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Home My WebLink About2022_01_11 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 "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, January 11, 2022 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. Action to approve the agenda. 4. Open Forum. At this time, any member of the public may request time on the agenda for an item not listed or to make a brief announcement or invitation. Items will be scheduled at the end of the meeting. Individuals are asked to state their name and address for the record. 5. 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. At the request of any one Council Member or the City Manager, an item may be removed from the Consent Agenda and placed on the regular agenda whenever additional discussion on an item is necessary. Items removed from the Consent Agenda will be discussed at the beginning of the formal items. 5.A.ID 22-0023 Action on the December 14, 2021 City Council minutes. MinutesAttachments: 5.B.RES 22-001 Action on Resolution 22-001, a Resolution designating the depositories for Page 1 City of Brookings January 11, 2022City Council Meeting Agenda - Final municipal funds. ResolutionAttachments: 5.C.RES 22-004 Action on Resolution 22-004, a Resolution designating the Official Newspaper. ResolutionAttachments: 5.D.ID 22-0026 Action to cancel the January 18, 2022 City Council Study Session. 6. Presentations/Reports: 6.A. SDSU Student Association Report. 7. Contracts/Change Orders: NONE 8. Ordinance First Readings: No vote is required on the first reading of an Ordinance. The title of the Ordinance is read. Public Comment and Council discussion is permitted. The date for the second reading or public hearing is announced. 8.A.ORD 22-001 Introduction and First Reading on Ordinance 22-001, an Ordinance Authorizing Budget Amendment No.1 to the 2022 Budget. Second Reading: January 25, 2022. Memo Ordinance Attachments: 9. Public Hearings and Second Readings: 9.A.ORD 21-042 Second Reading and Action on Ordinance 21-042, an Ordinance Authorizing Budget Amendment No. 6 to the 2021 Budget. Memo Ordinance Attachments: Action: Motion to Approve, Request Public Comment, Roll Call Legislative History 12/14/21 City Council read into the record 9.B.RES 22-005 Public Hearing and Action on Resolution 22-005, a Resolution of Intent to Lease Real Property at Brookings Airport to Medary Aviation, LLC. Memo Resolution Legal Notice Map Attachments: Action: Open & Close Public Hearing, Motion to Approve, Roll Call Page 2 City of Brookings January 11, 2022City Council Meeting Agenda - Final 10. Other Business: 10.A.RES 22-007 Action on Resolution 22-007, a Resolution Transferring Capital Improvement Project (CIP) Sinking Fund Funds to the Brookings Public Library’s Capital Projects 2022 Budget. Memo Resolution Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 10.B.RES 22-008 Action on Resolution 22-008, a Resolution Approving Brookings Scholarship Program Funding. Memo Resolution South Dakota State University Foundation Scholarship Proposal South Dakota Board of Regents Economic Impact Study Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 10.C.RES 22-006 Action on Resolution 22-006, a Resolution Authorizing the Licensing of TK Cannabis LLC, dba Prairie Grass, as a Medical Cannabis Dispensary in the City of Brookings. Memo Resolution Application Location Map Ordinance 21-028 Medical Cannabis - Summary Attachments: Action: Motion to Approve, Request Public Comment, Roll Call 11. City Council member introduction of topics for future discussion. Any Council Member may request discussion of any topic at a future meeting. Items cannot be added for action at this meeting. A motion and second is required which states the topic, requested outcome, and time frame. A majority vote is required. 12. Adjourn. Brookings City Council: Oepke G.Niemeyer, Mayor; Nick Wendell, Deputy Mayor Council Members Wayne Avery, Patty Bacon, Leah Brink, Joey Collins, Holly Tilton Byrne, Brookings City Council Staff: Paul M. Briseno, City Manager Steven Britzman, City Attorney Bonnie Foster, City Clerk Public Comment is limited to a maximum of three minutes per person during the meeting. Public Comment may be submitted prior to the meeting: 1) Email comments to the City Clerk (bfoster@cityofbrookings-sd.gov), 2) participate via Zoom, or 3) via eComment (https://cityofbrookings.legistar.com/Calendar.aspx ). Those who provide comments in any manner should understand their comments will become part of the official record and subject to review by all parties and the public. Page 3 City of Brookings January 11, 2022City Council Meeting Agenda - Final Meetings are broadcast live and recorded. Go to www.cityofbrookings-sd.gov for more information. Government Channel 9 Rebroadcast Schedule: Wednesday 1:00 pm / Thursday 7:00 pm / Friday 9:00 pm / Saturday 1:00 pm Upon request, accommodations for meetings will be provided for persons with disabilities. Please contact Susan Rotert, City Human Resources Director and ADA Coordinator at (605) 692-6281 at least three (3) business days in advance of the meeting. Page 4 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 22-0023,Version:1 Action on the December 14, 2021 City Council minutes. Attachments: 12/14/2021 Minutes City of Brookings Printed on 1/6/2022Page 1 of 1 powered by Legistar™ Brookings City Council December 14, 2021 (unapproved) The Brookings City Council held a meeting on Tuesday, December 14, 2021 at 5:30 PM, at the Brookings City & County Government Center, Chambers, with the following City Council members present: Mayor Oepke Niemeyer, Council Members Leah Brink, Holly Tilton Byrne, Patty Bacon, Joey Collins, Nick Wendell, and Wayne Avery. City Attorney Steve Britzman, City Manager Paul Briseno, and City Clerk Bonnie Foster were also present. 5:30 PM EXECUTIVE SESSION. A motion was made by Council Member Tilton Byrne, seconded by Council Member Bacon, to enter into Executive Session at 5:32 p.m. pursuant to SDCL 1-25-2.1, for purposes of 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. Present: City Council and Susan Rotert, Human Resources Director. The motion carried by a unanimous vote. A motion was made by Council Member Tilton Byrne, seconded by Council Member Brink, to exit Executive Session at 6:04 p.m. The motion carried by a unanimous vote. 6:00 PM REGULAR MEETING Consent Agenda. A motion was made by Mayor Tilton Byrne, seconded by Council Member Brink, to approve the agenda. The motion carried by the following vote: Yes: 7 - Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, Collins, and Avery. 4.A. Action to approve the agenda. 4.B. Action to approve the November 23, 2021 City Council Minutes. 4.C. Action on Resolution 21-109, a Resolution declaring surplus property for the City of Brookings. Resolution 21-109 - Declaring Surplus Property Whereas, the City of Brookings is the owner of the following described equipment formerly used at the City of Brookings: Solid Waste / Landfill: (4) 8 cubic yard dumpsters; (3) 6 cubic yard dumpsters; (14) 4 cubic yard dumpsters; (5) 3 cubic yard dumpsters; (5) 2 cubic yard dumpsters; (11) 1.5 cubic yard dumpsters Fire Dept.: One (1) pair of truck tire chains. Unknown tire size but measure 18 inches wide by 9 feet long; One (1) Briggs & Stratton 9 hp gas motor with Davey water pump; One (1) Skil Roto-Hammer with complete bit set (does not run) Larson Ice Arena: 2002 Olympia Millennium Ice Resurfacer, Serial #RM021128103 Brookings Public Library: One (1) 2017 Brother MFC-L8850CDW Printer (bad fuser); Two (2) 19” HP monitors; Three (3) Dell 19” monitors; One (1) Metal magazine rack Brookings Police Department: 24 – 17” HP L1710 screens Whereas, in the best financial interest, it is the desire of the City of Brookings to dispose of as surplus property; and Whereas, the City Manager is hereby authorized to sell or dispose of said surplus property. Now, Therefore, Be It Resolved by the governing body of the City of Brookings, SD, that this property be declared surplus property according to SDCL Chapter 6 -13. 4.D. Action to cancel the December 21, 2021 City Council Study Session. 4.E. Action on the 2022 City Council Meeting Calendar. 4.F. Action on Resolution 21-107, a Resolution Approving Agreements with the Brookings Regional Humane Society for the Care and Disposition of Impounded Animals. Resolution 21-107 - A Resolution Approving Agreements with the Brookings Regional Humane Society for the Care and Disposition of Impounded Animals Whereas, the City of Brookings has previously entered into an Agreement with the Brookings Regional Humane Society for the care and disposition of Impounded Animals; and Whereas, the City of Brookings and Brookings Regional Humane Society have agreed to minor changes to the current Agreement for the Care and Disposition of Impounded Animals, which amendment would be effective for the remainder of 2021; and Whereas, the City of Brookings and Brookings Regional Humane Society have also agreed to the terms of an Agreement for the Care and Disposition of Impounded Animals, which Agreement would be effective for the calendar year 2022; and Whereas, this Resolution is intended to authorize the City to enter into both the Amended Agreement as described herein for the remainder of 2021 and the above-described Agreement with the Brookings Regional Humane Society for the year 2022. Now, Therefore, It Is Hereby Resolved by the City Council of the City of Brookings, South Dakota that the Amended Agreement for 2021 and the Agreement for Care and Disposition of Impounded Animals for the year 2022 with the Brookings Regional Humane Society are hereby approved and the City Manager and City Clerk are authorized to execute these Agreements. Update: 2021-2026 Strategic Plan. City Manager Paul Briseno provided a State of the City Message with an update on the 2021-2026 Strategic Plan and successes of the 2021 Calendar Year. 2021-2026 Strategic Plan A. Fiscal Responsibility Brookings will implement innovative and responsible policies and business practices to effectively manage its fiscal and human resources for the short and long term. Brookings will maintain a stable financial environment that is transparent and that maintains an outstanding quality of life for our citizens. Business practices will be efficient, business friendly and ensure exceptional customer service to all stakeholders and citizens. GOAL 1: Outside Agency Funding Analysis (Capital/Economic/Social Services)  Social service agency analysis/recommendation/impact report provided by United Way  Economic Development agencies review started GOAL 2: Evaluation of Existing Staffing, Service Delivery, and Service Level  Three additional dispatchers funded in the 2022 budget  Lead Dispatchers added to assist with overtime and span of leadership  All open positions evaluated for need and position refinement  Identified initial department needs and exploration of software, duties, and process ongoing GOAL 3: Maintenance of City Facilities and Infrastructure (Unfunded Liability)  $1.2 million was budgeted in 2022 from City Council Financial Policy  All future facility maintenance now within the 10-year Capital Improvement Plan  Upgraded the Library’s HVAC system and exterior doors  Replaced the Art Council’s elevator GOAL 4: Review of Financial Reserve Policy GOAL 5: Long-Term Strategic Financial Plan  10-year operational plan started with consultant  Financial reserve policy/analysis in collaboration with 10 -year operating plan GOAL 6: Internal Financial Process Review and Auditing  Consultant contracted and primary areas for improvement identified  Ongoing continuous improvement lead and completed by internal staff OTHER:  -$4.3 million in American Rescue Plan (1/2) funding received/administered with survey  COVID incentive shot program partnership with SDSU/SWIFTEL  2020 Audit contained 0 material weakness  Received the award for outstanding CAFR/ACFR  2021 Budget in Brief presented to all employees and community leadership groups  New 2022 Budget in Brief developed  Obtained a $2,500 Literacy Grant to add Wonderbooks and launchpads  Dark Fiber – Increase efficiencies/communication and opportunities while saving $85,000 over 5 years  Dell’s VxRail Hypercnverged Infrastructure – combine multiple datacenters into one creating costs savings  Fortinet Fortigate 100F Nextgen firewall installation eliminated 14 outdated firewalls with increased protection B. Safe, Inclusive, and Connected Community Brookings and our partners will provide programs, gathering places, and events where the community can come together to participate in opportunities of learning, recreation, and enjoyment. Connectivity within the community will be cultivated through citizen and cultural engagement, outstanding customer service, public safety and clear, accessible communication. Our community's history, its diversity, inclusivity, and environment will be protected for future generations. GOAL 1: Police Facility Improvements  Owners representative hired  Engineer and construction manager at risk with reconstruction/new construction est. spring 2022  2021 approximately $7million identified in CCFPP with $500,000 committed in November GOAL 2: Emergency Management Planning  First Ever City/County table top emergency preparedness drill in November GOAL 3: Fire Training Facility Improvements GOAL 4: Food Pantry Improvements  $1.7 million Community Development Block Grant Secured for United Way, Food Pantry, Back Pack Program, and senior programing with con struction in 2022 GOAL 5: Park Master Plan Implementation  Master plan completed  Park Board will prioritize and strategize outcomes GOAL 6: Bicycle Master Plan Awareness and Implementation  Future implementation and funding of 1-1.5 mile of trails along 20th Street identified for 2022  $87,000 State Grant awarded for Prairie Hills hike and bike path extension  GIS bike master plan layer completed  Bike Committee transferred as a Parks Board Subcommittee  Bike Master Plan now included in ongoing Development Review Discussions GOAL 7: Transportation Connectivity Index Development and Implementation GOAL 8: Housing Study Update and Implementation  RDG contracted for the housing study with BEDC, County and City with completion early 2022  Traditional zoning changes to R1D to include setback and lot size reductions  Affordable housing infrastructure commencement at 15th and 7th Ave, developer agreement 2022  Final Plat policy changed to allow administrative approval which expedites development  Traditional Development proposed that increases workforce housing and peacemaking  Development cost calculator completed GOAL 9: Downtown Master Plan Development and Implementation GOAL 10: Volunteer Board Advancement – Presentations (Annual Report and Goal Setting)  Staff liaisons notified of 2022 Council Planning session discussion  Elimination of inactive boards  Combination of boards for greater efficiencies, resources, and outcomes  Created new structured orientation process for all new members OTHER:  BMU water shutoff policy change to eliminate trip/ADA hazards in sidewalks  New dog park grant awarded for Sexauer, 2022 development  $3.7m Bob Sheldon renovation completed  Bob Shelden art project designed, 2022 completion  Inaugural Community Games  BISA Hockey Performance Center project development  Park & Rec Summer Guide printed in Spanish  Library Board’s 2022-2024 Strategic Plan finalized  Native American History Month Speaker Series grant funded  Safety assessment on the Library completed by the police department with 2022 improvements  $3,000 ALA “Libraries Transforming Communities” grant  Sponsored and planned successful Juneteenth event  Bystander training to the public  Continuation of listening sessions C. Service and Innovation Excellence Brookings will provide a working environment that is committed to ongoing innovation and outstanding service through listening and engagement. Employees will be provided the tools, resources, and support while promoting continuous improvement and growth. GOAL 1: Performance Management Implementation and Enhancement  Brookings Insights Performance Management implemented spring 2021 and updated every six  Months with the quarterly CFO report directly linked to the public facing website GOAL 2: Development Review Team Process Improvement GOAL 3: City Governance and Operations Policy Review  Governance policy complete  Ends and other Council policy review underway  Commission on Accreditation for Law Enforcement Agencies (CALEA) – Started a three-year process for accreditation which includes the review of all police department policies GOAL 4: Community Survey Development, Distribution, and Review GOAL 5: Community-Oriented Policing Engagement, Awareness and Implementation  National Night Out record breaking attendance (700+)  Launch of Desk Officer Reporting system- Citizen reporting 24/7 of non-violent crimes  Coffee with a Cop Started GOAL 6: Intergovernmental Relations and Policy Shaping GOAL 7: Marijuana Implementation Planning and Policy  Zoning, application, fee and process approved by deadline OTHER:  Creation of a Public Works Department that improve efficiencies  New City Planner – First AICP Certified Planner  New City Engineer – Background in best management practices with environmental experience  New Fire Chief and Deputy Fire Chief  GIS division 95% base layer complete – Collaboration with the County, BMU, & School  GIS – development of apps for code enforcement, sidewalk inventory, fire hydrants, water flow, bike master plan  GIS story map of Brookings future development hindrances  New employee evaluations and software system  New employee monthly news letter  Total compensation/benefit statements sent to all employees annually  Part Time pay analysis brought employees into market  Finalized department head 360 evaluations  Organizational wide diversity and bias training  Launched Engage Brookings App  SDSU Project Engagement – Smart Projects, Sustainable initiatives, redevelopment opportunities, research park project  Fleet Maintenance Software – Replacement and maintenance program  American Public Works Association – Streets personnel attended AWA snow best practices to improve winter weather response and environmental friendly use of salt  Evaluation and update of City/School District joint use agreement  Restructure of Park Maintenance Staff to increase efficiencies with limited staffing  Building permit software (iWorQ) integration with BMU for enhanced communication, efficiencies, etc. on building permit reviews  Assisted 21 applicants to date with the 11.1 Historic Review process  Joint Jurisdiction Zoning Ordinance Update – City & County Planning  Commissions started the ordinance review process after a break during pandemic  Successful negotiation of multi-year union agreements with police and city general  Non-lethal force tools added with pepper ball launchers  Text to 911 D. Sustainability Brookings will meet our environmental, community, economic desires and needs without compromising future generations’ quality of life. We will strategically plan, implement and maintain current and future infrastructure and facilities, using technology when possible, to support the community’s quality of life, economic viability, and protect the environment. GOAL 1: Stormwater and Groundwater Master Plan, Best Practices, Maintenance, Development Code, Education, and Partnerships  Stormwater master plan consultant contracted and completion expected 2022  Six Mile Stormwater Study FEMA grant awarded for $100,000  Stormwater pilot project on Jefferson addresses sump pump discharge  SDSU Collaborations – Stormwater BMP (rain gardens, rain barrels, education)  Impervious pavement project at Bob Shelden complete  20th & Medary stormwater improvement funding identified through TIF  CITCO educational retention garden GOAL 2: Sustainable Development Practices Training, Implementation, and Policy  All Department Heads attended sustainability training  $10k new tree rebate program  CITCO electric vehicle charging station collaboration with BMU  Fast charging station collaboration effort with BMU  New Electric fleet vehicle and direction to start moving to renewable fuel fleet  First Ever Household Hazardous Waste Event  Emerald Ash Borer Management Plan GOAL 3: Park Land Dedication Policy GOAL 4: Comprehensive Plan Implementation  Infrastructure Acceptance Policy – Developed to protect City/Residents infrastructure  Commercial Overlay Districts – Protecting the culture and aesthetics of Brookings on primary corridors  Buffer Yard Regulations – Increased green space and landscaping (BMP stormwater) incorporated to protect environment and neighborhoods OTHER:  Landfill Master Plan state grant Identify recycling, household hazardous waste, risk/liability reductions, efficiencies, sustainability of landfill facility  Historic Preservation Plan Update completed  Library HVAC – value engineering to reduce costs while gaining efficiencies  City of Brookings new domain implementation increased interoffice communication  Print services contract renegotiated to consolidate departments into one contract  