HomeMy WebLinkAbout2009_06_23 CC PKTCity Council Packet
June 23, 2009
Brookings City Council
Tuesday, June 23, 2009
City Hall Council Chambers - 311 Third Avenue
5:00 p.m. -- Work Session
6:00 p.m. -- Council Meeting
Mission Statement
The City of Brookings is committed to providing a high quality of life for its citizens and fostering a diverse economic base through innovative
thinking, strategic planning, and proactive, fiscally responsible municipal management.
5:00 pm 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. Oath of Office and Presentation of Certificate of Appointment as Council Member to Jael
Trieb.
2. Information on new Crimestoppers Program.
3. Swiftel Center Expansion Plans.
4. 6:00 p.m. Meeting Review.
5. Council Invites & Obligations.
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 can not be added for action at this meeting. A motion and
second is required starting the issue, requested outcome, and time. A majority vote is required.
6:00 P.M. REGULAR MEETING
1. Call to order by Mayor Reed.
2. Pledge of Allegiance.
3. City Clerk records council attendance.
4. Action to approve the following Consent Agenda Items *
A. Action to approve the agenda.
B. Action on Resolution No. 54-09, a Resolution Designating the Official Newspaper.
C. Action on Resolution No. 55-09, a Resolution authorizing the city manager to sign an
operating agreement renewal for Skinner’s Pub, 300 Main Avenue.
D. Action on Resolution No. 56-09, a Resolution dissolving Resolution 24-09 which authorized an
Interfund Loan to the Airport and Authorizing An Interfund Loan To Edgebrook Golf Course
For The Purchase Of Maintenance Equipment .
E. Action to award bid and authorize emergency purchase of a compressor for the Brookings
Municipal Library in the amount of $85,906 from G&R Controls.
F. Action to authorize sale through sealed bid of a surplus loader and skid steer from the
Brookings Street Department.
G. Action on Resolution 57-09, awarding bids for airport electrical work for fuel system.
H. Action on Resolution No. 58-09, awarding bids for airport concrete work for fuel system.
I. Action to authorize the Mayor to sign a letter of support for the Basin Electric Deer Creek
Station project.
J. Action to appoint appraisers to evaluate subject parcels of a proposed property transfer.
K. Action on Resolution 59-09, A Resolution Authorizing Change Order No. 8 for 2008-03STI
Downtown Streetscape Project.
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L. Action on Resolution 60-09, A Resolution Authorizing Change Order No. 9 for 2008-03STI
Downtown Streetscape Project.
M. Action on Resolution 61-09, A Resolution Authorizing Change Order No. 2 for 2008-123
Sieler Addition.
N. Action on Resolution 62-09, A Resolution Authorizing Change Order No. 1 for 2008-09STI,
Rio Grand, Napa Valley, and Cumberland Court Project.
Motion to approve, request public comment, roll call
* Matters appearing on the Consent Agenda are expected to be non-controversial and will be acted upon by the Council at one time, without
discussion, unless a member of the Council or City Manager requests an opportunity to address any given item. Items removed from the Consent
Agenda will be discussed at the beginning of the formal items. Approval by the Council of the Consent Agenda items means that the
recommendation of the City Manager is approved along with the terms and conditions described in the agenda supporting documentation.
Presentations, Special Requests/Invites & Reports:
5. Open Forum.
6. SDSU Student Senate Report.
Ordinances – 1st Readings **
7. Ordinance No. 15-09: An Ordinance Prohibiting the Keeping of Game Birds in the City
of Brookings, South Dakota.
Public Hearing: July 14, 2009
8. Ordinance No. 16-09: An Ordinance Amending Article II of Chapter 22 of the Code of
Ordinances of the City of Brookings and Pertaining to the 2006 International Residential
Code with Certain Amendments Thereto. (This amendment pertains to egress windows in
sleeping rooms regardless of sprinkling requirements).
Public Hearing: July 14, 2009
** No vote is taken on the first reading of ordinances. The title of the ordinance is read and the date for the
public hearing is announced.
Second Readings/Public Hearings
9. Public hearing and action on Resolution No. 63-09, a petition to vacate an alley abutting
the west lot line of Lots 8-11 and the east lot line of Lots 12–15, Block 3, Morehouse
Addition.
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
10. Ordinance 13-09: An Ordinance for a Conditional Use to establish an “Outdoor Sales”
use on Lots 1 and 2, Block 3, Moriarty Second Addition.
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
11. Ordinance 14-09: An Ordinance rezoning Husen’s Addition, excluding the North 272.8
feet of the East 815 feet; and Lot 1, Block 1, Husen’s Addition all in the N ½ of the N ½
of the SE ¼ of Section 22-T110N-R50W from a Residence R-1A and R-3A District to an
Industrial I-1District.
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
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12. Public hearing (continued from 5/26) and action on Phase One (1) of the Safe Routes to
School Project including review of Traffic Safety Committee’s recommendations.
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
13. Public hearing and action on a temporary off-sale package wine license for the SD
Winegrowers Association on July 11-12, 2009 in the parking lot of 302 6th Street West
(former Municipal Liquor Store).
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
14. Public hearing and action on a special retail on-sale wine dealer’s license for the SD
Winegrowers Association on July 11-12, 2009 in the parking lot of 302 6th Street West
(former Municipal Liquor Store).
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
Other Business:
15. Action to approve an operational agreement between the City of Brookings and the
Brookings Ice Skating Association (BISA).
Action: Motion to Approve, Request Public Comment, Roll Call
16. Valley View Phase II (Tax Increment District Number Three).
A. Action to approve the DEVELOPMENT AGREEMENT for Valley View Phase II
(Tax Increment Plan for Tax Increment District Number Three).
Action: Motion to Approve, Request Public Comment, Roll Call
B. Action to approve Resolution No. 64-09, a Resolution Giving Approval To Tax
Increment District Number 3 Project Phase II, Giving Approval To The Issuance
Of Tax Incremental Revenue Refunding Bonds To Refund Outstanding Tax
Increment District Number 3 Bonds, The Project And Authorizing The Sale Of
Said Tax Incremental Revenue Refunding Bonds And The Terms Thereof.
Action: Motion to Approve, Request Public Comment, Roll Call
17. Action to approve Storm Water Finance Plan “Option #5.”
Action: Motion to Approve, Request Public Comment, Roll Call
18. Adjourn.
Brookings City Council
Tim Reed, Mayor
Mike Bartley, Deputy Mayor & Council Member
Tom Bezdichek, Council Member
John Kubal, Council Member
Mike McClemans, Council Member
Jael Trieb, Council Member
Julie Whaley, Council Member
Council Staff:
Jeffrey W. Weldon, City Manager
Steven Britzman, City Attorney
Shari Thornes, City Clerk
View the City Council Meeting Live on the City Government Access Channel 9.
Rebroadcast Schedule: Wednesday @ 1pm, Thursday @ 7 pm, Friday @ 9 pm, and Saturday @ 1 pm.
The complete City Council agenda packet is available on the city website: www.cityofbrookings.org
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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. Oath of Office and Presentation of Certificate of Appointment as Council
Member to Jael Trieb.
Mayor Reed will present Jael Trieb with the Certificate of Appointment and Trieb will read
the following Oath of Office and be sworn in as a City Council Member.
Brookings City Council
Oath of Office
I, Jael Trieb, having been appointed to the office of City Council Member
within and for the City of Brookings, Brookings County, South Dakota,
do solemnly swear that I will support the Constitution of the United
States and of this State and the Brookings City Charter, and faithfully
discharge the duties of my office, and that I am not under direct or
indirect obligation to appoint or elect any person to any office, position,
or employment under the government of the City of Brookings.
Jael Trieb
Subscribed and sworn to before me this 23rd day of June 2009.
Tim Reed, Mayor
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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. Information on new Crimestoppers Program.
Tom Pierce, former Volga Mayor, has requested time on the agenda to
provide the City Council, staff and public with information regarding the new
Crimestoppers Program initiatives.
Estimated Time: 5 minutes
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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. Swiftel Center Expansion Plans.
TO: Mayor and City Council Members
FROM: City Manager Jeff Weldon
Swiftel Executive Director Tom Richter
RE: Goal #6 of Strategic Plan: Swiftel Center expansion project
The purpose of this memo is to attempt to make some progress on Goal #6 of the 2009
Strategic Plan. This involves a decision on a potential expansion of the Swiftel Center. As
background information, there were two studies performed. A feasibility study completed
by VenuWorks Consulting of Ames, Iowa and a validation study completed by HVS
Convention, Sports, and Entertainment of Chicago, Illinois. Presentations have been
given by both consultants on these two reports at previous council meetings. Both studies
identified market demand, facility requirements, lost market share, and economic impact
estimates. The data clearly justifies and expansion if properly done.
The proposed expansion comprises three distinct components. First, it involves an
expansion and modification to storage areas, upgrade and relocation of the kitchen, and
relocation of offices. The latter is chiefly accomplished by acquiring the County Resource
Center. These modifications are needed as basic facility upgrades that reflect the
substantial changes that have occurred since the opening of the facility in 2001. These
types of changes are common in public facilities. These proposed changes reflect the
growth and intensified use of the facility from how it was originally envisioned, designed,
and built.
The second component involves modification of the existing Daktronics Banquet Room
into three individual rooms which can be further sub-divided into a total of six, smaller
break-out rooms. The addition of a ballroom/convention hall can also be divided into a
maximum of six additional break-out rooms.
The total estimated cost of this project is $7 million.
The third component is the addition of a hotel with 80-100 rooms attached to the
southeast corner of the Swiftel Center. This hotel would be accomplished either through
selling a portion of the property for the hotel or a land lease. The hotel would be
constructed, financed, and owned privately.
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Although the methodology was varied between the two reports, and the specifics on a few
details differ; the basic fundamental conclusion of the two reports is the same: that
properly designed and constructed, an expanded Swiftel Center could significantly attract
more events to Brookings.
The primary public policy reasons for expanding the Swiftel Center can be synthesized into
four basic issues:
1) Capture more market share of events with improved facilities;
2) Increase the economic impact for the entire community and region having
captured more events and attracting more visitors;
3) Capitalize on a unique visitor “niche” for tourism in the absence of other
tourism venues;
4) Capitalize on the current investment of the existing Swiftel Center by
improving it to make it more versatile and multi-purpose.
The following is a more detailed discussion of each of these four issues.
(1) Capture more market share of events with better facilities
The original “Agri-Plex” facility was envisioned as primarily an agricultural exhibit hall with
a rather limited scope of events that it was designed to accommodate. Over the years, the
Swiftel Center’s popularity resulted in the facility being called upon to host a wider range
of events beyond agricultural exhibits to concerts, sporting events, training meetings,
conference and conventions, and receptions. Clearly, this usage demonstrates the facility is
meeting a need for the community. During this time, the Swiftel Center has experienced
little in the way of physical upgrades or improvements necessary to meet the changing
needs of event sponsors from the original agricultural exhibit concept. What’s more, the
current configuration does not efficiently allow for multiple simultaneous events that
would capitalize on the systems and personnel currently in place. The research has
identified events that could be attracted to Swiftel Center as noted on page 56 of the
VenuWorks Study, if the facility had additional amenities to meet their needs. In the
VenuWorks study question number 10 on page viii of the Appendix indicates that 77.7%
of the respondents rotate their events. Brookings is only capturing 12.5% of that business
currently.
(2) Economic impact
From 2001 through 2008 the Swiftel Center generated $65.6 million in estimated
economic impact. The model used for calculating the economic impact at the Swiftel
Center is from the International Association of Assembly Managers, “Calculating
Economic Impact” by Bonnie Finnie, Facility Manager Magazine, 1997 and Minnesota
Office of Tourism, Central Minnesota Events Center, Review of Economic Impact,
Revenues and Expenditures Assumptions. Through 2008 the Visitor spending numbers
used by the Brookings Convention and Visitor Bureau were $40.00 a day for a daily visitor
and an additional $65.00 for an overnight stay. The Swiftel Center hosted 1,464 events
from 2001-2008 which equated to 2,047 event days and total attendance of 706,783.
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Based on the HVS Study on page 6-14 table 6-6 the projected room night demand in 2013
will be 24,398. If you calculate that by the current Brookings CVB overnight visitor
spending, the economic impact would be $6.1 million. According to the VenuWorks
Study on page 68, calculating only two percent of attendees stay overnight, the projected
economic impact for the expanded facility will increase in year five of operation from
approximately $9.1 million a year to over $21.7 million a year.
In 2009 the Brookings CVB adjusted their daily visitor spending formula from $40.00 a
day to $60.00 a day and an overnight visitor spending from $65.00 to $80.00. For the first
quarter of 2009 the Swiftel Center has generated over $3.6 million in local economic
impact utilizing these updated numbers.
(3) Visitor ‘niche’ market
The absence of traditional tourism amenities in Brookings suggests the need to develop a
‘niche’ market, or other ways in which to bring visitors to the area. The lack of
recreational lakes and outdoor features, large-scale special events or celebrations, or tourist
attractions hinders our ability to attract visitors. As the Brookings Visitor Promotion
Committee will attest, reasons to visit Brookings stem from a limited number of special
events such as the Summer Arts Festival, athletic and recreational events held at athletic
facilities and the Larson Ice Center, and special events held in conjunction with SDSU or
at the Swiftel Center. For that reason, we must fully develop our potential in these “niche’
markets where we can bolster the economic impact for the local business community, the
state’s four percent sales tax, and the City’s two/three percent sales tax revenue stream.
When making financial decisions, the Visitor Promotions Committee takes a number of
items into consideration. The greatest consideration is given to events that make a
significant economic impact on the Brookings Community. The Committee also takes into
account the ability of an event to draw a majority of attendees from out-of-town. All events
must demonstrate a need for funding, take place within City limits, and clearly benefit the
community. The Committee held a strategic planning session in early 2008, at which time
it identified conventions and youth tournaments as high priority events. Historically, these
events provide a high return on invested dollars and create a significant economic impact.
This expansion to the Swiftel Center is vital to attract additional youth sporting events and
conventions.
The niche market for the Swiftel Center will continue to be built upon a solid foundation
of events and activities currently being held at the Center. The expansion will allow us to
begin pursuing previously lost business opportunities as soon as the plan is approved.
With SDSU being an economic and educational anchor to the region, endless possibilities
are available for partnerships that would benefit both of us. While SDSU can be expected
to make full utilization of their own facilities, they will continue to utilize the facilities at an
expanded Swiftel Center. Such use is significant and well documented in the research.
Not only will faculty and staff at SDSU be a valuable resource as keynote speakers for
meetings and conventions, but a “Bring Your Meetings Home” campaign will encourage
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them and others in our community to look within the organizations they belong to bring
their own meetings and conventions to Brookings.
(4) Capitalize on the current investment
If the community demonstrates it can use “more of what we already have”, why not add to
the current investment instead of duplicating it elsewhere? It only makes sense to improve
and expand on the current investment instead of needlessly duplicating like facilities
elsewhere. The Swiftel Center is in an excellent location with easy access and visibility
from I-29; it has convenient access to residents; has room to expand; is located close to
virtually all hotel rooms; and already contains the “core” functions and amenities available
to efficiently accommodate an expansion. What’s more, improving the existing facility
adds more synergy in one location providing for a more economical investment. If
additional public assembly venues are needed for exhibits, meetings and conferences,
receptions, concerts, or sporting events; it is only logical that expansion take place at the
Swiftel Center. This also helps make the overall facility more versatile and multi-purpose
while maximizing efficiency for necessary support functions such as kitchen, storage,
offices, and equipment.
The expansion will also provide the high tech, state-of-the-art amenities that today’s
convention and meeting planners require. The addition of a quality hotel completes the
full package of amenities allowing Brookings to be competitive in the meeting and
convention market. All of this is possible only because we are able to capitalize on our
existing investment.
Capital financial implications
The current bond issue for indebtedness that provided the Swiftel Center and the Library
is set to be retired in 2013. If you decide to proceed, staff is proposing we complete the
Swiftel expansion project and schedule the debt service for bond issuance of the expansion
to begin in 2014. The effect on the second penny indebtedness is that it will actually
continue the bond payments with a new issuance so there is no overlapping debt from the
two issuances. We would not be incurring any new Swiftel debt until the old Swiftel debt
is completely retired so the aggregate debt load will not be increased. The future debt
service payments may be either higher or lower compared to the current payment
depending upon how much the project costs, how much debt you wish to incur, the
interest rate, and term of the debt.
Operating financial implications
The operating expenses of the Swiftel Center are financed by two revenue streams; the
income from operations and an operating subsidy from the City. In 2009, the operating
subsidy is $316,000. The Swiftel Center was always envisioned to need a subsidy like many
other services beneficial to the City of Brookings such as the pool, ice arena, golf course,
and airport. They provide a public benefit as a result of a taxpayer investment. In the case
of the Swiftel Center, the subsidy helps finance events which supply the economic benefit
to the businesses in the community. The Swiftel Center, Larson Ice Center, and South
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Dakota State University are the three largest, single generators of outside visits to
Brookings that provide a continual stream of economic benefit to the private sector
businesses. The operating subsidy is more aptly termed an “investment.” Even though it
does not show a return-on-investment in the bottom line of the Swiftel Center, it adds to
the bottom line of businesses. Clearly, without these three facilities, we would not have
the number of hotels, restaurants, retail, and convenience stores we currently have in our
business community.
The HVS Study states on page 6-29 the City subsidy will increase without the expansion to
$555,000 in 2013 and with the expansion $494,000. According to the VenuWorks study
on page 67 it shows the City allocation increasing to $333,405 in the first year of the
expanded facility and decreasing to $281,575 in the fifth year of operation.
In order to make some forward progress on this issue, staff needs direction from the
Council about your collective position. Is there other information you need to help aid in
your decision? We can cancel the project in its entirety, delay it, or move forward. If you
decide to delay the project, it would be helpful to cite reasons for the delay and certain
steps to be taken to resolve the reason for the delay so an eventual decision can be made.
If you decide to move forward, the first step would be to authorize staff to develop
Requests for Proposals (RFP) for architectural services. If you decide to move forward, I
will need to budget architectural expenses in the 2010 budget which we are beginning to
prepare.
Estimated Time: 45 minutes
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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. 6:00 p.m. Meeting Review.
1. Call to order by Mayor Reed.
2. Pledge of Allegiance.
3. City Clerk records council attendance.
4. Action to approve the following Consent Agenda Items *
A. Action to approve the agenda.
B. Action on Resolution No. 54-09, a Resolution Designating the Official Newspaper.
C. Action on Resolution No. 55-09, a Resolution authorizing the city manager to sign an operating
agreement renewal for Skinner’s Pub, 300 Main Avenue.
