PROCEEDINGS OF THE STURGIS CITY COUNCIL

 

The Common Council of the City of Sturgis met in regular session at 7:30 p.m. on Monday March 3, 2008 at the Sturgis Community Center. Present: Mayor Maury LaRue, Alderpersons Steve Anders,  Mark Chaplin, Tom Ferguson, David Hersrud, Jamie McVay, Sherry Scudder,  Bernadette Usera and City Manager Dave Boone.  Absent: Roger Call.

 

Mayor LaRue led everyone present in the Pledge of Allegiance.

 

Mayor LaRue made the following announcements:

Ø      Sturgis Arts Council presented the play “Harvey” and it was a success

Ø      The council would like to congratulate the Girls and Boys basketball players for a job well done in winning the Regional tournament and going on to State

Ø      South Dakota Lottery has a new scratch game out that promotes the Sturgis Rally

Ø      Board of Equalization will meet on March 17, 18 and 19 if needed

 

Motion by Chaplin, seconded by Ferguson and carried with all members voting yes to approve the agenda with the addition of Gene Lucas to the new hires.

 

Motion by Chaplin, seconded by Anders and carried with all members voting yes to approve the minutes from February 19, 2008 regular meeting.

 

Motion by Chaplin, seconded by Anders, and carried with all members voting yes to approve the following claims, wages and transfers:

Wages – Mayor and Council $6,609.16 Finance Office $16,263.35, City Manager $7333.33, Buildings $2,283.97; Engineering $8,426.23; Police $64366.39; Fire Department $4,830.93; Streets $17,010.33; Street Cleaning $2735.42; Cemetery $3,407.86; Community Center $26,086.36; Library $20,419.39; Auditorium $380.12; Parks $17,753.89; Ambulance $19,240.46; Liquor $8,335.21; Water $20,646.39; Wastewater $16,269.41; Sanitary Service $19,483.11; Rally $8,759.43; Federal Withholding $24,337.83; FICA $43,174.64

            Transfers Out – General Fund $42,930.42; UDAG $2,500.00; Liquor $15,258.33; Wastewater $5765.17; Sanitation $4841.67; Water $675.00

            Transfers In – Parks $42,930.42; General Fund $22,373.50; Capital Improvements $4,166.67; Revolving Loan Fund $2,500.00

AMBULANCE SERVICE – Midwest Vehicle Professionals, $125,497.00, machinery & equipment

            GENERAL FUND – A&H Truck Salvage, $175.00, maint; ABC, $30.00, other; ACS Firehouse Solutions, $1,185.00, other; Adams Machining, $3.90, sup; Alltel, $850.84, util; Amcon Dist, $378.38, merch for resale; Argus Leader, $267.28, sup; Audio Editions, $428.22, sup; Avaya, $48.26, util; Baker & Taylor, $556.33, sup; BHP&L, $1,368.12, util; BH Technologies, $150.00, maint; Jerry Burnham, $2,279.17, prof fees; Century Business Products, $44.17, maint; Chamber of Commerce, $535.00, other; Louie Clement, $16.87, travel; Community Center Petty Cash, $43.79, sup; Dakota Backup, $14.93, prof fees; Data2 Corporation, $170.40, sup; Days Inn Pierre SD, $186.00, travel; Demco, $1,976.40, sup; Farmer Brothers Co, $78.49, merch for resale; Farmers Union Oil, $192.79, sup; Fireguard, $1,041.98, sup; Freeman Electric, $20.26, sup; Darrel Fritts, $30.00, other; Gaylord Brothers, $519.71, sup; Governor’s Office of Econ Devel, $200.00, travel; Heiman Fire Equipment, $57.39, maint; Homestyle Books, $18.98, sup; Kade Huntington, $20.00, sup; Integrity Heating, $61.20, maint; Jacobson First Western Ins, $47,867.00, ins; Robert Kaufman, $10.58, travel; Lawson Products, $98.22, sup; Meade County Auditor, $961.63, util; Menard’s, $259.74, sup; MDU, $7,638.01, util; Morman Law Firm, $6,159.39, prof fees; Candy Morrell, $3,241.58, maint; Neve’s Uniforms, $232.44, sup; Owens Interstate, $1,964.00, other; Penworthy Company, $115.68, sup; Pitney Bowes-Finance, $99.00, rent; Prairiewave, $2,492.09, util; Rapid City Window & Glass, $583.05, maint; RPM Machine Shop, $20.00, maint; Rushmore Office Supplies, $1,724.90, sup; Sam’s Club, $751.40, sup; Sand Creek Printing, $208.00, sup; SD Animal Control Assoc, $280.00, travel; SD Redbook Fund, $810.00, travel; SDLA Spring Forum, $35.00, travel; Twilight First Aid & Safety, $141.95, sup; Two Wheeler Dealer, $76.70, sup; Unique Books, $19.90, sup; Vanway Trophy, $250.00, cc prog exp; West River International, $58.90, maint; Steve Westbrook, $30.00, other; Dennis Widener, $15.88, travel.

            PARK – Alltel, $31.75, util; BHP&L, $206.19, util; MDU, $911.17, util.

            BRICK PROJECT FUND – Glover Invesments, $1,400.00, publishing.

            LIBRARY BUILDING FUND – Best Business Products, $4,181.00, lib furnishing; Demco, $687.10, lib. