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HomeMy WebLinkAbout2011_12_13 CC PKT Brookings City Council Tuesday, December 13, 2011 4:00 p.m. Executive Session 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. 4:00 p.m. Executive Session for personnel reasons (Main Floor Meeting Room) 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. Update by Downtown Core Event Committee regarding the Pub Crawl. 2. Review of questions raised by The Brownstone Restaurant and Lounge. 3. Review of additional liquor related questions. 4. City Council Member Ex-Officio Reports. 5. Joint Powers Board members’ Report. 6. City Council member introduction of topics for future discussion. * 7. 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 appointments to various city boards, committees and commissions. D. Action on Change Orders for City/County Government Center: 1) Fox Drywall & Plastering, $1,840, changing back of parapet to plywood for proper roofing attachment. 2) Peska Construction, $2,343, providing concrete & rebar for cooling tower pad upgrade. 3) Peska Construction, $3,204, adding reinforcement at entrance, stairs, and platform in chambers/board room. 4) American Electrical Construction, $100, re-locating floor electrical box for kiosk information center. 5) Mills Construction, $1,789, installing insulation and plywood for chiller pad. E. Action on Resolution No. 139-11, a Resolution authorizing Change Order No. 2 Final, for 2010-01SWR Curb & Gutter and Sidewalk Project, Owens Enterprises, Inc. (deduct). F. Action on Resolution No. 140-11, a Resolution authorizing Change Order No. 1 Final, for 2011-01SWR Curb & Gutter and Sidewalk Project, Timmons Construction, Inc. (increase of $2,817.00) G. Action on Resolution No. 143-11, concurring in the Placement of Stop Signs on 5th Street at its intersection with 11th Avenue. H. Action on Resolution No. 144-11, concurring in the Placement of Stop Signs on 7th Avenue South at its intersection with 3rd Street South. Motion to Approve, Request Public Comment, Roll Call 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. Open Forum/Presentations/Reports 6. Presentation of award to Rounds Construction for Southland Detention Pond Project. 7. Brookings Health Systems Quarterly Financial Report. 8. Open Forum. 9. SDSU Student Senate Report. First Readings** 10. Ordinance No. 26-11: An Ordinance amending Division 2. of Article V. of Chapter 74 of the Code of Ordinances of the City of Brookings, South Dakota and pertaining to Snow and Ice Removal from Sidewalks in the City of Brookings, South Dakota. Second Reading: December 20th **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. Second Readings & Public Hearings 11. Public hearing and action on 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. Action: Open and close public hearing, Motion to approve, Roll Call 12. Public hearing and action on 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. Action: Open and close public hearing, Motion to approve, Roll Call 13. Public hearing and action on 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, also known as 1818 20th Street South. Action: Open and close public hearing, Motion to approve, Roll Call 14. Public hearing and action on 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. Action: Open and close public hearing, Motion to approve, Roll Call 15. Public hearing and action on Resolution No. 141-11, a Resolution of Intent to Lease Real Property to South Dakota State University Foundation. Action: Open and close public hearing, Motion to approve, Roll Call Other Business 16. Action on City Manager Compensation Package for 2012. Action: Motion to Approve, Request Public Comment, Roll Call 17. Action on Resolution No. 142-11, a Resolution setting forth a schedule of proposed fines for violations of the Ordinances of the City of Brookings, South Dakota. Action: Motion to Approve, Request Public Comment, Roll Call 18. Action to officially name the Nature Park the “Dakota Nature Park.” Action: Motion to Approve, Request Public Comment, Roll Call 19. Review of Liquor Store draft Request for Proposal. Informational 20. Consideration of the City being a co-applicant of an EDA Grant. Action: Motion to Approve, Request Public Comment, Roll Call 21. Executive Session for purposes of consulting with legal counsel on pending contractual matters, pursuant to SDCL 1-25-2(3). Action: Motion to enter executive session – voice vote Motion to leave executive session – voice vote 22. Adjourn. Brookings City Council Tim Reed, Mayor, Jael Thorpe, Deputy Mayor & Council Member Council Members Tom Bezdichek, John Kubal, Mike McClemans, Keith Corbett, Ope Niemeyer Council Staff: Jeffrey W. Weldon, City Manager Steven Britzman, City Attorney Shari Thornes, City Clerk View the City Council Meeting Live on the City Government Access Channel 9. Rebroadcast Schedule: Wednesday 1:00pm / Thursday 7:00pm Friday 9:00pm / Saturday 1:00pm The complete City Council agenda packet is available on the city website: www.cityofbrookings.org If you require assistance, alternative formats, and/or accessible locations consistent with the Americans with Disabilities Act, please contact Shari Thornes, City ADA Coordinator, at 692-6281 at least 3 working days prior to the meeting. City of Brookings December 13, 2011 5 4:00 P.M. EXECUTIVE 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. Executive Session for personnel reasons. (Location: Main Floor Meeting Room) SDCL 1-25-2. Executive or closed meetings. Executive or closed meetings may be held for the sole purpose of: 1. Discussing the qualifications, competence, performance, character or fitness of any public officer or employee or prospective public officer or employee. The term “employee” does not include any independent contractors; 2. Discussing the expulsion, suspension, discipline, assignment of or the educational program of a student; 3. Consulting with legal counsel or reviewing communications from legal counsel about proposed or pending litigation or contractual matters; 4. Discussing marketing or pricing strategies by a board or commission of a business owned by the state or any of its political subdivisions, where public discussions would be harmful to the competitive position of the business. However, any official action concerning such matters shall be made at an open official meeting. An executive or closed meeting shall be held only upon a majority vote of the members of such body present and voting, and discussion during the closed meeting is restricted to the purpose specified in the closure motion. Nothing in 1-25-1 or this section may be construed to prevent an executive or closed meeting if the federal or state Constitution or the federal or state statutes require or permit it. A violation of this section is a Class 2 misdemeanor. Action: Motion to enter executive session – voice vote Motion to leave executive session – voice vote City of Brookings December 13, 2011 6 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. Update by Downtown Core Event Committee regarding the Pub Crawl. At the City Council’s request, representatives of the Downtown Core Event Committee will provide an update regarding the pub crawl. "Downtown Core Event Committee" (i.e. Pub Crawl) Daniel Roberts, SDSU Student President Patty Kratochvil, Threads of Memories Secretary Troy Hicks, Lantern Lounge Lori and Brennen Sullivan, Sully's Irish Pub and Brownstone Restaurant Les Rowland, Design Architects Sara Rowland, Trendz Kaytlin Pelton, SDSU Vicki Schuster, DBI Manager Jeff Miller, Brookings City Police Marty Hendricks, Brookings Street Department Jael Thorpe, Old Market and City Council Suzanne Hegg, Executive Director SD Children's Museum Mission Statement: Downtown Core Events Committee is comprised of downtown business owners, SDSU students, and city liaisons. Our mission is to address concerns prior to, during, and after major events in the downtown core area to improve relations between event organizers and the community. Points to be considered: 1. All large events that have an impact on the core area 2. Still in the planning, information gathering stages 3. Whose responsibility is the downtown core area? The four concerns we are currently addressing are: 1. Cleanup 2. Event Start Times 3. Retail I Customer issues 4. Security 5. S. Ordinances 6. Business owners responsibility Also find letters addressing similar concerns from Sioux Falls and Vermillion. Downtown Brookings Inc ---From: tent: fo: Downtown Brookings Inc [downtown@brookings.net] Wednesday, November 23, 2011 1:48PM Sarah Rowland (trendzdowntown@gmall.com); Les Rowland; 'Daniel Roberts'; Troy Hicks; 'Kaytlin Pelton'; 'Jeff Miller'; Patty Kratochvil; Sully's Pub Subject: What Vermillion does Dear DBC: 1 put in a call to the Downtown Vermillion program. I spoke with Ann, their director, and she said that their biggest "party day" downtown of the year is, of course, Dakota Days. fhey experience a lot of the same issues that we face for Hobo Day. She said that basically, all of the bars are in charge of cleanup outside of their bar and even go so far to clean up their adjoining neighbors' businesses. She said the downtown is cleaned up on Sunday morning, and the campus and community picks up on Monday. But the Downtown gets cleaned up first. She said groups and individuals who are hosting events are responsible, too, for their own cleanup. I like the way their street closure application is setup. It simply asks, "what's your plan to clean up afterward?" http:Uwww.vermlllion.us/documents/documents Request for Permit to Close-Public Street.pdf If you have any more questions, please let me know. ,-hanks. Vicki Schuster, Program Manager Downtown Brookings, Inc. 605-690-4856 downtown@brookings.net FB & MySpace: Downtown Brookings 1 • Downtown Brookings Inc 'rom: ant: '-to: Jason Dennison Oason@dtsf.com] Wednesday, November 23, 2011 12:37 PM Downtown Brookings Inc Subject: RE: Cleanup Vicki, Thank you for the email. It is a pleasure to discuss similar issues and solutions with fellow colleagues. 1. Although we do not host a collegiate based event, we do have several that serve large volumes of alcohol during them 2. We have a monthly Event Committee that is made of DTSF staff, City staff (risk management), Police, Fire, Health, and Traffic that review applications, provide recommendations and either approve or decline the application 3. Yes, they submit an event application. Then are asked to attend an Event Committee meeting for review, recommendations, approval or decline. Your organization could consider an agreement with the City to undertake this service via a paid annual contract. Municipalities often don't have enough staff to perform this service. 4. The event organizer should be responsible for the post event clean-up. Clean-up can be performed by volunteers or professional entity. In some cases a clean-up deposit could be requested 5. Yes, after some events or just a busy weekend in our downtown leaves behind beer bottles, litter, urine, vomit and all other types of debris for Monday morning. During the summer months DTSF hires seasonal staff to clean the sidewalks/streets ,~ rhis year, I actually attended the pub crawl. Other suggestions to consider would be: 1. Assign volunteers at intersections (with highly visible vests) to ensure safe street crossing, pedestrian safety, and provide eyes & ears on the street to communicate any issues to security/police. They could also help distribute downtown maps and guides, help people park, etc ... 2. Hire a roaming police/security team during the event 3. Provide hospitality training seminar to ali alcohol serving establishments on how to spot and stop serving those that have had too much alcohol 4. Develop a list of ways/opportunities for retail businesses to make the most of the event. Enter to Win Contests, Treasure Hunts, Deals and Discounts, consider adding family fun related activities by partnering with the Children's Museum (street demonstrations, petting zoo, rock climbing wall, try to get your businesses to participate, maybe a morning sidewalk sale .... Just a few thoughts, let me know if I may be of further assistance. Best regards, Jason Dennison, President Downtown Sioux Falls, Inc. 230 S. Phillips Ave., Suite 102 Sioux Falls, SO 57104 605.338.4009 , www.dtsf.com "-- 1 Request to Close Public Street Requests to close a public street for an event or activity are taken to the City Council for approval. The following application is requested to be submitted to the City Managers office for a street closing one week prior to the Council Meeting. · REQUEST TO CLOSE CITY STREET CITY OF VERMILLION This application shall be completed in time to be submitted to the City Council for consideration. City Council meetings are the first and third Mondays of each month. Requests are to be submitted to the City Managers office one week prior to the meeting to be included on the meeting agenda. The proposal shall contain all applicable information relative to the nature and purpose of the event the street closing is requested for, if additional space is needed please attach additional sheets or application letter with the required iufonnation. Organization Requesting---------------------- Contact Person-------------Phone-------- Contact Person Address----------------------- Event _______________ Date(s) ofEvent ____ _ Street(s) Requesting to be closed (Include a map if needed.) Street ________ from ________ to ________ _ Street Closing Times-----to------ If the street closing requested would affect other residents or businesses have they been notified of the request. Yes_ No __ Have arrangements been made for clean up after the event and other facilities? Please describe: If approved the contact person will need to make arrangements with the Street Department for barricades to properly denote the street closing. Signature of applicant------------date ____ _ City of Brookings December 13, 2011 10 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. Review of questions raised by The Brownstone Restaurant and Lounge. TO: Mayor and City Council Members FROM: City Manager Jeff Weldon RE: Brownstone Operating Agreement Attached in the packet is a letter from legal counsel on behalf of the proprietors of the Brownstone Restaurant and Lounge. As you recall, you issued one of the three newly-available On-Sale Liquor Operating Agreements to the Brownstone for $25,000 on a one-year “trial” basis. The owners of the Brownstone are asking for clarification as to the status of this Operating Agreement at the end of this trial basis time period. The City Council had discussions about this point, and I believe it was the intent of the Council to permanently allow them to keep the Operating Agreement as long as performance was met, but nothing specific as to such eventuality was ever promulgated in the Operating Agreement. What’s more, there was no other written documentation to give the Brownstone proprietors any assurance about what the process would be if the performance is, or is not, satisfactory to the City Council as a consideration for them retaining the operating agreement after the one year. In my opinion, such concern is justified and I would suggest an amendment to the Operating Agreement which conveys this intent. City Attorney Steve Britzman has prepared the attached amendment for this purpose. Staff recommends approval of the attached amendment. City of Brookings December 13, 2011 11 AMENDMENT TO LIQUOR OPERATING AGREEMENT _____________________ THIS AMENDMENT TO LIQUOR OPERATING AGREEMENT is made and entered into by and between the City of Brookings, hereinafter referred to as “City”, a Municipal Corporation, of Brookings, South Dakota and Brennan Sullivan and Lorraine Sullivan, doing business as “The Brownstone”, hereinafter referred to as the “Manager”, of Brookings, South Dakota, WITNESSETH: WHEREAS, the parties previously entered into a Liquor Operating Agreement which was approved on July 26, 2011; and WHEREAS, the parties now desire to modify the Liquor Operating Agreement approved on July 26, 2011, by including several amendments as hereinafter set forth, now therefore, IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: Section 5. of the Liquor Operating Agreement is hereby amended to include the following additional paragraph: 5. However, if, in the sole determination of the City Council, the Council finds on or about the anniversary date of this Agreement that the performance of the Manager of the Brownstone to be in accordance with the representations made at the time of initial application at the Council meetings and in the application and all materials pertaining thereto, this Operating Agreement will be extended and in full force and effect for an additional period of four (4) years, with the Manager having the option and privilege of a five (5) year extension, subject to the approval of the governing body of the City of Brookings. Section 10. of the Liquor Operating Agreement is hereby amended to include the following additional paragraph: 10. If this Operating Agreement is extended on or about the anniversary date of the initial one (1) year term for an additional period of four (4) years, the Manager will not be required to pay a further Operating Agreement Fee other than Annual Renewal Fees since the Manager paid the full amount of the Operating Agreement Fee at the time this Operating Agreement was initially approved. Accordingly, no further Operating Agreement Issuance Fee will be charged for the duration of the extended term or the five year renewal term. The parties hereby ratify and confirm all other provisions of the original Liquor Operating Agreement approved on July 26, 2011, which are not modified by this Amendment. IN WITNESS WHEREOF, the parties have executed this Agreement the dates set forth below. City of Brookings December 13, 2011 12 Dated this 13th day of December, 2011. CITY OF BROOKINGS, SOUTH DAKOTA, A Municipal Corporation (SEAL) By: Jeffrey W. Weldon, City Manager ATTEST: Shari Thornes, City Clerk Dated this ____ day of December, 2011. BRENNAN SULLIVAN and LORRAINE SULLIVAN, dba THE BROWNSTONE, Manager By: ______________________________ Brennan Sullivan By: ______________________________ Lorraine Sullivan LIQUOR OPERATING AGREEMENT Brennan and Lori Sullivan (dba The Brownstone Restaurant & Bar) THIS AGREEMENT made and entered into by and between the CITY OF BROOKINGS, a municipal corporation of the State of South Dakota, hereinafter referred to as the "City" and Brennan and Lori Sullivan (dba The Brownstone Restaurant & Bar), owners, hereinafter referred to as the "Manager". WITNESSETH: WHEREAS, the City has been issued an on-sale alcoholic beverage license and is engaged in the sale of alcoholic beverages, and WHEREAS, the City desires to enter into an operating agreement on a limited basis with the Manager for the purpose of operating an on-sale establishment or business for and on behalf of the City pursuant to law, and WHEREAS, the Manager has offered to have facilities in which to operate said on-sale establishment solely upon the premises hereinafter described. NOW, THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS: I. This Agreement is made and entered into on a limited basis between the parties hereto to allow the Manager to operate a retail on-sale premises, pursuant to and in accordance with all of the terms and conditions of this Agreement in accordance with all State laws and City Ordinances now in effect and as may be enacted in the future. 2. The Manager shall be individually responsible for all operating expenses of said on-sale establishment, including but not limited to utilities, taxes, insurance and license fees, if any. The Manager shall furnish all equipment and fixtures necessary to operate the establishment. 3. The on-sale establishment shall be located upon real estate in the City of Brookings, South Dakota, described as: Lot 7, Block, 3, Original Plat Addition, City of Brookings, Brookings County, South Dakota 4. The Manager shall dispense only alcoholic beverages supplied by the Municipal off-sale establishment. 5. This Agreement shall be in full force and effect for a period of one (I) year. This Agreement is not subject to an extension, and therefore terminates at the expiration of one (I) year from the date the Manager first sells alcoholic beverages pursuant to this Operating Agreement. 6. Either the Manager or the City may terminate this Agreement without cause upon ninety (90) days written notice served by either party upon the other. The City reserves the right to immediately suspend or revoke this Agreement without ninety (90) days written notice for alcohol related violations in accordance with the provisions of Resolution No. 25-88 or any amendments thereto or for any late payments for alcoholic beverages supplied by the Municipal off-sale establishment to be sold on the premises of Manager. 7. The Manager shall receive as full compensation for its services rendered, the net profit from the on-sale establishment under its management, and the sole profit to be derived by the City shall be the markup hereinafter set forth on alcoholic beverages furnished by the municipality to the Manager for the purposes of resale on the premises as above described. 8. The Manager shall pay to the City for all alcoholic beverages sold by the City to the Manager for resale on the above-described premises, the actual cost of distilled spirits and wine supplied by the City, plus eleven percent (I I%) in excess of such cost; the Manager shall pay to the City for all malt beverages sold by the City to the Manager for resale on the above-described premises, the actual cost of malt beverages, plus ten percent (I 0%) in excess of such cost. The actual cost shall include cost price and transportation charges. The markup percentages provided in this Agreement are subject to change by the City of Brookings. In the event markup percentages are changed by Ordinance, then the markup percentages provided by City Ordinance shall supercede the markup percentages provided herein. The Manager further agrees that if either of the markup percentages shall be increased at any time by the City, the Manager shall pay the markup as so increased. 9. A complete and detailed record shall be maintained by the City of all alcoholic beverages supplied to the on-sale Manager and such alcoholic beverages so supplied shall be evidenced by pre-numbered invoices prepared in triplicate showing the date, quantity, brand, size and actual cost of such item, and such invoice shall bear the signature of the authorized representative of the on-sale Manager or its authorized representative. One copy thereof shall be retained by the Municipal off-sale establishment, one copy shall be retained by the on-sale establishment, and one copy shall be filed with the City Clerk. All copies shall be kept as permanent records and made available for reference and audit purposes. The Manager also agrees to maintain a complete record of all alcoholic beverages received from the City. 10. The Manager agrees to pay the CITY OF BROOKINGS an Operating Agreement Fee of Twenty-five Thousand and no/ I 00 Dollars ($25,000.00) at or prior to the execution of this Agreement. The Manager shall be reimbursed by the City the sum of Twenty-two Thousand Five Hundred and no/ I 00 Dollars ($22,500.00) if this Agreement is not extended beyond a term of one (I) year, however this provision does not create any obligation of the City to extend this Operating Agreement beyond its term of one (I) year. The Manager agrees to pay the CITY OF BROOKINGS, an Annual Renewal License Fee of One Thousand Five Hundred and noll 00 Dollars ($1 ,500.00), which is due on or by January I, 2012. The payment of the Annual Renewal License Fee will not extend the term of this Operating Agreement beyond the term provided herein. II. The Manager agrees to keep the premises in a neat, clean and attractive appearance, and Manager further agrees to operate said on-sale establishment only on such days and at such hours as permitted by state law and city ordinances. 12. The Manager shall have the right to return, at any time, alcoholic beverages received from the City and to receive in return any deposit made for such alcoholic beverages; in the event of termination of the business, all unused alcoholic beverages, which may be resold without discount may be returned to the City and the Manager shall be reimbursed for the cost of such alcoholic beverages. 13. The Manager agrees to abide by the credit policies of the City and acknowledges, by execution of this Agreement, receipt of a copy of the credit policies of the City. The City reserves the right to change or terminate its credit policies at any time, but shall be required to provide written notice to Manager prior to the effective date of the change or termination date of the credit policies. 