HomeMy WebLinkAboutCCMinutes_2007_12_04 450
Brookings City Council
December 4, 2007
The Brookings City Council held a meeting on Tuesday,December 4, 2007 at 5:00 p.m.,at City Hall
with the following members present: Mayor Scott Munsterman, Council Membe�s Julie Whaley,
Mike Bartley,Ryan Brunner,Tim Reed,Ginger Thomson,and Tom Bezdichek. City Manager
Dennis Falken, City Attorney Steve Britzman, and City Clerk Shari'Thornes were also present.
5:00 P.M. WORK SESSION
Discussion of policy/criteria for new lic�uor operating agreement au�lications
On November 27'}' the City Council agreed to hold a ciiscussion at this meeting regarding the setting
of policy and criteria regarding liquor operating agreement applications prior to accepting
applications. The Council reviewed past criteria when issuing a liquor operating agreement and had
a general discussion about the issue.
Reed noted that he liked the idea of attaching requirements to the actual contract (agreement) in
case a business were to change or change ownership.
Bardey noted that the City can open up the process and accept applications and because Brookings
has a Home Rule Charter it has the ability to have operating agreements and attach additional
criteria to each license. However,he commented the he could see this as a"slippery slope" for each
license. Applications will come in based on what the City Council establishes as the criteria, citing a
50% food requirement as a criteria example. Businesses will say they have food and worry about it
later when audited. Other criteria could be the pro�cimity in feet away from a school or hours of
operation. The Council has the ability to ta.ke a license for a particular location and because of that
location select it and negotiate how the license will be used. The agreement and its issuance is.
specific to that license at that location and if 50% food is a requirement and the requirement isn't
met, the establishment doesn't revert to a bar, the license is returned to the city. A change in
ownership would result in coming back to the city to request transfer. Under this form the Ciry has
the ability to negotiate an operating agreement and can do a bettex job of using that license verses
setting criteria ahead of time and everyone writes their application to meet that specific criteria. He
likes the idea of narrowing the scope,but not too narrow befote the Council knows,what or who the
applicants are.
Munsterman said he would prefer that the Council have something in mind for development
because it's the last operating agreement. He sees this agreement as a venue to buy something that
we want rather than something that we have to spend. If there's nothing specific the Council has in
mind that they want to see developed,then thexe's no problem to pursue Bardey's idea. However,if
there is something specific the Council wants, he'd like a discussion about what they want to see
happen with this agreement.
Bezdichek said one of the things a governmental body has to be caxeful of is to be too narrow in the
criteria ox the specifications. When a governmental entity goes out to bid, care must be taken that
the bids are not written too narrowly as to limit those bidding to a very few. In the case of
applications for this operating agreement, he feels general specifications and general criteria is
needed. He noted that this isn't the last license the City will ever get. It's the last one right now. He
cautioned the Council on how much criteria is written into this process. He recommended that the
process be opened up to anyone wanting to apply and then the Council would review the
applications to determine what is needed and what is in the best intexests of ehe City of Brookings.
He also noted that every license is renewable on an annual basis and if an establishment isn't doing
what is best for the city,it can be pulled and issued to a better place.
Whaley commented that when the Council was looking for a city manager,the process was open
and 56 applicants wexe received. Then the Council identi�ied some criteria and sorted the �
applications based on those needs. Keeping the process open resulted in getting more choices to
consider.
Munsterman asked what the Council would be looking for; that the applicant doesn't have a felony?
Is that the only criteria.to be established to be considered?
Thomson said she would give higher consideration to an establishment with a high percentage of
sales due to food and doesn't want it to go to a bar ox an establishment that doesn't serve food. She
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wants it to go to a place that enhances the economy by bringing people to Btookings, such as fine
diiung or a convention center. She'd have an easier time granting a license to a facility such as that.
Brunner agreed with Thomson,but at the same time wants to leave the process open because you
nevex know what new idea might come in that the Council hasn't thought of yet. There's potential
for new development that comes in as a part of this process. He Iikes the idea that the license go
towards an establishment with a certain percentage of food. He thinks the issuance of the last
license is to the City's best advantage with the potential new legislation pending.
