HomeMy WebLinkAboutCCMinutes_2005_10_25 � 4 � 3
Brookings City Council
Tuesday, October 25, 2005
The Brookings City Council held a meeting on Tuesday, October 25,2005 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. Ciry Mariager Alan
Lanning, City Attorney Steve Britzman, and City Clerk Shari Thornes were also pxesent.
Work Session—5:00 p.m.
October 25�'A e� The City Manager responded to questions pertaining to the action items
on the agenda. �
Cit.y Staff To�ic Introduction:
A. Event Center Board: Alan Lanning said the Ciry has been working on a new economic
development model for 2 years and one of the questions that xemain is the Event Center Board.
He undexstands when the facility was developed the Board was created and used as an advocate.
The Boa.rd has their own attorney and has acted as a quasi governing board for the Swiftel Center.
In that last two city budget eyc�es the City Manager and Council have xe-examined all boards and
theix function. Lanning said he doesn't believe we need an advocate for the facility. The City
Manager, through the budget process,now acts as that advocate. He recommended the Council
consider eliminating the board and the ciry contract directly with the Compass management
company. This would result in the Swiftel Center executive director reporting direcdy to the City
Manager and manager reporting to the Council, eliminating the Boa.rd in this process.
Bezdichek asked if the executive clixector was paid by the city or by Compass. He is paid by
Compass but would still report to the City Manager because it is a city facility.
Reed suggested finding other cities with event center to find out more about their board/
management structure.
Bartley e�ressed concern about losing the citizen advocacy if the board were eliminated. There is
no guaxantee that a future City Manager would give the same support for the Centex as the current
manager. He recommended structuring the advocacy board without contracting provisions maybe
putting it undex the Park&Recreation Department.
Munsterman suggested that advocacy could still occur through the new promotional board. The
Swiftel Centex is an important tool in promoting Brookings. Lanning asked what they would be
advocating. Bardey agreed that their usefizlness is questionable.
Lanning noted that the board's usefulness relates to a city's form of government. In this case the
city manager is the advocate which revolves around meeting a depaxtment's funding needs. If
neither a City Council nor City Manager axe advocating for a city department,we would have an
enormous problem with our government. He would hope to see matuxation ovez time for moxe use
of the Council/Manager form and less need for that type of semi-governance. He sees the boa.rd as
another layex that causes loyalty dysfunction and another board that the executive directox has to
answer to in addition to the city manager. '
Munsterman reviewed Yecent minutes of the Board and found 80-90% of its activities as
admuiistration. He suggested this topic be placed on a future agenda for further consideration.
Reyuest for Toint Meeting by Chamber Board. The Chaxnber of Commerce Board has
requested an opportunity to meet jointly with the Ciry Council. The Council agreed and requested a
joint meeting be scheduled.
November 8`�Agenda BrieSng. Shari Thornes,City Clerk,provided a briefing on the November
8�'agenda items.
Council Invitations. Thornes reviewed the City Council's upcoming invitations and obligations.
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City Council Introduction of To�ics for Future Discussion.
Cand�—Parades. Thomson requested a review of the ordinance that prohibits throwing candy at parades.
A motion was made by Thomson, seconded by Reitz, to revisit the ordinance that prohibits throwing candy
at parades. All present voted yes;motion carried.
6•00 p.m. Meetir�:
Consent Agenda. A motion was made by Whaley seconded by Reitz to approve the consent agenda which
included:
A. Adoption of the agenda.
B. Minutes. Action to approve minutes from the September 6 and October 11 meetings.
' C. Bids. Action to award the bid for a Crawler Loader for the Brookings Landfill to Buder
Equipment from Sioux Falls,SD,in the amount of$499,876,with a ttade-in of$70,163 for
the 1997 Cat 973 with 16,700 hours at a net cost to the city of$429,713. No other bids were
received.
D. Action on Resolution No. 84-05, approving the South Dakota Department of
Transportation proposed functional classification.
