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HomeMy WebLinkAbout2010_12_14 CC PKT Brookings City Council Tuesday, December 14, 2010 City Hall Council Chambers 311 Third Avenue 4:00 p.m. – Executive Session 5:00 p.m. – Work Session 6:00 p.m. – Regular Meeting The City of Brookings is committed to providing a high quality of life for its citizens and fostering a diverse economic base through innovative thinking, strategic planning, and proactive, fiscally responsible municipal management. 4:00 p.m. Executive Session (First Floor Meeting Room) 5:00 p.m. WORK SESSION Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 1. Update on Northwest Quadrant 2. Swiftel Center Topics • Naming rights policy and procedures • Revenue generation • Economic impact indicator data methods • Capital improvement plan 3. Review of Charter Revision Process 4. City Council Member Ex-Officio Reports 5. Joint Powers Board members’ Report 6. City Council member introduction of topics for future discussion* 7. Council Invites & Obligations *Any Council member may request discussion of any issue at a future meeting only. Items cannot be added for action at this meeting. A motion and second is required starting the issue, requested outcome, and time. A majority vote is required. 6:00 p.m. REGULAR MEETING 1. Call to order. 2. Pledge of Allegiance. 3. Record of Council Attendance. 4. Action to approve the following Consent Agenda Items: * A. Action to approve the agenda. B. Action to approve the minutes. C. Consent of the City to allow the United Retirement Center to sign a “Leasehold Mortgage.” Action: 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 1 Council of the Consent Agenda items means that the recommendation of the City Manager is approved along with the terms and conditions described in the agenda supporting documentation. Open Forum/Presentations/Reports: 5. Open Forum. 6. SDSU Student Senate Report. 7. Feasibility report on re-location of South Fire Station. Contract Awards / Change Orders 8. Action on Resolution No. 105-10, authorizing Change Order on Landfill Trench project. Action: Motion to Approve, Request Public Comment, Roll Call 9. Action on Resolution No. 106-10, a Resolution authorizing Final Change Order (CCO#1 Final) for 2010-06STI Chip Seal Project, Topkote, Inc. Action: Motion to Approve, Request Public Comment, Roll Call First Readings** 10. Ordinance No. 39-10: Budget Amendment #3: authorizing a Supplemental Appropriation to the 2010 Budget for the purpose of providing for additional funds for the Operation of the City. Public Hearing – December 28th ** 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. Alcohol Licenses 11. Public hearing and action on Temporary Liquor License requests for the Shamrock for events on December 31, 2010 and January 15 and 22, 2011. Action: Open & Close Public Hearing, Motion to Approve, Roll Call 12. Action on Resolution No. 107-10, a Resolution authorizing the City Manager to sign an Operating Agreement (Wine) for the Swiftel Center. Action: Motion to Approve, Request Public Comment, Roll Call Second Readings / Public Hearings 13. Ordinance No. 38-10: an Ordinance amending the Zoning Ordinance of the City of Brookings and pertaining to Small Wind Energy Conversion Systems (SWECS) for the purposes of administration of the Zoning Ordinance. Action: Open & Close Public Hearing, Motion to Approve, Roll Call 14. Public hearing and action on the Airport Dual-Track Site Selection. Action: Open & Close Public Hearing, Motion to Approve, Roll Call 15. Public Hearing and Action on Resolution No. 108-10, a Resolution of Intent to Lease Real Property (South Dakota Ag Experiment Station – Airport hayland). Action: Open & Close Public Hearing, Motion to Approve, Roll Call 2 3 16. Public Hearing and Action on Resolution No. 109-10, a Resolution of Intent to Lease Real Property (South Dakota Foundation Seeds – Airport cropland) Action: Open & Close Public Hearing, Motion to Approve, Roll Call Other Business 17. Action on Resolution No. 110-10, establishing $75.00 per special meeting Council Stipend. Action: Motion to Approve, Request Public Comment, Roll Call 18. Discussion and action on the City/County Building Construction Budget. Action: Motion to remove from table Motion to Approve, Request Public Comment, Roll Call 19. Action on City Manager Compensation Package. Action: Motion to Approve, Request Public Comment, Roll Call 20. Adjourn. Brookings City Council Tim Reed, Mayor Mike Bartley, Deputy Mayor & Council Member Council Members Tom Bezdichek, John Kubal, Mike McClemans, Jael Thorpe, Keith Corbett 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 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 December 14, 2010 4:00 p.m. Executive Session for Personnel Matters. SDCL 1-25-2. Executive or closed meetings. Executive or closed meetings may be held for the sole purpose of: 1. Discussing the qualifications, competence, performance, character or fitness of any public officer or employee or prospective public officer or employee. The term “employee” does not include any independent contractors; 2. Discussing the expulsion, suspension, discipline, assignment of or the educational program of a student; 3. Consulting with legal counsel or reviewing communications from legal counsel about proposed or pending litigation or contractual matters; 4. Discussing marketing or pricing strategies by a board or commission of a business owned by the state or any of its political subdivisions, where public discussions would be harmful to the competitive position of the business. However, any official action concerning such matters shall be made at an open official meeting. An executive or closed meeting shall be held only upon a majority vote of the members of such body present and voting, and discussion during the closed meeting is restricted to the purpose specified in the closure motion. Nothing in 1-25-1 or this section may be construed to prevent an executive or closed meeting if the federal or state Constitution or the federal or state statutes require or permit it. A violation of this section is a Class 2 misdemeanor. Action: Motion to enter executive session – voice vote Motion to leave executive session – voice vote 4 City Council Packet December 14, 2010 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 1. Update on Northwest Quadrant Mayor Reed will provide an update on South Dakota State University’s “Northwest Quadrant” project. The update is in response to Council action at the November 9th meeting. 5 Overview and Status Report SDSU Residential Life and Dining Services Master Plan Reissued December 7, 2010 Overview of Master Plan The SDSU Residential Life and Dining Services Master Plan was approved by the Board of Regents in October 2008. Since the baseline primary data underlying the plan is from 2007, these data are being refreshed. The Master Plan’s central theme is to create two student neighborhoods — a traditional freshmen/sophomore area on the southeast side of campus and an upper-division (junior, senior, graduate, and transfer students) on the northwest corner. Appropriate dining operations to meet the unique needs of each neighborhood are also elements of the plan. To create this planning framework, a housing self-study was conducted, main campus enrollment trends were analyzed, two consultants with unique domain expertise in university housing and associated services were engaged, and multiple market analyses using a plethora of methods including student surveys and focus groups were completed. Plan implementation calls for three phases. The campus map identifies the southeast and northwest neighborhoods. Student Neighborhoods, South Dakota State University The planning process clearly demonstrated the ―one-size-fits-all approach‖ to student housing is obsolete. Student housing demand is best met by offering choices differentiated by amenity and service levels and associated price points. Thus, the plan identified a need for differential rates associated with variation in characteristics of the housing (put another way, differential costs driven by the level of amenities) to provide students with choices in both neighborhoods. Market analyses conducted as part of the planning process identified amenities preferred by freshmen and sophomores for the southeast neighborhood. Those preferred amenities on each floor include: a full kitchen, study space, laundry, social space, natural light, and privacy in bathrooms. Another attribute strongly preferred by freshmen and sophomores is proximity to academic buildings and other core facilities such as the Wellness Center and Union. 2 An emerging demand identified during the planning process was on- or near-campus housing for upper- division and graduate students, an underserved population in today’s residence life model. A survey of upper-division students showed 79% of the respondents (970 of 1,277) wanted an opportunity to spend their entire undergraduate careers in residence on-campus in a neighborhood that met their needs. While convenience to campus was the most preferred attribute, older students preferred a more private lifestyle experience and had little interest in the socially-focused routines characteristic of their undergraduate on- campus residential life experience. The plan calls for establishing an upper-division neighborhood in the northwest corner of campus to meet the demands of juniors, seniors, and graduate students for on-campus housing. Market analyses identified this segment generally having strong preferences for independent lifestyle, a private kitchen, larger bedrooms, and private or semi-private bathroom. A small sub-segment of the upper-division student market indicated an interest in a low-cost, minimal-amenity, single-room housing option. Upper-division and graduate students expressing the strongest preference for this option can be described as intently focused on academics. The dining component of the Master Plan highlights the importance of aligning appropriate dining services in each student neighborhood for the respective market segments. The plan identified a need for additional food-service capacity on the southeast side of campus to accommodate the growth planned for this freshman and sophomore neighborhood. In the northwest neighborhood, food services need to be configured and reconfigured responding to the demands of upper-division students. The market analyses and the specialized food-service consultant emphasized the importance of location, recommending food services be conveniently located within each of the respective neighborhoods to best serve the market segments. Market surveys showed a preference for upscale convenience stores, national brands and menu choice, including lighter healthy items. Enrollment Update Total enrollment growth at South Dakota State University has averaged 3.7% per year 2000 to 2010, reaching a total of 12,816 in 2010. Enrollment and enrollment growth on the Brookings campus has to be the base for residential life and dining services planning. In the spring of 2008, as part of the University’s ongoing strategic planning process, Brookings campus enrollment modeling was initiated. The model developed is the Comfort Enrollment Model. The baseline for the model is fall 2007 enrollment. The model is used to forecast Brookings campus and total enrollment through fall 2012. The model was developed from enrollment trends for the past five years, an evaluation of markets and market share, current and projected retention and graduation rates, and an assessment of academic program capacity. This model yields an enrollment increase of 18.85%, or an increase of 1,827 students, on the Brookings campus from fall 2007 to fall 2012. Undergraduate and graduate enrollments are predicted to increase by 16.8% (1,416 students) and 32.5% (411), respectively. The following chart shows the Brookings campus actual enrollment for 2007, 2008, and 2009, an estimate for 2010, and projections from the model for 2011 and 2012. 3 To support the planning process, Brookings campus enrollment is divided into freshman/sophomore students required by policy to live on-campus, and freshmen/sophomores, transfers, juniors, seniors, and graduate students who are eligible to live off-campus. This information is provided in Table 1. Table 1: Total Brookings Campus Enrollment On- and Off-Campus Housing Arrangements by Student Class Level 2008, 2009 Actuals; 2010 Estimate; and 2011 & 2012 Projections ACTUALS ESTIMATE PROJECTIONS CLASSIFICATION 2008 2009 2010 2011 2012 Required to live on-campus Freshmen/Sophomores Subtotal 3,418 3,229 3,680 3,784 3,896 Eligible to live off-campus Freshmen/Sophomores* 736 959 742 810 835 Transfer Students 788 772 826 827 827 Juniors 1,674 1,680 1,744 1,836 1,929 Seniors 2,045 2,053 2,132 2,245 2,357 Graduate Students 1,347 1,579 1,604 1,643 1,674 Subtotal 6,590 7,043 7,048 7,361 7,622 Total 10,008 10,272 10,728 11,145 11,518 *Includes freshmen/sophomores released from on-campus living requirement by policy & by waiver and non-degree students. Brookings campus enrollment projections support implementing the University’s Residential Life and Dining Services Master Plan. Research has shown that the availability of appropriate living environments is significantly and positively related to student success. A strategic goal of the University is to increase the retention rate to above 80% and the graduation rate to 60% or higher. Implementing the Master Plan 9,691 10,008 10,272 10,728 11,145 11,518 8000 8500 9000 9500 10000 10500 11000 11500 12000 2007 2008 2009 2010 2011 2012 Total Enrollment Brookings Campus 2007, 2008, 2009 Actuals; 2010 Estimate; 2011 & 2012 Projections Actuals Projections Estimate 4 is a key to enhancing student success, increasing the retention rate, and driving the graduation rate above 60%. The number of transfer students enrolled on the Brookings campus averaged 766 over the five years, 2006 to 2010, and topped at 826 in fall 2010. Research has shown that on-campus housing is a powerful tool to help transfer students engage in campus life and achieve a higher level of academic success. Implementing the Master Plan provides an on-campus option for transfer students. A strategic goal of the University is to foster science- and technology-based economic development. This requires faculty to continue to compete successfully for external grants and contracts to fund research programs and to successfully recruit graduate students into graduate assistantships. Researchers attracted more than $66 million in awards in 2009-2010, and total research spending was approximately $67 million during the same time. In fall 2010, 580 graduate students were on assistantships, 360 of those on research assistantships. The number of Ph.D. students grew 24%, to 286, from 2008 to 2010. Convenient housing is an important factor considered by graduate students when selecting an institution. Implementing the Master Plan provides another on-campus option for graduate students and makes the University more competitive. Implementation of Phase I The completion of Phase I of the Residential Life and Dining Services Master Plan in 2010-2011 included the construction of the Jackrabbit Village, reprogramming Waneta Hall for upper-division students and expanding dining services in the southeast neighborhood. The 411-bed Jackrabbit Village for freshmen/sophomores filled in three days. To provide students with a choice in housing prices based on the amenities offered, the following differential rate structure was implemented in 2010-2011: a base-hall rate ($1,287), an upgraded-hall rate ($1,418), and a premium-hall rate ($1,926 to $1,957). The differential rate structure was very positively received. Waneta Hall was reprogrammed for single-occupancy rooms for upper-division students for fall 2010. Unfortunately, demand from freshmen forced the discontinuation of single-occupancy rooms. For fall 2010, 52 juniors, seniors and graduate students selected single-occupancy rooms before the discontinuation. A waiting list of 105 students was established. Because of the large freshman demand, the 105 students on the waiting list were notified in early May 2010 that single-occupancy rooms would not be available to them. As the two neighborhoods began to be established for 2010, evidence from housing applications for 2010- 2011 showed the strong preference of freshmen/sophomores for the southeast neighborhood and the strong preference of upper-division students for the northwest neighborhood. Freshmen/sophomores were more than three times as likely to request housing in the southeast neighborhood. Conversely, upper- division students expressed a preference for the northwest neighborhood. Table 2 shows the fall 2010 occupancy in each residential facility compared to the capacity of each. The table shows Waneta Hall with 160 sophomores in double-occupancy rooms and 52 single-occupancy rooms for upper division/graduate students. The Annex has been programmed for single occupancy by sophomores for some time. In 2010, total number of residents (demand) exceeds capacity (supply) by 5 8.97% (303 beds). Not considering any enrollment growth, additional on-campus supply is needed to accommodate current demand to achieve equilibrium. Table 2: Residential Facilities Capacity and Fall, 2010 Occupancy Required to live on-campus (Freshmen/Sophomores) Facility Tenants Capacity % of Capacity Annex (singles sophomores) 49 52 94.23 Berg/Bailey (apartments sophomores) 55 0 NA** Binnewies 512 496 103.23 Brown 404 390 103.58 Caldwell 300 300 100 Hansen 451 436 101.57 Jackrabbit Village 425 411 103.4 Mathews 370 358 103.35 Pierson 458 446 102.69 Waneta 160 160 100.00 Young 496 488 101.63 TOTAL 3,680* 3,537 104.04 Eligible to live off-campus (Upper-class/Grad Students) Facility Tenants Capacity % of Capacity Berg/Bailey (apartments) 279 279 100.00 Family Student Housing (apartments) 107 88 121.59 Waneta (singles) 52 52 100.00 TOTAL 438 419 104.53 *This includes a dayroom occupancy of 143; Waneta partially reverted to double occupancy w/160 freshmen/sophomores; Occupancy 303 > Capacity. Implementation of Phase II Completion of Phase I of the Residential Life and Dinning Services Master Plan began to establish two neighborhoods focused on two distinct market segments – freshmen/sophomores and upper- division/graduate students, respectively, in a southeast neighborhood and a northwest neighborhood. Phase II calls for transferring the freshman and sophomore housing capacity to the southeast neighborhood and adding to this capacity at this location so supply meets current demand. In the northwest neighborhood, additional single-occupancy rooms and an upscale contemporary-style apartment option will address the demands from upper-division/graduate students. Based on fall 2010 enrollment, an additional supply of 739 new beds is needed to meet the current demand from freshmen and sophomores in the southeast neighborhood and establish equilibrium. To mitigate the risk of an unforeseen decline in enrollment, the recommendation for Phase II is an increase of 500 new beds in the southeast neighborhood for freshmen and sophomores. 6 To implement Phase II in the northwest neighborhood, 350 single-occupancy rooms will be available for upper-division students — 218 and 80 rooms in Hansen and Waneta Halls, respectively, will be added to the 52 rooms in Waneta Hall deployed in 2010 as single-occupancy rooms for upper-division students. The 52 rooms in the Annex occupied by sophomores will continue. Of the 350 single-occupancy rooms, 187 would be reserved for academically strong sophomores (taking demand pressure off of the southeast neighborhood) and 163 would be allocated to upper-division/graduate students. The Berg/Bailey apartments would accommodate 320 upper-division students with no sophomores in these facilities as in 2010. (In 2010, 55 sophomores are in the apartments because of capacity limitations in other halls.) The proposed upscale, private, contemporary-style apartment would be configured and sized to meet market demand via a request for proposal (RFP) process. When completed, this apartment would provide an additional on-campus option for the upper-division/graduate student market segment. City Council Packet December 14, 2010 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. Swiftel Center Topics: Pursuant to Council direction from the Special Policy Review Meeting on September 15, 2010, the City Council requested additional review of policy issues related to the city-owned Swiftel Center to include the following: • Naming rights policy and procedures • Revenue generation • Economic impact indicator data methods • Capital improvement plan 12 Swiftel Center Fund Funding Summary 2011 2012 2013 2014 2015 75% Sales & Use Tax $316,500 $1,141,000 $262,500 $118,500 $118,000 Grand Total $316,500 $1,141,000 $262,500 $118,500 $118,000 Classification Swiftel Center Building & Structures 2011 2012 2013 2014 2015 Banquet Room Lighting System $10,000 Box Office Remodeling $20,000 Carpeting $35,000 Catwalk to OH Door/Fall Protection $75,000 Concrete Loading Area $25,000 Corridor Restroom Area $40,000 Entrance Sidewalk $15,000 Holding Barn Block Overhead Doors $10,000 Phase 1 & 2 of Hoop Building $25,000 $25,000 Lawn Irrigation – Phase II $7,500 Lobby Vestibule $80,000 Northeast Driveway $30,000 Parking Lot Lights $30,000 Radiant Heaters in Arena hallways $8,000 Storage Addition/Green Rooms $800,000 Tile Lobby/Concourse 73,500 Total Facilities $ 143,000 $820,000 $222,500 $113,500 $10,000 Equipment A/V Equipment $5,000 $5,000 Assisted Listening Devices $7,500 Banquet Chairs $30,000 Computer Upgrades $5,000 $5,000 $5,000 $5,000 $5,000 Crowd Control Equipment $5,000 Dance Floor $7,000 Emergency Generator $250,000 Food & Beverage Equipment $15,000 $10,000 Horse Stalls $6,000 $6,000 Lull $25,000 Pick Up $15,000 Portable Radios $7,500 $7,500 Recycling Receptacles $10,000 Scissor Lift $30,000 Scrubber-Rider $25,000 Skid Steer $30,000 Tractor $10,000 Trade Show Equipment $10,000 Utility Kart – Cushman $6,000 Total Equipment $123,500 $321,000 $10,000 $5,000 $88,000 Maintenance Concrete Sealing $20,000 Retractable Riser Repair $50,000 Roof Repairs $20,000 Water Heaters $10,000 Total Equipment $50,000 $30,000 $20,000 Grand Total $316,500 $1,141,000 $262,500 $118,500 $118,000 Note: In 2014 there are capital improvements to the grounds and the facility totaling $225,500 that would be included in the expansion and not an additional expense. 2011 $75,000 Fall Protection System and Catwalk Install a fall protection system and catwalk to the North overhead door. Employees currently scoot across the steel using harnesses. 2011 & 2013 $50,000 Hoop Building The hoop building would be used for dirt storage. The dirt used for events in the building needs to be dry. This building would allow the dirt to be covered and dry. Dirt is put in the building 6 to 10 times a year for various events. The building would be built by the substation in two phases: 1) concrete foundation in 2011, and 2) roof in 2013. Tarps would be used until the roof is installed. 2011 $8,000 Building Maintenance Install radiant heaters in the east and west arena hallways. During the colder months of the year, the arena is heated to warm the hallways. Heating only the hallways would result in cost savings over heating the arena when there are events in the meeting rooms and not the arena. 2011 $30,000 Banquet chairs. Purchase 400 banquet chairs. The Swiftel Center currently has 1,000 chairs which are used for both meeting and arena events. 2011 $5,000 Equipment Purchase Purchase additional equipment for crowd control. This equipment is used for directing the crowd at various events. The Swiftel Center currently has 10 of these. 2011 & 2012 $25,000 Equipment Purchase Purchase food and beverage equipment and remodel the Arena Concessions Area. This would allow a greater variety of items offered, such as pizza, etc. 2011 & 2012 $12,000 Portable Horse Stalls There are two more years of payments on the portable horse stalls. 2011 & 2012 $15,000 Equipment Purchase Purchase 12 additional hand-held radios. The Swiftel Center currently has 42 radios. More radios are required covered for adequate staff coverage of larger events. 2011 $10,000 Equipment Purchase Purchase additional recycling receptacles. The Swiftel Center purchased 31 in 2010. However, 60 are needed for adequate coverage of the building. The old receptacles would be used for trash, with the new ones for recycleable waste only. The Swiftel Center currently spends $800 per month for garbage collection. Recycling would dramatically decrease the monthly garbage collection rate. 2011 $25,000 Equipment Purchase Purchase a larger Scrubber-Rider, but keep the current one as back-up. Two scrubber riders are necessary for quick turn over of the facility. There is no time for break downs when turning over building. 2011 $10,000 Equipment Purchase Purchase a used 80-horse tractor. The tractor would be used for working the ground for rodeos, horse shows and other events. The Swiftel Center has the equipment to work the ground, but are in need of a tractor to pull it. The Swiftel Center currently works with SDSU and the implement dealers for the use of a tractor, but it is getting more difficult to do so. The tractor would be housed in the holding barn between events. 2011 $10,000 Equipment Replacement Replace pipe and drape trade show equipment. 2011 $50,000 Equipment Repair The retractable riser which holds the red seats on the floor of the arena are in need of repair. These risers were 30 years old when they were purchased. They are safe and are being used for events, however, need to be repaired by a professional company. 2011 & 2014 $45,000 Carpeting & Lighting System Install improved banquet lighting system and new carpeting. This would be included in the expansion if approved. The industry standard is to replace carpeting every 5-7 years. This carpeting will be 13 years old at the time of replacement. The lighting improvement would replace existing fixtures and install dimmable fixtures. 2012 $20,000 Remodel Box Office Remodel the Box Office. Install shatter-proof glass and listening devices, where one talks into a speaker. This addresses current safety and customer service issues. 2012 $800,000 Additional Storage Construct a storage / green room addition to the west side of the building. This would be used for equipment storage for basketball hoops, staging equipment, chairs, etc. The dressing rooms / green rooms would then be used for touring shows. 2012 & 2013 $10,000 Equipment Upgrade Upgrade and replace A/V Equipment over a two-year period. 2012 $7,500 Equipment Purchase Purchase automated listening devices for the hearing impaired. This would follow ADA guidelines. 2012 $250,000 Equipment Purchase Purchase an emergency Generator. The Swiftel Center currently does not have a generator. The only back up power is a battery system, which would only last long enough to vacate people from the building. The Swiftel Center is designated as a Red Cross Shelter. Some funds will be applied from Emergency Management. 2012 $30,000 Equipment Replacement Replace Skid Steer. This piece of equipment was purchased used and has been had by the Swiftel Center for 5 years. It is a critical piece of equipment and is used approximately 180 days a year. 2013 $25,000 Concrete Repair The concrete in the loading area is in need of repair. 2013 $15,000 Sidewalk Repair The main entrance sidewalk is in need of repair. 2013 $7,500 Irrigation System Install lawn irrigation system on the west side of the Swiftel Center. This is where outdoor festivals / events are held. This would be Phase III of the Lawn Irrigation installation. Phase II will be completed in 2010. Phase IV includes the east side/County side of the Swiftel Center. 2013 $80,000 Vestibule Construct a lobby vestibule. This would improve the weatherization and heating and cooling of the building. 2013 $20,000 Roof Maintenance The roof over the current County Resource Center does not drain. Water and dirt collect on the roof, and grass will be found taking root. 2013 $10,000 Equipment Replacement Replace existing water heaters. The Swiftel Center has six water heaters; two of which are industrial sized. 