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HomeMy WebLinkAboutCCMinutes_2005_07_26 420 Brookings City Council Tuesday, July 26, 2005 The Brookings City Council held an action meeting on Tuesday, July 26, 2005 at 5:30 p.m., at City Hall with the following members present: Mayor Scott Munsterman, Council Members Tom Bezdichek, Michael Bartley, Tim Reed, Julie Whaley, Ginger Thomson, and Michaei Reitz. City Manager Alan Lanning, City Attorney Steve Britzman, and City Clerk Shari Thornes were also present. Consent Agenda. Action on the City Council minutes was removed from the agenda, Ordinance No.'s 23, 24, and 25 pertaining to the Airport were removed, a proclamation was added,the order of Resolution No. 61-OS and the Development Agreement was reversed, and an executive session was added. A motion was made by Bartley, seconded by Reed,to approve the consent agenda which included: A. Adoption of the agenda as amended. B. Bids. Action to award bids for surplus cars for the Police Dept to Asia Motors, Inc.,Chicago, IL: 2002 Ford Crown Victoria-$3,389,2003 Ford Crown Victoria-$6,289 for Total Bid of$9,678. No other bids were received. All present voted yes; motion carried. Onen Forum. Gary Aguiar requested time to discuss the policy making process related to Ordinance No. 22-05. The Mayor requested this item be scheduled for a Planning Session discussion,the date to be determined by the City Manager. Mavoral Proclamation. Mayor Munsterman proclaimed July 26, 2005 as "Jerrod Neidermeyer Day." ABLE Awards Presentation. Fishback Soccer Park and Fergen's Clothing were presented with the 2005 ABLE Awards for outstanding contributions to the cause of fully implementing the Americans with Disabilities Act. House Movin�—Lass. A motion was made by Reed, seconded by Bezdichek,to approve a house moving request from Gene Lass to move a single-story ranch style house from the Building Trades Department at Sioux Va11ey High School,Volga, SD,to the property described as Lot 18A, Lass Addition, also known as 302 Twin Oaks Lane. A motion was made by Reed, seconded by Bezdichek,to require a performance bond of$20,000. All present voted yes; motion carried. On the original motion as amended, all present voted yes; motion carried. House Moving—Christianson. A motion was made by Whaley, seconded by Reitz, to approve a house moving request from Sherri and Brian Christianson to move a single-story ranch style house from Carlson Homes, rural Watertown, SD, to the property described as Lot 5, Block 2, Bluegill Addition, also known as 2103 17`�Ave. South. No comments were made. All present voted yes; motion carried. Develonment A�reement. A motion was made by Thomson, seconded by Whaley, to remove from the table. All present voted yes; motion carried. Original Motion: A motion was made by Bartley, seconded by Whaley, to approve a Development Agreement between the City of Brookings and Lowe's Home Centers, Inc., a North Carolina corporation. Discussion: Duane Minor didn't think the property was worth that much. If it was, someone else would be willing to buy it. Todd Brost felt the city was interfering in the fair market system and that the former K-Mart building property wasn't the best choice for Lowe's. He recommended a bare lot option that may be cheaper. David Kneip asked if an appraisal had been done on the property. Lanning said an apprazsal hasn't been obtained and won't be unless the City Council directs him to do so. 421 Alan Lanning gave a square foot comparison of oth r commercial property sold in Brookings. He examined 18 commercial land sales ranging fro $1.90 to $11.87 a square foot. The combined cost of the two parcels for this deal is $6. 9/sq.ft. This is consistent with current market rates. The property's location, I-29 access, size, and proximity to Wal-Mart and other retailers are attractive to Lowe's. Kneip thought it was senseless for the City to be so 'nvolved in this develop�nent and that it was tearing down a very good building. That building as value for other developers. He also recommended bare land at a lesser cost. He cautio ed that the sale of this land at this price would set an established price in future condemnat ons. Bartley said the city isn't looking to condemn any l nd. This property that is already zoned and located adjacent to big retail has increased value. t cannot be compared to a bare cornfield. Kneip asked if the land sale was contingent upon L we's coming. Lanning said if they don't come, the city will get the land back. Kneip asked if Lowe's would be required to sign a erformance guarantee for sales tax revenue. No. Gary Aguiar said Lowe's can withdraw from entire deal without penalty and the City is left holding the land. Lanning said there has been a gr at deal of due diligence on the part of Lowe's. If it fell through, the city would own the la d and could resell it. Britzman clarified that the purchase of the land and the decision ofLowe' to proceed will occur simultaneously in a dual closing. Leon Pesall asked if anything will be done to addr s the traffic problems on Sixth Street. Lanning said a variety of road projects are schedu d to occur throughout the city. Lowe's will participate in the intersection improvement costs. he State Dept. of Transportation has the 22"d Avenue to I-29 bridge portion of Sixth Street on the'r 2009/2010 plan. Donna Ramsay asked where the retail incentive fu ds will come from. Lanning