HomeMy WebLinkAbout2020_08_18 CC PKTCity Council
City of Brookings
Meeting Agenda
Brookings City Council
Brookings City & County
Government Center
520 3rd St., Suite 230
Brookings, SD 57006
Phone: (605) 692-6281
Fax: (605) 692-6907
"We are an inclusive, diverse, connected community that fuels the creative class, embraces sustainability
and pursues a complete lifestyle. We are committed to building a bright future through dedication,
generosity and authenticity. Bring your dreams!"
Chambers5:30 PMTuesday, August 18, 2020
Meeting & Study Session
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.
5:30 PM REGULAR MEETING
1. Call to Order / Pledge of Allegiance.
2. Record of Council Attendance.
3. Action to approve the agenda.
Action: Motion to Approve, Roll Call
4. Open Forum.
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.
5.RES 20-066 Action on Resolution 20-066, a Resolution Withdrawing South Dakota
Supreme Court Appeal.
Memo
Resolution
Attachments:
Action: Motion to Approve, Request Public Comment, Roll Call
STUDY SESSION
6.ID 20-0348 Discussion on Video Lottery.
Page 1 City of Brookings
August 18, 2020City Council Meeting Agenda
Memo
City Attorney Memo on Video Lottery - 2018.05.02
City Attorney Opinion on Administrative Rule 48.02.11.02 - 2020.04.24
Video Lottery - State Statues and Admin Rule
SD Supreme Court decision - 2011
Alcohol & Video Lottery list - Brookings
Video Lottery Counts - SDDOR
Video Lottery History - Brookings
Video Lottery History - South Dakota
Map - Video Lottery establishment locations
Attachments:
7.ID 20-0349 Discussion on Brookings School District Funding through the City Subsidy
process.
Memo
BMU Historical Funding
School District Application
Attachments:
8. City Council member introduction of topics for future discussion.
Any Council Member may request discussion of any issue at a future meeting only.
Items cannot be added for action at this meeting. A motion and second is required
stating the issue, requested outcome, and time. A majority vote is required.
9. Adjourn.
Brookings City Council: Keith Corbett, Mayor; Patty Bacon, Deputy Mayor
Council Members Leah Brink, Joey Collins, Ope Niemeyer, Holly Tilton Byrne, and Nick Wendell
Council Staff:
Paul M. Briseno, City Manager Steven Britzman, City Attorney Bonnie Foster, City Clerk
View the City Council Meeting Live on the City Government Access Channel 9.
Rebroadcast Schedule: Wednesday 1:00pm/Thursday 7:00pm/Friday 9:00pm/Saturday 1:00pm
The complete City Council agenda packet is available on the city website: www.cityofbrookings.org
Assisted Listening Systems (ALS) are available upon request by contacting (605) 692-6281. If you require
additional assistance, alternative formats, and/or accessible locations consistent with the Americans with
Disabilities Act, please contact Susan Rotert, City Human Resources Director and ADA Coordinator at (605)
692-6281 at least three working days prior to the meeting.
Page 2 City of Brookings
City of Brookings
Staff Report
Brookings City & County
Government Center, 520
Third Street
Brookings, SD 57006
(605) 692-6281 phone
(605) 692-6907 fax
File #:RES 20-066,Version:1
Action on Resolution 20-066, a Resolution Withdrawing South Dakota Supreme Court Appeal.
Summary:
The City of Brookings filed with the South Dakota Supreme Court an appeal for the Circuit Court
ruling on the Brookings County Detention Facility. At question is the City’s permitting authority and
the 11.1 Historic Review. The litigation proceeding is brought before the City Council for continued
determination.
Background:
The City of Brookings received a ruling from the Circuit Court this year on the Brookings County
Detention Facility. In July, the City sought to proceed with litigation efforts through the South Dakota
Supreme Court.
As part of the detention center development, a 11.1 review was required. The City pursued
clarification that it possessed the governmental function required to perform the final determination
based on state law. Additionally, the City holds the authority to allow a building permit.
Fiscal Impact:
The Circuit Court litigation cost $38,000 and Supreme Court cost is estimated to be $35,000.
Attachments:
Memo
Resolution
City of Brookings Printed on 8/14/2020Page 1 of 1
powered by Legistar™
City Council Agenda Memo
From: Paul Briseno, City Manager
Council Meeting: August 18, 2020
Subject: Withdraw of Supreme Court Appeal
Person(s) Responsible: Steve Britzman, City Attorney
Summary:
The City of Brookings filed with the South Dakota Supreme Court an appeal for the
Circuit Court ruling on the Brookings County Detention Facility. At question is the City’s
permitting authority and the 11.1 Historic Review. The litigation proceeding is brought
before the City Council for continued determination.