Migration of TimeClock and Springbrook financial/Personnel services to the Cloud E. Economic Growth Effective community investment and equitable opportunities for prosperity fostered through streamlined processes, technology, safety, proper planning and an aesthetically attractive community appearance. This is supported by sustainable development through fostering partnerships. The quality of life for our citizens is key to our economic success. GOAL 1: Swiftel Center Return on Investment and Financial Planning  Spectra request for proposal outlined a cost savings/mitigation GOAL 2: Swiftel Center Facility Expansion and Hotel  Site listed with Brookings Economic Development Corporation to receive proposals GOAL 3: Swiftel Center Agriculture Market Growth GOAL 4: Marketplace Development GOAL 5: City-Owned Land and Purchasing Policy GOAL 6: Future Development and Growth Cost-Benefit Analysis  Cost – Benefit calculator created for residential development analysis through the University of Iowa GOAL 7: Armory Redevelopment and Hotel  A new agreement was approved with transfer of the property expected July 2022 GOAL 8: I-29 and 20th Street Interchange Construction  Approval for entry received  Design completed and bid  Bids received November 17 OTHER:  Future land use GIS presentation to the key stakeholder of 10-15 years of developable land  Inventory of community photos for marketing shared with city partners  15th and 7th Street Infrastructure – prep for the workforce housing project  Attainment of McClemans Property for storm water and street infrastructure  DRT met 33 times, reviewed 12 rezones, 5 preliminary plats, 29 development projects, 7 conditional use permits, 32 agenda items on policy/presentations, and 85 total agenda items  Creation of TIF #11 to spur economic growth in southwest portion of community Update: Housing Study. City Manager Paul Briseno provided an update on the regional housing study survey for the City of Brookings, Brookings County, and the Brookings Economic Development Corporation. The Housing Study's objectives are to understand the current opportunities and issues in the regional housing market and deliver recommendations to move the region towards more affordable and attainable housing for all. Resolution 21-106. A motion was made by Council Member Tilton Byrne, seconded by Council Member Brink, that Resolution 21-106, a Resolution Authorizing Change Order No. 1 (Final) for 2021-08STI, Overlay Project; Bowes Construction, Inc., be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, Collins, and Avery. Resolution 21-106 - Resolution Authorizing Change Order No. 1, Final, for Project 2021-08STI Street Maintenance and Overlay Project; Bowes Co nstruction, Inc. Be It Resolved by the City Council that the following change order be allowed for 2021-08STI, Street Maintenance and Overlay Project: Construction Change Order Number 1 (Final): Adjust plan quantities to as-constructed quantities for a decrease of $25,209.43 and include additional work for an increase of $90,390.72. Combining these will result in the project cost increasing by $65,181.29. To accommodate the additional work, the substantial completion date shall be extended by 10 working days to close out the project. Resolution 21-116. A motion was made by Council Member Avery, seconded by Council Member Collins, that Resolution 21-116, a Resolution Authorizing Change Order No. 1 (Final) for Project 2021-04STI Swiftel Pavement Reconstruction Project; Timmons Construction, Inc., be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, Collins, and Avery. Resolution 21-116 - Resolution Authorizing Change Order No. 1, Final, for Project 2021- 04STI Swiftel Pavement Reconstruction Project; Timmons Construction, Inc. Be It Resolved by the City Council that the following change order be allowed for 2021-04STI, Swiftel Pavement Reconstruction Project: Construction Change Order Number 1 (Final): Adjust plan quantities to as-constructed quantities for an increase of $21,362.00 to close out the project. This will result in a final contract amount of $130,894.50. Resolution 21-112. A motion was made by Council Member Wendell, seconded by Council Member Brink, that Resolution 21-112, a Resolution Approving Amended and Restated Joint Cooperative Agreement for the Management of the Brookings City & County Government Center, be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, Collins, and Avery. Resolution 21-112 - A Resolution Approving Amended and Restated Joint Cooperative Agreement for the Management of the Brookings City & County Government Center Be It Resolved by the City Council of the City of Brookings, South Dakota as follows: Whereas, the City of Brookings and the County of Brookings are parties to a Joint Cooperative Agreement, dated April 6, 2010, and Whereas, the City of Brookings and the County of Brookings now desire to amend the above-mentioned Joint Cooperative Agreement pursuant to an Amended and Restated Joint Cooperative Agreement for the Management of the Brookings City & County Government Center, a true copy of which is attached hereto, marked Exhibit “A”, Now, Therefore, It Is Hereby Resolved by the City Council of the City of Brookings, South Dakota, as follows: A. That the Amended and Restated Joint Cooperative Agreement for the Management of the Brookings City & County Government Center is approved; and B. That the Mayor and City Clerk are authorized to execute the Amended and Restated Joint Cooperative Agreement for the Management of the Brookings City & County Government Center on behalf of the City of Brookings. Exhibit “A” Amended and Restated Joint Cooperative Agreement for the Management of the Brookings City & County Government Center ______________ This Amended and Restated Joint Cooperative Agreement for the management of the Brookings City & County Government Center is executed effective as of December 14, 2021, by and between the County of Brookings, South Dakota (the “County”) and the City of Brookings, South Dakota (the “City”). Whereas, the parties did enter into a Joint Agreement for the Brookings City & County Government Center effective as of the 13th day of April, 2010, and the parties now desire to amend and restate their Joint Agreement for the management of the Brookings City & County Government Center. Now, Therefore, the parties to the above-referenced Agreement hereby amend and restate their Agreement in the manner set forth below. Section One Statutory Authority/Joint Powers Agreement This agreement is an agreement for joint or cooperative action pursuant to SDCL Chapter 24, and does not constitute a separate administrative or legal entity pursuant to SDCL § 1-24-19. Section Two Purpose of this Agreement and Use of the Government Center Building This agreement is intended to set forth the terms and conditions under which the County and City will manage and maintain their government building for the joint and common use of the County and City to provide space for the County’s administrative offices and the City’s administrative offices. Further, it is the intent of both Parties that this Agreement may be further amended and supplemented as needed. Section Three Building Name The name of the building is the BROOKINGS CITY & COUNTY GOVERNMENT CENTER. Section Four Government Center Advisory Committee The parties have established a Government Center Advisory Committee, consisting of four (4) members, with two (2) members designated by the County and two (2) members designated by the City. The Government Center Advisory Committee meets periodically as necessary for the purpose of discussing the operation of the building and grounds. The representatives of the County shall consist of two County Commissioners, who shall be appointed by the County Commission. The representatives of the City shall be employees of the City, appointed by the City Manager. The Government Center Advisory Committee shall have general authority concerning the continued operation of the building, including the following: 1. Elect Chairperson and Vice Chairperson; 2. Approve the annual budget and budget amendments; 3. Review building security, safety issues and insurance coverage; 4. Review necessary building and utility repairs, maintenance and building improvements; 5. Review and update information technology (“IT”) within the building; 6. Discuss landscaping, exterior maintenance and snow removal; 7. Consider capital improvements and equipment purchases as necessary; 8. Coordinate use of election facilities; 9. Update this Agreement as necessary; and 10. Special meetings may be called, as needed, by the Chairperson. The following matters are subject to approval by both the County Commission and the City Council:  All contracts where competitive bidding is required;  All bonds and financing; and  The annual budget of the building maintenance, repairs and improvements. In the event members of the Government Center Advisory Committee are at an impasse by virtue of a tie vote on an issue they deem irreconcilable, the Committee agrees to submit the issue to a mutually acceptable dispute resolution and mediation process. Section Five Allocation of Building Maintenance Costs A) Each party is paying an allocated share of the ongoing building-related costs based upon their respective square footage of separate office area as it relates to the combined square footage of both separate office areas, with the County’s share at Fift y- two percent (52%) and the City’s share at Forty-eight percent (48%). B) Each party shall timely pay its respective share of any building and capital improvement costs as they become due. Section Six Furniture, Fixtures and Equipment The City and County will each continue to pay for their own furniture, fixtures and equipment necessary for their operations in the building. Each Party shall pay for furniture, fixtures and equipment necessary for the joint areas and the general operation of the building based upon the allocation of the County’s share at Fifty-two percent (52%) and the City’s share at Forty-eight percent (48%). The Government Center Advisory Committee may recommend to the City and County that furniture, fixtures and equipment deemed no longer necessary for the joint areas and general operation of the building be declared surplus. The City and County may then declare such property surplus, and can determine the method of disposal by the City and County. Section Seven Insurance Liability insurance shall continue to be procured jointly by the County and the City to protect these governmental entities from any and all claims for bodily injury, including death and property damage arising out of the use or operation of the facility. In addition, fire and extended coverage insurance in an amount not less than the estimated replacement cost of the building shall be obtained by the County and the City, which will insure the owners of the building in case of fire, catastrophe, or other damage to the building, fixtures, and/or equipment contained in the facility. Each Party shall pay for the cost of such insurance based upon the allocation of County share of Fifty-two percent (52%) and the City share of Forty-eight percent (48%). Each Party shall pay for any insurance on its separately owned furniture, fixtures and equipment. Section Eight Portion and Method of Allocating Expenses of Operation and Maintenance Each party shall pay for all costs of maintenance, repairs, utilities and capital replacement for its separate areas. The costs of maintenance, repairs, utilities and capital replacement of the building exterior, roof, heating and air conditioning systems, grounds, parking lot, audio and video equipment in joint-use spaces and common areas shall be allocated between the Parties based upon the allocation of the County’s share at Fifty-two percent (52%) and the City’s share at Forty-eight percent (48%). Based upon action taken in February, 2019, the City Manager and Commission Department Director have administrative authority to make individual purchases of up to $5,000. Section Nine Management of Common Areas Management and scheduling of the joint-use areas of the building shall follow the “Meeting Room & Common Space Usage Policy” (Exhibit “A”, attached) as established by the Government Center Advisory Committee. The County Commission and the City Council shall always have priority as to the use of the Commission/Council Chambers. Any fees generated by the use of the common areas of the building shall be applied to the costs of maintenance and upkeep of such common areas. Section Ten Personnel The City shall control the personnel and operations of its offices and the County shall control the personnel and operations of its offices, except as specifically agreed to within the terms of this Agreement or any other agreement between the Parties. The County shall provide custodial/maintenance services for the building as needed throughout the normal workday hours and on an emergency basis. Wages fo r the county employee(s) shall be reimbursed to the County by the City quarterly and shall be based on the county employees’ hourly wage, benefits and number of hours they are at the facility based upon the allocation of the County’s share at Fifty-two percent (52%) and the City’s share of Forty-eight percent (48%). Section Eleven Disposition of Revenue Derived from Building In the event that there exists any revenues derived from the operations of the building, the County and City shall retain such revenues as are attributable to the space under its control. Section Twelve Termination This agreement shall continue until otherwise terminated by the parties by mutual agreement. Section Thirteen Partial Invalidity If any one or more of the provisions of this Agreement shall be held to be unenforceable in any respect, by final decree of any court of lawful jurisdiction, such unenforceability shall not affect any other provision hereof, or of any exhibit or attachment thereto. Section Fourteen Agreement Open to Public Inspection/Publication of Proceedings This agreement shall be filed and copies hereof kept as an open record with the County Finance Officer and City Clerk and shall be open to public inspection. The publication and other procedures for Notice of Meetings, Meetings, including Agendas and Minutes of Meetings wherein the business of the Government Center Advisory Committee is conducted shall conform to the respective procedures of the County of Brookings and City of Brookings. Section Fifteen Amendments This agreement may be amended and supplemented from time to time by the action of the governing bodies of the County and City. This agreement is intended to amend previous agreements, and to the extent such agreements are inconsistent with this agreement, they are hereby repealed. Therefore, all other agreements in conflict herewith are hereby repealed. Exhibit “A” Joint Powers Board, City and County of Brookings Meeting Room & Common Space Usage Policy 1. Brookings County shall develop its own individual policy governing the use of Rooms 103, 221, 215, and 332. The City of Brookings shall develop its own individual policy governing the use of Rooms 147, 241, and 242. 2. Room 300 (Community Room), Room 310 (Chambers), Room 312 (Executive 3. Session Room), Rooms 340/341 (Conference/Break Room), and the first and second floor common spaces (hallways) shall be available to any committee, advisory board, commission, task force, or council whose establishment has been duly affiliated with, created, or authorized by the governing board of either the City or County of Brookings. 4. Scheduling must occur through the appropriate City or County procedure. It is understood most of these scheduling demands will be standing meetings of each entity. 5. Meeting rooms referenced in #2 shall be available to any entity that is non-profit and whose purpose and mission is governmental, civic, charitable, fraternal, or educational in nature. Meetings held by the governing board of the City and County as well as those groups listed in #2 shall have priority. 6. It is preferred that usage occur within regular business hours. Events held in these spaces shall not disrupt regular business. An effort will be made to hold events in the first and second floor common spaces after hours when possible. Any group, other than those listed in #2, using a space during non-work hours shall be communicated between the City and County in advance of the event. 7. Users not listed in #2 must schedule the spaces by contacting either the Commission Department Director’s office or the City Manager’s office. 8. Users must return the condition of the space to the way they found it. Users will be responsible for their own set-up arrangements of the room. Users are responsible for clean-up and will be billed for any special cleaning necessary or any damage that occurred. As long as garbage is bagged, bags may be left for building staff to dispose. 9. Tables, chairs, flags, a lectern, and a podium are available. 10. Electronic equipment such as recording, teleconferencing, audio/visual is available and will be billed at an hourly rate for technical assistance for the use of such equipment. 11. Alcohol and tobacco are not permitted in the building. Food and other beverages are permitted. (See #6) 12. Users are responsible for the supervision of children when using the rooms. ADOPTED: Joint Powers Board, August 15, 2019 Legal Services Agreement – City Attorney. A motion was made by Council Member Bacon, seconded by Council Member Brink, that a Legal Services Agreement between the City of Brookings and Steven J. Britzman, Attorney at Law for a one-year contract (01/01/2022 - 12/31/2022), be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, Collins, and Avery. Legal Services Agreement THE CITY OF BROOKINGS AND STEVEN J. BRITZMAN, ATTORNEY AT LAW agree that the City of Brookings has appointed Steven J. Britzman to serve as City Attorney for a one (1) year period, commencing January 1, 2022 and ending December 31, 2022, unless extended by mutual agreement of the parties, in writing. The City of Brookings and Steven J. Britzman desire to set forth the terms of their Agreement concerning the provision of legal services by Steven J. Britzman as City Attorney as follows: 1. Performance of Legal Services Steven J. Britzman will perform all legal services as provided in the "Scope of Services for City Attorney for City of Brookings" (the "Scope of Services"). A copy of the Scope of Services for City Attorney is attached hereto. Steven J. Britzman will perform all legal services which include representing the City in Magistrate Court in the enforcement of City Ordinances. 2. Insurance Coverage Steven J. Britzman will maintain Attorneys Professional Liability coverage in the amount of One (1) million dollars ($1,000,000) per claim and One (1) million dollars ($1,000,000) aggregate during the term of this agreement. Steven J. Britzman will be responsible to pay any deductible amount under the foregoing coverage. 3. Conflicts of Interest The parties to this Agreement understand that actual or perceived conflicts of interest are defined in great detail in the South Dakota Rules of Professional Responsibility which govern attorneys and which are a part of the statutes of South Dakota. Accordingly, Steven J. Britzman will follow the South Dakota Rules of Professional Responsibility, immediately disclose to the City Council and City Manager any conflict or the appearance of a potential conflict, and resolve the issue to the satisfaction of the City of Brookings and the client. 4. Compensation for Legal Services Steven J. Britzman agrees to provide all of the legal services provided in the Scope of Services, for a monthly sum from January 1, 2022 through December 31, 2022 up to eight thousand five hundred eighty-nine and 16/100 ($8,589.16) Dollars, payable on the last day of the month. The hourly rate for other legal services, including those set forth in Item 15 of the Scope of Services is $175.00 during the term of this Agreement. The legal services provided by Steven J. Britzman will be performed as an independent contractor and Steven J. Britzman shall therefore pay all payroll and business expenses incurred in providing legal services to the City. 5. Expense Reimbursements, Meetings and Conferences In addition to the compensation for legal services during each year of this Agreement, the City will provide Three Thousand Dollars ($3,000.00) per year for membership in the International Municipal Attorneys Association (IMLA) (currently $625.00 per year) and for Conference registration, travel and lodging for the Annual Meeting of the International Municipal Lawyers Association which includes approximately nineteen hours of continuing legal education. The City Attorney will also be reimbursed for out-of-pocket expenses when required to travel outside the City of Brookings to other meetings or to perform legal services, provided such travel is approved by the City Manager in advance of travel. 