14. The Manager agrees to furnish the City upon demand, evidence of payment of the following: A. All salaries of on-sale employees; B. Social Security and withholding taxes on said employees; C. Worker's Compensation insurance premiums covering said employees; D. Unemployment taxes on the payrolls of said employees; E. General liability insurance protecting both the City and Manager against claims for injury or damages to persons or property, said policy to have general liability limits of at least Five Hundred Thousand Dollars ($500,000.00) single limit, and One Million-Dollars ($1 ,000,000.00) aggregate, and a limitation of Fifty Thousand Dollars ($50,000.00) for damage to property. The general liability insurance limits are subject to change and Manager agrees to change limits of insurance if required by the City; F. Rent and utility bills; G. Any and all miscellaneous expenses, including taxes; H. The Federal stamp fee. IS. The Manager agrees to observe all Federal and State laws and all ordinances of the City of Brookings. 16. The City covenants and agrees to furnish the on-sale license to Manager pursuant to the terms and conditions of this Operating Agreement and the terms and conditions of the on-sale license. 17. The City has the right to make inspections and investigations of the premises during the hours of operation, and make audits and examinations of the records of the Manager relating to the on-sale establishment. 18. It is further specifically understood and agreed that the waiver of the rights of the City under this Agreement shall not constitute a continuous waiver, and any violation or breach of the terms of this agreement by the Manager shall constitute a separate and distinct offense and grounds for immediate termination and revocation of this Agreement. 19. This agreement shall not be assignable to another person or location without the written consent of the City. IN WITNESS WHEREOF, the parties hereto have executed this agreement this 26'" day of July, 2011. CITY OF BROOKINGS, South Dakota A Municipal Corporation By:~~ /_t)~~ Jeffr . ld , City Manager MANAGER <:crrv :D. Wieczorek P. e. ATTORNEY AT LAW October 14, 2011 Jeff Weldon Brookings City Manager 311 Third Avenue Brookings, SO 57006 P.O. BOX 251 601 FOURTH STREET, SUITE 104 BROOKINGS, SOUTH DAKOTA 57006 TELEPHONE (605) 692-2883 FAX (605) 692-5756 TERRY D. WIECZOREK Re: The Brownstone Restaurant and Lounge Liquor Operating Agreement Dear Mr. Weldon: I represent the interests of Brennan and Lorraine Sullivan and their business, The Brownstone Restaurant and Lounge, located on Main Avenue in downtown Brookings. Of course my clients have received from the City of Brookings a Liquor Operating Agreement for The Brownstone and for that they are greatly appreciative. They do have some questions and concerns pertaining to the Liquor Operating Agreement that they have been granted and how itwill be perceived and dealt-with in:thefi.Jture by the City. Brennan and Lori have discussed or mentioned their concerns with certain'members of the City Council and I believe perhaps also with you. They have been encouraged to have their counsel write a letter to you, as the City Manager, referencing the questions and concerns. As is evident, Brennan and Lori Sullivan are making a huge investment in downtown Brookings by purchasing a previously vacant building and remodeling it.to an upscale restaurant and lounge. If everything goes according to plan, they will be open the middle of November, 2011. Having a Liquor Operating Agreement is imperative for the success of their business. Nevertheless, the City Council, when granting to the Sullivans a Liquor Operating Agreement, made the Operating Agreement effective for only a period of one year. Section five of the Operating Agreement states: This Agreement shall be in full force and effect for a period of one (1) year. This Agreement is not subject to an extension, and therefore · terminates at the expiration of one (1) year from the-dafethe Manager ; : first sells a:Jcohblic'beverages pUrsuant to'this'Opi:m:iting Agreem'er\t. · · -_: .. _.: . J. ., .. · ' I \ Brennan and Lori understand that the City's reason for issuing the Operating Agreement for only one year was based on the fact that this is a start up business with no track record and the further fact that the building had not yet been remodeled. The Sullivans made certain promises to the City Council about the type of business they were bringing to downtown Brookings. The City Council wanted to make sure that they followed through with those promises and if not, perhaps they would lose the Liquor Operating Agreement after one year. Brennan and Lori Sullivan are rightly concerned about what happens at the expiration of the one year period of time they have been granted a Liquor Operating Agreement. When the Operating Agreement terminates after one year does that mean their Operating Agreement will then be offered up by the City to be applied for by not only the Sullivans but any other person or entity that may wish to vie for the Operating Agreement? Assuming the Sullivans are up and running and operating their restaurant and lounge in a manner consistent with that represented to the Council in the application process, do they nevertheless have to compete once again for the Liquor Operating Agreement that they have held for the last year? The answer certainly is not clear from the Liquor Operating Agreement. After having invested themselves and substantial sums of money into the business, are they at risk of not having a Liquor Operating Agreement in the future? The Sullivans have been told by members of the City Council that if their business is up and running and operating in the manner that was represented to the Council in the application process, that they would, of course, keep their Liquor Operating Agreement after the first year expires. It seems to me, however, that another person or entity could make a strong argument that at the end of one year the Operating Agreement is up for grabs and that the Sullivans along with any other person or entity interested in an Operating Agreement would be entitled to apply for the Sullivan Operating Agreement and have·a hearing on the application before the City Council. I hope you can understand how this concerns the Sullivans. Recently the City Council granted a temporary Liquor Operating Agreement to Old Market. This Liquor Operating Agreement was one granted to Buffalo Wild Wings for a full term of ten years, as I understand it, although Buffalo Wild Wings was not yet up and running, had not yet broke ground, and had certainly made nothing but representations or promises to the City Council as to what it would bring to the City of Brookings. I believe the Old Market temporary Liquor Operating Agreement allows for Old Market to hold the Operating Agreement until such time as Buffalo Wild Wings needs it when Buffalo Wild Wings opens its doors. That could be several months or over one year. am not sure anyone knows how long it will be before Buffalo Wild Wings opens. At the time of the Council's consideration of issuing a temporary Operating Agreement to Old Market, the question was asked what difference the temporary Operating Agreement for Old Market is to that Operating Agreement issued to the Sullivans or that Operating Agreement issued to the Shamrock. The answer as I recall was that the Operating Agreement issued to Old Market is no different than the ones issued to the Sullivans and Shamrock because they all terminate after a period of time. The response that the temporary Operating Agreement to Old Market is no different than the Operating Agreements to the Sullivans and the Shamrock is of great concern to the Sullivans. Allegedly the understanding is that the Sullivans will keep their Liquor Operating Agreement as long as they are open and operating an establishment as they have represented to the City Council at the time of the application process. However, Old Market will, without question, no longer have that Operating Agreement they will be utilizing on a temporary basis once Buffalo Wild Wings is ready to open its doors. Further, even though the representation was made that the Old Market temporary Operating Agreement is the same as the Liquor Operating Agreements granted to the Sullivans and to the Shamrock, interestingly the Sullivans and the Shamrock both had to pay twenty-five thousand dollars ($25,000.00) up front for their respective Operating Agreements. Although the temporary Operating Agreement issued to Old Market is written for one year or more or until Buffalo Wild Wings opens, whichever is later, the City only required Old Market to pay two thousand five hundred dollars ($2,500.00) for its temporary Operating Agreement, a small fraction of the amount the Sullivans and the Shamrock have been required to pay. That does not seem to equate to the Operating Agreements being no different from one another. To avoid any potential difficult issues for the City and for the Sullivans at the one year expiration date of their current Operating Agreement, we would suggest that it would make great sense to modify the Operating Agreement issued to the Sullivans to one which is renewable by the Sullivans and the City after the one year term expires. That way the Operating Agreement would not be up for grabs to any party that may be interested or may argue that it should be available to be applied for by any interested party. The City may review the Liquor Operating Agreement issued to the Sullivans as it does in any other renewal of a Liquor Operating Agreement. If the Sullivans deserve to keep the Operating Agreement, it can be renewed. It should be able to be renewed for a ten year term, similar to the term of the Operating Agreement that has already been issued to Buffalo Wild Wings. Again, we believe it is the general understanding of everyone that the Sullivans will keep their Liquor Operating Agreement after the one year term expires as long as everything is going according to plan. To leave the Operating Agreement written as it currently is wherein it "terminates at the expiration of one year," opens up the process for unnecessary scrutiny and conflict. The Sullivans would be happy to discuss these matters at any time with you or any member of the City Council. Thank you for your consideration of these issues. TDW:bjh cc: Brennan and Lori Sullivan City of Brookings December 13, 2011 21 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. Review of additional liquor related questions. Staff has identified a few remaining policy questions regarding alcohol licensing which need to be addressed by the City Council. Questions are categorized by license type. Unrestricted Liquor Operating Agreements. Per Resolution No. 128-11, adopted on October 25, 2011, the City has set the fee for...“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.” Question: In addition to licenses created by census increase, who would be required to pay the $100,000 one-time fee? Specific examples: 1) Operating agreements returned to the city 2) Transfers where internal ownership shifts 3) Transfers to an entirely new entity Question: Would a payment plan be permitted? According to the State Department of Revenue and the City Attorney, payment plans for the unrestricted license fee would be permissible. However, payment plan for the restaurant license fee is not allowed. 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. Passed and approved on the 25th day of October, 2011. City of Brookings December 13, 2011 22 Temporary/Special Alcohol Licenses The State Legislature modified the criteria and rules for special temporary alcohol licenses. SDCL 35-4-124. Mandates the creation of rules: “The local governing body shall establish rules to regulate and restrict the operation of the special license, including rules limiting the number of licenses that may be issued to any person within any calendar year.” License types include the following: (1) A special malt beverage retailers license in conjunction with a special event within the municipality or county to any civic, charitable, educational, fraternal, or veterans organization or any licensee licensed pursuant to subdivision 35-4-2(4) , (6), or (16) in addition to any other licenses held by the special events license applicant; (2) A special on-sale wine retailers license in conjunction with a special event within the municipality or county to any civic, charitable, educational, fraternal, or veterans organization or any licensee licensed pursuant to subdivision 35-4-2(4), (6), or (12) or chapter 35-12 in addition to any other licenses held by the special events license applicant; (3) A special on-sale license in conjunction with a special event within the municipality or county to any civic, charitable, educational, fraternal, or veterans organization or any licensee licensed pursuant to subdivision 35-4-2(4) or (6) in addition to any other licenses held by the special events license applicant; or (4) A special off-sale package wine dealers license in conjunction with a special event within the municipality or county to any civic, charitable, educational, fraternal, or veterans organization or any licensee licensed pursuant to subdivision 35-4-2(3), (5), (12), (17A), or (19) or chapter 35-12 in addition to any other licenses held by the special events license applicant. A special off-sale package wine dealers licensee may only sell wine manufactured by a farm winery that is licensed pursuant to chapter 35-12. 35-4-124. Special alcoholic beverage licenses issued in conjunction with special events. Any municipality or county may issue: (1) A special malt beverage retailers license in conjunction with a special event within the municipality or county to any civic, charitable, educational, fraternal, or veterans organization or any licensee licensed pursuant to subdivision 35-4-2(4), (6), or (16) in addition to any other licenses held by the special events license applicant; (2) A special on-sale wine retailers license in conjunction with a special event within the municipality or county to any civic, charitable, educational, fraternal, or veterans organization or any licensee licensed pursuant to subdivision 35-4-2(4), (6), or (12) or chapter 35-12 in addition to any other licenses held by the special events license applicant; (3) A special on-sale license in conjunction with a special event within the municipality or county to any civic, charitable, educational, fraternal, or veterans organization or any licensee licensed pursuant to subdivision 35-4- 2(4) or (6) in addition to any other licenses held by the special events license applicant; or (4) A special off-sale package wine dealers license in conjunction with a special event within the municipality or county to any civic, charitable, educational, fraternal, or veterans organization or any licensee licensed pursuant to subdivision 35-4-2(3), (5), (12), (17A), or (19) or chapter 35-12 in addition to any other licenses held by the special events license applicant. A special off-sale package wine dealers licensee may only sell wine manufactured by a farm City of Brookings December 13, 2011 23 winery that is licensed pursuant to chapter 35-12. Any license issued pursuant to this section may be issued for a period of time established by the municipality or county. However, no period of time may exceed fifteen consecutive days. No public hearing is required for the issuance of a license pursuant to this section if the person applying for the license holds an on-sale alcoholic beverage license or a retail malt beverage license in the municipality or county or holds an operating agreement for a municipal on-sale alcoholic beverage license, and the license is to be used in a publicly-owned facility. The local governing body shall establish rules to regulate and restrict the operation of the special license, including rules limiting the number of licenses that may be issued to any person within any calendar year. Source: SL 2010, ch 185, § 1; SL 2011, ch 175, § 1. 35-4-2. Classes of licenses enumerated--Fees. Classes of licenses, with the fee of each class, follow: (3) Off-sale--not less than five hundred dollars in municipalities of the first class, not more than four hundred dollars in municipalities of the second class, and not more than three hundred dollars in municipalities of the third class. The renewal fee for such licenses may not exceed five hundred dollars in municipalities of the first class, four hundred dollars in municipalities of the second class, and three hundred dollars in municipalities of the third class; (4) On-sale--in municipalities of various classes: municipalities of the first class, not less than one dollar for each person residing within the municipality as measured by the last preceding federal census, the renewal fee for such license is fifteen hundred dollars; municipalities of the second class, no more than twelve hundred dollars; municipalities of the third class, no more than nine hundred dollars; (5) Off-sale licenses issued to municipalities under local option--not less than two hundred fifty dollars; (6) On-sale licenses issued outside municipalities--except as provided in § 35-4-11.9, not less than the maximum that the municipality to which the applicant is nearest is charging for a like license in that municipality, the renewal fee shall be the same as is charged for a like license in the nearest municipality. However, if the nearest municipality is more than fifteen miles from the on-sale license, the fee shall be established pursuant to § 35-4- 11.10. If the municipality to which the applicant is nearest holds an on-sale license, pursuant to § 35-3-13 and does not charge a specified fee, then the fee shall be the maximum amount that could be charged as if the municipality had not been authorized to obtain on-sale licenses pursuant to § 35-3-13. However, if the nearest municipality is a municipality of the first class and is authorized to hold an on-sale license pursuant to § 35-3-13, such fee may not be more than one hundred fifty percent of the minimum a municipality not so authorized may charge for a like license. The renewal fee shall be the same as could be charged for a like license in the nearest municipality; (12) Wine retailers, being both package dealers and on-sale dealers--five hundred dollars; (16) Malt beverage retailers, being both package dealers and on-sale dealers--three hundred dollars; (17A) Malt beverage and wine produced pursuant to chapter 35-12 package dealers--two hundred twenty-five dollars; (19) Off-sale package wine dealers in table wines, sparkling wines, sacramental wine, and distilled spirits produced from product provided to an artisan distiller by the respective farm winery to be operated in conjunction with a farm winery established pursuant to chapter 35-12--one hundred fifty dollars; and City of Brookings December 13, 2011 24 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 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 25 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. 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 26 5:00 P.M. WORK SESSION Work Sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 6. 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 27 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. 7. Review of Council Agenda, Invites and Obligations. Date Day Event & Brief Description Time Location / Town / Address / Directions 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 15 Wednesday Goal Setting Reception & Dinner with Leadership Team 5:00 p.m. TBD February 16 Thursday Goal Setting Retreat 8:00 a.m. – 5:00 p.m. TBD February 28 Tuesday Council Meeting 5:00 p.m. Council Chambers March 10-14 NLC – Congressional City Conference Washington, DC March 13 Tuesday Council Meeting 5:00 p.m. Council Chambers March 19-23 Board of Equalization Meeting Room March 27 Tuesday Council Meeting 5:00 p.m. Council Chambers April 12 Thursday Council Meeting / Election Canvass 5:00 p.m. April 24 Tuesday Council Meeting 5:00 p.m. Council Chambers May 8 Tuesday Council Meeting 5:00 p.m. Council Chambers May 22 Tuesday Council Meeting 5:00 p.m. Council Chambers June 12 Tuesday Council Meeting 5:00 p.m. Council Chambers June 26 Tuesday Council Meeting 5:00 p.m. Council Chambers City of Brookings December 13, 2011 28 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 appointments to various city boards, committees and commissions. D. Action on Change Orders for City/County Government Center: 1) Fox Drywall & Plastering, $1,840, changing back of parapet to plywood for proper roofing attachment. 2) Peska Construction, $2,343, providing concrete & rebar for cooling tower pad upgrade. 3) Peska Construction, $3,204, adding reinforcement at entrance, stairs, and platform in chambers/board room. 4) American Electrical Construction, $100, re-locating floor electrical box for kiosk information center. 5) Mills Construction, $1,789, installing insulation and plywood for chiller pad. E. Action on Resolution No. 139-11, a Resolution authorizing Change Order No. 2 Final, for 2010- 01SWR Curb & Gutter and Sidewalk Project, Owens Enterprises, Inc. (deduct). F. Action on Resolution No. 140-11, a Resolution authorizing Change Order No. 1 Final, for 2011- 01SWR Curb & Gutter and Sidewalk Project, Timmons Construction, Inc. (increase of $2817.00) G. Action on Resolution No. 143-11, concurring in the Placement of Stop Signs on 5th Street at its intersection with 11th Avenue. H. Action on Resolution No. 144-11, concurring in the Placement of Stop Signs on 7th Avenue South at its intersection with 3rd Street South. 5. Items removed from Consent Agenda. Open Forum/Presentations/Reports 6. Presentation of award to Rounds Construction for Southland Detention Pond Project. 7. Brookings Health Systems Quarterly Financial Report. 8. Open Forum. 9. SDSU Student Senate Report. First Readings 10. Ordinance No. 26-11: An Ordinance amending Division 2. of Article V. of Chapter 74 of the Code of Ordinances of the City and Brookings, South Dakota and pertaining to Snow and Ice Removal from Sidewalks in the City of Brookings, South Dakota. Second Reading: December 20th Second Readings & Public Hearings 11. Public hearing and action on 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. 12. Public hearing and action on 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. City of Brookings December 13, 2011 29 13. Public hearing and action on 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. 14. Public hearing and action on 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. 15. Public hearing and action on Resolution No. 141-11, a Resolution of Intent to Lease Real Property to South Dakota State University Foundation. Other Business 16. Action on City Manager Compensation Package for 2012. 17. Action on Resolution No. 142-11, a Resolution setting forth a schedule of proposed fines for violations of the Ordinances of the City of Brookings, South Dakota. 18. Action to officially name the Nature Park the “Dakota Nature Park.” 19. Review of Liquor Store draft Request for Proposal. 20. Consideration of the City being a co-applicant of an EDA Grant. 21. Executive Session for purposes of consulting with legal counsel on pending contractual matters, pursuant to SDCL 1-25-2(3). 22. Adjourn. City of Brookings December 13, 2011 30 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 appointments to various city boards, committees and commissions. D. Action on Change Orders for City/County Government Center: 1) Fox Drywall & Plastering, $1,840, changing back of parapet to plywood for proper roofing attachment. 2) Peska Construction, $2,343, providing concrete & rebar for cooling tower pad upgrade. 3) Peska Construction, $3,204, adding reinforcement at entrance, stairs, and platform in chambers/board room. 4) American Electrical Construction, $100, re-locating floor electrical box for kiosk information center. 