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HomeMy WebLinkAboutCCMinutes_2005_10_11 4fi5 Brookings City Council October 11, 2005 The Brookings City Council held a meeting on Tuesday, October 11,2005 at 5:00 p.m., at City Hall with the following members present: Mayor Scott Munsterman, Council Members Tom Bezdichek,Michael Bartley,Julie Whaley, Ginger Thomson, Tim Reed,and Michael Reitz. City Manager Alan Lanning, City Attorney Steve Britzman, and City Clerk Shari Thornes were also present. Work Session–5:00 p.m. October llth A�enda. The City Manager responded to questions pertaining to the action items on the agenda. � , Council Invitations. The City Clerk reviewed the City Council's upcoming invitations and obligations. ,� � Citv Staff Touic Introduction: . 1. EDI Grant for Growth Partnershia Park. SDSU has asked the City of Brookings to be the grant pass-through entity for an "EDI" grant for the Growth Partnership Center. In order to do this, the City must take official action in the form of resolutions to designate a certifying officer and an environmental officer. Action is tentatively scheduled for October 25th. Dick Edenstrom, First Planning District, was present to respond to questions. The Growth Partnership proposes to construct a Technology Center to serve as a common center (home) for new and expanding technology-based businesses to the Brookings, South Dakota area. This Technology Center project is being undertaken to improve economic opportunities for the area—new higher paying job opportunities for area residents so that they may stay in the area and stabilize the population, base, thus the economic base. In addition, Brookings is home to South Dakota State University. The purpose of South Dakota. State University is to provide higher education; thus, the fums coming to the Technology Center will provide students with job opportunities as both interns and long- term careers. The EDI funds will be used to help construct the structure. Other local funds will go to constructing the public infrastructure (water, sewer, and roads) to the site. The public infrastructure will begin in the spring of 2006, with the construction of the building to be completed in 2007/2008. The City of Brookings and Growth Partnership would be responsible for the implementation of the project. Assistance with the environmental review and other grant administration activities will be provided by the First District Association of Local Governments. Edenstrom clarified that this is a HLJD grant for$496,000. Another EDA grant is planned for this project. Alan Lanning noted that the city will have no financial obligation in this project and it is merely serving as a"pass-through"entity. Administrative costs are to be paid by SDSU. Bezdichek questioned why the BEDC wasn't used as the"pass-through"entity. Thornes said all HLTD/EDA/EDI grants require the governing body, county or city, serve as the grant recipient. Edenstrom said no funds will be released until all the environmentals aze completed and no work will be completed until environmentals are accepted. His staff will prepaze a11 the necessary documents. 1 4 � fi 2. Brookings Municipal Liquor Store. Lanning said in May 2004 the City Council held a philosophical discussion about the Liquor Store. At that time he presented an idea about relocating the liquor store, which the majority of the Council was not in favor of and directed him.to prepare off-sale liquor operating agreements. He presented the following new proposal to lease space to relocate the Liquor Store to mall area on east side. Lanning has been in contact with the mall owners and have negotiated a price for 10-11,000 square feet at the mall. � The term of the lease would be ten years with five options for five years each, thereby giving the City long-term options and location stability. The lease amount would increase 3%per year for the term of the original lease with the option prices to be negotiated. The City would also be responsible for its portion of the common area maintenance which is estimated to be about$.50 per square foot. � The mall location is a very high traffic area and with the extensive improvements to HyVee and the surrounding area,this becomes a very good location for BMLS, particularly given the lease pricing. BMLS would take possession of the space with bare wa11s and floors and a ceiling that is in good repair. Additional construction or changes would result in a higher lease cost. Remodeling costs are estimated at$150-200,000 for structural