said the city would bond the money and income from the projec would pay back the bond proceeds. These would not be funds taken from other ciry line items. Commencing in 2006, the city would make a payment of$345,000 per year for 9 years. The ci has also set aside a 20%economic development fund that could be used for this purpo e. Repayment of funds will not detract from any other established projects. He clarified that s les tax revenue is generated by discretionary buyers (consumers), not the business owners. Sale tax is collected and passed through by business owners. Jessica Kuechenmeister was supportive of the City s proposal and felt her family's construction business would benefit greatly. She agreed that th was a risk, but fedt the city should have no problem getting the money back through increase sales tczx. Leon Pesall said the city is counting on sales tax r venue to repay a bond, but Lowe's will steal sales tax from other businesses. How will revenue be replaced from the general fund? Munsterman said sales tax revenue is a moving ta et depending on the market. Rapid City's market didn't experience much shift from existing new businesses. Marie Kurtenbach-Cooper owns two businesses a d they buy everything in Brookings. She questioned why other citizens didn't support their ommuniry businesses. She said once Lowe's is here, other businesses will come. She noted tha Mitchell was struggling before Cabella's arrived and now look at everything that has come that will happen to Brookings. She recommended the City further investigate bare lan options. Citizens want Lowe's to come but not by spending this much. Lanning showed Lowe's other locations and the K Mart/Big'O property was the one and only location they wanted. They want the visibility of t at location, which is consistent with how they build stores. 422 Scott Dominiack also recommended the city obtain an appraisal. He said the Rapid City Lowe's Store hasn't increased their trade area. Todd Brost questioned if Lowe's would ask for additional incentives. Lanning said the agreement stipulates the incentives. Anything else Lowe's receives, such as property tax relief, would be reduced from their contribution. Deb Dominiack thanked the Council for serving and reminded them that they represent the community, a community full ofpeople opposed to the project. Lowe's is welcome in Brookings, but no one wants to give them money. Lowe's could buy everyone in Brookings. She urged the City not to buy land that wasn't appraised and asked them to gather more information. Mike Lund said he was reminded of the hostility 30 years ago when the Utilities purchased land to bring in Coast to Coast. He asked if the Department of Transportation wanted to vacate their facilities on Sixth Street, and if it would be possible to set that up as a potential site. He also asked if it would be possible to determine how much of Larson's payroll is generated by Lowe's. Lanning said the ciry is in negotiations with the State on that properry. Glenn Kuschel said Lowe's is a good company and Larson Manufacturing has done business with them for a long time. He said they want Lowe's here because they are successful and will bring businesses to town. Lowe's will pay their own way. Lowe's is a magnet to outside shoppers. Right now it is too easy for people in Brookings to shop somewhere else. He urged the City to bring Lowe's to town. Council Discussion: Reed said retail development will be very important for Brookings. We have a strong industrial base, but we have a weak tax base. He acknowledged that retail development is the way of the world. But he recommended a more controlled approach with the city developing a master plan for retail development. He would have preferred to have done a complete impact study of Lowe's to evaluate total projected sales tax. He recommended a performance agreement with Lowe's or a better understanding of their impact of taxable sales and the impact of"sales shift" in the area. We also don't know Lowe's strategy, meaning they want to place a store in every location possible or regional approach only. Brookings does have issues, but we have had good growth. There are many other financial needs. Brookings needs a strong future, and retail development will be a good tool to expand the tax base. However, he recommended a performance agreement with Lowe's. The Council must optimize the best use of the people's money. Bezdichek said he sees this as a negotiation with retail business. Lowe's has expressed interest in Brookings. When a corporation has interest,they look at the city's geography and market. It is likely that they would look at South Dakota and Brookings. He likened this issue to the"great corporate subsidy con job." He told the Council not to believe that they wouldn't come to Brookings without the money. Corporations do not base their expansions on local giveaways. Whaley said people in town have told her to do whatever it takes to bring Lowe's to town. Something needs to be done to keep people in town and retain our revenues. The Council gave the city manager direction to recruit big retail and everyone, including the Chamber and BEDC, knew what was going on. Bartley said the underlying question that seems to come forward with the Lowe's project is the City's investment in land acquisition for a retail business to locate in Brookings. To expand our retail drawing area and