5) Mills Construction, $1,789, installing insulation and plywood for chiller pad. E. Action on Resolution No. 139-11, a Resolution authorizing Change Order No. 2 Final, for 2010-01SWR Curb & Gutter and Sidewalk Project, Owens Enterprises, Inc. (deduct) F. Action on Resolution No. 140-11, a Resolution authorizing Change Order No. 1 Final, for 2011-01SWR Curb & Gutter and Sidewalk Project, Timmons Construction, Inc. (increase of $2817.00) G. Action on Resolution No. 143-11, concurring in the Placement of Stop Signs on 5th Street at its intersection with 11th Avenue. H. Action on Resolution No. 144-11, concurring in the Placement of Stop Signs on 7th Avenue South at its intersection with 3rd Street South. *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 December 13, 2011 31 CONSENT AGENDA #4 B. Action to approve City Council Minutes. The draft November 15th and November 22nd Brookings City Council minutes are enclosed for Council review and approval. City of Brookings December 13, 2011 32 Brookings City Council November 15, 2011 (unapproved) The Brookings City Council held a special meeting on Tuesday, November 15, 2011 at 5:00 p.m., at City Hall with the following members present: Mayor Tim Reed, Council Members John Kubal, Mike McClemans, Ope Niemeyer, Jael Thorpe and Keith Corbett. Tom Bezdichek was absent. City Attorney Steve Britzman, City Manager Jeff Weldon and City Clerk Shari Thornes were also present. Brookings Municipal Liquor Store Discussion. Pursuant to action from September 27, 2011, City Manager Jeffrey Weldon provided the City Council with information and options pertaining to liquor store management and operations, including models of operation, cost analysis of municipally owned store, cost accounting charge to override operation, operational transfers, profit goal established and attained, industry standards for certain operational benchmarks, customer satisfaction survey and consideration of additional off-sale retail outlets. A motion was made by Reed, seconded by McClemans, requesting the City Manager add to a December meeting, an agenda item to discuss the possible structure for a request for proposal on the liquor store. All present voted yes; motion carried. Adjourn. A motion was made by Corbett, seconded by Thorpe, to adjourn. All present voted yes; motion carried. Meeting adjourned at 6:29 p.m. CITY OF BROOKINGS ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk City of Brookings December 13, 2011 33 Brookings City Council November 22, 2011 (unapproved) The Brookings City Council held a meeting on Tuesday, November 22, 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. Overview of the Brookings Economic Development Corporation. Al Heuton, BEDC Executive Director, updated the council and public on the Brookings Economic Development Corporation’s 2011 work program and development strategy. Future Discussion Topics. Pub Crawl. A motion was made by Corbett, seconded by Bezdichek, requesting a formal briefing on the status of the pub crawl committee at the December 13th meeting. All present voted yes; motion carried. Northwest Quadrant. A motion was made by McClemans, seconded by Kubal, requesting an update, when convenient, on the document provided by the BEDC regarding on the Northwest Quadrant project. All present voted yes; motion carried. REGULAR MEETING. Ordinance No. 20-11was removed from the agenda. Applicant withdrew application. Action to name the Nature Park was deferred to December 13th. Consent Agenda. A motion was made by Corbett, seconded by Kubal, to approve the consent agenda: A. Action to approve the agenda as amended. B. Action to approve the October 25th 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. 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 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. Liquor (On-Sale): Applebee’s/Porter Apple Co. B Inc., 3001 LeFevre Dr.; BraVo’s Inc., 610 Medary Ave.; Brownstone Restaurant & Bar, 313 Main Ave.; Cubby’s Sports Bar & Grill / City of Brookings December 13, 2011 34 GDT Inc., 307 Main Ave.; Danny’s / David Olson Inc., 703 Main Ave. So.; BPO Elks/ Brookings Lodge #1490, 516 4th St.; Fireside Inc., 2515 E. 6th St.; Jim’s Tap, 309 Main Ave.; Half Pint Enterprise Inc. / Lantern Lounge, 303 3rd St.; 9 Bar Nightclub (Nine Inc.), 303 Main Ave.; Old Market Eatery, LLC, 424 5th St. (utilizing Buffalo Wild Wings Bar & Grill License); Park Hospitality, Inc., 2500 6th St.; Pheasant Café & Lounge, 726 Main Ave. So.; Prairie Lanes Inc., 722 Western Ave.; Ram & O’Hare’s Ent. LLC/The Ram, 327 Main Ave.; Ray’s Corner / Fergen Enterprises Inc., 401 Main Ave.; Skinner’s Pub Inc., 300 Main Ave.; B&L Sullivan Inc./Sully’s Irish Pub, 421 Main Ave.; GEO Dokken Post 2118/VFW, 520 Main Ave. Liquor (Off-Sale): Brookings Municipal Liquor Store, 780 22nd Ave. So. Wine (On-Off Sale): BraVo’s Inc., 610 Medary Ave.; Brookings Municipal Liquor Store, 780 22nd Ave. So; CHS, Inc. (Cenex Station), 1005 6th St.; Cottonwood Bistro, 1710 6th St.; Guadalajara, 1715 6th St., Suite F; Hy-Vee Food Store, 700 22nd Ave.; Old Sanctuary, 928 4th St.; Skinner’s Pub Inc., 300 Main Ave.; Swiftel Center, 824 32nd Ave.; Taste of Europe, 1300 Main Ave. So.; Wal- Mart Supercenter #1538, 2233 6th Street 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. 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. 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). 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. On the motion, all present voted yes; motion carried. Recognition of local Governor’s Awards Nominees. The following businesses were recognized as the Brookings nominees for the 2011 Governor’s Awards, a program that recognizes individuals and employers for their contributions to the rehabilitation and employment of persons with disabilities in South Dakota: 1) The Brookings Humane Society has been nominated for Outstanding Small Private Employer, 2) The Days Inn has been nominated for Outstanding Small Private Employer, and 3) The United Retirement Center has been nominated for Outstanding Large Private Employer. City of Brookings December 13, 2011 35 First Reading – Ordinance No. 21-11. A first reading was held on 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.” Public Hearing: December 13, 2011 First Reading - Ordinance No. 23-11. A first reading was held on 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. Public Hearing: December 13, 2011. First Reading – Ordinance No. 24-11. A first reading was held on 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 13, 2011. First Reading – Ordinance No. 25-11. A first reading was held on 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 13, 2011. Ordinance No. 18-11. A motion was made by Corbett, seconded by Kubal, to terminate the second reading of 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. All present voted yes; motion carried. Malt Beverage License – Aramark Educational Services, LLC. Corbett gave a public statement that he is an employee of SDSU. He visited with the City Attorney and was assured there was no issue with him voting on these two items. Corbett stated he intended to vote on both items. A public hearing was held on an On-Off Malt Beverage Alcohol License for Aramark Educational Services, LLC, for the McCrory Gardens Education & Visitors Center at South Dakota State University, 6th Street/22nd Avenue. A motion was made by Niemeyer, seconded by Kubal, to approve. All present voted yes; motion carried. Resolution No. 134-11. A public hearing was held 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 Education & Visitors Center at South Dakota State University, 6th Street/22nd Avenue. No public comment. A motion was made by Bezdichek, seconded by Corbett, to approve Resolution No. 134-11. All present voted yes; motion carried. 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 City of Brookings December 13, 2011 36 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. Resolution No. 135-11. A public hearing was held 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. No public comment. A motion was made by Bezdichek, seconded by McClemans, to approve Resolution No. 135-11. All present voted yes; motion carried. 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. Resolution No. 136-11. A public hearing was held 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. No public comment. A motion was made by Corbett, seconded by McClemans, to approve Resolution No. 136-11. All present voted yes; motion carried. 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. Resolution No. 137-11. A public hearing and action on Resolution No. 137-11, a Resolution of Intent to Lease Real Property to Private Person (LNJ Farms & Ranch). No public comment. A motion was made by Kubal, seconded by Bezdichek, to approve Resolution No. 137-11. All present voted yes; motion carried. City of Brookings December 13, 2011 37 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. Ordinance No. 19-11. A 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.). No public comment. A motion was made by Corbett, seconded by Bezdichek, to approve Ordinance No. 19- 11. All present voted yes; motion carried. Development Plan. A motion was made by McClemans, seconded by Corbett, to approve the Den-Wil Initial Development Plan. All present voted yes; motion carried. Governance & Ends Policy Amendments. A motion was made by Reed, seconded by Niemeyer, to approve suggested amendments to the Governance and Ends Policy. All present voted yes; motion carried. Ends Policy 1, Financial Stability Financial Stability – Key Performance Area The City Manager is therefore prohibited from budgeting or spending that: 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. Guideline C: 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. City of Brookings December 13, 2011 38 a. Non-spendable Fund Balance– Amounts that are not in a spendable form (such as inventory) or are required to be maintained intact. b. Restricted Fund Balance – Amounts that can be spent only for the specific purposes stipulated by external resource providers, or enabling legislation. Restrictions may be changed or lifted only with the consent of the resource providers. c. Committed Fund Balance- Amounts that can be used only for the specific purposes determined by a formal action of the City Council. Commitments may be changed or lifted only the City Council taking the same formal action that imposed the constraint originally. d. Assigned Fund Balance-Amounts the City intends to use for a specific purpose. e. Unassigned Fund Balance- The residual classification for the general fund and includes amounts that not contained in the other classifications. Unassigned amounts are the portion of fund balance which is not obligated or specifically designated and is available for any purpose. The City Manager is directed to use first the restricted resources, prior to the use of the unrestricted resources, when an expense is incurred for purposes for which both restricted and unrestricted funds are available. When expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications can be used, committed amounts should be reduced first, followed by assigned amounts and the unassigned amounts. City Council hereby directs the City Manager to establishes and maintain the following committed fund balance: a. Fiscal Stabilization Arrangement-A minimum of 10 percent of the General Fund beginning adopted appropriations (expenditure budget) should be incrementally established and maintained for use in meeting unanticipated needs and/or emergencies. 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. City of Brookings December 13, 2011 39 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 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. 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. Net Assets serve over time a useful indicator of a government’s financial position. Within the annual financial statement the City Manager will annually provide a management discussion and analysis of business type funds and the changes in net assets. 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 up to 15% of the transfer from the Brookings Municipal Utilities to the Brookings School District. Ends Policy 2, Municipal Services Guideline B: In terms of Functional Services, which include all departments of the City other than Life Safety, the City Manager will: 5. Continually strive to improve operational efficiencies; 6. Establish, model, and enforce the highest standards of exceptional customer service from city employees. Guideline C: The City of Brookings has unique enterprise operations including the Solid Waste Fund, 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: 2. Review the Return on Assets (ROA) on an annual basis. The Return on Assets will be calculated 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. 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 City of Brookings December 13, 2011 40 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. Ends Policy 4, Economic Development Economic Development – Key Performance Area 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) 5% of the annual revenue of 75% - 2nd Penny Sales & Use Tax should be reserved 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. 2. Economic development entities are working cooperatively and collaboratively. 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. d) The BEDC is the primary host. There will be a planned, cooperative effort for all “hostings”. 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 commercial based business and industry. A specific policy guides the management of the Research and Technology Center. 10. The appropriation for tourism and promotion will not exceed the sum of the “3rd Penny” revenues raised annually. A motion was made by Reed, seconded by Corbett, to schedule several review sessions of G&E policy. On the motion: Corbett, Kubal, McClemans voted yes; Bezdichek, Niemeyer, Reed and Thorpe voted no; motion failed. City of Brookings December 13, 2011 41 Resolution No. 138-11. A motion was made by Niemeyer, seconded by Thorpe, to approve Tax Increment District Number 5 Project Plan. No public comment. All present voted yes; motion carried. 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. Discussion and possible action on Highway 14 turn back. There was no discussion or action regarding this agenda item, which was to discuss the possibility of the City of Brookings taking over jurisdiction of 6th Street from the Western Avenue diagonal to 34th Avenue. SDDOT Property. Potential acquisition of South Dakota Department of Transportation (DOT) old maintenance shop property located on Highway 14 between I-29 and 32nd Avenue. A motion was made by Reed, seconded by Niemeyer, authorizing the City Manager to convey the Brookings City Council’s interest in purchasing the SD Department of Transportation (DOT) old maintenance shop property, located on Highway 14 between I-29 and 32nd Avenue, at the appraised price of $1,825,000, provided the environmental issues are resolved prior to purchase and the City Council takes final action to approve the price and purchase. All present voted yes; motion carried. CONSENT AGENDA AMENDMENT. A motion was made by Reed, seconded by Niemeyer, to reconsider action on the consent agenda. All present voted yes; except Thorpe abstained, motion carried. A motion was made by Corbett, seconded by Kubal, to approve the consent agenda. All present voted yes; except Thorpe abstained, motion carried. Adjourn. A motion was made by Corbett, seconded by Thorpe, to adjourn. All present voted yes; motion carried. Meeting adjourned at 7:51 p.m. City of Brookings December 13, 2011 42 CONSENT AGENDA #4 C. Action on appointments to various city boards, committees and commissions. Mayor Reed has submitted the following appointment recommendations for Council consideration. The Mayor’s appointment recommendations for the Board of Health and Brookings Health Systems Board will be forwarded at a later date. Board of Adjustment Number of positions: 3 (1 member, 2 alternates) Positions currently held by: Matt Kurtenbach (member) Jere Hieb (1st Alternate) Mary Kidwiler (2nd Alternate) Term Length: 3 years Residency Requirement: Required or reside within Joint Jurisdictional Area Purpose: The Board of Adjustment has the authority to act on variances or special exceptions to the zoning ordinance. Four of the five members must vote in the affirmative for a motion to pass. Mayor’s Appointment Recommendations: 1. Reappoint Jere Hieb (move into full position) 2. Reappoint Mary Kidwiler (move into 1st alternate position) 3. Readvertise 2nd alternate vacancy (Note: Matt Kurtenbach does not wish reappointment) Board of Appeals Number of positions: 2 Positions currently held by: Dan Rettedal, Dick Anderson Term Length: 5 years Residency Requirement: Not required Purpose: The function of the Board of Appeals is to hear and decide on appeals or orders, decisions or determinations made by the city building officials relative to the application and interpretation of the Building Code, and to determine the suitability of alternate materials and methods of construction. All members of the Board must be qualified by training and experience to pass upon the matters pertaining to building construction. Mayor’s Appointment Recommendations: 1. Appoint Jonathan Meendering 2. Readvertise one vacancy (incumbents do not wish reappointment) City of Brookings December 13, 2011 43 Brookings Committee for People who have Disabilities Number of positions: 7 Positions currently held by: Lonnie Bayer, Dave Miller, Geoffrey Graff, Jessie Kuechenmeister , Nancy Hartenhoff-Crooks , Jeff Vostad , Alan Davis Term Length: 3 years Residency Requirement: Required for 7 members Purpose: The Brookings Committee for People who have Disabilities strives to advocate for the rights of people who have disabilities in our community. Throughout the year, specific events are held to bring awareness and information to our citizens. Technical assistance is provided to the business community, private individuals, governmental entities and nonprofit organizations. This is a service not provided by any other entity in Brookings. The goals of this service are to improve the quality of life for people who have disabilities through enhancing the knowledge base of entities in the community; and to further serve as a community-based advocacy group enhancing the ability of local entities to comply with Federal Civil Rights legislation. Mayor’s Appointment Recommendations: 1. Reappoint Lonnie Bayer 2. Reappoint Dave Miller 3. Reappoint Geoffrey Graff 4. Reappoint Jessie Kuechenmeister 5. Reappoint Nancy Hartenhoff-Crooks 6. Reappoint Jeff Vostad 7. Reappoint Alan Davis Historic Preservation Commission Number of positions: 3 Positions currently held by: Les Rowland, Ryan Hall, Janet Gritzner Term Length: 3 years Residency Requirement: Required Purpose: The purpose of the Historic Preservation Commission is to allow the city to engage in a comprehensive program of historic preservation to promote the inspiration, pleasure and enrichment of the citizens of Brookings through identification, documentation, preservation, promotion, and development of the city’s historic resources. Mayor’s Appointment Recommendations: 1. Reappoint Les Rowland 2. Reappoint Father Ryan Hall 3. Reappoint Janet Gritzner Human Rights Committee Number of positions: 4 (3 members and 1 student representative) Positions currently held by: Lawrence Novotny, Patty Bacon, Chandradhar Dwivedi, Vacancy for student representative City of Brookings December 13, 2011 44 Term Length: 3 years (1 year student representative) Residency Requirement: Not required Purpose: The Human Rights Committee has the power to investigate alleging discrimination. Other programs include:  The study of the existence, character, causes and extent of discrimination in employment, housing and public accommodations, property rights, education and public services.  Advise and provide a forum for those subjected to unfair and discriminatory practices in the City and County.  Advise City officials concerning issues of discrimination.  Conducting educational programs and disseminates information to further the committee’s policy to eliminate discrimination in the city. Mayor’s Appointment Recommendations: 1. Reappoint Lawrence Novotny 2. Reappoint Patty Bacon 3. Reappoint Chandradhar Dwivedi 4. Appoint Anna Leisa Schuh (student position) Library Board Number of positions: 2 Positions currently held by: Tami Watson, Amber Peper Term Length: 3 years Residency Requirement: Required Purpose: The Library Board is responsible for the appointment of the Librarian, the conduct of business and development of policies for the Brookings Public Library materials, the governance of the library and the use of the public library services and materials. Mayor’s Appointment Recommendations: 1. Appoint Janell Hoffelt 2. Appoint Bill Gengler (Incumbents do not wish for reappointment.) Swiftel Center Advisory Committee Number of positions: 1 Position currently held by: Tom Coughlin Term Length: 3 years Residency Requirement: Not required Purpose: The Swiftel Center Advisory Committee shall act only in an advisory capacity to the city council, however it shall, in particular, advise the city concerning marketing, operational issues and management of the Swiftel Center, and in particular, shall advise and assist the city in the performance of contracts between the City of Brookings and County of Brookings, and between the City of Brookings and the firm managing the Swiftel Center and which concern the Swiftel Center. City of Brookings December 13, 2011 45 Mayor’s Appointment Recommendations: 1. Reappoint Tom Coughlin Traffic Safety Committee Number of positions: 4 Positions currently held by: Keith Bruinsma (Industry) Carol Rettkowski (Chamber of Commerce) 2 vacancies (Citizens-at-large) Term Length: 3 years Residency Requirement: The majority of the members shall be residents of the city. Purpose: The Traffic Safety Committee will develop and implement coordinated traffic safety programs that meet local needs; acting in an advisory capacity to the City Manager, City Engineer and the City Council as a whole in the coordination of traffic safety activities of the official agencies and departments of the City of Brookings; establishing safety priorities for the City; reviewing and approving project applications for funding; serving in a liaison capacity between the City of Brookings and the South Dakota Highway Safety Program in developing the State Highway Safety Program and in meeting the National Highway Safety Program Standards; promoting public acceptance of official programs proposed or instigated by the City; fostering public knowledge and support of traffic law enforcement and traffic engineering problems; cooperating with city schools in promoting educational traffic safety aids; educating the public in traffic safety; and generally aiding the overall reduction of traffic accidents, injuries and deaths on the city streets. Mayor’s Appointment Recommendations: 1. Reappoint Carol Rettkowski 2. Readvertise 3 vacancies (Bruinsma does not wish reappointment) Visitor Promotions Committee Number of positions: 2 Positions currently held by: Rob Peterson (Swiftel Center Advisory Committee) Jerry Miller (DBI representative) Term Length: 1 year Residency Requirement: Not required Purpose: The Visitor Promotions Committee was created to attract out of town visitors for events with economic impact and to attract attention and the expenditures of out of town visitors to the City of Brookings and surrounding area and the VPC shall also provide marketing counsel and advice to the Director of the Brookings Area Convention and Visitors Bureau and the Brookings Area Chamber of Commerce Board of Directors. Mayor’s Appointment Recommendations: 1. Reappoint Jerry Miller 2. Reappoint Rob Peterson City of Brookings December 13, 2011 46 CONSENT AGENDA #4 D. Action on Change Orders for City/County Government Center 1) Fox Drywall & Plastering, $1,840, changing back of parapet to plywood for proper roofing attachment. 2) Peska Construction, $2,343, providing concrete & rebar for cooling tower pad upgrade. 3) Peska Construction, $3,204, adding reinforcement at entrance, stairs, and platform in chambers/board room. 4) American Electrical Construction, $100, re-locating floor electrical box for kiosk information center. 5) Mills Construction, $1,789, installing insulation and plywood for chiller pad. The County Board and Joint Powers Board (JPB) have approved the following change orders to the City/County Government Center project. Attached are the minutes from the JPB meeting. The change orders are for the following: 1) Fox Drywall & Plastering $1,840 Changing back of parapet to plywood for proper roofing attachment. 2) Peska Construction $2,343 Provide concrete & rebar for cooling tower pad upgrade. 