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HomeMy WebLinkAboutCCMinutes_2005_09_06 447 Brookings City Council September 6, 2005 The Brookings City Council held a meeting on Tuesday, September 6, 2005 at 5:30 p.m., at City Hall with the following members present: Mayor Scott Munsterman, Council Members Michael Bartley, Tim Reed, Julie Whaley, Ginger Thomson, Tom Bezdichek and Michael Reitz. City Manager Alan Lanning, City Attorney Steve Britzman, and City Clerk Shari Thornes were also present. Discussion regarding the Mayor's"People Helping People"program was added to agenda. 2006 Bud�et Ordinance No. 31-05. A motion was made by Whaley, seconded by Reed,to approve first reading of Ordinance No. 31-05, an Ordinance appropriating Monies to Fund the necessary expenditures and liabilities of the City of Brookings for the 2006 Fiscal Year and providing for the annual tax levy and annual tax for all funds. Discussion: Lynn Darnall, Boys and Girls Club President, asked about the status of budgeting � second penny funding for the Club, noting that the current document did not reference t�i�� ��'�� $100,000 per year for S years as previously discussed. Lanning said the second penny projection document is a planning tool. Funds are inserted as the budget is approved on an annual basis. The budget document is current showing$100,000 as a capital outlay. Separate action for this expenditure will be needed on an annual basis. Munsterman requested the issue be reviewed at the second reading. Action is scheduled for September 13. All present voted yes; motion carried. Verizon Agreements. The City Council reviewed draft lease agreements between the City of Brookings and Sanborn Cellular, Inc., d/b/a Verizon Wireless for two cell towers located on North Medary and 22na Avenue. The agreements would enable Sanborn Cellular,Inc.,to lease two specific sites on land owned by the City of Brookings for the operation of wireless communication facilities. Lanning noted that the City Attorney is working on a uniform model agreement. Britzman said the North Medary project is next to the community gardens and go-cart track. The company would utilize a 60' x 60' area for the tower, equipment and building. The tower is a monopole,which is free-standing supported by a large concrete base. There are currently towers ranging from 80-100 feet on city property. Sanborn Cellular is seeking a long-term lease for duration of 5 years with four 5 year renewals. The annual rents are competitive and will adjust with inflation. Jim Adkins, Brookings Telephone,has reviewed both agreements and found them favorable. The second lease location is at Edgebrook Golf Course within the trees on the north edge. The site will be screened by a fence and plant material to be done by the Parks Department. Brookings Downtown Streetscaae Proiect. Lanning said the city felt it was important to examine the underground issues on Main Street. To achieve this, Civil Design Inc. (CDI)was retained to prepare a Facilities Plan for the Downtown Main Avenue Utilities Improvements. This analysis was not part of the original Downtown Streetscape Study. Lanning said it seemed prudent to examine the underground infrastructure in order to determine whether its replacement or reconstruction should be part of the Streetscape Project. The Facilities Plan examined alternative options for construction of utilities,which included water main, sanitary sewer main, and water and sewer services. Bretsch said it appeazs that Alternate 2 is the most reasonable option to pursue. The Council examined a"Streetscape Estimate,"which is the original cost estimate minus the removal of items that would be part of the Utility replacement plan. The Utility replacement plan does include replacement of curb and gutter, sidewalk and street.surfacing. Potential funding for the Total Streetscape Project could include the following: Streetscape Grant: $357,000 2006 City Budget: $700,000 BMU Remove&Replace Water& Sewer Mains $349,275 448 Property Owner water/sewer service cost: $132,900 DENR State Revolving Fund(SRF low interest loan) unknown DENR Consolidated Grant unknown Urban Street Funds unknown 2006 Street Improvement Budget(overlay& chipseal budget) unknown CDBG Grant through Governors Office of Econ. Dev. unknown Carey Bretsch, CDI, said if the city proceeds with surface treatments downtown it will ignore the problems underneath. The utilities system is over 90 years old with clay tile. Brookings Municipal Utilities (BMU)tried to run a camera through all surface lines and did get through some. Those they could see were not in good shape. The downtown utility system is in need of replacement. This study provides documentation to apply for additional funding. A utility replacement project would include lines that could accommodate sprinkler systems. He has explored three alternatives for replacement and the preferred option is to leave the existing steam tunnel and route new utilities underneath. There is an abandoned steam tunnel running the length of project which is filled with sand and cement. The tunnel is one foot below the surface and is 6-7 feet tall. Plans with exact dimensions do not exist. All electric and telephone services