6. Legal Services not within the Scope of Services Steven J. Britzman shall first obtain approval of the City to perform any legal services excluded from the Scope of Services, however Steven J. Britzman and the City agree that it is appropriate for the City Attorney to be responsive to residents of the city, the media, other municipal attorneys, the municipal league and other public officials where communication or an appropriate measure of assistance is in the best interest of the City. Any work requested by other entities or parties which requires over one hou r of service will only be provided after consulting with the City Manager for approval. 7. Appointment and Compensation of Assistant City Attorney It is further understood and agreed that Eric Rasmussen be appointed as Assistant City Attorney, based upon the recommendation of the City Manager and City Attorney. The term of office of the Assistant City Attorney shall coincide with the City Attorney’s term of office and the scope of services shall be as set forth in this Legal Services Agreement. The compensation for the Assistant City Attorney shall be paid in the following manner: a) If the City Attorney performs Fifty (50) or fewer hours of service per month, the City Attorney will pay all of the compensation for the Assistant City Attorney. b) If the City Attorney performs more than Fifty (50) hours of service per month, then the City will reimburse the City Attorney for all of the fees paid by the City Attorney to the Assistant City Attorney for the month. The Assistant City Attorney’s rate of compensation for this Contract is $175.00 per hour. SCOPE OF SERVICES FOR CITY ATTORNEY FOR CITY OF BROOKINGS THE CITY ATTORNEY SHALL PERFORM THE FOLLOWING SERVICES: 1) The City Attorney will attend all City Council meetings as the legal advisor for the Brookings City Council, unless the absence is due to vacation or illness or the subject matter does not require the assistance of counsel. If the City Attorney is unable to attend, then the Assistant City Attorney shall attend. 2) Provide all necessary legal consultation services, including oral and written opinions and research as requested by the Brookings City Council and the City Manager. 3) Provide legal assistance to the City’s Boards and Commissions, except the Utility Board and Hospital Board, as requested by the City Manager and City Council. 4) Provide legal representation to the City in litigation initiated against the City and by the City in circumstances where the City is not represented by legal counsel assigned by its insurance company. Legal representation in litigation must be authorized in each instance by the City Council and compensation will be in addition to the monthly compensation as provided in Section 15 of this Scope of Services. 5) Assist in the preparation and review of all contract agreements, resolutions, ordinances and other legal documents considered, adopted or endorsed by the City. 6) To maintain a working knowledge of Municipal Law on both the State and Federal level. 7) Provide legal representation for the City before administrative bodies upon special request by the City Council. 8) As requested, review all claims made against the City. 9) Confer with colleagues who specialize in areas of law to establish and verify a basis for legal proceedings; serve as a liaison between outside legal counsel and City Officials on specialized legal issues. 10) Prepare a monthly written report to the City Manager of legal services performed which includes a description of the service and the time required to perform the service. 11) Assist the City Clerk and the private sector firm in Ordinance Codification. 12) The City Attorney will be an advisor to the labor negotiating staff and will review labor contracts as required or requested. 13) Maintain professional awareness of current literature and changes in law and attend continuing legal education to ensure the most efficient, cost-effective, and accurate operation of the City Attorney’s Office. 14) Review proposed state legislation affecting the City and prepare or supervise the preparation of state legislation relating to municipal and city government matters as directed by the City Manager or City Council. Consult with City Council, the City Manager and department heads in regard to such legislation and testify before legislative boards as requested. 15) The City Attorney’s basic fee does not include the following services: a. Litigation b. Recodification of substantially all of the City Ordinances. All services with the exception of litigation and recodification of the City Ordinances will be compensated pursuant to the City Attorney’s basic fee. Fees for services in a. and b. above will be as negotiated and agreed upon by the parties. 16) The Assistant City Attorney shall perform all services set forth in this Scope of Services as directed by the City Attorney. FIRST READING – Ordinance 21-042. An introduction and first reading was held on Ordinance 21-042, an Ordinance Authorizing Budget Amendment No. 6 to the 2021 Budget. Second Reading: January 11, 2022. Ordinance 21-040. A public hearing was held on Ordinance 21-040, an Ordinance to Change the Zoning within the City of Brookings, rezoning Block 20 in Prairie Hills Addition from B-2/R-3 to Residence R-3 Apartment District. A motion was made by Council Member Brink, seconded by Council Member Wendell, that Ordinance 21-040 be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, Collins, and Avery. Ordinance 21-041. A public hearing was held on Ordinance 21-041, an Ordinance to Change the Zoning within the City of Brookings, rezoning Lot 2, Block 19 in Prairie Hills Addition from Business B-2 District to Residence R-3 Apartment District. A motion was made by Council Member Collins, seconded by Council Member Bacon, that Ordinance 21-041 be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, Collins, and Avery. Resolution 21-108. A public hearing was held on Resolution 21 -108, a Resolution of Intent to Lease Real Property to LNJ Farms in the Wiese and Freeland Additions. A motion was made by Council Member Brink, seconded by Council Member Collins, that Resolution 21-108 be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, Collins, and Avery. Resolution 21-108 - Resolution of Intent to Lease Real Property to LNJ Farms, Lyle Bothe, owner, in the Wiese and Freeland Additions Be It Resolved by the governing body of the City of Brookings, South Dakota, that the City of Brookings intends to enter into a lease with LNJ Farms, Lyle Bothe, owner, for a period of one year, commencing on January 1, 2022 and ending December 31, 2022, and the Bidder may have the option to renew this Lease for one additional year for 2023. This lease pertains to the following described property: The designated crop land of thirty (30) acres more or less in Block 9 of the Wiese Addition and the designated crop land of ten (10) acres more or less in Block 10 of Freeland Addition in the City of Brookings, Brookings County, South Dakota. The Lease will be an amount of One Hundred Eighty Dollars ($180.00) per acre for crop land annually, payable first half on April 1 and the remaining half on November 1. The City of Brookings may terminate this Lease at any time in the event a parcel of the above described property is to be sold by the City of Brookings. If a portion of the leased land is sold, the number of acres to be paid for will be adjusted at the unit price per acre. Be It Further Noted, that a Public Hearing on this Resolution was held on December 14, 2021 at 6:00 o’clock P.M. in the Chambers of the City & County Government Center and that all persons were given an opportunity to be heard on the intent to lease real property. Resolution 21-110. A public hearing was held on Resolution 21 -110, a Resolution of Intent to Lease Real Property to MC Hay, Mike Erickson and Corey Granum, owners, for Hay Lease at Brookings Regional Airport. A motion was made by Council Member Bacon, seconded by Council Member Brink, that Resolution 21 -110 be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, Collins, and Avery. Resolution 21-110 - Resolution of Intent to Lease Real Property to MC Hay, Mike Erickson and Corey Granum, owners, for Hay Lease at Brookings Regional Airport Be It Resolved by the governing body of the City of Brookings, South Dakota, that the City of Brookings intends to enter into a Lease with MC Hay for a period of one (1) year, commencing on January 1, 2022 and ending December 31, 2022, with the option to renew for one (1) additional year (2023) and pertaining to the following described property: The designated hayland on the Brookings Regional Airport, three hundred and fourteen (314) acres more or less in Sections 26, 27, and 35, T110N, R50W , in the City of Brookings, Brookings County, South Dakota. The Lease will be an amount of $91.33 per acre, $28,677.62 annually, for the hayland, with the first half payable on July 1 and the remaining half on November 1 of each year. Be It Further Noted, that a Public Hearing on this Resolution was held on December 14, 2021 at 6:00 o’clock P.M. in the Chambers at the City & County Government Center and that all persons were given an opportunity to be heard on the intent to lease real property. Temporary Alcohol Application. A public hearing was held on a Temporary Alcohol Application from St. Thomas More Catholic School, to operate within the City of Brookings, South Dakota, on February 5, 2022, for a Winter Gala and Grand Auction to be held at 1700 8th Street South. A motion was made by Council Member Wendell, seconded by Council Member Tilton Byrne, that the Temporary Alcohol Application be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, Collins, and Avery. Video Lottery Request – Corner Pantry #19. A public hearing was held on a request for Video Lottery for MG Oil, dba Corner Pantry #19, 921 20th Street South. Legal description: Lot 7B, Block 13, McCleman’s Addition. Pending permit issuance and final inspection per the Community Development Department. A motion was made by Council Member Collins, seconded by Council Member Brink, that the Video Lottery request be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, Collins, and Avery. On-Off Sale Malt License Application – Corner Pantry #24. A public hearing was held on a request for an On-Off Sale Malt License for MG Oil Company, dba Corner Pantry #24, Marlyn Erickson and Troy Erickson, owners, 600 6th Street., Suite B, legal description: Lots 5-7, Block 11, Second Addition, Suite B. Pending permit issuance and final inspection per the Community Development Department. A motion was made by Council Member Brink, seconded by Council Member Wendell, that the On-Off Sale Malt License be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, Collins, and Avery. Video Lottery Request – Corner Pantry #24. A public hearing was held on a request for Video Lottery for MG Oil Company, dba Corner Pantry #24, Suite B, Marlyn Erickson and Troy Erickson, owners, 600 6th Street, legal description: Lots 5-7, Block 11, Second Addition, Suite B. Pending permit issuance and final inspection per the Community Development Department. A motion was made by Council Member Brink, seconded by Council Member Collins, that the Video Lottery request be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, Collins, and Avery. Resolution 21-117. A motion was made by Council Member Brink, seconded by Council Member Wendell, that Resolution 21-117, a Resolution Authorizing the Licensing of Deja Vu SD as a Medical Cannabis Dispensary in the City of Brookings, be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, Collins, and Avery. Resolution 21-117 - A Resolution Authorizing the Licensing of Deja Vu SD as a Medical Cannabis Dispensary in the City of Brookings Whereas, Deja VU SD submitted an Application and Application Fee for a Medical Cannabis Dispensary License to the City of Brookings; and Whereas, the City of Brookings has reviewed the Deja VU SD Medical Cannabis Dispensary License Application and has determined that the Application satisfies the requirements of Ordinance 21-028, an Ordinance Establishing Procedures for the Licensing of Medical Cannabis Establishments in the City; Now, Therefore, Be It Resolved as follows: 1) That a City of Brookings Medical Cannabis Dispensary License be issued to Deja VU SD, subject to an inspection by the City of Brookings prior to Deja VU SD commencing operations; and 2) That an inspection of Deja VU SD’s facilities and review of their operational plans be completed by the City Manager or his authorized representative(s) following completion of their facility and prior to operation, with operation contingent upon satisfactory inspection results; and 3) That a City of Brookings Medical Cannabis Program Licensing Certification and South Dakota Medical Cannabis Program Local Government Compliance Certification be issued by the City Clerk; and 4) That the South Dakota Department of Health be furnished all documents pertaining to the Deja VU SD Application and City of Brookings Medical Cannabis Dispensary License. Resolution 21-111. A motion was made by Council Member Collins, seconded by Council Member Tilton Byrne, that Resolution 21-111, a Resolution amending the Consolidated Fee Schedule, be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, Collins, and Avery. Resolution 21-111 - Resolution Amending the Consolidated Fee Schedule Whereas, the adopted Municipal Code and City Policies make references to fees charged; and Whereas, it is prudent that the fees be reviewed for cost effectiveness. Now, Therefore, Be It Resolved, that the City of Brookings hereby adopts the following Amendment to the Consolidated Fee Schedule: Resolution No. City Code Fee Previous Fee Percent Change Contract Police Officer Security Per Reserve Officer, Per Hour 21-062 $60.00 $50.00 20% Resolution 21-115. A motion was made by Council Member Wendell, seconded by Council Member Tilton Byrne, that Resolution 21-115, a Resolution Transferring City Manager Contingency Funds to 2021’s Budget, be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, Collins, and Avery. Resolution 21-115 - A Resolution Transferring City Manager Contingency Funds to City Departments Whereas, the City of Brookings hereby transfers City Manager’s contingency funds to fund unplanned operational obligations of the municipality. This resolution is for the purpose of completing a transfer of contingency funds to the following accounts: 421 Police Department 101-421-5-422-03 Consulting/Engineering $ 50,000.00 Total Transfers $ 50,000.00 The Financing Source for this transfer is from the following account: 101-405-5-856-99 Contingency Fund $ 50,000.00 Total Source of Funding $ 50,000.00 Whereas, this resolution is deemed necessary for the immediate preservation of the public peace, health, safety and support of the City, and shall become effective upon publication. Resolution 21-113. A motion was made by Council Member Tilton Byrne, seconded by Council Member Wendell, that Resolution 21-113, a Resolution Establishing Procedures for City of Brookings Construction Manager-At-Risk Projects, be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, Collins, and Avery. Resolution 21-113 - A Resolution Establishing Procedures for City of Brookings Construction Manager-At-Risk Projects Be It Resolved by the City Council of the City of Brookings, South Dakota as follows: Section 1. Purpose In order to comply with State law requirements for construction manager-at-risk (“CMAR”) projects, the City of Brookings adopts these procedures and will select CMAR firms to provide construction management services for authorized projects in accordance with the following procedures: Section 2. Findings and Determinations The City of Brookings makes the following determinations: a. It is in the City’s interest to utilize the services of a construction manager for the renovation or replacement of the Brookings Police Department Building; and b. That the construction management services would not unreasonably duplicate and would be in addition to the normal scope of separate architect or engineer contracts concerning the renovation or replacement of the Brookings Police Department Building; and c. The construction manager shall be a CMAR and be solicited through a qualification-based request for proposals method of procurement as provided in SDCL § 5-18B-44. The CMAR, for any actual construction contracted by the CMAR to be performed on the project shall provide payment and performance bonds and competitive bids for the work as required by any statute governing bidding and bonding for public improvement projects. Section 3. Definitions For purposes of these procedures, the following definitions apply: a. “City” means the City of Brookings. b. “CMAR” means construction manager-at-risk c. “Department” is defined as any department of the City of Brookings, including the Swiftel Center. d. “Firm” is defined as any individual, firm, partnership, corporation, association, joint venture, or other legal entity permitted by law to practice construction contracting in the State of South Dakota. e. “Project” is defined as that project described in the public announcement. Section 4. Minimum Qualification Requirements for Firms Providing CMAR Services Firms providing CMAR services shall be registered with the Department of Revenue prior to contract award. Where required by State law, the CMAR shall be able to provide construction management services by licensed or registered individuals. Section 5. Public Announcement Procedures Except in emergency situations, the Department will publish an announcement in accordance with SDCL §5-18B-1. The announcement will set forth a general description of the project requiring construction management services and will define the time frame and procedures for interested qualified firms to apply for consideration. The pub lic announcement will further state whether construction management firms will be pre-qualified for the project. Section 6. Request for Proposals (1) The City will prepare a Request for Proposal (“RFP”). The RFP developer may be either a private firm retained by the City or may be a staff member of the City. The RFP developer is prohibited from being part of the bidding entity. The RFP may include the following:  Background and Description of the project  Preliminary Project Schedule  Outline of CMAR Best Value selection process and timeline  Detailed description of the scope of services for each phase of the project  RFP evaluation criteria and requirements of RFP response (2) The purpose of the RFP is to furnish sufficient information for firms to prepare qualitative proposals and price proposals. The firm submitting the successful proposal shall develop a detailed proposal based on the criteria in the RFP. All Requests for Proposals shall also comply with the City’s Purchasing Policy Guide. Section 7. Evaluation Criteria for Shortlisting Construction Management Firms The City’s selection committee will review proposals from all candidate firms and shortlist no more than three firms who will be invited to be interviewed. Shortlisting will be based the following qualifications: a. Company background b. Applicable and relevant experience and education of proposed key team members c. Team / personnel experience working together and on similar projects d. Project approach including working in South Dakota on CMAR projects for public sector clients e. Demonstrated knowledge of the local and regional subcontractor market To be considered for the shortlist selection, the firm must demonstrate the ability to provide a performance and payment bond as described in the RFP. Section 8: Criteria for Selecting Construction Manager Firm The City’s selection committee will rely on the information contained and presented in the proposals, interviews, and reference checks in making the decision to select the best value and the most qualified firm to provide services for this project. Selection criteria will be based on: a. Experience, qualifications, and availability of proposed team leaders b. Broader team structure c. History of project team working together d. Technical work process e. Proposal, interview and response f. Price Proposal Section 9. Construction Manager-at-Risk Proposal Requirements (1) The RFP shall outline proposal submittal requirements including but limited to the following: a. Letter signed by an individual authorized to commit the proposed team to the scope of work proposed consortiums, joint ventures, or teams submitting proposals must establish contractual responsibility solely with one company or one legal entity. Each submittal should indicate the entity responsible for execution on behalf of the proposal team. b. Identification of proposed team members with proposed roles and responsibilities. c. Project approach and management capabilities. d. Relevant project experience e. Statement from a surety company authorized to do business in South Dakota indicating the firm(s) bonding capacity and ability to obtain a performance and payment bond in the amount specified in the RFP. f. Certification statement that proposal response will remain in effect for 30 days, and all representations stated in the Response to RFP are