HomeMy WebLinkAboutCCMinutes_2009_07_14 392
Brookings City Council
July 14, 2009
The Brookings City Council held a meeting on Tuesday,July 14,2009 at 5:00 p.m., at Ciry Hall with
the following members present: Mayor Tim Reed,Council Members Julie Whaley,John Kubal,
Mike McClemans,Mike Bartley,Jael Trieb, and Tom Bezdichek. Acting City Managez Jackie
Lanning, City Attorney Steve Britzman, and City Clerk Shari Thornes were also present.
R�search and Technolog„y Center Policv Discussion. Mike Struck, Community Development
Dixector, said the City's Research and Technology Center has a vacanty. A profile sheet of the R&
T Center has been cxeated and contacts have been initiated with GOED,BEDC,Enterprise
Institute, and SDSU Graduate School. In light of these initial contacts, staff is asking the Council to
revisit the R&T Center Council Policy Statements adopted on February 11,2003 as a means of
discussion for further guidance on marketing the facility to prospective tenants.
A brief history of the R&T Center reveals economic assistance was provided by the Economic
Development Administration (EDA) in the forxn of a grant for the construction of the facility. The
Financial Assistance Award documentation from EDA xeferences the R&T Center as an
agriculture business and research incubator;however, additional amendment letters reference it as an
agriculture business and reseaxch center. The Council Policy Statements describing the facility are
consistent with the amendment documentation.
Staff discussed the facility with John Zender, EDA Regional Representa.tive covering South Dakota,
Colorado,and Utah. During the discussion,EDA referenced the facility as an incubator based upon
the application submitted. However,EDA did not feel the facility is being utilized as a true
incubator whereby tenants graduate out of the faciliry every 3-5 years. EDA's impression of the
facility is more as a commercial/business office building. In addition, sta,ff discussed the changing
dynamics of the community since the time of construction of the facility and how the various
developments provide complimentary as well as competing services. EDA concluded the
conversation by asking the City to determine what is the best use of the facility and then request a
change of scope for the facility.
Through additional xesearch,it has been determined that EDA placed a lien against the property on
which the R&T Center is located. The lien is typical with projects that receive federal assistance.
The lien was filed with the Brookings County Register of Deeds on December 1, 1997. The lien
exists for 20 years from the date of recording. The purpose of the lien is to ensure the property
receiving assistance executes the intended purpose of the facility for the useful life of the project (20
yeaxs for building projects). Exceptions are available after 10 years with written appxoval from
EDA.
Options to Consider:
1. Change or expand the focus of the R&T Center from an agriculture based reseatch a.nd
technology business center to a general business/office building. Futuxe tenants could be public,
private, or non-profits. EDA approval is required to change the scope of the project. City
policy statements for the R&T Center would need to be amended to be consistent with the
expanded focus.
2. Offer the facility fox sale. City would need to have an appxaisal performed on the facility. The
City would need to reimburse EDA an amount computed by applying the Federal percenta.ge of
participation in the cost of the original project to the proceeds from the sale, or the appraised
value,whichever is higher (after deducting actual and xeasonable selling and fi�c-up expenses
from the sales proceeds). EDA appxoval is required to change the scope of the project. EDA
may require proceeds to be utilized in another economic development/impact project.
3. Transfer the facility to another public or non-profit organization to opezate the facility. The
recipient would be bound to the oxiginal grant agreement until such time as the lien expires or
recipient tequests an exception. EDA approval is required to change the scope of the project.
4. Continue to operate the facility as is with a focus on agriculture based research and technology
businesses. This xestricts the types of tenants that can locate in the facility as well as competing
with othex facilities receiving City investment.
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Struck indicated staff's recommendation is to pursue Option 1 and expand the focus of the R&T
Center to become a general business/office building. T'his option allows greater flexibility in
maxketing the facility to potential tenants. Staff would further need to request a change in the scope
of the facility from EDA.
. Council Di.rcu.r.rion. Beed a.rked if the change in name included.rcope. Struck.raid no, it sva.r ju.ct a name change;
hozvever, thi,r i,r al.ro a reduction in the original project from 60,000.rq.ft. to 30,000 tq.ft. EDA apj�roved the
.cmaller facility.
Whaley a.rked if the rates�vould be adju,rted if the policy alloived forgeneral bu�ine.r.r rental.r. Struck noted a handout
with eacam�ile rate range.r ad u.rted annually.
Kubal a.rked if there would be any other re.rtriction.r ifgeneral o�"'zce lea.ring.rpace u�a.r allowed. Struck,raid retail u.res
wouldn't fit�vith e.xi.rting tenant.r. He.raid a more e.rtabli.rhed bu.rine.r.r without re.rearch or technodogy component.r
could po.rrzbzlity fit. However, ba.red on the buidding'.r de.rign, .rome r�novationr would be nece.r.rary for any bu.rine.r.r, of
�vhich the tenant would be r�.rpon�ible for. The czty may be lzmited if the tenant i,r not�villing to make the
improvement.r. The only retaillbo.r.ribilitie.r rvould be.rmall.rcale, .ruch a.r vet.rupplie.r.