runs through the alleys. There is little electrical on Main except for secondary types. Water and sewer would be run under the tunnel on Main. Running lines on both sides of the street was examined, but would be cost prohibitive. Bezdichek questioned if there were ever a problem,wouldn't it be easier to fix it on either side of the tunnel rather than have to bore underneath. Bretsch said there would be little chance of problems with new piping. The current system is 90 years old. Removal of the tunnel would involve asbestos abatement. Bartley asked if including electrical and telephone from the alley to Main were considered. No, because BMU recently updated these services. Bretsch clarified that the $2.2 million estimate is without duplication. Bartley asked if store owners would be charged to hook up to the larger water main to facilita.te spri�kler systems. Yes. Would all owners be required to participate? Bretsch said it would be a small fee to hook everyone to the main line. We don't want them deciding later and then needing to dig up the street. Lanning said now that this.study has been done,the City can begin applying for other grants. The larger project of streetscape and infrastructure would provide long term health of Main Street but would take an additional $1 M. The obj ective will be to pursue funding through other avenues. The next step will be to identify all funding sources and plan to pay for it. Munsterman asked what the $868,000 number represented. Lanning said only the "beautification"part of the project. Roundabouts and Depot Park are not included. Gordon Ommen, Capital Line, said he felt the Depot Park would provide enhancement to the project. His firm recently purchased and renovated the old train depot. They would be interested in a public/private partnership to give the citizens back their original park. He contacted Randy Fisher who did the streetscape plan and asked for a professional engineering study of the traffic in that area including the corners. He said the Park would not be contingent on the downtown project,but a complimenting project. He felt the project could be done in a very cost effective manner and could serve as a catalyst for further development. Allyn Frerichs, Park and Recreation Superintendent, said some businesses have concerns about vacating that street for a park. More public discussion is needed on the project. Munsterman asked what types�of problems would be caused by diverting the Front Street traffic to Third Street. He recommended the City staff identify the problems, sort out the issues,present to the Council,and then the Council come to a decision on this project. Whaley noted that she had requested a traffic count for Front Street some time ago. 449 Whaley asked if anyone had talked to the Farmer's Coop. Do we want grain trucks on Main Street? Can they make that 90 degree corner from Main to Third? Whaley expressed concern about the Third Street intersection with the fire department and elevator a11 using that corner. Munsterman said the feasibility issues need to be examined. He recommended that city staff meet with Capital Line to identify the city's financial share and the private contribution, and then return to the City Council to make a decision. Bartley asked if the Fire Department plans to use the former Senior Citizen building on a long- term basis. Lanning said the city currently leases that building to the volunteer firefighters, but they would be willing to move if provided another facility. Ommen noted that there would not be a loss of parking spaces with this plan. Anyone with a big event would be welcome to use their private lot. Britzman said it is fairly common for cities to have parking arrangements/agreements with private owners. Ommen requested the Council proceed with this project ahead of the streetscape plan because it doesn't require infrastructure rebuilding and it is low cost. MOTION: A motion was made by Bartley,seconded by Thomson,to direct the City Manager to put together two proposals for funding: one for the Brookings Downtown Streetscape Project and one for a partnership to build Depot Park. All present voted yes; motion carried. Brookin�s Municival Airnort Master Plan. At the July 5�`Council Planning Meeting,Helms &Associates made a presentation on the Airport Master Plan. They presented several alternatives and rated them three alternatives based on cost, improved wind coverage, land use incompatibilities,runway extension, home/business purchases, environmental issues/process and other issues. Staff has worked with the consultants to formulate a project-phasing plan and also prepared a cost estimate for those phases. Local and regional airport officials gave a presenta.tion. General Fundin� Sources: 1 . Airport Trust Fund: A. Provides revenue to fund airport improvements B. Aviation user taxes pay into the pot of money to make the improvements. 