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HomeMy WebLinkAbout2010_04_27 CC PKTCity Council Packet April 27, 2010 1 Brookings City Council Tuesday, April 27, 2010 City Hall Council Chambers 311 Third Avenue 5:00 p.m. – Work Session 6:00 p.m. – Regular Meeting Mission Statement: The City of Brookings is committed to providing a high quality of life for its citizens and fostering a diverse economic base through innovative thinking, strategic planning, and proactive, fiscally responsible municipal management. 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. Storm Water Phase II Regulations. 2. Board of Trustees Nomination to South Dakota Retirement System 3. City Council Member Ex-Officio Reports 4. City Council member introduction of topics for future discussion * 5. Council Invites & Obligations *Any Council member may request discussion of any issue at a future meeting only. Items can not be added for action at this meeting. A motion and second is required starting the issue, requested outcome, and time. A majority vote is required. 6:00 P.M. REGULAR MEETING 1. Call to order. 2. Pledge of Allegiance. 3. Record of Council attendance. 4. Action to approve the following Consent Agenda Items * A. Action to approve the agenda. B. Approval of minutes. C. Action on Resolution No. 44-10, awarding bids on 2010-06STI Chip Seal Project. D. Action on Resolution No. 45-10, declaring surplus property. E. Action on Resolution No. 46-10, authorizing the Brookings Summer Arts Festival Committee to have exclusive use of Pioneer Park. F. Action on volunteer appointments to various city boards, committees and commissions. Motion to approve, request public comment, roll call * Matters appearing on the Consent Agenda are expected to be non-controversial and will be acted upon by the Council at one time, without discussion, unless a member of the Council or City Manager requests an opportunity to address any given item. Items removed from the Consent Agenda will be discussed at the beginning of the formal items. Approval by the Council of the Consent Agenda items means that the recommendation of the City Manager is approved along with the terms and conditions described in the agenda supporting documentation. Presentations, Special Requests/Invites & Reports: 5. Open Forum. 6. SDSU Student Senate Report. Informational City Council Packet April 27, 2010 2 Contract Awards/Change Orders: 7. Action to authorize the Mayor to sign an Architectural Contract with Cannon, Moss, Brygger Architects, for the Brookings City/County Administration Building. City Manager Introduction, Motion to Approve, Request Public Comment, Roll Call Ordinance First Readings**: 8. Ordinance No. 17-10: an Ordinance Amending Section 58-165 of the Code of Ordinances of the City of Brookings, South Dakota and pertaining to Loud and Raucous Noise in the City of Brookings, South Dakota. Public Hearing – May 11th 9. Ordinance No. 18-10: an Ordinance pertaining to an Application for a Conditional Use for a Contractors Shop and Storage Yard in the Business B-3 District, Lot 10, Block 4, Folsom Addition, also known as 147 3rd Avenue South. Public Hearing – May 11th ** 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 10. Action to approve Resolution No. 48-10, a Resolution of Intent to Lease Real Property to Private Person for a farm lease with Joel C. Foster, for a period of Three (3) years and pertaining to the following described property, for the Northeast One-fourth (NE¼), except Lots One (1) and Two (2) and except Lots H-4, H-5 and the platted lots thereof, of Section Nineteen (19), Township One Hundred Ten (110) North, Range Forty-nine (49) West of the 5th P.M., County of Brookings, State of South Dakota. City Manager Introduction, Open & Close Public Hearing, Motion to Approve, Roll Call 11. Ordinance No. 16-10: an Ordinance Amending Section 62-34 of the Code of Ordinances of the City of Brookings, South Dakota and Pertaining to the Terms of Office for the Park and Recreation Board in the City of Brookings, South Dakota. City Manager Introduction, Open & Close Public Hearing, Motion to Approve, Roll Call 12. Public hearing and action on Resolution No. 49-10, a Resolution authorizing Vacation of an alley abutting Lots 3 through 14 of Block 1, Thornbers Addition (7th to 8th Street and 12th to 13th Avenue). City Manager Introduction, Open & Close Public Hearing, Motion to Approve, Roll Call 13. Public hearing and action on Resolution No. 50-10, Authorizing Meyer‟s Second Addition Road District, Brookings County, South Dakota City Manager Introduction, Open & Close Public Hearing, Motion to Approve, Roll Call Other Business: 14. Action on Resolution No. 51-10, establishing the Fee for the issuance of Full-Service Restaurant On-Sale Licenses in the City of Brookings. City Manager Introduction, Motion to Approve, Request Public Comment, Roll Call 15. Action on Resolution No. 52-10, adopting a Master Park Plan. City Manager Introduction, Motion to Approve, Request Public Comment, Roll Call City Council Packet April 27, 2010 3 16. Design update on the Railroad Crossing Project at Main Avenue. City Manager Introduction, Informational 17. Discussion and possible action to purchase Hangar Site A, at the Brookings Municipal Airport, from J.J. Jones, LLC. City Manager Introduction, Motion to Approve, Request Public Comment, Roll Call 18. Adjourn. Brookings City Council Tim Reed, Mayor Mike Bartley, Deputy Mayor & Council Member Council Members Tom Bezdichek, John Kubal, Mike McClemans, Jael Thorpe, Julie Whaley, 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 @ 1pm, Thursday @ 7 pm, Friday @ 9 pm, and Saturday @ 1 pm. 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 Council Packet April 27, 2010 4 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 1. Storm Water Phase II Regulations. Jackie Lanning, City Engineer, along with Al Spangler, Natural Resources Project Engineer from the Surface Water Quality Department of the South Dakota Department of Natural Resources (SDDENR) in Pierre, will be giving a presentation regarding the Storm Water Phase II regulations. What is an MS4? MS4 stands for Municipal Separate Storm Sewer System. It simply refers to a municipal storm sewer system that is separate from the sanitary sewer system. A “Small” MS4 is defined as a separate storm sewer system that is: owned or operated by a federal, state, city, town, county, association, district, sanitary district, or other public body with jurisdiction over the disposal of sewage, industrial wastes, or other wastes; and is located in an incorporated place that serves a population of less than 100,000 or that is located in one or more counties with unincorporated urbanized populations serving less than 100,000. What is Storm Water Phase II? The Storm Water Phase II Regulations relate to storm water quality. Polluted storm water runoff is often transported and ultimately discharged into local rivers and streams without being treated. The Federal Clean Water Act, through the development of national storm water regulations, establishes a Storm Water Management Program for Small MS4 communities. A Small MS4 (Municipal Separate Storm Sewer System) community is a municipality with its own storm sewer system and has a population greater than 10,000 and less than 100,000. Sometimes Small MS4 communities are also called „Phase II Communities‟. This program is intended to improve surface water quality by reducing the quantity of pollutants that storm water picks up and carries into storm sewer systems; not only as a result of storm events, but also snow and ice melting events. Common pollutants include oil and grease from roadways and parking lots, fertilizers and pesticides, sediment from construction sites, and carelessly discarded trash. When deposited into nearby waterways through MS4 discharges, these pollutants can impair the waterways; thereby reducing flow capacity, discouraging recreational use of the resource, contaminating drinking water supplies, and interfering with habitat for fish, other aquatic organisms, and wildlife. As a result of new federal regulations, referred to as the Phase II Storm Water Rule for storm water discharges from Small MS4 communities, certain municipalities are required to obtain a storm water permit for their storm water systems. City Council Packet April 27, 2010 5 Who Must Apply for a Municipal Storm Water Permit? Small MS4 communities (aka Phase II communities) meeting the following criteria must obtain a storm water discharge permit for their system: Small MS4s located in an urbanized area Small MS4s which serve a population of at least 10,000 people. Small MS4s designated by the Secretary as needing coverage. Phase II Storm Water Regulations Phase II regulations became effective on March 10, 2003 for the affected municipalities, called Small MS4s. The cities in South Dakota that fall under these regulations are: Rapid City North Sioux City Aberdeen Watertown Brookings Mitchell Pierre Yankton Huron Vermillion Spearfish Sturgis SDDOT The South Dakota Department of Natural Resources (SDDENR) was designated by the federal government as the permitting authority. Therefore, the SDDENR issues the storm water permits to these cities. As a part of the storm water permit, each municipality must develop and implement a Storm Water Management Program. The program must address at a minimum, the following areas: 1. Public education and outreach; 2. Public participation/involvement; 3. Illicit discharge detection and elimination; 4. Construction site storm water runoff control; 5. Post-construction storm water management; and, 6. Pollution prevention/good housekeeping for municipal operations. The City of Brookings has a Storm Water Management Program and the 2009 summary was submitted to the City Council along with the committee and departmental annual reports. Mr. Spangler will update the City Council on the Phase II regulations and the additional requirements that must be adopted by all Small MS4 communities by July 1, 2010. City Council Packet April 27, 2010 6 Next Steps: The Phase II regulations require each MS4 community to adopt ordinances that will regulate pollutants such as illicit discharge, construction site storm water runoff control and post- construction storm water management. The City of Brookings has adopted subdivision regulations along with the Storm Drainage Design and Technical Criteria Manual, which meet part of the ordinance requirement. However, additional ordinances need to be adopted to meet SDDENR minimum guidelines. This work session will provide an overview of the regulations and the program. The following timeline is proposed to adopt the new ordinance: April 27, 2010: City Council Work Session on Storm Water Phase II Regulations May 11, 2010: City Council to review draft ordinance for Storm Water Phase II May 25, 2010: 1st Reading on the Storm Water Phase II Ordinance June 8, 2010: 2nd Reading on the Storm Water Phase II Ordinance A press release has been issued for this work session. Since this will affect individual building projects, Brookings homebuilders and developers were sent a notice of this work session by first class mail. Estimate Time: 45 Minutes City Council Packet April 27, 2010 7 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. Board of Trustees Nomination to the South Dakota Retirement System. Effective July, 1, 2010, the South Dakota Retirement System Board will have a trustee position representing elected municipal officials vacant. If the governing body wishes to submit a nomination, it must do so by May 24th. Mayor Reed requested this be placed on the agenda for council discussion. Estimate Time: 5 Minutes City Council Packet April 27, 2010 9 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 3. City Council Member Ex-Officio Reports. Pursuant to council direction, “City Council Member Ex-Officio Reports” will be a standing agenda item at all Council Work Sessions. The Council Members that serve as Ex-Officio members on the Brookings Health System Board and Utility Board will provide verbal reports regarding recent meetings they have attended. Utility Board: Council Members Bezdichek and Kubal Health Systems Board: Council Members Whaley and Thorpe City Council Packet April 27, 2010 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. 4. City Council member introduction of topics for future discussion.* *Any Council member may request discussion of any issue at a future meeting only. Items cannot be added for action at this meeting. A motion and second is required starting the issue, requested outcome, and time. A majority vote is required. City Council Packet April 27, 2010 11 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 5. Council Invites & Obligations. Date Day Event & Brief Description Time Location Town Address Directions May 11 Tuesday Council Meeting 5:00 p.m. Council Chambers May 25 Tuesday Council Meeting 5:00 p.m. Council Chambers June 8 Tuesday Council Meeting 5:00 p.m. Council Chambers June 22 Tuesday Council Meeting 5:00 p.m. Council Chambers June 30 Wednesday Governor‟s Ag Development Summit Sioux Falls Convention Center Sept. 23-25 Thursday – Saturday NLC 18th Annual Leadership Summit “Leading the Charge in Local Government” Philadelphia, Pennsylvania Nov. 29 – Dec. 4 Monday – Saturday NLC-Congress of Cities Denver, CO City Council Packet April 27, 2010 12 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. Approval of minutes. C. Action on Resolution No. 44-10, awarding bids on 2010-06STI Chip Seal Project. D. Action on Resolution No. 45-10, declaring surplus property. E. Action on Resolution No. 46-10, authorizing the Brookings Summer Arts Festival Committee exclusive use of Pioneer Park. F. Action on volunteer appointments to various city boards, committees and commissions. Motion to approve, request public comment, roll call Presentations, Special Requests/Invites & Reports 5. Open Forum. 6. SDSU Student Senate Report. Contract Awards/Change Orders 7. Action to authorize the Mayor to sign an Architectural Contract with Cannon, Moss, Brygger Architects, for the Brookings City/County Administration Building. City Manager Introduction, Motion to Approve, Request Public Comment, Roll Call Ordinance First Readings** 8. Ordinance No. 17-10: an Ordinance Amending Section 58-165 of the Code of Ordinances of the City of Brookings, South Dakota and pertaining to Loud and Raucous Noise in the City of Brookings, South Dakota. Public Hearing – May 11th 9. Ordinance No. 18-10: an Ordinance pertaining to an Application for a Conditional Use for a Contractors Shop and Storage Yard in the Business B-3 District, Lot 10, Block 4, Folsom Addition, also known as 147 3rd Avenue South. Public Hearing – May 11th Second Readings/Public Hearings 10. Action to approve Resolution No. 48-10, a Resolution of Intent to Lease Real Property to Private Person for a farm lease with Joel C. Foster, for a period of Three (3) years and pertaining to the following described property, for the Northeast One-fourth (NE¼), except Lots One (1) and Two (2) and except Lots H-4, H-5 and the platted lots thereof, of Section Nineteen (19), Township One Hundred Ten (110) North, Range Forty-nine (49) West of the 5th P.M., County of Brookings, State of South Dakota. City Manager Introduction, Open & Close Public Hearing, Motion to Approve, Roll Call 11. Ordinance No. 16-10: an Ordinance Amending Section 62-34 of the Code of Ordinances of the City of Brookings, South Dakota and Pertaining to the Terms of Office for the Park and Recreation Board in the City of Brookings, South Dakota. City Manager Introduction, Open & Close Public Hearing, Motion to Approve, Roll Call 12. Public hearing and action on Resolution No. 49-10, a Resolution authorizing Vacation of an alley abutting Lots 3 through 14 of Block 1, Thornbers Addition (7th to 8th Street and 12th to 13th Avenue). City Manager Introduction, Open & Close Public Hearing, Motion to Approve, Roll Call 13. Public hearing and action on Resolution No. 50-10, Authorizing Meyer‟s Second Addition Road District, Brookings County, South Dakota City Manager Introduction, Open & Close Public Hearing, Motion to Approve, Roll Call Other Business 14. Action on Resolution No. 51-10, establishing the Fee for the issuance of Full-Service Restaurant On-Sale Licenses in the City of Brookings. City Manager Introduction, Motion to approve, Request Public Comment, Roll Call 15. Action on Resolution No. 52-10, adopting a Master Park Plan. City Manager Introduction, Motion to approve, Request Public Comment, Roll Call 16. Design update on the Railroad Crossing Project at Main Avenue. 17. Discussion and possible action to purchase Hangar Site A, at the Brookings Municipal Airport, from J.J. Jones, LLC.City Manager Introduction, Motion to Approve, Request Public Comment, Roll Call 18. Adjourn. City Council Packet April 27, 2010 13 CONSENT AGENDA #4 4. Action to approve the following Consent Agenda Items * A. Action to approve the agenda. B. Approval of minutes. C. Action on Resolution No. 44-10, awarding bids on 2010-06 STI Chip Seal Project. D. Action on Resolution No. 45-10, declaring surplus property. E. Action on Resolution No. 46-10, authorizing the Brookings Summer Arts Festival Committee exclusive use of Pioneer Park. F. Action on volunteer appointments to various city boards, committees and commissions. *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 Manager Recommendation: Approve City Council Packet April 27, 2010 14 CONSENT AGENDA #4 B. Approval of City Council Meeting minutes. The draft April 6th and April 15th Brookings City Council minutes are enclosed for Council review and approval. City Council Packet April 27, 2010 15 Brookings City Council April 6, 2010 (unapproved) The Brookings City Council held a meeting on Tuesday, April 6, 2010 at 5:00 p.m., at City Hall with the following members present: Mayor Tim Reed, Council Members Julie Whaley, John Kubal, Mike Bartley, Jael Thorpe, and Tom Bezdichek. Council Member Mike McClemans was absent. City Manager Jeff Weldon, City Attorney Steve Britzman, and Deputy City Clerk Bonnie Foster were also present. Joint Session of the City Council and City Commission to interview architect finalist. The architectural firm of Cannon Moss Brygger & Associates was present for a follow- up interview. No action was taken. 6:00 P.M. REGULAR MEETING. Consent Agenda. Resolution No. 38-10 was removed from the consent agenda for separate action. A motion was made by Bartley, seconded by Kubal, to approve the consent agenda as follows: A. Action to approve the agenda as amended. B. Approval of the March 23rd Council Meeting minutes. C. MOVED OFF OF CONSENT: Action on Resolution No. 38-10, awarding bids for 2010-03SSI, Village Square Drainage Improvement Project. D. Action to Abate the 2010 Drainage Fee in the amount of $962.29 for Parcel No. 40055-00100-000-00, the West 400’ of Block 1, of Bidco Addition for XTRA LLP. E. Action to Abate the 2010 Drainage Fee in the amount of $188.89 for Parcel No. 40490-00800-001-00, Lot 1, Eighth Railroad Addition for XTRA LLP. F. Action to Abate the 2010 Drainage Fee in the amount of $1,322.63 for Parcel No. 40196-00400-000-00, Block 4 and Lot 3 except the E 400’ of Block 5, Gilkersons Addition, otherwise known as 201Daktronics Dr. G. Action to Abate the 2010 Drainage Fee in the amount of $11,690.63 for Parcel No. 40597-00300-001-00, Lot 1A, Block 3, Telkamp Industrial Addition, (no address). H. Action to Abate the 2010 Drainage Fee in the amount of $740.80 for Parcel No. 40195-00500-002-00, Lot 2, Block 5, Gilkersons Addition, otherwise known as 201 32nd Avenue. I. Action on Resolution No. 39-10, a Resolution Amending the Brookings Transportation Board of the City of Brookings. Resolution No. 39-10 A Resolution Amending the Brookings Transportation Board for the City of Brookings Whereas, in order to identify opportunities for improved transportation efficiency as measured by increased levels of service or decreased cost, especially through coordination among transportation providers in Brookings, and further to provide oversight and evaluation of the success of coordinated transportation efforts, and to provide advice and information to other organizations on a regular or as needed-basis, the City of Brookings hereby creates a Brookings Transportation Board, City Council Packet April 27, 2010 16 Now Therefore Be It Resolved by the City Council of the City of Brookings, South Dakota, as follows: Brookings Transportation Board Section 1. Creation/Name. There is hereby created a transportation board for the City of Brookings. The transportation board will be referred to as the Brookings Transportation Board. Section 2. Purpose/Mandate. The purpose of the Brookings Transportation Board is to identify opportunities for improved efficiency as measured by increased levels of service or decreased cost, especially through coordination among transportation providers in Brookings. The Brookings Transportation Board shall provide oversight and evaluation of the success of coordinated transportation efforts as well as provide advice and information to other organizations on a regular or as needed-basis. Section 3. Manner of appointment, composition, terms. (a) Members of the Brookings Transportation Board shall be appointed by the Mayor, with the advice and consent of the City Council, for three-year terms that commence in January, except the SDSU Student Association position (and alternate) shall serve a one year term commencing in May. Members may be appointed for additional terms not exceeding three years each and one year for SDSU student position. The initial terms of office shall be staggered in 1, 2 and 3 year increments. (b) The Brookings Transportation Board shall consist of thirteen (13) members, who shall be appointed with due regard to representation from the following areas: 1. City of Brookings 2. County of Brookings 3. Brookings Health Systems 4. Brookings Committee for People who have Disabilities 5. Brookings Public School System 6. East Central Mental Health 7. Downtown Brookings Inc. 8. South Dakota State University Administration 9. South Dakota State University Student Association (and appointed alternate) 10. South Dakota Department of Vocational Rehabilitation 11. ADVANCE 12. Senior Activity Center 13. Citizen-At-Large (c) Ex-officio, non-voting members shall be appointed to serve on the Brookings Transportation Board from the following areas: City (City Engineer, ADA Coordinator), all transportation service providers. City Council Packet April 27, 2010 17 Section 4. Qualifications of members. The members of the Brookings Transportation Board shall not hold any elective office in city government. Section 5. Vacancies. Any vacancy in the membership of the Brookings Transportation Board shall be filled for the unexpired term in the same manner as provided for appointment. Section 