Loading...
HomeMy WebLinkAbout2008_10_28 CC PKTBrookings City Council Tuesday, October 28, 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. Economic Development land discussion. 2. 6:00 p.m. Meeting Review. 3. Council Invites & Obligations 4. City Council member introduction of topics for future discussion. * *Any Council member may request discussion of any issue at a future meeting only. Items can not be added for action at this meeting. A motion and second is required starting the issue, requested outcome, and time. A majority vote is required. 6:00 P.M. REGULAR MEETING 1. Call to order. 2. Pledge of Allegiance. 3. City Clerk records council attendance. 4. Action to approve the following Consent Agenda Items * A. Action to approve the agenda. B. Action on Resolution No. 93-08 authorizing the city manager to sign a Liquor operating agreement renewal for Safari Lounge. 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. Open Forum. 6. SDSU Report. Ordinances – 1st Readings **: ** No vote is taken on the first reading of ordinances. The title of the ordinance is read and the date for the public hearing is announced. 7. Ordinance No. 41-08 - Budget Amendment. Public Hearing: November 18th 8. Ordinance No. 42-08, an ordinance amending the zoning ordinance pertaining to hotels and extended stay hotels. Public Hearing: November 18th City Council Packet October 28, 2008 Other Business: 9. City of Brookings Quarterly Financial Reports. Action: Informational 10. Action to approve a process for the Storm Water Plan and set special meeting date. Action: Motion to approve, request public comment, roll call 11. Consideration of architectural review for vacant building (former First Bank & Trust Building at the corner of 5th St. and 5th Ave.) Action: Motion to approve, request public comment, roll call 12. Tax Increment Financing District Policy Discussion. Action: Informational 13. 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. 2 City Council Packet October 28, 2008 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. Economic Development Land Discussion. This agenda item is a continuation of the discussion regarding the City’s economic development land transfer value process. Al Heuton, BEDC Director, will be at the meeting to respond to questions. Enclosures: o Resolution No. 79-04 (Market Value for Industrial Property) o “Land Request Process” from Brookings Economic Development Corporation 3 City Council Packet October 28, 2008 RESOLUTION NO. 79-04 CITY OF BROOKINGS, STATE OF SOUTH DAKOKTA WHEREAS, the City of Brookings is the owner of certain tracts of real estate in Telkamp Industrial Addition and in Weise Business Park that are available to be sold for private industrial or commercial development; and WHEREAS, it is in the best interest of the City of Brookings and that of prospective developers and others that the estimated market value of said property be determined from time to time to aid in considering the sale price thereof. NOW, THEREFORE, BE AND IT IS HEREBY RESOLVED by the City Council of the City of Brookings, South Dakota as follows: That the estimated market value of properties located in Telkamp Industrial Addition and Weise Business Park, all in the City of Brookings, South Dakota be determined by formal appraisal or informal market evaluation periodically and prior to the actual sale of any of such property. That this resolution shall supersede any and all prior resolutions and ordinances in conflict with or inconsistent with this resolution. Passed and adopted by the City Council of the City of Brookings, South Dakota this 14th day of December 2004. CITY OF BROOKINGS Scott D. Munsterman, Mayor ATTEST: ______________________________ Shari Thornes, Brookings City Clerk 4 City Council Packet October 28, 2008 Land Request Process (From Al Heuton, BEDC – 06/05/08) Requests to purchase city owned property in Brookings industrial and commercial parks are processed through Brookings Economic Development Corporation (BEDC). The City must either transfer land through BEDC or conduct a sealed bid process open and advertised to the general public. The request process generally follows the steps described below: 1. Business approaches BEDC with interest in acquiring land. 2. BEDC will assist the industry/business with collection of information required to prepare a land request proposal and to complete an incentive scorecard, if a land incentive is requested. o The request proposal outlines the case for sale of land to the business. o The scorecard provides information that allows BEDC to complete a benefit/cost analysis of the projects economic impact on the community. o The benefit/cost analysis and the request proposal assist the city council in determining the value of land incentive, if any, that may be provided. 3. The completed land request proposal is reviewed with the business to ensure no proprietary information is presented in a public forum. Company names and/or details that might allow the company to be recognized will be removed from the presentation to the city council upon request of the business. 4. When the request proposal is completed BEDC will contact the city clerk and city manager to place the request on the next available city council agenda. 5. The land request is a request from BEDC, not the business. Therefore, BEDC will present the request to the city council. The business is welcome to participate in the request presentation if desired. 6. Upon approval of the request, or amended request, the city attorney will prepare the necessary land closing and transfer documents and conduct the sale. BEDC will prepare a Memorandum of Understanding between BEDC and the business regarding details of the sale. (BEDC generally requires the business to cover applicable closing costs. If desired by the business, the business may purchase title insurance at the businesses expense. 7. After approval of the land transfer resolution from the City to BEDC there is a 20-day referendum waiting period that must be observed before the land closing can occur. 5 City Council Packet October 28, 2008 Land Request – General Outline Following is a general narrative outline BEDC will use to make the land request to the City Council. Project Request: Brief summary of the request: location and number of acres of land, purpose of the project and requested land price. Project History: Summary of company history in the community – facility type, headquarters location, product/service type, years in community, current employment, wage summary, occupations, employee place of residence, etc. Proposed Project: General description of business/industry growth projection, number of jobs to be created/retained, timetable, capital investment, etc. Economic Impact: A chart similar to the following is used to provide a general benefit/cost analysis. Information requested to complete the incentive scorecard is used to determine the economic impact. Economic Impact Summary Benefit/Cost Description Benefit to Community Cost to Community Land – Initial Land Offering $61,000.00 Land – Current request $16,650 Road Improvement $102,000 Job Creation 250 total employees/ approx. 200 FTE’s Average Wage $10-$13/hour range Estimated Annual Payroll $3,750,000 Estimated Payroll to Brookings County residents $2,550,000 Net Annual Benefit $2,620,260 $179,650 Benefit at 5 years $13,101,260 $179,650 6 City Council Packet October 28, 2008 7 Impact Assessment Possible Points Score Total FTE Count (est. total payroll ____________) Under 10 2 10 to 20 4 21 to 50 8 Over 50 10 Non-Management Avg. Pay Rate (FTE _____ est. payroll____________) Under $8 2 $8 to $10 4 $9 to $11 6 $11 to $13 8 Over $13 10 25k to 50k 4 51k to 75k 8 Over 75k 10 High 1 Medium 5 Low 10 Benefit Package Health Care Retirement Volatile 0 Moderate 5 Stable 10 Start-up 5 Satellite 5 Relocation (incl. HQ) 10 Existing Industry Retention or Expansion 10 <200k 2 200k-500k 4 500k-1M 6 1M – 2M 8 Over 2M 10 Value of Construction Phase & Community Impact 0 to 10 Sales Tax Generation 0 to 10 SDSU Alliance/Graduate Retention 0 to 10 Potential for Spin-off/Supplier Firms 0 to 10 Diversifies Economic Base 0 to 10 Total Score 130 Incentive Scorecard Firm: Employment Impact Competition for Existing Labor Pool Management Avg. Annual Salary (FTE _____ est. payroll ___________) Industry/Firm Stability Nature of Firm’s Brookings Location Real Estate Tax Generation (assessed value) 0 to 10 Industry/Firm Characteristics Community Impact City Council Packet October 28, 2008 Information needed to complete the scorecard includes: • Total number of full-time employee equivalents (FTE’s) and total payroll. • Number of Non-management FTE’s and average wage. • Number of Management FTE’s and average wage. • Description of the benefit package provide – health care, retirement, other. • Value of new construction. • Value of taxable equipment to be purchased. • Use of SDSU students or graduates in the labor force. • Supply or value-added relationships with other community business or industry. It would also be helpful to have some information depicting the company’s involvement in the community. As previously mentioned, BEDC staff are available to assist the business with preparation of this information and will prepare the narrative for presentation to the city council. Please contact BEDC with any questions or assistance needs. Al Heuton, Executive Director Brookings Economic Development Corporation P.O. Box 431 Brookings, SD 57006 