HomeMy WebLinkAboutCCMinutes_2009_05_26 35 �
Brookings City Council
May 26, 2009
The Brookings City Council held a meeting on Tuesday,May 26, 2009 at 5:00 p.m., at City Hall with
the following members present: Mayor Tim Reed, Council Members Julie Whaley,John Kubal,
Mike McClemans,Mike Bartley,and Tom Bezdichek. City Manager Jeff Weldon, City Attorney
Steve Britzman, and City Clerk Shari Thornes wexe also present.
�emonstration on Granicus Software for City Council, Staff and Public Rob Herrmann, Sales
Executive,provided a product demonstration and responded to questions. There was consensus
from the Council to include in the 2010 budget proposal for Council consideration. Bezdichek
suggested asking the County Commission about their interest in utilizing the City's televised system.
Weldon said this software is another step towards more transparency and open government and in
the future hopes additional organizations would be accessible and available via television (i.e. Utility
Board,Hospital Board).
Presentation on Deer Creek Station by_Curt Pearson�Project Re�resentative with Basin
�lectric Power Coo�erative. Carrie Law,Director of C&GR for Sioux Valley Energy introduced
Sioi�Valley Energy. Siou�c Valley Energy's Mission is, "We e�rist to be our customers'choice for
energy& divexsified services." They have three service centers in Pipestone,Brandon, and
headquaxters in Colman. Their keys to success are customer focus, commitrnent to quality,
responsible growth, community service, competitive products &services and profitable
diversification. Sioux Valley Energy is the largest electric distribution cooperative in South Dakota,
serving over 20,000 customer accounts. They have over 100 employees between the three service
centers. Sioux Valley Energy serves 5 counties in South Dakota (Brookings,Lake,Moody,
Minnehaha and Eastern Kingsbury) and 2 counties in Minnesota (Pipestone&Rock). The
cooperative power supply includes the following: the power is supplied by Basin Electric;the
transmission is supplied by East River and L&O Power, the distribution is provided by Sioux Valley
Energy and brought to the consumers/owners.
Curt Pearson,Project Coordination Representative for Basin Electric Power Cooperative presented
on Basin Electric Power Cooperative. The Basin Electric Power Cooperative serves 125 member
electric cooperatives with service territory from the Canadian border to the Me�can border,
approximately 2.6 million consumers. Basin Electric is a manufacturer of electricity and sells
electricity through their member electric cooperatives; they do not sell to a single homeowner,
rancher or farmer. Basin Electric has the distinction of serving as a supplemental power supplier to
all of South Dakota's electric cooperatives. South Dakota is the only state out of the 9 states served
that has this distinction. The world's net electricity consumption is projected to double by 2030.
Basin Electric's sources of fuel include coal, natural gas, oil,wind and other sources. A peaking
geneYation station is located in Groton, SD. Basin Electric also has an agreement with Madison, SD
that when our electric power loads axe high and theirs are not,we can use their diesel generators.
Base load facilities typically are coal fired power plants designed to operate 24 hours a day, 365 days
a year which is very efficient,but do not peak up and down. South Dakota planned pYOjects include
Deer Creek Station,a 300 megawatt combined cycle gas-fired generation facility near White, SD and
PYairie Winds SD-1, a 151.5 megawatt wind farm consisting of 101 turbines in central South Dakota.
Gavin McCollam, Deer Creek Starion Project Coordinator,provided specifics of the proposed
station. Deer Creek Station will be a natural gas combined cycle power plant that will begin
construction in mid-2010. The estimated peak construction will employ 350 workers at the power
plant. Commercial operation is expected to begin mid-2012 with 25-30 operational workers. Deer
Creek Station's budget is appro�umately$405 million. Project benefits include 500 construction jobs
over the 18 month construction period and 30 permanent operational jobs. Completed project
milestones include land acquisition,major equipment procurement,preliminary engineering,
progress of the environmental impact statement, filing of the Notice of Intent on December 22,
2008 with the SD PUC,and the public scoping meeting on February 24,2009. Major plant
components include the combustion turbine, heat recovery steam generatoY, steam tuYbine and air
cooled condenser.
T'he Deer Creek Station will be located neax the intersection of 207�'Street and 484`t'Avenue.
Anyone can visit the Western Area Power Admuiistration's (WAPA) website at
htt�://www.wa�a.gov/transmission/deercreek.htm to view progxess of the proposed Deer Creek
Station Project. Curt Pearson requested the City Council provide letter of support of the Deer
Creek Station Project that would be submitted to the SD PUC with the letter of application.
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Some conceYns of the project include transportation of heavy equipment to and from the site, many
people employed for temporary period of time which includes temporary housing and updating
roads and bridges to handle the equipment. A noise study will be conducted and be taken into
account with the design of the station. Transmission lines will be minimal (one mile or less) due to
the proxunity of the station to the Western Area Power Administration substation which was a key
component in determining the location of the starion. The impact reports that have been conducted
will be made available to the public.
ACTION: A motion was made by Bartley, seconded by Bezdichek to issue a letter of
support for the Deer Creek Station. A friendly amendment was made by Reed to add this to
the June 23 council meeting to finalize and approve the letter of support. All present voted
yes; motion carried.
Storm Water Finance Plan and Capital Debt Service Analysis. Weldon said having adopted the
project priority listing for the 12 projects,we need to turn our attention to exploring methods of
financing these projects. As a reminder, staff is focusing on the top three priority projects to
concentrate our efforts for this year.
Project Priorit�#1: Southland Lane d�' 12'b St. S. Detention Pond. This project involves negotiations
with property owners to acquire Block 8 Hyland Addition as the location for a detention pond.
Contact has been made with the owner to initiate negotiations on the land. After that,a pond will
have to be constructed followed by structures. ($1.789 million 5 yr./$4.779 million 100 yr.)
Pro�ect Prioritv#2: Garden SquareApt,r./Garden Square Toavnhou.reArea. This project involves
structure improvements and landscaping. ($38,000 5 yr./$541,477 100 yr.)
Project Priority#3: 15`b St. S. �bAve. S. detention pond. This project involves a detention pond on
city-owned property and structure improvements. ($2.342 million 5 yr./$4.962 million 100 yr.)
Each project will need to be individually engineered. We will not start design work on Project 1
until we have secured the property so an initialization schedule for this project is problematic. We
are in the process of beginning design work on Projects 2 and 3.
With regard to financing,the storm drainage fee currendy is budgeted to raise$502,455 in revenue
for 2009 and projected to xaise$522,553 in 2010. Of that amount,we can estimate $300,000 being
available annually for capital expenses of property acquisition for ponds, easements, construction of
infrastructure,and related engineering costs. The current fee was la.st increased in 2007 when it was
doubled (.00018 in 2006 and .00036 in 2007). We may want to consider implementing gradual,
incremental increases in the storm drainage utility fee to help finance these improvements. The
capital costs of financing our en�e project priority list is just over$8.1 million for five-year
standards and just over$14.5 million for 100-year standards in today's dollars. Over time,inflation
will increase these costs.
The 2009 un.it financial charge is .00036, and a 50 percent increase will raise the unit financial charge
to .00054. The following examples give a sample of the fee increases fox several different types of
properties:
Building 2009 drainage fee drainage fee with 50%increase
12,000 sq. ft. Yesidential lot $32.40 $48.60
Falcon Plastics $3,918.83 $5,878.25 .