2013 $30,000 Parking Lot Lights Install parking lot lights on the south end of the main parking lot. The north and middle sections of the main parking lot have lights. The south currently has no lighting and is inadequate. 2014 $30,000 NE Driveway Maintenance The northeast driveway needs maintenance. The driveway was paved with only 1 lift. The 2nd lift was planned, but didn’t occur due to budget constraints. 2014 $73,500 Replace flooring Replace Lobby/Concourse tile. This is a maintenance issue. 2015 $20,000 Concrete Maintenance The concrete in the building needs sealing. Sealing keeps the concrete from dusting and extends the useful life. 2015 $10,000 Holding Barn Doors Install holding barn doors. 2015 $7,000 Dance Floor Purchase additional dance floor tile. The Swiftel Center has received complaints the current dance floor is too small. 2015 $25,000 Equipment Purchase Purchase a Lull. This equipment is used to maneuver heavy items used for events. 015 $15,000 Vehicle Replacement 2 Replace 1997 Ford F150 with a used pickup. 015 $30,000 Equipment Purchase 2 Purchase a Scissor Lift. The lift is more efficient and safer to use an a ladder. The scissor lift reaches 28 feet. 015 $6,000 Equipment Purchase th 2 Purchase a used Utility Cushman Cart. This equipment is used during events t move items and people. The o Swiftel Center currently borrows a Parks Dept. tility Cart when available. Total 5-Year Capital Improvements: $1,956,500 $113,500 U Funding Source 2011 2012 2013 2014 2015 Facilities 75% Sales & Use Tax $143,000 $820,000 $222,500 $10,000 Equipment 75% Sales & Use Tax $123,500 $321,000 $5,000 $10,000 $88,000 Maintenance Tax 75% Sales & Use $50,000 $30,000 $20,000 Annual Total $316,500 $1,141,000 $262,500 $118,500 $118,000 City Council Packet December 14, 2010 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 3. Review of Charter Revision Process. To: Mayor and Council Members, Jeff Weldon, City Manager and Shari Thornes, City Clerk From: Steven J. Britzman, City Attorney Date: December 8, 2010 Re: Charter Amendment Procedure Article 8 of our City Charter provides several methods the City Council can use to amend the City Charter: 1. By a proposed Ordinance adopted by the City Council, however Sections 1.04 (Limitations pertaining to creation of municipal income taxes, issuing more liquor licenses than permitted by State law, permitting gaming in excess of that permitted by State law, and permitting more debt than authorized by State law), 1.05 (New Taxes), 2.01(General Powers and Duties of the City Council), 2.02 (Composition, Eligibility, Terms, Powers and Duties of the City Council), 2.03 (Powers and Duties of the Mayor) and 2.04 (Compensation and expenses of the City Council) cannot be amended by ordinance; 2. By a report of a Charter Commission created by ordinance. We previously used this procedure and a copy of that ordinance follows this memo. Once either of the foregoing procedures is completed, an Election on the proposed amendments to the City Charter will then be held and the amendment is thereby submitted to the voters of the City. Under Charter Section 8.03, if a majority of the voters of the City approve it, the amendment becomes effective 30 days after the canvas of votes. The Charter does provide that a group of 15 petitioners can circulate a petition to change the Charter, but this procedure would be outside of the Council’s control. Finally, the Charter also provides that it may be amended “as provided by law”, however, South Dakota law does not currently supply 34 City Council Packet December 14, 2010 any specific procedures for charter amendments, so this provision provides no specific procedures for amendment of the Charter. In conclusion, the Charter Commission has the authority to change any and all aspects of the City Charter without any limitation, other than the final proposed Amendment is subject to approval by the voters. The previous Ordinance establishing a Charter Commission could be used as a model to establish a new Charter Commission. The following Ordinance expired following the completion of its Charter Commission Report. ORDINANCE NO. 12-02 AN ORDINANCE ESTABLISHING A CHARTER COMMISSION, PURSUANT TO ARTICLE VIII, SECTION 8.01 (c) OF THE BROOKINGS CITY CHARTER, FOR THE CITY OF BROOKINGS, SOUTH DAKOTA. BE IT ORDAINED AND ENACTED BY THE COUNCIL OF THE CITY OF BROOKINGS, STATE OF SOUTH DAKOTA, AS FOLLOWS: I. Chapter 2, Article V., Division 4. Charter Commission Sec. 2-120. Creation, purpose. The Brookings City Charter Commission (hereafter also referred to as the "commission") is hereby created for the purposes of reviewing the Brookings City Charter and proposing amendments to the Brookings City Charter by a Report to the city council. Sec. 2-121. Independence, Report. The commission may receive input from any person including the city council, but shall work independently of the city council and its members, and accordingly, its report to the city council shall solely represent the product of its study and work. The Report of the commission shall include any proposed amendments to the City Charter, which shall be in a form sufficient to submit to the voters of the City pursuant to Section 8.02 of the Brookings City Charter. Sec. 2-122. Composition, qualification and manner of selection of members. The Brookings City Charter Commission shall consist of fifteen (15) members. Members shall be resident voters of the city, appointed by the mayor, subject to the approval of the city council. Sec. 2-123. Terms - vacancies - compensation of members. The members of the Brookings City Charter Commission shall serve without compensation for a term to conclude following the submission of a Report to the city council as provided in 35 City Council Packet December 14, 2010 Article VIII, Section 8.01 (c) of the Brookings City Charter. Vacancies on the commission shall be appointed by the mayor and approved by the city council. Sec. 2-124. Quorum --organization. A quorum shall consist of eight members. The commission shall convene and shall organize by electing a chairperson from among its members for a term to terminate upon completion of the election, if necessary, and any further work as directed by the city council. The city clerk shall serve as staff liaison, but shall not be a member of the commission. The commission shall adopt, amend, or rescind such rules as shall be necessary for the conduct of its meetings. Sec. 2-125. Legal assistance to commission. The city attorney shall render such legal assistance and counsel to the commission as may from time to time be required. Sec. 2-126. Funding. The commission shall submit funding requests for items or services the commission requires in performing its work. Funding requests shall be reviewed and approved by the city manager. Sec. 2-127. Meetings of the commission - monthly report. The commission shall hold at least one (1) regular meeting each month and shall submit a monthly report to the city council of its proceedings and the progress of its work. Sec. 2-128. Removal for cause. The mayor, subject to approval of the city council and following public hearing, shall have the authority to remove any member of the commission for cause. Cause for removal shall be stated in writing and made a part of the record of such hearing. Sec. 2-129. Completion of commission report - termination. The commission, in the initial period following adoption of this ordinance, shall complete and submit its Report to the city council by July 31, 2002. Following the election, the commission shall terminate its activities unless the city council determines that the commission should continue its work. II. Any or all ordinances in conflict herewith are hereby repealed. FIRST READING: March 25, 2002 SECOND READING: April 8, 2002 PUBLISHED: April 12, 2002 CITY OF BROOKINGS, SOUTH DAKOTA ___________________________________ ATTEST: Virgil H. Herriott, Mayor Shari Thornes, City Clerk 36 City Council Packet December 14, 2010 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 4. City Council Member Ex-Officio Reports. Pursuant to council direction, “City Council Member Ex-Officio Reports” will be a standing agenda item at all Council Work Sessions. The Council Members that serve as Ex-Officio members on the Brookings Health System Board of Trustees and Utility Board will provide verbal reports regarding recent meetings they have attended. Brookings Municipal Utility Board: 1. Council Member Bezdichek 2. Council Member Corbett Brookings Health Systems Board: 1. Council Member Kubal 2. Council Member McClemans 37 City Council Packet December 14, 2010 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 5. Joint Powers Board Council Member’s Report. Pursuant to council direction, “Joint Powers Board City Member Updates” will be a standing agenda item at all Council Work Sessions. The Council Members serving on the Joint Powers Board will provide verbal updates regarding recent meetings they have attended. Mayor Tim Reed & Council Member Kubal 38 City Council Packet December 14, 2010 To: Mayor Reed and Council Members, Jeff Weldon, City Manager and Shari Thornes, City Clerk. From: Steven J. Britzman, City Attorney Date: December 8, 2010 Re: Joint Powers Board appointment procedure I reviewed the Joint Powers Agreement and the City Charter concerning appointment procedure to determine whether the Mayor can serve on the Joint Powers Board and how that appointment is made. The earlier appointments to the Joint Powers Board, I recall, were made by the Mayor without objection by the Council. The Mayor is not prohibited under the City Charter from appointing himself and can serve on the Joint Powers Board, as the Joint Powers Agreement does not limit who can serve, and the City and County are responsible for their own appointments. Furthermore, the Mayor could appoint himself to fill a Joint Powers Board position provided the Council consents to that appointment. If there is an objection, then a formal vote on the proposed appointment should occur. The Charter Provides: Section 2.03 – Mayor. The Mayor shall have the powers and duties as a Councilmember, including the power to vote, and in addition, shall preside at the meetings of the Council, represent the City in intergovernmental relationships, appoint with the advice and consent of the Council the members of citizen advisory boards, committees, and commissions, present an annual state of the City message, and perform other duties specified by the Council. The Mayor shall be recognized as head of the government for all ceremonial purposes and by the Governor for the purpose of military law. The Mayor shall have no administrative duties. The Council shall elect from among its members a Deputy Mayor who shall act as Mayor during the absence or the disability of the Mayor, and if a vacancy occurs shall become Mayor for the remainder of the unexpired term. 39 City Council Packet December 14, 2010 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 6. City Council member introduction of topics for future discussion. Any Council member may request discussion of any issue at a future meeting only. Items cannot be added for action at this meeting. A motion and second is required starting the issue, requested outcome, and time. A majority vote is required. 40 City Council Packet December 14, 2010 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 7. Council Invites & Obligations. Date Day Event & Brief Description Time Location / Town / Address / Directions December 28 Tuesday Council Meeting 6:00 p.m. Council Chambers January 11 Tuesday Council Meeting 5:00 p.m. Council Chambers January 19 Wednesday Brookings/SDSU Day at the Capital Pierre, SD January 19-20 Wednesday- Thursday 2011 Governor’s Conference on Tourism Pierre, SD January 25 Tuesday Council Meeting 5:00 p.m. Council Chambers February 1 Tuesday Rib Dinner with your Legislator Pierre, SD February 2 Wednesday Municipal Government Day Pierre, SD February 3 Thursday City Council Goal Setting Retreat TBD Swiftel Center February 8 Tuesday Council Meeting 5:00 p.m. Council Chambers February 22 Tuesday Council Meeting 5:00 p.m. Council Chambers March 8 Tuesday Council Meeting 5:00 p.m. Council Chambers March 12-16 Saturday- Wednesday NLC Congressional City Conference Washington, DC March 21-25 Monday- Friday Board of Equalization City Hall Meeting Room March 22 Tuesday Council Meeting 5:00 p.m. Council Chambers April 12 Tuesday Council Meeting 5:00 p.m. Council Chambers April 26 Tuesday Council Meeting 5:00 p.m. Council Chambers May 10 Tuesday Council Meeting 5:00 p.m. Council Chambers May 24 Tuesday Council Meeting 5:00 p.m. Council Chambers June 14 Tuesday Council Meeting 5:00 p.m. Council Chambers June 28 Tuesday Council Meeting 5:00 p.m. Council Chambers July 12 Tuesday Council Meeting 5:00 p.m. Council Chambers July 26 Tuesday Council Meeting 5:00 p.m. Council Chambers 41 City Council Packet December 14, 2010 42 Date Day Event & Brief Description Time Location / Town / Address / Directions August 9 Tuesday Council Meeting 5:00 p.m. Council Chambers August 23 Tuesday Council Meeting 5:00 p.m. Council Chambers September 13 Tuesday Council Meeting 5:00 p.m. Council Chambers September 27 Tuesday Council Meeting 5:00 p.m. Council Chambers October 4-7 Tuesday- Friday SDML Annual Conference Sioux Falls, SD October 11 Tuesday Council Meeting 5:00 p.m. Council Chambers October 25 Tuesday Council Meeting 5:00 p.m. Council Chambers November 8 Tuesday Council Meeting 5:00 p.m. Council Chambers November 8-12 Tuesday- Saturday NLC Congress of Cities Phoenix, AZ November 22 Tuesday Council Meeting 5:00 p.m. Council Chambers December 13 Tuesday Council Meeting 5:00 p.m. Council Chambers December 27 Tuesday Council Meeting 5:00 p.m. Council Chambers City Council Packet December 14, 2010 43 6:00 PM REGULAR MEETING 1. Call to order. 2. Pledge of Allegiance. 3. Record of Council Attendance. 4. Action to approve the following Consent Agenda Items: A. Action to approve the agenda. B. Action to approve the minutes. C. Consent of the City to allow the United Retirement Center to sign a “Leasehold Mortgage.” Action: Motion to Approve, Request Public Comment, Roll Call Open Forum/Presentations/Reports: 5. Open Forum. 6. SDSU Student Senate Report. 7. Feasibility report on re-location of South Fire Station. Contract Awards / Change Orders 8. Action on Resolution No. 105-10, authorizing Change Order on Landfill Trench project. Action: Motion to Approve, Request Public Comment, Roll Call 9. Action on Resolution No. 106-10, a Resolution Authorizing Final Change Order (CCO#1 Final) for 2010- 06STI Chip Seal Project, Topkote, Inc. Action: Motion to Approve, Request Public Comment, Roll Call First Readings 10. Ordinance No. 39-10: Budget Amendment #3: Authorizing a Supplemental Appropriation to the 2010 Budget for the purpose of providing for additional funds for the Operation of the City. Public Hearing – December 28th Alcohol Licenses 11. Public hearing and action on Temporary Liquor License requests for the Shamrock for events on December 31, 2010 and January 15 and 22, 2011. Action: Open & Close Public Hearing, Motion to Approve, Roll Call 12. Action on Resolution No. 107-10, a Resolution authorizing the City Manager to sign an Operating Agreement (Wine) for the Swiftel Center. Action: Motion to Approve, Request Public Comment, Roll Call Second Readings / Public Hearings 13. Ordinance No. 38-10: an Ordinance amending the Zoning Ordinance of the City of Brookings and pertaining to Small Wind Energy Conversion Systems (SWECS) for the purposes of administration of the Zoning Ordinance. Action: Open & Close Public Hearing, Motion to Approve, Roll Call 14. Public hearing and action on the Airport Dual-Track Site Selection. Action: Open & Close Public Hearing, Motion to Approve, Roll Call 15. Public Hearing and Action on Resolution No. 108-10, a Resolution of Intent to Lease Real Property (South Dakota Ag Experiment Station – Airport hayland). Action: Open & Close Public Hearing, Motion to Approve, Roll Call 16. Public Hearing and Action on Resolution No. 109-10, a Resolution of Intent to Lease Real Property (South Dakota Foundation Seeds – Airport cropland) Action: Open & Close Public Hearing, Motion to Approve, Roll Call Other Business 17. Action on Resolution No. 110-10, establishing $75.00 per special meeting Council Stipend. Action: Motion to Approve, Request Public Comment, Roll Call 18. Discussion and action on the City/County Building Construction Budget. Action: Motion to remove from table Motion to Approve, Request Public Comment, Roll Call 19. Action on City Manager Compensation Package. Action: Motion to Approve, Request Public Comment, Roll Call 20. Adjourn. City Council Packet December 14, 2010 CONSENT AGENDA #4 4. Action to approve the following Consent Agenda Items * A. Action to approve the agenda. B. Action to approve the minutes. C. Consent of the City to allow the United Retirement Center to sign a “Leasehold Mortgage.” *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 44 City Council Packet December 14, 2010 CONSENT AGENDA #4 B. Action to approve City Council Minutes. The draft November 23rd Brookings City Council minutes are enclosed for Council review and approval. 45 City Council Packet December 14, 2010 Brookings City Council November 23, 2010 (unapproved) The Brookings City Council held a meeting on Tuesday, November 23, 2010 at 5:00 p.m., at City Hall with the following members present: Mayor Tim Reed, Council Members John Kubal, Keith Corbett, Mike McClemans, Tom Bezdichek, Mike Bartley and Jael Thorpe. City Manager Jeff Weldon, City Attorney Steve Britzman and Administrative Assistant Laurie Carruthers were also present. Economic Development Topics. The Council reviewed steps six through ten of the “The Role of Local Elected Officials in Economic Development,” which Mayor Reed received at a National League of Cities Conference earlier this year. It provides communities and local economic development agencies with 10 basic steps in developing an economic development strategy. The first five were discussed at the October 26th Council Meeting. Al Heuton reviewed and commented on the BEDC’s role in the steps with the Council. Ex-Officio Reports. Corbett advised at the November 22nd Utility Board meeting the bills were approved, and there is nothing else to report at this time. Kubal noted the Brookings Health System Board of Trustees meeting was concurrent with the Council Meeting due to the holiday. They will report at the next meeting. Joint Powers Board Update. Kubal noted discussion of the Government Center is on the agenda. Bartley advised the Joint Powers Board will meet on November 24, 2010. 6:00 P.M. REGULAR MEETING. Consent Agenda. Reed removed item C Surplus Real Estate from the Consent Agenda and moved to 7.A. on the Agenda. A motion was made by Kubal, seconded by Corbett, to approve the amended Consent Agenda as follows: A. Action to approve the agenda. B. Action to approve the February 23rd and November 9th City Council Meeting minutes. C. Action to schedule a special City Council Goal Setting Retreat for February 3, 2010. On the motion, all present voted yes; motion carried. 2010 Strategic Plan Update by City Manager. 1) Airport Site Selection Following the approval of the Environmental Assessment (EA) by the Federal Aviation Commission (FAA) on the dual-track site selection process, the City Council will need to determine the future of the Brookings Municipal Airport (BKX). The dual-track site selection considers (A) a runway re-alignment leaving the airport at the current location or (B) re- location of the airport to a site located in Trenton Township. Action Steps: -Receive approval from the FAA of the EA. -Schedule and hold the required 45-day comment period on the EA. -Schedule and hold optional public open houses or other hearings on the EA. -Conduct the FAA-required public hearing on the EA. -Airport Board makes recommendation to City Council on preferred site. 46 City Council Packet December 14, 2010 -City Council makes a final decision on preferred site. -Staff begins preparations for Airport Layout Plan (ALP) on selected site. UPDATE: The final site selection could be completed by year-end if the Council so desires. A possible decision could be made at a December meeting. All of the above action steps have been completed except for the initiation of the Airport Layout Plan (ALP) on the selected site. This step could have been initiated if the EA would have been approved by the FAA sooner. 2) 34th Avenue/20th Street Improvement Project This is a major street project involving the upgrade of 34th Avenue from Prince Drive to the Elkton/Sinai exit of Interstate-29. It includes the extension of 20th Street from 22nd Avenue east with an I-29 overpass to connect with 34th Avenue. This project will greatly improve vehicular/truck traffic and safety along the eastern industrial sector of Brookings while providing an alternative “ring route” for commuter traffic lessening the traffic burden on Highway 14 and I-29 exit 132. Action Steps: -Undertake/complete the DOT comprehensive city-wide transportation study. -Continue to update the informational brochure describing the project. -Continue to work with stakeholders, build stakeholder interest in the project. -Continue to lobby state and federal policy-makers about the project. -Plan for the financing and construction of Phase II of the project. UPDATE: Recognized as a multi-year project, all action steps above have been completed or are in progress. Phase I of the construction project (re-construction of 34th Avenue from Hwy 14 to Prince Dr.) has been completed. The comprehensive city-wide transportation plan has been initiated and will be completed sometime during mid-2011. Public support and lobbying for the project continues. Communications with state legislators, federal legislators, and state transportation officials is on-going. The final action step for Phase II was not started pending the outcome of the transportation plan but it is expected to be an action step for next year. 3) Swiftel Expansion Project Decision Analysis This project proposes to expand and modify the Swiftel Event Center with a $7-8 million improvement project by converting the existing meeting facilities into a comprehensive and expanded conference/meeting facility. The project will require the adjacent development of a hotel. Action Steps: -Identify, negotiate, and develop multiple options with private hoteliers for hotel development. -Analyze the options for hotel development. --Select the best option. --Commence plans for construction. -OR- -Reject all hotel options and terminate the expansion project. -Consider upgrade/improvement needs of the facility without the conference center. UPDATE: Efforts to attract a hotel were underway but had not yet produced any viable options by the time the City Council cancelled the project and removed it from the strategic plan. As a result, the third action step was executed. The fourth action step of considering upgrade improvements was done and continues in conjunction with the annual capital improvement process in a scaled-back scenario. 4) Construction of City/County Government Center This project involves the construction of a joint administrative government center for city and county functions located on Third Street between Fifth and Sixth Avenues. 47 City Council Packet December 14, 2010 Action Steps: -Complete property acquisition process closing on properties by June 1. -Contract with architect. -Contract with construction manager. -Develop preliminary plan for Police Dept. modifications to City Hall. -Adopt Joint Powers Agreement; establish JP Board. -Initiate Historic Review Case Study on site. -Contract with demolition contractor for site clearance and demolition by July 1. -Undertake Schematic Design (SD) architectural phase. -Hold public open houses and solicit community input on exterior schematic design. -Undertake Design Development (DD) architectural phase. -Undertake Construction Document (CD) architectural phase. -Advertise for bids. (depends upon adopted schedule) UPDATE: All action steps of this goal were completed except for the last two, development of construction documents and advertising for bids. These items will be undertaken in 2011due to the schedule and timing of previous steps. Tier 2 Construction Projects A) Main Avenue Railroad Safety Crossing Improvement Project Install crossing gates and other safety improvements on the DM & E/CP railroad crossing at Main Avenue. This is the first year of a phased, multi-year plan to install safety enhancements at all railroad crossings with the State DOT at one per year. Long-range improvements will consider a grade separation or railroad by-pass. UPDATE: The planning/engineering work was initiated but installation of gates will be delayed until 2011 due to the unanticipated complexity of the project involving the realignment of Front Street. This item provides for DOT funding of subsequent crossing gates on a schedule of one per year. B) Storm Drainage Infrastructure Improvements Construction of Project Priorities #1 and #2 of the Storm Drainage Master Plan; undertake preliminary planning for Project Priority #3. UPDATE: Projects #1 and #2 were completed with the minor exception of some landscaping on Project #2 which was planned to extend into 2011. Engineering work began on Project #3 as well as project #4 which was not envisioned in this plan. C) Nature Park Improvement Project Initiate and complete the Master Plan for the Nature Park project with approvals from the ad hoc committee, Park & Recreation Board, and City Council. Depending upon plan completion date, initiate construction of Nature Park improvements. UPDATE: This project was completed and adopted. Design work has been initiated for Phase I construction. D) SDSU Innovation Campus Infrastructure Project Complete the street and utility improvement project at the Innovation Campus. UPDATE: This project was completed. Tier 3 Policy Development Projects (Prioritized in descending order) 1. Hospital governance and community health care alignment issues UPDATE: The Council discussed this issue several times but no specific policy initiatives have been advanced. Increased activity and financial reporting communication processes from BHS (as well as BMU) were put in place. 2. Re-packaging/updating of various economic development and related plans 48 City Council Packet December 14, 2010 UPDATE: The Council discussed this issue several times and conducted self-assessment of economic development initiatives with information provided by the NLC. BEDC continues to update and improve the integration of the various economic development plans. 3. Development plan for entry corridor improvements on 6th Street UPDATE: Detailed planning work has continued with the assistance of two landscape architects involving signature architectural features as well as signage at strategic locations. This project has been spearheaded by a community task force so it not exclusively a City project, nor has the City acted as the project manager. The task force is currently narrowing design considerations and working with DOT officials where state right-of-way is concerned. Construction could occur in 2011depending upon task force progress. 4. Capitalize on opportunities to purchase land for economic development UPDATE: This project was completed with the purchase of the Foster farm. The City’s current inventory of available land for commercial-industrial development includes the Weise Business Park, Svennes Industrial Park, Foster Industrial Park, and one remaining parcel in the Telkamp Industrial Park. In aggregate, these areas consist of 164 acres which should serve our market for many years to come. 5. Study feasibility of south fire station location to improve response time UPDATE: This staff analysis is nearing completion and a report will be presented to the City Council on December 14. 