HomeMy WebLinkAboutCCMinutes_2008_04_15 56
Brookings City Council
Apri115, 2008
The Brookings Ciry Council held a meeting on Tuesday,April 15, 2008 at 4:45 p.m., at City Hall
with the following membexs present: Mayox Scott Munsterman,Council Members Julie Whaley,
Mike Bartley,Ryan Brunner,Tim Reed, Ginger Thomson, and Tom Bezdichek. City Manager
Jeffrey Weldon, City Attorney Steve Britzman, and Deputy City Clerk Bonnie Foster were also
• present.
4:45 P.M. OFFICI.AL CANVASS OF APRIL 8,2008 MUNICIPAL ELECTION
5:04 P.M. WORK SESSION
Introduction of Thad Drietz�Assistant Cit�Engineer.
Jackie Lanning,City Engineer,introduced Thad Drietz. Thad Drietz started work on March 17,
2008, as Assistant City Engineer.
Update on the bike trail/,�ath�ro�ect.
City Engineer,Jackie Lanning,provided an update on the Bike Trail/Path Project.
Lanning read the following,providing both backgtound and an update on the project:
The Caty of Brooking.r applied for a tran.rportation enhancementgrant in 2003, when Mike Wlilliam.r wa.r
City Manager. This ne�v bike trail pry�ject�va.r intended to.cerve a.r an off-mad route to indu.rtries, the
bu.rine.r.r park, Swiftel Center, Larson Ice Center, re.rearch park SDSU,McCrory Garden.r and the
arboretum. The total length of the application�va.r 4.9 mile.r of trail. The City wa.r arvarded a grant with
Tran.rportation Enhancement Fund.c for�'499,000 and a grant u.cing High Przority Pmject Fund.r for
,�'1 D0,000, but only,�'85,000 of the fund is available. The City match for thi.r project i.r approarimately
,�141,000, 2vhich give.r a total pr��ject co.rt of approximately,�'725,000.
BannerAs,rociate.r have been retained for the de�ign of thi.rproject. Their first ta.rk was to examine the traid
location to determine the mn,rt fea�ible�nute. The preferred mute took into account�iublic safety, to�iographic
feature.c, drainage feature.c, right of rvay, and wetland preservation.
Banner.ctudied the entire route, and looked at three of the primary public.rafety concern.r: cros.cing the
railroad track.c, cro,r�ing High:vay 14, and cro.r.ring I-29. Starting on the.routh, they pro�iosed that the bike
trail 6e con.rtructed on the north side of the tracks, with a retaining wall under the overpa.r.r.rtructure. The
Highivay 14 cro.r.ring i.r proj�o.red to be at the 32"`'Avenue interrection, ivhere the DOT ivill be installing a
.rignal. The bike trail wvill need to include.rignage if the trail cro.r.ring i.r in.rtalled before the.rignal. The la,rt
cro.rsing they.rtudied rva.r over the bypa.c.c DOT.rtudied the eari.rting bridge and looked at three d�erent way.r
that the bike trail could be cantilever�d on the bridge, and they found that the cantilever create.r too layge of a
force on a critical.rection of the bridge. The only.rolution would involve a newgirder, new cols�mn.r and
uridening the abutments.
The final preferred route i.c es.rentially the.rame a.r the application, except for the north end of the project. The
entire route can not be accompli.rhed avith the current budget and rvould need to be con.rtructed in two phase.r.
Due to the high cost af the 6ypa.r.r bridge con.rtruction and the.rteep grade.c to contend with at the o�ramp.r,
Banner proposed to anstall a.rtand alone pede.rtrian bridge on the half line, which urill connect di�zctly to the
Innovative Campu.r. If funds are available at a later date, the ne�v pedestrian bridge could be con.rtructed a.r a
Pha.re 2 project. The currentpmject u•ill end at the half line, nor2h of the Larson Ice Center on 32xdAvenue.
Thi,r portion of the bike trail could al,ro be extended to the bypass a.r a reparate pmject at a later date.
Horvever, the project ivill include.rome bicycle path trail.r in McCrnry garden.r,.ruch a.r a connecting link in the
gardens betiveen 20'�'Ave to 22"`�Ave, and po.r.ribly.rome pathr in the Arboretum.
The next.rtep i.r the de,rign and engineering agreement avith Banner to comj�lete the design. We anticipate thi.r
�iroject unll be let later thi.r.rummer, and.rtart con.ctruction thi.r fall. If the project i.c.rtarted late, it may ca»y
over into 2009 for paving of the bike trail.
Council Member Bezdichek made an alternate recommendation on a route that would go east to 34`�'
Ave.,north to 6`}' Street,then west to 32"d and north on 32°d Ave.
Lanning responded the ditches on the e�usting gravel road (34`h Ave)go to the fence-line. They
would have to stay inside that fence-line. She stated the preferred option is to stay away from
vehicle traffic.
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Lanning stated that 32°d Ave. also poses some issues with obstacles as trees in the boulevaxd,
pedestals,hydrants, and many dxiveways. It would resemble a sidewalk system, not necessarily a
bike trail/path.
Fterichs interjected the existing Bike Trail/Path is currendy along the West side of the Interstate by
3M and is a very popular paxt of the route. Popular being determined by comments on the trees,
shelter, and quietness of the route, despite interstate traffic. If the bike trail/path was to be
constructed along 34``'Ave. currently,it would possibly be in the way when 34`h Ave. is someday
xeconstructed.
Weldon asked if the proposed bike trail/path would be on the right-of-way with I-29 or private
property. It would be located on private property,involving a few landowners such as Applebees,
SDDOT,Alltech,Daktronics, etc. and easements would have to be attained.
Weldon asked for claxification in the elevation levels of the bike trail compared to the intexstate.
Frerichs explained the majority of the bike trail along I-29 is at a lower elevation,but ttaveling North
on the e�sting bike trail, the elevation is about equal to the interstate, except for by the railroad
tracks,where the bike path is at a higher elevation. Over the past 2 yeaxs,Daktronics has created a
berm along the interstate fence-line on the west side of their propexty,with anticipation this would
be a future bike trail/path. Fxerichs fozesees getting an easement is easily feasible.