Background:
The City of Brookings received a ruling from the Circuit Court this year on the Brookings
County Detention Facility. In July the City sought to proceed with litigation efforts
through the South Dakota Supreme Court.
As part of the detention center development a 11.1 review was required. The City
pursued clarification that it possessed the governmental function required to perform the
final determination based on state law. Additionally, the City holds the authority to allow
a building permit.
Discussion:
The City Council is presented with a resolution of litigation withdrawal. The terms of the
withdrawal require an agreement with the County. The size and massing of a
constructed detention facility will be minimized to the greatest extent possible as
detailed in the submitted plans. The County would apply for a City building permit.
A resolution is presented to give staff direction should the City Council desire this
direction.
Legal Consideration:
None.
Financial Consideration:
The Circuit Court litigation cost $38,000 and Supreme Court cost is estimated to be
$35,000.
Supporting Documentation:
1. Resolution
Resolution 20-066
A Resolution Withdrawing South Dakota Supreme Court Appeal
Be It Resolved by the City Council of the City of Brookings, South Dakota:
The City of Brookings, in recognition of the potential additional financial costs and
delay resulting from continued litigation, hereby withdraws its South Dakota
Supreme Court appeal relating to the proposed expansion of the Brookings
County Detention Facility and authorizes the City Manager to execute a
Settlement Agreement and Release to terminate the litigation. The timing of this
agreement to terminate the City’s appeal to the South Dakota Supreme Court
and execute a Settlement Agreement is intended to allow the County of
Brookings to proceed with its favorable bid awards.
Passed and approved this 18th day of August, 2020.
CITY OF BROOKINGS
Keith W. Corbett, Mayor
ATTEST:
Bonnie Foster, City Clerk
City of Brookings
Staff Report
Brookings City & County
Government Center, 520
Third Street
Brookings, SD 57006
(605) 692-6281 phone
(605) 692-6907 fax
File #:ID 20-0348,Version:1
Discussion on Video Lottery.
Summary:
At the July 28th City Council meeting a request was made to have a discussion on Video Lottery at a
future Study Session. Staff has prepared a history of South Dakota and Brookings law on the subject
for presentation. The existing parameters given by the SD Supreme Court will be outlined for the
City Council’s awareness when determining approval or denial of future applications.
Attachments:
Memo
City Attorney Memo on Video Lottery - 2018.05.02
City Attorney Opinion on Administrative Rule 48:02:11:02 - 2020.04.24
Video Lottery: SDCL and Administrative Rule
SD Supreme Court decision - 2011
Alcohol & Video Lottery List - Brookings
Video Lottery Counts - SDDOR
Video Lottery History - Brookings
Video Lottery History - South Dakota
Map - Video Lottery establishment locations
City of Brookings Printed on 8/14/2020Page 1 of 1
powered by Legistar™
City Council Agenda Memo
From: Bonnie Foster, City Clerk
Council Meeting: August 18, 2020
Subject: Video Lottery
Person(s) Responsible: Bonnie Foster, City Clerk
Summary:
At the July 28th City Council meeting a request was made to have a discussion on Video
Lottery at a future Study Session. Staff has prepared a history of South Dakota and
Brookings law on the subject for presentation. The existing parameters given by the SD
Supreme Court will be outlined for the City Council’s awareness when determining
approval or denial of future applications.
Background:
South Dakota was the premier state to allow Video Lottery; beginning on October 16,
1989. The SD Supreme Court shut down Video Lottery in the state on August 13, 1994
declaring it unconstitutional. In November 8, 1994, it was brought to a vote of the
people and Video Lottery was reinstated and restarted on November 22, 1994. Since
then, a vote to repeal video lottery has been brought to a vote of the people two times,
ultimately being rejected by the people.
As to the history of Video Lottery in Brookings, we have been unsuccessful in identifying
the date the first machines were installed after March 1, 1994, or the quantity of
machines within the City of Brookings at that time. The SD Dept. of Revenue was able
to provide the attached spreadsheet, which provides a record of the quantity of
machines since 2010.
Item Details:
Video Lottery SDCL regulations very closely follow SDCL alcohol regulations. Only on -
sale alcohol license holders are eligible for video lottery placement within their business.
The number of on-sale alcohol licenses a municipality can issue is regulated in SDCL
Chapter 35.
In order to satisfy State Video Lottery Regulations (SDCL Chapter 42), there must be
separate and distinct physical facilities maintained and utilized for the sale and
consumption of alcoholic beverages for each separately described premises for
additional video lottery.
As an example, an applicant applying for 2 additional on-sale malt beverage licenses for
sale and consumption within the same building, which if approved, would be eligible for
up to 10 additional video lottery machines each. Each malt beverage license would
require separate physical spaces (SDCL 42-7A-37.1) within the same building
designated for the sales and consumption of alcoholic beverages.
The Supreme Court decision of Rick Law vs. City of Sioux Falls vs. SD Lottery in
September 2011, concluded that “the SD Legislative Video Lottery Scheme is
sufficiently comprehensive to make reasonable the inference that the Legislature left no
room for supplementary regulation of video lottery by municipalities.” However,
municipalities may use additional criteria (SDCL 42-7A-64) to authorize video lottery
machine placement in establishments issued an on-sale alcoholic beverage license.
The criteria are as follows:
1. The number of establishments currently licensed for video lottery;
2. The proximity of the business to other establishments licensed for video lottery;
3. The type of business and manner in which the applicant proposes to operate it;
4. The location of the business in relation to other businesses, residential areas, or
activities within the same general area;
5. The extent to which minors frequent a business connected to the one proposed;
and
6. The effect the proposed business has on economic development.
An existing video lottery license may not be denied renewal or transfer based upon the
criteria set forth in this section (SDCL 42-7A-64).
Legal Consideration:
Each On-Sale Alcohol License may be granted up to 10 Video Lottery machines.
Current applications received by the City of Brookings are asking for an additional 1-2
on-sale alcohol licenses in order to add an additional 10 -20 video lottery machines at
one physical location.
Financial Consideration:
Video Lottery fees: $50 per machine per year.
Supporting Documentation:
Memo
City Attorney Memo on Video Lottery – 2018.05.02
City Attorney Opinion on Administrative Rule 48:02:11:02 – 2020.04.24
Video Lottery: SDCL and Administrative Rule
SD Supreme Court decision – 2011
Alcohol & Video Lottery List - Brookings
Video Lottery Counts – SDDOR
Video Lottery History – Brookings
Video Lottery History – South Dakota
Map – Video Lottery establishment locations
Video Lottery Machines in Brookings
*** For list of machine locations see attached document
Steven J. Britzman
Brookings City Attorney
521 Sixth Street, Suite 104 Telephone (605) 697-9058
Brookings, South Dakota 57006 Facsimile (605) 697-9060
Email: britzmanlaw@brookings.net
_____________________________________________________________
Memorandum
To: Mayor Keith Corbett and Council Members, Jeff Weldon, City Manager, and Shari
Thornes, City Clerk
From: Steven J. Britzman, City Attorney
Date: May 2, 2018
Re: Municipal Regulation of Video Lottery location Pre-empted by State Law
Conclusion: State law does allow a municipality to consider the following criteria for authorizing
video lottery machine placement when issuing an on-sale wine or malt beverage license (no other
type of alcoholic beverage license). The criteria, as fully set forth below, include the number of
establishments currently licensed for video lottery, the proximity of the business to other
establishments licensed for video lottery, the type of business and manner in which the applicant
proposes to operate it, the location of the business in relation to other businesses, residential
areas, or activities within the same general area, the extent to which minors frequent a business
connected to the one proposed, and the effect the proposed business has on economic
development. I believe the final determination is made by the South Dakota lottery, but at least
with respect to two alcoholic beverage license types—on-sale wine and malt beverages—the city
can consider these State law criteria with respect to the decision whether to authorize video
lottery machine placement in the proposed establishment. No other City ordinance or Home
Rule Charter provision is applicable to the decision making. Please let me know if you have any
comments or questions concerning this opinion.
Discussion: The South Dakota Supreme Court case of Law v. City of Sioux Falls (2011),
resolved a number of questions concerning the ability of a municipality to regulate video lottery
and in particular the location of video lottery. The Supreme Court ruled:
It specifically gave only the executive director [of the State Lottery
Commission] the power to approve or disapprove any application for a license.
SDCL 42-7A-57. In doing so, it provided that the director consider the
application’s proposed location…. In only one statute is a municipality given any
power with regard to video lottery. SDCL 42-7A-64 allows a municipality to
consider, when issuing two types of on-sale alcoholic beverage licenses, certain
factors relevant to the placement of video lottery machines. Municipalities,
however, are not given any power to license video lottery establishments, or
otherwise control the location of such establishments. See SDCL 42-7A-64.
