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Home My WebLink About2020_10_27 CC PKTCity Council City of Brookings Meeting Agenda - Final 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!" Council Chambers6:00 PMTuesday, October 27, 2020 The City of Brookings is committed to providing a high quality of life for its citizens and fostering a diverse economic base through innovative thinking, strategic planning, and proactive, fiscally responsible municipal management. 6:00 PM REGULAR MEETING 1. Call to Order / Pledge of Allegiance. 2. Record of Council Attendance. 3. Consent Agenda: 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. 3.A. Action to approve the agenda. 3.B.ID 20-0445 Action to approve the October 13 and October 20, 2020 City Council minutes. 10/13/2020 Minutes 10/20/2020 Minutes Attachments: 4. Items removed from Consent Agenda. Action: Motion to Approve, Request Public Comment, Roll Call Page 1 City of Brookings October 27, 2020City Council Meeting Agenda - Final 5. Open Forum/Presentations/Reports: 5.A.ID 20-0441 Presentation: 21st Annual Butler Human Rights Award Press ReleaseAttachments: 5.B. 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.C. SDSU Student Association Report. 6. Contracts/Change Orders: 6.A.RES 20-084 Action on Resolution 20-084, a Resolution authorizing Change Order No. 1 for the Bob Shelden Athletic Field Complex Renovation Project, Clark Drew Construction, Inc. Memo Resolution Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 6.B.RES 20-085 Action on Resolution 20-085, a Resolution Approving a Development Agreement between the City of Brookings and Linchpin Corporation for the Development of the Armory Property. Memo Resolution Development Agreement Map TIF Guidelines Preliminary Floorplan Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 7. Ordinance First Readings: The title of the Ordinance is read. No vote is required on the first reading of an Ordinance. Public Comment and Council discussion is permitted. The date for the second reading is announced. 7.A.ORD 20-023 Introduction and First Reading on Ordinance 20-023, an Ordinance Rezoning Lots 8A, 9, 10, 11, 12 & 13 Block 1, Fox Run Addition, from a Residence R-2 Two-Family District, Residence R-1D Single-Family / Residence R-2 Two-Family District, and Residence R-1D Single-Family District to a Residence R-3 Apartment District (Generally located south of Page 2 City of Brookings October 27, 2020City Council Meeting Agenda - Final 20th Street South and east of Fox Run Trail). Public Hearing: November 10, 2020. Memo Ordinance Notice Planning Commission Minutes Current Zoning Map Future Land Use Map Attachments: 8. Public Hearings and Second Readings: 8.A.ID 20-0444 Public Hearing and Action on a request for an On-Off Sale Malt License for Agua Fresh, Sinan Taskin, owner, for 420 Main Avenue, legal description: Lot 11A, Block 7, Original Plat Addition. Memo Legal Notice Map Attachments: Action: Open & Close Public Hearing, Motion to Approve, Roll Call 8.B.RES 20-086 Public Hearing and Action on Resolution 20-086, a Resolution authorizing the City Manager to enter into an Operating Agreement for an On-Off Sale Wine License for Agua Fresh, Sinan Taskin, owner, 420 Main Avenue, Brookings, SD, legal description: Lot 11A, Block 7, Original Plat Addition. Memo Resolution Operating Agreement Legal Notice Map Attachments: Action: Open & Close Public Hearing, Motion to Approve, Roll Call 8.C.ORD 20-022 Second Reading and Action on Ordinance 20-022, an Ordinance Establishing a Public Works Department. Memo Ordinance Existing Organizational Chart Proposed Organizational Chart Job Advertisement Attachments: Action: Motion to Approve, Request Public Comment, Roll Call Legislative History 10/13/20 City Council read into the record 10/13/20 City Council approved Page 3 City of Brookings October 27, 2020City Council Meeting Agenda - Final 8.D.ORD 20-028 Second Reading and Action on Ordinance 20-028, an Emergency Ordinance Amending Emergency Ordinance 20-010, as previously amended, to Extend and to Comprehensively Adopt Provisions to Address a Public Health Crisis and to Revise Certain Measures which are Necessary for the Immediate Preservation of the Public Health, Safety and Welfare of the City and are Necessary to Slow the Community Spread of Coronavirus (COVID-19) in the City of Brookings, South Dakota. Memo Ordinance Threshold Report Phasing Plan Attachments: Action: Motion to Approve, Request Public Comment, Roll Call Legislative History 10/20/20 City Council read into the record 9. Other Business: 9.A.ID 20-0446 COVID-19 Update. 9.B.ID 20-0396 City of Brookings Progress Report. 10. 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. 11. Executive Session ID 20-0448 Executive Session, pursuant to SDCL 1-25-2, for discussing the qualifications, competence, performance, character or fitness of any public officer or employee or prospective public officer or employee. The term, employee, does not include any independent contractor. Action: Motion to enter into Executive Session, Voice Vote Action: Motion to exit Executive Session, Voice Vote 12. 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 Page 4 City of Brookings October 27, 2020City Council Meeting Agenda - Final 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 5 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 #:ID 20-0445,Version:1 Action to approve the October 13 and October 20, 2020 City Council minutes. Attachments: 10/13/2020 Minutes 10/20/2020 Minutes City of Brookings Printed on 10/23/2020Page 1 of 1 powered by Legistar™ Brookings City Council October 13, 2020 (unapproved) The Brookings City Council held a meeting on Tuesday, October 13, 2020 at 6:00 PM, at the City & County Government Building Chambers with the following City Council members present: Mayor Keith Corbett and Council Members Holly Tilton Byrne, Leah Brink, Patty Bacon, Joey Collins, Nick Wendell, and Oepke Niemeyer. City Attorney Steve Britzman, City Manager Paul Briseno, and City Clerk Bonnie Foster was also present. 6:00 PM REGULAR MEETING Consent Agenda. A motion was made by Council Member Wendell, seconded by Council Member Bacon, to approve the consent agenda. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, and Collins. 3.A. Action to approve the agenda. 3.B. Action to approve the September 22, 2020 City Council Minutes. 3.C. Action on appointments to City Boards, Committees, and Commissions. Human Rights Commission, College Student Representative: appoint Shedrick Flournoy (term expires 5/1/2021); Public Arts Commission, SDSU School of Design Representative: appoint Brian Rex (term expires 1/1/2023); Sustainability Council: appoint Louis Hesler (term expires 1/1/2023). New/Promoted City of Brookings Employees. Brookings Police Department: Jonny Weinrich was promoted from Patrol Officer to Patrol Sergeant. Information Technology Department: Don Goff has been hired as the new Information Technology Department Manager. Proclamation. A Proclamation on National Disability Employment Awareness Month was presented to Mark Sternhagen, representative of the Brookings Committee for People who have Disabilities. MAYORAL PROCLAMATION CITY OF BROOKINGS, SOUTH DAKOTA WHEREAS, National Disability Employment Month is commemorating its 75th Anniversary of educating about disability employment issues and celebrate the many and varied contributions of America's workers with disabilities, WHEREAS, NDEAM is led by the U.S. Department of Labor's Office of Disability Employment Policy, but its true spirit lies in the many observances held at the grassroots level across the nation every year. Employers of all sizes and in all industries are encouraged to participate in NDEAM. WHEREAS, Workplaces welcoming of the talents of all people, including people with disabilities, are a critical part of our efforts to build an inclusive community and strong economy. NOW, THEREFORE, I, Keith W. Corbett, Mayor of the City of Brookings, do hereby proclaim October 2020 as NATIONAL DISABILITY EMPLOYMENT AWARENESS MONTH And I call upon employers, schools and other community organizations in Brookings to observe this month with appropriate programs and activities, and to advance its important message that people with disabilities are equal to the task throughout the year. IN WITNESS WHEREOF, I have placed the Seal of the City of Brookings, State of South Dakota, this 13th day of October, 2020. Keith W. Corbett, Mayor City of Brookings / Brookings County Settlement Agreement. City Attorney Steve Britzman provided an overview of the Settlement Agreement with Brookings County on the Brookings County Detention Facility Project. 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. In August, City Council passed resolution 20-066 withdrawing the Supreme Court appeal. The resolution authorized the City Manager to execute a settlement agreem ent and release to terminate the litigation. Open Forum. Bradley Walker expressed concerns and urged the City Council to allow businesses to return to 100% occupancy with the requirement of masks and social distancing. SDSU Student’s Association Report. Hattie Seten, SDSU Students Association President, provided an update on SDSU happenings to the City Council and public. Resolution 20-079. A motion was made by Council Member Wendell, seconded by Council Member Brink, that Resolution 20-079, a Resolution Awarding Bids on 2020- 2021 Contractor Snow Removal Equipment Contracts, be approved. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, and Collins. Resolution 20-079 - Resolution Awarding Snow Removal Equipment Contracts Whereas, the City of Brookings opened bids for Snow Removal Equipment on Thursday, October 2, 2020 at 1:30 pm at Brookings City & County Government Center; and Whereas, the City of Brookings has received the following bids for Snow Removal Equipment: Four (4) Motor Graders with Wings: Two bids were received. 1) Bowes Construction, Inc., CAT, $185.00/hour; and 2) Bowes Construction, Inc., CAT w/ Wing, $200.00/hour. One (1) 3- to 6-Yard Loader: Six bids were received. 1) Winter Contracting LLC, 644K, 4.50 cubic yards, $184.00/hour; 2) Winter Contracting, LLC, 624K, 3.50 cubic yards, $145.00/hour; 3) Bowes Construction, CAT, 5.00 cubic yards, $220.00/hour; 4) Bowes Construction, CAT, 4.00 cubic yards, $190.00/hour; 5) Bo wes Construction, CAT, 3.00 cubic yards, $170.00/hour; and 6) Timmons Construction, Inc., Hyundai 757, 3.30 cubic yards, $155.00/hour. Four (4) Loaders with Reversible Blades: One bid received. 1) Bowes Construction, CAT, $210.00/hour. Ten (10) End-Dump Trucks: Thirteen bids were received. 1) DeBoer Construction, #102, 28.00 cubic yards, $135.00/hour; 2) Winter Contracting, Inc., #14, 23.00 cubic yards, $122.00/hour; 3) DeBoer Construction, #101, 23.00 cubic yards, $125.00/hour; 4) Bowes Construction, Inc., #26, 22.70 cubic yards, $130.00/hour; 5) Bowes Construction, Inc., #27, 22.70 cubic yards, $130.00/hour; 6) Bowes Construction, Inc., #29, 22.70 cubic yards, $130.00/hour; 7) Bowes Construction, Inc., #30, 22.70 cubic yards, $130.00/hour; 8) Prussman Contracting, Inc., #19, 22.80 cubic yards, $135.00/hour; 9) Prussman Contracting, Inc., #20, 22.80 cubic yards, $135.00/hour; 10) Prussman Contracting, Inc., #22, 22.20 cubic yards, $135.00/hour; 11) Timmons Construction, Inc., #4, 22.20 cubic yards, $135.00/hour; 12) Prussman Contracting, Inc., #21, 20.60 cubic yards, $135.00/hour; and 13) Prussman Contracting, Inc., #23, 19.50 cubic yards, $135.00/hour. Four (4) Side-Dump Trucks: Four bids were received. 1) Winter Contracting, LLC, #10, 34.00 cubic yards, $138.00/hour; 2) Winter Contracting, LLC, #12, 32.00 cubic yards, $138.00/hour; 3) DeBoer Construction, Inc., #103, 34.00 cubic yards, $150.00/hour; and 4) DeBoer Construction, Inc., #104, 34.00 cubic yards, $150.00/hour. Now Therefore, Be It Resolved the following bids be accepted: Four (4) Motor Graders with Wings: Two bids were received. 1) Bowes Construction, Inc., CAT, $185.00/hour; and 2) Bowes Construction, Inc., CAT w/ Wing, $200.00/hour. One (1) 3- to 6-Yard Loader: Six bids were received. 1) Winter Contracting LLC, 644K, 4.50 cubic yards, $184.00/hour; 2) Winter Contracting, LLC, 624K, 3.50 cubic yards, $145.00/hour; 3) Bowes Construction, CAT, 5.00 cubic yards, $220.00/hour; 4) Bowes Construction, CAT, 4.00 cubic yards, $190.00/hour; 5) Bowes Construction, CAT, 3.00 cubic yards, $170.00/hour; and 6) Timmons Construction, Inc., Hyundai 757, 3.30 cubic yards, $155.00/hour. Four (4) Loaders with Reversible Blades: One bid received. 1) Bowes Construction, CAT, $210.00/hour. Ten (10) End-Dump Trucks: Thirteen bids were received. 1) DeBoer Construction, #102, 28.00 cubic yards, $135.00/hour; 2) Winter Contracting, Inc., #14, 23.00 cubic yards, $122.00/hour; 3) DeBoer Construction, #101, 23.00 cubic yards, $125.00/hour; 4) Bowes Construction, Inc., #26, 22.70 cubic yards, $130.00/hour; 5) Bowes Construction, Inc., #27, 22.70 cubic yards, $130.00/hour; 6) Bowes Construction, Inc., #29, 22.70 cubic yards, $130.00/hour; 7) Bowes Construction, Inc., #30, 22.70 cubic yards, $130.00/hour; 8) Prussman Contracting, Inc., #19, 22.80 cubic yards, $135.00/hour; 9) Prussman Contracting, Inc., #20, 22.80 cubic yards, $135.00/hour; 10) Prussman Contracting, Inc., #22, 22.20 cubic yards, $135.00/hour; 11) Timmons Construction, Inc., #4, 22.20 cubic yards, $135.00/hour; 12) Prussman Contracting, Inc., #21, 20.60 cubic yards, $135.00/hour; and 13) Prussman Contracting, Inc., #23, 19.50 cubic yards, $135.00/hour. Four (4) Side-Dump Trucks: Four bids were received. 1) Winter Contracting, LLC, #10, 34.00 cubic yards, $138.00/hour; 2) Winter Contracting, LLC, #12, 32.00 cubic yards, $138.00/hour; 3) DeBoer Construction, Inc., #103, 34.00 cubic yards, $150.00/hour; and 4) DeBoer Construction, Inc., #104, 34.00 cubic yards, $150.00/hour. Resolution 20-080. A motion was made by Council Member Bacon, seconded by Council Member Brink, that Resolution 20-080, a Resolution Awarding Bids on 2020- 2021 Snow and Ice Removal Road Salt, be approved. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, and Collins. Resolution 20-080 - Resolution Awarding Snow and Ice Removal Road Salt Whereas, the City of Brookings opened bids for Snow and Ice Removal Road Salt on Thursday, October 2, 2020 at 1:30 pm at Brookings City & County Government Center; and Whereas, the City of Brookings has received the following bids: Johnson Feed, Canton, SD, $74.00/ton Blackstrap, Inc., Neligh, NE, $74.30/ton Mills and Miller, Brandon, SD, $78.00/ton Central Salt, Lyons, KS, $86.01/ton Now Therefore, Be It Resolved the bid for Snow and Ice Removal Road Salt be awarded to Johnson Feed, Canton, SD in the amount of $74.00/ton. City General Employee Contract. A motion was made by Council Member Wendell, seconded by Council Member Brink, that the City General Employee Contract be approved. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, and Collins. Police Department Union Contract. A motion was made by Council Member Wendell, seconded by Council Member Bacon, that the Police Department Union Contract be approved. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, and Collins. Resolution 20-081. A motion was made by Council Member Bacon, seconded by Council Member Wendell, that Action on Resolution 20-081, a Resolution authorizing the Execution of a Real Estate Sale Acquisition Agreement. be approved. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, and Collins. Resolution 20-081 - Resolution Authorizing the Execution of a Real Estate Sale Acquisition Agreement Be It Resolved by the City Council of the City of Brookings, South Dakota as follows: Whereas, the City of Brookings desires to purchase the following described property: Approximately 3.48 Acres in the Southeast ¼ of the McClemans Addition to the City of Brookings, County of Brookings, State of South Dakota. Whereas, the property has been offered to the City and the City of Brookings has prepared a proposed Real Estate Acquisition Agreement, the terms of which are satisfactory to the City of Brookings. Now, Therefore, It Is Hereby Resolved the City Council of the City of Brookings, South Dakota, as follows: A. That the City acquire title to the above-described real property pursuant to a Real Estate Sale Acquisition Agreement with Prairie Meadow, Inc., Mike McClemans and Kathy McClemans; and B. That the Mayor, City Clerk, City Attorney and City Manager are authorized to execute the documents required to complete this transaction in accordance with this Resolution. FIRST READING – Ordinance 20-022. An introduction and first reading was held on Ordinance 20-022, an Ordinance Establishing a Public Works Department. Second Reading: October 27, 2020. A motion was made by Council Member Brink, seconded by Council Member Wendell, to hold additional discussion on Ordinance 20 -022, an Ordinance Establishing a Public Works Department, at an upcoming Study Session. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, and Collins. Ordinance 20-021. A public hearing was held on Ordinance 20-021, an Ordinance Amending Chapter 51, Subdivision Regulations, pertaining to Information Required for a Preliminary Plat and Final Plat. A motion was made by Council Member Wendell, seconded by Council Member Brink, that Ordinance 20-021 be approved. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, and Collins. Resolution 20-082. A public hearing was held on Resolution 20 -082, a Resolution giving approval to certain Storm Drainage Improvements; giving approval to the Issuance and Sale off a Revenue Bond to Finance, Directly or Indirectly, the Improvements to the Facilities; approving the Form of the Loan Agreement and the Revenue Bond and Pledging Revenues and Collateral to Secure the Payment of the Revenue Bond; and creating Special Funds and Accounts for the Administration of Funds for Operating of the System and Retirement of the Revenue Bond. (State Avenue Watershed Improvement Project). A motion was made by Council Member Brink, seconded by Council Member Wendell, that Resolution 20-082 be approved. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, and Collins. Resolution 20-082 - Resolution Giving Approval To Certain Storm Drainage Improvements; Giving Approval To The Issuance And Sale Of A Revenue Bond To Finance, Directly Or Indirectly, The Improvements To The Facilities; Approving The Form Of The Loan Agreement And The Revenue Bond And Pledging Revenues And Collateral To Secure The Payment Of The Revenue Bond; And Creating Special Funds And Accounts For The Administration Of Funds For Operating Of The System And Retirement Of The Revenue Bond. (State Avenue Watershed Improvement Project) Whereas, one of the purposes of SDCL Chapter 9-40 (the “Act”) as found and determined by the Legislature is to provide for financing the acquisition, maintenance, operation, extension or improvement of any system or part of any system for the collection, treatment and disposal of sewage and other domestic, commercial and industrial wastes; or any system for the control of floods and drainage; or any combination thereof, together with extensions, additions, and necessary appurtenances; and, Whereas, a municipality is authorized by Section 6 of the Act to issue revenue bonds to defray the cost of extensions, additions and improvements to any utility previously owned and is authorized to pledge the net income or revenues from the net income or revenues from the system in accordance with Section 15 of the Act; and, Whereas, the City of Brookings (the “City”) currently operates a storm drainage system for the control of floods and other storm water drainage and has determined that improvements to the storm drainage system are necessary for the conduct of its governmental programs and qualifies as an improvement, extension or addition to its storm drainage, and has determined that improvements to the storm drainage system are necessary for the conduct of its governmental programs and qualifies as an improvement, extension or addition to its storm drainage system; and, Whereas, the City has determined to issue its revenue bonds to finance the improvements to its storm drainage system for the purpose of storm water management (the “System”) and has applied to the South Dakota Conservancy District (the “District”) for a Clean Water State Revolving Fund Loan to finance the improvements; Whereas, the City shall adopt rates and charges to be pledged, segregated and used for the payment of the Revenue Bond. Now, Therefore, Be It Resolved by the City as follows: SECTION 1. Definitions. The terms when used in this Resolution shall have the following meanings set forth in this section unless the context clearly requires otherwise. All terms used in this Resolution which are not defined herein shall have the meanings assigned to them in the Loan Agreement unless the context clearly otherwise requires. “Act” means South Dakota Codified Laws Chapter 9-40. “Loan” means the Loan made by the South Dakota Conservancy District to the City pursuant to the terms of the Loan Agreement and as evidenced by the Revenue Bond. “Project” means the City of Brookings State Avenue Watershed Improvement Project. “Revenue Bond” means the revenue bond or bonds issued the date of the Loan Agreement by the City to the South Dakota Conservancy District to evidence t he City’s obligation to repay the principal of and pay interest and Administrative Expense Surcharge on the Loan. “System” means the City’s system of collection and management of storm water drainage. SECTION 2. Declaration of Necessity and Findings. 2.1. Declaration of Necessity. The City hereby declares and determines it is necessary to construct and finance improvements to its System described as the Project. 2.2. Findings. The City does hereby find as follows: 2.2.1. The City hereby expressly finds that if the Project is not undertaken, the System will pose a health hazard to the City and its inhabitants, and will make the City unable to comply with state and federal law. 2.2.2. Because of the functional interdependence of the various portions of t he System, the fact that the System may not lawfully operate unless it complies with State and federal laws, including SDCL Chapter 34A-2, and the federal Clean Water Act, and the nature of the improvements financed, the City hereby finds and determines that the Project will substantially benefit the entire System and all of its users within the meaning of Sections 15 and 17 of the Act. 2.2.3. The City hereby determines and finds that for the purposes of the Act, including, in particular, Sections 15 and 17 of the Act, that only the net income from the system as improved financed by the Revenue Bond, be pledged for its payment. SECTION 3. Authorization of Loan, Pledge of Revenue and Security. 3.1. Authorization of Loan. The City hereby determines and declares it necessary to finance up to $850,000 of the costs of the Project through the issuance of bonds payable from the net revenues of the system and other funds secured by the City. The City hereby determines that because the Revenue Bond is issued in co nnection with a financing agreement described in SDCL 46A-1-49, pursuant to Section 15 of the Act no election is required to issue the Revenue Bond. 3.2. Approval of Loan Agreement. The execution and delivery of the Revenue Obligation Loan Agreement (the “Loan Agreement”), the form of which is on file with the City Finance Officer (the “Finance Officer”) and open to public inspection, between the City as Borrower and the District, are hereby in all respects authorized, approved and confirmed, and the Mayor and Finance Officer are hereby authorized and directed to execute and deliver the Loan Agreement in the form and content attached hereto, with such changes as the attorney for the City deems appropriate and approves, for and on behalf of the City. The Mayor and Finance Officer are hereby further authorized and directed to implement and perform the covenants and obligations of the City set forth in or required by the Loan Agreement. The Loan Agreement herein referred to and made a part of this Resolution is on file in the office of the Finance Officer and is available for inspection by any interested party. 3.3. Approval of Revenue Bond. The issuance of a revenue bond in a principal amount not to exceed $850,000 as determined according to the Loan Agreement in the form and content set forth in Appendix B attached to the form of Loan Agreement (the “Revenue Bond”) shall be and the same is, in all respects, hereby authorized, approved, and confirmed and the Mayor, Finance Officer, and other appropriate officia ls shall be and are hereby authorized and directed to execute and seal the Revenue Bond and deliver the Revenue Bond to the District, for and on behalf of the City, upon receipt of the purchase price, and to use the proceeds thereof in the manner set forth in the Loan Agreement. The Mayor and Finance Officer are hereby authorized to approve the final terms of the Revenue Bond and their execution and delivery thereof shall evidence that approval. The Revenue Bond shall be issued under the authority of SDCL Chapter 9-40 and SDCL Chapter 6-8B, and the provisions of the Act are hereby expressly incorporated herein as provided in Section 19 of the Act. 3.4. Pledge of Revenues. The Revenue Bond together with the interest thereon, shall not constitute a charge against the City's general credit or taxing power, but shall be a limited obligation of the City payable solely out of the Project Debt Service Account, which payments, revenues and receipts are hereby and in the Loan Agreement pledged and assigned for the equal and ratable payments of the Revenue Bond and shall be used for no other purpose than to pay the principal of, interest and Administrative Surcharge on the Revenue Bond, except as may be otherwise expressly authorized in the Loan Agreement (including the purpose of securing Additional Bonds issued as permitted by the terms thereof). The City hereby irrevocably pledges to the South Dakota conservancy District all income and revenues of the System, including, without limitation, fees, charges to users of the System, penalties and hook-up fees, sign-up fees, proceeds of business interruption insurance, proceeds from the sale of property constituting part of the System and investment income on all such revenues, but only to the extent that the revenues exceed the amounts necessary to operate and maintain the System, provided there shall be excluded from this pledge the proceeds of any federal or state grant or loan, and the investment income therefrom, to the extent such exclusion is a condition of such grant or loan. The City covenants and agrees to charge rates for all services from the System or establish charges or rates which will be sufficient to provide for the payments upon the Revenue Bond issued hereunder as and when the same become due, and as may be necessary to provide for the operation and maintenance and repairs of the System, and depreciation, and the Rate Ordinance shall be revised from time to time so as to produce these amounts. The City hereby reserves the right to determine on a periodic basis the appropriate allocation of operation and maintenance expenses, depreciation, repair and reserves associated with the facilities financed with the Revenue Bond, provided that such determination of allocable operation and maintenance expenses shall in no event abrogate, abridge or otherwise contravene the covenant of the City set forth in this Section 3 or any other covenant or agreement in the Loan Agreement. SECTION 4. Rates, Certification, Segregation and Review. 4.1. Rates and collection There shall be charged rates for each fiscal year which shall ensure that its Net Revenues Available for Debt Service will equal at least 110% of its System Debt Service for such fiscal year. 4.2. Certification. In each fiscal year, or as soon as practicable, and in any event by the date of the delivery of the unaudited financial statements required in the Loan Agreement, the City shall (a) calculate its Net Revenues Available for Debt Service and System Debt Service for the fiscal year, and (b) certify such figures to the South Dakota Conservancy District. The certification described in clause (b) of the preceding sentence shall be substantially in the form of the certificate attached as Appendix E to the Loan Agreement. If the City fails to meet the Rate Covenant set forth in Section 6.4 of the Loan Agreement, the City shall supply the District with quarterly reports on the actions it is taking to correct its coverage deficiency until it delivers an annual coverage certificate showing compliance with the first sentence of this Section. 4.3. Segregation. The Finance Officer shall set up bookkeeping accounts in accordance with South Dakota Legislative Audit guidelines for the segregation of the revenue. 4.4. Periodic review. The storm sewer drainage fees shall be reviewed from time to time, not less than yearly, and shall be modified in order to produce such funds as are necessary and required to comply with the Loan Agreement’s rate covenant and to pay principal of, interest and Administrative Surcharge on the Revenue Bond when due. The rates may be set by ordinance or resolution in accordance with this Section. The rate ordinance or resolution shall be necessary for the support of government and shall be effective upon passage. SECTION 5. Additional Bonds. As permitted by Sections 8 and 9 of the Act, Additional Bonds payable from revenues and income of the System may be issued, as permitted in the Loan Agreement, and no provision of this Resolution shall have the effect of restricting the issuance of, or impairing the lien of, such additional parity bonds with respect to the net revenues or income from the extensions, additions or improvements. The City shall have the right to issue additional bonds secured by a lien subordinate to the lien from the Revenue Bond pursuant to the Loan Agreement. SECTION 6. System Fund Accounts. For the purpose of application and proper allocation of net income of the System and to secure the payment of principal, Administrative Surcharge and interest on the Revenue Bond, the following mandatory asset segregations shall be included in the sewer system account of the City and shall be used solely for the following respective purposes until payment in full of the principal of and interest on the Revenue Bond: 6.1. System Revenue Account. There shall be deposited periodically into the System Revenue Account the net revenues as defined in Section 17 of the Act derived from the operation of the System collected pursuant to the Ordinances and resolutions of the City of Brookings, South Dakota (collectively the “Rate Ordinance”). Moneys from the System Revenue Account shall be transferred periodically into separate funds and accounts as provided below. 