of GASB 54. This action leaves in place the original funding, use, and rules and regulations established in 2005 by Ordinance No. 22-05. NOTE: On October 25th, the City Council had first reading of Ordinance No. 18-11, which would have completely repealed Ordinance No. 22-05. However, after reviewing the ordinance it became evident we would like to maintain the ability to provide for the funding of economic development and still meet the requirements of GASB 54. Council action is needed to terminate second reading on Ordinance No. 18-11 and will be handled under agenda Item #13. City of Brookings November 22, 2011 55 Ordinance No. 23-11 An Ordinance of the City of Brookings, South Dakota, amending Ordinance No. 22-05 Be It Ordained by the City Council of the City of Brookings, South Dakota as follows: Section 1. Amend Ordinance No. 22-05 to read as follows: Establishing the Retail Economic Development Investment Committed Fund Balance, providing for its funding; providing for its use and providing for its rules and regulations Be It Ordained by the City Council of the City of Brookings, South Dakota as follows: Section 1. Establishment and purpose. A. There is hereby established a special special committed fund balance to be known as the retail economic development investment committed fund balance. The purpose of said committed fund balance shall be to provide funds from the City to further the economic development goals of the City by providing financial investment in projects which attract retail enterprises that City Council determines will further the accomplishment of the City's economic development goals. The retail economic development goals of the program include efforts to expand the City's tax base, promote development that will enhance the physical and economic environment of the City, provide permanent jobs and skilled labor availability, services, and products within the City thereby improving employment opportunities for the residents of the City of Brookings, foster revitalization of physically deteriorating areas or buildings, promote development that will have a net positive impact on City revenues, and produce a positive impact upon the community as a whole. B. The granting of financial investment is determined to be a public purpose. Specifically, such investment protects the public welfare by promoting and fostering the growth of the City's economic base which in turn has positive effects by generating jobs, increasing the tax base, services and products produced by the private sector, encouraging and providing for the vitality of residential areas and of commercial and industrial businesses within the City, as well as providing increased opportunities for employment for the residents of the City and enabling the City to carry forward its functions in the preservation of the health, safety and welfare of the citizens and residents of the City, all of which have a net positive impact on City revenues, and, in general, improve the quality of life in the City. C. The City Council specifically finds and determines that creation of the committed fund balance for retail economic development investments fund fund is consistent with the City's powers as a home rule municipal corporation and that exercise of said powers in the manner set forth herein is in furtherance of the public health, safety and welfare of the City of Brookings November 22, 2011 56 City. The City Council finds, determines, and declares that this ordinance is promulgated under the general police power of the City of Brookings, that it is promulgated for the health, safety and welfare of the public, and that the ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the ordinance bears a rational relation to the proper legislative object sought to be attained. Section 2. Definitions. For the purpose of this Ordinance, the following words and terms shall be defined as follows: "City Manager‖ means the City Manager or his designee. "Committed Fund Balance" means the retail economic development investment committed fund balance created herein. Section 3. Funding. A. The committed fund balance may also be supplementally funded by City Council at its discretion from transfers from any other accounts of the City. B. The committed fund balance may also be loaned money from any other fund. The fund may also be funded by the proceeds of bonds or other obligations issued and secured by sales tax revenues imposed under 10-52. C. The committed fund balance may be funded by one or more of the methods found in A through C above. Section 4. Authorized expenditures. A. Money from the committed fund balance shall be used to provide grants and other financial investment for retail business enterprises located or to be located within the corporate limits of the City of Brookings, whose proposals for financial investment have been approved by the City Council. B. Such investment shall be granted under such terms and conditions as may be authorized by the City Council, pursuant to procedures described in Section 5 herein. C. For projects which involve the construction of physical public improvements, the amount of financial investment shall be related to the costs of constructing public improvements as determined necessary to support the development project the applicant is undertaking. The City may pay for all, or only a portion, of said public improvements, at its complete discretion. D. For projects which involve the revitalizations of physically deteriorating areas, the amount of financial investment shall be related to the actual costs of renovation and City of Brookings November 22, 2011 57 enhancement. The City may provide financial investment for some or all of said costs at its complete discretion. E. For projects described in Sections 4 (C) and (D), moneys from the committed fund balance shall be strictly limited to uses which are public or public-related in nature. For purposes of the committed fund balance, public or public-related purposes shall mean public improvements, including but not limited to streets, sidewalks, curbs, gutters, pedestrian malls, street lights, drainage facilities, landscaping, decorative structures, statuaries, fountains, identification signs, traffic safety devices, bicycle paths, off-street parking facilities, benches, restrooms, information booths, public meeting facilities, and all necessary, incidental, and appurtenant structures and improvements, together with the relocation and improvement of existing utility lines, and any other improvements of a similar nature which are specifically approved by the City Council upon the City Council's finding that said improvements are public or public-related improvements. F. The City Council may, in its discretion, accomplish the purposes outlined in this Ordinance in cooperation with other local, state or federal entities or agencies through direct or participatory funding mechanisms approved by the City Council. G. In addition to the projects specifically identified in this Ordinance, the City Council may authorize expenditures from the committed fund balance for projects which, in its judgment, advance the retail economic development goals of the City, projects include but are not limited to the purchase of real or personal property and the disposal or sale of such property at a price less than the purchase price, grants, economic studies, engineering studies, studies concerning the design and construction of public and public- related improvements and studies and activities related to the promotion of retail and attraction of new retail businesses into the City. Section 5. Procedural rules and regulations. The following procedure shall be followed in considering requests for investment from the committed fund balance: A. The City Manager shall analyze the request for conformance with the criteria established pursuant to this Ordinance. B. The City Manager shall forward the request to the City Council together with a recommendation regarding financial investment for the project, which shall include suggested terms of participation. C. The City Council may subsequently direct the City Manager to develop an agreement between the applicant and the City or a cooperating local, state or federal entity or agency which embodies such terms and conditions as the City Council deems appropriate for the disbursement of moneys from the committed fund balance. City of Brookings November 22, 2011 58 D. The Council may authorize, by resolution, the execution of an agreement or agreements on behalf of the City. E. The City Manager is authorized to promulgate administrative regulations to implement provisions contained herein applicable to the economic development committed fund balance. F. This procedure shall not be applicable if the City Council has previously budgeted and/or appropriated funds for programs or expenditures for the purposes described in this Ordinance, nor shall it be applicable to the grant, or investment, refunds or the waiver of reduction of fees found in other provisions of the Brookings Code of Ordinances. Adopted this 13th day of December 2011. First Reading: November 22, 2011 Second Reading and Adoption: December 13, 2011 Published: December 16, 2011 CITY OF BROOKINGS ________________________ Tim Reed, Mayor ATTEST: _________________________ Shari Thornes, City Clerk City of Brookings November 22, 2011 59 First Readings** 11. Ordinance No. 24-11: An Ordinance rezoning the east 140 feet of Outlot 2, excluding the north 40 feet thereof, in the NE ¼ of Section 1-T109N-R50W from an Agricultural A District to a Residence R-3 District. Public Hearing: December 13th **No vote is taken on the first reading of an Ordinance. The title of the Ordinance is read and the date for the public hearing is announced. Applicant: Anthony Harris Proposal: Rezone a parcel with a single-family dwelling to a high-density residential district. Background: The outlots in this area were platted when this land was in the county. The house on the east portion of the outlot was built in 1978. The city annexed about 480 acres in this general area in 1981. The undeveloped Ag zoned land that surrounds the outlots is under single ownership. The area is designated as future residential on the Future Land Use Map. Specifics: Moriarty-Edgebrook Addition on the north side of 20th Street South is zoned R-3. However, Pinehurst Drive was the dividing line between low-density to the west and medium to high-density to the east. The land further to the east of the petitioner‘s property is also zoned R-3. The adjoining property to the west contains a single-family dwelling on a one (1) acre plus lot. An R-3 designation on this lot would allow for high-density residential development and a ―standard‖ plan could accommodate about six (6) units. However, any use permitted in the R- 3 District is eligible. ADDENDUM: A map has been included that shows the platted and preliminarily platted land within a quarter mile or more of the petitioners‘ property. Outlots 2 and 3 are your standard one (1) acre square lots that were commonly platted years ago along county roads. The land around these two (2) outlots was purchased in 1991 by a party who proceeded to build a house and horse barn in the northwest corner of the acreage. The current owner of the acreage has stated that he would not be developing the land himself. The current and future Bluegill Addition development plan has two (2) street extensions into the 35 acre parcel as shown. A development plan for this parcel will be required to match these street extensions. The layout will also have to be designed so that the outlots and owner‘s house are considered. The design would certainly be simplified if the outlots were eliminated and the house and barn relocated but that is an issue most communities face as they expand. City of Brookings November 22, 2011 60 The acreage to the east is already zoned for high-density residential, but no recent plans have been submitted for development. As development plans are proposed for the two large parcels, street coordination will be a key element since a unified development plan is not likely. Some considerations regarding this request are as follows:  High-density residential development has already occurred along 20th Street South in this area. If an I-29 overpass is realized in the future, 20th Street South will see a substantial increase in traffic primarily in this area since the traffic will not have dispersed to any degree. This would make the land abutting the street less attractive for low density residential uses.  The location of Outlot 2 impacts the continuation of Pinehurst Drive to the south. If rezoned, the development potential for this outlot could guarantee its existence for many years to come. However, keep in mind that an intersection alignment is not mandated in this area by the Major Street Plan. Recommendation: The Planning Commission tabled this request at their October meeting. The motion to approve was defeated by a vote of 0 yes and 5 no at the November meeting. Therefore, the recommendation is to deny the rezoning. City of Brookings November 22, 2011 61 Ordinance No. 24-11 An Ordinance to Change the Zoning within the City of Brookings: Be It Ordained by the City of Brookings, South Dakota: Section 1. That the real estate situated in the City of Brookings, County of Brookings, State of South Dakota, described as follows, to-wit: The east 140 feet of Outlot 2, excluding the north 40 feet thereof, in the NE ¼ of Section 1-T109N-R50W be and the same is hereby rezoned and reclassified from an Agricultural A District to a Residence R-3 District In accordance with Section 94-7 of Article I of Ordinance 25-02 of the Code of Ordinances of Brookings, South Dakota, as said districts are more fully set forth and described in Articles III and IV, Chapter 94 of Ordinance No. 25-02 of the City of Brookings, South Dakota. Section 2. The permitted use of the property heretofore described be and the same is hereby altered and changed in accordance herewith pursuant to said Ordinance No. 25-02 of the City of Brookings, South Dakota. Section 3. All sections and ordinances in conflict herewith are hereby repealed. First Reading November 22, 2011 Second Reading and Adoption Published CITY OF BROOKINGS, SD ________________________ Tim Reed, Mayor ATTEST: _________________________ Shari Thornes, City Clerk City of Brookings November 22, 2011 64 Planning Commission Brookings, South Dakota November 1, 2011 OFFICIAL MINUTES Vice-chairperson Wayne Avery called the regular meeting of the City Planning Commission to order on November 1, 2011, at 7:00 PM in the Council Chamber at City Hall. Members present were Hal Bailey, Greg Fargen, Alan Gregg, John Sydow, and Avery. Mike Cameron, Donna DeKraai, Al Heuton, and John Gustafson were absent. Others present were Keith Rounds, Craig Fairbanks, Dick Smith, Leroy Kruse, Jim Welsh, Amy Stoel, Dave Owens, Mike McClemans, Community Development Director Mike Struck, City Engineer Jackie Lanning, Planning and Zoning Administrator Dan Hanson, and others. Item #4 - Anthony Harris has submitted a petition to rezone the east 140 feet of Outlot 2, excluding the north 40 feet thereof, in the NE¼ of Section 1-T109N-R50W from a class Agricultural A District to a class Residence R-3 District. (Gregg/Sydow) Motion to take the motion from the table. All present voted aye. MOTION CARRIED. The motion was voted on. All present voted no. MOTION FAILED. SUMMARY OF DISCUSSION Item #4 – The petitioner was not present at the meeting. Craig Fairbanks, an adjacent property owner, opposed the request. He felt the property should stay the same as the current use which was a single-family dwelling. He said a change could negatively impact his land. City of Brookings November 22, 2011 68 Sec. 94-127. RESIDENCE R-3 APARTMENT DISTRICT (a) Intent. This district is intended to provide for areas of residential use with a gross density of seven to twenty-four dwelling units per acre. This district provides for single-family, two-family, apartments, condominiums, townhouses, fraternities and sororities plus support facilities such as schools, parks, churches and community and public buildings. (b) Scope of Regulations. The regulations set forth in this section or set forth elsewhere in this title, when referred to in this section, are the district regulations of the Residence R-3 Apartment District. (c) Permitted Uses. 1. Single-family dwelling including accessory uses incidental thereto such as private garages, parking areas, etc. 2. Two-family dwelling including accessory uses incidental thereto such as private garages, parking areas, etc. 3. Single-family zero (0') side yard dwelling 4. Apartment or condominium 5. Townhouse 6. Fraternity and sorority 7. Family day care (d) Permitted Special Uses. A building or premises may be used for the following purposes in conformance with the conditions prescribed herein: 1. All permitted special uses and conditions as stated in Section 94-124(d)(R-1A). 2. All permitted special uses and conditions as stated in Section 94-125(d)(R-1B) excluding family day care. 3. All permitted special uses and conditions as stated in Section 94-126 (R-2), excluding single-family zero (0') side yard dwelling and family day care. 4. Day care facility. a. A 4-foot high transparent fence shall be constructed between the play area and the street when the play area is adjacent to any arterial or collector street. b. A safe pick-up and drop-off area shall be provided. 5. Retirement or nursing home. a. Parking areas shall be screened from adjacent residential properties by a four (4) foot high fence or equivalent landscaping. 6. Group home. a. Applicants shall provide statements as to the type of supervision the home will have. 7. Domestic abuse shelter. a. All parking shall be provided on the premises. (e) Conditional Uses. 1. Public recreation facility 2. Non-municipal library, museum, art gallery, community center, private club or lodge 3. Major home occupation 4. Vocational or trade school 5. Office 6. Bed and breakfast (f) Density, Area, Yard and Height Regulations: The R-3 district regulations shall be as follows: Per Min. Min. Min. Min. Min. Max. City of Brookings November 22, 2011 69 Unit Lot Lot Front Side Rear Height Density Area Width Yard Yard Yard Sq.Ft. Sq.Ft. Single-Family Dwelling 6,000 50' 20' 7' 25' 35' Two dwelling Units 8,400 65' 20' 7' 25' 35' SF Attached 0' Sideyard 9,600 75' 20' 0' or 7' 25' 35' 2 Units on non-party wall 3 Units 12,000 90' 20' 0' or 7' 25' 35' on non-party wall 4 Units 14,000 105' 20' 0' or 7' 25' 35' on non-party wall Apts., Condos, Townhouses* (3 or more Units) 1,815** 10,000 75' 20' 7'*** 25' 45' Per Min. Min. Min. Min. Min. Max. Unit Lot Lot Front Side Rear Height Density Area Width Yard Yard Yard Sq.Ft. Sq.Ft. Other Allowable Uses 6,000 50' 20' 7'*** 25' 45' *Three hundred (300) square feet of landscaped area shall be provided for each dwelling unit exclusive of required building setback areas, access drives and parking lots. Two thirds (2/3) of the landscaped area shall be located in a continuous, single tract which contains no portions thereof which are not contiguous, adjacent and abutting to either the entire width or entire length of said tract. 