[¶14] Based on the character of the obligations imposed by the Legislature,
we see no delegation of power or responsibilities to municipalities and no
entrusting to municipalities the control video lottery. Rather, the statutes place all
burdens upon the State. Thus, we conclude that South Dakota’s legislative video
lottery scheme is sufficiently comprehensive to make reasonable the inference
– 2 – AUGUST 11, 2020
2
that the Legislature left no room for supplementary regulation of video lottery by
municipalities. It is immaterial that the City is governed by a home-rule charter or
empowered to enact zoning regulations.
SDCL 42-7A-64 is restricted in its application to applicants for a wine retailer alcoholic
beverage license and to applicants for malt beverage licenses. In these two limited
circumstances, a municipality may consider, in addition to the criteria for the issuance of an on-
sale wine or malt beverage license, “the following criteria for authorizing video lottery machine
placement issued an on-sale wine or malt beverage license”:
(1) The number of establishments currently licensed for video lottery;
(2) The proximity of the business to other establishments licensed for video lottery;
(3) The type of business and manner in which the applicant proposes to operate it;
(4) The location of the business in relation to other businesses, residential areas,
or activities within the same general area;
(5) The extent to which minors frequent a business connected to the one proposed; and
(6) The effect the proposed business has on economic development.
The Full Text of the Statute is set forth below:
42-7A-64 Additional criteria for on-sale alcoholic beverage licensees in video lottery licensed
establishments.
42-7A-64. Additional criteria for on-sale alcoholic beverage licensees in video lottery
licensed establishments. A municipality or county may consider, in addition to the criteria for the
issuance of an on-sale alcoholic beverage license, the following criteria for authorizing video
lottery machine placement in establishments issued an on-sale alcoholic beverage license
pursuant to subdivisions 35-4-2(12) and (16):
(1) The number of establishments currently licensed for video lottery;
(2) The proximity of the business to other establishments licensed for video lottery;
(3) The type of business and manner in which the applicant proposes to operate it;
(4) The location of the business in relation to other businesses, residential areas,
or activities within the same general area;
(5) The extent to which minors frequent a business connected to the one proposed; and
(6) The effect the proposed business has on economic development.
The governing board shall certify on each application filed with the Department of
Revenue for a license granted under subdivisions 35-4-2(12) and (16) whether the business
premises is authorized for video lottery machine placement. An existing video lottery license
may not be denied renewal or transfer based upon the criteria set forth in this section. The lottery
may issue a video lottery license to those establishments certified pursuant to this section.
Notwithstanding the above provisions, a county or municipality may not restrict the number of
alcoholic beverage licenses issued under subdivisions 35-4-2(12) and (16) and certified for video
lottery to a number less than those licensed as video lottery establishments on March 1, 1994.
Steve Britzman, City Attorney, opinion on AR 48:02:11:02
April 24, 2020
AR 48:02:11:02. Restrictions on multiple alcoholic beverage licenses. Persons
who hold more than one license for the on-sale consumption of alcoholic beverages
may have machines placed for each license issued provided the following requirements
are met:
1) Separate application, qualification, and fees are submitted and approved for each
premises licensed for the on-sale consumption of alcoholic beverages;
2) Separate establishment licenses are issued by the lottery for each premises
licensed for the on-sale consumption of alcoholic beverages;
3) Separate and distinct physical facilities are maintained and utilized for the
sale and consumption of alcoholic beverages for each establishment
license approved by the lottery;
4) No more than one establishment license is issued to any person for the
same legally described premises contained in the alcoholic beverage
license.
Source: 16 SDR 27, effective August 18, 1989.
General Authority: SDCL 42-7A-21(16).
Law Implemented: SDCL 42-7A-41.
City Attorney Opinion
Subsections 3 and 4 require separate and distinct physical facilities to be maintained
and used for the sale and consumption for each establishment license approved by the
lottery. This would mean each establishment must be able to serve alcoholic beverages
on its own premises from its own equipment, even if they are housed in the same
building with another establishment.
Section 4 requires a separate establishment for each legally described premises. A
legally described premises, in my opinion, means a separate legal description must
pertain to each establishment licensed. A legal description can be created by a
“recorded deed” which has been filed in the office of the Register of Deeds, or a plat
which identifies each establishment with a separate de scription, such as Lot or Parcel A
or Parcel B. A plat must also be recorded in the office of the Register of Deeds to
create a legal description. Until a legal description is recorded, it cannot create a
subdivision of an existing legal description.
Video Lottery State Statues and Administrative Rule
SDCL 42-7A-1. Definitions. Terms used in this chapter mean:
(6) "Licensed establishment," a bar or lounge owned or managed by an individual,
partnership, corporation, or association licensed to sell alcoholic beverages for
consumption upon the premises where sold;
SDCL 42-7A-37.1. Restrictions on licensed establishment. A business licensed
pursuant to subdivisions 35-4-2(12) and (16) may not be a licensed establishment for
video lottery placement pursuant to subdivision 42-7A-1(6) unless it is a bar or lounge.