6.2. System Debt Service Account. Out of the revenues in the Syste m Revenue Account, there shall be set aside no later than the 25th day of each month into the account designated System Debt Service Account, a sum sufficient to provide for the payment as the same become due of the next maturing principal of, interest and Administrative Surcharge on the Revenue Bonds and any reserve determined by the City’s governing body to be necessary. The amount set aside monthly shall be not less than one-third of the total principal, interest, and Administrative Surcharge payable on the following January 15, April 15, July 15 or October15 and if there shall be any deficiency in the amount previously set aside, then the amount of such deficiency shall be added to the current requirement. 6.3. Depreciation Account. There shall be established a General Depreciation Account. Out of the revenues of the System Revenue Account there shall be set aside each month into the General Depreciation Account an amount determined by the Common Council to be a proper and adequate amount for repair and depreciation of the System. 6.4. System Surplus Account. There shall be established the System Surplus Account. Revenues remaining in the System Revenue Account at the end of any fiscal year after all periodic transfers have been made therefrom as above required, shall be deemed to be surplus and shall be transferred to the System Surplus Account. If at any time there shall exist any default in making any periodic transfer to the System Debt Service Account, the Common Council shall authorize the Cit y Finance Officer to rectify such default so far as possible by the transfer of money from the System Surplus Account. If any such default shall exist as to more than one account or fund at any time, then such transfer shall be made in the order such funds and accounts are listed above. When not required to restore a current deficiency in the System Debt Service Account, moneys in the System Surplus Account from time to time may be used for any of the following purposes and not otherwise: a) To redeem and prepay the Revenue Bond when and as such Revenue Bond becomes prepayable according to its terms; b) To pay for repairs of or for the construction and installation of improvements or additions to the System; and, if the balances in the Project Debt Service Account and the Project Depreciation Account are sufficient to meet all payments required or reasonably anticipated to be made there from prior to the end of the then current fiscal year, then: c) To be held as a reserve for redemption and prepayment of any bonds of the System which are not then but will later be prepayable according to their terms; or d) To be used for any other authorized municipal purpose designated by the Common Council. e) No moneys shall at any time be transferred from the Project Surplus Account or any other account of the Fund to any other fund of the City, nor shall such moneys at any time be loaned to other municipal funds or invested in warrants, special improvements bonds or other obligations payable from other funds, except as provided in this Section. SECTION 7. Approval of Paying Agent/Registrar. The Revenue Bond shall be payable at the office of U.S. Bank National Association, St. Paul, Minnesota, hereby designated as paying agent and registrar. SECTION 8. Approval of Bond Counsel. Meierhenry Sargent LLP is hereby retained as Bond Counsel with respect to the Revenue Bond. SECTION 9. Tax Matters. The Interest on the Revenue Bond shall be excludable from gross income for federal income tax purposes under the Internal Revenue Code of 1986, as amended (“the Code”) and applicable Treasury Regulations (the “Regulations”). SECTION 10. Covenants. The City hereby covenants and agrees with the District and other owners of the Revenue Bond as follows: 10.1. The City will punctually perform all duties with reference to the Project, the System and the Revenue Bond required by the constitution and laws of the State of South Dakota and by this Resolution. 10.2. The City agrees and covenants that it will promptly construct the improvements included in the Project. 10.3. The City covenants and agrees that pursuant to Sections 25 through 27 of the Act, the lawful holders of the Revenue Bond shall have a statutory mortgage lien upon the Project and the extensions, additions and improvements thereto acquired pursuant to the Act, until the payment in full of the principal, interest and Administrative Surcharge on the Revenue Bond, and the City agrees not to sell or otherwise dispose of the System, the Project, or any substantial part thereof, except as provided in the Loan Agreement and shall not establish, authorize or grant a franchise for the operation of any other utility supplying like products or services in competition therewith, or permit any person, firm or corporation to compete with it in the distribution of water for municipal, industrial, and domestic purposes within the City. 10.4. The City covenants and agrees with the District and other owners of the Revenue Bond that it will maintain the System in good condition and operate the same in an efficient manner and at a reasonable cost, so long as any portion of the Revenue Bond remains outstanding; that it will maintain insurance on the System for the benefit of the holders of the Revenue Bond in an amount which usually would be carried by private companies in a similar type of business; that it will prepare, keep and file records, statements and accounts as provided for in this Resolution and the Loan Agreement. The Revenue Bond shall refer expressly to this Resolution and the Act and shall state that it is subject to all provisions and limitations thereof pursuant to Section 19 of the Act. SECTION 11. Depositories. The Finance Officer shall cause all moneys pertaining to the Funds and Accounts to be deposited as received with one or more ba nks which are duly qualified public depositories under the provisions of SDCL Ch. 4-6A, in a deposit account or accounts, which shall be maintained separate and apart from all other accounts of the City, so long as any of the Bonds and the interest thereon shall remain unpaid. Any of such moneys not necessary for immediate use may be deposited with such depository banks in savings or time deposits. No money shall at any time be withdrawn from such deposit accounts except for the purposes of the Funds and Accounts as authorized in this Resolution; except that moneys from time to time on hand in the Funds and Accounts may at any time, in the discretion of the City’s governing body, be invested in securities permitted by the provisions of SDCL 4 -5-6; provided, however, that the Depreciation Fund may be invested in such securities maturing not later than ten years from the date of the investment. Income received from the deposit or investment of moneys shall be credited to the Fund or Account from whose moneys the deposit was made or the investment was purchased, and handled and accounted for in the same manner as other moneys therein. SECTION 12. Consent to Appointment. In the event of mismanagement of the Project, a default in the payment of the principal or interest of the Revenue Bond, or in any other condition thereof materially affecting the lawful holder of the Revenue Bond, or if the revenues of the Project are dissipated, wasted or diverted from their proper application as set forth in the Loan Agreement, Revenue Bond, or herein, the City hereby consents to the appointment of a receiver pursuant to Section 33 of the Act, and agrees that the receiver will have the powers set forth therein, and in Sections 34 and 35 of the Act to operate and administer the Project, and charge and collect rates as described therein. SECTION 13. Severability. If any section, paragraph, clause or provision of this Resolution, the Loan Agreement, the Revenue Bond, or any other Loan Document shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this Resolution or said Loan Agreement, Revenue Bond, or any other Loan Document. SECTION 14. Repeal of Resolution. At such time as the Project Revenue Bond is defeased or paid in full, this Resolution and the special charge or surcharge shall automatically be repealed without any further action of the City. SECTION 15. Authorization of City Officials. The Mayor, Finance Officer, City Attorney and City officials shall be and they are hereby authorized to execute and deliver for and on behalf of the City any and all other certificates, documents or other papers and to perform such other acts as they may deem necessary or appropriate in order to implement and carry out the actions authorized herein. SECTION 16. Effective Date. This Resolution shall take effect on the 20 th day following its publication, unless suspended by a referendum. Resolution 20-083. A public hearing was held on Resolution 20 -083, a Resolution authorizing the City Manager to enter into an Operating Agreement for an On -Sale Liquor Operating Agreement for Gonz Productions, Inc., dba Main Street Pub, Garner Hansen, owner, 408 Main St.: legal description: Block 7, Lot 5, Original Plat Add ition. A motion was made by Council Member Brink, seconded by Council Member Tilton Byrne, that Resolution 20-083 be approved. Public Comment: Garner Hansen, Kirk Simet, Tim Hogan, and Jesse Lee. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, and Collins. Resolution 20-083 - Gonz Productions, Inc., dba Main Street Pub On-Sale Liquor Operating Agreement Now, Therefore, Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Agreement for the Operating Liquor Management Agreement for Liquor between the City of Brookings and Gonz Productions, Inc., dba Main Street Pub, Garner Hansen, owner, 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 408 Main Avenue: legal description: Block 7, Lot 5, Original Plat Addition. Now, Therefore, 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 and renewal for another five (5) years. COVID-19 Update. City Manager Paul Briseno provided an update on COVID-19 to the City Council and public. Adjourn. A motion was made by Council Member Bacon, seconded by Council Member Collins, that this meeting be adjourned at 7:33 p.m. The motion carried by a unanimous vote. CITY OF BROOKINGS __________________________ ATTEST: Keith W. Corbett, Mayor __________________________ Bonnie Foster, City Clerk Brookings City Council October 20, 2020 (unapproved) The Brookings City Council held a Study Session and Special Meeting on Tuesday, October 20, 2020 at 5:00 PM, at the Brookings City & County Government Center Chambers with the following City Council members present: Mayor Keith Corbett; City Council Members Patty Bacon, Nick Wendell, Joey Collins, Leah Brink, Holly Tilton Byrne, and Ope Niemeyer. City Manager Paul Briseno, City Attorney Steve Britzman and City Clerk Bonnie Foster were also present. Action to approve the agenda. A motion was made by Council Member Wendell, seconded by Council Member Bacon, that the agenda be approved. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, and Collins. Discussion on Ordinance 20-010 Renewal. Discussion was held on Ordinance 20-010 Renewal, which expires November 7, 2020. Presentations were given by the following: Bonny Specker, Director SDSU EAM Program, Klint Willert, Superintendent of Brookings School District, Jason Merkley, President and CEO of Brookings Health System, Barry Dunn, SDSU President, Daniel Scholl, SDSU Vice President of Research and Economic Development, Amy Hockett, Sanford Director of Clinic Operations for Brookings Clinic, Patrick Siegling, Avera Director of Clinic Operations, and Kelsey Doom, Brookings Chamber CEO. Discussion on Public Works Department Establishment. City Manager Paul Briseno discussed with the City Council the recommendation to establish a Public Works Department to develop a more cohesive department with coordinated efforts of services for the community. The department would contain the functions of engineering, stormwater, airport, snow removal, mosquito control, street maintenance, fleet, landfill and refuse collection. FIRST READING – Ordinance 20-028. Introduction and First Reading was held on Ordinance 20-028, an Emergency Ordinance Amending Emergency Ordinance 20-010, as previously amended, to Extend and to Comprehensively Adopt Provisions to Address a Public Health Crisis and to Revise Certain Measures which are Necessary for the Immediate Preservation of the Public Health, Safety and Welfare of the City and are Necessary to Slow the Community Spread of Coronavirus (COVID-19) in the City of Brookings, South Dakota. Public Comment: Kristin Heismeyer, Amy Hanley, Nancy Bohlen, Nancy Beech, Bill Alsaker, Cole Sartell, Melodie Lichty, Jael Thorpe, Bradley Walker, Verna Longville, Kyra Wurm, Teresa Hollmon, and Elizabeth Wika. Second Reading: October 27, 2020. Executive Session. A motion was made by Council Member Niemeyer, seconded by Council Member Bacon, to enter into Executive Session at 8:04 p.m., pursuant to SDCL 1-25-2, for discussing the qualifications, competence, performance, character or fitness of any public officer or employee or prospective public officer or employee. The term, employee, does not include any independent contractor. And for consulting with legal counsel or reviewing communications from legal counsel about proposed or pending litigation or contractual matters, with the City Council, City Manager, City Attorney, City Clerk, Susan Rotert, Human Resources Director, Erick Rangel, Chief Financial Officer, and Steve Landon, Employment Law Attorney, present. The motion carried by a unanimous vote. A motion was made by Council Member Niemeyer, seconded by Council Member Brink, to exit Executive Session at 10:30 p.m. The motion carried by a unanimous vote. Adjourn. A motion was made by Council Member Bacon, seconded by Council Member Brink, that this meeting be adjourned at 10:37 p.m. The motion carried by a unanimous vote. CITY OF BROOKINGS __________________________ ATTEST: Keith W. Corbett, Mayor __________________________ 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 20-0441,Version:2 Presentation: 21st Annual Butler Human Rights Award Summary: Dianne Nagy is the 2020 recipient of the Butler Human Rights Award. Attachments: Press Release City of Brookings Printed on 10/23/2020Page 1 of 1 powered by Legistar™ Dianne Nagy Receives 21st Annual Butler Human Rights Award The Dorothy and Eugene T. Butler Human Rights Award is named after the Butlers in recognition of their lifelong advocacy in human rights issues on the local, regional, national and international levels. The annual award recognizes significant volunteer efforts on behalf of human rights. This year’s recipient is Dr. Dianne Nagy who is being recognized for demonstrating quiet yet determined commitment to inclusivity in the City of Brookings for many years in many ways. Dr. Nagy is humble, always working behind the scenes to further humanitarian causes within our city (and beyond). She keeps planning teams and organizational members mindful of their missions, and keeps event attendees focused on their shared purpose. She leads with quiet passion and clear vision. She models inclusivity, treating everyone with kindness and speaking with compassionate candor, unafraid to address “the tough stuff.” “Dianne’s tireless willingness to engage others on issues of human rights is a leavening agent in the dough of our community,” stated Phyllis Cole-Dai who along with Nagy and others created the Brookings Interfaith Council in 2010. In 2016, Nagy petitioned the Human Rights Commission to publicly reaffirm the city’s commitment to equity and social justice and then was one of the primary drafters of the resulting City of Brookings Resolution of Inclusivity which was adopted by the City Council. As a result, the HRC created an inclusivity team, on which Dianne served. This team worked for over a year with the Brookings Public Schools to promote inclusive programming. This led to the formation of a formal district-level inclusivity committee with representatives from each school and an administrative team. In the spring of 2017, Nagy, on behalf of the Brookings Interfaith Council, submitted a successful mini-grant to purchase “Welcome, Neighbor” signs for community residents. The grant was matched by the HRC enabling the purchase of 240 signs that now are visible throughout Brookings. Ruth Harper, 2016 Butler award recipient, stated “Sometimes it is more important to consistently show up and involve others than to offer large donations; sometimes it is the quiet but insistent voice that has the greatest resonance for justice. Dianne Nagy makes Brookings a more accepting, affirming, humane community.” 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 20-084,Version:1 Action on Resolution 20-084, a Resolution authorizing Change Order No. 1 for the Bob Shelden Athletic Field Complex Renovation Project, Clark Drew Construction, Inc. Summary: This resolution will approve Change Order No. 1 for the Bob Shelden Athletic Field Complex Renovation Project. The change order will increase the contract by $45,063.74 for contracted soil hauling, chain link fence replacement, bullpen pitching mound slope changes, and a waterline connection. The change order will be funded from the $300,000 project contingency. To date no contingency has been utilized. Background: This project is the renovation of the Bob Shelden Athletic Field Complex. The project involves field lighting, plaza and grandstand replacement, playing field renovation with synthetic turf infield, fencing, comprehensive site drainage, storm water controls and parking area reconstruction. The project is scheduled to be completed by May 2021. Initially the Street Dept. staff was utilized to assist in the trucking of excess soil from the site. In order to hit project schedule milestones it was determined that additional trucks would be required to remove the soil in order to keep the project on the established timeline. Additional chain link fencing was needed for the project after the school district had the tennis court area removed. The original design had incorporated the existing tennis court fence into the fencing plan. The bullpen pitching mound slopes were modified at the request of staff to improve safety for all users. It was recommended that the slopes be changed to better accommodate a wide variety of age groups that may potentially use those areas. A different waterline connection than what was specified was added to the project at the request of BMU. It was discovered upon excavation that the planned pipe connection point was in poor condition. The total cost of the above change order items will be an increase of $45,063.74 to the contract which will be paid for from $300,000 project contingency funds. The contingency funds are not included within the original contract price but held separately. The change order summary is as follows: Original Contract Price:$2,830,500.00 Increase from Previously Approved Change Order:$ 0.00 Contract Price Prior to this Change Order:$2,830,500.00 Increase of this Change Order (No. 1):$ 45,063.74 City of Brookings Printed on 10/23/2020Page 1 of 2 powered by Legistar™ File #:RES 20-084,Version:1 Contract Price Incorporating This Change Order:$2,875,563.74 Fiscal Impact:The contract will increase by $45,063.74 which will be funded by the $300,000 project contingency fund. Recommendation: Staff recommends approval of the resolution as presented. Attachments: Memo Resolution City of Brookings Printed on 10/23/2020Page 2 of 2 powered by Legistar™ City Council Agenda Memo From: Dusty Rodiek, Parks & Recreation Director Council Meeting: October 27, 2020 Subject: Change Order No. 1 for the Bob Shelden Athletic Field Complex Renovation Project, Clark Drew Construction, Inc. Person(s) Responsible: Dusty Rodiek, Parks & Recreation Director Summary: This resolution will approve Change Order No. 1 for the Bob Shelden Athletic Field Complex Renovation Project. The change order will increase the contract by $45,063.74 for contracted soil hauling, chain link fence replacement, bullpen pitching mound slope changes and a waterline connection. The project has a $300,000 contingency fund that’s recommended for the unexpected change order. The fund has not been utilized. Background: This project is the renovation of the Bob Shelden Athletic Field Complex. The project involves field lighting, plaza and grandstand replacement, playing field renovation with synthetic turf infield, fencing, comprehensive site drainage, storm water controls and parking area reconstruction. The project is scheduled to be completed by May 2021. Item Details: Initially the Street Dept. staff was utilized to assist in the trucking of excess soil from the site. In order to hit project schedule milestones it was determined that additional trucks would be required to remove the soil in order to keep the project on the established timeline. Additional chain link fencing was needed for the project after the school district had the tennis court area removed. The original design had incorporated the existing t ennis court fence into the fencing plan. The bullpen pitching mound slopes were modified at the request of staff to improve safety for all users. It was recommended that the slopes be changed to better accommodate a wide variety of age groups that may potentially use those areas. A different waterline connection than what was specified was added to the project at the request of BMU. It was discovered upon excavation that the planned pipe connection point was in poor condition. The total cost of the above change order items will be an increase of $45,063.74 to the contract which will be paid for from projects $300,000 contingency fund. The change order summary is as follows: Original Contract Price: $2,830,500.00 Increase from Previously Approved Change Order: $ 0.00 Contract Price Prior to this Change Order: $2,830,500.00 Increase of this Change Order (No. 1): $ 45,063.74 Contract Price Incorporating This Change Order: $2,875,563.74 Legal Consideration: SDCL 5-18B-19 allows for a change order up to $250,000 for this size of contract. The change order proposed is within the change order limit allowed by statute. Strategic Plan Consideration: This change order allows the project to stay on schedule, provide the necessary fencing, improve safety and establish a solid waterline connection in a critical area. Financial Consideration: The contract will increase by $45,063.74 which will be funded by the projects $300,000 contingency fund. To date the contingency has not been utilized. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Amend 3. Deny 4. Move to a Study Session 5. Do nothing Staff recommends approval of the resolution as presented. Supporting Documentation: Resolution Resolution 20-084 Resolution Authorizing Change Order No. 1 for the Bob Shelden Athletic Field Complex Renovation Project, Clark Drew Construction, Inc. Be It Resolved by the City Council that the following change order be allowed for the Bob Shelden Athletic Field Complex Renovation Project. Construction Change Order Number 1: Adjustment for contracted soil removal transport, chain link fencing, bullpen slope modification and waterline connection creating an increase of $45,063.74 to the contract. The contingency identified for the Bob Shelden renovation contains $300,000. Passed and approved this 27th day of October, 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 #:RES 20-085,Version:1 Action on Resolution 20-085, a Resolution Approving a Development Agreement between the City of Brookings and Linchpin Corporation for the Development of the Armory Property. Summary: Action to approve a development agreement between the City of Brookings and Linchpin Corporation for the redevelopment of the Armory and construction of a hotel and parking ramp. Linchpin Corporation was selected by the City Council as the preferred development team in November 2019 after completing the Request for Proposals. Background: Over the course of five years, city staff, City Council, Brookings Historic Preservation Commission, State Historical Preservation Office, and a task force have made recommendations and reports on the Armory. Additionally, Request for Proposals were received in 2016 for repurposing the site, and green space alternatives were developed. At the City Council’s 2018 Strategic Goal Session, the determination of the Works Progress Administration (WPA) Armory building was listed as a priority. The City Council determined more accurate cost estimates were needed on building demolition and rehabilitation of the existing structure. Banner was hired to conduct a building evaluation and provide updated cost estimates. Upon completion of the Banner Evaluation Report, another attempt ensued to see if there was interest from the private sector for an adaptive reuse/redevelopment of the Armory. A letter of interest was issued by the City on January 29, 2019. Four responses were received from the private sector. A Request for Qualifications was issued on June 25, 2019 and four responses were received. All four responders were invited to proceed to the Request for Proposal phase and two development teams submitted responses to the RFP. The Armory Review Team, consisting of city staff and members of the Brookings Historic Preservation Commission, interviewed the teams on October 31 and November 1, 2019. On November 26, 2019, the City Council approved moving forward with Linchpin Corporation on a development agreement. Linchpin Corp. submitted a concept whereby the exterior Armory structure would be restored and the interior modifications would consist of office/commercial space, meeting space, and restaurant and lounge. The boutique hotel will consist of 60-70 rooms above a two level parking garage with 90 parking stalls. The proposal is a two phase construction project with the Armory renovations occurring in phase I carrying a renovation cost of $3.36 million. Phase II consists of the hotel and parking garage with an estimated cost of $12.3 million. The total cost of the project would be approximately $15.7 million. City of Brookings Printed on 10/23/2020Page 1 of 2 powered by Legistar™ File #:RES 20-085,Version:1 Fiscal Impact: The City will front the costs of the Armory roof repairs (estimated at $130,000) and be reimbursed through tax increment. Recommendation: Staff recommends approval of the development agreement. Attachments: Memo Resolution Development Agreement Map TIF Guidelines Preliminary Floorplan City of Brookings Printed on 10/23/2020Page 2 of 2 powered by Legistar™ City Council Agenda Memo From: Mike Struck, Community Development Director Council Meeting: October 27, 2020 Subject: Armory Development Agreement Person(s) Responsible: Mike Struck, Community Development Director Summary: Action to approve a development agreement between the City of Brookings and Linchpin Corporation for the redevelopment of the Armory and construction of a hotel and parking ramp. Linchpin Corporation was selected by the City Council as the preferred development team in November 2019 after completing the Request for Proposals. Background: Over the course of five years, city staff, City Council, Brookings Historic Preservation Commission, State Historical Preservation Office, and a task force have made recommendations and reports on the Armory. Additionally, Request for Proposals were received in 2016 for repurposing the site, and green space alternatives were developed. At the City Council’s 2018 Strategic Goal Session, the determination of the Works Progress Administration (WPA) Armory building was listed as a priority. The City Council determined more accurate cost estimates were needed on building demolition and rehabilitation of the existing structure. Banner was hired to conduct a building evaluation and provide updated cost estimates. Upon completion of the Banner Evaluation Report, another attempt ensued to see if there was interest from the private sector for an adaptive reuse/redevelopment of the Armory. A letter of interest was issued by the City on January 29, 2019. Four responses were received from the private sector. A Request for Qualifications was issued on June 25, 2019 and four responses were received. All four responders were invited to proceed to the Request for Proposal phase and two development t eams submitted responses to the RFP. The Armory Review Team, consisting of city staff and members of the Brookings Historic Preservation Commission, interviewed the teams on October 31 and November 1, 2019. On November 26, 2019, the City Council approved moving forward with Linchpin Corporation on a development agreement. Linchpin Corp. submitted a concept whereby the exterior Armory structure would be restored and the interior modifications would consist of office/commercial space, meeting space, and restaurant and lounge. The boutique hotel will consist of 60-70 rooms above a two level parking garage with 90 parking stalls. The proposal is a two phase construction project with the Armory renovations occurring in phase I carrying a renovation cost of $3.36 million. Phase II consists of the hotel and parking garage with an estimated cost of $12.3 million. The total cost of the project would be approximately $15.7 million. Item Details: The City and Linchpin Corporation have been working on a development agreement throughout 2020 as part of the negotiation process. The development agreement recognizes a three phase approach to the project: Phase I: Due Diligence Period Phase II: Armory Renovations/Construction Phase III: Hotel and Parking Ramp Construction The key components of the City’s obligation in the development agreement are as follows:  Responsible for the costs of repairing the roof of the Armory. (TIF eligible expense).  