increase the shopping choices for our citizens, using sales taxes gained from locating that business here to pay for it is a bold and innovative concept. Brookings has tried, over the 31 years I've lived here, to encourage people to"Shop Brookings". This approach has had a marginal impact on Effective Buying Income (EBI)over the years. The EBI has stayed even or slightly regressed with this approach. New businesses have located and existing businesses have expanded here over the years, many very successful, others not. The net effect seems to be the same,no increase in people shopping in Brookings. Creating "Unfair"competition for existing merchants appears to be the underlying source of concern. Yet,many merchants have stated that they welcome new business and choices,just not 423 when it's encouraged to locate here with a public/ rivate partnership of investments. Last fall the City Council gave the City Manager the respon ibility of attracting retail businesses to our town. They recognized that there wasn't a lead org nization that was actively pursuing large retail development. It was always assumed that jo creation would take care of retail development. The number of industrial based busi ess jobs has increased over the years, but not retail. Examining what other communities across South ota have offered presents some interesting avenues to explore to reverse the trend of retail lea age. Mitchell's involvement with the location of Cabella's included a purchase of the " ild Life Museum"exhibited in their store. This was made possible by a bond issue to be repai with the increase in sales tax revenues over a period of years from increased taxable sales from Cabella's. Brandon's recent announcement of a public/private partnership that includes a$1.5 illion, 15 year bond issue for a new Holiday Inn Express with a water slide is another example f a partnership that will benefit Brandon. They will use the increased sales tax realized from he project, and a newly implemented additional $2.00 a room tax, to pay back the bonds. Both these close-to-home examples used public/private partnerships to encourage and locate retail business in their towns. Both communities have already or will soon benefit fro these innovative public/private partnerships. There are many more across the coun ry that use similar approaches with successful outcomes. The debate over weather or not Lowe's will locate ere without the investment cannot be proven either way. Lowe's has stated they cannot, and ot rs assume that they will eventually. The indisputable fact,however, is that it will happen w' h this investment. The future of Brookings retail efforts relies on continued growth of all seg ents of our economy. This is a piece of the puzzle that goes along with continued efforts of B DC's recruiting of businesses and creating job opportunities for wages to be spent in our town SDSU's recent move to Division 1 and the recent increase in student enrollments will create t e need for additional part-time jobs for students attending school. Creating a destination f r shopping,health care, recreation and educational opportunities is a large challenge for a y community. This is an opportunity to compliment one segment that is sure to make a pos tive difference in Brookings' future. The "Big"picture requires looking to the future with n ideas and innovations. While there may or may not be others in the future,this is one opportu ity available now that we need to support. Bezdichek said too much emphasis on any one ent� y has proven to be a misconception. Lowe's will be a good addition, but the City is crossing ov r a threshold by doing retail incentives. What another community is doing doesn't matter to him. He lives in Brookings and only cares about Brookings. Once we do this for one business, the ity may never be able to do it for another one. His objective is that there is too much emphasis o one business. ACTION: On the original motion, all present vo d yes; except Bezdichek and Reed voted no, motion carried. Resolution No. 61-05. A motion was made by Re tz, seconded by Whaley, to remove Resolution No. 61-OS from the table. All present oted yes; motion carried. Original Motion: A motion was made by Bezdich k, seconded by Whaley, to approve Resolution No. 61-05, a Resolution authorizing th purchase and conveyance of real property for economic development purposes; authorizing the penditure of funds for the purchase of the real property and for the costs for demolition of th existing improvements to the real property and site preparation and development, and authori ing the documents to effectuate the terms and intent of this Resolution. Discussion: Gary Aguiar asked�ow that he is an investor in L we's, how is the city holding them accountable for performance. He also cited a per eption problem with closed door deals, though he doesn't believe that occurred. He expr sed concern that the ordinance doesn't provide the Council with any criteria for making f ture incentive decisions. Dan Little asked if the Council would consider an ppraisal on the land before purchasing or examine other land options. Lanning responded t at to obtain an appraisal would be determined by Council and that Lowe's doesn't w nt any other land and can't overcome that. 4 � 4 Lanning said the combination of land sale comparables, the location, encumbrances on land, and the two parcel deal makes this deal seem