For the purposes of this section, a bar or lounge is an enterprise primarily maintained
and operated for the selling, dispensing, and consumption of alcoholic beverages on the
premises and may also include the sale and service of food. A bar or lounge may be
physically connected to another enterprise within the same building, which enterprise
may be owned or operated by the same person. There may be interior access between
a bar or lounge and a connected enterprise. However, there shall be a floor to ceiling
opaque wall separation between the two enterprises. A separation wall may be
constructed to provide visual and physical access for employees from areas in the
building not open to the public. The bar or lounge shall have a separate entrance and
exit. A separate entrance and exit is not required if entrance to the bar may only be
obtained from the other distinct enterprise and the public may not enter the other
enterprise by first passing through the bar or lounge. All video lottery machines shall be
adequately monitored during business hours. Adequate monitoring shall be
accomplished by the personal presence of an employee or by an employee using video
cameras or mirrors and periodic inspections of the bar or lounge. No new license may
be issued to any establishment after July 1, 1992, unless such establishment complies
with this section. No license may be renewed to any establishment after July 1, 1993,
unless such establishment complies with this section.
SDCL 42-7A-44. Rules for placement of video lottery machines--Number limited--
Placement in bar or lounge with on-sale license. The placement of video lottery
machines in licensed establishments shall be subject to the rules of the com mission
promulgated pursuant to chapter 1-26. No more than ten video lottery machines may be
placed in any licensed establishment. The bar or lounge with an on -sale license issued
pursuant to subdivision 35-4-2(12) or (16) shall be restricted to persons twenty-one
years of age or older. The entrance to the area where video lottery machines are
located shall display a sign that the premises are restricted to persons twenty-one years
or older. Notwithstanding the restrictions in § 35-4-79, persons under the age of twenty-
one may only enter the premises where video lottery machines are located provided
they are accompanied by a parent, guardian, or spouse of twenty-one years or older.
42-7A-64. Additional criteria for on-sale alcoholic beverage licensees in video
lottery licensed establishments. A municipality or county may consider, in addition to
the criteria for the issuance of an on-sale alcoholic beverage license, the following
criteria for authorizing video lottery machine placement in establishments issued an on-
sale alcoholic beverage license pursuant to subdivisions 35 -4-2(12) and (16):
1) The number of establishments currently licensed for video lottery;
2) The proximity of the business to other establishments licensed for video lottery;
3) The type of business and manner in which the applicant proposes to operate it;
4) The location of the business in relation to other businesses, residential areas, or
activities within the same general area;
5) The extent to which minors frequent a business connected to the one proposed;
and
6) The effect the proposed business has on economic development.
The governing board shall certify on each application filed with the Department of
Revenue for a license granted under subdivisions 35-4-2(12) and (16) whether the
business premises is authorized for video lottery machine placement. An existing video
lottery license may not be denied renewal or transfer based upon the criteria set forth in
this section. The lottery may issue a video lottery license to those establishments
certified pursuant to this section. Notwithstanding the above provisions, a county or
municipality may not restrict the number of alcoholic beverage licenses issued under
subdivisions 35-4-2(12) and (16) and certified for video lottery to a number less than
those licensed as video lottery establishments on March 1, 1994.
Administrative Rules:
48:02:11:01. Location of machines in establishment. All video lottery machines in
licensed establishments must be physically located as follows:
1) In the sight and control of the owner, manager, or an employee of the licensed
establishment from the location at which alcoholic beverages are dispensed;
2) In an area where alcoholic beverages are regularly dispensed and consumed in
the ordinary and usual course of business;
3) In an area that ensures public access to the machines is restricted to persons
legally entitled by age to be on the premises;
4) In an area which is at all times monitored by the owner, manager, or employee of
the licensed establishment to prevent access or play of video lottery machines by
persons under the age of 21.
48:02:11:02. Restrictions on multiple alcoholic beverage licenses. Persons who
hold more than one license for the on-sale consumption of alcoholic beverages may
have machines placed for each license issued provided the following requirements are
met:
1) Separate application, qualification, and fees are submitted and approved for each
premises licensed for the on-sale consumption of alcoholic beverages;
2) Separate establishment licenses are issued by the lottery for each premises
licensed for the on-sale consumption of alcoholic beverages;
3) Separate and distinct physical facilities are maintained and utilized for the sale
and consumption of alcoholic beverages for each establishment license
approved by the lottery;
4) No more than one establishment license is issued to any person for the same
legally described premises contained in the alcoholic beverage license.