RESOLUTION NO.84-05-
APPROVING THE SOUTH DAKOTA DEPARTMENT OF TRANSPORTATION
PROPOSED FUNCTIONAL CLASSIFICATION
WF-IEREAS,there are identified specific types of xoads and coxresponding functions of those roads,
some of which have not been updated fox several yeazs;and
WHERFAS,the Federal Highway Adminisuation(FHWA),has prescribed rules governing the
functional classification of roadways within the Brookings Urban Axea and
WHEREAS,the South Dakota Department of Transportation(SDDO'I)has verified all roadway
mileage foi the Brookings Urban Area;and
WHEREAS,SDDOT has xecommended that changes be made to specific roadways based upon
functional classification standards as piescribed by FHWA.
NOW,THEREFORE,BE IT RESOLVED,that the Board of City Council membex's hereby
approve those changes recommended by SDDOT as evidenced in the document entitled"SDDOT
Proposed Functional Classification Modificatiotts"fox the Btookings Uzban Azea.
E. Action on abatement request from Ricky Allen Nase to abate a portion of the taxes
from 2001 to 2004 payable in 2005 for the S65' of Lot 10, Block 7, Skinner's Second
Addition (2000-$94.87;2001-$100.55;2002-$95.52;2003-$89.34;and 2004-$88.88).
F. Action on Resolution No. 85-05, a Resolution setting the Unit Financial Charge for
2006 Storm Draining Fees.
RESOLUTION NO.85-05
SETTING THE UNIT FINANCIAL CHARGE FOR 2006 STORM DRAINAGE FEES
WHEREAS,Chapter 72,Section 72-1 (b),of Code of Ordinances for the Ciry of Bxookings,provides
for setting the unit financial charge of Storm Drainage,by Resolution.
NOW THEREFORE,BE IT RESOLVED that the unit financial chaxge shall be.00019 foz Storm
Diainage purposes.
On the consent agenda, all present voted yes;motion carried.
Open Forum. Gene Lass asked the Council to reexamine his request to move a house from Volga to
Brookings. This was previously heard in July. At that time the Council required a$20,000 bond. He
requested the Council waive the bond requirement. Lanning said staff recommended a bond in oxder to
secure finalization of project. Britzman said use of a performance bond is a standard practice to provide a
source of funds in case the work doesn't get completed;however,lVlr. Lass can't obtain a bond. The Ciry
proposed a cash deposit instead. Mr. Lass has also requested a'temporary placement of the house and the
city ordinances do not have a provision to addtess temporary sites. The Council advised Mx. Lass that they
would not consider an exception to the ordinance and advised him to make other arrangements.
Ordinance No. 21-05—Conditional Use. A motion was made by Reitz, seconded by Whaley,to xemove
approval of Ordinance No. 21-OS from the table,an Ordinance pertaining to an application fox a
conditional use for a Motor Vehicle Repaix Shop in the Residence R-2 District. All present voted yes;
motion carried.
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Original Motion from 8/9/05: A motion was made by Bartley, seconded by Whaley, to approve
Ordinance No. 21-05, an Oxdinance pertaining to an application fox a Conditional Use for a Motor
Vehicle Repair Shop in the Residence R-2 District. Amended Motion: A motion to amend by
Bartley, seconded by Bezdichek, to table until September 13,2005 to allow time fot staff to help
dtaft conditions to this request. Discussion: The City Attorney will meet with Winker to review the
Yules that apply to deteYmine any misunderstandings of the rules. He will also discuss the current
condition of propeYty, summarize and return to the Council. All present voted yes;motion carried
to table to 9/13/05.
Public Discus.rion: Britzman met with the owner onsite numerous times to discuss innprovements. He advised
Mr.Winker that the issuance of a condirional use permit is a discretionary item of the City Council.
Some equipment and vehicles have been removed. The owner plans to remove materials and debris from
the two adjoining north lots this fall. Britzman said the owner has made substantial progress.
Amended Motion: A motion to amend was made by Bartley, seconded by Reed,to allow the conditional
use for a period of one year to be revisited at that time and to be granted to Mr.Winker only. All present
voted yes;motion carried. On the main motion as amended,all present voted yes;motion carried.
Ordinance No.32-05—Conditional Use. A motion was made by Whaley,seconded by Reed,to approve
first reading of Ordinance No. 32-05, an Ordinance for the application for a conditional use permit to
esta,blish an Outdoor Sales Use on Lots 1,AA,B,C, 1, 1A,2, 2A, 3 and 3A,Railroad Addition (214 Front
Street). All present voted yes;motion carried. Public hearing on Nov. 8�'.