First Bank&Trust (520 6�'Street) $379.68 $569.53
Lowes Home Center $3,357.76 $5,036.65
Pexkins Restaurant $239.41 $359.11
Super 8 Motel $632.16 $948.25
'The City's net debt limit after giving effect to the issuance of sewer and water bonds or issuance of
debt not et voter a roved,is as follows: �
Le al Debt Limit for Fiscal Year 2007/2008 $ 38,887,744
Outstandin bonds a licable to 5% debt limit $ 13,650,000
TIF #3 &4 $ 785,000
TIF#1 $ 4,100,000
Storm D ' SRF Loan $ 8 000 000
Net Debt Mar ' � 12 352 744
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*Projects outstanding per Council-Airport $12M, Swiftel Expansion $7M, City Hall $4M, Hillcrest
Park-Lazy River$2M-25�'Avenue $750,000
Weldon gave a summary of the nine options; the first three options are variations of a pay-as-you-go
without incurring any further debt. The first one, as example,would use the revenue from the
storm drainage utility to pay for that and leave our current rate the same. If no other projects are
dedicated,it would take 27 years to complete the process,which is unacceptable. Options 2 &3 are
variations of the same pay-as-you-go and don't incur debt,but do provide for a fee increase at
various gradations. Options 4-5-6 are variations on issuing debt. The debt proposed to take on is
provided through the Dept. of Envirorunent&Natural Resources. This is the same program used
fox some infrastructure at the Innovation Campus and would be entirely dedicated to storm drainage
and utility improvements. The full$8 million could be borrowed drawn down in certain gradations
as wanted. Rita Thompson proposes this as an opportunity to borrow$2 million at a time, or what
amount is needed in order to woYk thYOUgh the program. The ability to take on projects and finance
them is going to be limited to the ability to manage the debt and debt service. Options 7-8-9 are
variations of blending our revenue stream with the storm drainage with the possibility of using
property taxes and second penny revenues. The possibility of using property tax would be either an
opt out or asking voters for a general obligation referendum.
The following are various options for financing the projects to five-year standards not accounting
for the time value of money:
tion 1: Pay-as-you-go leaving the fee unchanged. 'I'his provides $300,000 annually to be applied
to the projects. Estimated completion time: 27 years.
tion 2: Pay-as-you-go and increase the fee 50 percent. This provides $450,000 annually to be
applied to the projects. Estimated completion time: 18 years.
tion 3: Pay-as-you-go and double the fee. This provides $650,000 annually to be applied to the
projects. Estimated completion time: 12.5 years.
tion 4: Issue debt from the DENR through the SRF program using$300,000 as the annual debt
service (no change in the fee) for 17 year term at 3.00 percent interest. This produces the ability to
loan$4 million that can be applied to projects. Estimated completion time: Only half of the project
could be completed.
Ogtion 5: Issue debt from the DENR through the SRF program using$475,000 as the annual debt
service (50 percent increase in the fee) for 20 years term at 3 percent interest. This produces the
ability to loan$8 million that can be applied to projects. The loan would be advanced in$2 nvllion
increments over 4 years. Estimated completion time: 8 years.
O�tion 6: Issue debt from DENR through the SRF program using$600,000 as the annual debt
sexvice (double the fee} for a te�n of 17 yeass at 3 pexcent intexest. The interest is substantially more
with this option. This produces the ability to loan$8 million that can be applied to projects.
Estimated completion time: 8 years.
NOTE:Options 4-6 can be modified to 3.25 percent intere.rt svhich would add appynximately a halfyear to the term
of the loan.
O�tion 7: Combine any of the above options with supplementing revenue from the 75 percent
second penny fund. The exact amount of second penny revenue would have to be further evaluated
relative to other budgetary demands for this revenue stream.
Oti�rion 8: Combine any of the above options with using some cash reserves. This will write-down a
corresponding amount of principle needed and xeduce overall debt service. As with Option 7, the
exact amount of reserves would have to be further evaluated relative to other budgetary demands
for this xevenue stream.
O�tion 9: Ask the voters to support a property tax freeze "opt-out" to increase property taxes with
revenue dedicated to storm drainage improvements. As with Options 7 and 8, this could be in
combination with any of the opti.ons for a "blended" financial solution.
Rita Thompson, Finance Manager, clarified for the council that available cash in 2012 will be
$32,000. This is extremely low,but it will start to increase after that point. The city can only do 5%
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of assessed value,which is set by sta.tute. If all of the projects were done, the city would be maxed
out by the year 2014.
Weldon stated not everything can be done and need to pick the best thing and where to place the
investtnent dollars. In 2006, the city's credit rating was upgraded by Moody's Investtnent Services
from a BAA Rating to an A3 Rating. With every issuance of debt,we need to make sure we don't
jeopardize that cxedit rating and be downgxaded. If we take on more than we can handle,we'll feel
that right away with a downgraded credit rating. Being downgtaded would make any interest rates
on £uture debt much higher and would severely limit the amount we could borrow for any futute
projects. We need to proceed judiciously on where we want to invest our dollars.
Thompson clarified what the hospital does would take away from what the ciry can issue. The city's
margin is around$23 million. Depending on what the hospital does,it could limit the city on TIFs
and any other improvements. Weldon stated the hospital comes out of the same debt, the top 5%.
BMU is under different statute limits. They are under 10%, and are separate ftom out 5%.
Weldon recommended Option 5. Fi�st,it keeps our debt service payments for all capital storm
dxainage projects within the drainage fund while reserving a certain amount fox maintenance. We do
not need to complicate our financing schedule with general fund or second penny revenues.
Second,it strikes,in the opinion of staff, a fair and equitable balance between a rate increase
sufficient enough to aggressively finance the projects yet not overly onerous or buxdensome for
property owners.
If council approves,Weldon said the first step would be to contact Ted Haedex at Fi�st District and
submit an application to the Dept. of Environmental&Natural Resources through the State
Revolving Fund for the improvement loan to provide the funds to pay for the projects and build a
50 percent storm drainage assessment fee increase into the 2010 budget.
There was Council direction to bring this item back fox action on June 23`�.
6:00 P.M. REGULAR MEETING.
Consent Agenda. A motion was made by Whaley, seconded by McClemans,,to approve the
consent agenda:
A. Action to approve the agenda.
B. Action to approve the May 12,2009 City Council Minutes.
C. Action to appoint Mac Harris to the Library Board, filling the unexpired term of John
Kubal(May 26,2009 to January 1,2010).
D. Action on Resolution No. 51-09, designating the Park& Recreation Center as a
Convention Facility—August 29,2009.
Resolution No. 51-09
Resolution Designating the Park and Recreation Center as a Convention Hall
Whereas, the Bxookings City Ordinance Section 5-21 "Temporary on-sale license for use at
convention Hall", states "Any public convention center or hall designated bq resolution of the
City is hereby designated as a convention hall of the City for purposes of tempoxary on-sale
alcoholic beverage licensing. The use of each convention hall by any person holding a
tempoxary on-sale alcoholic beverage license shall be governed by the rules or regulations
pertaining to each respective facility."
Whexeas,SDCL 35-4-14.2 fuxther states there may be issued in any municipality one on-sale
license to be operated at a designated convention hall;and
Whereas, the Park and Recreation Center located at 221 Main Avenue is utilized for many
different functions and events;and
Now,Therefore Be It Resolved that the Patk and Recreation Center be designated as a
Convention Hall on August 28 and 29, 2009.
E. Action on temporary liquor license fo=Firemen's Dance—August 29,2009.
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F. Action to schedule special Council meeting with the Brookings Health Systems Board
on Thursday,July 23, at 5:00 p.m.
G. Action to approve a Memorandum of Understanding between the City of Brookings and
South Dakota State University (McCrory Gardens) for bike trail right-of-way.
Memorandum of Understanding Between
City of Btookings and South Dakota State University
Whereas, the City of Brookings desires the construction of the bike path project Number
POENH(14� PCN OOC2;and
Whereas, this memorandum of understanding is intended to allow the bike/pedestrian path on
South Dakota State University property as shown on the attached map e�ibit with the
following conditions:
1. South Dakota State University shall not charge the City of Brookings any fees for the
bike/pedestrian path being located on its property
2. The City shall be solely responsible for the care and maintenance of the bike/pedestrian
path
3. Should South Dakota State University requite the use of its propertp the City shall
understand that its right to the use of the property and any responsibility for the
impxovements made thereto shall be terminated.
