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HomeMy WebLinkAbout2009_07_14 CC PKTCity Council Packet July 14, 2009 Brookings City Council Tuesday, July 14, 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. Research and Technology Center Policy Discussion. 2. 6:00 p.m. Meeting Review. 3. Council Invites & Obligations. 4. City Council member introduction of topics for future discussion. * *Any Council member may request discussion of any issue at a future meeting only. Items 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 to approve minutes. C. Action on various volunteer appointments (Visitor Promotions Committee, Brookings Committee for People who have Disabilities and Traffic Safety Committee). D. Action on ex-officio appointments to Utility Board, Hospital Board, and E911 Board. E. Action on Resolution No. 66-09, a Resolution Authorizing an Amendment to Change Order No. 1 (CCO#1), 2008-09STI Rio Grand, Napa Valley and Cumberland Court, Valley View Phase I Project (Rounds Construction Co., Inc.). F. Action on Resolution No. 67-09, awarding bids for 2009-09STI Riogrand, Napa Valley, Sonoma Valley & Cumberland Court Street Project, Phase II, Asphalt surfacing, Grading, Curb & Gutter, and Utilities. G. Action on Resolution 69-09, a resolution in support of grant application to S.D. Game, Fish & Parks for Federal Sport Fish Restoration Funds to assist in facility upgrades that enhance urban fishing opportunities at future nature park (old city landfill on South 22nd Avenue). 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. 1 City Council Packet July 14, 2009 Presentations, Special Requests/Invites & Reports: 5. Promotion of Durable Medical Equipment Drive by Brookings Committee for People who have Disabilities. 6. Open Forum. 7. SDSU Student Senate Report. Ordinances – 1st Readings ** ** 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 8. Ordinance No. 15-09: An Ordinance Prohibiting the Keeping of Game Birds in the City of Brookings, South Dakota. Action: Motion to Approve, Request Public Comment, Roll Call 9. 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). Action: Motion to Approve, Request Public Comment, Roll Call 10. Public hearing and action on Resolution No. 68-09, a Resolution Determining the Necessity of Repairing or Installing Sidewalks in the City of Brookings at the Expense of Abutting Property Owners (2009-01SWR Sidewalk Repair Project). Action: Open & Close Public Hearing, Motion to Approve, Roll Call Other Business: 11. TABLED ITEM: Action to approve an operational agreement between the City of Brookings and the Brookings Ice Skating Association (BISA). Action: Motion to remove from the Table, Roll Call Action on tabled motion to approve, Request Public Comment, Roll Call 12. 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 2 City Council Packet July 14, 2009 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. Research and Technology Center Policy Discussion. The City’s Research and Technology Center has a vacancy. A profile sheet of the R & T Center has been created and contacts have been initiated with GOED, BEDC, Enterprise Institute, and SDSU Graduate School. In light of these initial contacts, staff would also like to revisit the R & T Center Council Policy Statements adopted by the City Council on February 11, 2003 (attached) as a means of discussion for further guidance on marketing the facility to prospective tenants. A brief history of the R & T Center reveals economic assistance was provided by the Economic Development Administration (EDA) in the form of a grant for the construction of the facility. The Financial Assistance Award documentation from EDA references the R & T Center as an agriculture business and research incubator, however, additional amendment letters reference it as an agriculture business and research center. The Council Policy Statements describing the facility are consistent with the amendment documentation. Staff discussed the facility with John Zender, EDA Regional Representative covering South Dakota, Colorado, and Utah. During the discussion, EDA referenced the facility as an incubator based upon the application submitted. However, EDA did not feel the facility is being utilized as a true incubator whereby tenants graduate out of the facility every 3-5 years. EDA’s impression of the facility is more as a commercial/business office building. In addition, staff discussed the changing dynamics of the community since the time of construction of the facility and how the various developments provide complimentary as well as competing services. EDA concluded the conversation by asking the City to determine what is the best use of the facility and then request a change of scope for the facility. Through additional research, it has been determined that EDA placed a lien against the property on which the R & T Center is located. The lien is typical with projects that receive federal assistance. The lien was filed with the Brookings County Register of Deeds on December 1, 1997. The lien exists for 20 years from the date of recording. The purpose of the lien is to ensure the property receiving assistance executes the intended purpose of the facility for the useful life of the project (20 years for building projects). Exceptions are available after 10 years with written approval from EDA. Options to Consider: 1. Change or expand the focus of the R & T Center from an agriculture based research and technology business center to a general business/office building. Future tenants could be public, private, or non- profits. EDA approval is required to change the scope of the project. City 3 City Council Packet July 14, 2009 policy statements for the R&T Center would need to be amended to be consistent with the expanded focus. 2. Offer the facility for sale. City would need to have an appraisal performed on the facility. The City would need to reimburse EDA an amount computed by applying the Federal percentage of participation in the cost of the original project to the proceeds from the sale, or the appraised value, whichever is higher (after deducting actual an reasonable selling and fix-up expenses from the sales proceeds). EDA approval is required to change the scope of the project. EDA may require proceeds to be utilized in another economic development/impact project. 3. Transfer the facility to another public or non-profit organization to operate the facility. The recipient would be bound to the original grant agreement until such time as the lien expires or recipient requests an exception. EDA approval is required to change the scope of the project. 4. Continue to operate the facility as is with a focus on agriculture based research and technology businesses. Restricts the types of tenants that can locate in the facility as well as competing with other facilities receiving City investment. Staff recommendation is to pursue Option 1 and expand the focus of the R&T Center to become a general business/office building. This option allows greater flexibility in marketing the facility to potential tenants. Staff will need to request a change in the scope of the facility from EDA. 4 City Council Packet July 14, 2009 Research & Technology Center - Council Policy Statements Adopted by the City Council February 11, 2003 The Research & Technology Center is operated as an Enterprise Fund of the City with the goal of providing start-up space, enhancing a company’s chance for success and growth, and providing additional funds for economic development. The Research and Technology Center operates to facilitate the start- up of agricultural and research based business and industry and provide a facility that houses related businesses. Businesses and organizations placed in the Center are agricultural research and technology based. The business or organizations placed are new or start-up, moving from the Economic Development Corporation (EDC) Incubator, or a business that needs the assistance of the Center to succeed. In order to recover the City investment and provide operating revenue the rent per square foot will be determined by the City Manager based on cost. Tenants will be graduated into a rent that generates profits for the City for future economic development projects. The lease agreements are short-term with the annual rent increasing from below cost to a profitable rent comparable to the rent that would be paid in the private sector. While it is the intention to assist a company in start-up and initial growth, a company’s continued occupancy of the R&T Center will not be at a subsidized rent, but instead will generate profit for city economic development efforts. There are other incentives to assist a company to relocate to adequate (more) space. The R&T Center is viewed as one component of a “continuum of assistance” available to new business and industry in Brookings. Excess income (profit) from the Center is utilized for economic development purposes. Executive Limitations: The City Manager shall not allow or finance major improvements to the building without Council approval. The City Manager shall not transfer funds from the Research & Technology Center Fund to any other fund without Council approval. The City Manager shall not charge a tenant under the City’s cost unless the business is in its start-up phase or has been a tenant for less than six years with the exception of current tenants (1/2003). Current tenants’ rental rates will be established according to their current rental rate. In other words, current tenants will not be placed on the rent schedule according to tenancy, but placed on the schedule according to the rental rate next above their current rate. Specific Policy (Administrative Policy) Lease agreements for space in the Research & Technology Center (R&T) shall be for one-year terms renewable for an additional two terms. The first lease shall begin at 75% of cost, reaching 85% of cost at the end of the three terms. If a second lease is executed the rent shall reach 100% of cost at the end of the three terms. A third lease shall be at a rent that covers operating costs, recovers investment, and provides a return on the City’s investment. 5 City Council Packet July 14, 2009 Example: (This must be balanced with “market”) Cost $ 8.75 Year One $ 6.56 Year Two $ 7.00 Year Three $ 7.44 Year Four $ 7.88 Year Five $ 8.31 Year Six $ 8.75 Year Seven $ 9.80 Year Eight $ 9.80 Year Nine $ 9.80 Implementation At renewal time, rent will begin at the next highest interval. Description Economic Development is a Key Performance Area for the City and appears in the Mission Statement as “fostering a diverse economic base.” One component of a comprehensive economic development program is incubator space and start-up space for new business and industry. Also, part of a comprehensive economic development program is tax incentives for newly constructed business and industrial facilities. Lastly, the City must have available industrial development land for a reasonable cost and financial incentive programs. In Brookings, the City owns two buildings to assist start-up businesses, Brookings County has adopted a Discretionary Tax Formula covering commercial and industrial building as an incentive to business and industry to build, and the City of Brookings owns ample industrial development property to sell at a price below market. Financial incentives are also available for qualified projects. The EDC Incubator and building is owned by the City of Brookings and will be conveyed to the EDC when the loan from the City is paid. The purpose of the building is to provide for assistance in advertising, budgeting and marketing for new industries and small business; and to offer any physical facility or facilities for sublease to businesses or industries during their product development or start-up period, including shared support services. Incubator tenants receive shared support services such as mail pick-up, photocopying, some receptionist services, parking, some clerical services, use of postage meter, use of shared rooms (conference, break room, bathrooms), and some managerial and technical counseling. Leases are expected to be one or two years for a start-up period only. Lease amounts at the EDC are typically less than 70% of market. Upon completion of start-up, the business is expected to be independent. 6 City Council Packet July 14, 2009 The City of Brookings manages the Research and Technology Center (R&T Center). The R&T Center was built as an Agricultural Business and Research Center. It is for more established and larger businesses than those that might be located in the EDC Building. There are no shared services, but some shared space. The rent is expected to be under-city cost for a new tenant providing assistance during the business’ start-up period. While it is the intention to assist a company in start-up and initial growth, a company’s continued occupancy of the R&T Center will not be at a subsidized rent, but instead will generate profit for city economic development efforts. When a tenant needs to grow out of the R&T Center space the City will work to assist the tenant in finding privately owned space or build its own space. The purpose of the R&T Center is to facilitate the start-up of agricultural and research based business and industry and sustain a private/public partnership for future economic development. The City of Brookings, through BEDC, offers industrial development land at a price below market. A new industrial or commercial building in Brookings is subjected to a five-year graduated tax liability and may qualify for other financial assistance programs. Again, providing an advantage to the new business or an incentive to an existing business to build or expand. A number of other financial incentives are available for qualified projects. 7 City Council Packet July 14, 2009 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. 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 to approve minutes. C. Action on various volunteer appointments (Visitor Promotions Committee, Brookings Committee for People who have Disabilities and Traffic Safety Committee). D. Action on ex-officio appointments to Utility Board, Hospital Board, and E911 Board. E. Action on Resolution No. 66-09, a Resolution Authorizing an Amendment to Change Order No. 1 (CCO#1), 2008-09STI Rio Grand, Napa Valley and Cumberland Court, Valley View Phase I Project (Rounds Construction Co., Inc.). F. Action on Resolution No. 67-09, awarding bids for 2009-09STI Riogrand, Napa Valley, Sonoma Valley & Cumberland Court Street Project, Phase II, Asphalt surfacing, Grading, Curb & Gutter, and Utilities. G. Action on Resolution 69-09, a resolution in support of grant application to S.D. Game, Fish & Parks for Federal Sport Fish Restoration Funds to assist in facility upgrades that enhance urban fishing opportunities at future nature park (old city landfill on South 22nd Avenue). Motion to approve, request public comment, roll call Presentations, Special Requests/Invites & Reports: 5. Promotion of Durable Medical Equipment Drive by Brookings Committee for People who have Disabilities. 6. Open Forum. 7. SDSU Student Senate Report. Ordinances – 1st Readings ** ** 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 8. Ordinance No. 15-09: An Ordinance Prohibiting the Keeping of Game Birds in the City of Brookings, South Dakota. Action: Motion to Approve, Request Public Comment, Roll Call 9. 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). Action: Motion to Approve, Request Public Comment, Roll Call 10. Public hearing and action on Resolution No. 68-09, a Resolution Determining the Necessity of Repairing or Installing Sidewalks in the City of Brookings at the Expense of Abutting Property Owners (2009- 01SWR Sidewalk Repair Project). Action: Open & Close Public Hearing, Motion to Approve, Roll Call Other Business: 11. TABLED ITEM: Action to approve an operational agreement between the City of Brookings and the Brookings Ice Skating Association (BISA). Action: Motion to remove from the Table, Roll Call Action on tabled motion to approve, Request Public Comment, Roll Call 12. Adjourn. 8 City Council Packet July 14, 2009 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. Council Invites & Obligations July 23rd City Council / Hospital Board 5 pm City Hall Chambers July 28th City Council Meeting 5 & 6 pm City Hall Chambers August 15 United Retirement Center 50th Anniversary Open House 2 pm URC Oct 6-10 SDML Annual Conference Watertown Nov 10-14 NLC Conference   San Antonio 9 City Council Packet July 14, 2009 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 4. City Council member introduction of topics for future discussion*. *Any Council member may request discussion of any issue at a future meeting only. Items 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. 10 City Council Packet July 14, 2009 Brookings City Council Tuesday, July 14, 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 to approve minutes. C. Action on various volunteer appointments (Visitor Promotions Committee, Brookings Committee for People who have Disabilities and Traffic Safety Committee). D. Action on ex-officio appointments to Utility Board, Hospital Board, and E911 Board. E. Action on Resolution No. 66-09, a Resolution Authorizing an Amendment to Change Order No. 1 (CCO#1), 2008-09STI Rio Grand, Napa Valley and Cumberland Court, Valley View Phase I Project (Rounds Construction Co., Inc.). F. Action on Resolution No. 67-09, awarding bids for 2009-09STI Riogrand, Napa Valley, Sonoma Valley & Cumberland Court Street Project, Phase II, Asphalt surfacing, Grading, Curb & Gutter, and Utilities. G. Action on Resolution 69-09, a resolution in support of grant application to S.D. Game, Fish & Parks for Federal Sport Fish Restoration Funds to assist in facility upgrades that enhance urban fishing opportunities at future nature park (old city landfill on South 22nd Avenue). Motion to approve, request public comment, roll call Presentations, Special Requests/Invites & Reports: 5. Promotion of Durable Medical Equipment Drive by Brookings Committee for People who have Disabilities. 