HomeMy WebLinkAboutCCMinutes_2007_01_16 254
Brookings City Council
January 16, 2007
The Brookings Ciry Council held a special planning session on Tuesday,January 16, 2007 at 4:00
p.m., at City Hall with the following members present: Mayox Scott Munstetman, Council Members
Tom Bezdichek,Julie Whaley,Mike Bardey,Tim Reed and Ginger Thomson. Council Member
Reitz was absent. City Manager Dennis Falken, City Attorney Steve Britzman, and City Clerk Shari
'I'hornes were also present.
Ends Policies: Financial Stabilitv
1. Bonding ca,pacitvfuture plarJning-Toby Morris, Northland Securities,addressed the �
city's current and future bonding capacity and what counts against the capacity. Morris said the state
statute only allows cities to bond up to 5% of their assessed valuation. Cities can add another 10%
for water/sewer infrastructure after going to a special vote. Reserves and cash assets are not
included in this formula. It is a bond counsel quesrion whether to allow you to go to that amount.
Rita Thompson, City Finance Manager,reviewed the ciry's investment process for the Council.
Thompson uses a yield advantage bidding out the investments online with local banks. All banks are
notified by email and have the ability to compete. City general also invests the Brookings Health
System&Brookings Municipal Utilities funds. Morris noted that this system is the most
sophisticated in the state.
Z. SDSUFoundation bondingtec�uest- Falken reported the SDSU Foundation has
approached the City about using the Ciry's bonding rate for four projects on campus. This would be
a savings to them and would not be a debt to the city. Thompson clarified that the City would be a
conduit for the debt-a tax exempt status for bonds for the investors. The City is allowed$10
million per year. Using the County bond rating was also suggested. There was consensus to assist
and recommended a resolution of support be drafted for Council action.
3. TIF&BID Districts(retail&housiti�needs�- The Councii discussed the use of a Tax
Increment Financing District (TIF) for the former Dept. of Txansportation land across the
interstate. A TIF can be used to build roads,infrastructure and other public improvements. Could
it be put into place by 2008? Yes. A resolution establishing the district and setting the base value is
needed. Ownership of the land at that time was discussed,but the Ciry Attorney said it wouldn't be
an issue. However, the district should be in place by November 1,2007.
The Council also discussed the use of a TIF District for affordable housing. Can the city grant a
TIF district to a developer without owning the land? Yes.
Morris recommended in a retail/economic development project the city knows the projections and
should go ahead and borrow the funds. However,in housing it is difficult to predict how many
houses will be built or sold in 5 years. The revenue stream may not support the bonds.
The Council asked for bonding capacity projections for 5 and 10 years to include the railroad, SDSU
Foundation,retail,housing and other ciry needs.
All TIF projects must have an econornic development component. ,
The hardest thing with TIFs is placing the funds. No two TIFs are the same because it involves a
governmental entity working with a developer and no two axe the same. It is difficult to place TIFs
with banks.
Cities can combine retail and housing together if the area is contiguous. .
Morris told the Council to carefully evaluate the revenue stteam. More TIFs don't perform than do. _
4. Railroad-set aside futids fot safe, costs-The Council discussed setting aside cash
reserves from 2006 for future safety related costs regarding the rail�oad project. Thompson
presented the fina12006 Financial Report completed in March and will know at that time what the
final basis is.
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Estimated total cost of quad-gates at the five major intexsections (Main,22nd,Medary,Western,
17th) was $1.3 inillion. State funds won't be allowed until the traffic number gets to a certain
tonnage and the City wants maxirnum safety at day one.
There was Council consensus that the city should build up the funds to be able to install the gates
from day one if necessary. Bardey noted that DM&E is not required to allow the City the ability to
install gates if we don't have an agreement in place and STB doesn't Yequire the gates.
The Council thought it should allocate a cextain amount out of reserves and 2"d penny funds each
year.
Governance Policies:
1. Revamp 200?budget�rocess-Thompson reported that she will be attending training on
performance measurement budgeting.
Munsterman said the City Councii needs to be thinking into the future about goals related to quality
of life for the citizens. The Council's goals for the year should then tie into the budget process for
the city staff. �
Thompson said she is faxniliar with the budgeting for outcomes philosophy and bringing the public
into the pxocess. New Fedexal regulations now mandate that governments are to conduct
perfortnance benchmark budgeting. Former City Manager Mike Williams started the pxocess.
In this process the City Council sets broad goals of what it wants to happen with the budget and city
staff then assembles a budget based on those policy directives.
2. Yolunteer Boatds/Committees& Commissions:
A. Re-examine Park 8�.Recreation Board- Munsterman said he has a number of
ideas about integrating healthier lifestyle choices in the community. He suggested adding a
wellness component to the mission of P&R Boatd. There was consensus that this was a
good idea.
B. Re-initiate Joint meetings with boards: T'here was interest in the following:
• Annual joint meeting with Hospital Board
• Annual joint meeting with Utiliry Board
• Continue quarterly BMU financial reports at Council meetings
■ Semi-annual joint meeting with Planning Commission
■ Attend annual intergovernmental conference hosted by Government Affairs to meet
with County and School
C. Re inxtiate re�orts from boards at council meetings-There was consensus that
the written annual report was sufficient and verbal updates at Council meetings wexe not
necessary. Falken noted that he plans to meet with each of the boaxds at least once this
yeax.
3. CityAttornevfull-time structute- Falken estimated a 28%increase on the base salary to
cover fringe benefits. Additional costs would be associated with office space needs and staffing.
He estimated a cost of$107,000 for an attorney to serve City Genexal,BMU and Hospital,noting
that didn't include any specialist attoxneys. This would require an agxeement with both entities. It
may be difficult to hire one person with broad enough knowledge to cover specialty needs. Falken
recommended the City continue undex the current format and revisit the issue in 2008.