true and accurate, and acknowledge that all costs associated with preparation of the Response to RFP will be the responsibility of the proposing CMAR. (2) Each firm submitting a proposal shall submit a Qualitative Proposal and a Price Proposal. Proposals shall be segmented into two packages; Qualitative Proposal. A qualitative proposal shall include management plan, schedule, and other data requested in response to the RFP. Qualitative proposals shall be submitted in a sealed package, which identifies the project and the construction management firm on the outside of the package. Each firm shall place the words “QUALITATIVE PROPOSAL” on the outside of the package. Price Proposal. Price proposals shall include CMAR fee per phase of the project, a detailed description of management staff general conditions, a detailed description of certain reimbursable general conditions and other cost related questions that pertain the performance of the requested scope of services. Each firm shall submit its price proposal in a separate sealed package. Each firm shall place the words “PRICE PROPOSAL” on the outside of the package. Section 10. Negotiating Owner / Construction Manager at Risk Agreement and Preservation of Confidential Information The procedures for negotiations between the City of Brookings and those submitting proposals prior to the acceptance of a proposal are as follows: Upon completion of the interviews, the firms will be ranked. The City will start negotiations of the contract with the highest-ranking firm. If an agreement for services cannot be reached with the highest ranked firm, the City will move to the second ranked firm. The same process will be repeated with the other ranked firms if no such agreement can be reached. The City reserves the right to not select a firm as part of this process if an agreement cannot be reached with the interviewed firms. The procedures shall also contain safeguards to preserve confidential information and proprietary information supplied by those submitting proposals consistent with §5-18B- 34, which are as follows: Until a proposal is accepted, information in the proposal remain the property of the person making the proposal. The City will make reasonable efforts to maintain the secrecy and confidentiality of any proposal and all information contained in any proposal and the City will not disclose any proposal or the information contained in a proposal to the CMAR’s competitors. The City will not disclose, except as may be permitted pursuant to Chapter 1-27, confidential and proprietary information contained in any proposal to the public until such time as the City takes final action to accept a proposal. Section 11. Emergency Procedures The procedures for awarding construction management firm contracts in the event of public emergencies as defined in § 5-18A-9 are as follows: The City may make an emergency procurement without advertising the procurement if there exists a threat to public health, welfare, or safety or for other urgent and compelling reasons. An emergency procurement will be made with such competition as is practicable under the circumstances. A written determination of the basis for the emergency and for the selection of the particular contractor will be included in the contract file. Executive Session. A motion was made by Council Member Tilton Byrne, seconded by Council Member Collins, to enter into Executive Session at 6:54 p.m., pursuant to SDCL 1-25-2.1, for purposes of 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. Present: City Council, City Manager, and Susan Rotert, Human Resources Director. The motion carried by a unanimous vote. A motion was made by Council Member Tilton Byrne, seconded by Council Member Collins, to exit Executive Session at 7:18 p.m. The motion carried by a unanimous vote. Resolution 21-114. A motion was made by Council Member Collins, seconded by Council Member Wendell, that Resolution 21-114, a Resolution Amending the City Manager’s Contract for 2022, be approved. The motion carried by the following vote: Yes: 7 - Niemeyer, Brink, Bacon, Wendell, Tilton Byrne, Collins, and Avery. Resolution 21-114 - Resolution Amending the City Manager’s Contract for 2022 Whereas, the purpose of this Resolution is to adjust the City Manager’s Contract for 2022; and Whereas, the position of City Manager is a position appointed by the City Council; and Whereas, the City Council has determined it is appropriate to increase the City Manager’s salary 2%, resulting in a total annual salary of $161,367.55; and Whereas, the City Council has determined it is appropriate to also amend Section 12 (Pension) of the City Manager’s Contract as follows: In addition, the City shall also contribute 2% of the City Manager’s compensation to a deferred compensation plan selected by the City Manager; and Whereas, the City Council has determined it is also appropriate to amend Section 19 of the City Manager’s Contract by adding the following: E. Limitation on Without Just Cause Termination Following Seating of New Council Member(s). Notwithstanding any other provision of this Agreement, the Employer may not take any action to terminate this Agreement without cause during the period of sixty (60) days following the seating of a new city council member elected in a city election or appointed by the City Council to fill a vacancy. The purpose of this provision is to allow any newly elected or appointed member(s) of the City Council or a reorganized City Council to have sufficient time to observe the actions and ability of the Employee in the performance of the powers and duties of their office. After the expiratio n of the aforementioned sixty (60) day period, there shall be no limitation on the Employer’s ability to terminate without cause. Nothing herein shall limit the Employer’s ability to terminate this Agreement for cause. Now, Therefore, It Is Hereby Resolved by the City Council of the City of Brookings, South Dakota, as follows: 1) That the City Manager’s salary shall increase by 2% for 2022, resulting in a total annual salary of $161,367.55; and 2) That Section 12 of the City Manager’s Contract shall be amended to include the following provisions: In addition, the City shall also contribute 2% of the City Manager’s compensation to a deferred compensation plan selected by the City Manager; and 3) That the City Manager’s Contract shall also be amended to include Section 19 (E), as set forth above. Adjourn. A motion was made by Council Member Tilton Byrne, seconded by Council Member Brink, that the meeting be adjourned at 7:24 p.m. The motion carried by a unanimous vote. CITY OF BROOKINGS __________________________ ATTEST: Oepke G. Niemeyer, 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 #:RES 22-001,Version:1 Action on Resolution 22-001, a Resolution designating the depositories for municipal funds. Summary: Pursuant to SDCL 9-22-6, “Designation of depositories of municipal funds,” the governing body shall designate the depository or depositories in which the funds belonging to the municipality shall be deposited. Such depository or depositories shall be a bank or banks within the State of South Dakota, unless otherwise specifically provided by law. Recommendation: Staff recommends approval. Attachments: Resolution City of Brookings Printed on 1/6/2022Page 1 of 1 powered by Legistar™ Resolution 22-001 Resolution Designating Official Depositories Pursuant to SDCL 9-22-6, the City Council of the City of Brookings, SD, hereby designates the following as depositories for Municipal Funds of the City of Brookings for the ensuing year: First Bank & Trust Wells Fargo Bank Bank Star Financial Central Bank Dakotah Bank Dakotaland Federal Credit Union Great Western SD Public Fund Investment Trust Passed and approved this 11th day of January, 2022. CITY OF BROOKINGS Oepke G. Niemeyer, 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 22-004,Version:1 Action on Resolution 22-004, a Resolution designating the Official Newspaper. Summary: Pursuant to SDCL 9-12-6 “Designation of official newspapers,” each municipality shall designate at a meeting of its governing body an official newspaper or newspapers for a period of time, not to be less than twelve months, specified by the governing body in a resolution. The newspaper shall be published in the municipality. Recommendation: Staff recommends approval. Attachments: Resolution City of Brookings Printed on 1/6/2022Page 1 of 1 powered by Legistar™ Resolution 22-004 Resolution designating the Official Newspaper Pursuant to SDCL 9-12-6, the City Council of the City of Brookings, SD, hereby designates the Brookings Register as the official newspaper for the City of Brookings for the ensuing year. Passed and approved this 11th day of January, 2022. CITY OF BROOKINGS Oepke G. Niemeyer, Mayor ATTEST: Bonnie Foster, City Clerk City of Brookings Staff Report Brookings City & County Government Center, 520 Third Street Brookings, SD 57006 (605) 692-6281 phone (605) 692-6907 fax File #:ID 22-0026,Version:1 Action to cancel the January 18, 2022 City Council Study Session. Summary: This action will cancel the January 18, 2022 City Council Study Session. This provides public notice of the change to the City Council meeting calendar. Recommendation: Staff recommends approval. City of Brookings Printed on 1/6/2022Page 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 #:ORD 22-001,Version:1 Introduction and First Reading on Ordinance 22-001, an Ordinance Authorizing Budget Amendment No.1 to the 2022 Budget. Second Reading: January 25, 2022. Summary: The City of Brookings prioritizes the funding of economic development agencies to progress opportunities within the community. The City Council is presented with an opportunity to develop an Economic Development Master Plan for Brookings. Funds exist for this endeavor through reserves dedicated to economic development projects. Recommendation: Staff recommends approval. Attachments: Memo Ordinance City of Brookings Printed on 1/6/2022Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Paul Briseno, City Manager, and Erick Rangel, Chief Financial Officer Council Meeting: January 11, 2022 / January 25, 2022 Subject: Budget Amendment No.1 to the 2022 Budget Presenter: Paul Briseno, City Manager Summary: The City of Brookings prioritizes the funding of economic development agencies to progress opportunities within the community. The City Council is presented with an opportunity to develop an Economic Development Master Plan for Brookings. Funds exist for this endeavor through reserves dedicated to economic development projects. Background: The City of Brookings works with many economic development agencies to progress growth within many community sectors. These agencies include the Convention and Visitors Bureau, Economic Development Corporation, Chamber of Commerce, and the Research Park. Approximately $908,932 of funding for these agencies is derived from the general fund, 3B, pillow tax, and pass-through from Brookings Municipal Utilities. The City of Brookings does not have a specific economic development masterplan document for holistic economic efforts. City staff works collectively with each entity as partners to progress efforts. Item Details: Over the past few months, staff has engaged Midwest peer communities to gain insight into community economic development masterplans. Many of the entities noted above have been engaged in the discussion to date. Staff recommends utilizing funds from the Economic Development reserves for a Community Economic Development Master Plan. The proposed document would provide a comprehensive review of the current economic development environment for Brookings and benchmark best practice strategies of peer and aspirational communities. The analysis will review data, local / regional strengths, weaknesses, opportunities, and threats. The result will be a road map for further action to achieve prioritized community economic development outcomes in both the short (1 -5 years) and long (10-20 years) term. Staff estimates the development of such a plan will cost $100,000. Legal Consideration: None. Strategic Plan Consideration: This action supports fiscal responsibility by increasing budget authority for anticipated expenditures and adding transparency regarding the use of restricted reserves. Financial Consideration: This action will use $100,000 of the City’s Economic Development Reserve s, increasing the 2022’s expenditure budget by the same amount. The reserves contain adequate funds. This fund was created to pay for economic development project opportunities. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Amend 3. Deny 4. Move the item to a Study Session 5. Discuss / take no action / table Staff recommends approval of the ordinance as presented. Supporting Documentation: Ordinance Ordinance 22-001 An Ordinance Authorizing Budget Amendment No. 1 to the 2022 Budget Be It Ordained by the City of Brookings, South Dakota: Whereas State Law (SDCL 9-21-7) and the City Charter (4.06 (a)) permit supplemental appropriations provided there are sufficient funds and revenues available to pay the appropriation when it becomes due. Now, Therefore, Be It Resolved by the City Council that the City Manager be authorized to make the following budget adjustments to the 2022 budget: Economic Development Subsidy Increase/ (Decrease) Justification 101-000-7-899-05 Transfer Out $ 100,000.00 Transfer from Economic Development Reserves Total Economic Development Reserves to transfer $ 100,000.00 101-495-5-856-73 Brookings Economic Dev Corp $ 100,000.00 Increase expenditure budget authority to fund Economic Development Master Plan Total Expenditures $ 100,000.00 All ordinances or parts of Ordinances in conflict herewith are hereby repealed. First Reading: January 11, 2022 Second Reading: January 25, 2022 Published: CITY OF BROOKINGS Oepke G. Niemeyer, 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 #:ORD 21-042,Version:2 Second Reading and Action on Ordinance 21-042, an Ordinance Authorizing Budget Amendment No. 6 to the 2021 Budget. Summary: The Brookings Public Library has recently received several grants and donations, for which expenditures have been identified. This Ordinance supplements the budgets for grant and donation proceeds and the related expenditure accounts to allow budget authority for these transactions. Recommendation: Staff recommends approval. Attachments: Memo Ordinance City of Brookings Printed on 1/6/2022Page 1 of 1 powered by Legistar™ Updated: March 2021 City Council Agenda Memo From: Erick Rangel, Chief Financial Officer; Ashia Gustafson, Director of Library Services Council Meeting: December 14, 2021 / January 11, 2022 Subject: Ordinance 21-042, An Ordinance Authorizing Budget Amendment No. 6 to the 2021 Budget Presenter: Ashley Rentsch, Deputy Finance Manager Summary: The Brookings Public Library has recently received several grants and donations, for which expenditures have been identified. This Ordinance supplements the budgets for grant and donation proceeds and the related expenditure accounts to allow budget authority for these transactions. Background: The Brookings Public Library continually seeks grant and donation funding from various organizations to support its mission of engaging with the constantly changing world and technologies and acting as a dynamic civic resource to enhance the quality of life for everyone in the community. At the end of 2021, the Library received incremental grants and donations totaling $56,300. Item Details: The details of these incremental grants and donations are as follows: Organization Amount Larson Family Foundation $49,000 South Dakota Humanities Council $1,800 American Library Association $3,000 Dollar General $2,500 Approximately $4,300 is expected to be spent by the end of 2021, and the rest will be carried over in 2022. The $49,000 Larson Family Foundation grant will be used to construct a Maker Space and add audio equipment to the Children’s Activity Room. Legal Consideration: None. Strategic Plan Consideration: This action supports fiscal responsibility by increasing budget authority for anticipated expenditures and adding transparency regarding the receipt of grants and donations. Updated: March 2021 Financial Consideration: This action will increase the revenue and expenditure budgets for the Library department in the General Fund and the Library Donations Special Assessment Fund to recognize receipt of grant funds and the associated expenditures. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Amend 3. Deny 4. Move the item to a Study Session 5. Discuss / take no action / table Staff recommends approval of the ordinance as presented. Supporting Documentation: Ordinance Ordinance 21-042 An Ordinance Authorizing Budget Amendment No. 6 to the 2021 Budget Be It Ordained by the City of Brookings, South Dakota: Whereas State Law (SDCL 9-21-7) and the City Charter (4.06 (a)) permit supplemental appropriations provided there are sufficient funds and revenues available to pay the appropriation when it becomes due. Now, Therefore, Be It Resolved by the City Council that the City Manager be authorized to make the following budget adjustments to the 2021 budget: All ordinances or parts of Ordinances in conflict herewith are hereby repealed. First Reading: December 14, 2021 Second Reading: January 11, 2022 Published: CITY OF BROOKINGS, SD Oepke G. Niemeyer, Mayor ATTEST: Bonnie Foster, City Clerk Increase/ (Decrease) Justification 101-455-4-334-09 Grant 5,500.00$ Recognize receipt of Dollar General & ALA Grants $ 5,500.00 101-455-5-367-01 Grant Expenditures 5,500.00$ Increase expenditure bugdet authority for grant proceeds received $ 5,500.00 227-000-4-446-00 Donations 50,800.00$ Recognize receipt of SDHC and Larson Family Donations $ 50,800.00 227-000-5-899-99 Other Expenses 50,800.00$ Increase expenditure budget authority for grant proceeds received $ 50,800.00 Total Grant Expenditures Total Grant Revenue Library Grants Total Grant Revenue Total Grant Expenditures 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 22-005,Version:1 Public Hearing and Action on Resolution 22-005, a Resolution of Intent to Lease Real Property at Brookings Airport to Medary Aviation, LLC. Summary: The City is entering a new hangar land lease with Medary Aviation LLC for 13,200 square feet located on Site 501 at the Brookings Regional Airport in Section 26 and 27, T110N, R50W in the City of Brookings. The lease will be for a 5-year term and the 2022 lease rate will be $0.13/square foot for a lease amount of $1,716.00. The lease rate will increase by 2% annually and subject to review every five years. Recommendation: Staff recommends approval. Attachments: Memo Resolution Legal Notice Map City of Brookings Printed on 1/6/2022Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Matthew Sommerfeld, Airport Manager Council Meeting: January 11, 2022 Subject: Intent to Lease Real Property at Brookings Airport to Medary Aviation, LLC Presenter: Charlie Richter, City Engineer Summary: The City is entering into a land lease with Medary Aviation LLC for 13,200 square feet located on Site 501 at the Brookings Regional Airport in Section 26 and 27, T110N, R50W in the City of Brookings for a five-year term. The 2022 lease rate will be $0.13/square foot for a lease amount of $1,716.00. The lease rate will be increased by 2% annually and subject to review every five years. Background: South Dakota State University has been leasing hangar space since 1971. The new hangar lease area is 13,200 square feet located on Site 501 at the Brookings Regional Airport. The City updated the lease format for all hangar lease renewals. The 2022 lease rate will be $0.13/square foot which will be increased by 2% annually and subject to review every five years to determine a new percentage increase. Item Details: A public hearing is required as per SDCL 9-12-5.2 to lease to a private person: 9-12-5.2. Powers - Lease to private person - Resolution - Notice - Hearing - Authorization. If the governing body decides to lease any municipally owned property to any private person for a term exceeding one hundred twenty days and for an amount exceeding five hundred dollars annual value it shall adopt a resolution of intent to enter into such lease and fix a time and place for public hearing on the adoption of the resolution. Notice of the hearing shall be published in the official newspaper once, at least ten days prior to the hearing. Following the hearing the governing body may proceed to authorize the lease upon the terms and conditions it determines. The Notice of Public Hearing was published as required. Legal Consideration: The City Attorney approved the updated lease agreement. Strategic Plan Consideration: Sustainability – The land lease furthers the strategic initiative of maintaining facilities with a sustainable plan whereby the City receives revenue from the lease to support the Brookings Regional Airport. Financial Consideration: The City will receive $1,716.00 in revenue for 2022 which will be increased at 2% per year. The annual increase will be reviewed every five years. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Amend 3. Deny 4. Move the item to a work session 5. Discuss / take no action / Table Staff recommends approval of the resolution as presented. Supporting Documentation: Memo Resolution Legal Notice Map Resolution 22-005 A Resolution of Intent to Lease Real Property at Brookings Airport to Medary Aviation LLC Be It Resolved by the governing body of the City of Brookings, South Dakota, that the City of Brookings intends to enter into a Lease with Medary Aviation LLC for a period of five (5) years, commencing on Januray 1, 2022 and ending December 31, 2026 and pertaining to the following described property: 13,200 square feet on Site 501 at the Brookings Brookings Regional Airport, in Section 26 and 27, T110N, R50W in the City of Brookings, Brookings County, South Dakota. The lease will be payable annually by the last day of January of each year and subject to increases 2% annually and subject to review every 5 years. The 2022 lease amount will be $1,716.00 Be It Further Noted, that a Public Hearing on this Resolution was held on Janurary 11, 2022 at 6:00 o’clock P.M. in the Chambers at the Brookings City and County Government Center and that all persons were given an opportunity to be heard on the intent to lease real property. Passed and approved this 11th day of Janurary, 2022. CITY OF BROOKINGS ____________________________ Oepke G. Niemeyer, Mayor ATTEST: __________________________ Bonnie Foster, City Clerk Notice of Public Hearing on Adoption of Resolution of Intent To Lease Real Property To Medary Aviation LLC Notice is Hereby given that on Tuesday, January 11, 2022, at 6:00 o’clock P.M., the Brookings City Council will hold a public hearing in the Chambers, Brookings County & Government Center, 520 3rd Street, Brookings, South Dakota, on the Resolution of Intent of the City of Brookings to lease to Medary Aviation LLC the following property: 13,200 square feet on Site 501 at the Brookings Regional Airpor t, in Section 26 and 27, T110N, R50W in the City of Brookings, Brookings County, South Dakota. At the time and place affixed for said public hearing, all who appear will be given an opportunity to express their views for or against the proposal to lease t he above described property to Medary Aviation LLC. Dated this 31st day of December, 2021. CITY OF BROOKINGS Bonnie Foster, City Clerk If you require assistance, alternative formats and/or accessible locations consistent with the American s 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 $___________. Hangar Taxilane Reconstruction Project 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 22-007,Version:1 Action on Resolution 22-007, a Resolution Transferring Capital Improvement Project (CIP) Sinking Fund Funds to the Brookings Public Library’s Capital Projects 2022 Budget. Summary: This resolution would support Brookings Public Library in its efforts to provide effective and efficient services to the community in a safe environment by adding security cameras and carded key locks. To complete this effort, staff is requesting to use $79,590.17 from the “Sinking Fund” account for investment in security cameras and carded key locks systems. Recommendation: Staff recommends approval. Attachments: Memo Resolution City of Brookings Printed on 1/6/2022Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Ashia Gustafson, Library Director Erick Rangel, Chief Financial Officer Council Meeting: January 11, 2022 Subject: Resolution Transferring Capital Improvement Projects (CIP) “Sinking Fund” Funds to the Brookings Public Library’s Capital Projects 2022 Budget Presenter(s): Erick Rangel, Chief Financial Officer Ashia Gustafson, Library Director Summary: This resolution would support Brookings Public Library in its efforts to provide effective and efficient services to the community in a safe environment by adding security cameras and carded key locks. To complete this effort, staff is requesting to use $79,590.17 from the “Sinking Fund” account for investment in security cameras and carded key locks systems. Background: The Brookings Police Department completed and presented a safety assessment on the Library in 2021; adding security cameras and carded keylocks were flagged as the top priority. The Library currently does not have a security camera system and relies on physical keys for entry, both of which pose security challenges and potential safety issues. Item Details: Staff recommends allocating 2022 Sinking Fund account dollars to the following budget line item to allow for the purchase and installation of the security camera and card key lock systems: Library Department CIP funds - $79,590.17 In addition, City staff recommends authorizing the City Manager to sign the contract with Safe-N-Secure as the vendor for this equipment and services. Legal Consideration: The City’s Comprehensive Financial Management Policy, under its Capital Improvement Plan section, establishes the authority for the City to maintain an assigned Vehicle, Equipment, Information Technology, and Building maintenance/replacement sinking fund for unplanned capital projects such as which is presented in this Resolution. City Attorney Steve Britzman has reviewed the purchase request and determined it does not need to go through a competitive bidding process as the project is made up of peripheral equipment which is exempt from competitive bidding. This determination was made based on SDCL 5-18A-22 (5). Strategic Plan Consideration: This action supports safe, inclusive, and connected community by having a more secure facility and adding peace of mind to Library staff and patrons. Financial Consideration: This transfer will not result in incremental 2022 budgeted expenses. It will transfer appropriations from the CIP’s Sinking Fund account into the Library’s capital projects account. After this transfer, the sinking fund account is estimated to remain with over $500,000 available spending balance for 2022. This estimate includes the carryover funds from 2021 once approved. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Amend 3. Deny 4. Move the item to a Study Session 5. Discuss / take no action / table Staff recommends approval of the resolution as presented. Supporting Documentation: Resolution Resolution 22-007 Resolution Transferring Capital Improvement Project (CIP) Sinking Fund Funds to the Brookings Public Library’s Capital Projects 2022 Budget Whereas, the City of Brooking’s Comprehensive Financial Management Policy, under its Capital Improvement Plan section, establishes the authority for the City to maintain an assigned Vehicle, Equipment, Information Technology, and Building Maintenance/Replacement Sinking Fund for unplanned capital; and Whereas, the City of Brookings hereby transfers Sinking Fund contingency funds to fund critical unplanned capital projects of the municipality. This resolution is for the purpose of completing a transfer of capital Sinking Fund funds to the following accounts: 213 Capital Improvements Fund (CIP) 213-000-5-940-09 Library Dep Capital Expense $ 79,590.17 Total Transfers $ 79,590.17 The Financing Source for this transfer is from the following account: 213-000-5-911-00 Buildings Sinking Fund $ 79,590.17 Total Source of Funding $ 79,590.17 Whereas, this resolution is deemed necessary for the immediate preservation of the public peace, health, safety, and support of the City, and shall become effective upon publication. Passed and approved this 11th day of January, 2022. City of Brookings Oepke G. Niemeyer, 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 22-008,Version:1 Action on Resolution 22-008, a Resolution Approving Brookings Scholarship Program Funding. Summary: A scholarship program for Brookings area youth is presented for Council consideration. Approximately $100,000 a year for five years would fund the scholarships from the Brookings Municipal Liquor Store reserves. If approved, staff recommends annually $80,000 would be committed to the South Dakota State University Foundation and $20,000 towards South Dakota Technological Colleges. Details of the plan are attached and provided below. Recommendation: Staff recommends approval. Attachments: Memo Resolution South Dakota State University Foundation Scholarship Proposal South Dakota Board of Regents Economic Impact Study City of Brookings Printed on 1/6/2022Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Paul M. Briseno, City Manager Council Meeting: January 11, 2022 Subject: Proposed Scholarship Program Presenter: Paul M. Briseno, City Manager Summary: A scholarship program for Brookings area youth is presented for City Council consideration. Approximately $100,000 annually for five years would fund the scholarships from the Brookings Municipal Liquor Store reserves. If approved, staff recommends annually $80,000 would be committed to the South Dakota State University Foundation and $20,000 towards South Dakota Technological Colleges. Details of the plan are attached and provided below. Background: An initial scholarship concept was presented to the City Council in October 2021. Staff recommended a pilot program funded from the Brookings Municipal Liquor Store reserves. Approximately $100,000 annually for five (5) years is available. There are no municipalities within South Dakota which provide a scholarship program for youth to pursue additional education. However, there are peer Midwest college towns with such programs. The program's focus assists Brookings area families’ attainment of additional education for youth beyond high school. According to an economic impact study by the South Dakota Board of Regents:  Additional education o Increases annual median earnings 67.3% (Bachelor’s Degree $64,896 – High School Diploma $38,792) o Decreases crime and associated costs o Increases longevity and quality of life  Economic impact of $936.3 million to the state & $561.8 million to Brookings County  Employment of 4,848 in the state & 2,909 in Brookings County  Local & Tax Impact of $31.6 million to the state & $19 million in Brookings County According to the South Dakota State Foundation, on average 212 students graduated from Brookings High School between 2019-2021.  65% of the students attended a four-year college o South Dakota State University enrolled 30% of the graduating class  18% attended technical schools  17% Did not seek a two or four-year education (worked/joined the armed forces/other) Item Details: Staff recommends the following for the proposed scholarship program :  Program available to Brookings area students  Increase educational attainment and income of Brookings area families  Scholarships target workforce needs of Brookings area businesses  Provide funding to those who may not select SDSU as their 4-year college of choice or cannot attain additional education beyond high school due to financial reasons  $100,000 annually for the next five (5) years committed from the Brookings Municipal Liquor Store reserves o $80,000 a year will be directed to the SDSU Foundation to Administer o $20,000 a year will be directed to South Dakota Technical Schools  Annual Report provided to City Council from each entity.  City Council will approve funding for the subsequent year based on the report The South Dakota State University Foundation proposal is included in the packet. If approved, staff will work with a similar funding mechanism representing the South Dakota Technical Colleges. A January decision is necessary if Council desires scholarship awards for the 2022-2023 school year. Legal Consideration: There are no legal considerations at this time. Strategic Plan Consideration: The Brookings area scholarship program impacts many areas within the Council’s strategic plan. The program is fiscally responsible as it utilizes reserves and does not commit beyond existing resources. Scholarships are available to all Brookings area students and therefore inclusive. The increase of education is an investment for economic growth, income, and community. Financial Consideration: Approximately $100,000 will be directed annually from the Brookings Municipal Liquor Store reserves for the next five years. Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Amend 3. Deny 4. Move the item to a Study Session 5. Discuss / take no action / Table Staff recommends approval of the resolution as presented. Supporting Documentation: Resolution South Dakota State University Foundation Scholarship Proposal South Dakota Board of Regents Economic Impact Study Resolution 22-008 A Resolution Approving Brookings Scholarship Program Funding Whereas, the City of Brookings values the impact of continued community success through the attainment of education; and Whereas, the City Council desires a program for Brookings area youth to attain an education beyond high school and reduce the cost to area families; and Whereas, the attainment of education beyond high school can increase annual median earnings, decrease crime and associated costs as well as increase qua lity of life; and Whereas, the program will provide $100,000 annually for the next five (5) years from the Brookings Municipal Liquor Store reserves with $80,000 directed towards South Dakota State University and $20,000 to South Dakota Technical Schools; and Whereas, those administering the scholarship programs will provide a report, and City Council will determine the continuation of the funding annually based on this report; and Whereas, the scholarships will target workforce needs of Brookings area businesses and those students whom may attend South Dakota State University and one of South Dakota Technical Schools; and Whereas, this Resolution is intended to authorize the use of Brookings Municipal Liquor Store Reserves and allow the City to enter into an agreement with the South Dakota State University Foundation and South Dakota Technical College equivalent to administer a scholarship program; and Now, Therefore, It Is Hereby Resolved by the City Council of the City of Brookings, South Dakota that staff is authorized to enter into an agreement for the administration of scholarships. Passed and approved on the 11th day of January, 2022. CITY OF BROOKINGS, SD Oepke G. Niemeyer, Mayor ATTEST: Bonnie Foster, City Clerk Brookings Bobcat Scholarship Program January 4, 2022 I. Overview of Proposed Scholarship Program a. The primary objective of this scholarship program is to increase the number of Brookings High School graduates who attend South Dakota State University. b. The scholarships will be used strategically by SDSU to attract and retain more BHS graduates (first-time students or transfer students). c. Enhancing the number BHS graduates that attend SDSU will have a positive impact in our community. d. More BHS students graduating from SDSU will also help meet some of the work force demands in the Brookings area. e. The scholarships shall be prioritized for students that intend to enroll in academic majors that serve local professions and industries that are facing the most acute work force challenges. II. Brookings High School Data (3-year average: 2019, 2020, 2021) a. Students in BHS graduating class: 212 b. BHS first-time students attending SDSU: 63 (30%) c. BHS students attending 4-year college/university annually: 138 (65%) d. Students attending technical school annually: 37 (18%) e. Students working/armed services/other annually: 35 (17%) *Information provided by SDSU and Brookings School District III. Request for Scholarship Investment a. $400,000 ($80,000/yr x 5 yrs) i. Annual installments made in January of 2022, 2023, 2024, 2025, 2026 b. Scholarships awards beginning in the 2022-23 school year IV. Questions Prepared by Board of Regents ECONOMICIMPACT REPORT 2021 outh Dakota Public Higher Education: Educating South Dakota’s Workforce of Today and Tomorrow S Table of Contents INTRODUCTION 7 ABOUT THE STUDY 8 STATE OF HIGHER EDUCATION IN SOUTH DAKOTA 11 FUELING SOUTH DAKOTA’S ECONOMY 12 CASE STUDY: USD MED SCHOOL GRADS OFFER HOPE 14 STRENGTHENING SOUTH DAKOTA’S WORKFORCE 16 A DEGREE MAKES A LIFELONG IMPACT ON SOUTH DAKOTA 18 CASE STUDY: NSU BUILDS COMMUNITY CONFIDENCE 21 CASE STUDY: EDUCATING OUR VETERANS 22 GENERATING LOCAL AND STATE TAX REVENUES 23 SouthDakota BOARD of REGENTS APPENDICES CASE STUDY: A PROFILE OF PHILIP, SOUTH DAKOTA 25 A NEIGHBORLY SPIRIT 26 GIVING BACK TO SOUTH DAKOTA 27 FRIDAY NIGHT LIGHTS 28 CASE STUDY: UNIVERSITIES ENHANCE THE QUALITY OF LIFE 30 TRANSFORMATIVE RESEARCH IN SOUTH DAKOTA 31 CASE STUDY: PREPARING A FUTURE YET TO BE IMAGINED 32 CONCLUSION 33 A: TERMS AND DEFINITIONS 34 B: STATE & COUNTY IMPACTS 35 C: DATA AND METHODS 36 D: FAQs 38 South Dakota Higher Education Makes an Impact $2.1 billion in economic impact 12,354 jobs supported and sustained $74.1 million in local and state taxes STRENGTHENING SOUTH DAKOTA’S WAY OF LIFE 34,520 total students 6,655 graduates each year 21,423 students from SD attending university 46% of students stay in SD to live and work 4.2% are first-generation college students 2.6% of students are American Indian 79% of students receive financial aid (grants, loans,and/or scholarships) OPEN ACCESS SUPPORTSLIMITLESS POTENTIAL 2,990 nurses 294 doctors 3,914 teachers 303 lawyers 378 pharmacists HOMEGROWN CREDENTIALSTO SUPPORT OURHOMETOWNS South Dakota public institutions are addressing significant workforce and education gaps in business, finance, early childhood education, teaching, accounting, sustainability studies, hospitality management, agriculture, general studies, health professions, and psychology. Expansion of master’s degree programs in registered nursing and business management. NIMBLY RESPONDING TO WORKFORCE NEEDS Consolidation of administrative functions yields cost savings Reducing majors to avoid duplication and low enrollment Collaboration between USD, DSU, and the Community College for Sioux Falls West River Health Sciences Center is a BHSU and SDSU collaboration to expand nursing and health occupations in western South Dakota ENGAGED, EFFICIENT & LEAN 4 South Dakota Higher Education Makes an Impact 5,746 students enrolled in 8,078 courses at six universities 189 high schools participating Cost savings of dual enrollment saves the students and saves the state DUAL ENROLLMENT 6 universities 1 master plan to educate professionals of the future 1 overarching governance body —South Dakota Board of Regents 1 unified vision with six voices 1 South Dakota INDEPENDENT BUT COORDINATED STRATEGY $168.5 million research impact generatedand 974 jobs supported and sustained 437 engineering graduaties 374 information technology graduates 338 agriculture and veterinary sciences graduates ENRICHING ECONOMIC ENGINES $13 million in volunteerism with nearly 550,000 hours $3.8 million in philanthropy for community charities $16.8 million in total giving by faculty, staff, and students COMMUNITY HUBS $300.9 billion in impact generated from alumni over their 40-year careers supporting 1.9 million jobs 104,937 alumni living and working in the state BLOOM WHERE YOU’RE PLANTED 5 “Our public universities are working as one to serve the education and workforce needs of South Dakota. Our regental system serves the distinctive needs of our students and demands of industry while being careful stewards of the state’s dollars.” Dr. Brian Maher Executive Director & CEO, South Dakota Board of Regents of theSouth Dakotaeconomy are in the higher education system supported and sustained 12,354 jobs generated i n t o t a l economic i m p a c t $2.1 billion 4% 2.7% of South Dakota’s workforce 4,852 direct jo b s $74.1 million generated in st a t e and local taxes $16.7 million annually in charitable givin g and volunteeri s m 6 Introduction South Dakota’s six public universities each have a unique identity. ¹ Public universities in this study refer to those under the South Dakota Board of Regents: Black Hills State University, Dakota State University, Northern State University, South Dakota School of Mines & Technology, South Dakota State University, and The University of South Dakota. And under the strong leadership of the Board of Regents, together they form a coordinated, unified system in which each performs a vital function in educating the sons and daughters of South Dakota. From their beginnings as typical schools before South Dakota was admitted to the Union to the cutting-edge research and first-class education they provide today, the universities have been the backbone of higher education in the Mount Rushmore State. Every year more than 30,000 students from small towns and big cities across the state attend Black Hills State University, Dakota State University, Northern State University, South Dakota School of Mines & Technology, South Dakota State University, and the Universi- ty of South Dakota. The South Dakota Board of Regents oversees these universities with nimble precision that allows South Dakota to stay at the forefront of a changing world. The South Dakota regental system plays a powerful role in the state’s economy. Taken together, they supported a total of 12,354 jobs across the six universities¹ and administrative offices and generated $2.1 billion in annual economic impact in the fiscal year 2019. 