6. Open Forum. 7. SDSU Student Senate Report. Ordinances – 1st Readings ** ** 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 8. Ordinance No. 15-09: An Ordinance Prohibiting the Keeping of Game Birds in the City of Brookings, South Dakota. 11 City Council Packet July 14, 2009 Action: Motion to Approve, Request Public Comment, Roll Call 9. 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). Action: Motion to Approve, Request Public Comment, Roll Call 10. Public hearing and action on Resolution No. 68-09, a Resolution Determining the Necessity of Repairing or Installing Sidewalks in the City of Brookings at the Expense of Abutting Property Owners (2009-01SWR Sidewalk Repair Project). Action: Open & Close Public Hearing, Motion to Approve, Roll Call Other Business: 11. TABLED ITEM: Action to approve an operational agreement between the City of Brookings and the Brookings Ice Skating Association (BISA). Action: Motion to remove from the Table, Roll Call Action on tabled motion to approve, Request Public Comment, Roll Call 12. 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. 12 City Council Packet July 14, 2009 CONSENT AGENDA #4 4. Action to approve the following Consent Agenda Items * A. Action to approve the agenda. B. Action to approve minutes. C. Action on various volunteer appointments (Visitor Promotions Committee, Brookings Committee for People who have Disabilities and Traffic Safety Committee). D. Action on ex-officio appointments to Utility Board, Hospital Board, and E911 Board. E. Action on Resolution No. 66-09, a Resolution Authorizing an Amendment to Change Order No. 1 (CCO#1), 2008-09STI Rio Grand, Napa Valley and Cumberland Court, Valley View Phase I Project (Rounds Construction Co., Inc.). F. Action on Resolution No. 67-09, awarding bids for 2009-09STI Riogrand, Napa Valley, Sonoma Valley & Cumberland Court Street Project, Phase II, Asphalt surfacing, Grading, Curb & Gutter, and Utilities. G. Action on Resolution 69-09, a resolution in support of grant application to S.D. Game, Fish & Parks for Federal Sport Fish Restoration Funds to assist in facility upgrades that enhance urban fishing opportunities at future nature park (old city landfill on South 22nd Avenue). * 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 13 City Council Packet July 14, 2009 #4 - CONSENT AGENDA: B. Action to approve the May 26 and June 23, 2009 City Council Minutes. The draft minutes from the May 26th and June 23rd City Council meetings are enclosed for City Council review and approval. 14 City Council Packet July 14, 2009 Brookings City Council May 26, 2009 (unapproved) The Brookings City Council held a meeting on Tuesday, May 26, 2009 at 5:00 p.m., at City Hall with the following members present: Mayor Tim Reed, Council Members Julie Whaley, John Kubal, Mike McClemans, Mike Bartley, and Tom Bezdichek. City Manager Jeff Weldon, City Attorney Steve Britzman, and City Clerk Shari Thornes were also present. Demonstration on Granicus Software for City Council, Staff and Public. Rob Herrmann, Sales Executive, provided a product demonstration and responded to questions. There was consensus from the Council to include in the 2010 budget proposal for Council consideration. Bezdichek suggested asking the County Commission about their interest in utilizing the City’s televised system. Weldon said this software is another step towards more transparency and open government and in the future hopes additional organizations would be accessible and available via television (i.e. Utility Board, Hospital Board). Presentation on Deer Creek Station by Curt Pearson, Project Representative with Basin Electric Power Cooperative. Carrie Law, Director of C&GR for Sioux Valley Energy introduced Sioux Valley Energy. Sioux Valley Energy’s Mission is, “We exist to be our customers’ choice for energy & diversified services.” They have three service centers in Pipestone, Brandon, and headquarters in Colman. Their keys to success are customer focus, commitment to quality, responsible growth, community service, competitive products & services and profitable diversification. Sioux Valley Energy is the largest electric distribution cooperative in South Dakota, serving over 20,000 customer accounts. They have over 100 employees between the three service centers. Sioux Valley Energy serves 5 counties in South Dakota (Brookings, Lake, Moody, Minnehaha and Eastern Kingsbury) and 2 counties in Minnesota (Pipestone & Rock). The cooperative power supply includes the following: the power is supplied by Basin Electric; the transmission is supplied by East River and L&O Power, the distribution is provided by Sioux Valley Energy and brought to the consumers/owners. Curt Pearson, Project Coordination Representative for Basin Electric Power Cooperative presented on Basin Electric Power Cooperative. The Basin Electric Power Cooperative serves 125 member electric cooperatives with service territory from the Canadian border to the Mexican border, approximately 2.6 million consumers. Basin Electric is a manufacturer of electricity and sells electricity through their member electric cooperatives; they do not sell to a single homeowner, rancher or farmer. Basin Electric has the distinction of serving as a supplemental power supplier to all of South Dakota’s electric cooperatives. South Dakota is the only state out of the 9 states served that has this distinction. The world’s net electricity consumption is projected to double by 2030. Basin Electric’s sources of fuel include coal, natural gas, oil, wind and other sources. A peaking generation station is located in Groton, SD. Basin Electric also has an agreement with Madison, SD that when our electric power loads are high and theirs are not, we can use their diesel generators. Base load facilities typically are coal fired power plants designed to operate 24 hours a day, 365 days a year which is very efficient, but do not peak up and down. South Dakota planned projects include Deer Creek Station, a 300 megawatt combined cycle gas-fired generation facility near White, SD and Prairie Winds SD-1, a 151.5 megawatt wind farm consisting of 101 turbines in central South Dakota. Gavin McCollam, Deer Creek Station Project Coordinator, provided specifics of the proposed station. Deer Creek Station will be a natural gas combined cycle power plant that will begin 15 City Council Packet July 14, 2009 construction in mid-2010. The estimated peak construction will employ 350 workers at the power plant. Commercial operation is expected to begin mid-2012 with 25-30 operational workers. Deer Creek Station’s budget is approximately $405 million. Project benefits include 500 construction jobs over the 18 month construction period and 30 permanent operational jobs. Completed project milestones include land acquisition, major equipment procurement, preliminary engineering, progress of the environmental impact statement, filing of the Notice of Intent on December 22, 2008 with the SD PUC, and the public scoping meeting on February 24, 2009. Major plant components include the combustion turbine, heat recovery steam generator, steam turbine and air cooled condenser. The Deer Creek Station will be located near the intersection of 207th Street and 484th Avenue. Anyone can visit the Western Area Power Administration’s (WAPA) website at http://www.wapa.gov/transmission/deercreek.htm to view progress of the proposed Deer Creek Station Project. Curt Pearson requested the City Council provide letter of support of the Deer Creek Station Project that would be submitted to the SD PUC with the letter of application. Some concerns of the project include transportation of heavy equipment to and from the site, many people employed for temporary period of time which includes temporary housing and updating roads and bridges to handle the equipment. A noise study will be conducted and be taken into account with the design of the station. Transmission lines will be minimal (one mile or less) due to the proximity of the station to the Western Area Power Administration substation which was a key component in determining the location of the station. The impact reports that have been conducted will be made available to the public. ACTION: A motion was made by Bartley, seconded by Bezdichek to issue a letter of support for the Deer Creek Station. A friendly amendment was made by Reed to add this to the June 23 council meeting to finalize and approve the letter of support. All present voted yes; motion carried. Storm Water Finance Plan and Capital Debt Service Analysis. Weldon said having adopted the project priority listing for the 12 projects, we need to turn our attention to exploring methods of financing these projects. 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. 16 City Council Packet July 14, 2009 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 (.00018 in 2006 and .00036 in 2007). 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 2009 unit financial charge is .00036, and a 50 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 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 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 Weldon gave a summary of the nine options; the first three options are variations of a pay-as-you-go without incurring any further debt. The first one, as example, would use the revenue from the storm drainage utility to pay for that and leave our current rate the same. If no other projects are dedicated, it would take 27 years to complete the process, which is unacceptable. Options 2 & 3 are variations of the same pay-as-you-go and don’t incur debt, but do provide for a fee increase at various gradations. Options 4-5-6 are variations on issuing debt. The debt proposed to take on is provided through the Dept. of Environment & Natural Resources. This is the same program used for some infrastructure at the Innovation Campus and would be entirely dedicated to storm drainage and utility improvements. The full $8 million could be borrowed drawn down in certain gradations as wanted. Rita Thompson proposes this as an opportunity to borrow $2 million at a time, or what amount is needed in order to work through the program. The ability to take on projects and finance them is going to be limited to the ability to manage the debt and debt service. Options 7-8-9 are variations of blending our revenue stream with the storm drainage with the possibility of using 17 City Council Packet July 14, 2009 property taxes and second penny revenues. The possibility of using property tax would be either an opt out or asking voters for a general obligation referendum. 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 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. Rita Thompson, Finance Manager, clarified for the council that available cash in 2012 will be $32,000. This is extremely low, but it will start to increase after that point. The city can only do 5% 18 City Council Packet July 14, 2009 of assessed value, which is set by statute. If all of the projects were done, the city would be maxed out by the year 2014. Weldon stated not everything can be done and need to pick the best thing and where to place the investment dollars. In 2006, the city’s credit rating was upgraded by Moody’s Investment Services from a BAA Rating to an A3 Rating. With every issuance of debt, we need to make sure we don’t jeopardize that credit rating and be downgraded. If we take on more than we can handle, we’ll feel that right away with a downgraded credit rating. Being downgraded would make any interest rates on future debt much higher and would severely limit the amount we could borrow for any future projects. We need to proceed judiciously on where we want to invest our dollars. Thompson clarified what the hospital does would take away from what the city can issue. The city’s margin is around $23 million. Depending on what the hospital does, it could limit the city on TIFs and any other improvements. Weldon stated the hospital comes out of the same debt, the top 5%. BMU is under different statute limits. They are under 10%, and are separate from our 5%. Weldon recommended Option 5. 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. If council approves, Weldon said the first step would be to contact Ted Haeder at First District and submit an application to the Dept. of Environmental & Natural Resources through the State Revolving Fund for the improvement loan to provide the funds to pay for the projects and build a 50 percent storm drainage assessment fee increase into the 2010 budget. There was Council direction to bring this item back for action on June 23rd. 6:00 P.M. REGULAR MEETING. Consent Agenda. A motion was made by Whaley, seconded by McClemans , to approve the consent agenda: A. Action to approve the agenda. B. Action to approve the May 12, 2009 City Council Minutes. C. Action to appoint Mac Harris to the Library Board, filling the unexpired term of John Kubal (May 26, 2009 to January 1, 2010). D. Action on Resolution No. 51-09, designating the Park & Recreation Center as a Convention Facility – August 29, 2009. Resolution No. 51-09 Resolution Designating the Park and Recreation Center as a Convention Hall WHEREAS, the Brookings City Ordinance Section 5-21 “Temporary on-sale license for use at convention Hall”, states “Any public convention center or hall designated by resolution of the City is hereby designated as a convention hall of the City for purposes of temporary on-sale alcoholic beverage licensing. The use of each convention hall by any person holding a temporary on-sale alcoholic beverage license shall be governed by the rules or regulations pertaining to each respective facility.” 19 City Council Packet July 14, 2009 WHEREAS, SDCL 35-4-14.2 further states there may be issued in any municipality one on-sale license to be operated at a designated convention hall; and WHEREAS, the Park and Recreation Center located at 221 Main Avenue is utilized for many different functions and events; and NOW, THEREFORE BE IT RESOLVED that the Park and Recreation Center be designated as a Convention Hall on August 28 and 29, 2009. E. Action on temporary liquor license for Firemen’s Dance – August 29, 2009. F. Action to schedule special Council meeting with the Brookings Health Systems Board on Thursday, July 23, at 5:00 p.m. G. Action to approve a Memorandum of Understanding between the City of Brookings and South Dakota State University (McCrory Gardens) for bike trail right-of-way. Memorandum of Understanding Between City of Brookings and South Dakota State University Whereas, the City of Brookings desires the construction of the bike path project Number POENH(147) PCN 00C2; and Whereas, this memorandum of understanding is intended to allow the bike/pedestrian path on South Dakota State University property as shown on the attached map exhibit with the following conditions: 1. South Dakota State University shall not charge the City of Brookings any fees for the bike/pedestrian path being located on its property 2. The City shall be solely responsible for the care and maintenance of the bike/pedestrian path 3. Should South Dakota State University require the use of its property the City shall understand that its right to the use of the property and any responsibility for the improvements made thereto shall be terminated. Now, therefore, it is the joint and mutual understanding of the City of Brookings and South Dakota State University for the above conditions. H. Action on Resolution No. 53-09, a resolution For Bike Path/Pedestrian Trail Easement with Dakota Minnesota & Eastern Railroad Corporation. Resolution No. 53–09 Resolution Authorizing the Mayor to Sign an Easement with DM&E Bike Path Project POENH(147) PCN 00C2 WHEREAS, the Brookings City Council desires the construction and improvement of the bike path project Number POENH(147) PCN 00C2; AND WHEREAS, The City of Brookings desires to enter into an agreement for an easement with Dakota, Minnesota & Eastern Railroad Corporation for the bike path located on DM&E property, in the City of Brookings, County of Brookings, State of South Dakota, NOW, THEREFORE, BE RESOLVED, that the Mayor is hereby authorized to sign all documents related to the easement. 20 City Council Packet July 14, 2009 I. Action on Resolution No. 52-09, a Resolution giving approval to the Acquisition, Construction and Financing of the City SDSU Innovation Campus Sanitary Sewer and Storm Project, giving approval to the Issuance of a Borrower Bond to finance a portion of the costs of such project and authorizing the sale of said Bond. Resolution No. 52-09 A Resolution Giving Approval to the Acquisition, Construction and Financing of the City SDSU Innovation Campus Sanitary Sewer and Storm Project, Giving Approval to the Issuance of a Borrower Bond to Finance a Portion of the Costs of Such Project and Authorizing the Sale of Said Bond. NOW, THEREFORE, BE IT RESOLVED AND ORDAINED by the City Council of the City of Brookings as follows: 1. Recitals. The City of Brookings (the "City") desires to make a capital improvement to and finance its SDSU Innovation Campus Sanitary Sewer and Storm Sewer Project, as described in Exhibit A hereto (the "Project"), details on the project are on file with the City Manager and open to public inspection. 