Lanning showed what the proposed I-29 bridge crossing would look like. It would be located on
the quarter line,west of the SD Newspaper Assoc. lot off of 32°d Ave. There is a significant grade
change from the existing east side of the interstate to the west where it would be an ideal cxossing.
There are several options: stand alone bridge at the quarter line, bridge at bypass (approved by
SDDO`I�, oY extencling the bike trail to the North and attaching to the e�cisting Highway 14 Bypass
crossing.
'Thomson asked what is the approxirnate cost for the bridge. Lanning responded it would cost
around $700,000 with construction similar to the Highway 14 By-Pass bridge,with columns, decking
and abuttnents.
Weldon stated it is significant that Lanning mentioned this under Phase II of this project. He would
like the council to consider the advisability on this issue of a truss across the Interstate exclusively
for non-motorized traffic. He questioned if this would be the best use of state grant dollars or local
match dollars as it relates to the comprehensive txail system for the community. It doesn't
necessarily have to cross the interstate at two locations concurrendy.
Frerichs stated the proposal in Phase I is a good solution to the original puxpose of the Bike Trail,
which was to pxovide a link to the Industrial Axea east of I-29. It is not just a recreational tra.il,but
also a connector loop for commuters. This project still does that, and has a possibility of allowing
one to go North on 32°`'Ave. and continue thru the Industrial Area and connect to Highway 14
Bypass.
Lanning concluded that they would first enter into a design and engineering agreement,and will then
come back to the council with an update prior to bidding.
Presentation by Mike D. Bailey, the Shamrock, regarding his lic�uor operating agreement
atiulication.
Discussion opened with Britzman summarizing where the city is cuxxendy and how the city has
come to this point. Britzman commented the city ran into difficulty in designating the Shamrock as
a convention facility. The plan was to designate the Shamrock as a convention facility for a 5-day
period maximum. Thete are currendy 3 facilities in Brookings classified as convention halls. The
first facility is the National Guard Armory,which has served and continues to be under curxent city
ordinance, an authorized facility. The Armory is not owned by the Ciry of Brookings,but it has
been utilized and dates `way back'in terms of usage. The second facility is the American Legion
Hall. The city has been able to designate only one facility at a time to use the tempotary liquor
license,but ovex time,understandings evolved a bit, and with ongoing discussion with the Dept. of
Revenue,it has been detexmined that the city is not limited to one location at a time. The third
facility is the Swiftel Center.
The Shamrock is similar to these facilities,though privately owned,but the key component being the
interpretation of the word`public'. Britzman visited with the Dept. of Revenue and the facility
needs to be a public facility in accordance with state statute. One needs to take a step beyond a
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Resolution designating a public convention hall and put it on equal public footing as the National
Guard Armory,which is considered a public facility. Not contemplating the city would in any way
operate the facility,but rather have at least a basic lease agreement in which the city would lease the
Shamrock for such time the temporary license is issued. This would be a temporary fi�c, not a long-
term plan. In studying this issue it has been determined there is a finite limit to the number of
facilities that a city can manage. The council will need to draft a legal document to establish the
Shamrock as an official public convention facility when a temporary liquor license is issued. The
drafted lease is a solution to a problem that has been encountered. The Dept. of Revenue has
approved a lease as a means of satisfying that procedure. The lease would only be a couple pages
long and poses no operational or liability risks to the city,but mexely serves as a designation of the
Shamrock as a convention hall.
Bxitzman has discussed this with Mike Bailey,Jr., and Mike Bailey, Sr. This lease is the plan if the
council agrees to proceed with this as an alternative. The Dept. of Revenue sees this as fully
acceptahle,but it should be of limited duxation and evaluated at three months ox when restauxant
licenses come available and determine which places will continue to qualify as convention facilities.
Beadichek asked for clarification of the National Guard Armory and the American Legion as public
convention halls.
Britzman stated he has relied primarily on the definition of a public convention facility,which the
Shamrock meets. T'he definition of a public convention facility is that which serves a large number
of the public for shows, conventions,weddings, etc. The technical point is not merely the
definition,but that the facility needs ta be operated publicly. Britzman stated he relied on satisfying
the definition by the Dept of Revenue. There is a distinction between the Swiftel Center,a public
facility, and the Shamrock,a private facility.
Bezdichek asked if any of the facilities would each be able to hold a license for an event on the same
date.
Britzman stated state statute extends that shows can be longer than one day, and allows up to a 5-
day time frame.
Mike Bailey,Jr. agreed with Bezdichek on consecutive uses of public facilities. He would like to
know if it is possible for the council to delay the agteement with BraVo's until the Shamtock's
attorneys have had a chance to review the potential lease agreement and review any other options
that the Shamrock may have. He stated that he too wants the best use of the current license for the
community. He wants to know now,in certainty,if the Shamrock will qualify for the use of a
temporary liquor licenses or not.
Britzman stated that he first needs to answer the question if the city can issue concurrent temporary
licenses. In a discussion with the Dept. of Revenue Director,the overall plan is okay,but the city
will need to meet all other statutory requirements,with the remaining one being whether or not the
city can issue concurrent temporary licenses.
Bartley stated his interpretation of the law allows multiple temporary licenses on the same date.
Whaley stated she has a problem going into a lease agreement with the Shamxock. She feels it is
above and beyond for the city to go into an agreement with the Shamrock for the purpose of
allowing liquor sales.
Mike Bailey,Jr.,the Shamrock,gave the following presentation:
Immediate Need—
Robert's Rules allow you to reverse a decision under these circumstances.
The Shamrock has 231arge private parties between now and July 1. These events are
predominately nedding�zception,r.
Bailey arked�vhen the unre.rtricted liquor licen.re�vould be taken back by the city;Augu.rt or September.
The Shatnrock has 6 additional private paxties in July.
Volume—Johnson Brothers Distributing and Republic Brands Distributing
The volume of liquor an event center.rell�at thefr function.r i.r three time.r the.ri�e of the event.
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The Shamrock will achieve $35,450 of hard liquor sales between now and July 1.
Restaurants,if lucky,would achieve $12,000 in that same time period.