3) Peska Construction $3,204 Added reinforcement at entrance, stairs, and platform in chambers / board room 4) American Electrical Construction $100 Re-location of floor electrical box for kiosk information center 5) Mills Construction $1,789 Install insulation and plywood for chiller pad Each of these items are increases to their respective contracts. With these adjustments, the remaining contingency is $422,000. The attached JPB minutes provides further explanation for the reason of these change orders. While there is no question these changes are needed, there is still some question as to who bears their ultimate financial responsibility based on the chain of events that precipitated the need for the change order. I am in the process of investigating that question with the architects and sub-contract designers and that question will be resolved when the issue is fully explored. December 5, 2011 TO: Mayor and City Councilmembers FROM: City Manager Jeff Weldon RE: Change orders for City/County Government Center The County Board and Joint Powers Board (JPB) have approved the following change orders to the City/County Government Center project. Attached are the minutes from the JPB meeting. The change orders are for the following: Fox Drywall & Plastering $1,840 Changing back of parapet to plywood for proper roofing attachment. Peska Construction $2,343 Provide concrete & rebar for cooling tower pad upgrade. Peska Construction $3,204 Added reinforcement at entrance, stairs, and platform in chambers/board room American Electrical Construction $100 Re-location of floor electrical box for kiosk information center Mills Construction $1,789 Install insulation and plywood for chiller pad Each of these items are increases to their respective contracts. With these adjustments, the remaining contingency is $422,000. The attached JPB minutes provides further explanation for the reason of these change orders. While there is no question these changes are needed, there is still some question as to who bears their ultimate financial responsibility based on the chain of events that precipitated the need for the change order. I am in the process of investigating that question now with the architects and sub- contract designers and that question will be resolved when the issue is fully explored. Brookings City/County Government Center Date: 10/31/2011 Contractor: BOSSARD'r CoRIJORA'I'ION Projes,vional Canstriwllotl Servicus CBLBBRATINO 25YEARS 5270 West 84• Slleet, Sulte#550 Minneapois, Minnesota 55437 Change Order Project # 1002 Tel: Fax: Architect's Project No: Contract Date: I Fox Drywall & Plastering, Inc. 27164-470th Avenue Tea, SD 57064 Contract Number: 920 Change Order Number: 002 The Contract is hereby revised by the following items: PCO COR#013 Item# 001 Description FOX-Price to change back of parapet DensGias to COX plywood for proper roofing attachment The original Contract Value was .............................................................•................................ sum of changes by prior Change Orders ................................................................................ . The Contract Value prior to this Change Order was .......................................................... . The Contract Value will be changed by this Change Order in the amount of ............................ .. The new Contract Value including this Change Order will be ......................................... .. The Contract duration will be changed by .............................................................................. . The revised Substantial Completion date as of this Change Order is .................................. .. Pro/og Manager Printed on: 10/3112011 aossardt Amount 1.840 650,000 0 650,000 1,840 651,840 0 Days Page 1 Brookings City/County Government Center Date: 10/12/2011 Contractor: II BOSSAU.PT. CORPORA'I'ION f'ro/t!ssiOIWI Comli"ifctlon Scryft..•e:J CHLBBRATINOPYI!ARS 6270 West 84° Street, Suite #550 Mlnneapols, Minnesota 55437 Change Order Project# 1002 Tel: Fax: Architecfs Project No: Contract Date: I Peska Construction, Inc. 2700 north 4th Avenue Sioux Falls, so 57104 Contract Number: 330 Change Order Number: 003 The Contract is hereby revised by the following items: PCO Item# Description RFP#009 001 PESKA-Provide concrete & rebar for cooling tower pad. Install Insulation. COR#014 001 PESKA-Added reinforcement per CMBA detail at the Geofoam at the Entrance, Stairs and Platform In Chambers room. The original Contract Value was ................................•.........................................•................... Sum of changes by prior Change Orders .................................•.............•.....•...........•............... The Contract Value prior to this Change Order was .......................................................... . The Contract Value will be changed by this Change Order In the amount of ............................. . The new Contract Value including this Change Order will be .......................................... . The Contract duration will be changed by .............................................................................. . The revised Substantial Completion date as of this Change Order Is ................................... . Pro/og Manager Printed on: 10/31/2011 Bossard! Amount 2,343 3,204 697,000 4,969 701,969 5,547 707,516 ODays Paget Brookings City/County Government Center Date: 10/25/2011 Contractor: BOSSA RDT CON.PORATION !'JVfessiOmll Cons1t11cUon Seivlc:es CELEB R ATI.NO 2)YEAR8 5270 West 84• St~eet, Suite #550 Minneepois, Mlnresota 65437 Change Order Project # 1002 Tel: Fax: Architect's Project No: Contract Date: I American Electric Construction 2212 E 39th Street North Sioux Falls, SD 57104 Contract Number: 2600 Change Order Number: 004 The Contract Is hereby revised by the following Items: PCO Item# Description RFP#009 003 AMERICAN ELECTRIC-Add reinforced concrete pad for cooling tower. By others EF0#004 003 AMERICAN ELEC. -3rd Floor HVAC Changes EF0#003R 002 AMERICAN ELEC. -3rd Floor Plumbing Modifications COR#015 001 Relocate electrical floor box for the 1st floor Kiosk. The original Contract Value was ............................................................................................ .. sum of changes by prior Change Orders ............................................................................... .. The Contract Value prior to this Change Order was .......................................................... . The Contract Value will be changed by this Change Order in the amount of.. ........................... . The new Contract Value including this Change Order will be .......................................... . The Contract duration will be changed by .............................................................................. . The revised Substantial Completion dale as of this Change Order Is .................................. .. Prolog Manager Printed on: 10/25/2011 Bossard! Amount 0 0 0 100 824,670 2,895 827,566 100 827,665 ODays Page 1 Brookings City/County Government Center Date: 11/7/2011 Contractor: nossARDT coru>oRATroN Pro[e,o>'J.'/vnal Cvmtruction Service.~ CBLEBRATlNO z5 YBA RS 5270 West 84° St~eet, Suite #550 Mlnneapois, Mlnoosota 55437 Change Order Project # 1002 Tel: Fax: Architect's Project No: Contract Date: I Mills Construction, Inc: 1311 Main Avenue South Brookings, SD 57006 Contmct Number: 3100 Change Order Number: 004 The Contract is hereby revised by the following items: PCO RFP#009 Item# 004 Description MILLS-Install insulation & pivwood for Chiller pad The original Coniract Value was ............................................................................................. . Sum of changes by prior Change Orders ................................................................................ . The Contract Value prior to this Change Order was .......................................................... . The Contract Value will be changed by this Change Order in the amount of ............................ .. The new Contract Value Including this Change Order will be .......................................... . The Contract duration will be changed by ............................................................................. .. The revised Substantial Completion date as of this Change Order Is .................................. .. Prolog Manager Printed on: 111712011 Bossard! Amount 1,789 684,000 2,597 686,597 1,789 688,386 o Days Page 1 BROOKINGS CITY /COUNTY JOINT POWERS BOARD MEETING Thursday, November 10, 2011 The Joint Powers Board met on Thursday, November 10, 2011 with the following members present: John Kubal, Tim Reed, Dennis Falken and Alan Gregg. Architect Brent Koch with Cannon, Moss, Brygger and Project Manager Tom Ginter with Bossardt Corporation were in attendance via telephone. REGULAR BUSINESS Chairperson Alan Gregg called the meeting to order and a quorum was established. Motion by Reed, seconded by Kubal to approve the minutes from the October 6, 2011Joint Powers Board meeting. All members voted "aye." Motion carried. Construction Site Superintendent Dan Volbert updated the board on the construction progress. He said the fantastic weather has really helped move things along. Volbert said they should have power to the building next week and the roof will be 75·80% done by the end of this week. He discussed several issues with the alley and the south parking lot. Volbert said that once the building is enclosed and secured, .he would like to start conducting a walk-through each month so the people who will be utilizing the space can make sure their office spaces are coming together. Kubal asked about security at the building site. Volbert said that permanent gates will go up on Friday, but if someone wants to get in they can. He suggested looking at installing security cameras as well. Project Manager Tom Ginter discussed four pending change orders. Kubal questioned change order RFP #009 for adding a reinforced concrete pad for the cooling tower and why it wasn't taken into account. Koch said that they weren't aware of the size the tower would be when bid package #1 went out and the concrete bids were awarded. He said the tower was a part of bid package #2. Ginter added that this is a change to bid package #1. Commission Assistant Stephanie Ellwein questioned why this didn't go out as part of bid package #2. Koch said they didn't have a concrete bid as part of that package. Reed said that because of the method of using different bid packages something like this could get missed, but it also has to be done. Ginter said that prior to these changes, there is still $422,000 left in contingency. Motion by Falken, seconded by Reed to approve the following change orders: COR #013 to Fox Drywall &. Plastering, Inc.'s contract in the amount of $1,840 to change the inside parapet wall to plywood in lieu of Dens glass to allow the roofing material to adhere properly; COR #014 to Peska Construction, Inc.'s contract in the amount of $3,204 for added reinforcement at the elevated concrete slabs over the Geoform; COR #015 to American Electric Construction's contract for $100 to relocate the electrical box at the first floor kiosk; RFP #009 to Mills Construction, Inc.'s contract for $1,789 and to Peska Construction, Inc.'s contract for $2,343 fo1· a total of $4,132 to add a reinforced concrete pad for the cooling tower. All members vote "aye." Motion carried. Ginter also discussed other pending change orders including some low-voltage changes and third floor plumbing modifications. Koch said that the plumbing modifications are due to the roof drainage and the distance they have to remute the drain pipe. Ginter said that those modifications should be under $5,000, but he said that he didn't know the value of the low-voltage changes at this point. Reed asked for additional explanation of the low-voltage changes. Koch said that some of the coordination between the electrical engineer and the technology consultant didn't follow City of Brookings December 13, 2011 53 CONSENT AGENDA #4 E. Action on Resolution No. 139-11, a Resolution authorizing Change Order No. 2 Final, for 2010-01SWR Curb & Gutter and Sidewalk Project, Owens Enterprises, Inc. (deduct) This project is the annual concrete project and entails construction of miscellaneous concrete work in the 2010 sidewalk area, which is the area east of Medary Avenue between 8th Street South and 20th Street South. This project included repair of curb and gutter, fillets, valley gutters, curb ramps and homeowner trip hazard sidewalks. Also included with this project was concrete pavement repair on Railroad Street and new sidewalks along the City-owned lots on 15th Street South west of Camelot Intermediate School. The work has been completed and the project is ready to be closed out. This final change order will adjust the plan quantities to as-built quantities for a total decrease of $25,269.13 to final out the project. The decrease of the project cost was largely due to less square footage of replacement sidewalk being replaced since numerous property owners installed their own sidewalk and other quantities were also less than the plan quantities. The summary is the following: Original Contract Price: $106,210.00 Increase from Previously Approved Change Orders (No. 1): $1,234.37 Contract Price Prior to this Change Order: $107,444.37 Decrease of this Change Order (No. 2 Final): $25,269.13 Contract Price incorporating this Change Order: $82,175.24 The deadline for this project was October 1, 2010 with liquidated damages of $25.00 in the contract. The Contractor completed the project on August 18, 2011 which was 44.5 working days past the deadline (winter season, weekends, rain days, etc. are not counted towards working days). The contractor was delayed for 10 days during the replacement of the trip hazard sidewalks due to the delays by the root-grinder contractor hired by the City. The City retains local contractors to grind roots from boulevard trees that have heaved the sidewalks to minimize the roots pushing up the sidewalks after they are replaced. The root-grinder contractor was delayed due to equipment problems and rain. In addition, the City is willing to grant a 30% credit for rain days in 2010, which is the same credit granted to other contractors last year for weather. The credit for weather days in 2010 is calculated as a 6 days based on a 30% credit on the days worked in 2010. It is recommended that the 16 working days of credit be approved, which will result in 28.5 working days at $25.00 being charge to the contract. This resolution will approve Change Order No. 2 (CCO #2 Final) for a decrease of $25,269.13 to the contract and will extend the contract deadline by 16 working days to final out the project. City of Brookings December 13, 2011 54 Resolution No. 139-11 A Resolution Authorizing Change Order No. 1 (CCO#2 Final) for 2010-01SWR Curb & Gutter and Sidewalk Project Owens Enterprises, Inc. Be It Resolved by the City Council that the following change order be allowed for 2010-01SWR Curb & Gutter and Sidewalk Project: Construction Change Order Number 2 (Final) Adjust plan quantities to as-built quantities for a total decrease of $25,269.13 to close out the project. Adjust contract completion date by 16 working days to close out the project, which will result in 28.5 working days at $25 per day being charged to the contract. Passed and approved this 13th day of December 2011. CITY OF BROOKINGS _________________________ Tim Reed, Mayor ATTEST: ____________________________ Shari Thornes, City Clerk City of Brookings December 13, 2011 55 CONSENT AGENDA #4 F. Action on Resolution No. 140-11, a Resolution authorizing Change Order No. 1 Final, for 2011-01SWR Curb & Gutter and Sidewalk Project, Timmons Construction, Inc. (increase of $2,817.00) This project is the annual concrete project and entails construction of miscellaneous concrete work in the 2011 sidewalk area which is the area east of Medary Avenue between 6th Street and Orchard Drive. This project included repair of curb and gutter, fillets, valley gutters, curb ramps and homeowner trip hazard sidewalks. Also included with this project was concrete pavement repair on Railroad Street and a new concrete valley gutter on City property for the east/west drainage swale located between Western Avenue and the pedestrian bridge east of Indian Hills Road. The work has been completed and the project is ready to be closed out. This final change order will adjust the plan quantities to as-built quantities including extra rock which was needed for the valley gutter in Indian Hills since the subgrade material was found to be in very saturated condition, and the change order also includes a price deduct for installing the rebar in the fire department driveway at 24” spacing instead of 12” spacing. The change in the spacing of the rebar should not be detrimental to the performance of the concrete pavement. The total change order results in a total increase of $2,817.00 to final out the project. The summary is the following: Original Contract Price: $103,147.50 Change from Previously Approved Change Orders: $0.00 Contract Price Prior to this Change Order: $103,147.50 Increase of this Change Order (No. 1 Final): $2,817.00 Contract Price incorporating this Change Order: $105,964.50 The deadline for this project was October 15, 2011 with liquidated damages of $50.00 in the contract. The contractor was delayed for 10 days during the replacement of the trip hazard sidewalks due to the delays by the root-grinder contractor hired by the City. The City retains local contractors to grind roots from boulevard trees that have heaved the sidewalks which will minimize the possibility of roots pushing up the sidewalks after they are replaced. The root-grinder contractor was delayed due to equipment problems and rain. Therefore, it is recommended that the 10 working days of credit be approved for the contractor. Timmons Construction Inc. completed the project by October 28, 2011, therefore, no liquidated damages would be charged for this project with the approval of this change order. This resolution will approve Change Order No. 1 (CCO #1) for an increase of $2,817.00 to the contract and will extend the contract deadline by 10 working days to final out the project. City of Brookings December 13, 2011 56 Resolution No. 140-11 A Resolution Authorizing Change Order No. 1 (CCO#1 Final) For 2011-01SWR Curb & Gutter and Sidewalk Project Timmons Construction, Inc. Be It Resolved by the City Council that the following change order be allowed for 2011-01SWR Curb & Gutter and Sidewalk Project: Construction Change Order Number 1 (Final) Adjust contract cost for extra rock needed for stabilization of the valley gutter and a reduction in the steel rebar for the fire department driveway and adjust plan quantities to as-built quantities to final out the project for a total increase of $2,817.00 to close out the project. Adjust contract completion date by 10 working days to close out the project. Passed and approved this 13th day of December 2011. CITY OF BROOKINGS _________________________ Tim Reed, Mayor ATTEST: ____________________________ Shari Thornes, City Clerk City of Brookings December 13, 2011 57 CONSENT AGENDA #4 G. Action on Resolution No. 143-11, concurring in the Placement of Stop Signs on 5th Street at its intersection with 11th Avenue. The City received a request from a neighborhood citizen to install stop signs at the intersection of 5th Street and 11th Avenue due to numerous accidents at that location. This intersection currently does not have stop signs. The Traffic Safety Committee discussed this request at their October 13th and November 17th meetings. The committee discussed the traffic on 11th Avenue and how vehicles are currently using the north/south route of 11th Avenue as a through street to avoid the traffic congestion on Medary Avenue and 12th Avenue. The committee discussed the traffic accidents and voted to recommend stop signs on 5th Street at its intersection with 11th Avenue. The committee felt this intersection justified the need for stop signs on 5th Street since 11th Avenue is operating as a through street. The Manual of Uniform Traffic Control Devices also indicates that “Yield or Stop signs should be used at an intersection of one or more of the following conditions exist”: A. An intersection of a less important road with a main road where application of the normal right-of-way rule would not be expected to provide reasonable compliance with the law; B. A street entering a designated through highway or street; and/or C. An unsignalized intersection in a signalized area. In this case, 5th Street would be the less important road and 11th Avenue would be viewed as the main road and would be the appropriate location for the stop signs. The Traffic Safety Committee voted unanimously to recommend stop signs on 5th Street at its intersection with 11th Avenue, which will stop the 5th Street traffic. (See attached drawing.). The summary of discussion is as follows: City of Brookings December 13, 2011 58 Unapproved Summary of Discussion BROOKINGS TRAFFIC SAFETY COMMITTEE City Hall Community Room Thursday, November 17, 2011 12:10 p.m. The Brookings Traffic Safety Committee held its monthly meeting on Thursday, November 17, 2011, at 12:10pm in the City Hall Community Room. Members Present: Brian Leuders, Daryl Englund, Skip Webster, Mike Fossum, Carol Rettkowski, Louis Skubic, Jackie Lanning, Keith Bruinsma, Pete Kirchhevel, and Tony Sonnenburg. Members Absent: Tim Heaton Others Present: Mike McClemans, Stephanie Ellwein, Troy Anderson Call to Order: Englund called the meeting to order. Webster / Lanning moved to approve the minutes from the October meeting. All present voted aye. Addition to Agenda: None Excerpt from Summary of Discussion: Request for 2-way stop signs at 5th Street and 11th Avenue. Lanning stated a citizen asked the Traffic Safety Committee to study this intersection due to recent accidents which have occurred. Lanning described the accident report, where there were 3 accidents in 2011, 1 accident in 2010, 2 accidents in 2009, 0 accidents in 2008, and 3 accidents in 2007. Sonnenburg described the most recent accident in September where a north-bound vehicle collided with an east-bound vehicle causing a roll- over accident. He stated vehicles are using 11th Avenue as a north/south through street to avoid traffic on Medary Avenue and 12th Avenue. Lanning mentioned if 11th Avenue was being used as a through route, such as a collector, that stop signs to stop the 5th Street east/west traffic would allow 11th Avenue to function such as Medary Avenue and 12th Avenue. Visibility is good at this intersection but speed has been an issue, especially with vehicles using 11th Avenue as an alternate route for Medary. The committee felt this intersection justified the need for stop signs on 5th Street since it intersects 11th Avenue, which is being used as a through street. Lanning did not have the citation from the MUTCD manual but she would provide it to the City Council. Webster/Rettkowski made a motion to install stops signs on 5th Street which would stop all East/West traffic. All present voted aye. Motion passed. Additional information from City Engineer: The MUTCD indicates in Section 2B.04, Right of Way at Intersections, guidance: “Engineering judgment should be used to establish intersection control. The following factors should be considered: A. Vehicular, bicycle, and pedestrian traffic volumes on all approaches B. Number and angle of approaches C. Approach speeds City of Brookings December 13, 2011 59 D. Sight distance available on each approach; and E. Reported crash experience” The MUTCD also indicates that “Yield or Stop signs should be used at an intersection of one or more of the following conditions exist: A. An intersection of a less important road with a main road where application of the normal right- of-way rule would not be expected to provide reasonable compliance with the law; B. A street entering a designated through highway or street; and/or C. An unsignalized intersection in a signalized area” In this case, 5th Street would be the less important road and 11th Avenue would be viewed as the main road and would be the appropriate location for the stop signs. This resolution will authorize the installation of new stop signs on 5th Street at its intersection with 11th Avenue. Resolution No. 143-11 Concurring in the Placement of Stop Signs on 5th Street at its intersection with 11th Avenue Whereas, Section 82-373 of the Revised Ordinance of the City of Brookings, provides for approval by the City Council for placement of stop signs in locations other than along through streets. Now, Therefore Be It Resolved that the City Council concurs in the recommendation of the Traffic Safety Committee and the City Manager and approves the placement of stop signs at 5th Street at its intersection with 11th Avenue. Passed and approved this 13th day of December 2011. CITY OF BROOKINGS ___________________________________ Tim Reed, Mayor ATTEST: ___________________________ Shari Thornes, City Clerk 11TH AVE11TH AVE11TH AVE5 T H S T 5T H S T BEHREND, D BROOKS ET UXPRICE, WADE A ET UX ERICKSON, ORRIN C ET UX BI PROPERTIES LLCVOSS, TODD M PITTS, CAROL A MILEHAM, RUSSELL D ET UXPITTS, CAROL A BULLIS, RANDY R GATZKE FAMILY ENTERPRISES LLC PITTS, CAROL A Stop Sign Stop Sign City of Brookings December 13, 2011 61 CONSENT AGENDA #4 H. Action on Resolution No. 144-11, concurring