D. Action on Resolution No. 56-09, a Resolution dissolving Resolution 24-09 which authorized an
Interfund Loan to the Airport and Authorizing An Interfund Loan To Edgebrook Golf Course For
The Purchase Of Maintenance Equipment .
E. Action to award bid and authorize emergency purchase of a compressor for the Brookings Municipal
Library in the amount of $85,906 from G&R Controls.
F. Action to authorize sale through sealed bid of a surplus loader and skid steer from the Brookings
Street Department.
G. Action on Resolution 57-09, awarding bids for airport electrical work for fuel system.
H. Action on Resolution No. 58-09, awarding bids for airport concrete work for fuel system.
I. Action to authorize the Mayor to sign a letter of support for the Basin Electric Deer Creek Station
project.
J. Action to appoint appraisers to evaluate subject parcels of a proposed property transfer.
K. Action on Resolution 59-09, A Resolution Authorizing Change Order No. 8 for 2008-03STI
Downtown Streetscape Project.
L. Action on Resolution 60-09, A Resolution Authorizing Change Order No. 9 for 2008-03STI
Downtown Streetscape Project.
M. Action on Resolution 61-09, A Resolution Authorizing Change Order No. 2 for 2008-123 Sieler
Addition.
N. Action on Resolution 62-09, A Resolution Authorizing Change Order No. 1 for 2008-09STI, Rio
Grand, Napa Valley, and Cumberland Court Project.
Motion to approve, request public comment, roll call
Presentations, Special Requests/Invites & Reports:
5. Open Forum.
6. SDSU Student Senate Report.
Ordinances – 1st Readings **
7. Ordinance No. 15-09: An Ordinance Prohibiting the Keeping of Game Birds in the City of Brookings,
South Dakota.
Public Hearing: July 14, 2009
8. Ordinance No. 16-09: An Ordinance Amending Article II of Chapter 22 of the Code of Ordinances of the
City of Brookings and Pertaining to the 2006 International Residential Code with Certain Amendments
Thereto. (This amendment pertains to egress windows in sleeping rooms regardless of sprinkling
requirements).
Public Hearing: July 14, 2009
** No vote is taken on the first reading of ordinances. The title of the ordinance is read and the date for the public hearing is
announced.
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Second Readings/Public Hearings
9. Public hearing and action on Resolution No. 63-09, a petition to vacate an alley abutting the west lot line of
Lots 8-11 and the east lot line of Lots 12–15, Block 3, Morehouse Addition.
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
10. Ordinance 13-09: An Ordinance for a Conditional Use to establish an “Outdoor Sales” use on Lots 1 and 2,
Block 3, Moriarty Second Addition.
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
11. Ordinance 14-09: An Ordinance rezoning Husen’s Addition, excluding the North 272.8 feet of the East 815
feet; and Lot 1, Block 1, Husen’s Addition all in the N ½ of the N ½ of the SE ¼ of Section 22-T110N-
R50W from a Residence R-1A and R-3A District to an Industrial I-1District.
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
12. Public hearing (continued from 5/26) and action on Phase One (1) of the Safe Routes to School Project
including review of Traffic Safety Committee’s recommendations.
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
13. Public hearing and action on a temporary off-sale package wine license for the SD Winegrowers Association
on July 11-12, 2009 in the parking lot of 302 6th Street West (former Municipal Liquor Store).
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
14. Public hearing and action on a special retail on-sale wine dealer’s license for the SD Winegrowers Association
on July 11-12, 2009 in the parking lot of 302 6th Street West (former Municipal Liquor Store).
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
Other Business:
15. Action to approve an operational agreement between the City of Brookings and the Brookings Ice Skating
Association (BISA).
Action: Motion to Approve, Request Public Comment, Roll Call
16. Valley View Phase II (Tax Increment District Number Three).
A. Action to approve the DEVELOPMENT AGREEMENT for Valley View Phase II (Tax Increment
Plan for Tax Increment District Number Three).
Action: Motion to Approve, Request Public Comment, Roll Call
B. Action to approve Resolution No. 64-09, a Resolution Giving Approval To Tax Increment District
Number 3 Project Phase II, Giving Approval To The Issuance Of Tax Incremental Revenue
Refunding Bonds To Refund Outstanding Tax Increment District Number 3 Bonds, The Project
And Authorizing The Sale Of Said Tax Incremental Revenue Refunding Bonds And The Terms
Thereof.
Action: Motion to Approve, Request Public Comment, Roll Call
17. Action to approve Storm Water Finance Plan “Option #5.”
Action: Motion to Approve, Request Public Comment, Roll Call
18. Adjourn.
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5:00 P.M. WORK SESSION
** Work sessions are open to the public. During the work session the city staff would brief the council on items for that
particular meeting, introduce future topics, and provide a time for Council members to introduce topics.
5. Council Invites & Obligations
July 4th
Parade
July 10th
SDML
Annual Elected Officials Workshop
All day
Pierre
July 14th
City Council Meeting
5 & 6 pm
City Hall Chambers
July 23rd
City Council / Hospital Board
5 pm
City Hall Chambers
July 28th
City Council Meeting
5 & 6 pm
City Hall Chambers
Oct 6-10
SDML
Annual Conference
Watertown
Nov 10-14
NLC Conference
San Antonio
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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 can not be added for action at this meeting. A motion and second is required
starting the issue, requested outcome, and time. A majority vote is required.
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Brookings City Council
Tuesday, June 23, 2009
City Hall Council Chambers
311 Third Avenue
5:00 p.m. -- Work Session
6:00 p.m. -- Council Meeting
Mission Statement
The City of Brookings is committed to providing a high quality of life for its citizens and fostering a diverse economic base through innovative
thinking, strategic planning, and proactive, fiscally responsible municipal management.
6:00 P.M. REGULAR MEETING
1. Call to order by Mayor Reed.
2. Pledge of Allegiance.
3. City Clerk records council attendance.
4. Action to approve the following Consent Agenda Items *
A. Action to approve the agenda.
B. Action on Resolution No. 54-09, a Resolution Designating the Official Newspaper.
C. Action on Resolution No. 55-09, a Resolution authorizing the city manager to sign an
operating agreement renewal for Skinner’s Pub, 300 Main Avenue.
D. Action on Resolution No. 56-09, a Resolution dissolving Resolution 24-09 which authorized an
Interfund Loan to the Airport and Authorizing An Interfund Loan To Edgebrook Golf Course
For The Purchase Of Maintenance Equipment .
E. Action to award bid and authorize emergency purchase of a compressor for the Brookings
Municipal Library in the amount of $85,906 from G&R Controls.
F. Action to authorize sale through sealed bid of a surplus loader and skid steer from the
Brookings Street Department.
G. Action on Resolution 57-09, awarding bids for airport electrical work for fuel system.
H. Action on Resolution No. 58-09, awarding bids for airport concrete work for fuel system.
I. Action to authorize the Mayor to sign a letter of support for the Basin Electric Deer Creek
Station project.
J. Action to appoint appraisers to evaluate subject parcels of a proposed property transfer.
K. Action on Resolution 59-09, A Resolution Authorizing Change Order No. 8 for 2008-03STI
Downtown Streetscape Project.
L. Action on Resolution 60-09, A Resolution Authorizing Change Order No. 9 for 2008-03STI
Downtown Streetscape Project.
M. Action on Resolution 61-09, A Resolution Authorizing Change Order No. 2 for 2008-123
Sieler Addition.
N. Action on Resolution 62-09, A Resolution Authorizing Change Order No. 1 for 2008-09STI,
Rio Grand, Napa Valley, and Cumberland Court Project.
Motion to approve, request public comment, roll call
* Matters appearing on the Consent Agenda are expected to be non-controversial and will be acted upon by the Council at one time, without
discussion, unless a member of the Council or City Manager requests an opportunity to address any given item. Items removed from the Consent
Agenda will be discussed at the beginning of the formal items. Approval by the Council of the Consent Agenda items means that the
recommendation of the City Manager is approved along with the terms and conditions described in the agenda supporting documentation.
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Presentations, Special Requests/Invites & Reports:
5. Open Forum.
6. SDSU Student Senate Report.
Ordinances – 1st Readings **
7. Ordinance No. 15-09: An Ordinance Prohibiting the Keeping of Game Birds in the City
of Brookings, South Dakota.
Public Hearing: July 14, 2009
8. Ordinance No. 16-09: An Ordinance Amending Article II of Chapter 22 of the Code of
Ordinances of the City of Brookings and Pertaining to the 2006 International Residential
Code with Certain Amendments Thereto. (This amendment pertains to egress windows in
sleeping rooms regardless of sprinkling requirements).
Public Hearing: July 14, 2009
** No vote is taken on the first reading of ordinances. The title of the ordinance is read and the date for the
public hearing is announced.
Second Readings/Public Hearings
9. Public hearing and action on Resolution No. 63-09, a petition to vacate an alley abutting
the west lot line of Lots 8-11 and the east lot line of Lots 12–15, Block 3, Morehouse
Addition.
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
10. Ordinance 13-09: An Ordinance for a Conditional Use to establish an “Outdoor Sales”
use on Lots 1 and 2, Block 3, Moriarty Second Addition.
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
11. Ordinance 14-09: An Ordinance rezoning Husen’s Addition, excluding the North 272.8
feet of the East 815 feet; and Lot 1, Block 1, Husen’s Addition all in the N ½ of the N ½
of the SE ¼ of Section 22-T110N-R50W from a Residence R-1A and R-3A District to an
Industrial I-1District.
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
12. Public hearing (continued from 5/26) and action on Phase One (1) of the Safe Routes to
School Project including review of Traffic Safety Committee’s recommendations.
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
13. Public hearing and action on a temporary off-sale package wine license for the SD
Winegrowers Association on July 11-12, 2009 in the parking lot of 302 6th Street West
(former Municipal Liquor Store).
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
14. Public hearing and action on a special retail on-sale wine dealer’s license for the SD
Winegrowers Association on July 11-12, 2009 in the parking lot of 302 6th Street West
(former Municipal Liquor Store).
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Action: Open & Close Public Hearing, Motion to Approve, Roll Call
Other Business:
15. Action to approve an operational agreement between the City of Brookings and the
Brookings Ice Skating Association (BISA).
Action: Motion to Approve, Request Public Comment, Roll Call
16. Valley View Phase II (Tax Increment District Number Three).
A. Action to approve the DEVELOPMENT AGREEMENT for Valley View Phase II
(Tax Increment Plan for Tax Increment District Number Three).
Action: Motion to Approve, Request Public Comment, Roll Call
B. Action to approve Resolution No. 64-09, a Resolution Giving Approval To Tax
Increment District Number 3 Project Phase II, Giving Approval To The Issuance
Of Tax Incremental Revenue Refunding Bonds To Refund Outstanding Tax
Increment District Number 3 Bonds, The Project And Authorizing The Sale Of
Said Tax Incremental Revenue Refunding Bonds And The Terms Thereof.
Action: Motion to Approve, Request Public Comment, Roll Call
17. Action to approve Storm Water Finance Plan “Option #5.”
Action: Motion to Approve, Request Public Comment, Roll Call
18. Adjourn.
Brookings City Council
Tim Reed, Mayor
Mike Bartley, Deputy Mayor & Council Member
Tom Bezdichek, Council Member
John Kubal, Council Member
Mike McClemans, Council Member
Jael Trieb, Council Member
Julie Whaley, Council Member
Council Staff:
Jeffrey W. Weldon, City Manager
Steven Britzman, City Attorney
Shari Thornes, City Clerk
View the City Council Meeting Live on the City Government Access Channel 9.
Rebroadcast Schedule: Wednesday @ 1pm, Thursday @ 7 pm, Friday @ 9 pm, and Saturday @ 1 pm.
The complete City Council agenda packet is available on the city website: www.cityofbrookings.org
If you require assistance, alternative formats, and/or accessible locations consistent with the Americans with Disabilities
Act, please contact Shari Thornes, City ADA Coordinator, at 692-6281 at least 3 working days prior to the meeting.
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June 23, 2009
CONSENT AGENDA #4
4. Action to approve the following Consent Agenda Items *
A. Action to approve the agenda.
B. Action on Resolution No. 54-09, a Resolution Designating the Official Newspaper.
C. Action on Resolution No. 55-09, a Resolution authorizing the city manager to sign an
operating agreement renewal for Skinner’s Pub, 300 Main Avenue.
D. Action on Resolution No. 56-09, a Resolution dissolving Resolution 24-09 which
authorized an Interfund Loan to the Airport and Authorizing An Interfund Loan To
Edgebrook Golf Course For The Purchase Of Maintenance Equipment .
E. Action to award bid and authorize emergency purchase of a compressor for the Brookings
Municipal Library in the amount of $85,906 from G&R Controls.
F. Action to authorize sale through sealed bid of a surplus loader and skid steer from the
Brookings Street Department.
G. Action on Resolution 57-09, awarding bids for airport electrical work for fuel system.
H. Action on Resolution No. 58-09, awarding bids for airport concrete work for fuel system.
I. Action to authorize the Mayor to sign a letter of support for the Basin Electric Deer Creek
Station project.
J. Action to appoint appraisers for subject parcels of a property transfer.
K. Action on Resolution 59-09, A Resolution Authorizing Change Order No. 8 for 2008-
03STI Downtown Streetscape Project.
L. Action on Resolution 60-09, A Resolution Authorizing Change Order No. 9 for 2008-
03STI Downtown Streetscape Project.
M. Action on Resolution 61-09, A Resolution Authorizing Change Order No. 2 for 2008-123
Sieler Addition.
N. Action on Resolution 62-09, A Resolution Authorizing Change Order No. 1 for 2008-
09STI, Rio Grand, Napa Valley, and Cumberland Court Project.
* 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
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#4 - CONSENT AGENDA:
B. Action on Resolution No. 54-09, a Resolution Designating the Official
Newspaper.
Pursuant to SDCL 9-12-6 “ Designation of official newspapers,” Every municipality shall
designate at a meeting of its governing body an official newspaper or newspapers for the
ensuing year. The newspaper shall be published in the municipality.
Resolution No. 54-09
Resolution Designating Official Newspaper
PURSUANT to SDCL 9-12-6, the City Council of the City of Brookings, South Dakota,
hereby designates the Brookings Register as the official newspaper for the City of
Brookings for the ensuing year.
Passed and approved this 23rd day of June 2009.
CITY OF BROOKINGS
Mayor Tim Reed
ATTEST:
Shari Thornes, City Clerk
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#4 - CONSENT AGENDA:
C. Action on Resolution No. 55-09, a Resolution authorizing the city manager
to sign an operating agreement renewal for Skinner’s Pub, 300 Main
Avenue.
The City of Brookings enters into liquor operating agreements for a ten-year period with a
renewal at 5 years. The operating agreement for the Skinner’s Pub, located at 300 Main
Ave., is at the five year point in the 10 year agreement. Resolution No. 55-09 would allow
the City Manager to enter into the remaining five years of the agreement.
Resolution No. 55-09
Skinner’s Pub Operating Agreement Renewal
BE IT RESOLVED by the City of Brookings, South Dakota, that the City Council hereby
approves a Lease Renewal Agreement for the Operating Liquor Management Agreement
between the City of Brookings and Greg Thornes, Skinner’s Pub, 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 300 Main Ave., also known as the Skinner’s Pub.
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.
Passed and approved this 23rd day of June 2009.
CITY OF BROOKINGS
Tim Reed, Mayor
ATTEST:
Shari Thornes, City Clerk
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June 23, 2009
#4 - CONSENT AGENDA:
D. Action on Resolution No. 56-09, a Resolution dissolving Resolution 24-09
which authorized an Interfund Loan to the Airport and Authorizing An
Interfund Loan To Edgebrook Golf Course For The Purchase Of
Maintenance Equipment .
Resolution No. 56-09 will dissolve Resolution 24-09 which authorized the interfund loan
from the Liquor Fund to the Airport for the purchase of an airport snow plow. After the
resolution was passed the FAA provided matching funds for the purchase. The resolution
provides for another interfund loan from the Liquor Fund to the Edgebrook Golf Course
for the purchase of five mowers for the golf course per bids.
RESOLUTION NO. 56-09
Dissolving Resolution 24-09 which authorized an Interfund Loan to the Airport and Authorizing An
Interfund Loan To Edgebrook Golf Course For The Purchase Of Maintenance Equipment
WHEREAS, Resolution 20-09 authorized the purchase of airport snow plow in the amount of $172,907.85,
and
WHEREAS, Resolution 24-09 authorized an interfund loan from Liquor Fund to the Airport for a snowplow
in the amount of $172,907.85 plus interest, and
WHEREAS, the FAA funded the Airport snow plow equipment purchase, and
WHEREAS, Edgebrook Golf Course has a critical need for two fairway mowers and five greens and tee
mowers, and
WHEREAS, it is in the best interests of the City of Brookings to finance the purchase of said maintenance
equipment by a loan from the Liquor Fund to the Edgebrook Golf Course Fund,
NOW THEREFORE, BE IT RESOLVED, that the City Manager is directed to cancel the interfund loan per
resolution 24-09 and execute an Interfund Loan from the Liquor Fund to the Edgebrook Golf Course,
providing an annual interest rate of 3%, payable as follows:
YEAR PAYMENT PRINCIPAL INTEREST
2010 $38,212.05 $32,962.05 $5,250.00
2011 $38,212.05 $33,950.91 $4,261.14
2012 $38,212.05 $34,969.44 $3,242.61
2013 $38,212.05 $36,018.52 $2,193.53
2014 $38,212.05 $37,099.08 $1,112.97
Totals $191,060.25 $175,000.00 $16,060.25
Passed and approved on the 23rd day of June, 2009.
CITY OF BROOKINGS
____________________________________
Tim Reed , Mayor
ATTEST:
__________________________
Shari Thornes, Brookings City Clerk
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#4 - CONSENT AGENDA:
E. Action to award bid and authorize emergency purchase of a compressor for
the Brookings Municipal Library in the amount of $85,906 from G&R
Controls.
On May 28 the air conditioning system at the library malfunctioned and the cause was
determined to be a blown compressor. The library’s HVAC system is equipped with one
primary compressor that services the entire building and was installed as part of the 1999
building expansion project. We looked into repairing the existing compressor and
determined it was not feasible so we investigated replacing it. Most compressors for such
buildings individually designed and are not “on-the-shelf” due to their cost. We were
fortunate to find a unit that has four rotating small compressors instead of one large one.