50% of the required landscaped area may be used for parking spaces in excess of the minimum requirement. Parking lots shall be screened from single and two-family residential uses according to Section 94-401. **A maximum of 24 dwelling units per acre shall be allowed. ***The sideyard will be required to be increased to 10 feet when the building is 3 or more stories in height. Density per family requirements shall not apply to dormitories, fraternities, sororities, nursing homes o r other similar group quarters where no facilities are provided in individual rooms. (g) Accessory Uses. Accessory uses and building permitted in the R-3 District are buildings and uses customarily incidental to any of the permitted uses in the district. (h) Parking Regulations. Parking, loading and stacking within the R-3 District shall be in conformance with the regulations set forth in division 4 of article VI of this chapter (i) Sign Regulations. Signs within the R-3 District shall be in conformance with the regulations set forth in division 5 of article VI of this chapter (j) Other Regulations. Development within the R-3 District shall be in conformance with the regulations set forth in article II of this chapter City of Brookings November 22, 2011 70 First Readings** 12. Ordinance No. 25-11: An Ordinance rezoning Block 2 and Lots 1- 12 of Block 3, Legeros Addition from a Residence R-2 District to a Residence R-1C District. Public Hearing: December 13th **No vote is taken on the first reading of an Ordinance. The title of the Ordinance is read and the date for the public hearing is announced. Applicants: 18 residents in Legeros Addition neighborhood Proposal: Downzone an established neighborhood Background: A group of neighbors submitted individual petitions to rezone their property. The location of these properties is shown in red on the enclosed zoning map excerpt. The primary goal of the petitioners is to be zoned under the R-1C regulations which requires a two-family dwelling by conditional use only and also requires a greater minimum lot frontage and lot area as a prerequisite for obtaining two-family status. It is usually appropriate to establish a focus area in situations such as these and examine the pertinent data. Specifics: Data on the focus area is as follows: 18 of the 28 property owners have petitioned to rezone Two (2) of the 28 properties are currently used as duplexes Two (2) of the 28 properties are single-family rentals Ten (10) of the 28 properties are currently eligible for duplex status (includes two {2} duplexes from #2 above) under R-2 regulations None of the properties would be eligible for duplex status under the R-1C regulations (if rezoned, duplexes in #2 above could continue their use) ADDENDUM: This request generated a significant amount of debate at the last meeting. Some of the testimony was relevant and some was not. A rezoning will create a more restrictive district regarding permitted uses and will substantially restrict the potential for changes of use from single-family dwellings to two-family dwellings. It does not affect whether a property is rented or owner-occupied, has unruly or loud occupants, or how fast residents drive down an alley. The entire focus area on the previous map is part of the public notice at this meeting (6.67 acres). In my opinion, support from outside the focus area was not organized enough to warrant an expansion of the R-1C District at this time. Recommendation: The Planning Commission voted 4 yes and 1 no on the motion to approve the rezoning petition. City of Brookings November 22, 2011 71 Ordinance No. 25-11 An Ordinance to Change the Zoning within the City of Brookings Be It Ordained by the CityoOf Brookings, South Dakota: Section 1. That the real estate situated in the City of Brookings, County of Brookings, State of South Dakota, described as follows, to-wit: Block 2 and Lots 1-12 of Block 3, Legeros Addition be and the same is hereby rezoned and reclassified from a Residence R-2 District to a Residence R-1C District In accordance with Section 94-7 of Article I of Ordinance 25-02 of the Code of Ordinances of Brookings, South Dakota, as said districts are more fully set forth and described in Articles III and IV, Chapter 94 of Ordinance No. 25-02 of the City of Brookings, South Dakota. Section 2. The permitted use of the property heretofore described be and the same is hereby altered and changed in accordance herewith pursuant to said Ordinance No. 25-02 of the City of Brookings, South Dakota. Section 3. All sections and ordinances in conflict herewith are hereby repealed. First Reading November 22, 2011 Second Reading and Adoption Published CITY OF BROOKINGS, SD ________________________ Tim Reed, Mayor ATTEST: _________________________ Shari Thornes, City Clerk City of Brookings November 22, 2011 72 NOTICE OF HEARING UPON PETITION TO REZONE NOTICE IS HEREBY GIVEN That the City of Brookings has submitted a petition to rezone the following described real estate in the City of Brookings, in Brookings County, South Dakota: Block 2 and Lots 1 – 12, Block 3, Legeros Addition, from a Residence R-2 District to a Residence R-1C District NOTICE IS FURTHER GIVEN That said request will be acted on by the City Planning Commission at 7:00 PM on Tuesday, November 1, 2011, in the Council Chamber in the lower level of City Hall, 311 3rd Avenue, Brookings, South Dakota. Any action taken by the City Planning Commission is a recommendation to the City Council. Any person interested may appear and be heard in this matter. Dated this 21st day of October 2011. ____________________________ Dan Hanson Planning & Zoning Administrator C:\Documents and Settings\bfoster\Local Settings\Temporary Internet Files\Content.Outlook\LMQLUXS6\11 legeros mailing listdoc.doc Block 2 Brant Kreyger 222 14th Avenue Timothy Wheelborg 1406 3rd Street (328 Hickory Street) James Patrick 1412 3rd Street (17358 447th Avenue Watertown, SD 57201) Robert Munson 1414 3rd Street Richard Smith 1416 3rd Street Leroy Kruse 1500 3rd Street (106 Washington Road Volga, SD 57071) Robert Stohr 1502 3rd Street Robert Runge 1506 3rd Street Robert Brandwein 1510 3rd Street Amal Yekur 1514 3rd Street (2420 Cattleman Drive Brandon, FL 33511) Colburn Family Trust 1403/1405 2nd Street (1603 7th Street) Timothy Lease 1411 2nd Street Terrence McKeown 1415 2nd Street Elizabeth Sanderson 1417 2nd Street Amy Thornton 1423 2nd Street (1724 15th Street So.) Duane Rykhus 1427 2nd Street (2206 42nd Street) Monte Harming 1431 2nd Street David Buschenfeld 1433 2nd Street (19428 470th Avenue Estelline, SD 57234) Shelly Palm 209 16th Avenue Allen Jager 1437 2nd Street Block 3 Jared Gass 1402 2nd Street Bradley Wermers 1408 2nd Street James Welch 1412 2nd Street Ronnie Siverhus 1418 2nd Street Allyn Dorn 1420 2nd Street Stephenson Family Trust 1432 2nd Street Steven Foerster 1438 2nd Street Kenwood Weeks 125 16th Avenue Surrounding Owners Christopher Anderson 1333 3rd Street Amy Busse 1335 3rd Street Allyn Frerichs 1343 3rd Street (21737 472nd Avenue) Darnall Rentals 310 14th Avenue (1100 8th Street South) James Matthew 1401 3rd Street Glenn Nordmeyer 1405 3rd Street Alice Alickson 1409 3rd Street Robert Trudeau 1413 3rd Street Patrick Ammann C:\Documents and Settings\bfoster\Local Settings\Temporary Internet Files\Content.Outlook\LMQLUXS6\11 legeros mailing listdoc.doc 1417 3rd Street Brookings Ind School Dist. 304 15th Avenue (1323 8th Street South) Andrew L’Amour 1332 3rd Street Thomas Roe 1340 3rd Street Bernice McMillan Trust 1344 3rd Street Elroy Streier 217 14th Avenue Wayne Nelson 1333 2nd Street Dennis Ruhlman 1339 2nd Street Winston Wolpert Trust 1345 2nd Street Robert Houtkooper 209 14th Avenue Helen Jones 1336 2nd Street Milo Potas 125 14th Avenue Gayle Chapel 1333 1st Street Bruce Pengra 1345 1st Street Bernadine Enevoldsen 220 16th Avenue Kelly Meyer 1612 3rd Street Vicki Bierschbach 216 16th Avenue Charles Schnabel 212 16th Avenue Charles Schnabel 212 16th Avenue Carrie Wallace 202 16th Avenue Sue Grant Living Trust 1605 Robin Road Stephen Pohl 1604 Robin Road Joseph Schulte 110 16th Avenue Chad Adamson 102 16th Avenue Current owner 1607 1st Street David Cartrette 1613 1st Street Philip Luze 108 14th Avenue Gary Waters 1403 1st Street Robert Walstrom 1409 1st Street (c/o FBT Box 5057) Edwin Hofer 1415 1st Street Lester Rowland 1419 1st Street William Purrington 1423 1st Street June Jones 1425 1st Street Megan McGee 1433 1st Street Dale Ulvestad 109 16th Avenue Dary Rentals 103 16th Avenue (323 22nd Avenue) City of Brookings November 22, 2011 75 Planning Commission Brookings, South Dakota November 1, 2011 OFFICIAL MINUTES Vice-chairperson Wayne Avery called the regular meeting of the City Planning Commission to order on November 1, 2011, at 7:00 PM in the Council Chamber at City Hall. Members present were Hal Bailey, Greg Fargen, Alan Gregg, John Sydow, and Avery. Mike Cameron, Donna DeKraai, Al Heuton, and John Gustafson were absent. Others present were Keith Rounds, Craig Fairbanks, Dick Smith, Leroy Kruse, Jim Welsh, Amy Stoel, Dave Owens, Mike McClemans, Community Development Director Mike Struck, City Engineer Jackie Lanning, Planning and Zoning Administrator Dan Hanson, and others. Item #5 - Petitions have been submitted to rezone the west 57.2 feet of Lot 1, the east 55 feet of Lot 4, all of Lots 5, 6, 8, 9, 11, 13, 16, 17, and 18, and the east 8.8‘ of Lot 19, in Block 2; and Lots 5 – 10 and the west 14 feet of Lot 11 in Block 3, all in Legeros Addition from a Residence R-2 District to a Residence R-1C District. (Gregg/Fargen) Motion to take the motion from the table. All present voted aye. MOTION CARRIED. (Fargen/Sydow) Substitute motion to rezone Block 2 and Lots 1 – 12, Block 3, Legeros Addition from a Residence R-2 District to a Residence R-1C District. All present voted aye except Bailey voted no. MOTION CARRIED. SUMMARY OF DISCUSSION Item #5- Dick Smith stated he supported the request to rezone and encouraged the Planning Commission to consider rezoning the entire area and not just the petitioners property. He recalled his comments from the October meeting and added that there was great support for the proposal and very little opposition. Jim Welsh, 1412 2nd Street, opposed the rezoning. He felt the proposal would create an isolated zone or spot zone in the R-2 District. He noted that only one house was constructed as a duplex in the neighborhood since the area was developed 50 years ago. Amy Stoel, 1423 2nd Street, opposed the rezoning. She felt most homes in the area were too expensive to be converted into duplexes, and the current zoning was adequate. Fargen remarked that rezoning only the lots that were owned by the petitioners would not be consistent or uniform. He favored rezoning an area that was consolidated. Gregg asked if other blocks in the community had more than one type of zoning. Hanson replied yes. City of Brookings November 22, 2011 76 TO: MAYOR AND CITY COUNCIL, CITY OF BROOKINGS, SD FROM: RICHARD L. SMITH RE: PROPOSED REZONE OF BLOCK 2 AND LOTS 1 THROUGH 12 OF BLOCK 3, LEGEROS ADDITION, BROOKINGS, SOUTH DAKOTA FROM R-2 to R-1C I, along with my wife, Judith A. Smith, are two of the Petitioners residing at 1416 Third Street, in the City of Brookings. In support of the Petition, I am offering the following information for your consideration. BRIEF HISTORICAL PERSPECTIVE The area under examination (Focus Area) consists of homes that were constructed mostly during the early 1950‘s into the 1960‘s. The greatest number of homes were designed and occupied as single family residences under Brookings City Zoning Ordinance R-2. Our home was built in the year 1950 and is fairly typical of most of the homes in the neighborhood. It was occupied as a single-family residence by the Tom Lyon family for about thirty-five years. Tom Lyon was the Postmaster in Brookings. The home was purchased by the Doug Dell family who occupied the it as a single-family residence for the period of twelve years. Doug was the manager of the HyVee grocery store in Brookings. My wife and I purchased the home in the year 2002 and have occupied it as a single-family residence. Most of the homes in the neighborhood have experienced similar circumstances. When we moved into the neighborhood, there was one nicely kept rental duplex existing at the northwest corner of Second Street and Fourteenth Avenue. There was one rental single-family residence located at 1412 third Street. Those two rental homes continue to house tenants to this day. One of our major considerations in selecting this home in this neighborhood was that it was composed primarily of single family dwellings and it appeared that the characteristic of the neighborhood as one of single family dwellings was likely to remain. RECENT DEVELOPMENTS Since we purchased the home in 2002, two homes have been converted into single- family rentals and one home has been converted to a two-family dwelling – main floor/basement. In addition, a home located along the north side of third street that had been owner occupied as a single family dwelling since the time of it‘s construction in the 1950‘s has been converted to a single-family rental. This home is not located in the area proposed for rezoning but is directly adjacent thereto. The demand for rental space in this area has increased recently largely due to the increase in the student population at SDSU and due to the purchase and demolition of many rental units along the south boundary of the SDSU campus to make way for a large parking lot. The students that were displaced by this development have sought accommodations elsewhere including the area proposed for rezoning. A large area adjacent to the south boundary of the SDSU campus is currently in the discussion stages for rezoning to allow commercial development. If this occurs dwelling units in that area will be displaced further driving students to seek rental accommodations elsewhere including within the proposed rezoning area. On August 20, 2009 a Hearing was conducted before the Brookings Board of Adjustment upon Application by a homeowner owning a single-family residence located within City of Brookings November 22, 2011 77 the proposed rezoning area. The Application requested a variance of the minimum lot width requirements of Zoning Ordinance R-2 so the homeowner could convert the residence to a two-family dwelling (main floor/basement). Twelve neighborhood homeowners appeared at the hearing in opposition to the request and none in favor except the homeowner applicant. The Application was denied. On June 2, 2011 another hearing was conducted by the Board of Adjustment as the result of a new Application filed by the same homeowner again requesting a variance of the lot width requirements to allow the residence to be converted to a two-family dwelling. The two Applications were identical. Once again, a strong showing by residents of the neighborhood in opposition and none in favor except the homeowner applicant resulted in the denial of the Application by the Board. Upon recommendation of the City Planning Commission, largely in response to the strong showing of homeowners residing in the proposed rezoning area the Brookings City Council on January 11, 2011 passed and adopted Zoning Ordinance R-1C. The Ordinance expands the lot area and width requirements for two family dwellings along with the per unit density square footage requirements that ease overcrowding in a neighborhood where duplexes and two family dwellings are prominent. The ordinance also establishes two family dwellings as a Conditional use thus allowing the residents of the neighborhood the opportunity to be heard, for or against, before a two family dwelling can be established. Encouraged by the new opportunity presented with the enactment of the new zoning ordinance R-1C, the owners of owner occupied single family homes located within the proposed rezoning area have presented eighteen petitions requesting that their properties along with all of the properties located within the proposed rezoning area be rezoned to the new R-1C designation. Those eighteen Petitions represent a vast majority of the owner occupied single-family homes in the area. The City Planning Commission approved the proposed rezoning of the area as requested by the Petitioners following a hearing thereon at the meeting the Commission conducted on Tuesday November 1, 2011 and has submitted its recommendation the City Council accordingly. ISSUE Whether the proposed rezone of the proposed rezoning area as requested by the Petitions (18) of the owner occupied single-family residents residing in the Area will promote the Purposes, Interpretation and intentions of the Zoning Ordinances of the City of Brookings as set forth within the City Comprehensive Plan and Chapter 94 of the City Zoning Ordinances. Sec. 94.2 – Purpose of chapter. (a) The zoning regulations and districts set forth in this chapter are based upon the Comprehensive Plan of the city, adopted February 11, 2002. (b) These zoning regulations are designed to implement the goals and objectives of the Comprehensive Plan, to lessen congestion in the streets, secure safety from fire and other dangers, promote health and the general welfare of the community, provide adequate light and air, prevent the overcrowding of land or buildings, and to facilitate transportation, the provision City of Brookings November 22, 2011 78 of water, disposal of waste water, and further the optimal use of schools, parks, and public property, and the provision of public necessities. (c) The regulations have been made with reasonable consideration of the character and intensity of particular uses within each district. They are intended to preserve and protect existing property uses and values from adverse or disharmonious adjacent uses. (Ord. No. 21-03, 8-26-2003) Sec. 94-3 - Interpretation. In the interpretation and application of this chapter, the provisions of this chapter shall be held to be minimum requirements, adopted for the promotion of the public health, safety and general welfare. Among other purposes, such provisions are intended to provide for adequate light, air and convenience of access; to lessen congestion in the streets; to