Kubal que.rtioned if allouring office.rpace u.re�vould be in competition zvith the private.rector, noting there are privately
owned office.rpace.r currently vacant in town. Struck.raid that is a risk and al.ro rvhy the city mu.rt examane the rate
.rchedule. If a more e.rtablirhed bu.rine.r.r i.r relocating in town or is coming frnm outside of torvn, the rate.rchedude would
need to be negotiated. Keduced rate rtrrscture.r would not be offered to every type of bu�ine.rr It i.rgeared to.rtart-up
bu.rine.cre.r.
Mayor Keed noted that under the�i�vious management.rtructure, the Multiplex Board had contml of the I�d�'T
Center and the rent wa.r an income.rource for the Multplex(Surifte!Center). Jackie L.anning, City Engineer, .raid
the centergenerate.r appmxzmately,�'200,000 annually and,$145,000 i.r tran.rferred into the City'.r General Fund
and the remaining i.r u.red to maintain the building.
Beed noted that it'.r not technically an incubator and if the city i.r ju.rt renting out.rpace it could be in competition tvith
the private.rector. To be an actual incubator, it won'tgenerate that type of income and the City may need to decrea.re
it,r income exUectation.r. Strrtck noted that�vhen the facility wa.r con.rtructed ther�weren't any dike it, but no�v therr
are.
McClemans a.rked if the City could keep the Center full and,rtill compliment the Innovation Campu.r'r�ort.r or
zvould the City be in competition rvith the Innovation Campu.r? Struck.raid the City zvould be com�beting for the same
tenant.r Hoivever, the Bd�'T rate.r are below that of the Innovation Campu.r and Bmoking.r Bio.rpace Facility, .ro the
I�e�'T Center could be a frr.rt.rtep to get.rtarted and eventually graduate to the Campsr.r.
Beed al.ro noted that the incubator.rpace in the Innovation Center rvill o�'er mor�.reryice,r and.rupport for a.rtart-up
than the Bd�'T Center. When a burine,r,rgraduate.c from the Innovation Center, they rnay need a le.r.r e.x�en.rive option
such as the Rd�T Center for.rtart-up. The Center only pmrride.r a,rhared common.pace.
Be�dichek.raid he thought the Kon Aeed Center wa.r currently owned by the City and�vould be conveyed to the EDC
�vhen the loan i.r paid and he a.rked avhen that would take place. Struck said the proce.r,r ha.r been completed and the
City i,r managing the facility. The EDC wa.r the original entity that put that Center together, butgot the deed back
when the loan�va.r paid. When the facility wa.r sold to a private developer, the EDC retained the money and they.rtill
have it.
Betidichek a,rked whatpercentage of the KdrT Center wa.r currently vacant. Struck.raid appmximately 25% (7,000
.rq.ft. of the 26,000.rq.ft. buildin�.
Bartley commented that there have been.rome i.c,rue.r pertaining to that facility a.r a revenue source to the Swiftel Center.
The gue.rtion i.r doe,r the city want the facility to be an incubator center or a revenue.rource. A.r a revenue.rource, the
City compete.r u�ith theprivate.rector. But, it'.r a�ro d�cult to lo.re any revenue.rource. He a.rked if ther�wer�any
opportunitie.r for trade wvith the County and then utilitie the County'r,rpace for the S�viv jted Center°r need�: In that
.rcenario, the City zvould lo.re income butgain.rpace for the Suriftel Center. He a.rked if there were any EDAgrant
legalitie.r tied to the Bd�T Center. Strr.rck said that i.r an option the City could e.xj�lore. He did check with the
EDA about another non pmfit orgovernment u.nng the Center. Struck.raid the City mu.rt deterrnine the be.rt u.re, and
a,r long a.r it can.rho2v economic impact, the EDA could,rupport it. The EDA understand.r how the dynarnics have
changed and they have an inve.rtment in another facility so they'd like to.ree it.rucce.r.rf'ul as�vell.
Bartley didn't think Option ##4 sva,r good, but O�ition #2 had,rome merit but the czty�vould have to rr�ay the EDA
.romehow. He a.rked if the City coudd retain any revenue in the.rale to o�.cet income lo,r.re.r.
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Keed.raid the deci.rion come.r down to whether the City tvant.r to lo.re revenue or not.
BeZdichek.raid that Brooking.r ha.r evolved and doe.rn't believe this is a busine.r.r the City.rhould be involved in. He
feel.r the City ha.r done a lou.ry job in managing the facility and a bu.nne.r.r could have done a betterjob. He'd.rt�n�
like to.ree the City consider selling the facility and repay the loan. He doe.rn't believe the City would lo.re all that
revenue becau.re tho.re entitie.r zvill go.romewhere el.re in tolvn and generate.rale.r tax and svage.r revenue.At the time of
the�n�.eed Center and Agri-Plex, the incubator made.ren.re. Hou�ever, he oppo.re.r continuing on thi.r track becau.re
there are many other entitie.r capable of pynnviding thi.r.reruice. He recommended.relling it and if the City broke even,
that svould be.ruitable.