It should be more energy efficient.
Bidding for this piece of equipment will likely take months until it can be installed. SDCL
5-18-3.1 provides for an exemption to the state competitive bidding laws if the purchase is
determined to be an emergency involving the health and welfare of employees and patrons.
The City Manager made the determination an emergency does exists because waiting for
the bidding process would seriously impair public services making the library not habitable
for employees and patrons and prolonged exposure to high temperatures and humidity
would seriously damage the library materials. Rentals of temporary replacement
equipment are not available on a timely basis. The quotation for the replacement unit
including removal of the old unit and installation of the new unit is $85,906. We are
checking into a $3200 energy savings rebate the would be applied to this price. Efforts to
find a second quotation were not successful because we could not find another unit even
available. We will finance this from our general fund contingency.
This item is on the agenda because SDCL requires an emergency purchase to be
documented in the Council’s next meeting minutes.
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June 23, 2009
#4 - CONSENT AGENDA:
F. Action to authorize sale through sealed bid of a surplus loader and skid
steer from the Brookings Street Department.
On June 2, 2009, the City of Brookings received the following bids for one (1) 1996 John
Deere 544G Loader S# DW544GD555430 and staff recommends awarding the bid to
Mike J. Volk in the amount of $48,544.00.
1996 John Deere 544G Loader BID AMOUNT SECURED WITH
1. Mike J. Volk $48,544.00 Security Check
2. M & M Livestock LLC $45,777.00 Check
3 Harold Harter $43,550.00 Cashier’s Check
4. Larry Schmeichel $43,150.00 Security Check
5. Prussman Contracting Inc. $32,475.00
6. S-Bar Ranch $30,500.00 Cashier’s Check
7. Tim Brendemuhl $29,435.00 Cashier’s Check
Bids were also received for one (1) 1994 Bobcat Skid Steer 853-H Loader S#512811052
and staff recommends awarding the bid to Midway Truck in the amount of $11,286.00.
1994 Bobcat Skid Steer 853-H BID AMOUNT SECURED WITH
1. Midway Truck $11,286.00 Cashier’s Check
2. Dean Benson $7,100.00 ---
3. Dean Benson $6,850.00 Cashier’s Check
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June 23, 2009
#4 - CONSENT AGENDA:
G. Action on Resolution 57-09, awarding bids for airport electrical work for
fuel system.
This project entails installing the electrical work for the new airport fuel system. The fuel
system will include two-12,000 gallon above ground fuel tanks with all associated
equipment. The electrical bid will include wiring, conduit and electrical work for the fuel
tank system. The advertisement was mailed to area contractors and 2 builders exchanges.
The bid letting was held on June 16, 2009 and we received the following bids: Perry
Electric, Brookings, SD, for $12,520.50.
The conjunction of the fuel tank project ($89,386.00), the concrete work ($9,296.00) and
this project ($12,520.50) is within the budgeted amount of $183,000 for this project. The
budget will also cover the tank removal and restoration. Recommend awarding the
contract to the low bidder.
Resolution No. 56–09
Resolution Awarding Bids for Airport Fuel System Electrical Work
Whereas, the City of Brookings opened bids for the Airport Fuel System Electrical Work
on Tuesday, June 16, 2009 at 1:30 pm at Brookings City Hall; and
Whereas, the City of Brookings has received the following bids for the Airport Fuel System
Electrical Work: Perry Electric, Brookings, SD, for $12,520.50.
Now Therefore, Be It Resolved that the low bid of Perry Electric, Brookings, SD for the
low bid of $12,520.50 be accepted.
Passed and approved this 23rd day of June 2009.
CITY OF BROOKINGS
_____________________________
Tim Reed, Mayor
ATTEST:
_________________________
Shari Thornes, City Clerk
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June 23, 2009
#4 - CONSENT AGENDA:
H. Action on Resolution No. 58-09, awarding bids for airport concrete work
for fuel system.
This project entails installing a size concrete containment pad for the new airport fuel
system. The fuel system will include two-12,000 gallon above ground fuel tanks with all
associated equipment. The Concrete Work will include grading, pit run and the
installation of a 60’ x 42’ concrete pad for the fuel tank system. This will be a containment
pad that will hold fuel in the case of a leak or spill from the fuel tanks.
The advertisement was mailed to area contractors and 2 builders’ exchanges. The bid
letting was held on June 16, 2009 and we received the following bids:
Rexcon Materials, Inc., Volga, SD $9,296.00
Mills Construction, Brookings, SD $14,990.00
Owens Enterprises, Inc., Brookings, SD $17,134.00
Brooks Construction, Sioux Falls, SD $30,000.00
Carl V. Carlson Company, Tea, SD $30,290.00
Peterson Concrete, Mitchell, SD $32,500.00
Dakota Contracting Corporation, Sioux Falls, SD $33,980.00
Clark Drew Construction, Inc., Brookings, SD $36,500.00
City Engineer Jackie Lanning discussed the project with Hart Nordbye, the CEO of
Rexcon Materials, Inc. Mr. Nordbye was comfortable with his bid, and stated they planned
to supply their own concrete and pit run material with their plant.
The conjunction of the fuel tank project ($89,386.00), the electrical work ($12,520.50) and
this project ($9,296.00) is within the budgeted amount of $183,000 for this project. The
budget will also cover the tank removal and restoration. Recommend awarding the
contract to the low bidder.
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June 23, 2009
Resolution No. 58–09
Resolution Awarding Bids for
Airport Fuel System Concrete Work
Whereas, the City of Brookings opened bids for the Airport Fuel System Concrete Work on
Tuesday, June 16, 2009 at 1:30 pm at Brookings City Hall; and
Whereas, the City of Brookings has received the following bids for the Airport Fuel System
Concrete Work:
Rexcon Materials, Inc., Volga, SD $9,296.00
Mills Construction, Brookings, SD $14,990.00
Owens Enterprises, Inc., Brookings, SD $17,134.00
Brooks Construction, Sioux Falls, SD $30,000.00
Carl V. Carlson Company, Tea, SD $30,290.00
Peterson Concrete, Mitchell, SD $32,500.00
Dakota Contracting Corporation, Sioux Falls, SD $33,980.00
Clark Drew Construction, Inc., Brookings, SD $36,500.00
Now Therefore, Be It Resolved that the low bid of Rexcon Materials, Inc., Volga, SD for the low bid of
$9,296.00 be accepted.
Passed and approved this 23rd day of June 2009.
CITY OF BROOKINGS
________________________________
Tim Reed, Mayor
ATTEST:
_________________________
Shari Thornes, City Clerk
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June 23, 2009
#4 - CONSENT AGENDA:
I. Action to authorize the Mayor to sign a letter of support for the Basin
Electric Deer Creek Station project.
At the May 26th City Council meeting Basin Electric Power Cooperative representatives
presented their plans to construct a 300-megawatt combined-cycle natural gas-fueled power
plant to be located east of Brookings, called the Deer Creek Station. The plant will feature
two turbine-generator sets: one turbine fired by natural gas, while the other is driven by
steam. Both of the turbines are connected to generators to create electricity. The power
plant is needed to meet growing member load requirements and will serve as an
intermediate power supply designed to "cycle" with demand, typically running about 12 to
16 hours a day when demand for electricity is higher. The power plant will use natural gas
from Basin Electric's Dakota Gasification Company via the Northern Border Pipeline and
a new 14-mile underground natural gas pipeline to the plant. The Deer Creek Station will
be tied into the electric grid through existing transmission lines. Construction will take
about 18 months and is scheduled to be completed in the summer of 2012. When the
plant is operational it will employ between 25 and 30 people.
The Council directed staff to draft a letter of support for the project for Council review
and action at this meeting.
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June 23, 2009
Tim Reed
Office of the Mayor
311 Third Avenue
Post Office Box 270
Brookings, South Dakota 57006
(605) 692-6281 phone
(605) 692-6907 fax
June 23, 2009
To Whom It May Concern:
The City of Brookings is pleased to support Basin Electric’s proposed Deer Creek Station Project
which will help alleviate the demand for affordable electric power. The project will not only
benefit Brookings, but also greater South Dakota.
Deer Creek Station will contribute to the economic viability and development in the area. The
thirty permanent positions and the temporary construction workforce for the project are welcome
to live, eat, play and enjoy everything Brookings has to offer.
A new, large-scale construction project may bring temporary challenges to local infrastructure, but the City
of Brookings will work with Basin Electric and Brookings County in seeking solutions for any issues that
may arise.
The need for energy is perpetual. The City of Brookings would be proud to have the Deer Creek Station
Project part of our community.
Sincerely,
Tim Reed
Mayor, City of Brookings
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June 23, 2009
#4 - CONSENT AGENDA:
J. Action to appoint appraisers to evaluate subject parcels of a proposed
property transfer.
TO: Mayor and City Council Members
FROM: City Manager Jeff Weldon
RE: Property transfer to reduce price of property purchase for storm drainage
project #1
Pursuant to your direction adopting a project priority listing for our storm drainage
masterplan implementation, the first project involves the acquisition of Block 8 Hyland
Addition. This parcel is owned by John Mills and I have been negotiating with him for the
purchase of this parcel.
We are pleased Mr. Mills is willing to work with us. The property is priced at $406,673 but
the owner has offered to reduce the price of the parcel by $100,000 if we deed to Prairie
Hills, LLC a 25 acre parcel of unplatted property just southwest of Medary Avenue and
20th Street South currently owned by the City. This acreage is east and directly adjacent to
the pending residential subdivision plan of Prairie Hills, legally owned by Prairie Hills,
LLC. Maps of both parcels are attached.
Mills Development intends to utilize this 25 acre area to assist with development objectives
that support and complement the future Prairie Hills subdivision such as storm drainage
ponds, utilizing the fill to help improve lots, and create open space amenities that enhance
the area. A small sliver of this parcel in the extreme northeast corner adjacent to the
existing trail would be added to an existing, adjacent 12-acre business parcel.
This area was received by the City through a partial purchase and partial donation from
Prairie Hills, LLC initially and was intended to be open space and future parkland a few
years ago. However, it does not appear in the City’s comprehensive plan as being
identified as future parkland. The land is low, prone to flooding, and serves as part of our
overall storm water management system. The exchange would not include the land
currently as part of the paved trail system. That would be retained by the City. Staff has
had concerns about the final reclamation condition of this property, especially the existing
rail-bed as a primitive trail and preserving some of the cottonwood trees along Medary
Avenue. Mills Development has agreed to retain the rail-bed trail and integrate it into a
comprehensive trail system. Many of the trees can remain but some will have to be
removed. The remaining life of some of the cottonwood trees is questionable. Mills
Development and the City will work cooperatively on a final plan for this area.
This background information is necessary as an explanation for the requested action. In
order to facilitate a property exchange (so the City can get a reduced price for Block 8
Hyland Addition for a needed storm drainage pond), we need to appoint three people to
“appraise” or value the two parcels. This is done in lieu of a formal appraisal and at no cost
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June 23, 2009
to the City. The appraisal information is then used as a tool but is not binding upon the
Council. Using the exchange procedure, we also would not need to transfer the property
through BEDC which is typically done.
Attached is a memo to three such persons (who qualify because they are Brookings land
owners) who have consented to provide “appraisals” for the two parcels. The memo also
describes the process for the proposed land exchange. Once they complete the market
analysis, we will utilize that information during the public hearing for the transfer
(exchange) agreement. One document will effectively transfer both parcels for the net price
to the City of $306,673.
Requested action would be a motion to appoint Ryan Krogman, Ron Borchardt, and Sarah
Woodard to perform independent market analyses, and schedule a public hearing for
July14, 2009 to consider a transfer agreement which the City Attorney is preparing.
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June 23, 2009
June 5, 2009
TO: Ryan Krogman, Century 21 Gustafson, Krogman & Associates
Ron Borchardt, Best Choice Real Estate
Sarah Woodard, Best Choice Real Estate
FROM: Jeff Weldon, Brookings City Manager
RE: Market assessment for two parcels of property
Thank you very much for your willingness to assist the City of Brookings with a property
transaction that will ultimately help the City with it’s implementation of the Storm
Drainage Master Plan while encouraging additional residential development.
The City of Brookings is contemplating a property transfer with Mills Development. The
transfer provides for Mills Development selling to the City Block 8, Hyland Addition
(Zoned R-3) in exchange for the City deeding to Mills an unplatted parcel located on the
southwest corner of Medary Avenue and 20th Street South (Zoned Agriculture). Maps of
both parcels are enclosed.
SDCL 9-27-34.1 authorizes property transfer between a municipality and a private owner
and prescribes that in lieu of a formal appraisal, three qualified persons who otherwise own
property in the municipality may provide a determination of value of the contemplated
parcels. These persons must be officially appointed by the City Council for purposes of
providing this determination.
At the June 23 City Council meeting, I intend to submit your names to the City Council
to undertake this market determination. It does not need to include a comprehensive
analysis of comparables and extensive detail is not necessary; just your opinion of a simple
determination of an approximate value. Please do not undertake your review until I
contact you following the June 23 meeting. After that, I would like your opinion by July 6
if possible as the City Council will consider the property transfer at a public hearing on
July 14.
I you have any questions, please do not hesitate to contact me. Thank you very much.
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#4 - CONSENT AGENDA:
K. Action on Resolution 59-09, A Resolution Authorizing Change Order No.
8 for 2008-03STI Downtown Streetscape Project.
The 2008-03STI Downtown Streetscape Project entails construction work on Main Avenue
from 6th Street to Front Street, which includes new water and sanitary sewer mains and
services, new sidewalk, light poles, trees, curb & gutter, pavement and other streetscape
amenities.
This spring, City Engineer Jackie Lanning, Park and Recreation Director Allyn Frerichs
visited with the owners of the Johnson Funeral Home building, now occupied by the
Masonic Temple. The area between Parks building and the Funeral Home building is a
long flat area where water can not drain out to the street either west or east. Subsequently,
the Parks building gets water in the basement from time to time and water sits in the area
between the buildings. The owners of the Funeral Home building will be installing new
roof drains to tap into the storm sewer system which will reduce icing that occurs on their
north driveway and sidewalk. Change Order No. 8 will authorize storm sewer work that
will add a storm sewer connection from an inlet on the west side of Main Avenue to the
property line between the buildings. This work includes 68’ of 12” PVC Storm Sewer from
a stub-out between buildings 221 and 225 Main Avenue to DI-16, including 2-12” PVC 45
degree bends, core drilling DI-16, one 12” PVC cap and 12” PVC Storm Sewer for an
increase of $4,370.00. The Contractor has also requested 1 calendar day to perform this
work. A summary is:
Original Contract Price: $3,687,292.50
Decrease from Previously Approved Change Orders 1,2,3,4,5,6 & 7: $126,281.80
Contract Price prior to this Change Order: $3,561,010.70
Increase of this Change Order (No. 8): $4,370.00
Contract Price incorporating this Change Order: $3,565,380.70
City staff concurs with the necessary work and the time request to perform the work. This
resolution will approve Change Order No. 8 for the additional storm sewer work.
Resolution No. 59-09
A Resolution Authorizing Change Order #8 (CCO#8) For 2008-03STI Downtown Streetscape Project -
Winter Brothers Underground, Inc., Sioux Falls, South Dakota
BE IT RESOLVED by the City Council that the following change order be allowed for 2008-03SSI,
Downtown Streetscape Project, Construction Change Order Number 8:
Storm Sewer work to include 68’ of 12” PVC Storm Sewer from a stub-out between buildings 221 and 225
Main Avenue to DI-16, including 2-12” PVC 45 degree bends, core drilling DI-16, one 12” PVC cap and 12”
PVC Storm Sewer for an increase of $4,370.00. Extend the contract by one calendar day.
Passed and approved this 23rd day of June 2009.
CITY OF BROOKINGS
Tim Reed, Mayor
ATTEST:
Shari Thornes, City Clerk
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June 23, 2009
#4 - CONSENT AGENDA:
L. Action on Resolution 60-09, A Resolution Authorizing Change Order No.
9 for 2008-03STI Downtown Streetscape Project.
The 2008-03STI Downtown Streetscape Project entails construction work on Main Avenue
from 6th Street to Front Street, which includes new water and sanitary sewer mains and
services, new sidewalk, light poles, trees, curb & gutter, pavement and other streetscape
amenities.
This change order will authorize approval of several small changes to the Streetscape
Project. The change order includes work to remove an old brick and mortar storm sewer
manhole at 3rd Street and Main Avenue and install a new storm sewer manhole because the
existing manhole would have been very difficult to backfill to a water tight condition, two
new storm sewer manhole lids due to their deteriorated condition, extra topsoil excavation
in the bump-out nodes for the Parks Department tree installation, and a change in a
walk/don’t walk pole location because of a water/sewer service in the pole location which
required additional conduit and wiring. The work outlined in this change order is an
increase of $7,815.00 to the contract and 3 additional calendar days to perform this work.
A summary is:
Original Contract Price: $3,687,292.50
Decrease from Previously Approved Change Orders 1,2,3,4,5,6,7 & 8: $121,911.80 Decrease
Contract Price prior to this Change Order: $3,565,380.70
Increase of this Change Order (No. 9): $7,815.00
Contract Price incorporating this Change Order: $3,573,195.70
City staff concurs with the necessary work and the time request to perform the work. This
resolution will approve Change Order No. 9 for the additional storm sewer, dirt removal,
and signal work.
Resolution No. 60-09
A Resolution Authorizing Change Order #9 (CCO#9) For 2008-03STI Downtown Streetscape
Project - Winter Brothers Underground, Inc., Sioux Falls, South Dakota
BE IT RESOLVED by the City Council that the following change order be allowed for 2008-03SSI,
Downtown Streetscape Project, Construction Change Order Number 9: Storm Sewer work to include
replacement of storm sewer manhole, replacement of storm sewer manhole lids, extra topsoil excavation in
bump-out nodes, and additional electrical work to change location of a walk/don’t walk pole for a total
increase of $7,815.00 to the contract. Extend the contract by three calendar days.
Passed and approved this 23rd day of June 2009.
CITY OF BROOKINGS
_________________________
Tim Reed, Mayor
ATTEST:
____________________________
Shari Thornes, City Clerk
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City Council Packet
June 23, 2009
#4 - CONSENT AGENDA:
M. Action on Resolution 61-09, A Resolution Authorizing Change Order No.
2 for 2008-123 Sieler Addition.
