HomeMy WebLinkAbout2008_07_22 CC PKTCity Council Packet
July 22, 2008
1
Brookings City Council
Tuesday, July 22, 2008
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 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. 2009 Budget Discussion.
2. Liquor Store Report Analysis.
3. 6:00 p.m. Meeting Review.
4. Council Invites & Obligations
5. 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.
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. Approval of City Council minutes.
C. Action on Resolution No. 58-08 to award bids for a Landfill All Purpose Spraying
Machine.
D. Action on Resolution No. 61-08 declaring Fire Department equipment surplus.
E. Action on Resolution No. 63-08, Authorizing Change Order (CCO#1 Final) For 2008
Edgebrook Golf Course Cart Path and Moriarty Park Sidewalk/Bike Path Project,
Contracted Dated September 4, 2007 to Howry Construction Company, Rockwell City,
Iowa. Action: Motion to approve, request public comment, roll call
* Matters appearing on the Consent Agenda are expected to be non-controversial and will be acted upon by the Council at one time,
without discussion, unless a member of the Council or City Manager requests an opportunity to address any given item. Items removed
from the Consent Agenda will be discussed at the beginning of the formal items. Approval by the Council of the Consent Agenda items
means that the recommendation of the City Manager is approved along with the terms and conditions described in the agenda supporting
documentation.
Presentations/Reports/Special Requests:
5. Presentation of the ABLE Award by the Brookings Committee for People who have
Disabilities.
6. Open Forum.
7. SDSU Report.
City Council Packet
July 22, 2008
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Ordinances – 1st Readings **: None scheduled
** 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.
Public Hearings & Ordinances: None scheduled
Other Business.
8. Discussion and possible action on a Memorandum of Understanding between the City of
Brookings and South Dakota State University for the Wellness Center.
Action: Motion to approve, request public comment, roll call
9. Action on Resolution No. 59-08, annexing the north 940 feet of the west 2,340 feet of
the SE ¼ of Section 1-T109N-R50W.
Action: Motion to approve, request public comment, roll call
10. Action on Resolution No. 60-08, authorizing Change Order #4 (CCO#4), for 2008-
03STI, Downtown Streetscape Project.
Action: Motion to approve, request public comment, roll call
11. Information on HOPE VI Housing Re-hab Grant Program and possible project.
Action: Informational
12. Action on Resolution No. 62-08, a Resolution Authorizing the Execution of Real Estate
Purchase Agreement.
Action: Motion to approve, request public comment, roll call
13. Action on Resolution No. 64-08, a Resolution Authorizing the Execution of Real Estate
Purchase Agreement.
Action: Motion to approve, request public comment, roll call
14. Adjourn.
Brookings City Council
Scott Munsterman, Mayor
Tim Reed, Deputy Mayor
Mike Bartley, Council Member
Tom Bezdichek, Council Member
Ryan Brunner, Council Member
Mike McClemans, 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.
City Council Packet
July 22, 2008
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5:00 P.M. WORK SESSION
** Work sessions are open to the public. During the work session the city staff would brief the council on items
for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics.
1. 2009 Budget Discussion.
City Manager Jeffrey Weldon’s budget message is enclosed outlining his 2009 budget
proposal. The City Council will review the draft budget during two scheduled budget
work sessions: July 22nd and August 12th.
The complete draft 2009 budget document is available as a separate document on the
city website or at the City Clerk’s Office.
City Council Packet
July 22, 2008
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2009 General Fund Budget by Department
Fire DepartmentRecreation
Parks
Street Department
Police Department
Transfer Out to Other
Funds
Mayor & Council
Human Rights
City Clerk
Disability
Non-Departmental
City Manager
City Attorney
Human Resources
Finance
Information Technologies
General Government Buildings
Community Development
Engineering
Police Department
Fire Department
Emergency Management
Traffic Safety
Street Department
Animal Control
Recreation
Parks
Forestry
Library
Historic Preservation
Appropriations/Subsidies
Transfer Out to Other Funds
Jeffrey W. Weldon
City Manager
July 15, 2008
Honorable Mayor and City Council Members
City of Brookings
311 Third Avenue
Brookings, SD 57006
RE: 2009 Budget Message
Dear Mayor Munsterman, City Council Members, and Citizens of Brookings:
It is with great pleasure I submit to you for your review and subsequent approval, the proposed
operating and capital budget for the City of Brookings for fiscal year 2009; exclusive of the
municipal utilities and hospital. This is my first budget presented to you as your City Manager
and I believe it accurately and responsibly sets forth our budgetary priorities for operating the
City of Brookings for the coming year.
The process staff used was to utilize historical data as a baseline for projecting future
expenditures and revenues, then suggest changes reflective of circumstances and the economy.
In every situation, we used the policies embodied in the Governance and Ends Policy as our
guide in developing expenditure targets. Conservative but realistic projections based on
quantitative assumptions and experience has guided our numbers. The department heads did
an excellent job of preparing their budgets. Their knowledge of their departments and
operations was instructive in educating me about their operations.
City Council Packet
July 22, 2008
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GENERAL FUND REVENUE BY TYPE
Real Estate Taxes
Bank Franchise Taxes
Sales Tax
State Taxes
County Taxes
Licenses
Interest Income
Rental Income
Transfers
Fees
Grants
Donations
Fines
Miscellaneous Income
Concessions
The General Fund, which is the primary fund which runs the day-to-day operations of the City,
is balanced at $13,874,158 in revenue, $13,785,781 in expenditures, and $80,000 in fund
contingency. This is an increase over 2008 of $1,940,879 or 16 percent in revenue and an
increase of $1,179,143 or 9 percent in expenditures. The total for all funds is $30,931,091; a
reduction of 10 percent from 2008 due to the Main Avenue Streetscape project and the
anticipated $4 million disbursement for the DOT property. In accordance with the
Governance and Ends Policy, general operations were adjusted using the Midwest Consumer
Price Index (CPI).
Midwest CPI of 4 percent except for energy-related and insurance items was used as a
guideline.
Energy-related items for electricity, heat, and other items a CPI of 5.8 percent.
Gasoline and diesel fuel used a CPI of 20.8 percent.
Health insurance was budgeted at estimated increase of 10 percent.
Let’s take a closer examination at specific aspects of the budget.
Revenues
Revenue from property taxes is projected to increase by twenty percent based on information
from the County Auditor. This is a reflection of more developable property coming on-line for
tax purposes. Sales tax revenue is projected to have a thirteen
percent increase over 2008 but is still estimated below our
record 2007 actual amount of $4.93 million for first penny.
A continued sluggish economy dogged by increasing gas
costs will eat into disposable household income, and
retail purchases are usually the first expenditures to
be reduced. This revenue stream is most cyclical.
The transfer from BMU is expected to increase to
$1.842 million in 2009 from $1.741 in 2008. The bed,
board, and booze (BBB) tax at one percent has grown
dramatically this year and is expected to increase with at
least one additional hotel coming on line next year. This
revenue stream finances capital and operating costs associated
with community promotions.
We are also budgeting an increase in the cable franchise television fees in two areas. First, with
the advent of Swiftel Communications into the video, federal telecommunications law requires
us to charge them the same franchise fee we charge incumbent cable competitors. In this case,
it is Mediacom. Federal law also authorizes us to charge up to five percent of gross revenues
for the fee. We currently charge Mediacom three percent. I am recommending an increase to
five percent. With the increasing costs of managing public rights-of-ways as a result of cable
companies, this increase is justified.
With regard to other miscellaneous fees, staff will undertake an annual evaluation of their levels
and recommend changes where appropriate. Our goal of fees is the recovery of the actual
costs of special benefit services provided. While general benefit services should be financed by
the general taxpayers because they benefit everyone, special benefit services should be financed
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July 22, 2008
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by parties requesting the specific service and should be at a sufficient level to adequately cover
the cost of providing them. Several fees and service charges were adjusted in 2008 and staff is
not recommending any substantive changes in them for 2009. They will be reviewed again for
the 2010 budget.
Personnel
As a labor-intensive business, employees are our single-biggest expenditure; and represent the
“human” capital of our mission. I believe it is
absolutely vital we provide and maintain
compensation and pay plans that enable us to attract
and retain a qualified workforce. Vacancies caused by
poor morale, turnover, lack of qualified applicants,
poor pay or working conditions only add to our
expenses later. However, we need to be always
watchful of the market for all our positions and set
our pay plan according to the market.
The proposed budget provides for a cost-of-living
base adjustment of 3.25 percent. This is consistent
with the Governance and Ends Policy as well as the
Midwest CPI. The Brookings School District
approved teacher contracts of 5.25 percent and
Brookings County is projecting 3.5 percent. In
addition to this base adjustment, the budget includes
provisions for supplemental salary adjustments of step
advancement through the pay plan for eligible
employees as well as performance-based pay
adjustments for employees not on the step plan. I
will be re-negotiating both employment contracts in
2009 as they need to be renewed for 2010.
Health insurance continues to be a substantial problem for employers and employees alike.
While we have not yet received our quote for 2009, we are anticipating a ten percent increase
in premiums. We are exploring options for plan re-design that can help make the insurance
more affordable for both employer and employee yet responsive to the medical needs of
employees and their families.
I received four requests for new employees; a street maintenance technician, a forestry
technician, a patrol officer, and a new department head position which I am calling a
Community Development Director. The budget proposal provides for the additional full-time
street maintenance technician mid-year. My reason for adding this position is as follows: First,
our current street maintenance workforce is down one person from 2000 when a staffing
cutback was made and never restored. Second, since 2000, we have added 20 lane miles of
streets, curb and gutter, storm drainage, and other related amenities. Third, I do not want to
compromise response time on snow removal and other street-related services beyond our
current policy level.
FY 2008 FY 2009
Mayor & Council 7 7
City Clerk 3 3
City Manager 1 1
Human Resources 2 2
Finance 4 4
Information Technology 1 1
Community Development 0 5
Airport 2 2
Engineer 8.7 4.7
Police 30 30
Fire 3 3
Enhanced 911 7 7
Street 13 14
Animal Control 1 1
Recreation 4.25 4.25
Park 10.75 10.75
Forestry 4 4
Library 10.75 10.75
Storm Drainage 1.3 1.3
Liquor 6 6
Solid Waste Collection 6 6
Solid Waste Disposal 7 7
Total 132.75 134.75
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July 22, 2008
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I rejected the request for the full-time forestry technician; however, I did increase the
temporary pay allowing for an increase in seasonal labor to help with forestry needs. This
staffing request will be re-evaluated for the 2010 budget. I likewise rejected the additional
patrol officer request. I was not persuaded the need exists at this point in time either by
service levels or crime statistics, especially since we have the aid of eight additional officers
through UPD. However, I believe we will need an additional investigator in 2010.