Phone: 605-697-8103 FAX: 605-697-8109 e-mail: bedc@brookings.net 8 City Council Packet October 28, 2008 Exhibit “A” ________________________________________ Property Description: Grantee agrees to utilize the above-described property solely for the purposes of development of a manufacturing facility for _______. In the event Grantee does not develop the property within three (3) years of the recording date of this Warranty Deed, Grantee, upon request of the Brookings Economic Development Corporation, shall re-convey said property free from liens and encumbrances to the Brookings Economic Development Corporation for consideration not to exceed the original purchase price of the above described property. Should Grantee desire to subdivide and sell all or part of any undeveloped portions of the property at a later date, Grantee shall notify Brookings Economic Development Corporation and because the undeveloped land originally was conveyed to _______ at a reduced price, Grantee agrees to reimburse the Brookings Economic Development Corporation for the value of the land, based on its undeveloped condition, in the amount of $______ per acre, with the price to be pro-rated based upon the actual number of acres sold. Should Grantee desire to sell the developed property within ten (10) years of the recording date, Grantee shall notify Brookings Economic Development Corporation and because the developed land originally was conveyed to _______ at a reduced price, Grantee agrees to reimburse the Brookings Economic Development Corporation for the value of the land as follows: a. $______ per acre if sold during years one (1) to five (5) following the date of closing. b. $______ per acre if sold during year six (6) following the date of closing. c. $______ per acre if sold during year seven (7) following the date of closing. d. $______ per acre if sold during year eight (8) following the date of closing. e. $______ per acre if sold during year nine (9) following the date of closing. f. $______ per acre of sold during year ten (10) following the date of closing. Grantor agrees to permit Grantee’s lender to have priority over the Covenants and Restrictions contained herein and, accordingly, Grantor has agreed to execute a subordination agreement, however the Grantor and Grantee agree the foregoing Covenants and Restrictions shall run with the land and be binding on Grantee’s successors and assigns. 9 City Council Packet October 28, 2008 Land Terms/Development Cost/Incentives/Buyer Performance Land Purchase Cost Telkamp & Weise = $2,500/acre Svennes = $18,000/acre Land Development Cost For a 41’ wide street (32nd Ave) $200/foot (today’s cost) for street including storm sewer, paving, striping $30/foot – water main $30/foot – sewer main City Land Sale Policy $1/SF – negotiable Note: City land investment cost varies as does infrastructure investment. For example, land costs vary from $2,500 per acre to $18,000 acre. On some parcels the City paid to install infrastructure (which should be built into land sale) and on some parcels BMU installed the infrastructure in which case they charge a foot frontage or area fee. Storm sewer, if installed, is a city cost. Roads are generally a city cost, but in some cases (portions of Prince Drive and 32nd Avenue) grants have been obtained to pay for up to 80% of the road infrastructure cost. Land Incentive Note: In two cases over the last few years communities competing for relocation or expansion projects of Brookings industries have offered free land and utilities to the door. Buyer Performance: All projects are evaluated based upon a capital investment and job creation economic impact versus city investment in property. The information collected during the application process is provided by the business. Past policy has not required verification of capital investment cost or job creation. This could be done with penalties for non-performance attached if desired. (However, please keep in mind that a general policy may place us in a difficult competitive position for projects.) 10 City Council Packet October 28, 2008 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 2. 6:00 p.m. Meeting Review. 1. Call to order. 2. Pledge of Allegiance. 3. City Clerk records council attendance. 4. Action to approve the following Consent Agenda Items * A. Action to approve the agenda. B. Action on Resolution No. 93-08 authorizing the city manager to sign a Liquor operating agreement renewal for Safari Lounge. 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. Open Forum. 6. SDSU Report. Ordinances – 1st Readings **: 7. Ordinance No. 41-08 - Budget Amendment. Public Hearing: November 18th 8. Ordinance No. 42-08, an ordinance amending the zoning ordinance pertaining to hotels and extended stay hotels. Public Hearing: November 18th ** 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. Other Business: 9. City of Brookings Quarterly Financial Reports. Action: Informational 10. Action to approve a process for the Storm Water Plan and set special meeting date. Action: Motion to approve, request public comment, roll call 11. Consideration of architectural review for vacant building (former First Bank & Trust Building at the corner of 5th St. and 5th Ave.) Action: Motion to approve, request public comment, roll call 12. Tax Increment Financing District Policy Discussion. Action: Informational 13. Adjourn. 11 City Council Packet October 28, 2008 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 3. Council Invites & Obligations October 28th Innovation Campus Tour 4:00 pm Innovation Campus October 28th City Council 5 & 6 pm City Hall October 30 Volunteer Appreciation Luncheon 12:00 p.m. Swiftel Center November 4th Election Day NO COUNCIL MEETING November 5th Flu Shots November 11th NO COUNCIL MEETING Nov. 11-15 National League of Cities Congress of Cities Orlando World Center Marriott Orlando, Florida November 18th City Council Meeting 5 & 6 pm City Hall Nov. 18 & 19, 2008 SD Housing Conference Pierre Ramkota November 21st City Employee Recognition Event Day’s Inn November 25th NO COUNCIL MEETING December 9th City Council Meeting 5 & 6 pm City Hall December 16th City Council Meeting 5 & 6 pm City Hall January 13th City Council Meeting 5 & 6 pm City Hall January 27th City Council Meeting 5 & 6 pm City Hall 12 City Council Packet October 28, 2008 5:00 P.M. WORK SESSION ** Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 4. City Council member introduction of topics for future discussion*. *Any Council member may request discussion of any issue at a future meeting only. Items can not be added for action at this meeting. A motion and second is required starting the issue, requested outcome, and time. A majority vote is required. 13 City Council Packet October 28, 2008 6:00 p.m. Council 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. Action on Resolution No. 93-08 authorizing the city manager to sign a Liquor operating agreement renewal for Safari Lounge. 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. Open Forum. 6. SDSU Report. Ordinances – 1st Readings **: 7. Ordinance No. 41-08 - Budget Amendment. Public Hearing: November 18th 8. Ordinance No. 42-08, an ordinance amending the zoning ordinance pertaining to hotels and extended stay hotels. Public Hearing: November 18th ** 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. Other Business: 9. City of Brookings Quarterly Financial Reports. Action: Informational 10. Action to approve a process for the Storm Water Plan and set special meeting date. Action: Motion to approve, request public comment, roll call 11. Consideration of architectural review for vacant building (former First Bank & Trust Building at the corner of 5th St. and 5th Ave.) Action: Motion to approve, request public comment, roll call 12. Tax Increment Financing District Policy Discussion. Action: Informational 13. Adjourn. 14 City Council Packet October 28, 2008 CONSENT AGENDA #4 A. Action to approve the agenda. B. Action on Resolution No. 93-08 authorizing the City Manager to sign a Liquor Operating Agreement Renewal for Safari Lounge. Action: Motion to approve, request public comment, roll call City Manager Recommendation - Approve 15 City Council Packet October 28, 2008 CONSENT AGENDA #4 4B. Action on Resolution No. 93-08, authorizing the City Manager to sign a Liquor Operating Agreement Renewal for Safari Lounge. The City of Brookings enters into operating agreements for a ten-year period with a renewal at 5 years. The operating agreement for the Safari Lounge, located at 421 Main Ave., is up for renewal. Resolution No. 93-08 would allow the City Manager to enter into the remaining five years of the agreement. Resolution No. 93-08 Safari Lounge Operating Agreement Renewal BE IT RESOLVED by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Renewal Agreement for the Operating Liquor Management Agreement between the City of Brookings and Safari Lounge for the purpose of a liquor manager to operate the on-sale establishment or business for and on behalf of the City of Brookings at 421 Main Ave., also known as the Safari Lounge. BE IT FURTHER RESOLVED that the City Manager be authorized to execute the Agreement on behalf of the City, which shall be for a period of five (5) years. Passed and approved this 28th day of October 2008. CITY OF BROOKINGS Scott D. Munsterman, Mayor ATTEST: Shari Thornes, City Clerk 16 City Council Packet October 28, 2008 Presentations/Reports/Special Requests: 5. INVITATION FOR A CITIZEN TO SCHEDULE TIME ON THE COUNCIL AGENDA FOR AN ISSUE NOT LISTED. At this time, any member of the public may request time on the agenda for an item not listed. Items are typically scheduled for the end of the meeting; however, very brief announcements or invitations will be allowed at this time. 6. SDSU REPORT. 