6. Meetings; chairman. The Brookings Transportation Board shall regularly hold meetings at such times and places as it shall determine. It shall select a chair from its members, and such other officers as it deems appropriate, to serve for a term of one year. Section 7. Quorum. A majority of the members of the Brookings Transportation Board shall constitute a quorum for the transaction of its business. Section 8. Duties; powers. The Brookings Transportation Board shall have the following powers and duties: (a) Advise the City Council, City Manager and staff concerning transportation matters with the city of Brookings and surrounding area. (b) Advise the City Council, City Manager and staff concerning the city‟s public transportation budgetary needs and uses; review policies and operations of public transit providers who receive public funds; and suggest changes to policies and operations of public transit providers to reflect needs of the community. (c) Facilitate coordination of public transit providers. J. Action on Resolution No. 42-10, a Resolution Amending the Visitor Promotions Committee of the City of Brookings. Resolution No. 42-10 A Resolution Amending the Visitor Promotions Committee of the City of Brookings. Be It Resolved by the City Council of the City of Brookings, South Dakota as follows: Sec. 1. Creation, purposes. The Visitor Promotions Committee (hereafter also referred to as the “VPC” or "Committee") is hereby created for the following purposes: (1) 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 the surrounding area. (2) The Visitor Promotions Committee shall also provide marketing counsel and advice to the Director of the Brookings Area Convention and Visitors Bureau (“CVB Director”) and the Brookings Area Chamber of Commerce Board of Directors. Sec. 2. Composition and manner of selection of members. The Committee shall consist of eleven (11) members: 5 at-large, 3 SDSU Student Association, 1 Chamber of Commerce, 1 Downtown Brookings, Inc., 1 Swiftel Center Advisory Committee. City Council Packet April 27, 2010 18 The members shall be appointed by the Mayor, with the advice and consent of the City Council. In making the initial appointments to the VPC, the Mayor shall consider as prospective members those members who are currently serving on the Chamber‟s Visitor Promotions Committee. The Mayor shall follow the City‟s standard appointment process through public advertising and an application. The Mayor shall also consider recommendations for members from the organizations referenced above. Sec. 3. Visitor Promotions Committee Communication, Reporting and Accountability. The VPC shall report to the City Manager and shall maintain close communication with the City Manager with respect to the implementation of its annual program, and shall report to the City Manager in such form and frequency as shall by mutually agreeable. The VPC is directly responsible for the VPC finances, and is accountable to the Brookings City Council for the performance of the VPC. Sec. 4. Subcommittees. The VPC may form subcommittees to advance its work. At a minimum, subcommittees must have at least three (3) members, exclusive of any ex-officio members of the VPC. A majority of the subcommittee members present shall constitute a quorum. Formal subcommittee recommendations must be approved by a simple majority vote of subcommittee members present. Subcommittee chairs or their designee will report regularly to the VPC about their meetings, deliberations, and recommendations. The VPC is responsible for providing oversight of all subcommittee work. Sec. 5. VPC Chairperson and Vice-Chairperson. The Chairperson and the Vice-Chairperson of the VPC shall be elected from among the VPC members to each serve a term of one year. The Chairperson shall cooperate with and maintain close communication with the CVB Director and Community Events Coordinator to accomplish the goals and objectives of the VPC. The VPC shall preside during meetings of the VPC. The Vice Chairperson will preside during meetings in the absence of the Chairperson. Sec. 6. Community Events Coordinator/Duties/Supervision. A Community Events Coordinator is now employed by the Chamber to perform substantial services for the Visitor Promotions Committee, including the following: (1) Planning in cooperation with the Director of the Brookings Area Convention/Visitors Bureau; and (2) Fostering engaged conversation of members of the VPC to reach solutions and goals, direct performance of VPC committee members and such other action as is in the best interest of the VPC. (3) The Community Events Coordinator shall also prepare a promotional and event development program designed to accomplish the goals set forth above and the overall mission of the VPC. The program shall include the details of the methods to be used to achieve visitor attraction, the financial resources needed and such other information as the VPC may deem appropriate. City Council Packet April 27, 2010 19 The Community Events Coordinator position is funded by the City of Brookings, through the 3rd B Sales Tax revenues (Resolution 83-04). The process of recruitment and selection of the Community Events Coordinator position shall hereafter include both the Chamber and the VPC or a subcommittee of the VPC. The VPC shall cooperate with and maintain close communication with staff assigned to assist the VPC. In particular, the VPC shall work closely with the Community Events Coordinator. Sec. 7. Convention Visitors Bureau Director Assistance. In performing the VPC activities pursuant to this agreement, it is anticipated that the Director of the Brookings Area Convention/Visitors Bureau (“CVB”) will also be instrumental in providing assistance to the VPC. The VPC shall cooperate with and work closely with the CVB Director in performing its work. Sec. 8. Terms - vacancies - residency of members. The members of the VPC shall serve without compensation for terms of three (3) years with a limit of two (2) full terms. With the exception of the Student Association members, of which shall be appointed for one year terms commencing in May. The Student Association Vice President will be one of the three positions on the committee. Vacancies on the Committee shall be appointed by the Mayor, with advice and consent of the City Council, following the appointment procedure provided above. Members may reside outside city limits. Sec. 9. Quorum --organization. A quorum shall consist of six (6) members. The VPC shall adopt, amend, or rescind such rules as shall be necessary for the conduct of its meetings. Sec. 10. Budget and funding. The VPC shall submit to the City its annual proposed budget that has been officially adopted by the VPC, for the implementation of the Visitor Promotions Committee program. The VPC budget shall be in such detail and format as specified by the City. Funding for the Visitor Promotions Committee activities shall be paid from the “3rd” B sales tax revenues after expenditures budgeted and set forth in the City Resolution 83-04 have been paid or reserved for payment in accordance with Resolution 83-04. The City agrees to pay one- twelfth of the annual amount each month to the VPC for the activities and services provided under this agreement. Sec. 11. Meetings of the Committee. The Committee shall hold at least ten (10) regular meetings each year, which shall at all times be open to the public, unless legal cause exists to close a meeting. All committee meeting agendas must be submitted to the City Clerk to comply with public notification requirements. City Council Packet April 27, 2010 20 Sec. 12. Removal for cause. The VPC shall follow the City‟s adopted Code of Ethics Administrative Process for Complaints about a Volunteer Committee, Commission or Board Member if a member is being considered for removal from the Committee. Sec. 13. Commencement, reporting. The Committee shall commence its proceedings following adoption of this Resolution. Sec. 14. Ex Officio Members. The Chamber Exec. Vice President, the CVB Director, the Downtown Brookings, Inc. Program Manager and the General Manager of the Swiftel Center shall serve as ex-officio members of the VPC. Ex-officio members shall not have any voting rights and are intended to provide resources as needed by the VPC. On the motion, all present voted yes; motion carried. Contract Award: Landfill Trench 4E. A motion was made by Whaley, seconded by Bezdichek, to award the contract for Landfill Trench 4E to the low bid of R.L. Larson Excavating, Inc. of St. Cloud, MN. No public comment was made. All present voted yes; motion carried. Bids were opened on March 30th with the following bids received: R.L. Larson Excavating, Inc. $1,130,000.00; Loiseau Construction, Inc. $1,152,661.00; Clausen Construction $1,236,632.61; Rounds Construction, Inc. $1,250,000.00; Lidel Construction, Inc. $1,254,834.70; RS Halstead Corp. $1,337,875.00; Mathiowetz Construction $1,339,806.04; Bates Construction Co. $1,345,000.00; Veit & Company, Inc. $1,541,673.00; Frattalone Companies $1,702,870.00 Resolution No. 38-10. A motion was made by Bezdichek, seconded by Kubal, to award the bid for 2010-03SSI, Village Square Drainage Improvement Project to the low bid of T&R Contracting, Inc. Sioux Falls, SD, for the bid of $74,074.65. All present voted yes; motion carried. Resolution No. 38-10 Resolution Awarding Bids for 2010-03SSI Village Square Drainage Improvement Project Whereas, the City of Brookings opened bids for 2010-03SSI Village Square Drainage Improvement Project on Tuesday, March 23, 2010 at 1:30 pm at Brookings City Hall; and Whereas, the City of Brookings has received the following bids for 2010-03SSI Village Square Drainage Improvement Project: T & R Contracting, Inc., Sioux Falls, SD $74,074.65 Brooks Construction Co., Inc., Sioux Falls, SD $81,854.00 Smith & Smith Construction Co., Inc., Tea, SD $82,879.00 Concrete Contractors, Inc., Brookings, SD $88,880.00 Carl V. Carlson Company, Tea, SD $92,757.92 Clark Drew Construction, Inc., Brookings, SD $93,477.00 City Council Packet April 27, 2010 21 Yungwirth Construction, Inc., SD $127,500.31 Now Therefore, Be It Resolved that the low bid of T & R Contracting, Inc., Sioux Falls, SD, for the bid of $74,074.65 be accepted. First Reading – Ordinance No. 16-10. A first reading was held on Ordinance No. 16-10, an Ordinance amending Section 62-34 of the Code of Ordinances of the city of Brookings, SD and pertaining to the Terms of Office for the Park and Recreation Board in the City of Brookings, South Dakota. Public Hearing: April 27, 2010. Ordinance No. 14-10. A public hearing was held on Ordinance No. 14-10, an Ordinance pertaining to an Application for a Conditional Use for a Private Stable in the Residence R-1A District for Lot 18, Block 1, Nelson Second Addition, address 1623 Medary Avenue South. No public comment was made. A motion was made by Bezdichek, seconded by Kubal, to approve Ordinance No. 14-10 with the condition it is limited to one horse and restricted to the current owner of the property, Cliff Kurtz. All present voted yes; motion carried. Ordinance No. 15-10. A public hearing was held on Ordinance No. 15-10, an Ordinance amending the Zoning Ordinance of the City of Brookings and pertaining to Location of Parking Spaces for the purposes of Administration of the Zoning Ordinance. No public comment was made. A motion was made by Whaley, seconded by Bezdichek, to approve Ordinance No. 15- 10. All present voted yes; motion carried. Move Garage. A public hearing was held on a moving permit request from the Episcopal Church to move a garage onto the South 90‟, Lots 1 and 2, Block 1, Skinner‟s Second Addition, also known as 519 8th Avenue. No public comment was made. A motion was made by Bartley, seconded by Thorpe, to approve. All present voted yes; motion carried. On/Off Malt License. A public hearing was held on an On/Off Malt License for Taste of Europe, Dennis Bielfeldt, owner, 1300 Main Avenue South (Legal: Block 4, Fishback Second Addition.). No public comment was made. A motion was made by Whaley, seconded by Bartley, to approve. All present voted yes; motion carried. Resolution No. 40-10 - Wine Operating Agreement. A motion was made by Barltey, seconded by Kubal, to approve Resolution No. 40-10, authorizing the City Manager to sign an Operating Agreement with Taste of Europe, Dennis Bielfeldt, owner, 1300 Main Avenue South for an On/Off Wine License. All present voted yes; motion carried. Resolution No. 40-10 Taste of Europe 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 Taste of Europe 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 1300 Main Avenue South. City Council Packet April 27, 2010 22 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. Joint Cooperative Agreement – County/City Administrative Office Building. A motion was made by Kubal, seconded by Bartley, to approve a Joint Cooperative Agreement for a County/City Administrative Office Building. No public comment was made. All present voted yes; motion carried. JOINT COOPERATIVE AGREEMENT FOR COUNTY/CITY ADMINISTRATIVE OFFICE BUILDING Agreement made April 6, 2010, between Brookings County, SD, a South Dakota County (the “County”) and the City of Brookings, South Dakota a municipality under South Dakota law (the “City”). WHEREAS, County and City are in need of additional space for administrative offices; and WHEREAS, the parties believe that combining their offices in a single building will enhance the ability of both to serve the public; and WHEREAS, pursuant to the formal approval by the County on April 13, 2010 and the formal approval by the City on April 6, 2010, the officers of the respective entities are authorized to enter into this agreement: NOW THEREFORE, the parties agree as follows: Section One Statutory Authority This agreement is made pursuant to the authority granted by SDCL § 1-24-1 to 1-24-23, inclusive and 6-3-2. Section Two Purpose of the Agreement and Use of the Building This agreement is intended to specify terms and conditions under which County and City will purchase land together and construct, equip and maintain an administrative building for the joint and common use of the County and City to house the County‟s Offices and the City‟s Administrative Offices. Further, it is the intent of both Parties that this Agreement may be amended and supplemented prior to the beginning of, or during the construction period. Section Three Acquisition of Property County and City are negotiating the purchase of the properties as set forth in Exhibit “A” attached hereto and by this reference incorporated herein. County and City shall each be obligated to pay one-half of the costs of such property acquisition, including purchase prices, closing costs and demolition costs. Upon closing all of such properties shall be titled in the names of County and City jointly. City Council Packet April 27, 2010 23 Section Four Building Name and Use The name of the building shall be the BROOKINGS GOVERNMENT CENTER. The building shall be used to house the administrative functions of the County and City and for such other purposes as the County and City deem appropriate. Section Five Estimated Cost and Financing The estimated cost of the joint building is not to exceed 12 Million Dollars which shall be born by each party as stated herein. It is anticipated that County has sufficient funds set aside to purchase said properties and pay for its share of the construction of the building by appropriation. It is anticipated that City will issue sales tax bonds and appropriate the bond proceeds to pay its share of the purchase of said properties and the construction of the building. Section Six Allocation of Construction Costs A) Each party shall pay for the general cost of constructing the joint administrative building an allocated share based upon their respective square footage of separate office area as it relates to the combined square footage of both separate office areas. The general cost of constructing the joint administrative building for the purposes of such payment allocation shall include the following: 1. All costs of architects, engineers and construction manager; 2. Site preparation and footings; 3. All exterior walls, windows and doors; 4. The roof and floor structure; 5. All heating and air conditioning systems; 6. All load-bearing walls; 7. Utility service (electrical, plumbing, telephone, security systems, and related wiring and lighting), excluding utility work in the separate areas of each party; and 8. All costs relating to common areas, including hallways, bathrooms, commission/council chambers and other combined meeting rooms. 9. Parking lots, exterior lighting, signage and landscaping. B) Each party shall pay in full the costs of construction regarding each party‟s separate office area, including: 1. All utility service serving only each separate area; 2. All non-load bearing walls and similar dividers; 3. All finish work, trim, painting, carpeting, lighting and ceilings; and 4. All equipment. C) Each party shall timely pay its respective share of the construction costs as they become due under the construction contracts. Section Seven Design Approval City Council Packet April 27, 2010 24 The Joint Committee shall work with the architect to develop plans for the building layout, exterior, common areas, landscaping and parking lots. Such plans shall be submitted for approval to the County Commission and the City Council upon completion of the schematic design phase and upon completion of the design development phase. The County Commission shall have the sole and final approval of the design and interior finishing of the County‟s separate area and the City Council shall have the sole and final approval of the design and interior finishing of the City‟s separate area. Section Eight Furniture, Fixtures and Equipment The City and County will each pay for their own furniture, fixtures and equipment necessary for their operations in the Center. Each Party shall pay for furniture, fixtures and equipment necessary for the joint areas and the general operation of the building based upon the same allocation as for construction costs under Section Six (A) above. Section Nine Insurance Liability insurance shall be procured jointly, if necessary, by the County and the City to protect said governmental units from any and all claims for bodily injury, including death and property damage arising out of the use or operation of the facility. In addition, fire and extended coverage insurance in an amount not less than the cost of construction, shall be obtained by the County and the City, which will insure the owners of the building in case of fire, catastrophe, or other damage to the building, fixtures, and/or equipment contained in the facility. Each Party shall pay for the cost of such insurance based upon the same allocation as for construction costs under Section Six (A) above. Each Party shall pay for any insurance on its separately owned furniture, fixtures and equipment. Section Ten Portion and Method of Allocating Expenses of Operation and Maintenance Each party shall pay for all costs of maintenance, repairs, utility and capital replacement for its separate areas. The costs of maintenance, repairs, utilities and capital replacement of the building exterior, roof, heating and air conditioning systems, grounds, parking lot and common areas shall be allocated between the Parties based upon the same allocation as for the construction costs under Section Six (A) above. Section Eleven Management of Common Areas The City Manager shall be responsible for the management and scheduling of jointly used areas of the building. The County Commission and the City Council shall always have priority as to the use of the Commission/Council Chambers. Any fees generated by the use of the common areas of the building shall be applied to the costs of maintenance and upkeep of such common areas. Section Twelve Personnel City Council Packet April 27, 2010 25 The City shall control the personnel and operations of its offices and the County shall control the personnel and operations of its offices; except as specifically agreed to within the terms of this Agreement or any other agreement between the Parties. Section Thirteen Building/Advisory Committee A building advisory committee, consisting of four (4) members, two (2) from the County and two (2) from the City, shall meet periodically as necessary for the purpose of discussing problems or difficulties during the planning, design and construction of the building; and the continued operation of the building and grounds. The City Manager and the County Commission Assistant shall be non-voting members of such committee. Such committee shall have general authority concerning the planning, design and construction of the building and the continued operation of the building, provided, however, that the following matters are subject to approval by both the County Commission and the City Council: Hiring architects and engineers; Approval of final design and plans; Bidding all contracts; All bonds and financing; and Annual operation budget. Section Fourteen Disposition of Revenue Derived from Building In the event that there exists any revenues derived from the operations of the building, the County and City shall retain such revenues as are attributable to the space under its control. Section Fifteen Termination This agreement shall continue until otherwise terminated by the parties by mutual agreement. Section Sixteen Partial Invalidity In any one or more of the provisions of this Agreement, or of any exhibit or attachment thereto, shall be held invalid, illegal, or unenforceable in any respect, by final decree of any court of lawful jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other provision hereof, or of any exhibit or attachment thereto, but the Bond Resolution, and the exhibits and attachments thereto, shall be construed the same as if such invalid, illegal, or unenforceable provision had never been contained herein, or therein, as the case may be. Section Seventeen Agreement Open to Public Inspection This agreement shall be filed and copies hereof kept as an open record with the County Finance Officer and City Clerk and shall be open to public inspection. Section Eighteen Amendments City Council Packet April 27, 2010 26 This agreement may be amended and supplemented from time to time by the action of the governing bodies of the County and City. All amendments or supplements shall be filed in accordance with Section Seventeen. IN WITNESS WHEREOF, the parties have executed this agreement the day and year first above written. Tim Reed, Mayor Dennis Falken, Chair, Brookings County Board of Commissioners ATTEST: ATTEST: _____________________________ Shari Thornes, City Clerk Vicki Buseth, County Finance Officer Resolution No. 41-10. A motion was made by Bartley, seconded by Whaley, to approve Resolution