48:02:05:05. Duties of licensed establishments. Specific duties of owners,
managers, and designated employees of licensed establishments are as follows:
1) Provide a secure premise for the placement, operation, and play of video lottery
machines;
2) Permit no one to tamper with or interfere with the approved operation of any
video lottery machine;
3) Ensure that communication lines to the video lottery machines are at all times
connected and prevent any person from tampering or interfering with the
approved, continuing operation of the lines;
4) Contract only with persons authorized under this title to directly share in
revenues generated from net machine income;
5) Ensure that video lottery machines are placed and remain as placed within the
sight and control of the owner, manager, or designated employee while engaging
in the actual dispensing of alcoholic beverages from the location where alcoholic
beverages are dispensed;
6) Ensure that video lottery machines are placed and remain as placed in the
specific area of the licensed establishment where alcoholic beverages are
regularly dispensed and consumed in the ordinary and usual course of business;
7) Monitor video lottery machines to prevent access to or play by persons who are
under the age of 21 years or who are visibly intoxicated;
8) Commit no violations of the laws of this state concerning the sale, dispensing,
and consumption on premises of alcoholic beverages that results in suspension
or revocation of its license;
9) Maintain at all times change and cash in the denominations accepted by the
video lottery machines located in the establishment;
10) Extend no credit for video lottery machine play;
11) Pay all credits upon presentment of a valid winning ticket in accordance with
SDCL 42-7A-37 and chapter 48:02:12;
12) Exercise caution and good judgment in providing cash for checks presented for
video lottery machine play;
13) Report promptly all malfunctions of video lottery machines to the operator and
notify the lottery of an operator's failure to provide service and repair of machines
and associated equipment as required under this title;
14) Conduct advertising and promotional activities of the video lottery in acc ordance
with decency, dignity, honesty, and good taste so that it does not reflect
adversely on the lottery or the state of South Dakota;
15) Install, post, and display prominently at locations within or about the premises
signs, redemption information, and other promotional material as required by the
lottery. Use of the trademarked video lottery logo must be approved by the
lottery;
16) Immediately notify operators of all out-of-service machines; and
17) Immediately notify the lottery of an operator's failure to respond within 24 hours
after notice to the operator of an out-of-service machine.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
A B C D E F G H I J
# Video On-Sale On-Sale On-Sale Off-Sale
Business Lottery Machines Malt Wine Liquor Liquor
1 Applebee's Neighborhood Grill & Bar / Apple BRK, LLC X
2 Aramark/McCrory Gardens Educational Visitors Center X X
3 BP of Brookings, Inc.10 X
4 Brookings Municipal Liquor Store X X
5 Brookings Softball Assoc. (Southbrook Softball Diamonds)X
6 Buffalo Wild Wings Bar & Grill 2 X
7 BVG Backyard Grill X X
8 Carpy's Pub 10 X
9 Casey's General Store #1694 X
10 Casey's General Store #2198 X
11 Casey's General Store #2419 X
12 Casino 2000 10 X
13 Cenex Zip Trip #63 (CHS, Inc.)X X
14 Cenex Zip Trip #64 (CHS, Inc.)X X
15 The Children's Museum of South Dakota X X
16 The Clothes Line Lounge - INACTIVE X
17 Craft Fusion Italian American / Jesse Davis LLC X
18 Cubby's Sports Bar & Grill (GDT Inc.)7 X X
19 Danny's 10 X X
20 The Depot 10 X X
21 Deuces Casino, Suite 105A (Common Wealth Gaming & Holdings, Co.)10 X X
22 Deuces Casino, Suite 105B (Common Wealth Gaming & Holdings, Co.)10 X X
23 Deuces Casino, Suite 105C (Common Wealth Gaming & Holdings, Co.)10 X X
24 Edgebrook Golf Course X
25 El Tapitio Inc.X
26 Elks Lodge #1490 X
27 Eponymous Brewing Co.X X
28 Flavor International Restaurant & Grocery X
29 Gas 'n Mor (Brookings Developers Inc.)10 X
30 George's Pizza Inc.X