Finally, I am proposing a new department head position that will focus on an area where I
believe we need more “horsepower” because of the workload. The position of Director of
Community Development would oversee all comprehensive development issues and keep us
ahead of the development curve so we are proactive instead of reactive. This position would
interact most frequently as a team with the City Engineer and Economic Development Director
to administer the comprehensive plan, manage tax increment projects, any “brownfield”
reclamation projects, annexations, business recruitment and development, and work with
developers on the front-end of all types of development, as well as many special projects. To
balance the workload, planning & zoning administration and code enforcement would be
transferred from Engineering to this new department. Existing clerical staff would be shared.
I am recommending this because additional resources are needed to keep up with the demands
of a growing community, and will increase the efficiency of the rest of us currently working on
these issues. As illustrated by our ambitious list of challenges in the strategic plan, we need to
marshal the resources to address these challenges if they are to be accomplished. I anticipate
this position will require a person with experience in planning, land use, business and
community development and would command a salary commensurate with Pay Grade 10 of our
pay plan ($66,000-$89,000).
Subsidy requests
The proposed budget primarily holds constant the level of subsidy requests from 2008 with one
notable exception I will mention later. The transfers to our economic development partners
such as Brookings Economic Development Corporation, Chamber of Commerce, Downtown
Brookings, Inc. and the Growth Partnership are all at the same level as 2008. You will recall
BEDC was increased significantly in 2008 from 2007 with the advent of a special initiative for
retail development. With regard to transportation services, each was funded as they requested
with the exception of BATA which requested $50,000 and I increased this amount by $10,000
for fuel costs to $60,000. The Boys and Girls Club requested $125,000 and I am
recommending funding them at the current level of $75,000.
Finally, I am recommending we eliminate the subsidy to the school district. That has been a
historical appropriation and amounted to $207,000 for 2008. We are facing new financial
realities which I believe can no longer justify this expenditure which is not tied to any specific
project, program, or purpose. What’s more, it does not help us finance any of our goals or
strategic plan. Without any public policy justification of the purpose of such an expenditure, I
believe these city funds are better used to help address our strategic needs and the many
challenges we are facing than non-identified costs of the school district. Previously, this amount
came from BMU as a means of offsetting anticipated “lost” property tax revenue experienced
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July 22, 2008
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Capital by Type for All Funds
Total Motor Vehicles &
Equipment
Total Facilities and Parks
Total
Streets/Sidewalks/Drainage
Total Office Equip & Software
Leases
by the school district as a result of BMU being tax exempt. In my opinion, this argument simply
is no longer valid, especially when countered by the fact the school’s electricity costs are
substantially less because their power supplier is municipally-owned instead of investor-owned.
In addition, as an intergovernmental gesture, the City waives school building permits and abates
their storm water management requirements which become an additional expense to our fund.
I believe such funding is better used elsewhere in tight budgets.
Capital Improvements
As a growing community, it should be no
surprise we will experience an aggressive
list of capital improvements for equipment,
buildings, and grounds. The five-year capital
improvement program plans are expensive
but necessary. They are strategically-
scheduled to be affordable and
programmable within our operations. Our
goal with vehicles and equipment is to get
as much use from them as we can while
making sure they are dependable and economical during their life cycle.
One major capital improvement that is an emergency, is a replacement of an aerial bucket truck
for the Forestry Department ($135,000). This item was unanticipated as we planned to trade it
in within two years but we just learned it failed a crucial safety inspection and cannot be used
or retrofitted in its current condition. It needs to be replaced. Another major improvement is
a partnership with the Brookings Ice Skating Association (BISA) for bleacher, board, and glass
improvements ($625,000) to both rinks in Larson Ice Center. This amount is the total and
would be split with BISA. Most park improvements will be incidental except for the
development of Camelot Park ($135,000) with a street, parking lot, playground amenities, and
bike trail connections. Finally, a major “wild card” in the CIP is the airport land acquisition.
While the outcome of the dual-track determination should be known early in the year,
property acquisition ($2.8 million) will be necessary for either option. The amounts of land
needed will be dramatically different depending upon which option is selected.
Annual revenues dedicated to build capital funds for railroad safety improvements and fire
trucks are preserved under this budget proposal. Our five-year CIP for fire truck replacement
provides for replacing a 1971 pumper in 2010 with cash, and the aerial ladder in 2013. Two
additional pumpers need to be replaced in the years following, but our current debt service on
the fire trucks will be retired by then and such debt service capacity could be rolled-over to
finance those items.
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July 22, 2008
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Outstanding indebtedness
The budget contains sufficient revenue to meet our current obligations of previously-approved
debt service for various bonds. The following are our current levels of outstanding
indebtedness beginning with 2009.
Project Total O/S debt service Last Year Financing
Aquatic Park $1,016,400 2011 75% 2nd penny
Retail incentive $1,174,650 2012 75% 2nd penny
Swiftel/Library $4,659,480 2013 75% 2nd penny
Ice Arena/PAC $11,887,871 2021 75% 2nd penny
Fire truck leases $1,107,015 2013 25% 2nd penny
As we anticipate future capital expenditures beyond our capability to complete in one year, we
will need to look at the issuance of additional debt. Such capital improvements may likely be
for the airport, storm drainage improvements, SDSU research park infrastructure, railroad
crossing safety improvements, joint city-county law enforcement space needs, Swiftel Center
expansion, and re-location of the south fire station, just to name a few. Additionally, we could
be facing infrastructure extensions into new commercial or industrial areas that require
bonding. Ideally, we could add new debt service as the old debt is retired for better cash flow
management. The feasibility of that, however, is problematic depending upon the project, its
cost and corresponding scheduling needs. We currently enjoy a bond rating of A2 and we
should do everything we can to preserve that amount which will give us the lowest interest
rate on borrowing and the highest credit rating for financial stability.
Enterprise Fund Operations
Enterprise fund activity for Solid Waste Collection and Disposal will continue with few changes
with a transfer to the general fund of $440,000 from the disposal side of the operation. The
Brookings Municipal Liquor Store is expected to see increased sales with a scheduled transfer
to the general fund of $420,000 from the override and retail sales. An increase in advertising,
restaurant licenses, and a reduction in overhead costs will help the liquor store reach the net
sales profit goals. The airport operations require a general fund subsidy since little or no
revenue is generated at the airport. Airport operations will remain relatively static unless
scheduled air service returns which will cause a significant change in the operation and financing
of the airport. As with the past few years, much airport activity will revolve around capital
improvements.
The Research and Technology Center continues to function nicely for us and generates a profit
which we transfer to the general fund of $145,000 per year. Scheduled improvements to the R
& T Center are some HVAC modifications to improve the efficiency of the building. This is the
first significant re-investment we have made since the building was constructed.
Finally, a major change in the budget proposal is the extrapolation of Edgebrook Golf Course
from the park budget to a stand-alone public enterprise budget. The operation will remain
under the direction of the Department of Parks, Recreation, & Forestry. At this point, the golf
course requires a subsidy of approximately $147,000. This is down from an estimated subsidy
in 2008 of $184,000. My budgetary goal is to grow the popularity of the golf course to a break-
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July 22, 2008
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even position at first, and eventually, a profit center. Strategic improvements and changes will
need to be made over time but this year’s capital improvements such as the new cart paths,
more aggressive turf management, the executive nine-hole course, and sprinkler control
replacement are an important start. In the future, more marketing, new signage on 22nd
Avenue, re-construction of some bunkers, some elevated tee-boxes, irrigation improvements,
water fountains, and club house improvements should be anticipated. Unfortunately, the
schedule for raising revenue for golf courses is very small and the revenue stream is extremely
dependent upon weather.
Special Revenue Fund
The Storm Drainage Fund is expected to generate approximately $500,000 per year which is
used for operations/maintenance of the system, land acquisition, and structure construction.
The fee was increased significantly two years ago and this budget does not envision a fee
increase. A potential increase will be analyzed for 2009. Our current practice is to spend
down the fund each year as our needed improvements far outstrip the revenue to pay for
everyone in any year.
Future capital projects
Many of the issues that dominated our agenda this year will be center stage again next year.
With a final decision on the location of the Airport, improvement costs at the current location
will exceed a gross amount of $13 million and $23 million for the township site. Because of the
availability of federal funding, the net cost to the city is estimated at $2.5 million. The budget
provides for financing the initial property acquisition at $2.7 million with commensurate
reimbursement later.
Having completed the Storm water Management Master Plan, we will need to prioritize the
numerous projects delineated in the plan which tops $23 million in needed construction
improvements.
The pending sale of the DM & E Railroad to Canadian Pacific Railway has left us wondering who
we need to be working with on rail crossing improvements. We have identified short-term
solutions of additional crossing arms and prioritized 22nd Avenue and Main Avenue as the most
immediate needs. We continue to set aside funds for crossing arm improvements in the event
we can assemble a new Community Partnership Agreement to improve these safety issues.
With Phase I infrastructure of the SDSU Innovation Campus about to start, city funding will be
necessary for phases 2-4 over the next three years. Phase II will occur during this budget
period and will require the issuance of new debt by the City through a state loan program. The
debt would be backed up either by tax increment revenue from new development within the
tax increment district or, absent that revenue stream, sales and use tax. We need to
encourage such development as the tax increment revenue is a much more preferable revenue
stream than sales and use tax.
By the time this budget is effective the Swiftel Center validation feasibility study will be complete
and the results known. The new budget year will be one of deciding next steps for this
potential expansion project. The budget contains no funding for consultants or possible next
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July 22, 2008
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steps for this project and we will need additional discussion about initiating a community
dialogue about this project.
The budget does contain funding for a new regional initiative, the I-29 Corridor Economic Growth
Strategy. This is an intergovernmental initiative aggregating local units of government, economic
development agencies, and research and higher education facilities to leverage resources for
regional economic growth. The budget includes funding at $20,000 for our participating
membership.
Performance Measurement
We will be continuing our efforts to intensify our performance measurement process on city
services. Instituting methods of measuring and documenting accountability and cost-benefit is
fundamental to improving the efficiency and effectiveness of what we do. Clearly, what gets
measured, gets done! Performance measurement is a complex and difficult process; and is best
accomplished incrementally in order for it to be sustainable.
Performance measures are expected to ensure programs and services are being achieved with
their intended results at a reasonable cost to the taxpayer. We are in year two of writing and
tracking our performance measures. As the information becomes more reliable, valid,
verifiable, and understandable the information needs to be incorporated into the decision-
making and budgeting processes.
Conclusion
This budget proposal is designed to provide the means of financing our basic core services to
desired levels, special “stretch” initiatives that keep us in the forefront of municipal leadership,
and allows us to implement our strategic plan within allowable resources. Our fundamental
goal is to maximize efficiencies to get the most public service out of every taxpayer dollar while
making sure we are properly reinvesting where necessary to be good stewards of the public’s
investment.
I would like to thank the staff for their diligent work in preparing their respective components
of this budget. This process was extremely helpful to me in learning more about the details of
departmental operations as we move forward. Finally, I would also like to thank you as elected
officials for the leadership you are providing for the City of Brookings on the crucial issues that
allow us to continue to “move the needle” forward.
Clearly, our strategic plan illustrates the magnitude of the issues we face; and while the
challenges are substantial, the consequences of inaction will certainly prove devastating. We
must be assertive enough to take a reasonable level of risk, yet bold enough to be willing to
make a difference and leave Brookings better than when we found it in our pursuit of
excellence.
I recently saw one of those inspirational plaques that I believe captures the essence of
excellence. It read: “Excellence is the result of caring more than others think is wise; risking
more than others think is safe, dreaming more than others think is practical, and expecting
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July 22, 2008
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more than others think is possible.” That statement could well be a mantra for all of us in local
public service.
Sincerely,
CITY OF BROOKINGS
Jeffrey W. Weldon
City Manager
City Council Packet
July 22, 2008
13
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. Liquor Store Report Analysis.
At a recent council meeting Mike McClemans presented a report regarding the status of the
Brookings Liquor Store and its future. This report is in response to the issues presented in that
report, which is enclosed (7 pages).
The attached chart compares the present retail operation with a theoretical override
operation. The following is an explanation of each column on the chart. Retail sales from 2009-
2021 are based on 2008 sales plus an increase in sales from the sale of alcoholic beverages only.
This is an important point since this chart compares the retail operation with a theoretical
override operation in which an override is applied to alcoholic beverage purchases only. 2008
retail sales are on track to increase by $400,000. Retail income for 2008 was calculated by
$400,000 by 22%(GP%), subtracting $20,000 (projected expense increase per year) and adding
the 2007 retail income. For purposes of this comparison I projected retail sales to increase each
year by $300,000 through 2011 and by 7% per year from 2012-2021.
Retail purchases for 2008 and beyond are calculated by dividing retail sales by 1.28 (our markup
percentage). Override income is calculated by taking 10% of retail purchases.
The yearly retail income is the profit from the yearly sales increase of alcoholic beverages, minus
the yearly expense increase ($20,000), plus the previous year’s retail income. Using 2009 as an
example, the calculation is: $300,000 (sales increase) x 22% (gross profit %) = $66,000 (profit
from the yearly sales increase) - $20,000 (yearly expense increase) + $173,292(2008 retail
income) = $219,292 (2009 retail income).
The crucial assumption in the calculation of retail income is that expenses will increase by no
more than $20,000 per year. I believe this is a very realistic projection as we have made
personnel adjustments which will realize substantial savings this year and in the future. The
main reason I believe expense increases per year will stay under $20,000 is that the total of our
yearly lease increase and our personnel expense increase will be less than $10,000. These are
our largest expenses.
The last column is retail income vs. override income. For example the override income exceeds
retail income by $134,156 in 2007, by $99,638 in 2008, by $76,718 in 2009 and by $54,156 in
2010. In 2013 the trend reverses and retail income exceeds override income by $18,633 and
increases to $119,068 in 2016 and $370,632 in 2021.
A comparison was also made between the present override income of $438,486 plus the
theoretical override income of $239,448 (2007 purchase amount x 10%) and the transfer
amount of $370,000. The difference quoted was $307,934. However, the actual difference
between the two operations is $134,156 which is the amount in the last column of this chart
(2007). Comparing override income to retail income is more valid than comparing override income
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July 22, 2008
14
to the yearly transfer amount because the yearly transfer is not an operating revenue figure. It
is simply how much of the revenue from the liquor store operation is transferred to the general
fund.
The total retail income for the years 2007-2016 is $3,444,497 and the total override income for
the same period is $3,580,593. The total retail income for the years 2007-2021 is $7,706,254
and the total override income for the same period is $6,539,798
The reason why this chart was extended through 2021 is to illustrate the long term potential of
the retail operation. For instance, retail income in 2016 is $599,982 which is almost six times
the retail income in 2007. This figure grows to over $1,000,000 in 2021. Even though total
override income exceeds total retail income for the years 2007-2016 by $136,096 in 2016 there is
a substantial turnaround in this amount for the years 2007-2021. For this time frame retail
income exceeds override income by $1,166,456.
In conclusion, if we continue to operate the Brookings Liquor Store with city employees at our
present location we will make much more money in the long run than we would by leasing the
store on an override basis. In fact, I believe that we should negotiate a new long-term lease
because of our profit potential. Another reason why I believe we should continue to operate
at our present location is because our facility is large enough to accommodate sales of
$6,000,000 and more as projected in 2016. Another benefit of staying at our present location
is that we will not have any major capital expenditures, with the exception of cash register
updates, for the next 20-40 years. The shelving and fixtures at our old store lasted over 30
years and our present shelving, flooring and other fixtures should last even longer.
Another figure quoted earlier regarding our store was $1,422,309. The assertion is that we
would gain this much in the city treasury if we converted our inventory into cash and ceased
operating a liquor store with city personnel. The $1,422,309 figure is broken down into
$576,104 in inventory, $538,271 cash on hand and $307,934 profit difference that was quoted
previously. If we were to “cash out” today by converting our inventory into cash we would
only receive roughly $575,000 from the sale of the inventory minus our accounts payable
obligations. The cash on hand figure is not potential income because it is already in the bank
and as stated earlier the potential profit figure of $307,934 is not a valid number. Our accounts
payable obligation would be benefits payable which is $58,699 plus any unpaid bills for
merchandise. We would also owe the balance of payments on a 10-year lease depending on
whether or not someone would assume the lease. Thus, we would gain between $400-500,000
in one-time money but we would lose most of what we spent for leasehold improvements and
fixtures which totaled almost $500,000.
I have illustrated via this chart that we have great revenue potential as evidenced by the fact
that our retail income in the year 2016 is projected to be almost six times more than it was in
2007. If we were to “cash out” this potential revenue, which far exceeds the override potential
revenue, will be lost forever. If someone other than us operates the liquor store they will
realize this potential not us.
City Council Packet
July 22, 2008
15
After reviewing this chart and narrative I am confident that you will come to the same
conclusion that I did. Continuing to operate a retail liquor store with city personnel is the very
best option for the long term interests of the city of Brookings.
City Council Packet
July 22, 2008
16
YEAR RETAIL RETAIL RETAIL OVERRIDE RETAIL INCOME VS.
SALES PURCH. INCOME INCOME OVERRIDE INCOME
2007 $3,188,930 $2,394,480 $105,292 $239,448 -$134,156
2008 $3,488,930 $2,725,727 $173,292 $272,930 -$99,638
INC % 9.41
GP% 4.97
2009 $3,788,930 $2,960,102 $219,292 296,010 -$76,718
INC % 8.60
GP% 5.79
2010 $4,088,930 $3,194,477 $265,292 319,448 -$54,156
INC % 7.92
GP% 6.49
2011 $4,388,930 $3,428,852 $311,292 342,885 -$31,593
INC % 7.34
GP% 7.09
2012 $4,696,155 $3,668,871 $358,882 366,887 -$8,006
INC % 7.00
GP% 7.64
2013 $5,024,886 $3,925,692 $411,202 392,569 $18,633
INC % 7.00
GP% 8.18
2014 $5,376,628 $4,200,491 $468,586 420,049 $48,536
INC % 7.00
GP% 8.72
2015 $5,752,992 $4,494,525 $531,386 449,452 $81,933
INC % 7.00
GP% 9.24
2016 $6,155,701 $4,809,142 $599,982 480,914 $119,068
INC % 7.00
GP% 9.75
2017 $6,586,600 $5,145,782 $674,780 514,578 $160,201
INC % 7.00
GP% 10.24
2018 $7,047,662 $5,505,986 $756,213 550,599 $205,615
INC % 7.00
GP% 10.73
2019 $7,540,999 $5,891,405 $844,747 589,141 $255,607
INC % 7.00
GP% 11.20
2020 $8,068,869 $6,303,804 $940,879 630,380 $310,498
INC % 7.00
GP% 11.66
2021 $8,633,690 $6,745,070 $1,045,139 674,507 $370,632
INC % 7.00
GP% 12.11
TOTALS 2007-2016 $3,444,497 $3,580,593 -$136,096
TOTALS 2007-2021 $7,706,254 $6,539,798 $1,166,456
City Council Packet
July 22, 2008
24
5:00 P.M. WORK SESSION
** Work sessions are open to the public. During the work session the city staff would brief the council on items
for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics.
3. 6:00 p.m. Meeting Review.
6:00 P.M. REGULAR MEETING
1. Call to order.
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. Approval of City Council minutes.
C. Action on Resolution No. 58-08 to award bids for a Landfill All Purpose Spraying
Machine.
D. Action on Resolution No. 61-08 declaring Fire Department equipment surplus.
E. Action on Resolution No. 63-08, Authorizing Change Order (CCO#1 Final) For 2008
Edgebrook Golf Course Cart Path And Moriarty Park Sidewalk/Bike Path Project,
Contracted Dated September 4, 2007 to Howry Construction Company, Rockwell City,
Iowa. Action: Motion to approve, request public comment, roll call
Presentations/Reports/Special Requests:
5. Presentation of the ABLE Award by the Brookings Committee for People who have
Disabilities.
6. Open Forum.
7. SDSU Report.
Other Business.
8. Discussion and possible action on a Memorandum of Understanding between the City of
Brookings and South Dakota State University for the Wellness Center.
Action: Motion to approve, request public comment, roll call
9. Action on Resolution No. 59-08, annexing the north 940 feet of the west 2340 feet of
the SE ¼ of Section 1-T109N-R50W.
Action: Motion to approve, request public comment, roll call
10. Action on Resolution No. 60-08, authorizing Change Order #4 (CCO#4), for 2008-
03STI, Downtown Streetscape Project.
Action: Motion to approve, request public comment, roll call
11. Information on HOPE VI Housing Re-hab Grant Program and possible project.
Action: Informational
12. Action on Resolution No. 62-08, a Resolution Authorizing the Execution of Real Estate
Purchase Agreement.
Action: Motion to approve, request public comment, roll call
13. Action on Resolution No. 64-08, a Resolution Authorizing the Execution of Real Estate
Purchase Agreement.
Action: Motion to approve, request public comment, roll call
14. Adjourn.
City Council Packet
July 22, 2008
25
5:00 P.M. WORK SESSION
** Work sessions are open to the public. During the work session the city staff would brief the council on items
for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics.
4. Council Invites & Obligations.
July 24th
Thursday
Joint Council Meeting with
Hospital Board
6:30 pm
Hospital
July 31st
Thursday
1st District Annual Picnic
5:30 pm
Lake Kampeska
Codington Co.
Memorial Park
August
11th
Monday
Liquor Ad Hoc Committee
Meeting
5:00 p.m.
City Hall
August 15
Friday
URC-Child Development
Center Open House
2:00 pm
405 1st Avenue
Brookings
August
20-21
Wednesday/
Thursday
Development Institute –
Training for Rural
Development Professionals
Noon
Cedar Shores Resort
Oacoma
City Council Packet
July 22, 2008
26
5:00 P.M. WORK SESSION
** Work sessions are open to the public. During the work session the city staff would brief the council on items
for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics.
5. 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.
City Council Packet
July 22, 2008
27
6:00 P.M. REGULAR MEETING
1. Call to order.
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. Approval of City Council minutes.
C. Action on Resolution No. 58-08 to award bids for a Landfill All Purpose Spraying
Machine.
D. Action on Resolution No. 61-08 declaring Fire Department equipment surplus.
E. Action on Resolution No. 63-08, Authorizing Change Order (CCO#1 Final) For 2008
Edgebrook Golf Course Cart Path And Moriarty Park Sidewalk/Bike Path Project,
Contracted Dated September 4, 2007 to Howry Construction Company, Rockwell City,
Iowa. Action: Motion to approve, request public comment, roll call
* Matters appearing on the Consent Agenda are expected to be non-controversial and will be acted upon by the Council at one time,
without discussion, unless a member of the Council or City Manager requests an opportunity to address any given item. Items removed
from the Consent Agenda will be discussed at the beginning of the formal items. Approval by the Council of the Consent Agenda items
means that the recommendation of the City Manager is approved along with the terms and conditions described in the agenda supporting
documentation.
Presentations/Reports/Special Requests:
5. Presentation of the ABLE Award by the Brookings Committee for People who have
Disabilities.
6. Open Forum.
7. SDSU Report.
Other Business.
8. Discussion and possible action on a Memorandum of Understanding between the City of
Brookings and South Dakota State University for the Wellness Center.
Action: Motion to approve, request public comment, roll call
9. Action on Resolution No. 59-08, annexing the north 940 feet of the west 2340 feet of
the SE ¼ of Section 1-T109N-R50W.
Action: Motion to approve, request public comment, roll call
10. Action on Resolution No. 60-08, authorizing Change Order #4 (CCO#4), for 2008-
03STI, Downtown Streetscape Project.
Action: Motion to approve, request public comment, roll call
11. Information on HOPE VI Housing Re-hab grant program and possible project.
Action: Informational
12. Action on Resolution No. 62-08, a Resolution Authorizing the Execution of Real Estate
Purchase Agreement.
Action: Motion to approve, request public comment, roll call
13. Action on Resolution No. 64-08, a Resolution Authorizing the Execution of Real Estate
Purchase Agreement.
Action: Motion to approve, request public comment, roll call
14. Adjourn.
City Council Packet
July 22, 2008
28
6:00 P.M. Meeting
CONSENT AGENDA #4
A. Action to approve the agenda.
B. Approval of City Council minutes.
C. Action on Resolution No. 58-08 to award bids for a Landfill
All Purpose Spraying Machine.
D. Action on Resolution No. 61-08 declaring Fire Department
equipment surplus.
E. Action on Resolution No. 63-08, Authorizing Change Order
(CCO#1 Final) For 2008 Edgebrook Golf Course Cart Path
And Moriarty Park Sidewalk/Bike Path Project, Contracted
Dated September 4, 2007 to Howry Construction
Company, Rockwell City, Iowa.
Action: Motion to approve, request public comment, roll call
City Council Packet
July 22, 2008
29
CONSENT AGENDA #4
4B. Approval of City Council minutes.
Enclosed are the draft minutes from the July 8th and July 14th City Council meeting for
review and approval.
City Council Packet
July 22, 2008
30
Brookings City Council
July 8, 2008
(unapproved)
The Brookings City Council held a meeting on Tuesday, July 8, 2008 at 6:00 p.m., at City Hall
with the following members present: Mayor Scott Munsterman, Council Members Julie
Whaley, Mike Bartley, Ryan Brunner, Tim Reed, Mike McClemans, and Tom Bezdichek. City
Manager Jeffrey Weldon, Assistant City Attorney Dick Smith, and City Clerk Shari Thornes
were also present.
The Mayor called the meeting to order at 6:00 p.m. There was not a work session prior to the
meeting.
Consent Agenda: A motion was made by Reed, seconded by Brunner, to approve the consent
agenda, which included:
A. Action to approve the agenda.
B. Action to approve the June 10, June 17, and June 24 Brookings City Council minutes.
C. Action to authorize the city manager to sign a Joint Powers Agreement for Police
Assistance between the City of Brookings and Brookings County.
JOINT POWERS AGREEMENT
FOR POLICE ASSISTANCE
WHEREAS the City of Brookings, South Dakota operates a full-time police department
and Brookings County, South Dakota operates a full-time sheriff’s department within
their respective jurisdictions;
WHEREAS from time-to-time it is in the best interests of the citizens of the City of
Brookings and Brookings County, that the law enforcement officers of the separate
jurisdictions be able to provide mutual aid and assistance to each other while continuing
to exercise the authority of a law enforcement officer.
NOW THEREFORE GE IT RESOLVED AND AGREED that the City of Brookings, by
and through its City Council, and Brookings County, by and through its Board of
County Commissioners, jointly acting pursuant to the procedures set out in SDCL Ch.
1-24, do hereby jointly agree as follows:
MUTUAL AID: Any police officer of the City of Brookings, or the Brookings County
Sheriff, or any of his Deputies (herein referred to as the “Requesting Entity”), or the
police dispatcher providing dispatch services for either entity, when acting within the
scope of employment, may summon the aid of one or more officers from the other
entity (hereinafter referred to as the “Responding Entity”) to assist in the carrying out
of official duties. When so summoned, any officer from the Responding Entity becomes
a duly authorized and empowered police officer of the Requesting Entity.
City Council Packet
July 22, 2008
31
MUTUAL OATH: Each law enforcement officer in both Entities shall execute an
additional notarized Oath of Office providing as follows: I, (Name of Officer), do
solemnly swear that I will support the Constitution and the Law of the State of South
Dakota, the duly enacted Ordinances of (the City of Brookings) (Brookings County),
and when properly summoned, pursuant to the City of Brookings/Brookings County
Joint Powers Agreement for Police Assistance, the duly enacted Ordinances of
(Brookings County) (the City of Brookings), and that I will faithfully discharge the duties
of my office. (Insert - signature of officer)
LIABILITY: Each Entity shall be responsible for any liability incurred by its own officer of
officers, acting within the scope of their employment, whether acting on behalf of the
Requesting Entity or the Responding Entity.
CHAIN OF COMMAND: The senior officer of the Requesting Entity shall be the
officer in charge at any crime scene of other disturbance to which the Responding Entity
is called or dispatched.
COST ALLOCATION: The Responding Entity will bear responsibility for equipment
loss, uniforms, wages, overtime, and other similar costs as though and in the same
manner as if the officers dispatched under this Agreement were performing duties
within the Responding Entity’s jurisdictional area.
ADMINISTRATION: No separate administrative entity is established by this
Agreement. In the event either party wishes to discuss any provision of the Agreement,
it shall notify the Brookings City Manager or the Brookings County Auditor and it shall
be placed on the agenda for the next meeting. Either governing board may request a
joint special meeting of the governing boards should it so desire. It is not intended that
any additional property be acquired and held jointly between the parties.
TERM OF AGREEMENT: This Agreement shall be effective upon the date of approval
and shall continue unless and until terminated by one (1) of the Entities, which shall give
at least thirty (30) days written notice of said termination to the other Entity. This
agreement is deemed renewed annually unless terminated as provided herein.
ENTIRE AGREEMENT: This Joint Powers Agreement constitutes the entire agreement
between parities on this subject and shall be authorized and approved by the governing
body of each Entity. This Agreement may be modified only in writing signed by both
parties.
D. Action on Resolution No. 55-08, correcting Resolution No. 48-08, a resolution to annex
approximately 7 acres of land into the City of Brookings (Outlot A in the NE ¼ of the
NW ¼ of Section 3-T109N-R50W) adopted on June 24, 2008.
Resolution No. 55-08
Annexation
WHEREAS, The City of Brookings is authorized pursuant to South Dakota Codified Law
9-4-1 to annex contiguous territory upon receipt of a written petition, describing said
territory sought to be annexed, signed by not less than three-fourths (3/4) of the legal
City Council Packet
July 22, 2008
32
voters and by the owner or owners of not less than three-fourths (3/4) of the value of said
territory, and
WHEREAS, The City of Brookings desires to annex the following described property, to
wit: Outlot A in the NE ¼ of the NW ¼ of Section 3-T109N-R50W
WHEREAS, The aforesaid land is contiguous to the present boundaries of the City of
Brookings, and
WHEREAS The City of Brookings has received a Petition For Annexation of Territory
signed by the owners of greater than three-fourths (3/4) of the value of the aforesaid
property and by not less than three-fourths (3/4) of the legal voters residing in said
territory, now therefore,
BE IT RESOLVED By the City of Brookings, South Dakota, that the property described
above is hereby annexed to the City of Brookings.
E. Action to approve an abatement request from First Lutheran Church to abate a portion
of the 2007 property taxes in the amount of $1,046.86 for property located OL “R” of
Section 23-110-50, also known as 408 8th Street.
F. Action to appoint Didem Koroglu to the Visitor Promotions Committee, term expires
01/01/2011.
G. Action to appoint Penny Hauffe to the Human Rights Committee, term expires
01/01/2010.
H. Action on Resolution No. 51-08, Awarding Bids for the 2008-09STI Riogrand, Napa
Valley, Sonoma Valley & Cumberland Court Street Project.
Resolution No. 51–08
Resolution Awarding Bids on Project 2008-09STI
Rio Grand Ave., Napa Valley St., Sonoma Valley St., & Cumberland Ct. Phase I Project
Whereas, the City of Brookings opened bids for Project 2008-09STI Rio Grand Ave.,
Napa Valley St., Sonoma Valley St., & Cumberland Ct., Phase I Project on Tuesday, July
1, 2008 at 1:30 pm at Brookings City Hall; and
Whereas, the City of Brookings has received the following bids for 2008-09STI Rio
Grand Ave., Napa Valley St., Sonoma Valley St., & Cumberland Ct., Phase I Project
(GRADING):
Rounds Construction Co., Inc., Brookings, SD $523,912.61
Prunty Construction Co., Inc., Brookings, SD $528,432.55
Bowes Construction, Inc., Brookings, SD $548,907.32
And Whereas, the City of Brookings has received the following bids for 2008-09STI Rio
Grand Ave., Napa Valley St., Sonoma Valley St., & Cumberland Ct., Phase I Project
(PAVING): Bowes Construction, Inc., Brookings, SD $65,109.94
City Council Packet
July 22, 2008
33
Now Therefore, Be It Resolved that the low bid of Rounds Construction Co., Inc.,
Brookings, SD of $532,912.61 for the GRADING project be accepted and the low bid of
Bowes Construction, Inc., Brookings, SD of $65,109.94 for the PAVING project be
accepted.
I. Action on Resolution No. 52-08, Awarding Bids for the 2008-04STA Alley Assessment
Project.
Resolution No. 52–08
Resolution Awarding Bids on Project 2008-04STA
Alley Assessment Project
Whereas, the City of Brookings held a bid letting at 1:30 pm on Tuesday, July 1, 2008;
and
Whereas, the City of Brookings has received the following bids for Project
2008-04STA Alley Assessment Project: Bowes Construction, Inc., Brookings, SD,
$37,916.65.
Now Therefore, Be It Resolved that the low bid of Bowes Construction, Inc., Brookings,
SD of $37,916.65 be accepted.
J. Action on Resolution No. 54-08, for vacation of utility easement on Lot 2, Block 3,
Oyloes Addition.
Resolution No. 54-08
Vacation of Easement of Lot 2, Block 3, Oyloes Addition
WHEREAS, the City of Brookings has been granted a certain utility easement on Lot 2,
Block 3, Oyloes Addition by virtue of Easement dated April 1, 2008 and filed on April
11, 2008, in Miscellaneous Book 178 on Page 968, and
WHEREAS the owners of the aforementioned real property have petitioned the City of
Brookings to vacate the previously granted utility easement, and
NOW, THEREFORE, BE IT RESOLVED by the governing body of the City of Brookings
that the utility easement located on the West five feet (W 5’) of the East Half (E ½) of
Lot, 2, Block 3, of Oyloes Addition to the City of Brookings in the Southwest Quarter
(SW ¼) of Section 23, T110N, R50W be vacated.
FURTHERMORE, that a copy of this resolution be filed with the Brookings County
Register of Deeds, and that said Register of Deeds be requested to mark upon the
above referenced easement in Miscellaneous Book 178 on Page 968, and the vacating of
said easement and note reference to the proper miscellaneous record.
On the motion, all present voted yes; motion carried.
City Council Packet
July 22, 2008
34
House Moving. A public hearing and action was held on a housing moving request from
Shaun and Jamie Hof to move a Governor’s House from Springfield, SD, to Lot 33 and 33A,
Meyer’s Second Addition in the SW ¼ of the NW ¼ of Section 11-T109N-R50W, also known
as 306 Hawaii Drive. No comments were made during the hearing. A motion was made by
Bartley, seconded by Reed, to approve. All present voted yes; motion carried.
Public Hearing - Ordinance No. 29-08 – Flood Damage Prevention. A public hearing
was held on Ordinance No. 29-08: Ordinance amending Article II of Chapter 38 of the Code
of Ordinances of the City of Brookings and pertaining to Flood Damage Prevention. No
comments were made during the hearing. A motion was made by Reed, seconded by Brunner,
to approve Ordinance No. 29-08. All present voted yes; motion carried.
Resolution No. 56-08 – Temporary Off-Sale Package Wine License. A motion was
made by Brunner, seconded by Bartley, to approve Resolution No. 56-08, establishing a fee for
Temporary Off-Sale Package Wine Licenses within the city of Brookings. All present voted yes;
motion carried.
Resolution No. 56-08
Resolution Establishing the Procedure and Fee for the Issuance of Temporary Off-
Sale Package Wine Licenses in the City of Brookings
BE IT RESOLVED by the City Council of the City of Brookings, South Dakota as
follows:
WHEREAS, the State of South Dakota has authorized municipalities to issue temporary off-sale
package wine licenses for fair boards, and public, civic, charitable, educational and fraternal
organizations pursuant to House Bill 1118, and
WHEREAS, the temporary license may be issued only if the licensee sells wine manufactured by
a farm winery licensed pursuant to SDCL Chapter 35-12, and for periods of time not exceeding
fifteen consecutive days, and
WHEREAS, the City Council is authorized to determine the fee for this license, which may not
exceed fifty dollars per day,
NOW THEREFORE, BE IT RESOLVED that the fee for temporary off-sale package wine
licenses shall be fifty dollars per day.
Temporary Off-Sale Package Wine License. A public hearing was held on a Temporary
Off-Sale Package Wine License for the South Dakota Winegrowers Association on July 12 and
13 at Old Liquor Store location.
The following is a summary of the staff report providing background on the issue.
This agenda item is in response to a request received on June 26th from Jim and Nancy Schade on
behalf of the South Dakota Winegrowers. One of the new bills passed in this session was HB1118, will
permit special OFF-SALE package wine dealer’s licenses. This new law allows for city’s to issue a special
City Council Packet
July 22, 2008
35
license to permit the sale of OFF-SALE wine, but only wine that was manufactured by a farm winery
within the State of South Dakota. The South Dakota Winegrowers have rented a booth outside the
Arts Festival grounds and would like to sell bottles of South Dakota wine.
Since this is a new law, the question was raised if the City needed to pass an ordinance before it could
issue a license under this change in state law. Officials from the State Department of Revenue and
Special Licensing and the City Attorney reviewed this issue and concluded that an ordinance is not
needed.
A legal notice seven days prior to the council meeting is required to give public notice. A copy of the
notice is enclosed. A public hearing and council action is required to issue this license.
State officials and the City Attorney have also concluded that the SD Winegrowers Association is a
qualifying entity under this new law. To qualify, the license must be applied for by a fair board or a
public, civic, charitable, educational or fraternal organization in conjunction with a special event.
Public Hearing: Don South, Straw Bale Winery near Renner, spoke on behalf of the South
Dakota Wine Growers Association. South noted that this law is only eight days old. The
Association successfully tested it at the Sioux Empire Fair on July 4th and had great success.
The group is now requesting an off-sale wine license to sell wine by the bottle unopened on July
11 and 12. They are open to the hours that the city would recommend (Saturday 10-5 and
Sunday noon to 4). He noted that his winery offers over 20 types of wine as does Shade
Vineyards and these businesses would like an opportunity to introduce their wines to the
public.
ACTION: A motion was made by Brunner, seconded by Reed, to approve a Temporary Off-
Sale Package Wine License.
AMENDMENT: A motion was made by Bartley, seconded by Bezdichek, to strike “adjacent to
the Brookings Arts Festival” and insert the street address for the former Liquor Store.
Discussion: Bezdichek noted that all references to the Summer Arts Festival should be removed and
stricken from this request. On the amendment, all present voted yes, motion carried.
Discussion on main motion as amended: Bezdichek asked what it takes for an organization to be a
qualified entity under the state licensing requirements noting the allowable categories. Dick Smith,
Assistant City Attorney, said a qualifying entity would be defined by the licensing agency. Thornes said
the City Attorney reviews all entities to make the determination if they are “qualified” under state law.
In this case, the City Attorney felt the Wine Growers Association fit within the “public” organization
category.
Bezdichek asked if Jerry Lohr would be allowed to sell under this new law. Weldon said no because his
is from California.
On the main motion as amended, all present voted yes; motion carried.
City Council Packet
July 22, 2008
36
Temporary On-Sale Wine Retailers License. A public hearing for a Temporary On-Sale
Wine Retailers License for the South Dakota Winegrowers Association on July 12 and 13 at
Old Liquor Store location was held.
The following is a summary of the staff report providing background on the issue.
As noted under previous agenda item, Jim and Nancy Schade, on behalf the SD Winegrowers
Association, applied to sell off-sale wine during the Brookings Summer Arts Festival on July 12 and 13
pursuant to the new state law (HB 1118). The South Dakota Winegrowers have rented a booth
outside the Arts Festival grounds and would like to sell bottles of South Dakota made wine. They would
also like to offer samples of wine. SDCL 35-4-10.2 is the state law that regulates samples. The State
Department of Revenue and City staff have concluded that samples can not be offered without an ON-
SALE license, permanent or temporary. That is why the SD Winegrowers Association are also applying
for a Temporary ON-SALE Wine Retailers License in order to offer samples of the wine (SDCL 35-4-
11.4).
The qualifying applicant categories for the ON-SALE license are not the same, but the City Attorney has
concluded the SD Winegrowers Association would qualify.
With regards to Sunday Sales, City Clerk Shari Thornes posed the following comments and questions:
The special malt beverage retailers' license and a special retail on-sale wine dealers' license also has the
same language related to 15 days. These special licenses are not addressed in the Sunday sales
ordinance and I don’t see where they would be prohibited. The ordinance states “(e) Except as
permitted in this section, no person within the city shall sell, offer for sale, serve or allow to be
consumed on the premises covered by a state license any alcoholic beverages on Sunday. However,
these are special city issued licenses and are not issued by the state. It maybe should be noted that the
on-sale wine licenses automatically become on & off sale wine effective July 1st and the restaurant
restrictions have been removed. We probably need to amend the Sunday Sales Ordinance to comply
with this change.
However, the City Attorney in an email noted that he was uncertain if samples could be permitted on
Sunday under the City’s current ordinance. Britzman made the following statements: “….When it
comes to serving samples on Sunday, it seems that unless Ord. 05-06 would permit such activity, that
providing samples on Sunday may not be consistent with our ordinance….”. “The Sunday sales
ordinance is primarily an on-sale prohibition, with just a small section for malt beverages covered. I
agree the State permits the sale of wine under this license on Sundays, and so off-sale under the
temporary license is distinguishable from the intent of the last section to clearly prohibit or restrict
Sunday on-sales, since State law generally covers off-sale on Sundays.”
It should also be noted, unless other clarifications are made, this on-sale license would permit for an on-
sale “wine tent” across the street from the Arts Festival in where wine could be consumed on premises
with regular sized glasses, unless specifically prohibited.
Public Hearing: Don South, representing the South Dakota Wine Growers Association, noted
that the Association is a non-profit organization as opposed to Jerry Lohr. He said they do not
want to sell wine by the glass or open bottle. They just want to offer tastes or samples.
City Council Packet
July 22, 2008
37
Bezdichek asked for clarification on the state law regarding samples (SDCL 35-4-11.4) that
specifies only one variety can be sampled at one time. South clarified that this would only
pertain to an off-sale license and if the City approves the temporary on-sale license, it would
alleviate the entire issue of tastings.
ACTION: A motion was made by Brunner, seconded by Reed, to approve a Temporary On-
Sale Wine Retailers License to the South Dakota Winegrower’s Association for July 11 and 12
at the former Liquor Store location.
Council Discussion: Thornes clarified the previous question saying the Wine Growers Association
thought they could offer samples with the Off-Sale license; however, the City Attorney and the
Department of Revenue determined that they couldn’t. The only way they could was if they were a
liquor or wine store with a permanent license. That is why the Association has to apply for a temporary
On-Sale license.