17 City Council Packet October 28, 2008 Ordinances – 1st Readings 7. Ordinance No. 41-08 – Budget Amendment. Public Hearing: November 18th To: City Council From: Jeff Weldon, City Manager RE: 2008 Budget Amendment #4 The budget amendment is recognizing additional revenues and expenses which occurred during the year. We are projecting adding $198,287 to the reserves. • The non-departmental revenues amendment is addressing both the budgeted revenues we will not attain and the revenues we will exceed. Two areas where budgeted revenues will not be met are bank franchise tax and interest income. Both of these items are related to the economy. You will see in all funds the sales and use tax revenue budgeted will be exceeded. We are proposing the use of City Manager Contingency and matching grant money to pay for the remodeling for an additional office. We are recognizing the purchase of the two houses on Derdall Drive. • We are requesting $20,000 additional dollars to remodel an office and purchase office furniture for the new position authorized in the 2009 budget. We budgeted for remodeling expenses in 2009 however we would like to have the office remodeling done and furniture installed prior to hiring the Community Developer. • Within the Police Department Budget we are recognizing the insurance reimbursement for a patrol car demolished in an accident of $14,000. We are recommending this money be placed into a reserve for 2009. • Within the Fire Department Budget we are recognizing the Insurance Premium Revenue and the expenditure for volunteer firemen retirement. There was a need to replace fire hose and the washer unit at City Hall. • Within the Recreation Budget we are recognizing additional income for reimbursement of expenses by BISA and others. We are also recognizing the additional temporary wages. Part of the increase is due to summer ice and part is due to staffing needs at the pool this summer. • Within the Parks Budget we are recognizing additional donations and reimbursement by BISA for utilities for summer ice. 18 City Council Packet October 28, 2008 • Within the Non-departmental Budget we are recognizing additional or increased subsidies approved by the Council during the year. We are also requesting an increase in the transfer to the Swiftel Center for the cost of purchasing kitchen equipment. • The Special Revenue Funds amendment is recognizing the additional revenue from the sales and uses tax and interest income. Rita is also correcting previous ordinances. The ordinance for Streetscape contained a one-sided entry for the transfer. We are reducing the transfer out of sales and use tax for lease payments for equipment to zero as the transfer payments are budgeted within the general fund. I will be bringing to you at the November 18th meeting new resolutions setting up reserves for cash flow and reserves for capital equipment and capital projects. 19 City Council Packet October 28, 2008 ORDINANCE NO. 41-08 AN ORDINANCE ENTITLED “AN ORDINANCE AUTHORIZING A SUPPLEMENTAL APPROPRIATION TO THE 2008 BUDGET FOR THE PURPOSE OF PROVIDING FOR ADDITIONAL FUNDS FOR THE OPERATION OF THE CITY. BE IT ORDAINED BY THE CITY OF BROOKINGS, SOUTH DAKOTA: WHEREAS, there is a need to adjust the budget to respond to the actual revenues and expenditures in fiscal year 2008, and AND WHEREAS THE CITY CHARTER allows that “if during the fiscal year the City Manager certifies that there are available for appropriation revenues in excess of those estimated in the budget, the City Council by ordinance may make supplemental appropriations for the year up to the amount of such excess”. This Ordinance is declared to be for the support of the municipal government and its existing public institutions and it shall be in full force and effect after its passage and publication. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL that the City Manager is authorized to make the following budget adjustments to the 2008 budget: Budget Amendment #4 Revenue Expense Non-departmental 641,930 366,535 Legislative (19,339) Financial (4,200) Public Safety 62,175 76,126 Public Works 51,150 23,600 Culture & Recreation 21,329 106,300 Other-General Gov Buildings 29,275 Total General Government 776,584 578,297 Retail Develop Invest Fund 3,000 25% Sales & Use Tax 199,250 (255,447) 75% Public Improvement/Ord 501,000 489,560 Swiftel Center 38,785 3rd B Sales & Use 63,000 Library Fines 10,000 Library Donations 10,000 Total Special Revenue 802,035 257,113 NOW, THEREFORE, BE IT RESOLVED that the 2008 Budget is amended as described above. Passed and approved this 18th of November, 2008. FIRST READING: October 28, 2008 SECOND READING: November 18, 2008 PUBLISHED: November 21, 2008 CITY OF BROOKINGS _________________________ Scott D. Munsterman, Mayor ATTEST ____________________________ Shari Thornes, City Clerk 20 2008 2008 2008 2008 Adopted Amendment Amendment Amended Non-Departmental Revenue Expense Budget 101-000-4-11-09 Bank Franchise Fees 85,000 (22,946)62,054 101-000-4-113-00 1st Penny Sales & Use Tax 4,140,850 668,726 4,809,576 101-000-4-335-04 State/Hwy & Bridge Tax 200,000 45,000 245,000 101-000-4-338-01 County/Hwy & Bridge Tax 65,000 (8,850)56,150 101-000-4-661-01 Interest Income 200,000 (75,000)125,000 101-000-4-661-01 Money Market Interest Income 50,000 25,000 75,000 101-000-4-669-00 Franchise Fees 90,000 10,000 100,000 101-405-5-856.66 Matching Grant Expense 10,000 (10,000)0 101-405-5-856-96 City Manager Contingency 10,000 (10,000)0 101-405-5-910-00 Land 0 321,000 321,000 Total Non-Departmental 641,930 301,000 Mayor/Council 101-401-5-426-01 Supplies 2,500 500 3,000 Total Mayor/Council 0 500 City Clerk 101-403-5-101-00 Regular Pay 113,818 4,000 117,818 101-403-5-120-00 FICA 8,708 325 9,033 101-403-5-121-09 Retirement 6,830 250 7,080 101-403-5-123-00 Group Insurance 37,822 (4,500)33,322 101-403-5-425-01 Maintenance Office Equipment 2,750 755 3,505 Total City Clerk 0 830 City Manager 101-406-5-123-00 Group Insurance 12,639 (3,500)9,139 101-406-5-429-09 Miscellaneous 0 6,831 6,831 101-406-5-920-00 Furniture 4,000 (4,000)0 Total City Manager 0 (669) Finance 101-415-5-427-01 Travel & Lodging 6,000 2,100 8,100 101-415-5-427-02 Registration & Training 5,000 (2,100)2,900 Total Finance 0 0 Information Technologies 101-416-5-123-00 Group Insurance 39,778 (4,200)35,578 Total Finance 0 (4,200) General Government Buildings 101-417-5-425-05 Equipment-Generator 0 4,000 4,000 101-417-5-428-02 Electric and Water 21,390 5,000 26,390 101-417-5-911-00 Building 46,500 10,275 101-417-5-911-00 Building 15,000 101-417-5-911-00 Building-PD Office (5,000)66,775 Total General Government Buildings 0 29,275 Community Development 101-418-4-662-01 Rental Income 0 6,750 6,750 101-418-5-425-05 Maintenance Building 0 1,000 1,000 101-418-5-428-02 Electric and Water 200 200 101-418-5-920-00 Furniture 0 5,000 5,000 Total Community Development 6,750 6,200 Engineering 101-419-4-221-06 Housing Licenses 8,000 9,500 17,500 Total Engineering 9,500 0 Police Department 101-421-4-334-09 Grants 20,000 (6,500)13,500 101-421-4-442-09 Miscellaneous 1,400 14,000 15,400 101-421-5-123-00 Group Insurance 362,060 (21,500)340,560 101-421-5-425-02 Maintenance Motor Vehicles 12,998 5,000 17,998 101-421-5-426-10 Gasoline 33,000 20,000 53,000 Total Police Department 7,500 3,500 Fire Department 101-422-4-335-06 Fire Insurance Premium 0 54,675 54,675 101-422-5-121-10 Retirement/Volunteer Firemen 45,000 54,676 99,676 101-422-5-130-00 Workman's Compensation 10,444 (2,496)7,948 101-422-5-421-00 Insurance 16,835 3,696 20,531 101-422-5-426-10 Gasoline 8,000 4,000 12,000 101-422-5-429-06 Fire Hose Replacement 2,500 6,600 9,100 101-422-5-920-00 Washer Unit at City hall 0 4,150 4,150 Total Fire Department 54,675 70,626 Emergency/Disaster 101-426-5-428-08 Sirens 500 2,000 2,500 Total Emergency/Disaster 0 2,000 Street Department 101-431-4-334-09 Grants 0 9,900 9,900 101-431-4-664-00 Sale of Fixed Asset 0 25,000 25,000 101-431-5-123-00 Group Insurance 94,735 11,000 105,735 101-431-5-426-19 Bituminous Material 50,000 2,700 52,700 101-431-5-426-24 Street Signals 21,000 1,200 22,200 101-431-5-426-22 Salt & Calcium Chloride 28,000 2,500 30,500 Total Street 34,900 17,400 Recreation 101-451-4-446-04 Reimbursement 40,000 28,000 68,000 101-451-5-101-00 Regular Pay 184,080 (11,000)173,080 101-451-5-101-01 Temporary Pay 346,125 37,000 383,125 101-451-5-101-06 Car Allowance 3,225 (750)2,475 101-451-5-123-00 Group Insurance 34,413 (3,000)31,413 Total Recreation 28,000 22,250 Parks 101-452-4-446-10 Donations 0 28,679 28,679 101-452-4-446-01 Golf Fees 265,000 4,800 269,800 101-452-4-446-08 Reimbursed Expenses 3,000 19,850 22,850 101-452-4-664-00 Sale of Land/pt of Moriarity Park Development 60,000 (60,000)0 101-452-5-101-00 Regular Pay 456,018 10,700 466,718 101-452-5-101-06 Car Allowance 1,050 1,050 2,100 101-452-5-123-00 Group Insurance 110,196 13,000 123,196 101-452-5-422-04 Contracting services/Pro 60,000 7,500 67,500 101-452-5-425-05 Building Maintenance 7,500 9,000 16,500 101-452-5-426-10 Gasoline 30,000 11,000 41,000 101-452-5-426-13 Diesel 11,000 14,000 25,000 101-452-5-428-02 Electric & Water 135,000 10,000 145,000 101-452-5-428-03 Heat 60,000 27,000 87,000 Total Parks (6,671)103,250 Forestry 101-454-5-123-00 Group Insurance 49,962 (20,000)29,962 Total Forestry 0 (20,000) Library 101-455-5-123-00 Group Insurance 78,499 (12,000)66,499 101-455-5-425-04 Maintenance Equipment 8,650 2,800 11,450 101-455-5-428-02 Electric & Water 47,400 10,000 57,400 Total Library 0 800 227-000-5-899-99 Total Library Donations 0 10,000 284-000-4-113-01 Total 3rd Penny Sales Tax 63,000 0 Non-Departmental 101-495-5-856-68 Other-Brookings Area Habitat 0 500 500 101-495-5-856-05 Other Transportation 55,000 (50,000)5,000 101-495-5-856-07 Brookings Area Transit Authority 0 56,250 56,250 101-495-7-899-03 Transfer out to Swiftel Center 309,407 38,785 348,192 Total Non-Departmental 0 45,535 Total General Fund 776,584 578,297 Total Net Revenue Added 776,584 578,297 198,287 Retail Development Investment Fund 211-000-5-428-02 Electric and Water 2,400 1,000 3,400 211-000-5-428-03 Heat 6,800 2,000 8,800 Total Retail Development Investment 0 3,000 25% Public Improvement/Sales Tax 212-000-4-113-02 Sales & Use Tax 1,100,000 167,000 1,267,000 212-000-4-661-00 Interest Income 4,000 17,250 21,250 212-000-4-661-01 Money Market Interest Income 0 15,000 15,000 212-000-7-899-21 Transfer out Lease Payment GF 255,447 (255,447)0 Total 25% Public Improvement 199,250 (255,447) 75% Public Improvement/Sales Tax 213-000-4-113-02 Sales & Use Tax 3,000,000 501,000 3,501,000 213-000-7-899-25 Transfer out to Streetscape 1,000,000 489,560 1,489,560 Total 75% Public Improvement 501,000 489,560 Swiftel Center 224-000-6-700-00 Transfer in General Fund 309,407 38,785 348,192 Total Library Fines 38,785 Library Fines 226-000-5-899-99 Other Expenses 35,000 10,000 45,000 Total Library Fines 0 10,000 Library Donations Other Expenses 30,000 10,000 40,000 3rd Penny Sales Tax Sales & Use Tax 525,000 63,000 588,000 City Council Packet October 28, 2008 Ordinances – 1st Readings 8. Ordinance No. 42-08, an Ordinance amending the zoning ordinance pertaining to hotels and extended stay hotels. Public Hearing: November 18th Proposal: Create a new use category Background: Extended-stay lodging has been around for many years. It originally made up a very small fraction of the hotel industry by catering primarily to upscale guests. This began to change in the late 1980s when mid-level and economy versions emerged. By the mid 1990s, major companies such as Marriott were getting into the market. Today, the Extended Stay America hotel chain is worth billions and has hundreds of hotels. An extended stay hotel is a hybrid between a hotel and an apartment. Each guest room has a kitchen, which is stocked, in addition to the standard hotel room amenities. Housekeeping services are limited, and laundry services are often available within the building. Specifics: The ordinance changes involve creating uniformity within the ordinance by using only “hotel” and dropping “motel” in all zones except the B-4 and adding an Extended Stay Hotel in certain zones. The 1,000 square foot/unit standard is currently in the ordinance for hotels in certain zones and has been added to the extended stay hotel use as a density control measure. A review of similar ordinances from other communities indicated that an extended stay was defined as a 30 to 210 day stay. The 180-day time limit was considered reasonable. Recommendation: The Planning Commission voted 5 yes and 0 no to recommend approval of the amendments. 24 City Council Packet October 28, 2008 ORDINANCE NO. 42-08 An ordinance amending the zoning ordinance of the City of Brookings and pertaining to Extended Stay Hotels for the purposes of administration of the zoning ordinance Be it ordained by the governing body of the City of Brookings, South Dakota: that Articles I, IV and VI of Chapter 94, Zoning, shall be amended as follows: Article I. In General Sec. 94-1. Definitions Hotel, Extended Stay: A building consisting of suites or a group of rooms comprising a self- contained unit with provisions for living, eating, kitchen facilities, bathroom facilities and sleeping rooms that is constructed, maintained, and advertised to be a place where temporary residence is offered for pay to guests for a maximum of 180 days. Article IV. District Regulations Division 1. Generally Section 94-131. Business B-1 Central District (c) Permitted Uses 12. Extended Stay Hotel Section 94-134. Business B-3 Heavy District ( c) Permitted Uses 3. Hotel (d) Permitted Special Uses 9. Motel Hotel 13. Extended Stay Hotel a. A minimum lot area of 1,000 square feet shall be provided for each sleeping room or suite. Section 94-135. Business B-4 Highway District (d) Permitted Special Use 8. Motel or Hotel 11. Extended Stay Hotel a. A minimum lot area of 1,000 square feet shall be provided for each sleeping room or suite Article VI. Supplemental Regulations Division 4. Parking, Stacking, and Loading 25 City Council Packet October 28, 2008 Section 94-433. Off-Street Parking Requirements ( c)16a. Hotel, Extended Stay: One (1) space for each suite or unit and one (1) for each employee Any or all ordinances in conflict herewith are hereby repealed. FIRST READING: October 28, 2008 SECOND READING: November 18, 2008 PUBLISHED: CITY OF BROOKINGS, SOUTH DAKOTA Scott D. Munsterman, Mayor ATTEST: Shari Thornes, City Clerk 26 City Council Packet October 28, 2008 Planning Commission Brookings, South Dakota October 7, 2008 OFFICIAL MINUTES Chairperson Greg Fargen called the regular meeting of the City Planning Commission to order on October 7, 2008 at 7:00 PM in the Council Chamber at City Hall. Members present were Curt Ness, Larry Fjeldos, Stacey Howlett, John Gustafson, and Fargen. Mike Cameron, David Kurtz, Al Heuton, and Al Gregg were absent. Also present were John Mills, City Engineer Jackie Lanning, City Planner Dan Hanson, and others. Item #5 – The City of Brookings has submitted zoning ordinance amendments pertaining to hotels. (Fjeldos/Ness) Motion to approve the amendments. All present voted aye. MOTION CARRIED. SUMMARY OF DISCUSSION Item #5 – Hanson summarized the changes to the ordinances. They included a new definition, modified terminology regarding hotel and motel, unit/acre density limits and parking requirements. Extended stay hotels were popular throughout the United States and regulations varied among communities. The maximum stay ranged from 30 – 210 days per calendar year. A 180 day maximum was proposed for the ordinance. Lance Park, owner of the Days Inn, felt there was a need for extended stay lodging in Brookings. Seasonal workers and people waiting for houses to be built or to buy could use an extended stay hotel. 30 City Council Packet October 28, 2008 Other Business: 9. City of Brookings Quarterly Financial Reports. Rita Thompson, Brookings Finance Manager, will present the City’s Quarterly Financial Reports and respond to questions. Action: Informational 31 Balance Sheet(unaudited)September, 30 2008GeneralRetail25% Sales75% SalesE‐911SwiftelLibraryLibraryIndustrialSpecialStorm3rdFundDevelopmentTaxTaxCenterFinesDonationParkAssessmentDrainagePenny TaxCash4,177,607       3,478              1,415,683 4,733,365   (20,609)    159,127     14,916        21,981   (238,290)  389,905      355,942 175,967   Restricted/Reserved Cash1,865,025       314,500          151,916    2,192,673   ‐               ‐              127,556    45,000        49,703   62,700      Other Assets274,890          ‐                  ‐            128,407     11,105        82,768   1,487,450 85,712        18,733   ‐             Total Assets6,317,522       317,978          1,567,599 6,926,038   (20,609)    287,534     26,021        104,749 1,376,716 520,617      424,378 238,667   Liabilities59,660            ‐                  ‐            ‐               ‐            278,497     ‐              ‐         ‐            161,264      3,393     18,750      Reserved/Restricted Fund Bal5,079,221       314,500          1,075,500 2,425,000   ‐            ‐               ‐              ‐         1,925,569 120,000      480,000 ‐             Unreserved Fund Balance1,178,641       3,478              492,099    4,001,038   (20,609)    9,037          26,021        104,749 (548,853)  239,353      (59,015)  219,917   Total Fund Balance6,257,862       317,978          1,567,599 6,426,038   (20,609)    9,037          26,021        104,749 1,376,716 359,353      420,985 219,917   Total Liab and Fund Balance6,317,522       317,978          1,567,599 6,426,038   (20,609)    287,534     26,021        104,749 1,376,716 520,617      424,378 238,667   StreetscapeLiquorAirportSolid WasteLandfillResearchProjectStoreCollections& Tech CtrCash769,044          562,479    (37,337)       343,919   869,889     79,342        Restricted/Reserved Cash‐                  ‐            ‐               ‐            1,746,236  ‐              Other Assets‐                  1,126,774 3,321,754   434,472   3,574,632  1,806,284   Total Assets769,044          1,689,253 3,284,417   778,391   6,190,757  1,885,626   Liabilities196,657          113,247    116,266      53,398      670,891     632             Reserved/Restricted Fund Bal‐                  ‐            ‐               ‐            861,429     ‐              Unreserved Fund Balance572,387          1,576,006 3,168,151   724,993   4,658,437  1,884,994   Total Fund Balance572,387          1,576,006 3,168,151   724,993   5,519,866  1,884,994   Total Liab and Fund Balance769,044          1,689,253 3,284,417   778,391   6,190,757  1,885,626    City of BrookingsBalance Sheet(unaudited)September, 30 