Thom.ron a.rked if the information Bailey received from the di.ctributing companie.r, i.r that comparable to the
.rame or average.ri�e of event.r to be held at the Shamrock? Ye,r. Bailey clarified that thi.r is part of the
re.rearch they did before building the Shamrock.
The Shamrock will achieve three times the sales volume of the other applicants and thus
three times the tax revenue fox the City of Brookings.
Bailey,ctated that at other event center.r, an event would have to pay the equivalent of pry�jected alcohol.rak.r
even if they do not.rerve alcohol. Thi.r could be an amount between,�3,000-7,000. ,$35,000 i.r a large.rum,
e.rpecially in the.rtart-up pha.ce, and no tvhere near full-capacity u.rage.
Liquor License Vital to Staxt Up. The Shamrock is still ramping up Operations,and this
additional revenue is crucial for meeting expenses.
Economic Impact. There are many possible events that are contacting us that occur within
2 weeks of booking the event. We have attracted a couple of these events from Brookings
that wexe originally going to Sioux Falls.
Being able to sell hard liquor is important to keep more of these events in Brookings for
economic unpact.
Siviftel Expan,rion i.r a large impact. A lot of event.c have looked at the Shamrnck. A major factor they
con.rider i.r u�hether or not liquor can be.rerved for a.rocial hour during their event. If a facility a.r the
Shamrock doe.rn't have liquor licen.re, convention.r, etc.peoj�le look at Sioux Fall.r and otherplace,r that offer
that convenience.
Cuxrendy, the Shamrock will achieve$927,000 of additional economic impact in the
Brookings Community this year. Thi.r i,r above and beyond tvhat is.rold at the Shamrnck— �.rtaurant
meal.r,ga.r, hotedr, etc.
If the 1.8 multiplier is used on the applicable figures, the Shamtock will be achieving
$1,203,000 of additional economic unpact in the Brookings Comtnunity this year.
2009 sales goals would amount to over twice as much economic unpact fox the City of
Brookings.
Only thing needed to ensuxe this economic impact is a liquor license.
This economic impact would come at no cost to the tax payers in Brookings.
Volume of Sales: Based on information provided by Johnson Brothers Distributing and
Republic Brands Distributing the Shamrock will achieve at least three times the sales volume
of the otheY applicants.
Bailey,rtated the Shamrock i,r the be.ct interim u.re for thi.r licen.re, as per potentiad volume of.rade.r. The
Shamrnck svill bring in three time.r the tax revenue over BraVo.r'. Shammck ar�ve1l a.r Bravo's i.r open for
thepublic enjoyment. There is currently an employer in Brooking.r that book.r event.r in Sioux Fad1r, .ro they
can be at a facility that o�'err atmo.rphere, a.r wedl a.r liquor.rale.r. The Shammck ha.r atmo.rphere, and if we
can have the liguor license, u�e could offer thi.r company a Ioca1 option.
Karol Busta stated she appreciates the atmosphere and restautant addition to the city of Brookings
and feels the ciry should bend over backwards and offer the temporary liquor license to the
Shamrock.
Troy Hicks, ownex of the 311 Event Center feels that if the city enters into a lease agxeement with
the Shamrock, then other facilities, such as his, should have the same option given to them. If the
council says no, then the council has set the precedence. He doesn't have a problem with the
Shamrock or BraVo's having a liquor license, his concexn lies with how the city is going around to
give this license to the Shamrock.
6 �
Don McCarty,Attorney, stated that from an outsider's view,he can't imagine it wouldn't be ptudent
for the city to wait in issuing its last unrestricted license. Once the decision is made,it is done.
Review draft ordinance for new restaurant lic�uor licenses.
City Attorney Britzman presented a draft Ordinance for Council review regarding the establishment
of Restaurant Liquor Licenses. This ordinance is intended to take the substance of SB 126 and put
in ordinance format. In terms of procedure, the Ordinance does not contain more than a
restatement and claxification of the essential parts of SB 126. Britzman sees this as a series of steps.
Step #1, the initial step,is in order to effectuate SB 126, allowing the issuance of restaurant licenses.
The city has to adopt the Ordinance in order to do so.
Step #2,integrate this ordinance with the city's current licensing structure. There is a distinct
difference in restaurant licenses versus municipal licenses;restaurant licenses will be issued to and
owned by the licensee. The city of Brookings is a municipal local option community,which means
the city currendy holds the only license. The restaurant licenses will have to be viewed under the
terms of SB 126 and its pxovisions, and he sees including additional guidelines and prerequisites for
clarification.
Step #3,public input. One person cannot come up with every possible issue that might arise on any
ordinance or statute. Britzman has identified a couple issues which need to be addressed and
answered in the ordinance befoxe adoption. In discussion with the Secretary of the Dept. of
Revenue,Paul Kinsman,he encouraged the city to wait until a greater degree of input from the
Dept. of Revenue is had. Particularly,if the city gets along too fast in the interpretations of the
Ordinance and it is not how the Dept. of Revenue envisions the bill to work. Britzman stated that is
a teasonable caveat,as they are in the regulation business and more aware of problems than he.
Overall, Section 650 would be new section in the alcoholic beverage Ordinance. In regards to
license application requirements documentation,he stayed as close to statute as possible and sees
advertising restriction, annual reports,and renewals as crucial components. The most significant
part is the registry. State statute contemplates there be a registry between 2003 and 2008 of on-sale
licenses that have been transferred in communities. T'his is unlike Sioux Falls, as there have likely
been txansfers of licenses in Sioux Falls,as those licenses are not owned by the municipality. FoY
Brookings, the ciry would have to start and maintain a registry, as they ciry has not transferred
licenses in the last 5 years or prior to the adoption of the local option ordinance. The licenses are
owned by the city. Operating agreements have been transferred between parties,but the city
municipal license has not been transferred. Going forward, the city will have an obligation to
maintain the registry as these licenses could be sold/transferred.