in the Placement of Stop Signs on 7th Avenue South at its intersection with 3rd Street South. The City received a request from a neighborhood citizen to install stop signs at the intersection of 7th Avenue South and 3rd Street South due to actual accidents and vehicles nearly having accidents at that location. This intersection currently has yield signs on 7th Avenue South, on the north and south sides of 3rd Street South. The Traffic Safety Committee discussed this request at their October 13 and November 17, 2011 meetings. The committee discussed that the visibility is poor for the north and south-bound vehicles on 7th Avenue South due to trees and shrubs located on the east and west sides of 3rd Street South. Even though there are yield signs, the traffic does not seem to be obeying the yield signs and there have been several accidents in the past at this intersection. The committee discussed the traffic accidents and voted to recommend stop signs on 7th Avenue South at its intersection with 3rd Street South. The stop signs will replace the existing yield signs. The committee felt this intersection justified the need for stop signs due to the poor visibility for the 7th Avenue South vehicles. The Manual of Uniform Traffic Control Devices indicates in Section 2B.04, Right of Way at Intersections, guidance: “Engineering judgment should be used to establish intersection control. The following factors should be considered: A. Vehicular, bicycle, and pedestrian traffic volumes on all approaches B. Number and angle of approaches C. Approach speeds D. Sight distance available on each approach; and E. Reported crash experience” The MUTCD also indicates that “the use of Yield or Stop signs should be considered at the intersection of two minor streets or local roads where the intersection has more than three approaches and where one or more of the following conditions exist: D. The combined vehicular, bicycle, and pedestrian volume entering the intersection from all approaches averages more than 2,000 units per day; E. The ability to see conflicting traffic on an approach is not sufficient to allow a road user to stop or yield in compliance with the normal right-of-way rule if such stopping or yielding is necessary/ and/or in compliance with the normal right-of-way if such stopping or yielding is necessary; and/or F. Crash records indicate that five or more crashes that involve the failure to yield the right-of-way at the intersection under the normal right-of-way rule have been reported within a 3-year period, or that three or more such crashes have been reported within a 2-year period. City of Brookings December 13, 2011 62 In this case, 7th Avenue South has poor visibility and would be the appropriate location for the stop signs. The Traffic Safety Committee voted unanimously to recommend stop signs on 7th Avenue South at its intersection with 3rd Street South, which will stop the 7th Avenue South traffic. (see attached drawing). The summary of discussion is as follows: Unapproved Summary of Discussion BROOKINGS TRAFFIC SAFETY COMMITTEE City Hall Community Room Thursday, November 17, 2011 12:10 p.m. The Brookings Traffic Safety Committee held its monthly meeting on Thursday, November 17, 2011, at 12:10pm in the City Hall Community Room. Members Present: Brian Leuders, Daryl Englund, Skip Webster, Mike Fossum, Carol Rettkowski, Louis Skubic, Jackie Lanning, Keith Bruinsma, Pete Kirchhevel, and Tony Sonnenburg. Members Absent: Tim Heaton Others Present: Mike McClemans, Stephanie Ellwein, Troy Anderson Call to Order: Englund called the meeting to order. Webster / Lanning moved to approve the minutes from the October meeting. All present voted aye. Addition to Agenda: None Excerpt from Summary of Discussion: Request for 2-way stop signs at 3rd Street South and 7th Avenue South. Lanning stated a citizen asked the Traffic Safety Committee to study this intersection due to recent accidents which have occurred. Currently there are yield signs for the 7th Avenue South traffic, requiring vehicles to yield to the 3rd Street South traffic. Lanning described the accident report, where there were 3 accidents in 2010, 1 accident in 2009, 0 accidents in 2008, and 3 accidents in 2007. Lanning mentioned visibility is poor for the north and south bound vehicles as there are trees and shrubs on the east and west sides of this intersection. The committee discussed that vehicles are not yielding such as the signs require and there have been some close calls at this intersection. Lanning did not have the citation from the MUTCD manual, but she would provide it to the City Council. Skubic/Webster made a motion to replace the current yield signs with stop signs, which would be located on the north and south sides of 7th Avenue South at its intersection with 3rd Street South. All present voted aye. Motion passed. Additional information from City Engineer: The MUTCD indicates in Section 2B.04, Right of Way at Intersections, guidance: “Engineering judgment should be used to establish intersection control. The following factors should be considered: City of Brookings December 13, 2011 63 A. Vehicular, bicycle, and pedestrian traffic volumes on all approaches B. Number and angle of approaches C. Approach speeds D. Sight distance available on each approach; and E. Reported crash experience” The MUTCD also indicates that “the use of Yield or Stop signs should be considered at the intersection of two minor streets or local roads where the intersection has more than three approaches and where one or more of the following conditions exist: A. The combined vehicular, bicycle, and pedestrian volume entering the intersection from all approaches averages more than 2,000 units per day; B. The ability to see conflicting traffic on an approach is not sufficient to allow a road user to stop or yield in compliance with the normal right-of-way rule if such stopping or yielding is necessary/ and/or in compliance with the normal right-of-way if such stopping or yielding is necessary; and/or C. Crash records indicate that five or more crashes that involve the failure to yield the right-of-way at the intersection under the normal right-of-way rule have been reported within a 3-year period, or that three or more such crashes have been reported within a 2-year period. In this case, 7th Avenue South has poor visibility and would be the appropriate location for the stop signs. This resolution will authorize the installation of new stop signs on 5th Street at its intersection with 11th Avenue. Resolution No. 144-11 Concurring in the Placement of Stop Signs on 7th Avenue South at its intersection with 3rd Street South Whereas, Section 82-373 of the Revised Ordinance of the City of Brookings, provides for approval by the City Council for placement of stop signs in locations other than along through streets. Now, Therefore Be It Resolved that the City Council concurs in the recommendation of the Traffic Safety Committee and the City Manager and approves the placement of stop signs at 7th Avenue South at its intersection with 3rd Street South. Passed and approved this 13th day of December 2011. CITY OF BROOKINGS ____________________________ Tim Reed, Mayor ATTEST: ____________________________ Shari Thornes, City Clerk 3 RD S T S 3 R D S T S 7TH AVE S7TH AVE SWARD, WAYNE O ET UX CARPENTER, DARLENE K ET AL NASH, TYLER NORDBYE, HARTLEY D WHALEY, JULIE R ET VIR MOLSTAD, ARNOLD H Stop Sign Stop Sign City of Brookings December 13, 2011 65 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 December 13, 2011 66 Presentation 6. Presentation of award to Rounds Construction for Southland Detention Pond Project. The Southland Lane Detention Pond Project was submitted to the American Council of Engineering Companies of South Dakota for consideration of their 2011 Engineering Excellence Awards. Since 2006, the American Council of Engineering Companies of South Dakota has celebrated achievements in engineering through the Engineering Excellence Awards competition. This competition, open to all engineering firms, recognizes engineering firms for projects that demonstrate a high degree of achievement, value and ingenuity. The annual program also increases the public’s knowledge and enhances the image of consulting engineer. The Southland Lane Detention Pond Project was designed by Short, Elliot and Hendrickson (S.E.H.) along with Confluence for the landscaping component. The project was constructed by Rounds Construction Company, Inc. and Groundwater, Inc. provided the landscaping. The project won the Grand Award (top award) out of nine projects which were submitted. It will be eligible for the National Engineering Excellence Awards competition. The Southland Lane Detention Pond Project manages storm water while creating a recreational amenity for the community, including walking trails, a nature viewing area and future picnic area. The site also incorporates accessible sidewalk, a variety of new trees and prairie grasses, and adds habitat and improves the bird watching experience. The City of Brookings is pleased to present the Grand Award to Rounds Construction Company, Inc. for this project. City of Brookings December 13, 2011 67 Report 7. Brookings Health Systems Quarterly Financial Report. Representatives of Brookings Health Systems will provide the City Council and public with a financial report and update on current and pending issues. City of Brookings December 13, 2011 68 City of Brookings December 13, 2011 69 Open Forum 8. 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. 9. 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 December 13, 2011 70 First Readings** 10. Ordinance No. 26-11: An Ordinance amending Division 2. of Article V. of Chapter 74 of the Code of Ordinances of the City and Brookings, South Dakota and pertaining to Snow and Ice Removal from Sidewalks in the City of Brookings, South Dakota. Second Reading: December 20th **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. 26-11would amend the City Code of Ordinances pertaining to the removal of snow and ice from city sidewalks and curb ramps. The purpose of this ordinance is to strengthen and clarify Brookings’ sidewalk snow removal ordinance to increase the safety of pedestrians during snow and ice season. The revised Ordinance more clearly defines removal requirements, associated fines and penalties for violating of the ordinance, and strengths compliance and enforcement. The failure to clear sidewalks and curb ramps is $60.00. The goals of the revised ordinance are increased compliance with current requirements, faster removal of snow and accessible sidewalks for all citizens as soon as possible after a snowfall. A memo from the city attorney pertaining to this ordinance and process is also enclosed. City of Brookings December 13, 2011 71 ORDINANCE NO. 26-11 AN ORDINANCE AMENDING DIVISION 2. OF ARTICLE V. OF CHAPTER 74 OF THE CODE OF ORDINANCES OF THE CITY AND BROOKINGS, SOUTH DAKOTA AND PERTAINING TO SNOW AND ICE REMOVAL FROM SIDEWALKS IN THE CITY OF BROOKINGS, SOUTH DAKOTA. BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF BROOKINGS, SOUTH DAKOTA, AS FOLLOWS: I. Sec. 74-211. Snow and ice to be removed from sidewalk by owner. The owner of any property must remove all snow and ice from any sidewalk upon the property within 48 hours after any snowfall, snow or ice accumulation so that sidewalks are clean and safe for pedestrians for safe and convenient foot travel. Snow and ice must also be removed from that portion of the sidewalk which ends at an intersection or crosswalk, including the curb ramp. The owner of property abutting sidewalks on two intersecting streets must remove all snow and ice from the sidewalks of both streets, regardless of the source of the snow accumulation. Snow and ice deposited on the sidewalk from the street snow removal process must also be removed within 48 hours of being deposited. Failure to remove snow and ice from a sidewalk in accordance with this ordinance constitutes an ordinance violation. In the event ice has so formed upon a sidewalk that it cannot be removed, then the owner must use sand, salt or other suitable substance in such manner as to prevent the ice from being dangerous, until such time as it can be removed. Snow and ice which is removed from a sidewalk shall be placed on the boulevard or yard. It is unlawful for any person to dispose of or move snow from private property onto a public street, alley or sidewalk. Sec. 74-212. Notice to property owner of failure to remove snow. If city personnel find that any portion of a sidewalk has not been cleared as required by 74-211, the city will provide notice in the form of a card affixed to the front door of the property to the owner of such property. The card will advise that the owner has failed to remove snow and/or ice as required by ordinance, and that the property owner is subject to a fine, and further, that the property owner will be responsible to pay for the city’s snow removal costs. Sec. 74-213. City’s collection procedure for snow removal. If the owner does not remove snow and ice from sidewalks as required by 74-211 and the city clears a sidewalk of snow and ice, the city will keep an accurate account of the expenses for sidewalk snow and ice removal, and the city’s cost of snow and ice removal will be collected from the owner of the property or by special assessment. The property owner will be subject to collection procedures in the event accounts are not paid within 30 days. City of Brookings December 13, 2011 72 Sec. 74-214. Hearing for approval of assessment. If the city determines that an unpaid account for city snow removal must be collected by special assessment, the city will prepare the assessment against the property for the removal of snow and will submit the assessment to the city council for its approval in accordance with the procedure for special assessments. Sec. 74-215. Lien declared. From the date of approval and filing of the assessment made under this ordinance, the assessment will be a special lien against the property described in the assessment and will be collected in like manner as special assessments are collected for public improvements. Sec. 74-216. Penalties and liability for noncompliance. Any person whose duty it is to remove snow and ice, in addition to a fine for the ordinance violation and liability for the costs incurred by the city’s removal of snow and ice, will be liable for any damage caused by their neglect to keep the sidewalk clear and free of snow and ice. II. All ordinances in conflict herewith are hereby repealed. FIRST READING: December 13, 2011 SECOND READING: December 20, 2011 PUBLISHED: December 23, 2011 CITY OF BROOKINGS, SOUTH DAKOTA Tim Reed, Mayor ATTEST: Shari L. Thornes, City Clerk City of Brookings December 13, 2011 73 Ordinance No. 26-11 An Ordinance amending Division 2. of Article V. of Chapter 74 of the Code of Ordinances of the City of Brookings, South Dakota and pertaining to snow and ice removal from sidewalks in the City of Brookings, South Dakota. Be It Ordained by the governing body of the City of Brookings, South Dakota, as follows: I. Sec. 74-211. Duty of owner or occupant. It shall be the duty of the owner or occupant or person in possession or in charge of any lot, parcel or plat of ground fronting or abutting any sidewalk, to keep such sidewalk free and clear from snow and ice at all times. When it is impossible to clear snow and ice from a sidewalk because it is frozen to the sidewalk, the owner, occupant or person in possession or in charge of such lot shall sprinkle or spread some suitable material upon the same to prevent the walk from becoming slippery and dangerous to travel upon. Sec. 74-211. 74-212. Snow and ice to be removed from sidewalk by owner. The owner or person in possession or in charge of any such lot, parcel or plot of ground (the “property”) must shall remove all snow and ice from any such sidewalk upon the property within 48 hours after any snowfall of falling of snow or the forming of ice accumulation so that sidewalks are clean and safe for pedestrians for safe and convenient foot travel. The owner or person in possession or in charge of property abutting sidewalks on two intersecting streets shall remove all snow and ice from the sidewalks of both streets, including Snow and ice must also be removed from that portion of the sidewalks which ends at an intersection or bordering the a crosswalk on corner lots, including the curb ramp. The owner of property abutting sidewalks on two intersecting streets must remove all snow and ice from the sidewalks of both streets, regardless of the source of the snow accumulation. Snow and ice deposited on the sidewalk from the street snow removal process must also be removed within 48 hours of being deposited. if any, regardless of the source of the snow accumulation. Failure to remove snow and ice from a sidewalk in accordance with this ordinance constitutes an ordinance violation. In the event Provided that when ice has so formed upon a any sidewalk that it cannot be removed, then the owner or person in possession shall keep the same effectively sprinkled with must use sand, salt or other suitable substance in such manner as to prevent the ice from being dangerous, until such time as it can be removed, and then it shall be promptly removed. Snow and ice which is removed from a sidewalk shall be placed on the boulevard or yard. It is unlawful for any person to dispose of or move snow from private property onto a public street, alley or sidewalk. Any person violating any of the provisions of this section shall be subject to a forfeiture of not less than twenty dollars ($20) nor more than fifty dollars ($50) for a first offense and not less than thirty dollars ($30) nor more than one hundred dollars ($100) for any subsequent offense. Each day any violation of this ordinance continues shall constitute a separate offense. City of Brookings December 13, 2011 74 Sec. 74-212. City may remove. If the owner or person in possession or in charge of any such lot, parcel or plot of ground shall fail or refuse to remove the snow or ice from such sidewalk within 48 hours of the falling of snow or the forming of ice, the city may, if practicable, remove or cause to be removed such snow or ice. The city may assess the cost of snow and ice removal against the fronting or abutting property in accordance with the provisions of this division. Sec. 74-212. City may remove snow and ice, with costs collected. If city personnel find that any portion of a sidewalk has not been cleared as required by 74-211, the city will provide notice in the form of a card affixed to the front door of the property to the owner of such property. The card will advise that the owner has failed to remove snow and/or ice as required by ordinance, and that the property owner is subject to a fine, and further, that the property owner will be responsible to pay for the city’s snow removal costs. Sec. 74-213. City's cost assessed. City’s collection procedure for snow removal. City may remove snow, and ice, with costs collected. If the owner or person in possession does not remove snow and ice from sidewalks as required by 74-211 and the city may clears a sidewalk those sidewalks of snow and ice, the city will keep an accurate account of the expenses for sidewalk snow and ice removal, and the city’s cost of snow and ice removal will be collected from the owner of the property or by special assessment. The city manager or a city official designated by the city manager shall cause an account to be maintained for the property owner or occupant of each lot which requires city sidewalk snow removal. Failure to remit payment of the balance of the account within 30 days of billing shall constitute a violation of this division, and these amounts will be billed to the property owner or person in possession of the property. The property owner or person in possession will be subject to lien and collection procedures in accordance with this article the event accounts are not paid within 30 days. Sec. 74-213. City’s cost assessed. The city will maintain an account for each lot which requires city sidewalk snow removal. These amounts will be billed to the property owner or person in possession of the property. The property owner or person in possession will be subject to collection procedures in the event accounts are not paid within 30 days. Sec. 74-214. Hearing for approval of assessment. If the city manager determines that an unpaid account for city snow removal shall will must be collected by special assessment, the city official designated by the city manager shall will prepare an estimate of the assessment against the property such lot for the removal of snow and which has not been paid by the owner or occupant and shall will submit the estimate assessment to the city council for its approval in accordance with the procedure for special assessments. Sec. 74-215. Approval of assessments. Upon the day set for the hearing at which the assessment of city snow removal costs shall be submitted for approval, the city council shall meet and, if they find such proposed assessment correct, shall approve the assessment, with or without modification or amendments as it may deem proper, and shall file such assessment with the city clerk. City of Brookings December 13, 2011 75 Sec. 74-215. Lien declared. From the date of approval and filing of the assessment made under this ordinance division, the assessment shall will be a special lien against the property described in such the assessment and shall will be collected in like manner as special assessments are now collected for public improvements. Sec. 74-216. Liability of offenders. Penalties and liability for noncompliance. Any person whose duty it is to remove snow as provided in this division and ice, in addition to a fine the penalty for the ordinance violation of this Code, shall and liability for costs incurred by the city’s removal of snow and ice, will be liable to the city for any damage caused by the their neglect to keep such the sidewalk clear and free of snow and ice. Sec. 74-217. Recovery by city. The cost of snow removal shall be at the discretion of the city. Such amount may be recovered through municipal or state law abatement procedures or by use of other collection procedures, including a civil action instituted for such purpose. Sec. 74-219. Penalty for failure to comply. Any person whose duty it is to keep a sidewalk free and clear of snow and ice as provided in this division shall, for a violation thereof, be subject to the penalties which may be imposed for a violation of this Code. II. All ordinances in conflict herewith are hereby repealed. First Reading: December 13, 2011 Second Reading: December 22, 2011 Published: CITY OF BROOKINGS, SOUTH DAKOTA Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings December 13, 2011 76 To: Jeff Weldon, Mike Struck and Shari Thornes From: Steven J. Britzman, City Attorney Date: December 7, 2011 Re: Sidewalk snow removal/ Preliminary research Comments: I have researched South Dakota law concerning the relatively simple proposition or question: Whether a City employee can walk upon private property to place a written Notice on the door or in a similar manner, advising the homeowner to promptly remove snow or ice from their property. South Dakota State law would not consider this to be a trespass unless access is denied under the following statute: 22-35-6. Entering or refusing to leave property after notice-- Misdemeanor. Any person who, knowing that he or she is not privileged to do so, enters or remains in any place where notice against trespass is given by: (1) Actual communication to the person who subsequently commits the trespass; (2) Posting in a manner reasonably likely to come to the attention of trespassers; or (3) Fencing or other enclosure which a reasonable person would recognize as being designed to exclude trespassers; is guilty of a Class 2 misdemeanor. However, if such trespasser defies an order to leave, personally communicated to him or her by the owner of the premises or by any other authorized person, the trespasser is guilty of criminal trespass, which is a Class 1 misdemeanor. Unless access to the front door or a similar place on private property is denied under the foregoing statute, a civilian employee of the city could leave a written notice upon the property. If access is denied, then the notice would need to be mailed or served by law enforcement. It is possible there is some further legal authority I have not yet found, so I will keep looking, but the foregoing statute appears to govern access to private property, regardless of the purpose. Law enforcement would have specific privileges not addressed in the foregoing statute. Authority to require snow and ice removal is found under the following statute: 9-30-5. Streets and public places - Snow removal - Weed removal - Special assessment. Every municipality shall have power to require the owner of abutting property to remove snow and ice from sidewalks and weeds from parking, and to provide for their removal and for taxing the expense thereof by special assessment against the abutting property. City of Brookings December 13, 2011 77 As to the sufficiency of a posted written Notice, the contemplated procedure to leave a written tag or door hanger, similar to the placement of a parking ticket on a vehicle, can serve as acceptable notice, provided the notice is sufficiently detailed to provide reasonable due process of the alternatives available to the homeowner. Case law pertaining to use of a ticket, rather than a formal summons, was sufficient to give notice in the following case excerpt, and a door hangar as long as it is quite likely to reach the intended responsible party should be acceptable notice: Ample notice must be given to a vehicle owner that failure to either pay or contest a parking citation could result in immobilization of the vehicle, but that warning need not come by personally serving parking summonses on vehicle owners. Patterson v. Cronin, 650 P.2d 531 (Colo. 1982) (en banc). Placing tickets on a windshield that indicate that a failure to deal appropriately with the ticket could result in possible immobilization or impoundment satisfies due process notice requirements. Wilson v. City of New Orleans, 466 So.2d 726, 729 (La. Ct. App. 1985). City of Brookings December 13, 2011 78 Second Readings & Public Hearings 11. 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. Date: December 6, 2011 To: Mayor and City Council Members From: Jeffrey W. Weldon, City Manager Subject: 2011 Revised Budget Amendment #2 Budget amendment #2 is being revised from the 1st Reading. The first revision recognizes a grant the Recreation Department received for $12,920 from Wellmark to purchase equipment to maintain the trail in the winter time for recreation programs. Parks will be spending only a portion of the grant in 2011 for a groomer for $5,500 and in 2012 will purchase a tractor to pull the groomer with the remaining grant money. The second revision is to move the land inventory within the Industrial Land Fund to the General Fund. The original amendment recognized only the cash to be moved to the General Fund in the amount of $694,000. The land and cash is $2,204,012. The third revision is to recognize additional revenue of $29,687 and expenses of $12,602 within the Research and Technology Center Fund because we rented a portion of the facility to FEMA in 2011. City Manager Introduction Action: Open and Close Public Hearing, Motion to Approve, Roll Call City of Brookings December 13, 2011 79 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 contract legal consultation on the value of a liquor license, Whereas, the Parks Department experienced significant equipment failure at the Larson Ice Arena, Whereas, the Parks Department received a grant to purchase equipment to groom the snow trail for recreation, Whereas, the utility rates and gasoline prices had significant increases, Whereas, the industrial fund and the bike trail project are being closed and remaining funds and land inventory 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 storm drainage project described as Pheasants Nest will not be completed in 2011, Whereas, the Nature Park Project required the hazardous waste cleanup of lead be done at the fire range used by the police department and the landfill fund will fund the cleanup, Whereas, the Research & Technology Center was rented to FEMA and required additional services and supplies, 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: City of Brookings December 13, 2011 80 Budget Amendment #2 Revenue Expense Policy & Administration 9,068 Non-Departmental 2,368,993 69,638 Public Safety 15,500 14,000 Public Works (19,500) Culture & Recreation 35,308 93,663 Appropriations 2,500 Total General Fund 2,400,301 188,869 25% Sales & Use Tax 12,502 108,362 75% Sales & Use Tax 148,569 (800,000) E-911 21,594 Industrial Lands` 398,600 2,204,649 Special Assessments (800,000) (892,000) Storm Drainage (1,320,000) (1,508,000) Total Special Revenue Funds (1,560,329) (865,395) Nature Park 53,568 Bike Trail (6,156) 65,975 Total Capital Project Funds 47,412 65,975 Airport (566,095) (335,135) Total Airport (566,095) (335,135) Landfill 53,568 Total Landfill 53,568 Research & Technology Center 29,687 12,602 Total Research & Technology Center 29,687 12,602 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 _________________________ ATTEST: Tim Reed, Mayor ____________________________ 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 $2,204,012 $2,204,012 Other & Nondepartmental Revenue $2,368,993 101-405-5-856-99 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 $15,448 101-452-4-334-07 Parks Grant Wellmark Grant $24,000 $36,920 $12,920 101-454-4-441-08 Forestry Reimb Expenses Reimb Exp $0 $3,765 $3,765 Recreation & Forestry Revenue $35,308 101-451-5-101-00 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 $960 101-452-5-920-00 Parks Equipment Grant-Snow Groomer $5,500 $5,500 101-454-5-101-00 Forestry Regular Pay 2 Retirements $234,970 $253,454 $18,484 Parks & Recreation & Forestry Expense $93,663 101-495-5-856-49 4th of July Fireworks Increase Subsidy Uncle Sam Jam $10,000 $12,500 $2,500 Appropriations/Subsidies $2,500 Total General Fund Revenue $2,400,301 Total General Fund Expense $188,869 Balance to be assigned for Industrial Land $2,211,432 212-000-4-441-08 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 Page 2 Budget Ordinance No. 21-11 Amendment #2 11/22/2011 By Function Original Amended Difference Account Number Department Description Detail Budget Budget 213-000-7-899-00 75% Sales & Use Transf/Special Assmnt Sewer Main $800,000 $0 ($800,000) 75% Sales & Use Expense ($800,000) 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 Close fund/Land Inventory $0 $2,204,012 $2,204,012 Industrial Land Development $2,204,649 280-000-6-700-20 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 ($865,395) 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 Page 3 Budget Ordinance No. 21-11 Amendment #2 11/22/2011 By Function Original Amended Difference Account Number Department Description Detail Budget Budget 606-000-5-970-00 Airport Runway Improvements ALP survey/404 permit $41,200 $239,700 $198,500 Airport Expenses ($335,135) 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 $53,568 630-000-4-848-12 Research & Technology Rentals FEMA $135,000 $164,687 $29,687 Research & Technology Center Revenues $29,687 630-000-5-422-07 Research & Technology Contracting Services Fema renting $4,300 $6,599 $2,299 630-000-5-425-05 Research & Technology Maintenance Building Fema renting $5,000 $9,760 $4,760 630-000-5-426-03 Research & Technology General Supplies Fema renting $200 $307 $107 630-000-5-426-04 Research & Technology Cleaning supplies Fema renting $1,000 $1,200 $200 630-000-5-428-05 Research & Technology Hauling Service Fema renting $1,550 $1,650 $100 630-000-5-429-03 Research & Technology Cleaning supplies Fema renting $7,500 $12,636 $5,136 Research & Technology Center Expenses $12,602 Total R&T Center Revenue $29,687 Total R&T Center Expenses $12,602 City of Brookings December 13, 2011 84 Second Readings / Public Hearings 12. 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. 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 Manager Introduction Action: Open and Close Public Hearing, Motion to Approve, Roll Call City of Brookings December 13, 2011 85 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 December 13, 2011 86 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 December 13, 2011 87 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 December 13, 2011 88 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 December 13, 2011 89 Second Readings / Public Hearings 13. 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, also known as 1818 20th Street South. 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. 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 City of Brookings December 13, 2011 90 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 Manager Introduction Action: Open and Close Public Hearing, Motion to Approve, Roll Call City of Brookings December 13, 2011 91 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 December 13, 2011 Published CITY OF BROOKINGS, SD ________________________ Tim Reed, Mayor ATTEST: _________________________ Shari Thornes, City Clerk NOTICE OF HEARING UPON PETITION TO REZONE NOTICE IS HEREBY GIVEN That Anthony Harris has submitted a petition to rezone the following described real estate in the City of Brookings, in Brookings County, South Dakota: The E140 feet of Outlot 2, excluding the N40 feet thereof, in the NE% of Section 1-T1 09N-R50W from a class Agricultural A District to a class Residence R-3 District. NOTICE IS FURTHER GIVEN That said request will be acted or{by the City Planning Commission at 7:00PM on Tuesday, October 4, 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 23rd day of September 2011. {)~ 1-L,J~ Dan Hanson Planning & Zoning Administrator S:\City Engrs\dms\Hearings & apps for PC\hearing notices-app for rezoning\2011\1 0 harris.doc If you require assistance, alternative formats and/or accessible locations consistent with the Americans with Disabilities Act, please contact the City ADA Coordinator at 692-6281 at least 48 hours prior to the meeting. Published __ time(s) at an approximate cost of$ ____ _ Anthony Harris 18 18 20 th Street South Bradley McManus 1800 20th Street South Craig Fairbanks 1718 20th Street South Jeffrey Sterud 1952 Spyglass Hill Drive Darin Schleicher 1960 Spyglass Hill Drive Jay Gold horn 1966 Spyglass Hill Driv e Paul Moriarty (Box 70 5) Craig Converse 1953 Spyg lass Hill Drive Eugen e Brehm er 1963 Spyglass Hill Dri ve Jai Rohila 1971 Spyg lass Hill Drive .•. ··· City of Brookings December 13, 2011 94 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. AG DISTRICT 35 ACRES BLOCK 9 R-3 DISTRICT 19 ACRES 0 0 (/') :....w 2 > <( 3 I 1-- z w 4 w 20 3 4 5 6 OL 3 AG REZONING PROPOSAL AGTOR-3 R-3 DISTRICT Co~ ri ght 0201Cl Pict ometry lntetn31ional Corp. HARRIS REQUEST II. verage Scale: I inc h = 60.0 reel City of Brookings December 13, 2011 98 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 December 13, 2011 99 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 or 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 December 13, 2011 100 Second Readings / Public Hearings 14. 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. 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 Manager Introduction Action: Open and Close Public Hearing, Motion to Approve, Roll Call City of Brookings December 13, 2011 101 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 December 13, 2011 Published CITY OF BROOKINGS, SD ________________________ Tim Reed, Mayor ATTEST: _________________________ Shari Thornes, City Clerk City of Brookings December 13, 2011 102 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 December 13, 2011 105 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 December 13, 2011 106 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 December 13, 2011 107 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 December 13, 2011 108 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 December 13, 2011 109 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 December 13, 2011 110 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 December 13, 2011 111 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 December 13, 2011 112 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. THIRD STREET PETITIONERS PROPERTY (submitted Sept. 1st Bnd 8th) LEGEROS ADDITION NEIGHBORHOOD REZONING PROPOSAL R-2 TOR-lC 0 HILLCREST ELEMENTARY _II I I II II - D FOCUSAREA * * SUBlVDTTED 9-26-11 II 'lr 52' 52' I 52' I 52' I 52' II 65 ' 63.3' I 2 ~I . ~fr ~ I ~ 1-z: w w l- 0:::: ~ 0 LL * * 110' 68 .2' 1 -~:4! 54' I K'l : <-j ~ I 60' SECOND STREET 85' -·~ 1 ~I 1 ~ II _,____1.0_0d * 4 1 '1 ) 60 ' * PROPERTIES ELIGffiLE FOR TWO-FAMILY STATUS BY R-2 DISTRICT REGULATIONS NOTE: NO PROPERTIES IN COLORED AREA WOULD BE ELIGillLEFOR TWO-F Al,llLY STATUS WITHOUT VARIANCES AI\1J> A CONDITIONAL USE PERMIT UNDER THE R-lC DISTRICT REGULATIONS 314' 0 00 ~80' 79.6' 11 4.75' tD 1-.----~ f!! I ~~ IIR,- If2 ~ ·~ l~. -. r _ ,.., 15a· .~0 1 ~ 4 I-:::----J.:fi05 ·in C'l ,J I ~ _RQ£ c L() lbO· 0 tD - II_ 8 o 1 0 ~ ~ rF-= .1 sa l·~e: ;= 75.2' --------------------------------- City of Brookings December 13, 2011 115 Second Readings / Public Hearings 15. Public hearing and action on Resolution No. 141-11, a Resolution of Intent to Lease Real Property to South Dakota State University Foundation. The City is proposing to lease space in the Research and Technology Center located at 809 32nd Avenue to the South Dakota State University Foundation. The lease period is for one year, with the option to automatically renew on a month-to-month basis thereafter. The space will be utilized by researchers at South Dakota State University in the development and testing of aquaculture feed formulations. 9-12-5.1. Powers - Lease of property - Term and conditions. Every municipality may lease its municipally-owned property. Any such lease shall be for a term and upon the conditions provided by resolution of the governing body. 9-12-5.2. Powers - Lease to private person - Resolution - Notice -Hearing - Authorization. If the governing body decides to lease any municipally owned property to any private person for a term exceeding one hundred twenty days and for an amount exceeding five hundred dollars annual value it shall adopt a resolution of intent to enter into such lease and fix a time and place for public hearing on the adoption of the resolution. Notice of the hearing shall be published in the official newspaper once, at least ten days prior to the hearing. Following the hearing the governing body may proceed to authorize the lease upon the terms and conditions it determines. Enclosed is a copy of the proposed lease agreement with the terms and conditions customarily provided to start-up business and research activities located at the Research and Technology Center. The Notice of Public Hearing was advertised one time 10 days prior to the hearing. This resolution will allow the City to enter into a lease agreement with the SDSU Foundation for one year for the City-owned Research and Technology Center. Staff Recommendation: Approve City Manager Introduction Action: Open and Close Public Hearing, Motion to Approve, Roll Call City of Brookings December 13, 2011 116 Resolution No. 141-11 Resolution of Intent to Lease Real Property to South Dakota State University Foundation 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 agreement with the SDSU Foundation, for a period of one year and automatically renewable on a month to month basis thereafter and pertaining to the following described property: Research & Technology Center; 809 32nd Avenue, Unit 1 Be It Further Noted, that a Public Hearing on this Resolution was held on December 13, 2011 at 6:00 o’clock P.M. at the City Council Chambers and that all persons were given an opportunity to be heard on the intent to lease real property. Passed and approved this the 13th day of December, 2011. CITY OF BROOKINGS, SD Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings December 13, 2011 117 LEASE AGREEMENT _________________ THIS LEASE AGREEMENT is made and entered into by and between the City of Brookings, South Dakota, a municipal corporation, Lessor, hereinafter referred to as "City", and South Dakota State University Foundation, hereinafter referred to as "Tenant". WHEREAS, City owns the Brookings Area Research and Technology Center, located at 809 – 32nd Avenue, in Brookings, South Dakota, and desires to lease a portion of said facilities to Tenant, and WHEREAS, the above-named Tenant has expressed a desire to lease a portion of said facilities hereinafter described in accordance with the terms and conditions set forth herein, now therefore, FOR AND IN CONSIDERATION OF THE MUTUAL COVENANTS, CONDITIONS AND PROMISES, THE PARTIES DO HEREBY AGREE AS FOLLOWS: 1. Lease Agreement The City does hereby lease unto Tenant and Tenant does hereby agree to lease and take from City, that space located in the Brookings Area Research and Technology Center, which is located at 809 – 32nd Avenue, Brookings, South Dakota, marked as Unit 1 on the attached Exhibit “A”, and containing approximately 3,148 square feet, hereinafter referred to as “Unit 1”. 2. Term/Option to Renew Tenant shall hold the above leased Unit 1 commencing December 15, 2011, and ending at 5:00 p.m. on December 14, 2012. Tenant shall have the option to renew this Lease for two (2) additional terms of one (1) year each. Such renewal shall be upon the same terms and conditions as the initial term except that the rent shall be adjusted as provided in Section Four (4), below. Tenant’s option to renew shall conclusively be deemed to have been exercised without prior notice unless Tenant provides written notice of Tenant’s intent not to renew to City no later than ninety (90) days prior to expiration of the then current lease term. 3. Use of Premises The above leased premises shall be used by Tenant or South Dakota State University in connection with its research and development pertaining to that business for the following purpose and no others without the prior written consent of City: The development and testing of aquaculture feed formulations, including feeding trials using live fish. Tenant shall not use any portion of the premises for purposes other than those specified herein without the prior written consent of the City and no use shall be made or permitted to be made upon the premises nor acts done which will increase the existing rate of insurance upon City of Brookings December 13, 2011 118 the property or cause cancellation of insurance policies covering said property. Tenant shall not conduct or permit any sale by auction on the premises. 4. Rent Rent for First Year of Lease The Tenant shall pay as rent to City for the first year of said Lease (through December 14, 2012), the sum of $7.50 per square foot, based upon the occupancy of 3,148 square feet, the total annual sum of $23,610 to be payable in equal monthly installments of $1,967.50. Rent for Second Year of Lease From and after December 15, 2012, provided this Lease is not terminated, the Tenant shall pay as rent to City for the second year of said Lease, the sum of $8.00 per square foot, based upon the occupancy of 3,148 square feet, the total annual sum of $25,184, to be payable in equal monthly installments of $2,098.66. Rent for Third Year of Lease From and after December 15, 2013, provided this Lease is not terminated, the Tenant shall pay as rent to City for the third year of said Lease, the sum of $8.50 per square foot, based upon the occupancy of 3,148 square feet, the total annual sum $26,758 to be payable in equal monthly installments of $2,229.83. Tenant shall pay each monthly rental on or before the 15th day of each succeeding month through the full term of this Lease, and is late if paid after the 20th day of the month. Failure to timely pay the rent, in addition to all other remedies, will result in a ten (10%) percent late charge. In the event Tenant shall terminate this Lease prior to the expiration of the Lease Agreement, all remaining lease payments shall be due and payable to City, provided, however, that the City agrees to forgive any remaining lease payments if the Tenant or South Dakota State University constructs or purchases a new facility in Brookings and moves the research as described in section 3 to said facility. 5. Utilities Tenant shall be responsible for paying its own utilities. 6. Tenant Covenants The Tenant makes the following covenants: 1. To keep the interior of Unit 1 and all fixtures therein in good condition and repair. 2. Not to make any structural alterations or additions to Unit 1 without the written consent of the City. 3. Not to assign this Lease, nor sublet Unit 1, nor to permit any other person to occupy Unit 1, except for employees of the Tenant and South Dakota State University. City of Brookings December 13, 2011 119 4. To remove, at the termination of this Lease, all goods and effects, and to leave Unit 1 in good repair and order, reasonable wear and tear excepted. 5. To use Unit 1 for the purpose of the Tenant's and/or South Dakota State University’s business only, and to comply in all respects to the schedule of Tenant's Rules of Occupation, hereinafter called "Rules", annexed to this Lease as Exhibit "B", or such amended rules that may be issued by the City or the City's agents. 6. To purchase and maintain such insurance as Tenant deems appropriate to protect Tenant from loss of Tenant's property due to fire and/or casualty; and to purchase and maintain a commercial general liability premises policy in the minimum amount of $1,000,000.00 per occurrence and $2,000,000.00 aggregate, and Tenant shall provide City with a Certificate of Insurance showing City as an additional insured. The Certificate shall provide for a ten (10) day written notice to City in the event of cancellation or material change of coverage. Tenant shall furthermore hold the City harmless and indemnify it from any injury, loss or damage that may occur to the property of employees of Tenant or other third parties visiting the Tenant or other Tenants in the facility. To the maximum extent permitted by insurance policies which may be owned by City or Tenant, Tenant and City, for the benefit of each other, waive any and all rights of subrogation which might otherwise exist. 7. To comply with all Federal, state, or local laws which may affect the Tenant's use of Unit 1. 8. Not to affix signs or advertising displays of any kind, either to the exterior or interior walls of Unit 1, or to any of its doors or windows, without the prior written consent of City. 9. Tenant shall not vacate or abandon the premises at any time during the term hereof, and if Tenant shall abandon or vacate the premises, or be dispossessed by process of law, or otherwise, any personal property belonging to Tenant left upon the premises shall be deemed to be abandoned at the option of the City. 10. City shall not be liable for any damage or injury to Tenant, or any other person, or to any property, occurring on the demised premises or any part thereof, and Tenant agrees to hold City harmless from any claims for damages unless such damage or injury results from the negligence of the City. 7. Lessor’s Covenants The City makes the following covenants: 1. The City covenants that it has the right to grant this Lease as Owner of the building. 2. To keep the exterior of the premises in good repair and condition, and to clean and maintain the areas of the Brookings Area Research and Technology Center which are used in common by all Tenants. The City shall be responsible for the exterior and interior structural maintenance of the building and maintaining the common areas. The City shall be responsible City of Brookings December 13, 2011 120 for pest control around the exterior of the Center and in the common areas. The City shall also be responsible for maintenance of the heating and cooling system. 3. To insure and keep insured at all times the buildings, structures and fixtures owned by the City against fire, windstorm and similar occurrences. 4. To permit the Tenant to occupy Unit 1 during the term of this Lease quietly and peaceably, provided the Tenant performs the covenants of this Lease. 5. To provide and update a directory of Tenants in the reception area and to provide identification signs within the building to enable visitors to locate Tenant. 6. To provide suitable means of disposing of a reasonable amount of non-hazardous waste materials resulting from use of the leased premises by Tenant. 8. Mutual Covenants 1. It is mutually agreed that the principal objective of the Brookings Area Research and Technology Center is to encourage the formation of successful new businesses and to create new job opportunities, and this Lease and any other agreement between the City and the Tenant must be construed in the context of this objective. 2. Both parties agree that if Unit 1 shall be substantially destroyed by windstorm, fire or other happening, then either party may elect to terminate this Lease by giving written notice of termination to the other party. 