6. Neighborhood parking issues; action on ad hoc parking committee report UPDATE: This goal is the subject of a task force that has met many times during the year. They have advanced one ordinance regulating parking so far. 7. Community sustainability issues UPDATE: An ad hoc committee representing a broad cross-section of the community has held two meetings to help identify and define local sustainability issues with the end goal of creating a Brookings Sustainability Council. The group is scheduled to hold one additional meeting to review the draft Sustainability Council’s Charter document. Formal creation by ordinance and volunteer appointments are planned for early 2011. 8. Consideration of PAC II funding request UPDATE: This item was intentionally delayed by the Council until more financial information was determined relative to the cost of the airport solution. It remains a priority consideration. Action on Resolution No. 101-10, authorizing the Sale of Surplus Real Estate to Randy Kjelden and Lujeanne Kjelden removed from Consent Agenda 4.C. The City of Brookings held a public auction on November 4, 2010 at 1:00 p.m. to sell two surplus lots in the Telkamp Industrial Park. Notice of the auction was published twice in the Brookings Register, with the first on October 22nd and the second on October 29th. A motion was made by Bartley, seconded by McClemans, to approve. Discussion: McClemans commented the City only advertised the legal requirements and could have done more to gain visibility and money. Al Heuton of BEDC responded to questions regarding the land development and its use. Reed commented this is not something the City normally does and another attempt should be made. Britzman confirmed a super majority vote of 5/2 was needed to approve the land sale according to state law. No public comment was made. All present voted no; except Bartley voted yes; motion failed. Ordinance No. 38-10. A first reading was held on Ordinance No. 38-10: An Ordinance amending the Zoning Ordinance of the City of Brookings and pertaining to Small Wind Energy 49 City Council Packet December 14, 2010 Conversion Systems (SWECS) for the purposes of administration of the Zoning Ordinance. Public Hearing: December 14, 2010. Temporary Liquor License Request. A public hearing was held on a Temporary Liquor License requests for the Swiftel Center on December 3 and 10, 2010. No public comment was made. A motion was made by Corbett, seconded by Bezdichek, to approve. All present voted yes; motion carried. Resolution No. 102-10. A public hearing was held on Resolution N. 102-10, a request to vacate the remaining portion of 12th Avenue down to 8th Street (the south 150 feet of 12th Avenue between 8th Street and 9th Street abutting lots 8, 9, and 10, Block 4, Randi Peterson’s Addition and the west 85 feet of Lots 1, 2, and 3, Block 1, Wheaton Addition). Corbett announced he would abstain from the vote. No public comment was made. A motion was made by Kubal, seconded by Bezdichek, to approve Resolution No. 102-10. All present voted yes with the exception of Corbett abstaining; motion carried. Resolution No. 102-10 Street 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 south 150 feet of 12th Avenue between 8th Street and 9th Street abutting lots 8, 9, and 10, Block 4, Randi Peterson’s Addition and the west 85 feet of lots 1, 2, and 3, block 1, Wheaton Addition is hereby vacated subject to an easement agreement over the entire portion to be vacated. Ordinance No. 37-10. A public hearing was held on Ordinance No. 37-10, Budget Amendment #2, authorizing supplemental appropriation to the 2010 Budget for the purpose of providing for additional funds for the Operation of the City. No public comment was made. A motion was made by Bezdichek, seconded by Kubal, to approve Ordinance No. 37-10. All present voted yes; motion carried. Annual Liquor and Wine Renewals. A public hearing was held on the annual Liquor and Wine License renewals. No public comment was made. A motion was made by Corbett, seconded by McClemans, to approve the following renewals: Liquor (On-Sale): Applebee’s / Porter Apple Co. B Inc., 3001 LeFevre Dr.; BraVo’s Inc., 610 Medary Ave.; Cubby’s Sports Bar & Grill / GDT Inc., 307 Main Ave.; Danny’s / David Olson Inc., 703 Main Ave. So.; BPO Elks/ Brookings Lodge #1490, 516 4th St.; Fireside Inc., 2515 E. 6th St.; Jim’s Tap, 309 Main Ave.; Half Pint Enterprise Inc / Lantern Lounge, 303 3rd St.; 9 Bar Nightclub (Nine Inc.), 303 Main Ave.; Pavilion Inc., 2500 6th St.; Pheasant Café & Lounge, 726 Main Ave. So.; Prairie Lanes Inc., 722 Western Ave.; Ram & O’Hare’s Ent. LLC/The Ram, 327 Main Ave.; Ray’s Corner / Fergen Enterprises Inc., 401 Main Ave.; Skinner’s Pub Inc., 300 Main Ave.; B&L Sullivan Inc./Sully’s Irish Pub, 421 Main Ave.; GEO Dokken Post 2118/VFW, 520 Main Ave.; Brookings Municipal Liquor Store, 780 22nd Ave. So. Wine (On-Off Sale): BraVo’s Inc., 610 Medary Ave.; Brookings Municipal Liquor Store, 780 22nd Ave. So., Cottonwood Bistro, 1710 6th St.; Guadalajara, 1715 6th St., Suite F; Hy-Vee Food Store, 700 22nd Ave.; Old Sanctuary, 928 4th St.; The Shamrock, 50 City Council Packet December 14, 2010 1104 22nd Ave. So.; Skinner’s Pub Inc., 300 Main Ave., Taste of Europe, 1300 Main Ave. So., Wal-Mart Supercenter #1538, 2233 6th Street. All present voted yes; motion carried. Resolution No. 103-10. A motion was made by Thorpe, seconded by Kubal, to approve Resolution No. 103-10, authorizing the City Manager to sign an Agreement with the Brookings Outdoor Learning Center. No public comment was made. All present voted yes; motion carried. Resolution No. 103-10 A Resolution Authorizing the City Manager to sign a land lease with the Brookings Outdoor Learning Center for a portion of the Nature Park Whereas, the Brookings City Council indicated their intent to lease up to five (5) acres of city- owned land in the Nature Park to the Brookings Outdoor Learning Center (BOLC) on February 9, 2010,and Whereas, the City Council has determined the proposed building plans, programs, activities proposed by BOLC are consistent with the mission of the City of Brookings and will be beneficial to the community. Now, Therefore, Be It Resolved by the City Council of the City of Brookings that the Council supports the proposed project and the lease of said real estate with the BOLC, and that the City Manager for the City of Brookings is hereby authorized to execute the lease. LAND LEASE AGREEMENT BY AND BETWEEN THE CITY OF BROOKINGS AND THE BROOKINGS OUTDOOR LEARNING CENTER WHEREAS, The City owns property in the southeastern section of the City located east of 22nd Avenue and north of 32nd Street South (formerly used as the city landfill), which has been determined to be converted to a Nature Park; WHEREAS, the Brookings Outdoor Learning Center, a non profit organization; formed to provide youth, young adults, active seniors, sportsmen and outdoor enthusiasts of all ages with the education, skills and experiences related to the Dakota heritage, is requesting land for the placement of its multiuse facility; WHEREAS, The City finds the use of the property as proposed by the Brookings Outdoor Learning Center to be consistent and in concert with the intended use of the Nature Park. The Brookings City Council at its February 9, 2010 meeting, unanimously approved a motion dedicating up to five (5) acres of the Nature Park for a long term lease for the outdoor learning center and the final site to come back to the City Council for approval; NOW THEREFORE in consideration of mutual covenants herein contained, and other good and valuable consideration, the parties hereto mutually agree as follows: Section 1: Parties to this Agreement This agreement shall be between the City of Brookings, a South Dakota municipal corporation governed under the laws of the State of South Dakota (hereinafter referred to as CITY) and the Brookings Outdoor Learning Center, a non-profit corporation duly certified by the South Dakota Secretary of State (organizational ID # NS014254); (hereinafter referred to as BOLC). The President of the BOLC shall be the designated contact person for the BOLC and the Brookings City Manager shall be the designated contact person for the CITY. Section 2: Purpose of this Agreement 51 City Council Packet December 14, 2010 The CITY is desirous of providing property in the Nature Park, a public park amenity owned by the CITY to the BOLC for purposes of allowing the BOLC to construct, own, and operate a building for purposes of promoting youth and adult training and education including but not limited to active precision sports shooting of archery and firearms with passive recreational and other seasonal outdoor skill development activities. The CITY determines the mission, goals, and objectives of the BOLC are consistent with that of the CITY and the CITY’s facility to locate the BOLC’s building and programming at said site. Section 3: Location The BOLC’s building shall be located on a site within the Nature Park occupying an area no larger than five acres situated approximately adjacent to 22nd Avenue south of the softball complex parking lot as described in Exhibits A-1 and A-2. The specific location of the building shall be approved by the CITY prior to construction. Section 4: BOLC Building design The BOLC shall own the building through care and custody with a 99 year land lease with the CITY. The facility which shall include classrooms, indoor archery and firearms training facilities, office, storage, and mechanical space, and restrooms. The building’s exterior design, site improvements and landscaping shall be approved by the CITY, which approval shall not be unreasonably denied, and shall be designed so a public restroom is accessible, to the users of the Nature Park. The building shall conform to all applicable building and accessibility construction codes. The building shall be properly serviced with water, sanitary sewer, electricity, heating and cooling capabilities. Section 5: BOLC Building capital and operating expenses The building shall be constructed at the expense of the BOLC. The BOLC shall be responsible for all operating and maintenance costs of the building including but not limited to water, sewer, natural gas, electricity, telecommunications, and solid waste collection. BOLC shall be responsible for cleaning, repairs, general maintenance, and insurance of the building. BOLC agrees to keep the building in overall good appearance and functionally operating condition. The CITY shall be responsible for grounds maintenance, but have no obligation for capital construction costs or operating and maintenance costs of the building. Section 6: Rental rate for the land The BOLC shall pay the CITY a rental amount of $1 per year for good and valuable consideration and use of the land. At BOLC's option, the rental rate for the entire term of the Agreement may be prepaid. Section 7: Use of firearms training by City of Brookings For consideration of the rent described in Section 6, BOLC shall provide a discount in user fees to the Brookings Police Department for firearms training in the amount of 50% reduction of the individual membership rate and daily user fees for official Police functions for the duration of this agreement described in Section 20. Section 8: Parking lot CITY agrees to allow use of the existing Southbrook Softball Complex parking lot for users of the BOLC and the BOLC programming participants. CITY shall be responsible for maintenance and snow removal of the parking lot. Both parties agree the parking lot may be used by a multitude of users of the softball complex, the BOLC and the Nature Park; and neither party shall exclude access of the parking lot or any portion thereof from other parties unless it is by mutual agreement for specific events. CITY shall be responsible to provide vehicular access 52 City Council Packet December 14, 2010 from 22nd Avenue for ingress and egress to the BOLC and to provide adjacent parking pursuant to applicable CITY zoning regulations. Section 9: Shooting ranges Indoor and outdoor firearms range facilities shall be designed and constructed to the National Rifle Association Range Design and Development standards. Section 10: Programming The BOLC will provide a unique recreational site with programming focused on maximizing the strength of our natural amenities, which will encourage usage of the Nature Park and City park system, which is consistent with the Mission Statement of the Brookings Parks, Recreation and Forestry Department. BOLC, through cooperation with the Brookings Park and Recreation Department, may jointly plan, administer and implement programs to be offered to the benefit of the Brookings community in addition to those programs offered by the BOLC. Within the boundaries of the leased premises, the Brookings Park and Recreation Department may program outdoor activities including but not limited to mountain biking, hiking and cross- country skiing. Within the boundaries of the leased premises, the CITY shall have the unimpeded right; provided the exercise of such right does not interfere with the operation of the BOLC; to install trails, pathways and signage with the specific location determined by mutual agreement. Section 11: Insurance BOLC agrees to provide property insurance on the building and contents and a general liability insurance policy on the building and the leased land in the amounts of $1,000,000.00 per occurrence with $2,000,000.00 aggregate and agrees to name the CITY as an additional insured. BOLC agrees to keep the insurance in effect continuously without any lapse in coverage and to provide the CITY with evidence of such coverage annually. Insurance shall specifically provide for coverage associated with the discharge of firearms. BOLC agrees to indemnify and hold harmless the CITY, its employees, agents, or representatives from any and all liability. Section 12: Modifications/Amendments to this agreement Terms and conditions of this agreement shall be reviewed and mutually agreed to by both parties; and may be amended from time to time by mutual consent of the parties. Section 13: All other agreements null and void Any and all previous agreements between the parties are hereby declared null and void that this document is the only existing agreement between the parties. Section 14: Breach of contract; remedy process In the event either party wishes to find the other in default for a material violation of any portion of this agreement, the aggrieved party shall serve written notice to the other party, as designated in Section 1, the parties shall meet and attempt to resolve the matter. In the event such breach remains unresolved, the Parties shall hire a jointly agreed upon Professional Mediator in an attempt to resolve the dispute. If the professional mediator is unable to resolve the dispute, then both parties agree to submit the matter to a Dispute Review Board whose member shall consist of 2 members of the City Council, 2 members of the Park and Recreation Board, 2 officers of the BOLC and 1 mutually agreed upon citizen member-at-large. The decision of the Dispute Review Board shall be final. Section 15: Severability The provisions of this agreement shall be deemed severable. If any part of this agreement shall be held invalid, illegal, or unenforceable provision shall be reformed by such court as to give maximum legal effect to the intention of the parties as expressed therein. 53 City Council Packet December 14, 2010 Section 16: Authorization Each party represents, covenants, and warrants that the making and execution of this agreement and all other documents and instruments required or related hereunder have been fully authorized by the necessary corporate action of each such party and are valid, binding, enforceable obligations of each party in accordance with their respective terms. Section 17: Entire Agreement Only those terms in writing are enforceable. No other terms or oral promises not contained in this written agreement may be legally enforced and the parties hereto may change the terms of this agreement only by another written agreement or an amendment as provided in Section 12. Section 18: Binding effect This agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns. Section 19: Assignability/Transferability Neither party shall assign its rights or obligations under this agreement to a third party without the consent of the other party. Section 20: Duration This agreement shall be in effect for 99 years from the date of execution. Section 21: Timing The BOLC agrees to secure a building permit for the structure contemplated in Section 4 of this Agreement by January 1, 2013. In the event said building permit is not secured, this Agreement shall be null and void. Resolution No. 104-10. A motion was made by Corbett seconded by McClemans, to approve Resolution No. 104-10, establishing City of Brookings 2011 Delta Dental Insurance Premium Adjustment. No public comment was made. All present voted yes; motion carried. Resolution No. 104-10 Establishing Dental Insurance Monthly Contribution Rates for the City of Brookings Dental Insurance Plan Whereas, Be It Resolved, that the 2011 employee and employer contributions for the dental insurance plan be established as follows: CITY GENERAL & PUBLIC SAFETY EMPLOYEES Employer’s Share (75%) of Single Rate Employee’s 2011 Share TOTAL Employee Only $27.38 $9.12 $36.50 Employee/Spouse $27.38 $42.66 $70.04 Employee/Child(ren) $27.38 $44.62 $72.00 Family $27.38 $70.22 $97.60 Legal Services Agreement for 2011-2012. A motion was made by Bezdichek, seconded by McClemans to approve the Legal Services Agreement for 2011-2012 with Steven J. Britzman, Attorney-at-Law. No public comment was made. All present voted yes; motion carried. Legal Services Agreement THE CITY OF BROOKINGS AND STEVEN J. BRITZMAN, ATTORNEY AT LAW agree that the City of Brookings has appointed Steven J. Britzman to serve as City Attorney for a two (2) 54 City Council Packet December 14, 2010 year period, commencing January 1, 2011 and ending December 31, 2012, and the City of Brookings and Steven J. Britzman desire to set forth the terms of their Agreement concerning the provision of legal services by Steven J. Britzman as City Attorney as follows: 1. Performance of Legal Services Steven J. Britzman shall perform all legal services as provided in the "Scope of Services for City Attorney for City of Brookings" (the "Scope of Services"). A copy of the Scope of Services for City Attorney is attached hereto. Steven J. Britzman will perform all legal services which shall include representing the City in Magistrate Court in the enforcement of City Ordinances. 2. Insurance Coverage Steven J. Britzman shall maintain Attorneys Professional Liability coverage in the amount of One (1) million dollars ($1,000,000) per claim and One (1) million dollars ($1,000,000) aggregate during the term of this agreement. Steven J. Britzman shall be responsible to pay any deductible amount under the foregoing coverage. 3. Conflicts of Interest The parties to this Agreement understand that actual or perceived conflicts of interest are defined in great detail in the Rules of Professional Responsibility which govern attorneys and which are a part of the statutes of South Dakota. Accordingly, Steven J. Britzman shall follow the Rules of Professional Responsibility, immediately disclose to the City Council and City Manager any conflict or the appearance of a potential conflict, and resolve the issue to the satisfaction of the City of Brookings and the other client. 4. Compensation for Legal Services Steven J. Britzman agrees to provide all of the legal services provided in the Scope of Services, for a monthly sum from January 1, 2011 through December 31, 2011 of Five Thousand Eight Hundred Fifty-six and 51/100 ($5,856.51) Dollars, payable on the last day of the month. For the year beginning January 1, 2012 through December 31, 2012, Steven J. Britzman shall be paid a monthly sum of Six Thousand Ninety and 77/100 ($6,090.77) Dollars, payable on the last day of the month. The hourly rate for other legal services, including those set forth in Item 15 of the Scope of Services is $150.00 during the term of this Agreement. The legal services provided by Steven J. Britzman shall be performed as an independent contractor and Steven J. Britzman shall therefore pay all payroll and business expenses incurred in providing legal services to the City. 5. Expense Reimbursements, Meetings and Conferences In addition to the compensation for legal services during each year of this Agreement, the City will provide Two Thousand Five Hundred Dollars ($2,500.00) per year for membership in the International Municipal Attorneys Association (IMLA) (currently $600.00 per year) and for Conference registration, travel and lodging for the Annual Meeting of the International Municipal Lawyers Association which includes at least sixteen hours of continuing legal education. The City Attorney will also be reimbursed for out-of-pocket expenses when required to travel outside the City of Brookings to other meetings or to perform legal services, provided such travel is approved by the City Manager in advance of travel. 6. Legal Services not within the Scope of Services Steven J. Britzman shall first obtain approval of the City to perform any legal services excluded from the Scope of Services, however Steven J. Britzman and the City agree that it is appropriate for the City Attorney to be responsive to residents of the city, the media, other 55 City Council Packet December 14, 2010 municipal attorneys, the municipal league and other public officials where communication or an appropriate measure of assistance is in the best interest of the City. SCOPE OF SERVICES FOR CITY ATTORNEY FOR CITY OF BROOKINGS THE CITY ATTORNEY SHALL PERFORM THE FOLLOWING SERVICES: 1. Legal counsel shall attend all City Council meetings as the legal advisor for the Brookings City Council, unless the absence is due to vacation or illness or the subject matter does not require the assistance of counsel. 2. Provide all necessary legal consultation services, including oral and written opinions and research as requested by the Brookings City Council and the City Manager. 3. Provide legal assistance to the City’s Boards and Commissions, except the Utility Board and Hospital Board, as requested by the City Manager and City Council. 4. Provide legal representation to the City in litigation initiated against the City and by the City in circumstances where the City is not represented by legal counsel assigned by its insurance company. Legal representation in litigation must be authorized in each instance by the City Council and compensation shall be in addition to the monthly compensation as provided in Section 15. 5. Assist in the preparation and review of all contract agreements, resolutions, ordinances and other legal documents considered, adopted or endorsed by the City. 6. To maintain a working knowledge of Municipal Law on both the State and Federal level. 7. Provide legal representation for the City before administrative bodies upon special request by the City Council. 8. As requested, review all claims made against the City. 9. Confer with colleagues that specialize in areas of law to establish and verify a basis for legal proceedings; serve as a liaison between outside legal counsel and City Officials on specialized legal issues. 10. Prepare a monthly written report of legal services performed which includes a description of the service and the time required to perform the service. 11. Assist the City Clerk and the private sector firm in Ordinance Codification. 12. The City Attorney will be an advisor to the labor negotiating staff and will review labor contracts as required or requested. 13. Maintain professional awareness of current literature and changes in law and attending continuing legal education to ensure the most efficient, cost-effective, and accurate operation of the City Attorney’s Office. 14. Review proposed state legislation affecting the City and prepare or supervise the preparation of state legislation relating to municipal and city government matters as directed by the City Council. Consult with City Council, the City Manager and department heads in regard to such legislation and testify before legislative boards as requested. 15. The City Attorney’s basic fee does not include the following services: a. Litigation b. Appearance on behalf of the CITY before Courts or administrative bodies (other than Magistrate Court). c. Special projects assigned by the CITY to Attorney. Fees and services in a-c above will be as negotiated and agreed upon by the parties. 56 City Council Packet December 14, 2010 Storm Drainage Management (citizen request). Doc Knaus, 932 44th Street South, was present to inquire about storm drainage management issues. No action was taken. Public Hearing: Airport Dual-Track Site Selection. Bob Babcock from Helms & Associates and Greg Albjerg from HNTB presented on the Brookings Regional Airport Dual Track Airport Planning Process. Written comments are to be submitted by December 7. A public hearing was held on the Airport Dual-Track Site Selection. Public comments were made by Lyle Johnson - 46726 112th Street; George Skon - Trenton Township; Robert Lease – Brookings; Jim Pickard - north of Brookings; Igor Sergeev – Brookings; Duane Knutson - Chairman Brookings County Zoning Commission; Randy Hanson – FBO; Ron Skeryl – Trenton Township; Don Clark – Trenton Township; Terry Pritchard - Trenton Township; Bob Fourney - Trenton Township; Dan Robbins – Trenton Township; John Moriarty – Brookings; Kevin Telkamp – Trenton Township. No action was taken. City/County Building Construction Budget. A motion was made by Bartley, seconded by Kubal to approve the proposed City Manager’s and Joint Powers Board’s recommendation uncut and set the construction budget at $5,941,188. No public comment was made. Bartley, Bezdichek and Kubal voted yes; Corbett, McClemans, Reed and Thorpe voted no; motion failed. Bartley resigned as chairman of the Joint Powers Board. A motion was made by Reed, seconded by McClemans to eliminate the Parks & Recreation office suite from the City/County Government Center. Reed withdrew his motion, second agreed. A motion was made by Kubal, seconded by Reed to approve the proposed budget at $5,991,680 minus option #14 eliminating the Parks & Recreation office suite and 10 work stations for future growth in the amount of $371,150. Kubal and McClemans voted yes; Reed, Thorpe, Bartley, Bezdichek and Corbett voted no; motion failed. A motion was made by Bartley, seconded by Bezdichek, to approve the $5.9 million budget. A motion was made by Reed, seconded by Thorpe to table the construction budget issue until the December 14, 2010 Council Meeting. Corbett, McClemans, Reed and Thorpe voted yes; Bartley, Bezdichek and Kubal voted no; motion carried. Adjourn. A motion was made by Kubal seconded by McClemans, to adjourn. All present voted yes; motion carried. Meeting adjourned at 10:11 p.m. CITY OF BROOKINGS ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk 57 City Council Packet December 14, 2010 CONSENT AGENDA #4 C. Consent of the City to allow the United Retirement Center to sign a “Leasehold Mortgage.” To: Mayor and Council Members, Jeff Weldon, City Manager and Shari Thornes, City Clerk From: Steven J. Britzman, City Attorney Date: December 8, 2010 Re: United Retirement Center’s (URC’s) proposed Bond Issue While the City is not directly involved in the URC’s proposed project or financing, I received a request from their Bond Counsel, Doug Hajek, to request the Consent of the City to allow URC to sign a “Leasehold Mortgage”. Because the City leases a small amount of land to URC for URC’s building under a 1959 lease, with 2 Addendums, the URC when giving a Mortgage, must have the “consent” of its landlord, and we are the landlord as to several small areas upon which its building sits. The lease is a 99 year lease. Our Consent provides that we agree to do 2 things: 1. Notify the lender of any default by URC under the 99 year lease; and 2. Provide the lender with the opportunity to cure any such default. Finally, the Consent specifically says that “The City shall have no obligations under the Leasehold Mortgage.” This transaction is the same one which was the subject of today’s news coverage wherein the URC requested the County of Brookings provide conduit financing. I don’t see any risk to providing the Consent requested. 