Bezdichek thanked Britzman fox the clarification,as it is not as cleax as it appears to be in regards to
the decision to be made. In looking at license renewals, the city has liquor on-sale that are renewal,
convention facility on-sale that are renewal,liquor club license that are renewal,now we have SB 126
restaurant license xenewal. He asked why can't Mike Bailey go to Elks Club or the VFW and buy
their license? The issue of issuing this last remaining license is going to change things like never
before. These now have to be licensed-type and make certain of how the city is going to categorize
them. The Shamrock could get a license tomorrow.
Britzman stated this Ordinance is not mandated,but is an option available to the city to issue
restaurant licenses.
Britzman stated there is a minimum on the price of these licenses that is set by state statute. The
minimum fee is $1/resident as determined by last federal census;thus $18,506.
Bardey stated the fee is determined by the last census,but could be increased with the new census.
This is a new class of license, Operating Agreements or not. The city is able to set the minimum fee
to begin with and that must stay for 10 years. If the city does not adopt the$1/person fee,rather
set it at$50,000, the city is stuck with that fee for 10 years.
Bardey stated he and others worked hard from the city standpoint for economic development. He
is not comfortable with issuing the tempoxary license until things get done. The city would operate
in a gray area with the lease agreement,and sees it as a compxomise the council is trying to make,
unsure of how things are going to work. He feels this leaves the city open for additional requests for
those types of licenses in the future, and need to be careful to not enter into these gray areas too
often. The city needs to proceed closely with those lease agreements.
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Britzman sees the next phase as easier in looking at a couple of issues of what additions can go into
this oxdinance. The Dept. of Revenue sees a number of issues that need to be researched and a
written analysis provided to all who want to adopt one of these ordinances. He feels the city can
move forward independendy with this as an agenda item for a couple weeks and gradually move to
the next level. The final step would be gathexing other city attorney's input.
G:00 P.M. CIT'Y COUNCIL MEETING
Consent A�enda: Discussion xegarding process for unrestricted liquor license after restaurant
licenses are issued was added as Item#6A; a motion was made by Bardey, seconded by Reed, to
approve the consent agenda as amended,which included:
A. Agenda as amended.
B. Action to approve Ciry Council Minutes from the March 18 and March 25,2008
Meetings.
C. Action on Resolution No. 31-08, a resolution designating Pioneer Park for Summer
Arts Festival.
Resolution No.31-08
A Resolution Authorizing the Broolcings Summer Festival
Committee to Have Exclusive Use of Pioneer Patk
WHEREAS,the Brookings Summer Festival will be held in Pioneer Park on July 9-15,2008,and
WHEREAS,the Summer Festival Committee has requested the exclusive use and control of Pioneer
Park and its facilities for said festival,plus additional days for pxepazation and take-down,and
WHEREAS,the Summex Festival Committee has provided evidence of liability insurance coverage
including the City of Brookings as named insured,and
WHEREAS,the Summer Festivat Committee has agxeed to accept xesponsibiliry for the conduct of
the Summer Festival on said ptemises,now therefore,
BE IT HEREBY RESOLVED,that the use of Pioneer Park and its facilities as a public park shall
terminate fox the period of July 9 through July 15,2008.
BE IT FURTHER RESOLVED,that the City Council does hexeby gxant the exclusive use of Pioneer
Paxk and its facilities during the Brookings Summer Festival to the Summer Festival Committee.
FURTHER,IT IS RESOLVED,that the Summer Festival Committee shall be responsible for
maintaining said facilities and cleaning them and returning them to the City of Bxookings in good
condition following the festival.
D. Action on Resolution No. 32-08, a resolution approving the official canvass of the
Apri18,2008 municipal election ballot.
Resolution No.32-08
Canvassing the Apri18,2008 Municipai Election
WHERE�iS,on the 8th day of April 2008,there was held in the Ciry of Brookings,South Dakota,an
election for the purpose electing three city council members,and
WHEREAS,the judges and clerks of said election have returned to the Ciry Council of the City of
Brookings the of6cial results for the purpose of the official canvass,and
WHEREAS,the City Council on Apri18,2008 has canvassed the results for the purpose of
detexmining the official election outcome,and
NOW,THEREFORE,BE IT HEREBY RESOLVED By the Ciry Council of the City of Bxookings,
South Dakota that the official vote at the City Election held Apri18,2008 was as follows:
City Council Ryan Larry Joyce Over Under Total Rutal Ballots Cast Total Votea
1 Year(1) Brunner M'uc Hodges Votes Votes Ballots Cast
Cast
44 23 17 0 1 85 84
Precinct 1
Precinct 2 131 42 64 0 8 245 237
Precinct3 82 (G 51 0 G 249 44 199
Precinct 4 271 137 139 6 17 595 27 545
Precinct 5 28G 11G 193 5 22 622 595
Precinct 6 204 ]09 9G 3 24 436 409
TOTAL 1018 493 560 14 78 2232* 71 2069
City Council Ginger Mike Mike Over Under Total Rural Total
3 Year(2) Thomson Bartley McClemans Votes Votes Ballots Ballots Votes
Cast Cast Cast
6 �
40 43 51 0 3G 85 134
Precinct 1
Precinct 2 131 145 124 0 90 245 400
Precinct3 108 104 117 0 81 249 88 329
Precinct4 304 308 336 0 192 595 54 944
Precinct 5 315 352 370 0 207 622 1037
Precinct 6 220 252 249 2 149 436 721
TOTAL 1118 1204 1247 2 755 2232* 142 3565
*2,280 indicated on grand total,howevex,this includes 48 from Aurora.
E. Action on the appointment of Nancy Hartenhoff-Crooks to the Transportation Board
(Brookings Committee for People who have Disabilities Representative).
F. Action on an appointment of Jessie Kuechenmeister to the Brookings Committee for
People who have Disabilities.
G. Action on Resolution No. 33-08, a resolution authorizing the city manager to enter
into a Fixed Base Operator's Agreement with Pheasant's Fury Aviation, LLC.
Resolurion No.33-08
Resolutiott for Fixed Base Operator's Agreement
WHEREAS, the City of Brookings is desirous in having a Fixed Base Operator at the
Brookings Regional Airport to sexve the acea aviation needs;and
WHEREAS,the City of Brookings is desirous in entering into an agreement with Pheasant's
Fury Aviation,LLC of Brookings South Dakota for Fixed Based Operator services;and
THEREFORE,BE IT RESOLVED that the City of Brooking duly authorizes the City
Manager of the City of Brooking to sign all documents for the Fixed Base Operatox's Agreement
between Pheasant's Fury Aviation,LLC and the City of Brookings.