Ordinance No. 33-05—Zonin� A motion was made by Thomson,seconded by Whaley,to approve first
reading of Ordinance No. 33-05,an Ordinance amending the Zoning Ordinance pertainiug to signs. All
present voted yes;motion carried. Public hearing on Nov. 8�'.
Resolution No. 86-05—FAA Response. A motion was made by'Thoms�n, seconded bq Reed,to
appxove Resolution No. 86-05,a Resolution adopting the Brookings City Council official response to the
Federal Aviation Administration.
Lanning noted that a May 10,20051etter from the FAA highlighted deficiencies in the Brookings Airport.
After numerous discussions with the FAA and a visit to Washington,D.C.,the city emba.tked upon writing
a response to May 10�'letter. The FAA has given the city a November 1S`deadline to provide an official
written xesponse that outlines the city's coutse of action. City officials will meet with FAA and state
xepresentatives on November 7 and 8 at a site selection scoping meeting. The master plan / study will
provide the Ciry with direction to our land use issues that the ciry would then follow in order to ga.in
compliance from the FAA. The draft letter was sent to FAA officials but no response has been received.
Amended Motion: A motion to amend was made by Bartley, seconded by Whaley,to change all references
of"response"to"preliminary Yesponse." All present voted yes;motion carried. On the main motion as
amended, all present voted yes;motion carried.
RESOLUTION NO.86-05
PRELIMINARY RESPONSE TO FEDERAL AVIATION ADMINISTRATION
WHEREAS,the Ciry has pxepared a pxeliminary xesponse to the Fedexal Aviation Administration's
compliance letter dated May 10,2005;and
NOW THEREFORE,BE IT RESOLVED that the Brookings City Council adopts the attached
correspondence as its pieliminary response to the May 10,20051etter from the Federal Aviation
Adminisuation pending minor changes that may be required by the FAA.
Mx.Steven J.Obenauer,Manager
Federal Aviation Administration
Bismarck Aixports District Office
2301 Universiry Dxive,Building 23B
Bismaxck,ND 58504
Dear Mr.Obenauer:
Thank you for your recent lettex to my office concerning the futuxe of the Bxookings Airport. This
letter is intended to serve as a response to your lettex dated May 10,2005 regazding compliance issues
at the Brookings Airport,specifically addressing Runway Protection Zone(RPZ)issues for Runways
30 and 35,as well as setting a futuxe direction to enhance the growth and economic development of
oux region. Subsequent to oux previous inteiactions and our recent Washington DC trip,we believe
we moxe clearly understand the related compliance issues,and also cleaxly undexstand the
responsibility of the City of Brookings xelated to our airport and compliance issues. We also
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xecognize that past compliance issues have not been adequately addressed and the Ciry is detemuned
to rectify any unaddxessed compliance issues.
The future fox the City of Brookings is growth and the Bxookings Airport needs to grow hand-in-
hand with our community. Itecent inquiries verify the importance of continuing and progressive
investment in this essential tool for our economy. The only way we can achieve this gtowth is with
the help of the State of South Dakota,Federal Aviation Adminisuation(FAA),and the Federal
Government.We understand a large pxoject in Brookings will place funding constraints on the region,
potentially affecting othex regional airport projects. However,it is time for the City of Brookings to
move fotward,as the Brookings Airport plays a vital role in the South Dakota Airport System. By
making the propex improvements to the Brookings Airpoxt over the next several years,the City of
Brookings,the State of South Dakota and the FAA will be partnering in an investment for South
Dakota and the Great Lakes Region in general.
Over the past year,the City of Bxookings has made significant progxess towatd the completion of its
airport Master Plan.The Mastex Plan will address the need for additional primaxy runway length,
adding to the cuxrent 5,231 foot long primary runway,12/30,thereby allowing for larger aircraft. It is
the intention of the City of Brookings,to follow the findings of this Master Plan,which we believe
will include the need for a 6,500 foot runway. However,the City of Brookings will be unable to
accommodate a runway of 6,500 feet,utilizing the current aligiunent,as it will be cost prohibitive.
Numerous issues related to the Eighth Street South and Main intersections,as well as,railroad issues
to the north,make this altemative dif6cult. The City of Brookings believes future development of
Runway 12/30 would constitute an ineffective use of both federal and state funds,particulariy
considering the long-tenn development and use of the Brookings Airport.