31 Guadalajara X X
32 Hy-Vee Food Store X X
33 Hy-Vee Gas X
34 Jim's Tap 3 X X
35 The Lanes (MG Oil Co.)10 X
36 The Lodge (Den Wil Hospitality Group, Inc.)3 X X Restaurant Liquor License
37 Main Street Pub 4 X
38 New Sake, Inc.X X
39 9 Bar Nightclub (Nine Inc.)5 X
40 Old Market Eatery, LLC X
41 Old Sanctuary X X
42 Park Hospitality Inc.X Convention Liquor License
43 Pheasant Café & Lounge X X
44 Pints & Quarts 3 X X
45 Pizza Hut #2769 (NPC International, Inc.)X
46 PNP Pub (Schoon's Pub Inc.)10 X
47 The Ram (Jack's Entertainment, LLC)X
48 Ray's Corner (Fergen Enterprises Inc.)10 X X
49 Schoon's Pump N' Pak North (Schoon's Pub Inc.)X
50 Schoon's Pump N' Pak South (Schoon's Properties Inc.)10 X X
51 Skinner's Pub 9 X X
52 South Main Casino & Pub (SVK Properties, LLC)10 X
53 Sully's Irish Pub (B&L Sullivan Inc.)7 X X
54 Swiftel Center X X
55 Tee'd Off Golf, LLC X
56 VFW Geo Dokken Post 2118 3 X
57 Wal-Mart Supercenter #1538 X X
58 Whiskey Creek Wood Fire Grill (Brookings Steak Co.)X Restaurant Liquor License
59 Wilbert's / Comfort Suites University (Den Wil Hospitality Group, Inc.)X X X Convention Liquor License
60 The Wild Hare (Wonder, Inc.)10 X X
61 Wooden Legs Brewing Co.X X
62 Woody's Axe Throwing, LLC X
63 Yessica's Restaurant X X
TOTAL 196
South Dakota Lottery
City of Brookings
Number of Video Lottery Establishments and Video Lottery Machines
Calendar Year # of Establishments # of Machines
2010 24 171
2011 25 174
2012 24 161
2013 23 166
2014 26 184
2015 24 177
2016 24 177
2017 22 168
2018 23 177
2019 24 184
2020
Video Lottery History – City of Brookings
XXX – first video lottery machines in Brookings
Feb. 28, 2000 – Ord. 04-00: regulated by population
* 1 authorization / 1,012 persons in the City as of January 1st
Dec. 18, 2000 – Ord. 31-00: established annual license fees
* $50 / video lottery machine
March 12, 2001 – Ord. 05-01: amended Ord. 04-011, regulated by population, and
established criteria for authorization and placement
* 1 authorization / 880 persons in the City as of August 1st
April 26, 2011 – Ord. 05-11: regulated video lottery by population
* 1 authorization / 2,206 persons in the City as of August 1st
2011 Supreme Court Decision
September 2011 – Supreme Court Decision
Rick Law vs. City of Sioux Falls vs. SD Lottery
Conclusion: SD Legislative video lottery scheme is sufficiently comprehensive to
make reasonable the inference that the Legislature left no room for
supplementary regulation of video lottery by municipalities.
Video Lottery History – State of South Dakota
Prior to 1986 – video lottery was illegal in SD
1986 – State Constitution amended to legalize gambling
March 1, 1989 – SD was the first state with video lottery in the nation
Oct. 16, 1989 – Video Lottery begins
Nov. 3, 1992 – initiated measure to repeal video lottery appears on the
general election ballot – voters voted to keep video lottery
June 22, 1994 – SD supreme court declared video lottery unconstitutional
July 1994 – lawmakers passed resolution to place a constitutional
amendment on the general election ballot to reauthorize video lottery
Aug. 13, 1994 – court order issued to shut down video lottery.
Nov. 8, 1994 - Voters voted to reauthorize video lottery.
Nov. 22, 1994 – video lottery restarted
Nov. 7, 2000 – voters reject constitutional amendment to repeal video
lottery
Nov. 7, 2006 – voters reject initiated measure to repeal video lottery
City of Brookings
Staff Report
Brookings City & County
Government Center, 520
Third Street
Brookings, SD 57006
(605) 692-6281 phone
(605) 692-6907 fax
File #:ID 20-0349,Version:1
Discussion on Brookings School District Funding through the City Subsidy process.
Summary:
At the July 28th meeting, City Council requested the funding of the Brookings School District as an
outside agency on a future Study Session. Staff has prepared a historical understanding of the
funding. Since 1989, the City has provided an estimated $7.7 million to the Brookings School District.
Though staff proposed cutting General Fund operations over the past two years at $1.5 million to
provide a balanced budget, there was no recommended reduction for the school funding request.