58 City Council Packet December 14, 2010 LEASEHOLD MORTGAGE - ONE HUNDRED EIGHTY DAY REDEMPTION SECURITY AGREEMENT AND FIXTURE FINANCING STATEMENT THIS LEASEHOLD MORTGAGE (the “Mortgage”), made and given this _____ day of __________, 2011 by UNITED RETIREMENT CENTER, a nonprofit corporation organized under the laws of South Dakota, as mortgagor (the “Corporation”), of 405 1st Avenue, Brookings, South Dakota 57006, THE COUNTY OF BROOKINGS, SOUTH DAKOTA, a political subdivision of the State of South Dakota, of __________________, Brookings, South Dakota 57006 (together with its successors and assigns, the “Mortgagee”), and HOME FEDERAL BANK, a federal savings bank, of _________, Brookings, South Dakota 57006 (the “Purchaser”). PRELIMINARY STATEMENT: The Corporation is, simultaneously with the execution and delivery of this Mortgage, entering into, executing and delivering that certain Loan and Security Agreement dated as of ___________, 2011 (the “Loan Agreement) among the Corporation, the Mortgagee, and the Purchaser, as purchaser of the Series 2011 Bonds. The Corporation wishes to secure its obligations to make due and punctual payment of principal of, premium, if any, and interest at the initial rate of 4.50% per annum on its $____________ Promissory Note, Series 2011, which matures on December 1, 2032 (the “Note”), payable to the Mortgagee, which has been assigned by the Mortgagee to the Purchaser, and other obligations issued under the Loan Agreement (such Note and other obligations, together with any additional notes or other obligations issued by the Corporation from time to time under the Loan Agreement referred to collectively as the “Indebtedness Secured Hereby”) and all other obligations of the Corporation under the Loan Agreement. Pursuant to the Loan Agreement, upon the issuance and sale of the Bonds, the Mortgagee will assign all of its right, title and interest in this Mortgage to the Purchaser. In order to better secure the payment of all amounts due under the Loan Agreement and Note, the Corporation, the Mortgagee and the Purchaser hereby agree as follows: GRANTING CLAUSES IN CONSIDERATION of the premises, the execution and delivery of the Note and the Loan Agreement by the Corporation, and of other good and valuable consideration, the receipt whereof is hereby acknowledged and in order to secure the performance of the obligations of the Corporation under the Loan Agreement and to secure the indebtedness secured hereby, the Corporation has executed and delivered this Mortgage and by these presents does assign, mortgage and grant a security interest in, to the Mortgagee and its successors and assigns forever, all of the Corporation's right, title and interest in, to and under any and all of the following described property (herein called the “Mortgaged Estate”): GRANTING CLAUSE FIRST The entire leasehold interest of the Corporation in the land described in Exhibit A hereto, together with the entire interest of the Corporation in and to all buildings, structures, improvements and appurtenances now standing, or at any time hereafter constructed or placed, upon such land, including all right, title and interest of the Corporation, if any, in and to all building material, building equipment and fixtures of every kind and nature whatsoever on said land or in any building, structure or improvement now or hereafter standing on said land, and the reversion or reversions, remainder or remainders, in and to said land, and together with the entire interest of the Corporation in and to all 59 City Council Packet December 14, 2010 and singular the tenements, hereditaments, easements, rights of way, rights, privileges and appurtenances to said land, belonging or in any wise appertaining thereto, including without limitation the entire right, title and interest of the Corporation in, to and under any streets, ways or alleys adjoining said land, and all claims or demands whatsoever of the Corporation either in law or in equity, in possession or expectancy of, in and to said land, it being the intention of the parties hereto that, so far as may be permitted by law, all property of the character hereinabove described which is now owned or is hereafter acquired by the Corporation and is affixed or attached to said land shall be and remain or become and constitute a portion of said land and the security covered by and subject to the lien of this Mortgage, together with all rents, income, revenues, issues and profits thereof (the “Leasehold Estate”); GRANTING CLAUSE SECOND All personal property, fixtures, fittings and furnishings, owned by the Corporation and now or hereafter attached to, located at, or placed in the improvements on the Leasehold Estate including, without limitation all machinery, fittings, fixtures, apparatus, equipment or articles used to supply heating, gas, electricity, air conditioning, water, light, waste disposal, power, refrigeration, ventilation, and fire and sprinkler protection, as well as renewals, replacements, proceeds, additions, accessories, increase, parts, fittings, insurance payments, awards and substitutes thereof, together with all interest of the Corporation in any such items hereafter acquired, as well as the Corporation's interest in any lease, or conditional sales agreement under which the same is acquired (“Personal Property”); GRANTING CLAUSE THIRD All rents, income, revenues, royalties, bonuses, accounts, contract rights, payments, leases, profits and benefits now due or which may hereafter become due under or by virtue of any lease, sublease, license concession or agreement, whether written or verbal, for the use or occupancy of the Leasehold Estate or any part thereof including agreements with any concessionaires in the Leasehold Estate together with all tenant security deposits, subject to the Corporation's right to collect, use and have the benefit of the rent, income, contract rights, payments, leases and profits prior to the occurrence of an uncured Event of Default; GRANTING CLAUSE FOURTH All awards, compensation and settlements in lieu thereof made as a result of the taking by power of eminent domain of the whole or any part of the Leasehold Estate, including any awards for damages sustained to the Leasehold Estate, for a temporary taking change of grade of streets or taking of access; GRANTING CLAUSE FIFTH All inventory, accounts and assignable general intangibles of the Corporation now owned or hereafter acquired, and all proceeds therefrom whether cash or non-cash, all as defined in Article 9 of the South Dakota Uniform Commercial Code; excluding, however, gifts, grants, bequests, donations and contributions specifically restricted by the donor or grantor to a particular purpose which is inconsistent with their use for payments required on the Note; and 60 City Council Packet December 14, 2010 GRANTING CLAUSE SIXTH All proceeds from any property described in the Granting Clauses hereof, and any and all other property of every name and nature from time to time hereafter by delivery or by writing of any kind conveyed, mortgaged, pledged, assigned or transferred, as and for additional security hereunder by the Corporation or by anyone in its behalf or with its written consent to the Mortgagee, which is hereby authorized to receive any and all such property at any and all times and to hold and apply the same subject to the terms hereof; SUBJECT, HOWEVER, to Permitted Encumbrances, as defined in the Loan Agreement. As used herein the term “Collateral” shall mean all of the above. It is specifically understood that the enumeration of any specific articles of property shall in no way exclude or be held to exclude any items of property not specifically mentioned. All of the Mortgaged Estate hereinabove described, real, personal and mixed, whether affixed or annexed or not, and all rights hereby conveyed and mortgaged are intended to be as a unit and are hereby understood and agreed and declared to be appropriated to the use of the Leasehold Estate, and shall for the purposes of the Mortgage be deemed to be real estate and conveyed and mortgaged hereby. TO HAVE AND TO HOLD all and singular, the Mortgaged Estate, whether now owned or hereafter owned, unto the Mortgagee, its successors and assigns, forever, with power of sale for the purposes of South Dakota Codified Laws, Chapter 21-49, as amended; PROVIDED NEVERTHELESS, that this Mortgage is upon the express condition that if the Corporation shall pay or cause to be paid all Indebtedness Secured Hereby and shall keep, perform, observe and satisfy all and singular the covenants and promises in the Loan Agreement, and in this Mortgage expressed to be kept, performed and observed by the Corporation, then this Mortgage and the rights hereby granted shall cease, determine and be void, otherwise to remain in full force and effect. THE PARTIES AGREE THAT THE PROVISIONS OF THE ONE HUNDRED EIGHTY DAY REDEMPTION MORTGAGE ACT GOVERN THIS MORTGAGE. THERE IS HEREBY GRANTED TO MORTGAGEE A POWER OF SALE FOR THE PURPOSES OF SDCL 21-49. AND IT IS FURTHER COVENANTED AND AGREED AS FOLLOWS: ARTICLE 1 GENERAL COVENANTS, REPRESENTATIONS AND WARRANTIES 1.1 Payment of Indebtedness; Observance of Covenants. The Corporation shall duly and punctually pay each and every installment of principal and interest on the Note and all other Indebtedness Secured Hereby, as and when the same shall become due, and shall duly and punctually perform and observe all of the covenants, agreements and provisions contained herein, in the Note, the Loan Agreement and any other instrument given as security for the payment of the Note. 1.2 Maintenance; Repairs. The Corporation shall not abandon the Leasehold Estate, shall keep and maintain the Leasehold Estate in good condition, repair and operating condition free from any waste or misuse, and shall promptly repair or restore any buildings, improvements or structures 61 City Council Packet December 14, 2010 now or hereafter on the Leasehold Estate which may become damaged or destroyed to their condition prior to any such damage or destruction. The Corporation further agrees that without the prior consent of the Mortgagee it will not expand any improvements on the Leasehold Estate, erect any new improvements or make any material alterations in any improvements which shall alter the basic structure, affect the market value or change the existing architectural character of the Leasehold Estate, nor remove or demolish any improvements, and shall complete within a reasonable time any buildings now or at any time in the process of erection on the Leasehold Estate. 1.3 Compliance With Laws. The Corporation shall comply with all requirements of law, municipal ordinances and regulations affecting the Leasehold Estate, shall comply with all private restrictions and covenants affecting the Leasehold Estate and shall not acquiesce in or seek any rezoning classification affecting the Leasehold Estate. 1.4 Payment of Operating Costs; Prior Mortgages and Liens. The Corporation shall pay all operating costs and expenses of the Leasehold Estate, shall keep the Leasehold Estate free from levy, attachment, mechanics', materialmen's and other liens (“Liens”) and shall pay when due all indebtedness which may be secured by mortgage, lien or charge on the Mortgaged Estate. 1.5 Payment of Impositions. The Corporation shall pay when due and in any event before any penalty attaches all taxes, assessments, governmental charges, water charges, sewer charges, and other fees, taxes, charges and assessments of every kind and nature whatsoever assessed or charged against or constituting a lien on the Mortgaged Estate or any interest therein (“Impositions”) and will upon demand furnish to the Mortgagee proof of the payment of any such Impositions. In the event of a court decree or an enactment after the date hereof by any legislative authority of any law imposing upon a mortgagee the payment of the whole or any part of the Impositions herein required to be paid by the Corporation, or changing in any way the laws relating to the taxation of mortgages or debts secured by mortgages or a mortgagee's interest in Mortgaged Estate, so as to impose such Imposition on the Mortgagee or on the interest of the Mortgagee in the Mortgaged Estate, then, in any such event, the Corporation shall bear and pay the full amount of such Imposition. 1.6 Contest of Impositions, Liens and Levies. The Corporation shall not be required to pay, discharge or remove any Imposition or any Lien so long as the Corporation shall in good faith contest the same or the validity thereof by appropriate legal proceedings which shall operate to prevent the collection of the Lien or Imposition so contested and the sale of the Leasehold Estate, or any part thereof, to satisfy the same, provided that the Corporation shall, prior to the date such Lien or Imposition is due and payable, have given such reasonable security as may be demanded by the Mortgagee to insure such payments plus interest or penalties thereon, and prevent any sale or forfeiture of the Mortgaged Estate by reason of such nonpayment. Any such contest shall be prosecuted with due diligence and the Corporation shall promptly after final determination thereof pay the amount of any such Lien or Imposition so determined, together with all interest and penalties which may be payable in connection therewith. Notwithstanding these provisions the Corporation shall (and if the Corporation shall fail so to do, the Mortgagee, may but shall not be required to) pay any such Lien or Imposition notwithstanding such contest if in the reasonable opinion of the Mortgagee, the Mortgaged Estate shall be in jeopardy or in danger of being forfeited or foreclosed. 1.7 Protection of Security. The Corporation shall promptly notify the Mortgagee of and appear in and defend any suit, action or proceeding that affects the Mortgaged Estate or the rights or interest of the Mortgagee hereunder and the Mortgagee may elect to appear in or defend any such action or proceeding. The Corporation agrees to indemnify and reimburse the Mortgagee from any and all loss, damage, expense or cost arising out of or incurred in connection with any such suit, action or 62 City Council Packet December 14, 2010 proceeding, including costs of evidence of title and reasonable attorney's fees and such amounts together with interest thereon at the interest rate provided in the Note shall become additional “Indebtedness Secured Hereby” and shall become immediately due and payable. 1.8 Additional Assurances. The Corporation agrees upon reasonable request by the Mortgagee to execute and deliver such further instruments, deeds and assurances including financing statements under the Uniform Commercial Code and will do such further acts as may be necessary or proper to carry out more effectively the purposes of this Mortgage and without limiting the foregoing, to make subject to the lien hereof any property agreed to be subjected hereto or covered by the granting clause hereof, or intended so to be. The Corporation agrees to pay any recording fees, filing fees, note taxes, mortgage registry taxes or other charges arising out of or incident to the filing or recording of this Mortgage and financing statement, such further assurances and instruments and the issuance and delivery of the Note. 1.9 Hazardous Materials. The Corporation covenants, represents and warrants to the Mortgagee, its successors and assigns, that to the best of its knowledge the Leasehold Estate and its existing and prior uses comply and have at all times complied with, and the Corporation is not in violation of, has not violated and will not violate, in connection with the ownership, use, maintenance or operation of the Leasehold Estate and the conduct of the business related thereto, any applicable federal, state, county or local statutes, laws, regulations, rules, ordinances, codes, standards, orders, licenses and permits of any governmental authorities relating to environmental matters (being hereinafter collectively referred to as the “Environmental Laws”), including by way of illustration and not by way of limitation the Clean Air Act, the Federal Water Pollution Control Act of 1972, the Resource Conservation and Recovery Act of 1976, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, and the Toxic Substances Control Act (including any amendments or extensions thereof and any rules, regulations, standards or guidelines issued pursuant to any of said Environmental Laws), and all other applicable environmental standards or requirements. Without limiting the generality of the foregoing: i) the Corporation, its agents, employees and independent contractors, (a) has and will operate the Leasehold Estate and has and at all times will receive, handle use, store, treat, transport and dispose of all petroleum products and all other toxic dangerous or hazardous chemicals, materials, substances, pollutants and wastes, and any chemical, material or substance exposure to which is prohibited, limited or regulated by any federal, state, county, regional or local authority or which even if not so prohibited, limited or regulation, may/or could pose a hazard to the health and safety of the occupants of the Leasehold Estate or the occupants and/or owners of property near the Leasehold Estate (all the foregoing being hereinafter collectively referred to as “Hazardous Materials”) in strict compliance with all applicable environmental, health or safety statutes, ordinances, orders, rules, standards, regulations or requirements, and (b) has removed from the Leasehold Estate all Hazardous Materials; ii) there are no existing or pending statutes, orders, standards, rules or regulations relating to environmental matters requiring any remedial actions or other work, repairs, construction or capital expenditures with respect to the Leasehold Estate, nor has the Corporation received any notice of any of the same, iii) no Hazardous Materials have been or will be released into the environment by the Corporation, or have been or will be deposited, spilled, discharged, placed or disposed of at, on or near the Leasehold Estate, nor to the best of its knowledge has or will the Leasehold Estate be used at any time by any person as landfill or a disposal site for Hazardous Materials or for garbage, waste or refuse of any kind; iv) there are no electrical transformers or other equipment containing dielectric fluid containing polychlorinated biphenyls located in, on or under the Leasehold Estate, nor is there any friable asbestos contained in, on or under the Leasehold Estate, nor will the Corporation permit the installation of same; v) to the best of its knowledge there are no locations off the Leasehold Estate where Hazardous Materials generated by or on the Leasehold Estate have been treated, stored, deposited or disposed of; vi) there is no fact pertaining to the physical 63 City Council Packet December 14, 2010 condition of either the Leasehold Estate or the area surrounding the Leasehold Estate (a) which the Corporation has not disclosed to the Mortgagee in writing prior to the date of this Mortgage, and (b) which materially adversely affects or will materially adversely affect the Leasehold Estate or the use or enjoyment or the value thereof, or the Corporations ability to perform the transactions contemplated by this Mortgage; vii) the mortgaging of the Leasehold Estate by the Corporation to the Mortgagee does not require notice to or the prior approval, consent or permission of any federal, state or local governmental agency, body, board or official; viii) no notices of any violation of any of the matters referred to in the foregoing sections relating to the Leasehold Estate or its use have been received by the Corporation and there are no writs, injunctions, decrees, orders or judgments outstanding, no lawsuits, claims, proceedings or investigations pending or threatened, relating to the ownership, use, maintenance or operation of the Leasehold Estate nor is there any basis for any such lawsuit, claim, proceeding or investigation being instituted or filed; and ix) the Leasehold Estate is not listed in the United States Environmental Protection Agency's National Priorities List of Hazardous Waste Sites nor any other log, list, schedule, inventory or record of Hazardous Materials or Hazardous Waste sites whether maintained by the United States, any state or local governmental unit. The Corporation agrees to indemnify and reimburse the Mortgagee, its successors and assigns, for any breach of these representations and warranties and from any loss, damage, expense or cost arising out of or incurred by the Mortgagee which is the result of a breach of, misstatement of or misrepresentation of the above covenants, representations and warranties, or for any loss, damage, expense or cost sustained as a result of their being located on the Leasehold Estate any Hazardous Materials or dangerous, toxic or hazardous pollutants, chemicals, wastes or substances, together with all attorneys' fees incurred in connection with the defense of any action against the Mortgagee arising out of the above. These covenants, representations, warranties and indemnities shall survive the payment of the Indebtedness Secured Hereby and cancellations or satisfaction of the Loan Agreement, Note, and this Mortgage, and shall be deemed continuing covenants, representations, warranties and indemnities running with the Land for the benefit of the Mortgagee, and any successors and assigns of the Mortgagee, including any purchasers at a mortgage foreclosure sale, any transferee of the title of the Mortgagee or any subsequent purchaser at a foreclosure sale, and any subsequent owner of the Leasehold Estate claiming through or under the title of the Mortgagee and shall service any foreclosure of this Mortgage and any acquisition of title of the Mortgagee. The amount of all such indemnified loss, damage, expense or cost, shall bear interest thereon at the rate of interest in effect on the Note and shall become so much additional Indebtedness Secured Hereby and shall become immediately due and payable in full on demand of the Mortgagee, its successors and assigns. The indemnification contained in this Section 1.9 shall be a personal monetary obligation of the Corporation. 1.10 Current Compliance with Laws. The Leasehold Estate as improved on the date hereof, complies with all material requirements of laws, including requirements of any federal, state, county, city or other governmental authority having jurisdiction over the Corporation or the Leasehold Estate and including, but not limited to, any applicable zoning, occupational safety and health, energy and Environmental Laws, ordinances and regulations; and the Corporation has obtained all necessary consents, permits and licenses to construct, occupy and operate the Leasehold Estate for its intended purposes. 1.11 Title. The Corporation is the lawful owner of and has good and marketable fee simple absolute title to the Leasehold Estate and will warrant and defend title to the same free of all liens and encumbrances, other than the Permitted Encumbrances identified in the Loan Agreement and has good right and lawful authority to grant, bargain, sell, convey, mortgage and grant a security interest in the Mortgaged Estate as provided herein. 64 City Council Packet December 14, 2010 1.12 Personal Property Replacement. The Corporation will keep the Personal Property and the Leasehold Estate in good order and repair and condition and will maintain adequate reserves or replacement of the same. As and when any item of Personal Property becomes worn or obsolete the Corporation shall replace the same with a replacement item of Personal Property of same utility and value. ARTICLE 2 INSURANCE The Corporation shall obtain, pay for and keep in full force and effect during the term of this Mortgage at its sole cost and expense all policies of insurance required pursuant to Section 8.2(d) of the Loan Agreement. ARTICLE 3 UNIFORM COMMERCIAL CODE SECURITY AGREEMENT 3.1 Security Agreement. This Mortgage shall constitute a security agreement as defined in the Uniform Commercial Code of South Dakota (“Code”) in the Collateral. Any Collateral installed in or used in the Leasehold Estate is to be used by the Corporation solely for the Corporation's business purposes or as the equipment and fixtures leased or furnished by the Corporation, as landlord, to tenants of the Leasehold Estate and such Collateral will be kept at the buildings on the Leasehold Estate and will not be removed therefrom without the consent of the Mortgagee or as otherwise permitted under the Loan Agreement and may be affixed to such buildings but will not be affixed to any other real estate. The remedies of the Mortgagee hereunder are cumulative and separate, and the exercise of any one or more of the remedies provided for herein or under the Code shall not be construed as a waiver of any of the other rights of the Mortgagee including having any Collateral deemed part of the realty upon any foreclosure thereof. If notice to any party of the intended disposition of the Collateral is required by law in a particular instance, such notice shall be deemed commercially reasonable if given at least ten (10) days prior to such intended disposition and may be given by advertisement in a newspaper accepted for legal publications either separately or as part of a notice given to foreclose the Leasehold Estate or may be given by private notice if such parties are known to the Mortgagee. Neither the grant of a security interest pursuant to this Mortgage nor the filing of a financing statement pursuant to the Code shall ever impair the stated intention of this Mortgage that all Collateral comprising the Mortgaged Estate and at all times and for all purposes and in all proceedings both legal or equitable shall be regarded as part of the Leasehold Estate mortgaged hereunder irrespective of whether such item is physically attached to the Leasehold Estate or any such item is referred to or reflected in a financing statement. The Corporation will on demand deliver all financing statements that may from time to time he required by the Mortgagee to establish, perfect and continue the priority of the Mortgagee's security interest in the Collateral and shall pay all expenses incurred by the Mortgagee in connection with the renewal or extensions of any financing statements, executed in connection with the Mortgaged Estate; and shall give advance written notice of any proposed change in the Corporation's name, identity or structure and will execute and deliver to the Mortgagee prior to or concurrently with such change all additional financing statements that the Mortgagee may require to establish and perfect the priority of the Mortgagee's security interest. 3.2 Maintenance of Property. Subject to the provisions of this section, in any instance where the Corporation in its sound discretion determines that any Collateral subject to a security interest under this Mortgage has become inadequate, obsolete, worn out, unsuitable, undesirable or unnecessary for the operation of the Leasehold Estate, the Corporation may, at its expense, remove and 65 City Council Packet December 14, 2010 dispose of it and substitute and install other items not necessarily having the same function, provided, that such removal and substitution shall not impair the operating utility and unity of the Leasehold Estate. All substituted items shall become a part of the Mortgaged Estate and subject to the lien of the Mortgage. Any amounts received or allowed the Corporation upon the sale or other disposition of the removed items of Collateral shall be applied first against the cost of acquisition and installation of the substituted items. Under no circumstance does the Mortgagee release its security interest in the item disposed of or the proceeds thereof unless the until the replacement item is purchased or the proceeds are applied to the Indebtedness Secured Hereby. 3.3 FIXTURE FILING. THIS MORTGAGE SHALL BE EFFECTIVE AS A FINANCING STATEMENT FILED AS A FIXTURE FILING WITH RESPECT TO ALL GOODS CONSTITUTING A PART OF THE COLLATERAL WHICH ARE OR ARE TO BECOME FIXTURES RELATED TO THE LEASEHOLD ESTATE. FOR PURPOSES OF THE UNIFORM COMMERCIAL CODE THE FOLLOWING INFORMATION IS FURNISHED: a) The name and address of the record owner of the real estate described in this instrument is: United Retirement Center 405 1st Avenue Brookings, SD 57006 b) The name and address of the Corporation is: United Retirement Center 405 1st Avenue Brookings, SD 57006 Taxpayer Identification No.: 46-0271768 c) Information concerning the security interest evidenced by this instrument may be obtained from the Secured Party at its address above. d) This document covers goods which are or are to become fixtures. 