Now, therefore, it is the joint and mutual understanding of the City of Brookings and South
Dakota.State University for the above conditions.
H. Action on Resolution No. 53-09,a resolution For Bike Path/Pedestrian Trail Easement
with Dakota Minnesota & Eastern Raikoad Corporation.
Resolution No. 53-09
Resolution Authorizing the Mayor to Sign an Easement with DM&E
Bike Path Project POENH(14� PCN OOC2
Whereas, the Brookings City Council desires the construction and improvement o£the bike path
project Number POENH(147) PCN OOC2;
And Whereas, The City of Brookings desires to enter into an agreement fot an easement with
Dakota, Minnesota & Eastern R.ailroad Corporation for the bike path located on DM&E
property,in the City of Brookings, County of Biookings,State of South Dakota,
Now,Therefore,Be Resolved, that the Mayor is hereby authorized to sign all docutnents related
to the easement.
I. Action on Resolution No. 52-09, a Resolution giving approval to the Acquisition,
Construction and Financing of the City SDSU Innovation Campus Sanitary Sewer and
Stornn Project,giving approval to the Issuance of a Borrower Bond to finance a portion
of the costs of such project and authorizing the sale of said Bond.
Resolution No. 52-09
A Resolution Giving Approval to the Acquisition, Construction and Financing of the
City SDSU Innovation Campus Sanitarq Sewer and Storm Project, Giving Approval to
the Issuance of a Borrower Bond to Finance a Portion of the Costs of Such Project and
Authorizing the Sale of Said Bond.
Now, Therefore, Be It Resolved and Ordained by the City Council of the City of Brookings as
follows:
1. Recitals. 'The City of Bxookings (the "City") desixes to make a capital improvement to
and finance its SDSU Innovation Campus Sanitary Sewer and Storm Sewer Pxoject, as described
in E�chibit A hereto (the "Project"), details on the project are on file with the City Manager and
open to public inspection.
2. Authori • The City is authorized to issue a Borrower Bond to finance the capital
improvements pursuant to Section 10-52-2.10 of the South Dakota. Codified Laws. Pursuant to
Chapter 10-52 of the South Dakota Codified Laws (the "Act") the City proposes to issue a
municipal non ad valorem borrower bond (as hexein authorized, the Bond, or the "Borxower
Bond") to finance the Project. The City is authorized by the Sales Tax Act to levy a "non ad
valorem tax" (as defined by the Act) on the sa1e, use, storage, and consumption of items taxed
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undez Chapters 10-45 and 10-46 of the South Dakota Laws, subject to certain, as amended,
exceptions.
3. Sales Tax Oxdinance. The City Council has adopted Section 78-32 of the Bxookings
Code of Ordinances which constitutes the City's effective Sales Tax Ordinance (the "Sales Tax
Ordinance"). The Sales Tax Oxdinance has been duly adopted pursuant to the Act and
effectively and validly imposes the sales and use tax Act within the City, such tax being
hereinafter referted to as the "Sales Tax".
4. Cost of the Project. The cost of the Project is approxirnately $3,884,000. The City
proposes to finance approximately $1,190,000 of the Project through the issuance of the
Borrower Bond (the "Bond"). The Bond shall be payable out of collections of the one percent 1
% after the first one percent of the Sales Tax as is necessary to pay principal, administrative
expense surcharge and interest on the Bond (the"Pledged Tax").
5. F�. 'The City Council hereby finds and determines as follows:
5.1.1. The Project constitutes capital impxovements which qualify for the ftnancing
under and pursuant to SDCL Chapter 10-52,and the Sa1es Tax Ordinance;and
5.1.2. The Borrower Bond authorized hereby is being issued to pay costs of the Project
which have not been incurred or paid as of the date hereof and/or which the
City has heretofore declared its intention to finance with bond proceeds and for
which the City has no other available means or source of ftnancing.
5.1.3. It is in the best interests of the City to authorize the borrowing of funds to pay a
portion of the costs of the Project by authorizing and issuing its Borrower Bond,
consistent with the terms approved hereby for an aggtegate sum not in excess of
the amount of$1,190,000.
6. Sa1e of Bond. It is hereby determined to be necessary and in the best interests of the
City and its inhabitants that this City Council authorize, issue and sell the Bond in order to
finance a portion of the cost of the Project. The Mayor and City Manager are authorized to take
such action as is necessary to close the loan with the South Dakota Conservancy District (the
"District") upon such terms and conditions as the District may requite. The Mayor and City
Manager axe authorized to execute the Borxower Bond and Loan Agreement approved by the
District.
7. No Election Rec�uired. The Bond may be issued by the City without an election
pursuant to SDCL�10-52-2.10.
8. A��roval of the Loan, the Form of Borrower Bond and Loan Agreement. The City
does hereby approve the Loan from the District, the form of the Bortower Bond and Loan
Agxeement. The Form of the Borrower Bond and Loan Agreement which are subject to
modification are on file with the City Manager and open to public inspection. The Mayor and
City Manager axe authorized to execute a Bor�xower Bond and Loan Agxeement in a form
approved by the District.
9. Terms of Bond.
9.1. Date,Amount,Maturities and Interest Rates. The City Council hereby
authorizes the issuance of the Bond. The Bond shall be dated in 2009. The
principal amount of the Bond shall not exceed any statutory or constitutional
debt limitation. The Bond shall have maturities and interest xates as negotiated
by the Mayox and City Manager.
9.2. Registration. The City hereby appoints The First National Bank in Sioux Falls as
registrar and transfer agent (the "Registrar") for the Bond. The effect of
registration and the rights and duties of the City and the Registrar with respect
thereto shall be as follows:
9.2.1. Re �ster. The Registrar shall keep at its office a register (the "Register")
in which the Registrar shall provide for the registration of ownership of
the Bond and the registration of transfers and exchanges of the Bond
entided to be registexed, transferred or exchanged.
9.2.2. Transfer of Bond. When the Bond is surrendered for transfer it shall be
duly endorsed by the registered owner thereof or accompanied by a
written instrument of transfer in form satisfactory to the Registrar; duly
executed by the registered owner thereof or by an attorney duly
authorized by the registered owner thereof. If the Bond is properly
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surrendered as provided above, the Registrax shall authenticate and
deliver, in the name of the designated transferee, a new Bond of a like
aggtegate principal amount and maturity. The Registrax may, however,
close the books for registration of any transfer after the fifteenth day of
the month preceding each intexest payment date and until such interest
payment date.
9.2.3. Exchange of Bond. Whenever the Bond is surrendered by the registered
owner for exchange the Registrax shall authenticate and deliver the new
Bond of a like aggregate principal amount and maturity, as required by
the registered owner or the owner's attorney in writing.
9.2.4. Cancellation. 'The Bond surrendered upon any transfer or exchange shall
be promptly canceled by the Registrar and thereafter disposed of as
directed by the Ciry.
9.2.5. Im�ro�er or Unauthorized Transfer. When the Bond is presented the
Registrar may refuse to transfer the same until satisfied that the
endorsement on such Bond or separate instrument of transfer is valid
and genuine and that the requested transfex is legally authorized. The
Registrar shall incur no lia.bility for the refusal, in good faith, to make
transfer which,in their judgment, are deemed impropex or unauthorized.
9.2.6. Persons Deemed Owners. The City, Paying Agent and Registrar may
treat the person whose name any Bond is at any time registered in the
Register as the absolute owner of such Bond,whether such Bond shall be
overdue or not, for the purpose of receiving payment of or on account
of, the principal of and interest on such Bond and for all other purposes,
and all such payments so made to any such registered owner or upon the
owner's order shall be valid and effectual to satisfy and discharge the
liability upon such Bond to the extent of the sum or sums so paid.
9.2.7. Taxes, Fees and Charges. For every transfer or exchange of Bond, the
Registrar may impose a chatge upon the ownex thexeof sufficient to
xeimburse the Registrar fox any tax, fee or other governmental charge
requixed to be paid with respect to such transfer or exchange.
