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HomeMy WebLinkAboutCCMinutes_2004_04_06 zo7 Brookings City Council Tuesday, April 6, 2004 The Brookings City Council held a planning session on Tuesday, April 6, 2004 at 5:30;p.m. at City Hall with the following members present: Mayor Scott Munsterman, Council Members Tom Bezdichek, Doris Roden, Tom Bozied, Julie Whaley, Tim Reed and Mike McClemans. Alan Lanning, City Manager, Steve Britzman, City Attorney, and Shari Thornes, City Clerk, were also present. Agenda. An announcement from DBI was added to the agenda and the CVB Report was removed from the agenda. A motion was made by Reed, seconded by Roden, to amend the agenda. All present voted yes; motion carried. � Police Depprtment Remodeling Project Bids Bids were received on March 30"' from Clark Drew Construction for $38,500, Waltz Construction Company for $32,475, and Mills Constructions, Inc. for $34,990. A motion was made by Reed, seconded by McCiemans, to - award the bid to Waltz Construction Company for $32,475. Bozied arrived at 5:33 p.m. All present voted yes; motion carried. Fire Department Vehicle Bids. Bids for the Fire Department SUV were received from Einspahr � Auto Plaza Inc of Brookings for $25,990. Bids for the Fire Department 3/a ton SUV were received from Einspahr Auto Plaza Inc. of Brookings for $33,000 and Brookings Auto Mall for $32,06$. There was a problem with the standards and specifics for the 3/a ton vehicles. A motion was made by Roden, seconded by Whaley, to award the bid for the Fire Dept. SUV to Einspahr Auto Plpzp Inc. in the amount of $25,990 and to reject the bids for the 3/a ton SUV. All present voted yes; motion carried. Resolution 17-04—appointing April 13fh election judges A motion was made by Roden, seconded by McClemans, to approved Resolution No. 17-04. All present voted yes; motion carried. RESOLUTION NO. 17-04 APPOINTMENT OF ELECTION JUDGES WHEREAS, a City of Brookings Municipal Election will be held on April 13, 2004 for the positions of three Council members; and WHEREAS, as required by SDCL 9-13-16.1, the City Council must appoint Election Superintendents and Deputies and set their rate of compensation; and WHEREAS, the following superintendents and deputies are hereby appointed at a rate of $8.50 per hour for superintendents, $8.00 per hour for deputies, and $15.00 for the April 13, 2004 Election School: Precinct 1: PrecinN 4: Rosalita Fritz, Superintendent Sue Knutzen,Superintendent Marilyn Bommersbach Marlys Schutt Marleen Hildebrandt Sharon Anderegg LaRayne Wahlstrom LaVonne Kurtz Patrick Query Robert Bell Emily Hauge—alternate Vi Lightfield —alternate Precinct 2: PrecinN 5: Hazel Hauff,Superintendent Carolyn Hieb, Superintendent Barbara Borstad Ramona Helwig Neva Jean Corlett Carleen Dixon Signe Anderson Mary Fiedler Dona Kornbaum Cleo Edeburn Darlene Wilaby—alternate Linda Kranz—alternate Precinct 3: Precinct b: Verle Barg,Superintendent Connie Burdick, Superintendent Barb Woolworth Joan Awpld � Barb Behrend Robert Kortlever Charlotte Smidt Barb Erickson Russell Lokken Candy Osvog Donna Burns 1 zo � DBI (Downtown Brookings Inc ) Report. Jerry Miller, DBI President, reported that DB) has secured a Citigroup grant for a Community Summer Internship Grant that will be used to hire a marketing student. He also announced the creation of the Downtown Economic Development Incentive Fund and publicly thanked First National Bank for providing $50,000 to initiate this program. DBI has also applied for a federal grant to add to the Incentive Fund and other private investors will be asked to invest in the program. No action was taken. Library Board Report. John Taylor, Board Vice Chair, updated the Council on the SDNL changeover progress, Friends of the Library summary of support, developments in the children's department, the summer reading program, and the (ong range plpnning committee future meeting. No action was taken. Liquor Store Analvsis. The Council agreed to wait with this issue until the City Manager could review the issue and submit his recommendation. No action was taken. Brookinas Engineering Department 2003 Annual Report. Jackie Lanning, Acting City Engineer, reviewed the City Engineering Department's 2003 Performance Measurements and Benchmarking Report. No action wps taken. Senior Citizen Center. Allyn Frerichs reported the Senior Center will be vacated this summer. The Red Cross and Food Pantry entities have withdrawn their request for the building in light of the Fire Department's need for the building. The kitchen equipment is owned by 60's Plus Dining. He was asked to inquire if they would be willing to sell the equipment. He anticipates the building will be available for use by mid September 2004. Mayor's "State of fhe City Message". Mayor Munsterman gave his annual State of the City Message to the Council. "As indicated, the mission of the city is threefold: provide a high quality of life, foster economic development and provide responsible management of city business. Your elected council has diligently worked towards this mission, in the following manner during 2003: Let's begin with the responsible management of city business. The City Council has teamed up with the City Staff to maintain the provision of vpluable city services to this community, even in light of the rapid decline in revenues over the course of the last few years. A decline in our main revenue stream, the transfer of funds from the Brookings Municipal Utilities, is scheduled for continued decrease to the city general fund for the next few years. This, coupled with two years of negative growth in sales tax revenue (2001 and 2002), resulted in the council's attempt to bring the city's spending down to meet with lower revenues—from