Attachments D,G,and H,specifically address the analysis of severai on site alignment changes to the
cuxrent primary runway. Each of these alternatives demonstrate the ability to extend the cunent
primary runway to 6,500 feet in length and the fee ownership of the relative RPZ. These alignments
will allow the City of Brookings to gain indisputable land use control and avoid potential zoning
litigarion,clearly improving the long-term benefits for such alignments. In the event the City of
Bxookings fails to build communiry support associated with such expenditures of public funds,the
City has also included a compliance alternative(Alternative B)that will shorten Runway 12/30 or
eliminate the ILS,maintaining the longer xunway. Alternative B will bring the Runway 12J30 RPZ,
back on to existing airport properry. The City of Bxookings considexs Alternative B a last resort to
comply with RPZ requizements,and at this point is an undesirable alternative.
The City of Brookings has examined S different altematives and further developed 3 sub-altemarives.
Regardless of the eventual alternative,the potential cost will approach several million dollars. The
City of Brookings has classified the altematives into three sepaxate gzoupings:utilize cuxxent
alignment in some form to comply;utilize some form of xealignment to comply;a complete airport
relocation to comply. The unportance of the Brookings Airport relative to continuing economic
growth for the City is paramount. Therefore,each alternative has been thoroughly evaluated and the
following pxefexences have been developed.
Current Alignment Compliance: The curxent airport is land locked. The major obstacle to
this alternative is puxchasing the privately held properties. This scenario appears to be a"go
it alone"approach and our past experience has not been positive. As you know,the City of
Brookings purchased a small comex of pxoperty that appraised at appxoximately$80,000,
with the ownex claiming value of�479,000,which the judge awarded. The"value"of the
existing businesses could potentially be prohibitive. Additionally,the City of Biookings,in
an era of declining sales tax revenue,can not affoxd to eliminate the current,ptoductive,
retail operations that exist in the RPZ. At least one of those businesses pxoduce significant
sales taxes and the combined effect would be potentially devastating to our City finances.
Finally,the City of Brookings lacks sufficient commerdal/retail corridors that would be
necessary to xelocate the numbex of businesses that would be displaced. The future of
Runway 35 has only been addressed,to this point,by shortening it.The City Council has not
looked into the possibility of purchasing the houses or realigning it related to future
expansion. If the existing site is maintained,the City will have to further analyze the cost of
puxchasing the houses versus changing the runway alignment. Nevertheless,the Ciry would
realign or puxchase the two houses to clear the Runway 35 RPZ if the airport xemains,as this
would be necessary to achieve compliance.
Realignment Compliance: While this altemative is more attractive,it too presents challenges
and increased costs. Wedand issues to the W/NW are potentially problematic,particularly
related to acquiring additional wedands at a 2:1 ratio. Additionally,the DM&E railroad is in
the final stages of a significant upgrade plan and awaiting appxoval fiom the Surface
Transportation Board. Not only would moving the tracks be expensive and time
consuming,that alternative might meet signi6cant opposition from DM&E due to potential
delays and additional EIS issues. It is questionable whethex DM&E would be a cooperative
and willing partner. The wedands issues and DM&E xealignment will certainly add to the
cost,but not eliminate other existing land use issues. Essentially,the Brookings Airport
would still be land locked.
Relocation Compliance: Because the future growth potential of the Bxookings Airport is
imperative,initial examination appears to make this the preferred alternative.Although
airport relocations are extremely rare,our proximity to the city,inability to expand,and
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surrounding wetlands have limited our site and will continue to do so,if either of the above
altexnatives are chosen. Either of the above alternatives will alleviate aur immediate land use
and compliance issues but create othex noise and wind coverage issues,as we anticipate
increased air uaffic. Therefore,we feel the new airport alternative requixes extensive analysis
before it is ruled out. It is also the only alternative that allows for additional cost recovery
from the sale of the cuxrent land and building assets. This would certainly assist the City
financially,preserve some of the sales.t�base,eliminate noise complaints and allow for
future expansion. However,it also caxries the highest potential cost.