2007GeneralRetail25% Sales75% SalesE‐911SwiftelLibraryLibraryIndustrialSpecialStorm3rdFundDevelopmentTaxTaxCenterFinesDonationParkAssessmentDrainagePenny TaxCash5,174,452        11,604             1,512,9594,998,217     (95,194)    25,131       19,521       14,816   31,308      316,477      482,932181,080   Restricted/Reserved Cash‐                    314,500           ‐            1,742,340     ‐            ‐              ‐             ‐         ‐            ‐              ‐         ‐           Other Assets1,113,343        ‐                   ‐            11,223          ‐            277,795     10,453       95,772   1,111,582131,588      3,370     ‐           Total Assets6,287,795        326,104           1,512,9596,751,780     (95,194)    302,926     29,974       110,5881,142,890448,065      486,302181,080   Liabilities22,046              ‐                   ‐            ‐                 1,026        169,853     ‐             ‐         ‐            131,588      794        ‐           Reserved/Restricted Fund Bal422,854            314,500           ‐            1,775,000     ‐            ‐              ‐             ‐         1,014,734‐              ‐         ‐           Unreserved Fund Balance5,842,895        11,604             1,512,9594,976,780     (96,220)    133,073     29,974       110,558125,156    316,477      485,508181,080   Total Fund Balance6,265,749        326,104           1,512,9596,751,780     (96,220)    133,073     29,974       110,5581,139,890316,477      485,508181,080   Total Liab and Fund Balance6,287,795        326,104           1,512,9596,751,780     (95,194)    302,926     29,974       110,5581,139,890448,065      486,302181,080   StreetscapeLiquorAirportSolid WasteLandfillResearchProjectStoreCollections& Tech CtrCash‐                   536,425    (273,074)       240,145    592,074     84,223       Restricted/Reserved Cash‐                   ‐            ‐                 ‐            1,734,671  ‐             Other Assets‐                   1,302,5263,150,791     503,369    3,578,771  1,858,206  Total Assets‐                   1,838,9512,877,717     743,514    5,905,516  1,942,429  Liabilities‐                   2,250        146,957        43,514      750,715     20,000       Reserved/Restricted Fund Bal‐                   ‐            ‐                 ‐            716,509     ‐             Unreserved Fund Balance‐                   1,836,7012,730,760     700,000    4,438,292  1,922,429  Total Fund Balance‐                   1,836,7012,730,760     700,000    5,154,801  1,922,429  Total Liab and Fund Balance‐                   1,838,9512,877,717     743,514    5,905,516  1,942,429   2008 Jan-Sept % of Bud 2008 Jan-Sept % of Bud Dept Description Budgeted Actual Received Budgeted Actual Used 000 General Revenues 10,749,777 7,252,914 67.47% - - N/A 401 Mayor & Council - - N/A 76,015 61,799 81.30% 402 Human Rights 500 - 0.00% 4,200 1,553 36.98% 403 City Clerk 6,000 446 7.43% 227,287 157,810 69.43% 404 Disability Committee - - N/A 3,020 2,543 84.21% 405 Non-Departmental - - N/A 250,271 366,601 146.48% 406 City Manager - - N/A 161,087 119,363 74.10% 412 City Attorney - - N/A 67,000 48,858 72.92% 414 Human Resources 2,000 1,482 74.10% 182,797 119,139 65.18% 415 Finance 30,150 10,959 36.35% 384,350 290,550 75.60% 416 IT 1,000 1,290 129.00% 98,060 46,485 47.40% 417 Government Buildings - - N/A 151,064 124,312 82.29% 419 Engineering 166,650 136,083 81.66% 606,310 431,438 71.16% 421 Police Services 100,700 63,047 62.61% 2,308,534 1,679,514 72.75% 422 Fire Protection Services - 55,154 N/A 711,567 568,074 79.83% 426 Emergency/Disaster - - N/A 2,750 4,338 157.75% 428 Traffic Safety 4,200 5,333 126.98% 26,508 13,441 50.71% 431 Street 26,000 23,072 88.74% 2,031,823 1,544,421 76.01% 442 Animal Control 28,250 22,322 79.02% 83,950 61,215 72.92% 451 Recreation 320,000 304,744 95.23% 752,323 662,201 88.02% 452 Parks 426,500 381,766 89.51% 1,794,844 1,441,343 80.30% 454 Forestry 20,000 1,223 6.12% 376,953 263,360 69.87% 455 Library 27,052 17,449 64.50% 886,764 646,684 72.93% 457 Historic Preservation 25,000 - 0.00% 28,600 17,228 60.24% 495 Subsidies - - N/A 1,636,607 1,131,567 69.14% 101 Total General Fund 11,933,779 8,277,284 69.36% 12,852,684 9,803,837 76.28% 211 Retail Development Invest Fund 4,000,000 - 0.00% 4,009,200 8,127 0.20% 212 25% Sales & Use Tax/ord 1,104,000 834,016 75.54% 1,893,934 829,127 43.78% 213 75% Public Improvemnts/ord 3,146,600 2,580,439 82.01% 4,688,449 1,823,575 38.90% 214 E911 392,720 239,458 60.97% 405,180 293,393 72.41% 224 Swiftel Center 1,682,434 1,095,645 65.12% 1,682,434 1,242,497 73.85% 226 Library Fines 29,500 22,139 75.05% 35,000 27,648 78.99% 227 Library Donations 31,000 19,772 63.78% 30,000 27,518 91.73% 278 Industrial Park 1,084,000 639,257 58.97% 975,561 815,181 83.56% 280 Special Assessment 701,200 196,880 28.08% 530,000 234,425 44.23% 282 Storm Drainage 498,055 317,749 63.80% 497,033 212,275 42.71% 284 3rd Penny Sales Tax 575,000 385,613 67.06% 627,000 583,490 93.06% 200 Special Revenue Funds 13,244,509 6,330,968 47.80% 15,373,791 6,097,256 39.66% 513 Streetscape Project 3,991,777 1,880,713 47.11% 3,991,777 1,308,326 32.78% 500 Project Funds 3,991,777 1,880,713 47.11% 3,991,777 1,308,326 32.78% Revenue and Expenditure Budgeted to Actual Revenue Expenditures Period 01 - 09 75% of Year Fiscal Year 2008 2008 Jan-Sept % of Bud 2008 Jan-Sept % of Bud Dept Description Budgeted Actual Received Budgeted Actual Used Revenue and Expenditure Budgeted to Actual Revenue Expenditures Period 01 - 09 75% of Year Fiscal Year 2008 601 Liquor 1,121,960 1,013,923 90.37% 1,106,557 684,306 61.84% 606 Airport 692,542 408,731 59.02% 692,531 725,960 104.83% 612 Solid Waste Collection 834,500 652,272 78.16% 994,315 605,949 60.94% 625 Landfill 1,844,550 1,439,285 78.03% 1,887,531 1,085,093 57.49% 630 Research & Tech Center 193,525 150,248 77.64% 184,851 137,747 74.52% 600 Enterprise Funds 4,687,077 3,664,459 78.18% 4,865,785 3,239,055 66.57% City of BrookingsGeneral Cash and Investment Analysis09/30/08(PAR) ReportedInterest Yield Trade Settlement Maturity Amount FairBank or Institution CUSIP # Rate Rate Date Date Date ConfirmationAmountPOOLED INVESTMENTS - SECURITIESGeneral FundTotal General Fund Investments00FUND INVESTMENTS - SECURITIES25% Sales & UseTotal 25% Sales & Use0075% Public Improvement/Debt ReserveTotal 75% Public Improvement 00 Water First Bank & TrustCD 120567 2.860% 2.860% 06/18/08 06/18/08 12/15/08 150,000 150,000CD 120625 2.890% 2.890% 06/23/08 06/23/08 12/22/08 500,000 500,000CD 121040 2.900% 2.900% 08/08/08 08/08/08 02/04/09 750,000 750,000CD 120647 2.960% 2.960% 06/26/08 06/26/08 03/23/09 550,000 550,000CD 121039 2.950% 2.950% 08/08/08 08/08/08 08/10/09 100,000 100,000CD 121244 2.950% 2.950% 09/08/08 09/08/08 03/09/09 300,000 300,000 Dacotah BankCD 5533473 3.200% 3.200% 09/15/08 9/15/08 9/15/09 200,000 200,000Total Water 2,550,000 2,550,000Investments 09-08.xls (PAR) ReportedInterest Yield Trade Settlement Maturity Amount FairBank or Institution CUSIP # Rate Rate Date Date Date ConfirmationAmountElectric Dacotah BankCD5533468 3.200% 3.200% 09/15/08 9/15/08 9/15/09 250,000 250,000 First Bank & TrustCD 120229 2.270% 2.270% 04/30/08 04/30/08 10/27/08 300,000 300,000CD 120567 2.860% 2.860% 06/18/08 06/18/08 12/15/08 200,000 200,000CD 120625 2.890% 2.890% 06/23/08 06/23/08 12/22/08 1,000,000 1,000,000CD 119077 4.000% 4.000% 12/28/07 12/28/07 12/29/08 135,166 135,166CD 120204 2.250% 2.250% 04/28/08 04/28/08 12/29/08 144,707 144,707CD 121040 2.900% 2.900% 08/08/08 08/08/08 02/04/09 500,000 500,000CD 121243 2.950% 2.950% 09/08/08 09/08/08 03/09/09 1,000,000 1,000,000CD 121244 2.950% 2.950% 09/08/08 09/08/08 03/09/09 500,000 500,000CD 120647 2.960% 2.960% 06/26/08 06/26/08 03/23/09 2,000,000 2,000,000CD 121039 2.950% 2.950% 08/08/08 08/08/08 08/10/09 300,000 300,000Total Electric6,329,873 6,329,873Wastewater First Bank & TrustCD 120567 2.860% 2.860% 06/18/08 06/18/08 12/15/08 150,000 150,000CD 120625 2.890% 2.890% 06/23/08 06/23/08 12/22/08 500,000 500,000CD 121040 2.900% 2.900% 08/08/08 08/08/08 02/04/09 750,000 750,000CD 121244 2.950% 2.950% 09/08/08 09/08/08 03/09/09 400,000 400,000CD 120647 2.960% 2.960% 06/26/08 06/26/08 03/23/09 450,000 450,000CD 121039 2.950% 2.950% 08/08/08 08/08/08 08/10/09 100,000 100,000 Wells FargoCD 5533473 3.200% 3.200% 09/15/08 9/15/08 9/15/09 100,000 100,000Total Wastewater2,450,000 2,450,000Investments 09-08.xls (PAR) ReportedInterest Yield Trade Settlement Maturity Amount FairBank or Institution CUSIP # Rate Rate Date Date Date ConfirmationAmountTelephone First Bank & TrustCD 120229 2.270% 2.270% 04/30/08 04/30/08 10/27/08 700,000 700,000CD 120567 2.860% 2.860% 06/18/08 06/18/08 12/15/08 1,500,000 1,500,000CD 120625 2.890% 2.890% 06/23/08 06/23/08 12/22/08 4,500,000 4,500,000CD 121243 2.950% 2.950% 09/08/08 09/08/08 03/09/09 1,000,000 1,000,000CD 121244 2.950% 2.950% 09/08/08 09/08/08 03/09/09 800,000 800,000CD 120647 2.960% 2.960% 06/26/08 06/26/08 03/23/09 1,000,000 1,000,000CD 121039 2.950% 2.950% 08/08/08 08/08/08 08/10/09 500,000 500,000 Dacotah BankCD 5533453 2.500% 2.500% 04/28/08 04/28/08 10/27/08 4,000,000 4,000,000CD 5533468 3.200% 3.200% 09/15/08 09/15/08 09/15/09 1,750,000 1,750,000CD 5533473 3.200% 3.200% 09/15/08 09/15/08 09/15/09 1,700,000 1,700,000Total Telephone17,450,000 17,450,000PCSTotal PCS00Hospital Dacotah BankCD 5533432 4.300% 4.300% 12/18/07 12/18/07 12/18/08 2,500,000 2,500,000 First Bank and Wealth ManagementFederal Home Loan Bank 3133XA-KS-5 4.199% 4.200% 02/10/05 