approximately a $10 million budget to just below a $9 million budget. Belts were tightened and capital improvement projects were either put off or creatively rescheduled to meet the needs of our community under this strain. Nonetheless, the City Council and the City Staff rose to meet this challenge and have pulled through this rough time without spending reserve funds. Though unpleasant, this experience brought about some good things: Such as a sound and prudent financial policy; a policy managing the growth of government services at a controlled rate. It resulted in the development of Performance Measurements and Benchmarking: a unique and forward thinking outcome based approach to effective delivery and management of services. And it brought about a keener sense of analysis— determining what government should or should not fund. The people of Brookings can be confident in the council's efforts to continue with prudent, fiscally responsible decision- making. Next, the state of the economy in Brookings. Following two years of negative sales tax revenue growth, in 2003, Brookings posted an 1 1.4% increase in the l st penny general fund revenue, a 12.85% increase in the 2"d Penny revenue funds and a 6.05% increase in the bed and booze revenue fund. Several factors are responsible for this increase in sales tax revenue. First we must consider the most prominent change: during the course of 2003, 1000 new jobs were added to the Brookings economy; growing the labor force from 16335 to 17335� by the year end. According to Dr. Richard Shane, Head of SDSU Economics Department, the fiscal impact to the economy from the addition of these new jobs is $35 —40 million. This increase in jobs was marked by a large part due to the opening of the Vera Sun Ethanol Plant and Harms 2 209 Oil Company; as well as the expansion efforts of Rainbow Play Systems, Larson Manufacturing, Daktronics and Twin City Fan and Blower. Capital Card is presently nearing completion of their new facility pnd will add more jobs this year. According to the labor Market Information Center, Department of Labor, the Average Annual Pay for Covered Workers for Brookings in 2003 was $28,517. This out paces the pay of $23,938 in Watertown, $28,345 in Sioux Falls as well as the state averpge of $26,359; a sign ' Brookings is attracting and developing good wage employment. This will continue to be a trademprk for Brookings well into the future with the development of the research pprk venture with SDSU soon to be a reality. Also in the works is discussion of a plan for regional revitalization —this has been developed from the discussions stemming from the mayoral summits that have taken place over the last several months with the communities within our county. SDSU added a significant number of new students in 2003 — approximately 609 students, from 9952 to 10,561 — resulting in a direct fisca) impact of over $3,000,000. This figure does not include tuition, fees, books, supplies, room or board. Brookings also received a positive imppct from its promotional efforts in 2003. The Swiftel Center posted its strongest showing in just its third year of operation with over 97,000 people attending events for the year, resulting in an impact of $i 0 million. The Convention Visitors Bureau, teaming up with the Swiftel Center to bring overnight events to Brookings, also brought an impact of over $5,798,120 to the Brookings economy. The City Council and the Events Center Board partnered together this past year to pull together a long-term site plan and an effective planning model — providing clear direction for the operation and future role of the Swiftel Center for the community of Brookings. This plan also forecasts the city subsidy will gradually decrease over the next five years. As attendance and event numbers increase, the activity generated will produce a fiscal impact. And the increased sales tax revenue produced as a result will return the subsidized amount back into the generalfund. A more formal working relationship between the Swiftel Center, the Events Center 8oard and the Convention Visitors Bureau is in the making —this combination creates a promotional team providing continuity and collaboration of promotional activity, producing an effective modei of operation. Very soon, the council will sefi an ad hoc committee into motion to develop a comprehensive promotiona) plan for the community of Brookings— a plan that will include all the current promotional pctivity occurring in Brookings; as well as identifying and making recommendations for additional areas of pttention. A comprehensive plan will bring all promotional entities together, and will facilitate better relationships as well as more efficiency in the process. Once this plan is developed, I will ask the community to support a 3�d B tax — a tax on prepared foods. The impact this tax could have on the future of the promotional efforts of Brookings is extensive. Brookings has developed and invested in many `promotional vehicles': the ice arena, the Swiftel Center, the soccer complex, the senior center, the performing arts center and very soon the high school. We currently have the infrpstructure to promote many events and bring visitors to our community. These visitors spend money in our community, which in turn means higher sales tax returns; which in turn means more funds to spend on improving and enhancing our quality of life in Brookings. We operate at about a 30-40% event capacity — we need to maximize our use of our `promotional infrastructure' to p 70-80% attendance level on average. This can only be attained by further investment with the 3�d B tpx — a tax that we pay if we eat out in restaurants and a tax pbout 4000 students are forced to