9.2.8. Mutila.ted, Lost, Stolen or Destroyed Bond. In case the Bond shall
become mutilated or be destroyed, stolen or lost, the Registrar shall
deliver a new Bond of like amount, number, maturity date and tenor in
exchange and substitution for and upon cancellation of any such
mutila,ted Bond or in lieu of and in substitution for any such Bond
desttoyed, stolen or lost, upon the payment of the reasonable expenses
and chaxges of the Registrar in connection therewith;and,in the case of a
Bond destroyed, stolen or lost,upon fil�ixig with the Registrax of evidence
satisfactory that such Bond was destroyed, stolen or lost, and of the
ownership thereof, and upon furnishing to the Registrar of an
appzopriate bond or indemnity in fortn, substance and amount
satisfactory to the Registrar, in which the City and the Registraz shall be
named as obligees. The Bond so surrendered to the Registrar shall be
canceled by him and evidence of such cancellation shall be given to the
City. If the mutilated, destroyed, stolen or lost certificate has already
matured or has been called for redemption in accordance with its terms it
shall not be necessary to issue a new Bond prior to payment.
9.3. Pre�aration and Deliver,�. The Bond shall be prepared under the direction of the
City Manager and shall be executed on behalf of the City by the facsimile or
manual signatures of the Mayor and the City Managex and countersigned by the
facsimile or manual signature of an attorney actually residing in the State of
South Dakota and duly licensed to practice therein.
9.4. Securitv Provisions• Funds and Accounts and Other Covenants and
Determinations.
9.4.1. Drinking Water Borrower Bond Fund 2009. The Finance Officer is
hereby authorized and directed to establish and shall maintain the
Drinking Water Borrower Bond Fund 2009 as a separate and special
fund in the financial recoxds of the City until the Bond issued and made
payable therefrom, and interest due thexeon, have been duly paid or
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discharged. All collections of the Pledged Tax, as hexeinafter defined,
shall be credited, as received, to the Drinking Water Borrower Bond
Fund 2009. Within the Drinking Water Borrower Bond Fund 2009 are
vaxious separate accounts to be maintained by the City.
9.4.2. Pledged Tax. Pursuant to the Act and the Sales Tax Oxdinance, the City
has levied the Sales Tax on the sale, use, storage and consumption of
items taxes under Section 10-45 and 10-46 of South Dakota Codified
Laws, subject to certain exceptions. The proceeds of the Pledged Tax are
irrevocably pledged and appropriated and amounts sufficient to pay the
principal of and interest on the Outstanding Bond as the same become
due shall be deposited to the Drinking Water Borrower Bond Fund 2009.
For purposes of this Resolution, "Outstanding Bond" shall mean the
Bond and any parity lien Bond hereafter issued pursuant to this
Resolution. The Pledged Tax and the Drinking Water Borrowex Bond
Fund 2009 shall be used and applied only in the manner and oxder
hereinafter set forth.
9.4.3. Construction Account. There is hereby cxeated and established as an
account of the Drinking Water Borrower Bond Fund 2009, a
"Construction Account". There shall be credited to the Construction
Account the proceeds from the sale of the Bond remaining after payment
of the expenses of issuing the Bond. All moneys cxedited to the
Construction Account shall be applied solely to the payment of the costs
of the Project. For the purposes of this Resolution, "costs of the
Project" shall include costs of acquiring, construction, and installing the
Project including cost of labor, services, materials and supplies, financial,
architectural, engineering, legal, accounting and other professional
expenses relating to the Project, the costs of acquisition or properties,
rights, easements, ox other interest in properties, insurance premiums,
and the costs of publishing,posting or mailing notices in connection with
the Project. All sums derived from the investment of moneys in the
Construction Account shall remain in and become part of such account
Upon completion of the Project and when all costs of the Project have
been paid, any balance remaining in the Construction Account shall be
credited to the Principal and Interest Account hereinafter established.
9.4.4. Princi�al and Interest Account. There is hereby created and established
as an account of the Drinking Water Borrowex Bond Fund 2009, a
"Principal and Interest Account." Immediately upon delivery of the
Bond, there shall be credited to the Principal and Interest Account the
amount of any accrued interest received from the Purchaser.
Commencing on the first day of the month following the month in
which the Bond is delivered to the Purchaser, there shall be withdrawn
from the Drinking Water Borrower Bond Fund 2009, at least monthly
and credited to the Principal and Interest Account an amount which will
equal at least one-thitd (1/3) of the principal, interest and administtative
surcharge becoming due on the next succeeding interest payment date
with respect to the Outstanding Bond issued. In all events there shall be
credited to the Principal and Interest Account amounts sufficient to pay
the principal of and interest on the Outstanding Bond as the same
become due.
9.4.5. Subordinate Lien Bond. After making the above-xequited payments, any
remaining Pledged Tax shall be used for the payment of the principal of
and interest on any additional sales tax xevenue bonds having a lien
which is on a parity to or suboxdinate to the lien of the Outstanding
Bond, and for a reserve fund as additional security for the payment of
such subordinate lien Bond.
9.4.6. Inter-fund Txansfer. So long as the revenues from the Pledged Tax axe
sufficient to make all xequired deposits to the Principal and Interest
Account, the City may deposit the excess revenues from the Pledged Tax
to the general fund or any other City fund as determined by the City and
as permitted by law.
3sz
9.4.7. De�osit and Investment of Funds. The Finance Officer shall cause all
moneys pertaining to the Fund to be deposited as received with one or
moxe banks which axe duly qualified public depositories under the
provisions of Chapter 4-6A, South Dakota Codified Laws, in a deposit
account or accounts, which shall be maintained separate and apart from
all other accounts of the City, so long as the Bond and the interest
thereon shall xemain unpaid. Any of such moneys not necessary for
immediate use may be deposited with such depository banks in savings
or time deposits. No moneys shall at any time be withdrawn from such
• deposit accounts except for the purposes of the Fund as authorized in
this Resolution; except that moneys from time to time on hand in the
Fund may at any time, in the discretion of this Council , be invested in
securities permitted by the provisions of Section 4-5-6, South Dakota
Codified Laws, maturing and bearing interest at the times and in the
amounts estimated to be required to provide cash when needed for the
purposes of the respective accounts. Income received from the deposit
or investment of moneys shall be credited to the account from whose
moneqs the deposit was made or the investrnent was purchased, and
handled and accounted for in the same manner as other moneys in that
account.
9.5. Additional Debt. The Borrower shall not incur any Debt which has a lien on or
right to payment from the Pledged Tax which is superior to that of this Loan
Agreement and the Borrower Bond. The Borrower may incur Debt which is on
a paxity with this Loan Agreement and the Borrower Bond under the following
conditions:
9.5.1. Debt secured by Pledged Tax may be incurred to pay or prepay or
defease other Debt secured by Pledged Tax if the maximum annual Debt
Service of the new Debt is no gteater than that of the Debt being paid,
prepaid or defeased.
9.5.2. Debt secured by Pledged Tax may be incurted for any purpose so long as
prior to the issuance of such Debt the Borrower has delivered to the
Tnzstee and the District a certificate prepared by a Consultant showing
that the Pledged Tax collected for any 12 consecutive months out of the
15 consecutive months immediately prececling the issuance of the
proposed Debt was at least equal to 110% of ma�vmum annual Debt
Service for all Debt secured by Pledged Tax which will be outstanding
immediately after the issuance of the proposed Debt.
9.5.3. The Bo�rower may not,without the written consent of the District,incur
anp (i) variable rate Debt secured by Pledged Tax or (ii) Debt secured by
Pledged Tax the payments of principal of and interest on which in any
fiscal year are 150% ox more of the payments of principal and interest for
any other fiscal pear.
9.5.4. Nothing herein shall prevent the City from issuing Bonds payable frorn
the Pledged Tax and the Drinking Water Borrowex Bond Fund 2009 ox
having a lien thereon which is junior and subordinate to the lien of the
Bonds authorized herein.