No. 41-10, authorizing the execution, terms, issuance, sale, and payment of Sales Tax Revenue Bonds in the aggregate principal amount of not to exceed seven million dollars ($7,000,000.00) of the City of Brookings of Brookings County, South Dakota. No public comment was made. All present voted yes; motion carried. Resolution No. 41-10 Resolution Authorizing the Execution, Terms, Issuance, Sale and Payment of Sales Tax Revenue Bonds in the Aggregate Principal Amount of not to exceed Seven Million Dollars ($7,000,000), of the City of Brookings of Brookings County, SD. Whereas, the City of Brookings (the “City”) and Brookings County (the “County”) are intending to construct an Intergovernmental Administration Building to facilitate the efficient use of governmental services; and Whereas, the City and County intent to enter into an agreement for the joint use and operation of the Intergovernmental Building; and Whereas, each governmental entity must provide funds for the construction thereof; and Whereas, the City of Brookings is authorized by the provisions of SDCL §§10-52-2.10 to issue Sales Tax Revenue Bonds to fund capital improvements and land acquisition pursuant to the provisions of Chapter 16 of the Revised Ordinances of Brookings, South Dakota; and Whereas, the City Council has determined and does hereby declare that is necessary and in the best interest of the City to issue Sales Tax Revenue Bonds for the purpose of providing funds by appropriation to (i) acquire real property; (ii) construction of new Intergovernmental Administration Building; and (iii) pay the Costs of Issuance of the Bonds described herein. Now Therefore, Be It Resolved by the City Council of the City of Brookings of Brookings County, as follows: City Council Packet April 27, 2010 27 ARTICLE I DEFINITIONS Section 1.1. Definition of Terms. In addition to the words and terms elsewhere defined in this Bond Resolution, the following words and terms as used herein, whether or not the words have initial capitals, shall have the following meanings, unless the context or use indicates another or different meaning or intent, and such definitions shall be equally applicable to both the singular and plural forms of any of the words and terms herein defined: "Act" means collectively SDCL Chapter 6-8B and Chapter 10-52, as amended. "Authorized Officer of the City" means the Mayor and the Finance Officer, or, in the case of any act to be performed or duty to be discharged, any other member, officer, or employee of the City then authorized to perform such act or discharge such duty. "Bond Counsel" means Meierhenry Sargent LLP, a firm of attorneys recognized as having experience in matters relating to the issuance of state or local governmental obligations. "Book-Entry Form" or "Book-Entry System" means a form or system, as applicable, under which physical certificates in fully registered form are issued to a Depository or to its nominee as Registered Owner, with the certificated certificates being held by and "immobilized" in the custody of such Depository, and under which records maintained by persons, other than the City or the Registration Agent, constitute the written record that identifies, and records the transfer of the beneficial "book-entry" interests in those Bonds. "Bond Insurer" means a municipal bond insurance company which has the highest rating for the rating agencies. "Bond Payment Date" means each June 1 and December 1 in the years 2011 through 2030. "Bond Purchase Agreement" means the agreement between the City and the Underwriter for the purchase of the Bonds. "Bond Resolution" means the within Resolution, duly adopted by the City Council on the date hereof, as it may be amended from time to time. "Bondholder", "Holder" and "Registered Owner" means the registered owner of a Bond, including any nominee of a Depository. "Bonds" mean not to exceed $7,000,000 of Sales Tax Revenue Bonds, Series 2010A, dated the Closing Date, or such other designation or date as shall be determined by the City Council pursuant to Section 8.1 hereof, authorized and issued under the Bond Resolution. "City" means the City of Brookings, Brookings County, South Dakota, a home rule form of municipality organized under the State of South Dakota. City Council Packet April 27, 2010 28 "City Council" means the City Council of the City elected pursuant to the provisions of the SDCL Title 9. "City Finance Officer" means the City Finance Officer of the City appointed pursuant to the provisions of South Dakota Codified Laws Title 9 or, in the absence of such appointment or in the event the person so appointed is unable or incapable of acting in such capacity, the person appointed by the City Council to perform the duties otherwise performed by the City Finance Officer, or his/her designee. "Closing Date" means the date the Bonds are exchanged for value. "Code" means the Internal Revenue Code of 1986, as amended, and the applicable regulations of the United States Department of Treasury promulgated thereunder as in effect on the date of issuance of the Bonds. "Costs of Issuance" means all costs, fees, charges and expenses incurred in connection with the issuance of the Bonds, including costs for bond insurance and rating agency fees. "Debt" means (1) indebtedness of the City for borrowed money or for the deferred purchase price of property or services, and expressly including the obligation to pay principal and interest on or with respect to revenue bonds, (2) the obligation of the City as lessee under leases which should be recorded as capital leases under generally accepted accounting principles, and (3) obligations of the City under direct or indirect guarantees in respect of, and obligations, contingent or otherwise, to purchase or otherwise acquire, or otherwise to assure a creditor against loss in respect of, indebtedness or obligations of others of the kinds referred to in subdivisions (1) and (2) above. "Depository" means any securities depository that is a clearing agency under federal laws operating and maintaining, with its participants or otherwise, a Book-Entry System, including, but not limited to DTC. "DTC Participant(s)" means securities brokers and dealers, banks, trust companies and clearing corporations that have access to the DTC system. "DTC" means the Depository Trust Company, a limited purpose company organized under the laws of the State of New York, and its successors and assigns. "Improvements" means the acquisition of real property and construction of Intergovernmental Administration Building. "Interest Payment Dates" means each June 1 and December 1, commencing June 1, 2011. “Intergovernmental Administration Building” means the joint County and City Building built "Letter of Representation" means the Issuer Letter of Representations or Blanket Issuer Letter of Representations to DTC of the City. City Council Packet April 27, 2010 29 "Mayor" means the Mayor elected pursuant to the provisions of SDCL § 9-8-1 or his or her designee acting on his or her behalf pursuant to the Charter. “Minimum Reserve” means the lesser of (i) 10% of the original principal amount of, (ii) the maximum annual debt service on or, (iii) 125% of the average annual debt service on, all Outstanding Bonds having a parity lien on the Pledged Revenues. "Official Statement" and "Preliminary Official Statement" means that Official Statement and Preliminary Official Statement described in Section 8.2 hereof pertaining to the sale of the Bonds. "Original Issue Discount or O.I.D." means the difference between the issue price and the stated redemption price at maturity. The stated redemption price is determined without regard to optional call dates. "Original Issue Premium or O.I.P." means the difference between the issue price and the stated redemption price at maturity. The stated redemption price is determined without regard to optional call dates. "Outstanding", "Bonds Outstanding", or "Outstanding Bonds" means, as of a particular date all Bonds issued and delivered under this Bond Resolution except: (1) any Bonds paid or redeemed or otherwise canceled by the City at or before such date; (2) any Bond for the payment of which cash, equal to the principal amount thereof with interest to date of maturity, shall have theretofore been deposited prior to maturity by the City for the benefit of the Owner thereof; (3) any Bond for the redemption of which cash, equal to the redemption price thereof with interest to the redemption date, shall have theretofore been deposited with the Registration Agent and for which notice of redemption shall have been mailed in accordance with this Bond Resolution; (4) any Bond in lieu of or in substitution for which another Bond shall have been delivered pursuant to this Resolution, unless proof satisfactory to the City is presented that any Bond, for which a Bond in lieu of or in substitution therefor shall have been delivered, is held by a bona fide Underwriter, as that term is defined in Article 8 of the Uniform Commercial Code of the State, as amended, in which case both the Bond in lieu of or in substitution for which a new Bond has been delivered and such new Bond so delivered therefor shall be deemed Outstanding; and, (5) any Bond deemed paid under the provisions of Article VII of this Resolution, except that any such Bond shall be considered Outstanding until the maturity or redemption date thereof only for the purposes of being exchanged, transferred, or registered. "Person" means an individual, partnership, corporation, trust, or unincorporated organization, or a governmental entity or agency or political subdivision thereof. “Pledged Revenues” means the Sales Tax. "President" means the President of the City Council who may act for the Mayor in the absence of the Mayor. City Council Packet April 27, 2010 30 "Purchase Agreement" means the Bond Purchase Agreement authorized pursuant to and described in Section 8.1 hereof by and between the City and the Underwriter. "Rating Agency" means one or more of the following rating agencies: Standard & Poor's Credit Market Services, Moody's Investors Service Inc. and Fitch IBCA, Inc. "Record Date" means such dates set forth in the Bond Purchase Agreement. "Registration Agent" means Wells Fargo Bank, NA, Minneapolis, Minnesota, its successor or successors hereafter appointed in the manner provided in Article VI hereof. "Resolution" means this Bond Resolution. "Reasonably Require Reserve" means an amount, if required, which will comply with the Internal Revenue Regulations specifying the maximum amount in a reserve fund permitted to be invested without regard to investment yield. "Sales Tax" means the City two percent tax on the gross receipts of all persons engaged in business within the jurisdiction of the City who are subject to the South Dakota Retail Occupational Sales and Service Tax, SDCL ch. 10-45 and the two percent upon all transactions or use, storage and consumption which are subject to the South Dakota Use Tax Act, SDCL ch. 10-46 imposed by Chapter 78 of the City of Brookings Code. "Schedule" means the principal and interest payment schedule for the Bonds. “Surety” means a company licensed to do surety business in the State of South Dakota. "Underwriter" means Northland Securities, Inc. acting for and on behalf of itself and such securities dealers as it may designate. Section 1.2. References to Resolution. The words "hereof", "herein", "hereunder", and other words of similar import refer to this Bond Resolution as a whole. Section 1.3. References to Articles, Sections, Etc. References to Articles, Sections, and other subdivisions of this Bond Resolution are to the designated Articles, Sections, and other subdivisions of this Bond Resolution as originally adopted. Section 1.4. Headings. The headings of this Bond Resolution are for convenience only and shall not define or limit the provisions hereof. ARTICLE II FINDINGS Section 2.1 City Council Packet April 27, 2010 31 It is hereby found, declared a necessity and determined by the City Council that all limitations upon the issuance of Bonds have been met and the Bonds are being authorized, issued and sold in accordance with the provisions of the Act. ARTICLE III AUTHORITY, PLEDGE, LEVY AND ACCOUNTS Section 3.1 Authority. In order to fund the acquisition and construction of the Improvements there shall be issued pursuant to, and in accordance with, the provisions of the Act, the Bond Resolution, and other applicable provisions of law, Sales Tax Revenue Bonds of the City in the aggregate principal amount as finalized by the Bond Purchase Agreement. Section 3.2 Pledge of Sales Tax. The Sales Tax shall be and is hereby irrevocably pledged to the prompt and full payment of the principal, premium and interest on each and all of said Bonds as such principal, premium and interest respectively become due. Section 3.3. Collection of Taxes. Pursuant to SDCL § 10-52-2.10, the City does hereby pledge, provide and agree that it will continue to impose and collect the non-ad valorem tax so long as the Bonds are outstanding. The governing body shall also pledge so much of the collections of the taxes as may be necessary to pay the principal, premium and interest on the bonds and to maintain any debt service reserve established for the Bonds. Section 3.4. Accounts. (a) Special Revenue Fund. The Finance Officer has established and will maintain the Special Revenue Fund as a separate and special account in the financial records of the City until all Bonds issued and made payable therefrom, and interest due thereon, have been duly paid or discharged. All collections of the Sales Tax shall be credited, as received, to the Special Revenue Fund. Within the Special Revenue Fund are various separate accounts to be maintained by the City. (b) Construction Account. There is hereby created and established as an account of the Special Revenue Fund, a “Construction Account” There shall be credited to the Construction Account the proceeds from the sale of the Bonds remaining after (a) the deposit to the Reserve Account required by Section 3.05, and (b) payment of the (i) underwriter‟s discount, (ii) original issu e discount and (iii) any other expenses of issuing the Bonds. All moneys credited to the Construction Account shall be applied solely to the payment of the costs of the Improvements. For the purposes of this Resolution, “costs of the Improvements” shall include costs of acquiring, constructing, and installing the Improvements including costs of labor, services, materials and supplies, financial, architectural, engineering, legal, accounting and other professional expenses relating to the Improvements, the costs of acquisition or properties, rights, easements, or other interest in properties, insurance premiums, and the costs of publishing, posting or mailing notices in connection with the Improvements. All sums derived from the investment of moneys in the Construction Account shall remain in and become part of such fund. Upon completion of the Improvements and when all costs of the Improvements City Council Packet April 27, 2010 32 have been paid, any balance remaining in the Construction Account shall be credited to the Principal and Interest Account hereinafter established. (c) Principal and Interest Account. There is hereby created and established as an account of the Special Revenue Fund, a “Principal and Interest Account.” Immediately upon delivery of the Bonds, there shall be credited to the Principal and Interest Account the amount of accrued interest received from the Underwriter. Commencing on the date specified in the Bond Purchase Agreement, there shall be withdrawn from the Special Revenue Fund at least monthly and credited to the Principal and Interest Account an amount which will equal at least one-sixth (1/6th) of the interest becoming due on the next succeeding payment date and one-twelfth (1/12th) of the principal becoming due on the next succeeding payment dates with respect to the Outstanding Bonds. In all events there shall be credited to the Principal and Interest Account amounts sufficient to pay the principal of and interest on the Outstanding Bonds as the same become due. (d) Reserve Account. There is hereby created and established as an account of the Special Revenue Fund, a “Reserve Account.” There shall be credited to the Reserve Account from the proceeds of the Bonds, an amount equal to the Minimum Reserve. Thereafter, in the event that the amount on deposit in the Reserve Account shall thereafter fall below the Minimum Reserve, additional deposits shall be made from the Pledged Revenues to the Reserve Account until the Minimum Reserve is again reached. Upon the issuance of any parity lien bonds, the Minimum Reserve established in this section shall be increased to an amount equal to the combined maximum annual debt service on the Outstanding Bonds. The balance required shall be funded on the delivery date of the parity lien bonds. Moneys credited to the Reserve Account may be used only for the payment of principal of and interest on the Outstanding Bonds and shall be used only in the event that there are insufficient moneys in the Principal and Interest Account to meet such principal and interest payments promptly when due. The interest from any investment of the Reserve Account may be transferred from time to time to the Construction Account, provided that after completion of the Improvements such interest shall be transferred to the Principal and Interest Account. No transfer of investment income shall be made from the Reserve Account at any time when the balance therein is less than the Minimum Reserve. Such investments shall be subject to the limitations of South Dakota law. (e) Subordinate Lien Bonds. After making the above required payments, any remaining Pledged Revenues may be used for the payment of the principal of and interest on any additional sales tax revenue bonds having a lien which is subordinate to the lien of the Outstanding Bonds, and for a reserve fund as additional security for the payment of such subordinate lien bonds. (f) Other Expenditures. The remaining Pledged Revenues may be used for any legally authorized purpose. ARTICLE IV FORM, TERMS, EXECUTION, AND TRANSFER OF BONDS Section 4.1. Authorized Bonds. The aggregate principal amount of Bonds that may be issued under the Bond Resolution shall not exceed Seven Million and No/100 Dollars ($7,000,000). City Council Packet April 27, 2010 33 Section 4.2. Form of Bonds; Execution. (a) The Bonds are issuable only as fully registered Bonds, without coupons, in any denomination. All Bonds issued under the Resolution shall be substantially in the form set forth in Exhibit A attached hereto, and by this reference incorporated herein as fully as though copied. (b) The Bonds shall be executed in such manner as may be prescribed by applicable law in the name and on behalf of the City with the manual or facsimile signature of the Mayor, attested by the manual or facsimile signature of the City Finance Officer, and approved as to form and countersigned by a Resident Attorney by his manual or facsimile signature. (c) In the event any officer whose manual or facsimile signature shall appear on any Bonds shall cease to be such officer before the delivery of such Bonds, such manual or such facsimile signature shall nevertheless be valid and sufficient for all purposes as if he or she had remained in office until such delivery. Any Bonds may bear the facsimile signature of, or may be manually signed by, such individuals who, at the actual time of the execution of such Bonds, were the proper officers of the City to sign such Bonds, although on the date of the adoption by the City of this Resolution, such individuals may not have been such officers. (d) In the event that the Bonds are issued as Build America Bonds under Section 54AA of the Code or Recovery Zone Economic Development Bonds under Section 1400U of the Code, then the form of the Bonds shall comply with the requirements thereof. Section 4.3 Maturities, Interest Rates, and Certain Other Provisions of Bonds. (a) The Bonds shall become due and payable and be subject to the terms and conditions as are set forth in the Bond Purchase Agreement. (b) The Bonds shall be designated "Sales Tax Revenue Bonds, Series 2010A," or such other designation as shall be determined by the City Council pursuant to Section 8.1 hereof. The Bonds shall bear interest from their date or from the most recent interest payment date to which interest has been paid or duly provided for, until the principal amount of the Bonds is paid, such interest (computed upon the basis of a 360-day year of twelve 30-day months) being payable on Interest Payment Dates. Interest on each Bond shall be paid by wire transfer, check or draft of the Paying Agent, payable in lawful money of the United States of America, to the person in whose name such Bond is registered at the close of business on the Record Date. The principal of the Bond shall be payable in lawful money of the United States of America at the principal office of the Paying Agent on the Bond Payment Date. Each Bond shall state that it is issued pursuant to the Act. (c) The Registration Agent shall make all interest payments with respect to the Bonds on each interest payment date directly to the registered owners as shown on the bond registration records maintained by the Registration Agent as of the close of business on the Record Date by wire transfer, check or draft mailed to such owners at their addresses shown on said bond registration records, without, except for final payment, the presentation or surrender of such registered Bonds, and all such payments shall discharge the obligations of the City in respect of such Bonds to the extent of the payments so made. Payment of principal and premium, if any, City Council Packet April 27, 2010 34 on the Bonds shall be made upon presentation and surrender of such Bonds to the Registration Agent as the same shall become due and payable. Section 4.4 Negotiability of Bonds. All Bonds issued under this Resolution shall be negotiable, subject to the provisions for registration and transfer contained in this Resolution and in the Bonds. Section 4.5 Registration, Transfer and Exchange of Bonds. (a) The Bonds are transferable only by presentation to the Registration Agent by the registered owner, or his legal representative duly authorized in writing, of the registered bond(s) to be transferred with the form of assignment on the reverse side thereof completed in full and signed with the name of the registered owner as it appears upon the face of the bond(s) accompanied by appropriate documentation necessary to prove the legal capacity of any legal representative of the registered owner. Upon receipt of the bond(s) in such form and with such documentation, if any, the Registration Agent shall issue a new bond or bonds to the assignee(s) in $5,000 denominations, or