Bartley noted that off-sale state law pertaining to samples states that no sampling can be provided on
Sundays and asked for clarification if the on-sale license requirements were the same. Thornes noted
her staff report which states these are special city licenses and are not issued by the state. Also, she
and the City Attorney will be recommending amendments to the City’s Sunday Sales ordinance to
provide clarification on this issue. Bartley asked if it’s up to those parties with the license to determine
whether they are legal to sell samples. Yes.
Brunner asked if the times should be outlined in the motion. Thornes said these are addressed in city
ordinance noting that wine can not be served before noon on Sundays.
Judith Peterson asked if any member of the SD Wine Grower’s Association could set up a booth and sell
wine under this license.
All present voted yes; motion carried.
Resolution No. 57-08 – Change Order. A motion was made by McClemans, seconded by
Whaley, to approve Resolution No. 57-08, authorizing Change Order #3 (CCO#3), for 2008-
03STI, Downtown Streetscape Project (this change order is for removal of an unanticipated
2’x3’ steam tunnel in the 500 block of Main Avenue and the cost will be paid by BMU.) All
present voted yes; motion carried.
Resolution No. 57-08
A Resolution Authorizing Change Order #3 (CCO#3) 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 3: Remove 242
linear feet of small steam tunnel (approximately 2’x3’) and properly dispose of all materials
including abatement contractor for an increase of $16,940 to the contract.
The 2008-03STI Downtown Streetscape Project entails construction work on Main Avenue
from 6th Street to Front Street, which includes new water and sanitary sewer mains and
City Council Packet
July 22, 2008
38
services, new sidewalk, light poles, trees, curb & gutter, pavement and other streetscape
amenities.
During the underground utility work, an un-anticipated small concrete steam tunnel
(approximately 2’x3’) was uncovered in the 500 block of Main Avenue. This particular steam
tunnel was located very high in the roadway section, and would have been within a few inches
of the future top of the asphalt roadway. Brookings Municipal Utilities have proposed a change
to the Winter Brothers Underground contract to add the following work: Remove 242 linear
feet of small steam tunnel (approximately 2’x3’) and properly dispose of all materials including
abatement contractor for an increase of $16,940.00 to the contract.
This change order will approve the additional work for the steam tunnel removal in the 500
Block of Main Avenue and adjust the Winter Brothers Underground contract for a total
increase of $16,940.00.
Adjourn. A motion was made by Reed, seconded by Bartley, to adjourn. All present voted
yes; motion carried. Meeting adjourned at 6:31 p.m.
CITY OF BROOKINGS
Scott D. Munsterman, Mayor
ATTEST:
Shari Thornes, City Clerk
City Council Packet
July 22, 2008
39
Brookings City Council
July 14, 2008
(unapproved)
The Brookings City Council held a special emergency meeting on Monday, July 14, 2008 at 3:00
p.m., at City Hall with the following members present: Mayor Scott Munsterman (via phone),
Council Members Julie Whaley, Mike Bartley, Ryan Brunner, Tim Reed, Mike McClemans (left at
3:42 p.m.), and Tom Bezdichek. City Manager Jeffrey Weldon, City Attorney Steve Britzman,
and City Clerk Shari Thornes were also present.
Deputy Mayor Tim Reed called the meeting to order at 3:11 p.m.
Executive Session. A motion was made by Bartley, seconded by Whaley, to enter into
executive session at 3:11 p.m. for consulting with legal counsel or reviewing communications
from legal counsel about contractual matters with Council, Manager, Attorney and Clerk
present. All present voted yes; motion carried. A motion was made by Bartley, seconded by
Whaley, to exit executive session at 3:44 p.m. All present voted yes; motion carried.
Adjourn. A motion was made by Whaley, seconded by Brunner, to adjourn. All present
voted yes; motion carried. Meeting adjourned at 3:44 p.m.
CITY OF BROOKINGS
Scott D. Munsterman, Mayor
ATTEST:
Shari Thornes, City Clerk
City Council Packet
July 22, 2008
40
CONSENT AGENDA #4
4C. Action on Resolution No. 58-08 to award bids for a Landfill All
Purpose Spraying Machine.
An “All Purpose Spraying Machine” is what is used at the landfill to apply alternate
cover. They are similar to a hydro seeder as far as looks and function, but are used for
landfills so somewhat of a specialty machine. There is budgeted $95,000.00 in the 2008
budget to replace the current 1996 machine.
The cash price for a 2008 machine is $82,191.00 and they will give us $8,000.00 for the
old machine which seems reasonable. Therefore, our net price is $74,191.00.
The recommendation is to accept the bid with trade-in and approve the resolution.
All Purpose Spraying
Machine New Waste Concepts, Inc. Millborn Seeds
Tuesday, July 15, 2008 Perrysburg, OH 43551 Brookings, SD 57006
Bid Bond
cashiers check
$3,710.00
Base Bid $82,191.00
Trade- In $8,000.00
Net Cost $74,191.00
City Council Packet
July 22, 2008
41
Resolution No. 58-08
Resolution Awarding Bids
Landfill All Purpose Spraying Machine
Whereas, the City of Brookings has received the following bid for one (1) 2008 All Purpose
Spraying Machine:
New Waste Concepts, Inc. Base Bid $82,191.00
Trade-In 1996 All Purpose Spraying Machine
Serial Number RLAR-2194 $ 8,000.00
Net Price $74,191.00
Now Therefore, Be it Resolved that the bid from New Waste Concepts, Inc., in the amount of
$74,191.00 plus the trade-in for the above-mentioned 2008 All Purpose Spraying Machine be
accepted.
Passed and approved this 22nd day of July 2008.
CITY OF BROOKINGS
________________________________
Scott D. Munsterman, Mayor
ATTEST:
_________________________
Shari Thornes, City Clerk
City Council Packet
July 22, 2008
42
CONSENT AGENDA #4
4D. Action on Resolution No. 61-08 declaring Fire Department
equipment surplus.
To: Jeff Weldon, Brookings City Manager
From: Darrell Hartmann, Brookings Fire Chief
Date: July 14, 2008
RE: Request Surplus Property
I would request the City of Brookings allow the Brookings Fire Department to surplus the
Engine 3:
1981 GMC Smeal Pumper 1000 GPM Top-Mount
Model TC7D042 VIN # 1GDL7D1E88V56974
Brush 3:
1985 AM General HumVee Serial # 535148
(Purchased from SD Federal Property Agency in 2000)
We have replaced the above units with newer models and I am requesting the City of
Brookings surplus these units so as to move forward with the sale of the above units.
RESOLUTION NO. 61-08
DECLARING SURPLUS PROPERTY
WHEREAS, the City of Brookings is the owner of the following described vehicles formerly used by the City of
Brookings Fire Department:
Engine 3: 1981 GMC Smeal Pumper 1000 GPM Top-mount
Model TC7D042 VIN # 1GDL7D1E88V56974
Brush 3: 1985 AM General HumVee Serial # 535148
(Purchased from SD Federal Property Agency in 2000)
WHEREAS, in the best financial interest, it is the desire of the City of Brookings to sell same as surplus
property;
WHEREAS, the City Manager hereby authorized to appoint three qualified appraisers to appraise the value of
the property;
NOW, THEREFORE, BE IT RESOLVED by the governing body of the City of Brookings, South Dakota, that
this property be declared surplus property according to SDCL Chapter 6-13.
Passed and approved this 22nd day of July, 2008.
CITYOF BROOKINGS
________________________________
Scott Munsterman, Mayor
ATTEST:
___________________________
Shari Thornes, City Clerk
City Council Packet
July 22, 2008
43
CONSENT AGENDA #4
4E. Action on Resolution No. 63-08, Authorizing Change
Order (CCO#1 Final) For 2008 Edgebrook Golf Course
Cart Path And Moriarty Park Sidewalk/Bike Path Project,
Contracted Dated September 4, 2007 to Howry
Construction Company, Rockwell City, Iowa.
A contract was awarded in the fall of 2007 for concrete cart paths at EdgeBrook Golf
Course and sidewalk/bike path in Moriarty Park. Due to wet weather conditions the
work could not be completed last fall, however we had allowed in the contract for
completion in summer 2008, without penalty.
We had budgeted $45,000 for golf course work and $30,000 for the park bike path.
Based on the estimate before bidding, we anticipated accomplishing about 2,500 lineal
feet of cart path and 1,800 lineal feet of bike path/sidewalk, which was the minimum
quantities desired. So we specified those estimated quantities for bidding, with a lineal
foot itemized cost, final payment to be based on actual measurement.
The bid came in somewhat less per lineal foot than anticipated, so we were able to
construct more path and sidewalk, and stay close to the original budget.
The work was finished in June and this Change Order authorizes the final payment
based on actual measured lineal feet constructed. Funds are available in the 2008 Park
Capital Outlay budget to cover the amount of the contract.
City Council Packet
July 22, 2008
44
RESOLUTION NO. 63-08
A RESOLUTION AUTHORIZING CHANGE ORDER (CCO#1 FINAL) FOR 2008
EDGEBROOK GOLF COURSE CART PATH AND MORIARTY PARK SIDEWALK/BIKE
PATH PROJECT, CONTRACTED DATED SEPTEMBER 4, 2007 TO HOWRY
CONSTRUCTION COMPANY, ROCKWELL CITY, IOWA.
ORIGINAL CONTRACT BID PRICE
SCHEDULE 1. EdgeBrook Golf Course Cart Path
• Bid – 2,500 lineal feet @ $14.76 LF = $36,900.00
• Actual – measured lineal feet,
3088 LF @ $14.76 LF = $45,578.88
ADDITIONAL $ 8,678.88
SCHEDULE 2. Moriarty Park Sidewalk/Bike Path
• Bid – 1,800 lineal feet @ $14.76 = $26,568.00
• Actual – measured lineal feet,
2,045.3 LF @ $14,76 LF = $30,188.63
ADDITIONAL $ 3,620.63
TOTAL ORIGINAL CONTRACT BID PRICE (Schedule 1 & 2) $63,468.00
TOTAL FINAL CONTRACT PRICE (Schedule 1 & 2) $75,766.71
ADDITION TO CONTRACT $12,298.71
BE IT RESOLVED by the City Council that the following Change Order be allowed for 2008
Cart Path and Sidewalk/Bike Path Construction:
CCO Number 1 (Final) – Adjust contract with an increase of $12,298.71
Passed and approved this 22nd day of July, 2008.
CITY OF BROOKINGS
______________________________
Scott Munsterman, Mayor
ATTEST:
____________________________
Shari Thornes, City Clerk
City Council Packet
July 22, 2008
45
Presentations/Reports/Special Requests:
5. Presentation of the ABLE Award by the Brookings
Committee for People who have Disabilities.