3.4 Purchase Money Financing for Personal Property. The Corporation may obtain financing for new Personal Property secured by a purchase money security interest in the Personal Property superior to the blanket security interest of the Mortgagee in after acquired Personal Property provided such financing does not exceed the actual cost of the Personal Property being acquired. 3.5 The Corporation to Comply with Prior Security Instruments. The Corporation shall at its sole cost and expense perform, comply with and discharge all obligations of the Corporation under any Permitted Encumbrances for any of the Collateral. The Corporation shall not permit a surrender, assignment or transfer of its interest in any such property without the prior written consent of the Mortgagee and shall not permit or suffer a default to exist under such Permitted Encumbrances. 66 City Council Packet December 14, 2010 ARTICLE 4 APPLICATION OF INSURANCE AND AWARDS 4.1 Damage or Destruction of the Leasehold Estate. The Corporation shall give the County and the Mortgagee prompt notice of any damage to or destruction of the Leasehold Estate, as provided in Section 10.1 of the Loan Agreement. 4.2 Condemnation. The Corporation shall give the Mortgagee and the Purchaser prompt notice of any actual or threatened condemnation or eminent domain proceedings affecting the Leasehold Estate, as required pursuant to Section 10.2 of the Loan Agreement. 4.3 Disbursement of Insurance and Condemnation Proceeds. Any restoration or repair shall be done in accordance with Articles III and X of the Loan Agreement. ARTICLE 5 LEASES AND RENTS 5.1 Mortgagee's Right to Perform Under Leases. Should the Corporation fail to perform, comply with or discharge any obligations of the Corporation under any lease or should the Mortgagee become aware of or be notified by any tenant under any lease of a failure on the part of the Corporation to so perform, comply with or discharge its obligations under said lease, the Mortgagee may, but shall not be obligated to, and without further demand upon the Corporation, and without waiving or releasing the Corporation from any obligation in this Mortgage contained, remedy such failure, and the Corporation agrees to repay upon demand all sums incurred by the Mortgagee in remedying any such failure together with interest at the then rate in effect on the Note. All such sums, together with interest as aforesaid shall become so much additional Indebtedness Secured Hereby, but no such advance shall be deemed to relieve the Corporation from any default hereunder. 5.2 Assignment of Leases and Rents. To further secure the Indebtedness Secured Hereby, the Corporation does hereby sell, assign and transfer unto the Mortgagee all rents, income and profits now due and which may hereafter become due under or by virtue of any lease, whether written or verbal, or any agreement for the use or occupancy of the Leasehold Estate, it being the intention of this Mortgage to establish an absolute transfer and assignment of all such leases and agreements and all of the rents, income and profits from the Mortgaged Estate unto the Mortgagee and the Corporation does hereby appoint irrevocably the Mortgagee its true and lawful attorney in its name and stead, which appointment is coupled with an interest, to collect all of said rents, income, and profits; provided, the Mortgagee grants the Corporation the privilege, revocable, to collect and retain such rents, income, and profits unless and until an Event of Default exists under this Mortgage. Upon and Event of Default and whether before or after the institution of proceedings to sell the Mortgaged Estate or foreclose this Mortgage or during any period of redemption the Mortgagee, and without regard to waste, adequacy of the security or solvency of the Corporation, may revoke the privilege granted the Corporation hereunder to collect the rents, income and profits of the Mortgaged Estate, and may, at its option, without notice in person or by agent, with or without taking possession of or entering the Leasehold Estate, with or without bringing any action or proceeding or by a receiver duly appointed, give or require the Corporation to give notice to any or all tenants under any lease authorizing and directing the tenant to pay such rents, income and profits to the Mortgagee, such agent, or receiver as the case may be; collect all of the rents, income and profits, enforce the payment thereof and exercise all of the rights of the landlord under any lease and all of the rights of the Mortgagee hereunder; enter upon, take 67 City Council Packet December 14, 2010 possession of, manage and operate said Leasehold Estate, or any part thereof; cancel, enforce or modify any leases, and fix or modify rents, and do any acts which the Mortgagee, including attorney's fees, to the payment of taxes, assessments, insurance premiums and expenditures for the management, repair and upkeep of the Leasehold Estate, to the performance of landlord's obligations under any leases and to the Indebtedness Secured Hereby all in such order as the Mortgagee may require. The entering upon and taking possession of the Leasehold Estate, the collection of such rents, income and profits and the application thereof as aforesaid shall not cure or waive any defaults under this Mortgage or affect any notice of default or invalidate any act done pursuant to such notice and shall not in any way operate to prevent the Mortgagee from pursuing any other remedy which it may now or hereafter have under the terms of this Mortgage or any other security given for the Indebtedness Secured Hereby nor shall it in any way be deemed to constitute the Mortgagee a mortgagee-in possession. ARTICLE 6 RIGHTS OF THE MORTGAGEE 6.1 Right to Cure Default. If the Corporation shall fail to comply with any of the covenants or obligations of this Mortgage, the Mortgagee may, but shall not be obligated in this Mortgage contained, to remedy such failure, and the Corporation agrees to repay upon demand all sums incurred by the Mortgagee in remedying any such failure together with interest at the then rate in effect on the Note. All such sums, together with interest as aforesaid shall become so much additional Indebtedness Secured Hereby, but not such advance shall be deemed to relieve the Corporation from any failure hereunder. 6.2 No Claim Against the Mortgage. Nothing contained in this Mortgage shall constitute any consent or request by the Mortgagee, express or implied, for the performance of any labor or services or for the furnishing of any materials or other property in respect of the Mortgaged Estate or any part thereof, nor as giving the Corporation or any party in interest with the Corporation any right, power or authority to contract for or permit the performance of any labor or services or the furnishing of any materials or other property in such fashion as would create any personal liability against the Mortgagee in respect thereof or would permit the making of any claim that any lien based on the performance of such labor or services or the furnishing of any such materials or other property is prior to the lien of this Mortgage. 6.3 Inspection. The Corporation will permit the Mortgagee's authorized representatives to enter the Leasehold Estate at reasonable times for the purpose of inspecting the same; provided the Mortgagee shall have no duty to make such inspections and shall not incur any liability or obligation for making or not making any such inspections. 6.4 Waivers; Releases; Resort to Other Security, Etc. Without affecting the liability of any party liable for payment of any Indebtedness Secured Hereby or performance of any obligation contained herein, and without affecting the rights of the Mortgagee with respect to any security not expressly released in writing, the Mortgagee may, at any time, and without notice to or the consent of the Corporation or any party in interest with the Mortgaged Estate or the Note: (a) make any agreement extending the time or otherwise altering the terms of payment of all or any part of the Indebtedness Secured Hereby or modifying or waiving any obligation, or subordinating, modifying or otherwise dealing with the lien or charge hereof; (b) accept any additional security; 68 City Council Packet December 14, 2010 IN WITNESS WHEREOF, the Corporation has caused these presents to be executed as of the date first above written. UNITED RETIREMENT CENTER By____________________________________ Its President (SEAL) By____________________________________ Its Secretary STATE OF SOUTH DAKOTA ) :ss COUNTY OF BROOKINGS ) On this the _____ day of __________, 2011, before me, the undersigned officer, personally appeared _______________, who acknowledged himself to be the President of United Retirement Center, a nonprofit corporation organized under the laws of South Dakota, and that he, as such President, being authorized so to do, executed the foregoing instrument in the name of the corporation by signing the name of the corporation by himself as President. IN WITNESS WHEREOF, I hereunto set my hand and official seal. _____________________________________ Notary Public - South Dakota My commission expires: STATE OF SOUTH DAKOTA ) :ss COUNTY OF BROOKINGS ) On this the _____ day of __________, 2011, before me, the undersigned officer, personally appeared ________________, who acknowledged herself to be the Secretary of United Retirement Center, a nonprofit corporation organized under the laws of South Dakota, and that she, as such Secretary being authorized so to do, executed the foregoing instrument in the name of the corporation by signing the name of the corporation by herself as Secretary. IN WITNESS WHEREOF, I hereunto set my hand and official seal. _____________________________________ Notary Public - South Dakota My commission expires: 73 City Council Packet December 14, 2010 (c) release or otherwise deal with any property, real or personal, including any or all of the Mortgaged Estate, including making partial releases of the Mortgaged Estate; or (d) resort to any security agreements, pledges, contracts of guarantee, assignments of rents and leases or other security, and exhaust any one or more of said security and the security hereunder, either concurrently or independently and in such order as it may determine. 6.5 Waiver of Appraisement, Homestead, Marshaling. The Corporation waives to the full extent lawfully allowed the benefit of any homestead, appraisement, evaluation, stay and extension laws now or hereinafter in force. The Corporation waives any rights available with respect to marshaling of assets so as to require the separate sales of any portion of the Mortgaged Estate, or as to require the Mortgagee to exhaust its remedies against a specific portion of the Mortgaged Estate before proceeding against the other and does hereby expressly consent to and authorize the sale of the Mortgaged Estate or any part thereof as a single unit or parcel or as separate parcels. 6.6 Evasion of Prepayment. If an Event of Default shall occur and the Indebtedness Secured Hereby is accelerated, a tender of such amount necessary to satisfy the accelerated amount or a mortgage foreclosure sale under this Mortgage shall be considered an evasion of the prepayment restrictions of the Note and the Mortgagee may demand in addition to all other sums due it by reason of an Event of Default the premium then due under the Note as if the Corporation had voluntarily prepaid the same. The Corporation expressly waives the provisions of any present or future statute, law or judicial interpretation or principle which prohibits or may prohibit the collection of the foregoing premium in connection with any such acceleration. ARTICLE 7 EVENTS OF DEFAULT AND REMEDIES 7.1 Events of Default. It shall be an event of default under this Mortgage upon the happening of any of the following: (a) the occurrence and continuance of any event of default as defined in Section 15.1 of the Loan Agreement; and (b) the failure of the Corporation to perform any covenant contained herein within 30 days after written notice thereof from the Mortgagee. 7.2 Mortgagee's Right to Accelerate. If an Event of Default shall occur the Mortgagee may on thirty (30) days' notice declare the entire unpaid principal balance of the Note together with all other Indebtedness Secured Hereby to be immediately due and payable and thereupon all such unpaid principal balance of the Note together with all accrued interest thereon at the rate of interest provided in the Note and all other Indebtedness Secured Hereby shall be and become immediately due and payable. This notice may be given concurrently with any notice of default required to be provided under the Loan Agreement or Section 7.1 above. 7.3 Right to Foreclose. If an Event of Default shall occur and upon the giving of notice to the Corporation as provided in the Loan Agreement and in Sections 7.1 and 7.2 above, the Mortgagee may, either with or without entry or taking possession, proceed by suit or suits at law or in equity or by any other appropriate proceedings or remedy to enforce payment of the Indebtedness Secured Hereby 69 City Council Packet December 14, 2010 or the performance of any other term hereof or any other right and the Corporation hereby grants the Mortgagee the power to institute a proceeding or proceedings, judicial or otherwise, for the complete foreclosure of this Mortgage under any applicable provision of law, and out of the proceeds arising from sale and foreclosure to retain the principal and interest due on the Note and the Indebtedness Secured Hereby together with all such sums of money as the Mortgagee shall have expended or advanced pursuant to this Mortgage or pursuant to statute together with interest thereon at the rate of interest provided in the Note and all costs and expenses of such foreclosure, including lawful attorney's fees, with the balance, if any, to be paid to the persons entitled thereto by law. In any such proceeding the Mortgagee may apply all or any portion of the Indebtedness Secured Hereby to the amount of the purchase price. 7.4 Receiver. Upon an Event of Default, the Mortgagee is hereby authorized to appoint a receiver to take possession of the Mortgaged Estate, if the Mortgaged Estate is abandoned or have a receiver appointed by the court upon sufficient proof being established therefore. Further, upon an Event of Default, the Mortgagee may require monthly amounts equal to monthly installments of taxes and insurance to be deposited into an escrow account with the Mortgagee to be applied to such amounts as and when due. 7.5 Rights Under the Code. In addition to the rights available to a mortgagee of Leasehold Estate the Mortgagee shall also have all the rights, remedies and recourse available to a secured party under the Uniform Commercial Code including the right to proceed under the provisions of the Code governing default as to any property which is subject to the security interest created by the Mortgage or to proceed as to such personal property in accordance with the procedures and remedies available pursuant to a foreclosure of real estate. 7.6 Sale, Release, Etc. of Mortgaged Property. Except for Permitted Encumbrances and as provided specifically in the Loan Agreement or elsewhere herein, the Corporation will not sell, lease or transfer or otherwise dispose of the Leasehold Estate. 7.7 Rights Cumulative. Each right, power or remedy herein conferred upon the Mortgagee is cumulative and in addition to every other right, power or remedy, express or implied, now or hereafter arising, available to the Mortgagee, at law or in equity, or under any other agreement, and each and every right, power and remedy herein set forth or otherwise so existing may be exercised from time to time as often and in such order as may be deemed expedient by the Mortgagee and shall not be a waiver of the right to exercise at any time thereafter any other right, power or remedy. No delay or omission by the Mortgagee in the exercise of any right, power or remedy arising hereunder or arising otherwise shall impair any such right, power or remedy or the right of the Mortgagee to resort thereto at a later date or be construed to be a waiver of any default or event of default under this Mortgage or the Note. 7.8 Right to Discontinue Proceedings. In the event the Mortgagee shall have proceeded to invoke any right, remedy or recourse permitted under this Mortgage and shall thereafter elect to discontinue or abandon the same for any reason, the Mortgagee shall have the unqualified right to do so and in such event the Corporation and the Mortgagee shall be restored to their former positions with respect to the Indebtedness Secured Hereby. This Mortgage, the Mortgaged Estate and all rights, remedies and recourse of the Mortgagee shall continue as if the same had not been invoked. 7.9 Right to Reduction of Redemption Period. In the event of foreclosure by action, the holder of the certificate of sale may apply to the court for a reduction of the redemption period if the Leasehold Estate has been abandoned by the Corporation. If, after notice to the parties as the court 70 City Council Packet December 14, 2010 directs, the court finds the property has been abandoned, the redemption period may be reduced, but in no event, may the redemption period be reduced to less than sixty (60) days from the date of recording of the certificate of sale. ARTICLE 8 DEFEASANCE 8.1 Defeasance. If the Corporation shall perform and satisfy all of its obligations under Section 12.1 of the Loan Agreement and all of its other obligations hereunder in a manner satisfactory to the Mortgagee, then in that case all property, rights and interests hereby assigned, mortgaged or pledged shall revert to the Corporation, and the estate, right, title and interest of the Mortgagee therein shall thereupon cease, terminate and become void; and this Mortgage, and the covenants of the Corporation contained herein, shall be discharged and the Mortgagee in such case on demand of the Corporation and at the Corporation's cost and expense, shall execute and deliver to the Corporation a proper instrument or instruments acknowledging the satisfaction and termination of this Mortgage, and shall assign and transfer or cause to be assigned or transferred, and shall deliver or cause to be delivered, to the Corporation, all property, including money, then held by the Mortgagee or the Purchaser under this Mortgage and the Loan Agreement. ARTICLE 9 MISCELLANEOUS 9.1 Choice of Law. The construction and interpretation of this Mortgage and the Indebtedness Secured Hereby shall be governed by the laws of the State of South Dakota. 9.2 Successors and Assigns. This Mortgage and each and every covenant, agreement and other provision hereof shall be binding upon the Corporation and its successors and assigns including without limitation each and every from time to time record owner of the Leasehold Estate or any other person having an interest therein, shall run with the land and shall inure to the benefit of the Mortgagee and its successors and assigns. As used herein the words “successors and assigns” shall also be deemed to include the heirs, representatives, administrators and executors of any natural person who is or becomes a party to this Mortgage. In the event that the ownership of the Mortgaged Estate becomes vested in a person or persons other than the Corporation, the Mortgagee shall not have any obligation to deal with such successor or successors in interest unless such transfer is permitted by this Mortgage, and may thereafter deal with such successor in place of the Corporation without any obligation to thereafter deal with the Corporation and without waiving any liability of the Corporation hereunder or under the Note. No change of ownership shall in any way operate to release or discharge the liability of the Corporation hereunder unless such release or discharge is expressly agreed to in writing by the Mortgagee. 9.3 Unenforceability of Certain Clauses. The unenforceability or invalidity of any provisions hereof shall not render any other provision herein contained unenforceable or invalid. 9.4 Captions and Headings. The captions and headings of the various sections of this Mortgage are for convenience only and are not to be construed as confining or limiting in any way the scope or intent of the provisions hereof. Whenever the context requires or permits the singular shall include the plural, the plural shall include the singular and the masculine, feminine and neuter shall be freely interchangeable. 71 City Council Packet December 14, 2010 9.5 Notices. Any notices and other communications permitted or required by the provisions of this Mortgage (except for telephonic notices expressly permitted) shall be in writing and shall be deemed to have been properly given or served by depositing the same with the United states Postal Service, or any official successor thereto, designated as Registered or Certified Mail, Return Receipt Requested, bearing adequate postage, or delivery by reputable private carrier such as Federal Express, Airborne, DHL, UPS, or similar overnight delivery service, and addressed as hereinafter provided. Each such notice shall be effective upon being deposited as aforesaid. The time period within which a response to any such notice must be given, however, shall commence to run from the date of receipt of the notice by the addressee thereof. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to be receipt of the notice sent. By giving to the other party hereto at least ten (10) days' notice thereof, either party hereto shall have the right from time to time and at any time during the term of this Mortgage to change its address and shall have the right to specify as its address any other address within the United States of America. Each notice to the Mortgagee shall be addressed as follows: County of Brookings 314 6th Avenue Brookings, SD 57006 Attn: County Auditor Each notice to the Purchaser shall be addressed as follows: Home Federal Bank 225 S. Main Avenue P.O. Box 5000 Sioux Falls, SD 57117-5000 Attn: President Each notice to the Corporation shall be addressed as follows: United Retirement Center 405 1st Avenue Brookings, SD 57006 Attn: Administrator 9.6 Legal Limits of the Indebtedness Secured Hereby. Notwithstanding anything to the contrary contained in the Note or in this Mortgage, all agreements which either now are or which shall become agreements between the Corporation and the Mortgagee are hereby limited so that in no contingency or event whatsoever, whether by reason of acceleration of maturity of the Indebtedness Secured hereby or otherwise, shall the total liability for payments in the nature of interest and other charges exceed the applicable limits imposed by the usury laws of the State of South Dakota. If any payments in the nature of Interest, additional interest and other charges made under the Note or under this Mortgage are held to be in excess of the applicable limits imposed by the usury laws of the State of South Dakota, it is agreed that any such amount held to be in excess shall be considered payment of principal hereunder, and the indebtedness evidenced hereby shall be reduced by such amount so that the total liability for payment in the nature of interest, additional interest and other charges shall not exceed the applicable limits imposed by the usury laws of the State of South Dakota. 72 City Council Packet December 14, 2010 CONSENT The City of Brookings, South Dakota (the “City”), as lessor under the Lease dated February 24, 1959 between the City and United Retirement Center, hereby consents to the foregoing Leasehold Mortgage – One Hundred Eighty Day Redemption, Security Agreement and Fixture Financing Statement (the “Leasehold Mortgage”) and agrees to (i) notify the Mortgagee of any default thereunder, and (ii) provide the Mortgagee the opportunity to cure such default within sixty days of such notice of default. The City shall have no obligations under the Leasehold Mortgage. CITY OF BROOKINGS, SOUTH DAKOTA By____________________________________ Its Mayor ATTEST: By________________________________ [City Clerk] City of Brookings, South Dakota EXHIBIT A All of the Mortgagor’s rights and interests under the Lease Agreement dated February 24, 1959 between the City of Brookings, South Dakota, as lessor, and United Retirement Center, as lessee, pertaining to the described real estate situated in the County of Brookings, State of South Dakota: 74 City Council Packet December 14, 2010 ASSIGNMENT OF MORTGAGE The County of Brookings, South Dakota (the “County”), does hereby assign, transfer and set over the foregoing Mortgage - One Hundred Eighty Day Redemption, Security Agreement and Fixture Financing Statement to Home Federal Bank (the “Purchaser” and “Escrow Agent”), with its principal office at ____________, Brookings, South Dakota 57006, as Purchaser under that certain Loan and Security Agreement dated as of ____________, 2011 (the “Loan Agreement”), between the County, the Purchaser and United Retirement Center, said Purchaser and Escrow Agent to hold and apply all funds received hereunder as provided in the Loan Agreement. This assignment shall be without recourse against the undersigned. Dated this _____ day of __________, 2011. COUNTY OF BROOKINGS, SOUTH DAKOTA By____________________________________ ATTEST: Chairman _____________________________________ County Auditor STATE OF SOUTH DAKOTA ) :ss COUNTY OF BROOKINGS ) On this _____ day of __________, 2011, before me, the undersigned officer, personally appeared __________________, who acknowledged himself to be the Chairman of the County of Brookings, South Dakota, a municipality organized under the laws of South Dakota, and that he, as such Chairman, being authorized so to do, executed the foregoing instrument in the name of the municipality by signing the name of the municipality by himself as Chairman. IN WITNESS WHEREOF, I hereunto set my hand and official seal. _____________________________________ My commission expires: Notary Public - South Dakota STATE OF SOUTH DAKOTA ) :ss COUNTY OF BROOKINGS ) On this _____ day of __________, 2011, before me, the undersigned officer, personally appeared ______________, who acknowledged himself to be the County Auditor of the County of Brookings, South Dakota, a municipality organized under the laws of South Dakota, and that he, as such County Auditor, being authorized so to do, executed the foregoing instrument in the name of the municipality by signing the name of the municipality by himself as County Auditor. IN WITNESS WHEREOF, I hereunto set my hand and official seal. _____________________________________ My commission expires: Notary Public - South Dakota 75 City Council Packet December 14, 2010 Open Forum / Presentations / Reports 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 88 City Council Packet December 14, 2010 Open Forum / Presentations / Reports 7. Feasibility Report on re-location of the South Fire Station. To: Jeff Weldon, City Manager From: Mike Struck, Community Development Director Darrell Hartmann, Fire Chief Re: South Fire Station Feasibility Study Pursuant to the Tier 3 Policy Development Projects of the City of Brookings 2010 Strategic Plan, staff examined potential sites for relocating the South Fire Station to improve response times. The feasibility study is intended to generate discussion and assist the City Council and staff in planning and budgeting for a new substation facility. A power point presentation will be provided at the City Council meeting. Informational 89 2010      South Fire Station Feasibility  Study City of Brookings  12/14/2010  Table of Contents    Executive Summary ....................................................................................................................... i  Chapter 1 Introduction ................................................................................................................ 