Britzrnan noted that the City already has established some basic ground rules,rather than criteria,
related to operating agreements assignments in the City of Brooksng.r Liguor Operatfng�gr�ement Policy,
dated November 2004. The Policy goes on further to identify first and second tier criteria for
consideration. `The City ivill check for com�iliance avith the State requirement that the `character of the applicant"
be acce�ita�le. Upon finding evidence that the character of the applicant is acceptable and the location,cuitable, the City
Council will con.rider second tier eriteria. This proce.r.c can include examining the be.rt location for economic and
tourism development, the be.rt ancillary u.re.r(re.rtaurant, etc.�developed with the,rale of liguor, the be,rt locatiorr in
accordance with the city long-range plan, the.ri�e of the facility,parking facilitie.c, clo.rene.r.r to e.xi.rting supplementing
bufine.rse.c and activities deemed important by the City Counczl. The Council can make changes to the policy
and also determine if the second tier criteria is still relevant.
Munsterman thanked Britzman for reminding the Council about the policy and recalled that the
Council had quite a bit of discussion about this policy several years ago. He reiterated that the
council needs to determine what's important to them about the selection, but maybe the current
policy is inclusive enough already.
Reed agreed with Thomson that he too will have his focus on applications/projects that will bring
people into town or provide anothex oudet to spend money such as conventions and meetings. He
noted that a convention center with a hotel would rank highest for him and would look at others
with a lower ranking. He doesn't necessarily think it would just be a restaurant as the deciding factor
and thinks the City could hold out for something"bigger." He expressed concern about opening up
£or applications,because he's not sure if there's a big enough pxoject out there. He wants to do
what is best for the City of Bxookings.
Munsterman clarified that the City Council does not have to issue the license.
Bartley said he is interested in moving fonvard with entertaining applications using the criteria
established because it's broad based enough to narrow it down. He agreed that the City doesn't
have to issue this agreement. He suggested opening up the process for 30-45 days, or whatever is
reasonable. If that doesn't work into a particular business's plan, they could decline to apply. He
noted that Sioux Falls had 16 licenses to issue and their Council got into a discussion that they didn't
have operating agreements and had to issue by a lottery system. This system is not valuable to the
ciry;it is the opposite because good applications couldn't get a license.
Falken recommended 60 days for the pxocess.
ACTION: A motion was made by Baxdey, seconded by Whaley, to open up the pxocess to accept
applications for the liquor operating agreement for 60 days after publication. Discussion: Reed said
he'd Iike the process to state that the City doesn't have to issue a Iicense. Thornes noted that the
current application has the following statement: "Please be advised that the City Council may
choose not to enter into any new operating agreements." "I'he Council also agreed that the pzocess
and application packet will stay the same as before and that the City Council will review the
applications and give applicants the opportunity to present their information. On the motion,all
present voted yes;motion caxried.
City Attorney Contract. Falken reported that the City Attorney's contract expires on December
31,2007. The Council reviewed a draft agreement that would extend fot another yeax. The contract
is the same with a cost of living increase. Action is scheduled for December 11`�.
Thomson recalled that the City Council discussed the concept of a full-time attorney. She asked if
the Council determined that that wasn't needed. She clarified that our current attorney does a
wonderful job, but the woxk load is not declining.
Falken said there was consideration given to combining with the hospital and utilities fox legal
services,but the concept was too late in the yeax. He recommended continuing services as is and
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giving the new city manager the opportunity to research the issue and make an informed decision
aftex that year.
Falken further noted that it will be very difficult to find someone willing to leave their private .
practice and having knowledge of hospital, utilities and city general municipal issues.
Budget. R.ita Thompson, City Finance Manager,gave an overview of the proposed budget
amendment scheduled for action during the 6 pm meeting. She reported that the amendment
recognizes the following additional revenues and expenses:
• T'he Landfill has experienced an exceptional year and is transferring a one time additional
$100,000 from the Landfill to the General Fund. The additional funds will be used to update the
community room downstaixs,assist with the installation of the video equipment for the council
chambers, the temporary zoning control airport maps, additional money needed for the OPEB
actuarial pex quotes, and the National League of Cities dues.