changes, flooring and wall coverings, walk-in cooler, new tills, sales floor shelving, storage racks, architectural services and engineering services. However,the goal would be to not exceed$200,000 in renovation costs. Lanning recommended paying for the improvements to the leased area,using funds that are cunently being held in reserve, in the BMLS enterprise fund. The additional cash expenditure would preserve additional funds and not affect the BMLS transfer to the General Fund. As with any other City project, an interior space plan/layout would be developed and the project would be bid to ensure compliance with State law and to arrive at the lowest possible renovation cost. BMLS has experienced increasing sales of 5-8%annually in the present facility. After the move is completed, Lanning projected first yeaz increases approaching 15%and followed by 10%increases the next two years (2007 &2008). More modest increases have been projected for the next three years, simply because the sales base will be larger and it is harder to predict large percentage increases on a larger sales base. The plans would need to be submitted to the mall owners for approval. Once approved construction and equipment could be bid. Projected relocation in early 2006. The iwo buildings could be sold separately or as a package. Ultimately, a new store might be the future of BMLS,but with a favorable lease in a favorable location,this option gives the city both short-term and long-term security and the additional traffic volume desired. Lanning noted that the City receives a 10%override on all purchases from the Liquor Store. The City could divest itself from the entire operation and still make the 10%doing nothing. Lanning reviewed a financial analysis of the liquor store based on assumptions of a 25% mazk-up, 10%override, and 8%net profit. Lanning said the liquor store has the opportunity to produce more revenue because the city retains the percentage after the mark-up in addition to the override. To do this,the city would need to retain sole ownership. Moving the store to a higher traffic location would also increase the total purchases and the net profit. An east side location next to the grocery store would capture the impulse and convenience buyers. 2 467 As of mid-year 2005,the liquor store net profit was at 7.9%. After the remodeling investment, the profit margin would take a temporary decline recovering back at 8%by 2009. He projected the profit margir�to increase to 8.19% in 2010 and 8.42% in 2011. No additional staff would be needed in this move. The increased sales and hours would not be a problem with the current staff. He requested the City Council authorize the City Manager to enter into 10 year lease with a 15 year renewal. This would enable the liquor store to be as profitable as possible. He further requested the liquor store have the ability to retain some of the profits in order to prepare for building a new outlet if the city elects to in the future. Munsterman asked what the current gross profit margin was right now. 20% Lanning reminded the Council that the Liquor Store is an"enterprise fund"which provides a substantial annual transfer of$325,000 to the general fund. Thomson asked for more specifics on the proposed lease location. Purrington said it would be directly adjacent to Hy-Vee north of the pharmacy with a separate entrance from the parking lot on the east side. There would not be access from the mall or HyVee. Munsterman asked that the Council review the last motion pertaining to off-sale operating agreements prior to taking any action. Reed asked if the city could have off-sale agreements with this scenario. Lanning recommended not doing that. Lanning questioned why the city would allow competition against itself. With this proposal the city would retain these profits at the proposed levels as a sole provider. If city opted for anything in addition to this new location, it would be satellite stations in other locations in town. Reed asked if the city could afford satellites. Lanning said they would need to assess their viability during the 10 yeaz lease time frame. Lanning said the move is a convenience issue for consumers. The percentage of traffic on 22°d Avenue is very high with more new businesses opening in that area. Before additional locations would be added, the city would carefully examine the business before making adjustments. The city wants to make sure that it is providing the services that citizens want while providing the greatest profitability to the