reasonable. Bezdichek said he would appreciate an appraisal and asked why the city was paying the developer-to tear it down. Lanning said Lowe's wanted the property delivered to them in a "buildable"state. The owner will demolish and deliver in that fashion. The City could have stayed out of it and given them the $2.75Mand then they would pay the developer to demolish. Lanning clarified that the city is purchasing a property from a developer, not financing them. Leon Pesall asked if the city was subject to any bfdding processes in this deal. The City Attorney said the properry would be conveyed to the BEDC. The development corporation is not bound by bidding laws. Just like an industrial land transaction, the BEDC is the economic development arm of the ciry and can carry out land sales without a bidding process. Bartley said the appraisal process in real estate has value to a banking institution for loans. However, this is a bond issue and the only requirement is repayment of the bond. The value of the appraisal, to establish if it is a good or bad deal, doesn't change the deal and won't change the numbers. An appraisal doesn't have value in this transaction. Lynn Darnall noted several test drills have been done on the site and asked if additional expenses may be incurred. No, the test drills were done by the Lowe's company. She also is a member of the SD Retailers Association and there is a committee in Pierre that is working to introduce legislation to make retail cash incentives illegal. ACTION: A motion to amend was made by Bartley, seconded by Reitz,to remove the word "Large"throughout the document. All present voted yes, motion carried. On the original motion as amended, all present voted yes, except Bezdichek and Reed voted no, motion carried. RESOLUTION NO.61-OS Resolution Authorizing the Purchase and Conveyance Of Real Property For Economic Development Purposes;Authorizing The Expenditure Of Funds For The Purchase Of The Real Property And For The Costs For Demolition Of The Existing Improvements To The Rea1 Property And Site Preparation And Development,And Authorizing The Documents To Effectuate The Terms And Intent Of This Resolution BE IT RESOLVED by the City Council of the City of Brookings,South Dakota(the"City"),as follows: WHEREAS,the City of Brookings is authorized to acquire real property pursuant to South Dakota Codified Law§§9-12-1(2)and to sell real property to a local industrial development corporation for authorized economic development purposes,and WHEREAS,the City has determined that in order to stimulate and develop the general economic welfare and prosperity of the City it is necessary and desirable to acquire the former KMART and BIG"O"TIRE properties in the City of Brookings,(the"real property",the legal descriptions being on file with City Clerk for public inspection)for a sum,constituting the City's contribution, not to exceed Two Million Five Hundred Thousand Dollars($2,500,000.00)and to convey said properties to the Brookings Economic Development Corporation for the purpose of conveyance of said properties to Lowe's Home Centers,Inc.pursuant to a Development Ageement between Lowe's Home Centers,Inc.and the City of Brookings,and WHEREAS,pursuant to the terms of the Development Agreement,the Brookings Economic Development Corporation will convey title to the real property to Lowe's Home Centers,Inc.at a cost to Lowe's Home Centers,Inc.not to exceed Six Hundred Eighteen Thousand Dollars ($618,000.00),and WHEREAS,the City of Brookings,hereby finds that the transactions contemplated by this Resolution aze consistent with Ordinance No.22-05,which establishes the Retail Economic Development Investment Fund for the City of Brookings,and WHEREAS,the City of Brookings has determined that it is also necessary to expend funds for a portion of the costs of demolition of the existing improvements to the real property and for site preparation and development and hereby authorizes such expenditures not exceeding the sum of 42 � Two Hunclred Fifty Thousand Dollars($250,000.00),with Lowe's Home Centers,Inc. contributing any additional demolition and site preparation costs required,and WHEREAS,the City of Brookings intends to complete the transactions set forth herein pursuant to terms,agreements and documents consistent with this Resolution,which shall be incorporated in a Real Estate Purchases Agreement between Vision Developers,Inc.,the owner and purchaser of the former KMART and BIG"O"properties and the City of Brookings,and pursuant to a Development Agreement between Lowe's Home Centers,Inc.and the City of Brookings wherein the City of Brookings agrees to convey the real property to Brookings Economic Development Corporation which will convey said property to Lowe's Home Centers,Inc.,and such other documents as are necessary to effectuate the terms and intent of this Resolution and 1. The transactions set forth herein are hereby authorized,and 2. The City Manager and City Clerk are hereby authorized to execute on behalf of the City the documents required to complete the transactions described herein. Resolution No. 62-OS—Reimburse Expenditures. A motion was made by Bartley, seconded by Whaley,to remove from table. All present voted yes; motion carried. On the original motion from July 12, 2005: A motion was made by Bezdichek, seconded by Reitz,to approve Resolution No. 62-05, a Resolution declaring intent to reimburse expenditures