integral multiples thereof, as requested by the registered owner requesting transfer. The Registration Agent shall not be required to transfer or exchange any bond during the period commencing on a Record Date and ending on the corresponding interest payment date of such bond, nor to transfer or exchange any bond after the publication of notice calling such bond for redemption has been made, nor to transfer or exchange any bond during the period following the receipt of instructions from the City to call such bond for redemption; provided, the Registration Agent, at its option, may make transfers after any of said dates. No charge shall be made to any registered owner for the privilege of transferring any Bonds, provided that any transfer tax relating to such transaction shall be paid by the registered owner requesting transfer. The person in whose name any bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes and neither the City nor the Registration Agent shall be affected by any notice to the contrary whether or not any payments due on the Bonds shall be overdue. Bonds, upon surrender to the Registration Agent, may, at the option of the registered owner, be exchanged for an equal aggregate principal amount of Bonds of the same maturity in any authorized denomination or denominations. (b) Except as otherwise provided in this subsection or in the Bond Purchase Agreement, the Bonds shall be registered in the name of Cede & Co., as nominee of DTC, which will act as securities depository for the bond. References in this Section to a Bond or the Bonds shall be construed to mean the Bond or the Bonds that are held under the Book-Entry System. One Bond for each maturity shall be issued to DTC and immobilized in its custody. Unless otherwise provided herein, a Book-Entry System shall be employed, evidencing ownership of the Bonds in authorized denominations, with transfers of beneficial ownership affected on the records of DTC and the DTC Participants pursuant to rules and procedures established by DTC. Each DTC Participant shall be credited in the records of DTC with the amount of such DTC Participant‟s interest in the Bonds. Beneficial ownership interests in the Bonds may be purchased by or through DTC Participants. The holders of these beneficial ownership interests are herein referred to as the "Beneficial Owners." The Beneficial Owners shall not receive the Bonds representing their beneficial ownership interests. The ownership interests of each Beneficial Owner shall be recorded through the records of the DTC Participant from which City Council Packet April 27, 2010 35 such Beneficial Owner purchased its Bonds. Transfers of ownership interests in the Bonds shall be accomplished by book entries made by DTC and, in turn, by DTC Participants acting on behalf of Beneficial Owners. SO LONG AS CEDE & CO., AS NOMINEE FOR DTC, IS THE REGISTERED OWNER OF THE BONDS THE REGISTRATION AGENT SHALL TREAT CEDE & CO., AS THE ONLY HOLDER OF THE BONDS FOR ALL PURPOSES UNDER THIS RESOLUTION, INCLUDING RECEIPT OF ALL PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON THE BONDS, RECEIPT OF NOTICES, VOTING AND REQUESTING OR DIRECTING THE REGISTRATION AGENT TO TAKE OR NOT TO TAKE, OR CONSENTING TO, CERTAIN ACTIONS UNDER THIS BOND RESOLUTION. Payments of principal, interest, and redemption premium, if any, with respect to the Bonds, so long as DTC is the only owner of the Bonds, shall be paid by the Registration Agent directly to DTC or its nominee, Cede & Co., as provided in the Letter of Representation. DTC shall remit such payments to DTC Participants, and such payments thereafter shall be paid by DTC Participants to the Beneficial Owners. Neither the City nor the Registration Agent shall be responsible or liable for payment by DTC or DTC Participants, for sending transaction statements or for maintaining, supervising or reviewing records maintained by DTC or DTC Participants. In the event that (1) DTC determines not to continue to act as securities depository for the Bonds or (2) the City determines that the continuation of the Book-Entry System of evidence and transfer of ownership of the Bonds would adversely affect their interests or the interests of the Beneficial Owners of the Bonds, the City may discontinue the Book-Entry System with DTC. If the City fails to identify another qualified securities depository to replace DTC, the City shall cause the Registration Agent to authenticate and deliver replacement Bonds in the form of fully registered Bonds to each Beneficial Owner. NEITHER THE CITY NOR THE REGISTRATION AGENT SHALL HAVE ANY RESPONSIBILITY OR OBLIGATIONS TO ANY DTC PARTICIPANT OR ANY BENEFICIAL OWNER WITH RESPECT TO (i) THE BONDS; (ii) THE ACCURACY OF ANY RECORDS MAINTAINED BY DTC OR ANY DTC PARTICIPANT; (iii) THE PAYMENT BY DTC O R ANY DTC PARTICIPANT OF ANY AMOUNT DUE TO ANY BENEFICIAL OWNER IN RESPECT OF THE PRINCIPAL OF AND INTEREST ON THE BONDS; (iv) THE DELIVERY OR TIMELINESS OF DELIVERY BY DTC OR ANY DTC PARTICIPANT OF ANY NOTICE DUE TO ANY BENEFICIAL OWNER THAT IS REQUIRED OR PERMITTED UNDER THE TERMS OF THIS BOND RESOLUTION TO BE GIVEN TO BENEFICIAL OWNERS, (v) THE SELECTION OF BENEFICIAL OWNERS TO RECEIVE PAYMENTS IN THE EVENT OF ANY PARTIAL REDEMPTION OF THE BONDS; OR (vi) ANY CONSENT GIVEN OR OTHER ACTION TAKEN BY DTC, OR ITS NOMINEE, CEDE & CO., AS OWNER. SO LONG AS A BOOK-ENTRY SYSTEM OF EVIDENCE OF TRANSFER OF OWNERSHIP OF ALL THE BONDS IS MAINTAINED IN ACCORDANCE HEREWITH, THE PROVISIONS OF THIS RESOLUTION RELATING TO THE DELIVERY OF PHYSICAL BONDS SHALL BE DEEMED INAPPLICABLE OR BE OTHERWISE SO CONSTRUED AS TO GIVE FULL EFFECT TO SUCH BOOK-ENTRY SYSTEM. IF THE PROVISIONS OF THE LETTER OF REPRESENTATION SHALL BE IN CONFLICT WITH THE PROVISIONS OF THIS City Council Packet April 27, 2010 36 RESOLUTION AS SAID PROVISIONS RELATE TO DTC, THE PROVISIONS OF THE LETTER OF REPRESENTATION SHALL CONTROL. Section 4.6 Mutilated, Lost, Stolen, or Destroyed Bonds. (a) In the event any bond is mutilated, lost, stolen, or destroyed, the City may execute, and upon the request of an Authorized Officer of the City the Registration Agent shall authenticate and deliver, a new bond of like maturity, interest rate, and principal amount, and bearing the same number (but with appropriate designation indicating that such new bond is a replacement bond) as the mutilated, destroyed, lost, or stolen bond, in exchange for the mutilated bond or in substitution for the bond so destroyed, lost, or stolen. In every case of exchange or substitution, the bondholder shall furnish to the City and the Registration Agent: (1) such security or indemnity as may be required by them to save each of them harmless from all risks, however remote; and, (2) evidence to their satisfaction of the mutilation, destruction, loss, or theft of the subject bond and the ownership thereof. Upon the issuance of any bond upon such exchange or substitution, the City and the Registration Agent may require the Owner thereof to pay a sum sufficient to defray any tax or other governmental charge that may be imposed in relation thereto and any other expenses, including printing costs and counsel fees, of the City and the Registration Agent. In the event any bond which has matured or is about to mature shall become mutilated or be destroyed, lost, or stolen, the City may, instead of issuing a bond in exchange or substitution therefor, pay or authorize the payment of the same (without surrender thereof except in the case of a mutilated bond) if the Owner thereof shall pay all costs and expenses, including attorneys fees, incurred by the City and the Registration Agent in connection herewith, as well as a sum sufficient to defray any tax or other governmental charge that may be imposed in relation thereto and shall furnish to the City and the Registration Agent such security or indemnity as they may require to save them harmless and evidence to the satisfaction of the City and the Registration Agent the mutilation, destruction, loss, or theft of such bond and of the ownership thereof. (b) Every bond issued pursuant to the provisions of this section shall constitute an additional contractual obligation of the City (whether or not the destroyed, lost, or stolen bond shall be found at any time to be enforceable) and shall be entitled to all the benefits of this Bond Resolution equally and proportionately with any and all other Bonds duly issued under this Bond Resolution. (c) All Bonds shall be held and owned upon the express condition that the provisions of this Section are exclusive, with respect to the replacement or payment of mutilated, destroyed, lost, or stolen Bonds, and, to the maximum extent legally permissible, shall preclude all other rights or remedies, notwithstanding any law or statute now existing or hereafter enacted to the contrary. Section 4.7 Authentication. The Registration Agent is hereby authorized to authenticate and deliver the Bonds to the Underwriter or as it may designate upon receipt by the City of the proceeds of the sale thereof, to authenticate and deliver Bonds in exchange for Bonds of the same principal amount delivered for transfer upon receipt of the bond(s) to be transferred in proper form with proper documentation as hereinabove described. The Bonds shall not be valid for any purpose unless City Council Packet April 27, 2010 37 authenticated by the Registration Agent by the manual signature of an officer thereof on the certificate set forth herein on the bond form. Section 4.8 Qualification for DTC. The Registration Agent is hereby authorized to take such actions as may be necessary from time to time to qualify and maintain the Bonds for deposit with DTC, including but not limited to, wire transfers of interest and principal payments with respect to the Bonds, utilization of electronic book entry data received from DTC in place of actual delivery of Bonds and provision of notices with respect to Bonds registered by the DTC (or any of its designees identified to the Registration Agent) by overnight delivery, courier service, telegram, telecopy or other similar means of communication. No such arrangements with DTC may adversely affect the interest of any of the Owners of the Bonds, provided, however, that the Registration Agent shall not be liable with respect to any such arrangements it may make pursuant to this section. Section 4.9. Bond Insurer or Surety. The Mayor and Finance Officer are authorized to enter into an agreement with a Bond Insurer or Surety as may be required under the Purchase Agreement. Any terms or conditions of the Bond Insurer or Surety shall be attached to this resolution and incorporated herein as if stated in full. Section 4.10. Rating Agency. The Mayor and Finance Officer are authorized to enter into an agreement with a Rating Agency as may be required under the Purchase Agreement. Any terms or conditions of the Rating Agency shall be attached to this resolution and incorporated herein as if stated in full. Section 4.11. Taxable Bonds. All or any portion of the Bonds may, subject to the parameters set forth above, be issued as Build America Bonds or Recovery Zone Economic Development Bonds and in connection therewith, each of Authorized Officer of the City is authorized to make, for and on behalf of and as the act of the City, any and all designations or irrevocable elections, to execute and deliver any agreements, Bonds or other instruments to or with the federal government or any agency thereof or the State of South Dakota or any agency thereof, and to take any other actions necessary for the Bonds, the holders of the Bonds and the City to receive any benefits, funds or federal subsidies available under Code. ARTICLE V REDEMPTION OF BONDS PRIOR TO MATURITY Section 5.1 Redemption. (a) Redemption. The Bonds shall be redeemable as set forth in the Bond Purchase Agreement. ARTICLE VI REGISTRATION AGENT Section 6.1. Appointment and Acceptance of Duties. (a) The City hereby authorizes the City Finance Officer to appoint the Registration Agent with respect to the Bonds and authorizes and directs the Registration Agent to maintain bond City Council Packet April 27, 2010 38 registration records with respect to the Bonds, to authenticate and deliver the Bonds as provided herein, either at original issuance, upon transfer, or as otherwise directed by the City, to effect transfers of the Bonds, to give all notices of redemption as required herein, to make all payments of principal and interest with respect to the Bonds as provided herein, to cancel and destroy Bonds which have been paid at maturity or upon earlier redemption or submitted for exchange or transfer, to furnish the City at least annually a certificate of destruction with respect to Bonds canceled and destroyed, and to furnish the City at least annually an audit confirmation of Bonds paid, Bonds Outstanding and payments made with respect to interest on the Bonds. The Mayor and the City Finance Officer, or either of them is hereby authorized to execute and the City Finance Officer is hereby authorized to attest such written agreement between the City and the Registration Agent as they shall deem necessary or proper with respect to the obligations, duties and rights of the Registration Agent. The payment of all reasonable fees and expenses of the Registration Agent for the discharge of its duties and obligations hereunder or under any such agreement is hereby authorized and directed. Section 6.2. Permitted Acts and Functions. The Registration Agent may become the Owner of any Bonds, with the same rights as it would have if it were not a Registration Agent. The Registration Agent may act as an Underwriter or fiscal agent in connection with the sale of the Bonds or of any other securities offered or issued by the City. Section 6.3. Resignation or Removal of the Registration Agent and Appointment of Successors. (a) The Registration Agent may at any time resign and be discharged of the duties and obligations created by the Bond Resolution by giving at least sixty (60) calendar days‟ written notice to the City Finance Officer. The Registration Agent may be removed at any time by the City Finance Officer, provided that such removal does not constitute a breach of any contractual agreement with any such Registration Agent, by filing written notice of such removal with such Registration Agent. Any successor Registration Agent shall be appointed by the City Finance Officer and shall be a trust company or a bank having the powers of a trust company, having a combined capital, surplus, and undivided profits aggregating at least Forty Million Dollars ($40,000,000), willing to accept the office of Registration Agent on reasonable and customary terms and authorized by law to perform all the duties imposed upon it by the Bond Resolution. (b) In the event of the resignation or removal of the Registration Agent, such Registration Agent shall pay over, assign and deliver any monies and securities held by it as Registration Agent, and all books and records and other properties held by it as Registration Agent, to its successor, or if there be no successor then appointed, to the City Finance Officer until such successor be appointed. Section 6.4. Merger or Consolidation of Registration Agent. Any corporation or association into which the Registration Agent may be converted or merged, or with which it may be consolidated, or to which it may sell or transfer its trust business and assets as a whole, or substantially as a whole, or any corporation or association resulting from any such conversion, sale, merger, consolidation, or transfer to which it is a party shall be and become successor Registration Agent hereunder and shall be vested with all the trusts, powers, City Council Packet April 27, 2010 39 discretion, immunities, privileges, and other matters as was its predecessor, without the execution or filing of any instrument or any further act, deed, or conveyance on the part of any of the parties hereto, anything herein contained to the contrary notwithstanding. Upon any such conversion, merger, consolidation, sale or transfer, the City Finance Officer shall have the right and option, upon notice to such converted, merged, consolidated or acquiring entity, to remove such entity and appoint a successor thereto pursuant to the procedures and requirements set forth in Section 6.3 hereof. ARTICLE VII ADDITIONAL BONDS The City may issue additional bonds (the “Parity Bonds”) payable from the Pledged Revenues and having a lien upon such revenues on a parity with the Bonds and the Outstanding Parity Bonds providing that: 1. the City is current in the payment of principal and interest on the Outstanding Bonds and is current in the collections required for the Principal and Interest Account and the Reserve Account. 2. the City is in compliance with all covenants of outstanding sales tax revenue bonds and 3. the Pledged Revenues collected by the City in the last preceding fiscal year are sufficient to cover 1.25 times the combined average annual principal and interest requirements on the Outstanding Bonds and the proposed Parity Bonds. ARTICLE VIII SALE OF BONDS AND DEPOSIT OF PROCEEDS Section 8.1. Sale of Bonds. The Bonds shall be sold to the Underwriter at a price of not less than 98% of par less any Original Issue Discount on the Bonds plus accrued interest. The Mayor and the Finance Officer, or either of them, in consultation with the Underwriter, is authorized to make such changes in the structuring of the terms and sale of the Bonds as they shall deem necessary. In this regard, they, or either of them, in consultation with the Underwriter, are authorized to cause to be sold an aggregate principal amount of the Bonds less than that authorized herein, to sell any or all of the Bonds as term Bonds with annual mandatory redemption requirements which will produce substantially the same annual principal reductions as authorized herein, to change the dated date of the Bonds, and to adjust principal and interest payment dates and redemption dates of the Bonds. The form of the bond set forth in Exhibit A attached hereto shall be conformed to reflect any changes, if any, as hereinbefore mentioned. The Mayor and the City Finance Officer, or either of them, are hereby authorized to execute and the City Finance Officer is authorized to attest the Bond Purchase Agreement with the Underwriter providing for the purchase and sale of the Bonds. The Bond Purchase Agreement shall be in form and content acceptable to the Mayor and City Finance Officer, the execution thereof by either of them to constitute conclusive evidence thereof, and approved as to form and legality by the City‟s attorney; provided the Bond Purchase Agreement effects the sale of the Bonds in accordance with the provisions of this Resolution, and is not inconsistent with the terms City Council Packet April 27, 2010 40 hereof. The Mayor and the City Finance Officer are authorized to cause the Bonds to be authenticated and delivered by the Registration Agent to the Underwriter and to execute, publish, and deliver all Bonds and documents, including the Official Statement, and closing Bonds and documents, as they shall deem necessary in connection with the sale and delivery of the Bonds. Section 8.2. Official Statement. The Mayor, Finance Officer, and the Underwriter are hereby authorized and directed to provide for the preparation and distribution of a Preliminary Official Statement describing the Bonds in the form of the Preliminary Official Statement. After the Bonds have been sold, the Mayor and Finance Officer shall make such completions, omissions, insertions and changes in the Preliminary Official Statement not inconsistent with this resolution as are necessary or desirable to complete it as a final Official Statement for purposes of Rule 15c2-12(e)(3) of the Securities and Exchange Commission. The Mayor and Finance Officer shall arrange for the delivery to the Underwriter the Official Statement within seven business days after the Bonds have been sold in an electronic format as prescribed by the MSRB. The Mayor and Finance Officer are authorized, on behalf of the City, to deem the Preliminary Official Statement and the Official Statement in final form, each to be final as of its date within the meaning of Rule 15c2-12(b)(1), except for the omission in the Preliminary Official Statement of certain pricing and other information allowed to be omitted pursuant to such Rule 15c2- 12(b)(1). The distribution of the Preliminary Official Statement and the Official Statement in final form shall be conclusive evidence that each has been deemed in final form as of its date by the City except for the omission in the Preliminary Official Statement of such pricing and other information. Section 8.3. Disposition of Bond Proceeds. The proceeds of the sale of the Bonds shall be deposited in the Sales Tax Fund. The cost shall include costs incident to the issuance and sale of the Bonds pursuant to SDCL 6-8B-20 and capitalized interest, if any. Section 8.4. Tax Matters. (a) Notwithstanding Sections 8.4(b) through 8.4(f), any series of Bonds which are designated Build America Bonds or Recovery Zone Economic Development Bonds shall be issued in accordance with the rules and regulation provided therefore. Prior to closing of the Bonds, the officers of the City shall review the issue price of the Bonds as reported on http://emma.msrb.org to make sure that the bonds are being sold in accordance with the Code. (b) The City covenants and agrees with the registered owners from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become includable in gross income for federal income tax purposes under the Code and applicable Treasury Regulations (the "Regulations"), and covenants to take any and all actions within its powers to ensure that the basic interest on the Bonds will not become includable in gross income for federal income tax purposes under the Code and the Regulations. City Council Packet April 27, 2010 41 (c) The Mayor and the City Finance Officer, being the officers of the City charged with the responsibility for issuing the Bonds pursuant to this Resolution are hereby authorized and directed to execute and deliver to the Underwriter thereof a certificate in accordance with the provisions of Section 148 of the Code, and Section 1.148-2(b) of the Regulations, stating that on the basis of facts, estimates and circumstances in existence on the date of issue and delivery of the Bonds, it is reasonably expected that the proceeds of the Bonds will be used in a manner that would not cause the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code and the Regulations. (d) The City shall file with the Secretary of the Treasury a statement concerning the Bonds containing the information required by Section 149(e) of the Code. ARTICLE IX MISCELLANEOUS Section 9.1. Failure to Present Bonds. (a) Subject to the provisions of Section 4.7 hereof, in