Waiving of the disposal costs at the landfill associated with th e hazardous materials abatement and remediation.  Creation of two Tax Increment Financing (TIF) Districts, one for Phase II and one for Phase III.  Creation of Business Improvement District #2 on the hotel.  Approval of alcohol license(s) upon completed application.  Transfer of the property for $0.00.  Use of the west parking lot and south side of 3rd Street parking for construction staging. Legal Consideration: City Attorney Steve Britzman and Jim Wiederrich, attorney with Woods, Fuller, Shultz *& Smith have worked with the attorney representing Linchpin Corporation on the development agreement and have provided review and edits throughout the process. Strategic Plan Consideration: The Armory adaptive reuse is consistent with Goal 1 under Existing/New Amenities of the City Council Strategic Plan. Financial Consideration: The City will front the costs of the Armory roof repairs (estimated at $130,000) and be reimbursed through tax increment. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Approve with amendment(s) 3. Deny 4. Move the item to a work session 5. Do nothing Staff recommends approval of the development agreement as presented. Supporting Documentation: Memo Resolution Development Agreement Map TIF Guidelines Preliminary Floorplan Resolution 20-085 A Resolution Approving a Development Agreement between the City of Brookings and Linchpin Corporation, for the Development of the Armory Property in the City of Brookings Whereas, the City of Brookings is the owner of the Armory Building and adjacent parking lot located at 221 Main Avenue; and Whereas, one of the goals of the City of Brookings’ Strategic Plan for Economic Development is to assist new business expansion within the downtown central business district, and particularly to encourage renovation; and Whereas, the City of Brookings selected Linchpin Corporation, a private development company, through a competitive process as the preferred developer of the Armory property; and Whereas, the City of Brookings has negotiated a Development Agreement with Linchpin Corporation to form a public-private partnership to oversee the redevelopment, construction, marketing, recruitment, build-out, and overall development of the Armory property. Now, Therefore, Be It Resolved by the City Council of the City of Brookings, South Dakota that the proposed Development Agreement between the City of Brookings and Linchpin Corporation be approved, together with the terms and conditions included therein, for the comprehensive development of the Brookings Armory property. Adopted this 27th day of October, 2020. CITY OF BROOKINGS Keith W. Corbett, Mayor ATTEST: Bonnie Foster, City Clerk Development Agreement 1 DEVELOPMENT AGREEMENT This Development Agreement, dated (insert date here), (the effective date of this Agreement), is entered into between the City of Brookings, a South Dakota municipal corporation (the “City”), and, Linchpin Corporation, a South Dakota corporation, (the “Developer”). This Agreement refers to City and Developer collectively as the “Parties” and singularly as a “Party”. RECITALS WHEREAS, City is the owner of real property located within the City of Brookings at 221 Main Avenue, and legally described as: Lot 1, Front Street Addition, City of Brookings, Brookings County, South Dakota. hereinafter referred to as “the Property;” and WHEREAS, in order to strengthen the public planning process and to encourage private participation in comprehensive planning, City has solicited proposals for development of the Property and has selected Developer to develop the Property, pursuant to this Agreement; and WHEREAS, on November 26, 2019, the City Council voted to enter into with Developer a development agreement for the Adaptive Reuse/Redevelopment of the Historic Armory Building located on the Property (the “Project”); and WHEREAS, Developer has presented to City a development proposal for a commercial development, to include the completion of Developer’s due diligence activities for the Project (the “Phase 1” portion of the Project), the reconstruction of the Armory Building located on the east one-half (approximately) of the Property (the “Armory Property”) into office, retail and hotel amenity spaces (the “Phase 2” portion of the Project), and the construction of a Hotel (the “Phase 3” portion of the Project) to be located on the west one-half (approximately) of the Property (the “Hotel Property”); and WHEREAS, the parties agree the Project is a three-phased development, the development costs will be financed by Developer, a portion of the development costs will be repaid over time through the use of property tax increment financing generated from the Project, and City will have approval over all development plans of the Project prior to Developer commencing construction of each of Phase 2 and Phase 3; and WHEREAS, this Agreement permits Developer to proceed with its due diligence, inspections, design, pre-leasing and financing with assurance that, subject to the conditions of this Agreement, the Project may proceed and be completed as agreed upon by the Parties; and WHEREAS, this Agreement is intended to: (1) minimize uncertainty in planning for, and securing orderly development of the Project; (2) provide the certainty necessary for Developer to make significant investments in public infrastructure, building renovations and other improvements; (3) assure the timely and progressive installation of necessary improvements; (4) Development Agreement 2 provide public services appropriate for each Phase of the Project’s development; (5) establish phasing for the orderly and measured build-out of the Project consistent with the desires of City and Developer so the Property may be developed in a manner consistent with the development objectives of City, as set forth in the City’s request for proposals; (6) allow development to occur at a pace that will assure integration of the Project into the existing community; and (7) provide significant public benefits to City that City would not necessarily receive without this Agreement; and WHEREAS, in exchange for the benefits to City, Developer desires to receive from City (1) the assurance it may proceed with this Project in accordance with the existing land use plan, city ordinances, and the terms and conditions contained in this Agreement, and (2) the benefits afforded Developer under this Agreement; and WHEREAS, City agrees Developer may utilize a Related Party, or more than one Related Party, for all or part of the work contemplated by this Agreement, with “Related Party” meaning any party related to Developer by one of the relationships described in Section 267(b) of the United States Internal Revenue Code of 1986, as amended, or any party controlled by or under common control with Developer; NOW THEREFORE, in consideration of the terms and conditions of this Agreement, Developer and City agree to the foregoing recitals and as follows: 1. PHASED DEVELOPMENT. A. Description of Phases. The Parties anticipate and agree the development of the Property will occur in a phased and staged manner. Phase 1 consists of the due diligence activities contemplated by this Agreement during the Due Diligence Period, as identified in Section 3. Presuming Developer does not provide notice of termination as is allowed in Section 3, Developer will proceed with Phase 2 of the Project by purchasing the Armory Property and Armory Building in their “as is” condition. Developer will, thereafter, be responsible for any operating and renovation expenses involving the Armory Property and Armory Building, unless otherwise agreed with City in writing. Phase 2 of development will consist of renovations to the Armory Building located on the Armory Property, with Phase 2 of the Project consisting of 5-6 leasable office suites, public event/conference space (as requested/required in the Armory redevelopment RFP), Proposed Restaurant with bar/lounge, and back-of house spaces required to support such event/conference spaces and dining establishment. Developer will be allowed a Hotel Due Diligence Period (defined below) in connection with Phase 3. Phase 3 of the Project will consist of improvements to the Hotel Property, which is currently a paved parking lot. Phase 3 will consist of the construction of a hotel (the “Hotel”), containing lobby, circulation cores connecting the Armory and Hotel spaces, Parking structure (the “Parking Ramp”) for approximately 90 conventional spaces (assuming self-park, not counting increases for valet parking configurations), approximately 60-70 hotel rooms, with Development Agreement 3 proposed fitness, amenity, and back-of-house support spaces necessitated by the proposed franchise requirements. The final square footage and room counts in Phase 3 will depend on historic preservation review and any unique height limitations imposed by the city, state, or other authority having jurisdiction with regards to the project. The current design plans for the Project, as of the date of this Agreement, are set forth in the attached Exhibit B. 2. PROPOSED PROJECT SCHEDULE. A. Schedule Milestones. Subject to satisfaction of Armory Sale Conditions and Hotel Sale Conditions contained in this Agreement, the preliminary proposed schedule for the Project is as follows: a. Execution of this Development Agreement: November 20, 2020. b. Completion of Armory Initial Due Diligence Period by Developer: 8 months from execution of Development Agreement. c. Completion of the Armory Supplemental Due Diligence Period by Developer, if Developer exercises an option to extend the Due Diligence Period pursuant to Section 3. d. Phase 2 Armory Property and Armory Building transfer within 30 days of completion of the Due Diligence Period. e. Commencement of construction of the renovations for the Armory Building within 30 days following the transfer to Developer of title to the Armory Property and Armory Building. f. Completion of Phase 2 construction/development: 12 months from closing/final possession of the Armory Building. g. Completion of Hotel Due Diligence by Developer: 20 months from execution of Development Agreement. h. Phase 3 Hotel Property transfer within 30 days of completion of the Hotel Due Diligence Period. i. Commencement of construction of the Hotel and Parking Ramp within 30 days following the transfer to Developer of the Hotel Property. j. Completion of Phase 3 construction/development: 18 months from the date of closing on the Hotel property. 3. DUE DILIGENCE. A. Due Diligence Period. Following execution of this Agreement, Developer will have a period of time to perform its due diligence activities, to inspect the Property, to complete the 11.1 Historic Preservation Review (as contemplated by SDCL 1-19A-11.1), to arrange equity commitments and financing, and to fully satisfy all Armory Sale Conditions contained in this Agreement. Developer will have until July 1, 2021 to perform the due diligence activities and determine if the Armory portion of the Development Agreement 4 Project will proceed (“Armory Initial Due Diligence Period”). If Developer is pursuing its due diligence activities in good faith and with diligent efforts, as is reasonably determined by City, Developer may, at its option, by written notice to City no later than (June 1, 2021, request an extension for a supplemental due diligence period (the “Armory Supplemental Due Diligence Period”). If Developer requests and is granted the Armory Supplemental Due Diligence Period with which to complete its due diligence activities for the Armory Property, then the Armory Supplemental Due Diligence Period and the Armory Initial Due Diligence Period are collectively referred to as the “Armory Due Diligence Period.” If Developer does not request or is not granted the Armory Supplemental Due Diligence Period, then the Armory Initial Due Diligence Period will be the Armory Due Diligence Period. City will have unilateral authority to accept or reject Developer’s request for an extension of the Armory Initial Due Diligence Period, but such authority will be exercised in a reasonable fashion and will seek to minimize to Developer any material detriment. During the Armory Due Diligence Period, Developer will have access to the Armory Property for any inspections. During the Armory Due Diligence Period, Developer agrees to maintain the Armory Property as nearly as possible in its pre-inspection condition, and Developer will pay for and be responsible for any damages to the Armory Property during this Armory Due Diligence Period which are caused by a negligent act of Developer or its employees, agents, consultants, contractors or subcontractors in performance of Developer’s due diligence activities. Notwithstanding the foregoing, City agrees Developer’s due diligence activities may require testing of the physical conditions of the Armory Property including, but expressly not limited to, testing of existing physical conditions of the Armory Building. However, except for the Armory roof, Developer will restore to its pre-due diligence condition the Armory Building and the Property, ordinary wear and tear excepted. It is acknowledged and agreed Developer will selectively remove portions of the existing ceiling in the Armory to allow Developer to inspect the structural conditions for the roof and floor framing. Developer will not be obligated to restore such removed portions, or other inspection-related construction or demolition, back to the pre-due diligence condition. The parties acknowledge and agree Phase 2 and Phase 3 of the Project are separate, distinct, and the success of Phase 2 is not dependent on the successful completion of Phase 3. The parties intend and agree for purposes of this Agreement, Developer will not be required to finalize all plans, financing, permitting, etc., for the Hotel and Parking Ramp construction prior to the commencement of Phase 2, including the Armory Sale to Developer. Notwithstanding the foregoing, if Developer decides, during the Armory Due Diligence Period, to not proceed with Phase 2, Developer will forfeit the right to proceed with Phase 3. Developer will have a second due diligence period (the “Hotel Due Diligence Period”) after the commencement of Phase 2 of the Project to complete its due diligence activities for the Hotel Property. Developer will have until June 1, 2022 to perform its due diligence activities and determine if the Hotel portion of the Project will proceed. During the Hotel Due Diligence Period, Developer will undertake to meet and satisfy all of the Hotel Sale Conditions and other requirements under this Agreement in connection with Phase 3 of the Project, including without limitation, (i) finalization of the Hotel and Parking Ramp construction plans, (ii) Developer’s submission, and City’s approval of any necessary, or reasonably requested, zoning or other land use regulation changes or exceptions in connection with Phase 3, and (iii) Developer’s obtaining from City tax increment financing for Phase 3. Development Agreement 5 B. Due Diligence Activities. Further, due diligence activities may include, but are not limited to the following: (i) Developer’s physical testing of the Property, including structures on the Property and environmental testing of the Property. (ii) Developer’s completion of site analysis work, including but not limited to, engineering studies, environmental analysis, and 11.1 Historic Preservation Review. (iii) Developer’s finalization of the Developer’s Development Plan. (iv) Developer’s submission, and City’s approval of any necessary, or reasonably requested, zoning or other land use regulation changes or exceptions. (v) Obtaining from City tax increment financing under two separate applications, one for Phase 2 and one for Phase 3. (vi) Other necessary activities as mutually agreed by the parties. Notwithstanding anything to the contrary contained herein, Developer may arrange and commence work to repair the Armory roof and undertake any and all necessary hazardous material abatement at the Armory during the Armory Due Diligence period. Prior to the commencement of the roof repair and Hazmat Abatement, Developer will provide City with a separate fixed price bid or not to exceed guaranteed maximum price for the cost of the repair of the Armory Building roof, which cost is to be reimbursed by City. The total cost of the Armory Building roof may be included in the TIF for Phase 2, and in that event, will be the first cost reimbursed by the taxes collected therefor. Developer will be responsible for contracting for and arranging such Hazmat Abatement, subject to City waiving dumping/disposal fees incurred by Developer in connection with the disposal of hazardous material at the City’s landfill to the extent disposal at the City’s landfill is allowed under applicable laws. C. Access to Property. For purposes of Developer’s access to the Property during the Armory Due Diligence Period and the Hotel Due Diligence Period, City agrees Developer will be considered a tenant of City in connection with Developer’s rights and obligations during the Armory Due Diligence Period and the Hotel Due Diligence Period. To that end, City will cooperate with Developer to allow Developer to seek “Tenant Improvement” financing in connection with any activities of Developer during the Armory Due Diligence Period and the Hotel Due Diligence Period, provided City incurs no obligation to make improvements during Developer’s “tenancy,” and the Property remains free and clear of all mortgages, mechanics’ liens, judgements, security interests and other encumbrances of any kind. Development Agreement 6 D. Termination During Due Diligence Periods. Should the results of Developer’s activities described in this Section be not satisfactory to Developer, then, prior to the expiration of the Armory Due Diligence Period, Developer must notify City in writing of the failure to satisfy Developer’s Armory Due Diligence requirements and Developer’s election to terminate this Agreement, in which case this Agreement will become null and void, except for the provisions of Sections 3, 21, 22, 23, 28 and 32. If Developer has not given to City notice of termination by the end of the Armory Due Diligence Period, then Developer will be obligated to complete all Armory Sale Conditions and proceed to complete the Project. Should the results of Developer’s activities in connection with the Hotel Due Diligence Period be not satisfactory to Developer, then Developer must notify City in writing of the failure to satisfy Developer’s Hotel Due Diligence requirements and Developer’s election to terminate Phase 3 of the Project. Developer’s termination of Phase 3 of the Project will render all terms and conditions of this Agreement in connection with Phase 3, null and void, except for the provisions of Sections 3, 21, 22, 23, 28 and 32. Developer’s termination of Phase 3 of the Project will not impact Developer’s or City’s obligations under this Agreement in connection with Phase 2 of the Project. 4. SALE OF ARMORY PROPERTY AND ARMORY BUILDING. A. City’s Sale Obligations. Upon Developer’s successful completion of the Armory Sale Conditions, as defined in Section 4.C, City agrees to convey to Developer the Armory Property and the Armory Building. The conveyance will be made subject to the terms and conditions of this Agreement. City will utilize SDCL 9-27-36, SDCL 9-27-37, and SDCL 9-54-1 to facilitate the transfer of the Armory Property and Armory Building for economic development purposes. The Parties intend and agree the provisions of this Agreement will constitute covenants which will run with the Armory Property and Armory Building, and the burdens and benefits of this Agreement will bind and inure to all successors in interest to the Parties. Accordingly, the terms of this Agreement may be recorded, as an attachment to an affidavit or by other means acceptable to the Register of Deeds, in the Brookings County Office of the Register of Deeds, as covenants running with the Armory Property and Armory Building. B. Consideration/Purchase Price for Armory Property and Armory Building. Developer agrees to acquire, and City agrees to convey to Developer, the Armory Property and Armory Building for and in consideration of the terms and agreements of this Agreement. No cash consideration will be payable for the Armory Property and Armory Building. Development Agreement 7 C. Sale Conditions for Armory Property and Armory Building. City will not be obligated to sell to Developer, and Developer will not be obligated to purchase from City, the Armory Property and Armory Building, unless during the Armory Due Diligence Period Developer has completed, and City has approved, in its sole discretion, all of the following requirements (the “Armory Sale Conditions”): (i) Developer has not given notice of termination of this Agreement during the Armory Due Diligence Period. (ii) Developer has provided documentation confirming Developer, or its Related Parties, has the equity and loan financing required to complete Phase 2. (iii) Developer has provided Developer’s Development Plan confirming use of the space within the Armory Building, the design and construction schedules therefore, and the proposed ownership, leasing and management arrangements for the Armory Building. (iv) Developer has provided to City the Armory Building construction documents, as defined by the American Institute of Architects or the Engineers Joint Contract Documents Committee and meeting the requirements of Section 12.A. (v) Developer has until the closing date on the sale of the Armory Building and the Armory Property to meet the requirements and fulfill Developer’s obligations under this Agreement and the Development Plan. (vi) Developer has provided one or more fixed price bids or guaranteed maximum prices for completion of Phase 2, exclusive of the cost of repairing the Armory Building roof. (vii) There are not pending any third party lawsuits or claims, or governmental investigations, actions or proceedings, against Developer and its Related Parties that would have a material adverse impact upon the Project or the Property. (viii) Developer has obtained for Phase 2 all permits, historical building approvals, tax increment financing, and other licenses, and approvals required in order to commence and complete construction for the renovation of the Armory Building. (ix) Developer has disclosed the identities and obligations of all Related Parties in connection with Phase 2. (x) Developer has obtained payment and performance bonds for the full cost of the bids or guaranteed maximum prices have been obtained for Phase 2. (xi) Developer has applied for, and City has awarded, tax increment financing for Phase 2. (xii) This Agreement will not be or have been subject to a pending or adverse referendum as described in Section 11. (xiii) Developer is not in default of its obligations under this Agreement. Development Agreement 8 5. SALE OF HOTEL PROPERTY. A. City’s Sale Obligations. Upon Developer’s successful completion of the Hotel Property Sale Conditions, as defined in Section 5.C, City agrees to convey to Developer the Hotel Property. The conveyance will be made subject to the terms and conditions of this Agreement. City will utilize SDCL 9-27-36, SDCL 9-27-37, and SDCL 9-54-1 to facilitate the transfer of the Hotel Property for economic development purposes. The Parties intend and agree the provisions of this Agreement will constitute covenants which will run with the Hotel Property, and the burdens and benefits of this Agreement will bind and inure to all successors in interest to the Parties. Accordingly, the terms of this Agreement may be recorded, as an attachment to an affidavit or by other means acceptable to the Register of Deeds, in the Brookings County Office of the Register of Deeds, as covenants running with the Hotel Property. B. Consideration/Purchase Price for Hotel Property. Developer agrees to acquire, and City agrees to convey to Developer, the Hotel Property for and in consideration of the terms and agreements of this Agreement. No cash consideration will be payable for the Hotel Property. C. Sale Conditions for Hotel Property. City will not be obligated to sell to Developer, and Developer will not be obligated to purchase from City, the Hotel Property, unless during the Hotel Due Diligence Period, Developer has completed, and City has approved, in its sole discretion, all of the following requirements (the “Hotel Sale Conditions”): (i) Developer has not given notice of termination of this Agreement during the Hotel Due Diligence Period. (ii) Developer has provided documentation confirming Developer, or its Related Parties, has the equity and loan financing required to complete Phase 3. (iii) Developer has provided documentation confirming Developer or the Hotel franchisee has the equity and loan financing required to complete Phase 3. (iv) Developer has provided Developer’s Development Plan confirming use of the Hotel and Parking Ramp, the design and construction schedules therefore, and the proposed ownership, leasing and management arrangements for the Hotel and Parking Ramp. (v) Developer has provided the Hotel and Parking Ramp construction documents, as defined by the American Institute of Architects or the Engineers Joint Contract Documents Committee, and meeting the requirements of Section 12.A. (vi) Developer has, as of the closing date on the sale of the Hotel Property, met all of the requirements of and fulfilled Developer’s obligations under this Agreement and the Development Plan. (vii) Developer’s hotel franchise or other similar arrangement for construction and operation of the Hotel, as approved by City, remains in full force and effect. Development Agreement 9 (viii) Developer has received City’s approval for the establishment of a second business improvement district for Phase 3, separate from the general business improvement district for the maintenance of the Parking Ramp. (ix) Developer has provided one or more fixed price bids or guaranteed maximum price for completion of Phase 3. (x) There are not pending any third party lawsuits or claims, or governmental investigations, actions or proceedings, against Developer and its Related Parties that would have a material adverse impact upon the Project or the Property. (xi) Developer has obtained for Phase 3 all permits, historical building approvals, and other licenses, and approvals required in order to commence and complete construction for the Hotel Project. (xii) Developer has disclosed the identities and obligations of all Related Parties. (xiii) Developer has obtained payment and performance bonds for the full cost of the bids or guaranteed maximum prices have been obtained for Phase 3. (xiv) Developer is not in default of its obligations under this Agreement. (xv) Developer is not in default of its obligations under any engineering, architectural, construction or other contract for the renovation of the Armory Building for Phase 2. (xvi) Developer and its Related Parties are not in default of their equity and financing commitments for the renovation of the Armory Building for Phase 2. (xvii) This Agreement will not be or have been subject to a pending or adverse referendum as described in Section 11. (xviii) Developer has applied for, and City has awarded, tax increment financing for Phase 3. 6. SALE REQUIREMENTS. A. City to Provide Marketable Title. Developer’s obligation to purchase the Property pursuant to this Agreement is contingent upon City providing to Developer marketable title to the Property by warranty deeds, which warranty deeds only contain easements, rights-of-way and restrictions of record acceptable to Developer. 7. CLOSING COSTS. A. Responsibilities of Parties. Developer and City agree to equally split the cost of title insurance search fees and premiums for owner’s policies of title insurance, and all closing costs of the closing agent associated with the sale and transfer of the Property from City to Developer. Developer will pay all title insurance fees for endorsements requested by Developer and any lender policy of title insurance. 