02/17/05 02/17/09 2,000,000 1,970,480Total Hospital 4,500,000 4,473,040Library Fines First Bank & TrustCD 118893 2.680% 2.700% 06/12/08 6/12/08 12/12/08 11,106 11,106Total Library Fines11,106 11,106Investments 09-08.xls (PAR) ReportedInterest Yield Trade Settlement Maturity Amount FairBank or Institution CUSIP # Rate Rate Date Date Date ConfirmationAmountLibrary Donations First Bank & TrustCD 121407 3.590% 3.600% 09/17/08 9/17/08 11/17/09 10,438 10,438CD 116816 3.960% 4.000% 07/26/08 7/26/08 1/26/09 21,074 21,074CD 119493 3.220% 3.250% 07/28/08 7/28/08 1/28/09 34,589 34,589 Meta BankCD 2061025609 2.430% 2.450% 05/23/08 5/23/08 5/23/09 16,667 16,667Total Library Donations82,768 82,768Self Insurance/801 First Bank & TrustCD 120060 2.250% 2.250% 04/09/08 04/09/08 10/06/08 250,000 250,000CD 120305 2.240% 2.240% 05/09/08 05/09/08 11/05/08 250,000 250,000CD 120648 2.890% 2.890% 06/26/08 06/26/08 12/23/08 250,000 250,000CD 120765 2.760% 2.760% 07/10/08 07/10/08 01/06/09 250,000 250,000CD 121041 2.950% 2.950% 08/08/08 08/08/08 08/10/09 250,000 250,000 Wells FargoCD 9366252943 2.270% 2.270% 05/19/08 05/19/08 11/17/08 250,000 250,000CD 9636253008 2.420% 2.420% 06/09/08 06/09/08 12/08/08 250,000 250,000CD 9636253107 2.910% 2.910% 08/08/08 08/08/08 08/08/09 250,000 250,000 BankStar FinancialCD 201013 3.060% 3.060% 09/08/08 09/08/08 09/08/09 250,000 250,000Total Self Insurance2,250,000 2,250,000Investments 09-08.xls BROOKINGS MUNICIPAL LIQUOR STORE ANNUAL REPORT PACKAGED For Period ending September 30, OPERATING OPERATING MALT TOTAL ~~~~~~~~~~~~~~~2008~~~~~~~~~~~~~~LIQUOR BEER BEVERAGE Sales 610,272 816,209 2,125,939 3,552,420 Less Discount/ Paid Out - - - Sales (Net)610,272 816,209 2,125,939 3,552,420 Cost of Sales: Purchases (net)549,811 742,244 1,932,575 3,224,630 Total Cost of Sales 549,811 742,244 1,932,575 3,224,630 GROSS PROFIT 60,461 73,965 193,364 327,790 OPERATING EXPENSES Personnel Costs/ Retail 30,000 Total Expenses 30,000 NET OPERATING AGREEMENT INCOME BEFORE TRANSFERS 297,790 net profit margin = net operating income/net sales 8.38% RETAIL RETAIL RETAIL RETAIL RETAIL TOTAL LIQUOR WINE BEER LOTTERY MISC Sales 1,149,312 589,313 570,580 20,810 112,661 2,442,676 Less Discount/ Paid Out (17,383) (14,542) (3) (4,099) - (36,027) Sales (Net)1,131,929 574,771 570,577 16,711 112,661 2,406,649 Cost of Sales: Inventory January 1, (at cost)283,000 202,072 59,010 2,161 29,861 576,104 Purchases (net)923,749 438,556 449,721 14,529 87,061 1,913,616 Less Inventory Sept 30, 2008 , (at cost)346,514 190,372 60,935 1,145 26,016 624,982 Total Cost of Sales 860,235 450,256 447,796 15,545 90,906 1,864,738 GROSS PROFIT 271,694 124,515 122,781 1,166 21,755 541,911 gross profit margin=gross profit/net sales 24.00%21.66%21.52%6.98%19.31%22.52% OPERATING EXPENSES Current Expenses 145,153 Personnel Costs/ Retail 250,244 Personnel Costs/ Operating and Malt (30,000) Capital Costs Under $5000 4,306 Depreciation Expense 30,743 Total Expenses 400,446 Add Nonoperating Revenue Interest - Other Income - Rent 2,460 Total Other Income 2,460 NET RETAIL INCOME BEFORE TRANSFER 143,925 5.98% Operating Transfer Out To General Fund 200,000 Operating Transfer Out To Streetscape 53,861 Estimated ending inventory based on 19.31% profit margin - physical inventory of Miscellaneous items done annually at year end City Council Packet October 28, 2008 Other Business: 10. Action to approve a process for the Storm Water Plan and set special meeting date. Action: Motion to approve, request public comment, roll call City Manager Recommendation - Approve The draft City of Brookings Master Drainage Plan was adopted by the City Council at their September 23rd, 2008 meeting. The Master Drainage Plan includes thirteen specific study areas, SWMM model data for the City of Brookings and future growth areas, and cost estimates for projects. The Master Drainage Plan is not intended for maintenance and nuisance issues. The Master Drainage Plan addresses two general issues, which are: • improvement of existing drainage conditions throughout the City of Brookings and future growth areas • technical SWMM model data which may be used by consultants for drainage analysis of existing and future developments Staff has been reviewing the Storm Water Master Plan in detail, which will require a significant amount of time due to the voluminous amount of information in the report. The City currently has a good framework for stormwater planning in place for new developments. Current City Ordinance requires new developments and redevelopments to submit a drainage plan as specified by the Brookings Storm Drainage Design and Technical Criteria Manual that was adopted in 2006. City Ordinance requires detention or retention facilities for development, which will help assure that the drainage problems will not continue to get worse. The Criteria Manual is working well, and consultants are familiar with the engineering and hydraulic requirements of the manual. Over the past number of years, the engineering staff has received calls and citizen input about drainage concerns for different locations in and around Brookings. Staff has documented these, many of which were included in the Master Drainage Plan in the thirteen specific study areas. It is our intent to hold public meetings with the Brookings City Council instead of individual meetings with engineering staff. As we continue to work through the study and prioritization process, individual meetings with engineering staff may be added to the schedule if they are needed. 41 City Council Packet October 28, 2008 The following is a proposed schedule: No. Task Date Description 1. Internal Staff Review November 2008 Engineering Dept. staff to review the master plan document 2. City Council Work Session with City Engineering Staff December 2008 Discussion & Council input on study areas Discussion & Council input on storm event sizing philosophy Discussion & Council input on ranking criteria system for projects 3. City Council Work Session with City Engineering Staff and Troy Thompson, ERC January 2009 (Public Invite for input) Discussion on preliminary ranking results for projects Public Input 4. City Council Work Session City Engineering Staff (and Troy Thompson, ERC if needed) February 2009 (Public Invite for input) Discussion on proposed prioritized list Discussion on project funding Public Input 5. City Council Work Session with City Engineering Staff March 2009 Adoption of prioritized project list Discussion of next steps for project design and land acquisition 6. City Council Work Session with City Engineering Staff April 2009 Discussion on Priority #1 project timeline and funding Budget discussion on prioritized list for current and future year’s funding This calendar is proposed as a draft, and the dates and goals may be modified as we continue the prioritization process. The overall goal is to adopt a prioritized list of projects/goals which will give guidance to the engineering staff for future projects and land acquisition. The March 2009 deadline will also allow the opportunity to budget for the future projects in the City’s typical budget process. 42 City Council Packet October 28, 2008 Other Business: 11. Consideration of architectural review for vacant building (former First Bank & Trust Building at the corner of 5th St. and 5th Ave.) Action: Motion to approve, request public comment, roll call City Manager Recommendation - Approve TO: Mayor and City Council Members FROM: City Manager Jeff Weldon RE: Space needs analysis; architectural analysis of building re-hab Goal #7 of the City’s 2008 Strategic Plan provides for further analysis and research on the space needs analysis of the existing city hall/police/fire facility. We previously had executed a space needs analysis which documents the existing and projected square footage needs. In addition, staff has analyzed options for expanding City Hall and has concluded, that short of acquiring and demolishing the Teen Challenge building, there are no other cost-effective solutions for the current building. As you know, there is a first-right-of-refusal on the Teen Challenge building by another party for a pending housing redevelopment project. The Council has previously discussed options for acquiring and remodeling the former First Bank and Trust building downtown. Until recently, VeraSun was leasing the space but has since vacated. The building is now empty. If we are to continue to consider this building as a possible City Hall in the future, I suggest we undertake an architectural analysis to determine if the building will meet our needs. We will need to consider costs of remodeling and determine if the square footage requirements in the space needs analysis can be met in this building. We will also need to consider the “functionality” and customer service capabilities of the building to meet our needs. In addition, we will need to explore remodeling options for existing City Hall into expanded Police Department operations. This would convert the City Hall a Public Safety Center. A suggested scope of services would be as follows: Examine space needs analysis to determine gross square footage available Examine structural issues of the subject building Examine mechanical issues of the subject building Examine parking lot and internal traffic flow Conduct interviews to determine functional/operational relationships Develop options for office configuration arrangements Develop options for remodeling city hall for expanded police department Develop project cost estimates for each option 43 City Council Packet October 28, 2008 I suggest we engage the services of an architect that can assist us with this project. While I would prefer to give the business to a local architect, I would recommend we request a quote from TSP Architects of Sioux Falls. They conducted the space needs analysis for us and, in my opinion, is in the best professional position to translate that information into a building analysis. If we select a different architect, we may have to back-track to bring them up to speed on our space needs analysis thus far. If we wish to seriously consider this building as a new City Hall, I believe this to be a vital and fundamental next step to helping us decide if this building is right for our needs. Staff requests direction from the City Council to contact TSP Architects for a quote on the above-described scope of services. 