with proceeds of Bond Issue. All present voted yes; except Bezdichek and Reed voted no; motion carried. RESOLUTION NO.62-OS Resolution Declaring Intent to Reimburse Expenditures With Proceeds of Bond Issue WHEREAS,the City of Brookings(the"Issuer"),by virtue of the laws of the State of South Dakota,particularly SDCL§ 10-52 issuance of sales tax revenue obligations of the Issuer (the"Bonds")in order to assist in the financing of economic development grants and expenditures located in the City of Brookings made in connection with the Lowe's project(the"ProjecY');and WHEREAS,United States Treasury Regulations §1.150-2(the"Reimbursement Regulations")prescribe conditions under which proceeds of bonds,notes or other obligations ("Bonds")used to reimburse advances made for capital and certain other expenditures("Original Expenditures")paid before the issuance of such Bonds will be deemed to be expended(or properly allocated to expenditures)for purposes of Sections 103 and 141-150 of the Internal Revenue Code of I986,as amended(the"Code"),upon such reimbursement so that the proceeds so used will no longer be subject to requirements or restrictions under those sections of the Code; and WHEREAS,certain provisions of the Reimbursement Regulations require that there be a Declaration of Official Intent not later than 60 days following payment of the Original Expenditures expected to be reimbursed from proceeds of Bonds,and that the reimbursement occur within certain prescribed time periods after an Original Expenditure is paid or after the property resulting from that Original Expenditure is placed in service;and WHEREAS,this Council wishes to take steps to comply with the Reimbursement Regulations; NOW,THEREFORE,IT IS HEREBY RESOLVED: This Council hereby declares that the Issuer reasonably expects that the grants,capital and other expenditures described in the first recital of this resolution as the Project,to the extent such expenditures are made prior to the issuance of the Bonds,will be reimbursed with the proceeds of the Bonds(as that term is defined in Section 150 of the Code).The maximum principal amount of Bonds expected to be issued for the Project is$2,500,000. This declaration of intent shall be available for public inspection. This Councii fmds and determines that all format actions of this Council concerning and relating to the adoption of this resolution were taken in an open meeting of this Council and that all deliberations of this Council and of any committees that resulted in those formal actions were in meetings open to the public in compliance with the law. This resolution shall take effect and be in force immediately upon its adoption. Grant Agreement-HUD Streetscape Grant. A motion was made by Whaley, seconded by Reed,to authorize the City Manager to sign a$357,660 Grant Agreement with the US Dept. of Housing and Urban Development for Project No. B-03-SP-SD-0726 (Brookings Downtown Streetscape). All present voted yes; motion carried. � � s Joint Powers Agreement. A motion was made by Thomson, seconded by Reed, to approve the Joint Powers Agreement for the Regional Economic Development Model. A motion to amend was made by Reed, seconded by Bartley, to make the following change: "Section 3. Technical Assistance Agreements: ....The City of Brookings, working*�� �e�in cooperation with the Brookings Economic Development Corporation� ����t�°��eie�-a�a�T'�' D°R;���' T';r°^*^rr°' intends to provide services and assistance that would be unavailable to the participating cities, due to lack of expertise and/or lack of funding and be as non-competitive with local providers as is reasonably possible." All present voted yes on the amendment, motion carried. Discussion: Bezdichek said he doesn't know how we can encourage regional economic development when the city is trying to reduce local and regional businesses. He also expressed concern about the city staff's absorbing/increasing work load. Cities may drop out after a couple of years because they don't receive the services they expected. Will this action compete with Banner and other firms providing services to smaller towns? Munsterman said the Regional Economic Development Ad Hoc Committee studied 11 communities and a regional model is what they are doing to grow. Siou�c Falls hired a regional director 10 years ago and started assisting local communities and now Lincoln Couniy has one of the highest housing starts in the nation. The vision is to join efforts together. By joining together with SDSU, other cities, and regional partners, the fund will be able to triple. The smaller communities are excited and support growth in Brookings. They want Brookings to grow and people to locate and build in their towns. Bartley said he has many questions about the viability of the regional economic development model and this agreement is a component of that model. He was concerned that the city wouldn't be able to fulfill its obligations under this agreement through time and staff power. Lanning said it will be diffrcult for staff, but the reason this portion is important is that it may take years for a community to see an impact on the economic development side. These services will help keep the communities engaged in the process. It will provide them with immediate benefit and impact, hopefully keeping their satisfaction level higher. He has extreme confidence in the ciry staff as a dedicated group