This resolution is effective immediately upon passage.
H. Action on a request from Michael and Susan Dorn to abate a portion of the 2008
Drainage Fee for the N 465'of the S 500' of the E 419.25 of the NE 1/4 of Section 30-
110-49.
I. Action on a request from Michael and Susan Dorn to abate a portion of the 2008
Drainage Fee for Lot 5,Vandexvliet Addition,known as 2209 32°d Street South.
J. Action on Resolution No. 36-08, awarding bids for 2008-02STA 15`'' Street South,
Camelot Drive,&Christine Avenue Street Assessment Project.
Resolurion No.36-08
Resolution Awarding Bids on Project 2008-02STA
15�'Street South,Camelot Drive and Chtistine Avenue Assessment Project
Whexeas,the City of Brookings opened bids for Project 2008-02STA 15�Street South,
Camelot Drive and Christine Avenue Assessment Project on Tuesday,Apri18,2008 at 1:30 pm at
Bxookings City Hall;and
Whereas,the City oFBrookings has received the following bids fox Ptoject
2008-02STA 15�h Street South,Camelot Drive and Christine Avenue Assessment Pxoject:
Winter Bmtherr Underground,Inc.,Sioux Fa!!r,SD,�493,000.00
Prunty Con.rtruction Co.,Inc.,Brnoksngt,SD j500,000.00
Kounds Construction Co.,Inc.,Bmokings,SD ,�515,454.80
Bowe.r Conrdrrrction,Inc.,Bmok.ingr,SD jS17,482.20
H d�'WContractin�SiouxFal�r,SD �'651,812.>0
Srntt Olron Diggin�Huron,SD ,�691,460.95
Now Therefore,Be It Resolved that the low bid of Winter Brothers Underground,Inc.,
Brookings,for$493,000.00 be accepted.
K. Action on a revised Preliminary Plat of a portion of Block 8, 10, and 11,Moriarty 4th
Addition.
L. Action on Preliminary Plat for Sieler Addition in the NW '/, of the SE 1/. of Section
35-110-50 (formerly Hunter's Ridge).
On the motion, all present voted yes;motion canied.
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Mayoral Proclamations:
Mayox Munsterman read the following Proclamations:
o April 13-19: Public Safety Telecommunicator's Week Qoint City/County Proclamation)
o May 14: Brookings Activity Centex Day
Mark Stratton, Communications Commandex, and Captain Jeff Miller were present to accept the
Proclamation declaring April 13-19 as National Telecommunicatox's Week.
Discussion regarding process for unrestricted liquor license after restaurant licenses are
issued.
Don McCaxty,Attorney, commended Britzman for his first dxaft of this ordinance. However,he
feels the ordinance does not include all of the substance that SB 126 requites,particulaxly in regards
to business owners cuxrendy opexating in Brookings. SB 126 was passed to allow a municipality to
increase the number of licenses they can issue to foster development and bring business into a
community. The city needs to protect business owners operating in their municipality. In oxdex to
get the full benefit of SB 126, the city has to comply with all the requirements of SB 126; full-service
Yestaurants, other licenses not available for sale, and must be sold at market value. In looking at the
draft ordinance, section 8 of SB 126 and the second half of section 9 of SB 126 are excluded. Those
provisions were specifically included in SB 126 to protect the current operators so the market isn't
flooded with a ton of competition coming in at a much cheaper price over time.
Bartley stated the intent was not to protect the competition;rathex to protect the value of the license
itself.
McCarty stated whether one uses the word`value' or`competition';it was intended to protect the
value of the license. For the council to say these opexators in Bxookings don't have their name on a
license,and that they are not being sold in conjunction with the total business and given a value;that
ignores reality. If a business in BYOOkings is sold, they have it appraised, and a line item value is
placed on the fact that that business is currently operating with a liquor license. The putchase
agreement states that that opexating agreement will transfer. Under SB 126 in section 8, the word
"own" is mentioned one time in the entire bill. In section 9, there is no reference to "own",and it
specifically defines what the current market value is. It specifically sets up a process in which to
establish a current market value for curYent opexators under the operating agreement. If there has
been a sale between 2003-2008 and it has been an arm-Iength transaction,one can deduct the real
property and personal ptoperty and to ftnd the value of the license. Operators will argue they have
paid for their license,may not own it, but they have paid a value fox their license and could offer an
exhibit stating as such. Under section 8,which is not in the ordinance,it provides a determination
the fair maYket value could be contested in circuit court.
McCarty stated that process most certainly is supposed to be built in to detetmine the fa.it market
value of the license.
McCarty agrees that the local option Brookings has is different than in othex municipalities,but
there is nothi�ng in SB 126 that states a local option municipality doesn't have to comply with all
sections stated in SB 126.
Munsterman commented when the law was written,it was distinct on whethex one owns the license
or not. It was also written in a manner to be used by communities with a local option or not.
Bxookings is fortunate to have the local option. When involved in this pxocess of understanding
and integrating SB 126 into an oYdinance,he feels the council will leaxn much that is different from
what they are used to;pricing structures, etc. Much is going to have to be thought thxough between
now and issuing the fixst license after July 1S`
McCaxty commented that every bar/establishment sale he's been involved in has included a
pYOVision within the sale that the license will be ttansferred with the business. Clearly, the person
purchasing that business expects that license to be transferred,and they too have paid fox that
license.
Troy Hicks asked how many class 1 municipalities have the same type of structure,local option,as
Bxookings. Batdey responded he is unsuYe of how many class 1 municipalities,but state-wide there
axe 110.
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Garner Hansen asked for clarification on what the council is doing with the unYestricted license. He
expressed concerns to not reopen the application process for this last license. The process was
started on February 8, 2008 and provided three applicants. He stated he wants this last unrestricted
Iicense to enable him to get on with his business plans.