This project entails the construction of streets in the Seiler Addition, located near the
Hunter’s Ridge Addition east of Main Avenue. This is a TIFF project which includes water
mains and services, sanitary sewer mains and services, storm sewer, grading, detention
pond, gravel, curb & gutter and asphalt paving. Schedule A was the grading portion of the
project and Schedule B was the utility portion of the work. VJ Ahlers Excavating, Inc. was
the contractor for the utility work.
This project had previously been finalled out by Resolution No. 17-09. However, during
the spring, an unstable water main trench was identified caused by excessive subsurface
water in the trench. The work outlined in this change order includes removing the
unstable material, installing geotextile material, place owner furnished crushed concrete
material, and backfilling the trench. City Attorney Britzman advised: “I think we can reach
agreements after a contract to address unforeseen circumstances if doing so is in our best
interest. This is a contract amendment which is merely a relatively minor follow-up to a
completed contract. We would reach these decisions on a case by case basis, but this
apparently is in our best interests, and therefore we can proceed with it.”
In summary:
Original Contract Price: $101,383.44
Decrease from Previously Approved Change Orders: $288.36
Contract Price prior to this Change Order: $101,095.08
Increase of this Change Order (No. 2): $2,500.00
Contract Price incorporating this Change Order: $101,595.08
This change order will authorize the additional cost of $2,500.00 to the Utility contract for
the trench repair and geotextile material.
Resolution No. 61-09
A Resolution Authorizing Change Order No. 2(CCO#2) For
2008-123 Seiler Addition Subdivision Utilities & Grading Project
Schedule B: VJ Ahlers Excavating, Inc.
BE IT RESOLVED by the City Council that the following change order be allowed for 2008-123 Seiler
Addition Subdivision Utilities & Grading Project: Construction Change Order Number 2, Increase as-build
quantities for additional trench work including removal of unsuitable subgrade material, installation of
Geotextile material and additional gravel for a total increase of $2,500.00.
Passed and approved this 23rd day of June 2009.
CITY OF BROOKINGS
Tim Reed, Mayor
ATTEST:
Shari Thornes, City Clerk
51
City Council Packet
June 23, 2009
#4 - CONSENT AGENDA:
N. Action on Resolution 62-09, A Resolution Authorizing Change Order No.
1 for 2008-09STI, Rio Grand, Napa Valley, and Cumberland Court Project.
This project entails the construction of streets in the Valley View Addition, located on the
southern part of Brookings adjacent to 20th Street South. This is a TIFF project which
includes water mains and services, sanitary sewer mains and services, storm sewer, grading,
detention pond, gravel, curb & gutter and asphalt paving. This project has two contracts:
the Grading contract includes water mains and services, sanitary sewer mains and services,
storm sewer, grading, detention pond, gravel and curb & gutter and the Paving contract
which includes the asphalt paving work.
During the work for the Grading contract, the contractor encountered unstable and
unsuitable subgrade conditions in the roadway. Additional granular subbase material and
geogrid fabric were needed to stabilize the roadway areas. In summary:
Original Contract Price: $523,912.61
Increase from Previously Approved Change Orders: $0.00
Contract Price prior to this Change Order: $523,912.61
Increase of this Change Order (No. 1): $8,320.00
Contract Price incorporating this Change Order: $532,232.61
This change order will authorize the additional cost of $8,320.00 to the Grading contract
for the granular subbase material and geogrid.
Resolution No. 62-09
A Resolution Authorizing Change Order No. 1 (CCO#1) For
2008-09STI Rio Grand, Napa Valley and Cumberland Court Valley View Phase I Project
Rounds Construction Co., Inc.
BE IT RESOLVED by the City Council that the following change order be allowed for 2008-09STI
Rio Grand, Napa Valley and Cumberland Court, Valley View Phase I Project, Construction
Change Order Number 1; Additional granular subbase material and geogrid for unsuitable
subgrade areas for a total increase of $8,320.00.
Passed and approved this 23rd day of June 2009.
CITY OF BROOKINGS
_________________________
Tim Reed, Mayor
ATTEST:
____________________________
Shari Thornes, City Clerk
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City Council Packet
June 23, 2009
Presentations/Reports/Special Requests:
5. INVITATION FOR A CITIZEN TO SCHEDULE TIME ON
THE COUNCIL AGENDA FOR AN ISSUE NOT LISTED.
At this time, any member of the public may request time on the agenda for an
item not listed. Items are typically scheduled for the end of the meeting;
however, very brief announcements or invitations will be allowed at this time.
6. SDSU STUDENT SENATE REPORT.
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City Council Packet
June 23, 2009
Ordinances – 1st Readings **
7. Ordinance No. 15-09: An Ordinance Prohibiting the Keeping of Game
Birds in the City of Brookings, South Dakota.
Public Hearing: July 14, 2009
** No vote is taken on the first reading of ordinances. The title of the ordinance is read and the date
for the public hearing is announced.
Proposal: Prohibit the keeping, raising, etc. of game birds in the city.
Background: The city currently has an ordinance that addresses certain types of “domestic
fowl”. This ordinance reads as follows:
Sec. 14-82. Proximity of fowl to dwellings.
It shall be unlawful for any person to enclose or house any guinea fowl, ducks, geese, turkeys, or other
domestic fowl, except pigeons and except falcons and hawks in the possession of a state and federally
licensed handler, in any house, pen, coop or enclosure or other building situated within a distance of
125 feet of any church, school or other public building or within 125 feet of any dwelling, store or
other building used or occupied as a residence of any person other than that of the owner or caretaker
of such fowl.
Specifics: This ordinance would prohibit the keeping or having of wild birds that fit into
the category of game birds within the city.
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City Council Packet
June 23, 2009
ORDINANCE NO. 15-09
An Ordinance Prohibiting The Keeping Of Game Birds In The City Of Brookings, South
Dakota.
Be It Ordained And Enacted By The Council Of The City Of Brookings, State Of South Dakota,
As Follows:
I.
Sec. 14-90. Keeping of game birds prohibited.
No person shall keep or have any game birds, including but not limited to, pheasants, geese, ducks,
quail and partridge in the city.
II.
All ordinances in conflict herewith are hereby repealed.
FIRST READING: ______________________________________________
SECOND READING AND ADOPTION: ____________________________
PUBLISHED: __________________________________________________
CITY OF BROOKINGS, SOUTH DAKOTA
Tim Reed, Mayor
ATTEST:
Shari L. Thornes, City Clerk
55
City Council Packet
June 23, 2009
Ordinances – 1st Readings **
8. Ordinance No. 16-09: An Ordinance Amending Article II of Chapter 22 of
the Code of Ordinances of the City of Brookings and Pertaining to the
2006 International Residential Code with Certain Amendments Thereto.
(This amendment pertains to egress windows in sleeping rooms regardless
of sprinkling requirements).
Public Hearing: July 14, 2009
** No vote is taken on the first reading of ordinances. The title of the ordinance is read and the date
for the public hearing is announced.
History: The City has adopted the 2006 International Building Code (IBC) and the 2006
Residential Building Code (IRC). The City also approved an amendment to the building
code where buildings with 15 or fewer dwelling units are not required to be sprinkled.
Current Code: Section 1026 of the IBC outlines emergency escape and rescue requirements,
which is as follows:
Section 1026 Emergency Escape and Rescue
Section 1026.1 General. In addition to the means of egress required by this chapter,
provisions shall be made for emergency escape and rescue in Group R and I-1
occupancies. Basements and sleeping rooms below the fourth story above grade plane shall
have at least one exterior emergency escape and rescue opening in accordance with this
section. Where basements contain one or more sleeping rooms, emergency egress and
rescue openings shall be required in each sleeping room, but shall not be required in
adjoining areas of the basement. Such openings shall open directly into a public way or to
a yard or court that opens to a public way.
Exceptions:
1. In other than Group R-3 occupancies, buildings equipped throughout with an
approved automatic sprinkler system in accordance with Section 903.3.1.1 or
903.3.1.2.
2. In other than Group R-3 occupancies, sleeping rooms provided with a door to a
fire-resistance-rated corridor having access to two remote exits in opposite
directions.
Recommended change: These exceptions would allow a builder to construct a sleeping
room without an egress window as long as the building was sprinkled for buildings with 15
or fewer dwelling units. Building Services Administrator Greg Miller brought this issue to
the Board of Appeals for discussion. The following is an excerpt from the meeting:
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City Council Packet
June 23, 2009
Unapproved Summary of Discussion
BROOKINGS BOARD OF APPEALS COMMITTEE
Thursday, June 11, 2009
The Brookings Traffic Safety Committee held a meeting on Thursday, June 11, 2009 at 10:30 am in the City
Hall meeting room. Members Present: Ray Froehlich, Dan Rettedahl, Spencer Hawley, Dick Anderson.
Members Absent: Gerald Foster. Others Present: Building Services Administrator Greg Miller, City Engineer
Jackie Lanning.
Chair Hawley called the meeting to order. The committee discussed the following item: Excerpt from
Summary of Discussion:
New Business:
1) Discussion of Section 1026.1 of the 2006 International Building Code (egress windows in sleeping
rooms regardless of sprinkling requirements)
Miller described Section 1026.1 of the 2006 International Building Code. He recommends deleting the
exceptions. The exceptions in the current code state:
1. In other than Group R-3 occupancies, buildings equipped throughout with an approved automatic
sprinkler system in accordance with Section 903.3.1.1 or 903.3.1.2.
2. In other than Group R-3 occupancies, sleeping rooms provided with a door to a fire-resistance-rated
corridor having access to two remote exits in opposite directions.
Miller stated in buildings with sprinkler systems, Exception 1 of the current code does not require egress
windows. Miller described that this could create a dangerous situation in the event of a sprinkler failure, and
the egress escape window would create a safer sleeping room. Miller described that in the case of Exception 2,
the code assumes that buildings are sprinkled. However, the City of Brookings code has been amended and
currently does not require buildings under 15 units to be sprinkled. Therefore, Except 2, assumes the individual
would access a hallway that is sprinkled, which would not be the case in Brookings.
Miller described that the City of Sioux Falls has amended their code to delete these exceptions. The Brookings
Fire Department also submitted a letter of support regarding the amendments. The committee discussed the
amendment, and felt the egress windows would provide a safe access for the Fire Department to be able to
access the sleeping room. Anderson/Hawley moved to approve the amendment. All present voted aye. Motion
passed.
It has been concluded that egress windows are important to provide an additional means of
escape in the event of a sprinkler failure and we recommend the code be amended to
delete Exceptions 1 and 2. The City of Sioux Falls has also deleted these exceptions from
their building code. A letter of support from Fire Chief Darrell Hartmann has been
provided. This ordinance will delete these exceptions from the building code.
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City Council Packet
June 23, 2009
Ordinance No. 16-09
An Ordinance Amending Article II of Chapter 22 Of The Code Of Ordinances Of The City Of
Brookings And Pertaining To The 2006 International Residential Code With Certain
Amendments Thereto.
Be It Ordained by the City of Brookings that Article II of Chapter 22 of the Code of Ordinances
of the City of Brookings be amended to read as follows:
I. Article II. Building Code
Section 1026 Emergency Escape and Rescue
Section 1026.1 General. In addition to the means of egress required by this chapter, provisions
shall be made for emergency escape and rescue in Group R and I-1 occupancies. Basements and
sleeping rooms below the fourth story above grade plane shall have at least one exterior emergency
escape and rescue opening in accordance with this section. Where basements contain one or more
sleeping rooms, emergency egress and rescue openings shall be required in each sleeping room, but
shall not be required in adjoining areas of the basement. Such openings shall open directly into a
public way or to a yard or court that opens to a public way.
II. Article II. Building Code
The following shall be deleted from Section 1026.1 General.
Exceptions:
1. In other than the Group R-3 occupancies, buildings equipped throughout with an
approved automatic sprinkler system in accordance with Section 903.3.1.1 or 903.3.1.2.
2. In other than Group R-3 occupancies, sleeping rooms provided with a door to a fire-
resistance-rated corridor having access to two remote exits in opposite directions.
III. Any or all ordinances in conflict herewith are hereby repealed.
FIRST READING:
SECOND READING:
PUBLISHED:
CITY OF BROOKINGS, SOUTH DAKOTA
Tim Reed, Mayor
ATTEST:
Shari Thornes, City Clerk
58
City Council Packet
June 23, 2009
Second Readings/Public Hearings
9. Public hearing and action on Resolution No. 63-09, a petition to vacate an
alley abutting the west lot line of Lots 8-11 and the east lot line of Lots 12–
15, Block 3, Morehouse Addition.
Applicants: David and Tasha Jones, Scott and Deb Dominiack, Brady Phelps, and Susan
Fredrikson
Proposal: Vacate a portion of an alley in a residential block
Background: - This block was originally platted with a “T” shaped alley. Eight platted lots
abut the north/south portion of the alley. However, development in the north half of the
block resulted in only 5 parcels (4 owners) abutting the alley.
Specifics: State law requires a petition, with 100% of the abutting property owners
signatures, be submitted before action can take place. If vacated, the standard
apportionment would give 10 feet of additional land back to each abutting parcel. The
east/west alley would remain as it is currently platted.
Recommendation: The Planning Commission voted 7 yes and 0 no with one abstention
to approve the vacation of the alley subject to a utility easement over the entire vacated
portion.
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
City Manager Recommendation - Approve
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City Council Packet
June 23, 2009
Resolution No. 63-09
ALLEY VACATION
WHEREAS, a petition to vacate has been filed with the City Clerk of the City of
Brookings, and
WHEREAS, the petition was filed in proper form and signed by one hundred percent
(100%) of the adjacent property owners.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Brookings:
That the portion of the alley abutting the west lot line of Lots 8, 9, 10 and 11 and the east lot line
of Lots 12, 13, 14 and 15 in Block 3, Morehouse Addition is hereby vacated subject to a utility
easement over, on and under the entire vacated portion.
Passed and approved this 23rd day of June, 2009.
__________________________
Mayor
_______________________
City Clerk
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City Council Packet
June 23, 2009
Prepared by:
Community Development Department
P. O. Box 270
Brookings, South Dakota 57006
(605) 692-6629
RIGHT-OF-WAY EASEMENT
The undersigned, David and Tasha Jones, Scott and Deb Dominiack, Brady Phelps and
Susan Fredrikson, for themselves and their successors and assigns, hereinafter referred to as
"Grantors", for good and valuable consideration, the receipt of which is hereby acknowledged, do
hereby grant unto the City of Brookings, South Dakota, a Municipal Corporation, and its
successors and assigns, hereinafter referred to as "Grantee," a right-of-way easement for utility
purposes, located on, under, over, through, upon and across the premises of Grantors, described
as follows:
The portion of the alley abutting the west lot line of Lots 8, 9, 10, and 11 and the east lot
line of Lots 12, 13, 14, and 15 in Block 3, Morehouse Addition
This easement constitutes a permanent and perpetual grant of right-of-way for use of the
above-described property for utility purposes and is hereby dedicated to use by the Grantors for
utility purposes, but such dedication shall not be construed to be a donation of the fee of such
land. This Easement shall run with the above-described property for the purposes set forth herein.
Grantee agrees to repair any damages that may result to the Grantors property by the
construction, maintenance, replacement, repair or removal of the utilities located within this
Easement. This Easement includes the right of ingress and egress, to install, construct, maintain,
use, operate, repair, alter, inspect and replace all utilities.
IN WITNESS WHEREOF the Grantors have executed this Easement this 23rd day of June
2009.
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City Council Packet
June 23, 2009
NOTICE OF HEARING
UPON PETITION TO VACATE
NOTICE IS HEREBY GIVEN That David and Tasha Jones, Scott and Deb Dominiack,
Brady Phelps and Susan Fredrikson have submitted a petition to vacate the following: that portion
of the alley abutting the west lot line of Lots 8, 9, 10 and 11 and the east lot line of Lots 12, 13, 14
and 15 in Block 3, Morehouse Addition.
NOTICE IS FURTHER GIVEN That said request will be acted on by the City Council at
6:00 PM on Tuesday, June 23, 2009, in the Council Chamber in the lower level of City Hall,
Brookings, South Dakota.
Any person interested may appear and be heard in this matter.
Dated this 4th and 11th days of June, 2009.
____________________________
Dan Hanson
Planning & Zoning Administrator
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City Council Packet
June 23, 2009
NOTICE OF HEARING
UPON PETITION TO VACATE
NOTICE IS HEREBY GIVEN That David and Tasha Jones, Scott and Deb Dominiack,
Brady Phelps and Susan Fredrikson have submitted a petition to vacate the following: that portion
of the alley abutting the west lot line of Lots 8, 9, 10 and 11 and the east lot line of Lots 12, 13, 14
and 15 in Block 3, Morehouse Addition.
NOTICE IS FURTHER GIVEN That said request will be acted on by the City Planning
Commission at 7:00 PM on Tuesday, May 5, 2009, in the Council Chamber in the lower level of
City Hall, Brookings, South Dakota.
Any person interested may appear and be heard in this matter.
Dated this 23rd day of April, 2009.
____________________________
Dan Hanson
Planning & Zoning Administrator
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City Council Packet
June 23, 2009
Planning Commission
Brookings, South Dakota
May 5, 2009
OFFICIAL MINUTES
Chairperson David Kurtz called the regular meeting of the City Planning Commission to
order on May 5, 2009 at 7:00 PM in the Council Chamber at City Hall. Members present were
Stacey Howlett, Al Gregg, Al Heuton, Wayne Avery, Larry Fjeldos, John Gustafson, Greg Fargen,
and Kurtz. Mike Cameron was absent. Also present were David Jones, Richard Halstead, Russ
Brandriet, City Engineer Jackie Lanning, Community Development Director, Mike Struck, and
Planning and Zoning Administrator Dan Hanson.
Item #3 – David and Tasha Jones, Scott and Deb Dominiack, Brady Phelps, and Susan Fredrikson
have submitted a petition to vacate that portion of the alley abutting the west lot line of Lots 8, 9,
10, and 11, and the east lot line of Lots 12, 13, 14, and 15, in Block 3, Morehouse Addition
(Gustafson/Fjeldos) Motion to approve the alley vacation subject to a utility easement over the
entire vacated portion. All present voted aye except Fargen abstained. MOTION CARRIED.
Item #3 – David Jones, a petitioner, was present and stated he was also speaking on behalf of Scott
and Deb Dominiack. He remarked that the neighbors no longer used the alley and vacating it
would enlarge everyone’s rear yard.
Fargen asked if there were other traffic issues in the alley. Jones replied that the alley intersection is
obstructed due to a high fence in the rear yard so safety is a concern. Kurtz asked how the alley
would be divided. Hanson responded that each abutting landowner would get ten feet (10’).