The City of Bxookings is undextaking the appxopriate steps requixed to gain full and complete
compliance. The City of Brookings is nearing the compietion of the Master Plan and the City Council
has endorsed and approved the funding necessary for a site selection/feasibility study. These two
steps will provide a cleax long-term plan that the Ciry of Bxookings is committed to follow in order to
gain full and complete compliance. The City pxeviously met with Senators Thune and Johnson,and
just recenfly with Senator Thune and four representatives of the FAA in Washington,DC. We clearly
understand the xesolution to our compliance issues will take time.
As for oux cuxrent airport and oux compliance issues,the City of Brookings asks that the FA.A allow
us to operate for the next seven(7)to eight(8)years in our current condition pending the outcomes
of the Master Plan and site selection/feasibility study. Upon completion of the Master Plan and site
selection/feasibility study,the City of Brookings will diligendy pursue an alternative that addresses
and alleviates all compliance issues. Once an appropriate alternative is chosen,the City will puxsue
appropriate project funding necessary to complete the chosen alternative. The City has included the
time line for the realignment and xelocation altematives that anticipate a"best case"scenario fox
construction/xeconstruction,depicted in yeaxs.
At this time,the City is not pursuing changes to our minimums,unless it is deemed absolutely
necessary. Changing our minimums will cripple our airline service reliabiliry,make our airport less
attractive to corporate traffic and hinder the ability of our flight school to use the airpoxt for training
to its fullest capabiliry.
Should you have any comments,questions or concerns please feel free to contact me at 605.692.6281.
Sincerely
Scott D.Munsterman
Mayor,Ciry of Brookings
cc:Wayne Nelson,SD Department of Transpoxtation
Attachments
Res4lution No. 87-05—Building Permit Fees. A motion was made by Reed, seconded by Thomson,to
approve Resolution No. $7-05,a Resolution perta.iiung to waiving of building permit fees for non-pxofit
organizations that do housing for low income families. All present voted yes;motion caxried.
RESOLUTION NO.87-05
AMENDING THE BUILDING PERMIT FEE FOR CERTAIN BUILDING PROJECTS
WHEREAS,the City is desirous in assisting Interlakes Community Action,Inc.and Habitat for
Humanity with building affozdable housing within the City of Brookings,and
WHEREAS,Interlaces Community Action,Inc.and Habitat For Humanity have undertaken several
affordable housing projects to seroe the xesidents of the City of Brookings.
NOW THEREFORE,BE IT RESOLVED that the building permit£ee be waived for new home
construction fox Interlakes Community Action,Inc.and Habitat fox Humanity.
Presentation by Carey Bretsch, Civil Design, Inc. Lanning said the ciry has hired a drainage
specialist firm to review the previous drainage study from 2004,to review the current situation,and
to provide the ciry with advice xegaxding the curxent ordinance,requixements and calculations. 'I'he
City also hired Caxey Bretsch,Civil Design, Inc., from Brookings to provide on-site work and
e�ertise. Lanning said the report that Bretsch will Yeview is snapshot of a very small part of the
City's drainage axea. The City intends is to create a document that covers the entire city at this level
of detail. Some ordinances will need to be changed that will effect requirements on developers,
drainage fees, and flow/drainages calculations resulting in a retooling of the drainage ways.
Carey Bxetsch, CDI,gave a pxesentation on the"Pxelinunary Invesriga.tion and Report for Indian
Hills/Timberline Drainage Report." Bretsch said he was asked to provide a temporary solution to a
problem in Indian Hills and Tunberline. He said Brookings needs a plan in place to regionally
manage its watersheds. This water study is a snapshot of what has occurred in Timberline. Flows
have increased more than double in an undeveloped condition. He is proposing to create a channel
on city owned pxoperty along with detention ponds.
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Bezciitchek asked why developexs don't install retention ponds when creating a new addition.
Bretsch said the cuxrent ordinances do not requixe a pond,which is why the city is looking at city-
owned land to address the Timberline issue.
Bezdichek asked if all curtent additions will be grandfathered or can the city go back and require
ponds. Bretsch said he will recommend detention be considered for any development. Once an area
is developed the flow off the development increases. The"golden rule"in drainage is that upstream
drainage can't increase in intensity or flow as it passes through downstteam developments. To
address the iminediate issues, the city is proposing to spend money to install detention areas to
manage water until ordinances are in place to control it.