Munsterman stated there are too many unknowns in order to provide an answer. The council needs
to allow the City Attorney time to refine and understand what the new license will entail.
Brunner commented the council needs to have some questions answered that were raised from the
five o'clock session. He hopes that over the course of the next few council meetings the discussion
will continue to find the right answers to the right questions.
Karl Steege,Skinner's Pub, coinmented on the process with the unrestricted license and it being the
last one currendy that has been on the shelf for quite some time, so therefore it must be really
important. He supports SB 126 and feels it is a shame a community would miss out on an
opportuniry for whatever faciliry it may be,because of the technicality the city does not have any
licenses left.
Steege is disappointed if the focus is on what the city can do,or what the city is able to do,or what
law grants the city to do,versus what is right. People have invested their whole lives into their
operating agreements,their businesses. That blue sky,market value,is what they have saved for
retirement, to pass on to their heirs. The purpose of SB 126 is to protect the e�cisting market place,
not from competition,but from devaluing those licenses. He urged the council to focus on what is
right,whatever it is, that is fair for all. He asked the council to focus on what they should do.
Brunner commented that new licenses be valued at$18,506,and asked Steege if he feels that the city
should establish a higher price.
Steege suggested the law that makes allowances for such ordinances be the building blocks and
possibly be more strict,be set at 80/20 or 60/40,or no pool tables and no smoking. They should
take into considetation what is fair, and not what they can technically do. Brookings is a different
situation,with operating agreements,and the council needs to go down a road that would be
positive for everyone.
Bezdichek wants all to understand that the city will be issued,at some point,more unrestricted
licenses as it is based on population/census. When the city is issued additional licenses, the city will
then grant that license to an applicant for$0. This license is not technically the `last'license.
Whaley commented she hopes the council doesn't put this license back on the shel£ She recendy
attended the BEDC/Chamber Meeting, held at the Shamrock,where Governor Rounds commented
"...don't discourage anybody...help people grow." She wants to awatd this license to Gonz
Productions (Garner Hansen), to see him have the ability to compete with other downtown
businesses.
Bartley stated the council has never turned down a transfer between operators in the same location.
Wisely so, the buyexs made that contingent. He stated the fact remains; those operating agreements
will still have a value. Restaurant Licenses will cost more,whether the city sticks with the minimum
oY raises it. He is in favor of going ahead with the plan in place,make it temporary,and continue to
work thru this issue of establishing the otdinance and issuing the new licenses.
McCarty stated in response to Brunner's earlier question,that SB 126 contemplates establishing
market value based on most recent sale. He feels the council should incorporate that language into
the ordinance. SB 126 ties the value of the unrestricted license to the value of the restaurant license.
The minixnum value can't be less than $18,506,but also can't be less than fair market value. He
asked why the council would not want to considet that, and have it stated in the ordinance.
Munstexman stated the bottom line is what we are going to do,continue to lease the untestricted
license,and treat that as a particular license type that needs a control measure such as a lease
agreement. As the council gets into these discussions,we xeally have to understand the law better.
Troy Hicks,owner of the Lantern, has owned his business for 13 years. Over that time period,he
has paid$19,500 for the renewal of that license. If a restaurant can buy a license for$18,506,in his
opinion, he has just lost a$1,000, due to the city controlling this license. Hicks stated the City
Manager,the Mayor, the Council and the City Attorney needs to decide right now if they are going
65
to continue to control these restauxant licenses. They will be able to control the restauxant licenses
to an extent,but not to the extent as with the on-sale licenses.
SDSU Re�ort.
18`Readin�—Ordinance No. 12-08. Fi.tst reading was held on Ordinance No. 15-08,action on an
application for a conditional use to establish a drive-in food service on Lots 12— 14,Block 6,
Oxiginal Plat Addition (425/427 Main Avenue�. PuGlit Heanng: Apri129,2008(note: A auper majority vote of S/2 wi!!Ge
reguind on thir item topacr)
1g`Reading—Ordinance No. 16-08. First xeading was held on Ordinance No. 16-08. action on an
application fox an amendment to a conditional use to establish four (4) additional dwelling units in
an apaxtment on a portion of Lot 18, and Lot 19, except the W85 feet of Lot 19, College Addition
(649 Faculty Drive�. PrrylicHeanng.• Apnl29,2008
18`Reading—Ordinance No. 17-08. First xeading was held on Ordinance No. 17-08,action on
amendments to the sign ordinance pertainuig to electromc message signs. PxGlicHeariag: Apri12v,2008
2"a Readin�-Ordinance No. 12-08. A public heaxing was held on Ordinance No. 12-08,an
Ordinance Revising the Composition,Appointment and Criteria for Appointment of Members of
the Brookings Health System Board of Trustees. No comments were made. A motion was made by
Reed, seconded by Whaley to approve. All present voted yes;motion caxried.
Weldon offered a clarification on the purpose of the change is to allow members of City Council
and the County Commission to appoint members from theix xespective bodies regardless of where
they live within Brookings County. They want to reflect a more broad reflection of the area the
Bxookings Health Service represents.
2"a Reading—Ordinance No. 13-08. A public hearing was held on Oxdinance No. 13-08,an
Ordinance Amending Article II of Chapter 22 of the Code of Ordinances of the City of Brookings
and Pertaining to the Adoption of the 2006 Intexnational Building Code and the 2006 International
Residential Code with Certain Amendments Thereto. No comments wexe made. A motion was
made by Thomson, seconded by Reed, to appYOVe. All present voted yes;motion caxried.
2"a Reading—Ordinance No. 14-08. A public hearing was held on Ordinance No. 14-08,an
Ordinance Amending the Joint Jurisdiction Axea Zoning Oxdinance pextauung to a private stable as
a special exception in the Residence R-1A District. No comments were made. A motion was made
by Thomson, seconded by Whaley, to appxove. All present voted yes;motion carried.
Public Hearing,—Resolution No. 35-08—Sidewalk Assessment. A public heaxing and action
was held on Resolution No. 35-08,Levying Assessment fox 2007-01 SWR,Sidewalk Assessment
PYOject. No comments were made. A motion was made by Bartley, seconded by Reed, to appxove.