the event any Bond shall not be presented for payment when the principal or redemption price hereof becomes due, either at maturity or at the date fixed for prior redemption thereof or otherwise, and in the event monies sufficient to pay such Bond shall be held by the Registration Agent for the benefit of the Owner thereof, all liability of the City to such Owner for the payment of such Bond shal l forthwith cease, determine, and be completely discharged. Whereupon, the Registration Agent shall hold such monies, without liability for interest thereon, for the benefit of the Owner of such Bond who shall thereafter be restricted exclusively to such monies for any claim under the Resolution or on, or with respect to, said Bonds. (b) If any Bond shall not be presented for payment within a period of five years following the date when such Bond becomes due, whether by maturity or otherwise, the Registration Agent shall, subject to the provisions of any applicable escheat or other similar law, pay to the City any monies then held by the Registration Agent for the payment of such Bond and such Bond shall (subject to the defense of any applicable statute of limitation) thereafter constitute an unsecured obligation of the City. Section 9.2. Payments Due on Saturdays, Sundays, and Holidays. In any case where the date of maturity or interest on or principal of any Bonds, or the date fixed for redemption of any Bonds, shall be a Saturday or Sunday or shall be, at the place designated for payment, a legal holiday or a day on which banking institutions similar to the Registration Agent are authorized by law to close, then the payment of the interest on, or the principal, or the redemption price of, such Bond need not be made on such date but must be made on the next succeeding day not a Saturday, Sunday, or a legal holiday or a day upon which banking institutions similar to the Registration Agent are authorized by law to close, with the same force and effect as if made on the date of maturity or the date fixed for redemption, and no interest shall accrue for the period after such date. Section 9.3. Miscellaneous Acts. City Council Packet April 27, 2010 42 The appropriate officers of the City are hereby authorized, empowered, and directed to do any and all such acts and things, and to execute, acknowledge, deliver, and, if applicable file or record, or cause to be filed or recorded, in any appropriate public offices, all such documents, instruments, and certifications, in addition to those acts, things, documents, instruments, and certifications hereinbefore authorized and approved, as may, in their discretion, be necessary or desirable to implement or comply with the intent of the Bond Resolution, or any of the documents herein authorized and approved, or for the authorization, issuance, and delivery by the City of the Bonds. Section 9.4. Amendment. The City Council is hereby authorized to make such amendments to the Bond Resolution as will not impair the rights of the Bondholders. Section 9.5. No Recourse Under Bond Resolution or on Bonds. All stipulations, promises, agreements, and obligations of the City contained in the Resolution or any supplemental resolutions shall be deemed to be the stipulations, promises, agreements, and obligations of the City and not of any officer, director, or employee of the City in his or her individual capacity, and no recourse shall be had for the payment of the principal of or interest on the Bonds or for any claim based thereon or on the Resolution against any officer, director, or employee of the City or against any official or individual executing the Bonds. Section 9.6. Partial Invalidity. If any one or more of the provisions of the Bond Resolution, or of any exhibit or attachment thereto, shall be held invalid, illegal, or unenforceable in any respect, by final decree of any court of lawful jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other provision hereof, or of any exhibit or attachment thereto, but the Bond Resolution, and the exhibits and attachments thereto, shall be construed the same as if such invalid, illegal, or unenforceable provision had never been contained herein, or therein, as the case may be. Section 9.7. Continuing Disclosure. The City hereby covenants and agrees that it will provide financial information and material event notices as required by Rule 15c2-12 of the Securities Exchange Commission for the Bonds. The Mayor is authorized to execute at the Closing of the sale of the Bonds, an agreement for the benefit of and enforceable by the owners of the Bonds specifying the details of the financial information and material event notices to be provided and its obligations relating thereto. Failure of the City to comply with the undertaking herein described and to be detailed in said closing agreement, shall not be a default hereunder, but any such failure shall entitle the owner or owners of any of the Bonds to take such actions and to initiate such proceedings as shall be necessary and appropriate to cause the City to comply with its undertaking as set forth herein and in said agreement, including the remedies of mandamus and specific performance. Section 9.8. Post Issuance Compliance. The City does hereby adopt Meierhenry Sargent LLP Post Issuance Compliance Manual procedures with regard to the Bonds. The City directs the Finance Officer and City Clerk to formalize the written procedures. City Council Packet April 27, 2010 43 Section 9.9. Conflicting Resolutions Repealed. All resolutions or parts thereof in conflict herewith are, to the extent of such conflict, hereby repealed. Said motion was made by Council Member , seconded by Council Member . Upon vote being taken the following voted AYE: , and the following voted NAY: . Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk (SEAL) ******************************************** EXHIBIT A-(FORM OF BOND) UNITED STATES OF AMERICA STATE OF SOUTH DAKOTA CITY OF BROOKINGS BROOKINGS COUNTY, SOUTH DAKOTA SALES TAX REVENUE BONDS SERIES 2010A REGISTERED REGISTERED No. «No» $«AMOUNT» .00 Interest Rate Maturity Date Bond Date CUSIP No. «INTEREST_RATE» % «maturity» «cusip» Registered Owner: Cede & Co. 55 Water Street, 1st Floor New York, New York 10041 Tax ID #13-2555119 Principal Amount: «Dollarlong» AND NO\100 DOLLARS REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THE CERTIFICATE SET FORTH ON THE FOLLOWING PAGES, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE. It is hereby certified and recited that all conditions, acts and things required by law to exist or to be done precedent to and in the issuance of this Bond did exist, have happened, been done and performed in regular and due form and time as required by law. (BOND INSURANCE LANGUAGE INSERTED HERE) This Bond shall not be valid or become obligatory for any purpose or be entitled to any benefit or security under the Resolution until it shall have been authenticated by the execution by the Registrar of the certificate of authentication endorsed hereon. City Council Packet April 27, 2010 44 IN WITNESS WHEREOF, the City has caused this Bond to be signed by the manual or facsimile signature of its Mayor of the City and to be countersigned by the manual or facsimile signature of its City Finance Officer all as of the Bond Date specified above. ATTEST: City Finance Officer COUNTERSIGNED: Resident Attorney City of Brookings, South Dakota By: Mayor ******************************* CERTIFICATE OF AUTHENTICATION This bond is a bond of the series designated therein and has been issued under the provisions of the within-mentioned Resolution and the date of its authentication is __________, 2010. Wells Fargo Bank, NA Minneapolis, Minnesota Bond Registrar and Paying Agent By: _________________________________ Authorized Officer KNOW ALL MEN BY THESE PRESENTS: That the City of Brookings, South Dakota (the "City"), in Brookings County, South Dakota, hereby acknowledges itself to owe and for value received promises to pay, to the Registered Owner mentioned above in lawful money of the United States of America, together with interest thereon from the Bond Date mentioned above at the Interest Rate mentioned above. The interest hereon is payable June 1, 2011 and semiannually thereafter on June 1 and December 1 in each year to maturity or earlier redemption by wire transfer, check or draft mailed to the Registered Owner at its address as it appears on the Bond registration books of the City maintained by Wells Fargo Bank, NA, Minneapolis, Minnesota, as Bond registrar and paying agent (the "Registrar"), on the close of business on May 15 and November 15 immediately preceding the interest payment date (the “Record Date”). The principal hereof due at maturity or upon redemption prior to maturity is payable at the office of Registrar upon presentation and surrender of this Bond at maturity or upon earlier redemption. The principal of, premium (if any) and interest on this Bond is payable in any coin or currency of the United States of America which, at the time of payment, is legal tender for the payment of public and private debts. This Bond is one of an authorized issue of Bonds limited in aggregate principal amount to a maximum of $7,000,000 (the "Bonds") all of like date and tenor except as to maturity, interest rates and privileges of redemption, the proceeds of this issue (Series 2010A) will be used for the purpose of the acquisition of real property and construction of new city/county offices., pursuant to a resolution duly and regularly adopted by the City (the “Bond Resolution”), and are subject to all the provisions and limitations of the Resolution and Chapters 10-52 and 6-8B, South Dakota Codified Laws, as amended. The City has pledged and City Council Packet April 27, 2010 45 agreed to collect, so long as the Bonds are outstanding, non-ad valorem tax (the “Sales Tax”) in an amount sufficient to pay principal, premium and interest when due on the Bonds. [Redemption Provisions] This Bond is transferable by the registered holder hereof in person or by his attorney duly authorized in writing at the office of the Bond Registrar in Minneapolis, Minnesota, but only in the manner, subject to the limitations and upon payment of the charges provided in the Bond Resolution, and upon surrender and cancellation of this Bond. Upon such transfer a new Bond or Bonds of authorized denomination of the same maturity and for the same aggregate principal amount will be issued to the transferee in exchange therefore. The City and the Bond Registrar may deem and treat the registered holder hereof as the absolute owner hereof and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. BOND OPINION $7,000,000 City of Brookings Brookings County, South Dakota Sales Tax Revenue Bonds Series 2010A Ladies and Gentlemen: We have acted as bond counsel in connection with the issuance by the City of Brookings (the "Issuer") of $7,000,000 Sales Tax Revenue Bonds Series 2010A, dated _________ ____, 2010, (the "Bonds"). We have examined such certified proceedings and other papers as we deem necessary to render this opinion. We have not been engaged or undertaken to review the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds and we express no opinion relating thereto. As to questions of fact material to our opinion, we have relied upon the certified proceedings and other certifications of public officials furnished to us, without undertaking to verify such facts by independent investigation. Based upon the foregoing, we are of the opinion that, under existing law: 1. The Issuer is duly created and validly existing as a body corporate and politic and public instrumentality of the State of South Dakota with the corporate power to adopt and perform the Resolution and issue the Bonds. 2. Resolution _________ has been duly adopted by the Issuer on ____________ ___, 2010 and constitutes a valid and binding obligation of the Issuer enforceable upon the Issuer. City Council Packet April 27, 2010 46 3. The Resolution pledges the City‟s non-ad valorem tax (the “Sales Tax) in an amount sufficient to pay principal, premium and interest when due on the Bonds. 4. The Bonds have been duly authorized, executed and delivered by the Issuer and are valid and binding special obligations of the Issuer, payable solely from City‟s Sales Tax. 5. The interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations. The opinions set forth in the preceding sentence are subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986 as amended, that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income tax purposes. The Issuer has covenanted to comply with each such requirement. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income for federal income tax purposes to be retroactive to the date of issuance of the Bonds. We express no opinion regarding other federal tax consequences arising with respect to the Bonds. 6. The Bonds are exempt from all taxation as property by the State of South Dakota, its subdivisions and municipalities and bear interest not includible in the gross income of the recipient for purposes of computing any tax imposed by the provisions of South Dakota law. We express no further opinions regarding other South Dakota tax consequences arising with regard to the Bonds. It is to be understood that the rights of the holders of the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted to the extent constitutionally applicable and that their enforcement may be subject to the exercise of judicial discretion in accordance with general principles of equity and subject to regulatory requirements under the laws of the United States and of the State of South Dakota. Meierhenry Sargent LLP AS PROVIDED IN THE RESOLUTION REFERRED TO HEREIN, UNTIL THE TERMINATION OF THE SYSTEM OF BOOK-ENTRY-ONLY TRANSFERS THROUGH DEPOSITORY TRUST COMPANY, NEW YORK, NEW YORK (TOGETHER WITH ANY SUCCESSOR SECURITIES DEPOSITORY APPOINTED PURSUANT TO THE RESOLUTION, "DTC"), AND NOTWITHSTANDING ANY OTHER PROVISIONS OF THE RESOLUTION TO THE CONTRARY, A PORTION OF THE PRINCIPAL AMOUNT OF THIS CERTIFICATE MAY BE PAID OR REDEEMED WITHOUT SURRENDER HEREOF TO THE REGISTRAR. DTC OR A NOMINEE, TRANSFEREE OR ASSIGNEE OF DTC OF THIS CERTIFICATE MAY NOT RELY UPON THE PRINCIPAL AMOUNT INDICATED HEREON AS THE PRINCIPAL AMOUNT HEREOF OUTSTANDING AND UNPAID. THE PRINCIPAL AMOUNT HEREOF City Council Packet April 27, 2010 47 OUTSTANDING AND UNPAID SHALL FOR ALL PURPOSES BE THE AMOUNT DETERMINED IN THE MANNER PROVIDED IN THE RESOLUTION. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED OFFICER OF DTC (A) TO THE REGISTRAR FOR REGISTRATION OF TRANSFER OR EXCHANGE OR (B) TO THE REGISTRAR FOR PAYMENT OF PRINCIPAL, AND ANY CERTIFICATE ISSUED IN REPLACEMENT HEREOF OR SUBSTITUTION HEREFOR IS REGISTERED IN THE NAME OF DTC AND ANY PAYMENT IS MADE TO DTC OR ITS NOMINEE, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL BECAUSE ONLY THE REGISTERED OWNER HEREOF, DTC OR ITS NOMINEE, HAS AN INTEREST HEREIN. (Form of Assignment) FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto the within Certificate and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Certificate on the books kept for registration thereof, with full power of substitution in the premises. Dated: NOTICE: The signature to this Assignment must correspond with the name as it appears upon the face of the within Certificate in every particular, without alteration or enlargement or any change whatever. Tobin Morris, Northland Securities, Inc., presented a Debt Issuance Overview for the City of Brookings. Real Estate Purchase Agreement. A motion was made by Kubal, seconded by Whaley, to approve Real Estate and Purchase Agreements for an undivided one-half (1/2) interest in and to the Northeast One-Fourth (NE ¼), except Lots One (1) and Two (2) and except Lots H-4, H- 5, and the platted lots thereof, of Section Nineteen (19), Township One Hundred Ten (110) North, Range Forty-Nine (49) West of the 5th P.M., County of Brookings, State of South Dakota. No public comment was made. All present voted yes; motion carried. Real Estate Sale and Purchase Agreement THIS REAL ESTATE SALE AND PURCHASE AGREEMENT is made and executed by and between the City of Brookings, South Dakota, (hereinafter referred to as “Buyer”), and Robert J. Foster, as Trustee of the Robert J. Foster Trust dated December 21, 1998, (hereinafter referred to as “Seller”). City Council Packet April 27, 2010 48 WITNESSETH: WHEREAS, the Buyer desires to acquire the real property described below for future land use purposes, and Seller agrees to convey to the Buyer pursuant to the terms and conditions of this Real Estate Purchase Agreement for this purpose, the real estate described below. NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND AGREEMENTS CONTAINED HEREIN, THE PARTIES HERETO MUTUALLY AGREE TO THE FOREGOING AND AS FOLLOWS: 1. Purchase of Real Property. The Seller hereby agrees to sell to Buyer and Buyer hereby agrees to purchase from Seller the following described real property: An undivided one-half (1/2) interest in and to the Northeast One-fourth (NE¼), except Lots One (1) and Two (2) and except Lots H-4, H-5 and the platted lots thereof, of Section Nineteen (19), Township One Hundred Ten (110) North, Range Forty-nine (49) West of the 5th P.M., County of Brookings, State of South Dakota. 2. Effective Date. This Real Estate Purchase Agreement shall be effective upon the signing of this Real Estate Purchase Agreement. 3. Purchase Price. The Buyer shall pay to Seller‟s designated Qualified Intermediary, First Bank & Trust, the sum of Seven Hundred Seventy- Two Thousand Three Hundred Seventy-Five and no/100 ($772,375.00) Dollars for purchase of the above-described property, payable as follows: (a) An initial earnest money down payment in the sum of Five Thousand and no/100 ($5,000.00) Dollars at the time of execution of this Agreement following approval by the Brookings City Council; and (b) The balance of Seven Hundred Sixty-Seven Thousand Three Hundred Seventy-Five and no/100 ($767,375.00) Dollars at the time of Closing. 4. Merchantable Title/Real Estate Closing Documents and Miscellaneous. Seller shall convey said property free of liens and mortgages, but said property may be subject to easements, rights of way and restrictions of record. Seller shall provide clear and marketable title to the Buyer concerning the above described real property, by Trustee Deed, which contains only easements, rights of way and reservations of record. If there are any title restrictions, defects or burdens to which Buyer objects, other than easements, rights of way and restrictions of record, such objection shall be stated in writing to Seller, and Seller shall be allowed a reasonable time of not less than sixty (60) days in which to correct the same, and the Closing date shall be delayed for not less than sixty (60) days to provide Seller with time to correct said defect. City Council Packet April 27, 2010 49 In addition, the Buyer and Seller, as the case may be, shall also perform the following: A. Title Insurance Policy. Seller shall provide a Title Insurance Commitment, the amount of which shall be based on the purchase price, which shows Seller has marketable and merchantable title to the real property which is the subject of this Agreement. At the time of Closing, the Buyer and Seller shall each pay one-half (½) of the cost of the Title Insurance Policy. B. Deed Preparation/Closing Service Fees. The Seller will prepare and deliver a Trustee Deed, a Certificate of Real Estate Value and a Certificate of Trust at the time of Closing. Buyer will pay all other closing service fees. C. Transfer Fee/Recording Fee/Real Estate Taxes. 1. This transaction is exempt from transfer fees. 2. The Buyer shall pay the recording fee for the Trustee Deed and the Certificate of Trust. 3. The 2010 Real Estate Taxes and assessments, if any, shall be the responsibility of the City of Brookings, a political subdivision, which has the capability of declaring the real property exempt from real property taxes from and after the date of Closing and for the reason that the City of Brookings, as Buyer, will be entitled to all of the 2010 rents, issues and profits. D. Closing/Possession/Insurance. The Closing date will be scheduled at the convenience of the parties at such time as all contingencies have been satisfied or waived, with possession to be given to Buyer at time of Closing. Buyer estimates that the Closing date shall be on or about April 20, 2010. Seller agrees to maintain all existing insurance coverage on the property until the time of Closing. It is understood and agreed that Buyer shall not be permitted to take possession of the property until title has transferred. Closing shall be scheduled at a location mutually convenient for Seller and Buyer after the opportunity to refer or challenge the transaction ends without such actions occurring or any referendum election and/or legal challenge, or both, affirms the purchase of the property by Buyer. Possession of the above- described property shall be conveyed to Buyer at the time of Closing. E. No Personal Property Included in this Agreement. No personal property is included in the sale of the above-described real estate. F. Current Use of Premises/Prorations at Closing. Both parties understand and agree that the property is currently used for agricultural production. Seller shall not enter into any new leases or extend any lease following the execution City Council Packet April 27, 2010 50 of this Agreement. Seller represents to Buyer that any existing farm leases will be transferred and assigned unto Buyer at the Closing. G. Surveys and Tests. The Buyer, their employees, agents and contractors shall have the right to enter upon the above-described real property to perform soil tests and surveys upon execution of this Agreement which Buyer deems necessary, provided they do not interfere with Seller‟s use of the property. 