secure safety from fire and other dangers; to avoid undue concentration of population by regulating and limiting the height and size of buildings wherever erected, to limit and determine the size of yards, courts and other open spaces; to regulate the density of population, all with reasonable consideration to the character of the district and its peculiar suitability for particular uses, and with a view of conserving the value of property and encouraging the most appropriate use of land throughout the city. ARGUMENT The issues presented by these proceedings and the applicable zoning regulations are all about people. People joining together as a neighborhood trying to preserve a way of life, a way of living and the value of their homes along with a tradition (history) in the neighborhood of single family homes. One of the purposes of new zoning ordinance R-1C and Chapter 94 in general is to manage the density of the number of persons residing in a particular area to prevent overcrowding and traffic congestion. This is a matter of major concern to the Petitioners in view of the fact that the neighborhood is already burdened by heavy traffic caused by the presence of Hillcrest Elementary School; Third Street, a major arterial to the Brookings hospital, Avera Medical Clinic, Larson Manufacturing and other businesses located in the eastern part of the City; the intersection of Third Street and 22nd Avenue; and the presence of significant numbers of SDSU student tenants who reside in the neighborhood. Rezoning the neighborhood to the R-1C designation will assist the people residing in the area to manage these issues at least to the degree that the new proposed zoning will allow – by limiting the per unit density square footage, increasing the minimum lot area and width and disallowing two-family dwellings as a permitted use but continue to allow two family dwellings as a conditional use. A conditional use designation will allow the residents of the affected area the opportunity to be heard before any property can be converted to a two family dwelling. There is concern that with the expected increasing demand for student housing and the relative ease of converting a single family residence to a two family residence as a permitted use under the current zoning designation of R-2, speculators and landlords will buy up homes combine them in some cases, and convert them into two family dwellings thus doubling the density which will result in overcrowding and diminution of the value of owner-occupied single family homes. The overwhelming support of the people owning and occupying single family dwellings within the area proposed for rezoning is certainly one of the compelling reasons that the City of Brookings November 22, 2011 79 Commission recommended the adoption of the R-1C Ordinance to the City Council. The City Council now has the opportunity to take the next most obvious step by approving the recommendation of the Planning Commission to rezone the area to R-1C as requested by the Petitioners. Thank you for your consideration of this matter. Respectfully Submitted, Richard L. Smith City of Brookings November 22, 2011 80 Sec. 94-125.5 RESIDENCE R-1C SINGLE-FAMILY (a) Intent. This district is intended to provide for areas of residential use with a gross density of approximately six dwelling units per acre or less. The district permits single-family dwellings and supportive community facilities such as parks, playgrounds, schools, and churches. (b) Scope of Regulations. The regulations set forth in this section or set forth elsewhere in this title, when referred to in this section, are the district regulations of the Residence R-1C Single-Family District. (c) Permitted Uses. Single-family dwelling including accessory uses incidental thereto such as private garages, parking areas, etc. (d) Permitted Special Uses. A building or premises may be used for the following purposes in conformance with conditions prescribed herein: 1. All permitted special uses and conditions as stated in Section 94-124(d) (R-1A). 2. Private school of general instruction. a. One of the frontages of the premises shall abut upon an arterial or collector street. 3. Family day care. a. Restricted to 12 or less children at any one time. (e) Conditional Uses. 1. Retirement or nursing home 2. Two family dwelling 3. Group home 4. Major home occupation 5. Public recreation facility 6. Bed and breakfast establishment (f) Density, Area, Yard and Height Regulations. The R-1C District regulations shall be as follows: Per Min Min Min Min Min Max Unit Lot Lot Front Side Rear Hgt Density Area Width Yard Yard Yard Sq.Ft. Sq.Ft. Single-Family 7,500 7,500 50' 25' 7' 25' 35' Two-Family 5,625 11,250 75' 25' 7' 25' 35' Other Allowable Uses 10,000 75' 25' 10' 25' 35' Density per family requirements shall not apply to dormitories, fraternities, sororities, nursing homes or other similar group quarters where no cooking facilities are provided in individual rooms (g) Accessory Uses. Accessory uses and building permitted in the R-1C District are buildings and uses customarily incidental to any of the permitted uses in the district. (h) Parking Regulations. Parking, loading and stacking within the R-1C District shall be in conformance with the regulations set forth in division 4 of article VI of this chapter (i) Sign Regulations. Signs within the R-1C District shall be in conformance with the regulations set forth in division 5 of article VI of this chapter (j) Other Regulations. Development within the R-1C District shall be in conformance with the regulations set forth in article II of this chapter City of Brookings November 22, 2011 81 Sec. 94-126. RESIDENCE R-2 TWO-FAMILY DISTRICT (a) Intent. This district is intended to provide for areas of residential use with a density of six to eighteen dwelling units per acre. This district provides for single-family, two-family, townhouse and multiple-family residential uses plus support facilities such as schools, parks, churches and community and public buildings. (b) Scope of Regulations. The regulations set forth in this section or set forth elsewhere in this title, when referred to in this section, are the regulations of the Residence R-2 Two-Family District. (c) Permitted Uses. 1. Single-family dwelling including accessory uses incidental thereto such as private garages, parking areas, etc. 2. Two-family dwelling including accessory uses incidental thereto such as private garages, parking areas, etc. (d) Permitted Special Uses: A building or premises may be used for the following purposes in conformance with conditions prescribed herein: 1. All permitted special uses and conditions as stated in Sections 94-124(d)(R-1A) and 94-125(d)(R- 1B). 2. Single-family zero (0') sideyard dwelling. a. A maximum of four (4) attached dwelling units are permitted. b. Additional lot area requirements apply (subsection f of this section). 3. Funeral home or mortuary. a. One of the frontages of the premises shall abut upon an arterial or collector street. (e) Conditional Uses. 1. Vocational or trade school 2. Retirement or nursing home 3. Group home 4. Major home occupation 5. Public recreation facility 6. Non-municipal library, museum, art gallery, community center, private club or lodge 7. Domestic abuse shelter 8. Townhouse 9. Apartment or condominium 10. Office 11. Bed and breakfast establishment 12. Fraternity/Sorority 13. Day Care Facility (f) Density, Area, Yard and Height Regulations. The R-2 district regulations shall be as follows: Per Min. Min. Min. Min. Min. Max. Unit Lot Lot Front Side Rear Height Density Area Width Yard Yard Yard Sq.Ft. Sq.Ft. Single-Family Dwelling 7,500 7,500 50' 25' 7' 25' 35' SF 0' Sideyard 2 Units 6,000 12,000 80' 25' 0' or 7' 25' 35' on non- party wall SF 0' Sideyard City of Brookings November 22, 2011 82 3 Units 5,000 15,000 100' 25' 0' or 7' 25' 35' on non- party wall SF 0' Sideyard 4 Units 4,500 18,000 120' 25' 0' or 7' 25' 35' on non- party wall Two-Family Dwellings Condominiums / Townhouses 2 Units 4,950 9,900 65' 25' 7' 25' 35' 3 Units 4,100 12,300 80' 25' 7' 25' 35' 4 Units 3,675 14,700 95' 25' 7' 25' 35' Apts, Condos, Townhouses* 5 or more Units 2,420** 16,000 100' 25' 7'*** 25' 35' Other Allowable Uses 7,500 50' 25' 7'*** 25' 35 *Three hundred (300) square feet of landscaped area shall be provided for each dwelling unit exclusive of required building setback areas, access drives and parking lots. Two thirds (2/3) of the landscaped area shall be located in a continuous, single tract which contains no portions thereof which are not contiguous, adjacent and abutting to either the entire width or entire length of said tract. Parking lots shall be screened from single and two-family residential uses according to Section 94-401. **A maximum of 18 dwelling units per acre shall be allowed. ***The sideyard will be required to be increased to 10 feet when the building is 3 or more stories in height. Density per family requirements shall not apply to dormitories, fraternities, sororities, nursing homes or other similar group quarters where no facilities are provided in individual rooms. (g) Accessory Uses. Accessory uses and building permitted in the R-2 District are buildings and uses customarily incidental to any of the permitted uses in the district. (h) Parking Regulations. Parking, loading and stacking within the R-2 District shall be in conformance with the regulations set forth in division 4 of article VI. (i) Sign Regulations. Signs within the R-2 District shall be in conformance with the regulations set forth in division 5 of article VI. (j) Other Regulations. Development within the R-2 District shall be in conformance with the regulations set forth in article II. City of Brookings November 22, 2011 85 Second Readings / Public Hearings 13. Ordinance No. 18-11: An Ordinance of the City of Brookings, South Dakota, repealing Ordinance No. 22-05, Establishing the Retail Economic Development Investment Fund, providing for its funding; providing for its use and providing for its Rules and Regulations. On October 25th, the City Council had first reading of Ordinance No. 18- 11, which would have completely repealed Ordinance No. 22-05. However, after reviewing the ordinance it became evident we would like to maintain the ability to provide for the funding of economic development and still meet the requirements of GASB 54. Council action is needed to terminate second reading on Ordinance No. 18-11. 10/25/2011 Council Packet Information Ordinance No. 18-11 would repeal Ordinance No. 22-05, which established the Retail Economic Development Investment Fund. This fund no longer meets Governmental Accounting Standards Board (GASB) accounting standards to be a special revenue fund because it has no significant revenue stream. Auditors also recommend repeal of this fund. Ordinance No. 18-11 An Ordinance of the City of Brookings, South Dakota, repealing Ordinance No. 22- 05, Establishing the Retail Economic Development Investment Fund, providing for its funding; providing for its use and providing for its Rules and Regulations Be It Ordained by the City Council of the City of Brookings, South Dakota as follows: Ordinance No. 22-05, adopted the 12th day of July 2005 shall be removed immediately from the code and be marked as Repealed by Ordinance No. 18-11, dated October 25, 2011. CITY OF BROOKINGS ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk City Manager Introduction Action: Motion to terminate 2nd reading City of Brookings November 22, 2011 90 Second Readings / Public Hearings 14. Public hearing and action on an On-Off Malt Beverage Alcohol License for Aramark Educational Services, LLC, for the McCrory Gardens Event Center at South Dakota State University, 6th Street/22nd Avenue. The City of Brookings has received an application for an On-Off Malt Beverage License for Aramark Educational Services, LLC, for the McCrory Gardens Event Center at South Dakota State Univeristy, 6 th Street / 22nd Avenue, legal description: a portion of the SE ¼ of Section 24-T110N- R50W. Please refer to exhibit maps A and B for specific location. All required documents have been submitted for this application. A public hearing and action by the local governing body is required to approve a new Malt Beverage License. If approved, the application would be forwarded to the State Department of Revenue for final action and issuance of the license. This license would be effective until June 30, 2012 and then subject to annual renewal. Also enclosed is a letter of support from Dean Barry Dunn, South Dakota State University. Dr. Dunn notes the University‘s position regarding SDCL 35-2-6.1 pertaining alcohol sales on campus. 35-2-6.1. State educational institutions--License to operate on campus prohibited-- Exceptions--"Campus" defined. No on-sale or off-sale license may be granted under this title to operate on the campus of any state educational institution. However, if the outside boundary of any state educational institution is extended this section does not apply to any license granted previous to the extension. The provisions of this section do not apply to the school for the deaf established by chapter 13 -62. For the purpose of this section, "campus" shall mean only the area immediately surrounding the buildings used for classrooms, administrative offices, athletic facilities, and housing. Source: SDC 1939, §§ 5.0204 (7), 5.0303 (7); SL 1951, ch 10; SDCL §§ 35-4-17, 35-6-12; SL 1971, ch 211, § 24; SL 1974, ch 246, § 1; SL 1979, ch 245; SL 1980, ch 252; SL 1984, ch 247. City of Brookings November 22, 2011 91 Further Information: SDCL 35-2-1.2 provides all applications for retail licenses …shall be submitted to the governing board of the municipality within which the applicant intends to operate…The governing board: ―shall have discretion to approve or disapprove the application depending on whether it deems the applicant a suitable person to hold such license and whether it considers the proposed location suitable.‖ SDCL 35-2-6.2 provides the ―character‖ requirements for alcoholic beverage licensees: ―Any license under this title…must be a person of good moral character, never convicted of a felony, and, if a corporation, the managing officers thereof must have like qualifications.‖ Procedure for issuance of licenses: Procedurally, SDCL 35-2-3 provides that ―no license for the on or off-sale at retail of alcoholic beverages…shall be granted to an applicant for any such license, except after public hearing, upon notice.‖ SDCL 35-2-5 provides the procedure for the time and place of hearing and for publication of notice. If an application for a license is refused, ―no further application may be received from a person until after the expiration of one year from the date of a refused application.‖ City Ordinances: Listed below is Chapter 5, Article 2, Section 5-20 of the City Code of Ordinances pertaining to Application Review Procedure. The City Council shall review all applications submitted to the City for available On-Sale Alcoholic Beverage Agreements and for On-Sale Malt Beverage and Wine Licenses in accordance with SDCL 35-2 and in accordance with the following factors: f) Type of business which applicant proposes to operate: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold unless it can be established that minors do not regularly frequent the establishment. g) The manner in which the business is operated: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to establishments which are operated in a manner which results in minors regularly frequenting the establishment. City of Brookings November 22, 2011 92 h) The extent to which minors are employed in such a place of business: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold and which regularly employ minors. i) The adequacy of the police facilities to properly police the proposed location: The City Council shall inquire of the Police Chief whether the Police Department can adequately police the proposed location. j) Other factors: The hours that business is conducted shall be considered by the City Council in its review of applications for on- sale alcoholic beverage operating agreements and on-sale malt beverage and wine licenses Summary: SDCL and case law support the premise that the decision to issue an alcoholic beverage license is discretionary. The City can assess the character of the applicant and whether the location is suitable. A person convicted of a felony is prohibited from applying for a license; therefore, a convicted felon would fail the character test. In determining suitable location, the Council may involve the determination of whether the location is suitable consistent with the procedure developed through South Dakota Case Law. This includes the manner in which the business is operated; the extent to which minors frequent or are employed in such place of business; the adequacy of the police facilities to properly police the proposed location, and other factors associated with the sale of alcoholic beverages. City Manager Introduction Action: Open and Close Public Hearing, Motion to Approve, Roll Call City of Brookings November 22, 2011 96 Second Readings / Public Hearings 15. Public hearing and action on Resolution No. 134-11, a Resolution authorizing the City Manager to sign an Operating Agreement for an On-Off Sale Wine License for Aramark Educational Services, LLC, for the McCrory Gardens Event Center at South Dakota State University, 6th Street/22nd Avenue. Aramark Education Services, LLC, , has applied for a Wine Operating Agreement for the McCrory Gardens Event Center at South Dakota State University, located at 6th Street / 22nd Avenue. Please refer to exhibit maps A and B for specific location. An Operating Agreement is required for Wine Licenses. Resolution No. 134-11 would allow the City Manager to enter into the first five years of the 10-year agreement effective through 2016. All required documents have been submitted for this application. A public hearing and action by the local governing body is required to approve a new wine license. If approved, the application would be forwarded to the State Department of Revenue for final action and issuance of the license. This license would be effective 1/1/2012 to 12/31/2012 and then subject to an annual renewal. Also enclosed is a letter of support from Dean Barry Dunn, South Dakota State University. Dr. Dunn notes the University‘s position regarding SDCL 35-2-6.1 pertaining alcohol sales on campus. 