Reed a.rked BeZdichek if he'd.rupport tran.rferring to anothergovernmenta!entity? Be�dichek said he.rupported
Option #2 for an outright sale and not Option #3, which would n,rult fn another non profzt orgovernmenta!u.re that
�vould.rtill take the building oj�the tax role and compete lvith the private,rector.
Kubal.raid it appearr that the Cily can't ju.rt.rell the facility. The EDA may require the j�rnceeds be utiliZed in
another economic development im,pact p�nject. The City may be�quired to.rtart.romething similar to zvhat it's getting
out of. Struck re,ponded ye.r, there is that potential. The City lvould be r�quired to repay the EDA ba.red on current
fair market value and original financial particzpation rate of the p�nject(20% of the pmject), le.r.r the co.rt.r of.relling the
proper y and irr�mvement.r. At minimum, 20%of the current fair market value u�ould have to be repaid to EDA.
There are guideline.r that,rtipulate horv any.ra1e proceed.r are to be u.red, .rpecifically for reinve.rtment in another
economic impact community prnject.
Bartley a.rked if the remaining 80%would be the City'.r if the EDA doe.rn't require r�payment of original amount.
Could the City ninve.rt that 80%a.r they.ree fit�W/hat ir that amount? .Struck,raid he didn't knorv the building'r
cssrr�nt apj�raised value. The original grant zva.r,�500,000 and he antzcipate.r the curr�nt fair market value�vnuld be
higher than that.
Keed.rugge.rted the Council may wantAl Heuton'r opinion. Mr. Heuton i.r the Bmokings Economic Development
and Chamber of Commerce Executive Director.
McCleman.r.raid it may be more of a question af the City ha.r a need for the building.
Whaley.rugge.rted that the firrt thing that.rhould be done i.r to get an exact apprai.rad.ro the Council knorur how much
the City svould have to r�pay the EDA. At that point, the Council rvould be better informed to make a decirzon on
the Center's fea�ibility.
Dan Han.ron,Planning dr ZoningAdmini.rtrator, li.rted the allo�ved use.r under the curr•ent BS�oning•o�"zce.r,
r�,rtaurant.r, and limited storage/warehousing. He noted that the bigge.rt concern u�ith the.rite u�a.r acce.rr. Until a
frnal decr.rion i.r made on the adjacent Dept. of Tran.rportation rite, acce.cr i.r que.rtionable.
Bartley a.rked if the County trade idea could al�o be e.x�ilo�c� He'd like to.ree the City Manager determine if the
.rpace i.r eqxa!to that of the County'c Swiftel Center.rpace.
If the tioning i.rn't proper, it could be changed for ne�v u.re.r It wa.r noted that the City own.r the land north of the
Bd�'T Center to Capital Drive. The value nf that!ot mu.rt al.ro be con.ridered unle.r.c the City plan.r to plat it and
r�tain for,rome other ure.
Bartley.raid he rva.r in favor of Ojition #3. �
Kuba!a.rked if someone would.rtill be liable for the original grant agreement, unless EDA would appmve a change in
scope of j�rnject. Struck.raid if the City transferr to another entity, they ivould have to tran.►f'er the entir�facility and
thatgovernmentad entity�vould be the.rub recipient and mu.rt follow the same grantguideline.r. Thi.r lien expire.r in
2017, and after that the oumer i.r fr�e to do whatever they rvant.
I�eed rpcapped, .rtating the City Council�vould like the City Manager to gather the follouring information and n�ort
back to the Council.• 1)Obtain an apprai.ral on the building'.r value, determine the r�venue lo.r.r impact.r, 2�
Invertigate what other entfties could use the facilities (i.e. other economic devedopmentgroup.r,public,private), and 3)
Determine option.r for refnve,rtment of the economic development fund.c if the City rvere to.rell to private bu.rine.r.r.
6:00 u.m. Meeting Review. Shari Thornes,Bxookings City Clerk,noted changes to the 6:00 p.m.
agenda.
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City Clerk Report Shari Thornes,Brookings Ciry Clerk,provided a briefing on upcoming
invitations and obligations.
Council To�ics. A motion was made by Bardey, seconded by Whaley, to request the City Council
review its policy on required packet support for first reading of planning commission items. All
present voted yes;motion carried.
6:00 P.M. REGULAR MEETING.
Consent A�enda. A coxrection was noted that the E911 appointment was as a full member and
not an ex-officio. Resolution No. 67-09 and Ex-Officio appointments were xemoved from the
Consent Agenda. A motion was made by Ba.rdey, seconded by McClemans, to approve the consent
agenda,as amended:
A. Action to approve the agenda as amended.
B. Action to approve the May 26 and June 23 City Council Meeting Mittutes.
C. Action on the following volunteer appointments: Catherine Grandorff to the Visitor
Promotions Committee term expires January 1, 2012,Kathy Heylens to the Brookings
Committee for People who have Disabilities term expites January 1, 2011, and Tony
Sonnenburg to the Traffic Safety Committee term expires December 31, 2010.