5. Contingencies. The obligation of the Buyer to purchase the above-described property pursuant to this Agreement is contingent upon the following contingencies: Buyer‟s Contingencies. The parties acknowledge the following contingencies are condition precedents to the performance of this Agreement by the Buyer. Briefly stated, the contingencies concern: (a) the Resolution of the City, discussed at greater length below; and (b) that no actions or suits have been commenced or threatened against the Buyer pertaining to the performance of this Agreement. Buyer‟s contingencies are more fully discussed below. (a) Referendum/Election. The Buyer‟s obligation to purchase the property described herein shall be terminated if the City Council‟s decision to purchase the above-described property is successfully referred by the voters. Referred means the voters of the City, at an election, vote to nullify the decision of the City to purchase or pay for the property described herein. In the event of a successful referral, this Agreement shall be null and void, and the Buyer‟s earnest money down payment shall be promptly returned to Buyer. This contingency will be waived at the later of the expiration date of any referendum period if there is no referendum, or the date following the election canvassing if there is a referendum election, and the purchase is approved at a referendum election. However, a referendum decision by voters of the City which does not approve the purchase shall permit the Buyer to terminate this Agreement and Seller shall promptly return the earnest money down payment to Buyer. (b) Pending or Threatened Litigation. Through the date of Closing, there are no actions, suits or proceedings pending or threatened against the City at law or in equity or before any governmental authority which might adversely affect the ability of the City to perform its obligations under this Purchase Agreement. In the event of pending or threatened litigation, this Agreement, at the option of Buyer, may be declared null and void, and if so, the Seller shall promptly return the earnest money down payment to Buyer. 6. Good Faith/Mutual Cooperation. City Council Packet April 27, 2010 51 (a) Buyer will in good faith seek to satisfy all contingencies to this Real Estate Purchase Agreement and will act in a timely manner to permit its Closing as early as possible. (b) By Seller. At any time and from time to time before and after the Closing, Seller shall, at the request of Buyer, and without further consideration, promptly execute, acknowledge and deliver such further instruments and take such further action as Buyer may reasonably request in order to consummate and confirm the transaction contemplated by this Agreement and to accomplish the purposes of this Agreement; however, no such instruments or actions shall impose upon Seller any burden or obligation which is in excess of any burden or obligation specifically imposed upon Seller pursuant to the terms of this Agreement. (c) By Buyer. At any time and from time to time before and after the Closing, Buyer shall, at the request of Seller, and without further consideration, promptly execute, acknowledge and deliver such further instruments and take such further action as Seller may reasonably request in order to consummate and confirm the transaction contemplated by this Agreement and to accomplish the purposes of this Agreement; however, no such instruments or actions shall impose upon Buyer any burden or obligation which is in excess of any burden or obligation specifically imposed upon Buyer pursuant to the terms of this Agreement. 7. Review by Counsel. Buyer and Seller acknowledge that they each have had an opportunity to review this Agreement with legal counsel, and the parties agree that the rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement. 8. Seller‟s Like Kind Exchange. (a) Intent to Exchange. It is the intent of the Seller (Exchanger) to utilize this transaction as part of a tax deferred exchange as provided in Internal Revenue Code Section 1031, as amended and the Treasury regulations promulgated thereunder. (b) Exchange Cooperation Clause. Buyer hereby acknowledges it is the intent of the Seller to effect an IRC Section 1031 tax deferred exchange which will not delay the closing or cause additional expense to the Buyer. The Seller‟s rights under this Agreement may be assigned to First Bank & Trust, a Qualified Intermediary, for the purpose of completing such an exchange. Buyer agrees to cooperate with the Seller and First Bank & Trust in a manner necessary to complete the exchange. 9. Option to Lease. In further consideration of the mutual covenants and agreements contained herein, Buyer hereby grants to Seller an option to lease the real property as described above, for a period of Three (3) crop years, from and after the date of Closing. The Seller shall notify the Buyer in writing of the exercise of this option to lease. Seller shall City Council Packet April 27, 2010 52 thereupon enter into a lease agreement in writing on the general terms set forth in Exhibit A. As with other leases with the City of Brookings, the proposed lease shall be subject to approval of the City of Brookings, following public notice and hearing. This “option to lease” shall terminate upon the execution by Seller and the City of Brookings of a lease with respect to the above-described premises for a period of Three (3) years. This Option to Lease may not be assigned by the Seller except to an immediate family member of Robert Foster or entity owned by an immediate family member of Robert Foster. Because the City of Brookings may receive an offer to purchase some or all of the real property during the lease term, or may make infrastructure and/or utility improvements, any Lease of the above-described property will contain the following provisions to address the possible sale or construction of improvements during the lease term: If the Lessor should sell or otherwise transfer title to the above- described property or any portion thereof, this Lease shall terminate as to the portion sold, and Lessor and Tenant shall negotiate any crop input cost adjustments and crop damage or loss due to the sale of any portion of the leased premises prior to harvest. However, in any event, Lessor shall not be required to reimburse Tenant for more than the amount of the Annual Cash Rent. If the Lessor should construct a road, utility or other improvement upon the above-described property or any portion thereof, this Lease shall terminate as to such portion, and Lessor and Tenant shall negotiate any crop input cost adjustments and crop damage or loss due to the construction upon any portion of the leased premises prior to harvest. However, in any event, Lessor shall not be required to reimburse Tenant for more than the amount of the Annual Cash Rent. 10. Applicable Law. The laws of South Dakota govern this transaction. 11. Entire Agreement. This written Agreement constitutes the complete Agreement between the parties and supersedes any prior oral or written Agreement between the parties regarding the subject matter of this Agreement. There are no verbal agreements that change this Agreement and no waiver of its terms will be effective unless such are made and executed in writing and duly acknowledged as received by the parties. 12. Binding Effect. This Agreement binds the parties hereto and their heirs, successors and assigns, if any. Dated this 6th day of April, 2010. ROBERT J. FOSTER TRUST DATED DECEMBER 21, 1998, SELLER Robert J. Foster, Trustee City Council Packet April 27, 2010 53 Dated this 6th day of April, 2010. CITY OF BROOKINGS, BUYER (SEAL) By: ATTEST: Tim Reed, Mayor ________________________________ Shari L. Thornes, City Clerk ********************** Real Estate Sale and Purchase Agreement THIS REAL ESTATE SALE AND PURCHASE AGREEMENT is made and executed by and between the City of Brookings, South Dakota, (hereinafter referred to as “Buyer”), and Robert J. Foster, as Trustee of the Geneva M. Foster Trust dated December 21, 1998, (hereinafter referred to as “Seller”). WITNESSETH: WHEREAS, the Buyer desires to acquire the real property described below for future land use purposes, and Seller agrees to convey to the Buyer pursuant to the terms and conditions of this Real Estate Purchase Agreement for this purpose, the real estate described below. NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND AGREEMENTS CONTAINED HEREIN, THE PARTIES HERETO MUTUALLY AGREE TO THE FOREGOING AND AS FOLLOWS: 1. Purchase of Real Property. The Seller hereby agrees to sell to Buyer and Buyer hereby agrees to purchase from Seller the following described real property: An undivided one-half (1/2) interest in and to the Northeast One-fourth (NE¼), except Lots One (1) and Two (2) and except Lots H-4, H-5 and the platted lots thereof, of Section Nineteen (19), Township One Hundred Ten (110) North, Range Forty-nine (49) West of the 5th P.M., County of Brookings, State of South Dakota. 2. Effective Date. This Real Estate Purchase Agreement shall be effective upon the signing of this Real Estate Purchase Agreement. 3. Purchase Price. The Buyer shall pay to Seller the sum of Seven Hundred Seventy- Two Thousand Three Hundred Seventy-Five and no/100 ($772,375.00) Dollars for purchase of the above-described property, payable as follows: (a) An initial earnest money down payment in the sum of Five Thousand and no/100 ($5,000.00) Dollars at the time of execution of this Agreement following approval by the Brookings City Council (which earnest money City Council Packet April 27, 2010 54 down payment shall be paid to and held in the Trust Account of Lewayne M. Erickson P.C. pending the Closing); and (b) The balance of Seven Hundred Sixty-Seven Thousand Three Hundred Seventy-Five and no/100 ($767,375.00) Dollars at the time of Closing. 4. Merchantable Title/Real Estate Closing Documents and Miscellaneous. Seller shall convey said property free of liens and mortgages, but said property may be subject to easements, rights of way and restrictions of record. Seller shall provide clear and marketable title to the Buyer concerning the above described real property, by Trustee Deed, which contains only easements, rights of way and reservations of record. If there are any title restrictions, defects or burdens to which Buyer objects, other than easements, rights of way and restrictions of record, such objection shall be stated in writing to Seller, and Seller shall be allowed a reasonable time of not less than sixty (60) days i n which to correct the same, and the Closing date shall be delayed for not less than sixty (60) days to provide Seller with time to correct said defect. In addition, the Buyer and Seller, as the case may be, shall also perform the following: A. Title Insurance Policy. Seller shall provide a Title Insurance Commitment, the amount of which shall be based on the purchase price, which shows Seller has marketable and merchantable title to the real property which is the subject of this Agreement. At the time of Closing, the Buyer and Seller shall each pay one-half (½) of the cost of the Title Insurance Policy. B. Deed Preparation/Closing Service Fees. The Seller will prepare and deliver a Trustee Deed, a Certificate of Real Estate Value and a Certificate of Trust at the time of Closing. Buyer will pay all other closing service fees. C. Transfer Fee/Recording Fee/Real Estate Taxes. 1. This transaction is exempt from transfer fees. 2. The Buyer shall pay the recording fee for the Trustee Deed and the Certificate of Trust. 3. The 2010 Real Estate Taxes and assessments, if any, shall be the responsibility of the City of Brookings, a political subdivision, which has the capability of declaring the real property exempt from real property taxes from and after the date of Closing and for the reason that the City of Brookings, as Buyer, will be entitled to all of the 2010 rents, issues and profits. D. Closing/Possession/Insurance. The Closing date will be scheduled at the convenience of the parties at such time as all contingencies have been satisfied or waived, with possession to be given to Buyer at time of Closing. Buyer estimates that the Closing date shall be on or about April 20, 2010. Seller agrees to City Council Packet April 27, 2010 55 maintain all existing insurance coverage on the property until the time of Closing. It is understood and agreed that Buyer shall not be permitted to take possession of the property until title has transferred. Closing shall be scheduled at a location mutually convenient for Seller and Buyer after the opportunity to refer or challenge the transaction ends without such actions occurring or any referendum election and/or legal challenge, or both, affirms the purchase of the property by Buyer. Possession of the above- described property shall be conveyed to Buyer at the time of Closing. E. No Personal Property Included in this Agreement. No personal property is included in the sale of the above-described real estate. F. Current Use of Premises/Prorations at Closing. Both parties understand and agree that the property is currently used for agricultural production. Seller shall not enter into any new leases or extend any lease following the execution of this Agreement. Seller represents to Buyer that any existing farm leases will be transferred and assigned unto Buyer at the Closing. G. Surveys and Tests. The Buyer, their employees, agents and contractors shall have the right to enter upon the above-described real property to perform soil tests and surveys upon execution of this Agreement which Buyer deems necessary, provided they do not interfere with Seller‟s use of the property. 5. Contingencies. The obligation of the Buyer to purchase the above-described property pursuant to this Agreement is contingent upon the following contingencies: Buyer‟s Contingencies. The parties acknowledge the following contingencies are condition precedents to the performance of this Agreement by the Buyer. Briefly stated, the contingencies concern: (a) the Resolution of the City, discussed at greater length below; and (b) that no actions or suits have been commenced or threatened against the Buyer pertaining to the performance of this Agreement. Buyer‟s contingencies are more fully discussed below. (a) Referendum/Election. The Buyer‟s obligation to purchase the property described herein shall be terminated if the City Council‟s decision to purchase the above-described property is successfully referred by the voters. Referred means the voters of the City, at an election, vote to nullify the decision of the City to purchase or pay for the property described herein. In the event of a successful referral, this Agreement shall be null and void, and the Buyer‟s earnest money down payment shall be promptly returned to Buyer. This contingency will be waived at the later of the expiration date of any referendum period if there is no referendum, or the date following the election canvassing if there is a referendum election, and the purchase is approved at a referendum election. However, a referendum decision by voters of the City which does not approve the purchase shall permit the Buyer to terminate this City Council Packet April 27, 2010 56 Agreement and Seller shall promptly return the earnest money down payment to Buyer. (b) Pending or Threatened Litigation. Through the date of Closing, there are no actions, suits or proceedings pending or threatened against the City at law or in equity or before any governmental authority which might adversely affect the ability of the City to perform its obligations under this Purchase Agreement. In the event of pending or threatened litigation, this Agreement, at the option of Buyer, may be declared null and void, and if so, the Seller shall promptly return the earnest money down payment to Buyer. 6. Good Faith/Mutual Cooperation. (a) Buyer will in good faith seek to satisfy all contingencies to this Real Estate Purchase Agreement and will act in a timely manner to permit its Closing as early as possible. (b) By Seller. At any time and from time to time before and after the Closing, Seller shall, at the request of Buyer, and without further consideration, promptly execute, acknowledge and deliver such further instruments and take such further action as Buyer may reasonably request in order to consummate and confirm the transaction contemplated by this Agreement and to accomplish the purposes of this Agreement; however, no such instruments or actions shall impose upon Seller any burden or obligation which is in excess of any burden or obligation specifically imposed upon Seller pursuant to the terms of this Agreement. (c) By Buyer. At any time and from time to time before and after the Closing, Buyer shall, at the request of Seller, and without further consideration, promptly execute, acknowledge and deliver such further instruments and take such further action as Seller may reasonably request in order to consummate and confirm the transaction contemplated by this Agreement and to accomplish the purposes of this Agreement; however, no such instruments or actions shall impose upon Buyer any burden or obligation which is in excess of any burden or obligation specifically imposed upon Buyer pursuant to the terms of this Agreement. 7. Review by Counsel. Buyer and Seller acknowledge that they each have had an opportunity to review this Agreement with legal counsel, and the parties agree that the rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement. 8. Option to Lease. In further consideration of the mutual covenants and agreements contained herein, Buyer hereby grants to Seller an option to lease the real property as described above, for a period of Three (3) crop years, from and after the date of Closing. City Council Packet April 27, 2010 57 The Seller shall notify the Buyer in writing of the exercise of this option to lease. Seller shall thereupon enter into a lease agreement in writing on the general terms set forth in Exhibit A. As with other leases with the City of Brookings, the proposed lease shall be subject to approval of the City of Brookings, following public notice and hearing. This “option to lease” shall terminate upon the execution by Seller and the City of Brookings of a lease with respect to the above-described premises for a period of Three (3) years. This Option to Lease may not be assigned by the Seller except to an immediate family member of Robert Foster or entity owned by an immediate family member of Robert Foster. Because the City of Brookings may receive an offer to purchase some or all of the real property during the lease term, or may make infrastructure and/or utility improvements, any lease of the above-described property will contain the following provisions to address the possible sale or construction of improvements during the lease term: If the Lessor should sell or otherwise transfer title to the above- described property or any portion thereof, this Lease shall terminate as to the portion sold, and Lessor and Tenant shall negotiate any crop input cost adjustments and crop damage or loss due to the sale of any portion of the leased premises prior to harvest. However, in any event, Lessor shall not be required to reimburse Tenant for more than the amount of the Annual Cash Rent. If the Lessor should construct a road, utility or other improvement upon the above-described property or any portion thereof, this Lease shall terminate as to such portion, and Lessor and Tenant shall negotiate any crop input cost adjustments and crop damage or loss due to the construction upon any portion of the leased premises prior to harvest. However, in any event, Lessor shall not be required to reimburse Tenant for more than the amount of the Annual Cash Rent. 9. Applicable Law. The laws of South Dakota govern this transaction. 10. Entire Agreement. This written Agreement constitutes the complete Agreement between the parties and supersedes any prior oral or written Agreement between the parties regarding the subject matter of this Agreement. There are no verbal agreements that change this Agreement and no waiver of its terms will be effective unless such are made and executed in writing and duly acknowledged as received by the parties. 11. Binding Effect. This Agreement binds the parties hereto and their heirs, successors and assigns, if any. Dated this 6th day of April, 2010. GENEVA M. FOSTER TRUST DATED DECEMBER 21, 1998, SELLER Robert J. Foster, Trustee Dated this 6th day of April, 2010. CITY OF BROOKINGS, BUYER City Council Packet April 27, 2010 58 (SEAL) By: ATTEST: Tim Reed, Mayor ________________________________ Shari L. Thornes, City Clerk Strategic Plan Tier 3 Goals. A motion was made by Whaley, seconded by Thorpe, to approve the prioritizing of the Strategic Plan Tier 3 Goals and to begin with #1 and #2. The Goals are: 1) Hospital governance and community health care alignment issues and 2) Re- packaging/updating of various economic development and related plans, 3) Development plan for entry corridor improvements on 6th Street, 4) Capitalize on opportunities to purchase land for economic development, 5) Study feasibility of south Fire Station location to improve response time, 6) Neighborhood parking issues; action on Ad Hoc Parking Committee Report, 7) Community sustainability issues, and 8) Consideration of PAC II Funding Request. No public comment was made. All present voted yes; motion carried. Executive Session. A motion was made by Kubal, seconded by Bartley, to enter into Executive Session at 7:30 p.m. to consult with legal counsel about proposed or pending contractual matters with the City Council, City Attorney, City Manager and Deputy City Clerk present. All present voted yes; motion carried. A motion was made by Kubal, seconded by Bartley, to exit Executive Session at 8:19 p.m. All present voted yes; motion carried. Adjourn. A motion was made by Bezdichek, seconded by Thorpe, to adjourn. All present voted yes; motion carried. Meeting adjourned at 8:20 p.m. CITY OF BROOKINGS ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk City Council Packet April 27, 2010 59 Brookings City Council April 15, 2010 (unapproved) The Brookings City Council held a special meeting at 5:00 p.m. on Thursday, April 15, 2010, at City Hall with the following members present: Council Members Tim Reed, Julie Whaley, Mike Bartley, Mike McClemans, John Kubal and Tom Bezdichek. City Attorney Steve Britzman and City Clerk Shari Thornes were also present. Council Member Jael Thorpe was absent. Mayor Reed called the meeting to order. The City Council conducted the official canvass of the April 13, 2010 Municipal Election. A motion was made by Kubal, seconded by Whaley, to approve Resolution No. 43-10, a resolution approving the official canvass of the April 13, 2010 municipal election ballot. All present voted yes; motion carried. Resolution No. 43-10 Canvassing the April 13, 2010 Municipal Election Whereas, on the 13th day of April 2010, there was held in the City of Brookings, South Dakota, an election for the purpose electing three city council members, and Whereas, the judges and clerks of said election have returned to the City Council of the City of Brookings the official results for the purpose of the official canvass, and Whereas, the City Council on April 13, 2010 has canvassed the results for the purpose of determining the official election outcome, and Now, Therefore, Be It Resolved by the City Council of the City of Brookings, South Dakota that the official vote at the City Election held April 13, 2010 was as follows: City Council 3 Year (2) Jael E. Thorpe Julie R. Whaley Keith W. Corbett Over Votes Unde r Votes Total Ballots Cast Rural Votes Cast Total Votes Cast Precinct 1 40 31 50 0 17 69 0 121 Precinct 2 125 81 142 0 44 196 0 348 Precinct 3 96 85 127 0 60 234 98 308 Precinct 4 352 211 332 0 101 530 64 895 Precinct 