pay through their meal plan. However, it is also a tax paid in the majority by visitors coming to our community. Our promotional plan needs to bring something to all who pay the tax— and it will. In light of all the success we have posted regarding the economy during the past year, one negative looms — lack of retention of revenue in our money supply. A recent study indicates Brookings has an effective buying income—that is disposable, after tax income—of 59%. In other words, 59% of the after tax income stays in Brookings—which amounts to $8222 in retail sales per cppita. The state averpge is 69%. Our neighbors to the north (Watertown) boasts an effective buying income of 94% or $13,917 pnd Sioux Falls of 86% - translating to $16,100 retail sales per capita. As mentioned earlier, the Average Annual Pay is higher in Brookings thpn in Watertown or Sioux Falls—this means only one thing — Brookings people are not shopping in Brookings and therefore they bring saies tax revenue to other communities. If Brookings were to perform to the state average (69% EBI) of retail sales per capita spent in our community, roughly from $8222 to $9781 retail sales per capita; it would add approximately $40,537,$98 into our focal economy —equating to an additional $770,220 sales tax revenue collected annually. People of Brookings, this is money that 3 21Q belongs in the Brookings economy. This is money your local government can use to fund more services for you and your family, enhancing your quality of life. The city council has already set into motion a preliminary review of the commercipl zoning within our community. It has asked the planning commission to study how Brookings can expand its commercial development cprefully. Location for commercial expansion is at a critical low, pnd we must develop areas with caution to hefp a{low for the expansion of more buying options for consumers. It is also time our business community and the people of this community come together and build a partnership — a partnership that unites and works together to bring success to our community. A true `partnership' is made up of people doing their pprt. Business must work to meet the needs of our citizens, their customers. And citizens must give our businesses the feedback they need to provide the products and services they want and buy locally: proving their loyalty. Finally, our quality of life. Abraham Lincoln remarked "The legitimate object of government, is to do for a community of people whatever they need to have done, but can not do by themselves in their separate individual capacities." Lincoln understood the quality of living within a community for its citizens depends upon the success of the governing body in providing efficient and effective services in which we all collectively pay for—together. This sense of togetherness and community pays off - it pays off for us because we have defined municipal services: ie. good streets, a park and recreation system second to none, a well planned and zoned city, life safety services through law enforcement and fire; we hpve below mprket utility rates, the best public library in the state, and as mentioned earlier, several larger facility investments— with the recent addition of a senior center. However the council's efforts do not end here. Severai quality of life improvements are slated for 2004: the planning process is beginning ps we look at a iong range housing plan for Brookings for the next 20 years; considering the current and future growth of SDSU and their move to Division I. Student housing will be an important accommodation to make in our community and a solid plan for development will be critical to a sustained, sensible growth ppttern. The council will consider very shortly the concept of a wellness plan for the people of Brookings — a community strategy developed by the Centers for Disease Control which proactively helps communities increase the quality, availability and effectiveness of educationai and community-based programs designed to prevent disease and improve health and quality of life. The council will host a Town Hall Meeting: designed primarily for the purpose of seeking community input into the question: What is the most important quafity of life issue facing this community? Town Hall meetings are excellent forums to facilitate discussion and set priorities and will prove to be an effective method of keeping the people of this community in touch with the issues facing the mission of our city. This will provide the councif with clear direction from the input obtained directly from you —the people we serve. I would like to tpke this opportunity to thank my fellow councilors. They have given of themselves and sacrificed their time generously. It has been an honor to serve along side you. I would also like to thank the people involved in the work of pll of our boards and commissions. Their efforts are admired, appreciated and have been successful. And finalty, thank you to the staff at city hall and our city employees. Our management team along with the steady leadership of our interim city manager, Allyn Frerichs, went above and beyond the call of duty these past six months. And a special welcome to our new city manager, Alan Lanning. As your Mayor, 1 am looking forward to another year of high energy and progress. There is a saying that the only pppreciable asset in any organization is its people. I firmly believe we have the quality people it takes to build a committed community team through valued partnerships that work together towards our mutual goals, dreams and aspirations." Liqvor License Application Process. The Council reviewed the proposed schedule and application process that would advertise one agreement. Roden