35-2-6.1. State educational institutions--License to operate on campus prohibited-- Exceptions--"Campus" defined. No on-sale or off-sale license may be granted under this title to operate on the campus of any state educational institution. However, if the outside boundary of any state educational institution is extended this section does not apply to any license granted previous to the extension. The provisions of this section do not apply to the school for the deaf established by chapter 13 -62. For the purpose of this section, "campus" shall mean only the area immediately surrounding the buildings used for classrooms, administrative offices, athletic facilities, and housing. Source: SDC 1939, §§ 5.0204 (7), 5.0303 (7); SL 1951, ch 10; SDCL §§ 35-4-17, 35-6- 12; SL 1971, ch 211, § 24; SL 1974, ch 246, § 1; SL 1979, ch 245; SL 1980, ch 252; SL 1984, ch 247. City of Brookings November 22, 2011 97 Listed below is specific information related to a Wine License request and other procedures that are following with an application. Note that restaurant requirements for wine have been eliminated in state law. City Ordinances: Listed below is Chapter 5, Article 2, Section 5-20 of the City Code of Ordinances pertaining to Application Review Procedure. The City Council shall review all applications submitted to the City for available On-Sale Alcoholic Beverage Agreements and for On-Sale Malt Beverage and Wine Licenses in accordance with SDCL 35-2 and in accordance with the following factors: a. Type of business which applicant proposes to operate: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold unless it can be established that minors do not regularly frequent the establishment. b. The manner in which the business is operated: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to establishments which are operated in a manner which results in minors regularly frequenting the establishment. c. The extent to which minors are employed in such a place of business: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold and which regularly employ minors. d. The adequacy of the police facilities to properly police the proposed location: The City Council shall inquire of the Police Chief whether the Police Department can adequately police the proposed location. e. Other factors: The hours that business is conducted shall be considered by the City Council in its review of applications for on- sale alcoholic beverage operating agreements and on-sale malt beverage and wine licenses. City Manager Introduction Action: Open and Close Public Hearing, Motion to Approve, Roll Call City of Brookings November 22, 2011 98 Resolution No. 134-11 Aramark Educational Services, LLC, for the McCrory Gardens Event Center at South Dakota State University Wine Operating Agreement Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Agreement for the Operating Liquor Management Agreement for wine between the City of Brookings and the Aramark Educational Services, LLC, for the McCrory Gardens Event Center at South Dakota State University for the purpose of a liquor manager to operate the on-sale establishment or business for and on behalf of the City of Brookings at 6th Street / 22nd Avenue. Be It Further Resolved that the City Manager be authorized to execute the Agreement on behalf of the City, which shall be for a period of five (5) years and renewal for another five (5) years. Passed and approved this 22nd day of November, 2011. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings November 22, 2011 102 Second Readings / Public Hearing 16. Public hearing and action on Resolution No. 135-11, a Resolution authorizing the City Manager to sign an Operating Agreement for an On-Off Sale Wine License for Schoon‘s Pump & Pak South, Jon Schoon, Owner, 1203 Main Avenue South, Outlot 8, NE 1/4, .66 acres, Section 35-110-50. Jon Schoon, owner of Schoon‘s Pump & Pak South, has applied for a Wine Operating Agreement for his business located at 1203 Main Avenue South. An operating agreement is required for wine licenses. Resolution No. 135- 11 allows the City Manager to enter into the first five years of the 10-year agreement effective through 2016. This license would be effective January 1st and subject to annual renewal in December. If approved, the application would be forwarded to the State Department of Revenue for final action and issuance of the license. Staff recommends approval. Listed below is specific information related to a wine license request and other procedures that are following with an application. Note that restaurant requirements for wine have been eliminated in state law. City Ordinances: Listed below is Chapter 5, Article 2, Section 5-20 of the City Code of Ordinances pertaining to Application Review Procedure. The City Council shall review all applications submitted to the City for available On-Sale Alcoholic Beverage Agreements and for On-Sale Malt Beverage and Wine Licenses in accordance with SDCL 35-2 and in accordance with the following factors: a) Type of business which applicant proposes to operate: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold unless it can be established that minors do not regularly frequent the establishment. b) The manner in which the business is operated: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to establishments which are operated in a manner which results in minors regularly frequenting the establishment. c) The extent to which minors are employed in such a place of business: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold and which regularly employ minors. d) The adequacy of the police facilities to properly police the proposed location: The City Council shall inquire of the Police Chief whether the Police Department can adequately police the proposed location. City of Brookings November 22, 2011 103 e) Other factors: The hours that business is conducted shall be considered by the City Council in its review of applications for on-sale alcoholic beverage operating agreements and on-sale malt beverage and wine licenses. Resolution No. 135-11 Schoon‘s Pump N Pak South Wine Operating Agreement Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Agreement for the Operating Liquor Management Agreement for wine between the City of Brookings and Jon Schoon, owner, Schoon‘s Pump N Pak South, for the purpose of a liquor manager to operate the on-sale establishment or business for and on behalf of the City of Brookings at 1203 Main Avenue South. Be It Further Resolved that the City Manager be authorized to execute the Agreement on behalf of the City, which shall be for a period of five (5) years and renewal for another five (5) years. Passed and approved this 22nd day of November, 2011. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City Manager Introduction Action: Open and Close Public Hearing, Motion to Approve, Roll Call City of Brookings November 22, 2011 104 Second Readings / Public Hearings 17. Public hearing and action on Resolution No. 136-11, a Resolution authorizing the City Manager to sign an Operating Agreement for an On-Off Sale Wine License for Oly‘s Neighborhood Bar & Grill, Ken & Kristi Olson, owners, 725 Main Ave. South, Lot 1, Block 1, Outlot ‗P‘, Shelden‘s Subdivision. Ken & Kristi Olson, owners of Oly‘s Neighborhood Bar & Grill, has applied for a Wine Operating Agreement for their business located at 725 Main Avenue South. An operating agreement is required for wine licenses. Resolution No. 136-11 allows the City Manager to enter into the first five years of the 10-year agreement effective through 2016. This license would effective January 1st and subject to annual renewal in December. If approved, the application would be forwarded to the State Department of Revenue for final action and issuance of the license. Staff recommends approval. Listed below is specific information related to a wine license request and other procedures that are following with an application. Note that restaurant requirements for wine have been eliminated in state law. City Ordinances: Listed below is Chapter 5, Article 2, Section 5-20 of the City Code of Ordinances pertaining to Application Review Procedure. The City Council shall review all applications submitted to the City for available On-Sale Alcoholic Beverage Agreements and for On-Sale Malt Beverage and Wine Licenses in accordance with SDCL 35-2 and in accordance with the following factors: a) Type of business which applicant proposes to operate: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold unless it can be established that minors do not regularly frequent the establishment. b) The manner in which the business is operated: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to establishments which are operated in a manner which results in minors regularly frequenting the establishment. c) The extent to which minors are employed in such a place of business: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold and which regularly employ minors. City of Brookings November 22, 2011 105 d) The adequacy of the police facilities to properly police the proposed location: The City Council shall inquire of the Police Chief whether the Police Department can adequately police the proposed location. e) Other factors: The hours that business is conducted shall be considered by the City Council in its review of applications for on-sale alcoholic beverage operating agreements and on-sale malt beverage and wine licenses. Resolution No. 136-11 Oly‘s Neighborhood Bar & Grill Wine Operating Agreement Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Agreement for the Operating Liquor Management Agreement for wine between the City of Brookings and Ken & Kristi Olson, owners, Oly‘s Neighborhood Bar & Grill, for the purpose of a liquor manager to operate the on-sale establishment or business for and on behalf of the City of Brookings at 725 Main Avenue South. Be It Further Resolved that the City Manager be authorized to execute the Agreement on behalf of the City, which shall be for a period of five (5) years and renewal for another five (5) years. Passed and approved this 22nd day of November, 2011. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City Manager Introduction Action: Open and Close Public Hearing, Motion to Approve, Roll Call City of Brookings November 22, 2011 106 Second Readings / Public Hearings 18. Public hearing and action on Ordinance No. 20-11, an Ordinance for an application for Conditional Use Permit to establish a major home occupation (chiropractic office) in a Residence R-2 District on Lot 20, Block 12, East Medary Addition (1513 Orchard Drive). Applicant: Jason Hunter Proposal: Establish a major home occupation in a residential district Background: A two-family dwelling was constructed on Lot 20 in 1981. In 1996, the building was converted to a single-family dwelling. An addition and another garage stall were added to the house in 2002. In 2005, the house was converted back into a duplex, and the driveway was expanded. Adjacent uses include a five (5) unit condo with a row of detached garages to the east and a duplex to the west. The Canadian Pacific Railroad mainline is to the north, and across Orchard Drive is the Wesleyan Church parking lot. Specifics: The area reserved for the home occupation is located in the lower level of the home next to the garage. This level has 1,680 square feet of gross floor area. It appears the home occupation would involve about 375 square feet. Parking on-site can accommodate five (5) vehicles, two (2) in the garage and three (3) in the driveway. Since this property was converted back to a duplex in 2005, each unit must have two (2) on-premise parking spaces. A major home occupation requires two (2) spaces. The applicant indicated the efficiency apartment would be discontinued once the current lease expired. However, as it stands now, the site is lacking one parking space. Therefore, any approval should be subject to all applicable regulations which would require the applicant to apply for a variance through the Board of Adjustment. Recommendation: The Planning Commission voted 0 yes and 6 no, with one abstention, to recommend that this conditional use permit request be denied. City Manager Introduction Action: Open and Close Public Hearing, Motion to Approve, Roll Call City of Brookings November 22, 2011 107 Ordinance No. 20-11 An ordinance pertaining to an application for a Conditional Use for a major home occupation (chiropractic office) in the Residence R-2 District. Be it ordained by the governing body of the City of Brookings, South Dakota that said Conditional Use shall be approved for a major home occupation (chiropractic office) on Lot 20, Block 12, East Medary Addition with the following conditions: None All sections and ordinances in conflict herewith are hereby repealed. First Reading: October 25, 2011 Second Reading: November 22, 2011 Published: November 25, 2011 CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings November 22, 2011 114 Planning Commission Brookings, South Dakota October 4, 2011 OFFICIAL MINUTES Chairperson Al Heuton called the regular meeting of the City Planning Commission to order on October 4, 2011, at 7:00 PM in the Council Chamber at City Hall. Members present were Wayne Avery, Hal Bailey, Donna DeKraai, Greg Fargen, Alan Gregg, John Sydow, and Heuton. Mike Cameron and John Gustafson were absent. Others present were Dan Bielfeldt, Robert Brandwein, Richard Smith, Marjorie Streier, Jim Welch, Jason Hunter, Jim Bailey, John Mills, Chris Jeppesen, Community Development Director Mike Struck, City Engineer Jackie Lanning, Planning and Zoning Administrator Dan Hanson, and others. Item #8 – Jason Hunter has submitted an application for a Conditional Use Permit to establish a major home occupation (chiropractic office) on Lot 20, Block 12, East Medary Addition (Sydow/Bailey) Motion to approve the Conditional Use. All present voted no except Fargen abstained. MOTION FAILED. MEETING SUMMARY Item #8 – Jason Hunter stated that the home had two (2) front entrances. One entrance led directly into the lower level where the home occupation was located. He noted that the apartment in the house would be leased for the next few months. He felt the location was good because the street was busy, visibility was good, and the church parking lot could be available for parking. He added that he would try to reserve three (3) parking spaces in his driveway for clients. Heuton asked if other employees would be hired. Hunter replied that it would be just him to start with, but he could add an intern later. He would schedule patients every hour. Jim Bailey, an adjacent property owner, stated that the area had 12 duplexes and some 4-plexes. This resulted in 30 dwelling units in a two (2) block area. He remarked that the area had too much traffic and was a safety issue for children in the neighborhood. He felt a less congested area would be more appropriate for a home occupation. Heuton read a letter submitted by Roger French, an adjacent property owner, opposing the request. French felt that allowing a business in the area would set a precedent for more businesses. He noted that parking was very limited in the neighborhood. He also felt it would devalue his property. Avery was concerned that the chiropractic office may not remain secondary to the residential use. DeKraai and Gregg were both concerned about the lack of required parking on the premises. Heuton concurred and felt encroachment into this area by this type of business use was not appropriate. City of Brookings November 22, 2011 116 Second Readings / Public Hearings 19. Public hearing and action on Resolution No. 137-11, a Resolution of Intent to Lease Real Property to Private Person (LNJ Farms & Ranch). The City awarded bids at their October 25, 2011 meeting, to LNJ Farms & Ranch of Aurora for approximately 60 acres of hay land located in Section 21-T110N-R50W, which is west of the current airport site (previously owned by the Nichols family). LNJ Farms & Ranch was the high bid of $75.00 per acre. This will be a two-year lease. The lease provides extra income for the City as well as provides for weed control on City property. The City is required to hold a public hearing as per the following SDCL statute: 9-12-5.2. Powers - Lease to private person - Resolution - Notice - Hearing - Authorization. If the governing body decides to lease any municipally owned property to any private person for a term exceeding one hundred twenty days and for an amount exceeding five hundred dollars annual value it shall adopt a resolution of intent to enter into such lease and fix a time and place for public hearing on the adoption of the resolution. Notice of the hearing shall be published in the official newspaper once, at least ten days prior to the hearing. Following the hearing the governing body may proceed to authorize the lease upon the terms and conditions it determines. The Notice of Public Hearing was advertised one time 10 days prior to the hearing, as required. This resolution will allow the City to enter into a lease agreement with LNJ Farms & Ranch of Aurora, SD for two years for the hay land in Section 21-T110N-R50W. City Manager Introduction Action: Open and Close Public Hearing, Motion to Approve, Roll Call City of Brookings November 22, 2011 117 Resolution No. 137-11 Resolution of Intent to Lease Real Property to Private Person Be It Resolved by the governing body of the City of Brookings, South Dakota, that the City of Brookings intends to enter into a Lease with LNJ Farms & Ranch for a period of two years, commencing on January 1, 2012 and ending December 31, 2013 and pertaining to the following described property: The designated hayland, 60 acres more or less, in Section 21-T110N, R50W, in the City of Brookings, Brookings County, South Dakota. The Lease will be an amount of Seventy-five Dollars ($75.00) per acre for the hayland, payable first half on April 1 and the remaining half on November 1. The City of Brookings may terminate this Lease at any time in the event the acreage of the above described property is to be adjusted by the City of Brookings. If a portion of the hayland is changed, the number of acres to be paid for will be adjusted at the unit price per acre. Be It Further Noted, that a Public Hearing on this Resolution was held on November 22, 2011at 6:00 o‘clock P.M. at the City Council Chambers and that all persons were given an opportunity to be heard on the intent to lease real property. Passed and approved this 22nd day of November 2011. CITY OF BROOKINGS ____________________________________ Tim Reed, Mayor ATTEST: __________________________ Shari Thornes, City Clerk CRP 212TH ST 469TH AVE 468TH AVE DM& E R A I L R O A D RENTAL LAND - 60 ACRES City of Brookings November 22, 2011 119 Second Readings / Public Hearings 20. Public hearing and action on Ordinance No. 19-11, an Ordinance rezoning Lot 2, Block 2, Telkamp Addition from a Residence R-3 District to a Planned Development