The Shamrock has been selected as the recipient of the 2008 ABLE Award. Presentation
of the ABLE Award will be made by members of the Brookings Committee for People who
have Disabilities.
ABLE AWARD
(Ability, Belief, Leadership, and Equality Award)
Brookings Committee for People who have Disabilities
Program Description
The A.B.L.E. Award (Ability, Belief, Leadership and Equality to Achieve Access For All) is
an annual award program designed to recognize the outstanding commitment of a business
or public entity in fulfilling the goals of the Americans with Disabilities Act. Highlighting
the efforts of an outstanding business or entity may motivate others to provide improved
accessibility to goods and services. It is presented each year in conjunction with the
celebration of the anniversary of the signing of the ADA on July 26th 1991.
Past Winners
2007: Lowes
Capital Card Services
2006: Ada Caldwell Residence Hall, SDSU
2005: Fishback Soccer Park
Fergen’s Clothing
2004: Holiday Inn Express
Applebee’s Neighborhood Bar & Grill
2003: Larson Ice Center
1st United Methodist Church
2002: SDSU Crothers Engineering Hall
2001: Brookings HyVee
United Church of Christ
2000: St. Thomas More Catholic Church
1999: George S. Mickelson Middle School
1998: Downtown Subway
City Council Packet
July 22, 2008
46
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 REPORT.
City Council Packet
July 22, 2008
47
Other Business.
8. Discussion and possible action on a Memorandum of
Understanding between the City of Brookings and South
Dakota State University for the Wellness Center.
Dr. Michael Reger, Vice President of Administration for South Dakota State University,
will be at the meeting to present the following proposed Memorandum of
Understanding between the City of Brookings and SDSU.
This MOU is pursuant to City Resolution No. 115-96 that declared the city’s intent to
sales tax funds for the Wellness Center. A copy of resolution is enclosed. Section 3-
C states as follows: “The SDSU Wellness Center will be owned by the State of South
Dakota and operated by South Dakota State University pursuant to a Joint Powers
Agreement which will provide for community involvement in the use of the SDSU
Wellness Center.”
The other enabling city document is City Resolution No. 13-97 (see enclosed) that
approved the City’s funding participation in the Performing Arts Center and the
Wellness Center projects. A copy of the Performing Arts Center MOU is enclosed for
reference. Specifically related to the Wellness Project it states, “….the City of
Brookings shall participate in the Wellness Center Project with SDSU; shall enter into a
Joint Use Agreement with SDSU pertaining to the same and shall contribute $500,000
from revenues derived from the additional penny sales tax towards the development
and construction of said project.”…
Enclosures:
1. Proposed Memorandum of Understanding for the Wellness Center
2. City Resolution No. 115-96
3. City Resolution No. 13-97
4. Performing Arts Center Memorandum of Understanding
Action: Motion to approve, Request Public Comment, Roll Call
City Manager Recommendation – Approve
City Council Packet
July 22, 2008
48
DRAFT
SDSU Wellness Center
MEMORANDUM OF UNDERSTANDING
WHEREAS, the 2004 legislative session of the Legislature of the State of South Dakota
by Chapter 120, and as amended by the 2006 legislative session at Chapter 99, all at SDCL 13-
51-1, authorized the Board of Regents to contract for the construction of and the equipping
and furnishing of a Wellness Center at South Dakota State University, Brookings, at an
estimated cost of $12.1 million to be paid from other funds under the control of the Board of
Regents, from gifts and grants to South Dakota State University specifically for this purpose,
including bond proceeds provided by the City of Brookings, and from financing provided
pursuant to chapter 13-51A, all of which were appropriated to the Board of Regents for the
purposes of the act; and,
WHEREAS, Section 2 of the act empowered the Board of Regents to expend funds
obtained for the purposes of the act and appropriated the funds to the Board; and,
WHEREAS, Section 3 provided that the administration of the design and construction of
these facilities and oversight of building committees appointed therefore, as provided in Chapter
5-14-3 shall be under the general charge and supervision of the Governor and the executive
director of the Board of Regents or their designees; and,
WHEREAS, the City of Brookings by virtue of the power granted to the City of
Brookings under SDCL 9-12-4 and 9-12-5 has the power to enter into an agreement with the
State of South Dakota and with any authorized agency of the state to carry out any authorized
municipal function, and is authorized to give and convey any personal property of the
municipality to the state to be used for an authorized public purpose upon the terms and in the
manner provided by resolution of the governing body; and,
WHEREAS, the State of South Dakota identified the property described as follows, to-
wit:
From the SE corner of the NW ¼ of Section 24, Township 110N, Range 50W proceed
N90°W 332 feet and E90°N 79 feet to Point of Beginning (POB). From POB proceed
E90°S 224 feet; thence S90°W 419 feet; thence W90°N 224 feet; thence N90°E 419 to
POB. Said tract containing 2.16 acres of Section 24, T110, R50W; and upon which real
property is to be constructed the Wellness Center facility as authorized by the legislative
acts mentioned previously; and,
WHEREAS, the State of South Dakota is constructing a Wellness Center facility on the
campus of South Dakota State University, Brookings, South Dakota, on behalf of the Board of
Regents of the State of South Dakota; and,
WHEREAS, the City of Brookings is contributing to the financing for the construction of
City Council Packet
July 22, 2008
49
said facility to enhance the availability of multi-use facilities for the City of Brookings and
surrounding Brookings County area; and,
WHEREAS, in order to recognize the cooperative effort of the City of Brookings and
South Dakota State University for the use of the facility, which is being jointly constructed, and in
order to reduce to writing the contractual obligation established by the Board of Regents and the
local unit of government, namely, the City of Brookings, a municipal corporation of the State of
South Dakota.
NOW, THEREFORE, this Memorandum of Understanding and legally binding contract is
entered into by and between (South Dakota State University) the Board of Regents of the State
of South Dakota and the City of Brookings, a municipal corporation of the State of South
Dakota, to set forth in writing in general terms the right of access to the facility and the nature
of the cooperative arrangements which will be utilized in the use of the facility to maximize the
benefit, not only to the campus of South Dakota State University, but also to the City of
Brookings and surrounding Brookings County area.
1. All parties to this agreement recognize that this is a legally binding contract granting
an opportunity for city residents and others to join the facility in the manner to be
established by South Dakota State University, which opportunity is granted and
given in consideration of the payment by the City of Brookings of $500,000 for the
construction of and the equipping and furnishing of a Wellness Center facility at
South Dakota State University, Brookings, South Dakota.
2. All parties to this agreement recognize that the facility being constructed is primarily
intended for the educational, health and wellness needs of the campus of South
Dakota State University, under the direction of the Board of Regents.
3. The administration of South Dakota State University, through the Board of Regents,
shall be responsible for the primary management and maintenance of the facility,
including scheduling, security, maintenance, control of concessions, formulation and
enforcement of building rules, and establishment of fee schedules for use of the
facility.
4. SDSU students will have basic access to the Wellness Center facilities at no additional
cost beyond the mandatory student activity fees all students must pay each semester.
Wellness programs and activities that involve specialized instruction, equipment or
facilities may assess additional costs.
5. SDSU faculty and staff, Brookings residents and others may purchase Wellness
Center memberships at varying cost levels to meet their individual needs.
This Memorandum of Understanding does not constitute a binding
contract concerning the specific use of the facility for any specific events, but it
does impose an obligation and duty upon the State of South Dakota to provide for a right of
access to the facility in the manner contractually established herein.
City Council Packet
July 22, 2008
50
This Memorandum of Understanding for the intergovernmental cooperation and use
of the facility being constructed on the campus of South Dakota State University is executed
by South Dakota State University and is accepted and agreed to by the Board of Regents.
Dated this _______ day of ________________, ___________.
SOUTH DAKOTA STATE UNIVERSITY
By ____________________________
David L. Chicoine, President
CITY OF BROOKINGS, a municipal SOUTH DAKOTA BOARD OF
Corporation of the State of South Dakota REGENTS
By___________________________ By _______________________
City Council Packet
July 22, 2008
59
Other Business.
9. Action on Resolution No. 59-08, annexing the north 940
feet of the west 2340 feet of the SE ¼ of Section 1-
T109N-R50W.
Applicant: City of Brookings
Proposal: Annex Southbrook Ball Diamonds and adjoining land into the city
Background: The city annexed the old landfill and several adjacent parcels in 1994. In
2006, land north of the ball diamonds was annexed for future urban development.
Specifics: This petition involves 50.5 acres directly north of Southbrook Nature Park.
Nineteen acres make up the softball diamonds, and the balance is landfill and a pond
along the west side. It is bordered on three sides by current city limits.
Recommendation: The Planning Commission voted 8 yes and 0 no to
recommend approval of the annexation.
Action: Motion to approve, Request Public Comment, Roll Call
City Manager Recommendation – Approve
City Council Packet
July 22, 2008
60
RESOLUTION NO. 59-08
ANNEXATION
WHEREAS, The City of Brookings is authorized pursuant to South Dakota Codified Law
9-4-1 to annex contiguous territory upon receipt of a written petition, describing said territory
sought to be annexed, signed by not less than three-fourths (3/4) of the legal voters and by the
owner or owners of not less than three-fourths (3/4) of the value of said territory, and
WHEREAS, The City of Brookings desires to annex the following described property, to
wit:
The North 940 feet of the West 2,340 feet of the SE ¼ of Section 1-T109N-R50W
WHEREAS, the aforesaid land is contiguous to the present boundaries of the City of
Brookings, and
WHEREAS The City of Brookings has received a Petition For Annexation of Territory
signed by the owners of greater than three-fourths (3/4) of the value of the aforesaid property and
there being no legal voters residing in said territory, now therefore,
BE IT RESOLVED By the City of Brookings, South Dakota, that the property described
above is hereby annexed to the City of Brookings.
Dated this 22nd day of July, 2008
CITY OF BROOKINGS
___________________________
Scott D. Munsterman, Mayor
ATTEST:
________________________
Shari Thornes, City Clerk
City Council Packet
July 22, 2008
61
Planning Commission
Brookings, South Dakota
July 1, 2008
OFFICIAL MINUTES
Chairperson Greg Fargen called the regular meeting of the City Planning Commission to
order on July 1, 2008 at 7:00 PM in the Council Chamber at City Hall. Members present were
David Kurtz, Al Gregg, Al Heuton, Mike Cameron, Curt Ness, Larry Fjeldos, Stacey Howlett,
and Fargen. John Gustafson was absent. Also present were Gus Chamales, City Engineer Jackie
Lanning, City Planner Dan Hanson, and others.
Item #4 – The City of Brookings has submitted a petition to annex the north 940 feet of the
west 2,340 feet of the SE¼ of Section 1-T109N-R50W
(Kurt/Heuton) Motion to approve the annexation. All present voted aye. MOTION
CARRIED.