9.6. Covenants of the Citv. The City hereby irrevocably covenants and agxees with
each and every holder of the Bonds that so long as any of the Bonds remain
outstanding:
9.6.1. It will not amend or repeal the Sales Tax Ordinance relating to the Sales
Tax by decreasing the Sa1es Tax rate or the allocation o£revenues thereof
to the Drinking Water Borrower Bond Fund 2009, or in any way that
would adversely affect the amount of Sales Tax revenues which would
otherwise be collected and deposited to the Dxinking Water Borro�aver
Bond Fund 2009. However, nothing shall ptevent the City fxom
amending the Sales Tax Ordinance in order to make certai.n changes in
the administration, collection or enforcement of the Sales Tax, provided
that such changes would not materially adversely affect the owners of the
Bonds.
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9.6.2. It will admuuster, enforce, and collect, o� cause to be administered,
enforced or collected, the Sales Tax authorized by the Sales Tax
Ordinance and shall take such necessary action to collect delinquent
payments in accordance with law.
9.6.3. It will keep or cause to be kept such books and records showing the
pxoceeds of the Sales Tax, in which complete entries shall be made in
accordance with standard principles of accounting, and any owner of any
Bond shall have the right at all reasonable times to inspect the records
and accounts relating to the collection and receipts of such Sales Tax.
9.6.4. In the event the Sales Tax of the City is xepla.ced and superseded by the
state collected-locally shared sales ta�c or taxes, or is replaced and
superseded in some other manner form other source or sources, the
revenues derived by the City from the repla.cement soutce or sources, as
received by the City shall be appropriated in the same manner as if the
City had levied and imposed a sales tax. Fxom and aftex the date of a
replacement, the Outstanding Bonds shall have a first and prior lien, but
not necessarily an exclusive lien, upon such replacement xevenues to the
extent therein specified.
9.7. Defeasance. When the Bond issued has been dischaYged as provided in this
section, all pledges, covenants, and other rights granted by this resolution to the
registered ownexs of the Bond shall cease. The City may discharge its obligations
with respect to any Bond which is due on any date by providing to the Paying
Agent on ox before that date a sum sufficient for the payment thereof in fiill; or,
if the any Bond should not be paid when due, it may nevertheless be discha,rged
by providing to the Paying Agent a sum sufficient for the payment thereof in full
with inte�est accrued to the date of such deposit. The City may also discharge its
liability with reference to all Bonds which are called fox xedemption on any date
in accordance with their texms by depositing funds with the Paying Agent on or
befoxe that date in accordance with their terms by depositing funds with the
Paying Agent on or before that date,in an amount equal to the principal,interest,
and pxemium, if any, which are then due thexeon, provided that notice of such
redemption has been duly given. The City may also at any time dischaxge this
issue of Bonds in its entirety, subject to the provisions of law now ox hereafter
authorizing and xegulating such action, by depositing irrevocably in escrow,with
a bank qualified by law as an escrow agent for this purpose, cash or United States
government obligations which are authorized by law to be so deposited, bearing
interest payable at such times and at such rates and maturing on such dates as
. shall be required to provide funds (without an reinvestrnent) sufficient to pay all
principal, intexest and premiums, if any, to become due on all Bonds on and
before maturity, or, if a Bond has been duly called for redemption, on or befoxe
the designated redemption date.
9.8. Tax Matters: Certification of Pxoceedings and Miscellaneous.
9.8.1. Tax Matters. The City covenants and agrees with the registered ownexs
from time to time of the Bonds that it will not take or permit to be taken
by any of its officers, employees or agents any action which would cause
the intexest on the Bond to become subject to taxation under the Internal
Revenue Code of 1986, as amended (the "Code"), and applicable
Treasury Regulations (the "Regulations"), and covenants to take any and
all actions within its powers to ensute that the interest on the Bond will
not become subject to taxation under the Code and the Regula.tions. The
City will cause to be filed with the Secretary of Treasury an information
reporting statement in the form and at the time pzescribed by the Code.
9.8.2. The Mayor and City Manager, being the officers of the City charged with
the responsibility for issuing the Bond pursuant to this resolution, axe
authorized and directed to execute and deliver to the puxchaser thereof a
certificate in accordance with the provisions of Section 148 of the Code
and Sections 1.103-13, 1.103-14 and 1.103-15 of the Regulations, stating
the facts estima.tes and cixcumstances in existence on the date of issue
and delivery of the Bond which make it reasonable to expect that the
proceeds of the Bond will not be used in a mannet that would cause the
364
Bond to be arbitrage bonds within the meaning of the Code and
Regulations.
9.8.3. The City recognizes its obligation to comply with the provisions of
Section 148(� of the Code relating to the rebate of certain amounts to
the United States, and covenants that it will take or refrain from any
actions, the result of which would be to cause the intexest on the Bond to
become subject to federal income taxation as a result of the failure to
comply with Section 148(� of the Code and applicable Treasury
Regulations. The City will take all actions necessary to comply with the
rebate xequirement, including making or causing to be made the
computations of rebate or penalty amounts. The City will make any
payments of rebate or penalty amounts, and will pay the costs of
computing any such rebate or penalty amounts.
9.8.4. It is hereby determined that the Bond is not and will not be "private
activity bonds" as deftned in Section 141(a) of the Code, and in support
of such conclusion the City Council covenants, represents, and certifies
as follows:
9.8.4.1. none of the pxoceeds of the Bond will be used, direcdy or
indirecdy, or will be used to replace fiznds which were used, in
any ttade ox business carried on by any person other than a state
or local governmental unit;
9.8.4.2. no direct or indirect payments of the principal of or interest on
the Bond will be derived from payments (whether or not to the
City), in respect of property, or borrowed money, used or to be
used for a private business use by any person other than a sta.te or
local governmental unit;
9.8.4.3.none of the pxoceeds of the Bond are to be used direcdy or
indirecdy, to make or finance loans to persons othex than a sta.te
or local governmental unit;and
9.8.4.4.no user of any facilities or improvements financed with the
proceeds of the Bond will use the same on any basis other than
the same basis as the general public;and no person othex than the
City will be a user of said, facilities as a result of(i) ownership; (ii)
actual or beneficial use pursuant to a lease or a management or
incentive payment contract;or (iu) any other a.rsangement.
9.8.5. The City reasonably anticipates that the amount of tax exempt
obligations which will be issued by the City and all entities subordinate
to, or treated as one issuex with, the Ciry during calendar year 2009 will
not exceed$30,000,000. The Bond is hereby designated as "qualified tax-
exempt obligations" within the meaning of Section 265(b)(3) of the
Code. The City does not reasonably expect that it or any subordinate
entity will issue, and will not request any other governmental entity to
issue on its behalf, in calendar year 2009, more than $30,000,000 of
obligations which it or any such entity could designate as "qualified ta�c-
exempt obligations".
9.8.6. If the City agrees to comply with all provisions of the Code,which if not
complied with by the City, would cause the interest on the Bond not to
be tax-exempt in the hands of a holder who is a natural person,including,
if detertnined to be necessary upon advice of bond counsel, the payment
of any rebate amount necessity to preserve such tax exemption pursuant
to Section 148 of the Code. The City fuxther agrees: (1) through its
officers, to make such fuxther specific covenants, representations as shall
be truthful, and assurances as may be necessarp or advisable; (2) to
consult with bond counsel and to comply with such advice as may be
given; (3) to file such forms, statements, and supporting documents as
may be required and to do so in a timely mannex; and (4) if deemed
necessary or advisable by its officers, to employ and pay fiscal agents,
financial advisors, attorneys, and other persons to assist the City in such
compliance.