District (PDD), (2400 Block of 10th St.). Proposal: Create a multi-family complex Background: The petitioner created a Planned Development District (PDD) north of this property in 2009. That project became known as the Innovation Village Apartments, and this proposal has similar characteristics. Other adjacent uses include apartments to the west and south, and vacant land to the east. Specifics: The development standards for the project will be the Residence R-3 District regulations. The primary components on the plan include two (2) four-story buildings with 64 units each. Each building will have 44 underground parking spaces and a shared surface lot. The project will be divided into two (2) residential only phases. A third phase, which will be submitted at a future date, is integral to these phases and will contain a mix of commercial and residential uses. This was the main reason for proposing a PDD at this time. The third phase will be east of this project. The Initial Development Plan (IDP) is required to be submitted in conjunction with a rezoning request to a PDD. In order to expedite the project, the applicant has already received certain variances which will allow them to proceed under the Residence R-3 District regulations. Variances related to Items 3b and 3c were approved by the Board of Adjustment. A Final Development Plan will be submitted later that will include more specific information. The IDP requirements are in your packet. Recommendation: The Planning Commission voted 7 yes and 0 no to recommend approval of the rezoning and Initial Development Plan. City Manager Introduction Action: Open and close public hearing, Motion to approve, Roll Call City of Brookings November 22, 2011 120 Ordinance No. 19-11 An Ordinance to Change the Zoning within the City of Brookings Be it ordained by the governing body of the City of Brookings, South Dakota, Section 1. That the real estate situated in the City of Brookings, County of Brookings, State of South Dakota, described as follows: Lot 2, Block 2, Telkamp Addition be and the same is hereby rezoned and reclassified from a Residence R-3 District to a Planned Development District (PDD). In accordance with Section 94.7 of Article I of Ordinance 25-02 of the Code of Ordinances of Brookings, South Dakota, as said districts are more fully set forth and described in Articles III and IV of Ordinance No. 25-02 of the City of Brookings, South Dakota. Section 2. The permitted use of the property heretofore described be and the same is hereby altered and changed in accordance herewith pursuant to said Ordinance No. 25-02 of the City of Brookings, South Dakota. Section 3. All sections and ordinances in conflict herewith are hereby repealed. First Reading: October 25, 2011 Second Reading and Adoption: November 22, 2011 Published: November 25, 2011 CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings November 22, 2011 123 Planning Commission Brookings, South Dakota October 4, 2011 OFFICIAL MINUTES Chairperson Al Heuton called the regular meeting of the City Planning Commission to order on October 4, 2011, at 7:00 PM in the Council Chamber at City Hall. Members present were Wayne Avery, Hal Bailey, Donna DeKraai, Greg Fargen, Alan Gregg, John Sydow, and Heuton. Mike Cameron and John Gustafson were absent. Others present were Dan Bielfeldt, Robert Brandwein, Richard Smith, Marjorie Streier, Jim Welch, Jason Hunter, Jim Bailey, John Mills, Chris Jeppesen, Community Development Director Mike Struck, City Engineer Jackie Lanning, Planning and Zoning Administrator Dan Hanson, and others. Item #6 – Den-Wil Investments, Inc. has submitted a petition to rezone Lot 2, Block 2, Telkamp Addition from a Residence R-3 District to a Planned Development District. (Bailey/DeKraai) Motion to approve the rezoning. All present voted aye. MOTION CARRIED. SUMMARY OF DISCUSSION Items 6 and 7 – Dan Bielfeldt stated that the Planned Development District (PDD) zoning would provide an R-3 zoning designation for the first two (2) phases of the project. A third phase would have an apartment component and a business component. He added that the Innovation Village Apartments were a success, and the proposed plan would be similar in design. Fargen stated that the plan appeared to be appropriate for the area. Heuton asked if the PDD plan requirements were all met. Hanson replied yes, but that two (2) elements of the plan, building height and units per acre, were granted variances by the Board of Adjustment. City of Brookings November 22, 2011 125 Other Business 21. Action to approve the Den-Wil Initial Development Plan. REZONING (PDD) AND INITIAL DEVELOPMENT PLAN (to be submitted at public hearing) Proposal: Create a multi-family complex Background: The petitioner created a Planned Development District (PDD) north of this property in 2009. That project became known as the Innovation Village Apartments and this proposal has similar characteristics. Other adjacent uses include apartments to the west and south and vacant land to the east. Specifics: The development standards for the project will be the Residence R-3 District regulations. The primary components on the plan include two (2) four-story buildings with 64 units each. Each building will have 44 underground parking spaces and a shared surface lot. The project will be divided into two (2) residential only phases. A third phase, which will be submitted at a future date, is integral to these phases and will contain a mix of commercial and residential uses. This was the main reason for proposing a PDD at this time. The third phase will be east of this project. The Initial Development Plan (IDP) is required to be submitted in conjunction with a rezoning request to a PDD. In order to expedite the project, the applicant has already received certain variances that will allow them to proceed under the Residence R-3 District regulations. Variances related to Items 3b and 3c were approved by the Board of Adjustment. A Final Development Plan will be submitted later that will include more specific information. The IDP requirements are in your packet. Recommendation: The Planning Commission voted 7 yes and 0 no to recommend approval of the rezoning and Initial Development Plan. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings November 22, 2011 129 INITIAL DEVELOPMENT PLAN REQUIREMENTS The following information shall be specified on the initial development plan: 1. Project name and legal description. 2. A preliminary subdivision plan in compliance with all applicable subdivision regulations. 3. The proposed development scheme showing the following information: a. The proposed land uses including the number and type of proposed residential buildings, the proposed number of dwelling units per building, the number and type of any proposed nonresidential buildings, and their square footage. b. The proposed maximum density of the development, which shall not exceed the density allowed in the traditional zoning districts for similar uses. Where unique physical, environmental or design characteristics exist or are proposed, lesser densities may be desirable. c. The proposed maximum height, which shall not be greater than those required in the traditional zoning districts for similar uses. Where unique physical, environmental or design characteristics exist or are proposed, lesser heights may be desirable. d. Proposed design features illustrating compatibility with the surrounding environment and neighborhood. e. Anticipated sub-area development sequence. City of Brookings November 22, 2011 130 Other Business 22. Action on proposed amendments to the City of Brookings Governance and Ends Policies. The Governance & Ends Policy has been updated and amended as per the October 11, 2011 Council Work Session. The amendments are as follows: Amended Ends Policy 1, Financial Stability, Guideline C, Guideline E, Guideline G, and Guideline H, Ends Policy 2, Municipal Services, Guideline B & Guideline C, and Ends Policy 4, Economic Development. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings November 22, 2011 131 City of Brookings Governance and Ends Policies (Showing all changes) City of Brookings November 22, 2011 132 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 November 22, 2011 133 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 of City of Brookings November 22, 2011 134 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. 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 to the total, which are unique to its City of Brookings November 22, 2011 135 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: Governance Process (how the Council carries out its task, and the passing of power and measurement of its use) and 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 November 22, 2011 136 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 November 22, 2011 137 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 November 22, 2011 138 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 November 22, 2011 139 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 November 22, 2011 140 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- City of Brookings November 22, 2011 141 time opportunities. They provide flexibility to respond to unexpected opportunities that may help the City achieve its goals. 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: City of Brookings November 22, 2011 142 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. 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 of Brookings November 22, 2011 143 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. 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 of Brookings November 22, 2011 144 City Manager will annually provide a management discussion and analysis of business type funds and the changes in net assets. 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 City of Brookings November 22, 2011 145  Preservation/ History  Safety  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. City of Brookings November 22, 2011 146 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 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. City of Brookings November 22, 2011 147 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 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 municipality 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 November 22, 2011 148 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; City of Brookings November 22, 2011 149 15. Emphasize a user-friendly approach; 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, using the formula: Net income divided by average total assets. The numbers to calculate the return on assets ratio will be taken from the last and latest balance sheets and latest income statements for each enterprise fund. It will be necessary to average the total assets entries from your last and current balance statements when doing the calculation, 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.). 3. 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. 4. 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. 5. 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% 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 November 22, 2011 150 2001 14.0% 6.7% 5.9% 4.4% 7.1% 2002 29.2% 12.4% 6.5% 5.1% 7.8% 6. 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 7. 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% City of Brookings November 22, 2011 151 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 November 22, 2011 152 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 November 22, 2011 153 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 should be 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 November 22, 2011 154 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. City of Brookings November 22, 2011 155 7. Business Improvement District #1 ―Pillow Tax‖ is bringing outside money to the community. 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 appropriation 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 November 22, 2011 156 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 November 22, 2011 157 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 City of Brookings November 22, 2011 158 management staff for their additional contributions, achievements and service to the City of Brookings over the past year. 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 November 22, 2011 159 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 November 22, 2011 160 Amendments May 13, 2002, the 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 November 22, 2011 161 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 November 22, 2011 162 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 servant s 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 November 22, 2011 163 Other Business 23. Action to name the Nature Park the ―Dakota Nature Park.‖ To: Brookings City Council Member CC: Jeff Weldon, City Manager From: Peter Colson, Director, BPRD RE: Advisory Board Approves Nature Park Name On September 12, 2011, the Parks and Recreation Advisory Board discussed the official name for the nature park currently under development on 22nd Avenue South. This item came to the agenda because the city will be quarrying and cutting stone for the city-wide Gateway Project, which includes signage for the parks; thus, the Board needed to choose and approve an official name to meet this project‘s timeline. During the course of the discussion, a Board member suggested the name be changed to reflect a more regional attraction for the park. The Board agreed to table the item to their October 3rd meeting, when the discussion could include members of the Nature Park Planning Committee and Ad Hoc Nature Park Committee. E-mail and written invitations were extended to these groups for the October 3rd meeting. During the October 3rd meeting, the discussion centered on a more public process for selecting a name; however, after further communication with those involved with the Gateway Project, it became obvious we needed to adhere to the initial deadline of November 7th for approving the name in order to meet the Gateway Project‘s timeline; thus, I created the process below to expedite a possible name change:  Oct. 11-13 -- E-mailed solicitations to anyone who could suggest a name during the initial process (MMS science classes, Nature Park Ad Hoc Committee, Nature Park Planning Committee, etc.)  Oct. 21 -- Name suggestions due to BPRD office, 5:00 p.m.  Oct. 24-28 – During the solicitation of names, 26 were received and narrowed to six choices.  Oct. 31 -- Ballots were emailed to the Advisory Board. The ballot consisted of five name choices, and the board was asked to rank the choices from preferred to least-preferred.  Nov. 3 -- Ballots due to BPRD office, 5:00 p.m.  Nov. 7 -- Advisory Board discussed and voted for the name(s) selected in the balloting. If there was no agreement among board members, the name would remain ―SouthBrook Nature Park.‖ The following names were rated in order by the Advisory Board prior to their November 7th meeting: 1. Dakota Nature Park 2. Brookings Nature Park 3. SouthBrook Nature Park 4. Prairie View Nature Park 5. Prairie Ponds Nature Park City of Brookings November 22, 2011 164 During the November 7th Advisory Board meeting, the Board, in a 6:1 vote, approved the name ―Dakota Nature Park‖ for the nature park and is now sending the name to the City Council for their consideration and approval. Name Suggestions for ―SouthBrook Nature Park‖ for Oct. 24-28, 2011 Balloting Akita Mani Yo Park (ah-kee-tah mah-nee yo) (Observe everything as you go) Brookings Nature Park Dakota Nature Park Dakota Wind Nature Park East River Nature Park Frontier Nature Park Great Land Nature Park Heritage Nature Park Hike, Bike and Pike Park Homestead Nature Park Meadow Nature Park Meadowlark Nature Park Midland Nature Park Midwest Nature Park Midwest Prairie Park Prairie Grass Nature Park Prairie Plains Park Prairie Ponds Nature Park Prairie Trails Nature Park Prairie View Nature Park Quarry Ponds Nature Park SouthBrook Nature Park Susweca Park (Dragonfly Park) Trailwinds Nature Park Washkata Wacheen Park (I want to play) Woodland Nature Park City Manager Introduction Action: Motion to approve, Request Public Comment, Roll Call City of Brookings November 22, 2011 165 Other Business 24. Action on Resolution No. 138-11, a Resolution approving Tax Increment District Number 5 Project Plan. The City of Brookings is the owner of 83.5 acres of land in the Foster Industrial Park. The lack of available public streets and storm sewer serving the area is a detriment to industrial development. The boundaries of Tax Increment District Five were approved by the City Council on September 13, 2011. The district includes approximately 30 acres of undeveloped property on the west side of the future 32nd Avenue, as well as the 32nd Avenue right-of-way. Tax Increment District Five will allow the City to proceed with the construction of public improvements and utilize the property tax increments to pay the debt service on the project. The boundaries of Tax Incremental District Five are as follows: Block 1 of Foster Addition and all of Thirty-Second Avenue right-of-way located in the NE ¼ of Section 19-T110N-R49W of the 5th P.M., City of Brookings, Brookings County, State of South Dakota In an effort to maximize the efficient use of a tax incremental district, only the west side of 32nd Avenue is included. Industrial development is anticipated to occur more quickly on the west side of 32nd Avenue than the east side. It is possible if additional infrastructure is necessary to develop Block 2 of the Foster Addition, another Tax Incremental District could be certified for those specific improvements. The Tax Incremental District Five Project Plan identifies the costs associated with constructing the public improvements necessary to serve this area. The primary improvements are the construction of 32nd Avenue and associated storm drainage. The project plan estimates eligible project costs at $1,742,900. The eligible project costs are the maximum dollar amount eligible for reimbursement by the tax increment. The financing plan estimates $518,000 will be generated in revenue based upon the development of the GHP property. In addition, the City is estimating approximately one-third of the cost of the street improvement is subject to a street assessment in the Thelen Addition. The assessment is consistent with City policy on collector streets, which, the City will pay the costs associated with extra width and thickness above and beyond what is normally required for a standard 31 foot street. Resolution No. 96-10 established the policy on City participation in construction of arterial and collector streets. The language regarding collector streets is provided below: And Be It Further Resolved, for Collector Streets, that it is the policy of the Brookings City Council to assume and pay from the funds of the City for any extra thickness required on collector streets as designated on the Major Street Plan, filed with the Brookings County Register of Deeds, in excess of that City of Brookings November 22, 2011 166 described for local streets and for the extra width in excess of 31 feet measured from back of curb to back of curb. Said payment shall be computed by the City Engineer based on current bids received by the City for similar work and shall be presented for payment when said streets are complete and accepted by the City. The portion of the public improvements through the Thelen‘s Addition would be assessed per the above reference policy. The property tax increment would be utilized to pay for the City‘s portion of the project. The project cost estimates include the street, storm drainage, and discretionary costs. Discretionary costs are those payments made at the discretion of the governing body, which are found to be necessary or convenient to the creation of Tax Incremental Districts or the implementation of project plans. Generally, these discretionary costs are included as a precautionary measure in case unforeseen issues arise during construction, which may increase the total project cost. The City is the developer on this project; therefore, the financing plan is feasible. The City will be reimbursed through positive tax increment. If the Tax Increment District dissolves prior to full reimbursement, the City will be responsible for the remaining outstanding balance. Approval of the attached resolution would adopt the Tax Incremental District Five Project Plan and allow for the construction and financing of public improvements serving the area. The Planning Commission recommended 5-0 to approve Tax Incremental District Five Project Plan. City Manager Introduction Action: Motion to approve, Request Public Comment, Roll Call City of Brookings November 22, 2011 167 Resolution No. 138-11 Resolution Approving Tax Incremental District Number Five Project Plan Whereas, the Brookings Planning Commission has recommended the approval of the Tax Incremental Project Plan, Tax Incremental District Number Five; and Whereas, the City Council finds that all requirements have been met in order to approve said Tax Increment Plan. Now, Therefore, Be It Resolved by the City Council 1. Approval of Project Plan. The project plan, a copy of which is on file with the City Finance Officer hereby approved. 