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City Council Packet
June 23, 2009
Second Readings/Public Hearings
10. Ordinance 13-09: An Ordinance for a Conditional Use to establish an
“Outdoor Sales” use on Lots 1 and 2, Block 3, Moriarty Second Addition.
Applicant: Kerry Antonsen
Proposal: Allow retail sales of “trailerable fish houses” on an industrial lot
Background: This parcel contains the petitioners landscape business and storage yard and
also a recycling business. The lots adjacent to this lot are also zoned I-1and have various
industrial uses.
Specifics: The trailers would be located on the west side of the lot and be positioned as
shown on the site plan. This area is in the floodplain but has been elevated with fill prior
to development. The standards for “Outdoor Sales” in an industrial district are as follows:
Sec. 94-290.5. Outdoor Sales.
Such uses shall be located or arranged in a manner that will display larger vehicles
away from a residential district boundary line or by location toward the interior of
the display lot. Larger vehicles shall not prohibit or disrupt traffic flow within or
through the display lot.
Recommendation: The Planning Commission voted 8 yes and 0 no to approve the
Conditional Use.
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
City Manager Recommendation - Approve
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City Council Packet
June 23, 2009
Ordinance No. 13-09
An Ordinance Pertaining to an Application for a Conditional Use for an Outdoor Sales Use in
the Industrial I-1 District.
Be it ordained by the governing body of the City of Brookings, South Dakota that said
Conditional Use shall be approved for a Outdoor Sales use on Lots 1 and 2, Block 3, Moriarty
Second Addition with the following conditions: None
All sections and ordinances in conflict herewith are hereby repealed.
FIRST READING: May 26, 2009
SECOND READING: June 23, 2009
PUBLISHED:
CITY OF BROOKINGS
__________________________
Tim Reed, Mayor
ATTEST:
________________________________
Shari Thornes, City Clerk
68
City Council Packet
June 23, 2009
Planning Commission
Brookings, South Dakota
May 5, 2009
OFFICIAL MINUTES
Chairperson David Kurtz called the regular meeting of the City Planning Commission to
order on May 5, 2009 at 7:00 PM in the Council Chamber at City Hall. Members present were
Stacey Howlett, Al Gregg, Al Heuton, Wayne Avery, Larry Fjeldos, John Gustafson, Greg Fargen,
and Kurtz. Mike Cameron was absent. Also present were David Jones, Richard Halstead, Russ
Brandriet, City Engineer Jackie Lanning, Community Development Director, Mike Struck, and
Planning and Zoning Administrator Dan Hanson.
Item #4 – Kerry Antonson has submitted an application for a Conditional Use to establish an
outdoor sales use on Lots 1 and 2, Block 3, Moriarty Second Addition.
(Gregg/Heuton)Motion to approve the Conditional Use. All present voted aye. MOTION
CARRIED.
Item #4 – Hanson stated that the location of the outdoor sale items would be along the west side
of the lot. The adjacent land to the west was undeveloped. Other adjacent uses were indicated on
an area map. Fargen inquired if the trailers could be placed on other areas of the lot. Hanson
replied that the applicant would be required to follow the site plan that he submitted. He added
that an amendment to the plan could be submitted at a later date if the applicant’s plan changed.
Dan Hanson, Secretary Dave Kurtz, Chairperson
Planning & Zoning Administrator
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City Council Packet
June 23, 2009
Second Readings/Public Hearings
11. Ordinance 14-09: An Ordinance rezoning Husen’s Addition, excluding the
North 272.8 feet of the East 815 feet; and Lot 1, Block 1, Husen’s Addition
all in the N ½ of the N ½ of the SE ¼ of Section 22-T110N-R50W from a
Residence R-1A and R-3A District to an Industrial I-1District.
Applicant: Richard Halstead
Proposal: Convert undeveloped residential land into a light industrial district
Background: Land use in this general area has been influenced by several factors. First and
foremost is that the majority of the land has always been in the floodway and special flood
hazard area (SFHA). In addition, Western Avenue from 6th Street to the by-pass was part
of Highway 14 until the mid 1960’s when the diagonal was constructed. This is why there
are several businesses along that stretch of road today. A few of these business lots also
contained the home of the proprietor. In the latter part of the 1960s, the city zoned much
of the undeveloped land to a Residence R-1A District to “control” future development.
In 1978, the city became a partner with the National Flood Insurance Program that is now
part of FEMA. Regulations were put in place to require minimum elevations for all
structures that were proposed in the SFHA. This resulted in the types of developments
that were built slab-on-grade or elevated above grade. Therefore, the greatest expansion in
terms of land use in the floodplain has been industrial operations followed by mobile
home parks. Both uses can meet the elevation requirements quite easily in most instances.
Specifics: The petitioner had originally requested a rezoning of approximately 12.5 acres
but modified his request to include only the south 4 acres. This area is still within the
original boundaries.
Recommendation: The Planning Commission voted 7 yes and 1 no to rezone the 4 acre
site proposed by the petitioner.
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
City Manager Recommendation - Approve
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City Council Packet
June 23, 2009
Ordinance No. 14-09
An Ordinance to Change the Zoning Within the City of Brookings
Be it ordained by the governing body of the City of Brookings, South Dakota,
Section 1. That the real estate situated in the City of Brookings, County of Brookings, State of
South Dakota, described as follows:
The South 196 feet of Husen’s Addition be and the same is hereby rezoned and reclassified from
a Residence R-1A District to an Industrial I-1 District; and Lot 1, Block 1, Husen’s Addition be
and the same is hereby rezoned and reclassified from a Residence R-3A District to an Industrial I-1
District.
In accordance with Section 94.7 of Article I of Ordinance 25-02 of the Code of Ordinances of
Brookings, South Dakota, as said districts are more fully set forth and described in Articles III and
IV of Ordinance No. 25-02 of the City of Brookings, South Dakota.
Section 2. The permitted use of the property heretofore described be and the same is hereby
altered and changed in accordance herewith pursuant to said Ordinance No. 25-02 of the City of
Brookings, South Dakota.
Section 3. All sections and ordinances in conflict herewith are hereby repealed.
First Reading: May 26, 2009
Second Reading and Adoption: June 23, 2009
Published:
CITY OF BROOKINGS
______________________________
Tim Reed, Mayor
ATTEST:
_________________________
Shari Thornes, City Clerk
75
City Council Packet
June 23, 2009
Planning Commission
Brookings, South Dakota
May 5, 2009
OFFICIAL MINUTES
Chairperson David Kurtz called the regular meeting of the City Planning Commission to order on May 5,
2009 at 7:00 PM in the Council Chamber at City Hall. Members present were Stacey Howlett, Al Gregg, Al
Heuton, Wayne Avery, Larry Fjeldos, John Gustafson, Greg Fargen, and Kurtz. Mike Cameron was absent.
Also present were David Jones, Richard Halstead, Russ Brandriet, City Engineer Jackie Lanning,
Community Development Director, Mike Struck, and Planning and Zoning Administrator Dan Hanson.
Item #5 – Richard Halstead has submitted a petition to rezone Husen’s Addition, excluding the North
272.8 feet of the East 815 feet thereof from a class Residence R-1A District to a class Industrial I-1District
and Lot 1, Block 1, Husen’s Addition from a class Residence R-3A District to a class Industrial I-1 District.
(Gregg/Fargen) Motion to take the motion off the table. All present voted aye. MOTION CARRIED.
(Gregg/Avery) Amendment to the motion to rezone the south 196 feet of Husen’s Addition from a
Residence R-1A District to a class Industrial I-1 District; and Lot 1, Block 1, Husen’s Addition from a class
Residence R-3A District to a class Industrial I-1 District. All present voted aye except Heuton voted no.
AMENDMENT CARRIED.
The motion, as amended, was voted on. All present voted aye except Heuton voted no. MOTION
CARRIED.
Item #5 – Richard Halstead was present to discuss a rezoning of his property that was tabled in April.
Halstead indicated that Russ Brandriet, the prospective buyer, was only interested in four (4) acres along the
south side of his land.
Brandriet stated that his intention was to construct storage buildings on the property and plant trees
around the perimeter. Gustafson asked about lighting. Brandriet said he would install security lights.
Hanson commented that zoning regulations would require that the lights not shine into adjacent
residential areas.
Heuton inquired about landscape setbacks. Hanson responded that a 50 foot wide landscape buffer was
required between an industrial district and a residential district. Hanson noted that the land was in the
Special Flood Hazard Area and would be required to be elevated prior to development. Lanning pointed
out that the land would also have to be platted prior to transfer.
Dan Hanson, Secretary Dave Kurtz, Chairperson
Planning & Zoning Administrator
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Second Readings/Public Hearings
12. Public hearing (continued from 5/26) and action on Phase One (1) of the
Safe Routes to School Project including review of Traffic Safety
Committee’s recommendations.
Background:
The Safe Routes to School program is a grant program providing communities with the
opportunity to encourage and improve safety for bicycling and walking to school for
grades K-8. The goals of the program are:
• To enable and encourage children, including those with disabilities, to walk and
bicycle to school
• To make bicycling and walking to school a safer and more appealing transportation
alternative, thereby encourage a healthy and active lifestyle from an early age
• To facilitate the planning, development, and implementation of projects and
activities that will improve safety and reduce traffic, fuel consumption, and air
pollution in the vicinity of schools.
The Safe Routes to School project involves the “5Es”:
• Education
• Enforcement
• Encouragement
• Evaluation
• Engineering
The City of Brookings and Brookings School District have received a grant for the Phase I
project which includes infrastructure and non-infrastructure items with the City
responsible for the infrastructure items. Infrastructure items include bike lane striping,
high visibility crosswalks, stencil symbols with paint for all designated routes, bike racks
and bike route signage. The infrastructure projects are planned near the Mickelson Middle
School and the new Camelot Intermediate School.
The City of Brookings received $72,690.00 in infrastructure funding and the Brookings
School District received $21,181.25 in non-infrastructure funding, with 100% of said costs
coming from Federal Highway funds. The City will be responsible for payment of the costs
associated with infrastructure with reimbursement of said costs being 100% eligible up to
the awarded amount. The City has 9 months to start the project and 2 years to complete it
from the date of the notice to proceed, which was February 18, 2009.
Public Input:
The City began held two public input hearings regarding the Phase I route by hosting a
public hearing at the May 14 and June 11, 2009 Traffic Safety Committee meetings.
Approximately a dozen citizens attended each meeting to offer input on the bike routes. A
notice along with the proposed route and striping options was mailed to the property
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owners abutting the proposed route for the May 14th meeting, and a press release was
issued for the June 11th meeting.
There are essentially three options for the bike routes:
• Sharrow: stencil and signage
• Shared parking/bike lane: stencil, signage, striped bike lane (keep parking)
• Exclusive bike lane: stencil, signage, striped bike lane (remove parking)
The Traffic Safety Committee discussed the bike route options and the following is
the summary of discussions:
Unapproved Summary of Discussion
BROOKINGS TRAFFIC SAFETY COMMITTEE
Thursday, May 14, 2009
The Brookings Traffic Safety Committee held its monthly meeting on Thursday, May 14, 2009, at
12:10pm in the City Hall community room.
Members Present: Brad Whaley, Louis Skubic, Dain Arns, Caroline Petrowski, Skip Webster,
Connie Bridges, Brian Leuders, Jackie Lanning and Bryan Gums.
Members Absent: Matthew Nelson, Tim Heaton, Daryl Englund and Keith Bruinsma
Others Present: Property owners that were invited along the proposed Safe Routes to School route,
Street Superintendent Koss Delfinis, Park and Recreation Director Allyn Frerichs and Community
Development Director Mike Struck.
Excerpt from Summary of Discussion:
New Business:
2) Discussion of the Safe Routes to School Phase I project with potential removal of parking
The Committee heard testimony from numerous people who own property along the proposed
Safe Routes to School route. A notice of the TSC meeting with a map showing the proposed
route and drawings of the striping options was sent to all of the property owners located along
the proposed route. Lanning introduced the Safe Routes to School project and showed
striping and signage drawings of the options of the shared parking/bike lane, the striped bike
lane and a sharrow lane. Most of the property owners in attendance lived along 17th Avenue
South between 8th Street South and 12th Street South. There was positive feedback regarding
healthy activities and promoting biking and walking to school, however, several people were
concerned about young students riding their bikes in the streets. All of the property owners
along 17th Avenue South in attendance and one property owner who phoned the City
Engineer wanted to keep the parking on 17th Avenue South. The reasons included that
parking is already restricted to one side of 17th Avenue South and they do not have back alley
or side-street parking available. There are activities at the Mickelson Middle School and St.
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Thomas More Catholic Church that have many people parking along 17th Avenue South.
Other property owners were concerned about the safety of children riding their bikes on the
streets, especially with the traffic congestion around the Middle School. Some property owners
felt a wider sidewalk along 17th Avenue South would be useful. Brian Leuders indicated he
thought the school district would be acceptable to maintaining a wider sidewalk. A person
asked if the grant could include sidewalk and Mike Struck stated that the grant the City
received had striping and signage in the plan. The cost of a widened sidewalk would need to
be included under a different grant or budgeted at a later date. Frerichs asked if there was
support to stripe a bike lane along the other streets. It did not appear that any members of
the audience lived along the other streets. Skip Webster stated that the Traffic Safety
Committee will discuss the public testimony and safety concerns to make a recommendation.
Lanning asked if the committee felt they could make a recommendation on any of the streets
at this meeting. The consensus of the committee was to discuss the issue further at the June
Traffic Safety Meeting before making a recommendation since the topic was complicated.
Unapproved Summary of Discussion
BROOKINGS TRAFFIC SAFETY COMMITTEE
Thursday, June 11, 2009
The Brookings Traffic Safety Committee held its monthly meeting on Thursday, June 11, 2009, at
12:10pm in the City Hall community room.
Members Present: Brad Whaley, Louis Skubic, Dain Arns, Caroline Petrowski, Skip Webster,
Connie Bridges, , Jackie Lanning, Mike Fossum, Daryl Englund and Bryan Gums.
Members Absent: Matthew Nelson, Tim Heaton, Daryl Englund and Keith Bruinsma, Brian
Leuders
Others Present: Property owners that were invited along the proposed Safe Routes to School route,
Park and Recreation Director Allyn Frerichs and Community Development Director Mike Struck,
Dave Fiedler, principal of Camelot Intermediate School.
Excerpt from Summary of Discussion:
New Business:
3) Discussion of the Safe Routes to School Phase I project with potential removal of parking
The Committee heard testimony from numerous people who own property along the proposed Safe
Routes to School route. Lanning introduced the Safe Routes to School project and described the
proposed route and summarized the May TSC discussion and showed a map of the proposed
routes. Several property owners in attendance lived along 17th Avenue South between 17th
Avenue South between 8th Street South and 12th Street South. They were supportive of promoting
health and fitness for children, however, they voiced concerns regarding the safety of children
riding bikes on 17th Avenue South during the congested school drop off times as well as their
safety crossing busy intersections such as 17th Avenue South and 12th Street South. They also had
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concerns about losing parking along 17th Avenue since they have no alley access or other means
for overflow parking. Mr. Fiedler indicated that the children will be learning more about bike
usage and bike safety because of the SRTS program and the bikes being requested for Phase II.
Sue Karolcek, a property owner on 17th Avenue South, submitted a petition on behalf of the
neighbors, to leave on-street parking on 17th Avenue South (petition attached). Property owners
also indicated they would rather have the students ride their bikes on the sidewalk and bike trail
on the east side of 17th Avenue South. Mike Struck described that this grant does not cover
sidewalk widening projects. He stated that SRTS funding is eligible for sidewalks if there are not
any in place, which would have to be a separate application.
One audience member, Mr. Thomas, who will be the P.E. teacher for Camelot Intermediate
School, was supportive of fitness and described in many towns the sharrows and bike routes are
very successful. He stated there is a national trend toward fitness and exercise.
Lanning described the other streets in the plan, and stated that 7th Avenue South and
Christine Avenue had a pavement width of 26’ which is not wide enough for bike lanes and
would need to be a “sharrow”.
The committee discussed the public testimony and voted on each street separately as follows:
• 12th Street South from Main Avenue South to 7th Avenue South: Brad
Whaley/Mike Fossum made a motion to remove parking from the south side of the
street (there is currently no parking on the north side) and stripe bike lanes. All
present voted aye. Motion passed.
• 7th Avenue South from 8th Street South to 12th Street South: Brad Whaley/Connie
Bridges made a motion to keep parking as it is and install signage and stenciling for
a “sharrow” lane. All present voted aye. Motion passed.
• Christine Avenue from 8th Street South: Brad Whaley/Skip Webster made a motion
to keep parking as it is and install signage and stenciling for a “sharrow lane”. All
present voted aye. Motion passed.
• 15th Street South from Main Avenue South to 17th Avenue South: made a motion
to keep parking as it is and install signage and stenciling for a “sharrow lane”. All
present voted aye. Motion passed.
• 12th Street South from 17th Avenue South to 22nd Avenue South: Brad
Whaley/Mike Fossum made a motion to keep parking as it is and install signage
and stenciling for a “sharrow lane”. All present voted aye. Motion passed.
• 17th Avenue South from 8th Street South to 15th Street South: made a motion to
keep parking as it is and install signage and stenciling for a “sharrow lane”. All
present voted aye. Motion passed. The committee also recommended soliciting
funding to construct a wider sidewalk along the St. Thomas More property on the
east side of 17th Avenue South which may be used as a bike path toward Mickelson
Middle School.
Staff Recommendation:
Community Development Director Mike Struck and City Engineer Jackie Lanning
reviewed the route and the Traffic Safety Committee recommendations. They
concur with all of the recommendations with the exception of 12th Street South
from Main Avenue to 7th Avenue South. There is a safety concern at 12th Street
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South and 7th Avenue South intersection with the two-way stop sign. The concern
is regarding a child that is east-bound on a bike could take a left turn onto 7th
Avenue South toward Medary School. There could be a potential vehicle-bike
collision if a car behind the bike does not anticipate the bike taking a left turn.
This intersection currently does not meet the traffic warrants for a 4-way
intersection. They recommend creating a “Sharrow” lane on 12th Street South
between Main Avenue and 7th Avenue South. The “Sharrow” lane could be striped
into a bike lane at a later date when a 4-way stop sign is warranted at 7th Avenue
South and 12th Street South.