2. Authority. The City is authorized to issue a Borrower Bond to finance the capital improvements pursuant to Section 10-52-2.10 of the South Dakota Codified Laws. Pursuant to Chapter 10-52 of the South Dakota Codified Laws (the "Act") the City proposes to issue a municipal non ad valorem borrower bond (as herein authorized, the Bond, or the "Borrower Bond") to finance the Project. The City is authorized by the Sales Tax Act to levy a “non ad valorem tax” (as defined by the Act) on the sale, use, storage, and consumption of items taxed under Chapters 10-45 and 10-46 of the South Dakota Laws, subject to certain, as amended, exceptions. 3. Sales Tax Ordinance. The City Council has adopted Section 78-32 of the Brookings Code of Ordinances which constitutes the City's effective Sales Tax Ordinance (the "Sales Tax Ordinance"). The Sales Tax Ordinance has been duly adopted pursuant to the Act and effectively and validly imposes the sales and use tax Act within the City, such tax being hereinafter referred to as the "Sales Tax". 4. Cost of the Project. The cost of the Project is approximately $3,884,000. The City proposes to finance approximately $1,190,000 of the Project through the issuance of the Borrower Bond (the “Bond”). The Bond shall be payable out of collections of the one percent 1 % after the first one percent of the Sales Tax as is necessary to pay principal, administrative expense surcharge and interest on the Bond (the “Pledged Tax”). 5. Findings. The City Council hereby finds and determines as follows: 5.1.1. The Project constitutes capital improvements which qualify for the financing under and pursuant to SDCL Chapter 10-52, and the Sales Tax Ordinance; and 5.1.2. The Borrower Bond authorized hereby is being issued to pay costs of the 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. 5.1.3. 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 its Borrower Bond, 21 City Council Packet July 14, 2009 consistent with the terms approved hereby for an aggregate sum not in excess of the amount of $1,190,000. 6. Sale of Bond. 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 Bond in order to finance a portion of the cost of the Project. The Mayor and City Manager are authorized to take such action as is necessary to close the loan with the South Dakota Conservancy District (the “District”) upon such terms and conditions as the District may require. The Mayor and City Manager are authorized to execute the Borrower Bond and Loan Agreement approved by the District. 7. No Election Required. The Bond may be issued by the City without an election pursuant to SDCL §10-52-2.10. 8. Approval of the Loan, the Form of Borrower Bond and Loan Agreement. The City does hereby approve the Loan from the District, the form of the Borrower Bond and Loan Agreement. The Form of the Borrower Bond and Loan Agreement which are subject to modification are on file with the City Manager and open to public inspection. The Mayor and City Manager are authorized to execute a Borrower Bond and Loan Agreement in a form approved by the District. 9. Terms of Bond. 9.1. Date, Amount, Maturities and Interest Rates. The City Council hereby authorizes the issuance of the Bond. The Bond shall be dated in 2009. The principal amount of the Bond shall not exceed any statutory or constitutional debt limitation. The Bond shall have maturities and interest rates as negotiated by the Mayor and City Manager. 9.2. Registration. The City hereby appoints The First National Bank in Sioux Falls as registrar and transfer agent (the "Registrar") for the Bond. The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: 9.2.1. Register. The Registrar shall keep at its office a register (the "Register") in which the Registrar shall provide for the registration of ownership of the Bond and the registration of transfers and exchanges of the Bond entitled to be registered, transferred or exchanged. 9.2.2. Transfer of Bond. When the Bond is surrendered for transfer it shall be duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer in form satisfactory to the Registrar; duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner thereof. If the Bond is properly surrendered as provided above, the Registrar shall authenticate and deliver, in the name of the designated transferee, a new Bond of a like aggregate principal amount and maturity. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. 9.2.3. Exchange of Bond. Whenever the Bond is surrendered by the registered owner for exchange the Registrar shall authenticate and deliver the new 22 City Council Packet July 14, 2009 Bond of a like aggregate principal amount and maturity, as required by the registered owner or the owner's attorney in writing. 9.2.4. Cancellation. The Bond surrendered upon any transfer or exchange shall be promptly canceled by the Registrar and thereafter disposed of as directed by the City. 9.2.5. Improper or Unauthorized Transfer. When the Bond is presented the Registrar may refuse to transfer the same until satisfied that the endorsement on such Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar shall incur no liability for the refusal, in good faith, to make transfer which, in their judgment, are deemed improper or unauthorized. 9.2.6. Persons Deemed Owners. The City, Paying Agent and Registrar may treat the person whose name any Bond is at any time registered in the Register as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. 9.2.7. Taxes, Fees and Charges. For every transfer or exchange of Bond, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. 9.2.8. Mutilated, Lost, Stolen or Destroyed Bond. In case the Bond shall become mutilated or be destroyed, stolen or lost, the Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory that such Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to the Registrar, in which the City and the Registrar shall be named as obligees. The Bond so surrendered to the Registrar shall be canceled by him and evidence of such cancellation shall be given to the City. If the mutilated, destroyed, stolen or lost certificate has already matured or has been called for redemption in accordance with its terms it shall not be necessary to issue a new Bond prior to payment. 9.3. Preparation and Delivery. The Bond shall be prepared under the direction of the City Manager and shall be executed on behalf of the City by the facsimile or manual signatures of the Mayor and the City Manager and countersigned by the facsimile or manual signature of an attorney actually residing in the State of South Dakota and duly licensed to practice therein. 23 City Council Packet July 14, 2009 9.4. Security Provisions; Funds and Accounts and Other Covenants and Determinations. 9.4.1. Drinking Water Borrower Bond Fund 2009. The Finance Officer is hereby authorized and directed to establish and shall maintain the Drinking Water Borrower Bond Fund 2009 as a separate and special fund in the financial records of the City until the Bond issued and made payable therefrom, and interest due thereon, have been duly paid or discharged. All collections of the Pledged Tax, as hereinafter defined, shall be credited, as received, to the Drinking Water Borrower Bond Fund 2009. Within the Drinking Water Borrower Bond Fund 2009 are various separate accounts to be maintained by the City. 9.4.2. Pledged Tax. Pursuant to the Act and the Sales Tax Ordinance, the City has levied the Sales Tax on the sale, use, storage and consumption of items taxes under Section 10-45 and 10-46 of South Dakota Codified Laws, subject to certain exceptions. The proceeds of the Pledged Tax are irrevocably pledged and appropriated and amounts sufficient to pay the principal of and interest on the Outstanding Bond as the same become due shall be deposited to the Drinking Water Borrower Bond Fund 2009. For purposes of this Resolution, "Outstanding Bond" shall mean the Bond and any parity lien Bond hereafter issued pursuant to this Resolution. The Pledged Tax and the Drinking Water Borrower Bond Fund 2009 shall be used and applied only in the manner and order hereinafter set forth. 9.4.3. Construction Account. There is hereby created and established as an account of the Drinking Water Borrower Bond Fund 2009, a "Construction Account". There shall be credited to the Construction Account the proceeds from the sale of the Bond remaining after payment of the expenses of issuing the Bond. All moneys credited to the Construction Account shall be applied solely to the payment of the costs of the Project. For the purposes of this Resolution, "costs of the Project" shall include costs of acquiring, construction, and installing the Project including cost of 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. 9.4.4. Principal and Interest Account. There is hereby created and established as an account of the Drinking Water Borrower Bond Fund 2009, a "Principal and Interest Account." Immediately upon delivery of the Bond, there shall be credited to the Principal and Interest Account the amount of any accrued interest received from the Purchaser. 24 City Council Packet July 14, 2009 Commencing on the first day of the month following the month in which the Bond is delivered to the Purchaser, there shall be withdrawn from the Drinking Water Borrower Bond Fund 2009, at least monthly and credited to the Principal and Interest Account an amount which will equal at least one-third (1/3) of the principal, interest and administrative surcharge becoming due on the next succeeding interest payment date with respect to the Outstanding Bond issued. In all events there shall be credited to the Principal and Interest Account amounts sufficient to pay the principal of and interest on the Outstanding Bond as the same become due. 9.4.5. Subordinate Lien Bond. After making the above-required payments, any remaining Pledged Tax shall be used for the payment of the principal of and interest on any additional sales tax revenue bonds having a lien which is on a parity to or subordinate to the lien of the Outstanding Bond, and for a reserve fund as additional security for the payment of such subordinate lien Bond. 9.4.6. Inter-fund Transfer. So long as the revenues from the Pledged Tax are sufficient to make all required deposits to the Principal and Interest Account, the City may deposit the excess revenues from the Pledged Tax to the general fund or any other City fund as determined by the City and as permitted by law. 9.4.7. Deposit and Investment of Funds. The Finance Officer shall cause all moneys pertaining to the Fund to be deposited as received with one or more banks which are duly qualified public depositories under the provisions of Chapter 4-6A, South Dakota Codified Laws, in a deposit account or accounts, which shall be maintained separate and apart from all other accounts of the City, so long as the Bond and the interest thereon shall remain unpaid. Any of such moneys not necessary for immediate use may be deposited with such depository banks in savings or time deposits. No moneys shall at any time be withdrawn from such deposit accounts except for the purposes of the Fund as authorized in this Resolution; except that moneys from time to time on hand in the Fund may at any time, in the discretion of this Council , be invested in securities permitted by the provisions of Section 4-5-6, South Dakota Codified Laws, maturing and bearing interest at the times and in the amounts estimated to be required to provide cash when needed for the purposes of the respective accounts. Income received from the deposit or investment of moneys shall be credited to the account from whose moneys the deposit was made or the investment was purchased, and handled and accounted for in the same manner as other moneys in that account. 9.5. Additional Debt. The Borrower shall not incur any Debt which has a lien on or right to payment from the Pledged Tax which is superior to that of this Loan Agreement and the Borrower Bond. The Borrower may incur Debt which is on a parity with this Loan Agreement and the Borrower Bond under the following conditions: 25 City Council Packet July 14, 2009 9.5.1. Debt secured by Pledged Tax may be incurred to pay or prepay or defease other Debt secured by Pledged Tax if the maximum annual Debt Service of the new Debt is no greater than that of the Debt being paid, prepaid or defeased. 9.5.2. Debt secured by Pledged Tax may be incurred for any purpose so long as prior to the issuance of such Debt the Borrower has delivered to the Trustee and the District a certificate prepared by a Consultant showing that the Pledged Tax collected for any 12 consecutive months out of the 15 consecutive months immediately preceding the issuance of the proposed Debt was at least equal to 110% of maximum annual Debt Service for all Debt secured by Pledged Tax which will be outstanding immediately after the issuance of the proposed Debt. 9.5.3. The Borrower may not, without the written consent of the District, incur any (i) variable rate Debt secured by Pledged Tax or (ii) Debt secured by Pledged Tax the payments of principal of and interest on which in any fiscal year are 150% or more of the payments of principal and interest for any other fiscal year. 9.5.4. Nothing herein shall prevent the City from issuing Bonds payable from the Pledged Tax and the Drinking Water Borrower Bond Fund 2009 or having a lien thereon which is junior and subordinate to the lien of the Bonds authorized herein. 9.6. 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: 9.6.1. It will not amend or repeal the Sales Tax Ordinance relating to the Sales Tax by decreasing the Sales Tax rate or the allocation of revenues thereof to the Drinking Water Borrower Bond Fund 2009, or in any way that would adversely affect the amount of Sales Tax revenues which would otherwise be collected and deposited to the Drinking Water Borrower Bond Fund 2009. However, nothing shall prevent the City from amending the Sales Tax Ordinance in order to make certain changes in the administration, collection or enforcement of the Sales Tax, provided that such changes would not materially adversely affect the owners of the Bonds. 9.6.2. It will administer, enforce, and collect, or cause to be administered, enforced or collected, the Sales Tax authorized by the Sales Tax Ordinance and shall take such necessary action to collect delinquent payments in accordance with law. 9.6.3. It will keep or cause to be kept such books and records showing the proceeds of the Sales Tax, 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 times to inspect the records and accounts relating to the collection and receipts of such Sales Tax. 26 City Council Packet July 14, 2009 9.6.4. In the event the Sales Tax of the City is replaced and superseded by the state collected-locally shared sales 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 sales 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. 9.7. Defeasance. When the Bond issued has been discharged as provided in this section, all pledges, covenants, and other rights granted by this resolution to the registered owners of the Bond shall cease. The City may discharge its obligations with respect to any Bond which is 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 the 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. 9.8. Tax Matters; Certification of Proceedings and Miscellaneous. 9.8.1. Tax Matters. The City covenants and agrees with the registered owners from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bond to become subject to taxation under the Internal Revenue Code of 1986, as amended (the "Code"), and applicable Treasury Regulations (the "Regulations"), and covenants to take any and all actions within its powers to ensure that the interest on the Bond will not become subject to taxation under the Code and the Regulations. The City will cause to be filed with the Secretary of Treasury an information reporting statement in the form and at the time prescribed by the Code. 9.8.2. The Mayor and City Manager, being the officers of the City charged with the responsibility for issuing the Bond pursuant to this resolution, are authorized and directed to execute and deliver to the purchaser thereof a 27 City Council Packet July 14, 2009 certificate in accordance with the provisions of Section 148 of the Code and Sections 1.103-13, 1.103-14 and 1.103-15 of the Regulations, stating the facts estimates and circumstances in existence on the date of issue and delivery of the Bond which make it reasonable to expect that the proceeds of the Bond will not be used in a manner that would cause the Bond to be arbitrage bonds within the meaning of the Code and Regulations. 9.8.3. The City recognizes its obligation to comply with the provisions of Section 148(f) of the Code relating to the rebate of certain amounts to the United States, and covenants that it will take or refrain from any actions, the result of which would be to cause the interest on the Bond to become subject to federal income taxation as a result of the failure to comply with Section 148(f) of the Code and applicable Treasury Regulations. The City will take all actions necessary to comply with the rebate requirement, including making or causing to be made the computations of rebate or penalty amounts. The City will make any payments of rebate or penalty amounts, and will pay the costs of computing any such rebate or penalty amounts. 