D. Action on Resolution No. 66-09, a Resolution Authorizing an Amendment to Change
Order No. 2 (CCO#1),2008-09STI Rio Grand, Napa Valley and Cumberland Court,
Valley View Phase I Project(Rounds Construction Co., Inc.).
Resolution No. 66-09
A Resolution Authoxizing an Amendment to Change Oxder No. 1 (CCO#1)
2008-09STI Rio Grand,Napa Valley and Cumberland Court
Valley View Phase I Project
Rounds Construction Co., Inc.
Be It Resolved by the City Council that the following change order be amended for 2008-
09STI Rio Grand,Napa Valley and Cumberland Court,Vatley View Phase I Project:
Constructi.on Change Order Number 1 (amended as follows):Change final completion
deadline from November 1,2008 to September 1, 2009.
E. Action on Resolution No. 69-09, a resolution in support of grant application to S.D.
Game, Fish& Parks for Federal Sport Fish Restoratian Funds to assist in facility
upgrades that enhance urban fishing opportunities at future nature park(old city lat�dfill
on South 22nd Avenue).
Resolution No. 69-09
Resolution in support of grant application to SD Game, Fish&Parks for Federal Sport Fish
Restoration Funds to assist in facility upgrades that enhance urban fishing opportunities at
future nature park (old city landfill on South 22°d Avenue).
Whereas, the State of South Dakota. Game, Fish&Parks,Dept. administers Federal Sport Fish
Restoration Funds, and
Whereas, these federa.l funds axe ava.ilable to eligible communities in South Dakota to assist in
the development of facilities that will enhance fishing opportunities in an u�ban setting, such as
accessible fishing docks,boat ramps, shoreline improvements and accessible parking, and
Whereas,the City of Brookings desires to make application for such designated funds for a
project that is estimated to cost approximately$225,000 on a 75-25%match (Federal-City) basis,
Now,There£ore, Be It Resoived by the City Council of the City of Btookings, South Dakota.
that it authorizes the application by the City for these grant funds, and further, that it is the city's
intent to provide the loca125%matching funds as required.
On the motion, all present voted yes;motion carried.
REMOVED FROM CONSENT• Resolution No 67 09—Bids. A motion was made by
Bartley, seconded by Whaley, to table action until July 28,2009, on Resolution No. 67-09, awarding
bids for 2009-09STI Riogrand,Napa Valley, Sonoma Valley&Cumberland Court Stteet Project,
Phase II,Asphalt surfacing, Grading, Curb & Gutter, and Utilities.
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A��ointments (Ex-Officio & E911�. A motion was made by Bartley, seconded by Whaley, to
approve the following appointments: Mike McClemans as a full voting member to the E911 Board,
Tom Bezdichek and John Kubal as ex-officio members on the Utility Board, and Julie Whaley and
Jael Trieb as ex-officio members on the Hospital Board. Di.rcu.r.rion: Bartley expre.r.red concern about a
�olicy on reporting for ex-o�'icio memberr and asked the City Clerk and City Mana$er to e.rtablish a reporting policy
for approval by the Council. All present voted yes;motion carried.
Promotion of Durable Medical Equi�ment Drive bv Brookings Committee for Peo�le who
have Disabilities.
2°a Reading—Ordinance No. 15-09—Game Birds A motion was made by Whaley, seconded by
Kubal, to approve Ordinance No. 15-09,an Otdinance Prohibiting the Keeping of Game Bixds in
the City of Brookings, South Dakota. Public Hearing-Jon Kieckhefer a.rked if there zva.r a j�roblem or af thi.r
u�a.r an ordinance for the.rake of an ordinance� He noted thatgame bird.r are already regulated by the State of South
Dakota and permit.r are required thmugh the state already. Dan Han.ron,raid the City iva.r approved by.romeone
svanting to rai,re game bird.r and there wa.r.rome confu.rion on zvhat sva.r dome.rtic fo�l by definition. Thi.r ordinance
puts the city's rztles on j�ar with the State'.r. All present voted yes;motion carried.
2°d Reading—Ordinance No 16-09—S�rinkling Rec�uirements A motion was made by
Batdey, seconded by Whaley, to approve Ordinance No. 16-09, an Ordinance Amending Article II
of Chapter 22 of the Code of Ordinances of the City of Brookings and Pertaining to the 2006
International Residential Code with Certain Amendments Thereto (this amendment pertains to
egress windows in sleeping rooms regardless of sprinkling requirements). No public comment was
made. All present vted yes;motion carried.
Resolution No. 68-09. A public hearing was held on Resolution No. 68-09,a Resolution
Deter+„ining the Necessity of Repairuig or Installing Sidewalks in the City of Brookings at the
Expense of Abutting Property Owners (2009-01 SWR Sidewalk Repair Project). A motion was made
by Whaley, seconded by McClemans, to approve. All present voted yes;motion carried.