7 8 Analysis & Reporting About the Study In July 2021, the South Dakota Board of Regents (SDBOR) engaged Parker Philips Inc. to measure the economic contribution of public higher education overall and of each of South Dakota’s six universities, individually. This analysis aims to tell the university system’s story from a numbers and narrative perspective. To develop this report, Parker Philips gathered student, financial, and employment data about each university, visited and toured each campus, conducted multiple interviews, and researched secondary data and information to inform the writing and critical messages. Campus Visits & Key Stakeholder Interviews Methodology: Geography: Fiscal Year: Institutions Included: IMPLAN South Dakota 2019 (FY 19) Black Hills State University Dakota State University Northern State University South Dakota School of Mines & Technology South Dakota State University University of South Dakota South Dakota Board of Regents OVERVIEW Financial & Data Gathering In October 2021, the task force released a report that includes 35 separate recommendations across several areas. Recommendations include a range of cost-saving measures, including combining some administrative systems across universities and consolidating contracts, targeted consolidation of some academic programs, and expanded use of data to address issues such as enrollment trends, class size, program size, and central office staffing and functions. The Board of Regents is committed to full consideration of each recommendation in the coming months. As America’s economy continues to adjust to rapidly changing circumstances in this country and across the world, South Dakota’s public universities have never been more important. By delivering efficient, high-quality postsecondary education aligned to the current and emerging workforce and talent needs of South Dakota, the state’s six universities are the foundation of South Dakota’s well-being — both now and in the future. This report details the total economic impact of South Dakota’s public university system and provides rich evidence of its total value for the people of South Dakota. 9 The primary tool used in the performance of this study is the input-output model and data set developed by IMPLAN Group LLC. Financial data used in this study was obtained from SDBOR and included the following data points: operational expenditures, capital expenditures, and payroll and benefits for employees for FY 19. Secondary data was used to estimate spending by visitors (day and overnight) and students (undergraduate and graduate) exclusive of tuition and fees. Additional information on the methodology and assumptions used to complete this study can be found in Appendix C. The impact presented in this analysis is broken down into three categories: direct impact, indirect impact, and induced impact. The indirect and induced impacts are commonly referred to as the “multiplier effect.” The graphic below provides an overview of the types of impact detailed in this report. 10 State of Higher Educationin South Dakota Senate Bill 55 Senate Bill 55 was enacted by the South Dakota Legislature in 2020 requiring the Board of Regents to form a task force to review the operations of the six public universities and provide a set of recommendations to increase efficiency and achieve cost savings. This request aligned well with the mission of the Board of Regents to ensure that taxpayer and student dollars that flow to the six public universities are being used as effectively as possible. Task force members met collectively six times and convened 20 subcommittee meetings as they conducted this work. South Dakota’s public university system occupies a uniquely important place in state residents' economic and social well-being. Enrolling more than 33,000 students across its six institutions and awarding over 6,600 undergraduate and advanced degrees each year. South Dakota’s public universities are a primary economic engine of the state. This is underscored by the fact that the state is home to only five private, nonprofit four-year colleges and universities. South Dakota’s public university system is an integral part of the state’s future. Like nearly every state in the country, South Dakota’s public universities face undeniable challenges – declining population, decreased student enrollment, affordability of higher education, and decreased state appropriations. As the numbers of high school graduates have dropped, total enrollment in the state’s public universities has declined 8.1% over the past five years with enrollment shifts varying substantially across the six institutions. According to the State Higher Education Executive Officers (SHEEO), education appropriations per FTE in South Dakota have decreased 29.1% since 1980, and in 2019 public institutions received $5,817 per full-time equivalent student — about 71% of the U.S. average. The state has increased financial aid during that time period; in two decades the amount of state aid has increased 4,274% and has risen from .1% to 4.7% of all education appropriations. Among six neighboring states (Iowa, Minnesota, Montana, Nebraska, North Dakota, and Wyoming), the annual cost for undergraduate tuition and fees in South Dakota is second only to Minnesota. Total costs for tuition, fees, and room and board were $16,251 in South Dakota’s public universities in 2019. South Dakota’s public universities are tackling these unprecedented challenges and will develop new strategies and tactics to ensure that they serve the state’s economic and social well-being. The Board of Regents, individual universities, and statewide leadership are working together to ensure an efficient and effective public higher education system that serves the needs of South Dakota’s citizenry. 11 Fueling South Dakota’sEconomy Universities contribute to the local and statewide economies through their expenditures on operations, capital projects, wages, the spending of students off campus, and the spending of visitors to campus. The direct, day-to-day expenditures of the universities, combined with student and visitor spending, cause a ripple effect throughout the statewide economy. The total economic impact of the universities in FY 19 totaled $2.1 billion, which is 4% of the South Dakota economy. This contribution to the local and statewide economies is a point-in-time snapshot depicting how the expenditures of the university system and its faculty, staff, students, and visitors make an impact. Operations and Spending Contribution The universities’ operations and capital spending in FY 19 contributed a total of $1.8 billion. The universities’ operations generated $1.1 billion in direct economic impact, $305.2 million in indirect economic impact, and $420.9 million in induced economic impact. Student Spending Contribution South Dakota’s public university students contributed a total of $273.5 million to the state’s economy in FY 19 as a result of their spending. They generated $180.1 million in direct economic impact, $47.5 million in indirect economic impact, and $45.9 million in induced economic impact. Visitor Spending Contribution Visitor spending contributed a total of $55.0 million. Visitors to all universities generated $33.3 million in direct economic impact, $11.6 million in indirect economic impact, and $10.1 million in induced economic impact. 12 Combined Economic Impact (FY 19) $2,105,739,241 total combined economic impact $55,022,986 total visitorspending $273,543,921 total studentspending $1,777,172,334 total operationsspending 13 Source: Parker Philips using IMPLAN with data from SDBOR Total Direct Spending: Total Indirect Spending: Total Induced Spending: $1,264,520,229 $364,295,694 $476,923,318 $33,342,449 $11,555,809 $10,124,728 Direct Spending: Indirect Spending: Induced Spending: $180,099,960 $47,561,254 $45,882,707 Direct Spending: Indirect Spending: Induced Spending: $1,051,077,820 $305,178,631 $420,915,883 Direct Spending: Indirect Spending: Induced Spending: Case Study: USD MED SCHOOL GRADS OFFER HOPE TO SOUTH DAKOTA’S HEALTHCARE DESERTS “Healthcare deserts” — areas that lack basic access to adequate medical care — exist in most parts of South Dakota. According to the South Dakota Department of Health, healthcare deserts exist in 52 of the state’s 66 counties in 2021. Lack of access to mental healthcare is even more acute, existing in 60 counties. Whether due to a shortage of primary care physicians or nurses, the absence of hospitals and trauma centers within a reasonable driving distance, or a lack of internet to access telemedicine, many South Dakotans struggle to address their medical needs. As a result, the physical and economic well-being of rural communities are at risk. The University of South Dakota’s Sanford School of Medicine has been nationally recognized for its sustained efforts to fill these gaps. In 2017, the school received the highest honor conferred upon medical schools by the Association of American Medical Colleges, the Spencer Foreman Award for Outstanding Community Service. The award recognizes schools with a long-standing commitment to partnering with communities to meet medical needs. USD’s medical school stood out largely because of its reach statewide, with students spreading out across the state to learn, work, and serve in both cities and rural communities across South Dakota. These students are supported by programs like Frontier and Rural Medicine, or FARM, which pairs medical students with family physicians in rural communities such as Milbank, Parkston, Winner, and Pierre. FARM helps students learn what it’s like to work and thrive in small-town clinics and hospitals. Dr. Matthew Owens, a 1993 graduate of USD Sanford School of Medicine who is board certified in family medicine and operates a rural practice in Redfield, SD, is making an impact by serving a community of about 2,200 residents in the northeast quadrant of the state. He joins four other USD Sanford School of Medicine MD graduates practicing in a small 17-bed hospital attached to a rural health clinic. “I don’t think you’re going to recruit a lot of physicians into rural South Dakota from outside the state. USD Sanford School of Medicine drives rural healthcare in South Dakota and makes our small communities strong,” says Owens. This healthcare system is a major economic engine of the area, employing 129 healthcare professionals ranging from speech therapists to nurses and hospital administrators to cleaning crews. 14 “I’ve been in Redfield for 20 years. I am part of the community. I support my patients, and they support me and my family. You can’t put a price tag on that.” Dr. Matthew Owens Physician, Redfield, SD 15 South Dakota’s six public universities support a total of 12,354 full- and part-time jobs throughout the state — 2.7% of South Dakota’s workforce. Indirect and induced jobs are also generated via construction for campus projects, retail, restaurants, daycare, real estate, and banking — to name a few. Strengthening South Dakota’s Workforce at South Dakota Public Higher Educational Institutions 4,852 directjobs support an additional7,502 jobs 16 Combined Employment Impact (Jobs, FY 19) Jobs Generated by University Operations University operations supported and sustained a total of 9,426 jobs: 4,852 direct jobs, 1,792 indirect jobs, and 2,782 induced jobs. Jobs Generated byStudent Spending South Dakota state university students supported and sustained a total of 2,411 jobs as a result of student spending: 1,845 direct jobs, 263 indirect jobs, and 303 induced jobs. Jobs Generated byVisitor Spending Visitors to all universities supported and sustained a total of 517 jobs as a result of their spending: 376 direct jobs, 74 indirect jobs, and 67 induced jobs. Based on analysis by industry sectors, other jobs supported by the university’s economy outside of the higher education and healthcare sectors include jobs in real estate, retail, and services (e.g., restaurants, child-care centers, and entertainment). 12,354 total combined contribution (jobs) Total Direct Contribution: Total Indirect Contribution: Total Induced Contribution: 7,073 2,129 3,152 517 total visitorcontribution (jobs) 376 74 67 Direct Contribution: Indirect Contribution: Induced Contribution: 2,411 total studentcontribution (jobs) 1,845 263 303 Direct Contribution: Indirect Contribution: Induced Contribution: 9,426 total operationscontribution (jobs) 4,852 1,792 2,782 Direct Contribution: Indirect Contribution: Induced Contribution: Source: Parker Philips using IMPLAN with data from SDBOR 17 A Degree Makes a Lifelong Impact on South Dakota A higher education credential changes outcomes not just for individuals but also for their families and the entire South Dakota economy and quality of life. College degrees lead to opportunities for a lifelong career, financial stability, and better overall health and well-being. In today’s world, educational attainment plays an even more significant role in other aspects of people’s lives — it increases opportunity and improves overall quality of life and longevity. Increased Lifelong Earnings Pursuing a college degree is an investment in future earnings and a higher quality of life. Education is the clearest personal pathway to increased earnings and economic security. The relationship between higher education and higher lifetime earnings is well-established. The median salary of an individual increases by 67.3% from a high school degree to a bachelor’s degree.² The earning power of a college degree is experienced over a career and a lifetime. People with a bachelor’s degree earn an average of $1 million more over the course of their 40-year career than those with a high school diploma. According to the U.S. Bureau of Labor Statistics, the average salary earned by a person with a bachelor’s degree in the United States (U.S.) is $64,896, which is $33 per hour. This does not include the benefits packages and fringe benefits offered as a part of a regular compensation package. Future earnings will be higher or lower based on degree type. ² All salary data is sourced from the U.S. Bureau of Labor and Statistics. https://www.bls.gov/careeroutlook/2020/data-on-display/education-pays.htm Dr. Matthew Owens, a 1993 graduate of USD Sanford School of Medicine who is board certified in family medicine and operates a rural practice in Redfield, SD, is making an impact by serving a community of about 2,200 residents in the northeast quadrant of the state. He joins four other USD Sanford School of Medicine MD graduates practicing in a small 17-bed hospital attached to a rural health clinic. “I don’t think you’re going to recruit a lot of physicians into rural South Dakota from outside the state. USD Sanford School of Medicine drives rural healthcare in South Dakota and makes our small communities strong,” says Owens. This healthcare system is a major economic engine of the area, employing 129 healthcare professionals ranging from speech therapists to nurses and hospital administrators to cleaning crews. 18 0 10000 20000 30000 40000 50000 60000 70000 80000 U.S. Median Wage by Degree Type 67.3% increase in annual median earnings $64,896 $38,792 Bachelor's Degree High School Diploma Source: U.S. Bureau of Labor and Statistics Decreasing Crime and Associated Costs ³ Vera Institute of Justice. https://www.vera.org/publications/price-of-prisons-2015-state-spending-trends/price-of-prisons-2015-state-spending-trends/price-of-prisons-2015-state-spending-trends-prison-spending Unemployment and Earnings by Degree Type, 2019 19 Source: U.S. Bureau of Labor and Statistics, 2019 Analysis by Parker Philips, Inc. Decades of research has shown that educational attainment decreases a person’s likelihood of engaging in criminal activity. A community’s education level correlates to how safe it is — better-educated communities have lower levels of crime, and therefore need fewer public dollars for incarceration and the criminal justice system. In 2015, South Dakota reported spending over $73 million on its prison systems across the state — about $20,700 per inmate.³ South Dakota benefits from a strong and well-supported public university system because more college graduates mean less crime, more community engagement, and a larger share of tax dollars available to invest in improving the lives of South Dakotans. Unemployment Rate 1.1% 2.0% 2.2% 2.7% 3.3% 3.7% 5.4% Median Annual Earnings 97,916 $77,844 $64,896 $46,124 $43,316 $38,792 $30,784 Median Weekly Earnings $1,883 $1,497 $1,248 $887 $833 $746 $592 Difference in Annual Earnings Over Previous Degree Type $20,072 $12,948 $18,772 $2,808 $4,524 $8,008 % Change Over Previous Degree 1.2% 20.0% 40.7% 6.5% 11.7% 26.0% Doctorate Degree Master's or Professional Degree Bachelor's Degree Associate Degree Some College but No Degree High School Diploma Less Than a High School Diploma South Dakota's Talent Base Makes an Impact The impact of South Dakota’s college graduates during the course of their careers is significant. In 2019, more than 6,665 students graduated from South Dakota’s public higher education institutions. Many graduates plant their roots in the communities where they earned their degree, shoring up the strength of available human capital. Relationships formed between the universities and private corporations such as Sanford Health, Nieman Enterprises, and Agtegra Cooperative help grow and sustain the workforce and economic activity throughout South Dakota. South Dakota public higher education’s alumni that stay in the state to live and work after graduation make an outsized impact on the state’s economy. The earnings of the 104,937 alumni from South Dakota’s public institutions living and working in South Dakota over the course of their 40-year careers will total $287.5 billion, support and sustain a cumulative total of 1,913,003 jobs, and generate $12.9 billion in tax impacts at the local and state levels. Increasing Longevity and Quality of Life Education level plays a major role in determining an individual’s quality of life. In the past 20 years, the life expectancy gap between the most educated and the least educated Americans has widened. Americans with less education are more likely to have serious health conditions than those with a higher level of education. Year after year, data from the Bureau of Labor Statistics shows that people with a university credential are more likely to have higher wages, employer-sponsored healthcare, paid vacation and leave, retirement savings, and work in lower-risk occupations. Educational attainment also usually leads to the ability to live in a safer neighborhood, which is also a social determinant of health.4 Educational attainment is a contributing factor to being able to have a better understanding of health issues, being able to self-advocate, and choosing a healthier lifestyle. People with a higher education are less likely to experience the stress created by social and economic troubles associated with lower earnings and less education. Highly educated adults are more likely to have stronger and broader social networks,5 which yields access to financial, emotional, and psychological resources, thereby reducing stress and providing coping mechanisms to protect them from adverse health effects. Higher education, among many other social determinants of health, matters to health outcomes. 