9.8.4. It is hereby determined that the Bond is not and will not be "private activity bonds" as defined in Section 141(a) of the Code, and in support of such conclusion the City Council covenants, represents, and certifies as follows: 9.8.4.1. none of the proceeds of the Bond will be used, directly or indirectly, or will be used to replace funds which were used, in any trade or business carried on by any person other than a state or local governmental unit; 9.8.4.2. no direct or indirect payments of the principal of or interest on the Bond will be derived from payments (whether or not to the City), in respect of property, or borrowed money, used or to be used for a private business use by any person other than a state or local governmental unit; 9.8.4.3. none of the proceeds of the Bond are to be used directly or indirectly, to make or finance loans to persons other than a state or local governmental unit; and 9.8.4.4. no user of any facilities or improvements financed with the proceeds of the Bond will use the same on any basis other than the same basis as the general public; and no person other than the City will be a user of said, facilities as a result of (i) ownership; (ii) actual or beneficial use pursuant to a lease or a management or incentive payment contract; or (iii) any other arrangement. 9.8.5. The City reasonably anticipates that the amount of tax exempt obligations which will be issued by the City and all entities subordinate to, or treated as one issuer with, the City during calendar year 2009 will not exceed $30,000,000. The Bond is hereby designated as "qualified tax- 28 City Council Packet July 14, 2009 exempt obligations" within the meaning of Section 265(b)(3) of the Code. The City does not reasonably expect that it or any subordinate entity will issue, and will not request any other governmental entity to issue on its behalf, in calendar year 2009, more than $30,000,000 of obligations which it or any such entity could designate as "qualified tax- exempt obligations". 9.8.6. If the City agrees to comply with all provisions of the Code, which if not complied with by the City, would cause the interest on the Bond not to be tax-exempt in the hands of a holder who is a natural person, including, if determined to be necessary upon advice of bond counsel, the payment of any rebate amount necessity to preserve such tax exemption pursuant to Section 148 of the Code. The City further agrees: (1) through its officers, to make such further specific covenants, representations as shall be truthful, and assurances as may be necessary or advisable; (2) to consult with bond counsel and to comply with such advice as may be given; (3) to file such forms, statements, and supporting documents as may be required and to do so in a timely manner; and (4) if deemed necessary or advisable by its officers, to employ and pay fiscal agents, financial advisors, attorneys, and other persons to assist the City in such compliance. 10. Principal Forgiveness. The City shall request to have up to 10% of the total principal amount of the Loan forgiven by the District. The City officials are directed to cause the compliance with the following deadlines: 10.1. Submit complete plans and specifications for the Project to the Department on or before October 1, 2009; 10.2. Advertise for bids and open bids for the project in accordance with SDCL Chapter 5-18 on or before December 10, 2009; 10.3. Submit the bid of the apparent lowest bidder to the Department for review on or before December 21, 2009; and 10.4. Award construction contracts on or before January 15, 2010. 11. Certification of Proceedings. The officers of the City are authorized and directed to prepare and furnish to the purchaser of the Bond certified copies of all proceedings and records of the City relating to the authorization and issuance of the Bond and such other affidavits and certificates as may reasonably be required to show the facts relating to the legality and marketability of the Bond 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. On the motion, all present voted yes; motion carried. 29 City Council Packet July 14, 2009 1st Reading - Ordinance No. 13-09. A first reading was held on Ordinance No. 13-09, an Ordinance for a Conditional Use to establish an “Outdoor Sales” use on Lots 1 and 2, Block 3, Moriarty Second Addition. Public Hearing: June 23, 2009 1st Reading – Ordinance No. 14-09. A first reading was held on Ordinance No. 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-1 District. Public Hearing: June 23, 2009 House Moving. A public hearing was held on a house moving request from Roger Julian to move a one-story house from Sioux Falls to a lot in Meyer’s Subdivision, AKA “University Estates’. No public comments were made. A motion was made by Bartley, seconded by McClemans, to approve. All present voted yes; motion carried. Safe Routes to School. A public hearing was held on Phase One (1) of the Safe Routes to School Project. 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 encouraging a healthy and active lifestyle from an early age; and 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, and 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, and 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 nine months to start the project and two years to complete it from the date of the notice to proceed, which was February 18, 2009. Public Input: The City began the public input process regarding the Phase I route by hosting a public hearing at the May 14, 2009 Traffic Safety Committee meeting. Approximately a dozen citizens attended the meeting to offer input on the bike routes. A notice along with the proposed route and striping options was mailed to the property owners abutting the proposed route. 30 City Council Packet July 14, 2009 There are essentially three options for the bike routes: 1) Sharrow: stencil and signage, 2) Shared parking/bike lane: stencil, signage, striped bike lane (keep parking), and 3) Exclusive bike lane: stencil, signage, striped bike lane (remove parking). Public Hearing. Gary Foos, 1032 15th Street South, objected to leaving parking in place and crowding the path into the center of the street. He was willing to support parking on the south side of 15th Avenue between Medary and the school. He suggested another opportunity may be on the north side of 15th Avenue. There’s no development and he suggested contacting land owners about running a bike path the entire way and also have a sidewalk. Dan Tupa, 1302 17th Avenue South, asked if sidewalks could be widened for a wider bike path on the east side of 17th rather than remove parking. Staff clarified that 4 foot wide sidewalks are required in the development projects. Dave Karolczak, 930 17th Avenue South, would prefer not to lose parking on the east side and is in favor of an eight foot wide sidewalk for that side of the street where there’s only two driveways. Jason Owens, 1106 3rd Street, has spoken with five regular adult bikers and all have experience with the danger of not being seen on a sidewalk. With the right education and signage, there is room for bikers on the street as well. He is happy to see proposals are dealing with areas without many driveways or crossings. As a biker, he feels safe on streets and trails, but not on sidewalks. Cars turning tend not to see bikers. Public hearing closed. Council Discussion: The Council did not make a motion to approve. There was concern that the Traffic Safety Committee had not voted to provide its recommendations. As for timing, the project needs to occur in this calendar year. The city must initiate the project within nine months from notice to proceed, which was February 2009, making the deadline November. Then the City has two years to spend the funds. With this project the infrastructure items are striping. Additional legal notice steps are also involved including notices to the utility company within the right-of-way and submissions to the state 60 days before bidding the project. In order to begin construction this year, September would be the earliest. The definition of “starting the project” is unclear. The school has ordered some of the equipment, which might qualify as starting the project. Staff requires a road by road recommendation from the Council in order to proceed. The Council’s biggest concern was congestion on 17th Avenue South. The City Manager and staff were directed to obtain the Traffic Safety Committee’s recommendations and bring this item back for Council discussion and possible action at the June 23rd meeting. Malt Beverage Alcohol License Renewals. A public hearing was held on Annual Malt Beverage Renewals: On-Off Sale Malt: Gonz Production, Inc. (Main Street Pub), 408 Main Ave.; Old Sanctuary, 928 4th St.; Guadalajara, Village Square Mall #1; Skinner’s Pub 300 Main Ave.; Cottonwood Coffee Inc., 1710 6th St.; King’s Wok, 1819 6th St.; George’s Pizza & Steakhouse, 311 Main Ave.; Danny’s, 703 Main Ave. So.; BraVo’s, 610 Medary Ave.; Pizza Hut, 418 6th St.; Oly’s Neighborhood Pub & Grill, 725 Main Av. So.; Ray’s Corner, 401 Main Ave.; Carpy’s Pub, 700 22nd Ave. So.; Edgebrook Golf Course, 1415 22nd Ave. So.; Halstead’s Natural Bakery & Restaurant, 417 Main Ave.; Sixth Street Diner, 223 6th St.; South Main Diner, 615 Main Ave. So.; Casino 2000, 622 25th Ave.; The Shamrock, 1104 22nd Ave. So.; Hagman’s Bakery, 307 & 311 3rd St.; Swiftel Center, 31 City Council Packet July 14, 2009 824 32nd Ave.; PNP Pub, 318 2nd St. So.; Schoon’s PNP Pub South, 1203 Main Ave. So.; Cubby’s Sports Bar & Grill, 307 Main Ave.; Brookings Softball Assoc. (Southbrook Softball Diamonds), 2800 22nd Ave. So. Package Beer (off-sale): Jim’s Tap, 309 Main Ave.; Sully’s Irish Pub, 421 Main Ave.; Schoon’s Pump-n-Pak, 202 S. Main Ave.; Gas N More, 600 6th St.; CPI (dba Zip Trip), 1005 6th St.; CPI (dba Zip Trip), 3045 LeFevre Dr.; BP of Brookings Inc., 2420 E. 6th St.; Casey’s General Store, 534 22nd Ave. So.; Casey’s General Store, 620 8th St. So.; Casey’s General Store, 122 West 6th St.; Newman’s Kerr McGee, 503 6th St.; Hy-Vee Food Store, 700 22nd Ave.; Hy-Vee Gas, 716 22nd Ave. So.; Wal-Mart Stores, Inc., 2233 6th St. Public hearing – no testimony. A motion was made by Whaley , seconded by McClemans, to approve. All present voted yes; motion carried. Resolution No. 50-09 – Street Assessment. A public hearing was held on Resolution No. 50-09, a proposed Resolution of Necessity Street Assessment Project 2009-04STA. No public comments were made. A motion was made by Bartley, seconded by McClemans , to approve. All present voted yes; motion carried. Resolution No. 50-09 Resolution of Necessity Street Assessment Project 2009-04STA Be It Resolved by the City Council of the City of Brookings, South Dakota, as follows: The City Council of the City of Brookings hereby declares the necessity of paving with a bituminous wearing surface on an asphalt stabilized base course on an alley as follows: Alley between 11th Avenue and 12th Avenue and 1st Street and 2nd Street 1. The general nature of the improvement is above set forth and reference for details is hereby made to the drawings and specifications prepared by the City Engineer and on file with the City Clerk. 2. The material to be used is asphalt for paving of the alley: One and one-half inch (1 ½”) asphalt surface course on a one and one-half inch (1 ½”) asphalt stabilized base course on a six inch (6”) crushed gravel base course for the alley. 3. The improvement is substantially uniform. The estimated cost is $76 per linear foot of alley. The estimated cost per linear foot of alley for paving with one and one-half (1 ½”) bituminous mat on a one and one-half inch (1 ½”) asphalt stabilized base course on a six inch crushed gravel base course to be paved to a width of 18 feet is $76.00 or $38.00 per side of alley. 4. A description of classes of lots to be assessed is as follows: All assessable lots and tracts of land lying contiguous to the alley hereinabove described. 5. The method of apportionment of benefits is as follows: The cost thereof to be assessed against all assessable lots and tracts of land according to the benefits determined by the governing body to accrue to all such lots and tracts from the construction of the improvement. The assessment may be paid over a five-year period and the interest to be charged on the unpaid balance shall be 10%. 32 City Council Packet July 14, 2009 6. The above described improvement shall be hereinafter referred to as Street Assessment Project No. 2009-04STA, which shall be deemed a description of the improvement of the streets as hereinabove set forth. Work plan for the 34th Avenue and 20th Street Improvement Overpass Project. Weldon said the purpose of the Scoping Document is to set forth some strategies and action steps for proceeding with this project. It has been reviewed by the East Brookings Business and Industry Council as well as the Brookings County Commission and it was sent to the City Council for review last month. Staff requests the appointment of two members of the City Council to the intergovernmental task force. Such action will give staff direction to proceed with implementing the project. As a reminder, this item is Number 3 in our 2009 Strategic Plan. The County Board has endorsed the Scoping Document and thus approved the eight items. They have appointed Commissioners Santema and Falken to the task force. Following Council approval, this document will be forwarded to the Board of Supervisors of Aurora and Trenton Townships. Staff support for this project will have Community Development Director Mike Struck as the project manager with assistance from City Engineer Jackie Lanning for the initial project development phase. As the project transforms into the construction phase in the future, Jackie Lanning will become the project manager. Weldon presented the following project scoping document for the 34th /473rd Avenue & 20th /214 Street Improvement Project to the Council. “The purpose of this memo is to quantitatively define the abovementioned project and describe the process by which I am suggesting we proceed toward full implementation. It is intended to be a discussion document among the interested parties listed above as well as adjacent property owners and government representatives of Trenton and Aurora Townships. I would like to invite careful review and evaluation of this document as a means of helping to develop a general consensus of adopting a process by which construction and financing of the project can commence. Project Description. This transportation improvement project involves the improvement of 34th/ 473rd Avenue from Highway 14 south to SD 324 (I-29 exit 127) (Elkton/Sinai exit). This roadway has not yet been designed but could envision being two-lane traffic with a center third lane for left turn purposes. Curb-gutter-storm drainage utility may be required in certain segments of project while other sections may be left to rural standard design. A gravel surface currently exists from Prince Drive south on 473rd for approximately two miles to 32nd/ 215th Street where it converts to an asphalt surface (CR 21) south to 217th Street. It should be noted an interstate overpass exists at 32nd/ 215th Street but it is not a ramped interchange. The second section of the project involves the extension of 20th Street South, south of Edgebrook Golf Course easterly, installation of an interstate overpass, and construction of 214th Street aligned with the overpass to an intersection with 473rd St. The question as to whether the interstate crossing is to be limited to an overpass or be a complete interchange with access ramps to/from the interstate has yet to be determined. Perhaps the best solution for the immediate plan is for an overpass with the ability to be expanded in the future as traffic counts warrant for ramps making it a full or partial interchange. Significant right-of-way will need to be acquired and substantial overhead electrical utilities will need to be re-located as part of this project. Adjacent land uses along the routes are various combinations of commercial, industrial, agriculture, and mining. 33 City Council Packet July 14, 2009 The City of Brookings will be undertaking a portion of this project in 2010. This project will involve surfacing of 34th Avenue from Highway 14 to Prince Drive. It is envisioned the scope of the full project would actually begin at Prince Drive proceeding south. Statement of Need for the Project. The purpose of the project is to more efficiently move traffic around the City of Brookings to more efficiently accommodate daily commuter traffic between expanding industrial areas on the east as centers of employment, and the residential areas on the south and west in Brookings. Currently, the primary traffic route is US Highway 14 (6th Street); a five lane-divided highway serviced by a full interstate interchange at Exit 132. Twelve hour vehicle counts for 6th Street at the I-29 off-ramp are approximately 14,700 east-bound and 12,300 west-bound. This off-ramp intersection currently operates at a LOS (Level of Service with designations A-F with F being worst) of ‘F’ both a.m. and p.m. peak times. Twelve hour vehicle counts for 6th Street at 34th Avenue area approximately 7,400 east-bound and 4,100 west-bound. This intersection currently operates at a LOS of ‘C’ in the a.m. peak time and ‘F’ for the p.m. peak time.