Resolution No. 68-09
Resolution Deterr„in;ng�e Necessity of Repais7ng or Installing Sidewalks in the City of Bxookings
at the Expense of Abutting Property Owners
2009-01SWR Sidewalk Repair Project
Be It Resolved by the City Council of the City of Brookings, South Dakota, as follows:
1. It is hereby determined that sidewalk repaizs or installation is necessary abutting the parcels and
lots of land in the City described in the Notice to Property Owners attached to this Resolution and
marked as 2009-01SWR Sidewalk Repair Project.
2. Such sidewalks shall be to the width and of the ma,terials prescribed by Section 605 "Sidewalks"
and Section 741.3-16 of Ordinance No. 532 ent'tded"An Ordinance Providitng Rules,Regulations
and Standards to Guide Land Sub-division in the City of Brookings and Within Three Miles of the
City Limits Thereof' and to the grade and in accordance with the Plans and Specifications prepared
in the office of the City Engineer.
3. The City Clerk has caused a copy of the Resolution and a Notice to Property Owners to be
mailed to each property ownex by certified mail.
Brookings Ice Skating Association. A motion was made by Kubal, seconded by Whaley,to
remove the item from the table. All present voted yes;motion carried. Original Motion £rom June
23, 2009: "A motion was made by Bartley, seconded by McClemans to approve an Operational
Agreement between the City of Bxookings and the Brookings Ice Skating Associa.tion (BISA)."
AMENDMENT: A motion was made by McClemans, seconded by Bezdichek, to amend the
agreement to have the Red Rink for ice skating activities only. Di.rcu.r�ion: Whaley.raid ther�'c been a lot
of di.rcur�ion that skating�va.r the purpo.re of the red rink. Money ha.r been inve.rted by the czty and a lot ofprrvate
.rource.r She avant.r to.ree the facility and red rink lookinggreat and urill.rsp�iort the motion. Bartley cited hi.r desire
that it remain a multiple u.re facility. Betidichek noted that the City may need to come up�vith additional money for
tent r�nta�r if a large event requzre.r more.rpace and the r�d rink i.rn't available. On the amendment, all present
voted yes except Bezdichek and Bardey,motion caxried to amend. On the main motion as
amended, all present voted yes;motion caxried.
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OPERATIONAL AGREEMENT
By and Between the City of Brookings, as owner of the Larson Ice Center, and
Brookings Ice Skating Association (BISA), for the use and operation of the
Larson Ice Center
Section 1: Recitals and General Pur�ose
The Brookings Ice Skating Association (hereafter referred to as BISA),is a Brookings non-profit
organization supporting youth ice hockey. The City of Brookings, (hereaftet referred to as CI'I'I�,
and BISA have developed and maintained a progressive history and productive working relationship
cooperatively providing ice skating and hockey facilities and related programs serving the Brookings
community. To that end, this agreement shall set forth policies, terms and conditions for the use
and operation of the Larson Ice Center.
Section 2: Ownershi� of the facilit�
Both parties understand the Larson Ice Centex is owned and operated by the CITY through its
Parks, Recxeation, and Forestry Department;and that BISA is a facility user. CITY recognizes BISA
as being a primary user of the facility. The bu.ilding and all its perrnanent fixtures and equipment
shall be owned by the CITY except for those specifically noted as being owned by BISA. This
includes items and capital improvements purchased by BISA with the expxess purpose of
transferring ownership to the CITY.
S�ction 3: Persons res�onsible for administration of this agxeement
The CITY shall designate the Director of Parks,Recreation, and Forestry as the person xesponsible
for administration of this agreement and overall management of the facility. The Director shall
utilize CITY resources such as personnel and equipment as a means of administering this agreement.
The Director shall work with the City Managex on policy issues governing the facility and policy
issues shall be�eviewed and recommended by the Park and Recxeation Board. BISA shall designate
a contact person responsible for administration and enforcement of this agreement. From time to
time, CITY shall work with other designated BISA representatives depending upon the issue or
pzoject contemplated.
S�ction 4: Facilitv o�eration-general
The CITY shall be responsible to provide for the overall operation and maintenance of the facility
including: making it available to BISA, operational expenses,janitorial staff,maintenance,repairs,
and certain capitai impxovements. CITY agxees to have staff avaiiable whenever BISA activities are
occurring. Operational costs provided by the CI'I"Y apply to Section 5(a) [normal season] but does
not apply to Section 5(b) [summer ice and off-season] as pxovided for in that section. BISA shall be
responsible for promoting, organizing, financing,and supervising youth hockey prograrnzning in the
facility. Both parties recognize and acknowledge the facility is a multi-purpose facility and will
accommodate other functions such as SDSU hockey, open skating, fig�ure skating programs,adult
hockey,rentals,and other activities the CITY deerns appropriate upon review by the Park and
Recreation Board;with the exceprion of the Red Rink which shall be limited in its use to ice skating
activities only. In the course of its use,BISA shall unmediately xeport facility or building problems
to the CITY employee on duty.
S�ction 5: Facilitv Scheduling
5(a) Normal Ice Hockey Season
5(a)-1 For BISA youth hockey activities, the normal length of the season shall be October 23
through March 15 with modifications by mutual agreement at the end of each season. End of
season schedule modifications may be undex financial terms diffexent ftom the pre-determuied
schedule and negotiated on a case-by-case basis.