2. Findings. The City Council finds that the project plan is feasible and that it conforms to the City‘s master plan. All findings made in the tax increment plan are included herein by reference. 3. Effective 20 days after publication. This resolution shall become effective 20 days after publication and absent any challenge at law all findings and conclusions in the Tax Increment Plan for Tax Increment District Number Five shall be final. Passed this 22nd day of November 2011. CITY OF BROOKINGS _____________________________ Tim Reed, Mayor ATTEST: ___________________________ Shari Thornes, City Clerk City of Brookings November 22, 2011 168 Planning Commission Brookings, South Dakota November 1, 2011 OFFICIAL MINUTES Vice-chairperson Wayne Avery called the regular meeting of the City Planning Commission to order on November 1, 2011, at 7:00 PM in the Council Chamber at City Hall. Members present were Hal Bailey, Greg Fargen, Alan Gregg, John Sydow, and Avery. Mike Cameron, Donna DeKraai, Al Heuton, and John Gustafson were absent. Others present were Keith Rounds, Craig Fairbanks, Dick Smith, Leroy Kruse, Jim Welsh, Amy Stoel, Dave Owens, Mike McClemans, Community Development Director Mike Struck, City Engineer Jackie Lanning, Planning and Zoning Administrator Dan Hanson, and others. Item #6 – The City of Brookings has submitted a project plan for Tax Increment District (TID) #5. (Sydow/Bailey) Motion to approve the project plan. All present voted aye. MOTION CARRIED. SUMMARY OF DISCUSSION Item #6 – Community Development Director Mike Struck stated the project plan involved the Foster Industrial Park area. The plan would support the construction of 32nd Avenue and a retention pond and other drainage work. Existing businesses in the Thelen Addition that abutted 32nd Avenue would be charged for improvements under the standard assessment policy. One business would be developing a 12 acre site within the TID in 2012. TAX INCREMENTAL DISTRICT NUMBER FIVE, CITY OF BROOKINGS TAX INCREMENTAL PROJECT PLAN Tax Increment District Five, City of Brookings, South Dakota Page 1 TABLE OF CONTENTS INTRODUCTION AND PURPOSE ..................................................................................................................................... 3 GENERAL DEFINITIONS AS USED IN THIS PLAN .............................................................................................................. 3 Listing Of Kind, Number, Location And Detailed Costs Of Proposed Public Works And Improvements. ...................... 6 Costs of Public Works or Improvements ................................................................................................................... 7 Expenditures exceeding Estimated Cost ................................................................................................................... 8 FEASIBILITY STUDY. ........................................................................................................................................................ 8 BLIGHT STUDY 8 DETAILED LIST OF ESTIMATED PROJECT COSTS ............................................................................................................. 8 FISCAL IMPACT STATEMENT .......................................................................................................................................... 8 METHOD OF FINANCING, TIMING OF COSTS AND MONETARY OBLIGATIONS .............................................................. 8 Maximum Amount of Note or Bonded Indebtedness ................................................................................................... 8 DURATION OF TAX INCREMENTAL PLAN ....................................................................................................................... 8 ESTIMATED IMPACT OF TAX INCREMENT FINANCING ON REVENUES OF TAXING JURISDICTIONS .............................. 9 CONDITIONS MAP, IMPROVEMENTS MAP, ZONING CHANGE MAP .............................................................................. 9 CHANGES TO THE CITY OF BROOKINGS MASTER PLAN, MAP, BUILDINGS CODES AND CITY ORDINANCES. ................ 9 LIST OF ESTIMATED NON-PROJECT COSTS. ................................................................................................................. 10 STATEMENT OF DISPLACEMENT AND RELOCATION PLAN .......................................................................................... 10 PERFORMANCE BOND, SURETY BOND OR GUARANTY. .............................................................................................. 10 SCHEDULE 1 – "DETAIL OF PROJECT COSTS" ............................................................................................................... 12 SCHEDULE 2 – "ESTIMATED CAPTURED TAXABLE VALUES" ........................................................................................ 13 SCHEDULE 3 – “ECONOMIC FEASIBILITY STUDY” ......................................................................................................... 14 SCHEDULE 4. BLIGHT STUDY ....................................................................................................................................... 18 Section 1- Introduction ........................................................................................................................................... 18 Section 2 - Study Area Boundary ............................................................................................................................ 18 Tax Increment District Five, City of Brookings, South Dakota Page 2 Section 3 - Establishing Blight ................................................................................................................................. 18 Section 4 - History of the Study Area ...................................................................................................................... 19 Section 5 - Study Area Description ......................................................................................................................... 19 Section 6 - Conditions Within the Study Area ......................................................................................................... 20 Section 7 - Findings within the Study Area – Analysis ............................................................................................ 20 Section 8 - Conclusions ........................................................................................................................................... 21 SCHEDULE 5 - “FISCAL IMPACT STATEMENT” .............................................................................................................. 22 FISCAL IMPACT STATEMENT- TAX INCREMENT DISTRICT NUMBER ONE ............................................................... 22 Introduction ....................................................................................................................................................... 22 Definitions .......................................................................................................................................................... 22 Assumptions: ...................................................................................................................................................... 22 FISCAL IMPACT: .................................................................................................................................................. 23 ATTACHMENT 1 ........................................................................................................................................................... 24 ATTACHMENT 2 ........................................................................................................................................................... 25 ATTACHMENT 3 ........................................................................................................................................................... 26 Tax Increment District Five, City of Brookings, South Dakota Page 3 INTRODUCTION AND PURPOSE The purpose of this Plan, to be implemented by the City of Brookings, is to satisfy the requirements for a Tax Incremental District Plan Number Five, City of Brookings as specified in SDCL Chapter 11-9. There are 11 mandated requirements of the Plan, each to be addressed in this Plan. The principal purpose of the Plan is to define eligible property and to define a Tax Increment Plan for funding eligible activities of a functionally obsolete and blighted area of the City. This Plan was prepared for adoption by the City Council in recognition that the renewal area requires a coordinated, cooperative strategy, with financing possibilities, to eliminate the blight and prevent the spread of blight, and accomplish the City’s development objectives for improving the continued viability of public and private development in the City. The driving interest in the establishment of this Plan is to offer tax increment financing as a tool to stimulate and leverage private sector development and redevelopment, to help eliminate statutory defined blight, and to prevent the spread of such blight. Development and redevelopment in the area is anticipated to occur in the near future through public and private partnerships, with the potential for Tax Increment financing to provide the impetus and means to undertake this redevelopment at a faster pace than might occur otherwise. The development of commercial and industrial property and to stimulate further economic development is an essential governmental purpose. GENERAL DEFINITIONS AS USED IN THIS PLAN The following terms found in this Plan have the following meanings: “Base” or “Tax Incremental Base” means the aggregate assessed value of all taxable property located within a Tax Incremental District on the date the district is created, as determined by SDCL § 11-9-20. "Blighted" means property that meets any of the following criteria: Any area, including slum area, in which the structures, buildings, or improvements, by reason of: (1) dilapidation, age, or obsolescence; (2) inadequate provisions for ventilation, light, air, sanitation, or open spaces; (3) high density of population and overcrowding; (4) the existence of conditions which endanger life or property by fire and other causes; or (5) any combination of such factors; are conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime, and which is detrimental to the public health, safety, morals, or welfare, is a blighted area1; or 1 SDCL § 11-9-9 Tax Increment District Five, City of Brookings, South Dakota Page 4 Any area which by reason of: (1) the presence of a substantial number of substandard, slum, deteriorated, or deteriorating structures; (2) predominance of defective or inadequate street layouts; (3) faulty lot layout in relation to size, adequacy, accessibility, or usefulness; (4) unsanitary or unsafe conditions; (5) deterioration of site or other improvements; (6) diversity of ownership, tax, or special assessment delinquency exceeding the fair value of the land; (7) defective or unusual conditions of title; (8) the existence of conditions which endanger life or property by fire and other causes; or (9) any combination of such factors; substantially impairs or arrests the sound growth of a municipality, retards the provision of housing accommodations, or constitutes an economic or social liability and is a menace to the public health, safety, morals, or welfare in its present condition and use, is a blighted area 2; or Any area which is predominantly open and which because of obsolete platting, diversity of ownership, deterioration of structures or of site improvements, or otherwise, substantially impairs or arrests the sound growth of a municipality, is a blighted area.3 "City Councils" means the Brookings City Council. "City of Brookings" means Brookings, South Dakota, a home rule form of government. "Department of Revenue" means the South Dakota Department of Revenue. “District” means the Tax Incremental District. "Economic Development" means all powers expressly granted and reasonably inferred pursuant to SDCL §9-54. "Fiscal year" means that fiscal year of the City of Brookings. "Generally Applicable Taxes" shall have the same meaning as set forth in 26 CFR § 1.141-4(e). "Governing body" means the Brookings City Council "Infrastructure Improvements" means a street, road, sidewalk, parking facility, pedestrian mall, alley, bridge, sewer, sewage treatment plant, property designed to reduce, eliminate, or prevent the spread of identified soil or groundwater contamination, drainage system, waterway, waterline, water storage 2 SDCL § 11-9-10 3 SDCL § 11-9-11. Tax Increment District Five, City of Brookings, South Dakota Page 5 facility, rail line, utility line or pipeline, or other similar or related structure or improvement, together with necessary easements for the structure or improvement, for the benefit of or for the protection of the health, welfare, or safety of the public generally. "Municipality" any incorporated city in this state. "Planning Commission" means the City Planning Commission. “Plan” means this Project Plan. “Project Costs” means any expenditure or monetary obligations by the City of Brookings, whether made, estimated to be made, incurred or estimated to be incurred, which are listed as Project Costs herein will include any costs incidental thereto but diminished by any income, special assessments, or other revenues, other than tax increments, received, or reasonably expected to be received, by the City of Brookings in connection with the implementation of this Plan. “Project Plan” means properly approved Plan for the development or redevelopment of a tax incremental district including all properly approved amendments thereto as recommended pursuant to SDCL § 11-9-13. "Public Works" means the acquisition by purchase or condemnation of real and personal property within the Tax Incremental District and the sale, lease, or other disposition of such property to private individuals, partnerships, corporations, or other entities at a price less than the cost of such acquisition which benefit or further the health, safety, welfare and economic development of the City. "Taxable Property" all real taxable property located in a Tax Incremental District; "Tax Incremental District" a contiguous geographic area within a City defined and created by resolution of the governing body and named City of Brookings Tax Incremental District Number Five; "Tax Increment Valuation" is the total value of the Tax Incremental District minus the tax incremental base pursuant to § 11-9-19. “Tax Increment Law” means South Dakota Codified Laws Chapter 11-9. Tax Increment District Five, City of Brookings, South Dakota Page 6 PROPERTY WITHIN THE TAX INCREMENT ZONE The real property to be located within the Tax Increment District is legally described as follows: Description: Block 1 of Foster Addition and All of Thirty-Second Avenue right-of-way located in the NW1/4 of Section 19-T110N-49W of the 5th P.M., City of Brookings, Brookings County, State of South Dakota (the “District”) LISTING OF KIND, NUMBER , LOCATION AND DETAILED COSTS OF PROPOSED PUBLIC WORKS AND I MPROVEMENTS 4. In order to implement the provisions of SDCL Chapter 11-9, the following are Project Costs and expenditures made or estimated to be made and the monetary obligations incurred or estimated to be incurred by the City. The Project Costs includes capital costs, financing costs, real property assembly costs, professional fee costs, imputed administration costs, relocation costs, organizational costs and discretionary costs, plus any costs incidental thereto, diminished by any income, special assessments, or other revenues, other than tax increments, received, or reasonably expected to be received, by the City. The City is working to develop an economic and competitive base to benefit the City and the State as a whole. All the Project Costs, land acquisition and professional fees, are found to be necessary and convenient to the creation of the Tax Incremental District and the implementation of the Tax Increment District. The City shall enter into all contracts in accordance with South Dakota law. A combination of private investment, public investment and tax increment recapture will assist progress toward the following additional objectives:  To address and remedy conditions in the area that impair or arrest the sound growth of the City;  To implement the Comprehensive Plan and its related element;  To redevelop and rehabilitate the area in a manner which is compatible with and complementary to unique circumstances in the area;  To effectively utilize undeveloped and underdeveloped land;  To improve pedestrian, bicycle, vehicular, and transit-related circulation and safety;  To ultimately contribute to increased revenues for all taxing entities;  To encourage the voluntary rehabilitation of buildings, improvements, and conditions; 4 SDCL §11-9-13(1). Tax Increment District Five, City of Brookings, South Dakota Page 7  To watch for market and/or project opportunities to eliminate blight, and when such opportunities exist, to take action within the financial, legal and political limits of the Authority to acquire land, demolish and remove structures, provide relocation benefits, and pursue redevelopment, improvement and rehabilitation projects; and  To improve areas that are likely to enhance significantly the value of substantially all property in the district. COSTS OF PUBLIC WORKS OR IMPROVEMENTS In accordance with SDCL 11-9-13(1) & (3) the following is the kind, number, location and dollar amount of estimated Project Costs, costs of public works and improvements. Kind of Project Cost Number Location5 Amount Reference6 Capital Costs 11 In District $1,426,900* 11-9-14(1) Financing Costs 11-9-14(2) Real Property Assembly 11-9-14(3) Professional Fees $111,000 11-9-14(4) Administrative Costs 11-9-14(5) Relocation Costs 1-9-14(6) Organizational Costs $5,000 11-9-14(7) Discretionary Costs $200,000 11-9-14(8) Eligible Project Costs $1,742,900* *Eligible Project costs may be reallocated during the five years from creation of the TIF . The above total represents eligible Project Costs. 