* Signalization improvements are scheduled for 6th Street at the ramp and at 32nd Avenue in 2010 with the possibility of additional signalization at 34th Avenue beyond that time. While such improvements will help, they will not solve the traffic management problems currently experienced. According to an informal 2007 survey, there were approximately 2,500 employees that work at the businesses in the Telkamp Industrial Park. New businesses and business expansions have unquestionably increased that number since 2007. The maximum build-out capacity of this business district could potentially double that amount in the future. What’s more, the City’s development plans include approximately 85 acres of additional business, light industry and commercial development to occur in this same area north of Highway 14 further exacerbating the traffic problems if the current situation is not resolved. This effort seeks to resolve the transportation management issue in advance of it being needed by development. Another advantage of the project is that it will accommodate an earlier exit for truck traffic heading north on the interstate destined for the Telkamp Industrial Park by allowing them to exit the interstate sooner at Exit 127 or the new Exit ramp at 20th Street South if it has an interchange. By doing this, truck traffic would have a viable traffic route along newly-surfaced 34th Avenue. In addition, this will eliminate dangerous turning movements currently occurring on Exit 132 by avoiding signalized intersections and the mixing of truck with vehicular traffic would be minimized. This would make this location much safer. The completion of this project on the routes described will provide a “ring-route” to more efficiently and safely move traffic via an alternative route connecting the same origins and destinations; while providing a safer and more convenient route for truck traffic. To summarize: the justification for the project is as follows: 1) Safety; reduce traffic congestion on Highway 14. 2) Safety; provide truck traffic an alternative route. 3) Promote economic development east of the interstate. 4) Provide an alternative transportation route to accommodate development patterns presently and prepare for future development. Work Completed to-date. The City of Brookings has adopted the goal of undertaking a traffic study on this project as part of the City’s strategic plan for 2008. That goal was accomplished with the completion of a Traffic 34 City Council Packet July 14, 2009 Impact Study by HDR Engineering of Sioux Falls. This project was financed by a combination of the City of Brookings, Brookings County, and several private businesses comprising the East Brookings Business and Industry Association. This study will serve as a vital tool to the success of the project. Secondly, the City of Brookings adopted the goal of taking this project to the next level as part of the City’s strategic plan for 2009. This Scoping Document is the basis for initializing this part of the strategic plan. This will involve formulating an intergovernmental partnership between the City, County, and Aurora and Trenton Townships as well as the private businesses and property owners affected by the project. This process will then identify the political, legal, financial, and practical considerations that will go into accomplishing this project. Third, Brookings County has completed, with the consent of the two affected townships, the process of a “turn-back” whereby 473rd Avenue will transfer jurisdictions from the two townships to Brookings County to become County Road 21. This will be a crucial step in making the project eligible for federal funding. Estimated project cost and schedule. The total scope of the project is projected to cost $8 million to $11 million depending upon whether or not a full interchange is built now or in the future at 20th Street South.* Clearly, this cost is beyond the scope of local government’s ability to finance exclusively. Annual allocations of City and County STIP funding will be woefully inadequate to accumulate to a level of financial feasibility. State and federal funding will be necessary to accomplish this project. The schedule is much more speculative. Since federal funding will be required, it is likely to take several years of substantiated lobbying for this project to be included in a federal transportation appropriation. Some federal transportation appropriation bills are renewed every five years so timing the submittal of an application with congressional consideration of legislation will be vital. Work to be undertaken. I would like to suggest the following steps be taken during 2009-10: (1) Form a local task force to research, promote, and lobby the issue - A community-based partnership should be formalized that would be charged with a public education initiative to build local support for the project as a major transportation infrastructure improvement for the region. This coalition should include representatives of the City of Brookings, Brookings County, Aurora and Trenton Townships, representatives of the East Brookings Business & Industry Association, state legislators, and affected property owners. Technical support would be provided by staff from the City of Brookings. This group should serve as the collective voice in support of the project. (2) Inform state officials of the importance of the project - The task force should identify and communicate the importance of the project to state legislators, officials in the Dept. of Transportation, Governor’s Office, Governor’s office of Economic Development, regional development agencies, and the South Dakota Congressional Delegation. (3) Have the project included in the DOT STIP - Staff should research the means and process by which the project is included in the Statewide Transportation Improvement Plan (STIP) and work to accomplish that objective. The mileage distance of the project will need to be added to the County mileage STIP inventory. (4) Use traffic study to pre-engineer the project - Information in the HDR traffic study will provide the basis for justifying the project. Parcels will need to be identified where additional right-of-way will be required. 35 City Council Packet July 14, 2009 (5) City should continue with initial improvements - City of Brookings should complete the first section of this project as scheduled (2010) of reconstructing 34th Avenue from Highway 14 to Prince Drive; and work with DOT on signalization improvements on Highway 14. (6) Development of East I-29 district master development plan - City of Brookings should undertake a district plan encompassing the total build-out of the Telkamp Industrial Park, Weise Business Park, currently- vacant DOT property, the Larson Ice Arena and Swiftel Center properties, as well as adjacent areas identified in the City’s Comprehensive Plan that could be considered in the same region. (7) Initiate and sustain congressional contact for funding - The local task force should begin in earnest to communicate with the state’s congressional delegation for a direct federal appropriation for the project. (8) Initiate discussions with Canadian Pacific Railroad - The Brookings rail Authority should begin discussions with Canadian Pacific railroad on future upgrades/crossings at 34th Avenue. Failure to act. If we, as a community, do not seize the initiative to accomplish this project, the following scenarios are likely to occur: Traffic congestion will worsen on Highway 14, making the interchange at I-29 and 6th Street east a hazardous street; Traffic delays will increase as the signals become insufficient to manage the peak traffic demands, especially around the hours of 8:00 a.m. and 5:00 p.m.; Traffic congestion will be compounded by a marked increase in truck traffic through this same area as an ingress/egress to the industrial park, even backing-up the interchange ramps.; and with traffic congestion, commercial development in the Telkamp Industrial Park, Weise Business Park, and DOT property will be stalled. I invite review and comment on this Scoping Document and that we collectively begin working on the eight steps outlined above. Jeffrey W. Weldon, City Manager ACTION: A motion was made by Bartley, seconded by Whaley, to adopt a work plan for the 34th Avenue and 20th Street Improvement Overpass Project. All present voted yes; motion carried. Railroad Crossing Arm design options for Main Avenue. A motion was made by Reed, seconded by Whaley, to approve the three-lane street configuration (two north-bound lanes and one south-bound lane) with no center median: the south-bound traffic would utilize one lane of traffic and the north-bound traffic would be similar to the current situation: the left-turn turning movements will not be changed. All present voted yes; motion carried. Interviewing City Council Applicants. Three Brookings residents submitted applications for the vacant City Council position: Gregg Jongeling, Harrison Thompson and Jael Trieb. Each applicant was given an opportunity to make a presentation and respond to Council questions. Action to appoint a City Council member. Each City Council member was given a paper ballot with all candidates names and were asked to vote for one. Ballots were submitted to the City Clerk and read publicly and recorded on a tally sheet. Council Members Bezdichek and Bartley voted for Gregg Jongeling. No Council Members voted for Harrison Thompson. Council members Reed, Kubal, Whaley and McClemans voted for Jael Trieb. 36 City Council Packet July 14, 2009 ACTION: A motion was made by Bartley, seconded by Whaley, to appoint Jael Trieb to fill the vacant seat on the City Council for the term of June 23, 2009 through May 1, 2010. On a role call vote, all present voted yes; motion carried. Appointment of Deputy Mayor. A motion was made by Bezdichek, seconded by Whaley, to approve Mike Bartley as Deputy Mayor for a term ending June 1, 2010. All present voted yes; motion carried. Adjourn. A motion was made by Bartley, seconded by Whaley, to adjourn. All present voted yes; motion carried. Meeting adjourned at 7:38 p.m. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk 37 City Council Packet July 14, 2009 Brookings City Council June 23, 2009 (unapproved) The Brookings City Council held a meeting on Tuesday, June 23, 2009 at 5:00 p.m., at City Hall with the following members present: Mayor Tim Reed, Council Members Julie Whaley, John Kubal, Mike McClemans, Mike Bartley, Jael Trieb, and Tom Bezdichek. City Manager Jeff Weldon, City Attorney Steve Britzman, and City Clerk Shari Thornes were also present. Oath of Office and Presentation of Certificate of Appointment as Council Member to Jael Trieb. Information on new Crimestoppers Program. Steve Hogie and Lt. Derrick Powers provided information regarding the new Crimestoppers Program initiatives. Powers said the Brookings Area Crime Stoppers is a cooperative program which brings together the Brookings area law enforcement agencies, the community, and the media to solve crime. The program offers citizens an anonymous method for providing vital information to law enforcement regarding unsolved crime. Crime Stoppers is dedicated to the reduction of crime, to the prompt solution of crimes, and to rewarding persons who provide information that leads to the arrest of criminals. It is a nonprofit organization made up of local citizens who are interested in assisting local law enforcement agencies with combating crime and improving community safety. Cash rewards of up to $1,000 are offered to anyone furnishing anonymous information that leads to the arrest of criminals involved in certain misdemeanor cases and all felony cases. The Brookings Area Crime Stoppers program depends on private contributions from the public to provide rewards used in this program. Donors include individuals, businesses, clubs, associations and other organizations. Mayor Reed asked the Council if there was interest in supporting this program financially. Council consensus was to direct the City Manager to work with the organization on a funding amount and to include in the 2010 budget process for Council review. Swiftel Center Expansion Plans. Weldon said the purpose of this agenda item 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 an 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. 38 City Council Packet July 14, 2009 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. 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; and 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 the 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. 39 City Council Packet July 14, 2009 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 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 40 City Council Packet July 14, 2009 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 proceed, staff proposes to 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 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 to $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? The project can be cancelled in its entirety, delayed, or moved forward. If it is decided to delay the project, it would be helpful to cite reasons for the delay and steps to be taken to resolve the reason for the delay so an eventual decision can be made. If it is decided to move forward, the first step would be to authorize staff to develop Requests for Proposals (RFP) for architectural services. If it 41 City Council Packet July 14, 2009 is decided to move forward, architectural expenses will need to be accounted for in the 2010 budget, which are currently beginning to be prepared. Council Discussion. Kubal asked if the economic impact could be backed up with hard facts and figures. Tom Richter said from day one they have conservatively estimated the Swiftel Center’s economic impact on the community. The formula they use states for every 100,000 Center attendees, two percent stay overnight, which calculates into 2,000 hotel rooms. Richter said they feel this number if very conservative. Each visitor is estimated to spend $40/day on incidentals. Overnight visitor stays are calculated at $105/day/person. With the 100,000 attendance estimate, 98% spend $40 per person and 2% spend $105 per person. Besides restaurants and hotels, other local impacts include advertising and salaries. Richter said the national daily averages are $285 and $300 per day per person. Bartley commented that when he travels he spends more than $105 per night and feels the numbers are very conservative. He noted a significant jump in third “b” sales tax revenues in recent years, which he attributes to the visitors attending Swiftel Center events. He questioned why there’s nothing in the expansion plans for an ancillary building for storage (i.e. horse stalls, dirt). He asked if additional funds would be needed. Richter responded to the daily spending estimates, stating they have used those figures for the Center’s first eight years of operation and have recently adjusted the one day figure to $60/person and hotel rate impacts have been increased from $65 to $80, which is still low. In response to the additional storage question, Richter said it is critical to have storage attached to the facility rather than be in a separate building. The proposed expansion plans have addressed the majority of their storage needs. A ‘hoop barn for dirt storage is included in the capital improvement plan. Another hoop barn for horse stall has been suggested for later. Whaley asked what the price would be of the hoop buildings and if the second building could be done at the same time. Richter said the 50’ x 100’ hoop barn for dirt is estimated to cost $50,000, which is only big enough for one dirt pile. The other hoop barn would need to be larger and he hasn’t gotten an estimate. Weldon said one consideration would be to have the ballroom be part of the hotel and not the convention center, making the hotel responsible for that part of the project. There are options to explore. However, organizations using the facility may require break-out meeting rooms and convention rooms and having to work with different entities wouldn’t be user friendly for the clients. In addition to logistical problems, splitting ownership of the two spaces would mean all revenues generated by the ballroom would be retained by the hotel. Bartley asked if it would be possible and an advantage for the TIF district to sell land for the hotel facilities. Weldon said according to state law, the land must be privately owned in a TIF district. That would require subdividing and replatting. He was uncertain if there was TIF taxation on leased land. McClemans said he has studied the numbers and isn’t sure if the return justifies a $7 million dollar expense and increased costs. He is interested in private business involvement in the Center and is concerned regarding competition with existing hotels and convention facilities. He doesn’t like spending public funds that are in competition with the private sector. He noted the City will have significant expenses in the future related to the airport, railroad and storm drainage. 