HomeMy WebLinkAboutCCMinutes_2004_10_05 2 � �
Brookings City Council
Tuesday, October 5, 2004
The Brookings City Council held a planning meeting on Tuesday, October 5, 2004 at 5:30 p.m.,
at City Hall with the following members present: Mayor Scott Munsterman, Council Members
Tom Bezdichek, Tom Bozied, Tim Reed, Julie Whaley, Doris Roden, and Mike McClemans.
City Manager Alan Lanning and City Clerk Shari Thornes were also present.
Board of Health Renort. Dr. Merritt Warren, Chair, reported the free leave disposal has
commenced,the 5 year solid waste renewal application is pending, the state landfill inspection
was completed September 1 St,they are pursuing a state loan for a new trench in 2005, and the
Board will discuss the issue of electronic waste disposal. No action was taken.
A�enda Chan�es. The proposal to endorse Hwy 14 as a Scenic Byway was rescheduled. The
reason for the Executive Session was corrected to cite discussion of contractual matters.
Brookings Historic Preservation Commission Renort. Pat Fishback, Chair, reported the
BHPC received additional federal funding to purchase archival supplies for the Norby Collection
and print copies of the Design and Maintenance Guidelines for downtown. The Commission
provided an official statement regarding historic setbacks to the Board of Adjustment. They
facilitated a meeting regarding the creation of a non-profit organization. Two representatives
attended the National Alliance of Preservation Commissions Forum. The Commission plans to
discuss overlay zones in historic districts with the Planning Commission. The 1921 building
developer has requested Brookings High School memorabilia materials for the trophy cases.
Liquor Issues•
• Municipal Liquor Store 2003 Annual Report- Bill Purrington, Liquor Store Manager,
provided a comparison report for the Council. He noted that sales to the bars have grown
substantially and malt beverage continues to grow. Gross profit increased substantially in
2003 and 2004 with the total net profit before transfer up $60,000. He cited 2 factors for the
increase—the price increases and more customers. He is continuing to increase prices in a
gradual process.
Alan Lanning, City Manager, asked the Council if their overall goal was to increase the gross
profit margin or increase the transfer the general fund. Each goal has different strategies.
The retail earnings ratio is not as important if the goal is to increase transfers. Prices may be
increased to increase the margin ratios but in turn the transfer decreases.
The Mayor said he is interested in how to get the most out of this asset. How can we operate
at the most efficient manner with plausible goals? What axe our weaknesses, strengths and
how do we compare with other liquor retailers? Are we doing good business? '
McClemans noted that in 2000 the city was getting $200,000 from the liquor override and
$100,000 transfer. There was interest at that time in expanding and remodeling. �'he
Council questioned if that was a good location to spend additional money on.
Bozied said he would like to see the transfer increased. If a new location was considered,he
would want to see detailed expense and profit projections including what property would be
taken off the tax roles, a business plan, and what could it generate as an independent
business.
� Off-Sale Liquor Operating Agreement- The City has been approached by a local citizen
wanting the City to consider a privately owned satellite store in another location. Lanning
recommended that it was premature for the Council to consider this request until they
concluded the discussion about the liquor store market. The Council requested a date to
review all options and recommendations relating to liquor sales.
Options and factors discussed included:
• What can a satellite store bring to the bottom line?
• Multiple satellite stores without a primary store would leave leave only bookkeeping
expenses.
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• Define benchmarks for the business.
• Need a good assessment of our threshold at the current location.
• Reduced hours at the current location.
• Multiple locations may lose the depth of selection and speciality items. They also
don't have the same purchase power at one store. One person may specialize.
• Can the city have a satellite store (similar to 1 st National bank) in Walmart?
Lanning noted that the city does not currently have a crisis. The store is making a profit and
transferring funds to the city. He recommended the Council engage in a methodological
approach so they reach the right answer at the end of the day. He will prepare a proposal for
Council review at the January 2005 planning session. It will include options, profit and
expenses estimates, and time frames.
• Operating Agreements Policies- The Council discussed additional requirements for new
operating agreement holders to include cash deposits, credit checks, a letter of credit, and
verification that all legal obligations are met(i.e. property taxes paid). When should an
operating agreement be revoked for non-payment? The Council directed tlie City Manager
to develop a policy.
SD Rural Development Council on Communitv Assessment. On July 27, 2004, Council
Member Roden recommended the City Council consider conducting a SD Rural Development
Council community assessment of Brookings in 2005. The assessment program is designed to
help communities develop a"big-picture"objective assessment of their challenges and
opportunities—socially, economically and environmentally, with minimal cost to the city. The
Council decided they were currently overcommitted and to pass on this program for 2005.
Citv Council 2004 Goals. Mayor Munsterman reviewed the status of the Counci12004 goals.
No action was taken.
Le�islative Issues. No additional legislative issues were added to the agenda. Lanning noted
that the Fire District concept was going to be difficult due to how Brookings County assesses
value. They wouldn't raise enough to support the program.
Munsterman left at 8:40 pm
Executive Session—contractual matters A motion was made by Bezdichek, seconded by
Whaley,to enter into Executive Session at 8:13 p.m. to consult with legal counsel regarding
contractual matters with the Council, Manager, Attorney and Clerk present. A motion was made
by Reed, seconded by Whaley,to exit Executive Session at 9:10 p.m.. All present voted yes;
motion carried.
Adiourn. A motion was made by Reed, seconded by Roden,to adjourn. A11 present voted yes;
motion carried. Meeting adjourned at 9:10 p.m.
CITY OF BROOKINGS
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ari Thornes, Brookin s City Clerk