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10. Princi�al Forgiveness. The City shall request to have up to 10% of the total principal
amount of the Loan forgiven by the District. The City officials are directed to cause the compliance
with the following deadlines:
10.1. Submit complete plans and specifications fox the Project to the Department on or
before Octobez 1,2009;
10.2. Advertise for bids and open bids for the project in accordance with SDCL Chapter
5-18 on or befoxe December 10,2009;
10.3. Submit the bid of the apparent lowest biddex to the Department for review on or
before December 21,2009;and
10.4. Award construction contracts on or before January 15,2010.
11. Certification of Proceedin s. The officers of the City are authorized and directed to prepare
and furnish to the purchaser of the Bond certified copies of all proceedings and records of the
City relating to the authorization and issuance of the Bond and such other affidavits and
certificates as may reasonably be required to show the facts relating to the legality and
marketability of the Bond as such facts appear from the officer's books and records or are
otherwise known to them. All such certified copies, certificates and affidavits, including any
heretofore furnished, shall constitute representations of the City as to the correctness of the
facts recited thexein and the action stated therein to have been taken.
On the motion, all present voted yes;motion carried.
16t Reading- Ordinance No. 13-09. A first reading was held on Ordinance No. 13-09, an
Ordinance for a Conditional Use to establish an"Outdoox Sales"use on Lots 1 and 2,Block 3,
Moriarty Second Addition. Public Hearing.•June 23, 2009
1"Reading—Ordinance No. 14-09. A first reading was held on Ordinance No. 14-09,an
Ordinance rezoning Husen's Addition, excluding the North 272.8 feet of the East 815 feet;and Lot
1,Block 1, Husen's Addition all in the N 1/a of the N '/2 of the SE 1/4 of Section 22-T110N-R50W
from a Residence R-1A and R-3A District to an Industrial I-1 District. Public Hearzng.•June 23, 2009
House Moving= A public hearing was held on a house moving request from Roger Julian to move
a one-story house from Sioux Falls to a lot in Meyer's Subdivision,AKA "University Estates'. No
public comments were made. A motion was made by Bartley, seconded by McClemans,to approve.
All present voted yes;motion carried.
Safe Routes to School. A public hearing was held on Phase One (1) of the Safe Routes to School
Pxoject.
The Safe Routes to School program is a grant program providing communities with the opportunity
to encourage and improve safety for bicycling a.nd walking to school for gxades K-8. The goals of
the program are: to enable and encourage childxen,including those with disabilities,to walk and
bicycle to school;to make birycling and walking to school a safer and more appealing transportation
alternative, thexeby encouraging a healthy and active lifestyle from an early age;and to facilitate the
planning, development,and 'unplementa.tion of projects and activities that will improve safety and
reduce traffic, fuel consumption, and air pollution in the vicinity of schools.
The Safe Routes to School pxoject involves the "5Es": Education,Enforcement,Encoutagement,
Evaluation, and Engineering.
'I'he City of Brookings and Brookings School District have received a grant for the Phase I project
which includes infrastnzcture and non-infxastructure items with the City responsible for the
infrastructure items. Infxastructure items include bike lane sttiping,high visibility cxosswalks, and
stencil symbols with paint for all designated routes,bike racks and bike route signage. The
infrastructure projects are planned neax the Mickelson Middle School and the new Camelot
Intermediate School.
The City of Brookings received$72,690.00 in infrastructure funding and the Brookings School
District received$21,181.25 in non-infrastructure funding,with 100%of said costs coming from
Federal Highway funds. The City will be responsible for payment of the costs associated with
36 �
infrastructure with xeimbursement of said costs being 100% eligible up to the awarded amount. The
City has nine months to sta.rt the project and two years to complete it from the date of the notice to
proceed,which was February 18, 2009.
Public In�ut: The City began the public input process regaxding the Phase I route by hosting a
public hearing at the May 14, 2009 Traffic Safety Committee meeting. Appro�rimately a dozen
citizens attended the meeting to offex input on the bike routes. A notice along with the proposed
route and striping options was mailed to the property owners abutting the pxoposed route.
There are essentially three options for the bike routes: 1) Sharrow: stencil and signage,2) Shared
parking/bike lane: stencil, signage, striped bike lane (keep paxking�,and 3) Exclusive bike lane:
stencil, signage, striped bike lane (remove paxkin�.
Public Hearinn. Gary Foo.r, 1032 1S`b Street South, objected to leavingparking inplace and cmu�ding thepath into
the center of the.rt�et. He rvas urilling to.rupport parking on the.routh�ide of>Stb Avenue bet�een Medary and the
school. He.rugge.rted another opportunity may be on the north�ade of 1 S`bAvenue. There'.r no development and he
.rugge.rted contacting land ownerr about running a bike path the entire way and al.ro have a�ide�valk.
Dan Tupa, 1302 17`b Avenue South, a.rked if.adeu�alk.r could be widened for a urider bike path on the ea.rt.ride of
17`b rather than�move parking. Sta�clarifzed that 4 foot wide.ridewalk.r are required in the development pry�jectf
Dave Karolc�ak, 930 17`�Avenue South, �vould prefer not to lose j�arking on the ea.rt.ride and is in favor of an eight
foot avide.ridewalk for that side of the strest where there'r only two driveway.r.
Ja.ron Owens, 1106 3'�Str�et, ha.r.r�oken rvith five regular adult bikerr and al!have e.x�erience tt�ith the danger of
not being.reen on a.ridetvalk. IY>ith the right education and rignage, ihe�i.r mom for bikerr nn the rt�et a.r�vell. He
i.r ha�ipy to.ree pmpo.ralr a�dealing urith area.r without many driveways or cros�ing.r. A.r a biker, he feel.r.rafe on
.rtreet.r and trailc, but not on�idewalks. Carr turning tend not to.ree biker.r.
Public hearing closed.
Council Discussion: The Council did not make a motion to approve. There was concern that the
Traffic Safety Committee had not voted to provide its recommendations.
As for timing, the project needs to occur in this calendar year. The city must initiate the project
within nine months from norice to p�oceed,which was February 2009,making the deadline
November. Then the City has two years to spend the funds. With this project the infxastructure
items are striping. Additional legal notice steps are also involved including notices to the utility
company within the right-of-way and submissions to the state 60 days before bidding the project. In
order to begin construction this year, September would be the earliest. The definition of"starting
the project"is unclear. The school has ordered some of the equipment,which might qualify as
starting the project. Staff requires a road by xoad recommendation from the Council in ordex to
proceed.
T'he Council's biggest concern was congestion on 17�'Avenue South. The City Manager and staff
were directed to obtain the Traffic Safety Committee's recommendations and bring this item back
for Council discussion and possible action at the June 23�meeting.
Malt Beverage Alcohol License Renewals. A public hearing was held on Annual Malt Beverage
Renewals: On-Off Sale Malt: Gonz Production,Inc. (Main Street Pub),408 Main Ave.; Old
Sanctuary, 928 4�`St.; Guadalajasa,Village Square Mall#1;Skinner's Pub 300 Main Ave.;
Cottonwood Coffee Inc., 1710 6�'St.;King's Wok, 1819 6�'St.; George's Pizza&Steakhouse, 311
Main Ave.;Danny's, 703 Main Ave. So.;BraVo's, 610 Medary Ave.;Pizza Hut,418 6�'St.;Oly's
Neighborhood Pub & Grill, 725 Main Av. So.;Ray's Corner, 401 Main Ave.; Carpy's Pub, 700 22°a
Ave. So.;Edgebrook Golf Couxse, 1415 22°d Ave. So.;Halstead's Natuxal Bakery&Restaurant, 417
Main Ave.;Si�cth Street Diner,223 6�'St.; South Main Diner, 615 Main Ave. So.;Casino 2000, 622
25�'Ave.;The Shamrock, 1104 22°d Ave. So.;Hagman's Bakery, 307 &311 3`�St.;Swiftel Center,
824 32"�Ave.;PNP Pub,318 2°a St. So.; Schoon's PNP Pub South, 1203 Main Ave. So.;Cubby's
Sports Bar& Grill, 307 Main Ave.;Bxookings Softball Assoc. (Southbrook Softball Diamonds),
2800 22°d Ave. So. Packa.ge Beer(off-sale): Jim's Tap, 309 Main Ave.;Sully's Irish Pub, 421 Main
Ave.;Schoon's Pump-n-Pak,202 S. Main Ave.; Gas N More, 600 6`�' St.; CPI (dba Zip Trip), 1005
6`�St.;CPI (dba Zip Trip), 3045 LeFevre Dr.;BP of Brookings Inc., 2420 E. 6�'St.; Casey's General
Store, 534 22"d Ave. So.;Casey's General Store, 620 8�' St. So.;Casey's General Stoxe, 122 West 6�'
St.;Newman's Kerr McGee, 503 6�'St.;Hy-Vee Food Store, 700 22°d Ave.;Hy-Vee Gas, 716 22nd
3s �
Ave. So.;Wal-Mart Stores, Inc., 2233 6`'' St. Public hearing— no te.rtimony. A motion was made by
Whaley, seconded by McClemans, to approve. All pxesent voted yes;motion carried.