Bretsch illustrated two different historic periods for a 5 year and 100 year storm. He said the
proposed plan would utilize two lots to install a pond. Along with the detention pond, the city is
proposing a channel within ciry owned property and increasing the size of 30" conduit pipe to a 4x3
box culvert. This plan would address the upstream area in Tunberline and then work its way
downstteam. You can't start at the bottom and work your way up.
Bretsch said there is cleaxly a need to manage storm water by reviewing and modifying the
ordinances.
Reed asked what pexcentage of Timberline was developed. Sixty pexcent. Bretsch noted that the
problem will continue to get worse if nothing is done.
Munsterman noted that the flow rates are based on the area being fully developed.
Thomson asked if it matters where the ponds axe installed. Bretsch said typography dicta.tes the best
locations. There will be additional work to get all the southwest into the detention atea (i.e.
reshaping of streets, storm sewer).
Whaley expxessed concern that the lots in Tixnberline are selling quickly. How long before it reaches
100%? Bretsch said several lots have been pre-sold. There are still SOO lots to be platted.
Reed asked if thexe were right-of-way issues with the proposed detention pond/flow channel plan.
Jackie Lanning,City Engineer, said the plan would utilize city-owned properry for the channel but
Lots 1 and 2 for the pond would need to be purchased.
Bartley asked if other homes were damaged from that recent storm. No. Bartley asked if thexe are
any other drainage issues. Bretsch said the area by the state office building floods all the time. It is
obvious that the existing channel is not adequate to convey the water. It has gotten worse with the
Timbexline Addition runoff. T'he actual property damage is one home. He noted that the elevation
of the water surface downstream has continuously gotten higher. At 20�'Street where this entire
channel crosses theYe was one foot of water over road.
Bardey noted that 20 years ago the ciry didn't plan to have a development on the west side. He
asked if the installation of a box culvert would still require residential berming? Bretsch said the
ditch would be 6 feet deep and provide a place for the water to go. That channel is so fla.t and has
no choice but to spread out.
Reed asked if the system below could handle the flow if retention ponds were built above stream.
No,the entire basin must be examined. This solution only addxesses the upstream issues. They
must examine the�drainage through to the point of dischaxge and manage the water the entire way.
It's not just this basin;it is every basin in the city.
Bezdichek expressed concern about the new development areas neax the soccex field complex and
south of Indian Hills. Bxetsch said it will become more important to manage storm water as
developments continue to incxease.
Bezdichek asked how quickly the solutions can be implemented. Alan Lanning said the city will
address this area right now and chart a course to get rest of town done. This is being presented to
the Ciry Council to provide an understanding of the issue and the potential financial oudook.
Bezdichek expressed a sense of urgency noting that Brookings hasn't experience a significant
snowfall in the last five years. He asked what the city would have completed bp spring 2006.
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Bretsch said this is not a quick f�. It took yeaxs to create this problem and it will take some time to
analyze appropriate designs that will work in these situations. The City will also be addressing
drainways that are completely developed.
Munsterman said he felt the city must have a comprehensive plan before pxoceeding with the basin.
Bretsch said the city is starting with the uppex end and could implement certain portions. If this
issue had occurred in the middle, the city could do this. The action steps will provide some relief to
that area. -
Reed asked if the runoff would be larger as it moves down the flow path in developed areas. Yes.
Reed said it would be a good idea to have monthly or quarterly updates on the drainage issues.
Lanning noted that the speed of the solutions will depend on its priority pla,cement in the budget
cycle. Reed said the Council will requixe a lot of information in order to make changes. Lanning
said we'll need to move quickly to get started before summer rains.
Reitz said the study we're doing now is to fix the problems that we currendy have. How long would
it be before the city enacts new ordinances so we don't have to do this with new developments.
Lanning said nothuig will happen over winter with new developments,but hopes to have an
ordinance plan by spring.
'I'homson asked if a new ordinance may require developers to install detention ponds. Ye.r.
Community Partnershi�Agreement. Discussion and possible action on the Communiry
Paxmership Agreement between DM&E and the City of Brookings.
Dwight Adaxns provided a historical overview of the DM&E e�ansion plan and local activities and issues.
He recommended tabling action on the agreement until further information was provided.
Lanning said after exam±ning the old and new agreements,he didn't see a compelling reason on either side
for signing or not signing.
A motion was made by Bartley, seconded by Reed,to table action on the community partnership agteement
between the City of Brookings and DM&E for further consideration. All present voted yes;except Whaley
and Thomson voted no;motion carried.