2. Airport Improvement Program: � A. Provides grants to public agencies for the planning and development of public use airports. i. Cost Sharing ii. Type of projects that are eligible a. Airfield Improvements b. Non-revenue generating items B. NPIAS (National Plan of Integrated Airport Systems) 3. Obligations for accepting AIP funding A. Operate and Maintain the airport in a safe and serviceable condition B. Mitigate hazard to airspace and airport property 4. Types of Funding under AIP: A. Airport Improvement Funding ($150,000 automatic for NPIAS airports, can bank funds for a five year period, and Brookings has received$2 million in AIP); B. Discretionary Funding(can come from the same trust fund as AIP,money received on a priority basis, and Brookings has received$4.5 million in discretionary); C. State Apportionment(money paid to the sta.te out of DOT bill, State can distribute to their airports for special projects); D. State Funding (state's share 2% of all federal projects, Brookings has received $138,000); and � E. Local Community Funding(City's share is 3%, Brookings has paid$180,000 to the $6.6 million dollars paid by government agencies). 450 Patrick Dame, Brookings Airport Manager, discussed the importance of jet and turbo prop traffic. Many companies are investing more in their own airplanes. They want to land at a facility that is safe enough to operate their aircraft. Most require a 5,000 foot runway. Brookings is at 5,228 feet with width of 100 feet. Bezdichek asked if there is a fee to land at the Brookings airport. No,the lack of landing fees may encourage pilots to fuel in Brookings. Bezdichek commented that local industries are encouraging a new airport because their cost is little or none. Spending $264,000 on each company to enable them to land in the Brookings Airport just to buy fuel is too much. Dame said there are options for additional revenues such as landing fees based on weight.� However, to put that fee on corporate and not general aviation would be unfair. Dame said the City needs make the community more attractive to industry by giving them a good mode of transportation to get here. Dame discussed mitigation issues at the current site to include the railroad, wetland areas, ru.nway protection zone(rpz) and existing buildings. Dame reviewed projected cash flow scenarios for the phasing of a new airport. He noted that no funding is guaranteed and all are estimates. He estimated$23M for phases 1 and 2 for the next 10 years. To proceed to the next phase,justification for a 6,500 foot runway length would need to be achieved. That would be done through documentation of demand. Brookings already has the justification for a 5,500 foot runway. Munsterman asked if they talked to SDSU about future boarding projections. Yes,those projections are included in the master plan but not in the condensed version. Reed asked if those numbers were SDSU use only or if that included forecasting charters. Dame said only SDSU usage. Dame said the high and low value of land sales is the big variable in this document. There aren't typically sales of acreages that large and that close to community, so it is difficult to make an estimate. Bartley asked if the City would start selling land by 2009 and would the city ha.ve to sell 100% of the land to make this work. Dame said portions of land outside the safety areas could sell prior to the airport being closed. By year 3, development areas could be sold. By year 6,the crosswind runway could be eliminated. Years 6 and 7 would be for constructing the new facility. He noted that the city has been expanding approximately 38 acres of development land per year. Bartley noted that access to some of the areas is not great and didn't see how those properties could be developed until the access area was developed. Dame said the FAA may require that the land has to be sold after the new airport is open. In order to maximize the City's potential benefit from existing facility, it may be best to sell it off in parcels and reconnect arterial streets. This area was not addressed in 20 year comp plan. Lanning said the goal will be to pre-plan the airport, attach land designations, and sell in portions. They may pre-sell in 2009 for development in 2012. Bezdichek asked who is removing the concrete runway noting a tremendous amount of useable gravel under the pavement. Dame said there are willing buyers and the millings can be reused. Rita Thompson, Finance Manager, provided the City payment options for high and low land sales. With high sales, the city could borrow$9M with payments for 9 years to be paid with sales tax revenue from 2009 to 2015. Phases 3 and 4 would be paid from land sales only through 2014 paid up in 9 yeazs. It was noted that the city has little available cash prior to 2013 when the Swiftel Center and Library are paid off. With low land sales,the land sells for$3M paid over 15 years which the city could cash flow based on 3% increase on revenue. No money would be transferred back to sales tax revenue in this scenario. The City also has the Property Tax Opt Out as an option,but this would limit the city on what it could do for other years. The City is also close to full debt capacity. ' Thomson asked if a private partnership on the airport was an option. Dame said it was possible, but the city would have to find a private party willing to partner. � 451 Bezdichek asked if the FAA would buy out existing hangers. Dame said it would be a lease-buy back. Hangar owners have built on leased land. It would be a cost to city to relocate hangars. Dame said three Minnesota cities are currently investing in their airports: Jackson, Pipestone and Luverne. Two of the three cities are within 70 miles of Brookings and would be direct competition for business/industry attraction. Dame referenced letters of support for expansion of the Brookings airport and aviation program from VeraSun, First Bank& Trust, HyVee, Prince, and NetJets. Dame noted that if the City goes through the feasibility site selection and is unable to locate a site, it will need a fall back expansion alternative. Bartley questioned potential cost overruns with the project with the project being 15 years away. 