Resolution No. 50-09—Stteet Assessment A public hearing was held on Resolution No. 50-09,
a proposed Resolution of Necessity Street Assessment Project 2009-04STA. No public comments
were made. A motion was made by Bardey, seconded by McClemans, to approve. All present
voted yes;motion carried.
Resolution No. 50-09
Resolution of Necessity
Street Assessment Project 2009-04STA
Be It Resolved by the City Council of the City of Brookings, South Dakota,as follows:
The City Council of the City of Brookings hereby declares the necessity of paving with a bituminous
wearing surface on an asphalt stabilized base couxse on an alley as follows:.Alley between 11�'
Avenue and 12`''Avenue and 1S`Street and 2°d Street
1. The general nature of the improvement is above set forth and reference for details is hereby
made to the drawings and specifications prepared by the City Engineer and on file with the
Ciry Clerk.
2. The material to be used is asphalt for paving of the alley: One and one-half inch (1 '/a")
asphalt surface course on a one and one-half inch (1 '/2") asphalt stabilized base course on a
six inch (6") crushed gravel base course for the alley.
3. The improvement is substantially unifoxm. The estimated cost is $76 per linear foot of alley.
The estimated cost per lineax foot of alley for paving with one and one-half(1 '/z")
bituminous mat on a one and one-half inch (1 '/z") asphalt sta.bilized base coutse on a six
inch crushed gravel base course to be paved to a width of 18 feet is $76.00 or$38.00 per side
of alley.
4. A description of classes of lots to be assessed is as follows: All assessable lots and tracts of
land lying contiguous to the alley hereinabove described.
5. The method of apportionment of benefi*_s is as follows: The cost thereof to be assessed
against all assessable lots and tracts of land according to the benefits determined by the
governing body to accrue to all such lots and tracts from the construction of the
itnprovement. The assessment may be paid ovex a five-year period and the interest to be
charged on the unpaid balance shall be 10%.
6. The above described improvement shall be hereinafter referred to as Street Assessment
Project No. 2009-04STA,which shall be deemed a description of the improvement of the
streets as hereinabove set forth.
Work blan for the 34`''Avenue and 20`� Street Im�rovement Over�ass Project Weldon said
the purpose of the Scoping Document is to set forth some strategies and action steps for proceeding
with this pxoject. It has been reviewed by the East Brookings Business and Industry Councit as well
as the Brookings County Commission and it was sent to the City Council for review last month.
Staff requests the appointment of two members of the City Council to the intexgovernmental ta.sk
force. Such action will give staff direction to pxoceed with implementing the project. As a
reminder, this item is Number 3 in our 2009 Strategic Plan.
The County Board has endorsea the Scoping Document and thus approved the eight items. They
have appointed Commissioners Santema and Falken to the task force. Following Council approval,
this document will be forwaxded to the Board of Superviso�s of Aurora and Trenton Townships.
Staff support for this project will have Community Development Director Mike Struck as the
project manager with assistance fxom City Engineex Jackie Lanning fox the initial project
development pliase. As the project transforms into the construction phase in the future,Jackie
Lanning will become the project manager.
36 �
May 6,2009
TO: Mayot and City Council,City of Brookings
Board of Commissioners,Brookings County
East Brookings Business and Industty Association
FROM: Ciry Manager Jeffrey W.Weldon, City of Brookings
RE: PROJECT SCOPING DOCUMENT
34`}'/473�Avenue&20�'/214 Street Improvement Project
The purpose of this memo is to quantitatively define the abovementioned pxoject and describe the
process by which I am suggesting we proceed toward full implementation. It is intended to be a
discussion document among the interested parties listed above as well as adjacent property owners
and government xepresentati.ves of Trenton and Aurora Townships. I would like to invite caxeful
review and evaluation of this document as a means of helping to develop a general consensus of
adopting a process by which construction and financing of the project can commence.
Project Descri�tion. This ttansportation improvement project involves the improvement of 34�'/
473`d Avenue from Highway 14 south to SD 324 (I-29 exit 127� (Elkton/Sinai exit). This roadway
has not yet been designed but could envision being two-lane traffic with a center third lane for left
turn purposes. Curb-gutter-storm drainage utility may be required in certain segments of project
while other sections may be left to rural standaxd design.
A gravel surface currently exists from Prince Drive south on 473`� for approximately two miles to
32nd/ 215�'Stxeet where it convexts to an asphalt surface (CR 21) south to 217�`Street. It should be
noted an interstate overpass exists at 32"d/215`�Street but it is not a ramped interchange.
The second section of the project involves the extension o£20�`Street South, south of Edgebrook
Golf Course easterly,installation of an interstate overpass,and consttuction of 214�'Street aligned
with the overpass to an intetsection with 473`�St. The question as to whether the interstate cxossing
is to be limited to an overpass or be a complete interchange with access ramps to/from the
interstate has yet to be determined. Perhaps the best solution for the immediate plan is for an
overpass with the ability to be expanded in the future as traffic counts warrant for ramps making it a
full or partial interchange.
Significant right-of-way will need to be acquired and substantial overhead electrical utilities will need
to be re-located as part of this project. Adjacent land uses along the routes axe various combinations
of commercial,industrial,agriculture,and mining.
The City of Brookings will be undertaking a portion of this pxoject in 2010. This project will
involve surfacing of 34�'Avenue from Highway 14 to Prince Drive. It is envisioned the scope of the
full project would actually begin at Prince Drive proceeding south.
�tatement of Need for the Project. The purpose of the project is to more efficiendy move ttaffic
around the City of Brookings to more efficiendy accommodate daily commuter traffic between
expanding industtial axeas on the east as centers of employment, and the residential areas on the
south and west in Brookings.
Currendy,the primary traffic route is US Highwap 14 (6`"Street);a five lane-divided highway
serviced by a full interstate interchange at Exit 132. Twelve hour vehicle counts for 6'�Street at the
I-29 off-ramp are approximatelp 14,700 east-bound and 12,3QQ west-bound. This off-ramp
intersection currendy operates at a LOS (Level of Service with designations A-F with F being worst)
of`F'both a.m. and p.m. peak times. Twelve hour vehicle counts for 6`�Street at 34`h Avenue area
approximately 7,400 east-bound and 4,100 west-bound. This intersection currendy operates at a
LOS of`C'in the a.m. peak time and`F' for the p.m. peak time.*
Signalization improvements are scheduled for 6'"Street at the ramp and at 32"d Avenue in 2010 with
the possibility of additional signalization at 34�`Avenue beyond that rime. While such
improvements will help,they will not solve the traffic management pxoblems currendy experienced.
According to an informa12007 survey, there were approximately 2,500 employees that work at the
businesses in the Te]kamp Industrial Park. New businesses and business expansions have
unquestionably increased that number since 2007. The maximum build-out capacity of this business
district could potentially double that amount in the future.What's more, the City's development
plans include approximately 85 acres of additional business,light industry and commercial
development to occur in this same axea north of Highway 14 further exacerbating the traffic
369
problems if the current situation is not resolved. This effort seeks to resolve the transportation
management issue in advance of it being needed by development.