• This amendment also recognizes additional sales &use tax projected on a cash basis through
December 315L. The City will receive additional Sales &Use Tax revenues fox 2007 through Mid
February 2008, and are not included in this amendment.
• The amendment includes additional revenues for building permits, zoning and subdivision fees,
grants,and donations. These additional revenues are being used to cover additional expenses
occurred within departments.
• A line item has been created to record the disbursement of the fire insurance premium ta�c
within the ftre departments budget. �
Pro�osed revisions to Agreement with the S D De�artment of Transportation
Britzman reported that he has been communicating with the South Dakota Department of
Transportation legal counsel tegarding the ptoposed amendment,which would amend the original
purchase agreement to extend the time period to close on the property. Britzman said the State is
moving out of the building sooner than anticipated. Once they vacate, the State doesn't want to
carry any expenses on the building or property and have asked the City to carry liability insurance
during that time until the property closes. The State is also requesting that the City manage the
property related to fences,vegetation and maintenance. Britzman noted that no additional experise
would be requised to add this building to the City's insuxance coverage.
Bardey asked if the City could make use of the facility during the interim for storage or other needs.
Britzman said he'd be surprised if the State had any objections to this request and this issue could be
worked out in the agreement.
Munsterman was opposed to maintaining,insuring and being responsible for a building that the City
doesn't own and this was not a part of the agreement that was reached with the Governor. He
expressed concern for the ianguage in the agreement, citing the State's past unwillingness to reduce
the price once it was deternuned that the land appraised for less than $4 million.
� Bartley said he thought the State was looking at the issue with the impxession that an offer on�liat
property would be forthcoming. He didn't know how much it would cost to maintain the faciliry
other than labor to mow. He sees it as a cost to extend the option on a property. It's our payment
to extend the option and if the City isn't willing to do that,it should revert back to the State.
Munsterman said he wasn't concerned about the insurance;it's the maintenance of the land and
buildings, citing a roof failure as an example. Who is responsible? What if pipes freeze and break?
He said he'd like to see cost estimates for the year.
Thomson asked if the city could exercise the option to putchase sooner than one yeax. Yes, the
State will vacate by December 31, 2007.
Reed said the city should make sure that the State has removed everything from�the site and that
they're not coming back. 'There should be a review of the structure at the time of vacation to note
the conditions.
Munsterman reiterated having a problem with having to maintain the land and building so that they
don't deteriorate. Britzman will work on that part of the language.
Falken said he hasn't discussed the building's possible use with the City Leadership Team. He was
concerned that using it would increase the risk of something happening to the building. T'he City
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also doesn't have a line item for the utilities or heat. As for the main grounds, there are 20 acres and
a main building, and Falken doesn't know what"maintaining the structure" means.
Thomson suggested getting cost estimates in order to have a clearer idea of what expectations are
for that maintenance so there wouldn't be any surprises.
Munsterman questioned why the City has to insure it when the State already has it insured. Why
does the ciry have to carry any risk when it doesn't own the land?Britzman said liabiiity coverage
typically goes to the party in control of the pxoperty.
Britzman will clarify the language in the agreement pertaining to the maintenance issue. Action is
scheduled for Decembex 11`''.
Creation of a Transuortation Board The Council reviewed a draft tesolution to create a
Transportation Board. Action is scheduled for December 11`h. Appointments would be made in
January.
6:00 P.M. CITY COUNCIL MEETING
Consent Agerida: A motion was made by Reed, seconded by Whaley, to approve the consent agenda
which included:
A. Agenda.
B. Action on Resolution No. 83-07, awarding Bids for Indian Hills Pedestrian Bridge
Project.