44 City Council Packet October 28, 2008 Other Business: 12. Tax Increment Financing District Policy Discussion. Action: Informational TO: Mayor and City Council Members FROM: City Manager Jeff Weldon RE: Draft policy for the use of Tax Increment Finance Attached is a draft policy for your discussion governing the use of tax increment finance as an economic development tool. The policy is written strictly within the statutory parameters of South Dakota Codified Laws. Where SDCL provides latitude for local government discretion, I have attempted to provide guidelines for its use within that level of discretionary local authority. This document is the result of policy guidelines from other communities as well as guidelines that have governed our experiences with our existing four districts. As a policy, it is intended to provide guidance and direction in using tax increment but still leave latitude and flexibility for you to deviate from the document if you determine particular conditions exist that merit the modification. 45 City Council Packet October 28, 2008 Policy for the Use of Tax Increment Finance -City of Brookings, South Dakota- Purpose of this Policy: This policy is established to outline the City’s position governing the use of tax increment financing (TIF) as an economic development tool for development. This policy operates within the parameters of SDCL 11-9 as amended; and shall be used as a guide for considering applications for its use. The fundamental purpose of tax increment financing in Brookings is to encourage desirable development or redevelopment that would not otherwise occur but for the assistance provided through TIF. It shall further be the intent of TIF use to be for the shortest duration possible to achieve the City’s desired results for the specific project. The City reserves the right to approve or reject projects on a case-by-case basis, taking into consideration established policies, project criteria, existing ordinances, and demand on city services in relation to the potential benefits from the project. Meeting policy criteria does not guarantee the award of TIF to the project. Approval or denial of one project is not intended to set precedent for approval or denial of another project. Each project is unique and must stand on its own merits. Section I: Objectives governing the use of TIF The City will consider using TIF to assist private and public development projects provided Item (8) in this Section and one additional of the following public purpose objectives are satisfied. 1) To retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits. These jobs should be at the level sufficient to being considered a living wage/head-of-household income, and be considered primary jobs. 2) To encourage the redevelopment of deteriorated, contaminated, designated “brownfield”, or otherwise blighted real property through the investment of TIF funding; to result in an appreciably higher level of quality redevelopment and private reinvestment. 3) To stimulate economic development in Brookings by assisting projects that promote the long term economic vitality of the community; and contributes to the fulfillment of the City’s development or redevelopment objectives. 4) To stimulate increased private investment in areas that would have otherwise remained undeveloped or under-developed and which will, in the long term, provide a significant source of additional tax revenues to all taxing jurisdictions. 5) To encourage additional unsubsidized private development in the area, either directly or indirectly through “spin-off” development. 46 City Council Packet October 28, 2008 6) To stimulate the construction of safe and affordable housing units for low and moderate income residents and expand the general housing stock. (The latest available housing plan/survey, and information from South Dakota Housing Development Authority should be used as the primary guideline for determining affordability levels.) 7) To offset increased costs of redevelopment over and above the costs normally incurred in development. 8) To facilitate the development process and to achieve development on sites which would not otherwise be developed BUT FOR the use of TIF. Use of TIF shall be considered a financing means of last resort as determined by the City Council. 9) To support and assist in the implementation of the City’s Comprehensive Plan. 10) To broaden and expand the tax base to the benefit of all taxing jurisdictions. 11) To support redevelopment efforts that enhance and preserve unique urban features including but not limited to the downtown central business district, historic districts, entryway features and amenities, and public assembly areas. 12) To the extent permitted by law, tax increment proceeds may be used to finance eligible city-owned projects and improvements within the district as deemed necessary by the City Council. Section II: General guidelines governing the use of TIF 1) The City of Brookings will comply with all requirements of SDCL 11-9 as amended. The City will undertake a comprehensive analysis to ensure the proposed project satisfies the “BUT FOR” criteria. The project must demonstrate to the satisfaction of the City Council, that it is not economically feasible without the use of TIF. 2) The City of Brookings will use tax increment financing only when a clearly identified city development objective is served and only to the degree necessary to accomplish that development objective. 3) Tax increment financing will only be used in cases where the City has the financial capacity to provide the needed public assistance, the Council deems it fiscally prudent to provide such assistance, and the developer can clearly demonstrate the development will be able to meet it’s financial and public purpose obligation. 4) The financing method of TIF districts shall be a “pay-as-you-go” method whereby the applicant fronts the costs and will be reimbursed by the City over time as increment becomes available. The developer shall be considered the borrower under ‘pay-as- you-go” and the City shall not be liable for debt. As an alternative, the City Council may consider the issuance of bonded indebtedness through tax increment bonds only when unique circumstances determine “pay-as-you-go” is not feasible. 47 City Council Packet October 28, 2008 5) Applicants shall waive their right to use of the discretionary formula. 6) Only those public improvements and redevelopment costs directly associated with, or needed to service the proposed development plan or project, should be financed through tax increment proceeds. 7) The amount of increment remitted to the developer shall not exceed the amount in the approved project plan as adopted by the City Council; and shall be only for the lesser of either actual or budgeted expenditures in the approved plan. 8) The duration of the tax increment district shall be determined in the approved project plan as adopted by the City and shall terminate at such time as the sufficient increment has been generated pursuant to the approved project plan. In the event sufficient increment has not been generated by the time of the scheduled decertification of the district, the developer shall be responsible for any shortfall. 9) Tax increment expenditures shall only be made for items directly related to, and ancillary to, a bona fide public purpose or public benefit as determined exclusively by the City Council. 10) The City shall advertise for competitive bids for construction of the project, shall hold the construction contract, and shall make payments to the contractor with reimbursements from the applicant for pay-as-you-go projects, or from the bond fund for bonded indebtedness funds. The City shall not make any payments to the contractor until the applicant has made sufficient deposits to the City to cover the contractor payments for pay-as-you-go projects. 11) All development proposals should seek to maximize the amount of private investment per dollar of public assistance. Public assistance as a percentage of total development costs will be determined for each project as part of the review and compared to other development projects or subprojects of similar scope and magnitude whenever possible. 