5District shall mean the Tax Increment District . 6SDCL §11-9-14 (1) Capital costs, including the actual costs of the construction of public works or improvements, buildings, structures, and permanent fixtures; the demolition, alteration, remodeling, repair, or reconstruction of existing buildings, structures, and permanent fixtures; the acquisition of equipment; the clearing and grading of land; and the amount of interest payable on tax incremental bonds or notes issued pursuant to this chapter until such time as positive tax increments to be received from the district, as estimated by the Project Plan, are sufficient to pay the principal of and interest on the tax incremental bonds or notes when due; (2) Financing costs, including all interest paid to holders of evidences of indebtedness issued to pay for Project Costs, any premium paid over the principal amount thereof because of the redemption of such obligations prior to maturity and a reserve for the payment of principal of and interest on such obligations in an amount determined by the governing body to be reasonably required for the marketability of such obligations; (3) Real property assembly costs, including the actual cost of the acquisition by a municipality of real or personal property within a tax incremental district less any proceeds to be received by the municipality from the sale, lease, or other disposition of such property pursuant to a Project Plan; (4) Professional service costs, including those costs incurred for architectural, planning, engineering, and legal advice and services; (5) Imputed administrative costs, including reasonable charges for the time spent by municipal employees in connection with the implementation of a Project Plan; (6) Relocation costs; (7) Organizational costs, including the costs of conducting environmental impact and other studies and the costs of informing the public of the creation of tax incremental districts and the implementation of project plans; and (8) Payments made, at the discretion of the governing body, which are found to be necessary or convenient to the creation of tax incremental districts or the implementation of project plans. Tax Increment District Five, City of Brookings, South Dakota Page 8 EXPENDITURES EXCEEDING ESTIMATED COST Any expenditures which in sum would exceed the total amount stated in Eligible Project Costs will require an amendment of this plan. All amendments are undertaken pursuant to SDCL §11-9-23. When the expenditures are increased above the total Eligible Project Costs, the Department of Revenue will be required to reset the base, in accordance with SDCL §11-9-23. FEASIBILITY STUDY.7 An economic feasibility study is attached as Schedule 3. BLIGHT STUDY Not less than 25% of the area within the proposed district is blighted and in need of redevelopment as indicated in the Blight Study attached as Schedule 4. DETAILED LIST OF ESTIMATED PROJECT COSTS8 Attached as Schedule 1 is a detailed list of estimated Project Costs. No expenditure for Project Costs is provided for more than five years after the district. FISCAL IMPACT STATEMENT 9 Attached as Schedule 5 is the Fiscal Impact Statement on other taxing districts found within the Tax Increment District, both until and after the bonds are repaid. METHOD OF FINANCING, TIMING OF COSTS AND MONETARY OBLIGATIONS 10 Project Costs shall be paid by the City. There shall be multiple advances by the City. The City will reimburse for employee time and expense from the tax increment fund. M AXIMUM AMOUNT OF NOTE OR BONDED INDEBTEDNESS The City intends to issue no bonded indebtedness payable from the tax increment fund. The City will provide for the improvements through general funds and pay itself back through tax increment revenue. DURATION OF TAX INCREMENTAL PLAN The duration of the Plan will extend to the number of years it will take for the retirement of bonded indebtedness except that the Plan duration shall not exceed 20 years from the date of creation of the District. 7 SDCL §11-9-13(2) 8 SDCL §11-9-13(3) 9 SDCL § 11-9-13(4). 10 SDCL § 11-9-13(5) Tax Increment District Five, City of Brookings, South Dakota Page 9 ESTIMATED IMPACT OF TAX INCREMENT FINANCING ON REVENUES OF TAXING JURISDICTIONS The site will generate taxes to the local jurisdictions at or above the assessed of the Base. All taxing districts shall receive that base which was established in 2011. The tax increment will be available to the taxing jurisdictions at or before 20 years after the creation of the District. Schedule 3 details the tax capture implications to each of the local taxing jurisdictions. After the repayment of the bonds, taxing entities will receive their proportionate share of tax dollars for the base value and the tax incremental values. CONDITIONS MAP 11, IMPROVEMENTS MAP 12, ZONING CHANGE MAP 13 The conditions map is attached as Attachment 1. The Improvements map is attached as Attachment 2. The Zoning Change Map is attached as Attachment 3. CHANGES TO THE CITY OF BROOKINGS MASTER PLAN, MAP, BUILDINGS CODES AND CITY ORDINANCES 14. The City has made changes in the master plan, map, building codes and City ordinances as indicated on Attachment 3. 11 SDCL § 11-9-16(1) 12 SDCL § 11-9-16(2) 13 SDCL § 11-9-16(3) 14 SDCL §11-9-16(4) Tax Increment District Five, City of Brookings, South Dakota Page 10 LIST OF ESTIMATED NON-PROJECT COSTS 15. The following is a list of the projected non-Project Costs. Industrial buildings and facilities in an amount not determinable at this time. STATEMENT OF DISPLACEMENT AND RELOCATION PLAN16 No residents or families will be displaced by the Project. There are no families or persons residing on the premises. Therefore, no relocation Plan is needed. PERFORMANCE BOND, SURETY BOND OR GUARAN TY. As security for its fulfillment of the agreement with the governing body, a purchaser or lessee of redevelopment property shall furnish a performance bond, with such surety and in such form and amount as the governing body may approve or make such other guaranty as the governing body may deem necessary in the public interest. 15 SDCL §11-9-16(5) 16 SDCL § 11-9-16(16) Tax Increment District Five, City of Brookings, South Dakota Page 11 LIST OF SCHEDULES SCHEDULE 1 Detail of Project Costs SCHEDULE 2 Estimated Captured Taxable Values SCHEDULE 3 Economic Feasibility Schedule SCHEDULE 4 Blight Study SCHEDULE 5 Fiscal Impact Statement ATTACHMENTS Attachment 1. Map and Legal Description and existing uses and conditions Attachment 2. Map of Real property Improvement and uses Attachment 3. Map of proposed changes in zoning ordinances Tax Increment District Five, City of Brookings, South Dakota Page 12 SCHEDULE 1 – "DETAIL OF PROJECT COSTS" The project contains 2,600 linear feet of infrastructure and one on-site storm water retention pond. This project provides for complete infrastructure for a 30 acre industrial park and adjacent 32nd Avenue right-of-way in Brookings. The industrial park is anticipated to be subdivided into smaller parcels based upon market demand. Tax Increment District Five, City of Brookings, South Dakota Page 13 SCHEDULE 2 – "ESTIMATED CAPTURED TAXABLE VALUES" BASE-ESTIMATED TAXES THAT WILL GO TO TAXING DISTRICTS DURING TIF INCREMENT-ESTIMATED TAXES THAT WILL GO TO TAX INCREMENT FUND DURING TIF Project Revenue for Tax Increment District # 5 Base Value $0 Non Ag. Z Payable in 2013 Equalized 92.5% Construction Year Valuation Year Revenue Year Accumulated Positive Valuation Increment City Mill Rate School Mill Rate County Mill Rate EDWD Mill Rate Total Mill Rate Total Increment Total Increment for Debt Service 2011 2012 2013 $277,500 2.563 15.253 4.68 0.028 22.524 $6,250.41 $6,250.41 2012 2013 2014 $222,000 2.563 15.253 4.68 0.028 22.524 $5,000.33 $11,250.74 2013 2014 2015 $222,000 2.563 15.253 4.68 0.028 22.524 $5,000.33 $16,251..07 2014 2015 2016 $222,000 2.563 15.253 4.68 0.028 22.524 $5,000.33 $21,251.39 2015 2016 2017 $222,000 2.563 15.253 4.68 0.028 22.524 $5,000.33 $26,251.72 2016 2017 2018 $222,000 2.563 15.253 4.68 0.028 22.524 $5,000.33 $31,252.05 2017 2018 2019 2.563 15.253 4.68 0.028 22.524 $31,252.05 2018 2019 2020 2.563 15.253 4.68 0.028 22.524 $31,252.05 2019 2020 2021 2.563 15.253 4.68 0.028 22.524 $31,252.05 2020 2021 2022 2.563 15.253 4.68 0.028 22.524 $31,252.05 2021 2022 2023 2.563 15.253 4.68 0.028 22.524 $31,252.05 2022 2023 2024 2.563 15.253 4.68 0.028 22.524 $31,252.05 2023 2024 2025 2.563 15.253 4.68 0.028 22.524 $31,252.05 2024 2025 2026 2.563 15.253 4.68 0.028 22.524 $31,252.05 2025 2026 2027 2.563 15.253 4.68 0.028 22.524 $31, 252.05 2026 2027 2028 2.563 15.253 4.68 0.028 22.524 $31,252.05 2027 2028 2029 2.563 15.253 4.68 0.028 22.524 $31,252.05 2028 2029 2030 2.563 15.253 4.68 0.028 22.524 $31,252.05 2029 2030 2031 2.563 15.253 4.68 0.028 22.524 $31,252.05 $1,387,500 $518,784.03 Note: These numbers are for projection purposes only and do not reflect what the actual number(s) may be. These numbers are based on the following assumptions. Assumptions: 1. Current Tax Increment District has a positive increment of $277,500. 2. The GHP project will be built in 2012, payable in 2013. $1,100,000 was used for increased valuation. 3. The discretionary formula was taken into account on a 20%-40%-60%-80% basis, starting in 2012 for taxes payable. 4. GHP was the only new development used for projection purposes. 5. Any positive increment, in addition to GHP, will go towards the TIF debt. Tax Increment District Five, City of Brookings, South Dakota Page 14 SCHEDULE 3 – “ECONOMIC FEASIBILITY STUDY” The City of Brookings is developing an industrial park adjacent to Interstate 29. An essential component of the City’s participation is City funding for certain Project Costs (“Project Costs”) needed to support the Project (or any other comprehensive redevelopment of the site), all of which is currently estimated to cost in excess of $1,742,900. The City is paying the project costs pursuant to (SDCL 11-9-30) and intends to be reimbursed through positive tax increment pursuant to SDCL (11-9-32). If the Tax Increment District #5 dissolves prior to full reimbursement, the City will not be reimbursed for the remaining outstanding balance. In tax increment financing, the current real property tax assessed value of all properties in a designated project area (“tax increment financing district”) is established as the “base value.” As development in the tax increment financing district increases the assessed values of the redeveloped properties, a portion of the additional tax revenue generated by the increase in assessed value over the Tax Increment District Five, City of Brookings, South Dakota Page 15 base value is set aside and committed by the City for debt service on tax increment bonds, the proceeds of which would be used for the construction of the Project Costs. Use of a Tax increment fund is permitted only in connection with a “Project Plan” duly adopted by the City. The process is set forth in the Tax Increment District Law, and is generally as follows:  Any person may request the City Council to designate a tax increment financing district. The request may be through a formal application process, or a presentation to the City Council. Upon receiving any request, the City Council determines preliminary feasibility of the project. This preliminary feasibility determination includes fiscal, legal and political considerations.  If it is determined feasible, the City Council directs staff or the Planning Commission to initiate the process. The Planning Commission then sets a proposed hearing date and starts the notice procedure.  Notice of the intent to create a Tax Increment District is published and sent to all taxing districts not less than 10 days prior to the hearing.  The Planning Commission holds a hearing and allows members of the general public to comment upon the proposed creation of a Tax Increment District. At the end of the hearing, the Planning Commission may recommend the creation of the Tax Increment District to the City Council. The Planning Commission may also recommend a tax increment Project Plan and forward to the City Council for their determination.  The City Council places the recommendation on the agenda and at the public meeting may pass a resolution to create the Tax Increment District in accordance with the Tax Increment District Law. The resolution is published and becomes effective on the 21st day after publication, unless it is referred to a vote of the electors. This resolution may also approve the project plan.  After the resolution becomes effective, the Department of Revenue of the State of South Dakota is sent a letter requesting to determine the base.  After the Project Plan is approved, the City Council at any time may authorize the issuance of tax increment bonds “for the purpose of carrying out or administering a Project Plan”. The resolution would irrevocably pledge its tax increment revenues to the debt service on the City’s tax increment bonds. (See Tax Increment District Law Section 11-9-37).  The City has five years to spend tax increment revenues or bond proceeds on or for Project Costs. Tax Increment District Five, City of Brookings, South Dakota Page 16 Estimated Tax Increment Fund Balance is as follows: Project Revenue for Tax Increment District # 5 Base Value $0 Non Ag. Z Payable in 2013 Equalized 92.5% Construction Year Valuation Year Revenue Year Accumulated Positive Valuation Increment City Mill Rate School Mill Rate County Mill Rate EDWD Mill Rate Total Mill Rate Total Increment Total Increment for Debt Service 2011 2012 2013 $277,500 2.563 15.253 4.68 0.028 22.524 $6,250.41 $6,250.41 2012 2013 2014 $222,000 2.563 15.253 4.68 0.028 22.524 $5,000.33 $11,250.74 2013 2014 2015 $222,000 2.563 15.253 4.68 0.028 22.524 $5,000.33 $16,251..07 2014 2015 2016 $222,000 2.563 15.253 4.68 0.028 22.524 $5,000.33 $21,251.39 2015 2016 2017 $222,000 2.563 15.253 4.68 0.028 22.524 $5,000.33 $26,251.72 2016 2017 2018 $222,000 2.563 15.253 4.68 0.028 22.524 $5,000.33 $31,252.05 2017 2018 2019 2.563 15.253 4.68 0.028 22.524 $31,252.05 2018 2019 2020 2.563 15.253 4.68 0.028 22.524 $31,252.05 2019 2020 2021 2.563 15.253 4.68 0.028 22.524 $31,252.05 2020 2021 2022 2.563 15.253 4.68 0.028 22.524 $31,252.05 2021 2022 2023 2.563 15.253 4.68 0.028 22.524 $31,252.05 2022 2023 2024 2.563 15.253 4.68 0.028 22.524 $31,252.05 2023 2024 2025 2.563 15.253 4.68 0.028 22.524 $31,252.05 2024 2025 2026 2.563 15.253 4.68 0.028 22.524 $31,252.05 2025 2026 2027 2.563 15.253 4.68 0.028 22.524 $31, 252.05 2026 2027 2028 2.563 15.253 4.68 0.028 22.524 $31,252.05 2027 2028 2029 2.563 15.253 4.68 0.028 22.524 $31,252.05 2028 2029 2030 2.563 15.253 4.68 0.028 22.524 $31,252.05 2029 2030 2031 2.563 15.253 4.68 0.028 22.524 $31,252.05 $1,387,500 $518,784.03 Note: These numbers are for projection purposes only and do not reflect what the actual number(s) may be. These numbers are based on the following assumptions. Assumptions: 1. Current Tax Increment District has a positive increment of $277,500. 2. The GHP project will be built in 2012, payable in 2013. $1,100,000 was used for increased valuation. 3. The discretionary formula was taken into account on a 20%-40%-60%-80% basis, starting in 2012 for taxes payable. 4. GHP was the only new development used for projection purposes. 