42 City Council Packet July 14, 2009 Whaley asked if City staff followed through with soliciting private interest via a RFP. Weldon said he’s received some interest from hotel chains interested in partnering. If the City Council wishes to move forward in that direction, an open process would need to be developed and he hasn’t determined how to do that. Whaley commented that the expansion is a good idea to get the Center growing. However, in the eyes of the taxpayers, if the City partners with a private business it’s not “their” money. She feels the amount of money spent on the project could be a hotly contested issue. She favors exploring partnership opportunities to make the project work. Bartley said he supports the expansion as the Swiftel Center is a great asset to the community. In his opinion, the Council owes it to itself and the community to seriously look at the expansion project and go to the architectural phase. Without that step, it’s just speculation. It’s a community investment and added quality of life for this community. The Swiftel Center has brought many people and events to Brookings. The next step is a hotel. This project won’t go forward without the hotel. He feels the Swiftel Center’s economic impact to Brookings is greater than we even think. He is in support to go forward with an RFP for architectural services. Bezdichek said he believes the expansion could be well used in Brookings, but agrees with concerns raised by other council members regarding impact on the Brookings taxpayers. He noted that the expansion would not help make the Swiftel Center self-sustaining. The City will still have to do a subsidy regardless of an expansion or not. Another fact is the Swiftel Center’s employees are not city employees, but they spend money in Brookings. The Swiftel Center never has and never will reduce property taxes. It benefits the university, local industries, local organizations, and local businesses. The Council needs to determine if the expansion is valuable enough to pursue. Because it is here, when we have an event, the $105/person stays here rather than going to a neighboring city. Those people are spending money here and that’s a good thing. The issue is “leakage”; how to get more people spending money in Brookings. The difficulty is the amount needed; $7 million dollars. He wishes there was more of a partnership so that it would not cost the taxpayers as much. Taxpayers will evaluate this project based on how it impacts their pocketbook. He agrees that the proposed expansion is nice and rooms are needed for conventions. It’s the dollar amount he struggles with and if taxpayers are willing to pay for it. The expansion would be great to have in Brookings. Trieb said she favors working with an existing business or drawing a new businesses to fill this need and does not support being in competition with others. She wants to figure out a way to have the facilities but not have the taxpayers pay for it. Kubal noted that the City is going to retire one good sized debt tied to the Swiftel Center and then add another one. It would be great to get the private sector to buy-in and participate. He read the letters of endorsement that have been provided, but didn’t see any indicator to support the project with private funds. The city has to accept the fact that the Swiftel Center is going to need subsidies and he has no problem with subsidies as long as they bring in big economic impact dollars. However, he’s a little skeptical that the economic impact picture is as rosy as projected. Another question is will the taxpayers pay more money for the project. He would be more supportive if there was more buy-in from the private sector. 43 City Council Packet July 14, 2009 Reed noted the validation study cited an increase in users by 15,000 people. The Venuworks Study cited a larger number. There’s a risk how many people it would take to achieve the increased economic impact numbers. The City Council needs to look at the subsidy required. The subsidy is a risk. According to the validation study the Swiftel Center will require a $500,000 subsidy in 2013 without an expansion. With the expansion, the subsidy is expected to decrease to $333,000. Weldon reiterated the Council’s interest in a private/public business model; however, he would need to firm up the parameters of a partnership in order to identify costs. There are a number of different partnership options to review. He said the reason the public is involved in this project is because the private sector doesn’t make money. The Swiftel Center is a quality of life issue for the community in how it helps the bottom line for the rest of the community. As for risks, the City has many projects that involve risk but provide important features, services and quality of life for the citizens: downtown streetscape, SDSU Innovation Campus, Larson Ice Center, Edgebrook Golf Course, Hillcrest Aquatic Center. All required a huge subsidy and all add to the quality of life. He is willing to take a reasonable amount of risk to move forward on these issues. These amenities make Brookings a destination for conferences and events. He urged the Council to look at other city facilities in the same manner. For some reason, unfairly, the Swiftel Center was singled out as profit center years ago when the decision was made to build it, and that was incorrect. Bartley said the economic benefit of the Swiftel Center far exceeds the subsidy. The first, second and third penny revenues go much further in benefiting the community. McClemans commented that the Swiftel Center doesn’t contribute property taxes and the entire facility is paid for with city sales tax dollars. It competes against people who have mortgages and pay property tax and sales tax. There are local businesses that have the potential to provide the services for smaller events. The Swiftel Center was created to accommodate the large-scale events that no one else could do and that’s want they should do. He cited the Swiftel Center’s recent Mother’s Day buffet as being in direct competition with anyone providing meals. Reed closed saying there is council interest in the expansion, but some are uncomfortable with the City funding the entire $7 million. The City Manager was directed to explore different options with private involvement. 6:00 p.m. Meeting Review. Shari Thornes, Brookings City Clerk, noted changes to the 6:00 p.m. agenda. City Clerk Report. Shari Thornes, Brookings City Clerk, provided a briefing on upcoming invitations and obligations. 6:00 P.M. REGULAR MEETING. Consent Agenda. Additions to the agenda: Sale of 1981 Pumper Truck (Consent Item #4-O), A Message to the Brookings County Public from the Administrative Facility Task Force (Central Business District) (Item #5B). Deletions from the agenda: Ordinance No. 14-09. A motion was made by Whaley, seconded by McClemans, to approve the consent agenda, as amended: A. Action to approve the agenda, as amended. B. Action on Resolution No. 54-09, a Resolution Designating the Official Newspaper. Resolution No. 54-09 Resolution Designating Official Newspaper 44 City Council Packet July 14, 2009 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. 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. 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. 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 Dissolving Resolution No. 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 No. 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 45 City Council Packet July 14, 2009 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. 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 did exist 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 quote for the replacement unit including removal of the old unit and installation of the new unit is $85,906. There may be a $3,200 energy savings rebate that would be applied to this price; this is currently being researched. Efforts to find a second quote were not successful, as staff could not find another unit even available. This will be financed from our general fund contingency. 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. (Mike Volk, $48,544; M&M Livestock LLC, $45,777; Harold Harter, $43,550; Larry Schmeichel, $43,150; Prussman Contracting Inc., $32,475; S-Bar Ranch, $30,500; and Tim Brendemuhl, $29,435). 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. (Midway Truck, $11,286; Dean Benson, $7,100; and Dean Benson, $6,850). G. Action on Resolution No. 57-09, awarding bids for airport electrical work for fuel system. Resolution No. 57–09 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. H. Action on Resolution No. 58-09, awarding bids for airport concrete work for fuel system. 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, 46 City Council Packet July 14, 2009 $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, and 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. 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. 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. Ryan Krogman, Century 21 Gustafson, Krogman & Associations, Ron Borchardt, Best Choice Real Estate, and Sarah Woodard, Best Choice Real Estate were appointed to perform independent market analyses on the property located at Block 8 Hyland Addition (Zoned R-3), owned by John Mills, and a 25 acre parcel of unplatted property just southwest of Medary Avenue and 20th Street South (zoned agriculture), currently owned by the City. K. Action on Resolution No. 59-09, A Resolution Authorizing Change Order No. 8 for 2008- 03STI Downtown Streetscape Project. 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. L. Action on Resolution No. 60-09, A Resolution Authorizing Change Order No. 9 for 2008- 03STI Downtown Streetscape Project. 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. 47 City Council Packet July 14, 2009 M. Action on Resolution No. 61-09, A Resolution Authorizing Change Order No. 2 for 2008- 123 Sieler Addition. 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. N. Action on Resolution No. 62-09, A Resolution Authorizing Change Order No. 1 for 2008- 09STI, Rio Grand, Napa Valley, and Cumberland Court Project. 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. O. ADDITION TO AGENDA: Action on Resolution No. 65-09, authorizing the sale of a 1981 Pumper Fire Truck. Resolution No. 65-09 Resolution Authorizing the Sale of a Surplus Fire Truck to the City of Bruce BE IT RESOLVED by the City Council of the City of Brookings, South Dakota as follows: WHEREAS, the City has a 1981 Fire Pumper that has been declared surplus; WHEREAS, the City of Bruce has offered to purchase the above-described property upon terms which are satisfactory to the City of Brookings; NOW THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Brookings, South Dakota, as follows: A. That the City convey title to the above-described property to the City of Bruce; and B. That the Mayor, City Clerk and City Manager are authorized to execute the documents required to convey title of the above-described surplus property to the City of Bruce. On the motion, all present voted yes; motion carried. ADDITION TO AGENDA: A Message to the Brookings County Public from the Administrative Facility (Central Business District) Task Force. 48 City Council Packet July 14, 2009 Mayor Tim Reed read the following statement: “A great deal of attention is being paid, and rightly so, to the future location of County administration facilities and the possibility of shared, or co- located, facilities with the City of Brookings. The results of this decision making process will have long lasting impacts upon the physical character of the community and access to facilities, both public and private. To be certain, there are many parties interested in the outcomes of that decision making process. Recent discussions at County Commission meetings, and media reports, have raised questions about the rose of the Task Force created to provide input to elected officials regarding possible alternatives for such facilities. The purpose of this letter is to inform the public about the composition and role of the Task Force. Following are quite simply, the facts: • In December, 2008 the Brookings Economic Development Corporation (BEDC) presented a letter to the County Commission, and in February, 2009 presented a letter to both the County Commission and the City Council encouraging the creation of a task force comprised of public, private and civic organization representatives to explore city and county facilities relative to the long term future of the Brookings Central Business District. The BEDC Board of Directors also offered assistance in arranging, hosting, or facilitating a discussion. A task force was ultimately established with two representatives from each of the following entities: Brookings County Commissioners, Brookings City Council, Brookings Economic Development Corporation, and Downtown Brookings, Inc. BEDC staff are facilitating and providing support to the task force. • The BEDC Board of Directors does not receive direct reports regarding information collected by the task force, nor does it have any decision making authority in the process. • Following the initial meetings of the task force, task force members clarified their role as follows: to explore potential locations for a county administrative facility, or a joint county/city facility, including future law enforcement facility needs; to consider the impact of a county/city administrative facility locations on the Central Business District; and to present findings of the task force to the County Commissioners and City Council. • The task force has adopted a confidentiality statement to regulate the actions of task force members during the fact finding process which simply states the following: “All rights to discussion material, discussion content, information, proposed alternatives or recommendations are generally considered by the Task Force to be the property of the Brookings County Commission and the Cit of Brookings. The Task Force must approve the disclosure of any Task Force material, discussion content, information, proposed alternatives or recommendations to any individual, organization or entity beyond the Task Force members. Information will be disclosed to the Brookings County Commission and the Brookings City Council for publication or distribution.” • At this time, the Task Force is collecting information to present to the Brookings County Commissioners and the Brookings City Council. The Task Force: has not been requested to determine the appropriateness of alternatives; has not been requested to make recommendations, and will not be making location decisions for the County or the City. • The Task Force: has not discussed nay land purchases; has not made any land purchase recommendations, and is not developing a facility plan or deigning administrative buildings. • The Task Force does have a plan in place to guide the completion of its work in a timely manner. That plan includes, among other work items: Engage, and evaluate input from, various community groups regarding site constraints and issues: Historic Preservation Commission, Traffic Safety – City Engineer, Children’s Museum of South Dakota, Other. 49 City Council Packet July 14, 2009 • The Task Force has made a formal request for information to the Brookings Historic Preservation Commission and does plan to meet with Commission members, if they desire, to receive this information and to learn about concerns they may have regarding development in, or around, the Historic District. • When the Task Force has completed its fact finding mission a written report will be provided to the Brookings County Commission and the Brookings City Council fro their consideration and use.” 1st Reading – Ordinance No. 15-09. First reading was held on Ordinance No. 15-09, an Ordinance Prohibiting the Keeping of Game Birds in the City of Brookings, South Dakota. Public Hearing: July 14, 2009 1st Reading – Ordinance No. 16-09. First reading was held on 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 Resolution No. 63-09. A public hearing was held 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. No public comments were made. A motion was made by Bezdichek, seconded by Bartley, to approve. All present voted yes; motion carried. 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. 2nd Reading – Ordinance No. 13-09. A public hearing was held on 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. No public comments were made. A motion was made by Bartley, seconded by Bezdichek, to approve Ordinance No. 13-09. All present voted yes; motion carried. Ordinance No. 14-09. REMOVED FROM AGENDA – NO ACTION TAKEN on Ordinance No. 