5 382 249 382 0 129 571 0 1,013 Precinct 6 325 144 347 0 84 450 0 816 TOTAL 1,320 801 1,380 0 435 2,050* 162 3,501 *2,093 indicated on grant total, however, this includes 43 from Aurora. A motion was made by Kubal, seconded by Whaley, to adjourn. Meeting adjourned at 5:20 p.m. CITY OF BROOKINGS ATTEST: Mayor Tim Reed Shari Thornes, City Clerk City Council Packet April 27, 2010 60 CONSENT AGENDA #4 C. Action on Resolution No. 44-10, awarding bids on 2010-06STI Chip Seal Project. This project is the annual chip seal project, and the 2010 Project Area is located between 8th Street South and 20th Street South, and west of Medary Avenue. Most of the streets within this project area will receive a chip seal application. To perform the chip seal, the contractor will apply AE-150 oil to the streets and then apply city- furnished pea rock chips over the oil. The City Street Department sweeps up the excess chips a few days afterward. This year we are utilizing pea rock for the chip seal project instead of the quartzite chips that we had used in the past. On the 2009 project, the pea rock was not washed which created a significant amount of dust on the streets that were treated. However, this year we will utilize washed pea rock which will reduce the dust for the streets being treated. Using the pea rock is providing the City with a substantial cost savings to the project. For this project, the contractor will pick up the pea rock at L.G. Everest, which the City purchases at $4.00/ton. In past years, the City street department staff drove to Del Rapids to pick up the quartzite chips. The quartzite chips are approximately $14.28/ton which includes the fuel cost for hauling, but does not include operator wages or truck maintenance costs. The plans for this project were mailed to area contractors and 2 builders exchanges. The bid letting was held on April 20, 2010 and the City received the following bids: TopKote, Inc., Yankton, SD $192,759.00 The Road Guy Construction Co., Inc., Mission Hill, SD $239,700.00 Jensen Rock & Sand, Inc., Mobridge, SD $258,900.00 The low base bid was approximately 5% lower than the engineer‟s estimate of $203,100.00. The project also includes chip sealing the east half of the parking lot located southeast of Medary School, which will be paid for by the Brookings School District. Recommend awarding the contract to TopKote, Inc. of Yankton, SD for the low bid of $192,759.00. City Council Packet April 27, 2010 61 Resolution No. 44–10 Resolution Awarding Bids on Project 2010-06STI Chip Seal Project Whereas, the City of Brookings opened bids for Project 2010-06STI Chip Seal Project on Tuesday, April 20, 2010 at 1:30 pm at Brookings City Hall; and Whereas, the City of Brookings has received the following bids for Project 2010-06STI Chip Seal Project: TopKote, Inc., Yankton, SD $192,759.00 The Road Guy Construction Co., Inc., Mission Hill, SD $239,700.00 Jensen Rock & Sand, Inc., Mobridge, SD $258,900.00 Now Therefore, Be It Resolved that the low bid of $192,759.00 for TopKote, Inc., of Yankton, SD be accepted. Passed and approved this 27th day of April, 2010. CITY OF BROOKINGS ________________________________ Tim Reed, Mayor ATTEST: _________________________ Shari Thornes, City Clerk City Council Packet April 27, 2010 63 CONSENT AGENDA #4 D. Action on Resolution No. 45-10, declaring surplus property. Action on Resolution No. 45-10, will declare the following vehicle as surplus property: 2002 Mercury Sable Police Vehicle. This vehicle was used as an undercover vehicle for the department. This vehicle is no longer being used by the department. Putting this resolution into effect will allow the city to recover some of its costs for a future city vehicle purchase. Resolution No. 45-10 Declaring Surplus Property Whereas, the City of Brookings is the owner of the following described property formerly used at the City of Brookings Police Department: One (1) 2002 Mercury Sable Police Vehicle, VIN 1MEFM50U72G628208 Whereas in the best financial interest, it is the desire of the City of Brookings to sell same as surplus property; Whereas, the City Manager hereby authorized to sell said surplus property. Now, Therefore, Be It Resolved by the governing body of the City of Brookings, South Dakota, that this property be declared surplus property according to SDCL Chapter 6-13. Passed and approved this 27th day of April, 2010. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City Council Packet April 27, 2010 64 CONSENT AGENDA #4 E. Action on Resolution No. 46-10, authorizing the Brookings Summer Arts Festival Committee to have exclusive use of Pioneer Park. Resolution No. 46-10 A Resolution Authorizing the Brookings Summer Festival Committee to Have Exclusive Use of Pioneer Park Whereas, the Brookings Summer Arts Festival will be held in Pioneer Park on July 8-13, 2010, and Whereas, the Summer Arts Festival Committee has requested the exclusive use and control of Pioneer Park and its facilities for said festival, plus additional days for preparation and takedown, and Whereas, the Summer Arts Festival Committee will provide evidence of liability insurance coverage including the City of Brookings as named insured, and Whereas, the Summer Arts Festival Committee has agreed to accept responsibility for the conduct of the Summer Festival on said premises, now therefore, Be It Hereby Resolved that the use of Pioneer Park and its facilities as a public park shall terminate for the period of July 8 through July 13, 2010. Be It Further Resolved that the City Council does hereby grant the exclusive use of Pioneer Park and its facilities during the Brookings Summer Arts Festival to the Summer Arts Festival Committee. Further, It Is Resolved that the Summer Arts Festival Committee shall be responsible for maintaining said facilities and cleaning them and returning them to the City of Brookings in good condition following the festival. Passed and approved this 27th day of April 2010. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City Council Packet April 27, 2010 65 CONSENT AGENDA #4 F. Action on Volunteer Appointments to various City Boards, Committees, and Commissions. Mayor Reed has submitted the following appointment nominations for City Council action: Brookings Regional Airport Board Number of positions: 1 Position currently held by: Jim Bailey Term Length: 5 years Residency Requirement: No Purpose: The Airport Board is advisory to the city manager and council on matters concerning the city airport. Mayor’s Recommendation: Reappoint Jim Bailey Brookings Committee for People who have Disabilities, Student Position Number of positions: 1 Position currently held by: Kim Lindell Term Length: 1 year Residency Requirement: No Other Requirements: Student of secondary or post-secondary institution Purpose: The Committee 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 Recommendation: Reappoint Kim Lindell Human Rights Committee, Student Member Number of positions: 1 Position currently held by: Ashley Kuecker Term Length: 1 year Residency Requirement: No Other Requirements: Student of secondary or post-secondary institution Purpose: The Committee has the power to investigate complaints alleging discrimination. Other programs include studying City Council Packet April 27, 2010 66 the existence, character and causes and extent of discrimination in employment, housing and public accommodations, property rights, education and public services; advising and providing a forum for those subjected to unfair and discriminatory practices in the City and County; advising City officials concerning matters issues of discrimination; and conducting educational programs and disseminate information for further the committee‟s policy to eliminate discrimination in the city. Mayor’s Recommendation: Christine Fabian Park & Recreation Board Number of positions: 3 Positions currently held by: Ryan Krogman, September Kirby & vacancy Term Length: 5 years (Changing to 3-year term on 4/27/2010) Residency Requirement: No Purpose: The Board provides advice to the Director of Parks, Recreation and Forestry to assist in fulfilling the administering of the public park system, recreation programs and city forestry program. The Board also advises the City Council and makes recommendations on matters regarding park capital improvements and planning. Mayor’s Recommendation: 1. Reappoint Ryan Krogman 2. Reappoint September Kirby 3. New Appointment PENDING Park & Recreation Board, Student Positions Number of positions: 2 Positions currently held by: Kaitlin Kwasniewski (high school) & Dave Leiferman (college) Term Length: 1 year Residency Requirement: No Other Requirements: 1 high school and 1 college student Purpose: The Board provides advice to the Director of Parks, Recreation and Forestry to assist in fulfilling the administering of the public park system, recreation programs and city forestry program. The Board also advises the City Council and makes recommendations on matters regarding park capital improvements and planning. Mayor’s Recommendation: Jacqueline Zevenbergen (College) Mayor’s Recommendation: Sam Dunkle (High School) Utility Board Number of positions: 1 Positions currently held by: George Prest City Council Packet April 27, 2010 67 Term Length: 5 years Residency Requirement: yes Purpose: The Utility Board is an administrative body responsible for the management and control of the electric, water, wastewater and telephone utilities of the City of Brookings. Mayor’s Recommendation: Reappoint George Prest Visitor Promotions Committee – SDSU Student Positions–One Year Terms (pursuant to Res. 42-10, approved 4/6/10) 1. PENDING 2. PENDING 3. Erin Kennedy, Student Senate Vice President Transportation Board – SDSU Student Members (pursuant to Res. 39-10, approved 4/6/10) 1. PENDING 2. PENDING, Alternate City Council Packet April 27, 2010 68 Presentations/Reports/Special Requests 5. Invitation for a Citizen to schedule time on the Council Agenda for an issue not listed. At this time, any member of the public may request time on the agenda for an item not listed. Items are typically scheduled for the end of the meeting; however, very brief announcements or invitations will be allowed at this time. 6. SDSU Student Senate Report. President – Brett Monson Vice-President – Erin Kennedy Administrative Assistant – Kate Wegehaupt Finance Chair – Anthony Sutton State & Local Chair – Eric Haiar http://studentorgs.sdstate.org/studentsassociation/Default.htm City Council Packet April 27, 2010 69 Contract Awards/Change Orders 7. Action to authorize the Mayor to sign an Architectural Contract with Cannon, Moss, Brygger Architects, for the Brookings City/County Administration Building. Attached is the proposed contract from Cannon, Moss, & Brygger for architectural services for our project. This is the document the County Commission and City Council will need to approve in identical form to be effective. The Joint Building Committee has approved a recommendation of support for this firm and the proposed contract. The County Commission is scheduled to consider this document at their meeting on the morning of April 27th. The City Manager will be able to inform the Council of the outcome of their decision on this issue at the meeting. This agreement is an industry standard contract used by architects when undertaking a project with a construction manager-agent service delivery method. Details pertinent to our project are in a “fill-in-the-blank” format of the document. In this document, of note is the vertical line in the left-hand margin next to a paragraph indicates the language in that paragraph is ”tailored” to our project; all other language is generic to this document. As such, it is most important to concentrate Council review on the paragraphs that have that vertical line in the left-hand margin. This document has also been sent to the City Attorney and State‟s Attorney for legal review. CMBA is proposing to use Civil Design, Inc., a local firm, for the civil engineering work. Beyond that, the purpose of this memo is to highlight some of the key features and salient points of this document from City Manager review. As one might expect, it comes down to the services the City will get and the costs of those services. The costs for basic services of the architect are 5.9 percent of the construction cost of the project calculated at a minimum of $8 million. That means the minimum fee will be $472,000 for basic services depending upon the final budget. This amount is a reduction from 6.75 percent of construction cost which was in their proposal. In addition to the basic services, there are additional services we will need that are beyond this price. In most cases, these services are outside the basic service but some architects include them in the basic service but at a higher percentage. Either way, the owners pay for such services. These additional services are: (1) programming for schematic design; (2) civil engineering work on-site; (3) segregation of bid documents into four bid packages for fast-track schedule; and (4) computer modeling; for a total of $75,000. There will also be reimbursement for expenses such as travel, postage, printing, and other specialized services as needed with a handling mark-up of ten percent. Again, this is industry-standard. City Council Packet April 27, 2010 70 Finally, there are other items that will need to be budgeted that are outside the scope of an architectural agreement. They include designing the telecommunication system, technology networking, audio-visual systems, building security systems, and landscaping design. The architect will provide conduits and connection boxes as part of the building design but the “systems” will need to be designed by others. The architect will assist in identifying, evaluating, and selecting these design consultants or vendors but these services are additional costs. The City can, however, have Swiftel Communications assist us with designing the telecommunications and IT networking systems. This has been confirmed this with BMU. Landscaping design can handled in-house and can get good pricing on landscape plantings. We expect to use the current consultant/vendor for the audio-visual needs. Other items that will have to be budgeted for include demolition and site clearance contracts (which we already anticipated) but we will have to budget for furnishings, fixtures, equipment, survey data, builders risk insurance, and moving costs into the new building. Staff recommends approval of the architectural contract so we can begin schematic design immediately. City Manager Introduction ACTION: Motion to approve, Request Public Comment, Roll Call CITY MANAGER RECOMMENDATION: Approve City Council Packet April 27, 2010 101 Ordinance First Readings** 8. Ordinance No. 17-10: an Ordinance Amending Section 58-165 of the Code of Ordinances of the City of Brookings, South Dakota and pertaining to Loud and Raucous Noise in the City of Brookings, South Dakota. Public Hearing – May 11th **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. Staff received a request from Downtown Brookings, Inc. to amend the current Loud and Raucous Noise Ordinance. The intent of the ordinance amendments is to create a consistent process for seeking exceptions to the loud and raucous noise ordinance as well as creating and enhancing the atmosphere and experience of Downtown Brookings. There are two parts to the request. The first part pertains to section 58-165 (c)(2) Yelling, shouting, and prolonged sounds made by people. The current ordinance requires all loud and raucous noise to cease at 9:00 pm on any day of the week. The proposed amendment would change the time from 9:00 pm to 10:00 pm. The ordinance would apply city-wide. The second part of the amendment pertains to creating an exception to the Loud and Raucous Noise Ordinance specifically for the Business B-1 Central District and three adjacent properties. The original request sought to allow activities to be exempt from the loud and raucous noise ordinance until midnight on Friday and Saturday. Staff discussed the request and propose a language amendment that mirrors language in 58- 165 (d)(3), with the exception to include private property within the designated boundary provided a noise ordinance permit has been issued by the City of Brookings. The accompanying maps provide a visual description of the proposed boundary exception along with buffer distances in 50 foot increments up to 150 feet from the boundary. The proposed noise boundary has also been overlaid on the zoning map to provide a visual aid of the land uses that are potentially impacted. City Council Packet April 27, 2010 102 Ordinance No. 17-10 An Ordinance Amending Section 58-165 of the Code of Ordinances of the City of Brookings, South Dakota and pertaining to Loud and Raucous Noise in the City of Brookings, South Dakota. Be it ordained by the Governing Body of the City of Brookings, South Dakota that Chapter 58, Offenses and Miscellaneous Provisions, of the Code of Ordinances, shall be amended as follows: Section 1. Sec. 58-165. Loud and Raucous Noise. (c) (2) Yelling, shouting, and prolonged sounds by people. Yelling, shouting, whistling or singing, or any prolonged sounds made by people at any time or place so as to create a loud and raucous noise between the hours of 9:00 10:00 p.m. and 7:00 a.m. on any day of the week. (d) Exceptions. The term “loud and raucous noise” does not include noise or sound generated by the following: (5) Activities within the Business B-1 Central District and properties described below, provided such activities have been authorized by the owner of such property or facilities or its agent and a noise ordinance permit application has been issued by the City of Brookings. Lots 8-14, Block 5 Original Plat Addition Block 3, Henry‟s Addition Lot 101, Block 1, First Addition Section 2. Any or all ordinances in conflict herewith are hereby repealed. First Reading: April 27, 2010 Second Reading: Published: CITY OF BROOKINGS _____________________ Tim Reed, Mayor ATTEST: ________________________ Shari Thornes, City Clerk 4TH ST 5TH ST 7TH ST 5TH AVEMAIN AVE2ND AVE3RD ST 1ST ST S3RD AVE6TH AVE6TH ST / US Hwy 14 FRONT ST 2ND AVE S2ND ST MAIN AVE S6TH AVE3RD AVEFRONT ST / Legend 50 ft 100 ft 150 ft Noise Boundary 5TH ST 4TH ST 7TH ST 5TH AVEMAIN AVE2ND AVE1ST ST S 3RD ST3RD AVE6TH AVE6TH ST / US Hwy 14 FRONT ST 2ND AVE S2ND ST MAIN AVE S6TH AVE3RD AVEFRONT ST B-1 B-2 PDD I-2 R-2 I-1R-3A B-2A B-3 50 ft 100 ft150 ft 150 ft100 ft50 ft City Council Packet April 27, 2010 105 Ordinance First Readings** 9. Ordinance No. 18-10: an Ordinance pertaining to an Application for a Conditional Use for a Contractors Shop and Storage Yard in the Business B-3 District, Lot 10, Block 4, Folsom Addition, also known as 147 3rd Avenue South. Public Hearing – May 11th **No vote is taken on the first reading of an Ordinance. The title of the Ordinance is read and the date for the public hearing is announced. Applicant: Rob Boniface Proposal: Establish a contractors shop and equipment lot Background: This block is in the Business B-3 District. Uses consist of a large equipment rental store and display lot, smaller businesses, a house, and other contractors‟ services. The block across the street to the west is zoned for high-density residential uses. The standards for this conditional use are listed below. These standards are the minimum requirements necessary for this application to be heard. The impact of this use on neighboring properties should be a major consideration by the Commission. Sec. 94-266. Contractor Shop and Storage Yard: Such uses shall screen all outdoor storage from adjacent property. Service vehicles shall be localized in an area on the lot which will minimize the impact upon adjacent uses. Any lighting of the storage yard should be done in a way that will not cause a glare onto residential properties. Specifics: The proposal involves the construction of a 30‟ x 72‟ compart-mentalized storage building. The area between the building and the alley would be used for storing equipment that is used on a daily basis. The lot is quite small so an extensive operation would not be practical. Recommendation: The Planning Commission voted 6 yes and 0 no to recommend approval of the conditional use subject to the condition stated in the ordinance. City Council Packet April 27, 2010 106 Ordinance No. 18-10 An ordinance pertaining to an application for a Conditional Use for a Contractors Shop and Storage Yard in the Business B-3 District. Be it ordained by the governing body of the City of Brookings, South Dakota that said Conditional Use shall be approved for a Contractors Shop and Storage Yard on Lot 10, Block 4, Folsom Addition with the following conditions: 1. The Conditional Use shall only be granted to the applicant All sections and ordinances in conflict herewith are hereby repealed. First Reading: April 27, 2010 Second Reading: Published: CITY OF BROOKINGS __________________________ Tim Reed, Mayor ATTEST: ________________________________ Shari Thornes, City Clerk City Council Packet April 27, 2010 107 Planning Commission Brookings, South Dakota April 6, 2010 OFFICIAL MINUTES Chairperson Alan Gregg called the regular meeting of the City Planning Commission to order on April 6, 2010, at 7:00 PM in the Community Room at City Hall. Members present were Wayne Avery, Mike Cameron, Donna DeKraai, Greg Fargen, Dave Kurtz, and Gregg. Al Heuton, Larry Fjeldos, and John Gustafson were absent. Others present were Jim Weiss, Rob Boniface, Community Development Director Mike Struck, and Planning and Zoning Administrator Dan Hanson. Item #4 – Robert C. Boniface has submitted an application for a Conditional Use to establish a contractors shop and storage yard on Lot 10, Block 4, Folsom Addition (Cameron/Fargen) Motion to approve the Conditional Use. (Cameron/Kurtz) Amendment to the motion to add the following condition: 1. The Conditional Use shall only be granted to the applicant. All present voted aye. AMENDMENT CARRIED. The motion, as amended, was voted on. All present voted aye. MOTION CARRIED. SUMMARY OF DISCUSSION Item #4 – Boniface stated his contracting business involved primarily roofing jobs. He needed inside storage space for his materials and an outside storage area for trailers. Kurtz asked if there would be an office. Boniface replied no. Fargen asked if the lot would be surfaced. Boniface answered that it would be gravel at first with asphalt or concrete in the future. DeKraai inquired about increased traffic. Boniface felt it would be minimal because workers would travel to on-site locations. Cameron asked if all storage would be kept inside. Boniface responded that that was the plan. Hanson noted that outside storage must be screened according to the zoning ordinance, but equipment used in the daily operation would not be required to be screened. If storage occurs on the site, a perimeter, privacy type fence would be required. Boniface indicated he understood the requirement. City Council Packet April 27, 2010 112 Second Readings / Public Hearings 10. Action to approve Resolution No. 48-10, a Resolution of Intent to Lease Real Property to Private Person for a farm lease with Joel C. Foster, for a period of Three (3) years and pertaining to the following described property, for the Northeast One-fourth (NE¼), except Lots One (1) and Two (2) and except Lots H-4, H- 5 and the platted lots thereof, of Section Nineteen (19), Township One Hundred Ten (110) North, Range Forty-nine (49) West of the 5th P.M., County of Brookings, State of South Dakota. Pursuant to previous council action, the City is in the process of executing the purchase agreements for 83.5 acres of farmland in the northeast portion of the City adjacent to I- 29 for purposes of a future industrial park. In the meantime, we have interest from the current renter to continue the right to lease the property as he did from the seller for agricultural purposes. As such, the City Attorney has prepared the attached lease. As the City begins to plan for the development of this acreage for a future industrial park, it is incumbent upon us to realize some income in the form of cash rent during the short term until infrastructure can be installed for development. The attached lease provides for a three-year term with rent being $50 per acre for year one beginning with the current crop year; $70 per acre for year two; and $90 per acre for year three. The prospective tenant has the right to sub-let portions thereof for agricultural purposes. Most of the other terms and conditions for the lease of agricultural land are standard. Following your public hearing on the proposed lease, unless there is information brought forward during the hearing, staff recommends approval. City Manager Introduction ACTION: Open & Close Public Hearing, Motion to Approve, Roll Call CITY MANAGER RECOMMENDATION: Approve City Council Packet April 27, 2010 113 Resolution No. 48-10 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 Farm Lease with Joel C. Foster, for a period of Three (3) years and pertaining to the following described property: The Northeast One-fourth (NE¼), except Lots One (1) and Two (2) and except Lots H-4, H-5 and the platted lots thereof, of Section Nineteen (19), Township One Hundred Ten (110) North, Range Forty-nine (49) West of the 5th P.M., County of Brookings, State of South Dakota. The purpose of this Lease is to provide for the farming of the above-described property prior to its development. The term of the Lease is three years, beginning with the 2010 crop season through December 31, 2012. The Lease provides for cash rent payable by the Tenant, and sets forth the respective obligations of the Lessor and Tenant concerning the above-described property. Be It Further Noted, that a Public Hearing on this Resolution was held on this 27th day of April, 2010 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 the above-described real property. Passed and approved this 27th day of April, 2010. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City Council Packet April 27, 2010 114 Second Readings / Public Hearings 11. Ordinance No. 16-10: An Ordinance Amending Section 62-34 of the Code of Ordinances of the City of Brookings, South Dakota and pertaining to the Terms of Office for the Park and Recreation Board in the City of Brookings, South Dakota. Ordinance No. 16-10 is a minor modification to the Park and Recreation Board ordinance to reducing the term length requirements for volunteer members from five years to three years to be consistent with other city volunteer boards, committees, and commissions. City Manager Introduction ACTION: Open & Close Public Hearing, Motion to Approve, Roll Call CITY MANAGER RECOMMENDATION: Approve City Council Packet April 27, 2010 115 Ordinance No. 16-10 (MARKED) An Ordinance Amending Section 62-34 of the Code of Ordinances of the City of Brookings, South Dakota and Pertaining to the Terms of Office for the Park and Recreation Board 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. 62-34. Terms of office. Members of the park and recreation board shall serve five three-year terms, except the high school and college student members shall be appointed for terms of one year each. The terms of office for members serving five three-year terms shall be established so the term of one member shall expire each year for three years, and the terms of two members shall expire each year for two years. All terms shall expire on the date of the first regular meeting of the city council in May. II. All ordinances in conflict herewith are hereby repealed. First Reading: April 6, 2010 Second Reading: April 27, 2010 Published: April 30, 2010 CITY OF BROOKINGS, SD Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City Council Packet April 27, 2010 116 Second Readings/Public Hearings 12. Public hearing and action on Resolution No. 49-10, a Resolution authorizing Vacation of an Alley abutting Lots 3 through 14 of Block 1, Thornbers Addition (7th to 8th Street and 12th to 13th Avenue). Applicants: South Dakota State University, South Dakota State University Foundation, and State College Development Association Background: Block 1 of Thornbers Addition has contained a mix of low, medium, and high-density residential uses. All but one of the properties on the block have been acquired by South Dakota State University or associated organizations. The buildings, except for the apartment in the southwest corner, will eventually be razed or removed. Specifics: The south 100 feet of the alley will remain in order to provide access into a parking lot that serves the apartment. The north 300 feet will need to be vacated to allow for the construction of an SDSU commuter parking lot over the rest of the block. Easements for any existing underground utilities will be discussed at the meeting. Recommendation: The Planning Commission voted 6 yes and 0 no to recommend approval of the alley vacation. City Manager Introduction ACTION: Open & Close Public Hearing, Motion to Approve, Roll Call CITY MANAGER RECOMMENDATION: Approve City Council Packet April 27, 2010 117 Resolution No. 49-10 Alley Vacation Whereas, a petition to vacate has been filed with the City Clerk of the City of Brookings, and Whereas, the petition was filed in proper form and signed by one hundred percent (100%) of the adjacent property owners. Now, Therefore, Be It Resolved by the City Council of the City of Brookings: That the portion of the alley abutting lots 3 through 14 of Block 1, Thornbers Addition is hereby vacated. Passed and approved this 27th day of April 2010. CITY OF BROOKINGS __________________________ Tim Reed, Mayor ATTEST: _______________________ Shari Thornes, City Clerk City Council Packet April 27, 2010 119 NOTICE OF HEARING UPON PETITION TO VACATE NOTICE IS HEREBY GIVEN That South Dakota State University, South Dakota State University Foundation, and the State College Development Association have submitted a petition to vacate the alley abutting Lots 3 through 14, Block 1, Thornbers Addition. NOTICE IS FURTHER GIVEN That said request will be acted on by the City Planning Commission at 7:00 PM on Tuesday, April 6, 2010, in the Council Chamber in the lower level of City Hall, Brookings, South Dakota. Any person interested may appear and be heard in this matter. Dated this 26th day of March 2010. ____________________________ Dan Hanson Planning & Zoning Administrator NOTICE OF HEARING UPON PETITION TO VACATE NOTICE IS HEREBY GIVEN That South Dakota State University, South Dakota State University Foundation, and the State College Development Association have submitted a petition to vacate the alley abutting Lots 3 through 14, Block 1, Thornbers Addition. NOTICE IS FURTHER GIVEN That said request will be acted on by the City Council at 6:00 PM on Tuesday, April 27, 2010, in the Council Chamber in the lower level of City Hall, Brookings, South Dakota. Any person interested may appear and be heard in this matter. Dated this 9th day of April 2010. ____________________________ Dan Hanson Planning & Zoning Administrator City Council Packet April 27, 2010 120 Planning Commission Brookings, South Dakota April 6, 2010 OFFICIAL MINUTES Chairperson Alan Gregg called the regular meeting of the City Planning Commission to order on April 6, 2010, at 7:00 PM in the Community Room at City Hall. Members present were Wayne Avery, Mike Cameron, Donna DeKraai, Greg Fargen, Dave Kurtz, and Gregg. Al Heuton, Larry Fjeldos, and John Gustafson were absent. Others present were Jim Weiss, Rob Boniface, Community Development Director Mike Struck, and Planning and Zoning Administrator Dan Hanson. Item #3 – South Dakota State University, South Dakota State University Foundation, and the State College Development Association have submitted a petition to vacate the alley abutting Lots 3 through 14, Block 1, Thornbers Addition (Kurtz/Cameron) Motion to approve the alley vacation. All present voted aye. MOTION CARRIED. SUMMARY OF DISCUSSION Item #3 – Jim Weiss, representing the petitioners, stated that a parking lot was planned to be constructed over the alley. The electric and telephone lines would be rerouted to the perimeter of the block, and natural gas pipelines would be terminated at the appropriate places. Fargen asked if there would be a need for future easements. Hanson replied no, not if all existing utilities were removed from the alley. Fargen asked for the tentative timetable. Weiss responded that November was set for the completion date. City Council Packet April 27, 2010 121 Second Readings/Public Hearings 13. Public hearing and action on Resolution No. 50-10, Authorizing Meyer’s Second Addition Road District, Brookings County, South Dakota Applicants: Residents within Meyer‟s Second Addition in the Joint Jurisdiction Area surrounding the City of Brookings Specifics: Chapter 31-12A of the SDCL enables landowners to create a Road District for the construction and maintenance of roads within a specified territory. No governmental entity maintains these rural subdivision roads. A survey, map, and petition must be filed with the County Commission indicating how the Road District will be organized pursuant to state law. Meyer‟s Second Addition is outside the city but under the city‟s subdivision jurisdiction since it is zoned non-ag. Therefore, the petition for the incorporation into a Road District must first be submitted for approval to the City Council. The River Ridge Road District, approved in 2008, was very similar to this request. City Manager Introduction ACTION: Open & Close Public Hearing, Motion to Approve, Roll Call CITY MANAGER RECOMMENDATION: Approve City Council Packet April 27, 2010 122 Resolution No. 50-10 Resolution Authorizing Meyer‟s Second Addition Road District Brookings County, South Dakota Whereas, the City of Brookings has received a petition requesting the organization and incorporation of the Meyer‟s Second Addition Road District; and Whereas, said petition indicates the desire of qualified landowners within the proposed boundaries to create the Meyer‟s Second Addition Road District; and Now, Therefore, Be It Resolved by the City Council of the City of Brookings that said request is approved for the Meyer‟s Second Addition Road District. Passed and approved this 27th day of April, 2010. CITY OF BROOKINGS ____________________ ATTEST: Tim Reed, Mayor _____________________ Shari Thornes, City Clerk City Council Packet April 27, 2010 125 Other Business 14. Action on Resolution No. 51-10, establishing the fee for the issuance of full-Service Restaurant On-Sale Licenses in the City of Brookings. To: Mayor and Council, Jeff Weldon, City Manager and Shari Thornes, City Clerk From: Steven J. Britzman, City Attorney Date: April 21, 2010 Re: Restaurant License On-sale license fee resolution Discussion. Following a good discussion with Don McCarty and his clients concerning the full-service restaurant on-sale license issues, and a thorough review of the purchase documents of the “most recent sale” prior to January 1, 2008, and further, in accordance with the Circuit Court‟s decision in the Nine, Inc. litigation, Jeff Weldon and I have determined that the minimum price for a full-service restaurant on-sale license is $100,000. The following statute provides the required procedure to set the price, and the issue whether “operating agreement transfers” are treated the same as sales of “on- sale licenses” has been resolved by the Circuit Court. For purposes of full-service restaurant on-sale license fees, on-sale licenses and operating agreements are not distinguishable. Accordingly, the sale to Gus Theodosopoulos was used to determine the fair market value of a license under SDCL 35-4-117, and having reviewed the transaction documents, it is my recommendation that the minimum license fee which can be set by Resolution for full-service restaurant on-sale licenses is $100,000. 35-4-117. Alcohol sales - Price of full-service restaurant on-sale license set at or above current fair market value. Any municipality or county adopting the ordinance pursuant to § 35-4-111 shall set the price of a new full-service restaurant on-sale license, pursuant to § 35-4-116, at or above the current fair market value. However, such full-service restaurant on-sale license fee may not be less than the minimum on-sale license fee provided for in subdivision 35-4- 2(4) or (6). For purposes of this section, the term, current fair market value, means the documented price of the on-sale license most recently sold between January 1, 2003, and January 1, 2008, through an arm's-length transaction, less the value of any real or personal property included in the transaction. Each on-sale license holder as of January 1, 2008, who acquired the on-sale license within the last five years shall report to the municipality or county the date and price paid for its on-sale license. If there are no documented sales of on-sale licenses between January 1, 2003, and January 1, 2008, the municipality or county may request from any on-sale license holder within the municipality or county, the date and price originally paid for its on-sale license to determine the current fair market value. City Manager Introduction ACTION: Motion to Approve, Request Public Comment, Roll Call CITY MANAGER RECOMMENDATION: Approve City Council Packet April 27, 2010 126 Resolution No. 51-10 Resolution Establishing the Fee for the Issuance of Full-Service Restaurant On-Sale Licenses in the City of Brookings Be It Resolved by the City Council of the City of Brookings, South Dakota as follows: Whereas, the State of South Dakota has authorized municipalities to issue full-service restaurant on-sale licenses pursuant to SDCL §§35-4-110 through 35-4-120, and Whereas, as required by State law, the license fee charged for a full-service restaurant on-sale license shall be set at or above the current fair market value for such license, based upon the documented price of the on-sale license most recently sold between January 1, 2003 and January 1, 2008, through an arm‟s-length transaction, and Whereas, the license fee charged for a full-service restaurant on-sale license as provided herein is based upon the foregoing statute, and it has been determined that the City of Brookings is required to recognize transfers of its operating agreements during the period between January 1, 2003 and January 1, 2008, and Whereas, in accordance with SDCL 35-4-117, the City of Brookings has received and has thoroughly reviewed documentation of the price attributed to the sale and transfer of an operating agreement to Gus Theodosopoulos, which is the most recent transaction occurring between January 1, 2003 and January 1, 2008, and Whereas, the documented price set forth in the Gus Theodosopoulos Purchase Agreement is determined to be $100,000, which constitutes the fair market value to be util ized as the minimum price of a full-service restaurant on-sale license in the City of Brookings; Now, Therefore, Be It Resolved that the fee for the issuance of full-service restaurant on-sale licenses in the City of Brookings shall be One Hundred Thousand Dollars ($100,000.00). Passed and approved on the 27th day of April, 2010. CITY OF BROOKINGS: ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk City Council Packet April 27, 2010 127 Other Business 15. Action on Resolution No. 52-10, adopting a Master Park Plan. The City of Brookings parks system consists of parks, open space areas, wetlands, trails and recreation facilities. The community recognizes the importance of parks and recreation as a quality of life amenity. The City has not previously completed a Master Park Plan. Therefore, the need to conduct a current inventory assessment of existing parks as well as plan for the development of future parks is a priority. The Master Park Plan is intended to act as a guide to the future and set general direction for parks and recreation programming and development from 2010 to 2030. It will provide a consistent and justifiable continuum of ideas, beliefs, and values, which defines the mission and vision of the City for its parks, recreation, and forestry services. The Master Park Plan was presented to the Park and Recreation Board on February 1st and April 5th. A motion was made by September Kirby, seconded by Ann Martin to approve the Master Park Plan. Al board members present voted yes. Motion carried. The plan was presented to the Planning Commission on April 6th for discussion. Action on the Resolution will adopt the Master Park Plan. (Master Park Plan presentation – 10 minutes) City Manager Introduction ACTION: Motion to Approve, Request Public Comment, Roll Call CITY MANAGER RECOMMENDATION: Approve City Council Packet April 27, 2010 128 Resolution No. 52-10 Resolution Adopting a Master Park Plan Whereas, a Master Park Plan addressing both immediate and long range needs is essential for the development of a comprehensive and effective parks, recreation and forestry system in the City of Brookings, and Whereas, staff conducted a detailed inventory that describes the physical features, existing recreation facilities and the desired actions to be taken to improve and maintain recreation facilities between 2010 and 2030; and Whereas, the Master Park Plan will assist staff, Parks and Recreation Board and City Council in developing a capital improvements plan; and Whereas, the Master Park Plan is a guide to the future and sets the general direction of parks, recreation and forestry programming; and Whereas, the Master Park Plan shall be reviewed and refined on a regular basis to ensure the plan is consistent with the needs of the community; and Whereas, the City of Brookings Parks and Recreation Board recommend adoption of the Master Park Plan as a document to assist in meeting the parks, recreation and forestry needs of the community. Now, Therefore, Be It Resolved that the City Council of the City of Brookings adopts the Master Park Plan. Passed and approved this 27th day of April 2010. CITY OF BROOKINGS ___________________________ Tim Reed, Mayor ATTEST: ________________________ Shari Thornes, City Clerk City Council Packet April 27, 2010 219 Other Business 16. Design update on the Railroad Crossing Project at Main Avenue. The South Dakota Department of Transportation has issued grant funding for the Main Avenue Rail Crossing project. The project will include installing new railroad safety crossing gates and the construction work on Main Avenue to for the new layout. The grant funding comes from the Railroad Crossing Improvement Program (RCIP), which is a federally funded program and requires a 10% city match. The program‟s purpose is to provide funding for the implementation of safety improvements where a public roadway intersects active railroad tracks. Jackie Lanning, Brookings City Engineer, presented design options to the Brookings City Council at the May 6, 2009 council meeting. During that meeting, the City Council discussed two design options: 1) A four-lane street configuration with center median: the median would extend approximately 60‟ to 75‟ on either side of the rail which would hinder left turns onto driveways and side streets. 2) A three-lane street configuration (two north-bound lanes and one south-bound lane) with no center median: the south-bound traffic would utilize one lane of traffic and the north-bound traffic would be similar to the current situation. Left-turn turning movements will not be changed. The City Council chose Option 2 which is the three-lane street configuration. The City Engineering staff has been developing construction plans for this design option. However, staff has discovered that certain vehicles are not able to make turning movements with this design. City Engineer Lanning will be meeting with Susan Tracy, Rail-Highway Safety Engineer from the South Dakota Department of Transportation to discuss design options and Ms. Lanning will present an update to the City Council on the project. City Manager Introduction Informational City Council Packet April 27, 2010 220 Other Business 17. Discussion and possible action to purchase Hangar Site A, at the Brookings Municipal Airport, from J.J. Jones, LLC. TO: Mayor and Council Members FROM: City Manager Jeff Weldon RE: Purchase of hangars at the airport The City has been approached by the owner of one old hangar at the Municipal airport. Attached are photographs. Like all hangars at the airport, this is privately owned but subject to a ground lease with the City. The owners also own an underground aviation fuel tank located in front of the hangar. We rarely have an opportunity to purchase such a facility and will go a long way toward improving the appearance of the area, regardless of its exact future use. This hangar is also located in a low spot on the airport and requires constant work on the pavement. Removing this hangar would allow us to raise the taxiway and solve our issues with constantly having to repair the pavement in this area. The owners are offering to sell us the hangar for the assessed tax valuation amount of $21,600 contingent upon the seller removing the underground fuel tanks. We do not have this amount budgeted for this purchase as we could not have anticipated the availability of them for sale. I recommend we use a portion of the budgeted amount of $250,000 in the airport budget for initial design and planning of the airport layout plan. Purchase and removal of such buildings is somewhat related to this budgeted line item but since it is not specifically provided in the adopted budget, I need specific City Council authorization. I request a motion directing me and City Attorney Steve Britzman to develop a purchase agreement. City Manager Introduction Motion to Approve Request Public Comment, Roll Call City Council Packet April 27, 2010 225 18. Adjourn.