SUMMARY OF DISCUSSION
Item #4 – Cameron asked why the softball complex wasn’t annexed years ago. Hanson
explained that certain city ordinances would have impacted the operation of the concessions
stand on Sundays, and urban services such as law enforcement calls would be handled by the
city if it were annexed.
City Council Packet
July 22, 2008
64
Other Business.
10. Action on Resolution No. 60-08, authorizing Change
Order #4 (CCO#4), for 2008-03STI, Downtown
Streetscape Project.
The 2008-04STI Downtown Streetscape Project entails construction work on Main
Avenue from 6th Street to Front Street, which includes new water and sanitary sewer
mains and services, new sidewalk, light poles, trees, curb & gutter, pavement and other
streetscape amenities.
Brookings City staff has proposed changes to the Winter Brothers Underground
contract for the following items:
• Omit Bid Item No. C8 (Safety Bollard)
• Add Bid Item No. C15 (Safety Bollard Concrete Pad)
• Omit Bid Item No. E6 (3-Head Traffic Signal Light -incandescent)
• Omit Bid Item No. E8 (Traffic Signal Controller w/ cabinet – TS2)
• Add Bid Item No. E22 (3-Head Traffic Signal Light – LED)
• Add Bid Item No. E23 (Traffic Signal Controller w/ cabinet – LMD 40)
• Add Bid Item No. E24 (3-M Opticom Pre-emption System)
Change Order No. 4 essentially involves three changes: a change to the safety bollard
design for a cost savings to the project, changes to the design of the traffic signal system
at no cost, and adding a pre-emption system to the 3rd Street & Main Avenue traffic
signal to enhance response services such as Fire and Police response at an increased
cost.
The Brookings City Council discussed the streetscape bids during their April 15, 2008
Council Meeting. The streetscape budget was proposed to the City Council, staff
indicated they would look for opportunities to redesign certain elements of the project
to find a cost savings of approximately $100,000. Included in the project are 74 safety
bollards, which are a miniature post approximately 36” high installed where the
crosswalks meet the street pavement. The original design included a 12” diameter
footing and the bollard was bolted to the footing. The consultants have redesigned the
safety bollard to be bolted to a thickened sidewalk, which offered a substantial cost
savings. Allyn Frerichs, Parks, Recreation and Forestry Director visited Marshall,
Minnesota, where they installed the thickened sidewalk bollard design. Marshall City
staff indicated that the bollard design has worked well. In either design, the bollard is a
break-away design so as not to cause substantial vehicle damage if they are hit. The
bollard cost will be deleted form the project, however, a cost to thicken the sidewalk is
added to the project which will be done by the contractor. The bollard units will be bid
by the City under a separate project and installed by City staff. The bollard units are
City Council Packet
July 22, 2008
65
estimated to cost under $1,000 each. The change in the bollard design will result in a
net cost savings of approximately $100,000.
Change Order No. 4 also includes changes to the traffic signal system. The 3-Head
Traffic Signal Light (incandescent) will be deducted, and a LED 3- Head Traffic Signal
Light will be added to the project at no change in cost. This change will be beneficial
because the LED signal lights use less electricity than incandescent lights. The TS2
Traffic Signal Controller with cabinet will be deducted, and a LMD 40 Traffic Signal
Controller with cabinet will be added to the project at no change in cost. The LMD 40
controller is preferred because it is compatible with the City’s current traffic controller
systems.
Finally, Change Order No. 4 also includes the addition of a 3-M Opticom Pre-emption
system on the 3rd Street & Main Avenue traffic signal. The recently installed 6th Street
signals have this type of pre-emption system, which was installed by the DOT.
Response vehicles with the proper unit can trigger a traffic signal with this system, which
will give all-red lights so the response vehicle can safely maneuver through the
intersection. The pre-emption system will enhance the 3rd Street and Main Avenue
intersection, since most of the response vehicles are initiated from the City Hall
building. The cost for the proposed 3-M Opticom Pre-emption system will be paid
under the Fire Department’s capital budget.
The cost summary for Change Order No. 4 is as follows:
Omit Bid Item No. C8 (Safety Bollard) $-185,000.00
Add Bid Item No. C15 (Safety Bollard Concrete Pad) $3,478.00
Omit Bid Item No. E6 (3-Head Traffic Signal Light -incandescent) $-7,250.00
Omit Bid Item No. E8 (Traffic Signal Controller w/ cabinet – TS2) $16,500.00
Add Bid Item No. E22 (3-Head Traffic Signal Light – LED) $7,250.00
Add Bid Item No. E23 (Traffic Signal Controller w/ cabinet – LMD 40) $16,500.00
Add Bid Item No. E24 (3-M Opticom Pre-emption System) $11,000.00
Total Change Order No. 4 (decrease) $-170,522.00
The total change to the contract price is summarized:
Original Contract Price $3,687,292.50
Decrease from previously approved change orders No. 1, 2 & 3: $69,158.00
Contract Price prior to this change order: $3,618,134.50
Decrease of this change order (No. 4): $170,522.00
Contract Price incorporating this change order:
$3,447,612.50
This resolution will approve Change Order No. 4 and adjust the Winter Brothers
Underground contract for a total decrease of $170,522.00.
Action: Motion to approve, Request Public Comment, Roll Call
City Manager Recommendation – Approve
City Council Packet
July 22, 2008
66
Resolution No. 60-08
A Resolution Authorizing Change Order #4 (CCO#4) 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 4:
Adjust estimated the bid contract for the following bid items at the appropriate bid prices for a
total decrease of $170,522.00 to the contract:
• Omit Bid Item No. C8 (Safety Bollard)
• Add Bid Item No. C15 (Safety Bollard Concrete Pad)
• Omit Bid Item No. E6 (3-Head Traffic Signal Light -incandescent)
• Omit Bid Item No. E8 (Traffic Signal Controller w/ cabinet – TS2)
• Add Bid Item No. E22 (3-Head Traffic Signal Light – LED)
• Add Bid Item No. E23 (Traffic Signal Controller w/ cabinet – LMD 40)
• Add Bid Item No. E24 (3-M Opticom Pre-emption System)
Passed and approved this 22nd day of July 2008.
CITY OF BROOKINGS
_________________________
Scott D. Munsterman, Mayor
ATTEST:
____________________________
Shari Thornes, City Clerk
City Council Packet
July 22, 2008
67
Other Business.
11. Information on HOPE VI Housing Re-hab grant program
and possible project.
Randy Hanson, Mills Construction, has submitted the enclosed request for
the City to consider supporting a HOPE VI Main Street Grant Application.
Mr. Hanson will be at the meeting to present his request and respond to
questions.
Action: Informational
City Council Packet
July 22, 2008
70
Other Business.
12. Action on Resolution No. 62-08, a Resolution Authorizing
the Execution of Real Estate Purchase Agreement.
TO: Mayor and City Council Members
FROM: City Manager Jeff Weldon
RE: Resolutions authorizing property acquisition
Attached are two resolutions authorizing the purchase of separate parcels of residential
property. The purpose of the property acquisition is to preserve the option for
securing land which may be needed for transportation improvements in the area of 22nd
Avenue and Derdall Drive. Each parcel was either presently on the market for sale or
was under a listing agreement and was to soon be offered for sale.
The purchase agreements are contingent upon City Council approval and at the time of
preparing this memo, still were under review by the sellers. It is anticipated they will be
accepted by Tuesday’s meeting.
Each resolution will need to be voted on separately.
Action: Motion to approve, Request Public Comment, Roll Call
City Manager Recommendation – Approve
City Council Packet
July 22, 2008
71
RESOLUTION NO. 62-08
RESOLUTION AUTHORIZING THE EXECUTION
OF REAL ESTATE PURCHASE AGREEMENT
BE IT RESOLVED by the City Council of the City of Brookings, South Dakota as follows:
WHEREAS, the City of Brookings desires to purchase the following described property:
Lot Fifteen (15), Block Twelve (12), of East Acres Second Addition to
the City of Brookings, County of Brookings, State of South Dakota, and
WHEREAS, the property has been offered for sale and the City of Brookings has
received a proposed Purchase Agreement, the terms of 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 acquire title to the above-described property pursuant to a Purchase
Agreement with Jennifer K. Kastner and Greg R. Kastner for future land use needs
of the City of Brookings, South Dakota; and
B. That the Mayor, City Clerk and City Manager are authorized to execute the
documents required to complete this transaction in accordance with this Resolution.
Passed and approved on the 22nd day of July, 2008.
CITY OF BROOKINGS:
ATTEST:
Scott D. Munsterman, Mayor
Shari Thornes, City Clerk
City Council Packet
July 22, 2008
72
Other Business.
13. Action on Resolution No. 64-08, a Resolution Authorizing
the Execution of Real Estate Purchase Agreement.
TO: Mayor and City Council Members
FROM: City Manager Jeff Weldon
RE: Resolutions authorizing property acquisition
Attached are two resolutions authorizing the purchase of separate parcels of residential
property. The purpose of the property acquisition is to preserve the option for
securing land which may be needed for transportation improvements in the area of 22nd
Avenue and Derdall Drive. Each parcel was either presently on the market for sale or
was under a listing agreement and was to soon be offered for sale.
The purchase agreements are contingent upon City Council approval and at the time of
preparing this memo, still were under review by the sellers. It is anticipated they will be
accepted by Tuesday’s meeting.
Each resolution will need to be voted on separately.
Action: Motion to approve, Request Public Comment, Roll Call
City Manager Recommendation – Approve
City Council Packet
July 22, 2008
73
RESOLUTION NO. 64-08
RESOLUTION AUTHORIZING THE EXECUTION
OF REAL ESTATE PURCHASE AGREEMENT
BE IT RESOLVED by the City Council of the City of Brookings, South Dakota as follows:
WHEREAS, the City of Brookings desires to purchase the following described property:
Lot One (1) and the East Ten (10') Feet of Lot Two (2), Block Thirteen
(13), of East Acres Second Addition to the City of Brookings, County of
Brookings, State of South Dakota, and
WHEREAS, the property has been offered for sale and the City of Brookings has
received a proposed Purchase Agreement, the terms of 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 acquire title to the above-described property pursuant to a
Purchase Agreement with Eric Adams, Power of Attorney for Nevorah J. Adams,
for future land use needs of the City of Brookings, South Dakota; and
B. That the Mayor, City Clerk and City Manager are authorized to execute the
documents required to complete this transaction in accordance with this
Resolution.
Passed and approved on the 22nd day of July, 2008.
CITY OF BROOKINGS:
ATTEST:
Scott D. Munsterman, Mayor
Shari Thornes, City Clerk
City Council Packet
July 22, 2008
74
14. Adjourn.