8. DEVELOPER OBLIGATIONS. A. General Description of Developer’s Obligations. Developer understands and agrees to the following obligations: Development Agreement 10 (i) Complete site development and environmental assessment of the Property. (ii) Confirm the applicable land use regulations and develop the Property consistent with all applicable regulations. (iii) Complete the analysis of necessary public and private infrastructure and street/utility improvements, and pay for the improvements required, all in accordance with this Agreement and Developer’s proposal for the Property. (iv) Pay the usual and customary building permit fees. (v) Pay the usual and customary application and development fees of City. (vi) Pay all Phase 1, Phase 2, and Phase 3 Environmental Site Assessments of the Property desired by Developer or required by applicable laws. (vii) Submit two applications for the use of tax increment financing, one for each of Phase 2 and Phase 3, and adhere to applicable terms and conditions of the duly- approved tax increment development agreements to be negotiated with City. (viii) Procure goods and services for architectural services, engineering services and construction and renovations of the Armory Building, Hotel and Parking Ramp, and construct the Project in accordance with this Agreement and Developer’s proposal for development of the Project. (ix) Cause, at Developer’s cost, the plat to be prepared and filed for the separation of the Armory Property from the Hotel Property. B. Improvements. Developer will develop the Property in accordance with and subject to the terms and conditions of this Agreement, any amendments to this Agreement and pursuant to Developer’s Development Plan as, from time-to-time, may be approved by City. Developer’s failure to comply with any term or condition of, or fulfill any obligation of, Developer under this Agreement, any amendments to this Agreement or Developer’s Development Plan as may have been approved pursuant to this Agreement, will constitute a default by Developer under this Agreement. C. Developer’s Obligations to Pay for Improvements. Except for the waiver of landfill fees by City for the disposal of hazardous material at City’s landfill site, and the cost of repairing the roof of the Armory Building, as approved by City pursuant to Section 9.A (vii) of this Agreement, Developer will be responsible, at its sole cost and expense, to pay for and make the improvements to the Property. D. City’s Applications. City agrees it will accept for processing, review and action, all completed applications for zoning, special permits, development permits, tentative maps, subdivision maps, tax increment financing applications, liquor license applications, business improvement district proposals, and other submissions for this Project in accordance with its customary procedures and this Agreement; provided, however City will exercise any and all commercially reasonable efforts to ensure that Developer, or its assigns, is able to purchase and/or obtain a full restaurant liquor license and, as one may become available under the City’s allocation or apportionment Development Agreement 11 procedures, an “on-sale” liquor license City will inform Developer, upon request, of the necessary submission requirements pertaining to permit applications, and will review Developer’s applications and schedule the applications for review or hearing by the appropriate authority. Notwithstanding the foregoing, City is not bound to approve any and all applications, permits, plans and other submissions, all of which must be completed to City’s satisfaction. If Developer is not able to obtain all approvals, permits and other consents required, in Developer’s sole opinion, Developer’s sole remedy will be to terminate this Agreement during the Armory Due Diligence Period or the Hotel Due Diligence Period, as applicable. After the Armory Due Diligence Period or the Hotel Due Diligence Period, as applicable, provided Developer has not terminated this Agreement in accordance with this Agreement, Developer will not be allowed to terminate this Agreement, and must amend its plans as required in order to obtain City’s approvals, permits and other consents. E. Condition of Property. Developer will be allowed to make inspections of the Property as part of Developer’s due diligence activities. DEVELOPER’S PURCHASE OF THE PROPERTY WILL BE ON AN “AS-IS WITH ALL FAULTS” BASIS WITH ANY AND ALL PATENT AND LATENT DEFECTS, INCLUDING THOSE RELATING TO THE ENVIRONMENTAL CONDITION OF THE PROPERTY, AND DEVELOPER WILL NOT RELY ON ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, OF ANY KIND WHATSOEVER FROM CITY AS TO ANY MATTERS CONCERNING THE CONDITION OF THE ARMORY BUILDING OR PROPERTY. 9. CITY OBLIGATIONS. A. City understands and agrees to the following obligations: (i) Assist Developer with the documentation required by SDCL Ch. 11-9 and the City’s TIF Policy, including but expressly not limited to the TIF Project Plans for Phase 2 and Phase 3, consistent with this Development Agreement. (ii) Assist Developer with the filing of liquor license applications consistent with this Development Agreement. (iii) Assist Developer with the documentation required under SDCL Ch. 9-55 and Brookings City Ordinances in connection with the establishment of a business improvement district in connection with Phase 3 of the Project. (iv) Transfer to Developer the Armory Building and Armory Property, consistent with the terms and conditions this Agreement. (v) Upon the transfer of the Armory Building and Armory Property, City will provide to Developer access to the Hotel Property, without any additional payments or other consideration being provided by Developer, for purposes of construction staging and other uses related to Developer’s construction under Phase 2 of this Agreement. Developer will have the authority to fence off all or a portion of the Hotel Property for such purposes. (vi) City will provide to Developer access to the public parking area on the south side of 3rd Street, without any additional payments or other consideration, for purposes Development Agreement 12 of construction staging and other uses related to Developer’s construction under Phase 3 of the Project. Developer will have the authority to fence off all or a portion of the public parking area for such purposes. (vii) It is acknowledged and agreed by the Parties the roof of the existing Armory building experienced certain property damage in the summer of 2019. City will be responsible for paying the costs to restore the roof to watertight and “like new” condition. Restoration will occur during the Armory Due Diligence Period, or during Phase 2. Developer will be responsible for arranging and contracting for the work on the roof to be completed; provided, however, City will fund the costs to bring the roof back into the watertight and “like new” condition. The total cost of the Armory Building roof may be included in the TIF for Phase 2, and in the event, will be the first cost reimbursed by the taxes collected therefor. City will not be responsible for costs and expenses in excess of the costs approved by City during the Armory Due Diligence Period. (viii) Developer will be responsible for paying for any and all hazardous material abatement and removal costs (“Hazmat Abatement”) in connection with the Armory Building. To that end, Developer will be responsible for contracting for and arranging such Hazmat Abatement, subject to City waiving dumping/disposal fees incurred by Developer in connection with the disposal of hazardous material at the City’s landfill to the extent disposal at the City’s landfill is allowed under applicable laws. (ix) Signing the plat which will separate the Armory Property from the Hotel Property. 10. TAX INCREMENT FINANCING (“TIF”). As an incentive to development of the Property, tax increment financing (“TIF”) for this Project will be available under the following terms and conditions, and consistent with the City’s Tax Increment Finance District Guidelines, dated January 13, 2009, and attached hereto as Exhibit A (“TIF Policy”). a. Developer may apply for tax increment financing pursuant to City’s TIF Policy governing the application and use of tax increment financing and must pay the applicable application fees. City agrees to expeditiously process said applications and approve mutually agreeable tax increment finance plans for the tax increment districts, provided applicant meets City’s and state of South Dakota’s tax increment financing requirements. The parties agree, a tax increment district will be applicable for Phase 2, and a separate tax increment district will be applicable for Phase 3. b. Developer must pay for and finance all development, construction, and Project costs identified in the Tax Increment Project Plans, as that term is defined in SDCL 11-9-1 and referenced in the TIF Policy, with reimbursement to Developer subject to receipt of future tax increment proceeds from the TIF districts. The Tax Increment Project Plan must describe the eligible costs to be reimbursed from tax increment proceeds and the aggregate maximum amount and duration for which tax increment proceeds may be reimbursed. Development Agreement 13 c. As stipulated in the TIF Policy, properties in a certified tax increment district are not eligible for the Brookings County’s discretionary property tax formula until the district is de-certified. d. The application for Phase 2 will be filed and approved during the Armory Due Diligence Period, with the commencement of the TIF period being timed so as to optimize the use of the TIF funding. e. The application for Phase 3 may be filed and approved during the Hotel Due Diligence Period with the commencement of the TIF period being timed so as to optimize the use of the TIF funding. f. The City’s obligation to reimburse Developer for any costs identified in a Tax Increment Project Plan will be terminated in the event City approval of a tax increment district and tax increment financing is referred by the voters and the voters do not approve the tax increment district and tax increment financing. 11. REFERENDUM. A. Impact of Successful Referendum. The Parties acknowledge the lack of a successful referendum on the City Council’s approval of this Agreement is a condition precedent to the performance of this Agreement by both parties. Briefly stated, the condition precedent concerns the right of the public to petition for referendum concerning this Agreement. A referendum is viewed by City as unlikely. City’s obligation to sell to Developer the Property, along with this Agreement, will be terminated if the City Council’s decision to sell the Property is referred by the voters and the voters do not approve this Agreement. “Referred” means a Petition to Refer, signed by the requisite residents, which Petition to Refer is filed and the voters of the City, at an election, vote to nullify the decision of City to sell to Developer the Property. In the event of a successful referral, City’s obligation to sell Property pursuant to this Agreement will be null and void. This condition precedent will be met at the later of the expiration date of any referendum period if there is no referendum (20 days after the publication of the Resolution approve this Agreement), or the date following the election canvassing if there is a referendum election, and this Agreement is approved at the referendum election. However, a referendum decision by voters which does not approve this Agreement will permit City and Developer to terminate the Project at no cost or liability to either Party. A referendum is not likely, but all government real estate transactions are subject to the possibility of a referendum. 12. PLANS AND SPECIFICATIONS. A. Form of Construction Documents. Developer agrees to prepare, at Developer’s expense, architect or engineer-stamped construction documents as defined by the American Institute of Architects or the Engineers Joint Contract Documents Committee for each of Phase 2 and Phase 3 as set forth in Sections 4.C (iv) and 5.C (v). Site plans will be prepared for the Armory Property and the Hotel Property containing such improvements, and will be drawn to scale addressing zoning, platting, and applicable subdivision regulations. Such construction documents will include, but not be limited to, lots Development Agreement 14 and block design, street layouts, easements and rights-of-way dedications, water systems, sanitary sewer systems, storm sewer systems, electrical systems and lines, natural gas systems and lines, and telecommunication systems, street lighting, curb and gutter, signage, and other infrastructure deemed necessary by City. The Parties agree the street system will be public streets. 13. UTILITIES CONSTRUCTION/RELOCATION. A. Developer’s Obligations for Utilities. Developer will be responsible for costs associated with utility improvements and/or relocation of existing utilities consistent with plans and specifications to be approved by City as necessary for the development and construction of the Project. Developer agrees to solicit, encourage, and utilize all reasonable and prudent means to employ or contract with local contractors, vendors, and service providers for these purposes. 14. PROJECT IMPROVEMENTS. A. Construction Documents/Financing. Developer will be responsible for construction documents suitable for construction, and be responsible for overall financing of improvements for Phase 2 and Phase 3 improvements associated with an adaptive reuse/redevelopment of the Property. B. Phase 2 Improvements. Phase 2 improvements must be consistent with the restoration of the exterior shell and features of the existing Armory Building and associated interior renovations must be consistent with providing professional office, retail, convention/meeting space, restaurant/lounge, and/or back- of-house operations space associated with a hotel and/or convention space. C. Phase 3 Improvements. Phase 3 improvements must consist of improvements associated with construction of a multi- story Hotel and associated parking by way of a Parking Ramp to accommodate the needs of the Hotel, convention space and offices as well as additional parking spaces to be made available to the public. 15. SIGNAGE. A. Developer Signage. Developer will be allowed to install signage advertising the Project following execution of this Agreement with the design, number, and locations mutually agreed upon by both Parties. Any signage must follow applicable signage ordinances, and permits and fees will be Developer’s responsibility. Development Agreement 15 16. RULES, REGULATIONS AND OFFICIAL POLICIES. A. Applicability of Rules, etc. For the term of this Agreement, the rules, regulations, ordinances and official policies governing the permitted uses of land, the density and intensity of use, applicable to the development of the Property, including the zoning of the Property and the maximum height and size of proposed buildings (but not construction standards), will be those rules, regulations, ordinances and official policies in force on the effective date of this Agreement. Except as otherwise provided in this Agreement, to the extent any future changes in the zoning ordinance or any future rules, ordinances, regulations or policies adopted by City purport to be applicable to the Property, but are inconsistent with the terms and conditions of this Agreement, the terms of this Agreement will prevail, unless the Parties mutually agree to amend or modify this Agreement. To the extent any future changes in the zoning ordinances or any future rules, ordinances, regulations or policies adopted by City are applicable to the Project and are not inconsistent with the terms and conditions of this Agreement, such future changes in the zoning ordinances or such future rules, ordinances, regulations or policies will be applicable to this Project. B. State and Federal Laws. This Section will not preclude any requirements of Developer to comply with City rules, ordinances, regulations or policies which are required by state or federal laws or regulations. In the event state or federal laws or regulations enacted after the date of this Agreement prevent or preclude compliance with one or more provisions of this Agreement, or require changes in plans or permits approved by City, this Agreement may be modified, extended or suspended as may be necessary to comply with such state or federal laws or regulations or the regulations of any other governmental jurisdiction. To the extent any actions of federal or state agencies have the effect of preventing, delaying or modifying development of the Project, City will not in any manner be liable for any such prevention, delay or modification of said development. Developer is required, at its cost and without cost to or obligation on the part of City, to comply with such development restrictions C. Health/Safety/Physical Risk Codes, etc. Nothing herein may be construed to limit the authority of City to adopt and apply codes, ordinances and regulations which have the legal effect of protecting persons or property from conditions which create a health, safety or physical risk. D. Compliance with Construction Standards. All construction documents and plans for the Project must comply with the rules, regulations and design guidelines in effect at the time the construction, improvements, and plans are approved. Laws, ordinances, resolutions, rules, regulations and official policies governing the design, improvement and construction standards and specifications applicable to public improvements to be constructed by Developer will be those in force and effect at the time the applicable permit Development Agreement 16 approval for the construction of such improvements is granted. If no permit is required for the public improvements, the date of permit approval will be the date the improvement plans are approved by City or the date construction for the public improvements is commenced, whichever occurs first. E. Uniform Codes Applicable. This Project will be constructed in accordance with the requirements of the International Building, Mechanical, Plumbing, Electrical, and Fire Codes, in effect at the time of approval of the appropriate building, grading, encroachment or other construction permits for the Project. All infrastructure improvements will be constructed in accordance with the provisions of the codes delineated herein in effect at the start of construction of such infrastructure. F. Public Hearings. This section may not be construed to limit the authority or obligation of City to hold necessary public hearings, to limit discretion of City or any of its officers or officials with regard to laws, ordinances, resolutions, rules, regulations, and official policies which require the exercise of discretion by City or any of its officers or officials, provided their respective actions may not conflict with the terms and conditions of this Agreement. 17. RESTAURANT LICENSES. A. License Guidelines/Applications. Both parties understand and agree some businesses seeking to locate in the Project may apply for various types of restaurant alcoholic beverage or malt beverage licenses for their respective business that may be available. The processing of these applications must follow established procedures pursuant to city and state regulations. 18. PERFORMANCE METRICS; REVIEWS BY CITY. A. Specific Development Obligations. Developer and City have agreed the development of the Property by Developer is subject to certain specific development obligations, described herein. These specific development obligations, together with the other terms and conditions of this Agreement, provide the incentive and consideration for City entering into this Agreement. B. Development Timing. Developer will be obligated to comply with the terms and conditions of this Agreement at those times specified in this Agreement. The parties acknowledge Developer cannot, at this time, predict with certainty when or the rate at which plans, specifications, and reviews will be developed and/or completed. As a result, City agrees to exercise reasonable discretion with respect to deadlines and other milestone with respect to Developer and the Project such that Development Agreement 17 City’s actions will seek to minimize detriment to Developer and the Project. In addition, City will, if Developer meets the requirements set forth in Section 3.A, approve the extension of the Armory Due Diligence Period to include the Armory Supplemental Due Diligence Period. Similarly, with respect to Phase 3 and the Hotel Due Diligence Period, City will approve extensions of such deadlines to minimize detriment to Developer and the Project. It is acknowledged as of the date of this Agreement, the COVID-19 pandemic is having a material adverse effect on the hotel and hospitality industry and, as such, Developer’s Hotel Due Diligence Period may need to be extended until such time as current economic environments for the hotel and hospitality industry become more favorable. C. Quarterly Review. Developer will provide to City, during each of the Phases, a quarterly report as to the status of its progress with respect to the Project, and the City Manager will, when such reports are provided, review the status of the Project and evaluate the extent of good faith substantial compliance with the terms and conditions of this Agreement and the Development Plan. Such periodic review will be limited in scope to compliance with the terms and conditions of this Agreement and the Development Agreement. Developer must demonstrate good faith compliance with the terms and conditions of this Agreement and the Development Agreement, and must provide such information as may be reasonably requested by the City Manager, and take those actions necessary to restore compliance with this Agreement and the Development Agreement, as determined by the City Manager to reestablish compliance with this Agreement and the Development Agreement. If, following such review, the City Manager is not satisfied that Developer has demonstrated good faith compliance with all the terms and conditions of this Agreement and the Development Agreement, or for any reason, the City Manager refers to the City Council the matter along with recommendations for possible action, Developer will be provided, in writing at least 10 business days in advance of the matter coming before the City Council, a summary of the reasons for such referral to the City Council. Developer will be afforded reasonable opportunity to rebut such reasons and will be provided a reasonable opportunity to appear before the City Council, should Developer so choose. Failure of City to conduct a quarterly review will not constitute a waiver by City of its rights to otherwise enforce the provisions of this Agreement and the Development Agreement. Nor will Developer have or assert any defense to such enforcement by reason of any such failure to conduct a quarterly review. 19. WARRANTIES. A. Warranties of City. City, as the seller of the Property, hereby represents, warrants and covenants to Developer, as the buyer of the Property, the following: Development Agreement 18 a. City is the fee-owner of the Property with full authority to sell and transfer to Developer the Property. b. There is currently no action or proceeding pending against City pertaining to the Property. c. To the best of City’s knowledge, there are no unrecorded contracts, leases, easements, or other agreements, or claims of any third party, affecting the use, title, occupancy or development of the Property. d. Each and every undertaking and obligation of City under this Agreement will be performed by City in a timely manner. e. To the best of City’s knowledge, City has made to Developer all required property disclosures required by law as to all wells, private sewer systems, and aboveground or underground storage tanks located on the Property. f. Immediately upon execution of this Agreement, City agrees to provide to Developer any and all environmental reports and analysis in its possession pertaining to the Property. g. City warrants there are no outstanding special assessments or taxes encumbering the Property. h. Upon the signing and delivery of this Agreement, this Agreement will be legally binding upon City and enforceable against City in accordance with all of its provisions. i. The transactions contemplated by this Agreement have been duly authorized through appropriate action of City and the City Council and, as a result of such actions, City, by and through the Mayor and Clerk, are authorized, directed, and empowered to sign this Agreement and perform all of City’s obligations under this Agreement. B. Warranties of Developer. a. Developer is duly incorporated, validly existing and in good standing pursuant to the laws of the jurisdiction of its incorporation, and is duly qualified to do business and is in good standing in the jurisdiction in which the Property is located. b. Developer is authorized and empowered to enter into this Agreement and perform all of its obligations under this Agreement. c. Upon the signing and delivery of this Agreement, this Agreement will be legally binding upon Developer and enforceable against Developer in accordance with all of its provisions. d. The person signing this Agreement on behalf of Developer has been duly authorized to sign and deliver this Agreement on behalf of Developer. e. Developer has not committed any act or permitted any action to be taken which would adversely affect its ability to fulfill its material obligations under this Agreement. f. The execution and delivery of this Agreement, and the performance of Developer’s obligations under this Agreement, will not violate or breach, or conflict with, the terms, covenants or provisions of any agreement, contract, note, mortgage, indenture or other document of any kind whatsoever to which Developer is a party. Development Agreement 19 20. DEVELOPER’S INSURANCE. A. Liability Insurance. Developer, at its sole cost and expense, must keep and maintain in full force and effect a policy of commercial general liability insurance insuring all operations of Developer in or about the Property for bodily injury and property damage liability for limits of liability not less than: (a) $1,000,000 each occurrence (combined single limit for bodily injury and property damage); (b) $1,000,000 for personal injury liability; and (c) $1,000,000 general aggregate. The policy must insure against any and all liability of Developer and City with respect to the Property. The policy must name City as an additional insured by endorsement. B. Property Insurance on the Armory Building. Developer, at its sole cost and expense, must keep and maintain in full force and effect a policy of property insurance on the insurable improvements comprising the Armory Building, once title has been transferred to Developer. C. Builder’s Risk Insurance. Developer, at its sole cost and expense, must obtain, keep and maintain builder’s risk insurance policies equal to the cost of the improvements to be made to the Armory Building and the cost of the construction of the Hotel. D. Property Insurance on Personal Property. Developer, at its sole cost and expense, must keep and maintain in full force and effect a policy of insurance covering all of the items compromising Developer’s equipment and personal property. City has no responsibility for loss or damage to the same. E. Worker’s Compensation Employer’s Liability Insurance. Developer, at its sole cost and expense, must keep and maintain during the term of this Agreement, worker’s compensation insurance as required under South Dakota law, and employer’s liability insurance in an amount not less than $500,000 each accident, $500,000 disease each employee, and $500,000 disease policy limit, covering all employees employed by Developer. F. Business Auto Insurance. Developer, at its sole cost and expense, must keep and maintain business auto liability insurance for the combined single limit of not less than $1,000,000 for owned, non-owned and leased vehicles. Development Agreement 20 G. Certificate of Insurance. Developer will cause to be delivered to City a certificate of insurance with regard to the policies required under this Section 20, and which provide, by endorsement, the insurance policies will not be canceled without at least 30 days’ notice to City. H. Developer’s Failure to Maintain Insurance. In the event Developer fails to keep in effect any of the insurance as required under this Section 20, and the failure continues for 15 days following receipt by Developer from City of notice of the failure, City may, at its sole option, obtain the insurance, and the reasonable premium or other reasonable expenses incurred until Developer provides evidence of insurance will be due immediately upon Developer’s receipt of City’s invoice. I. Assignees. Any assignment of Developer’s responsibilities under this Agreement will require the assignee comply with these insurance requirements. 21. INDEMNIFICATION BY DEVELOPER. A. Developer’s Indemnification Obligations. Developer will fully INDEMNIFY, DEFEND and HOLD HARMLESS City and its elected officials, employees, the Mayor, council members, representatives and agents (the “Indemnified Parties”) from and against any and all costs, claims, liens, damages, losses, expenses, fees, fines, penalties, proceedings, actions, demands, causes of action, liability and lawsuits, bodily injury or death of persons and property damage, resulting from or related to (i) Developer’s negligence, willful misconduct or criminal conduct for activities undertaken pursuant to this Agreement and thereafter, including any such acts or omissions of Developer, Developer’s Related Parties, and their respective members, managers, agents, officers, representatives, employees, consultants, sub-consultants, architects, engineers, contractors, subcontractors of any tier and suppliers of any tier while in the exercise or performance of their rights or duties under this Agreement and thereafter. The provisions of this indemnification obligation are solely for the benefit of the Indemnified Parties and not intended to create or grant any rights, contractual or otherwise, to any person or entity. Developer, as appropriate, will promptly advise City in writing of any claim or demand against the Indemnified Parties related to or arising out of Developer’s activities under this Agreement and thereafter and will complete the investigation and defense of such claim or demand at Developer’s cost to the extent required in this section. City will have the right, at its option and expense, to participate in such defense with attorneys of its choice, without relieving Developer of any of its obligations under this Section. Notwithstanding anything contained herein, Developer will be under no obligation to defend, indemnify, or hold harmless City from any claims, liabilities, causes of action, judgments, costs or expenses of any kind, if such claim, liability, causes of action, judgment, cost or expense arises from or relates to the negligent, willful misconduct or criminal conduct of the Indemnified Parties. Development Agreement 21 B. City’s Indemnification Obligations. City will fully INDEMNIFY, DEFEND, and HOLD HARMLESS Developer and its owners, employees and agents, from and against any and all costs, claims, liens, damages, losses, expenses, fees, fines, penalties, proceedings, actions, demands, causes of action, liability and lawsuits, bodily injury or death of persons and property damage, resulting from or related to City’s negligence, willful misconduct or criminal conduct for activities undertaken pursuant to this Agreement and thereafter, including any such acts or omissions of City, City’s elected officials, employees, the Mayor, council members, representatives and agents. City, as appropriate, will promptly advise Developer in writing of any claim or demand against Developer related to or arising out of City’s activities under this Agreement and thereafter and will complete the investigation and defense of such claim or demand at City’s cost to the extent required by this section. Notwithstanding anything contained herein, City will be under no obligation to defend, indemnify, or hold harmless Developer from any claims, liabilities, causes of action, judgments, costs or expenses of any kind, if such claim, liability, causes of action, judgment, cost or expense arises from or relates to the negligent, willful misconduct or criminal conduct of Developer. 