Resolution No.83-07
Resolution Awarding Bids on Project 2007-09BR
Indian Hills Pedestrian Bridge
Whereas,the City of Brookings held a bid letting at 130 pm on Tuesday,November 27,2007;and
Whexeas,the City of Brookings has received the following bids for Project
2007-09BR Indian Hills Pedestrian Bridge:
Mil�r Conrt�srction,Brookingf ,�59,400.00
Clark Drew Coxrtruction,Broaking.r j84,269.50
Owen.r Enterpri.re.r,Brooking.r, $86,800.00
Now Therefore,Be It Resolved that the low bid of$59,400.00 with Mills Construction,Bxookings,
SD be accepted.
C: Action on Resolution No. 84-07 canceling checks.
Resolurion No.84-07
Canceling Certain Outstanding Checks
WHEREAS,the City of Brookings,has issued checks that have been outstanding for more than six
(G)months;
NOW,THEREFORE,BE IT RESOLVED that the following amounts be canceled and the proper
funds be credited:
General Fund
03-23-05Index Stationers �17.55
Oi-25-06Nortek Computers $ 5.00
07-05-06 Olson Ag&Auto Parts $32.90
12-27-06 Ez Sharp,Inc. $ 9.50
Total $64.95
D. Action to award bids for a Brush Chipper for the Forestry Dept. Bids were opened on
November 27`h for furnishing of one 2007 Model Brush Chipper for the Forestry Dept.
Recommendation is to accept the bid from Aspen Equipment, Bloomington,MN,in Schedule
B,which gives allowance for trade-in of a 1986 chipper,but to not take the deduct for the
Caterpillar diesel engine, for the bid price of$31,296. No other bids were received.
BID TAB-PARKS&RECREATION
BRUSH CHIOPPER ASPEN EQUIPMENT
November 27,2007 Bloomington,MN
SCHEDULE A. New 2007 Model(no trade) Bandit 250XP
LUMP SUM $34,296.00
OPTIONAL BID ALTERNATE
Deduct fxom Base Bid,substitute -$2,318.00
Caterpillar engine for John Deere
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SCHEDULE B. New 2007 Model(with ttade) Bandit 250XP
LUMP SUM $31,296.00
OPTIONAL BID ALTERNATE
Deduct from Base Bid,substitute -$2,318.00
Caterpillar engine for John Deere
On the motion, all present voted yes;motion carried. �
2"a Reading—Ordinance No 40-07—Bud�et A motion was made by Bartley, seconded by
T'homson, to approve Ordinance No. 40-07,an Ordinance Entided"An Ordinance Authorizing a
Supplemental Appropriation to the 2007 Budget for the purpose of Providing for Additional Funds
fot the Operation of the City,as amended. All present voted yes;motion carried.
Resolution No. 82-07—Reserves. A motion was made by'I'homson, seconded by Reed, to
apptove Resolution No. 82-07,a xesolution creating Capital Accumulation Reserves for
Governmental Funds. All present voted yes;motion carried.