5. Any positive increment, in addition to GHP, will go towards the TIF debt. Tax Increment District Five, City of Brookings, South Dakota Page 17 Since the City is reimbursing itself through collected tax increment, the plan is feasible. The City will collect only such tax increments as are collected in the tax increment fund. The above sheet is only an estimate and will be subject to actual collections. This document represents the feasibility study required under Tax Increment District Law Section 11-9-13 (Subsections 2, 4 and 5). The study concludes that the proposed redevelopment project in the project area is feasible. Tax Increment District Five, City of Brookings, South Dakota Page 18 SCHEDULE 4. BLIGHT STUDY S ECTION 1- INTRODUCTION The City has initiated the creation of a tax increment district located in the northeastern part of the city. In order to determine whether a tax increment district may be created, it has been recommended that city staff together with outside consultants conduct a study of the area to determine if conditions exist that meet the definitions of blight described in Title 11-9 and allow consideration of a Tax Increment District to alleviate those conditions. If the City finds, by Resolution, that "blighted" conditions exist in not less than 25% of the area, it may after notification of affected taxing districts and after a public hearing, create a Tax Increment district. The Purpose of the study is to determine if impediments to development and other issues of blight exist, pursuant to state law, sufficient enough to warrant the creation of a district in the northeastern portion of the City. In addition to studying the subject area for the defined blighted conditions, staff has evaluated the area for the existence of assets or opportunities for private investment, as creation and reinvestment of TIF funds in a District depends primarily on new private investment generating new property taxes. Finally, staff reviewed the Study Area for localized physical and institutional impediments to investment in the study area. S ECTION 2 - STUDY AREA BOUNDARY The Study of Blight is broadly described as: Description: Block 1 of Foster Addition and All Thirty-Second Avenue right-of-way located in the NE1/4 of Section 19-T110N-R49W of 5th P.M., City of Brookings, Brookings County, State of South Dakota. S ECTION 3 - ESTABLISHING BLIGHT South Dakota law describes a blighted area as one that contains a set of conditions which constitute blight. There are three statutory areas of blight: SDCL § 11-9-9 Any area, including slum area, in which the structures, buildings, or improvements, by reason of: (1) Dilapidation, age, or obsolescence; (2) Inadequate provisions for ventilation, light, air, sanitation, or open spaces; (3) High density of population and overcrowding; (4) The existence of conditions which endanger life or property by fire and other causes; or (5) Any combination of such factors; are conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime, and which is detrimental to the public health, safety, morals, or welfare, is a blighted area. Tax Increment District Five, City of Brookings, South Dakota Page 19 SDCL § 11-9-10. Developed areas impairing growth defined as blighted. Any area which by reason of: (1) The presence of a substantial number of substandard, slum, deteriorated, or deteriorating structures; (2) Predominance of defective or inadequate street layouts; (3) Faulty lot layout in relation to size, adequacy, accessibility, or usefulness; (4) Insanitary or unsafe conditions; (5) Deterioration of site or other improvements; (6) Diversity of ownership, tax, or special assessment delinquency exceeding the fair value of the land; (7) Defective or unusual conditions of title; (8) The existence of conditions which endanger life or property by fire and other causes; or (9) Any combination of such factors; substantially impairs or arrests the sound growth of a municipality, retards the provision of housing accommodations, or constitutes an economic or social liability and is a menace to the public health, safety, morals, or welfare in its present condition and use, is a blighted area. SDCL § 11-9-11. Any area which is predominantly open and which because of obsolete platting, diversity of ownership, deterioration of structures or of site improvements, or otherwise, substantially impairs or arrests the sound growth of a municipality, is a blighted area. Under South Dakota law the finding of blight may be made based upon a single factor found in SDCL § 11-9-9, 11-9-10 or 11-9-11. S ECTION 4 - HISTORY OF THE STUDY AREA The study area is comprised of agricultural, commercial, and industrial area. A majority of the area is non developable without direct infrastructure improvements by the City of Brookings. The City has initiated a development plan whereby it intends to expand into the geographical area and provide infrastructure improvements where private developers will not. S ECTION 5 - STUDY AREA DESCRIPTION An open area with inadequate street layouts, no storm drainage, or fire control improvements, which, due to geographical limitations, substantially arrests the sound growth of a municipality, constitutes an economic or social liability and is a menace to welfare of the City in its present condition and use. Area contains substantial diversity of ownership which substantially impairs and arrests the sound growth of a municipality Tax Increment District Five, City of Brookings, South Dakota Page 20 S ECTION 6 - CONDITIONS WITHIN THE STUDY AREA Infrastructure Public Utilities Sewer- Analysis of the City of Brookings Sanitary Sewer Maps reveals that the Study Area has limited wastewater coverage. Storm water – Analysis of the City of Brookings Sanitary Sewer Maps reveals that the Study Area has limited storm sewer coverage. Potable Water – Analysis of the City of Brookings Water Maps reveals that the Study Area has limited water coverage. Street & Sidewalk Condition – Analysis of the City of Brookings Street Maps reveals that the Study Area is in need of additional street and sidewalk infrastructure. Transportation According to the Engineering department, the District is in need of street extension and alignment to maintain better control and flow of commercial and industrial traffic. Public Safety Fire – The City of Brookings Fire Department supplied information pertaining to life safety aspects within the study area. More than twenty-five percent of the District does not meet fire safety standards. Demographic Character of the Study Area There exists population in less than 25 % of the study area. Tax Generation from the Area The District currently does not generate taxes. More than twenty-five percent of the District does not generate taxes sufficient to supply the required infrastructure improvements. Land Use and Planning Comprehensive Plan - The Comprehensive plan suggests that public and private improvements are needed within the District. Zoning - No modification of zoning is required in the District. S ECTION 7 - F INDINGS WITHIN THE STUDY AREA – ANALYSIS In accordance with State Law, the following addresses specific characteristics of blight found within the Study Area with corresponding portions of 11-9-10 and 11-9-11: Tax Increment District Five, City of Brookings, South Dakota Page 21 Defective or inadequate street layout. - For the most part, the streets in the Study Area are not adequate, as the current street is a low maintenance gravel street not capable of supporting heavy truck traffic as well as not providing access and connectivity. The study area would benefit greatly from an improved street and connectivity with existing streets. Faulty lot layout in relation to size, adequacy, accessibility, or usefulness. Lots and blocks in the Study Area need to be laid out in not less than 25% of the area. Unsanitary or unsafe conditions. Some conditions within localized portions of the Study Area listed above achieve unsafe status due to life-safety issues. The existence of conditions that endanger life or property by fire or other causes. Some conditions within localized portions of the Study Area listed above achieve unsafe status due to life-safety issues. S ECTION 8 - CONCLUSIONS Based on the findings of this study, it is determined that the Study Area contains conditions defined as “blight”. Tax Increment District Five, City of Brookings, South Dakota Page 22 SCHEDULE 5 - “FISCAL IMPACT STATEMENT” FISCAL IMPACT STATEMENT- TAX INCREMENT DISTRICT NUMBER ONE INTRODUCTION The fiscal impact statement is intended to provide a succinct analysis of the estimated impact of the Tax Increment District to the public pursuant to SDCL § 11-9-13(4). It is not intended to rival the level of detail required by a detailed financial analysis. A fiscal impact statement shows the impact of the Tax Increment District, both until and after the City is repaid, upon all entities levying taxes upon property in the district. D EFINITIONS “Assumptions” means factors or definitions used in the fiscal analysis. Assumptions may include facts and figures identified by the District and educated guesses that are sometimes necessary when not all of the information is available. Assumptions are often used to extrapolate an estimate. Assumptions may include an estimate of tax levies of each taxing entity, the school aid formula contribution, the value of the real property, etc. "Base Revenues” means the taxes collected on the base value. “Fiscal Impact” means the increase or decrease in revenues and generally refers to an impact to revenues caused by the district. “Revenue” means ad valorem taxes. “Tax Increment District “ means City of Brookings, Tax Increment District Number Five. “Taxing Districts” means all political subdivisions of the state which have ad valorem taxing power over property within the boundaries of the Tax Increment District. “Tax Increment Revenues" means all revenues above the Base Revenues. ASSUMPTIONS : 1. The property will have improvements which at completion will be valued for taxable purposes at $1,387,500. 2. The average tax levy of all taxing districts will be $22.52 per thousand dollars of taxable valuation. 3. Tax increment will start to be collected in 2013 and end in 2031. 4. Interest: None: 5. The discretionary formula: 20%, 40%, 60%, 80%. Tax Increment District Five, City of Brookings, South Dakota Page 23 FISCAL IMPACT: The total fiscal impact upon the taxing entities during the term of the Tax Increment District is as follows: Taxing District will not receive taxes as property within district is current tax exempt. Project Revenue for Tax Increment District # 5 Base Value $0 Non Ag. Z Payable in 2013 Equalized 92.5% Construction Year Valuation Year Revenue Year Accumulated Positive Valuation Increment City Mill Rate School Mill Rate County Mill Rate EDWD Mill Rate Total Mill Rate Total Increment Total Increment for Debt Service 2011 2012 2013 $277,500 2.563 15.253 4.68 0.028 22.524 $6,250.41 $6,250.41 2012 2013 2014 $222,000 2.563 15.253 4.68 0.028 22.524 $5,000.33 $11,250.74 2013 2014 2015 $222,000 2.563 15.253 4.68 0.028 22.524 $5,000.33 $16,251..07 2014 2015 2016 $222,000 2.563 15.253 4.68 0.028 22.524 $5,000.33 $21,251.39 2015 2016 2017 $222,000 2.563 15.253 4.68 0.028 22.524 $5,000.33 $26,251.72 2016 2017 2018 $222,000 2.563 15.253 4.68 0.028 22.524 $5,000.33 $31,252.05 2017 2018 2019 2.563 15.253 4.68 0.028 22.524 $31,252.05 2018 2019 2020 2.563 15.253 4.68 0.028 22.524 $31,252.05 2019 2020 2021 2.563 15.253 4.68 0.028 22.524 $31,252.05 2020 2021 2022 2.563 15.253 4.68 0.028 22.524 $31,252.05 2021 2022 2023 2.563 15.253 4.68 0.028 22.524 $31,252.05 2022 2023 2024 2.563 15.253 4.68 0.028 22.524 $31,252.05 2023 2024 2025 2.563 15.253 4.68 0.028 22.524 $31,252.05 2024 2025 2026 2.563 15.253 4.68 0.028 22.524 $31,252.05 2025 2026 2027 2.563 15.253 4.68 0.028 22.524 $31, 252.05 2026 2027 2028 2.563 15.253 4.68 0.028 22.524 $31,252.05 2027 2028 2029 2.563 15.253 4.68 0.028 22.524 $31,252.05 2028 2029 2030 2.563 15.253 4.68 0.028 22.524 $31,252.05 2029 2030 2031 2.563 15.253 4.68 0.028 22.524 $31,252.05 $1,387,500 $518,784.03 Note: These numbers are for projection purposes only and do not reflect what the actual number(s) may be. These numbers are based on the following assumptions. Assumptions: 1. Current Tax Increment District has a positive increment of $277,500. 2. The GHP project will be built in 2012, payable in 2013. $1,100,000 was used for increased valuation. 3. The discretionary formula was taken into account on a 20%-40%-60%-80% basis, starting in 2012 for taxes payable. 4. GHP was the only new development used for projection purposes. 5. Any positive increment, in addition to GHP, will go towards the TIF debt. Tax Increment District Five, City of Brookings, South Dakota Page 24 ATTACHMENT 1 Legal Description: Block 1 of Foster Addition and All of Thirty-Second Avenue right-of-way located in the NW1/4 of Section 19-T110N-49W of the 5th P.M., City of Brookings, Brookings County, State of South Dakota Tax Increment District Five, City of Brookings, South Dakota Page 25 ATTACHMENT 2 (List of Real Property Improvements) Improvements are to be located and are shown below: The Improvements shall be located in the real property described in Attachment 1 in the 30 acres of undeveloped property and 32nd Avenue right-of-way and is the highest and best use for the real property. 2,600 linear feet of infrastructure and one on-site storm water retention pond. Tax Increment District Five, City of Brookings, South Dakota Page 26 ATTACHMENT 3 Zoning Changes The following map reveals the property is currently zoned Restricted Industrial (I-1R), Light Industrial (I- 1), and Heavy Business (B-3). There will be no zoning changes with regard to the comprehensive plan, zoning designation, map, building codes or municipal ordinances. City of Brookings November 22, 2011 196 Other Business 25. Discussion and possible action on Highway 14 turn back. City staff recently met with Mike Behm with from the South Dakota Department of Transportation (SDDOT) to discuss the possibility of the City of Brookings taking over jurisdiction of 6th Street from the Western Avenue diagonal to 34th Avenue. The SDDOT staff have been meeting with cities in South Dakota who have both a state highway and bypass roadway to determine if the city would be interested in transferring jurisdiction of the state highway through their town. The benefit to each city would be they would gain direct control of the highway and would not need SDDOT approval for roadway changes, signage, trees and other issues currently regulated on state highways. One drawback to the city is the cost of any future design and reconstruction of the project would be entirely a city cost. Staff has researched the recent construction costs for 6th Street, which are as follows: 2008: 6th Street from Medary Avenue to 22nd Avenue: $4.35 million 2013: 6th Street from Highway 14 Diagonal to Main Avenue: estimated $4.73 million 2014: 6th Street from 22nd Avenue to 34th Avenue: estimated $3.98 million 2016: estimated $3 million (this project is on the DOT long range plan, and this cost is a rough estimate) Total reconstruction costs: $16.06 million dollars The above costs are only for the street construction contracts. The costs to design the roadway system are not included in the above figure because the DOT currently utilizes their own staff to design the roadway system in-house. One major concern of transferring jurisdiction of 6th Street to the City of Brookings is the huge financial commitment for the City for future reconstruction of 6th Street. The design life of the current 6th Street roadway is approximately 30 years. If the City would accept jurisdiction of 6th Street, this would mean Brookings would need to start setting aside funds each year to have enough funds in 30 years for design and reconstruction. The City’s 2nd penny fund is currently being allocated for numerous projects. The Urban STP funds are being spent on overlay and signal projects, and possibly for the upsizing costs of the 6th Street Storm Sewer, and are not sufficient for the reconstruction of 6th Street. The City already has signal maintenance, snow removal and sweeping of 6th Street, so we do share in the cost of upkeep for the state highway system. I recommend 6th Street remain in state jurisdiction. City Manager Introduction Action: Motion to approve, Request Public Comment, Roll Call City of Brookings November 22, 2011 197 Other Business 26. Potential acquisition of South Dakota Department of Transportation (DOT) old maintenance shop located on Highway 14 between I-29 and 32nd Avenue. The South Dakota Department of Transportation has offered to sell to the City of Brookings the old maintenance shop located on Highway 14 between I-29 and 32nd Avenue. Our interest in the property has been for future commercial re-development east of the interstate. Pursuant to previous Council action, the City offered the State the purchase price of the appraised value in an “as is” condition. An appraisal and re- appraisal have valued the property at $1,825,000. There was no specific deadline by which this offer was to expire. As such, it was simply an informal intergovernmental agreement. The State was not ready to act on our offer. There was no official response from the State and the issue languished with no further action for some time. Since taking office, the Daugaard Administration has taken an aggressive policy position for the sale/disposal of all excess State property. Earlier this year, Mayor Reed received communication from Transportation Secretary Darin Bergquist indicating the State is ready to sell the property. The Secretary indicated that in order to avoid a surplus auction, the State would need a price of “something in excess of the appraised price.” To the best of my knowledge and records, no specific price from the State has been given to the City of Brookings. Since then, the City has undertaken an environmental analysis of the property in a due diligence effort to ascertain the extent of asbestos in the building and potential soil contamination. The State was very cooperative in allowing access by us and our consultants to the site. The environmental reports are complete and it is estimated the clean-up/mitigation costs would be: Asbestos removal $10,000-$15,000 Petroleum soil contamination $ 5,000-$20,000 Petroleum tank removal/closure $15,000-$20,000 Salt storage building soil issues indeterminable Building demolition not determined Several years ago, the Council established a fund for the potential acquisition of such property. However, such funds have been spent by the Council for the Innovation Campus infrastructure and the acquisition of the Foster Industrial Park. Currently, there are insufficient funds to pay cash at this price for this acquisition either from the remaining balance of the original fund, or any fund in either the 2011 or 2012 budgets. You will recall when we discussed the 2012 budget, we contemplated this property acquisition and determined that debt financing would be necessary. Now that we have our environmental information, we should discuss the policy direction the Council wants to take relative to this issue. City of Brookings November 22, 2011 198 Some options are: 1) Offer the State a price “in excess of the appraised price” as they want and make the purchase. This would require debt financing on our part or possibly ask the State for a contract-for-deed. 2) Reject the property with no offer to the State; walk away from the deal once and for all. 3) Make a counter-offer for some amount less than appraisal and take into consideration the clean-up costs. 4) Let the State put the property up for public surplus auction and bid on it with the chance the high bid would be less than the appraisal. City Manager Introduction Action: Motion to approve, Request Public Comment, Roll Call City of Brookings November 22, 2011 199 27. Adjourn