22. DEFAULT; REMEDIES; TERMINATION. A. General Provisions. Subject to extensions of time by mutual consent in writing, failure or unreasonable delay by either Party to perform any term or provision of this Agreement will constitute a default. In the event of default or breach of any terms or conditions of this Agreement, the Party alleging such default or breach will give the other Party not less than thirty (30) days’ notice in writing specifying the nature of the alleged default and the manner in which said default may be satisfactorily cured. During any such thirty (30) day period, the Party alleged to be in default will not be considered in default for purposes of termination of this Agreement or the institution of legal proceedings. After notice and expiration of the thirty (30) day period, if such default has not been cured or is not being diligently cured in the manner set forth in the notice, the other Party to this Agreement may at its option: 1. Terminate this Agreement; and/or 2. Institute legal or equitable action to cure, correct or remedy any default, including but not limited to an action for specific performance of the terms of this Agreement; B. Developer’s Default; Enforcement. In the event of a material default on the part of Developer, no building permit will be issued or on other approvals granted, for any structure to be reconstructed or constructed on the Property pursuant to this Agreement, unless such default is cured. Developer will cause to be placed in Development Agreement 22 any covenants, conditions and restrictions applicable to the Property, or in any ground lease or conveyance of the Property, the express provision the provisions of this Agreement must be performed by any such lessee or grantee. C. Enforced Delay, Extension of Times of Performance. If either Party is rendered unable wholly or in part by Force Majeure Event (as defined below) to carry out its obligations under this Agreement, such Party must notify the other Party of the existence and cause of the Force Majeure Event. The obligations of such Party under this Agreement that are affected by such Force Majeure Event, only so far as they are affected by such Force Majeure Event, will be suspended during the continuance of the Force Majeure Event and the affected Party must use its commercially reasonable efforts to remedy the cause of such Force Majeure Event in a reasonably timely manner; provided, however, the milestone dates set forth in Section 2 of this Agreement will not be extended due to any Force Majeure Event, unless mutually agreed upon in writing by the Parties. If a Force Majeure Event extends for a period of one hundred and twenty (120) days or more, then the other Party will have the right, in its sole discretion, to terminate this Agreement upon written notice to the other Party. It is understood and agreed the settlement of strikes or lockouts will be entirely within the discretion of the affected Party and the foregoing requirement that any Force Majeure Event must be remedied with all reasonable dispatch will not require the settlement of strikes or lockouts by acceding to the demands of the opposing party when such course is inadvisable at the discretion of the affected Party. For the purposes of this Agreement, the term “Force Majeure Event” means any event or circumstance that is outside the reasonable control of a Party, such acts of God, epidemics (subject to the provisions set forth below), landslides, mudslides, explosions, fires, storms, hurricanes, tornados, high-water washouts, lightning, earthquakes, severe or unusual weather conditions, floods or similar cataclysmic event, infectious cow diseases of a contagious nature, acts (or failure to act) of governmental authorities, acts of public enemy, wars, armed conflict, blockades, civil disturbance or insurrections, riots, acts or threats of terrorism, sabotage, lockouts, strikes or other labor issues/difficulties or industrial disturbances (suffered by a Party), governmental actions such as the enactment of statutes, laws or regulations frustrating the purpose of this Agreement or the Project, , pandemics, changes in law, failure to obtain or changes in authorizations or permits, interruptions in supply of any utilities, emergencies at the Project, and any other cause or causes, whether of the kind herein enumerated or otherwise, not within the reasonable control of such Party. D. Third Party Litigation. In the event litigation is initiated by any third party that challenges any of the approvals for the Project and an injunction or temporary restraining order is not issued, Developer may submit to City a written request to have the term of this Agreement suspended during the pendency of said litigation. The suspension will commence upon approval by City of the suspension of this Agreement. The suspension will terminate upon the earliest date on which either a final order is issued upholding the challenged approvals or the litigation is dismissed with prejudice by or against all plaintiffs. In the event a court enjoins either City or Developer from taking actions Development Agreement 23 with regard to the Project as a result of such litigation that would preclude either Party from enjoying the benefits provided by this Agreement, then the deadline for any approval provided for under this Agreement will be automatically suspended during the period of time such injunction or restraining order is in effect. E. Attorney’s Fees. If a Party becomes in default of its obligations under this Agreement, the other Party will be entitled to recover its attorneys’ fees incurred due to the default and enforcement of remedies hereunder and under applicable law. 23. DEFAULT-REVERSION. A. Developer’s Termination Costs. In no event will City be responsible for paying Developer’s Termination Costs, as defined in this Section 23.A. If the results of Developer’s due diligence activities are not acceptable to Developer, in Developer’s sole discretion, and Developer elects to not proceed with Phase 2 and/or Phase 3, and instead decides to terminate this Agreement during the Armory Due Diligence Period or with respect to Phase 3, the Hotel Due Diligence Period, then Developer’s Termination Costs, defined below, will be solely Developer’s cost with no contribution by City. “Termination Costs” include all of Developer’s costs and expenses in completing its due diligence activities, and Developer’s attorneys’ fees in the negotiation of this Agreement, in completing due diligence activities and in terminating this Agreement for any reason other than City’s default. B. City’s Reacquisition Rights. If, after transfer of the Armory Property, or any portion thereof, by City to Developer, there is a material default or the Armory portion of the Project is not completed for any reason and such default or failure continues after a reasonable period for Developer to cure the default, City may, but is not obligated to, elect to acquire from Developer the Armory Property. If, after transfer of the Hotel Property, or any portion thereof, by City to Developer, there is a material default or the Hotel portion of the Project is not completed for any reason and such default or failure continues after a reasonable period for Developer to cure the default, City may, but is not obligated to, elect to acquire from Developer the Hotel Property. As applicable, City will have the right to reacquire from Developer the Armory Property or Hotel Property, or any portion thereof, without compensation to Developer. The reacquisition will be subject to the rights of any mortgage, security interest, mechanic’s lien, tax lien or judgment lienholder. City’s right to reacquire the Armory Property will expire upon the substantial completion of Phase 2. The City’s right to reaquire the Hotel Property, will expire upon the issuance of an occupancy permit for the Hotel. Development Agreement 24 C. City’s Reacquisition Costs. In the event City elects to exercise its right to reacquire from Developer the Property, or any portion thereof, Developer will be required to pay the following expenses (the “Reacquisition Costs"): i. All costs required to remove mechanics’ liens, tax liens and judgement liens, exclusive of any judgments of foreclosure upon a mortgage or security interest. ii. All costs required for City to reacquire the Property, or any portion thereof, including, but not limited to, closing costs, title search and premium fees, and filing fees for recording the deed and satisfactions of liens to the extent removed. iii. City’s attorneys’ fees incurred in pursuing and completing the reacquisition of the Property, or a portion thereof. D. Instruments of Service; Indemnity. As between Developer and City during the Armory Due Diligence Period, Developer is and will remain the sole and exclusive owner of all construction plans, studies, surveys, models, sketches, drawings, specifications and other similar materials (the “Instruments of Service”) in connection with the Armory portion of the Project. City may not, for any reason, use, alter, copy, maintain, or otherwise modify the Instruments of Service. In the event City desires to purchase the Instruments of Service from Developer, Developer will be entitled to payment from City for the value of the Instruments of Service. In the event City re-acquires the Property, City will have a limited, irrevocable, and non-exclusive license to use the Instruments of Service solely and exclusively for the purposes of construction, using, maintaining, altering and adding to the Armory portion of the Project. Developer will in its agreement with the architect include this provision. As between Developer and City during the Hotel Due Diligence Period, Developer is and will remain the sole and exclusive owner of all construction plans, studies, surveys, models, sketches, drawings, specifications and other similar materials (the “Instruments of Service”) in connection with the Hotel portion of the Project. City may not, for any reason, use, alter, copy, maintain, or otherwise modify the Instruments of Service. In the event City desires to purchase the Instruments of Service from Developer, Developer will be entitled to payment from City for the value of the Instruments of Service. In the event City re-acquires the Property, City will have a limited, irrevocable, and non-exclusive license to use the Instruments of Service solely and exclusively for the purposes of construction, using, maintaining, altering and adding to the Hotel portion of the Project. Developer will in its agreement with the architect include this provision. However, In the event City alters the Instruments of Service without the author’s written authorization or uses the Instruments of Service for any other project without retaining the authors of the Instruments of Service, City releases Developer, any Related Party and any other person or entity providing services or work for any of them, from all claims and causes of action arising from or related to such uses. City, to the extent permitted by law, Development Agreement 25 further agrees to defend, indemnify, and hold harmless Developer, an y Related Party and any other person or entity providing services or work for any of them, from all costs and expenses, including the cost of defense, related to claims and causes of action asserted by any third person or entity to the extent such costs and expenses arise from City’s alteration or use of the Instruments of Service. 24. EFFECTIVE DATE; TERM OF THIS AGREEMENT. A. Impact of Termination. The effective date of this Agreement will be the date of execution of this Agreement by City. The term of this Agreement will commence upon the effective date and will be in effect until certificates of occupancy are issued by City for the Armory Building, Hotel and Parking Ramp, unless the same is terminated, modified or extended by circumstances set forth in this Agreement or by mutual consent of the Parties. Following the expiration of the term, this Agreement will be deemed terminated and of no further force and effect, except for the provisions of Sections 3, 21, 22, 23, 28 and 32. 25. EARLY TERMINATION. A. Termination Rights. This Agreement will become null and void upon either of the following occurrences: a. Mutual consent of both parties. b. Prior to the expiration of the Due Diligence Period Developer has given to City written notice Developer has terminated this Agreement. 26. GOOD FAITH; MUTUAL COOPERATION. A. Instruments and Actions by City. At any time, and from time-to-time before and after the execution of this Agreement, City will, at the request of Developer, and without further consideration, promptly execute, acknowledge and deliver such further instruments, and take such further actions as Developer may reasonably request in order for Developer to complete Developer’s obligations under this Agreement. However, no such instruments or actions will impose upon City any burden or obligation which is in excess of any burden or obligation specifically imposed upon City pursuant to the terms of this Agreement. Development Agreement 26 B. Instruments and Actions by Developer. At any time, and from time-to-time before and after the execution of this Agreement, Developer will, at the request of City, and without further consideration, promptly execute, acknowledge and deliver such further instruments, and take such further actions as City may reasonably request in order for City to complete City’s obligations under this Agreement. However, no such instruments or actions will impose upon Developer any burden or obligation which is in excess of any burden or obligation specifically imposed upon Developer pursuant to the terms of this Agreement. 27. COVENANTS RUNNING WITH THE LAND. A. Covenants Are Continuing. All provisions of this Agreement will be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do, or refrain from doing, some act with regard to the development of the Property; (a) is for the benefit of and is a burden upon the Property; (b) runs with the Property and each portion thereof; and (c) is binding upon each Party and each successor in interest during ownership of the Property or any portion thereof. 28. NOTICES. A. Notice Requirements. All notices, requests, demands or other communications required or permitted under this Agreement must be in writing and delivered either: (i) personally; (ii) by certified or registered mail, return receipt requested, postage prepaid; (iii) by a recognized overnight courier service (such as Fed Ex); or (iv) by email transmission made during normal business hours with a copy to follow by registered or certified mail, return receipt requested, postage prepaid or by overnight courier service, addressed as follows: City: Paul Briseno City Manager City of Brookings 520 Third Street Brookings, SD 57006 With a copy to: Steve Britzman 521 6th Street, #104 Brookings, SD 57006 Development Agreement 27 Developer: Angela Boersma President Linchpin Corporation 414 Main Avenue, Suite 3 Brookings, SD 57006 With a copy to: Tommy Johnson Boyce Law Firm 300 S. Main Ave Sioux Falls, SD 57104 29. ENTIRE AGREEMENT. A. Merger of Terms. This Agreement constitutes the entire Agreement between City and Developer. There are no other covenants, agreements, promises, terms, provisions, conditions, undertakings or understandings, either oral or written between the Parties concerning the Property, other than those set forth herein. No subsequent agreement, or any amendments thereto, will be binding upon City or Developer unless it is in writing and signed by both Parties. 30. AMENDMENTS. A. Amendment Requirements. This Agreement may be amended from time to time by mutual consent of the Parties. The Parties acknowledge refinement and further implementation of the Project may demonstrate that certain changes may be appropriate with respect to the details and performance of the Parties under this Agreement. The Parties desire to retain a certain degree of flexibility with respect to the details of the Project and with respect to those items covered in the general terms of this Agreement. If and when the Parties find clarifications, changes or minor adjustments are necessary or appropriate, they will effectuate such clarifications, changes or minor adjustment through a written amendment approved signed by Developer and City. 31. ASSIGNMENT. A. Developer May Not Assign. Other than is specifically contemplated herein, this Agreement may not be assigned by Developer to another entity or person without the prior written approval of City, which approval may not be unreasonably withheld, provided: Development Agreement 28 (i) The assignee has the financial ability to meet the obligations proposed to be assigned and to undertake and complete the obligations of this Agreement affected by the assignment; and (ii) The proposed assignee has adequate experience with commercial developments of comparable scope and complexity for the portion of the Project that is the subject of the assignment. (iii) The assignee assumes all of Developer’s obligations under this Agreement, and Developer will remain liable for all obligations under this Agreement. B. Assignment to Related Party. Developer may assign this Agreement, or any part of this Agreement, to a Related Entity without City’s consent. However, Developer will remain liable for all obligations under this Agreement, unless city, in its sole discretion, permits Developer to be released from any or all obligations under this Agreement. 32. LAW GOVERNING. A. Law and Venue. This Agreement will be governed by and construed in accordance with the laws of the state of South Dakota. Venue with respect to any litigation related to this Agreement will be in Circuit Court, Third Judicial Circuit, Brookings County, South Dakota. 33. BINDING EFFECT. A. Persons Bound. All provisions of this Agreement are hereby made binding upon personal representatives, heirs, successors, and assigns of the Parties. IN WITNESS THERETO, the Parties have executed this Agreement as of the effective date. {Signature pages follow} Development Agreement 29 CITY: CITY OF BROOKINGS, SOUTH DAKOTA By: ATTEST: Keith Corbett, Mayor Bonnie Foster, City Clerk STATE OF SOUTH DAKOTA ) )SS. COUNTY OF BROOKINGS ) On this _________ day of ______________________, 2020, before me, the undersigned officer, personally appeared Keith Corbett, Mayor of the City of Brookings, known to me to be the person(s) whose name(s) is/are subscribed to the above and foregoing instrument, and acknowledge to me that she/he executed the same for the purpose therein contained. __________________________ NOTARY PUBLIC My Commission expires _________________________. Development Agreement 30 DEVELOPER: LINCHPIN CORPORATION By: Angela Boersma Its President STATE OF SOUTH DAKOTA ) )SS. COUNTY OF BROOKINGS ) On this _________ day of ______________________, 2020, before me, the undersigned officer, personally appeared Angela Boersma, President of Linchpin Corporation, known to me to be the person(s) whose name(s) is/are subscribed to the above and foregoing instrument, and acknowledge to me that she/he executed the same for the purpose therein contained. __________________________ NOTARY PUBLIC My Commission expires _________________________. Development Agreement 31 EXHIBIT A TIF Policy Development Agreement 32 EXHIBIT B Design Plans 3rd StreetFront StreetMain Avenue221 Main AvenuePublic ParkingPublic ParkingArmory Guidelines for the Use of Tax Increment Finance -City of Brookings, South Dakota- Adopted by the City Council: January 13, 2009 Guidelines for the Use of Tax Increment Finance -City of Brookings, South Dakota- Purpose of these Guidelines: These guidelines are established to outline the City‟s position governing the intended use of tax increment financing (TIF) as an economic development tool for development. These guidelines operate within the parameters of SDCL 11-9 as amended; and shall be used as a procedural framework 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 the 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. 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. 5) As a condition of using TIF, applicants agree to waive their right to use the discretionary formula. The discretionary formula provides a financial incentive in addition to the use of tax increment. Using the discretionary formula lessens the availability of increment needed to finance the project. 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. 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, and personal guarantees. 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. 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 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 section 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 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. 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:______ 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 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 18509 SF050PARKING424 SF008MECHANICAL/STORAGESTAIRWELL 2STAIRWELL 1639 SFA019RESTAURANT -KITCHEN503 SFA001LOBBY500 SFA002OFFICE SUITE 2191 SFA003OFFICE309 SFA004CORR180 SFA005MECHANICAL137 SFA006STORAGE475 SFA007OFFICE SUITE 1103 SFA008CORR173 SFA009RR157 SFA010RR1351 SFA011RESTAURANT AREA 1865 SFA012RESTAURANT AREA 2412 SFA013RESTAURANT -BOH231 SFA014DRY STORAGE183 SFA015LAUNDRY272 SFA016CORR314 SFA017RESTAURANT LOBBY429 SFA018RESTAURANT BAR545 SF006MECHANICAL463 SF005LOBBY108 SFA019ACOLD STORAGE121 SFA019BFREEZER118 SFA113AOFFICE52 SF004ELEV EQUIP206 SF007STORAGE -MECHANICALELEV 1ELEV 2138 SFA007BCONFERENCE127 SFA007AOFFICE132 SFA007COFFICE45 SF132Room85 SFA002BOFFICE84 SFA002AOFFICE76 SFA019CSTAIRWELL79 SFA006ASTORAGE98 SFAEEELEV MECHELEVATOR1" = 10'-0"1SD- HOTEL LEVEL 0 517 SF111LOBBY58 SF109RESTROOM325 SF107BACK OF HOUSE108 SF108OFFICE173 SF112CHECK-IN110 SF113BUS. CTR.52 SF114JAN.ELEV. 2ELEV. 1206 SF118TRASH ENCLOSURE257 SF119MARKETPLACE184 SF120ELEV. LOBBY336 SF121ENTRY503 SF122FIRE SPRINKLER?STAIRWELL 2130 SF123CORRIDOR357 SF124MECHANICAL10240 SF150PARKINGSTAIRWELL 1413 SFA102OFFICE SUITE 3869 SFA100LOBBY248 SFA101OFFICE SUITE 4152 SFA103RR152 SFA104RR109 SFA105AV5776 SFA106INDIGO BALLROOM287 SFA107STORAGE110 SFA101AOFFICE136 SFA102COFFICE152 SFA102BOFFICE225 SFA102ACONFERENCEGROUND LEVELVESTIBULEGROUND LEVELVESTIBULE1" = 10'-0"1SD- HOTEL LEVEL 1ELEVATOREMERGENCY STAIR L0 338 SF203K -E340 SF201K -E393 SF205K393 SF207K481 SF209SUITE 1 K425 SF211QQ -O384 SF213QQ416 SF215QQ -O491 SF217SUITE 1 K400 SF219K -O400 SF221K -O486 SF223SUITE 1 K399 SF225QQ -O2394 SF206QQ -E391 SF208QQ -E381 SF210QQ -E531 SF212SUITE 2 K400 SF214QQ400 SF216QQ400 SF218QQ400 SF220QQ531 SF222SUITE 2 K401 SF224QQ401 SF226QQ400 SF228QQ400 SF230QQ428 SF232SUITE 3 K398 SF234QQ -O2STAIRWELL 1STAIRWELL 2419 SF200ALOBBY53 SF204VENDING460 SFA201OFFICE SUITE 168 SFA202CORR287 SFA203CONFERENCE1303 SF200BCORRIDOR265 SF202HOUSEKEEPING1613 SFA200OPEN OFFICE115 SFA204OFFICE115 SFA205OFFICE128 SFA206OFFICE53 SFA202ARR54 SFA202BRR127 SFA201AOFFICEOPEN TO BELOWELEV 1ELEV 2DNB A L C O N Y B A L C O N Y B A L C O N Y B A L C O N Y B A L C O N Y B A L C O N Y BALCONYBALCONYBALCONYBALCONY1" = 10'-0"1SD-HOTEL LEVEL 2 340 SF301K-E338 SF303K-E392 SF305K392 SF307K484 SF309SUITE 1 K425 SF311QQ-O401 SF313QQ424 SF315QQ-O491 SF317SUITE 1 K400 SF319K-O400 SF321K-O487 SF323SUITE 1 K399 SF335QQ -O2398 SF334QQ-O2427 SF332SUITE 3 K400 SF330QQ400 SF328QQ400 SF326QQ400 SF324QQ531 SF322SUITE 2 K400 SF320QQ400 SF318QQ400 SF316QQ400 SF314QQ537 SF312SUITE 2 K390 SF310QQ -E391 SF308QQ -E395 SF306QQ -ESTAIRWELL 1STAIRWELL 2418 SF300ALOBBY265 SF302HOUSEKEEPING52 SF304VENDING1305 SF300BCORRIDORELEV 1ELEV 2BALCONYBALCONYBALCONYBALCONYB A L C O N Y B A L C O N Y B A L C O N Y B A L C O N Y B A L C O N Y B A L C O N Y 1" = 10'-0"1SD- HOTEL LEVEL 3 239 SF400ALOBBY1185 SF401CITY VIEW BAR & LOUNGE1160 SF410EVENT/FITNESS SPACE534 SF403SKYLINE SUITE 1695 SF414GYM518 SF405SKYLINE SUITE 2503 SF407SKYLINE SUITE 3400 SF416QQ610 SF409SKYLINE SUITE 4400 SF418QQ400 SF420QQ530 SF422SUITE 2K401 SF424QQ401 SF426QQ400 SF428QQ400 SF430QQ428 SF432SUITE 3K398 SF434QQ-O2144 SF412LOCKER ROOM45 SF412ARR44 SF412BRR158 SF402HOUSEKEEPING108 SF410BSTORAGE64 SF410ASTORAGE53 SF404VENDINGSTAIRWELL 1ELEV 2ELEV 1STAIRWELL 21" = 10'-0"1SD-HOTEL LEVEL 4 FLOOR PLAN 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 #:ORD 20-023,Version:1 Introduction and First Reading on Ordinance 20-023, an Ordinance Rezoning Lots 8A, 9, 10, 11, 12 & 13 Block 1, Fox Run Addition, from a Residence R-2 Two-Family District, Residence R-1D Single- Family / Residence R-2 Two-Family District, and Residence R-1D Single-Family District to a Residence R-3 Apartment District (Generally located south of 20th Street South and east of Fox Run Trail). Public Hearing: November 10, 2020. Summary: The applicant is seeking approval of a rezoning request of 6 residential lots to R-3 Apartment District. Background: The property is located south of 20th Street South and east of Fox Run Trail. The rezoning request is to clear up a split zoning on one residential lot and rezoning the adjacent 5 residential lots to create consistency with setbacks. The zoning of the area was established when the property was contained in larger tracts of land. As the subdivision process ensued with the layout of lots, Lot 11 laid out across two zoning districts. The adjacent residential lots are zoned R-1D and R-2. The applicant would like to rezone all 6 residential lots to a R-3 Apartment District to create the same setbacks on each parcel. The Comprehensive Plan shows the future land use of this area as Medium to High Density Residential and the R-3 District is an appropriate zoning district. The lots meets the requirements of the Residence R-3 Apartment District regulations. The property is bordered by R-1B zoning to the north across 20th Street South, R-3 to the east, R-3 and R-1C to the west, and R-2 to the south. The requested R-3 District is appropriate for a medium or high density residential development. Recommendation: The Planning Commission voted 6 - 0 recommending approval of the rezoning proposal. The Development Review Team (DRT) and staff recommend approval of the rezoning request. Attachments: Memo Ordinance Notice Planning Commission Minutes Current Zoning Map Future Land Use Map City of Brookings Printed on 10/23/2020Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Mike Struck, Community Development Director Meeting: October 27, 2020 Subject: Rezoning Request for Lots 8A, 9, 10, 11, 12, & 13, Block 1, Fox Run Addition, from Residence R-1D Single-Family District, Residence R-1D Single-Family / Residence R-2 Two-Family District, Residence R-2 Two-Family District to a Residence R-3 Apartment District (Generally located south of 20th Street South and east of Fox Run Trail) Person(s) Responsible: Mike Struck, Community Development Director Summary: The applicant is seeking approval of a rezoning request of 6 residential lots in the Fox Run Addition to a R-3 Apartment District. Background: The property is located south of 20th Street South and east of Fox Run Trail. The rezoning request is to clear up a split zoning on one residential lot and rezoning the adjacent 5 residential lots to create consistency with setbacks. The zoning of the area was established when the property was contained in larger tracts of land. As the subdivision process ensued with the layout of lots, Lot 11 laid out across two zoning districts. The adjacent residential lots are zoned R-1D and R-2. The applicant would like to rezone all 6 residential lots to a R -3 Apartment District to create the same setbacks on each parcel. The Comprehensive Plan shows the future land use of this area as Medium to High Density Residential and the R-3 District is an appropriate zoning district. The lots meet the requirements of the Residence R-3 Apartment District regulations. The property is bordered by R-1B zoning to the north across 20th Street South, R-3 to the east, R-3 and R-1C to the west, and R-2 to the south. The requested R-3 District is appropriate for a medium or high density residential deve lopment. Item Details: The rezoning amendment will create a consistent zoning along the east side of Fox Run Trail and will create uniformity with the front yard setbacks along this street frontage. Legal Consideration: None Strategic Plan Consideration: The proposed rezoning is consistent with the Comprehensive Plan ’s Future Land Use Map, which identifies this area as Medium to High Density Residential. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Approve as amended 3. Deny 4. Move the item to a work session 5. Do nothing The Planning Commission voted 6 – 0 recommending approval of the rezoning. The Development Review Team (DRT) and staff recommend approval of the rezoning. Supporting Documentation: Ordinance Notice Planning Commission Minutes Current Zoning Map Future Land Use Map Ordinance 20-023 An Ordinance to Change the Zoning Within the City Of Brookings Be It Ordained by the City of Brookings, South Dakota: Section 1. That the real estate situated in the City of Brookings, County of Brookings, State of South Dakota, described as follows, to-wit: Lot s 8A - 13, Block 1, Fox Run Addition (south of 20th Street South and east of Fox Run Trail) from Residence R-1D Single-Family/Residence R-2 Two-Family District and Residence R-2 Two-Family District to Residence R-3 Apartment District In accordance with Section 94-7 of Article I of the Code of Ordinances of Brookings, South Dakota, as said districts are more fully set forth and described in Articles III and IV, Chapter 94 of the City of Brookings, South Dakota. Section 2. The permitted use of the property heretofore described be and the same is hereby altered and changed in accordance herewith pursuant to Articles III and IV, Chapter 94 of the City of Brookings, South Dakota. Section 3. All sections and ordinances in conflict herewith are hereby repealed. First Reading October 27, 2020 Second Reading and Adoption November 10, 2020 Published November 13, 2020 CITY OF BROOKINGS, SD ________________________ Keith W. Corbett, Mayor ATTEST: _________________________ Bonnie Foster, City Clerk If you require assistance, alternative formats and/or accessible locations consistent with the Americans with Disabilities Act, please contact the City ADA Coordinator at 692-6281 at least 48 hours prior to the meeting. Published ______ time(s) at an approximate cost of $ _____________. NOTICE OF HEARING UPON PETITION TO REZONE NOTICE IS HEREBY GIVEN That Anita Thomas submitted a petition to rezone the following described real estate in the City of Brookings and Brookings County, South Dakota: Lots 8A, 9, 10, 11, 12, and 13, Block 1, Fox Run Addition in City of Brookings, Brookings County, South Dakota from Residence R-1D Single- Family/Residence R-2 Two-Family District and Residence R-2 Two-Family District to Residence R-3 Apartment District (Generally located South of 20th Street South and east of Fox Run Trail) NOTICE IS FURTHER GIVEN That said request will be acted on by the City Council at 6:00 PM on November 10, 2020, in the Chambers Room on the third floor of the Brookings City & County Government Center at 520 Third Street, Brookings, South Dakota. Any person interested may appear and be heard in this matter. Dated this 30th day of October, 2020. Bonnie Foster City Clerk Planning Commission Brookings, South Dakota October 6, 2020 OFFICIAL MINUTES Chairperson Tanner Aiken called the meeting of the City Planning Commission to order on Tuesday October 6, 2020, at 5:30 PM in the Council Chambers Room #310 on the third floor of the City & County Government Center. Members present were Ashley Biggar, James Drew, Greg Fargen, Gregg Jorgenson, Jacob Mills, Lee Ann Pierce, and Aiken. Absent were Jason Meusburger and Eric Rasmussen. Also present were Community Development Director Mike Struck, City Engineer Jackie Lanning, Deborah Steichen owner of RFP Beneficiaries, Joanne Anderson, David Kneip, Kyle Rausch, Ron Borchardt, and Paul Moriarty. Drew recused himself. Item #4b – Anita Thomas submitted a petition to rezone Lots 8A, 9, 10, 11, 12, and 13, Block 1, Fox Run Addition in City of Brookings, Brookings County, South Dakota from a Residence R-2 Two-Family District, Residence R-1D Single-Family/Residence R-2 Two-Family District, and Residence R-1D Single-Family District to a Residence R-3 Apartment District (Generally located south of 20th Street South and east of Fox Run Trail). (Fargen/Mills) Motion to approve the rezone request. All present voted aye. MOTION CARRIED. Summary of Discussion: Item #4b – This rezone request is for 6 lots in the Fox Run Addition. The use will remain as a twinhome development. The R-3 District has a 20 foot setback. The Comprehensive Plan has this area designated as medium or high density area. Drew representing the applicant, explained that they do plan to continue with the twinhome development and the 20 foot setback in the R-3 District is more suitable for the development. Mills is concerned with the 20 foot front yard setback and then with a sidewalk is this do-able. Struck explained that the 20 foot setback is pretty minimal, but can be done. Oversized vehicle could have issues with being parked over the sidewalk. Struck also explained that setbacks are minimums and the developers can use a larger setback. 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 20-0444,Version:1 Public Hearing and Action on a request for an On-Off Sale Malt License for Agua Fresh, Sinan Taskin, owner, for 420 Main Avenue, legal description:Lot 11A, Block 7, Original Plat Addition. Summary: The City of Brookings has received an application for an On-Off Sale Malt License for Agua Fresh, 420 Main Avenue, Sinan Taskin, owner. All required documents have been submitted for this application. Background: A public hearing and action by the local governing body is required. The On-Off Sale Malt License would be effective November 2020, and then subject to an annual renewal. If approved, the application would be forwarded to the State Department of Revenue for final action and issuance of the license. Recommendation: Staff recommends approval. Attachments: Memo Legal Notice Map City of Brookings Printed on 10/23/2020Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Bonnie Foster, City Clerk Council Meeting: October 27, 2020 Subject: New Malt License for Agua Fresh Person(s) Responsible: Bonnie Foster, City Clerk Summary: The City of Brookings has received an application for an On -Off Sale Malt License for Agua Fresh, 420 Main Avenue, Sinan Taskin, owner. All required documents have been submitted for this application. Video Lottery is not being requested at this time. At such time Video Lottery is requested, a public hearing and City Council action will be required Background: A public hearing and action by the local governing body is required. The On -Off Sale Malt License would be effective November 2020, and then subject to an annual renewal. If approved, the application would be forwarded to the State Department of Revenue for final action and issuance of the license. Item Details: Chapter 6, Article 2, Section 6-42 of the City Code of Ordinances pertains to the Application Review Procedure. The city council shall review all applications submitted to the city for available on-sale alcoholic beverage agreements and for all alcoholic beverage licenses in accordance with SDCL Chapter 35 -2 (SDCL 35-2-1 et seq.) and in accordance with the following factors: 1) Type of business which applicant proposes to operate: on -sale alcoholic beverage operating agreements and on-sale alcoholic beverage licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold unless it can be established that minors do not regularly frequent the establishment. 2) The manner in which the business is operated: on-sale alcoholic beverage operating agreements and alcoholic beverage licenses may not be issued to establishments which are operated in a manner which results in minors regularly frequenting the establishment. 3) The extent to which minors are employed in such a place of business: on-sale alcoholic beverage operating agreements and on-sale alcoholic beverage licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold and which regularly employ minors. 4) Adequacy of the police facilities to properly police the proposed location: The city council shall inquire of the city manager whether the police department can adequately police the proposed location. 5) Other factors: The hours that business is conducted shall be considered by the city council in its review of applications for on-sale alcoholic beverage operating agreements and on-sale alcoholic beverage licenses. (Code 1996, § 5-20) State Law reference - Local license approval, SDCL 35-2-1.2. SDCL 35-2-1.2. Applications submitted to local governing body--Fee--Approval or disapproval. Any applicant for a new retail license, except as set forth in § 35-2-1.1, or the transfer of an existing license shall submit an application to the governing body of the municipality in which the applicant intends to operate, or if outside the corporate limits of a municipality, to the governing body of the county in which the applicant intends to operate. The applicant shall submit the required fee with the application. The governing body may approve the application for a new retail license or the transfer of an existing license if the governing body considers the applicant suitable to hold the license and the proposed location is suitable. The governing body may disapprove an application for a new retail license or the transfer of an existing license issued under subdivision 35 -4-2(4), (6), or (13) if: 1) The approval of the application permits a person, corporation, or business entity to possess more than one-third of the licenses available to be issued in the jurisdiction; and 2) The governing body determines that possession of more than one -third of licenses available is not in the public interest. Any application for the reissuance of a retail license may be approved by the municipal or county governing body without a hearing unless in the past year the licensee or one or more of the licensee's employees have been subjected to a criminal penalty for violation of the alcoholic beverage control law or the license has been suspended. Source: SDC 1939, §§ 5.0206, 5.0305; SL 1945, ch 21, § 1; SL 1951, ch 11; SDC Supp 1960, § 5.0204 (14); SL 1961, ch 14; SL 1964, ch 9; SL 1965, ch 12; SDCL §§ 35-4-32, 35-4-33, 35-6-15; SL 1971, ch 211, § 13; SL 2008, ch 37, § 140; SL 2011, ch 171, § 1; SL 2017, ch 164, § 1; SL 2018, ch 213, § 12. Legal Consideration: None Financial Consideration: The On-Off Sale Malt License would be effective November 2020, and is subject to an annual renewal. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Amend 3. Deny 4. Refer to a Study Session 5. Do nothing Staff recommends approval. Supporting Documentation: Legal Notice Map NOTICE OF PUBLIC HEARING On-Off Sale Wine and On-Off Sale Malt License – Agua Fresh Food NOTICE IS HEREBY GIVEN that the Brookings City Council in and for the City of Brookings, South Dakota, on October 27, 2020, at 6:00 p.m. in the Brookings City & County Government Center Chambers, 520 Third Street, will meet in regular session to consider an application for an On-Off Sale Wine License and an On-Off Sale Malt License for Agua Fresh Food, Sinan Taskin, owner, 420 Main Avenue, Brookings, South Dakota, legal description: Lot 11A, Block 7, Original Plat Addition. At which time and place all persons interested will be given a full, fair and complete hearing thereon. Dated at Brookings, South Dakota, this 16th day of October, 2020. Bonnie Foster, City Clerk Published time(s) at an approximate cost $ . B rook ings County, SD Developed by Par cel ID 404050070001100 Sec/T wp/Rng -- Pr oper ty Address 420 MAIN AVE BROOKINGS Alter na te ID n/a Class NADC Acr ea ge n/a Ow ner Address KIND HO LDINGS LLC 120 MAIN AVE S BROOKINGS SD 57006 Distr ict 4001 Br ief T ax Descr iption O RIGINAL PL AT ADDN, L OT 11A BLK 7 12,344 SF (Note: Not to be used on leg a l documents) Date created: 10/22/2020 Last Data Uploa ded: 10/22/2020 8:05:41 AM 59 ft Overvi ew Legend Br ookings City Limits City L imits T ow nship Boundar y Sections Parcels 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 20-086,Version:1 Public Hearing and Action on Resolution 20-086, a Resolution authorizing the City Manager to enter into an Operating Agreement for an On-Off Sale Wine License for Agua Fresh, Sinan Taskin, owner, 420 Main Avenue, Brookings, SD, legal description: Lot 11A, Block 7, Original Plat Addition. Summary: The City of Brookings has received an application for an On-Off Sale Wine License for Agua Fresh, 420 Main Avenue, Sinan Taskin, owner. Legal description: Lot 11A, Block 7, Original Plat Addition. An operating agreement is required for Wine Licenses. This Resolution allows the City Manager to enter into the first five years of the 10-year agreement, effective through 2025. Background: A public hearing and action by the local governing body is required for all alcohol licenses. This license would be effective until December 31, 2020 and then subject to an annual renewal. If approved, the application would be forwarded to the State Department of Revenue for final action and issuance of the license. Recommendation: Staff recommends approval. Attachments: Memo Resolution Operating Agreement Legal Notice Map City of Brookings Printed on 10/23/2020Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Bonnie Foster, City Clerk Council Meeting: October 27, 2020 Subject: On-Off Sale Wine Operating Agreement for Agua Fresh Person(s) Presenting: Bonnie Foster, City Clerk Summary: The City of Brookings has received an application for an On -Off Sale Wine License for Agua Fresh, 420 Main Avenue, Sinan Taskin, owner. Legal description: Block 7, Lot 11A, Original Plat Addition. An operating agreement is required for Wine Licenses. This Resolution allows the City Manager to enter into the first five years of the 10 -year agreement, effective through 2025. Background: A public hearing and action by the local governing body is required. This license would be effective until December 31, 2020 and then subject to an annual renewal. If approved, the application would be forwarded to the State Department of Revenue for final action and issuance of the license. Item Details: Chapter 6, Article 2, Section 6-42 of the City Code of Ordinances pertains to the Application Review Procedure. The city council shall review all applications submitted to the city for available on-sale alcoholic beverage agreements and for all alcoholic beverage licenses in accordance with SDCL 35-2 and in accordance with the following factors: 1) Type of business which applicant proposes to operate: on -sale alcoholic beverage operating agreements and on-sale alcoholic beverage licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold unless it can be established that minors do not regularly frequent the establishment. 2) The manner in which the business is operated: on-sale alcoholic beverage operating agreements and alcoholic beverage licenses may not be issued to establishments which are operated in a manner which results in minors regularly frequenting the establishment. 3) The extent to which minors are employed in such a place of business: on -sale alcoholic beverage operating agreements and on-sale alcoholic beverage licenses may not be issued to convenience grocery stores, gas stations, or other stores where groceries or gasoline are sold and which regularly employ minors. 4) Adequacy of the police facilities to properly police the proposed location: The city council shall inquire of the city manager whether the police department can adequately police the proposed location. 5) Other factors: The hours that business is conducted shall be considered by the city council in its review of applications for on-sale alcoholic beverage operating agreements and on-sale alcoholic beverage licenses. Legal Consideration: None Strategic Plan Consideration: None Financial Consideration: This license would be effective until December 31, 2020 and then subject to an annual renewal. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Amend 3. Deny 4. Move to a Study Session 5. Do nothing Staff recommends approval. Supporting Documentation: Resolution Operating Agreement Legal Notice Map Resolution 20-086 Agua Fresh On-Off Sale Wine Operating Agreement Now, Therefore, Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Agreement for the Operating Management Agreement for Wine between the City of Brookings and Agua Fresh, Sinan Taskin, owner, for the purpose of a manager to operate the on-sale establishment or business for and on behalf of the City of Brookings at 420 Main Avenue: legal description: Block 7, Lot 11A, Original Plat Addition. Now, Therefore, 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 and renewal for another five (5) years. Passed and approved this 27th day of October, 2020. CITY OF BROOKINGS Keith W. Corbett, Mayor ATTEST: Bonnie Foster, City Clerk WINE OPERATING AGREEMENT Agua Fresh THIS AGREEMENT made and entered into by and between the CITY OF BROOKINGS, a municipal corporation of the State of South Dakota, hereinafter referred to as the “City” and Sinan Taskin, owner, Agua Fresh, hereinafter referred to as “Manager.” The City and Manager are referred to as the “parties” herein. WITNESSETH; WHEREAS, the City has been issued an on-sale alcoholic beverage license and is engaged in the sale of alcoholic beverages, and WHEREAS, the City desires to enter into an Operating Agreement on a limited basis with the Manager for the purpose of operating an on-sale establishment or business for and on behalf of the City pursuant to law, and WHEREAS, the Manager has offered to have facilities in which to ope rate said on-sale establishment solely upon the premises hereinafter described. NOW, THEREFORE IT IS MUTUALLY AGREED AS FOLLOWS: I. This Agreement is made and entered into on a limited basis between the parties hereto to allow the Manager to operate a retail on-sale premises, pursuant to and in accordance with all of the terms and conditions of this Agreement in accordance with all State laws and City Ordinances now in effect and as may be enacted in the future. II. The Manager shall be individually responsible for all operating expenses of said on-sale establishment, including but not limited to utilities, taxes, insurance, and license fees, if any. The Manager shall furnish all equipment and fixtures necessary to operate the establishment. III. The on-sale establishment shall be located upon real property in the City of Brookings, South Dakota, described as: Lot 11A, Block 7, Original Plat Addition, City of Brookings, Brookings County, South Dakota IV. The Manager shall dispense only alcoholic beverages supplied by the Municipal Off- Sale establishment. V. This Agreement shall be in full force and effect for a period of five (5) years, with the Manager having the option and privilege of a five (5) year extension, subject to the approval of the governing body of the City of Brookings. VI. Either the Manager or the City may terminate this Agreement without cause upon ninety (90) days written notice served by either party upon the other. The City reserves the right to immediately suspend or revoke this Agreement without ninety (90) days written notice for alcohol related violations in accordance with the provisions of Resolution No. 25-88 or any amendments thereto or for any late payments for alcoholic beverages supplied by the Municipal Off-Sale Establishment to be sold on the premises of Manager. VII. The Manager shall receive as full compensation for its services rendered, the net profit from the on-sale establishment under its management, and the sole profit to be derived by the City shall be the markup hereinafter set forth on alcoholic beverages furnished by the municipality to the Manager for the purposes of resale on the premises as above described. VIII. The Manager shall pay to the City for all alcoholic beverages sold by the City to the Manager for resale on the above-described premises, the actual cost of distilled spirits and wine supplied by the City, plus eleven percent (11%) in excess of such cost; the Manager shall pay to the City for all malt beverages sold by the City to the Manager fo r resale on the above-described premises, the actual cost of malt beverages, plus ten percent (10%) in excess of such cost. The actual cost shall include cost price and transportation charges. The markup percentages provided in this Agreement are subject to change by the City of Brookings. In the event markup percentages are changed by Ordinance, then the markup percentages provided by City Ordinance shall supercede the markup percentages provided herein. The Manager further agrees that if either of the markup percentages shall be increased at any time by the City, the Manager shall pay the markup as so increased. IX. A complete and detailed record shall be maintained by the City of all alcoholic beverages supplied to the on-sale Manager and such alcoholic beverages so supplied shall be evidenced by pre-numbered invoices prepared in triplicate showing the date, quality, brand, size, and actual cost of such item, and such invoice shall bear the signature of the authorized representative of the on -sale Manager or its authorized representative. One copy thereof shall be retained by the Municipal off -sale establishment, one copy shall be retained by the on-sale establishment, and one copy shall be filed with the City Clerk. All copies shall be kept as perma nent records and made available for reference and audit purposes. The Manager also agrees to maintain a complete record of all alcoholic beverages received from the City. X. In consideration of the covenants herein contained, the Manager agrees to pay the CITY OF BROOKINGS, Five Hundred, and no/100 Dollars ($500.00), constituting the Annual License Fee on or by the 1st day of November of each year thereafter as long as this agreement shall remain in force and effect. The payment of the Annual Renewal License Fee will not extend the term of this Operating Agreement beyond the term provided therein. The Manager further agrees that if the annual fee shall be increased at any time by the legislature, the Manager shall pay the amount of any such increase. XI. The Manager agrees to keep the premises in a neat, clean and attractive appearance, and Manager further agrees to operate said on-sale establishment only on such days and at such hours as permitted by state law and city ordinances. XII. The Manager shall have the right to return, at any time, alcoholic beverages received from the City which are eligible to be returned and to receive in return any deposit made for such alcoholic beverages; in the event of termination of the business, all unused alcoholic beverages, which may be resold without discount may be returned to the City and the Manager shall be reimbursed for the cost of such alcoholic beverages. XIII. The Manager agrees to abide by the credit policies of the City and acknowledges, by execution of this Agreement, receipt of a copy of the credit policies of the City. The City reserves the right to change or terminate its credit policies at any time, but shall be required to provide written notice to Manager prior to the effective date of the change or termination date of the credit policies. XIV. The Manager agrees to furnish the City upon demand, evidence of payment of the following: A. All salaries of on-sale employees; B. Social Security and withholding taxes on said employees; C. Worker’s Compensation insurance premiums covering said employees; D. Unemployment taxes on the payrolls of said employees; E. General liability insurance protecting both the City and the Manager against claims for injury or damages to persons or property, said policy to have general liability limits of at least Five Hundred Thousand Dollars ($500,000.00) single limit, and One Million Dollars ($1,000,000.00) aggregate, and a limitation of Fifty Thousand Dollars ($50,000.00) for damage to property. The general liability insurance limits are subject to change and Manager agrees to change limits of insurance if required by the City; F. Rent and utility bills; and G. Any and all miscellaneous expenses, including taxes. XV. The Manager agrees to observe all Federal and State laws and ordinances of the City of Brookings. XVI. The City covenants and agrees to furnish the on -sale license to Manager pursuant to the terms and conditions of this Operating Agreement and the terms and conditions of the on-sale license. XVII. The City has the right to make inspections and investigations of the premises during the hours of operation, and make audits and examinations of the records of the Manager relating to the on-sale establishment. XVIII. It is further specifically understood and agreed that the waiver of the rights of the City under this Agreement shall not constitute a continuous waiver, and any violation or breach of the terms of this Agreement by the Manager shall constitute a separate and distinct offense and grounds for immediate termination and revocation of this Agreement. XIX. This agreement shall not be assignable to another person or location without the written consent of the City. IN WITNESS WHEREOF, the parties hereto have executed this Agreement which is effective this 27th day of October, 2020. CITY OF BROOKINGS, South Dakota A Municipal Corporation By: ATTEST: Paul Briseno, City Manager Bonnie Foster, City Clerk MANAGER By: By: NOTICE OF PUBLIC HEARING On-Off Sale Wine and On-Off Sale Malt License – Agua Fresh Food NOTICE IS HEREBY GIVEN that the Brookings City Council in and for the City of Brookings, South Dakota, on October 27, 2020, at 6:00 p.m. in the Brookings City & County Government Center Chambers, 520 Third Street, will meet in regular session to consider an application for an On-Off Sale Wine License and an On-Off Sale Malt License for Agua Fresh Food, SinanTaskin, owner, 420 Main Avenue, Brookings, South Dakota, legal description: Lot 11A, Block 7, Original Plat Addition. At which time and place all persons interested will be given a full, fair and complete hearing thereon. Dated at Brookings, South Dakota, this 16th day of October, 2020. Bonnie Foster, City Clerk Published time(s) at an approximate cost $ . B rook ings County, SD Developed by Par cel ID 404050070001100 Sec/T wp/Rng -- Pr oper ty Address 420 MAIN AVE BROOKINGS Alter na te ID n/a Class NADC Acr ea ge n/a Ow ner Address KIND HO LDINGS LLC 120 MAIN AVE S BROOKINGS SD 57006 Distr ict 4001 Br ief T ax Descr iption O RIGINAL PL AT ADDN, L OT 11A BLK 7 12,344 SF (Note: Not to be used on leg a l documents) Date created: 10/22/2020 Last Data Uploa ded: 10/22/2020 8:05:41 AM 59 ft Overvi ew Legend Br ookings City Limits City L imits T ow nship Boundar y Sections Parcels 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 #:ORD 20-022,Version:2 Second Reading and Action on Ordinance 20-022, an Ordinance Establishing a Public Works Department. Summary: The City Manager is recommending a reorganization with the establishment of a Public Works Department to develop a more cohesive department with coordinated efforts of services for the community. The department would contain the divisions of Engineering, Solid Waste, and Streets. This recommendation does not add any new employees and has no impact on the General Fund. The restructuring allows for a future savings in salaries with a reduction of departments/directors. Background: The City of Brookings currently has fifteen (15) direct departments, directors or divisions which report to the City Manager. The current structure does not allow for effective and efficient management. When open positions occur, staff is tasked with determining the greatest use of operational resources. The current structure has been in place since 2000. Fiscal Impact: There is no impact to the General Fund and no additional full time equivalents (FTE) necessary. Any salary augmentation for the Public Works Director’s salary will be compensated from the Solid Waste Enterprise Fund. Recommendation: Staff recommends approval. Attachments: Memo Ordinance Existing Organizational Chart Proposed Organizational Chart Job Advertisement City of Brookings Printed on 10/23/2020Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Paul M. Briseno, City Manager Council Meeting: October 13, 2020 / October 27, 2020 Subject: Public Works Department Establishment Person(s) Responsible: Paul M. Briseno, City Manager Summary: The City Manager is recommending a reorganization with the establishment of a Public Works Department to develop a more cohesive department with coordinated efforts of services for the community. The department would contain the divisions of Engineering, Solid W aste, and Streets. This recommendation does not add any new full time equivalents and has no impact on the General Fund. The restructuring allows for a future savings in salaries with fewer departments/directors. Background: The City of Brookings currently has fifteen (15) direct departments, directors or divisions that report to the City Manager. The existing organizational chart is attached to this memo. The current structure does not allow for effective and efficient management. When open positions occur, staff is tasked with determining the greatest use of operational resources. The current structure has been in place since 2000, with the exception of the Community Development Department addition. No legislative action was taken formally to incorporate this department. Discussion: The City Manager is recommending the creation of a Public Works Department and establishment of the attached proposed City Organizational Chart. Approval of the organizational shift will decrease the number of departments and directors to eleven (11). Currently, the City has two open positions in the Streets Department. The addition of a Public Works Department and Director is developed from one of the open positions. This action does not add any