1  Chapter 2 Future Facility Needs ................................................................................................... 6  Chapter 3 Alternatives ................................................................................................................. 9  Chapter 4 Recommendations .................................................................................................... 18  Conclusion .................................................................................................................................. 20    List of Tables    Table 1.  Fire Incidents by Year ....................................................................................................... 7  Table 2.  Site Criteria Matrix ......................................................................................................... 18      List of Figures    Figure 1:  Station Locations ............................................................................................................. 2  Figure 2:  1 ½ Mile Coverage ........................................................................................................... 3  Figure 3:  Station Assignment by Home Address ............................................................................ 4  Figure 4:  Station Assignment by Work Address ............................................................................. 5  Figure 5:  Fire Incidents by Year ...................................................................................................... 8  Figure 6:  Option 1 ........................................................................................................................ 13  Figure 7:  Option 2 ........................................................................................................................ 14  Figure 8:  Option 3 ........................................................................................................................ 15  Figure 9:  Option 4 ........................................................................................................................ 16  Figure 10:  Option 5 ...................................................................................................................... 17  Executive Summary    The Brookings Fire Department provides fire suppression services to the City of Brookings and  surrounding areas.  The City of Brookings, with a 2009 population estimate of 20,184, has experienced  strong growth in the southwest area of the community.  Future growth of the community is expected  to continue to the south and west and jeopardizes the Fire Department’s first‐due engine response  coverage.  The feasibility study evaluated alternatives to alleviate these deficiencies.    Community Development and Fire Department staff conducted the study through the following steps:    • Gather data, including volunteer fire fighters home and work address, existing fire station  service areas, fire incident history, land use plans and mapping, and utility information.  • Analyze the existing fire station service areas to determine coverage deficiencies.  • Analyze future growth area land uses.  • Propose alternative sites to address coverage areas.  • Compare and rank options.    The alternatives examined in this study included:    • Option 1 – Northwest corner of 20th Street South and Main Avenue  • Option 2 – Northeast corner of 20th Street South and Main Avenue  • Option 3 – East side of 22nd Avenue South (Monarch Lane)  • Option 4 – 20th Street South (West of Main Avenue)  • Option 5 – Main Avenue South (Christie Farm)    Each project was evaluated based on it parcel size, future growth potential, accessibility, location to  future growth areas, available municipal utilities, traffic issues, proximity to fire fighters, and service  area.  The evaluation revealed the Northeast corner of 20th Street South and Main Avenue as the  preferred location for a future substation.  A second site (Option 5) is included for consideration as  once infrastructure improvements are made serving the future growth areas of the community, this  site would rank higher than the preferred Option 2 site.    The information provided in the study identifies the need for a fire substation in the southwest  portion of the community.  The exact location is debatable and discussions should ensue to provide  ample time to explore opportunities for further site analysis and acquisition.  i     1 Introduction  Chapter   The City of Brookings continues a trend of steady population growth.  The 2009 population  estimate for Brookings is 20,184, an increase of 1,680 since 2000.  A vast majority of the  land use associated with the population increase is located in the south and west areas of  the community as identified in the Vision 2020 Comprehensive Plan.  As growth extends to  these areas, the fire suppression services provided by the Brookings Fire Department  become more difficult to maintain.  The developed areas along 20th Street South and Main  Avenue South are already outside the recommended one and one‐half (1 ½) mile coverage  range of existing fire stations.    Community Development and Fire Department staff was tasked with evaluating the  feasibility of relocating the South Fire Station to address coverage deficiencies and improve  response times.    Personnel     The Brookings Volunteer Fire Department operates with three full time employees; Fire  Chief, Deputy Fire Chief, and Office Manager as well as forty‐five volunteers.  The Fire  Department was officially formed in 1880 and serves 160 square miles of Brookings County  and 27 square miles of Moody County in South Dakota.    Existing Facilities    The Brookings Fire Department maintains four fire station facilities and one  meeting/training facility.  The existing facilities are described below and displayed in Figure  1:    • Main Station – 307 3rd Avenue:  constructed in 1965, 6 apparatus bays  • East Station – 607 20th Avenue:  constructed in 1978, 2 apparatus bays  • 22nd Station – 531 22nd Avenue South:  constructed in 1995, 2 apparatus bays  • South Station – 1519 32nd Street South:  purchased property in 1984 and converted  existing building into fire station with 2 apparatus bays, concrete building added in  1987 for use as a training facility  • Training Facility – 306 3rd Street    Existing Coverage    The Brookings Fire Department utilizes a one and one‐half (1 ½) mile coverage range from  each of the fire stations.  The coverage range is based on the Insurance Services Office  criteria for distribution of fire companies.    According to the ISO, the built‐upon area of the  city should have a first‐due engine company within 1 ½ miles and a ladder‐service company  within 2 ½ miles.  Figure 2 displays the coverage area for each of the fire stations.    1    Figure 1:  Station Locations      2    Figure 2:  Existing 1 ½ Mile Coverage Areas        3    Responders    Volunteer firefighters are each assigned to a fire station.  The station assignments are based  upon criteria such as proximity to home, work, rank, and experience with apparatus and  equipment.  The Fire Department has six personnel that are classified as direct responders,  which respond directly to the scene to aid in a faster on‐scene time to relay incident  information and take command.  Figures 3 and 4 display volunteer firefighters designated  station assignments by home and work address.        Figure 3:  Station Assignment by Home Address      4    Figure 4:  Station Assignment by Work Address      5     2 Future Facility Needs Chapter   Coverage    The intent behind evaluating a future fire station site is to provide better coverage to the community  while also gaining efficiencies.  During the evaluation phase of this study, it was determined that the  South Fire Station located along 32nd Street South has limitations.  The location provides acceptable  service levels based upon the coverage area map, however, the map does not provide all of the  details.  The South Station has five volunteer fire fighters assigned as primary responders.  The lack  of primary responders indicates the location of the station is not ideal to providing emergency  response.        The current South Station was originally a truck repair facility and construction rubble site.  The City  purchased the site for a fire training site and utilized the building as a maintenance garage and  storage building.  The building was converted to a fire station and housed with fire apparatus to  address a problem with engine distribution required by ISO as well as to have another station south  of the railroad tracks.    On paper, the ISO coverage issues were resolved.  However, in reality the South Station location is  too far from where firefighters live and work.  Daytime response is minimal, at best, unless a specific  piece of equipment is requested.  The current station coverage has gaps in the southwest portion of  the community.  This coverage gap will increase over time as future residential and commercial  development expands in this area.         Facility Needs    Two facilities needs have been identified by the Fire Chief.  The first is a replacement of the South  Fire Station.  The new station request is for a 3,000 square foot facility consisting of a combination of  drive‐thru and back‐in bays.   A unisex restroom, small storage area, maintenance area, and hose  drying area would be included.    Drive‐thru bays would enhance safety as drivers will not have to manipulate blind spots while  backing in a large fire apparatus.  The facility will also enhance safety of volunteers by providing  appropriate clearance zones around fire apparatus.  These areas will be utilized for putting on gear  as well as providing a safe clearance zone around the apparatus for ingress and egress.    The types of apparatus and equipment to be housed at the proposed substation are as follows:     Bay 1:  Tanker #2 – 24’ x 8’   Bay 2:  Engine #3 – 27’ x 8’ – 2”   Bay 3:  HazMat Trailer – 24’ x 7’ and Air Trailer – 15’ x 7’     The second facility improvement addressed is the addition of a training/meeting facility.  This was  not originally tasked as part of the feasibility study, however, when meeting with the Fire  Department Administrative Team, it was apparent a central location would increase efficiency of the  department.  The current training/meeting facility is located at the southeast corner of 3rd Street and  3rd Avenue.  This facility was previously utilized as a Seniors Activities Center.  The facility is  6    experiencing maintenance issues and measures have been taken to keep the facility operational.  A  few years ago the building was re‐roofed to address water leaks.  In 2011, the Fire Department is  planning to replace insulation and the suspended ceiling damaged by water leaks, repair the  deteriorating exterior stucco, and replace inefficient windows.  Asbestos testing will be necessary to  determine the extent and potential risk of the asbestos in the attic and tile floors.         A proposal to add a training/meeting facility to the East Station would help centralize administrative  procedures within one facility.  The current training facilities require administrative personnel to  transport training and reference materials from one facility to the other.  When a reference material  is needed during a meeting or training session, staff either retrieve the material from the East  Station or defer the issue to a future session when the materials are available.  The East Station site  provides a suitable location for a training/meeting facility as an expansion, parking, and access can  all be accomplished without purchasing additional land.    Incidents    Emergency Fire Department calls are referred to as incidents.  Review of historical incidents  encompassed a time period of 2006 to August 2010.  During this time frame, the Brookings Fire  Department responded to 721 incidents.  Seventy‐eight percent of the incidents occurred within the  City of Brookings.  Table 1 provides a breakdown of the number of incidents by year.      Table 1.  Fire Incidents by Year  Year # of Incidents City % of Total  2006 109 85 77.9%  2007 177 145 81.9%  2008 138 108 78.2%  2009 174 137 78.7%  2010 123 90 73.1%    The incidents were mapped by date and location (see Figure 5).  Analysis of incident locations  identifies a vast majority of the incident calls remain in the central core of the city.  The increase of  incidents to the southwest was expected as agricultural land transitioned to residential.  It is  anticipated that the number of incidents will continue to grow to the south and west as  development is phased into these previously undeveloped areas.                  7    Figure 5:  Fire Incidents by Year      8     3 Alternatives Chapter   Option 1:  South Main Water Tower:  The city‐owned site can accommodate a 50’ x 60’ structure  which would equate to three apparatus bays.  Brookings Municipal Utilities currently utilizes the site  for a water tower and telecommunications facility.  A building location along Main Avenue would  place the structure in close proximity to the water tower that it may not be feasible to utilize a drive‐ thru bay system.  A back‐in bay facility would be a significant safety hazard as traffic on Main Avenue  would need to be halted while the apparatus maneuvers into position to back into the facility.  A  location along 20th Street has the potential to accommodate either a drive‐thru bay or back‐in bay.           Two inhibiting factors are a 12 inch water main running from the water tower south to 20th Street.   The water main runs parallel to the gravel service entrance road.  The second factor is the fall  patterns of ice from the water tower.  Further study and evaluation on the fall patterns would be  necessary prior to proceeding with this site as an option.  The coverage area addresses the  deficiencies in the south and southwest portion of the community.          Option 2:  NE Corner 20th Street South/Main Avenue South:  This site can accommodate the building  footprint of a fire station.  The corner lot provides the ability to incorporate drive‐thru bays and dual  access points.  The coverage area addresses the deficiencies in the south and southwest portion of  the community.  Residential development is located to the north and separated by a detention area.   9    Additional landscaping would be recommended to aid in screening the fire station and parking areas  from the adjacent residential properties.  The land is zoned for commercial use and utilizing the site  for a public facility would eliminate a high visibility commercial corner in the City.        Option 3:   22nd Avenue & Monarch Lane:  This site is located on the east side of 22nd Avenue north  of the bike trail.  The site is undeveloped and would provide ample room to accommodate a fire  station.  This site was explored to provide continued coverage to the southeast portion of the  community.  However, there is significant overlap with the 22nd Avenue station by the railroad tracks  and does not address the coverage gaps in the southwest portion of the community.  The property is  owned by 3M.        Option 4:  West 20th Street South:  This site is located approximately 500 feet west of Main Avenue.   The vacant lot is 129 feet wide by 300 feet deep.  Mature trees line the east and north property  lines.  The site can accommodate a 50’ x 60’ building; however, consideration of drive‐thru bays  should be eliminated due to the excessive impervious surfacing necessary to accommodate drive‐ 10    thru bays and responders personal vehicles.   The coverage area addresses deficiencies in the south  and southwest portion of the community.  This option does provide better coverage west of  Timberline Addition.            Option 5:  South Main Avenue/Christie Farm:  This site is located approximately one‐quarter (1/4)  mile south of the intersection of Main Avenue and 20th Street South.  The site is currently not within  city limits and used for agricultural production.  The school district has purchased twenty acres for a  future school site west of the proposed site.  Option 5 does leave a small gap in service coverage  running in a southeasterly direction from Medary Avenue to 22nd Avenue.  In addition, a large  service coverage gap is present in the Timberline Addition and future residential subdivisions to the  west.  Utility infrastructure will dictate the viability of this option as the site is not currently serviced  with municipal utilities.  The benefit to this site is it is undeveloped and land acquisition could be  negotiated on needs rather than availability.  In addition, Main Avenue South is a major arterial,  which provides excellent access to the transportation network.    11                                12    Figure 6:  Option 1      13      Figure 7:  Option 2      14    Figure 8:  Option 3      15    Figure 9:  Option 4      16    Figure 10:  Option 5      17     4 Recommendations Chapter   A site criteria matrix was created with a rating system ranging from 1 to 5, with 5 being excellent.   Based upon available information and the analysis conducted, Options 2 and 5 are recommended as  possible substation sites.  These sites each have their own advantages and disadvantages.  Option 5  appears to score low on the matrix, however, if the intent is to provide a facility to serve current and  future needs of the community, then Option 5 should remain under consideration as the  infrastructure deficiencies will be met as the community continues growing to the southwest.  The  South Main Sanitary Sewer Project will provide Option 5 with a viable connection as well as the  future growth areas of the community.  It is anticipated that the South Main Sanitary Sewer Project  will be complete prior to construction of a new substation.      The original substation request was for a four bay facility with three of the bays being of the drive‐ thru type.  Upon further evaluation, it was determined a three bay facility will be sufficient.  The  types of apparatus to be housed in the substation are described in Chapter 2 Future Facility Needs.   A fifty foot deep structure will provide acceptable depth for Engine #3 and Tanker #2.  The HazMat  Trailer and Air Trailer can be stacked in the third bay with four feet of clearance between the two  trailers and 3 ½ feet of clearance from the garage door and rear wall.  It is recommended a unisex  restroom with washer/dryer and a shower be accommodated behind Bay 1.  A fifteen foot  maintenance area can be accommodated behind Bay 2 to allow volunteers adequate space to  perform routine maintenance on equipment.      Table 2.  Site Criteria Matrix  Site Criteria Matrix  Evaluation Criteria Option 1 Option 2 Option 3 Option 4 Option 5  Effective Size (parcel) 1 3 5 2 5  Future Growth Potential  (expansion opportunity) 1 2 5 1 5  Accessibility of Site to  Adequate Response Routes 5 5 3 2 3  Location to Community  Growth Patterns 3 3 1 3 4  Municipal Water Availability 5 5 2 5 2  Municipal Sanitary Sewer  Availability 5 5 1 5 1  Traffic Issues (controlled  intersections) 4 4 2 2 2  Proximity to Firefighters 4 4 3 4 3  Station Service Area 4 4 2 4 4  Total 32 35 24 28 29    The second recommendation of this study is the addition of a meeting/training room at the East  Station.  This was not originally a part of the study, however, upon discussions with the Fire Chief it  was noted that administrative offices, meeting/training room and storage should be reviewed when  evaluating a future site for a substation.  It is recommended a meeting/training room would help  centralize fire department administrative duties at the East Station.  The parking lot on the west side  18    19    of the station can accommodate firefighters during training and meetings.  The East Station provides  excellent accessibility and visibility to the public.  The meeting/training room addition could be  added to the north of the existing structure.  The current Fire Department meeting and training  facility located on 3rd Street could be removed for additional parking in the downtown area.    The final recommendation pertains to the South Station.  It is recommended that the antique fire  apparatus remain at this location.  This apparatus is not an active unit in the fire department fleet  for providing fire suppression services to the City of Brookings and surrounding areas.  The Safety  House which is currently stationed at the East Station can be moved to the South Station.  The  Safety House is utilized for educational purposes, especially with local schools and daycares.  As  development of the Nature Park proceeds, it is recommended that a security fence be installed  around the South Station to prevent Nature Park users from inadvertently exploring the South  Station training site.  The South Station will continue to be utilized as an outdoor training facility.    Conclusion    Four of the five options accomplish the goal of improving response times by siting a fire station in  closer proximity to where volunteer fire fighters live and work.  The substation site options fulfill the  goal of providing comprehensive fire suppression coverage in areas where structures exist or will  exist in the near future.  This feasibility study identifies areas of deficiency and offers  recommendations for improvement.  The intent is not to design a substation facility, rather to  generate discussion on the needs for continuous improvements to Fire Department facilities to  ensure sufficient fire suppression services to the citizens of Brookings and surrounding areas.    20    City Council Packet December 14, 2010 Contract Awards / Change Orders 8. Action on Resolution No. 105-10, authorizing Change Order on Landfill Trench project. Resolution No. 105 authorizes the final change order to close out the Landfill Trench 4 East Project. The final change order lowers the total project price by $849.00. Resolution No. 105-10 A Resolution Authorizing Final Change Order (CCO#1) for Landfill Trench 4 East R. L. Larson Excavating, Inc. Be It Resolved by the City Council that the following change order be allowed for Landfill Trench 4 East: Final Construction Change Order Number 1: Description: 1) Zone A material specification adjusted to 90-100 passing 3/8 sieve. Change in contract $ -0- 2) Extra backhoe work to tie in clay liner from 3 east to 4 east. Change in contract add $ 12,500.00 3) Add cleanout to North-South Leachate Line. Change in contract add $ 4,000.00 4) Add extra insulation between leachate pipe and culvert. Change in contract add $ 3,500.00 5) Install additional 650 feet of 12 foot fence. Change in contract add $ 8,400.00 6) Mass excavation quantity 424,013 to 403,121 cy=20,892 x $1.40/cy Change in contract deduct ($ 29,249.00) Net Change Order deduct ($849.00) Original Contract Amount was $1,130,000.00 Contract price incorporating this change order is $1,129,151.00 Passed and approved this 14th day of December 2010. CITY OF BROOKINGS _________________________ ATTEST: Tim Reed, Mayor ____________________________ Shari Thornes, City Clerk City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City Manager Recommendation: Approve 113 City Council Packet December 14, 2010 Contract Awards / Change Orders 9. Action on Resolution No. 106-10, a Resolution Authorizing Final Change Order (CCO#1 Final) for 2010-06STI Chip Seal Project, Topkote, Inc. This project is the annual chip seal project, and the 2010 Project Area is located south of 8th Street South, and west of Medary Avenue. The project entailed applying AE-150 oil and city-furnished pea rock chips to the streets, and the City then swept up the excess chips a few days afterward. This project has been completed and is ready to be closed out. The final project cost was $195,204.57, which is an increase of $2,445.57 to the contract, which was due to using more tons of rock than the plan quantities. The summary is as follows: Original Contract Price: $192,759.00 Change from Previously Approved Change Orders: $ 0.00 Contract Price Prior to this Change Order: $192,759.00 Increase of this Change Order (No. 1 Final): $ 2,445.57 Contract Price incorporating this Change Order: $195,204.57 This resolution will approve Change Order No. 1 (CCO #1 Final) for an increase of $2,445.57 to the contract amount and it will close out the project. The project was completed by the completion date and no adjustment to the contract time is needed. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City Manager Recommendation: Approve 115 City Council Packet December 14, 2010 Resolution No. 106-10 A Resolution Authorizing Final Change Order (CCO#1 Final) For 2010-06STI Chip Seal Project Topkote, Inc. Be It Resolved by the City Council that the following change order be allowed for 2010-06STI Chip Seal Project: Construction Change Order Number 1 Final Adjust estimated bid quantities to “as build” quantities for a total increase of $2,445.57 to close out the project. Passed and approved this 14th day of December, 2010. CITY OF BROOKINGS _________________________ Tim Reed, Mayor ATTEST: ____________________________ Shari Thornes, City Clerk 116 City Council Packet December 14, 2010 First Reading** 10. Ordinance No. 39-10: Budget Amendment #3: Authorizing a Supplemental Appropriation to the 2010 Budget for the purpose of providing for additional funds for the Operation of the City. Public Hearing – December 28th ** No vote is taken on the first reading of an Ordinance. The title of the Ordinance is read and the date for the public hearing is announced. Budget Amendment #3 in 2010 is requesting the Council to allow an amendment to the two previous budget amendments. The Finance Department needs the following adjustments to complete the two ordinances where some entries were inadvertently omitted. Within the original budget amendments, the entries below will correct the budget. Fund Revenue Change Non-Departmental-Transfer in from 25% Sales & Use Tax – Ordinance No. 02-10 $30,182 General Fund Non-Departmental-Transfer in from 75% Sales & Use Tax – Ordinance No. 37-10 ($694,000) Swiftel Center – Transfer in from General Fund – Ordinance No. 02-10 ($300,000) Innovation Campus, TIF#1 – Transfer in from General Fund – Ordinance No. 37-10 $1,793,502 Airport – Transfer in from 75% Sales & Use Tax – Ordinance No. 37-10 ($250,000) 117 City Council Packet December 14, 2010 Ordinance No. 39-10 An Ordinance Entitled “An Ordinance Completing Ordinance 02-10 and Ordinance 37-10.” Be It Ordained By the City of Brookings, South Dakota: Whereas, the City Council adopted budget Ordinance No. 02-10 amending the 2010 budget, Whereas, the City Council passed Ordinance No. 37-10 amending the 2010 budget, Whereas, the ordinances needs to be amended to accomplish the intent of the original ordinances by recognizing the entries inadvertently omitted, Whereas State Law (SDCL 9-21-7) and the City Charter (4.06 (a) permit supplemental appropriations provided there are sufficient funds and revenues available to pay the appropriation when it becomes due, Now, Therefore, Be It Resolved by the City Council that the City Manager be authorized to make the following budget adjustments to the 2010 budget: Budget Amendment #3 Revenue Expense GF Non-Departmental-Ord 02-10 30,182 GF Non-Departmental-Ord 37-10 (694,000) Swiftel Center-Ord 02-10 (300,000) TIF#1 Innovation Campus-Ord 37-10 1,793,502 Airport-Ord 37-10 (250,000) This Ordinance is declared to be for the support of the municipal government and its existing public institutions and it shall be in full force and effect after its passage and publication. All Ordinances or parts of Ordinances in conflict herewith are hereby repealed. First Reading: December 14, 2010 Second Reading: December 28, 2010 Published: December 31, 2010 CITY OF BROOKINGS _________________________ Tim Reed, Mayor ATTEST: ____________________________ Shari Thornes, City Clerk 118 City Council Packet December 14, 2010 Alcohol Licenses 11. Public hearing and action on Temporary Liquor License requests for the Shamrock for events on December 31, 2010 and January 15 and 22, 2011. The Shamrock has applied for temporary liquor licenses for events on December 31, 2010, and January 15 and 22, 2011. All documents have been filed with the City pertaining to insurance and other licensing requirements. Notice of Public Hearing On Application for Temporary Liquor Licenses NOTICE IS HEREBY GIVEN that the Brookings City Council in and for the City of Brookings, South Dakota, on December 14, 2010, at 6:00 p.m. in the City Council Chambers, 311 Third Avenue, City of Brookings, will meet in regular session to consider Temporary Liquor Licenses for The Shamrock, 1104 22nd Avenue South: Two Wedding Events-12/31/10; Holiday Party-01/15/11; KOCF MMA Event-01/22/11. NOTICE IS FURTHER GIVEN that any person, persons of the attorney, may appear and be heard at said scheduled public hearing who are interested in the approval or rejection of any such application. Dated at Brookings, South Dakota, this 1st day of December, 2010. Shari Thornes, City Clerk City Manager Introduction Action: Open & Close Public Hearing, Motion to Approve, Roll Call City Manager Recommendation: Approve 119 City Council Packet December 14, 2010 Alcohol Licenses 12. Action on Resolution No. 107-10, a Resolution authorizing the City Manager to sign an Operating Agreement (Wine) for the Swiftel Center. The Swiftel Center has applied for an on-off wine license for their business located at 824 32nd Avenue. An operating agreement is required for wine licenses. Resolution No. 107-10 allows the City Manager to enter into the first five years of the 10-year agreement effective through 2015. This license would be subject to annual state renewal in December. If approved, the application would be forwarded to the State Department of Revenue for final action and issuance of the license. Listed below is specific information related to a wine license request and other procedures that are following with an application. Note that restaurant requirements for wine have been eliminated in state law. Listed below is Chapter 5, Article 2, Section 5-20 of the City Code of Ordinances pertaining to Application Review Procedure. The City Council shall review all applications submitted to the City for available On-Sale Alcoholic Beverage Agreements and for On-Sale Malt Beverage and Wine Licenses in accordance with SDCL 35-2 and in accordance with the following factors: (a) Type of business which applicant proposes to operate: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold unless it can be established that minors do not regularly frequent the establishment. (b) The manner in which the business is operated: On-Sale Alcoholic Beverage Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to establishments which are operated in a manner which results in minors regularly frequenting the establishment. (c) The extent to which minors are employed in such a place of business: On-Sale Alcoholic Beverage 120 City Council Packet December 14, 2010 Operating Agreements and On-Sale Malt Beverage and Wine Licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold and which regularly employ minors. (d) The adequacy of the police facilities to properly police the proposed location: The City Council shall inquire of the Police Chief whether the Police Department can adequately police the proposed location. (e) Other factors: The hours that business is conducted shall be considered by the City Council in its review of applications for on-sale alcoholic beverage operating agreements and on-sale malt beverage and wine licenses. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City Manager Recommendation: Approve Resolution No. 107-10 Swiftel Center 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 Swiftel Center 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 824 32nd Ave. Be It Further Resolved that the City Manager be authorized to execute the Agreement on behalf of the City, which shall be for a period of five (5) years and renewal for another five (5) years. Passed and approved this 14th day of December 2010. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk 121 City Council Packet December 14, 2010 ON-OFF SALE WINE OPERATING AGREEMENT Swiftel Center THIS AGREEMENT made and entered into by and between the CITY OF BROOKINGS, a municipal corporation of the State of South Dakota, hereinafter referred to as the “City” and the Swiftel Center, Tom Richter, Executive Director, hereinafter referred to as the “Manager”. WITNESSETH: WHEREAS, the City has been issued an on-off sale alcoholic beverage license and is engaged in the sale of alcoholic beverages, and WHEREAS, the City desires to enter into an operating agreement on a limited basis with the Manager for the purpose of operating an on-off sale establishment or business for and on behalf of the City pursuant to law, and WHEREAS, the Manager has offered to have facilities in which to operate said on-off sale establishment solely upon the premises hereinafter described. NOW, THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS: Section I. This Agreement is made and entered into on a limited basis between the parties hereto to allow the Manager to operate a retail on-off sale premises, pursuant to and in accordance with all of the terms and conditions of this Agreement in accordance with all State laws and City Ordinances now in effect and as may be enacted in the future. Section II. The Manager shall be individually responsible for all operating expenses of said on-off sale establishment, including but not limited to utilities, taxes, insurance and license fees, if any. The Manager shall furnish all equipment and fixtures necessary to operate the establishment. Section III. The on-off sale establishment shall be located upon real estate in the City of Brookings, South Dakota, described as: Blocks 4-5, Wiese Addition, City of Brookings Brookings County, South Dakota Section IV. The Manager shall dispense only alcoholic beverages supplied by the Municipal Off-Sale Establishment. 122 City Council Packet December 14, 2010 Section V. This Agreement shall be in full force and effect for a period of five (5) years with the Manager having the option and privilege of a five (5) year extension, subject to the approval of the governing body of the City of Brookings. Section VI. Either the Manager or the City may terminate this Agreement without cause upon ninety (90) days written notice served by either party upon the other. The City reserves the right to immediately suspend or revoke this Agreement without ninety (90) days written notice for alcohol related violations in accordance with the provisions of Resolution No. 25-88 or any amendments thereto or for any late payments for alcoholic beverages supplied by the Municipal Off-Sale Establishment to be sold on the premises of Manager. Section VII. The Manager shall receive as full compensation for its services rendered, the net profit from the on-off sale establishment under its management, and the sole profit to be derived by the City shall be the markup hereinafter set forth on alcoholic beverages furnished by the municipality to the Manager for the purposes of resale on the premises as above described. Section VIII. The Manager shall pay to the City for all alcoholic beverages sold by the City to the Manager for resale on the above-described premises, the actual cost of distilled spirits and wine supplied by the City, plus eleven percent (11%) in excess of such cost; the Manager shall pay to the City for all malt beverages sold by the City to the Manager for resale on the above-described premises, the actual cost of malt beverages, plus ten percent (10%) in excess of such cost. The actual cost shall include cost price and transportation charges. The markup percentages provided in this Agreement are subject to change by the City of Brookings. In the event markup percentages are changed by Ordinance, then the markup percentages provided by City Ordinance shall supercede the markup percentages provided herein. The Manager further agrees that if either of the markup percentages shall be increased at any time by the City, the Manager shall pay the markup as so increased. Section IX. A complete and detailed record shall be maintained by the City of all alcoholic beverages supplied to the on-off sale Manager and such alcoholic beverages so supplied shall be evidenced by pre-numbered invoices prepared in triplicate showing the date, quantity, brand, size, and actual cost of such item, and such invoice shall bear the signature of the authorized representative of the on-off sale Manager or its authorized representative. One copy thereof shall be retained by the Municipal Off-Sale Establishment, one copy shall be retained by the on- off sale establishment, and one copy shall be filed with the City Clerk. All copies shall be kept as permanent records and made available for reference and audit purposes. The Manager also agrees to maintain a complete record of all alcoholic beverages received from the City. 123 City Council Packet December 14, 2010 Section X. In consideration of the covenants and agreements herein contained, the Manager agrees to pay the CITY OF BROOKINGS, Five Hundred and no/100 Dollars ($500.00), constituting the Annual License Fee on or by January 1, 2011, and on or by the first day of each year thereafter as long as this agreement shall remain in force and effect. The Manager further agrees that if the annual fee shall be increased at any time by the legislature, the Manager shall pay the amount of any such increase. In addition, the Manager agrees to pay the federal stamp fee. Section XI. The Manager agrees to keep the premises in a neat, clean, and attractive appearance, and Manager further agrees to operate said on-off sale establishment only on such days and at such hours as permitted by state law and city ordinances. Section XII. The Manager shall have the right to return, at any time, alcoholic beverages received from the City and to receive in return any deposit made for such alcoholic beverages; in the event of termination of the business, all unused alcoholic beverages, which may be resold without discount may be returned to the City and the Manager shall be reimbursed for the cost of such alcoholic beverages. Section XIII. The Manager agrees to abide by the credit policies of the City and acknowledges, by execution of this Agreement, receipt of a copy of the credit policies of the City. The City reserves the right to change or terminate its credit policies at any time, but shall be required to provide written notice to Manager prior to the effective date of the change or termination date of the credit policies. Section XIV. The Manager agrees to furnish the City upon demand, evidence of payment of the following: A. All salaries of on-off sale employees; B. Social Security and withholding taxes on said employees; C. Worker’s Compensation insurance premiums covering said employees; D. Unemployment taxes on the payrolls of said employees; E. General liability insurance protecting both the City and Manager against claims for injury or damages to persons or property, said policy to have general liability limits of at least Five Hundred Thousand Dollars ($500,000.00) single limit, and One Million Dollars ($1,000,000.00) aggregate, and a limitation of Fifty Thousand Dollars ($50,000.00) for damage to property. The general liability insurance limits are subject to change and Manager agrees to change limits of insurance if required by the City; F. Rent and utility bills; G. Any and all miscellaneous expenses, including taxes. Section XV. The Manager agrees to observe all Federal and State laws and all ordinances of the City of Brookings. 124 City Council Packet December 14, 2010 Section XVI. The City covenants and agrees to furnish the on-off sale license to Manager pursuant to the terms and conditions of this Operating Agreement and the terms and conditions of the on-off sale license. Section XVII. The City shall have the right to make inspections and investigations of the premises during the hours of operation, and make audits and examinations of the records of the Manager relating to the on-off sale establishment. Section XVIII. It is further specifically understood and agreed that the waiver of the rights of the City under this Agreement shall not constitute a continuous waiver, and any violation or breach of the terms of this agreement by the Manager shall constitute a separate and distinct offense and grounds for immediate termination and revocation of this Agreement. Section XIV. This agreement shall not be assignable to another person or location without the written consent of the City. IN WITNESS WHEREOF, the parties hereto have executed this agreement this 14th day of December, 2010. CITY OF BROOKINGS, SD A Municipal Corporation By: Jeffrey W. Weldon, City Manager ATTEST: Shari Thornes, City Clerk MANAGER ___________________________________ Operating Agreement/Business Owner __________________________________ Operating Agreement/Business Owner 125 City Council Packet December 14, 2010 Second Readings / Public Hearings 13. Ordinance No. 38-10: An ordinance amending the Zoning Ordinance of the City of Brookings and pertaining to Small Wind Energy Conversion Systems (SWECS) for the purposes of administration of the Zoning Ordinance. Proposal: Create regulations pertaining to the use, design, construction, and placement of small wind turbines. Background: Staff has been researching the various aspects of wind energy conversion systems for three years or more. Ordinances have bee adopted across the country, including South Dakota, that permit the use of wind turbines that supplement energy costs for residential, commercial, and industrial uses. The majority of the ordinances are written by counties for large rural wind energy conversion systems similar to Buffalo Ridge. Specifics: The ordinance proposed for the City of Brookings pertains only to small wind energy conversion systems or SWECS. The major elements of the ordinance involve the following: Districts – A SWECS is a conditional use in the I-1and I-2 Industrial Zones only. Definitions – Terms specific to the industry and a wind turbine structure are listed. Permits • Application process for a conditional use is detailed. • Application process for a building permit is detailed. Design – These characteristics are very similar to other tower regulations except for noise and certain mechanical features. Additional requirements – This section includes miscellaneous aspects commonly regulated by other jurisdictions. Section D.2. is related to the fact that South Dakota currently does not have a policy to allow individuals with solar or wind generators to sell the power back into the grid at fair rates. Setbacks – The setbacks simply refer to the “fall radius” of a tower. Recommendation: The Planning Commission voted 9 yes and 0 no to recommend approval of the zoning amendments. City Manager Introduction Action: Open & Close Public Hearing, Motion to Approve, Roll Call City Manager Recommendation: approve 126 City Council Packet December 14, 2010 Ordinance No. 38-10 An Ordinance amending the Zoning Ordinance of the City of Brookings and pertaining to Small Wind Energy Conversion Systems (SWECS) for the purposes of administration of the Zoning Ordinance Be it ordained by the Council of the City of Brookings, State of South Dakota: that Chapter 94, Zoning Ordinance, shall be amended as follows: Section 1. Article IV. District Regulations Division 1. Generally Section 94-136 Industrial I-1 Light District (e) Conditional Uses 5. SWECS Section 94-162 Industrial I-2 Heavy District (e) Conditional Uses 18. SWECS Section 2. Article V. Conditional Uses Division 3. Standards Sec. 94-307 Wind Energy Conversion Systems (SWECS), Small: Small wind energy conversion systems shall comply with Section 94-367 Section 3. Section 94-367 Small Wind Energy Conversion System (SWECS) The purpose of this section is to permit the use of SWECS, as an accessory use only, in certain districts by establishing regulations pertaining to their location, construction and operation while protecting the public’s health, safety and welfare and maintaining the aesthetic integrity of the community. Any WECS that exceeds the parameters defined for a SWECS is prohibited within the City of Brookings A. Definitions. The following definitions shall apply: 127 City Council Packet December 14, 2010 Rotor Diameter – The diameter of the circle described by the moving rotor blades Shadow Flicker - A pulsating or intermittent light effect created when sunlight is interrupted at regular intervals by the spinning rotor blades of a wind turbine SWECS – A structure or device consisting of a wind turbine, tower, base and associated controls or electronics. A SWECS is characterized by having a total height of 125 feet or less, a swept area of 2,000 square feet or less and a peak performance of 100 Kw or less. SWECS Tower Height – The height of the tower, exclusive of the rotor blades SWECS Height, Total – The distance measured from the tower base at grade level to a blade tip positioned at its highest point Swept Area – The area, in square feet, of the circle created by the moving rotor blades Wind Turbine – A machine consisting of a generator, blades and tail that converts wind energy into kinetic energy for mechanical or electrical use. B. Conditional Use Permit required. An application for a conditional use permit to erect a SWECS shall be accompanied by a site plan, drawn to scale, showing the following information: 1. The legal description of the property 2. The scale of the plan and north arrow 3. The proposed location of the SWECS tower from all property lines and any overhead utility lines. 4. The design and total height of the SWECS depicted as an elevation view 5. The location, height, and use of all existing buildings on the site and on abutting parcels that are closer than 4 times the total SWECS height. 6. The location of all rights-of-way C. Permit Required. An application for a building permit is required prior to the construction of any SWECS. The following data shall be required before a permit is issued: 1. Compliance with applicable local, state and federal building, electric and safety codes. 2. The manufacturer’s assurance that, once the SWECS is operational, it will not produce electromagnetic interference that would disrupt transmissions from radio, television or microwave towers. 3. The manufacturer’s statement stating that the system has been successfully and safely operated in atmospheric conditions similar to those in the City of Brookings 128 City Council Packet December 14, 2010 D. Design Characteristics. The following design characteristics shall be part of any SWECS installed in the City of Brookings. 1. Towers shall be a monopole design only 2. The SWECS shall be off-white, light gray, or other similar neutral color and shall be non-reflective 3. No lighting shall be permitted except when required by a more restrictive regulation 4. The lowest point of any rotor tip shall not be less than 30 feet above the ground or less than 30 feet from any structure or tree. 5. Electrical controls, control wiring, and power lines shall be wireless or underground 6. Towers shall not have any climbing apparatus within 12 feet of the ground except when a 6 foot high fence with a locking gate is installed around the perimeter of the tower base. 7. SWECS shall have a mechanical braking system that serves as a shutdown mechanism 8. SWECS shall have a turbine governing system that includes blade pitching, tilting or furling. 9. SWECS shall not produce audible sound levels in excess of 60 dBA when measured at the property line of any property that contains an occupied building 10. SWECS shall have appropriate lightning protection for discharging electric energy to the ground E. Additional Requirements 1. Signs are prohibited on any portion of a SWECs except for warning information related to the maximum power output, nominal voltage and maximum current, and emergency shutdown procedures. 2. The commercial sale of power is prohibited. However, power may be transmitted to an electric grid of an electric utility company through an approved interconnection 3. Any SWECS found to be unsafe by the City shall be repaired by the landowner to meet all federal, state and local safety standards or removed within six (6) months. If any SWECS is not operational for a period of twelve (12) consecutive months or more, the city shall request, by certified mail, a response within 45 days from the landowner stating the reasons for the operational difficulty and a reasonable timetable for corrective action. If the City deems the timetable unreasonable, the landowner will be notified that the SWECS shall be removed at the expense of the landowner within 120 days of receipt of the notice. 4. A shadow flicker model shall be submitted demonstrating that shadow flicker will not fall on or in any adjacent occupied building or right-of-way. 129 City Council Packet December 14, 2010 F. Setbacks. 1. A minimum setback of 1.5 times the total SWECS height shall be maintained between the SWECS and any structure intended for human occupation. 2. A minimum setback of 1.1 times the total SWECS height shall be maintained between the SWECS and any property line, overhead utility line or pole or other tower structure. Section 4. Any or all ordinances in conflict herewith are hereby repealed. First Reading: November 23, 2010 Second Reading: December 14, 2010 Published: December 17, 2010 CITY OF BROOKINGS ______________________________ Tim Reed, Mayor ATTEST: ________________________ Shari Thornes, City Clerk 130 City Council Packet December 14, 2010 Planning Commission Brookings, South Dakota November 2, 2010 OFFICIAL MINUTES Chairperson Alan Gregg called the regular meeting of the City Planning Commission to order on November 2, 2010, at 7:00 PM in the Council Chamber at City Hall. Members present were Wayne Avery, Mike Cameron, Donna DeKraai, Greg Fargen, John Gustafson, Al Heuton, Dave Kurtz, John Sydow, and Gregg. Also present were Jim Weiss, John Mills, Jason Peterson, Wayne Wagner, City Manager Jeff Weldon, City Engineer Jackie Lanning, Community Development Director Mike Struck, Planning and Zoning Administrator Dan Hanson and others. Item #8 – The City of Brookings has submitted amendments to the zoning ordinance pertaining to wind energy conversion systems. (Cameron/Heuton) Motion to approve the amendments. All present voted aye. MOTION CARRIED. SUMMARY OF DISCUSSION Item #8 – Hanson summarized the specific elements of the ordinance. The draft had not been modified since the original review. DeKraai asked how much citizen interest had been shown for wind turbines. Hanson replied that only two or three citizens had contacted him. Heuton asked if a full radius of 1½ times the height of the turbine was too restrictive. Hanson responded that the number was common in other ordinances but could be reduced. The distance may have been related to providing a safety zone when a blade or turbine crashed into the ground. 132 City Council Packet December 14, 2010 Second Readings / Public Hearings 14. Public hearing and action on the Airport Dual-Track Site Selection. Background: The City of Brookings began the Dual Track Airport Environmental Assessment process in 2006. The Dual Track process looked at options for the City to resolve compliance issues at the current airport and a new airport site. The draft Environmental Assessment is the most recent document that the City has been working on for this process. The City must choose a preferred alternative to move forward in the Environmental Assessment. Once the preferred alternative is chosen, additional study will be conducted on the selected alternative to complete the Environmental Assessment document. On November 8, 2010, the City conducted a Formal Public Hearing for the draft Environmental Assessment. The Formal Public Hearing is required by NEPA (National Environmental Policy Act) to receive and address comments and questions on the accuracy and validity of the Environmental Assessment. These comments/questions will be provided to the City Council prior to making a decision on a preferred alternative. On November 23, 2010, the City Council held a public hearing for input on the two airport options prior to making a decision on a preferred alternative. The purpose of this meeting is for the City Council to look at all information regarding the airport project and to discuss all aspects of the airport project to make an informed decision on a preferred alternative for the Brookings Regional Airport. There will be an opportunity for questions and comments from the City Council and the public during this meeting. Consultants from Helms Associates and City staff will be available to answer questions regarding the Environmental Assessment and the entire project. Airport Board Recommendation: (The Brookings Airport Board was called to order by Chair Jeff Boulware on Tuesday, December 7, 2010, at 4:30 PM in the Meeting Room located in City Hall. Members present were Jim Bailey, Judy McLaughlin, Lynn Riedesel, Orv Smidt, and Boulware. Also present were City Engineer Jackie Lanning, Airport Manager Mike Wilson, Paul Hanusa and Randy Hanson. A motion was made by Riedesel and seconded by McLaughlin to approve the minutes from the November 18, 2010 meeting. All present voted aye. MOTION CARRIED. The following is an excerpt from the approved November 18, 2010 Airport Board Minutes: Brookings Airport Board Brookings, SD 57006 November 18, 2010 133 City Council Packet December 14, 2010 The Brookings Airport Board was called to order by Chair Jeff Boulware on Thursday, November 18, 2010, at 4:30 PM in the Community Room located in the lower level of City Hall. Members present were Jim Bailey, Judy McLaughlin, Lynn Riedesel, Orv Smidt, and Boulware. Also present were City Engineer Jackie Lanning, Airport Manager Mike Wilson, and those listed on the attached sign-in sheet. Item #8 – Discussion and Recommendation to the Brookings City Council on a preferred alternative for the BKX Dual Track Environmental Assessment – Bob Babcock, Helms & Associates, had a slide presentation. After the presentation, Bob took questions and comments from the audience. • Federal dollars could have to be paid back if nothing is done. • Duane Knutson, Chair of the County Planning and Zoning Board stated that the best use of the Trenton Township land is farming. • Terry Pritchard felt what it boiled down to is whether or not the City wanted the Trenton Township land which is the best farming land in the county. • Knutson asked if the City could sell the present airport property land before a new airport would be operational in Trenton Township. Babcock said that they can have a plan in place, but they cannot sell the land until it is released by the FAA. • Lanning stated that the land would have to be developed first and development such as roads, sewer, water, electricity, is quite costly. • George Skon asked if there was a completion date set for the new airport. Babcock said the old airport would have to be decommissioned before property sales could begin. Boulware asked for comments from the Airport Board members. • McLaughlin said she feels many political issues are involved. She added that developed land is not as valuable as agricultural land and ag land costs have skyrocketed. She said she prefers the airport stay where it is. • Smidt felt the need for a new, updated Airport Master Plan. He added that the present plan created a vision, and it was followed. He said that cost alternatives present uncertainties. He added that he favored leaving the airport where it is and move forward. • Bailey said he felt the present airport had many functions. One function is fulfilling the commercial needs for industries in town. Another is the training program at SDSU. He felt the best alternative was to leave the airport where it presently is and make the modifications according to the FAA. • Riedesel said that this issue has been quite a learning process. He added that from a commercial pilot’s standpoint, the 6,000 foot runway is wonderful. He commended Babcock on the excellent job he has done for the City. He added that as a board member, he has been frustrated at times, but he felt, because of the cost, it is best to leave the airport where it is. • Boulware said he could speak as a hangar owner, as a plane owner, and as a person that is dependent upon the airport for his job. What is best for the entire community is what should be done. He added that it is not a black and white situation but a very gray situation. He said he felt it would be better to keep the airport where it is and expand it. He felt that was the best use of the land that the 134 City Council Packet December 14, 2010 airport presently sits on. He said that Trenton Township is very good agricultural land, but it is close to an expanding community. He wondered if that area would become developed in the future. (Riedesel/Bailey) Motion to recommend to the Brookings City Council to maintain the airport in its current location and realign and expand it as the BKX Alternative suggests. All present voted aye. MOTION CARRIED. Airport Manager and City Engineer Information: Staff has outlined the following summary of several pros and cons based on an airport management perspective, although the following list is not all inclusive of every pro and con and additional information could be presented at the public hearing at the December 14, 2010 City Council meeting that may change this information: Trenton Township Option: Reasons for going to a new airport site: 1. All new wiring on the airport, less maintenance of old systems. 