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-1 District (owner submitted a written “Withdrawal of Rezoning Request). Safe Routes to Schools – Phase One. A public hearing (continued from 5/26) was held on Phase One (1) of the Safe Routes to School Project including review of Traffic Safety Committee’s recommendations. A motion was made by Bartley, seconded by McClemans, to approve the 50 City Council Packet July 14, 2009 following: 1) 12th Street South from Main Avenue South to 7th Avenue South: remove parking from the south side of the street (there is currently no parking on the north side) and install signage and stenciling for a sharrow lane; 2) 7th Avenue South from 8th Street South to 12th Street South: keep parking as it is and install signage and stenciling for a “sharrow” lane; 3) Christine Avenue from 8th Street South: keep parking as it is and install signage and stenciling for a “sharrow lane”; 4) 15th Steet South from Main Avenue South to 17th Avenue South: keep parking as it is and install signage and stenciling for a “sharrow lane”; 5) 12th Street South from 17th Avenue South to 22nd Avenue South: keep parking as it is and install signage and stenciling for a “sharrow lane”; 6) 17th Avenue South from 8th Street South to 15th Street South: keep parking as it is and install signage and stenciling for a “sharrow lane”; and 7) 20th Street South from Main Avenue South to 7th Avenue South: keep the striping as it is and install signage and stenciling for a “sharrow lane”. Public Hearing. Delvin DeBoer, 914 17th Ave. So., expressed concern about middle school children utilizing a sharrow lane on this very busy street. He noted that traffic patrols are present, but there are times when speed limits are exceeded. The intersection at 17th Ave. and 8th St. South can be dangerous. He had concerns about encouraging bike traffic along that street and he’d rather encourage the City acquiring more sidewalk by church to enable bikes to pass. Jerry Visser, 1510 Pine Ridge Road, asked how the city would address crossing Main Avenue. Staff responded that within the designated routes there are intersection enhancements (signage, striping, raised crosswalks, adjust timers). The intersection at 12th St. South and Main Avenue South is designated for enhancements. Staff is currently working through the design to determine the best way to address needs of those particular intersections. He noted that he supports the Safe Routes to School program. Council Discussion. Whaley noted the following corrections and/or questions: 15th Street South is not a full street and it should be Medary, was 20th was included in phase 1 or 2, and 20th was voted to keep as it is now and not change to a 2-lane. She further noted that the bike route travels down Medary Avenue South and 15th Street South and the trail goes past almost to Yorktown Drive. She asked what it would take to extend the path to Yorktown Drive off of 15th Street South? There’s no other through streets. Staff responded that a bike trail extension would require separate funding. This is a great opportunity to establish patterns before habits are established and staff is looking for a direct route to bring students to Camelot and the Middle School. Parking will not be allowed along 15th. Sharrows on the direct route could be done with education. The City also anticipates the traffic patterns will change when the new school opens and some intersections may warrant signs. On the question raised about acquiring and widening sidewalks, staff is investigating but has not received a response if funds could be used if the change of scope was modified to transfer funds not used for striping to be used instead for the expansion of sidewalks or the bike path. McClemans asked when the 15th Street South and 7th Avenue South area was scheduled for completion. Staff responded that the asphalt hasn’t been laid and because it’s not an established road yet they hope it will help to create good habits on speed and parking. McClemans asked if property owners had turned in petitions to have the street paved. Staff noted that the city didn’t currently have the right-of-way for the streets, but it is in the future plans for a street extension. He questioned if there was a timeline for responding to the petitions. The City Attorney commented that the petitions didn’t carry any legal authority; it was just a way to communicate a desire to the city. McClemans asked how this will move forward. Weldon said it would be a Council decision on whether to put in a public improvement and how to finance it. 51 City Council Packet July 14, 2009 Kubal said one recommendation he didn’t agree with was that it appears a 4--way stop is a foregone conclusion for the 12th Street South to 7th Avenue South intersection. Staff said it may qualify in the future, but that intersection doesn’t currently meet warrants. He asked if the 4-way designation could be made for certain times of the day. Staff said current rules require full-time signage. On the motion; all present voted yes; motion carried. Special Temporary Off-Sale Package Wine License. A public hearing was held 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). A motion was made by Whaley, seconded by Bartley, to approve. All present voted yes; motion carried. Special Temporary On-Sale Wine Dealer’s Retailers License. A public hearing was held 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). A motion was made by Bartley, seconded by Bezdichek, to approve. All present voted yes; motion carried. Operational Agreement with BISA. A motion was made by Bartley, seconded by McClemans to approve an Operational Agreement between the City of Brookings and the Brookings Ice Skating Association (BISA). Council Discussion. Weldon stated this operational agreement puts into writing what has been the common practice over the years at the Larson Ice Center. There has never been a full comprehensive agreement to lay out a mutual understanding. This document addresses all of the issues regarding use of the Larson Ice Center in relationships and responsibilities and envisions the summer ice program as well. Both the Park & Recreation Board and BISA have reviewed and agree to this document. Weldon thanked Brian VanLiere, President of BISA, for all of his work. McClemans raised some concerns about previous documents, and the apparent discrepancies between them. He wants to know by whom and why there are discrepancies. Weldon clarified that this agreement before the council does not change the council’s past policy of no animals in the red rink. That provision remains intact and is mentioned in section 20 of this agreement. McClemans stated his concerns are with the use of the facility and is glad an operating agreement is being put together and working with the summer ice program. However, he wants to resolve some documents that were changed and discussions in regards to the Larson Ice Center. Bartley asked if these documents had by McClemans were approved by the council. McClemans stated no; they were drafted in 2003. Bartley stressed draft documents do not hold the power of a final/approved document. He asked McClemans if there was anything in those documents that should be addressed in this operating agreement. Weldon stated he doesn’t know what happened in 2003, but in the context of building facilities, there are all kinds of documents that get passed around that are in various hands about what should be and shouldn’t be … those things all change. The bottom line is that nothing is official until the governing board, BISA, and the City Council agree to a final document. He doesn’t know what was 52 City Council Packet July 14, 2009 altered or who may have changed something, but it is conceivable that documents, or planning tools and ideas were expressed in documents, and unless it was adopted by this body, they are not an agreement. Weldon stated his frustration in working with BISA and past agreements is that they were not signed, so therefore are not official. The one signed by the President of the Association and the City Council is considered to be official; that is an ancillary agreement to this one and why it is binding and part of this document. Weldon stated he decided to put together a comprehensive document and insert some language within that says from this point forward, this is the document we will be working from. McClemans feels that putting together a correct and complete document is what should be done, but all the information needs to be looked at before decisions are made. Britzman stated there is a procedure for resolving that concern. The procedure in Roberts’ Rules of Order calls for a majority to voice their concern if there is one and that is the only way to resolve a long-standing disagreement that might exist. One would take a majority vote of the issues McClemans has issued as significant enough to either delay action on this agreement at this point in time or change the terms. Britzman suggested that in order for this governing body to move forward, it must be recognized that subsequent councils can make policy decisions and act legislatively which is inconsistent with the prior council. In this case, we acknowledge there was a factual disagreement as to what the direction of the facility was going to be. It was fairly consistent, but there were some points that caused disagreement. At this point in time, all agree that it is relevant to listen to the comments Council Member McClemans has made and share that information, but we reach a point where we have to rely on the majority vote of the council to either stop any further action or proceed and address the agreement. Reed clarified there are two options: to table this for further review, or move to amend the agreement. ACTION: A motion was made by McClemans, seconded by Whaley, to table this item. McClemans withdrew his motion. ACTION: A motion was made by McClemans, seconded by Whaley, to request the BISA operating agreement be placed on the July 14th Council meeting agenda. The reason to delay discussion is to further review documentation provided by Council Member McClemans. Reed, Trieb, Whaley, and McClemans voted yes; Bartley, Bezdichek, and Kubal voted no; motion passed to TABLE. Development Agreement for Valley View Phase II (Tax Increment District #3). A motion was made by Whaley, seconded by Bartley, to approve the Development Agreement for Valley View Phase II (Tax Increment Plan for Tax Increment District Number Three). All present voted yes; motion carried. PHASE II DEVELOPER’S AGREEMENT THIS AGREEMENT, made on June 23, 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 53 City Council Packet July 14, 2009 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 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; 54 City Council Packet July 14, 2009 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. 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 55 City Council Packet July 14, 2009 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. 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. 56 City Council Packet July 14, 2009 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. 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. Resolution No. 64-09 – Issuance of Bonds for TID 3. A motion was made by Whaley, seconded by McClemans, 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 57 City Council Packet July 14, 2009 Project And Authorizing The Sale Of Said Tax Incremental Revenue Refunding Bonds And The Terms Thereof. All present voted yes; motion carried. 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 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. 58 City Council Packet July 14, 2009 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 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 59 City Council Packet July 14, 2009 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 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. 60 City Council Packet July 14, 2009 (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 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 61 City Council Packet July 14, 2009 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. 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 62 City Council Packet July 14, 2009 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. 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. Storm Water Finance Plan. A motion was made by Bartley, seconded by Trieb, to approve Storm Water Finance Plan “Option #5.” No public comments were made. All present voted yes; motion carried. 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 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. Swiftel Center Expansion Project. Bartley commented that he didn’t feel the Council gave adequate direction to the City Manager regarding this topic. ACTION: A motion was made by Bartley, seconded by Whaley, to direct the City Manager to prepare and execute a Request for Proposal to hire an architect to prepare schematic designs and cost estimates for the Swiftel Center Expansion project and the Manager will bring the Architectural Services Contract to Council for review and action. All present voted yes; except McClemans voted no; motion carried. Adjourn. A motion was made by Bartley, seconded by Whaley, to adjourn. All present voted yes; motion carried. Meeting adjourned at 7:37 p.m. CITY OF BROOKINGS ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk 63 City Council Packet July 14, 2009 #4 - CONSENT AGENDA: C. Action on various volunteer appointments (Visitor Promotions Committee, Brookings Committee for People who have Disabilities, and Traffic Safety Committee). Mayor Tim Reed has submitted the following appointments for Council approval: 1) Kathy Heylens to the Brookings Committee for People who have Disabilities 2) Catherine Grandorff to the Visitor Promotions Committee 3) Tony Sonnenburg to the Traffic Safety Committee Brookings Committee for People who have Disabilities Vacancy: 1 Membership: 11 Term: 3 years (1 year terms for one student position) Residency: 7 must be residents Purpose: The Committee strives to advocate for the rights of people who have disabilities in our community. Throughout the year, specific events are held to bring awareness and information to our citizens. Technical assistance is provided to the business community, private individuals, governmental entities, and nonprofit organizations. The goals of this service are to improve the quality of life for people who have disabilities through enhancing the knowledge base of entities in the community; and to further serve as a community-based advocacy group enhancing the ability of local entities to comply with Federal Civil Rights legislation. Applicants: 1. Stephanie Franzen-Nelson, Voc Rehab Counselor 2. Matt Simet, Career Advantage Manager 3. Kathy Heylens, SDSU Associate Athletic Director for Compliance/Senior Woman Administrator Visitor Promotions Committee Number of vacancies: 2 SDSU Student Association Positions Membership: 11 (5 at-large, 3 SDSU Student Association, 1 Chamber, 1 DBI,1 Swiftel Center Advisory Committee) Term: 3 years (limit of 2 full terms) Residency: Not Required Purpose: The Visitor Promotions Committee was created to attract out of town visitors for events with economic impact and to attract attention and the expenditures of out of town visitors to the City of Brookings and surrounding area and the VPC shall also provide marketing counsel and advice to the Director of the Brookings Area Convention and Visitors Bureau and the Brookings Area Chamber of Commerce Board of Directors. Applicants: Catherine Grandorff – SDSU State & Local Chair, SA Senate Traffic Safety Committee Membership: 13 Term: 3 years Residency: Required Purpose: The Committee is responsible to develop and implement coordinated traffic safety programs that meet local needs; promote public acceptance of official programs; foster public knowledge and support of traffic law enforcement and traffic engineering problems; and cooperate with city schools in promoting educational traffic safety aides. Current Vacancies: Police Department Position Applications On File: 1) Tony Sonnenburg 64 City Council Packet July 14, 2009 #4 - CONSENT AGENDA: D. Action on ex-officio appointments to the Utility Board, Hospital Board, and E911 Board. Mayor Reed is appointing the following City Council Members as ex-officio members to the following boards effective immediately: E911 Board: Mike McClemans Utility Board: Tom Bezdichek and John Kubal Hospital Board: Julie Whaley and Jael Trieb 65 City Council Packet July 14, 2009 #4 - CONSENT AGENDA: E. Action on Resolution No. 66-09, a Resolution Authorizing an Amendment to Change Order No. 1 (CCO#1), 2008-09STI Rio Grand, Napa Valley and Cumberland Court, Valley View Phase I Project (Rounds Construction Co., Inc.). 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 TIF 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. The City Council approved Change Order No. 1 for this project at their June 23, 2009 meeting, for an additional cost of $8,320.00. However, after Council approval, City Engineer Jackie Lanning became aware the Change Order document requested a contract date extension. The project had a final completion date of November 1, 2009 and Change Order No. 1 requested a change in the contract date to September 1, 2009. The owners of the project, BlairHill Properties, Inc., approved the change to the contract date. This resolution will only amend the contract deadline. Recommend amending Resolution No. 66-09 to change the contract deadline. Resolution No. 66-09 A Resolution Authorizing an Amendment to Change Order No. 1 (CCO#1) 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 amended for 2008-09STI Rio Grand, Napa Valley and Cumberland Court, Valley View Phase I Project: Construction Change Order Number 1 (amended as follows): Change final completion deadline from November 1, 2008 to September 1, 2009. Passed and approved this 23rd day of June 2009. CITY OF BROOKINGS _________________________ ATTEST: Tim Reed, Mayor ____________________________ Shari Thornes, City Clerk 66 City Council Packet July 14, 2009 #4 - CONSENT AGENDA: F. Action on Resolution No. 67-09, awarding bids for 2009-09STI Riogrand, Napa Valley, Sonoma Valley & Cumberland Court Street Project, Phase II, Asphalt surfacing, Grading, Curb & Gutter, and Utilities. 