3. If Tenant receives the City's written permission to alter or add to the structure, such alterations or additions will be undertaken at the expense of the Tenant. When written permission has been given by the City, on the termination of this Lease by mutual consent and provided the Tenant has well and faithfully complied with the covenants of this Lease, the City will undertake to reimburse the Tenant with a proportionate part of the agreed costs of any alterations or additions which materially improve the building, provided the Tenant agrees to continue to operate its business in the City of Brookings. The details of any agreement of this kind will be contained in the letter of consent granted by the City. 4. If Tenant fails to perform any of the covenants contained in this Lease, or if the Tenant shall be declared bankrupt or insolvent, or if a receiver of the property of the Tenant is appointed, or if an assignment shall be made of a Tenant's property for the benefit of creditors, or if Tenant is otherwise in default under this Lease, then the City shall give written notice of default to Tenant. The Tenant shall have thirty (30) days to cure said default. In the event the Tenant fails to cure said default within the thirty (30) day period, the City may immediately enter into Unit 1, without further notice, and repossess Unit 1, expel the Tenant and those claiming through or under the Tenant, and remove their effects. The Tenant hereby expressly waives the service of any notice of intention to re-enter, and Tenant covenants that, in the case of such termination, the Tenant will indemnify the City against any loss of rent and other claims that the City may incur by reason of termination of this Lease and re- entry, including reasonable attorney's fees. City of Brookings December 13, 2011 121 9. Miscellaneous 1. Any notice from the City to Tenant or from Tenant to City shall be deemed duly served if mailed by certified mail to the last known address of the Tenant, or to the address of the City or to the address of the Agents acting for City, and the customary certified mail receipt shall be conclusive evidence of such service. 2. This Lease shall be subject to and construed under the laws of the State of South Dakota. IN WITNESS WHEREOF, the parties have hereto placed their signatures on the day and date set forth below. Dated this 13th day of December, 2011. CITY OF BROOKINGS, SD, LESSOR By:______________________________________ Jeff Weldon, City Manager City of Brookings P.O. Box 270 Brookings, South Dakota 57006 Telephone No. (605) 692-6281 ATTEST: __________________________________ Shari Thornes, City Clerk Dated this ___ day of _________________, 2011. _______________________, Tenant By:_______________________________________ Its:_______________________________________ SDSU Foundation 815 Medary Ave. Brookings, South Dakota 57006 .Jt-Y •• t-!J" ---li===~l-* ] a·-r . ... I== l======lll ==" - II I I II IW-t" ..... ' I\Jll l) R£C£PT10N ROIJI,I ~ - ~-~ -f'\ I , .... " ., ..... """ r= .-.. -~·-.. --;; n;:::; '-''-' L. ! 'w r- \JL/ -- oma: """~ ~ 11 I I. .1"' I """ I r 7 :J·-·· 20'-oj' CONFERENCE ROOM ~7 L/ omcE om<:< ,. 11'-oi' •. 12'-Jf .-u·-o· .. Broo ki ngs Mu lt i plex Research Bu i lding Reseorc:h &: Technology Lob .d wg Not To Scale Brookings City Engi n eer - ~ .. CORRIDOR I I ILJD ~ , ~ Cl -= 0 If- 41'-oj' ., >Pf 0 "-1 - - \J \] [ """ """"""' """ r-=--~--; ~ .~ !-dJ '~~ r tL 8'..(1" •• 24'-J" , . .. City of Brookings December 13, 2011 123 Exhibit "B” TENANT RULES OF OCCUPATION 1. These are the Rules of Occupation referred to in Section 6.5 of the Tenant Covenants contained in the Lease between the City and Tenant. 2. Tenants will be required to: a. Ensure that all access doors into the building are properly closed after exit or entry. Fire exit doors are for emergency use only and must not be used for entry or exit or for loading or unloading freight. This requirement is imposed to protect the security and integrity of the whole building and its occupants. b. Dispose of all waste materials in the receptacles provided by the City, and not to leave any garbage or waste materials in any part of the premises or on the parking lot. No oil, grease, paint, or other deleterious matter can be deposited in any drain inside or outside the building. c. Ensure that no gasoline or any other particularly inflammable explosive or combustible material is stored within Unit occupied by Tenant or on any part of the Brookings Area Research and Technology Center in violation of the City of Brookings Fire Code, with the exception only of fuel contained in the fuel tanks of Tenant’s vehicles. d. Take care to connect all plant and machinery to electrical services in an approved manner and not to overload any electrical circuits. e. Avoid obstructing the corridors or passageways within the Brookings Area Research and Technology Center and to use only approved means of transporting freight, goods or supplies through such corridors or passageways. f. Permit the City scheduled access at all reasonable times to enter and inspect Unit 1 leased to the Tenant, and to allow contractors employed by the City to enter and carry out repairs or alterations to any part of Unit 1 or its fixtures, subject to reasonable notice and an opportunity to be present during said repairs or alterations. g. Do nothing which would cause the insurance procured by the City to become void or invalidated. h. To ensure that all employees of the Tenant or South Dakota State University that access Unit 1 are aware of these Rules and to make it a condition of employment that employees obey these Rules or any variation of them which are made from time to time. City of Brookings December 13, 2011 124 Other Business 16. Action on City Manager Compensation Package for 2012. The City Council is expected to take action to establish City Manager Jeffrey Weldon’s compensation package for 2012. Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings December 13, 2011 125 Other Business 17. Action on Resolution No. 142-11, a Resolution setting forth a schedule of proposed fines for violations of the Ordinances of the City of Brookings, South Dakota. To: Mayor Tim Reed, Council Members, Jeff Weldon, City Manager, Jeff Miller, Police Chief, and Shari Thornes, City Clerk From: Steven J. Britzman, City Attorney Date: December 7, 2011 Re: Updated Fine Schedule I have been working with Jeff Miller in making a number of revisions to our Proposed Fine Schedule. The Resolution which accompanies this memo represents an update of our Schedule of Proposed Fines. During the course of the year, Brookings Police Officers occasionally bring to our attention suggestions to improve this Fine Resolution or to fill a gap, since we don’t have a proposed fine for every ordinance violation, only the most frequently encountered violations. Accordingly, this proposed revision needs to periodically occur as it is most desirable to have a proposed fine to assist the Court system. These fines also can be used where a ticket can be paid either through the Police Department (parking tickets) or through the Clerk of Courts without a Court appearance. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings December 13, 2011 126 RESOLUTION NO. 142-11 A RESOLUTION SETTING FORTH A SCHEDULE OF PROPOSED FINES FOR VIOLATIONS OF THE ORDINANCES OF THE CITY OF BROOKINGS, SOUTH DAKOTA. BE IT RESOLVED by the Governing Body of the City of Brookings, South Dakota, that the following Schedule of Proposed Fines shall be effective as prescribed by law for all violations of Ordinances set forth herein. SCHEDULE OF PROPOSED FINES WITH COURT COSTS Section Offense Fine Costs Total Miscellaneous Offenses 6-3 Open Container (alcoholic beverage) (Beer, wine, liquor in vehicle or on street) 60.00 60.00 120.00 6-142 Attempt to Purchase 60.00 60.00 120.00 6-143 Misrepresentation of Age 60.00 60.00 120.00 6-73 Possession of Keg Restricted 60.00 60.00 120.00 70-35 Littering 60.00 60.00 120.00 58-33 Resisting an Officer 60.00 60.00 120.00 58-36 Fleeing from a Police Officer 60.00 60.00 120.00 58-161 Public Urination 60.00 60.00 120.00 (formerly Disorderly Conduct) 58-162 Disturbing the Peace - House Parties First Offense 60.00 60.00 120.00 Second Offense (within 1 year period) 100.00 60.00 160.00 Third Offense (within 1 year period) 200.00 60.00 260.00 70-107 Location of Collection Containers 30.00 60.00 90.00 74-211 Failure to Remove Snow from Sidewalk 60.00 60.00 120.00 Parking Offenses with Court Appearances 82-421 Position of Parking on Two-Way Road 20.00 60.00 80.00 82-427 Places Where Standing and Parking is Prohibited 20.00 60.00 80.00 82-428 Places Where Stopping is Prohibited 20.00 60.00 80.00 82-432 Parking In Excess of 72 Hours. 20.00 60.00 80.00 82-433 Parking in Alleys 20.00 60.00 80.00 82-461 Designation of Prohibited Parking 20.00 60.00 80.00 82-462 Designation of Limited Parking 20.00 60.00 80.00 82-463 Illegal Parking (2 hr. downtown or Medary) 20.00 60.00 80.00 82-464 Parking at Night in Business Section 20.00 60.00 80.00 82-465 Parking Prohibited During Snow Removal 50.00 60.00 110.00 82-468 Parking in Disabled Space w/o Permit 100.00 60.00 160.00 82-521 Maximum Duration of Parking 20.00 60.00 80.00 94-431(2) Front Yard Parking Prohibited 20.00 60.00 80.00 City of Brookings December 13, 2011 127 Parking Offenses (if paid w/in 72 hours)/ Without Court Appearance 82-421 Position of Parking on Two-Way Road 15.00 82-427 Places Where Standing and Parking is Prohibited 15.00 82-428 Places Where Stopping is Prohibited 15.00 82-432 Parking In Excess of 72 Hours. 15.00 82-433 Parking in Alleys 15.00 82-462 Designation of Limited Parking 15.00 82-463 Illegal Parking (2 hr. downtown or Medary) 15.00 82-464 Parking at Night in Business Section 15.00 82-465 Parking Prohibited During Snow Removal 35.00 82-468 Parking in Disabled Space w/o Permit 100.00 82-521 Maximum Duration of Parking 15.00 94-431(2) Front Yard Parking Prohibited 15.00 Traffic/Driving Offenses 82-127 Failure to Comply w/Warning Ticket 60.00 60.00 120.00 82-167 Traffic Signals 60.00 60.00 120.00 82-203 Duty to Provide Information 60.00 60.00 120.00 82-206 Unattended Vehicle 60.00 60.00 120.00 82-207 Property Damage 60.00 60.00 120.00 82-208 Immediate Notice 60.00 60.00 120.00 82-241 Driver's License Violation 60.00 60.00 120.00 82-242 Age of Driver 60.00 60.00 120.00 82-243 License Plate Violation 60.00 60.00 120.00 82-244 Maximum Passengers 60.00 60.00 120.00 82-246 Driving on Sidewalk 60.00 60.00 120.00 82-247 Exhibition Driving 60.00 60.00 120.00 82-248 Following Too Closely 60.00 60.00 120.00 82-249 Following Fire Apparatus 60.00 60.00 120.00 82-251 Unsafe Backing 60.00 60.00 120.00 82-252 Driving Over Fire Hose 60.00 60.00 120.00 82-271 Driving on Left Side of Street 60.00 60.00 120.00 82-276 Driving on Divided Highway 60.00 60.00 120.00 82-277 Overtaking Vehicles/Passing to Left Required; Cutting in Front 60.00 60.00 120.00 82-279 Passing in No Passing Zone 60.00 60.00 120.00 82-280 Duty of Driver of Overtaken Vehicle; Increasing Speed 60.00 60.00 120.00 82-303 Exceeding Limits (below) 82-304 Maximum Speed Generally (below) 82-305 Speed Zones (below) 1-5 mph Over Speed Limit 30.00 60.00 90.00 6-10 mph Over Speed Limit 40.00 60.00 100.00 11-15 mph Over Speed Limit 60.00 60.00 120.00 16-20 mph Over Speed Limit 80.00 60.00 140.00 City of Brookings December 13, 2011 128 21-25 mph Over Speed Limit 105.00 60.00 165.00 Over 25 (Court Appearance) 160.00 60.00 220.00 82-306 Speeding in School Zones 1-5 mph Over Speed Limit 50.00 60.00 110.00 6-10 mph Over Speed Limit 60.00 60.00 120.00 11-15 mph Over Speed Limit 95.00 60.00 155.00 16-20 mph Over Speed Limit 130.00 60.00 190.00 Over 20 (Court Appearance) 150.00 60.00 210.00 82-309 Reckless Driving 70.00 60.00 130.00 82-310 Careless Driving 60.00 60.00 120.00 82-332 Right Turn 60.00 60.00 120.00 82-333 Left Turn 60.00 60.00 120.00 82-334 U-Turn Restricted 60.00 60.00 120.00 82-337 Cutting Corner 60.00 60.00 120.00 82-362 Yielding Right-of-Way to Emergency Vehicles; Duty of Driver of Emergency Vehicle not to Exercise Right-of-Way Arbitrarily 60.00 60.00 120.00 82-365 Vehicle Entering Stop Intersection 60.00 60.00 120.00 82-366 Stop Required Before Entering from Alley, Building or Private Road; Place of Stopping 60.00 60.00 120.00 82-367 Obedience to Stop and Yield 60.00 60.00 120.00 82-369 Stop at Railroad Crossing Signal 60.00 60.00 120.00 82-392 Obedience (One Way Streets & Alleys) 60.00 60.00 120.00 82-424 Manner of Use of Diagonal Parking Spaces 40.00 60.00 100.00 82-561 Lights on Vehicle 60.00 60.00 120.00 82-563 Obstruction of Vision 60.00 60.00 120.00 82-565 Exhaust System 60.00 60.00 120.00 82-603 Pedestrian Right-of-Way 60.00 60.00 120.00 82-605 Jaywalking 40.00 60.00 100.00 82-682 Operation of Snowmobiles on Public Parks, Streets, Roads, Alleys Sidewalks, Boulevards & Rights- of-Way 60.00 60.00 120.00 82-684 Operation of Snowmobiles on Public Property 60.00 60.00 120.00 82-721 Clinging to Moving Vehicles 60.00 60.00 120.00 82-751 Bicycle Offense 25.00 60.00 85.00 82-842 Driving Through Processions 60.00 60.00 120.00 Housing and Zoning Offenses Housing 22-374 Agent Required 60.00 60.00 120.00 22-401 Licensing of Leased Dwelling Units 60.00 60.00 120.00 City of Brookings December 13, 2011 129 22-402 Filing of Application Forms 60.00 60.00 120.00 22-405 Payment of License Fees 60.00 60.00 120.00 22-432 Failure to Comply With Smoke Detector Requirement First Offense 155.00 60.00 w/ 100.00 (suspended on condition of no similar violations for 1 year.) Second Offense 155.00 60.00 215.00 Third Offense 200.00 60.00 260.00 22-433 Failure to Comply with Exit Requirement First Offense 155.00 60.00 w/ 100.00 (suspended on condition of no similar violations for 1 year.) Second Offense 155.00 60.00 215.00 Third Offense 200.00 60.00 260.00 22-434 Failure to Comply with Parking Requirement First Offense 155.00 60.00 w/ 100.00 (suspended on condition of no similar violations for 1 year.) Second Offense 155.00 60.00 215.00 Third Offense 200.00 60.00 260.00 Zoning 94-123(c) First Offense: 94-124(c) 200.00 60.00 w/ 150.00 (suspended on condition of no similar violations for 1 year.) 94-125(c) Permitted Uses (Unlawful Use) 94-126(c) 94-127(c) 94-128(c) Second Offense: 94-129(c) 200.00 60.00 260.00 94-130(c) All Other Zoning Ordinances Violations Passed and approved this 13th day of December, 2011. CITY OF BROOKINGS: ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk City of Brookings December 13, 2011 130 Other Business 18. 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 December 13, 2011 131 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 December 13, 2011 132 Other Business 19. Review of Liquor Store draft Request for Proposal. TO: Mayor and City Council Members FROM: City Manager Jeff Weldon RE: Discussion for developing a Request for Proposal (RFP) for the possible divestiture of the Municipal retail liquor operation Pursuant to your direction of the Council work session of November 15, 2011, I was directed to identify various policy issues and considerations that would need to be inserted into a draft Request for Proposal for potential private operators so they may respond with proposals to become license holder(s) for retail liquor sales in the City of Brookings. Attached is my staff memo from the November 15th council work session as background information for continued reference for your discussion. Issues that comprise the RFP The following are items which will need to be resolved/answered by the Council before they could be inserted into an RFP: 1) Determine model of governance; (decide on Options 1-6 on from the November 15th memo if we are going to change from Option 7.) 2) Determine whether or not the issuance of retail license(s) will be exclusive or non- exclusive. If non-exclusive, how many? This solution could also be a hybrid offering exclusive for so many years and then non-exclusive after that. 3) Determine the liquor fee for a retail license(s) beyond the state fee. Is the fee expressed as an annual or multi-year fee? If multi-year, how many years? What are the criteria upon which a fee is based? A public hearing should be held prior to adopting a fee. 4) Determine the process and evaluation criteria for awarding a license. What information will be required for the application? What will the schedule be for such evaluation and who will do that? 5) If any changes are to involve the existing store, how will that affect the current lease obligations? City of Brookings December 13, 2011 133 6) If any changes are to involve the existing store, will we sell or lease the existing equipment, furnishings, fixtures, and other leasehold improvements or do we sell them. If we sell them, we must declare them surplus property and follow state law providing for the disposal of surplus equipment which could include sealed bids or auction (depending upon value of items). Present book value of the larger capital assets is $293,000. NOTE: This provides no guarantee that the intended retail operator will end up with the equipment. Such items include coolers, forklift, shelving, counters, office furniture, cash registers, point-of-sale equipment, carts, display gondolas, signage, lights, and some HVAC equipment. 7) What is the override rate expected to be? (Presumably the same 10% and 11%.) 8) What is the overall schedule for advertising, reviewing, and selecting qualifying proposals? 9) To whom, where, and how do we advertise and distribute the RFP? 10) When and how will any changes take effect? Each of these questions, and possibly others that develop during the course of the Council’s deliberation, will need to be addressed as they would need to be answered in the RFP. Best revenue scenario: current model or all override In my opinion, the overriding issue should be what is in the best financial interest of the City of Brookings. If we are convinced other options will be more financially beneficial than what we are currently doing, then we should make the change. Until we can be assured of that, we should continue on our current path. Toward that end, the question becomes: Can the City of Brookings realize more revenue from charging an override on the sale of distilled spirits by private retailers, or are we financially better off with the current arrangement? The line graph illustrates an extremely conservative projection comparing the current municipal operation of net profits with override gained from a private retail operation if that operator purchased the identical amount of inventory. In order for the City to raise override revenue to match our net profit from city retail sales, the third party would need to sell in excess of $350,000 more annually in gross sales. A scenario that is highly unlikely. Clearly, we are better off under our current arrangement. City of Brookings December 13, 2011 134 2009 2010 2011 2012 2013 Actual Actual Projection Projection Projection Liquor Store Net $ 326,803.00 $ 355,147.00 $ 323,688.00 $ 322,262.00 $ 328,448.00 Override Only $ 263,285.00 $ 274,693.00 $ 283,551.00 $ 284,000.00 $ 290,500.00 Lost Income $ 63,518.00 $ 80,454.00 $ 40,137.00 $ 38,262.00 $ 37,948.00 Lease or own a municipal store In addition, we have revisited the issue of renting versus ownership and how that consideration enters into our financial interest. Renting is very common in any retail business model and issues such as location are of paramount importance to retail/service businesses. It is frequently not possible to own suitable space, at a reasonable price, in a desired location so renting becomes a viable option. What’s more, renting a “vanilla shell” with the tenant outfitting the space with leasehold improvements is likewise very common. Owners can also outfit leased space, but they will include those upcharges in the base lease so the tenant will still pay for them. In the market in which our lease was signed, and even today, we have a very good and fair lease. The time to consider building a store is after we have depreciated out the improvements. Currently, we are one-third through our lease-plus-option so we have a long time to depreciate our leasehold improvements. With so much useful life yet in them, it makes no sense to duplicate these expenses in a different store. Depending upon the store, only some of them may be re-usable in a new store. City of Brookings December 13, 2011 135 Over the course of 20 years, if we stay at the current store, we would pay approximately $1,759,000 for the location. Over that same 20 years, if we were to build a new store valued at $2 million with another $100,000 for a desirable two acre property purchase with utilities and site work, and financed it at a favorable interest rate of 3.5 percent, that same store would cost approximately $2,923,000. That is an increase of identical stores of approximately $1,164,000 in owning instead of our current lease. By way of process, if we are to continue, I suggest we return to the top of this memo and begin by discussing the listed ten questions and develop answers so I know how to proceed. Liquor Fund 2009 Actual 2010 Actual 2011 Actual 2012 Budget 2013 Project Transfer to Other Funds $420,000 $500,000 $700,000 $725,000 $746,750 2001 2002 2003 2004 2005 Liquor Store Net $ 100,483.13 $ 115,643.20 $ 133,524.90 $ 178,041.94 $ 203,253.81 3rd Party $ 142,062.75 $ 144,792.16 $ 161,022.72 $ 175,625.61 $ 183,221.80 Difference ($41,579.62) ($29,148.96) ($27,497.82) $2,416.33 $20,032.01 2006 2007 2008 2009 2010 Liquor Store Net $ 134,520.97 $ 105,292.00 $ 218,807.00 $ 321,803.00 $ 355,147.00 3rd Party $ 217,615.61 $ 225,877.00 $ 256,756.00 $ 263,285.00 $ 274,693.00 Difference ($83,094.64) ($120,585.00) ($37,949.00) $58,518.00 $80,454.00 Liquor Store Move Building inventory Building inventory City of Brookings December 13, 2011 136 Historical Analysis of Liquor Fund Net versus Override $400,000.00 $350,000.00 $300,000.00 $250,000.00 $200,000.00 $150,000.00 $100,000.00 $50,000.00 $- 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ...,._3rd Party Proj ected Ov erride -Off Sa le Net Pro fi t City of Brookings December 13, 2011 137 November 15, 2011 Council Packet Agenda Item #2 #2. Discussion regarding Brookings Municipal Liquor Store TO: Mayor and City Council Members FROM: City Manager Jeff Weldon RE: Information pertaining to Brookings Municipal Liquor Store During the September 27th Council meeting work session, you directed staff to assemble some information pertaining to options for management and operations. Attached are the minutes from that work session discussion as a reminder. Models of Operation A central theme which seemed to be the genesis of this issue has to do with the various governance and management options of an off-sale liquor enterprise in the community. Also attached is the report commissioned by the City Council in 2003 “Review of Brookings Municipal Liquor Store” by Lyndon M. Griffin. Section IV, Options and Recommendations (C) Privatization on pages 11-14 provide information and analysis pertaining to the various options other than municipal operations. Generally, the various options of governance are as follows: 1) Sell the operation and issue an exclusive off-sale license to one private operator. 2) Sell the operation and issue multiple off-sale licenses to as many operators as the Council deems appropriate. 3) Retain ownership of the operation and turn over operations through a management agreement to a private operator with a payment to the City prescribed through a manner, method, or formula specified in the contract. 4) If the Council wishes to increase the number of locations, additional municipal off- sale stores could be developed. 5) When the current lease expires, do not renew the lease but instead build/own a new municipal store at a different location. 6) Continue to operate our own municipal off-sale, but also issue private off-sale licenses. 