Action: Open & Close Public Hearing, Motion to Approve, Roll Call
City Manager Recommendation - Approve
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Second Readings/Public Hearings
13. Public hearing and action on a temporary off-sale package wine license for
the SD Winegrowers Association on July 11-12, 2009 in the parking lot of
302 6th Street West (former Municipal Liquor Store).
The SD Winegrowers Association has submitted an application to sell off-sale package wine
on July 11-12 in the parking lot of 302 6th Street West (former Municipal Liquor Store).
The SD Winegrowers Association has rented a booth outside the Festival grounds and
plans to sell bottles of South Dakota wine. They also plan to offer samples of wine. That
issue is addressed under Agenda Item #14.
One of the new laws passed in 2008 permits a special OFF-SALE package wine dealer’s
licenses. This new law allows for cities to issue a special license to permit the sale of OFF-
SALE wine, but only wine that was manufactured by a farm winery within the State of
South Dakota. Legal notice, a public hearing and council action is required to issue this
license. The City Attorney and staff have reviewed this application and found everything
in order.
Action: Open & Close Public Hearing, Motion to approve, Roll Call
City Manager Recommendation: Approve
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Second Readings/Public Hearings
14. Public hearing and action on a special retail on-sale wine dealer’s license for
the SD Winegrowers Association on July 11-12, 2009 in the parking lot of
302 6th Street West (former Municipal Liquor Store).
As noted under Item #13, the SD Winegrowers Association has also submitted an
application for a Temporary ON-SALE Wine Retailers License in order to offer samples of
the wine on July 11-12 in the parking lot of 302 6th Street West (former Municipal Liquor
Store). The SD Winegrowers Association has rented a booth outside the Festival grounds
and plans to sell bottles of South Dakota wine.
Legal notice, a public hearing and council action is required to issue this license. The City
Attorney and staff have reviewed this application and found everything in order.
Action: Open & Close Public Hearing, Motion to approve, Roll Call
City Manager Recommendation: Approve
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Other Business:
15. Action to approve an operational agreement between the City of Brookings
and the Brookings Ice Skating Association (BISA).
TO: Mayor and City Council Members
FROM: City Manager Jeff Weldon
RE: Proposed agreement between City and BISA
Attached is a proposed agreement between the City of Brookings and Brookings Ice
Skating Association (BISA). The purpose of this agreement is to formalize to writing a
comprehensive agreement that addresses all aspects of the BISA program at the Larson Ice
Center. We have not had a formal agreement with the exception of two agreements that
specifically address vending with a concessionaire and one for the provision of summer ice
for 2008. The vending agreement will continue to be a stand-alone agreement and is
attached as Exhibit A. The summer ice agreement has been recodified and is incorporated
into this document.
This agreement basically commits to writing what has been common practice for most
issues and it makes some modifications to the summer ice program for 2009. The
agreement is for one year only beginning with the summer ice season and ending with the
conclusion of the winter ice season. This allows for needed modifications as we move into
the subsequent years.
I have been working with Brian VanLiere of BISA with technical assistance from City staff
Allyn Frerichs and Marc Richards. The BISA executive board is scheduled to consider this
document later this week so I anticipate their approval by Tuesday’s meeting. The Park
and Rec Board recommended approval at their meeting on June 1. Staff also recommends
approval.
Action: Motion to approve, Request Public Comment, Roll Call
City Manager Recommendation: Approve
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OPERATIONAL AGREEMENT
By and Between the City of Brookings, as owner of the Larson Ice Center, and
Brookings Ice Skating Association (BISA), for the use and operation of the
Larson Ice Center
Section 1: Recitals and General Purpose
The Brookings Ice Skating Association (hereafter referred to as BISA), is a Brookings non-profit
organization supporting youth ice hockey. The City of Brookings, (hereafter referred to as CITY),
and BISA have developed and maintained a progressive history and productive working
relationship cooperatively providing ice skating and hockey facilities and related programs serving
the Brookings community. To that end, this agreement shall set forth policies, terms and
conditions for the use and operation of the Larson Ice Center.
Section 2: Ownership of the facility
Both parties understand the Larson Ice Center is owned and operated by the CITY through its
Parks, Recreation, and Forestry Department; and that BISA is a facility user. CITY recognizes
BISA as being a primary user of the facility. The building and all its permanent fixtures and
equipment shall be owned by the CITY except for those specifically noted as being owned by
BISA. This includes items and capital improvements purchased by BISA with the express purpose
of transferring ownership to the CITY.
Section 3: Persons responsible for administration of this agreement
The CITY shall designate the Director of Parks, Recreation, and Forestry as the person responsible
for administration of this agreement and overall management of the facility. The Director shall
utilize CITY resources such as personnel and equipment as a means of administering this
agreement. The Director shall work with the City Manager on policy issues governing the facility
and policy issues shall be reviewed and recommended by the Park and Recreation Board. BISA
shall designate a contact person responsible for administration and enforcement of this agreement.
From time to time, CITY shall work with other designated BISA representatives depending upon
the issue or project contemplated.
Section 4: Facility operation-general
The CITY shall be responsible to provide for the overall operation and maintenance of the facility
including: making it available to BISA, operational expenses, janitorial staff, maintenance, repairs,
and certain capital improvements. CITY agrees to have staff available whenever BISA activities are
occurring. Operational costs provided by the CITY apply to Section 5(a) [normal season] but does
not apply to Section 5(b) [summer ice and off-season] as provided for in that section. BISA shall
be responsible for promoting, organizing, financing, and supervising youth hockey programming
in the facility. Both parties recognize and acknowledge the facility is a multi-purpose facility and
will accommodate other functions such as SDSU hockey, open skating, figure skating programs,
adult hockey, rentals, and other activities the CITY deems appropriate upon review by the Park
and Recreation Board. In the course of its use, BISA shall immediately report facility or building
problems to the CITY employee on duty.
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Section 5: Facility Scheduling
5(a) Normal Ice Hockey Season
5(a)-1 For BISA youth hockey activities, the normal length of the season shall be October 23
through March 15 with modifications by mutual agreement at the end of each season. End of
season schedule modifications may be under financial terms different from the pre-determined
schedule and negotiated on a case-by-case basis.
5(a)-2 A master daily schedule of all activities shall be maintained by the CITY. This schedule shall
be developed by mutual agreement between both parties prior to each ice hockey season with
scheduling for major tournaments and events as far in advance as possible. The schedule shall be
maintained on the BISA website and shall be final ten (10) days prior to the event. The BISA
hockey schedule shall include practices, games, tournaments, and special events for all youth age
levels. The CITY schedule shall include open skating, figure skating, SDSU hockey, and special
events deemed appropriate by the CITY. Both parties agree to resolve scheduling issues in the
spirit of cooperation, compromise, and mutual respect for each others’ programming goals. The
CITY and BISA agree to contact each other in advance of any requested schedule changes and
additions, including activities scheduled for times the ice arena is not open for public use. A flow
chart of communications will be developed by both parties indicating who the primary and
secondary contacts and responsible parties shall be for the items contained within this agreement.
The goal of scheduling shall be to provide reasonable opportunity for a broad range of activities,
while recognizing that youth ice activities are the priority use from October through March. On
any scheduling conflicts deemed irreconcilable, the City Manager shall have the final
determination. Both parties shall endeavor to maximize the scheduling to promote the most
efficient use of facilities possible.
5(b) Summer Ice Hockey Season and dry-land use
5(b)-1 The CITY shall provide the Red Rink and other amenities of the facility for summer ice
activities for youth from approximately July 20-October 23 for purposes of scheduling hockey
camps, skating clinics, leagues, games, practices, and tournaments; as well as dry-land practices.
Both parties recognize unanticipated issues such as mechanical problems and construction delays
may require an adjustment of this start date requiring each party to be flexible in scheduled
activities. A master daily schedule of all activities shall be maintained by the CITY. This schedule
shall be developed by mutual agreement between both parties prior to the season. The schedule
shall be maintained on the BISA website and shall be final ten (10) days prior to the event.
5(b)-2 BISA agrees to reimburse the CITY for the actual operational expenses of the facility for
utilities and labor. CITY shall pro-rate expenses incurred during CITY activities on an hourly rate
determined as a percentage of total combined summer ice activity hours, such amount to be
deducted from the operational costs to be reimbursed to the CITY by BISA. Operational and
maintenance expenses of the holding barn shall be exclusively that of the CITY and not BISA.
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Electrical costs in 2009 associated with the construction projects shall be discounted from the
calculation.
5(b)-3 For 2009, BISA agrees to reimburse CITY in the amount of $3750 toward equipment
maintenance expenses of the facility during this time period. These expenses shall be charged on a
pro-rated basis for operational overhead expenses, equipment and building maintenance, repair,
and supplies for summer ice. Both parties recognize the actual pro-rated cost of BISA usage for
summer ice is approximately $7500 and BISA agrees to a financial inspection by the CITY of
program records whereby BISA shall pay toward the total $7500 amount commensurate with the
profitability of the summer ice program beyond the base amount of the initial $3750. The
equipment maintenance program cost shall be evaluated pursuant to Section 17 annually and
adjusted for the subsequent year based on an average of the previous year. Said payment of the
equipment maintenance shall be due upon receipt of a billing statement by the CITY following
completion of the financial review of BISA’s summer ice program.
5(b)-4 BISA further agrees to pay for one CITY employee for actual time plus one hour per day for
BISA sponsored activities, at a rate of $11 per hour for 2009.
5(b)-5 BISA shall have priority of scheduling the Red Rink during the summer season, and shall be
entitled to use the Blue Rink for off-ice (dry-land) activities subject to scheduling availability
through the CITY. BISA agrees to work cooperatively with CITY in establishing a schedule for
CITY programming that may be offered by the CITY during summer ice and dry-land activities.
The facility shall not be used for ice activities any time other than those scheduled each day on the
master schedule maintained by the City. BISA agrees to contact CITY regarding schedule changes.
5(b)-6 CITY shall schedule and furnish labor for any CITY-sponsored event. CITY shall reserve
the right to program ice and non-ice related activities including but not limited to open skating
and rentals.
5(b)-7 Janitorial clean-up of the facility after each event shall be the responsibility of the sponsor of
said event. To the extent possible, as time permits, the CITY employee on duty during a CITY or
BISA event shall perform routine general cleanup and janitorial duties except for the concession
area which shall be the janitorial responsibility of BISA.
5(b)-8 CITY shall provide open skating Wednesdays at a time to be determined during summer ice
and shall be considered a CITY recreation program with the CITY paying all costs and receiving
all revenue from said program.
5(b)-9 At the conclusion of each summer ice season, both parties shall each prepare an itemized
financial statement for the summer ice program as a means of making adjustments for the
subsequent years programming. The statement shall address, revenue, expenses, hours of use,
participants, programming, economic impact, and other pertinent information.
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5(b)-10 BISA agrees to provide to the CITY prior to the start of the 2009 summer ice season, a
plan for improving the viability of the summer ice program which will be measured against the
results of 5(b)-9.
5(c) Collegiate and semi-professional usage and scheduling of the facility
The scheduling and usage of all adult, collegiate and semi-professional games, leagues, and
practices shall be the responsibility of the CITY. For special collegiate and semi-professional
hockey events including but not limited to tournaments, both parties may mutually agree to host
or sponsor said events on a case-by-case basis as needed. Specifically, BISA shall be allowed to
sponsor an ACHA collegiate hockey tournament in March, 2010 under the terms of this sub-
section.
Section 6: Operational Donation for facility use
For use of the facility, BISA shall provide a lump sum operational donation to the CITY to help
defer operational and maintenance costs. This amount shall be negotiated between both parties
and paid no later than May 31 of each year. This donation shall cover the use during the normal
season as provided in Section 5(a). BISA compensation for use during summer ice is described in
Section 5(b). No hourly ice time rentals will be paid by BISA for their scheduled activities during
the normal season. The amount of this donation for the ensuing year shall be determined on an
annual basis after the season ends and prior to adoption of the City budget. The goal of this
arrangement shall be to maintain a reasonable level of financial investment in youth hockey by
both parties.
Section 7: Association program costs
All costs associated with operating BISA and promoting its programming and activities shall be the
responsibility of BISA. The CITY shall not be responsible for any costs associated with the
operation, programming, or conduct of BISA.
Section 8: City to provide operational service
CITY agrees to provide staffing as needed at all times the facility is open, and shall provide rink re-
surfacing service, facility maintenance and repairs, snow removal, furnishings, and utilities such as
gas, water, sewer, electricity, and solid waste collection for the facility.
Section 9: Capital improvements to facility
Both parties mutually agree that certain capital improvements to the facility will be needed from
time to time and are mutually beneficial. Both parties further agree to share in the cost of such
mutually-beneficial improvements commensurate with their respective benefit. All major capital
improvements shall be reviewed by the Park and Recreation Board and subsequently approved by
the City Council. BISA agrees not to make any capital improvements, changes, modifications to
the facility without the consent of the CITY.
Section 10: Concessions
CITY shall provide a concession stand for use by BISA as part of the facility. BISA shall own and
maintain all equipment associated with food preparation and concession sales. CITY shall not
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provide any equipment, supplies, utensils, or other items associated with the sale of concessions.
BISA agrees to secure any required licenses associated with food preparation and sales. BISA
agrees to adhere to all applicable food preparation and inspection regulations. BISA shall be
responsible for cleanliness and janitorial activities inside the concession stand and for the lobby
service area at the concession stand. BISA shall be entitled to retain all revenue from the sale of
concessions and shall be responsible for all ordering, payments, and inventory associated with
foodstuffs and other items for re-sale.
Section 11: Payroll and staffing assistance
As a service to BISA and to help insure that all hockey coaches and paid staff are covered by
workers compensation and liability insurance, have adequate background checks, and have
otherwise met all other payroll requirements, the CITY will allow BISA’s coaching staff to be
considered as seasonal employees to be paid through the CITY’S payroll system provided BISA
reimburses the CITY the total cost of wages and associated benefits of said seasonal employees.
For the 2009-2010 season, CITY further agrees to provide the first $4000 of wages/benefits to the
coaching staff.
Section 12: Equipment storage
To the extent available, and with the specific permission of each request, CITY agrees to make
certain areas of the facility available to BISA for storage of BISA-owned equipment and supplies on
a year-round basis. Such stored items shall be owned by BISA and for the benefit of BISA and its
programs. For such equipment, BISA agrees to hold the CITY harmless for any loss, damage, or
theft of said equipment while in storage at the facility.
Section 13: Team changing rooms
BISA agrees to be responsible for general clean-up of team changing rooms after each use. CITY
shall be responsible for janitorial cleaning and sanitizing of team changing rooms.
Section 14: Operation of building equipment
Only representatives of the CITY shall be permitted to operate the ice re-surfacing machines and
equipment; and controls for the refrigeration, boilers, condensers, compressors, air handling, or
other equipment of the facility.
Section 15: Facility security
CITY shall issue keys to certain BISA members on an as-needed basis. BISA and CITY shall
maintain a list of said persons having possession of keys. Only CITY authorized persons shall
make duplicate keys and BISA agrees not to make duplicate keys without the consent of the CITY.
Section 16: Damages to facility
BISA agrees to cooperate and assist the CITY in the investigation and prosecution of persons
causing damage to the facility.
Section 17: Annual evaluation and term of agreement
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The term of this agreement shall be one year and subject to renewal as described in Section 27 and
amendments as described in Section 18. Both parties agree to annually review and evaluate the
activity and programming following the conclusion of the normal season in April or May. This
shall include but not be limited to: planning for summer ice activities, re-negotiating the following
season’s operational donation, monitoring current capital improvements, plan for future capital
improvements, identify future needs, and generally work to improve the viability, use, efficiency of
the facility and it’s programs.
Section 18: Modifications/Amendments to this agreement
Terms and conditions of this agreement shall be reviewed and mutually agreed to by both parties,
reviewed by the CITY’S Director of Parks, Recreation an Forestry, the City Manager, and the
Brookings Park and Recreation Board; and subsequently approved by the BISA Executive
Committee of the Board of Directors and the City Council.
Section 19: Insurance
BISA shall annually provide to the CITY a Certificate of Insurance naming the CITY as an
additional insured, in the amount of $1 million per occurrence, $2 million in aggregate. The
insurance shall provide liability coverage of BISA operations including concessions. BISA agrees
to keep the insurance in full force and effect at all times and shall not allow any lapses in coverage.
The CITY shall provide general property and liability insurance covering the facility in accordance
with insurance limits and policies adopted by the City Council.
Section 20: All other agreements null and void
All previous agreements between BISA and CITY are hereby declared null and void with the
exception of the following:
• Advertising/Concession agreement dated September 27, 2001 which shall remain in effect
and is attached as Exhibit A.
• Resolution No. 16-08 adopted by the City Council on February 12, 2008 and is attached as
Exhibit B.
Section 21: 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 notice to the other party as identified in Section 3
of such breach upon which both parties agree to meet and resolve such matter. Unresolved
matters shall be referred to the City Manager for attempted resolution. In the event such breach
remains unresolved after participation of the City Manager, both parties agree to submit the
matter to an Alternative Dispute Resolution process.
Section 22: Severability
The provisions of this agreement shall be deemed severable. If any part of this agreement shall be
held invalid, illegal, or unenforceable, the remainder shall remain in full force and effect, and such
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.
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Section 23: 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, and enforceable
obligations of each party in accordance with their respective terms.
Section 24: 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 18.
Section 25: 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 26: Assignability/transferability
Neither party shall assign its rights or obligations under this agreement to third party without the
consent of the other party. BISA shall not lease or sub-lease any part of the facility without the
permission of the CITY.
Section 27: Duration
This agreement shall expire one year from the date of execution. Both parties shall be diligent in
successfully negotiating a renewed agreement so as to minimize any lapse in coverage. Notice
should be served to the persons identified in Section 3 to discuss a renewal.
Adopted and entered into this ___ day of ___________, 2009
City of Brookings Brookings Ice Skating Assn.
_________________ _____________________
Tim Reed Brian VanLiere
Mayor President
ATTEST:
________________
Shari Thornes
City Clerk
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EXHIBIT B:
Resolution No. 16-08
Resolution Establishing the Policy of the City of Brookings Concerning Use of the Red
(competition) Rink of the Larson Ice Center for Animal Events.