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 project is Phase II of the Valley View TIF project which includes water mains and services, sanitary sewer mains and services, storm sewer, grading, storm sewer, gravel, curb & gutter and asphalt paving. This project is the second phase of construction for this development and the streets included in the bid letting are portions of Rio Grand Avenue, Sun Valley Street, Senoma Valley Street, and Cumberland Court. The project has been bid with two contracts, one for “Grading” which includes water mains and services, sanitary sewer mains and services, storm sewer, grading, gravel and curb & gutter and one for “Paving” which includes the asphalt paving work. The bid letting was held on July 7, 2009 and the City received the following bids: GRADING: Rounds Construction Co., Inc., Brookings, SD $279,356.09 Bowes Construction, Inc., Brookings, SD $349,750.59 Oliver Excavating, Inc., Tea, SD $389,149.53 PAVING: Bowes Construction, Inc., Brookings, SD $52,590.00 The low Grading bid was approximately 47% lower than the engineer’s estimate (Banners Associates) of $525,059.35. The low Paving bid was approximately 7% lower than the engineer’s estimate (Banners Associates) of $56,670.00. The Brookings Utility Board will be acting on the Phase II water main and sanitary sewer main extension application at their meeting on Monday, July 13, 2009. In the event the application is not approved at the BMU Board meeting, the award of this bid may be tabled until the July 28, 2009 Council meeting. City Engineer Jackie Lanning will provide the information during the Council agenda review at the 5:00 pm meeting. If the Brookings Utility Board approves the Phase II extension, staff recommends awarding the Grading contract in the amount of $279,356.09 to Rounds Construction Co., Inc. and the Paving contract in the amount of $52,590.00 to Bowes Construction, Inc. 67 City Council Packet July 14, 2009 Resolution No. 67–09 Resolution Awarding Bids on 2009-09STI Rio Grand, Sun Valley, Senoma Valley & Cumberland Court Valley View Phase II Project Whereas, the City of Brookings opened bids for the 2009-09STI Rio Grand, Sun Valley, Senoma Valley & Cumberland Court Phase II Project on Tuesday, July 7, 2009 at 1:30 pm at Brookings City Hall; and Whereas, the City of Brookings has received the following bids for the 2009-09STI Rio Grand, Sun Valley, Senoma Valley & Cumberland Court Phase II Project: GRADING: Rounds Construction Co., Inc., Brookings, SD $279,356.09 Bowes Construction, Inc., Brookings, SD $349,750.59 Oliver Excavating, Inc., Tea, SD $389,149.53 PAVING: Bowes Construction Co., Inc., Brookings, SD $52,590.00 Now Therefore, Be It Resolved that the low bid $279,356.09 for Rounds Construction Co., Inc., Brookings, SD be accepted for the Grading project and the low bid of $52,590.00 for Bowes Construction Co., Inc., Brookings, SD be accepted for the Paving Project. Passed and approved this 14th day of July 2009. CITY OF BROOKINGS ________________________________ Tim Reed, Mayor ATTEST: _________________________ Shari Thornes, City Clerk 68 City Council Packet July 14, 2009 #4 - CONSENT AGENDA: G. Action on Resolution 69-09, a resolution in support of grant application to S.D. Game, Fish & Parks for Federal Sport Fish Restoration Funds to assist in facility upgrades that enhance urban fishing opportunities at future nature park (old city landfill on South 22nd Avenue). South Dakota Game Fish & Parks has notified the City that they have tentatively set aside Federal Sport Fish Restoration Funds for the City of Brookings to assist in providing enhanced facilities for urban fishing at the former city landfill ponds (future nature park) Eligible facility improvements must be closely related to fishing and could include two accessible floating docks or fishing piers, shoreline improvements to provide better access, boat launching ramps, accessible parking and accessible walkways to the portable piers, etc. Probably not eligible would be general parking area, roadways, restrooms, picnic shelters, etc. Game, Fish & Parks has designated funds for a project estimated at $225,000 (their estimate, based on previous projects). Application received now will be reviewed and acted upon by about October 2009. Funds approved them would be considered as 2011 budget year allocation, which actually begins July 1, 2010. Project construction could begin at that time. The Federal Funds are collected as a Federal Tax on fishing and sporting equipment purchased nationwide and are often known as “Dingle-Johnson” funds. Community based fishing opportunities are a high priority as a future activity at the Brookings Nature Park. Our Nature Park Citizen Ad Hoc committee and the Brookings Park and Recreation Board have both reviewed this grant request and passed motions supporting the application. The 2010 CIP request for Parks & Recreation does include a line item for Nature Park Development that would cover the matching funds required. This project would be a big first step in accomplishing the City Council goal of developing a multi-use Nature Park at the former city landfill. Resolution No. 69-09 Resolution in support of grant application to SD Game, Fish & Parks for Federal Sport Fish Restoration Funds to assist in facility upgrades that enhance urban fishing opportunities at future nature park (old city landfill on South 22nd Avenue). WHEREAS, the State of South Dakota Game, Fish & Parks, Dept. administers Federal Sport Fish Restoration Funds, and WHEREAS, these federal funds are available to eligible communities in South Dakota to assist in the development of facilities that will enhance fishing opportunities in an urban setting, such as accessible fishing docks, boat ramps, shoreline improvements and accessible parking, and WHEREAS, the City of Brookings desires to make application for such designated funds for a project that is estimated to cost approximately $225,000 on a 75-25% match (Federal-City) basis, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brookings, South Dakota that it authorizes the application by the City for these grant funds, and further, that it is the city’s intent to provide the local 25% matching funds as required. Passed and approved this 14th day of July 2009. 69 Public Water Access & Lakeside Use Area PROJECT REQUEST FORM FY10 Please complete all information and don’t forget a general and detailed map as necessary. 03/05/07 SITE NAME: City of Brookings Fishing Pond Development County: Brookings 1. OWNER OF THE LAND where this development will take place: † Parks and Recreation † Wildlife Division † Private Ownership XX Local/County Govt. Entity If Private/Local: name/address/and phone of contact: Allyn Frerichs, Director, Park, Recreation and Forestry 221 Main Avenue Brookings, SD 57006-2077 605 692-2708 Phone 605 697-8355 Fax mdempster@cityofbrookings.org 2. PROJECT LOCATION: SE ¼, Section 1, T-109-N, R-50-W, Medary Township, Brookings County. This is City of Brookings property located NW of the intersection of 215th St. and 32nd St. S. 3. DESCRIBE this project: † Replacement of an existing facility or † Addition of a new element where development already exists or XX New Facility at new area 4. PROJECT SCOPE - (detailed description of proposed action): Install two (2) handicapped-accessible, floating fishing piers in each of two ponds located on City of Brookings property currently under planning for a city park (see attached aerial photo). Clear, sculpt and stabilize up to 1,000 feet of erosion-prone and unstable shoreline around both ponds to address problems and to create additional shore fishing locations. Construct two (2) handicapped- accessible parking lots and up to 1000 feet of handicapped-accessible trails to provide access to fishing piers and shore fishing locations. Construct two (2) single-lane boat ramps on each of the two ponds to provide unpowered boat access and access for fisheries management boats. 5. PROJECT JUSTIFICATION - (need and expected benefits): The City of Brookings is developing an old landfill site into a major nature park and have requested GFP and SDSU assistance to manage the fisheries in two ponds with a total surface area of about 25 acres. Brookings has a population of over 18,000 people and this facility is expected to receive heavy use when development is finished. The park is also joined by the City bike trail so kids will have easy access. At this time, the City and private donors have offered to consider contributing the 25% match for this project and there is good potential for in-kind donations for rock and surfacing materials. 6. ESTIMATED COST: $225,000.00 Public Water Access & Lakeside Use Area PROJECT REQUEST FORM FY10 Please complete all information and don’t forget a general and detailed map as necessary. 03/05/07 7. SUBMITTAL AND REVIEW INFORMATION a. Park Manager: _______________________ Date: ___________ † Submittal † Review b. WCO: _____________________________ Date: ___________ † Submittal † Review All of the following reviews must be completed before sending to Pierre c. Regional Park Manager: Date: Project Priority † High † Low Comments: d. Wildlife Regional LAND Manager: Date: Project Priority † High † Low Comments: e. Wildlife Regional Supervisor: Date: Please circle Wildlife Regional Priority Rank (only for Wildlife Division proposals): 1 2 3 4 5 6 7 8 9 10 Comments: City Council Packet July 14, 2009 Presentations/Reports/Special Requests: 5. Promotion of Durable Medical Equipment Drive by Brookings Committee for People who have Disabilities. Mayor Tim Reed and Dave Miller, Brookings Committee for People who have Disabilities Chairperson, will present information on the Durable Medical Equipment Drive. Do you have durable medical equipment to RECYCLE?      The Brookings Committee for People who have Disabilities   will come to your home at no charge to pick up:    wheelchairs, walkers, crutches, canes, shower benches   and other medical equipment    Everything gathered will be donated to SD Cares for   redistribution to South Dakota residents in need.     To schedule an appointment for equipment pickup,   please call:  690‐5873, 690‐8693 and 695‐1958.     Available times:    July 18 from 7:00 p.m. ‐ 9:00 p.m.  July 19 from 7:00 p.m. ‐ 9:00 p.m.  July 20 from 7:00 p.m. ‐ 9:00 p.m.   July 21 from 7:00 p.m. ‐ 9:00 p.m.      Make a difference and call today!      The Committee is conducting a durable medical equipment drive to commemorate and publicize the anniversary of the signing of the ADA. A publicity campaign is soliciting donations from area residents. Committee members will pick up equipment at donors’ homes and donated collected items to the South Dakota Cares organization for redistribution in the state. This is the Committee’s second equipment drive. In 2007 over 100 items were collected! 72 City Council Packet July 14, 2009 Presentations/Reports/Special Requests: 6. 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. 7. SDSU STUDENT SENATE REPORT. 73 City Council Packet July 14, 2009 Second Readings / Public Hearings 8. Ordinance No. 15-09: An Ordinance Prohibiting the Keeping of Game Birds in the City of Brookings, South Dakota. NOTE: THE ORDINANCE HAS BEEN REVISED FROM THE FIRST READING. Proposal: Restrict 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 restrict the keeping or having of wild birds similar to how domestic fowl are restricted. A definition has also been added. Action: Motion to Approve, Request Public Comment, Roll Call City Manager Recommendation - Approve 74 City Council Packet July 14, 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. 14-1. Definitions Game Bird: Any bird that is hunted chiefly for sport or taken for food or profit II 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 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. All ordinances in conflict herewith are hereby repealed. FIRST READING: June 23, 2009 SECOND READING: July 14, 2009 PUBLISHED: July 17, 2009 CITY OF BROOKINGS, SOUTH DAKOTA Tim Reed, Mayor ATTEST: Shari L. Thornes, City Clerk 75 City Council Packet July 14, 2009 Second Readings / Public Hearings 9. 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). 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: Action: Motion to Approve, Request Public Comment, Roll Call City Manager Recommendation - Approve 76 City Council Packet July 14, 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. 77 City Council Packet July 14, 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 22-36. Amendments 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 Section 22-36. Amendments 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 ____________________________________ ATTEST: Tim Reed, Mayor __________________________________ Shari Thornes, City Clerk 78 City Council Packet July 14, 2009 Second Readings/Public Hearings 10. Public hearing and action on Resolution No. 68-09, a Resolution Determining the Necessity of Repairing or Installing Sidewalks in the City of Brookings at the Expense of Abutting Property Owners (2009-01SWR Sidewalk Repair Project). This project entails construction of miscellaneous concrete work in the 2009 sidewalk area, including property owner sidewalks that need repair or have trip hazards. This project has been bid, with Concrete Contracting, Inc. as the contractor. This resolution is the first step in starting the assessment project for the sidewalk repairs. The property owners each received a notice of the sidewalk repair this winter and were given the option of repairing their sidewalk with their own contractor or to be added to the City repair project. The attached list of property owners includes properties where the sidewalks were not replaced by the deadline as well as those who volunteered to be on the City project. The contract prices for the project, including the 6% engineering and administration fee are: Remove 4” thick Sidewalk: $2.12/Sq.Ft. Install 4” thick Sidewalk: $3.71/ Sq.Ft. Saw Concrete (if needed): $5.30/Ln.Ft. Adjust Curb Stop (if needed): $106.00/Ea. Each property owner was sent a notice of this hearing by receipt certified mail. Approval of this resolution will authorize the City to proceed with the sidewalk assessment project. Action: Open & Close Public Hearing, Motion to Approve, Roll Call City Manager Recommendation - Approve 80 City Council Packet July 14, 2009 NOTICE TO PROPERTY OWNERS NOTICE IS HEREBY GIVEN to the owners of the property described in the foregoing proposed resolution that the City Council will meet in the Council Chambers, City Hall, Brookings, South Dakota, on Tuesday, July 14, 2009 at 6:00 o’clock PM, for the consideration of the adoption of said resolution. At said time and place, the City Council will consider any objections to the proposed resolution by owners of property liable to be assessed for improvement. Shari Thornes, City Clerk Name Sidewalk Location Pioneer Enterprises Inc. 105 W. 8th Street S. Larry & Lynn Cramer 118 Half Moon Rd. Paul Heer 128 Trail Ridge Rd. Joanne Brock 134 Trail Ridge Rd. Denver Kruse 142 Santee Trail Victor & Robin Shriver 208 Santee Pass Gary Christensen 211 Santee Pass Douglas Austreim 216 Mustang Pass Mark Hendricks 217 Santee Pass Douglas Herold 316 Half Moon Rd. Green Briar Limited Partnership 410/500 15th Street S. South Briar Limited Partnership 423 15th Street S. South Main Mini Storage Inc. 425 12th Street S. Duane & Shirley Rykhus 503 Deer Pass Mark Richardson 513 Deer Pass Derek & Cheryl Kjelden 600 Powderhorn Pass Scott L. & Roshal Lamp 623 2nd Street South William & Mary Gengler 705 Arrowhead Pass Clinton & Sadie Bortnem 803 3rd Street Gary Larson 805 Pheasant Run Road David & Jeanne Kaufman 806 Pamela Drive Robert & Carolyn Willert 923 Broken Bow Trail Lakota, L.T.D. 1001/1025 Onaka Trail Roger Plooster 1010 Christine Avenue Larry & Sandra Sutton 1634 Sioux Trail Steven & Jae Greve 1636 7th Avenue S. Richard Heyduk 1704 Main Avenue S. 81 City Council Packet July 14, 2009 Resolution No. 68-09 Resolution Determining the Necessity of Repairing or Installing Sidewalks in the City of Brookings at the Expense of Abutting Property Owners 2009-01SWR Sidewalk Repair Project BE IT RESOLVED by the City Council of the City of Brookings, South Dakota, as follows: 1. It is hereby determined that sidewalk repairs or installation is necessary abutting the parcels and lots of land in the City described in the Notice to Property Owners attached to this Resolution and marked as 2009-01SWR Sidewalk Repair Project. 2. Such sidewalks shall be to the width and of the materials prescribed by Section 605 “Sidewalks” and Section 701.3-16 of Ordinance No. 532 entitled “An Ordinance Providing Rules, Regulations and Standards to Guide Land Sub-division in the City of Brookings and Within Three Miles of the City Limits Thereof” and to the grade and in accordance with the Plans and Specifications prepared in the office of the City Engineer. 3. The City Clerk has caused a copy of the Resolution and a Notice to Property Owners to be mailed to each property owner by certified mail. Passed and approved this 14th day of July 2009. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk 82 City Council Packet July 14, 2009 Other Business: 11. TABLED ITEM: 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: Operational agreement for Larson Ice Center between The City and BISA Attached is the proposed operational agreement between the City and BISA for use, operation, and activities in the Larson Ice Arena. This is identical to the document that was on the agenda for the last meeting when the issue was tabled. To the best of my knowledge, the reasons for tabling were not related to the contents of this document. Therefore, there has been no policy reason to seek any changes to this proposed document. As I mentioned at the last meeting, it was mutually negotiated between me and BISA. It is preferable to have this document approved before the summer ice schedule begins in mid-month. Staff recommends approval of the agreement. Action: Motion to remove from the Table, Roll Call 6/23/09 Tabled Motion: A motion was made by Bartley, seconded by McClemans to approve an Operational Agreement between the City of Brookings and the Brookings Ice Skating Association (BISA). Action: Request Public Comment, Roll Call City Manager Recommendation: Approve 83 City Council Packet July 14, 2009 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. 84 City Council Packet July 14, 2009 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. Electrical costs in 2009 associated with the construction projects shall be discounted from the calculation. 85 City Council Packet July 14, 2009 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. 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. 86 City Council Packet July 14, 2009 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 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 87 City Council Packet July 14, 2009 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 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. 88 City Council Packet July 14, 2009 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. 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 89 City Council Packet July 14, 2009 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 90 City Council Packet July 14, 2009 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 94 City Council Packet July 14, 2009 12. Adjourn.   95