and they will do whatever it takes. They also understand this is an experiment. The City won't be replacing anyone's engineering services. The economic development arm through the regronal director will assist and provide smaller communities on a regional basis with job growth, etc. He acknowledged that this is a risk and an experiment. Brookings City Resolution No. 83-04 cites the milestones that are to be completed by October 31 S`, and January 1, 2006 is the official kick-off of the regional model. All contributions will be banked on January 1 S`. Al Heuten, BEDC Director, said he doesn't know if the BEDC will have a person hired by January 1, 2006. Munsterman said the Utility and Hospital commitments have been received. Reitz asked what happens if three or four communities drop out after one year. Munsterman said$S0,000 will come from smaller communities and any losses could be made up by remaining communities and other local and regional public and private partners. Dick Edenstrom, First Planning District in Watertown, complimented the city of Brookings for the regional economic development concept. He has met with all the mayors in Brookings County and was impressed with the rapport between the cities. ACTION: On the original motion as amended, all present voted yes, except Bezdichek voted no;motion carried. 427 REGIONAL ECONOMIC DEVELOPMENT JOINT POWERS AGREEMENT This REGTONAL ECONOMIC DEVELOPMENT JOINT POWERS AGREEMENT is entered into by and between the CITY OF BROOKINGS, SOUTH DAKOTA, a municipal corporation (the "City") and the following Public Entities: City of Brookings, South Dakota City of The purpose of this Agreement is to create and establish a Regional Economic Development Joint Powers Agreement dated and effective as of the Effective Date to jointly perform the activities set forth in this Agreement. Each of the foregoing parties (public agencies)that authorize and approve this Agreement pursuant to the adoption of a Resolution of Authorization are hereinafter referred to individually as a"party"and collectively as the "parties". RECITALS WHEREAS, SDCL 1-24-2 provides that any power or powers,privileges or authority exercised or capable of exercise by a public agency of this State, and WHEREAS, SDCL 1-24-3 provides that any two or more public agencies may enter into agreements with one another for joint or cooperative action pursuant to § 1-24-2 to 1 -24-9, inclusive, and WHEREAS, the parties to this Agreement hereby find and determine that it is in their mutual interest to join with each other pursuant to this Agreement for economic development and promotion purposes, to provide greater governmental efficiency through cooperation among the participating agencies and to provide improved governmental services and quality of life of the constitutes of the governing bodies entering into this Agreement. NOW THEREFORE, each of the parties, in consideration of the mutual covenants and agreements of the parties, do hereby covenant and agree to jointly perform the following: 1. Establish and execute a comprehensive, regional economic development and promotion plan. 2. Provide greater governmental efficiency through cooperation among participating agencies in areas such as competitive bidding, fire and police protection, animal control, code enforcement, mosquito abatement and many other areas where cooperation of the participating agencies will provide improved governmental services for the constituents of the participating members. 3. Technical Assistance Agreements: 'The City of Brookings, in an effort to expand cooperative relationships beyond economic issues, will offer certain"Technical Assistance"to those cities participating in the regional economic development model. Each City, based upon their contribution, shall receive a base Technical Assistance "grant", which will consist of a bank of time, whereby certain Brookings staff can be called upon to supply their expertise, to address needs in the participating cities. The City of Brookings, working through the model and in cooperation with the BEDC Executive Director and BEDC Regional Director(s) intends to provide services and assistance that would be unavailable to the participating cities, due to lack of expertise and/or lack of funding and be as non-competitive with local providers as is reasonably possible. Based upon availability and expertise,the City of Brookings shall provide"consultant" type services to other regional cities participating in the regional economic development model and these services shall be called"Technical Assistance". As an example,the City of Brookings might offer Human Resource recruiting expertise to assist a participating city fill a vacant position. The Human Resource Director for the City of Brookings would work with the participating cities to provide recruiting assistance, risk management assistance, compensation/pay plan assistance and a variety of other human resource functions. The attached Technical Assistance spreadsheet provides additional detail regarding the types of assistance that could be offered by the City of Brookings. Other types of secondary services may be offered by the City of Brookings,the type and availability to be determined by the Brookings City Manager. Secondary Services could 428 include work other than"consulting"type services, such as equipment use. As an example, the City of Brookings would make available