city general �a. Lanning noted that the liquor store has taken other steps to increase its profitability. Bartley said the city will either be"in" or"out"of the.liquor business. i-�e thought someone could challenge the override if the city gave up the liquor store and charged private operators the override. He said it looked like a good proposal,noting the city would also have the ability to sell the current building and land. He asked if new location construction costs were factored into the net profit projections. No,the liquor store has enough in reserve to cover the construction costs and the cost of the lease. Once the former store is sold,the reserve could be replenished. � Whaley asked if anyone had requested an off-sale license. Yes, interest was expressed. Reed asked the city atCorney for his opinion if the override could be challenged if the city issued private agreements for off-sale liquor. Britzman said there is no guidance in state law. That argument isn't based on any cases or an Attorney General opinion. It would brea.k new case law if the courts held that the override would be deemed as a tax. In other states,this issue might reach a different result. Alcoholic issues are unique to each state and we can't reach a conclusion by using another state as guidance. He has not written a formal opinion on the question, but has wor�Ced extensively with alcoholic beverage laws for many years. Reed asked if the override could be challenged right now. Britzman said the city has a statutory procedure and there's not much risk unless the state statute is deemed unconstitutional. Bartley said in his opinion the override would stand a legal challenge if 3 � s8 the city stays in the liquor business, but not if it gets out and just charges private businesses. 3. Onsale Liquor Operating Agreement. The City of Brookings, South Dakota,has one unissued on-sale liquor operating agreement. With regard to that agreement,the Brookings City Council took the following action on October 26, 2004: "A motion was made by Munsterman, seconded by Reed, to revisit the operating agreement in 12 months but take updates on incoming applications. If the council would like to take it up sooner, it would be at their discretion. At the 12 month time or sooner it would be opened up for competitive applications by council vote only. All present voted yes; Roden voted no; motion carried. " Lanning requested further direction from the Council on the issue, asking if they wished to leave it on the shelf or open up for an application process. If the Council chooses to open the application process, the city would use the same process as last year with completed applications being forwarded to the City Council and then the Council deciding if they wanted to award one. Bartley asked if the issue could be left as is with updates provided to the Council as applications come in. Lanning recommended that if the council wanted to accept applications, it should provide public notice so all interested parties have the opportunity to apply. Munsterman requested the item be placed on the agenda in order to give staff direction. Bartley requested the application process be included as support. Thomson asked if all businesses with licenses continue, when would the next opportunity be for another liquor license. Britzman said not until the next census in 2010. She noted that Brookings might see expanded growth in the next couple years and having a liquor license available might be inviting to that type of business. 4. October 25th Briefing. Thornes provided a briefing on the October 25�'agenda items. 5. Draft FAA Letter. Lanning asked the City Council to carefully review the draft letter to the FAA regarding the futwe of the Brookings Municipal Airport. He noted that that letter would be a firm commitment on the part of the city to the FAA. It will chart the course of action and plans for payment. Action on the letter is scheduled for October 25�'. City Council Int�oduction of Tonics for Future Discussion. Undates. Reed asked the City Manager for weekly updates on some the top issues in the city. He cited the recent flooding issue as an example of something that the City Council would want to know about right away. He said the City Council members want to be able to support city staff and the decisions they are making, but it is difficult if the Council doesn't have the information. Deaot Park. Reed asked Lanning for an update on the Depot Park. Lanning said nothing in the way of fmancial commitments will be done on