7) Change nothing; maintain the status quo. Page 19 provided a recommendation of retaining the municipal operation model and suggested a new location and operational changes to increase profitability by adjusting gross profit margins. “. . . The operation is very stable and well managed regarding all operating expenses. Substantial additional profits can be attained by adjusting gross profit margins and/or relocating to an expanded facility in a high traffic flow site and consumer visibility. There appears to be no significant financial reason to sell the business or subrogate to a management contract. The City would greatly benefit from maximizing the success of City of Brookings December 13, 2011 138 the current operation. Continuing city operation of the store appears to be the best way to insure the City’s ‘control’ responsibility of avoiding sales to minors and/or intoxicated persons.” If the City Council wishes to return to the consideration of the options of ownership/operation models, the descriptions in Section IV are instructive. The strength of a chain liquor store, such as Surdyk’s or MGM Liquor Warehouse, provides higher name recognition, and I am unaware if they would look at a market this small. Typically, such chains will require larger, metropolitan areas. Even so, such chains typically send their profits to their headquarters and are not reinvested where they are earned. Cost of owning property for a municipal liquor store Following the Griffin report, the City Council subsequently entered into a lease at the Brookings Mall for 12,500 square feet of retail space and moved the store. The 10-year lease expires in 2016 with an option to renew for a five-year term with the identical terms and conditions. The first year lease cost was $76,000, and it contains an escalator of two percent per year. By the end of the initial 10-year term, the lease will cost $744,412 after some rebate adjustments. We pay our own utilities, but the parking lot is included in the rent. We also have common area maintenance (CAM) costs in addition to the rent which can vary slightly from year to year and are standard for retail rental in malls. We used the net sales proceeds from the sale of the old store to generate approximately $300,000 to invest in leasehold improvements, furnishings, fixtures, and equipment outfitting the new store. The assertion was also previously raised that as much as $500,000 of General Fund was used for improvements to the new store. This is not correct. No General Fund revenue has been used to pay for any portion of the new store. Alternatively, if we were to replace the rental store with an owned facility, we can expect to have approximately $100 per square foot in construction costs for commercial space. To duplicate an owned facility with 12,500 square feet would cost just over $2 million for basic construction, fees, contingency, furnishings, fixtures, and equipment but excluding land, utilities, and site work. Cost Accounting Charge to Override Operation The liquor budget contains a line-item cost charged against the override part of the operation in the amount of $40,000 per year. This is the only cost charged against this revenue stream. The purpose is to charge to the override revenue the cost of financial administration of the override by the various staff who process the override. Managing the override is a detailed financial and time-consuming process and true cost accounting practices dictate that costs incurred as a result of managing this service be charged against that service. This amount was established several years ago as a result of an estimated time management study, and the amount has never been adjusted. This charge means the override pays its fair share and is not unduly subsidized by the Retail side of the liquor operation. City of Brookings December 13, 2011 139 As a result of this issue being questioned, staff has undertaken another time management study. The following are salary/benefit costs of various employees associated with accounting for the override: 1. Liquor store clerks per week $ 84.35 2. Finance Accounting Clerk per week $ 55.44 3. Liquor Store Accountant per week $666.88 4. Liquor Store Manager per week $ 81.88 TOTAL $888.55 X 52 weeks $46,204.60 per year In order to have an accounting system with sufficient internal controls, several employees are utilized for cross-checking and verification of the process. In order to effectively account for the true cost of processing the override, the retail should be charging the override an additional $6,204 per year beyond what is currently charged. Operational Transfers The attached chart indicates the history of the transfers from the liquor operation to other funds. The transfers have greatly helped supplement the General Fund with an alternative revenue stream aiding in general operations of the City. The transfer has also assisted with providing capital loans to the golf course for new mowers and the Street Department for a grader replacement. The transfer also helps with cash flow for the golf course operations; a subsidy which otherwise would be necessary from the General Fund. Liquor store transfers can be viewed as a ‘shareholder dividend’ being paid back to the owners since it is a reinvestment in other City operations and services. The transfer comes from both the Override and Retail sides of the operation. For 2012, the total net profit from the override and retail operation was $828,326 of which 43 percent was generated from the retail operation and 57 percent was generated from the override; and made a combined transfer of $500,000. For 2011 and 2012, the transfers are $700,000 and $725,000 respectively. If we do not have a municipal retail operation, we lose that 43 percent transfer, or $215,000, $301,000, and $311,750 respectively. If we change our governance structure in favor of a private arrangement, we need to determine a method to replace this revenue stream as the General Fund is heavily dependent upon it. Wholesale purchases by a private off-sale store would also pay the override, so there would be a revenue increase from this. Whether or not the replacement override from private off-sale stores would be more or less than the net profit from a municipal off-sale is speculative, at best. Profit Goal Established and Attained The City Council established a profit goal of eight percent on net sales from the retail operation. Historically, profitability at this level had been sluggish at the old store, which was one of the reasons the Council re-evaluated the operation which precipitated the Griffin Study. After the re-location, profitability began to improve with the new location, but marketing, customer acclimation to a new location, and ‘ramp-up’ to a certain degree, suppressed profitability as is to be expected with such changes. Upon immediately being given this City of Brookings December 13, 2011 140 profitability goal from the City Council, we instituted some operational changes to reduce expenditures and increase revenue. Within three quarters, the goal of eight percent net profit was realized and has been there ever since. Our highest quarter was 2009 fourth quarter when our net profit was 12.63 percent. This goal was met in the face of increased wine licenses issued to other retailers thus increasing competition. I am convinced our net profit would be even higher if we had not approved private wine licenses. Some of those operational changes included: increased and more aggressive marketing and advertising; reducing staffing by downgrading the Assistant Manager position to a Head Sales Clerk position; not filling a vacant sales clerk position via attrition; more efficient staffing and scheduling; increasing store hours on Sundays; more effective promotion of sales and specials; and perhaps most importantly, implementing industry standards for inventory pricing. Because of these operational changes, we now have more net sales revenue from the retail operation than we would likely have if we were to charge the same level of purchases to a private store through the override. Industry Standards for Certain Operational Benchmarks In addition to net profit, there are other metrics that should be examined. The Griffin Study suggests the industry standard for gross profit of retail stores should be at 25 percent (p.3). At the old store, the gross profit was 19 percent as noted in the study. For 2010, the current store was at 25.28 percent. The Griffin Study also suggests advertising be budgeted at one percent of gross sales (p.4). For 2010, we spent $25,000 on $3,626,713 of gross sales which is exactly one percent. For 2011, we budgeted $30,000 in advertising. The Griffin Study further suggests employee cost ratio as a percentage of sales should not exceed 10 percent (p.4). For 2010, our personnel costs exceeded this target level at only nine percent. For year-to-date 2011, we are running at exactly 10 percent. Customer Satisfaction Survey Previously, the Council briefly discussed the possibility of undertaking a customer service / satisfaction survey; and that our website could be used to do that. Unfortunately, use of websites for public opinion surveys are not very scientific, and therefore do not provide much usefulness for such information in this process. We would need to undertake a process that was scientifically valid and statistically reliable for such an exercise to be of any value, and the Council has not yet authorized such a project. Consideration of Additional Off-Sale Retail Outlets As Brookings continues to grow, the question can be asked as to whether or not we are large enough to support additional retail outlets at different locations around the community. Obviously, communities much smaller than Brookings have more than one retail outlet for spirits. We already have numerous retail outlets for beer and wine. This becomes an issue of market size and demographics. The answer to this question is beyond the scope of this memo, but the question should probably be pursued. City of Brookings December 13, 2011 141 If the City were to consider additional off-sale locations, or any partnership with a management contract for additional locations, commissioning another study would probably be advisable. Without the benefit of quantifiable data from a study, my speculation is that additional municipal off-sales would not be profitable as operating and capital expenses would likely exceed revenue. If the City were to get out of the municipal operation and opt for private liquor stores by issuing multiple off-sale licenses to the private sector, that will be for the market and the private sector to determine. If we chose the latter, we would then have to face the issue of establishing a liquor license fee for an off-sale liquor license. -------- TRANSFERS FROM LIQUOR FUND TO OTHER FUNDS $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- ~"' ~'? ~ ~"' d<J ~~ ~co ~0) '\.1\5 '\.1\5 '\.\:3 '\,.1\5 '\.1\5 \">'li --ss '\.1\5 ~ iS Ill LI QUOR Off Sale Net Profit $350,000.00 $300,000.00 .. $250,000.00 1::: 0 $200,000.00 ... Q.. $150,000.00 ... ,.._--- Q) z $100,000.00 $50,000.00 $- ~"). ~"' ~'? ~ ~"' 'l;~ ~ '\.1\5 '\.1\5 '\.1\5 '\.1\5 '\.1\5 0~ '\.1\5 ro~ <:>1\5 'V Q) 110 It! ... Liquor Fund Return on Asset c Q) v ... Q) Q.. 60.00% ... Q) Cll ~ 40.00% c 0 20.00% c ... ::I 0.00% t a: 2008 2009 2010 !\.<:> '\.<:> ~co '\.1\5 !\."). '\.<:> y '\.<:> ~0) '\.1\5 r$ '\.<:> Total Operation Retail Only I 1/ ""o II City of Brookings December 13, 2011 143 Other Business 20. Consideration of the City being a co-applicant of an Economic Development Administration (EDA) Grant. The Brookings Economic Development Corporation (BEDC) is requesting the City of Brookings to become a co-applicant in their request to the US Department of Commerce, Economic Development Administration (EDA) to construct a “Technology Commercialization Center”. BEDC is a non- profit organization; therefore the EDA is requiring them to identify a public co-applicant. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings December 13, 2011 144 Proposal for the Agriculture Technology Center for Rural Enterprise Opportunity to Accelerate Economic Recovery and Rural Development – Private investment groups, such as South Dakota Innovation Partners, and economic development groups, such as Brookings Economic Development Corporation and the South Dakota Governor’s Office of Economic Development, have been working with the state’s university system to accelerate investment opportunities and job growth given a significant increase in research within the state and the region. Research within the state increased 40% to $150M in FY10, while research at South Dakota State University (“SDSU”) increased 30% to $65M. SDSU has become the nation’s fastest growing land-grant university in agricultural and related research, with an increase in annual research expenditures of more than 100% over the past 5 years, an increase in invention disclosures by researchers of more than 500% over the past 3 years, and an increase in research-derived, venture-backed start-up companies over the past year. As a land-grant university, SDSU’s research focuses on increasing the value of agricultural products through the use of our natural resources to support rural development. Specifically, SDSU and the State of South Dakota has been a recognized leader in building and sustaining the nation’s biofuel industry, which has been critical to enhancing our energy security and supporting our rural communities with new jobs. Current Challenge to Address – Despite this recent success, recent public and private investments in human resources to support research commercialization, and our leadership in the biofuel industry, South Dakota and the surrounding region does not have access to adequate facilities and equipment for industry partners, such as independent ethanol producers and other commodity producers, and university researchers to collaboratively develop and test early-stage technologies at a pilot scale. City of Brookings December 13, 2011 145 This proposed pilot scale facility, the Agriculture Technology Center for Rural Enterprise (the “Center”), would not only generate the technical and economic performance metrics required for lab-scale research translation to industrial-scale applications, but it would create a significant number of new jobs in a number of rural communities. The Center will be a 30,000 square foot, reconfigurable, multi-component, sustainable development facility, constructed in Brookings at an estimated cost of $2.4 million, which will enable the integration of individual, pilot-scale technologies into operational production systems and establish new agri-business ventures that will be lead by entrepreneurs in our rural communities. Specific strategic objectives of the Center include the following: 1. Demonstrate and optimize proven technologies at pilot-scale, commercial capacity; 2. Complement proven technologies with technical, process, and economic information required to establish successful rural-based business ventures; and 3. Provide a pre-defined suite of business start-up services to rural entrepreneurs by leveraging existing rural development centers, including technical services, process and workforce training, and investment capital. Initial components of the Center include bioprocessing and aquaculture, which are critical areas of development for South Dakota’s rural economy given our natural resources and the nation’s food and energy security:  Independent ethanol producers are challenged by significant investments in assets but limited resources to conduct research and development, product diversification in highly volatile commodity markets, and public perception related to the carbon footprint. South Dakota researchers are developing technology platforms to convert waste products within ethanol plants, such as CO2, into valuable drop-in fuels to diversify production.  Food fish products compose the third largest contributor to the U.S. trade deficit of more than $7 billion annually, which has caused the U.S. Department of Commerce to call for an increase in domestic aquaculture production. South Dakota researchers are developing plant-derived aquaculture feeds to replace expensive and declining supplies of fish meal. Mobilization of Key Stakeholders to Close Gap – A number of strategic partnerships have been established to achieve the objectives of the Center:  South Dakota Soybean Research and Promotion Council has committed significant funding to study opportunities in aquaculture, including the use of soybeans in aquaculture feed;  Independent ethanol producers in the region are in the process of forming an investment fund to establish a collaborative research and development function and focus on the current challenges facing ethanol producers;  Brookings Economic Development Corporation and South Dakota Value-Added Agriculture Development Center are supporting proposals to the Economic Development Administration to support construction of the Center; City of Brookings December 13, 2011 146  SDSU and other universities in the region are conducting market-aligned bioprocessing and aquaculture research under current grants and contracts that would serve as initial customers of the Center; and  South Dakota Innovation Partners has formed and capitalized new start-up companies derived from university research and is working with industry partners that would serve as initial customers of the Center. Final Considerations – President Obama announced the investment of more than $500 million over the next 3 years in partnership with the private sector to produce advanced drop-in aviation and marine biofuel to power military and commercial transportation. The proposed Agriculture Technology Center for Rural Enterprise would not only utilize South Dakota’s natural resources, research, and public-private partnerships to respond to the President’s call for action, but it would focus on the creation of sustainable rural business ventures and jobs to support our local communities. Our models project several hundred jobs could be created in aquaculture alone within the first several months of the Center. South Dakota and the region’s rural economy would benefit greatly from the business opportunities generated by the creative interaction of existing and emerging technology-based companies and university researchers. City of Brookings December 13, 2011 147 A.2. Investment (Project) Description The proposed project consists of the construction of a 30,000 square foot Technology Commercialization Center, a reconfigurable physical structure designed to accommodate pilot scale validation and commercialization activity for the creation of new value-added agricultural industry clusters in distressed rural communities and regions. The facility, and construction project, will include the following key components:  30,000 SF steel on steel building  18’ sidewalls  4 - 6 offices  Reception area  Classroom/conference room  3 bench laboratories  Dry storage area  Food grade processing area  2 restroom/locker rooms  24,000 SF reconfigurable production/processing space  Mechanical room  HVAC throughout building  Back-up generator  3 phase electrical  Overhead doors for equipment entrances  Associated parking areas, driveways  3- 5 acres of land $1,230,000 in EDA funding is requested to assist with construction of the 30,000 SF Technology Commercialization Center. The total project cost is estimated at $2.46 million. A preliminary design/build estimate for the building was obtained from a local developer. (See Exhibit 1 – Cost Estimate, and Exhibit 2 – Floor Plan.) City of Brookings December 13, 2011 148 Exhibit 1 – Cost Estimate 9/13/11 Brookings EDC 414 Main Avenue Brookings, SD 57006 Attn: Al Heuton Re: Future Project Dear Al, This letter is in response to your request for an estimated cost for a Technology Commercialization Center. Following is my analysis and assumptions used to arrive at a cost per square foot range:  Architectural and Engineering – Due to the size and scope of the project, I included the cost associated with a full set of plans including stamped architectural, civil, structural, mechanical, and electrical plans.  Site Work – The site is to be located in the Telkamp Industrial Park. I have assumed that only minimal grade elevation differences will be present. Standard stripping of 8” of topsoil, importing 6” of base course gravel, and redistribution of topsoil at the end of the project is included.  Parking Lot – This analysis includes a parking lot for 50 employees. It has been figured with the standard 6” of base course gravel and 3” of asphalt.  Type of Construction – Office/Reception/Conference/Classroom/Labs/Processing/& Locker Room Areas – The 6,000sf office will be built using standard wood frame construction within the warehouse building. The exterior frontage includes a mix of brick and steel siding. The roofing would be standing seem steel roofing.  Type of Construction – Warehouse – The metal building is to be built using a standard pre-engineered steel building, 150’ wide x 200’ long with a sidewall height of 18’-0”. There are 8 bays at 25’-0” each equaling the 200’ length. There is one support column at each main frame for a total of (2) 75’-0” bays in width equaling 150’. The concrete floor is to be 6” x 4000# concrete with rebar @ 24” on center each way.  Finishes – Office – The interior of the office includes middle of the line features that allows for floor coverings, finished ceilings, painted walls, some cabinetry, doors, windows, and trim.  Finishes – Warehouse – The interior finishes of the metal building have been figured using what we call a simple saver finish. The ceilings and walls include insulation that City of Brookings December 13, 2011 149 has a heavy vinyl white vapor barrier over it. It finishes off the interior nicely. I have also included steel liner panel from the floor up to 8’-0” to protect the insulation from damage. The building is super-insulated with 12” at the ceilings and 8” at the walls with thermal breaks at both areas.  Plumbing – The metal building includes two bathrooms to service the warehouse workers. The warehouse also includes floor drains as needed. The Office would include two main bathrooms and plumbing to lab sinks. No other plumbing has been included.  Fire Sprinkler – Due to the size of the buildings, both the office and warehouse will need a fire sprinkler system and is included.  HVAC Systems – The metal building includes a forced air HVAC system to both heat and cool the area. The Office would include both heating and cooling using forced air furnaces.  Electrical Systems – Both the Office and metal building include standard electrical services and lighting as required with 3-phase power. A back-up generator has been included. This analysis does not include any other electrical systems like security systems, sound systems, etc.  Utility Connections – At this time, it is uncertain how the utility systems such as the water, sewer, fire sprinkler, gas, and electrical will be run to the new buildings. Therefore, this analysis includes standard allowances for the utility installation.  Owner Supplied Equipment – This analysis does not include any Owner specific items. Installation of loading docks would add approximately $2/SF. Using all of the above information and past project information, the cost per square foot range is: 30,000sf Warehouse - Includes 6,000sf of Office Space COST PER SQUARE FOOT – LOW $53.00/sf TOTAL COST OF PROJECT – LOW $1,590,000 COST PER SQUARE FOOT - MIDDLE $55.50/sf TOTAL COST OF PROJECT – MIDDLE $1,650,000 COST PER SQUARE FOOT – HIGH $58.00/sf TOTAL COST OF PROJECT – HIGH $1,740,000 With Loading Docks: add $2/sf $60.00/sf Please let me know if you have any further questions. I appreciate the opportunity to provide you with this estimate and look forward to working with you if this project goes forward. Sincerely, MILLS CONSTRUCTION, INC. Paul Sahr, Operations Manager cc: Randy Hanson file 1 ·· l L" · _,:::::::.:_ -~~--::-.-:-::.,;.::.._:-··-~ ·'-"~~-.-~~·~=·~11 I' ll j -- j ----- J -··· i WOMAN I ME'H i-lAYOUT BY 40 SF OWNER ;·-14EN --I 230' ; • RECEPT. I I I C· 1- I \l ,:-lAYOUT BY OWNER ; r:-J N. ~ -EQUIP. i ; I --- ----- I I;.-... n I ' l[n ;j I ! ---- ---~ I ... ---· -----jl-100'---t---4--+:--... ! ; L ) ( City of Brookings December 13, 2011 151 Other Business 21. Executive Session for purposes of consulting with legal counsel on pending contractual matters, pursuant to SDCL 1-25-2(3). SDCL 1-25-2. Executive or closed meetings. Executive or closed meetings may be held for the sole purpose of: 1. Discussing the qualifications, competence, performance, character or fitness of any public officer or employee or prospective public officer or employee. The term “employee” does not include any independent contractors; 2. Discussing the expulsion, suspension, discipline, assignment of or the educational program of a student; 3. Consulting with legal counsel or reviewing communications from legal counsel about proposed or pending litigation or contractual matters; 4. Discussing marketing or pricing strategies by a board or commission of a business owned by the state or any of its political subdivisions, where public discussions would be harmful to the competitive position of the business. However, any official action concerning such matters shall be made at an open official meeting. An executive or closed meeting shall be held only upon a majority vote of the members of such body present and voting, and discussion during the closed meeting is restricted to the purpose specified in the closure motion. Nothing in 1-25-1 or this section may be construed to prevent an executive or closed meeting if the federal or state Constitution or the federal or state statutes require or permit it. A violation of this section is a Class 2 misdemeanor. Action: Motion to enter executive session – voice vote Motion to leave executive session – voice vote City of Brookings December 13, 2011 152 22. Adjourn