recommended the Council consider offering both operating agreements. She was also concerned that if one agreement is held back, what is it that determines what brings it off the shelf� How is that defined? Bezdichek agreed recommending the City issue one agreement to Skinner's and another one that generates revenue. Bozied agreed that the Council should advertise both agreements. Bezdichek said he assumed Skinners will apply; however, there is no assurance that they would get one. He clarified that he would support their application as an existing business that has been here and put in lots of money into the downtown area. 4 211 Reed asked how much of a population increase is needed to get another license. The City Attorney said they would have to wpit until the estimated census adjustments are made which would be in 2005. McClemans said he has discouraged licenses from sitting on the shelf in the past and had no problem ietting both licenses out at the same time. However, an application process'is still needed. He doesn't know if giving them both out in the immediate 2004 timeframe is what is necessarily the best use. Ne recommended the Council not be in a rush. The Council discussed the application process and packet. They agreed that the same application requirements would be included in this process to include a business plan, completed alcohol license, site plan, and other supporting material. There was discussion regarding the criteria. Should it make a difference how much revenue a particular business has made or could make? Reed thought that it should if revenue generation was one of the criteria. Roden questioned if the Council would be looking at the business's current records or projected revenues? McClemans said looking at the type of business, not just revenue, is needed. What is the best revenue generptor may not be the best use for the city. Bezdichek cautioned that if the Council is going to look at revenue generation, will they later consider removal of license for lack of revenue? Roden said she would like to see a fine dining place; however, thpt may not be the biggest revenue producing business. She agreed that a license should not be issued based solely on revenue. She also doesn't want to review the private records of a business. The schedule was revised to include Council review of criteria at the May 4th meeting. The City Attorney recommended that the current "Second tier criteria" would address the Councif's issuance of an pgreement. Larson Ice Center Policv. A motion was made by Reed, seconded by McClemans, to adopt the Larson Ice Center Poficy. All present voted yes; motion carried. LARSON ICE CENTER POLICY WHEREAS, the Brookings Parks and Recreation Department is responsibte for operation of the Larson Ice Center for the City of Brookings, and WHEREAS, the building's purpose is to serve as a site for ice skating and other community events and activities that can be accommodated within the guidelines of this policy, WHEREAS, the animal holding barn/multiuse area of this facility will of great benefit year-round for all types of livestock events and especially horse shows, either held entirely in the multi- purpose are or as support to the exhibition arena and can also expand into the practice rink during the non-ice season. Numerous other community uses will vie for time in the facility, including recreation activities such as soccer and baseball practice, auctions, car shows, equipment shows, etc. � � IT IS HEREBY AGREED that the following policy shall serve as a basis for all decisions regarding the use of the Larson Ice Center: GENERAL USE Competition (Red) Rink • Any ice skating activities are acceptable. • Dry floor activities such as trade shows, rummage and auction sales and other uses suitable for a painted floor surface. • No live animal events (other than the 2005-2006-2007 Arabian Horse Show already approved prior to this agreement). 2 Practice (Blue) Rink • Any ice skating pctivities • Dry floor activities, auto shows, auctions, roller skating, floor hockey and other uses suitable for an unpainted concrete floor. • Live animal events permitted with appropriate precautions to protect floor, rink facilities and equipment. Multi-Purpose Room�Holdina Barnl • Any dirt floor activities such as auctions, automotive or motor-cross events, sport shows, etc. • Live animal events and as an animal holding barn for Swiftel Event Center pctivities. 5 � l 2� • Recreational field activities including baseball, softball, soccer and football. � Application for Second Penny Funds, City of Brookings, SD February 9, 2000. 2 September 23, 2003 City Council Minutes: Larson Ice Center—Approved Policy. Goals and Expectations with and for the City Manaaer. The Council will discuss the�b month and annual goals for the City Manager at the April 20th action meeting. Allyn Frerichs was commended for his extraordinary performance as Interim City Manager. CM Roden requested future council packets state the legal reason for entering into an executive session. Executive Session. A motion was made by Bozied, seconded by Reed, to enter executive session at 7:13 p.m. for legal reasons to consult with legal council with the city council members, the city manager, city attorney, municipal utilities staff and board representatives and city clerk present. Afi present voted yes; motion carried. A motion was made by Bozied, seconded by Whaley, to leave executive session at 7:32 p.m. All present voted yes; motion carried. Adjournment. A motion was made by Roden, seconded by Reed, to adjoum. AIt preseni voted yes; motion carried. Meeting adjourned at 7:32 p.m. TY O ROOKINGS � ��\�pp739���+�T/. y:, o nsterman, Mayor :T oi � ' �j�� o• !// ' s, Brookings City Clerk qKOra 6