this project yet this fall. The City has commissioned a traffic study of the normal traffic load and the load during the grain season. Further research will be needed on the street vacation issue. As for private and public financial contributions,nothing was budgeted in the 2005 or 2006 budgets for this project. There is no available money programmed for the city's participation. Lanning was asked if he knew of the estimated project cost and the proposed private contribution. No,he recommended doing the traffic study before analyzing costs. He noted that the City Council had already directed staff to conduct a traffic study. The original cost estimates of the park were very rough and he has asked the consultant to provide a more extensive estimate. He also has requested an update from the Park and Recreation Director on the financial aspects of the project. Lanning will provide an update at the October 25�'meeting. 4 469 Waive Building Permit Fees. A motion was made by Reed, seconded by Munsterman,to have city staff bring documents needed to forgo building permit fees for non-profit organizations that do housing for low income families. Discussion: Bezdichek noted that the building permit fees are a minor cost compared to the property taxes 1 S to 20 years later. He felt this was a state issue on fees and suggested the city approach their legislators about a different tcrr scale for affordable housing. Munsterman asked when the housing study would be done. Lanning will check with First Planning District. All present voted yes; motion carried. Meeting—6:00 p.m. Consent Agenda. Open city council member comments were added to the end of the agenda. A motion was made by Bartley, seconded by Reitz,to approve the following consent agenda items: 1. Adoption of the Council Agenda. 2. Approval of the Sept. 13,2045 and Sept.29,2005 City Council Minutes. 3. Approval of Resolution No. 80-05, a petition to annex the Sl/2,NE1/4 of Section 1- T109N-RSOW excluding the platted areas thererof,the E300' and the N30',E1,832', W2,165'. RESOLUTION NO.80-05 ANNEXATION WHEREAS,The City of Brookings is authorized pursuant to South Dakota Codified Law 9-4-1 to annex contiguous territory upon receipt of a written petition,describing said territory sought to be annexed,signed by not less than three-fourths(3/4)of the legal voters and by the owner or owners of not less than three-fourths(3/4)of the value of said territory,and WHEREAS,The City of Brookings desires to annex the following described property,to wit:the South'/z,NE'/,,of Section 1-T109N-RSOW excluding the platted areas thereof,the E300'and the N 30',E1,832',W2, 165'. WHEREAS,the aforesaid land is contiguous to the present boundaries of the City of Brookings,and WHEREAS The City of Brookings has received a Petition for Annexation of Territory signed by the owners of greater than three-fourths(3/4)of th�value of the aforesaid property and there being no legal voters residing in said territory,now therefore, BE IT RESOLVED By the City of Brookings,South Dakota,that the property described above is hereby annexed to the City of Brookings. 4. Approval of Resolution No. 83-05,a resolution awarding bids on ARFF/SRE building and tagiway improvements for the Brookings Airport. RESOLUTION NO.83-05 RESOLUTION AWARDING BIDS ON ARFF/SRE BUILDING AND TAXIWAY IMPROVEMENTS BROOKINGS MUNICIPAL AIRPORT Whereas,the City of Brookings is desirous in building a ARFF/SRE Building and completing taxiway improvements for the airport,and Whereas,the City of Brookings is obligated and hereby agees to be reimbursed by the Federal Aviation Administration for 95%and SD State Aeronautics Department for 2%,and Whereas,the City has received the following bids for the ARFF/SRE Building and Taxiway Improvements: Schedule A: Construct ARFF/SRE building site including grading,gravel access road, gravel parking area,concrete and asphalt approaches,water and sanitary sewer utilities& construct connector and hangar taxiway including milling of existing taxiway and apron, new storm sewer,grading,base course,asphalt paving,marking,fencing and seeding: Bowes Construction, Inc., Brookings, SD $464,666.18 Schedule B: Construct 83'x 46'ARFF/SRE building,complete: Mills Construction,Inc., Brookings, SD $319.000.00 Clark Drew Construction,Inc.,Brookings,SD $328,000.00 5 � � o Now There€ore,$e It Resolved that the bid for Schedule"A"of Bowes Construction, Inc. Brookings, SD for$464,666.18 be rejected. Now Therefore,Be It Resolved that the tentative award for AIP Project#3-46-0005-017- 2005/2006,Bid Schedule"B"is made to Mills Construction, Inc., Brookings, SD for$319,000.00 subject to SDDOT approval, receipt of grant o�`'er and submittal of DBE Goal Assurances or acceptable "Good Faith"ef�'ort. 5. Approval of Resolution No. 81-05, pertaining to First Planning District 2006 annual dues. RESOLUTION NO.81-05 1ST DISTRICT ASSOCIATION DUES BE IT RESOLVED that the city of Brookings agrees to provide$5,348.23 of support to the First District Association of Local Governments for the 12 months from October 1,2005 to September 30,2006,payable in February 2006. 