4. Schedule special meetitig to review GoYernance�Er�ds Policies (CarverModel).
Thornes will schedule a meeting in early March solely for the purpose of reviewing the policies.
Ends Policies: Economic Development:
1. Lic�uotLicetsses/Legislation-A bill will be introduced this session to give more local
control to issue more liquor licenses. Munsterman and Bartley are planning to go to Pierre to testify
if necessary.
2. Infrasttucture r�eeds for industrlal&retailland- Issues were noted with 32"`'Avenue
Noxth and Prince Drive. The City hasn't heard anything on the $700,000 railroad spur grant. They
would like to transfer it for other infrastructure pxojects.
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3. DOT Larld-The City Council is scheduled to meet with the developer on January 23"'.
The Council directed the City Manager to prepare cost estimates to return the area as developable
land. The City has an agreement with the state to proceed with the demolirion which will be
completed by the end of the year.
4. Affotdable Housin�-Listed below are the subtopics recommended by Council Member
Reed. A separate planning session on housing was suggested.
• Di.rcu.cr seu�er and 2vaterplan.r with BMU- 10yearr out.
• Keuiew land owned by the city.
• Di.rcu.r.r current home inventory and policres to promote re-u.re of propertie.r for starter home.r.
• Discu.cr increa.ring den.citie.r in ne�v devedo�iment,r.
• Di.rcu.r,r current�oning police.r and rupport planned developments.
• Kevie:v current permitting p�nce.rs and feef
• Di.rcu.r.r capital availability before any TIFF i.r regue.rted.
• Beviesv 2020 plan and di.rcu.r.r a.rking planning commi,r,rion to revi.rit plan to 2030. Including a ivhat�
.rcenario ofAirport relocation. ,
Ends Policies: Munici�,al Services
1. Air�ott-The City Council should receive information on proposed sites in the next 30 to 60
days. The consultants are completing their study on the offsite options. Two public open houses
are scheduled.
2. BMULapoons-Ciry Genexal has been chaxging BMU rent for lagoons for many years. It
is currendy in the budget as revenue for the airport. The former BMU Director Craig Osvog and
former City Manager Alan Lanning had a discussion about the topic and the cuxxent BMU Dixector,
Steve Meyer, didn't put this item in his budget as an expenditure but the City did budget for this as a
revenue. BMU doesn't object to paying a fee. City General curxendy pays hydrant rental and street
light fees.
3. Bike Trails-Allyn Frerichs stated past City Manager Mike Williams applied for grant funds
before he left. These funds need to be used by 2009. Senator Thune recently asked tl7e status of
this project since he was instrumental in allocating extra funds in the transportation bill. "I'he trail
extension would be adjacent to the railroad tracks across the interstate to Swiftel Center to 34�'
Avenue back on the bypass to McCrory Gardens. There are some design issues to get across the
Interstate. The$700,000 project would require $150,000 in city funds. This project was not stated
in the 2Q07 Budget,but will need to be included in the 2008 Budget. Frerichs noted that the
industries are very supportive of this project. City staff needs to be planning together to budget this
item in 2008. Use of federal funds needs to be futthet tesearched. The goal is fot the trail to
eventually circle the city.
4. Golf Coutse Im�tovements- Frerichs stated golf play is down. Brookings is not alone.
Other municipal courses are experiencing reduced play. The original nine holes are 33 years old.
Improvements considered include;more courses,irrigation system, and improved kitchen. 'There
have been changes in course concepts to elevated designs. The course is currendy manually
irrigated. The current play on course won't generate enough income to make the improvements.
Budget reductions from foux and five years ago forced cuts involving things such as fertilizer,
fungicide and sand. These items were arbitrarily cut from budget and have not been able to get the
funds back due to depaxtments being limited to 0-3%increases pex yeat. The golf course needs to
get back to the operating budget from six years ago. Their Budget is currendy $15,000 short.
'I'he Golf Course has been experiencing drainage problems in wet years,which has hurt the quality
of the course. Frerichs is looking for money to develop Moriarty Park with the idea then to sell
unneeded land purchased as part of the drainage way on the north side of 15`'' Street South. Some
land could be separated off for residential and still have the needed drainage way. There has been
talk about platting out lots or selling to a developer. The street is paid for and utilities are already in
place.
Is a public/private parmership possible to fund the golf course? Frerichs said maybe the Club
house;however,he is concerned that it would not make money for anyone. It may pay for itself,
but not make money.
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What is the policy on carts? Frerichs stated patrons can only use the city carts and not private carts.
PYivate caYts can a£fect the quality of the course and there is a storage issue. Cart rentals net$45,000
annually.
What are the rates? Frerichs stated as a means to encourage more use by students and families they
have started charging half price for cart rentals and course fees on Tuesday and Thursday moxning
and Sunday nights. Season tickets are also offered on a 6-month payment plan.
Frerichs stated he is excited to woxk with school on a new elementary site. The school has
approached Frerichs about the design of the e�sting neighborhood park and there may be a need to
redevelop it to better meet the school's needs.
5. Citv Hall S�ace Needs- Falken stated City Hali and the Police Depaxttnent axe full.
Departments haven't hired personnel because there is no room for the addirional staff. The Ciry
Clerk's records room still remains an issue. The Swiftel Center also doesn't have any space for
personnel or equipment storage. The Council said the city should be aggressively looking for space
for a new city hall.
Adjourn. A motion was made by�X/haley, seconded by Reed,to adjourn. All present voted yes;
motion carried. Meeting adjourned at 7:49 p.m.
Ciry of Brookings
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