BE IT RESOLVED by the City Council of the City of Brookings, South Dakota as follows:
WHEREAS, the City Council recognizes it is again necessary at this time to establish a
specific policy concerning use of the red (competition) rink of the Larson Ice Center for animal
events, and
WHEREAS, the Park and Recreation Board as a recommended action to the City Council
approved a motion which provided:
The Park and Recreation Board prefers that animal events not be scheduled
in the Larson Ice Center Red rink and reaffirms that priority use of the Red
rink continues to be for ice skating programs on a year-round basis, and
WHEREAS, the City Council believes that prohibiting animal events within the red rink
constitutes the best policy to preserve and enhance the quality of the red rink’s infrastructure, and
will also be consistent with the City’s priority for use of the red rink as an ice skating facility,
NOW THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of
Brookings, South Dakota, as follows:
That effective immediately, the red (competition) rink of the Larson Ice
Center shall not be used for animal events, and in accordance with this
policy, animals shall not be kept, penned or permitted upon or within the
red (competition) rink of the Larson Ice Center.
Passed and approved on the 12th day of February, 2008.
CITY OF BROOKINGS:
ATTEST:
Scott D. Munsterman, Mayor
Shari L. Thornes, City Clerk
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Other Business:
16. Valley View Phase II (Tax Increment District Number Three).
A. Action to approve the DEVELOPMENT AGREEMENT for Valley
View Phase II (Tax Increment Plan for Tax Increment District
Number Three).
Attached as Item A is the proposed development agreement between the City of
Brookings and Blairhill Properties, Inc. for the development of Valley View Second
Addition. As you recall, Valley View is a housing subdivision under the terms and
conditions of Tax Increment District Number 3 whereby Phase I was initiated last
year and is in the final stages of completion. Numerous homes have been built
under Phase I.
This development agreement provides for Phase II but also covers the existing
provisions of Phase I (without any changes) effectively replacing the Phase I
development agreement.
Also attached as Item B is the bond resolution which provides the interim
financing through South Dakota Housing Finance Agency which constitutes a loan
to the developer until TIF revenue is generated. The City is required to be the pass-
through account between SDHFA and the developer and we make no payments
other than the bond proceeds from SDHFA. This is exactly the same manner in
which Phase I was done last year. This new loan amount refinances Phase I and
adds Phase II. The developers have already been approved by SDHFA for the loan.
Both documents were prepared by the City’s Bond Counsel, Todd Meierhenry and
Financial Advisor Toby Morris. They wrote the initial development agreement and
TIF plan.
The terms and conditions of Phase II are the same as Phase I and there are no
changes to the tax increment plan. When the TIF plan was adopted, the plan
envisioned Phase II being developed.
Staff recommends approval of the development agreement.
Action: Motion to approve, Request Public Comment, Roll Call
City Manager Recommendation: Approve
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Drafted by
Todd Meierhenry
Meierhenry Sargent LLP
315 S. Phillips Ave.
Sioux Falls, SD 57104
(605) 336-3075
PHASE II DEVELOPER’S AGREEMENT
THIS AGREEMENT, made on ____________________, 2009, by and between the city of
Brookings, a municipal corporation of the state of South Dakota and the county of Brookings
called the city, and Blair Hill Properties, Inc., a South Dakota corporation, with its principal
office located at 600 Blair Hill Circle, Brookings, South Dakota, 57006-5459, called the
Developer, witness:
WHEREAS, the City of Brookings created Tax Increment District Number Three, the legal
and map of the area indicated below;
and:
WHEREAS, a portion of the Tax Increment Refunding Bond Series 2009 proceeds will be
used to (1) refund the outstanding Tax Increment bonds of the District and (2) assist in
providing for certain project costs associated with public improvements located adjacent to
Lots 15 And 16 Of Block 2, Lot 1 And Lots 8 Through 13 Block 4, Lots 1 Through 6 And 8
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Through 13 Of Block 5, Lots 4 Through 15 Of Block 7 And Road Row’s, All In Valley View
Addition In Section 3 Township 109 North, Range 50 West Of The 5th Pm, City Of
Brookings, Brookings County, South Dakota, a copy of the plat shown hereafter;
and
WHEREAS, the City wishes to place certain terms on the development in exchange for tax
increment funds used for public infrastructure abutting the affordable housing lots.
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NOW, THEREFORE, in consideration of the mutual covenants contained in this agreement,
the parties, for themselves, their successors and assigns, hereby agree as follows:
1. Entire Agreement. This agreement (including any attached exhibits and any written
amendments executed by the parties) constitutes the entire agreement and supersedes all prior
agreements and understandings, oral and written, between the parties to this agreement with
respect to the subject matter of this agreement.
2. Agreement Relating to Installation of Roads, Curbing, Pavements, Street Lights and Fire
Hydrants. The developer shall construct, except as hereafter provided in paragraph 2, as
provided for in the subdivision, all roads, curbing, pavement and other improvements,
including all catch basins and drainage facilities, monuments, street lights, and other
improvements of any nature whatsoever as set forth on the final plat approved by the city
engineer, and accompanying construction plans prepared by the city engineer, and in
accordance with all present state and local laws, present improvement ordinances and
regulations of the city of Brookings, South Dakota and in all respects complete the subdivision
in accordance with all maps, plans and specifications on file with the planning board and local
laws, ordinances and regulations. Where any such construction has been partially completed
prior to this agreement, developer agrees to complete them in accordance with this paragraph.
3. Tax Increment District Number Three Project Costs. The City shall undertake and
construct such public improvements as are set forth in Tax Increment District Number Three
project plan in an amount not to exceed $1,035,000, $535,000 for phase I which are nearly
completed and $500,000 for phase II which will be funded with the proceeds of Tax Increment
Refunding Bond Series 2009 proceeds.
4. Conditions to run with the land. As a condition of provided the tax increment bond
proceeds, the Developer agrees to provide and construct affordable housing not less than 65
family housing units with a maximum sales price, to the original purchaser of $160,000 be
constructed in the subdivision to be affordable housing units. This agreement shall be filed on
the real property as evidence of said condition.
5. Acceptance of Improvements. The city shall not be responsible for road or other
improvements, maintenance or care until the same shall be accepted, nor shall the city exercise
any control over the improvements until accepted. Upon the proper completion of these
improvements and their approval by the city engineer, and if these improvements then comply
with all present state laws, present city ordinances and planning board rules, regulations and
requirements, the city will then accept the improvements.
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6. Public Right-of-Ways. The city represents that it has good title to the roads and public ways in
which the improvements will be installed, and agrees that the roadways and easements as set
out on its maps heretofore filed with the planning board are thereby dedicated, and that all
improvements and roads as required by the city and agreed to by the developer, including
water mains, hydrants and other appurtenances shall, upon completion and acceptance by the
city, be the property of the city.
7. General Requirements. It is agreed that the work to be performed hereunder shall be
completed within 18 months from the date of this agreement, unless the time is extended by
the city, which extension shall not be unreasonably withheld.
8. Run with the Land. This agreement shall run with the land, as shall also the covenants herein
contained, and shall be to the benefit of the city and its successor and assigns.
9. Guaranty of Bonds. If required by bond purchase, the Developer agrees to guaranty the Tax
Increment Bonds, Series 2009 of the City. It is understood that if there is not sufficient Tax
Increment Revenue for the debt service, the City will not be responsible for any shortfall.
10. Pay Agent. The City will act as the paying agent for the bonds.
11. Draw Down. The bond shall be drawn upon once the following has been completed:
11.1. Developer shall have demonstrated in writing to the reasonable satisfaction of the
City that said improvements have been made.
11.2. Developer shall have submitted invoices showing services/improvements have been
made.
12. Maintenance until Acceptance. The developer shall maintain, clean and snowplow such
roads until acceptance by the city. In the event of default of these obligations by the developer,
the city without notice to the developer, may do the same at the expense of the developer.
13. Maximum price of developed parcel. The developer shall set the price of a completed home
and lot in an amount not to exceed $160,000 in 2009 and such prices shall not exceed the
affordability index as established by South Dakota Housing Development Authority. There
shall be no special assessments levied against any parcel for the provision of infrastructure with
the initial sale.
14. Homes to be constructed. The developer shall construct homes within the prescribed price
range in accordance with market conditions but shall be a variation of four different floor
plans ranging from 1000 to 1400 finished square feet in size, shall be between two and three
bedrooms with one or two bathrooms and shall include double attached garages.
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15. Termination of Agreement. Should the developer not adhere to the price restrictions of the
homes, the City reserves the right to terminate payments on the TIF Bond, regardless if there is
any outstanding principal of the bond.
16. Owner Occupied. The Developer agrees to put in the purchase agreement that the first time
home buyer shall not rent the house out within one year of signing the purchase agreement
17. Mechanics Liens. The Developer, Blair Hill Properties, agrees to immediately satisfy any and
all mechanic’s liens or material man’s liens that arise as a result of this project. This provision
shall not prevent Blair Hill Properties from subsequently seeking compensation from
subcontractor or others who may be responsible for such liens or for such payment.
18. Discretionary Tax Formula. The Developer agrees to waive any and all rights to the
discretionary tax formula with the County of Brookings.
19. Dedication. The developer shall dedicate Lot 16 Block 2 of Valley View Addition to the City
for purposes of park land.
20. Partial Invalidity. If any one or more of the provisions of the agreement, or of any exhibit or
attachment thereto, shall be held invalid, illegal, or unenforceable in any respect, by final
decree of any court of lawful jurisdiction, such invalidity, illegality, or unenforceability shall
not affect any other provision hereof, or of any exhibit or attachment thereto, but the
agreement, and the exhibits and attachments thereto, shall be construed the same as if such
invalid, illegal, or unenforceable provision had never been contained herein, or therein, as the
case may be.
21. Effective. This Agreement will not be binding upon Developer until signed by the Developer
or Developer's duly authorized agent. This Agreement will be effective as of the date executed
by the Developer or Developer's agent as set out below.
In witness whereof, the Developer and City have caused this Agreement to be executed on
_______________, 2009.
CITY OF BROOKINGS
____________________
Mayor
ATTEST:
_____________________
City Clerk
SEAL
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FILE WITH BROOKINGS COUNTY REGISTER OF DEEDS (MISCELLANEOUS)
Valley View Addition in Section 3 Township 109 North, Range 50 West Of the 5th PM, City Of
Brookings, Brookings County, South Dakota, according to the recorded plat thereof.
BLAIRHILL PROPERTIES, INC.
_______________________
President
ATTEST:
_________________________
Secretary
SEAL
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Other Business:
16. Valley View Phase II (Tax Increment District Number Three).
B. Action to approve Resolution No. 64-09, a Resolution Giving
Approval To Tax Increment District Number 3 Project Phase II,
Giving Approval To The Issuance Of Tax Incremental Revenue
Refunding Bonds To Refund Outstanding Tax Increment District
Number 3 Bonds, The Project And Authorizing The Sale Of Said
Tax Incremental Revenue Refunding Bonds And The Terms
Thereof.
Attached as Item A is the proposed development agreement between the City of
Brookings and Blairhill Properties, Inc. for the development of Valley View Second
Addition. As you recall, Valley View is a housing subdivision under the terms and
conditions of Tax Increment District Number 3 whereby Phase I was initiated last
year and is in the final stages of completion. Numerous homes have been built
under Phase I.
This development agreement provides for Phase II but also covers the existing
provisions of Phase I (without any changes) effectively replacing the Phase I
development agreement.
Also attached as Item B is the bond resolution which provides the interim
financing through South Dakota Housing Finance Agency which constitutes a loan
to the developer until TIF revenue is generated. The City is required to be the pass-
through account between SDHFA and the developer and we make no payments
other than the bond proceeds from SDHFA. This is exactly the same manner in
which Phase I was done last year. This new loan amount refinances Phase I and
adds Phase II. The developers have already been approved by SDHFA for the loan.
Both documents were prepared by the City’s Bond Counsel, Todd Meierhenry and
Financial Advisor Toby Morris. They wrote the initial development agreement and
TIF plan.
The terms and conditions of Phase II are the same as Phase I and there are no
changes to the tax increment plan. When the TIF plan was adopted, the plan
envisioned Phase II being developed.
Action: Motion to approve, Request Public Comment, Roll Call
City Manager Recommendation: Approve
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RESOLUTION NO. 64-09
Resolution Giving Approval To Tax Increment District Number 3 Project Phase Ii, Giving
Approval To The Issuance Of Tax Incremental Revenue Refunding Bonds To Refund
Outstanding Tax Increment District Number 3 Bonds, The Project And Authorizing The Sale
Of Said Tax Incremental Revenue Refunding Bonds And The Terms Thereof.
NOW, THEREFORE, BE IT RESOLVED AND RESOLVED by the City of Brookings
as follows:
SECTION 1. AUTHORITY, FINDINGS, AUTHORIZATION.
1.01 Authority. The City is authorized to issue its Tax Incremental Revenue Refunding Bonds,
Series 2009 to (1) Refund Tax Increment Bonds, Series 2008 in accordance with 6-8B-30 through
6-8B-52 and (2) finance project costs pursuant to Section 11-9-33 of the South Dakota Codified
Laws. Pursuant to Chapter 11-9 of the South Dakota Codified Laws (the "Act"), the City proposes
to issue tax incremental revenue bonds (as herein authorized, the “Tax Incremental Revenue
Refunding Bonds” or the "Bonds") to finance a portion of the Phase II project costs. The City is
authorized by the Tax Incremental Act to pledge a special fund into which the City will deposit the
tax increment (as defined by the Act).
1.02 Findings. The City Council hereby finds and determines as follows:
(a) It is necessary to provide incentives for the development of certain real property located in
the City for affordable housing;
(b) The City intends to provide financing of public works and improvements located in the
City of Brookings in connection with Tax Increment District Number 3 the plan on file
with the City Finance Officer and open to public inspection (the "Project");
(c) The Tax Incremental Revenue Refunding Bonds authorized hereby are being issued to pay
costs of Project, which have not been incurred or paid as of the date hereof and/or which
the City has heretofore declared its intention to finance with bond proceeds and for which
the City has no other available means or source of financing. The cost of the Project will
not exceed $500,000, including capitalized interest;
(d) It is in the best interests of the City to authorize the borrowing of funds to pay a portion of
the costs of the Project by authorizing and issuing the Refunding Bonds, consistent with
the terms approved hereby for an aggregate sum not in excess of the amount of
$1,035,000; and
(e) That the Tax Incremental Revenue Refunding Bonds are payable only solely out of the
special fund created herein and that it does not constitute a general indebtedness of the
City or a charge against its general taxing power.
1.03 Authorization to issue the Bonds. It is hereby determined to be necessary and in the best
interests of the City and its inhabitants that this City Council authorize, issue and sell the Bonds
(the “Bonds”) in order to finance a portion of the cost of the Project. The Mayor, City Manager
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and City Finance officer are authorized to negotiate the sale and terms of the Bonds subject to the
limitations of the law and this Resolution. The Bonds may be issued by the City without an
election pursuant to SDCL §11-9-34 and Chapter 6-8B.
SECTION 2. SALE, BOND PURCHASE AGREEMENT AND OFFICIAL STATEMENT.
2.01 Sale. The Bonds authorized by this Resolution shall be issued in an aggregate principal
amount not exceeding $1,035,000 and shall be privately placed due to the unique nature. The
Bonds will bear interest at a rate or rates per annum and will mature over a period set forth in the
bond purchase agreement or similar document. The City intends to sell the Bonds to South
Dakota Housing Development Authority (the "Purchaser").
2.02 Bond Purchase Agreement. The execution of a bond purchase agreement or similar
document setting forth the final terms of the Bonds is hereby approved and authorized. The
execution of said document by the Mayor and City Finance officer shall be conclusive evidence of
such agreement and shall be binding upon the City.
SECTION 3. TERMS OF BONDS.
3.01 Date, Amount, Maturities and Interest Rates. The Bonds shall be dated in calendar year
2009. The principal amount of the Bonds shall not exceed the lesser of $1,035,000 or any
statutory or constitutional debt limitation. The term of the Bonds shall not exceed 20 years. The
weighted average interest rate on the Bonds shall not exceed 6.00%.
3.02 Form of Bonds. The Bonds shall be prepared in substantially the form on file with the
City Finance officer and open to public inspection.
3.03 Execution. The Bonds shall be signed by the manual or facsimile signatures of the Mayor
and City Finance Officer of the City and countersigned by the manual or facsimile signature of an
attorney resident in the State of South Dakota and in case any officer whose signature shall appear
on any Bond shall cease to be such officer before the delivery of such Bond, such signature shall
nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in
office until delivery
3.04 Redemption. Terms of optional or mandatory redemption shall be set by negotiation with
the purchaser of the Bonds.
(i) Appointment of Initial Registrar. The City hereby appoints the Finance Officer, as
Bond registrar, transfer agent and paying agent (the "Registrar") for the Bonds.
3.05 Authentication and Delivery. No Bond shall be valid or obligatory for any purpose or
entitled to any security or benefit under this Resolution unless and until a certificate of
authentication on such Bond has been duly executed by the Registrar by the manual signature of
its authorized representative. Certificates of authentication on different Bonds need not be signed
by the same representative. The executed certificate of authentication on each Bond shall be
conclusive evidence that it has been authenticated and delivered under this Resolution. When the
Bonds have been so prepared, executed and authenticated, the City Finance Officer shall deliver
the same to the Purchaser thereof upon payment of the purchase price in accordance with the
provisions of the Bond Purchase Agreement and the Purchaser shall not be obligated to see to the
application of the purchase price. Upon delivery of the Bonds to the Purchaser, the City Finance
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Officer shall file with the Secretary of State, on the form provided by the Secretary of State, the
information required by SDCL, Section 6-8B-19.
SECTION 4. SECURITY PROVISIONS; FUNDS AND ACCOUNTS AND OTHER
COVENANTS AND DETERMINATIONS.
4.01 Pledge Tax Increments. Pursuant to the Act, the City shall receive Tax Increments. All
Tax Increments shall be placed in the Tax Incremental Revenue Bond Fund. The Tax Increment
is irrevocably pledged and appropriated to the payment of the Bonds. For purposes of this
Resolution, "Outstanding Bonds" shall mean these Bonds and any parity lien bonds herebefore or
hereafter issued pursuant to this Resolution. The Tax Incremental Revenue Bond Fund shall be
used and applied only in the manner and order hereinafter set forth. The holders of the
Outstanding Bonds shall have a lien against the Tax Incremental Revenue Bond Fund for payment
of the principal and interest and may either at law or in equity protect and enforce the lien.
4.02 Tax Incremental Revenue Bond Fund. The City Finance Officer is hereby authorized and
directed to establish and shall maintain a special fund, the Tax Incremental Revenue Bond Fund,
as a separate and special fund in the financial records of the City until all Bonds issued and made
payable therefrom, and interest due thereon, have been duly paid or discharged. All collections of
the Tax Increments shall be credited, as received, to the Tax Incremental Revenue Bond Fund.