Background:
In 1989, Brookings Municipal Utilities (BMU) agreed to make a specific transfer from the Electric and
Telephone Fund through the City to the School District. This transfer ranged from $102,000 to
$605,000 at the max. In 1994, BMU dissolved its Telemarketing Division and granted a greater
transfer, which increased the annual funding for one year. Every year BMU would make the intended
transfer with a specific resolution. The transfer occurred from 1989-1996. BMU no longer makes an
explicit transfer from its utilities to the School District.
There are varying understandings that the funds were a payment in lieu of taxes or the School
District needed funds and the Telephone Fund had an abundant resource. To date there are no
known cities which own Electric Utilities which transfer funds to the School District. Since the mid
1990’s the Telephone Utility has transitioned into a less than profitable industry with the
advancements of competing cell phone companies. Therefore, the revenue source has decreased.
The City of Brookings General Fund is the source for the School District funding as an outside
agency. A quick search shows over the past ten (10) years, the city has granted annual funding of
$207,200 - $195,000. This is approximately $2 million over the past ten (10) years. Its assumed the
total amount funded to the School District since 1989 is $7.7 million or more.
The Governance and Ends Policy does note the City Council can transfer up to 15% of the BMU
transfer to the School District. However, this does not mean the City Council is obligated to fund this
percentage. Additionally, no prior City Council can bind the current City Council to such policy, unless
the existing legislative body determines it appropriate.
Fiscal Impact:
All outside agencies are funded from the General Fund.
Attachments:
Memo
BMU Historical Funding
School District Application
City of Brookings Printed on 8/14/2020Page 1 of 1
powered by Legistar™
City Council Agenda Memo
From: Paul Briseno, City Manager
Council Meeting: August 18, 2020
Subject: School Funding
Person(s) Responsible: Paul Briseno, City Manager
Summary:
At the July 28th meeting, City Council requested the funding of the Brookings School
District as an outside agency on a future Study Session. Staff has prepared a historical
understanding of the funding. Since 1989, the City has provided an estimated $7.7
million to the Brookings School District. Though staff proposed cutting General Fund
operations over the past two years at $1.5 million to provide a balanced budget, there
was no recommended reduction for the school funding request.
Background:
In 1989, Brookings Municipal Utilities (BMU) agreed to make a specific transfer from the
Electric and Telephone Fund through the City to the School District. This transfer
ranged from $102,000 to $605,000 at the max. In 1994, BMU dissolved its
Telemarketing Division and granted a greater transfer, which increased the annual
funding for one year. Every year BMU would make the intended transfer with a specific
resolution. The transfer occurred from 1989-1996. BMU no longer makes an explicit
transfer from its utilities to the School District.
There are varying understandings that the funds were a payment in lieu of taxes or the
School District needed funds and the Telephone Fund had an abundant resource. To
date there are no known cities which own Electric Utilities which transfer funds to the
School District. Since the mid 1990’s the Telephone Utility has transitioned into a less
than profitable industry with the advancements of competing cell phone companies.
Therefore, the revenue source has decreased.
The City of Brookings General Fund is the source for the School District funding as an
outside agency. A quick search shows over the past ten (10) years, the city has granted
annual funding of $207,200 - $195,000. This is approximately $2 million over the past
ten (10) years. Its assumed the total amount funded to the School District since 1989 is
$7.7 million or more.
The Governance and Ends Policy does note the City Council can transfer up to 15% of
the BMU transfer to the School District. However, this does not mean the City Council
is obligated to fund this percentage. Additionally, no prior City Council can bind the
current City Council to such policy, unless the existing legislative body determines it
appropriate.
Discussion:
The 2021 Brookings School District funding request is $207,200. This request is
specifically for three (3) Junior Kindergarten Classes (one at each K-3 School). Jr.
Kindergarten prepares students for kindergarten readiness. The program is for students
who are at least five (5) years old and are not quite yet ready for kindergarten.
City staff prepared the 2021 Budget with the recommendation of $195,000. Should the
City Council increase the funding, a cut to the already reduced General Fund will need
to be made. Should the City Council reduce funding to the School District, the funds
can be utilized for other programs. Key factors when discussing this topic:
All General Fund operations were cut $1.5 million over the past two years
o Staff recommended the School District funding remain untouched at
$195,000.
City Council funds the School District request from the General Fund
BMU does not identify or require a specific transfer to the School District
o The specific transfer from BMU stopped in 1996
o BMU does make a specific transfer to EDC
No other town with a city-owned electric makes a transfer to the School District
The School District does receive a 10% electric rate discount
2021 the School District made a specific program funding request
This item is brought to a Study Session as a request of the City Council.
Legal Consideration:
None.
Financial Consideration:
All outside agencies are funded from the General Fund.
Supporting Documentation:
1. BMU Historical Funding
2. School District Application