5(a)-2 A master daily schedule of all activities shall be maintained by the CITY. 'This schedule shall
be developed by mutual agreement between both parties prior to each ice hockey season with
scheduling for major tournaments and events as far in advance as possible. The schedule shall be
maintained on the BISA website and shall be final ten (10) days prior to the event. The BISA
hockey schedule shall include practices,games,tournaments, and special events for all youth age
levels. The CITY schedule shall include open skating, figure skating, SDSU hockey,and special
events deemed appropriate by the CITY. Both paxties agree to resolve scheduling issues in the spirit
of cooperation, compromise,and mutual respect fox each othets'programming goals. The CITY
and BISA agree to contact each other in advance of any requested schedule changes and additions,
including activities scheduled for times the ice axena is not open for public use. A flow chart of
39 �
communications will be developed by both parties indicating who the primary and secondary
contacts and responsible parties shall be for the items contained within this agreement. The goal of
scheduling shall be to provide reasonable opportunity for a broad range of activities,while
recognizing that youth ice activities are the priority use from October through March. On any
scheduling conflicts deemed irreconcilable, the City Manager shall have the final determination.
Both parties shall endeavor to maximize the scheduling to promote the most efficient use of
facilities possible.
5(b) Summer Ice Hockey Season and dry-land use
5(b)-1 The CITY shall provide the Red Rink and other amenities of the facility for summer ice
activities for youth from approximately July 20-October 23 for purposes of scheduling hockey
camps, skating clinics,leagues,games,practices, and tournaments; as well as dry-land practices.
Both parties recognize unanticipated issues such as mechanical problems and construction delays
may xequire an adjusttnent of this start date requiring each party to be fle�ble in scheduled activities.
A master daily schedule of all activities shall be maintained by the CITY. This schedule shall be
developed by mutual agreement between both parties prior to the season. The schedule shall be
maintained on the BISA website and shall be final ten (10) days prior to the event.
5(b)-2 BISA agrees to teimburse the CITY for the actual operational expenses of the facility for
utilities and labor. CITI'shall pro-rate expenses incurred during CITY activities on an houxly rate
detexmined as a percentage of total combined summer ice activity hours, such amount to be
deducted from the operational costs to be reimbursed to the CITY by BISA. Operational and
ma.intenance expenses of the holding barn shall be exclusively that of the CITY and not BISA.
Electrical.costs in 2009 associated with the construction projects shall be discounted from the
calculation.
5(b)-3 For 2009,BISA agrees to reimbutse CITY in the amount of$3750 toward equipment
maintenance e�rpenses of the facility duting this time period. These e�enses shall be charged on a
pro-rated basis for operational ovexhead expenses, equipment and builcling maintenance,repair, and
supplies for summex ice. Both paxties recognize the actual pro-rated cost of BISA usage for summer
ice is appro�matelq�7500 and BISA agrees to a financial inspection by the CITY of program
records whereby BISA shall pay toward the tota.l$7500 amount commensurate with the profitability
of the summer ice program beyond the base amount of the initial$3750. The equipment
maintenance program cost shall be evaluated pursuant to Section 17 annually and adjusted for the
subsequent yeax based on an average of the previous year. Said payment of the equipment
maintenance shall be due upon receipt of a billing statement by the CITY following completion of
the financial review of BISA's summer ice program.
�5(b)-4 BISA fuxther agrees to pay for one CITY employee fox actual time plus one hour per day for
BISA sponsoxed activities, at a rate of$11 per hour for 2009.
5(b)-5 BISA shall have priority of scheduling the Red Rink during the summer season, and shall be
entided to use the Blue Rink for off-ice (dry-land) activities subject to scheduling availa,bility through
the CITY. BISA agrees to work cooperatively with CITY in establishing a schedule for CIT'Y
programming that may be offered by the CITY during summer ice and dry-land activities. The
facility shall not be used for ice activities any time other than those scheduled each day on the
master schedule maintained by the City. BISA agrees to contact CITY regarding schedule changes.
5(b)-6 CITY shall schedule and furnish labor for any CITY-sponsored event. CITY shall reserve the
right to program ice and non-ice xelated activities including but not limited to open skating and
rentals.
5(b)-7 Janitorial clean-up of the facility after each event shall be the responsibility of the sponsor of
said event. To the extent possible, as time permits, the CITY emplopee on duty during a CITY or
BISA event shall perform routine general cleanup and janitorial duties except for the concession axea
which shall be the janitorial responsibility of BISA.
5(b)-8 CIT'Y shall provide open skating Wednesdays at a time to be determined during summer ice
and shall be considered a CITY recreation program with the CITY paying all costs and xeceiving all
revenue from said program.
5(b)-9 At the conclusion of each summer ice season,both parties shall each prepare an itemized
financial statement for the summer ice program as a means of making adjustments for the
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subsequent years progranunuig. The statement shall address,revenue, expenses, hours of use,
participants,pxogramining, economic impact, and other pertinent information.