'The consultants said they were comfortable with the estimates that include inflationary factors. T'hey have constructed new runways in Winner, Pierre, and Aberdeen. The biggest variable would be the FAA discretionary funds because there are no guarantees. Critical aircraft forecasting was discussed. Consultants analyze what family of aircraft is more likely to be used based on demand. The emphasis on SDSU charters doesn't include other corporate activity. The operation forecast for 2010 is 360 operations. The SDSU football program would operate larger aircraft. A 6,500 foot runway would accommodate these charter needs. Bartley suggested obtaining aircraft needs statistics from other Division 1 schools. Munsterman asked if there were development phases on the back-up plan for selling off property. Yes, there are 50 acres that could be considered. More building development could be done off the end of the runway. There are limitations on what can be built because of sightline requirements. Dame said the area will still need deer fencing installed by 2006, which is not in the budget at an estimated cost of$1 M. Bartley asked if EAS is eliminated, would the city still be required to do this. Dame said the City is licensed as a Part 139 which enables the city to take in commercial service. Robb Sexauer,Airport Board President, said the Board was in favor of moving the airport or upgrading the present airport without losing runway length,contingent upon a satisfactory agreement with general aviation hangar owners and the city of Brookings. Jackie Lanning, City Engirieer, said moving forward with a feasibility study won't lock the city into a new airport project,but will provide answers to questions. The study is needed in order to finish the master plan. Bartley said this is a large financial commitment and it would be difficult to make that level of commitment with so many unknowns. A study would prove or disprove that the airport could be moved. There are concerns with general aviation and they have included in the plan. He commented that there is a November 1 St deadline to submit the city's intent to the FAA. He requested documents that prove the deadline. He also requested documents on the FAA's commitment to the project. Is mitigation possible for other options not currently on the table? He said no one wants to see the runway reduced;however, EAS is a fickle arm of government with no direct control. He'd like to see the city's plan centered on the fact that it may not have EAS. Bob Babcock said the FAA doesn't support changing the minimums on the ILS,but may consider changes on an interim basis while the city is moving forward to fix the problems. He said once the study and environmentals are done,the FAA should participate at 95%funding level. Brookings needs to get on their list for grant funding. Bezdichek stated he was totally opposed to a feasibility study for site selection to move the airport. He said the city understands the issues with the current airport and believes those problems can be fixed. �4 5 2 The study would be funded 95%by Federal, 3%by state, and 2%by city for a total cost to the city of$9,000. The timeline would be 2006-2008. Whaley, Reed, and Thomson said they were open to a study. Reitz said he was not opposed to the study but thought more could be done with the current airport. He would like to see building on the northwest side. Dame noted several mitigation concerns with that azea. Dame commented that one of the biggest tests from the FAA is what they get for a return on their investment. The FAA currently has $6M invested in the Brookings airport. They are co- owners in this asset and the City is responsible to manage it. Part of investment includes the ability to expand the facility. The item was scheduled for action at the next meeting. Operation PeoUle Helping People. The Mayor outlined a plan called"People Helping People" designed to help relocate and restore families affected by the hurricane disaster area to Brookings. The relocation packet consists of components addressing the following needs: housing,jobs, education, funding assistance,transportation, cultural transition support, communication, medical services, community support and other unmet needs. A team of volunteers is working on the package. Adiourn. A motion was made by Whaley, seconded by Reed,to adjourn. All present voted yes; motion carried. Meeting adjourned at 9:00 p.m. Ci •ookings i co . terman,Mayor ATTEST: �� arr oF . a ,,.. �°�'' '"PO''°�� A• o �_ �9'p o�•o � i y 'z C�Dit `t �� " ornes,City Clerk