6. Action to declare Fire Department equipment (breathing compressor) as surplus. 7. Approval of Resolution No. 82-OS setting fines for the Brookings Police Department. ' RESOLUTION NO.$2-OS A RESOLUTION SETTING FORTH A SCHEDULE OF PROPOSED FINES FOR VIOLATIONS OF THE ORDINANCES OF THE CITY OF BROOKINGS,SOUTH DAKOTA. BE IT RESOLVED by the Governing Body of the City of Brookings,South Dakota,that the following Schedule of Proposed Fines shall be effective as of stated in law for all violations of Ordinances set forth herein. SCHEDULE OF PROPOSED FINES WITH COURT COSTS Section Offense Fine Costs Total Misc.Offenses 6-3 Open Container(alcoholic beverage) (Beer,wine,liquor in vehicle or on street) 39.00 41.00 80.00 6-142 Attempt to Purchase 39.00 41.00 80.00 6-143 Misrepresentation of Age 39.00 41.00 80.00 6-73 Possession of Keg Restricted 39.00 41.00 80.00 82-751 Bicycle Offense 14.00 41.00 55.00 70-35 Littering 39.00 41.00 80.00 82-561 Lights on Vehicle 19.00 41.00 60.00 82-565 E�chaust System 24.00 41.00 65.00 58-33 Resisting an Officer 79.00 41.00 120.00 58-36 Fleeing from a Police Officer 99.00 41.00 140.00 58-161 Public Urination 39.00 41.00 80.00 (Formerly Disorderly Conduct) 58-162 ' DistUrbix►g the Peace-House Parties First Offense 54.00 41.00 95.00 Second Offense(within 1 year period) 104.00 41.00 145.00 Third Offense(within 1 year period) 200.00 41.00 241.00 Parking Offenses 82-428 Places Where Prohibited 17.00 41.00 58.00 82-463 Illegal Parking(2 hr.downtown or Medary) 17.00 41.00 58.00 82-465 Parking Prohibited During Snow Removal 27.00 41.00 68.00 94-431(2) Front Yard Parking Prohibited 12.00 41.00 53.00 Traffic/Driving Offenses 82-241 Driver`s License Violation 39.00 41.00 80.OQ 82-242 Age of Driver 39.00 41.00 80.00 82-243 License Plate Violation 39.00 41.00 80.00 82-127 Failure to Comply w/Warning Ticket 39.00 41.00 80.00 82-203 Duty to Provide Information 49.00 41.00 90.00 82-206 Unattended Vehicle 49.00 41.00 90.00 82-207 Property Damage 49.00 41.00 90.00 82-208 Immediate Notice 49.00 41.00 90.00 Section Offense Fine Costs Total 82-276 Driving on Divided Highway 39.00 41.00 80.00 82-271 Driving on Left Side of Street 29.00 41.00 70.00 82-563 Obstruction of Vision 29.00 41.00 70.00 82-167 Tr�c Signals 39.00 41.00 80.00 82-305 Speed Limit Designated Exceeding Limits 24.00 41.00 65.00 1-5 mph Over Speed Limit 24.00 41.00 65.00 6 471 6-10 mph Over Speed Limit 29.00 41.00 70.00 11-15 mph Over Speed Limit 49.00 41.00 90.00 16-20 mph Over Speed Limit 69.00 41.00 110.00 21-25 mph Over Speed Limit 104.00 41.00 145.00 Over 25(Court Appearance) 139.00 41.00 180.00 82-392 Obedience(One Way Streets&Alleys) 19.00 41.00 60.00 82-332 Right Turn 29.00 41.00 70.00 82-333 Left Turn 29.00 41.00 70.00 82-334 U-Turn Restricted 29.00 41.00 70.00 82-367 Obedience to Stop and Yield 39.00 41.00 80.00 82-365 Vehicle Entering Stop Intersection 39.00 41.00 80.00 82-603 Pedestrian Right-of-Way 39.00 41.00 80.00 82-309 Reckless Driving 69.00 41.00 110.00 82-310 Careless Driving 59.00 41.00 100.00 82-247 Exhibition Driving 39.00 41.00 80.00 82-251 Unsafe Backing 39.00 41.00 80.00 82-244 Maximum Passengers 19.00 41.00 60.00 82-248 Following Too C�osely 39.00 41.00 80.00 82-246 Driving on Sidewalk 29.00 41.00 70.00 82-842 Driving Through Processions 29.00 41.00 70.00 82-337 Cutting Corner 29.00 41,00 70.00 82-424 Manner of Use of Diagonal Parking Spaces 29.00 41.00 70.00 HousinQ and Zoning Offenses Housin� 22-401 Licensing of Leased Dwelling Units 29.00 41.00 70.00 22-402 Filing of Application Forms 29.00 41.00 70.00 22-405 Payment of License Fees 29.00 41.00 70.00 22-432 Failure to Comply With Smoke Detector Requirement � First Offense 154.00 + 41.00 w/100.00 suspended on condition of no similar violations for 1 year Second Of�'ense 154.00 41.00 195.00 Third Offense 200.00 41.00 241.00 Section OfJ`'ense Fine Costs Total 22-433 Failure to Comply with Exit Requirement First Offense 154.00 + 41.00 w/100.00 suspended on condition of