spraying equipment for West Nile Virus control and eradication or chemicals for such applications. Secondary Services would be available only after the City of Brookings needs have been fully served. Each request for Technical Assistance or Secondary Services will be considered on a case by case basis and the final determination of assistance and/or services will be the responsibility of the Brookings City Manager. The attached"Technical Assistance" spreadsheet, specifically enumerates the types of services offered and the corresponding "charge"to be levied against the technical services grant amount. Participating cities in the regional economic model may access the offered technical assistance, by completing a short form and submitting that form to the either the BEDC Regional Director or the Brookings City Manager. The City Manager will promptly review the request and make the appropriate contacts with the requesting city. Please refer to the "Technical Assistance Application" form. 4. Purposes: To plan and execute a comprehensive plan for economic development and promotion purposes. 5. Term/Duration: This Agreement shall have a term commencing upon the signing of this document by all parties hereto and shall be in effect for a m�imum term of �) years unless unanimously renewed by all participating agencies. 6. Termination: This Agreement may be terminated at any time with or without cause upon the mutual consent of the majority of the member parties. 7. Withdrawal: Any party may withdraw from this Agreement at any time with or without cause upon providing the non-withdrawing parties a written notice of such withdrawal, giving not less than thirty (30) days prior to the effective date of withdrawal. 8. Governance: The activities of the cooperative undertaking shall be governed by a Board of Directors. 9. No Separate Entity: This Agreement does not create a separate legal entity, however the parties hereto may in the future create separate legal entities in accordance with SDCL Chapter 1-24. 10. Finances: A detailed policy concerning finances shall be developed by the Board of Directors and approved by each participating member. 11. Additional Parties: Additional cities or counties or other public entities may become parties to this Agreement upon acceptance and execution of this Agreement, and upon approval by the governing bodies of the parties already a party to this Agreement. 12. Entire Agreement,Amendment,Waiver. This Agreement contains the entire agreement and understanding of the parties with respect to the subject matter of this Agreement and supersedes all prior or contemporaneous oral or written understandings, agreements,promises, or other undertakings by and among the parties. This Agreement may not be modified or amended, nor any rights thereunder waived, other than by a written document signed by all parties. 13. Governing Law/Venue. This Agreement shall be governed by,interpreted and construed in accordance with the laws of South Dakota. The venue of any suit or arbitration arising under this Agreement shall be in Brookings, Brookings County, South Dakota. 14. Captions. The articles and section captions used in this Agreement are for convenience only and shall not control and affect the meaning or construction of any of the provisions of this Agreement. 15. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law. In the event any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without affecting or invalidating the remainder of this Agreement. 16. Counterparts. This Agreement may be executed in counterparts. Each counterpart shall be deemed to be an original instrument. All such counterparts together will constitute one and the same Agreement. 17. Time is of the Essence.It is hereby agreed that time is of the essence in the performance of all covenants and conditions to be kept and performed under the terms of this Agreement. 18. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their transferees, successors and assigns. 19. Third Parties. This Agreement is made and entered into for the sole protection and benefit of the parties hereto and their successors and assigns. No person or entity, other 429 than a party to this Agreement or a legal representative, successor in interest or assign of such party, shall be entitled to rely on this Agreement, and this Agreement is not made for the benefit of any person or entity not a party hereto, and no such person or entity shall be entitled to assert any claim arising out of, or in connection with, this Agreement. 20. Failure to perform. Each party shall give the other notice of any failure to comply with the provisions of this Agreement, and the defaulting party shall have the right to promptly cure such non-compliance. No party shall be considered to be in breach or default of its obligations under this Agreement in the event of any delay caused by damage or destruction by casualty; war; terrorist activity; strike or lock-outs; shortage of materials; unavailability of labor, tools or materials through no fault of the party; unusually adverse weather conditions, including, but not limited to, severe rain storms, tornadoes, or below freezing temperatures of abnormal degree or abnormal duration; floods; earthquakes; acts of God; any other events or condition beyond the reasonable control of the party affected; delays in receiving approvals from any gavernmental agency; and litigation brought by any person or entity not a party hereto; which delay in fact prevents the party from undertaking or completing its obligations under this Agreement in accordance witli the provisions of this Agreement. 