2. All new pavement on the airport, less maintenance of old pavement. 3. Fewer wetlands near airport, possibly less birds. 4. Fewer homes and businesses in vicinity, possibly less complaints. Reasons against a new airport site: 1. Increased time for emergency services to get to the site. 2. Increased travel time to the City of Brookings. 3. Opposition from residents and current airport users. 4. Uncertain if a deep water well get the same pressure and flow of water in case of fire emergency. 5. Higher initial cost with more financial uncertainty. 6. May have difficulty with setting moved buildings and hangars on their new foundations. BKX Expansion Option: Reasons for staying at current site: 1. Keeps airport in the City limits which is more convenient for most travelers. 2. Lower cost. 3. Land use stays the same. 4. Buildings do not need to be relocated. Reasons against staying at current site: 1. More environmental impacts, such as wetlands, floodplains, floodways, possibly to the Topeka Shiner (possibly at new site as well) 2. Some old systems may remain in place (wiring, transformers, items to be repaired in the future) City Manager Recommendation: The examination of the dual-track planning analysis has been a long, arduous, frustrating, and expensive process. While 135 City Council Packet December 14, 2010 comprehensive due diligence is necessary for such a monumental decision, the process should not have extracted such a substantial toll on all of our resources, including the residents in Trenton township and those near the existing airport. While the results of the environmental assessment, as a stand-alone consideration, would favor the Trenton township site, there are many other factors that add to the mix of considerations needed for an objective decision. Some of those being non-reimbursed development costs, distance, property acquisition/condemnation, development schedule, legal considerations, disruptions to Trenton township, among many others. From my perspective, the most significant issue is the difference in development costs between the two options. The Trenton township site is far more costly and the longer it takes for site development, the sooner these costs become outdated and the total cost will only increase. What’s more, we have no firm commitment on the amount of this cost that would be reimbursable leaving the city taxpayers to pay the difference; an amount that would most likely be defeated in a referral – and probably should be. The Trenton township site cost analysis suggests $3.7 million to $8.9 million could be applied against the cost in sale of existing airport land. This possible revenue source is highly speculative at best and most likely will not materialize, leaving the project to cost in excess of $32 million with some unknown portion of that covered by the federal government. Such an amount would seriously compromise the City’s financial stability and would likely decrease our bond rating, unduly limit borrowing authority, and force other capital projects to be deferred or cancelled. As a result, my staff recommendation is that the City Council concurs with the recommendation of the Airport Advisory Board and selects the On-Site Alternative as the preferred option. However, I reserve the right to alter my recommendation as a result of any new information presented at the December 14 public hearing. I believe this disclaimer is necessary in fairness to the public hearing process. City Manager Introduction Action: Open & Close Public Hearing, Motion to Approve, Roll Call City Manager Recommendation: See comments above 136 City Council Packet December 14, 2010 Second Readings / Public Hearings 15. Public Hearing and Action on Resolution No. 108-10, a Resolution of Intent to Lease Real Property (South Dakota Ag Experiment Station – Airport hayland). The City would like to lease the City-owned hayland located on Brookings Regional Airport property, for haying operations, which is shown on the enclosed map. In the past, the City has leased this property haying operations, which provides for extra income for the City’s airport fund as well as provides for weed control on City property. The City had bid the airport hayland and cropland for the 2007, 2008 and 2009. For 2010, the City entered into a one-year lease agreement with South Dakota Foundation Seeds who then subleased the hayland to South Dakota Ag Experiment Station. Both of these companies are an affiliate of SDSU. The City would like to enter into an agreement directly with South Dakota Ag Experiment Station for 2011. City Attorney Britzman provided the following SDCL references for this type of lease: 9-12-5. Powers - Lease or transfer of property for public purposes. Every municipality shall have power to lease or sell or give and convey any personal or real property of the municipality or perform any work or render any services, to the state or any public corporation thereof, to be used by such grantee for an authorized public purpose; such lease or sale or gift and conveyance, or the performance of such work, to be authorized, made or done on the terms and in the manner provided by resolution of the governing body. 9-12-5.1. Powers - Lease of property - Term and conditions. Every municipality may lease its municipally-owned property. Any such lease shall be for a term and upon the conditions provided by resolution of the governing body. 137 City Council Packet December 14, 2010 9-12-5.2. Powers - Lease to private person - Resolution - Notice - Hearing - Authorization. If the governing body decides to lease any municipally owned property to any private person for a term exceeding one hundred twenty days and for an amount exceeding five hundred dollars annual value it shall adopt a resolution of intent to enter into such lease and fix a time and place for public hearing on the adoption of the resolution. Notice of the hearing shall be published in the official newspaper once, at least ten days prior to the hearing. Following the hearing the governing body may proceed to authorize the lease upon the terms and conditions it determines. According to City Attorney Britzman, this lease is not required to be bid, due to the fact the entity is a public-private business entity, though it could be offered for bids if you so desired. Since “South Dakota Foundation Seeds”, the proposed lessee, is not a “private person” and is not technically the “State”-- it is a nonprofit corporation affiliated with SDSU, he concluded we can lease without bidding provided it is not to a private person. South Dakota Ag Experiment Station proposes to lease the designated hayland at the Brookings Regional Airport, which is approximately 167 acres, at $40.00 per acre, which is the same price as 2007 through 2010. This lease will be a one year lease, which will allow for the City to make adjustments to the cropland and hayland based on the outcome of the Dual Track vote and the wildlife assessment. The Notice of Public Hearing was advertised one time ten days prior to the hearing as required. This resolution will allow the City to enter into a lease agreement with South Dakota Ag Experiment Station for one year for hayland at the Brookings Regional Airport. City Manager Introduction Action: Open & Close Public Hearing, Motion to Approve, Roll Call City Manager Recommendation: Approve 138 City Council Packet December 14, 2010 Resolution No. 108-10 Resolution of Intent to Lease Real Property Be It Resolved by the governing body of the City of Brookings, South Dakota, that the City of Brookings intends to enter into a Lease with South Dakota Ag Station for a period of one (1) year, commencing on January 1, 2011 and ending December 31, 2011 and pertaining to the following described property: The designated hayland on the Brookings Regional Airport, one hundred sixty-seven (167) acres more or less in Sections 26, 27, and 35, T110N, R50W, in the City of Brookings, Brookings County, South Dakota. The Lease will be an amount of Forty Dollars ($40.00) per acre for the hayland, payable first half on April 1 and the remaining half on November 1. The City of Brookings may terminate this Lease at any time in the event a parcel of the above described property is to be adjusted by the City of Brookings. If a portion of the hayland is changed, the number of acres to be paid for will be adjusted at the unit price per acre. Be It Further Noted, that a Public Hearing on this Resolution was held on December 14, 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 real property. Passed and approved this 14th day of December 2010. CITY OF BROOKINGS ____________________________________ Tim Reed, Mayor ATTEST: __________________________ Shari Thornes, City Clerk 139 City Council Packet December 14, 2010 Second Readings / Public Hearings 16. Public Hearing and Action on Resolution No. 109-10, a Resolution of Intent to Lease Real Property (South Dakota Foundation Seeds – Airport cropland) The City would like to lease the City-owned cropland located on Brookings Regional Airport property, for farming operations, which is shown on the enclosed map. In the past, the City has leased this property farming operations, which provides for extra income for the City’s airport fund as well as provides for weed control on City property. The City had bid the airport hayland and cropland for the 2007, 2008 and 2009. For 2010, the City entered into a one-year lease agreement with South Dakota Foundation Seeds for the cropland, which is an affiliate of SDSU. The City would like to enter into an agreement directly with South Dakota Foundation Seeds for 2011 for the cropland. City Attorney Britzman provided the following SDCL references for this type of lease: 9-12-5. Powers - Lease or transfer of property for public purposes. Every municipality shall have power to lease or sell or give and convey any personal or real property of the municipality or perform any work or render any services, to the state or any public corporation thereof, to be used by such grantee for an authorized public purpose; such lease or sale or gift and conveyance, or the performance of such work, to be authorized, made or done on the terms and in the manner provided by resolution of the governing body. 9-12-5.1. Powers - Lease of property - Term and conditions. Every municipality may lease its municipally-owned property. Any such lease shall be for a term and upon the conditions provided by resolution of the governing body. 141 City Council Packet December 14, 2010 9-12-5.2. Powers - Lease to private person - Resolution - Notice - Hearing - Authorization. If the governing body decides to lease any municipally owned property to any private person for a term exceeding one hundred twenty days and for an amount exceeding five hundred dollars annual value it shall adopt a resolution of intent to enter into such lease and fix a time and place for public hearing on the adoption of the resolution. Notice of the hearing shall be published in the official newspaper once, at least ten days prior to the hearing. Following the hearing the governing body may proceed to authorize the lease upon the terms and conditions it determines. According to City Attorney Britzman, this lease is not required to be bid, due to the fact the entity is a public-private business entity, though it could be offered for bids if you so desired. Since “South Dakota Foundation Seeds”, the proposed lessee, is not a “private person” and is not technically the “State”-- it is a nonprofit corporation affiliated with SDSU, he concluded we can lease without bidding provided it is not to a private person. South Dakota Foundation Seeds proposes to lease the designated cropland at the Brookings Regional Airport, which is approximately 104 acres, at $72.00 per acre, which is the same price as 2007 through 2010. This lease will be a one year lease, which will allow for the City to make adjustments to the cropland and hayland based on the outcome of the Dual Track vote and the wildlife assessment. The Notice of Public Hearing was advertised one time ten days prior to the hearing as required. This resolution will allow the City to enter into a lease agreement with South Dakota Foundation Seeds for one year for cropland at the Brookings Regional Airport. City Manager Introduction Action: Open & Close Public Hearing, Motion to Approve, Roll Call City Manager Recommendation: Approve 142 City Council Packet December 14, 2010 Resolution No. 109-10 Resolution of Intent to Lease Real Property Be It Resolved by the governing body of the City of Brookings, South Dakota, that the City of Brookings intends to enter into a Lease with South Dakota Foundation Seeds for a period of one (1) year, commencing on January 1, 2011 and ending December 31, 2011 and pertaining to the following described property: The designated cropland on the Brookings Regional Airport, one hundred four (104) acres more or less in Sections 26, 27, and 35, T110N, R50W, in the City of Brookings, Brookings County, South Dakota. The Lease will be an amount of Forty Dollars ($72.00) per acre for the cropland, payable first half on April 1 and the remaining half on November 1. The City of Brookings may terminate this Lease at any time in the event a parcel of the above described property is to be adjusted by the City of Brookings. If a portion of the cropland is changed, the number of acres to be paid for will be adjusted at the unit price per acre. Be It Further Noted, that a Public Hearing on this Resolution was held on December 14, 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 real property. Passed and approved this 14th day of December 2010. CITY OF BROOKINGS ____________________________________ Tim Reed, Mayor ATTEST: __________________________ Shari Thornes, City Clerk 143 City Council Packet December 14, 2010 Other Business 17. Action on Resolution No. 110-10, establishing $75.00 per special meeting Council Stipend. To: Mayor and Council Members, Jeff Weldon, City Manager and Shari Thornes, City Clerk From: Steven J. Britzman, City Attorney Date: December 8, 2010 Re: Council Special Meetings compensation I am providing two alternative proposed Resolutions, depending upon whether the Council believes this provision should become effectively immediately (i.e. 20 days after publication) or as of the first meeting of May, 2011. This Resolution presumes that the Annual Salary as provided in Section 2.04 does not cover special meetings. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City Manager Recommendation: Approve 145 City Council Packet December 14, 2010 Resolution No. 110-10 – Version 1 Resolution Establishing Special Meeting Compensation for Council Members of the City of Brookings Be It Resolved by the City Council of the City of Brookings, South Dakota that for special meetings of the City Council, the Council Members shall be paid a stipend of $75.00 per special meeting in addition to the annual compensation as established in Section 2.04 of the City Charter. In accordance with City Charter Section 2.04, this resolution shall not become effective until the first regular meeting in May, 2011. Passed and approved on the 14th day of December, 2010. CITY OF BROOKINGS: Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk ************************************************************** Resolution No. 110-10 – Version II Resolution Establishing Special Meeting Compensation for Council Members of the City of Brookings Be It Resolved by the City Council of the City of Brookings, South Dakota that for special meetings of the City Council, the Council Members shall be paid a stipend of $75.00 per special meeting in addition to the annual compensation as established in Section 2.04 of the City Charter. Passed and approved on the 14th day of December, 2010. CITY OF BROOKINGS: Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk 146 City Council Packet December 14, 2010 Other Business 18. Discussion and action on the City/County Building Construction Budget. Pursuant to your budgetary discussion of the last council meeting, the council opted to continue such discussion to this meeting. Enclosed in the packet are the same sets of materials from the last meeting with the addition of the site plan, floor plans and construction schedule as approved by the Joint Powers Board. The value engineering options are cost reduction opportunities, some of which you discussed at the last meeting. As a further method of cost containment, we can incorporate alternatives in the bidding process for those items where is it feasible to do so; or, we can examine the costs of various bid items after bidding to re-bid or make substitutions for certain items. One of the advantages of construction management is with the segregated bids, we can identify specific items where the bid was perhaps not favorable, and focus on that item for a value engineering substitution while still awarding other contracts to keep the project on schedule. Action: Motion to remove from table: 11/23/10: “A motion was made by Bartley, seconded by Bezdichek, to approve the $5.9 million budget.” City Manager Introduction Request Public Comment, Roll Call City Manager Recommendation: Approve 147 PROGRESS PRINT PROGRESS PRINT PROGRESS PRINT PROGRESS PRINT City Council Packet December 14, 2010 The following is information from the November 23, 2010 Council Packet: November 16, 2010 TO: Mayor and City Council Members FROM: City Manager Jeff Weldon RE: Construction budget for joint City-County Government Center Initial Value Engineering budget reductions Pursuant to council direction from last July, I have been working with our architects and construction managers to examine value engineering options that would reduce the City’s share of the project to approximately $5.5 million. The following table lists 13 options to reduce the construction cost. It also lists Reduction Option 14 which is to reduce the overall size of the building via two methods. The Joint Powers Board has already approved Reduction Options 1 and 2. The sum total or implementing Options 1-8, 12, and 13 bring the project to $5.597 million. Options 9-11 will realize additional savings which should be close to the target amount of $5.5 million. However, these options have yet to be determined since the design development process is not yet far enough along to produce any more specific estimates than what is already provided in the schematic design budget. The council previously expressed a concern that design not progress too far to lock us into a project. However, in this case, design has not gone far enough to yield any further specific cost estimates. At this point, the project remains “lines on paper” and can be changed; but with each progressive step, any backtracking only adds to the design and timing expense. That is simply the nature or architecture. However, it is also the nature of architecture that we have to make an initial investment to define a project to the extent that cost estimates can be assigned to it. Option #14 is much more drastic. It provides for the elimination of the Park and Recreation office and/or the elimination of any provision for future growth. Ramifications of these reductions From the outset, this project was designed to accommodate very specific goals for the City and County. Two such goals included: 1) Construct a quality building that represents an investment the taxpayers can be proud of, that is efficient to operate, is functional, but is not ostentatious or overly ornate. 2) Construct a building that has a certain degree of future growth planned. We continue to search and implement cost reductions to the project that do not compromise the quality of construction. That process will continue all the way through bidding. Options 1, 2 and pending Options 11, and 12 do that. Several other options compromise the quality of the structure, its functionality, and could lead to more operational costs annually as well as premature repair and maintenance costs. We have realized no savings if we accept quality reductions during construction but see increased costs for heating, cooling, repairs, and 155 City Council Packet December 14, 2010 maintenance that result from sub-standard materials and choices. We simply cannot afford to be “penny wise and pound foolish” and we must be strategic in our choices. Option 14 contradicts another goal of attempting to improve “one-stop shopping” for city services by eliminating the Park and Recreation Department and leaving them in the old Armory building. What’s more, Option 14 eliminates ten workstations that are located throughout the building. We have undertaken a comprehensive analysis estimating staffing changes for 10-15 years into the future. Some of those staffing changes will be in this building. I believe it is vital this building reflect projected changes in staffing levels over time. Will have failed to effectively plan this building if it is full the day we move in and there is no more space than we have now. To adopt this course of action is simply irresponsible. The building site plan does provide for an expansion to the south but such an expansion is not envisioned for many years and is contingent upon the ability to acquire additional property. Growth within a 15-year horizon should not be programmed as a building expansion but should be programmed as an internal expansion. The cost to build such an expansion in the future will far outweigh the cost per square foot to build future space today. Finally, many of these changes will require concurrence with the County Board as we do not wish to see distinguished differences in quality between various offices. Staff Recommendation I am recommending you adopt the value engineering options on the second table which puts the construction project at $5.941million. This option incorporates value engineering considerations that do not compromise quality or future growth. The Joint Powers Board recommended this option at their November 10 meeting. As you recall, we have $6 million in bond proceeds so this amount is covered except for the exclusions discussed in the next paragraph. Over time, the contingency can be reduced thus reducing the budget if it is not spent on unforeseen considerations. Construction exclusions The final sheet of this analysis identifies the exclusions to the construction budget that are still considered part of the overall project budget. We have spent $974,516 in property acquisition from cash reserves. This amount is covered with $1,014,555 in savings from other expenditures that were not made. In addition, we have project program revenue in the form of interest income from the bond proceeds which is strategically invested and sufficient liquidity to draw-down amounts when needed. Other exclusions come at the very end of the project and can be appropriately budgeted in 2012. The new garage space for city vehicles can be paid for by 25% second penny as the police department will be taking over the existing garage space. Public Safety is a legitimate 25% second penny expense according to your policy. For this same reason, we will budget the City Hall remodel for the expanded Police Department in the same manner. Decorative streetlights along Third Street and Fifth Avenue are can be financed by the streetscape contingency account. Moving expenses are unknown at this time. For furniture, 156 City Council Packet December 14, 2010 fixtures, and equipment (FFE), we are just now getting into that part of the process to develop these costs. We anticipate moving most of our furniture but there will undoubtedly be some aspects of FFE that will need to be acquired. The biggest part of the FFE budget will be technology equipment which will be expensive but is an important component of a modern office building. As you can see, these exclusions are financed by other means. 157 City Council Packet December 14, 2010 VALUE ENGINEERING CONSIDERATIONS $12,600,667.00 Joint Powers Board adopted budget ($118,000.00) Reduction - option #1 $12,482,667.00 Revised adopted budget 48% City percentage of total project $5,991,680.16 City cost ($16,800.00) Reduction - option #2 (electric/mechanical) ($14,400.00) Reduction - option #3 (eliminate sculpture) ($19,292.00) Reduction - option #4 (asphalt south lots) ($9,508.00) Reduction - option #5 (asphalt main lot) ($143,500.00) Reduction - option #6 (eliminate full basement) ($107,856.00) Reduction - option #7 (quality substitution, finishes) ($22,080.00) Reduction - option #8 (reduce site contingency) (TBD) Reduction - option #9 (various mechanical items) (TBD) Reduction - option #10 (structural steel adjustment) (TBD) Reduction - option #11 (mechanical adjustment) ($43,200.00) Reduction - option #12 (eliminate one elevator) ($17,971.00) Reduction - option #13 (eliminate 3rd Floor conference room) ($394,607.00) Total reductions to-date $5,597,073.16 REDUCE BUILDING SIZE (Reduction - option #14) Eliminate Parks & Recreation office suite 1369 sf Eliminate 10 work stations of future growth 1486 sf 2855 sf X $130/sf $371,150 NOTE: Options #2-13 will require concurrence with the County Commission 160 City Council Packet December 14, 2010 VALUE ENGINEERING CONSIDERATIONS (STAFF RECOMMENDATIONS) $12,600,667 Joint Powers Board adopted budget ($118,000) Reduction - option #1 $12,482,667 Revised adopted budget 48% City percentage of total project $5,991,680 City cost ($16,800) Reduction - option #2 (electric/mechanical) ($14,400) Reduction - option #3 (eliminate sculpture) ($19,292) Reduction - option #4 (asphalt south lots) (TBD) Reduction - option #10 (structural steel adjustment) (TBD) Reduction - option #11 (mechanical adjustment) ($50,492) Additional total reductions to-date $5,941,188 NOTE: Options #10 and #11 will produce more savings without compromising quality when those numbers are known. The contingencies for sitework and construciton can be gradually reduced over time as the project proceeds providing more savings. 161 City Council Packet December 14, 2010 EXCLUSIONS: 1 Property acquisition: $974,516 Innovation Campus infrastructure savings $694,000 Swiftel Arena lighting project savings $100,000 Holding barn flooring project canceled $125,000 Interest income from $6M bond proceeds (2 yrs) $100,000 2 Garage on south lot $80,000 25% 2nd penny in 2012 $80,000 3 Furniture/fixtures/equipment TBD 4 Moving expenses TBD 2012 General fund 5 Police Department remodel $300,000 25% 2nd penny in 2012 $300,000 (in CIP) 6 Historic streetlights 3rd Street/5th Avenue $24,500 Streetscape contingency in 2012 $24,500 162 City Council Packet December 14, 2010 Other Business 19. Action on City Manager Compensation Package. The City Council is expected to take action to establish City Manager Jeffrey Weldon’s compensation package for 2011. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City Manager Recommendation: Approve 164 City Council Packet December 14, 2010 165 20. Adjourn.