Within the Tax Incremental Revenue Bond Fund are various separate accounts to be maintained
by the City.
(a) Construction Account. There is hereby created and established as an account of the Tax
Incremental Revenue Bond Fund, a "Construction Account". There shall be credited to
the Construction Account the proceeds from the sale of the Bonds remaining after
payment of the expenses of issuing the Bonds. All moneys credited to the Construction
Account shall be applied solely to the payment of the costs of the Project or reimbursement
therefore. For the purposes of this Resolution, "costs of the Project" shall include costs of
acquiring, construction, and installing the Project including cost of capitalized interest,
labor, services, materials and supplies, financial, architectural, engineering, legal,
accounting and other professional expenses relating to the Project, the costs of acquisition
or properties, rights, easements, or other interest in properties, insurance premiums, and
the costs of publishing, posting or mailing notices in connection with the Project. All sums
derived from the investment of moneys in the Construction Account shall remain in and
become part of such account. Upon completion of the Project and when all costs of the
Project have been paid, any balance remaining in the Construction Account shall be
credited to the Principal and Interest Account hereinafter established. All public project
costs shall be bid in accordance with South Dakota law.
(b) Principal and interest Account. There is hereby created and established as an account of
the Tax Incremental Revenue Bond Fund, a "Principal and Interest Account." Immediately
upon delivery of the Bonds, there shall be credited to the Principal and Interest Account
the amount of any accrued interest received from the Purchaser. Periodically, as needed
there shall be withdrawn from the Tax Incremental Revenue Bond Fund and credited to
the Principal and Interest Account an amount which will equal at least the next principal
and interest payment. In all events there shall be credited to the Principal and Interest
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Account amounts sufficient to pay the principal of and interest on the Outstanding Bonds
as the same become due.
(c) Subordinate Lien Bonds. After making the above required payments, any remaining Tax
Increment shall be used for the payment of the principal of and interest on any additional
Tax Incremental Revenue Refunding Bonds having a lien which is subordinate to the lien
of the Outstanding Bonds, and for a reserve fund as additional security for the payment of
such subordinate lien bonds.
4.03 Additional Debt.
(a) No additional Bonds shall be issued, be made payable from the Tax Incremental Revenue
Fund or Tax Increments which is prior to or superior to the lien of the Bonds authorized
herein.
(b) Nothing in this Resolution shall be construed in such manner as to prevent the issuance by
the City of additional bonds payable from the Tax Increment and constituting a lien upon
the Tax Increment and the Tax Incremental Revenue Fund equal to or on a parity with the
lien of the Bonds authorized herein (such additional bonds being referred to herein as
"Additional Bonds"), provided that it is feasible and the Bond Holder agrees in writing.
(c) Nothing herein shall prevent the City from issuing Bonds payable from the Tax Increment
or Tax Incremental Revenue Bond fund or having a lien thereon which is junior and
subordinate to the lien of the Bonds authorized herein. The City may incur expenses in
connection with the Tax Incremental District Number 3 which shall be reimbursed
through the tax increment. Said obligations shall be junior and subordinate to the Bonds
whether evidenced by an accounting notation or instrument of indebtedness.
4.04 Pledge of State of South Dakota. Pursuant to SDCL 11-9-39.1, the State of South Dakota
does pledge to and agree with the holders of any issued under 11-9 that the state will not alter the
rights vested in the bond holders until such bonds, together with the interest thereon, with
interest on any unpaid installments of interest, and all costs and expenses in connection with any
action or proceeding by or on behalf of such holders, are fully met and discharged.
4.05 Covenants of the City. The City hereby irrevocably covenants and agrees with each and
every holder of the Bonds that so long as any of the Bonds remain outstanding:
(a) It will not amend or repeal the Tax Increment or the allocation of revenues thereof to the
Tax Incremental Revenue Bond Fund, or in any way that would adversely affect the
amount of Tax Incremental Revenues which would otherwise be collected and deposited to
the Tax Incremental Revenue Bond Fund.
(b) It will administer, enforce, and collect, or cause to be administered, enforced or collected,
the real property taxes and shall take such necessary action to collect delinquent payments
in accordance with law.
(c) It will keep or cause to be kept such books and records showing the proceeds of the Tax
Incremental, in which complete entries shall be made in accordance with standard
principles of accounting, and any owner of any Bond shall have the right at all reasonable
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times to inspect the records and accounts relating to the collection and receipts of such Tax
Incremental.
(d) In the event the real property taxes of the City is replaced and superseded by the state
collected-locally shared tax or taxes, or is replaced and superseded in some other manner
form other source or sources, the revenues derived by the City from the replacement
source or sources, as received by the City shall be appropriated in the same manner as if
the City had levied and imposed a real property tax. From and after the date of a
replacement, the Outstanding Bonds shall have a first and prior lien, but not necessarily an
exclusive lien, upon such replacement revenues to the extent therein specified.
4.06 Defeasance. When all the Bonds issued have been discharged as provided in this section,
all pledges, covenants, and other rights granted by this Resolution to the registered owners of the
Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are due
on any date by providing to the Paying Agent on or before that date a sum sufficient for the
payment thereof in full; or, if any Bond should not be paid when due, it may nevertheless be
discharged by providing to the Paying Agent a sum sufficient for the payment thereof in full with
interest accrued to the date of such deposit. The City may also discharge its liability with reference
to all Bonds which are called for redemption on any date in accordance with their terms by
depositing funds with the Paying Agent on or before that date in accordance with their terms by
depositing funds with the Paying Agent on or before that date, in an amount equal to the
principal, interest, and premium, if any, which are then due thereon, provided that notice of such
redemption has been duly given. The City may also at any time discharge this issue of Bonds in its
entirety, subject to the provisions of law now or hereafter authorizing and regulating such action,
by depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for this
purpose, cash or United States government obligations which are authorized by law to be so
deposited, bearing interest payable at such times and at such rates and maturing on such dates as
shall be required to provide funds (without an reinvestment) sufficient to pay all principal, interest
and premiums, if any, to become due on all Bonds on and before maturity, or, if a Bond has been
duly called for redemption, on or before the designated redemption date.
4.07 Certification of Proceedings. The officers of the City are authorized and directed to
prepare and furnish to the purchasers of the Bonds certified copies of all proceedings and records
of the City relating to the authorization and issuance of the Bonds and such other affidavits and
certificates as may reasonably be required to show the facts relating to the legality and marketability
of the Bonds as such facts appear from the officer's books and records or are otherwise known to
them. All such certified copies, certificates and affidavits, including any heretofore furnished, shall
constitute representations of the City as to the correctness of the facts recited therein and the
action stated therein to have been taken.
SECTION 5. TAX MATTERS; CERTIFICATION OF PROCEEDINGS AND
MISCELLANEOUS.
5.01 Tax Matters. The interest component on the Bonds shall be taxable.
SECTION 6. INTERPRETATION, AUTHORIZATION OF OFFICERS AND
RESOLUTION CONSTITUTES CONTRACT.
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6.01 Interpretation. If any section, paragraph, clause or provision of this Resolution shall for
any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such
section, paragraph, clause or provision shall not affect any of the remaining provisions of this
Resolution.
6.02 Authorization of Officers. The Mayor, officers of the City and the City Finance Officer of
Brookings are authorized and directed to prepare and furnish to the purchasers of said Bonds, and
to the attorneys passing on the legality of said Bond issue, copies of all proceedings relating to
Bonds and other certificates and affidavits showing the facts affecting the legality thereof as shown
by the books and records of the City under their custody and control or as otherwise known to
them and such copies, certificates and affidavits, including any heretofore furnished, shall
constitute representations of the City as to the facts therein recited.
6.03 The officers of the City are hereby authorized and directed to take all other action
necessary or appropriate to effectuate the provisions of this Resolution , including without limiting
the generality of the foregoing, the printing of the Bonds, and the execution of such certificates as
may reasonably be required by the Purchaser, including, without limitation, certification relating
to the signing of the Bonds, the tenure and identity of the City's officials, the exemption of interest
on the Bonds from federal income taxation, the receipt of the Bond purchase price and, if in
accordance with the facts, the absence of litigation affecting the validity thereof.
6.04 Resolution Constitutes Contract. After the Bonds have been issued, this Resolution shall
constitute a contract between the City and the holder or holders of the Bonds, and shall be and
remain irrepealable and unalterable until the Bonds and the interest accruing thereon shall have
been duly paid, satisfied and discharged.
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City Council Packet
June 23, 2009
6.05 Rules of Construction. If any section, paragraph, clause or provision of this Resolution
shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of
such section, paragraph, clause or provision shall not affect any of the remaining provisions of this
Resolution. The title or caption of each paragraph are for convenience purposes only and do not
define scope or intent of paragraph.
ATTEST: ________________________________
Mayor
_____________________________
City Clerk
Adopted: ______________, 2009
Approved: ______________, 2009
Published: ______________, 2009
The motion for adoption of the foregoing Resolution was duly seconded by Council
Member ______________ and upon vote being taken thereof, the following voted YEA:
And the following voted NAY:
Whereupon said Resolution was declared duly passed and adopted.
_________________________________
ATTEST: Mayor
__________________________
City Clerk
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STATE OF SOUTH DAKOTA )
SS
COUNTY OF BROOKINGS )
I, the undersigned, being the duly qualified and acting City Clerk of the City of Brookings,
South Dakota, do hereby certify that the attached and foregoing is a full, true and complete
transcript of the Minutes of a meeting of the City Council held on the ______ day of June 2009,
insofar as the original meeting relates to proceedings for the Resolution Authorizing the Sale of
Said Tax Incremental Revenue Refunding Bonds.
WITNESS my hand and official seal of this said City this ______ day of June 2008.
________________________________
Shari Thornes, City Clerk
City of Brookings, South Dakota
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Other Business:
17. Action to approve Storm Water Finance Plan “Option #5.”
Option 5: Issue debt from the DENR through the SRF program using $475,000 as the annual debt
service (50 percent increase in the fee) for 20 years term at 3 percent interest. This produces the
ability to loan $8 million that can be applied to projects. The loan would be advanced in $2 million
increments over 4 years. Estimated completion time: 8 years.
Pursuant to the City Council request during the Storm Water Finance Plan and Capital
Debt Service Analysis discussion on May 26th, the City Engineer researched the issue of
other cities that have a drainage fee similar to Brookings. There are four cities in South
Dakota that have a drainage fee similar to Brookings, which are Aberdeen, Harrisburg,
Sioux Falls and Vermillion. The following is their 2009 Unit Financial Charge and a
summary of the work they perform with these funds:
• Aberdeen: 0.000252
Aberdeen uses their drainage fund to cover operating and maintenance of their storm
sewer system. They do not use this fund for construction, land acquisition or engineering
design.
• Harrisburg: 0.00070
Harrisburg uses their drainage fund to cover operation, maintenance and construction of
the drainage and storm sewer system.
• Sioux Falls: 0.00047
Sioux Falls uses their drainage fund to cover operation, maintenance, CIP projects and
some land acquisition. The City charges developers a separate platting fee on all newly
platted developments that meets certain criteria, and that platting fee is used to offset
regional detention pond costs. The developments are also required to have their own
detention for water quality requirements. The City of Sioux Falls utilized SRF loans for
the 40 million dollar drainage improvements that were built several years ago, and used the
drainage fund to pay for the loan.
• Vermillion: 0.00029
Vermillion uses their drainage fund to cover operating and maintenance and minor
construction. They have pledged the drainage fund toward SRF loans when they construct
a larger project. Their unit financial charge increases at 0.00001 per year. The City has
proposed larger rate increases to the unit financial charge in recent years without success.
• Brookings: Brookings 2009 Unit Financial Charge: 0.00036
Proposed 2010 Unit Financial Charge: 0.00054
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The Brookings fund is utilized for all storm sewer costs including operation, maintenance,
design and engineering, legal fees, land acquisition and construction of drainage
improvements.
Recommendation: Option 5 of the proposed finance plan involved issuing dept from the
DENR through the SRF program using $475,000 as the annual debt service (50% increase
in the fee) for 20 years term at 3 percent interest. This produces the ability to loan $8
million that can be applied to projects. The loan would be advanced in $2 million
increments over 4 years. Estimated completion time: 8 years.
The research regarding the other cities’ unit financial charge for their drainage fee showed
a wide range of fee rates. Their governing bodies likely set the rate to assure the funds are
available to cover the work necessary under their particular program. You will note that
Aberdeen has a low rate, however, their fee only covers operating and maintenance and
not land or construction. On the other hand, Harrisburg’s fee is higher than Brookings
proposed fee, since they cover all drainage costs and improvements similar to Brookings.
Action: Motion to Approve, Request Public Comment, Roll Call
City Manager Recommendation - Approve
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Storm Water Plan from May 26th Agenda Packet:
Having adopted the project priority listing for the 12 projects, we need to turn our
attention to exploring methods of financing these projects. We have a variety of options
available to us. The purpose of this memo is to describe the various options and
recommend one such option as the preferred choice.
As a reminder, staff is focusing on the top three priority projects to concentrate our efforts
for this year.
Project Priority #1: Southland Lane & 12th St. S. Detention Pond
This project involves negotiations with property owners to acquire Block 8 Hyland
Addition as the location for a detention pond. Contact has been made with the owner to
initiate negotiations on the land. After that, a pond will have to be constructed followed
by structures. ($1.789 million 5 yr./$4.779 million 100 yr.)
Project Priority #2: Garden Square Apts./Garden Square Townhouse Area
This project involves structure improvements and landscaping. ($38,000 5 yr./$541,477
100 yr.)
Project Priority #3: 15th St. S. 7th Ave. S. detention pond
This project involves a detention pond on city-owned property and structure
improvements. ($2.342 million 5 yr./$4.962 million 100 yr.)
Each project will need to be individually engineered. We will not start design work on
Project 1 until we have secured the property so an initialization schedule for this project is
problematic. We are in the process of beginning design work on Projects 2 and 3.
With regard to financing, the storm drainage fee currently is budgeted to raise $502,455 in
revenue for 2009 and projected to raise $522,553 in 2010. Of that amount, we can
estimate $300,000 being available annually for capital expenses of property acquisition for
ponds, easements, construction of infrastructure, and related engineering costs. The
current fee was last increased in 2007 when it was doubled. We may want to consider
implementing gradual, incremental increases in the storm drainage utility fee to help
finance these improvements. The capital costs of financing our entire project priority list is
just over $8.1 million for five-year standards and just over $14.5 million for 100-year
standards in today’s dollars. Over time, inflation will increase these costs.
The City’s net debt limit after giving effect to the issuance of sewer and water bonds or
issuance of debt not yet voter approved, is as follows:
Legal Debt Limit for Fiscal Year 2007/2008 $ 38,887,744
Outstanding bonds applicable to 5% debt limit $ 13,650,000
TIF #3 & 4 $ 785,000
TIF#1 $ 4,100,000
Storm Drainage SRF Loan $ 8,000,000
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Net Debt Margin $ 12,352,744
*Projects outstanding per Council-Airport $12M, Swiftel Expansion $7M, City Hall $4M, Hillcrest
Park-Lazy River $2M-25th Avenue $750,000
The following are various options for financing the projects to five-year standards not
accounting for the time value of money:
Option 1:
Pay-as-you-go leaving the fee unchanged. This provides $300,000 annually to be applied to
the projects. Estimated completion time: 27 years.
Option 2:
Pay-as-you-go and increase the fee 50 percent. This provides $450,000 annually to be
applied to the projects. Estimated completion time: 18 years.
Option 3:
Pay-as-you-go and double the fee. This provides $650,000 annually to be applied to the
projects. Estimated completion time: 12.5 years.
Option 4:
Issue debt from the DENR through the SRF program using $300,000 as the annual debt
service (no change in the fee) for 17 year term at 3.00 percent interest. This produces the
ability to loan $4 million that can be applied to projects. Estimated completion time:
Only half of the project could be completed.
Option 5:
Issue debt from the DENR through the SRF program using $475,000 as the annual debt
service (50 percent increase in the fee) for 20 years term at 3 percent interest. This
produces the ability to loan $8 million that can be applied to projects. The loan would be
advanced in $2 million increments over 4 years. Estimated completion time: 8 years.
Option 6:
Issue debt from DENR through the SRF program using $600,000 as the annual debt
service (double the fee) for a term of 17 years at 3 percent interest. The interest is
substantially more with this option. This produces the ability to loan $8 million that can
be applied to projects. Estimated completion time: 8 years.
NOTE: Options 4-6 can be modified to 3.25 percent interest which would add approximately a half
year to the term of the loan.
Option 7:
Combine any of the above options with supplementing revenue from the 75 percent
second penny fund. The exact amount of second penny revenue would have to be further
evaluated relative to other budgetary demands for this revenue stream.
Option 8:
Combine any of the above options with using some cash reserves. This will write-down a
corresponding amount of principle needed and reduce overall debt service. As with
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Option 7, the exact amount of reserves would have to be further evaluated relative to other
budgetary demands for this revenue stream.
Option 9:
Ask the voters to support a property tax freeze “opt-out” to increase property taxes with
revenue dedicated to storm drainage improvements. As with Options 7 and 8, this could
be in combination with any of the options for a “blended” financial solution.
Recommendation:
Staff recommends Option 5 for the following reasons. First, it keeps our debt service
payments for all capital storm drainage projects within the drainage fund while reserving a
certain amount for maintenance. We do not need to complicate our financing schedule
with general fund or second penny revenues. Second, it strikes, in the opinion of staff, a
fair and equitable balance between a rate increase sufficient enough to aggressively finance
the projects yet not overly onerous or burdensome for property owners.
We would recommend a rate increase of fifty percent in the storm drainage assessment fee
for the 2010 budget; and we submit an application to the DENR through the SRF fund for
the improvement loan to provide the funds to pay for the projects.
The 2009 unit financial charge is .00036, and a fifty percent increase will raise the unit
financial charge to .00054. The following examples give a sample of the fee increases for
several different types of properties:
Building 2009 drainage fee drainage fee with 50%
increase
12,000 sq. ft. residential lot $32.40 $48.60
Falcon Plastics $3,918.83 $5,878.25
First Bank & Trust (520 6th Street) $379.68 $569.53
Lowes Home Center $3,357.76 $5,036.65
Perkins Restaurant $239.41 $359.11
Super 8 Motel $632.16 $948.25
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18. Adjourn.
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