21. Authorization. Each party represents and warrants to the other that it has full power and authority to enter into this Agreement and to undertake the actions contemplated by this Agreement. 22. Effective Date. This Agreement shall become effective for each party when that party by ordinance, motion or resolution adopts and approves this Agreement and authorizes the proper official to execute this Agreement. IN WITNESS WHEREOF, this Agreement has been entered into by the parties hereto. Brookin�s Housing Studv. A motion was made by Bartley, seconded by Whaley,to authorize entering into an agreement with the First Planning District to conduct a Brookings County Housing Study Survey. All present voted yes; motion carried. Proposed Agreement Brookings County Housing Needs Assessment FIRST DISTRICT ASSOCIATION CITY OF BROOKINGS OF LOCAL GOVERNMENTS PO BOX 270 PO BOX 1207 BROOKINGS, SD 57006-0270 WATERTOWN, SD 57201-6207 (605) 692-6281 (605) 882-5115 This agreement is entered into between the First District Association of Local Governments and all of the communities in Brookings County. The First District Association of Local Governments agrees to produce a Housing Needs Assessment for Brookings County, including the communities of Brookings,Volga, Aurora, Elkton, White, Bruce, Sinai, Bushnell, and Arlington for a compensation of a minimum of $12,000.00,not to exceed $15,000.00. This assessment will include,but is not limited to,the following: 1. Review of Location • Brookings County and communities (including maps). • Any community site development maps will require additional compensation, to be agreed upon. 2. Review of Community Services a.nd Characteristics. • Schools, churches, transportation,medical services, recreation,parks and shopping. 3. Review of Population Characteristics • Including size, age,race, special needs,type, income, and employment of individuals/households. 4. Population trends • Comparison, growth rates, estimated future growth, etc. 5. Review of Employment Characteristics • Labor force, industry types, employers, commuters, unemployment, and contacting employers on future growth and labor demands. � � 0 6. Review of Existing Housing Supply • Contacting housing providers regarding location, type, age, size, cost, conditions, and vacancy rates/waiting lists. 7. Review of New Developments • Contacting developers, new property owners, builders, etc. 8. Projections of Housing Demands • After surveying the area and contacting vital information sources as listed above, conclusions will be made as to future demands. Draft 2006 Bnd�et Presentation. Alan Lanning, City Manager,presented the draft 2006 budget to the City Council. Presentation of the budget is required by statute prior to August 1 St. There will be a series of ineetings to review the details and finalize the document by September 30`h He noted that the projected revenues are very conservative,using a 3 percent growth for sales tax. No action was taken. Council Members Onen Discussion. Reed will be absent from the August 2nd and August 23`d city council meetings. Bartley requested a re-examination of the Council's practice of appointing city council members to serve on city boards (i.e. Brookings Utility Board,Brookings Hospital Board, and the Swiftel Center Board). With the number of questions the Council has on financial aspects of all these businesses,he thought it be more appropriate that the City Manager or designee attend those meetings. ACTION: A motion was made by Bartley, seconded by Bezdichek, to direct the City Attorney to draft an ordinance changing ordinances to remove appointment of ex-officio members by the City Council and appoint the city manager or his designee." All present voted yes; motion carried. This item will be scheduled for August 2°a Bartley asked for an examination of the action and planning meeting format. He said action occurs at many planning sessions and discussion only items occur at action meetings,which is confusing to the public. He recommended all meetings become action with discussion items. He would also like to see the number reduced from three to two meetings per month. He requested a recommendation from the City Manager on how to proceed with meetings in order to balance __ planning and action items. Munsterman said the intent of planning sessions is to allow one to two hours to hash out topics that need longer discussion without action. Reed requested discussion on August 9th when he could attend. There was consensus to hold a discussion on August 9�'at the end of the agenda. Executive Session. A motion was made by Reed, seconded by Whaley,to enter executive session regarding litigation with the Council, City Attorney, City Manager, and City Clerk present at 9:05 p.m. All present voted yes; motion carried. A motion was made by Reitz, seconded by Whaley, to leave executive session at 9:25 p.m. All present voted yes; motion carried. No further action was taken. Adiourn. A motion was made by Reed, seconded by Reitz,to adjourn. All present voted yes; motion carried. Meeting adjourned at 9:25 p.m. . � c,TY o D unsterman,Mayor �� ,� O� O,y'�Q �f �GQ'q�9� o's? �(/ N. V' ��//�� Y V " �I/�/� Cp�•. S� � ornes, City Clerk