additional employees and salary shift is augmented with enterprise revenues. This equates to no impact to the General Fund. No additional Sales Tax or Property Tax is required for this transition. The reorganization adjusts the Solid Waste, Streets, and Engineering Directors to a Manager salary classification. The existing Solid W aste and Engineering Directors would maintain their existing title and salary until a future transition occurs from retirement. The newly created Public Works Department would contain the functions of engineering, stormwater, airport, snow removal, mosquito control, street maintenance, fleet, landfill and refuse collection. More importantly, the change allows for greater collaboration between all divisions which can naturally share resources, communication, and planning. The attainment of a professional Public Works Director is critical in assuring success in development of a sustainable operations and infrastructure. The American Public Works Association (APWA) states the centralization of regulatory functions into faster, friendlier, and flatter department is essential in today’s tough economy “where governmental efficiency is measured by the ability of its regulatory departments to innovate and function cohesively as a single unit.” APWA is a resource for Public Works Professionals. Attached to this memo is a proposed job advertisement, which further details the role of Public Works and professional criteria sought for the director position. South Dakota and peer cities were engaged to provide best practices for the development of a Public Works Department. In total, ten (10) South Dakota cities and six (6) peer college town Public Works job descriptions, department, and organizational structures were reviewed. Legal Consideration: There are no legal considerations at this time. Financial Consideration: There is no impact to the General Fund and no additional full-time equivalents (FTE) necessary. Any salary augmentation for the Public Works Director’s salary will be compensated from the Solid Waste Enterprise Fund. The proposed salary range for the Public Works Director would be a range 41 which is $97,714-$131,914. The reduction of Solid Waste, Engineering, and Street Directors to managers drops the positions range to 35 which is $77,569-$104,719. It’s proposed that existing individuals in the Solid W aste and Engineering Departments would not be financially impacted and change would occur with future transitions. Options and Recommendations: City Council has the following options: 1. Approve as recommended 2. Amend 3. Deny 4. Refer to a Study Session for further discussion 5. Do nothing Staff recommends approval of the proposed reorganization. Supporting Documentation: Memo Ordinance Existing Organizational Chart Proposed Organizational Chart Job Advertisement Ordinance 20-022 An Ordinance Establishing City Departments Be It Ordained by the City of Brookings, South Dakota: Whereas the City Charter (2.12 (1)) details the requirement of an ordinance to establish, or abolish any city department. Now, Therefore, Be It Resolved by the City Council establishes the following City of Brookings Departments: City Attorney, City Clerk, Community Development, Finance, Fire, Human Resources, Library, Parks, Police, and Public Works. All ordinances or parts of Ordinances in conflict herewith are hereby repealed. First Reading: October 13, 2020 Second Reading: October 20, 2020 Published: CITY OF BROOKINGS Keith W. Corbett, Mayor ATTEST: Bonnie Foster, City Clerk 10-07-2020 Solid Waste VOTERS CITY COUNCILBrookings Health System Board Community Development Swiftel Center FireHuman ResourcesLibraryLiquor Street Utilities Board CITY MANAGER Engineering Airport Police E-911 Park Recreation Forestry City Attorney City Clerk Chief Financial Officer Assistant City Manager VOTERS CITY COUNCIL Brookings Health System Board Community Development Human ResourcesLibraryChief Financial Officer Swiftel CenterFinanceLiquor Fire Assistant City Manager Utilities Board CITY MANAGER Parks Department Police Public Works Street Solid WasteEngineering 09-22-2020 City Attorney City Clerk NOW ACCEPTING APPLICATIONS City of Brookings, South Dakota BROOKINGS IS... PUBLIC WORKS DIRECTOR DRAF T The City of Brookings is 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. ABOUT BROOKINGS Brookings is a safe, family-friendly, and vibrant community with many amenities you would find in a larger city, but with the comfort of a small town. With a population of 23,773, the City of Brookings is the fourth largest city in South Dakota and encompasses a total area of 13.5 square miles. It is the seat of government for Brookings County (population 34,135). The City of Brookings has experienced significant growth with a 25% population increase since the 2005 census. Located in the heart of the I-29 corridor with an estimated 530,000 annual visitors, the City of Brookings is just minutes from the Minnesota border and less than an hour drive to the state’s largest city, Sioux Falls. . THE COMMUNITY What really makes Brookings a special place is its unique neighborhoods, tree- lined streets, its leisurely pace of living, lack of crowds and congestion, and its genuine and friendly people. The City of Brookings boasts exceptional, well-maintained public parks, trails and recreational venues that provide a great place to have a picnic, play disc golf, or just play. Miles of biking trails throughout the City of Brookings provide entertainment for the entire family connecting parks, neighborhoods, schools and other civic amenities. The city provides an abundance of attractions and activities such as the Dakota Nature Park, Children’s Museum of South Dakota, South Dakota Art Museum, McCrory Gardens Education & Visitor Center, South Dakota Agricultural Heritage Museum, Outdoor Adventure Center of South Dakota, Downtown at Sundown, summer concert series and Brookings Summer Arts Festival. Brookings is a city with an extraordinary quality of life, booming job market and outstanding school system. Niche ranked Brookings School District as the #2 Best & Safest School District in South Dakota for 2017-18. In total, the Brookings School District has a growing enrollment serving over 3,400 students and is currently the seventh largest school district in South Dakota. Brookings is home to South Dakota State University (SDSU), the largest institution of higher education in the state (with an enrollment of over 11,000 students). SDSU creates a youthful and energetic atmosphere and offers residents exciting Division I college athletics, as well as a multitude of cultural, educational and recreational activities. The City has excellent healthcare resources, one of the nation’s lowest crime rates and is located in the lowest cost state for doing business. Brookings Health System, is a non-profit, city-owned health organization offering a full range of inpatient, outpatient, surgery, home health and extended care services. Clinical services are provided by Avera Medical Group and Sanford Health. In addition, Brookings has one of the best tax climates in the country with no personal property or personal income tax, no inheritance or corporate income tax, and no state income tax. More families are choosing Brookings for its safe, friendly, entrepreneurial, and progressive environment. The City of Brookings operates under the Council-Manager form of government, which was adopted in 1999. A Home Rule Charter City, under South Dakota Law, the City is governed by a Mayor and six Council Members, all elected at-large for three-year overlapping terms. The Mayor and City Council appoint the City Manager, City Clerk and City Attorney, who is retained on a part-time contractual basis. The City Manager serves as the Chief Administrative Officer of the City and is directly responsible to the City Council for all day-to-day operations, the financial condition and practices of municipal government and selects, appoints and directs all departments of the City as provided by the city charter. The City operates with a Leadership Team of 11 department directors, all of which the City Manager has direct oversight, in a collaborative and open environment where people work together across departments striving to provide excellent customer service. The Leadership Team includes: Assistant City Manager, City Clerk, City Attorney, Community Development, Chief Financial Officer, Fire, Human Resources, Library, Parks/Recreation & Forestry, Police, and Public Works. Many departments are assisted by citizen advisory boards, which provide a valuable service as a liaison between the public and City government. In addition, the City of Brookings has established semi-autonomous enterprise functions, which are governed by appointed boards for Brookings Municipal Utilities (BMU), which manages electric, water, wastewater, internet, cable television, and telephone operations; and the municipal Brookings Health System, which includes a 49-bed acute care hospital, 79-bed skilled nursing home, clinics and congregate senior apartments. The City currently employs 145 personnel and has a total budget of $54 million ($16.8 General Fund) for fiscal year 2021. CITY GOVERNMENT #1Best College Towns in S.D. (Travel Pulse, 2019) #1Best Cities to Live in S.D. (Chamber of Commerce, 2019) #7 Most Arts-Vibrant Small Cities in the U.S. (SMU Data Arts, 2019) — National Micropolitan Success Story (Walton Family Foundation, 2018) #25Best Cities for Entrepreneurs in America (Livability/Entrepreneur, 2017) #16 Best Performing Micropolitans in the Country (Policom, 2020) #1Best Places to Live in S.D (Niche, 2018, 2017, 2016) #8 Top College Towns in America (Schools.com, 2017) #2 Safest Cities in S.D. (Alarms.org, 2018) WHY BROOKINGS?DRAF T We are a welcoming and inclusive community. Bring your dreams! OUR VISION Our community expects great things from city employees. Every employee adds value to the City of Brookings through distinct skill sets and essential services. Individuals are chosen to be part of the team because of the core values and attributes they possess. Together, through servant leadership, we help shape the community to create a lasting legacy for all to reflect on with pride. As a team, we assist in “achieving dreams.” To provide high quality of life through exceptional services and proactive solutions. Our organization operates through honest, service-oriented leadership with core values of integrity, accountability, and innovation. OUR MISSION PUBLIC WORKS DIRECTOR OUR VALUES POSITION OVERVIEW THE IDEAL CANDIDATE WHAT WE DO IS BIGGER THAN US. The City of Brookings is seeking qualified applicants to lead the newly created Public Works Department. The position acts as a key partner in helping the City Manager and City’s leadership team shape the City’s organizational culture and implementing the City’s mission and vision. This professional employee will focus on the combination of physical assets, management practices, policies and personnel necessary for government to provide and sustain structures and services essential to the welfare and acceptable quality of life for Brookings residents. The Public Works Department is the largest City department comprised of the streets, fleet, engineering, stormwater, airport, refuse collection, and landfill divisions. The department contains 32 staff members and functions with a budget of approximately $5 million in operations and $4 million in capital annually. Brookings has 242 miles of street maintenance and has a rating of B- for its transportation system. Stormwater continues to be a major dialogue for the town as it continues to shape Brookings future. This department is responsible for 52.8 miles of stormwater pipe, and 1768 stormwater structures. The selected individual must bring a desire to build individuals up, promote leadership opportunities and provide positive leadership. The organizations core values are to operate through honest, service-oriented leadership with core values of integrity, accountability, and innovation. The City’s mission is to provide high quality of life through exceptional services and proactive solutions. All members of the organization live to foster a welcoming and inclusive community where all can bring their dreams! Brookings employees know they are not just making decision that impact people today; they are making decisions that will affect generations to come in a positive manner. • Outstanding leadership qualities that will bring strength, stability, and long term credibility to the position with a strong focus on customer service and building solid relationships with internal and external stakeholders through proactive solutions. • Provide leadership that builds teams as well as inspires, motivates, and empowers staff to achieve established goals. • Ability to ensure sustainable and best practices are a priority that encompasses all aspects of investing in the long- term good of the community through capital improvement and operations. This means making decisions that are simultaneously beneficial for the environment, residents, development, economy, community character, overall quality of life and more. • Executing ability that utilizes a holistic approach requiring everyone from the Public Works Director to residents and from across divisions, cities and counties. • Excellent communication and interpersonal skills as well as solid presentation and organization abilities. • Will create an open, collaborative, and successful working relationship with the City Manager, leadership team, elected officials, community stakeholders, State and Federal officials, representatives of the media and the public. • The principles and practices of Public Works administration, budgeting, personnel administration, contract management, and risk management. • A hands on understanding of municipal government or other organizations of similar complexity. • Understanding of applicable federal, state and local laws, codes and regulations. • Ability to analyze problems and solutions and take appropriate actions and deal effectively with complex and sensitive issues. • Work tactfully in a sometimes highly scrutinized environment while remaining patient, approachable, and self-confident. • Be a sustainability leader with big picture thinking, strong communication skills, and keen peripheral vision. • Enjoy and thrive in a fast-paced, robust environment, and be able to address day-to-day operations with common-sense and a cooperative approach to decision-making and problem solving. DRAF T 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 #:ORD 20-028,Version:2 Second Reading and Action on Ordinance 20-028, an Emergency Ordinance Amending Emergency Ordinance 20-010, as previously amended, to Extend and to Comprehensively Adopt Provisions to Address a Public Health Crisis and to Revise Certain Measures which are Necessary for the Immediate Preservation of the Public Health, Safety and Welfare of the City and are Necessary to Slow the Community Spread of Coronavirus (COVID-19) in the City of Brookings, South Dakota. Summary: The current ordinance (Phase 3) is set to expire November 7th. Based on threshold metrics an extension is warranted of the ordinance regulating bars, restaurants, salons, retail and requires face coverings for indoor businesses and indoor public spaces. Further discussion is desired of Council to determine if specific regulation should be augmented. Brookings is in substantial spread with all triggers met but hospitalization. Staff recommends renewal of the existing ordinance and any amendments. Background: On September 2nd City Council renewed the existing 20-010 ordinance that requires bars, restaurants, casinos, grocery, retail, and fitness businesses to operate at half capacity and all employees are required to wear face coverings at all times. The ordinance has other requirements outlined. September 8th Council approved an amendment that mandated face coverings where social distancing could not be achieved for indoor businesses and public places. A resolution was passed further detailing the implementation of the mask mandate. The City collaborated with many local professionals to develop a weekly report to monitor COVID 19 within Brookings. The guiding document considers metrics of control, testing and hospitalization. Additionally, an ordinance phasing was created based on previous ordinances. The transition between these phases is guided by the weekly data. Currently the City of Brookings is in Phase three (3) which is moderate. <https://www.cityofbrookings.org/699/Guidelines-Ordinance-Information> Recommendation: City Staff recommends approval of the proposed ordinance. Attachments: Memo Ordinance Threshold Report Phasing Plan City of Brookings Printed on 10/23/2020Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Paul M. Briseno, City Manager Council Meeting: October 27, 2020 Subject: Ordinance Renewal 20-010 & Mask Mandate Person(s) Responsible: Paul M. Briseno, City Manager Summary: The current ordinance (Phase 3) is set to expire November 7th. Based on threshold metrics an extension is warranted of the ordinance regulating bars, restaurants, salons, retail and requires face coverings for indoor businesses and indoor public spaces. Brookings is in substantial spread with all triggers met but hospitalization. Staff recommends renewal of the existing ordinance and any amendments desired by Council. Background: On September 2nd City Council renewed the existing 20-010 ordinance that requires bars, restaurants, casinos, grocery, retail, and fitness businesses to operate at half capacity and all employees are required to wear face coverings at all times. The ordinance has other requirements outlined. September 8th Council approved an amendment that mandated face coverings where social distancing could not be achieved for indoor businesses and public places. A resolution was passed further detailing the implementation of the mask mandate. The City collaborated with many local professionals to develop a weekly report to monitor COVID 19 within Brookings. The guiding document considers metrics of control, testing and hospitalization. Discussion: Metrics within the guiding document have been triggered to a degree. Brookings has seen an ebb and flow over the past few weeks of cases and percentage positive . The state of South Dakota Department of Health now provides a report of regional hospitalization and capacity. A work session was held October 20th to allow City Council discussion of the ordinance. Additional insight was given from local professionals including Bonny Specker Director of EAM Program, Jason Merkley President and CEO of Brookings Health System, Amy Hockett Sanford RN Clinic Director, Patrick Siegling Avera Clinic Director, Barry Dunn SDSU President, and Klint Willert Superintendent of Brookings School District. A renewal of ordinance 20-010 and face coving ordinance is recommended. In summary the renewal defines requirements of businesses and residents: Restaurants/Bars • Maximum of ten (10) customers or 50% occupancy, whichever is greater o Occupancy capacity posted at front entry • Groups of ten (10) or less and six (6) feet apart • Cleaning of high touch areas/materials between users • Screening employees recommended • Employees required to wear masks • Cleaning of used spaces before and after each customer • No self-serve buffets or salad bars • No sharing of condiments unless wiped between use Grocery, Casino, Gyms, and Recreational Facilities • Cleaning of equipment after use by customer and/or employee • Maximum of ten (10) customers or 50% occupancy o Occupancy capacity posted at front entry • Employees of Grocery stores will wear masks • Protective measures/operations will be provided Salons/Barber Shops • Customers six (6) feet spacing & recommend service by appointment-only • Employees will wear masks • Clean equipment before and after each customer • Adequate social distancing for waiting customers Face Covering required if adequate social distancing cannot be achieved • Required for all indoor businesses and indoor public spaces • Required for all City permitted events • Exceptions include children under 5, medical conditions, religious place, educational units, certain non-profits, organized sports activity that have an approved plan Administrative exemptions allow for requested flexibility. Businesses and residents who violate sections of this ordinance will be subject to fines. Legal Consideration: There are no legal considerations at this time. Financial Consideration: There are no financial considerations at this time. Recommendation: City Staff recommends approval of the proposed ordinance. Options: City Council has the following options: 1. Approve as recommended 2. Deny 3. Refer to a Work Session for further discussion Supporting Documentation: Ordinance Threshold Report (uploaded Oct 19) Phasing Plan Ordinance 20-028 An Emergency Ordinance Amending Emergency Ordinance 20-010, as previously amended, to Extend and to Comprehensively Adopt Provisions to Address a Public Health Crisis and to Revise Certain Measures which are Necessary for the Immediate Preservation of the Public Health, Safety and Welfare of the City and are Necessary to Slow the Community Spread of Coronavirus (COVID-19) in the City of Brookings, South Dakota. I. Be It Ordained and Enacted by the Council of the City of Brookings, State o f South Dakota, as follows: Whereas, the City of Brookings has the authority pursuant to SDCL 9-29-1 and SDCL 9- 32-1 to pass ordinances for the purpose of promoting the health, safety and general welfare of the community, and to do what may be necessary for the promotion of health or the suppression of diseases; and Whereas, COVID-19 has been confirmed in more than 100 countries, including the United States; and Whereas, COVID-19 is a continuing global pandemic. United States Supreme Court Chief Justice Roberts stated in a 2020 decision “people may be infected but asymptomatic, [and] they may unwittingly infect others”; and Whereas, the Centers for Disease Control and Prevention, the World Health Organization, medical associations and scientific associations suggest individuals wear a face covering to slow the spread of COVID-19; and Whereas, Ordinance 20-010, as amended, is intended to slow the rise of positive cases and slow down the rate of infection, and therefore bears a real and substantial relationship to public health because the measures are recognized to be the best available procedures to slow the rate of transmission of COVID-19; and Whereas, the City of Brookings and many states and communities across the country have already implemented White House recommendations by restricting occupancy at bars, restaurants, food courts, gyms, and other indoor and outdoor venues where people congregate until the public health emergency is over; and Whereas, the failure to successfully implement social distancing would likely result in higher numbers of infected individuals and has the potential to overwhelm the capacity of the City's health care providers; and Whereas, it is important that control measures, including requiring face masks in indoor places, continue to be taken to reduce or slow down the spread of COVID -19 in order to protect the health and safety of the City's residents, especially for seniors and those with underlying health conditions that make them particularly vulnerable to COVID-19; and Whereas, the City of Brookings has been utilizing Ordinance 20-010, as amended, to address the COVID-19 public emergency in the City of Brookings, and Whereas, based on the number of cases in Brookings County, the relatively small number of hospitalizations in the City, and the available modeling, the City Council believes the social distancing and face covering restrictions should be continued given the increasing numbers of COVID-19 cases in the City and State, and Whereas, this Emergency Ordinance is intended to adopt, in comprehensive form, the emergency measures and restrictions set forth in Emergency Ordinance 20- 010, as previously amended. Now Therefore, Be It Ordained, by the City Council of Brookings that: 1. Any businesses identified in Ordinance 20-005 may reopen to serve patrons on-site pursuant to the conditions established in this resolution. 2. Businesses within the City of Brookings which are open to the public shall observe the following guidelines to slow the spread of COVID-19: a) Establish a minimum six-foot distance between any tables, chairs, and barstools. This provision does not need to be observed between members of the same household. b) All businesses shall collaborate with the City to identify their occupancy allowance and post it in a conspicuous location outside the building. c) Restaurants, bars, and casinos shall be limited to a maximum of ten (10) customers or a capacity of one-half(½) of their maximum posted capacity, whichever is greater. Capacity will be posted at the front of the business. d) All restaurants, food trucks and bars shall disinfect or dispose of all menus before and after use by each customer. Condiment containers shall be cleaned/disinfected between each group and shall not be shared among multiple groups. Salad bars and self- service buffets shall not be permitted. e) Grocery stores, retail businesses, recreation and fitness businesses shall be limited to a maximum of ten (10) customers or a capacity of one-half(½) of their maximum posted capacity, whichever is greater. Capacity will be posted at the front of the business. f) Require social distance spacing while waiting for service or entry into a business. Spacing may be accomplished by requiring people to remain in their vehicles. g) Clearly marked one-way shopping aisles in grocery and retail stores. h) In retail and grocery businesses, install a plexiglass, or similar divider where physically possible between the cashier and customer. i) Require employees to wash hands at regular intervals. j) Restaurant and bar (those businesses with an alcoholic beverage license) staff and employees must wear a mask which covers the employee's nose and mouth. k) In casinos, video lottery machines must be cleaned and disinfected between each customer. I) Employees of hair salons, nail and tanning salons, spas and barber shops wear masks which cover their nose and mouth during customer contact times. Customer seating must be at least six (6) feet apart. m) In gyms and fitness facilities, any equipment and/or exercise mats must be cleaned or disinfected between each use. n) Customer seating in theaters and similar businesses shall be reduced to allow for social distancing with certain seats marked as "not available due to social distancing guidelines" to ensure compliance. o) Businesses shall post publicly a regular cleaning and disinfecting schedule, specific to each business. p) Hand sanitizer locations readily available for public use should be made available at grocery stores and retail businesses. q) Enhanced cleaning/disinfecting requirements should be used for motel and hotel rooms. r) Seating for large gatherings shall be reduced to comply with a six- foot minimum distance between attendees. s) Businesses are encouraged to conduct daily employee screenings for illness. t) Businesses are encouraged to post signage outside of their facility that encourages customers to not enter if they are not feeling well or have COVID-19 symptoms. u) Businesses are encouraged to develop risk mitigation strategies for restrooms or other areas where social distancing requirements are likely to be compromised. v) Certain businesses (e.g. gym, recreation facilities, casinos, etc.) are encouraged to have customers wipe down their equipment/machines before and after use. However, it will still be the responsibility of the business to ensure proper cleaning and disinfecting is occurring. w) Businesses, particularly salons, barber shops, and spas are encouraged to provide service on an appointment-only basis to ensure proper social distancing and hygiene practices are met. x) Masks required at city-sanctioned events. Masks which cover a person's nose and mouth are required for all persons attending or working at events which require a City permit when a minimum of six- foot distance cannot be maintained or achieved. The provisions of Resolution 20-076 are incorporated herein, and provide as follows: 3. All persons in the city shall cover their mouth and nose with a mask or other face covering when they are in the following situations: a) When inside, or in line to enter, any indoor public space; b) When obtaining services from the healthcare sector in settings, including but not limited to, a hospital, pharmacy, medical clinic, laboratory, physician or dental office, veterinary clinic, or blood bank, unless directed otherwise by an employee thereof or a health care provider; 4. Waiting for or riding on public transportation or while in a taxi, private car service, or ride-sharing vehicle; 5. The following individuals are exempt from wearing masks or other face coverings: a) Persons age five years or under-children age two years and under in particular should not wear a face covering because of the risk of suffocation; b) Persons with a medical condition, mental health condition, or disability that prevents wearing a face covering-this includes persons with a medical condition for whom wearing a face covering could obstruct breathing or who are unconscious, incapacitated, or otherwise unable to remove a face covering without assistance; c) Persons who are deaf or hard of hearing, or when communicating with a person who is deaf or hard of hearing, where the ability to see the mouth is essential for communication; d) Persons for whom wearing a face covering would create a risk to the person related to their work, as determined by local, state, or federal regulations or workplace safety guidelines; e) Persons who are obtaining a service involving the nose or face for which temporary removal of the face covering is necessary to perform the service; f) Persons who are seated at a restaurant or other establishment that offers food or beverage service, while they are eating or drinking, provided they maintain a 6-foot distance between individuals (not including individuals who reside together or are seated together) with only infrequent or incidental moments of closer proximity; g) Athletes and participants who are engaged in an organized sports activity that allows athletes to maintain a 6-foot distance from others with only infrequent or incidental moments of closer proximity; h) Persons who are engaged in an activity that a professional or recreational association, public regulatory entity, medical association, or other public health oriented entity has determined cannot be safely conducted while wearing a mask or other face covering and where other protections and precautions are established and utilized; i) Persons attending educational institutions where the public and private schools through 12th grade, colleges, and universities have implemented protections. j) Persons engaged in church and religious places of worship which may implement their own protections. 