All present voted yes;motion carried.
Resolution No.35-08
Levying Assessment for Sidewalk Assessment
Project No.2007-01SWR
WHEREAS,the City Council has provided for the following woxk to be completed under
Pioject No.2007-01SWR. (2007 Sidewalk Repair Sites)
BE IT RESOLVED by the City Council of the City of Brookings,South Dakota,as
follows:
1. The City Council has made all investigation which it deems necessary and has found and
detexmined that the amount which each lot or txact will be benefited by the construction
of the sidewalk impxovement heretofore designated as Sidewalk Assessment Pxoject No.
2007-01SWR is the amount stated in the proposed assessment roll.
2. The assessment for Sidewalk Assessment Pioject No. 2007-01SWR is hereby approved
and the assessment thereby specified axe levied against each and every lot, piece or
parcel of land thexeby described.
3. Such assessments, unless paid within thitty (30) days aftex the date of mailing of a
statement of account by the City, shall be collected by the City in accoxdance with the
procedure for Plan One in Sections 9-43-30 to 9-43-41, South Dakota Compiled Laws
of 1967,as amended with interest of 10%on the unpaid balance.
4. Assessments amounting to less than$300.00 shall be paid in one payment.
T'his resolution will rescind Resolution No.20-08,approved by City Council on February 26,
2008.
� �
Resolution No. 29-08—Liquor O�erating Agreement: BraVo's. Motion was made by Bardey,
seconded by Thomson, to approve Resolution No. 29-08, a resolution authorizing the city manager
to enter into a liquor opetating agreement with BraVo's on a temporary basis until the new
restaurant licenses are issued.
Mike Bailey, Sr. asked the council what the options are for the Shamxock if the lease with the city
falls thru. He asked the Council to delay giving the last unrestricted Liquor License to BraVo's until
something has been decided for the Shamrock.
Thomson agreed that there should be a revisal on this resolution, a backup plan for the Shamrock,if
the lease agreement falls through. She doesn't want the Shamxock to not have any options for the
next two-plus months,until the new restaurant licenses are available.
Bezdichek stated this is not whether BraVo's should ox should not have this license,but xathex what
is the best use for this license. He agrees with Whaley,that the unrestricted license should be
located downtown, as that is where the majority of the other unrestricted licenses are located. He
would like to see this license located best geographically where the owner and the city will get the
best benefit. As this license has been on the shelf for four years,he is not ready to and does not
want to be held accountable,as an elected official, for making the wrong decision on an issue that
has some time.
Reed stated he agrees with Bezdichek. There are many things that play into this and those
unrestricted licenses could have a different value in different ways. He wants to understand that the
Shamrock can get a license that satisfies them. He stated that as the council entered into this and
asked the City Managex to create this operating agreement, they were under the understanding that
the Shamrock would also be able to serve alcohol at that time. There were some mistakes in that
process,and wants to be sure that that doesn't happen again.
Motion was made by Reed, seconded by Bezdichek, to table Item#15 (issuing of the Liquor
License to BraVo's). All voted yes;Bartley voted no; motion carried.
Mike Bailey Sr. stated the intent of all this is for the wellbeing of Brookings. The goal is to all work
together. He asked if there is anything they can do to help resolve this.
Munsterman referred him to continue woxking with the City Attorney. He mentioned the one
unresolved question in regards to issuing moxe than one temporary license concurrendy still needs
an answer. As more information is brought forward, he hopes it will bring understanding of these
licenses and what it means for Brookings. He feels the city is in a good position right now, and
hopes that in 2-3 months,all paxties will be satisfied.
Bartley commented when he went to the legislatuxe to woxk for this bill,he didn't see anyone there
voicing theit thoughts ox supporting Brookings and the Municipal League's effoxts, and now that it
has passed, everyone is holding their hands out. He feels he is working to the best of his abilities to
answer everybody's concerns,but the council isn't taking any action on anything and feels the
council should have issued this license tonight. He feels bad for the Bailey's and other applicants
that they have to go thru this. To him this is unacceptable.
Mike Bailey,Sx. stated that they wexe asked to contact the Governot,legislators and such. They did
so.
Bardey responded that yes,they did,but he had to ask people to contact the.ir legislators to suppoxt
the bill, they didn't do it on their own.
Public Hearing—Resolution No. 28-08—Lease of Real PrQpertv. A public hearing and action
was held on Resolution No. 28-08, a resolution of intent to lease real property to a private person
and authorizing the Mayor to sign an agreement with the South Dakota Kart Club, Inc. No
comments were made. A motion was made by Thomson, seconded by Reed,to approve. All
present voted yes;motion carried.
Resolution No.28-08
Resolurion of Intent to Lease Real Property to Private Entity
BE IT RESOLVED by the governing body of the City of Brookings, South Dakota that
the City oE Brookings intends to enter into a Lease with South Dakota Kart Club, Inc., a South
Dakota Corporation,for a period of Five(5)years and pertauung to the following described property:
67
The West HaIF of the Southwest Quartex (W'/ZSW'/a) of Section Thirteen (13), Township
One Hundxed Ten (110) Noxth, Range Fifty (50) West of the S�h P.M., within the City of
Brookings, Brookings County, South Dakota,less the North Seven Hundred Feet (N 700')
of the East Seven Hundred Twenty Feet (E 7207 and the North Nine Hundred F1fty Feet
(N 950') of the West Six Hundxed Feet(W 6007 less any Highway right of ways of the West
Half of the Southwest Quarter(W`/zSW'/4) of said Section Thirteen(13).
The purpose of this Lease is to pxovide a location for kart xacing.The term of the Lease is
five years.The Lease pcovides that as xent fox the above-mentioned premises,the infield,bleachers,
paxking and xestroom facilities shall be available fox use by the City of Brookings Paxk and Recreation
Depaxtment for sponsoxed activities.
BE IT FURTHER NOTED, that a Public Hearing on this Resolution was held on this
15t" day of April, 2008 at 6:00 o'clock P.M. at the City Council Channbers and that all persons were
given an opportunity to be heard on the intent to lease xeal pxoperty.