De�ot Park U�date. Jackie Lanning, City Engineer, said the city is conducting a traffic study of the 3'�and
Main,Front and Main,and 3`d and 3`d intersections before and during corn hauling season.
Allyn Frerichs,Park,Recreation and Foxestry Dixector,noted that the owners of Capital-Line have offered
to financially participate in the depot park project. He has contacted Design Works from Ra.pid City who
did the original streetscape design and has asked them to develop a pxeliminary cost analysis. He spoke with
one of the property owners and plans to meet soon to get specifics on their private fund paxticipation level.
He will provide a final report to the Council.
Thomson asked on the suggested timeline. Alan Lanning, City Manager, said that would depend on the
private financia,l contribution. He noted that the ciry is now at the end of the 2005 fiscal year and the 2006
fiscal budget has been finalized and this project is not included. To fund soonex than 2007 would require
xeducing other line items or taking out of the reserve. We plan out the city participation levels 4 to 5 years
out and it is very difficult to come up with surprise/unexpected funds mid-budget.
Whaley asked what times the traffic counts would be made. J.Lanning said the times are from 6:30 a.m. to
9:30 a.m., 11:00 a.m. to 1:00 p.m.,and 3:30 p.m. to 6:30 p.m.per the traffic engineer's recommendations.
These will provide a bYOad range of times to detexmine peak usage.
Frerichs was asked how the city would pay fox the woYk from Design Works. Frerichs said he didn't
anticipate a bill.
Bartley said a stteet closure procedure would have to be followed to vacate the street. Agxeement would be
needed from all abutting property owneYS or the majority of them. Should that agxeement get accomplished
first before the traffic counts? Lanning said the ciry needs to determine if it is even possible to reroute the
trucks before proceeding with the street vacation.
Britzman said the final design and who is impacted would need to be determined before a street vacation
could pxoceed.
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Terry Knudson,Ag FiYSt Farmer's Coop, said when he heard about this project a year ago he contacted the
Paxks Department. He was assured that this was just in the planning stages and he would be contacted if
anything serious took place. He expressed concern foY not being notified. He said it isn't possible to make
a left turn west or right turn south on Main ar�d 3`�with his equipment. They have been in business for 90
years. He didn't feel it was a fair to vacate a street to make it a private driveway for another private property
owner. He asked if all the streets were for sale for the right price or development. Why would the city want
a park in this area with a railroad and 4-lane street?
Al Gregg,Dakota Service, said no one has ever discussed this with him. He moved there knowing that
there was railtoad and cooperative in the area and because it was zoned heavy industrial. Closing Front
Street would be detrimental to his business. He asked if the city wants him going down Main Street with
tow trucks. He also noted that Front Street is a buffer zone ftom the bax district. He signs his property and
enforces no parking heavily and has had no problems. A park in that axea would be a real problem in the
evening. He promised to fight any street closure or paxk with legal action.
Dennis Gerjets,Pexkin's Moving, said closing Front Street would cause problems fox his trucks. He
suggested eliminating four parking spaces south of Insty Prints if Front Street were closed.
Executive Session. A motion was made by Baxtley, seconded by Reitz, to enter executive session
at 8:29 p.m. to consult with legal counsel regarding contractual matters with the City Council,City
Attorney, City Clerk, and City Manager present. All present voted yes;motion carried. A motion
was made by Bartley, seconded by Bezdichek, to leave executive session at 8:46 p.m. All present
voted yes;motion carried.
Brookings Munici�al Liquor Store. Lanning said he has been negotiations with the Brookings Mall for
some time. He has pxesented the Council with the lease proposal and basic terms with the understanding
that thexe are still items to negotiate. He is now looking fox fonnal direction from the Council to proceed in
negotiating a lease to move the Liquor Store.
A motion was made by Thomson, seconded by Whaley,to authorize the City Manager to negotiate a lease
agreement with the Brookings Mall.
Munsterman noted that the proposed move was from a profitability standpoint and that BMLS is mnning at
a 7.9%net pzofit,but he hasn't received any updated spreadsheets. The last time was in February when it
was 5%. He would like to have updated spteadsheets before making a decision. He xeferenced
recommendations fzom the consultant retained by the city who suggested raising pricing to get the gross
profit margin up from 19%to 25%. It is currendy 20%. The consultant also recommended a 10%net
profit margin. The consultant also thought the store was overstaffed,but through att�ition the size would
be reduced. Munsterman questioned why a position was filled earlier this yeax after an employee retired.