5(b)-10 BISA agrees to provide to the CITY prior to the start of the 2009 summeY ice season, a plan
for improving the viability of the summer ice pYOgram which will be measured against the results of
5ro>-�.
5(c) Collegiate and semi-professional usage and scheduting of the facility
The scheduling and usage of all adult, collegiate and semi-professional games,leagues, and pxacti.ces
shall be the responsibility of the CITY. For special collegiate and semi-professional hockey events
including but not limited to tournaments,both parties may mutually agree to host or sponsor said
events on a case-by-case basis as needed. Specifically,BISA shall be allowed to sponsor an ACHA
collegiate hockey tournament in March,2010 under the terms of this sub-section.
Sect�on 6: O�erat�ona.l Donation for facility use
For use of the facility,BISA shall provide a lump sum operational donation to the CITY to help
defer operational and maintenance costs. T'his amount shall be negotiated between both parties and
paid no later than May 31 of each year.T'his donation shall cover the use during the normal season
as provided in Section 5(a). BISA compensation for use during suxnmer ice is described in Section
5(b). No hourly ice time rentals will be paid by BISA for their scheduled activities during the normal
season. The amount of this donation for the ensuing year shall be detexmined on an annual basis
after the season ends and prior to adoption of the City budget. The goal of this arrangement shall
be to maintain a reasonable level of financial investment in youth hockey by both parties.
Section 7•Association�rogram costs
All costs associated with operating BISA and promoting its pxogramming and activities shall be the
responsibility of BISA. The CITY shall not be responsible for any costs associated with the
operation,programming, or conduct of BISA.
Section 8• Cit�to�rovide o�exational service
CITY agrees to provide sta.ffing as needed at all ttmes the facility is open,and shall provide rink re-
surfacing service, facility maintenance and repairs, snow removal, fizrnishings,and utilities such as
gas,watex, sewer, electricity, and solid waste collection for the facility.
Section 9: Ca�ital im�rovements to facilit�
Both parties mutually agree that certain capital improvements to the facility will be needed from
time to time and axe mutually beneficial. Both parties further agree to shaxe in the cost of such
mutually-beneficial improvements commensurate with their respective benefit. All major capital
improvements shall be reviewed by the Park and Recreation Board and subsequendy approved by
the City Council. BISA agrees not to make any capital improvements, changes,modifications to the
facility without the consent of the CITI'.
Section 10: Concessions
CITY shall provide a concession stand for use by BISA as part of the facility. BISA shall own and
maintain all equipment associated with food preparation and concession sales. CITY shall not
provide any equipment, supplies,utensils, ox other items associated with the sale of concessions.
BISA agrees to secure any required licenses associated with food preparation and sales. BISA agrees
to adhere to all applicable food preparation and inspection regulations. BISA shall be responsible
for cleanliness and janitorial activities inside the concession stand and for the lobby service area at
the concession stand. BISA shall be entided to retain all revenue from the sale of concessions and
shall be responsible for all ordering,payments, and inventory associated with foodstuffs and other
items for re-sale.
Section 11: Pa�roll and staffing assistance
As a service to BISA and to help insure that all hockey coaches and paid staff are covered by
workers compensation and liability insurance, have adequate background checks, and have othermise
met all other payxoll requitements, the CIT'I'will allow BISA's coaching staff to be consideYed as
seasonal employees to be paid through the CITY'S payroll system provided BISA reimbutses the
CITY the total cost of wages and associated benefits of said seasonal employees. Fox the 2009-2010
season, CITY further ag�ees to pYOVide the first$4000 of wages/benefits to the coaching staff.
Section 12• Ec�ui�ment stoYa�e
To the extent availa.ble, and with the specific permission of each request, CITY agrees to make
certain areas of the facility available to BISA for storage of BISA-owned equipment and supplies on
�._ . _ , -5.-. � _— �
40 �
a year-round basis. Such stored items shall be owned by BISA and for the benefit of BISA and its
pYOgtams. For such equipment,BISA agrees to hold the CITY harmless for any loss, damage, or
theft of said equipment while in storage at the facility.
Section 13:Team changin��rooms
BISA agrees to be responsible fox geneYal clean-up of team changing rooms after each use. CITY
shall be responsible for janitoxial cleaning and sanitizing of team changing rooms.
Section 14: O�e�ation of building ec�uit�ment
Only representatives of the CITY shall be permitted to operate the ice re-surfacing machines and
equipment;and controls for the refrigeration,boilers, condensers, compressors, air handling, or
other equipment of the facility.
Section 15: Facility sec�uritv
CITY shall issue keys to certain BISA members on an as-needed basis. BISA and CITY shall
maintain a list of said persons having possession of keys. Only CITY authorized persons shall make
duplicate keys and BISA agrees not to make duplicate keys without the consent of the CITI'.
Section 16: Damages to_ faciliTv
BISA agrees to cooperate and assist the CITY in the investigation and prosecution of persons
causing damage to the facility.