Resolution No.82-07
Creating Capital Accumulation Reserves fot Governmental Funds
WHEREAS,the City of Brookings has established Governance Policies&Ends Policies,
which defines,protects,and prioritizes the workings of City Government,
AND WHEREAS,Ends Policy 1,Finanaal Stability,Guideline E requixes a(5)five year
capital improvement plan,
AND WHEREAS,Guideline E,xequires the(5) five year capital unprovement plan is to be
not more than an average of(10)ten percent of the general fund expenditures including the use of the
(25}twenty-five percent 2"d penny sales&use funds,
AND WHEREAS,South Dakota Codified Law 9-21-14.1 authorizes municipalities the
accumuladon of funds for a period longer than one year for speciflc capital ouday purposes otherwise
authorized by law,
AND WHEREAS,South Dakota Codified Law 9-21-14.2 states such resolution shall be
enacted by a two-thirds vote of the governing body stating clearly the purposes fox which the funds
are to be accumulated and the maximum amount that may be accumulated,
AND WHEREAS,South Dakota Codified Law 9-21-14.2 further states the fur►ds
accumulated shall be expended within sixty months from the date of the resolution or if the speci6c
purposes for which the funds are accumulated are deemed no longer necessary,these funds shall
revert to the general fund,
NOW,THEREFORE,BE IT RESOLUED,the following capital reserve funds be created
for these governmental funds per the(5)Five Year Capital Improvement Plan:
FUND DESCRIPTION AMOUNT
Genexal Fund 2009 Ca ital er 5 ear ca ital im rovement lan $ 650,025
General Fund Land- ro osed urchase of DOT real ro e �4,000,000
25%Sales&Use Tax 2009 Ca ital er 5 ear ca ital im rovement lan $1,075,500
75%Sales&Use Tax 2009 Ca ital er 5 eax ca ital im rovement lan $1,150,000
Industrial Park 2009 Infrastructure Im rovements � 500,000
Storm Dsaina e 2009• ro osed Storm Sewer Im rovement $ 480,000 ,
S ecial Assessment 2009 ro osed Streets&Sidewalk Im rovement $ 120,000
Resolution No. 85-07—Reserves. A motion was made by Whaley, seconded by Reed, to approve
Resolution No. 85-07,a resolution creating Cash Flow Reserves within the Governmental Funds:
All present voted yes;motion caxried.
Resolution No.85-07
Creating Cash Flow Reserves within the Govemmental Funds
WHEREAS,the City of Brookings Govemance Policies&Ends Policies 1,Financial
Stability,Guideline C,states the Council allows for a reasonable reserve funding a 3-month
operational level,
AND WHEREAS,the reserve is to be used at the Council's discretion to address temporary
cash flow shortages,emergencies,unanticipated economic downtums,and one-time oppoxtunities,
NOW,THEREFORE,BE IT RESOLVED that up to 10%of the Governmental Fund
Balances be reserved for the above cash flow emergencies.
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City Council To�ics.
A motion was made by Whaley, seconded by Reed, to hold a meeting with the Airport Board to
discuss the various issues including hangars, communications, and the onsite option. All pxesent
voted yes; motion caYried.
Presentation on Storm Water Management Jackie Lanning,Bxookings City Engineer,reported
that the City of Brookings is under an EPA mandate fox Storm Watex Rules and Regulations, called
EPA Phase II. This mandate became effective March 10, 2003 for all cities in the United States with
a population ovet 10,000 people. A Storm Water Management Program Committee for the City of
Brookings was established, and the attached Storm Water Management Program was cxeated. Each
Ciry was given five yeaxs to fuIly implement their programs, and an annual repoxt is xequired to be
submitted to the DENR by March 10`'' of each year.
The EPA guidelines require the following su� (G) areas to be addressed with the City's Storm Water
Management Program:
• Public Education and Outxeach on Storm Water Impacts.
• Pubiic Involvement/Participation.
• Illicit Discharge Detection and Elimination.
• Construction Site Storm Water Runoff Control.
• Post-Construction Storm Water Management in New Development and Redevelopment.
• Pollution Pxevention/Good Housekeeping for Municipal Opexations.
The Brookings Storm Water Management Program addresses Minitnum Control Measures for each
of these s� areas. Measurable Goals,which are required for each of the Minimum Control
Measures, axe intended to gauge permit compliance and progxam effectiveness. The City of
Brookings Storm Water Management Program addresses the activities which will be requixed in the
form of public information and education,education of City Staff,maintenance procedures,
recommendations for new or modified construction standards for the City,recommendations for
additional or modified City ordinances,potential axeas of City expenditures,potential funding
scenarios fox the program, and recommended measurable goals and timetables for the attainment of
the goals within each area. Unless another individual ox group has been identified, the Brookings
City Engineers Office will be responsible for each Best Management Practice.
A summary of the Bxookings Storm Water Management Pxogtam and the goals achieved was
pxesented to the Council and is available for inspection at city hall.
Ad�ourn. A motion was made by"I'homson, seconded by Brunner, to adjourn. All pxesent voted
yes;motion caxried. Meeting adjourned at 6:35 p.m.
Brookings
. unstertnan,Mayor
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