6. In addition to the specific requirements listed above, businesses shall operate in a manner consistent with CDC guidelines and any applicable state regulations and the Governor's Executive Orders. 7. The City encourages all members of the public within the City of Brookings to continue to follow the CDC guidelines and recommended hygiene practices, including, but not limited to engaging in social distancing, and wearing masks when outside their homes wherever possible. 8. Businesses can request, in writing, administrative exceptions from the City that allow them to modify the strict compliance with these requirements so long as their proposal contains alternative means to implement social distancing or hygiene requirements. The City will not approve exceptions which completely exempt a business from implementing social distancing, or from following the CDC guidelines. 9. Any business entity, owner, or supervising manager of any business that is not in compliance with these regulations, or an approved alternative plan pursuant to Section 5. above, shall be in violation of Ordinance 20- 010, as amended by this Ordinance. 10. Pursuant to this ordinance, the City Council may by resolution modify the mandatory closures and enact revised restrictions on public gatherings and public movements it deems necessary to address the current public health emergency. Any revised measures and restrictions, adopted by resolution shall be for a specific duration and shall be periodically reviewed to ensure the continued necessity of such restrictions or closures. 11. The restrictions set forth herein do not apply to the following entities, which have their own specific COVID-19 restrictions: a. Health care facilities, residential care facilities, congregate care facilities, and correctional facilities. b. Crisis shelters, homeless shelters, soup kitchens, or other similar institutions. c. Any emergency facilities necessary for the response to the current public health emergency or any other community emergency or disaster. d. Official meetings of the city, schools, county, or state. e. The operations and meetings of any state or federal courts. f. Educational institutions where the public and private schools through 12th grade, colleges, and universities have implemented protections. g. Places of worship. h. Any and all polling places, including absentee voting and Election Day (November 3, 2020) polling places, as well as all locations for processing absentee ballots and counting ballots on November 3, 2020. All polling places for absentee and Election Day voting shall remain open at all times. 12. This ordinance shall remain in effect for a period of sixty (60) days, at which time it shall be automatically repealed unless specifically readopted for an additional period of time by the City Council. Any dates identified in this ordinance may be adjusted at any time within the sixty (60) day period covered by this ordinance by a resolution of the City Council. 13. Enforcement - Violation of this Resolution may result in a fine, and multiple violations may result in further enforcement procedures, including legal and equitable action to enforce this Ordinance for the safety of the public. 14. Until the 2nd Reading of this ordinance is completed, approved and published, Ordinance 20-010, as amended, shall set forth the applicable measures deemed necessary to slow the spread of Coronavirus in the City of Brookings. Ordinance 20-010, as amended, shall remain in effect for an additional period of sixty (60) days, at which time it shall be automatically repealed unless specifically readopted for an additional period of time by the City Council. Any dates identified in this ordinance may be adjusted at any time within the sixty (60) day period covered by this ordinance. 15. Face Masks/Face Coverings Required. Within the City of Brookings, all persons except those under the age of five (5) and those with a medical condition, mental health condition, or disability that makes it unreasonable for the individual to maintain a face covering, must wear a face mask/face covering in indoor businesses and indoor public places where six (6) foot social distancing cannot be achieved or maintained. A "face covering" or "mask" must be worn to cover the nose and mouth completely, and can include a paper or disposable face mask, a cloth mask, a scarf, a bandanna, or neck gaiter. II. BE IT FURTHER ORDAINED that pursuant to SDCL 9-19-13, this ordinance is adopted to address a public health emergency and is necessary for the immediate preservation of the public peace, health, safety and welfare of the City and shall become effective immediately upon passage and publication. Dated this ____ day of ___________, 2020. CITY OF BROOKINGS: (SEAL) Keith W. Corbett, Mayor ATTEST: Bonnie Foster, City Clerk For week ending October 16, 2020 Summary of Brookings COVID-19 Public Health Thresholds Week Ending 10/16/2020 1. Is the epidemic controlled? No 2. Is the health system able to cope with a resurgence of COVID-19 cases that may arise after adapting some measures? Yes, probably 3. Is the public health surveillance system able to detect and manage the cases and their contacts, and identify a resurgence of cases in Brookings? a. Mitigation Level: No, 3-5 times more testing is needed b. Suppression Level: No, test positivity is 26%-36%, which is far from the 3% test positivity needed for suppression. c. Approximate time to receive test results: 2-3 days DATA: 1. Is the epidemic controlled? Rt evaluated weekly. If Rt is <1.0 for 14 days or longer this would be a ‘yes’, otherwise it would be a ‘no’. Rt has exceeded 1.0 for 8 of the last 14 days. Below are the Rt based on number of cases in Brookings for 106 days ending on 10/16/20. Rt for the most recent 14 days (based on data from the prior week): Based on Data for Week Ending: Brookings South Dakota 10/3 0.93 1.14 10/4 0.90 1.12 10/5 0.90 1.08 10/6 0.90 1.06 10/7 0.97 1.28 10/8 0.70 1.19 10/9 1.01 1.31 10/10 1.39 1.38 10/11 1.73 1.42 10/12 1.85 1.44 10/13 2.14 1.44 10/14 2.19 1.33 10/15 2.29 1.35 10/16 2.01 1.30 Notes: • The closer Rt is to 0, the sooner transmission control will be attained. • Super spreader events are not predicted by Rt and can rapidly affect transmission trajectories. --------- July ---------|------- August -------|---------Sept---------|-----Oct --- For week ending October 16, 2020 2. Is the health system able to cope with a resurgence of COVID-19 cases that may arise after adapting some measures? Evaluate hospital bed and ICU availability and determine whether an increase of 20% in the number of cases can be absorbed within the health system. If health system can absorb increase than ‘yes’, otherwise ‘no’. Yes. Two different case numbers were used including new cases in the past seven days and current number of active cases. These numbers were multiplied by either the overall statewide hospitalization rate or by using current age-specific hospitalization rates applied to age distribution of Brookings cases based on the most recent data provided by the Department of Health. For both numbers, an additional 20% was added as recommended by the WHO and is given below in parentheses. Based on: Hospitalization Rate Age-adjusted Hospitalization Rates Anticipated admissions based on new cases in past seven days 13 (16) 17 (20) Anticipated admissions based on active cases 17 (20) 22 (26) As of 10/16/20, new cases in past seven days = 202 and active cases = 261. SD overall hospitalization rate = 6.4% (10/15/20). Age specific hospitalization rates as of 10/15/20 and age distribution of Brookings cases as of 10/14/20 (see daily data report for percentages). Brookings Health System has a surge capacity of 80 beds and the personnel to handle 45 beds. Based on current census, Brookings Health System felt they could probably handle the anticipated number of admissions (n = 13-22 new admissions). 3. Is the public health surveillance system able to detect and manage the cases and their contacts, and identify a resurgence of cases? Evaluate whether the mitigation and suppression levels of testing are being met. Mitigation level of testing uses the total number of tests completed in Brookings in the previous seven days and determines whether it is equal to or greater than the total number of new cases identified plus ten times the number of new cases. The number of tests completed does not include targeted testing (i.e., public health surveillance or sentinel testing in nursing homes or on campus). Suppression level of testing is being met when the percentage of positive test results in the previous seven days is equal to or less than 3.0%. If mitigation and suppression levels of testing are being met than this would be ‘yes’, otherwise it would be ‘no’. Mitigation & Suppression Levels of Testing. Testing data for the previous seven days: Total # of cases Ten times number of new cases: Tests needed to meet mitigation level: Tests completed (mitigation): % Test Positivity (suppression) Brookings Health System Dashboard as of 10/13/20: * Brookings 202 2,020 2,222 610 26% South Dakota Department of Health Dashboard as of 10/16/20: ** Brookings 202 2,020 2,222 556 36% South Dakota 4,590 45,900 50,490 12,837 36% * Brookings data are based on number of tests completed, not the number of people tested, and may include tests on Brookings County non- residents. Data for a particular date are not reported until all test results are back. ** Includes sentinel surveillance tests (e.g., nursing homes, first responders, etc.) and is based on number of people tested, not the number of tests and includes only Brookings residents. Approximate time to receive test results as of 10/16/20 (Brookings): 2-3 days For week ending October 16, 2020 Brookings COVID-19 Thresholds Overview of Public Health Criteria Used to Control Transmission of COVID-19 The World Health Organization (WHO) uses three criteria for consideration in adjusting public health and social measures related to COVID-19 and suggests measures that can be used for evaluating these criteria1: 1. Epidemiology - Is the epidemic controlled? 2. Health System Capacity - Is the health system able to cope with a resurgence of COVID-19 cases that may arise after adapting some measures? 3. Public Health Surveillance - Is the public health surveillance system able to detect and manage the cases and their contacts, and identify a resurgence of cases? The various measures suggested by the WHO for evaluating the above criteria are given at the end of this summary as an Appendix. The ones given below are those that are locally available. Epidemiology The key measure for assessing whether the epidemic is controlled is the effective reproduction number (Rt). Rt represents the number of secondary cases for each infectious case and a value below 1 is the best indication that the epidemic is controlled and declining. The closer Rt is to 0, the sooner transmission control will be attained. The Rt depends on factors related to the number of susceptible individuals and their potential contact with infectious persons. It should be noted that superspreader events are not predicted by Rt and can rapidly affect transmission trajectories. A Rt of less than 1 for at least two weeks is used to indicate the epidemic is controlled. An algorithm is available that will calculate an estimate for Rt if case surveillance data are available.2 Brookings Measure: Is the epidemic controlled? Rt evaluated weekly. If Rt is <1.0 for 14 days or longer this would be a ‘yes’, otherwise it would be a ‘no’. Health System Capacity A key measure for assessing whether the health system is able to cope with a resurgence of cases is that the number of new cases requiring hospitalization is smaller than the estimated maximum hospital and ICU bed capacity of the health system (i.e. the health system can cope with new hospitalizations without becoming overwhelmed while maintaining delivery of essential health services). One of the criteria used is that the health system can absorb or expand to cope with at least a 20% increase in COVID-19 case load. Brookings Measure: Is the health system able to cope with a resurgence of COVID-19 cases that may arise after adapting some measures? Evaluate hospital bed and ICU availability and determine whether an increase of 20% in the number of cases can be absorbed within the health system. If health system can absorb increase than ‘yes’, otherwise ‘no’. 1 https://www.who.int/publications/i/item/public-health-criteria-to-adjust-public-health-and-social-measures-in-the-context-of-covid-19 2 https://academic.oup.com/aje/article/178/9/1505/89262 For week ending October 16, 2020 Public Health Surveillance There are several criteria listed under public health surveillance, including surveillance systems, case investigation and contact tracing. Many of these measures are not known at a county level; however, the number of tests and test positivity are known. The Harvard Global Health Institute has established targets for assessing the adequacy of testing at both the mitigation level and the suppression level:3 Mitigation level testing: Mitigation focuses on reducing the spread of the virus through broad testing of symptomatic people, tracing and testing a recommended 10 contacts per new case, isolating positive contacts, social distancing, mask-wearing or stay-at-home orders as necessary. Testing targets for mitigation is set as the sum of symptomatic cases and 10 times the number of cases (to cover the contacts) and does not include targeted testing (sentinel testing of nursing homes, schools, etc.). Suppression level testing: Suppression allows a community to quickly find and isolate new cases before they lead to a wider outbreak, with an aim of keeping new case levels at or near zero. A test positivity rate of 3% or less can be used as an indicator of progress towards suppression level testing. Suppression level testing requires testing of asymptomatic people in high-risk environments including nursing homes, colleges, etc. Brookings Measure: Is the public health surveillance system able to detect and manage the cases and their contacts, and identify a resurgence of cases? Evaluate whether mitigation and suppression levels of testing are being met using the total number of tests completed and test positivity in Brookings during the previous week and approximate length of time for test results to received back in the clinics. For mitigation level of testing the number of tests completed should be equal to or greater than the total number of new cases identified plus ten times the number of new cases. For suppression level testing, the test positivity should be 3% or less. It will be noted whether the mitigation and suppression levels of testing are being met, as well as the approximate length of time between samples being submitted by local labs and test results being received. Additional notes Caveats regarding the data: • The number of cases by day that are used in calculating Rt are based on the numbers posted to the SDDOH dashboard. These dates are not the date symptoms appeared and not necessarily the date the test sample was obtained or the test was conducted; they are the date that the test results were reported to SDDOH. This is the best information that is available. • The number of tests conducted in Brookings are not the number of individuals tested, but the number of tests performed, which may include repeated testing of the same individual. Committee Members: Bonny Specker, MS, PhD (epidemiologist), Chris Chase, DVM, PhD (virologist), Gary Gackstetter, DVM, MPH, PhD (epidemiologist), Amy Hockett, RN (Sanford Brookings Clinic Manager), Adam Hoppe, PhD (cell biologist, immunologist), Victor Huber, PhD (virologist, immunologist), Jason Merkley (President, Brookings Health System), Natalie Thiex, MPH, PhD (epidemiologist, toxicologist), Xiuging Wang, PhD (virologist, cell biologist) 3 https://globalepidemics.org/testing-targets/ For week ending October 16, 2020 APPENDIX: Criteria recommended by the WHO4 Table 1. WHO Criteria for Epidemiological Control Epidemiological Criteria Explanation Decline of at least 50% over a 3-week period since the latest peak and continuous decline in the observed incidence of confirmed and probable cases ° This indicates a decline in transmission equivalent to a halving time of three weeks or less since the latest peak, when the testing strategy is maintained or strengthened to test a greater % of suspected cases. Less than 5% of samples positive for COVID-19, at least for the last 2 weeks, ° assuming that surveillance for suspected cases is comprehensive The % positive samples can be interpreted only with comprehensive surveillance and testing of suspect cases, in the order of 1/1000 population/week Less than 5% of samples positive for COVID-19, at least for the last 2 weeks°, among influenza-like-illness (ILI) samples tested at sentinel surveillance sites Through ILI sentinel surveillance, a low % of positive samples indicates low community transmission* At least 80% of cases are from contact lists and can be linked to known clusters This indicates that most transmission chains have been identified, offering the opportunity for follow-up. This may be limited by the fact that the information will certainly not have been collected at the height of the epidemic. Decline in the number of deaths among confirmed and probable cases at least for the last 3 weeks ° This will indicate, with an approximately 3-week lag-time, that the total number of cases is decreasing. If testing has decreased, then the number of deaths in probable cases will be more accurate. Continuous decline in the number of hospitalization and ICU admissions of confirmed and probable cases at least for the last 2 weeks° This indicates, with an approximately 1-week lag-time and providing that the criteria for hospitalization have not changed, a decline in the number of cases. Decline in the age-stratified excess mortality due to pneumonia When pneumonia cases cannot be systematically tested, a decline in the mortality of pneumonia would indirectly indicate a reduction in the excess mortality due to COVID-19. * Trend evaluation requires that no changes occurred in testing or measurement strategy ° 2-week period corresponds to the maximum incubation period and is the minimum period on which to assess changes in trends. Table 2. WHO Criteria for Health System Capacity Health System Criteria Explanation All COVID-19 patients can be managed according to national standard This indicates that the health system has returned to a state where all conditions (staff, beds, drugs, equipment, etc.) are there to provide the same standard of care that existed before the crisis. All other patients with a severe non-COVID-19 condition can be managed according to national standard There is no increase in intra-hospital mortality due to non-COVID-19 conditions The health system can absorb or can expand to cope with at least a 20% increase in COVID-19 case load This indicates that the system would be sustainable even if it had to absorb a surge in cases resulting from loosening public health and social measures. This includes sufficient staff, equipment, beds, etc. An Infection, Prevention and Control (IPC) focal point is available in all health facilities (1 full-time trained IPC focal point per 250 beds) and at district level This indicates strong capacity for coordination, supervision and training on IPC activities, including in primary health facilities. All health facilities have screening for COVID-19 This is for ensuring that all patients who come to a facility are assessed for COVID-19 in order to prevent health associated infections. All acute health facilities have a mechanism for isolating people with suspected COVID-19 The health system has sufficient capacity to isolate all patients with COVID-19 4 https://www.who.int/publications/i/item/public-health-criteria-to-adjust-public-health-and-social-measures-in-the-context-of-covid-19 For week ending October 16, 2020 Table 3. WHO Criteria for Public Health Surveillance Public Health Surveillance Criteria Explanation Public Health Surveillance Systems New cases can be identified, reported, and data included in epidemiological analysis within 24 hours A surveillance system for COVID-19 is in place that is geographically comprehensive and covers all persons and communities at risk. Comprehensive surveillance includes surveillance at the community level, primary care level, in hospitals, and through sentinel surveillance sites for influenza and other respiratory diseases, where they exist. Immediate reporting of probable and confirmed cases of COVID-19 is mandated within national notifiable disease with requirements This indicates that appropriate public health policies are in place for immediate notification of cases of COVID-19 from all health facilities. Enhanced surveillance is implemented in closed residential settings and for vulnerable groups This indicates that public health authorities have identified populations who live in residential settings or are vulnerable and that enhanced surveillance is put in place for these populations. Mortality surveillance is conducted for COVID-19 related deaths in hospitals and in the community This indicates the ability to rapidly and reliably track the number of deaths related to COVID-19. Where possible, medical certificate of death for COVID-19 deaths should be issued. Other approaches for mortality surveillance may be considered, such as reports from religious centres or burial sites. The total number of laboratory tests conducted for COVID-19 virus is reported each day Knowing the testing denominator can indicate the level of surveillance activity and the proportion of tests positive can indicate the intensity of transmission among symptomatic individuals. Case Investigation Public health rapid response teams are functional at all appropriate administrative levels A measure of the capability to rapidly investigate cases and clusters of COVID-19. 90% of suspect cases are isolated and confirmed/released within 48 hours of symptom onset This indicates that investigation and isolation of new cases is sufficiently rapid to minimize the generation of secondary cases. Contact Tracing At least 80% of new cases have their close contacts traced and in quarantine within 72 hours of case confirmation These indicate that the capacity to conduct contact tracing is sufficient for the number of cases and contacts. At least 80% of contacts of new cases are monitored for 14 days Contacts should be contacted each day during the 14-day period and ideally no more than two days should elapse without feedback from a contact. Information and data management systems are in place to manage contact tracing and other related data While contact tracing data can be managed on paper at a small scale, large- scale contact tracing can be supported by electronic tools such as the Go.Data contact tracing software. PHASE 4/NEW NORMAL No Current Ordinance Businesses/Organizations Individuals High Risk Individuals PHASE 1/SEVERE Stay at Home Ordinance: 20-006 Businesses/Organizations Individuals High Risk Individuals CURRENT COVID-19 PHASE QUICK GUIDE PHASE 2/HIGH Ordinance: 20-005 Businesses/Organizations Individuals High Risk Individuals PHASE 3/MODERATE Ordinance: 20-010 Businesses/Organizations Individuals High Risk Individuals • Essential business/organization operations only. • Non-Essential work from home required. • Follow CDC guidelines. • Social distancing, masks, barriers, disinfecting requirements are outlined in ordinance. • Stay at home except for essential activities required. • Non-Essential work from home required. • Limited travel required. • Do not gather/congregate • Follow CDC guidelines • Same requirements as individuals. • Practice extra COVID-19 prevention vigilance. • Remain vigilant with hygiene practices and CDC recommendations. • Bars, restaurants, salons, indoor entertainment facilities. etc. closed to public. • Follow CDC guidelines. • Social distancing, masks, barriers, disinfecting requirements are outlined in ordinance. • Stay at home if sick or vulnerable. • Limited travel recommended. • Do not gather/congregate • Follow CDC guidelines recommended • Same requirements as individuals. • Extra COVID-19 prevention vigilance recommended. • Remain vigilant with hygiene practices and CDC recommendations. • 50% occupancy. • Work from home suggested. • Follow CDC guidelines • Social distancing, masks, shields, disinfecting requirements are outlined in ordinance. • Stay at home except for essential activities recommended. • Work from home suggested • Gathering/congregating not recommended • Follow CDC guidelines recommended • Same requirements/recommendations as individuals. • Extra COVID-19 prevention vigilance recommended. • Remain vigilant with hygiene practices and CDC recommendations. • 100% occupancy. • Resume normal operations with recommendations. • Resume normal social interactions. • Remain vigilant with hygiene practices and CDC recommendations. • New safety regulations to be determined • Resume normal gatherings and activities. • Resume normal social interactions. • Resume normal travel. • Remain vigilant with hygiene practices and CDC recommendations. • New safety regulations to be determined • Remain vigilant with preventative measures recommended. • Follow CDC recommendations RISK LEVELSSEVEREHIGHMODER A T E NEW NORMAL 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 20-0446,Version:1 COVID-19 Update. Summary: City Manager Paul Briseno will provide a regular update on COVID-19 to the City Council and members of the public. Background: 7/14/2020 City Council Minutes excerpt: “Council Items for Future Discussion. A motion was made by Council Member Brink, seconded by Council Member Bacon, that a standing item to discuss the current status of COVID-19 be added to future City Council Agendas. The motion carried by the following vote: Yes: 7 - Corbett, Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, and Collins.” City of Brookings Printed on 10/23/2020Page 1 of 1 powered by Legistar™ 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 20-0396,Version:1 City of Brookings Progress Report. Summary: Jacob Meshke, Assistant City Manager, will provide a progress report highlighting the City’s activities/projects. Attachments: Presentation (to be loaded following the Council Meeting) City of Brookings Printed on 10/23/2020Page 1 of 1 powered by Legistar™ 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 20-0448,Version:1 Executive Session, pursuant to SDCL 1-25-2, for discussing the qualifications, competence, performance, character or fitness of any public officer or employee or prospective public officer or employee. The term, employee, does not include any independent contractor. SDCL 1-25-2. Executive or closed meetings--Purposes--Authorization--Violation as misdemeanor. Executive or closed meetings may be held for the sole purposes of: 1.Discussing the qualifications, competence, performance, character or fitness of any public officer or employee or prospective public officer or employee. The term, employee, does not include any independent contractor; 2.Discussing the expulsion, suspension, discipline, assignment of or the educational program of a student or the eligibility of a student to participate in interscholastic activities provided by the South Dakota High School Activities Association; 3.Consulting with legal counsel or reviewing communications from legal counsel about proposed or pending litigation or contractual matters; 4.Preparing for contract negotiations or negotiating with employees or employee representatives; 5.Discussing marketing or pricing strategies by a board or commission of a business owned by the state or any of its political subdivisions, when public discussion may be harmful to the competitive position of the business; or 6.Discussing information listed in subdivisions 1-27-1.5(8) and 1-27-1.5(17). However, any official action concerning such matters shall be made at an open official meeting. An executive or closed meeting shall be held only upon a majority vote of the members of the public body present and voting, and discussion during the closed meeting is restricted to the purpose specified in the closure motion. Nothing in § 1-25-1 or this section prevents an executive or closed meeting if the federal or state Constitution or the federal or state statutes require or permit it. A violation of this section is a Class 2 misdemeanor. Source: SL 1965, ch 269; SL 1980, ch 24, § 10; SL 1987, ch 22, § 1; SL 2014, ch 90, § 2; SL 2019, ch 2, § 1. City of Brookings Printed on 10/23/2020Page 1 of 1 powered by Legistar™