Section 17:Annual evaluation and term of agreement
The term of this agreement shall be one year and subject to renewal as described in Section 27 and
amendments as described in Section 18. Both parties agree to annually review and evaluate the
activity and programming following the conclusion of the normal season in April or May. This shall
include but not be limited to:planning for suxnmer ice activities, re-negotiating the following
season's operational donation,monitoring current capital improvements,plan for future capital
improvements,identify future needs, and generally work to improve the viability,use, efficiency of
the facility and it's programs.
Section 18: Modifications/Amendments to this agreement -
Terms and conditions of this agreement shall be reviewed and mutually agreed to by both parties,
reviewed by the CITY'S Director of Parks, Recxeation and Forestry, the City Managex,and the
Brookings Pask and Recreation Board;and subsequently approved by the BISA Executive
Committee of the Boaxd of Directors and the City Council.
Section 19: Insurance
BISA shall annuaIly provide to the CITY a Certificate of Insurance naming the CITY as an
additional insured,in the amount of$1 million per occurrence,$2 million in aggregate. 'The
insurance shall provide liability coveYage of BISA operations including concessions. BISA agrees to
keep the insurance in full foxce and effect at all times and shall not allow any lapses in coverage.
The CITY shall provide general property and liability insurance covering the facility in accordance
with insurance]imits and policies adopted by the City Council.
Section 20: All other agreements null and void
All previous agreements between BISA and CITY are hereby declared null and void with the
exception of the following:
• Advertising/Concession agreement dated Septembex 27,2401 which shall remain in effect
and is attached as E�ibit A.
• Resolution No. 16-08 adopted by the City Council on February 12, 2008 and is attached as
Exhibit B.
Section 21: Breach of conttac�xemedy�tocess
In the event eithex party wishes to fmd the other in default for a material viola,tion of any portion of
this agteement,the aggrieved paxty shall serve notice to the other party as identified in Section 3 of
such bxeach upon which both parties agree to meet and resolve such matter. Unresolved matters
shall be referred to the City Manager for attempted resolution. In the event such breach remains
unresolved after participation of the City Manager,both parties agree to submit the matter to an
Alternative Dispute Resolution process.
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Section 22: Severabilitv
The provisions of this agreement shall be deemed sevexable. If any part of this agreement sha11 be
held invalid,illegal, or unenforceable, the remainder shall remain in full force and effect, and such
invalid,illegal or unenforceable provision shall be reformed by such court as to give maximum legal
effect to the intention of the parties as expressed thexein.
Section 23: Authorization
Each paxty represents, covenants,and waxrants that the making and execution of this agxeement and
all other documents and instruments requixed or related hereunder have been fully authorized by the
necessary corporate action of each such paxty and are valid, binding,and enforceable obligations of
each paxty in accordance with their respecti.ve terms.
Section 24: Enti�e Agxeement
Onlp those terms in writing are enforceable. No other terms or oral promises not contained in this
written agreement may be legally enforced and the paxties hexeto may change the terms of this
agreement only by another written agteement or an amendment as provided in Section 18.
Section 25: Bindin effect
This agreement shall be binding upon and shall inuxe to the benefit of the part'tes hereto and their
respective successors and assigns.
Section 26:Assignabilit�/transferabilit�
Neither party shall assign its rights or obligations under this agreement to third paxty without the
consent of the other party. BISA shall not lease or sub-lease anp part of the Eacility without the
pernvssion of the CITY.
Section 27: Duration
'I'his agteement.shall expite one year fxom the date of execurion. Both paxties shall be diligent in
successfully negotiating a renewed agreement so as to m;nim;ze any lapse in coverage. Notice should
be served to the persons identified in Section 3 to discuss a renewal.
Council Addition—Economic Develo�ment. This item was not on the agenda.. Council Member
McClemans said since coming to the Council,he's had a number of concerns on how it handles economic
development and promotion. He thinks the City has an office of economic development that seems to be
under-consulted on a number of issues. As councilors,we all have a strong interest in seeing our city progress,
but we are not professionals. He assumes that the City's d.irector of economic development has a plan in place
for our city's future. At times he thinks we're short circuiting that plan by listening to promotion and
development proposals without his input. Therefore,he would like the council to consider the following
policy motion: A motion was ma,de by McClemans, seconded by Bezdichek,to sta.te that any expenditure
related to the economic development and/or promotion of our city be first presented to the Council by the
DiYector of Economic Development. He/she is the professional who we pay to undexstand out needs,be
scheduled at the September 8�'Counc,il Meeting Work Session. Di.rcu.r.rion: Bartley a.rked avhen McCleman.r talk.r
about economic develo�iment director, if he meant Mike Struck arAl Heuton. McCleman.r clarified Mike Str�tck. keed,rtated
Mike Stnrck i.r the Community Development Director. On the motion,all present voted yes;motion carried.
Ad�ourn. A motion was made by McClemans, seconded by Whaley, to adjourn. All present voted
yes;motion carried. Meeting adjourned at 6:35 p.m.
CITY OF BROOKINGS
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� °�:o Tim Reed,Mayox
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S ari Thornes,City Clerk