Another advantage of the project is that it will accommodate an earlier exit for truck tra£fic heading
north on the interstate destined for the Telkamp Industrial Paxk by allowing them to e�cit the
interstate sooner at Exit 127 or the new E�ut ramp at 20�' Street South if it has an intexchange. By
doing this, truck traffic would have a viable traffic route along newly-surfaced 34`h Avenue. In
addition, this will eliminate dangerous tuming movements currently occurring on Exit 132 by
avoiding signalized intersections and the mixing of truck with vehicular traffic would be nin�-L�ed.
This would make this location much safer.
T'he completion of this projecr on the routes described will provide a ��ring-route"to more
efficiently and safely move traffic via an alternative roure connecting the same origins and
destinations; while providing a safer and more convenient route for rruck ua�c.
To summarize: the justification for the project is as follows:
1) Safety;reduce traffic congestion on Highway 14.
2) Safery;provide truck traffic an alternative route.
3) Promote economic development east of the interstate.
4) Provide an alternative transportation route to accommoda.te development patterns
presendy and prepare fox future development.
Work Comnleted to-date. The Ciry of Brookings has adopted the goal of undertaking a traffic
study on this project as part of the City's strategic plan fox 2008. That goal was accomplished with
the completion of a Traffic Impact Study by HDR Engineering of Sioux Falls. This project was
financed by a combination of the City of Brookings,Brookings County,and sevexal private
businesses comprising the East Brookings Business and Industry Association. Z"his study will serve
as a vital tool to the success of the project.
Secondly, the City of Brookings adopted the goal of taking this pxoject to the next level as part of
the City's strategic plan fox 2009. This Scoping Document is the basis for initializing this part of the
strategic plan. This will involve formulating an intergovernmental partnership between the City,
County,and Aurora and Trenton Townships as well as the private businesses and property owners
affected by the project. This process will then identify the political,legal, financial,and practical
considerations that will go into accomplishing this project.
Third,Brookings County has completed,with the consent of the two affected townships, the
process of a"turn-back"whereby 473�Avenue will transfer jurisdictions from the two townships to
Brookings County to become County Road 21. This will be a crucial step in making the project
eligible for fedexal funding.
Estimated roject cost and schedule. The total scope of the pxoject is projected to cost�8
million to$11 million depending upon whether or not a full interchange is built now or in the future
at 20`�`Street South.* Clearly, this cost is beyond the scope of local government's ability to finance
exclusively. Annual allocations of City and County STIP funding will be woefully inadequate to
accutnulate to a level of financial feasibility. State and fedexal funding will be necessary to
accomplish this project.
The schedule is much more speculative. Since federal funding will be required,it is likely to take
several years of substantiated lobbying for this project to be included in a federal transportation
appropriation. Some fedexal ttansportation appropriation bills are renewed every five years so
timing the submittal of an application with congressional consideration of legislation will be vital.
Work to be undertaken. I would like to suggest the foIlowing steps be taken during 2009-10:
(1) Form a local task force to research,promote,and lobby the issue-A community-based
partnexship should be formalized that would be charged with a public education initiative to
build local support for the project as a major transportation infrastructute improvement for
the region. This coalition should include repxesentatives of the City of Bxookings,
Brookings County,Auxora and Trenton Townships,representatives of the East Brookings
Business & Industry Association, state legislators, and affected property owners. Technical
support would be provided by staff from the City of Brookings. This group should serve as
the collective voice in support of the project.
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(2) Inform state officials of the importance of the project-The task force should identify and
communicate the itnpoztance of the project to state legislatoxs, officials in the Dept. of
Transportation, Governor's Office, Governor's office of Economic Development,regional
development agencies,and the South Dakota,Congressional Delegation.
(3) Have the project included in the DOT STIP - Staff should research the means and process
by which the project is included in the Statewide Transportation Improvement Plan (STIP)
and work to accomplish that objective. The nvleage distance of the project will need to be
added to the County mileage STIP inventory.
(4) Use traffic study to pxe-engineez the pxoject-Info�nation in the HDR traffic study will
provide the basis for justifying the project. Paxcels will need to be identified where
additional right-of-way will be required.
(5) City should continue with initial improvements -City of Brookings should complete the first
section of this project as scheduled (2010) of reconstructing 34�'Avenue from Highway 14
to Prince Drive;and work with DOT on signalization improvements on Highway 14. '
(6) Development of East I-29 district master development plan-City of Brookings should
undertake a district plan encompassing the total build-out of the Telkamp Industrial Park,
Weise Business Park, currendy-vacant DOT property,the Larson Ice Arena and Swiftel
Center properties, as well as adjacent areas identified in the City's Compxehensive Plan that
could be considered in the same region.
("7) Initiate and sustain congressional contact for fundi.ng-The local task force should begin in
earnest to communicate with the state's congressional delegation for a direct federal
appropria.tion for the project.
(8) Initi.ate discussions with Canadian Pacific Rai]xoad-The Bxookings rail Authority should
begin discussions with Canadian Pacific railtoad on future upgrades/cxossings at 34`�
Avenue.
Failure to act. If we, as a community,do not seize the initiative to accomplish this project,the
following scenarios are likely to occut: Txaffic congestion will worsen on Highway 14,making the
interchange at I-29 and 6�'Street east a hazardous street;Traffic delays will incxease as the signals
become insufficient to manage the peak traffic demands, especially around the hours of 8:00 a.m.
and 5:00 p.m.;Traffic congestion will be compounded by a marked increase in truck traffic through
this same area as an ingress/egress to the industrial park, even backing-up the interchange ramps.;
and with traffic congestion,commercial development in.the Telkamp Industrial Park,Weise
Business Park,and DOT property will be stalled.
I invite review and comment on this Scoping Document and that we collectively begin working on
the eight steps outlined above. Je�'r y W. Wleldon, City Manager
ACTION: A motion was made by Bartley, seconded by Whaley, to adopt a work plan for
the 34`�Avenue and 20`� Street Improvement Overpass Project. All present voted yes;
motion carried.
Railroad Crossing Arm design ot�tions for Main Avenue A motion was made by Reed,
seconded by Whaley,to approve the three-lane street configuration (two north-bound lanes and one
south-bound lane) with no center median: the south-bound traffic would utilize one lane of traffic
and the north-bound traffic would be similar to the current situation: the left-turn turning
movements will not be changed. .All present voted yes;motion carried.
I�terviewing�Council A�plicants. Three Brookings residents submitted applications for the
vacant City Council position: Gregg Jongeling,Harrison Thompson and Jael Trieb. Each applicant
was given an opportunity to make a presentation and respond to Council questions.
Action to a��oint a City Council member. Each City Council member was given a paper ballot
with all candidates names and were asked to vote fox one. Ballots were submitted to the City Clerk
and read publicly and recorded on a tally sheet. Council Members Beadichek and Bartley voted for
Gregg Jongeling. No Council Members voted for Harrison Thompson. Council members Reed,
Kubal,Whaley and McClemans voted for Jael Trieb.
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ACTION: A motion was made by Bartley, seconded by Whaley, to appoint Jael Trieb to fill
the vacant seat on the City CounciI for the term of June 23,2009 through May 1, 2010. On a
role call vote, all present voted yes; motion carried.
Appointment of De�uty Mav„or. A motion was made by Bezdichek, seconded by Whaley, to
approve Mike Bardey as Deputy Mayor for a tertn ending June 1, 2010. All present voted yes;
motion carried.
Adjourn. A motion was made by Bardey, seconded by Whaley, to adjourn. All present voted yes;
motion carried. Meeting adjourned at 738 p.m.
C�BROOKINGS
/�- �.�.��-
o� . F� Tim Reed,Mayor
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9
�'�ho�ie City Clerk
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