4 Healthy People 2020. https://www.healthypeople.gov/2020/topics-objectives/topic/social-determinants-health/interventions-resources/enrollment-in-higher 5 Bauldry, Shawn. Conditional Health-Related Benefits of Higher Education: An Assessment of Compensatory versus Accumulative Mechanisms. Published online 2014 Apr 12. doi: 10.1016/j.socscimed.2014.04.005 20 Over the past 10 years, the Aberdeen community has contributed about $150 million to Northern State University (NSU). That’s a stunning amount of money from any city — particularly from one with a population of less than 30,000. It is tangible evidence that Aberdeen connects its future with the success of NSU. State Senator Casey Crabtree attended NSU in the early 2000s and has first-hand knowledge of NSU’s uniquely important relationship with Aberdeen and the entire northern region of South Dakota. “Walking around the NSU campus, you can really see what private investment has done for the university. It all came from people who really cared enough to make a difference in their community,” said Senator Crabtree. The $150 million NSU has received in local investments has gone a long way toward strengthening NSU’s educational offerings and expanding opportunities for local residents to take advantage of the University’s rich array of extracurricular offerings. From 2013 to 2021, local contributions have contributed to student scholarships, supported the construction of the Jewett Science Education Center, and provided enhancements to the Regional Sports Complex and athletic fields and facilities. Local dollars also contributed to the renovation of the Johnson Fine Arts Center — a facility that annually hosts more than 65 concerts, theater performances, and community events and welcomes more than 7,600 guests per year. Case Study: COMMUNITY RESOURCES ARE A TANGIBLE VOTE OF CONFIDENCE IN NSU “The university is incredibly important not only to the Aberdeen community but to the whole region. It’s our No. 1 tool to not only attract new workforce from other states, but to develop our own workforce right here in South Dakota. That’s why folks in Aberdeen are investing in NSU. When students have a great experience at NSU, they’ll stay and continue to be part of the workforce and carry on the legacy of Northern.” Casey Crabtree South Dakota State Senator 21 Case Study: OFFERING A DISTINCTIVE COLLEGE EDUCATION TO THOSE WHO SERVE OUR COUNTRY WITH DISTINCTION The U.S. military is one of the backbones of South Dakota’s economy and culture. It is the second-largest employer in South Dakota, powered in large part by historic Ellsworth Air Force Base (EAFB). Established a few miles from Rapid City in 1941, EAFB has served a role in several wars and as home base to critically important Air Force defense operations and training. EAFB is home to about 8,000 people including military members, their families, and civilian employees, and is one of the largest employers in the region. About 3,800 veterans also call western South Dakota home. “The Air Force is technically driven, and this partnership with Black Hills State University will further develop these airmen’s knowledge. They’re learning the critical thinking skills the Air Force needs in maintaining airplanes and staffing hospitals.” Roger Wilson Chief, Education and Training Ellsworth Air Force Base Black Hills State University (BHSU) has a 60-year history of supporting western South Dakota’s military by offering courses at Ellsworth Air Force Base. This fall, the partnership has been elevated to a new level. BHSU competed for and won a contract to operate a local campus on base, delivering distinctive undergraduate and graduate programs to those who serve our country with distinction. 22 Generating Local and State Tax Revenues The universities’ employees, suppliers, and related constituencies contribute to the local and statewide tax bases. In FY 19, the universities contributed an estimated $74.1 million ($41.0 direct and $33.1 million indirect and induced) through local spending (operational, capital, students, and visitors) as well as direct and indirect support of jobs. At the state and local levels, South Dakota’s public universities contribute to the tax base through their purchasing, student, and visitor spending. Specific taxes include employee and employer contributions to state and local social-insurance funds, sales and use taxes, personal property taxes, taxes paid on motor-vehicle licenses, and payments of fines and fees Combined State and Local Tax Impacts (FY 19) $7,859,825 $2,246,345 $4,227,382 $14,333,552 Source: Parker Philips using IMPLAN with data from SDBOR DIRECT INDIRECT INDUCED TOTAL $9,008,904 $2,580,333 $4,856,512 $16,445,749 $3,633,987 $1,024,027 $1,925,657 $6,583,671 $20,510,042 $5,673,003 $10,586,108 $36,769,153 $41,012,758 $11,523,708 $21,595,659 $74,132,125 SUB COUNTY GENERAL SUB COUNTY SPECIAL DISTRICTS COUNTY STATE TOTAL 23 Case Study: DSU APPLIED RESEARCH LAB CUTTING EDGE OF CYBERSECURITY “We can keep our very, very best and brightest students here after graduation to work in South Dakota at MadLabs®. And they're doing work of national security importance.” Dr. Josh Pauli Executive Director, DSU Applied Research Lab Madison Cyber Labs — affectionately known as MadLabs® — is a perfect example of how DSU’s cybersecurity expertise keeps our country safe while also contributing to the economy of the Madison region and beyond. MadLabs® draws new talent to the state and the region, attracting elite scholars, researchers, professionals, and partnerships with government, businesses, nonprofits, and other higher education institutions. This $18-million, 40,000-square-foot building is the first research facility of its kind in the Great Plains. The MadLabs® building and its associated programs are the result of a fruitful partnership between the university, the state, the federal government, and private donors. This includes $30 million from PREMIER Bankcard President and CEO Miles Beacom and his wife Lisa, along with Denny Sanford, owner of the Sioux Falls-based First PREMIER Bank and PREMIER Bankcard. Their gift is one of the largest single gifts to higher education in South Dakota history — and it’s generating a ripple effect across the region. Additional support includes a $10 million pledge from Governor Daugaard's Future Fund. The private and public funding sources are being leveraged to draw an additional $20 million in support from federal sources and private donors. The synergy created by this coalition of advocates for higher education will support South Dakotans for generations to come. Dakota State University (DSU) is small but mighty. The 3,200-student university in Madison is a national leader in cyber education and currently holds four Centers of Academic Excellence designations from the NSA and Department of Homeland Security: Cyber Defense Education, Cyber Defense Research, Cyber Operations, and Cyber Defense Consultative Regional Resource Center. Graduates of DSU’s cybersecurity majors are in demand: The Beacom College of Computer and Cyber Sciences has a 96% placement rate for undergraduates and a 100% placement rate for graduate students. 24 Sometimes it’s easy to forget that South Dakota’s college graduates are in many ways the foundation of its small communities. Whether it’s the pharmacist who shows a senior how to use a new medication, the teacher who educates a future governor, the accountant who supports the local grocery store, the health professional who delivers babies, the undertaker who helps families navigate the passing of a family member, or the lawyer who provides advice to family farms and ranches — South Dakota’s college graduates provide the stability, services, and talent that keep its communities thriving. The town of Philip provides a case in point. With a little under 800 permanent residents, Philip is located halfway between Pierre and Rapid City in the western part of South Dakota. This small town is a powerhouse in its region, providing a local hospital, nursing home and medical facilities; a public school district including a rural school; a locally owned pharmacy; a newspaper; a bank, a funeral home, and several local businesses. Philip’s residents don’t have to drive 90 to 100 miles to meet their necessities — the town prides itself on having what they need. As a result, Philip is home to a growing number of young families eager to provide their children with the benefits of a small-town life with the advantages that Philip’s strong cadre of college-educated professionals provide. Courtney Kjerstad, owner of Philip’s Dakota Country Pharmacy, is one of those professionals. Born and raised in another South Dakota small town — Gettysburg — Kjerstad graduated from SDSU and received her Doctor of Pharmacy degree in 2011. After spending two years in Arizona working for a large pharmacy chain, Kjerstad and her husband decided to return to South Dakota to raise their family. “After having our first child, we decided it was time to move home and give our children the same wonderful opportunities we had growing up in rural South Dakota,” said Dr. Courtney Kjerstad, owner, Dakota Country. “We found opportunity in the wonderful community of Philip, and we became owners of Dakota Country Pharmacy in 2014.” “I can’t imagine doing anything else with my career because I love the satisfaction of knowing each and every one of my customers.” Dr. Courtney Kjerstad, owner, Dakota Country Pharmacy Homegrown Credentials to Support our Hometowns: A South Dakota Town Spotlight on: Philip, SD South Dakota is a small-town state. Over 150 towns and municipalities house less than 1,000 residents, and another 60 have populations of 6,000 or less. Dotted across the landscape, these small towns and rural communities form the fiber of South Dakota’s culture, providing a strong sense of community and a fierce loyalty to the South Dakota way of life. Case Study: 25 A Neighborly Spirit The spirit of South Dakota is neighbor helping neighbor, whether they are in Sioux Falls or Hill City. South Dakotans share a common spirit and set of values that are rooted in a love of the land and giving back to community. There is no shortage of ways that students, faculty, and staff give back to those in need with their time and their money. The presence of these universities in a community gives residents access to arts and cultural events, sporting events, and workout facilities that would otherwise not be available. The USD music department staffs the National Music Museum in Vermillion, giving the community access to historical and archival information or the opportunity to see a student performance in the new Janet L. Wanzek Performance Hall. NSU students support the South Dakota School for the Blind and Visually Impaired (SDSBVI) by assisting as student teachers and by volunteering to help in classes. SDSBVI students also use the NSU campus for mobility training. Black Hills State University hosts the Madeline A. Young Distinguished Speaker Series. Community members and students can attend the speaker series that brings in world-class speakers such as novelist Michael Chabon, United Nations Ambassador Jeane Kirkpatrick, actor Danny Glover, and writer and Pulitzer Prize winner Doris Kearns Goodwin. 26 Giving Back to South Dakota All of South Dakota benefits from the volunteerism and charitable giving of faculty, staff, and students. Based upon assumptions derived from the U.S. Census Bureau and the Points of Light Foundation regarding donation amounts and volunteerism rates by age, income level, and employment status, it is estimated that staff, faculty, and students give nearly $3.8 million annually in charitable donations and volunteer for almost 550,000 hours, valued at almost $13.0 million. In FY 19, the combined impact of charitable giving and volunteerism totaled nearly $16.8 million. These benefits were in addition to the $2.1 billion annual economic impact. Charitable Giving and Volunteer Impact of All Universities Staff and Faculty Charitable Giving $2,493,042 Student Charitable Giving $1,285,870 Total Charitable Giving $3,778,912 Staff and Faculty Volunteerism Hours 67,291 Student Volunteerism Hours 482,590 Total Volunteerism Hours 549,881 Value of Staff and Faculty Volunteerism Hours $1,585,386 Value of Student Volunteerism Hours $11,369,811 Total Value of Volunteerism Hours $12,955,197 Grand Total $16,734,109 27 Friday Night Lights Rooting for the home team is integral to life in college towns across South Dakota. These universities are gathering places that create and strengthen the sense of community as South Dakotans gather to cheer on the home team. Towns from Spearfish to Vermillion are behind these student-athletes. 28 NSU has led the NCAA Division II in both men’s and women’s basketball game attendance for the last 13 years. In the 2020 Olympics, Chris Nilsen, a 2020 graduate of USD, won the silver medal in the men’s pole vault, clearing 19-7 — the highest an American has jumped in Olympic history. At SDSU in 2019, a total of 87,764 people attended Jackrabbits’ football games and listened as the marching band — “The Pride of the Dakotas” — performed at halftime shows. Dakota State set an NAIA record for scholar-athletes — who must have a 3.5 GPA or higher to qualify — in 2020–2021. BHSU and South Dakota Mines meet in the Black Hills Brawl every year, making this the longest-running rivalry in Division II football. BHSU won the first game in this rivalry in 1895, setting the tone of the future meetings between the two. The winner takes the Homestake Trophy, based on a prospector’s pan. 29 The value of a university cannot be fully captured in dollars and cents. A university is an integral part of the fabric of its host community. It can serve as a hub for social gatherings, recreation, sporting events, and the arts — creating a sense of community that is vital to the well-being of its residents and acting as a magnet that local businesses use to attract new talent to the area. Universities can also partner with businesses in the region to ensure their graduates have the skills and experience needed to hit the ground running and join the local economy. In turn, a university benefits from the engagement and talents of its hometown residents as they come to campus to cheer on sports teams, participate in charity events, and host student interns in local businesses. In university towns, both the community and the campus reap benefits too rich to capture in numbers alone. Northern State University (NSU) is an integral part of the Aberdeen community — and locals don’t take it for granted. Matt Campbell is CEO of MyPlace Hotels, an Aberdeen-based hospitality company with annual revenues of nearly $90 million and over 50 hotels in 27 states. Campbell has particular insight into NSU’s impact on the city of Aberdeen. For example, the university’s athletic teams and alumni events draw visitors near and far to hotels in his network and others, as well as to local restaurants and shopping venues. But even more important are the strong partnerships between Northern and local businesses that create a pipeline for placing talented interns and graduates into careers that will keep them in Aberdeen for years to come. Campbell points to long-standing relationships with academic department heads and deans that funnel Northern’s best and brightest into the city’s growing economy. Case Study: SOUTH DAKOTA’S UNIVERSITIES ENHANCE THE QUALITY OF LIFE IN THEIR HOST COMMUNITIES 30 “When you look at the value of Northern, and why it’s important to Aberdeen, it goes beyond economic impact. We don’t have a town or an economy at all without Northern grads coming to work for us — whether that’s at a local restaurant in town or owning and managing a business. Thirty-four percent of my company’s employees have a degree from Northern. That’s pretty impressive.” Matt Campbell, President and CEO, MyPlace Hotels All Universities State and Local Tax Impacts (FY 19) 517 245 212 974 Source: SDBOR with analysis by Parker Philips, Inc. DIRECT INDIRECT INDUCED TOTAL $95,413,490 $41,018,437 $32,090,113 $168,522,040 $1,117,578 $997,729 $1,453,999 $3,569,306 EMPLOYMENT JOBS ECONOMIC OUTPUT STATE & LOCAL TAX IMPACT Transformative Research in South Dakota South Dakota relies upon higher education to provide training and skills for the next wave of discovery in the state. Through cutting-edge healthcare, cybersecurity, and environmental research, as well as driving innovation fueled by the demands of South Dakota’s agricultural industry, the public higher education sector is reimagining the state’s future while enriching its traditional industries. In FY 19, the universities expended $106 million on research-related activities, with $95.4 million being expended in the state. The impact of research totaled $168.5 million, supported 974 jobs, and generated $3.6 million in state and local taxes. With over $86 million brought into South Dakota from outside of the state, research represents a net new influx of dollars to the economy. Research commercialization from the South Dakota School of Mines & Technology, South Dakota State University, and the University of South Dakota for FY17 through FY21 is shown in the table below. $86.2 MILLION IN FEDERAL AWARDS INCLUDES $17.1 MILLION FROM THE NIH AND $16.2 MILLION FROM NSF. $6.8 MILLION IN OTHER AWARDS $17.4 MILLION IN STATE AWARDS $3.2 MILLION IN PRIVATE AWARDS Research Commercialization Activity FY 17 FY 18 FY 19 FY 20 FY 21 PATENTS ISSUED LICENSE AGREEMENTS SIGNED LICENSE AGREEMENTS SIGNED WITH STARTUPS INVENTION DISCLOSURES COMING FROM RESEARCH PATENTS FILED 25 26 17 17 21 11 14 7 16 9 9 12 5 6 9 6 3 1 3 5 77 44 38 39 34 Source: SDBOR 31 A case in point is the South Dakota Mines’ Entrepreneur-in-Residence (EIR) program, which provides experienced mentors to coach university business start-ups. EIR’s proven track record of success is well-known. As evidence of the success of the program, South Dakota Mines’ start-ups have won the South Dakota Governor’s Giant Vision Competition in three out of the past four years. In 2021, EIR lists nearly 30 local business leaders serving as mentors with expertise ranging from building and growing start-ups to healthcare management, digital strategy development, marketing, supply chains, and software and product development. Craig Arnold is one of those EIR mentors. Arnold’s leadership experience spans more than 30 years, including technology start-ups, biotechnology, and biofuels, as well as leadership positions in philanthropy, computer technology, and the aerospace industry. Case Study: PREPARING SOUTH DAKOTA FOR A FUTURE YET TO BE IMAGINED According to Arnold, EIR gives future entrepreneurs “the opportunity to sit with a bunch of us old-timers and tell us a story about their great idea. And we can help them figure out how to launch — how to turn that idea into a new venture. Students need to know what they are paying all this money for and how to get their return on investment. The EIR program helps make sure they get that return.” Craig Arnold, South Dakota Entrepreneur South Dakota’s future is bright. With a wealth of talent and a bedrock foundation of agriculture, the state is strengthening those economic sectors and fueling the growth of emerging economic drivers with the new discoveries, innovation, abundant talent, and entrepreneurial excellence that South Dakota’s state university system provides. South Dakota university faculty and researchers have received more than $17 million in federal NSF and NIH grants in 2019 and been granted 17 patents for their cutting-edge ideas and inventions. 32 Conclusion South Dakota’s public higher education institutions are essential to the state’s success from a workforce perspective. With the South Dakota Board of Regents at the helm, the system is adapting to the changing demographic, financial, and workforce needs of the state. Each university is an integral part of the higher education delivery system in South Dakota – they are vital to their individual communities and to the students they serve. There is little doubt that these universities understand how to best serve the needs of their students and the people of South Dakota. The impact of these institutions goes beyond economics – they are a part of the social fabric of the state. 33 Appendix A: Terms & Deﬁnitions Study Year Dollar Year Total Economic Output/ Economic Impact Direct Economic Impact Indirect Economic Impact Induced Economic Impact Multiplier Effect Government Revenue/ State and Local Tax Impact Direct Employment Indirect Employment Induced Employment FY 2019 Presented in 2019 dollars Includes organizational spending on operations, capital expenditures, labor income expenditures, and value added to the economy as a result of expenditures made by an organization. It is the combined impact of direct, indirect, and induced impacts. All direct expenditures made by an organization due to its operating expenditures. These include operating expenditures, capital expenditures, and pay and benefits expenditures. The indirect impact includes the impact of local industries buying goods and services from other local industries. The cycle of spending works its way backward through the supply chain until all money is spent outside of the local economy, either through imports or by payments to value added (multiplier effect). The response by an economy to an initial change (direct effect) that occurs through re-spending of income received by a component of value added. IMPLAN’s default multiplier recognizes that labor income (employee compensation and proprietor income components of value added) is not lost to the regional economy. This money is recirculated through household spending patterns causing further local economic activity (multiplier effect). The multiplier effect is the additional economic impact created as a result of the organization’s direct economic impact. Local companies that provide goods and services to an organization increase their purchasing by creating a multiplier (indirect/supply-chain impacts). Household spending generated by employees of the organization and the organization’s suppliers create a third wave of multiplier impact (induced/household-spending impacts). Government revenue or tax revenue that is collected by governmental units at the state and local levels in addition to those paid directly by an organization. This impact includes taxes paid directly by the organization itself, employees of the organization, and vendors who sell products to the organization and at the household level. Total number of employees, both full-time and part-time, at the organization based on total jobs, not FTEs. Additional jobs created as a result of an organization’s economic impact. Local companies or vendors that provide goods and services to an organization increase their number of employees as purchasing increases, thus creating an employment multiplier. Additional jobs created as a result of household spending by employees of an organization and the employees of vendors. This is another wave of the employment multiplier. 