He said he has a hard time with how the city is currendy managing the store as a business and now the store
will be changed into a different,more expensive model. He is concerned it is not well run now. The move
will result in higher overhead. He was also concerned about the amount of inventory. He questioned if the
city should tie up $500,000 in assets to produce the same amount.
Thomson said the ciry has made a decision to stay in the liquor store business. She hasn't reviewed the
study and or knows the history of the store. Perhaps the management needs some closer scrutiny. The
Council could take acrion to dixect the manager to provide the issue more review and offer suggesrio�s.
Munsterman said the Council did performance reviews of each department over the la.st four years. The
Liquor Store expected to be at 10%by now and they are not. Why axe we ta.king a management style model
into a different business environment with a higher ovexhead?
Thomson asked who could determine if the store was running as efficiendy as possible. Lanning said the
City Manager would conduct that review and make all decisions.
Bartley said a new location and larger facility will offer an opportunity for a better return on the investment.
The amount of inventory is an administrative issue.
Whaley said in the last couple years the Liquor Store has made changes and experienced increases. A better
location and atmosphere with more variety will provide more opportunity for increases.
Reed said a fundamental question.is private verses public and he thinks the city should get out of the liquor
business. The move is based on the hope it will increase impulse buping. Does that mean we hope people
481
will drink more? As a city, should we be saying things like that? Over time we need to change the focus of
the city and thinks the liquoY store can become a distraction. We know we can make 10%with no
investment. We also know the school wants money for a new pool. He wants to continue to make money
with the store without additional investrnent. He feels the city will get into trouble when it wants to build a
store in the future and continue with the investment. He favors moving the Iiquor sales to private
individuals,taking the pYOfit without any investtnent, and focusing on more impo�tant issues.
Mike McClemans, former Council Member, expxessed concern about moving the liquor store. He said four
years ago the Council reviewed the liquor store and found it to be in the wrong place. They analyzed the
profitability and how to move it and the pr posed cost at that time was $1 million. Brookings didn't get
into the liquor business unti11955 by ciry e ection in a close vote. In 1967 the first liquor operating
agreements were issued which required the payment of 10% and 11% to the city as "override." The Council
recently hired a consultant to review the liq or store. He had never seen anything like the city's override.
BYOOkings has an oppoYtunity with this arr ngement that most ciries do not have that provides over
$200,000 revenue annually. It is obvious at the BMLS profit margin wasn't what it should be. It is also
apparent that the city could issue off-sale li uor operating agreements with�the 11% override and make
more money. The City never wants to get ut of the liquor business completely. That is too much revenue
to give up. The city can issue multiple agre ments and collect override to generate more profitability. He
discouraged the council from leasing space
Bezdichek said the consultant recommend d moving the store to a better location. He noted that the city
could always opt to privatize later.
Lanning said the profit maxgin continues t improve. The additional display area and increased choices will
pxovide more opportunity for increased sal s. Lanning commented that 49%of the liquor store sales are
subject to the 10% override,which the city already receives. The other 51%is subject to mark-up and gross
profit margin which pays for the staff and verhead and has nottung to do with net profit. You can't take
50 yeaxs of holding the liquor store back a d then fu�it in 18 months. He believes that the BMLS can xeach
the projected numbers given the time and 1 cation. He noted that the consultant's study has been
selectively used as a good or bad thing dep nding on the position taken. Moving to a new location will
generate more income than the current loc tion ever will. He clarified that BMLS is an enterprise fund that
pays for itself plus generates additional rev nue for the city. With funding becoming more critical in the
future,he questioned why reduce a revenu generating operation. The store may be overstaffed but several
are neax retirement age. The reason why ere is so much outside pressute to privatize is that others
understand how much money there is to b made in the business.
On the vote,aIl present voted yes;except eed and Munsterman voted no;motion carried.
Adjourn. A motion was made by Reed, s onded by Whaley,to adjourn. All present voted yes;motion
catried. Meeting adjourned at 9:30 p.m.
rookings
unsterman,Mayor
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