Resolution No. 30-08—Award Bids. Action was held on Resolution No. 30-08, a resolution
awarding bids for the Downtown Streetscape pxoject. No comments were made. A rnotion was
made by Bezdichek, seconded by Thomson to appxove. All present voted yes;motion carried.
Resolution No.30-08
Resolution Awarding Bids on Ptoject 2008-03STI
Downtown Sueetscape Project
Whereas,the City of Bxookings opened bids for Pxoject 2008-03STI Downtown Streetscape
Project on Tuesday,March 18th,2008 at 1:30 pm at Brookings City Hall;and
Whereas,the City of Bxookings has received the following bids for Project
2008-03STI Downtown Streetscape Project:
Bid Schedule No.1:
Base Bid Items:
Engineex's Estimate: $3,005,627.00
Winter Brothets Underground,Inc.,Sioux FaJls,SD $3,687,292.50
Duininck Brother.r,Inc.,Prin,rburg,MN �3,821,790.50
Prunty Con.rtruction Co.,Inc.,Brooking.r,SD ,$3,907,345.27
Bid Alternate No.1(Waikway Pavement Custom Joint Pattern):
Engineer's Estimate: �8.040.00
Duininck Brothe�s,Iac.,Prinsburg,MN $26,800.00
Prunty Conrtruction Co.,Inc.,Bmoking,r,SD �'71,757.00
Winter Bmtberr Undergmund,Inc.,Siar�c Fa!!�,SD ,d73,700.00
Bid Aiternate No.2(Walkway Pavement Custom Color Concrete):
Engineer's Estimate: $16,080.00
Duininck Brothets,Inc.,Prinsburg,MN $50,250.00
Winter Brother.r Underground,Inc.,Sioux Fa1G,SD ,�107,200.00
Prunty Con.rtructian Co.,Inc.,Brooksng.r,SD �'107,635.50
Bid Altemate No.3(Walkway Pavement Additional Colot Concrete):
Engineex's Estimate: �40,200.00
DuininckBrothers,Inc.,P�insburg,MN $80,400.�
WinterBrotherr Undergmund,Inc.,SiouxFalk,SD $f07,200.00
Prunty Con,rtruction Co.,Inc.,Brookin�.r,SD d 143,514.00
Bid Alternate No.4(Patking Area Concrete Pavement):
Engineer's Estimate: $143,528.00
Winter Brothers Underground,Inc., SiocrY Falls, SD $123,956.00
Prunty Con.rtruction Co.,Inc.,Brooking.r,SD ,i130,480.00
Duininck Brotherr,Inc.,Prin.rburg,MN �'172,886.00
Bid Schedule No.2:
Roadway Surfacing:
Bowes Construction,Inc.,Brookings,SD $125,870.OI�
Bid Alternate (Packing Area Asphalt Pavement):
Bowes Construction,Inc.,Brookings, SD $49,055.00
Now Thecefore,Be It Resolved that the low bid of Winter Brothers Underground,
Inc.,Sioux Falls,SD,for Base Bid of$3,687,292.5Q with no bid aliernates be accepted for Bid
Schedule No.1;and that the low bid of Bowes Construction,Inc.,Broolsings,for Roadway
Sudacing for$125,870.00 and Bid Alternate(Parking Area Asphalt Pavement)for$49,055.00
be accepted for Bid Schedule No.2.
Weldon commented they were disappointed when the bids came in$700,000 over the projected
amount. They have 5 options to choose from: Option 1,redesign; Option 2,do the streetscape
only; Option 3, as designed; Option 4,modify project after awarding bids;and Option 5, scrap the
project entirely. Weldon recommended Option 4, to modify the project after awa.rding bids.The
low bidder is willing to work out modifications to lower the cost of the project.
6 �
He stated a list of recommendations that would bring the shortfall down to $645,217 with some
project reductions. Beyond that,they are looking at some accounting shifts to be sptead around in a
team approach. He doesn't want to cut into capital purchases or operations,but rather minimize
problems with the ptoject and still get it done with keeping the reserve in good shape.
He xecommends awarding the contract to Winter Bros. Construction in the amount of
$3,687,292.50 with associate bid alternates for paving and surfacing.
Lanning clarified that this project is really awarding two contracts: one to Bowes Construction for
the road way surfacing portion,and one to Wintet Brothers.
Bezdichek asked when they anticipate staxting on the Downtown Streetscape Pxoject. Lanning is
anticipating the first week of May.
Thomson thanked City Staff and City Manager Weldon on their abilities to satisfy as many parties as
possible in this situation. She commented how they have been able to find ways to make things
happen that are agreeable to the majority of the people and able to move this project forward.
Weldon expressed his gratitude to the teamwork of city staff inembers and the consultants. While
the design is to soften the asphalt jungle downtown,the number of trees is an issue and we will be
looking at that. We have heard the public on this issue and will be reviewing.
Troy Hicks asked what is the completion date is if the project is started the first week of May, and
how the project will proceed,if it will be one block at a time or all of downtown at once.
Lanning stated she will know more after the pre-construction meeting. The initial completion date
is October 15. It is up to the contractor for the construction sequence,but they will start from the
north. The contractor is expected to maintain as much traffic flow in sections they are working on,
with east/west traffic flow to be maintained as much as possible.
Weldon stated there will be a series of ineetings scheduled for downtown businesses. He stated that
this project is not going to be a picnic. It will be dirty,dusty,and inconvenient and will take
patience and cooperation from all in the construction zone.
Reed thanked city staff in dealing with many people with many ideas and creating a plan that is good
for all.
'Thomson asked if the final plan will be on the city's website. Yes.
Bardey stated he too supports city staff and their recommendations. He has visited with people
downtown and taken views on both sides with likes and dislikes. He sees the downtown businesses
as planning ahead for a decrease in sales and will be glad to see this project finished.
Munsterman stated this is a great time to be doing this for Brookings.
Adjourn. A motion was made by Reed, seconded by Whaley, to adjourn. All present voted yes;
motion carried. Meeting adjourned at 7:34 p.m.
CITY OF BROOKINGS
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C�T�OF
o�� '"��qoe;�oo Sco . Munsterman,Mayor
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Shari Thornes,City Clerk �