no similar violations for 1 yeaz . Second Offense 154.00 41.00 195.00 Third Offense 200.00 41.00 241.00 22-434 Failure to Comply with . Parking Requirement First Offense 154.00 + 41.00 w/100.00 suspended on condition of no similar violations for 1 year Second Offense 154.00 41.00 195.00 T'hird Offense 200.00 41.00 241.00 22-374 Agent Required 39.00 4I.00 80.00 Zonin¢ 94-123(c) First Ot�ense: 94-124(c) 200.00+41.00 w/150.00 suspended 94-125(c) Permitted Uses(Unlawful Use) on condition of no similar violations 94-126(c) for 1 year 94-127(c) 94-128(c) Second Offense: 94-129(c) 200.00 41.00 241.00 94-130(c) All Other Zoning Ordinances Violations On the consent agenda, all present voted yes; motion carried. House Moving. A public hearing was held on a house moving request from Janice Saathoff to move a home from Bruce, SD to Lot 9A, Meyer's Second Addition in the Joint Jurisdiction Area in the NW t/4 of Section 11-T109N-RSOW, also known as 3632 Pleasant View Drive. No comments were received. A motion was made by Whaley, seconded by Reed,to approve. All present voted yes; motion carried. House Moving. A public hearing was held on a house moving request from Lane R,Hammond to move a new ranch-style house to Lot 7, Block 1, Bluegill Addition, also known as 2118 17tn Avenue South. Public Hearing: Matthew Vukovich, Bluegill resident, asked why he wasn't 7 �472 notified. He said their neighborhood covenants require a garage and was concerned this house didn't have one. Hanson said only abutting land owners are notified. Cindy Josephensen, applicant, said a garage will be constructed this year, weather permitting. A motion was made by Reed, seconded by Reitz, to approve. All present voted yes; motion carried. House Moving. A public hearing was held on a house moving request from Robert S. Whitaker to move a one-store ranch style house from United Building Center to Lot 34 Meyer's Second Addition in the Joint Jurisdiction Area in the NW '/4 of Section 11-T109N, RSOW, also known as 305 Hawaii Drive. Public Hearing: Whaley asked if the interior was finished. Whitaker said the house is a completed exterior shell, but the interior is only framed with no plumbing, electrical, or sheetrock. It will be completed after it's moved onto the location. A motion was made by Thomson, seconded by Whaley, to approve. All present voted yes; motion carried. Ordinance No. 24-OS-Airnort Board Members. A motion was made by Bartley, seconded by Whaley,to approve Ordinance No. 24-05, an Ordinance Revising the Composition and Residency Requirements for Members of the Airport Board. All present voted yes; motion carried. Ordinance No. 23-OS—Airnort Name. A motion was made by Thomson, seconded by Reed,to approve Ordinance No. 23-05, an ordinance revising the name of the Brookings Airport. All present voted yes; motion carried. Mavor's Council on Communitv Wellness. Matt Vukovich, Co-Chair,reported that 145 people signed up the"Buddy Program." All participated in an initial baseline blood sample to calculate overall risk factors. The results were handed out that their first meeting. They will attend behavior modification seminars over the next several weeks finishing mid December. Another fasting blood sample will be taken to review the changes. The group will meet in January to award incentives. The aggregate results will be reported back to the City Council and the Department of Health. Comments on Retail Subsidies Ordinances from Garv A�uiar. Aguiar expressed concern about the local government process. The Mayor questioned if the comments were not specifically related to subsidies ordinances,then Aguiax should reschedule his presentation until the correct title couTd be published. That way others interested in providing comments would know what the topic of discussion would be. Aguiar was tentatively rescheduled for Oct. 25�'for a 15 minute presentation entitled"Government Policy Making." Open Council Comment. Bartley noted that the work session is a new process to the City Council and action to direct staff on the liquor store issue should have been made at that time. A motion was made by Bartley, seconded by Thomson,to direct staff to prepare a liquor store resolution and lease proposal for the Oct. 25th meeting. All present voted yes; motion carried. Adiourn. A motion was made by Reed, seconded by Reitz,to adjourn. All present voted yes; motion carried. Meeting adjourned at 6:28 p.m. C' of Bro cings o sterman,Mayor T: GITY OF pO�O f,..'NCOq�"e90 �C,• ���O 11 �� �� ✓�9 o:z N. �:L) �V �OS� � ornes,City Clerk 8