34 Source: Parker Philips using IMPLAN with data from SDBOR 35 Appendix B: State & County Impacts Economic Employment Local & Tax Impact State Clay County $478.9 million 3,368 jobs $18.7 million $287.3 million 2,021 jobs $11.2 million Impact of University of South Dakota Economic Employment Local & Tax Impact State Brown County $180.7 million 1,008 jobs $6.8 million $108.4 million 605 jobs $4.1 million Impact of Northern State University Impact of South Dakota State University Economic Employment Local & Tax Impact State Brookings County $936.3 million 4,848 jobs $31.6 million $561.8 million 2,909 jobs $19.0 million Economic Employment Local & Tax Impact State Lake County $137.4 million 908 jobs $5.7 million $82.4 million 545 jobs $3.4 million Impact of Dakota State University Impact of Black Hills State University Economic Employment Local & Tax Impact State Lawrence County $135.9 million 1,019 jobs $5.0 million $81.5 million 611 jobs $2.9 million Impact of South Dakota School of Mines and Technology Economic Employment Local & Tax Impact State Pennington County $131.4 million 916 jobs $4.3 million $78.9 million 550 jobs $1.3 million 36 Appendix C: Data & Methods Data used to complete the contribution analysis was provided by the South Dakota Board of Regents and the university. Data supplied included operating expenditures, capital spending, pay and benefits, and total employees. Primary and secondary data was used to complete the input-output models in IMPLAN. The study approach and economic-impact findings are a conservative estimate of impact and are based on actual financial information. The study is a snapshot of the economic impact of the university. OVERVIEW AND THE IMPLAN MODEL The most common and widely accepted methodology for measuring the economic impacts of economic sectors is input-output (I-O) analysis. At its core, an I-O analysis is a table that records the flow of resources to and from companies/organizations and individuals within a region at a given time. For a specified region such as a state of the nation, the input-output table accounts for all dollar flows among different sectors of the economy in a given period. With this information, a model can then follow how a dollar added into one sector is spent and re-spent in other sectors of the economy, generating outgoing ripples of subsequent economic activity. This chain of economic activity generated by one event is called the “economic multiplier” effect. The primary tool used in the performance of this study is the I-O model and dataset developed and maintained by IMPLAN Group LLC (formerly Minnesota IMPLAN Group Inc.). IMPLAN is a widely accepted and used software model first developed by the U.S. Forest Service in 1972. Data used in the baseline IMPLAN model and data set come largely from federal-government databases. The input-output tables themselves come from the Bureau of Economic Analysis. Much of the annual data on labor, wages, final demand, and other market data comes from the Bureau of Labor Statistics, the U.S. Census Bureau, and other government sources. Government agencies, companies, and researchers use IMPLAN to estimate the economic activities associated with spending in a particular industry or on a particular project. The IMPLAN model extends conventional I-O modeling to include the economic relationships among government, industry, and household sectors, allowing IMPLAN to model transfer payments such as taxes. Producers of goods and services must secure labor, raw materials, and other services to produce their product. The resources transferred to the owners of that labor or those raw materials and services are then spent to secure additional goods and services or inputs to the products they sell. For example, an organization in a region may develop a company that produces tractors with a value of $1 million. However, to produce that product, they may be required to spend $500,000 in wages and benefits, $200,000 to suppliers of tractor parts, $100,000 for electricity, $50,000 for transportation of goods and raw materials to and from the plant, and $50,000 in various professional services associated with operating a business (e.g., attorneys and accountants). The suppliers will, in turn, spend those resources on labor and raw materials necessary to produce tractors. Workers and the owners of the company will buy goods and services from other firms in the area (e.g., restaurants and gas stations) and pay taxes. The suppliers, employees, and owners of this second tier will, in turn, spend those resources on other goods and services whether within the study region or elsewhere. The cycle continues until all of the money leaves the region. 37 IMPLAN METHODOLOGY The model uses national production functions for over 536 industries to determine how an industry spends its operating receipts to produce its commodities. These production functions are derived from U.S. Census Bureau data. IMPLAN couples the national production functions with a variety of county-level economic data to determine the impacts at a state and congressional-district level. IMPLAN collects data from a variety of economic data sources to generate average output, employment, and productivity for each industry in a given county. IMPLAN combines this data to generate a series of economic multipliers for the study area. The multiplier measures the amount of total economic activity generated by a specific industry’s spending an additional dollar in the study area. Based on these multipliers, IMPLAN generates a series of tables to show the economic event’s direct, indirect, and induced impacts to gross receipts, or output, within each of the model’s more than 536 industries. The model calculates three types of effects: direct, indirect, and induced. The economic impact is the sum of these three effects. CONSIDERATIONS CONCERNING IMPLAN There are three important points about the use of IMPLAN (or any other input-output model): It is a fixed-price model. The model assumes that changes in consumption are not limited by capacity and do not affect prices. This assumption does not cause a problem for the analysis presented here because we are taking a snapshot of South Dakota in a specific year. As in many studies using this type of model, the direct impacts are not calculated by the model; they are a reflection of actual spending levels and patterns created by South Dakota. Changing the level of direct spending allows us to calculate the magnitude of the indirect and induced effects associated with the initial level of spending. Because the model continues to calculate additional spending until all of the money leaves the region (i.e., “leakage”), the larger and more economically diverse the region, the longer it will take for spending to leave the region and the larger the impact is likely to be. For example, employees of South Dakota may spend some amount of their income on buying a car. If there are no car manufacturers in their state or county, this spending will leave the region and the multiplier effect will stop. At the national level, some portion of that same spending by that same individual may go to a national auto producer. That spending would lead to more spending at the national level than would be captured by a more regional model. The national impact will be larger than the sum in the individual states, and the individual state impact will be larger than the sum of the impacts in its congressional districts. 38 Appendix D: FAQ’s WHAT IS AN ECONOMIC-CONTRIBUTION ANALYSIS? Technically, this study is a contribution analysis. The study quantifies the economic contribution of the university in terms of economic impact, jobs, and local and state tax revenue. The study calculates how spending by employees, visitors, and students contributes to the economy of South Dakota and beyond. It examines how expenditures create additional impact in the economy directly and through the multiplier. For the purposes of this study, an economic contribution is defined as the gross changes in South Dakota’s existing economy that can be attributed to the universities. Contribution analysis is a descriptive analysis that tracks gross economic activity: how spending by the university and its constituencies cycles dollars through the economy. The university’s economic-contribution analysis does not consider how spending at this university may crowd out spending at another college or university within the state. This type of analysis is one of the most common that is performed and is often mislabeled as an economic-impact study. Please note that while the terms used to express the contribution of South Dakota to the statewide economy are referred to as economic impact, this is a contribution analysis. Spending by students, staff, and faculty who are explicitly participating in activities associated with South Dakota’s output represents a “stemming-from effect” and could also be considered a direct effect of the higher-education industry. For example, a student who attends classes and spends $10 on lunch at a local restaurant is a stemming-from effect of the university. This contribution analysis then follows the direct economic activity and associated stemming-from effects through the economy, with the output of each sector broken down and attributed to expenditures on intermediate inputs or to value-added components such as labor, taxes, and returns to capital. Output multipliers, which are sector- and region-specific, are derived from the appropriate model and relate an industry’s economic activity (or changes in the industry’s economic activity) to gross sales in the other sectors of the regional economy. The contribution analysis does not account for the fact that if a student attending class were a local resident, then the $10 they spent on lunch potentially represents $10 they are not spending at another restaurant elsewhere in town. The direct effect in a contribution analysis includes purchases by students from in and out of state and is neither a measure of changes to the state’s economic base nor a measure of the value added to the region above what was paid to input suppliers. WHAT SHOULD YOU REMEMBER ABOUT THE STUDY WHEN YOU READ IT? • It is a point-in-time calculation of impact for FY 19. • It quantifies the amount of impact that the universities produce each year. • The economic numbers can fluctuate from year to year based on operational spending, capital spending, pay and benefits, number of employees, number of students, and state appropriation. • This is an economic-contribution analysis that casts a broader net to calculate impact than an economic-impact study. • These are conservative numbers and adhere to industry-respected protocols. 39 WHAT METHODOLOGY WAS USED TO COMPLETE THIS STUDY? IMPLAN data and software were used to conduct this economic-contribution analysis. The IMPLAN database is built using county, state, ZIP code, and federal economic statistics that are specialized by region, not estimated from national averages, to measure the contribution or impact of an organization’s economic activity. WHAT WERE THE MULTIPLIERS FOR THIS STUDY? The multipliers used in this study range from 1.8 to 2.1. The multipliers are derived through the input-output models created using the IMPLAN software based upon industries selected during the modeling process. WHAT DATA DOES THIS STUDY USE TO CALCULTE THE ECONOMIC IMPACT? Primary data used in this analysis is for FY 19 and was obtained from the South Dakota Board of Regents and the university. Data addresses the following subjects: • Operating expenditures. • Capital expenditures. • Pay and benefits by employee type. • Number and types of students (all in-state and out-of-state students included). • Athletics. • Volunteerism. • Charitable giving. • Alumni data. Secondary data was used to estimate the following: • Student spending habits based on the universities’ budgets for spending (full- and part-time undergraduate and graduate students, excluding tuition and fees). • Visitor numbers and visitor spending habits (day and overnight visitors). WHAT ARE THE COMMUNITY-BENEFIT IMPACTS BASED UPON? Charitable-giving impacts are based upon assumptions found in the U.S. Census donor data. These models do not assume a 100% participation rate for staff, faculty, and students and are not based on averages. Some colleges and universities had primary data available on volunteerism, and in those cases actual hours were used in the calculation. For the purposes of this study, it is assumed that 24.9% of staff and faculty donate an average of $2,064 annually and 14.9% of students donate an average of $250 each year. Volunteer impacts are based upon assumptions found in the U.S. Census, and the value of a volunteer hour was obtained from the Points of Light Foundation and is estimated at $23.56 per hour. WHY DID THE SDBOR COMMISSION A STUDY? The SDBOR commissioned the analysis to quantify the impact of all six public higher education institutions in its system. SDBOR and the university have a number of helpful tools to explain the value proposition for supporting higher education; this independent study is one way to help explain its worth. In trying to explain the value of South Dakota public higher education to internal and external constituents, it is important to quantify the workforce and economic gains realized throughout the state. There are many ways to view the impact and value of a university and university system — economic impact is one. WHY DOES THIS STUDY LOOK DIFFERENT FROM OTHERS WE HAVE SEEN PUBLISHED? The veracity of the data and methodology are consistent with industry-standard protocols for conducting an effective economic-impact study that is conservative. The data is an independent assessment of the university’s contribution to the overall economy — the numbers drive the message, not the other way around. The report is designed to make the data analysis accessible to all readers. 40 Get in touch now South Dakota BOARD of REGENTS 306 E Capitol Ave Suite 200 Pierre, SD 57501 605.773.3455 info@SDBOR.edu 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 22-006,Version:1 Action on Resolution 22-006, a Resolution Authorizing the Licensing of TK Cannabis LLC, dba Prairie Grass, as a Medical Cannabis Dispensary in the City of Brookings. Summary: City Staff requests City Council Action on a Medical Cannabis Application received from TK Cannabis LLC, dba Prairie Grass for a Dispensary to be located as 310 7th Street West. Recommendation: Staff recommends approval. Attachments: Memo Resolution Application Location Map Ordinance 21-028 Medical Cannabis - Summary City of Brookings Printed on 1/6/2022Page 1 of 1 powered by Legistar™ City Council Agenda Memo From: Bonnie Foster, City Clerk Council Meeting: December 14, 2021 Subject: Medical Cannabis Application from TK Cannabis LLC, dba Prairie Grass Presenter: Bonnie Foster, City Clerk Steve Britzman, City Attorney Summary: City Staff requests City Council Action on a Medical Cannabis Application received from TK Cannabis LLC, dba Prairie Grass, for a Dispensary to be located at 310 7th Street West. Background: As stated in Ordinance 21-028, an Ordinance Establishing Procedures for the Licensing of Medical Cannabis Dispensaries in the City of Brookings, Section 12, Application review process states: a. Upon receipt of a complete application, the City Manager or their representative shall review the application to determine whether the application is in compliance with the City’s ordinances. No license will be approved until the City Manager or their representative has conducted an inspection of the proposed premises to determine compliance of the proposed medical cannabis dispensary with all applicable requirements of this ordinance, and with the plans and application submittals. The City Manager or their representative shall reject any application that does not meet the requirements of this ordinance or that contains any false, misleading or incomplete information. b. Within thirty (30) days after the completion of the review of the application, the City Council shall approve or deny the license application provided the City Manager or their representative has determined that all requirements for a medical cannabis dispensary license have been satisfied. The City Clerk or their representative shall provide the reason(s) for denial of the license by first class mail to the applicant at the address provided in the application. c. If approved, the City Clerk or their representative shall issue to the applicant a cannabis license, which shall include the date of issuance, the term of the license, the name of the licensee and the physical address of the licensed premises. Item Details: City Staff and the City Attorney have reviewed the Medical Cannabis Application received from TK Cannabis LLC, dba Prairie Grass. The application is complete, with proof of possession of the property, by deed or purchase agreement confirmed. The site location, 310 7th Street West, meets zoning requirements. An inspection of the facility prior to opening and after remodeling will be necessary. Once the Establishment Certificate is issued by the State, the City will complete a full inspection of the facility due to the many items to be installed, remodeled, etc. Staff will need to verify their facility and plan is consistent with the plan per their application. Legal Consideration: City Attorney Steve Britzman has reviewed the application and attachments, verified ownership, and has determined that the Application and attachments satisfy the requirements for a Medical Cannabis License, with the License subject to City inspection prior to operation. Strategic Plan Consideration: Economic Growth – establishment of a Medical Cannabis Dispensary will result in economic growth for the community. Financial Consideration: As set in Resolution 21-075:  Medical Cannabis Application Fee of $5,000  Medical Cannabis Establishment License Fee of $5,000 Options and Recommendation: The City Council has the following options: 1. Approve as presented 2. Amend 3. Deny 4. Move the item to a study session 5. Discuss / take no action / table Staff recommends approval of the resolution as presented. Supporting Documentation: Resolution Application Location Map Ordinance 21-028 Medical Cannabis – Summary Resolution 22-006 A Resolution Authorizing the Licensing of Tk Cannabis LLC, dba “Prairie Grass,” as a Medical Cannabis Dispensary in the City of Brookings Whereas, TK Cannabis LLC, dba Prairie Grass, submitted an Application and Application Fee for a Medical Cannabis Dispensary License to the City of Brookings; and Whereas, the City of Brookings has reviewed the TK Cannabis LLC, dba “Prairie Grass” Medical Cannabis Dispensary License Application, and has determined that the Application satisfies the requirements of Ordinance 21-028, an Ordinance Establishing Procedures for the Licensing of Medical Cannabis Establishments in the City. Now, Therefore, Be It Resolved as follows: (1) That a City of Brookings Medical Cannabis Dispensary License be issued to TK Cannabis LLC, dba. Prairie Grass, subject to an inspection by the City of Brookings prior to TK Cannabis LLC, dba. Prairie Grass commencing operations; and (2) That an inspection of TK Cannabis LLC, dba. Prairie Grass’s facilities and review of their operational plans be completed by the City Manager or his authorized representative(s) following completion of their facility and prior to operation, with operation contingent upon satisfactory inspection results; and (3) That a City of Brookings Medical Cannabis Program Licensing Certification and a South Dakota Medical Cannabis Program Local Government Compliance Certification be issued by the City Clerk; and (4) That the South Dakota Department of Health be furnished all documents pertaining to the TK Cannabis LLC, dba. Prairie Grass Application and City of Brookings Medical Cannabis Dispensary License. Passed and approved on the 11th day of January, 2022. CITY OF BROOKINGS Oepke G. Niemeyer, Mayor ATTEST: Bonnie Foster, City Clerk B rook ings County, SD Developed by Par cel ID 405800010000310 Sec/T wp/Rng -- Pr oper ty Address 310 W 7TH ST BROOKINGS Alternate ID n/a Class NADC Acreag e n/a Owner Addr ess THEODOSOPOUL OS, SARANTIS T 1314 PARKWAY BLVD BROOKINGS SD 57006 Distr ict 4001 Br ief T ax Descr iption SNYDERS ADDITION, S 100' O F LO T 3, BLK 1 200 X 100 (Note: Not to be used on leg a l documents) Date created: 12/29/2021 Last Data Uploa ded: 12/29/2021 8:11:49 AM 109 ft Overvi ew Legend Br ookings City Limits City L imits T ow nship Boundar y Sections Parcels Roa ds Approved Medical Cannabis establishments in the City of Brookings Business Location Legal CC Action date Resolution Application Fee Paid 1. Déjà vu SD LLC 604 1st Avenue Lot 1 & 2, Block 1, Oyloes Addition 12/14/2021 Resolution 21-117 11/23/2021 $5,000.00 2. TK Cannabis LLC, dba Prairie Grass 310 7th Street West South 100’ of Lot 3, Block 1, Snyders Addition 12/17/2021 $5,000.00