12) The City may, on a case-by-case basis, establish public purpose requirements specific to an application that must be met for the project. Such requirements shall be described in the project plan, development agreement, or other binding document between the City and the applicant, which may be in addition to the scope of applicable city ordinances or policies. Such items which may be included and if included would require performance by the Applicant may include but are not limited to: prescribed valuation of a home or building, acreage or building sizes, wages, number of jobs created/retained, building materials affecting appearance, landscaping, signage, property valuation increases, sales tax generating capacity, historic preservation, environmental improvements, transportation improvements, blight remediation, parking improvements, etc. 48 City Council Packet October 28, 2008 13) Applicant shall demonstrate to the satisfaction of the City that sufficient market demand exists for the proposed project. TIF shall not be used to support speculative projects. 14) Applicant must provide adequate financial guarantees to constitute a minimum of 10 percent equity investment cash infusion by Applicant into the overall project. Private lender financing and TIF shall not be counted toward the 10 percent equity requirement. 15) Applicant must provide adequate financial and legal guarantees to ensure completion of the project, including, but not limited to letters of credit, performance bonds, personal guarantees, etc. 16) For the purposes of underwriting the proposal, the applicant shall provide any requested market, financial, environmental, or other data pertaining to the proposed TIF project requested by the City or its consultants. 17) The project must be consistent with the City’s Comprehensive Plan, Zoning Ordinances, Subdivision Regulations, Land Use Plan, and any other duly-adopted master plans affected by the use of Tax Increment Financing. 18) The applicant shall adequately demonstrate, to the City’s sole satisfaction, an ability to complete the proposed project based on past development experience, general reputation, and credit history, among other factors, including the size and scope of the project. 19) The City may reject the use of TIF if it determines the project would place an extraordinary demand on city services or if the project that would have significant detrimental impacts on the health, safety, or general welfare of the community. 20) The City may consider amendments to either the district boundaries after a district is certified, or to the previously-adopted project plan. Amendments may be necessary to accommodate changes to desired public purpose outcomes. 21) The final interest rate and terms on the TIF Note shall be determined by the City Council and incorporated into the Development Agreement. 22) Projects will only be considered if they are projected to generate a minimum positive increment of $1 million within the first five years. Section III: Economic Analysis and Risk Assessment Process 1) Proposed uses of tax increment will be subject to rigorous economic analysis and risk assessment. This analysis will be conducted by the TIF Review Staff Team through their review process. The analysis may include review and assessment by consultants. (The TIF Review Staff Team shall consist of: City Manager (or 49 City Council Packet October 28, 2008 designee), City Finance Officer, City Engineer, Community Development Director, Planning/Zoning Administrator, BEDC Economic Development Director.) 2) The analysis and assessment of all proposed uses of tax increment will address the following questions as part of the standard format for reports to the City Council. i. What is the public purpose of the financial assistance for this project? ii. Why is there a financial need for public investment and/or subsidy? iii. What is the total cost of the project? iv. What is the appropriate level of public participation? v. What are the risks associated with the project? vi. What are the alternative plans for managing the risk? vii. How does the proposed project finance plan compare with previously approved comparable projects? viii. What is the project’s impact on other publicly financed projects? 3) The results of the Economic Analysis and Risk Assessment will be presented to the City Planning Commission and City Council at a time consistent with the schedule provided in Section V. The report shall identify any elements of the proposed project that are not in conformance with this policy. 4) Applicants shall pay a TIF application fee as determined by City resolution as a means of cost recovery for time and resources involved with approval of a TIF project. The fee shall be due and payable as part of the application process in Section V, Step 3. The process outlined in Section V shall not proceed until this amount has been paid in full. Applicants shall pay the fees associated with the Bond Counsel and Financial Advisor who shall be retained by the City for review of the TIF project. Applicants shall pay direct costs associated with processing the TIF application including but not limited to postage, hearing notices, surveys, platting, engineering, copying, legal fees, appraisals, recording fees, etc. Such costs shall not be the responsibility of the City. 5) The City may require periodic reports on the financial and developmental performance of the TIF district during the term of the district. Section IV: Eligible costs of tax increment revenue The City reserves the right to further restrict eligible costs as enumerated in state law in this policy as well as for each TIF project. Private buildings, structures, utilities or other private-use improvements are not eligible for TIF assistance. Development costs that are eligible for reimbursement with tax increment revenues are listed below. Property acquisition Elimination of slum and blighted conditions on property/land clearance Soils corrections Site preparation/clearing and grading of land 50 City Council Packet October 28, 2008 Removal of hazardous wastes or remediation of site contamination Construction of capital public improvements such as: Streets Curb and gutter Storm drainage utilities/ponds Wastewater utilities Water utilities Sidewalks/trails/pathways Landscaping improvements Signage & traffic controls Lighting Public parking lots Organizational costs Capitalized interest/finance charges Professional service costs Imputed administrative costs Relocation costs Other costs permitted by state law as may be prescribed in the TIF project plan. Section V: Tax Increment Finance application and approval process Each step must be approved before the project can move to the next step. The project shall be terminated for failure to meet the requirements of each step unless each step is satisfactorily completed or the step is modified to the satisfaction of the City in order to advance to the next step. 1) Applicant submits pre-application for TIF project to Community Development Director. (Attachment 1) 2) City Council reviews pre-application to assess viability/feasibility of project. 3) Applicant submits full application, including application fee, to Community Development Director. (Attachment 2) 4) TIF Review Team undertakes review of the application and project. 5) Project Plan is written by Review Team, Bond Counsel, & Financial Advisor. 6) Notices of a Public Hearing before Planning Commission are distributed. 7) Planning Commission holds public hearing; approves the district boundaries and project plan. 8) TIF Review Team develops Development Agreement. 9) City Council approves district boundaries and Project Plan. 10) City Engineer and Community Development Director give final approval of development plans. 11) City Council approves Development Agreement. 12) City advertises for bidders for the construction of the project. 13) City staff holds bid opening, City Council awards contract for construction. 14) City Engineer gives contractor notice to proceed with construction. 15) City forwards appropriate records to Dept. of Revenue and County Officers. 16) Review/evaluation of project performance. (Attachment 3) NOTE: In the event the TIF Review Team rejects the project in Step 4, the applicant may appeal to the City Council. The TIF Review Team shall provide the applicant a list of deficiencies as justification for any rejection of the project. 51 City Council Packet October 28, 2008 Attachment 1: Pre-application Tax Increment Finance Policy -City of Brookings, South Dakota- Department of Community Development Applicant Name and Address: Date:________ Proposed project location: (Address, legal description) Attach a map Current zoning: _____ Zoning Change to accommodate proposed project: _____ Project Description: Improvements to be financed by TIF: Estimated cost of total project and TIF-eligible expenses: Current status of development: (platted, zoned, engineered, designed, etc.) --------------------------------------- FOR CITY USE ONLY----------------------------------- Staff Review Comments: Recommend to go to City Council for Section V; Step 2: ___YES ___NO If NO, what are the deficiencies? Community Development Director:________________________ Date:______ 52 City Council Packet October 28, 2008 Attachment 2: TIF Application Tax Increment Finance Policy -City of Brookings, South Dakota- Department of Community Development THIS SECTION WILL BE WRITTEN AFTER THE CITY COUNCIL APPROVES THE OVERALL POLICY 53 City Council Packet October 28, 2008 Attachment 3: Evaluation/project performance Tax Increment Finance Policy -City of Brookings, South Dakota- Department of Community Development THIS SECTION WILL BE WRITTEN AFTER THE COUNCIL APPROVES THE OVERALL POLICY 54 City Council Packet October 28, 2008 55 13. Adjourn.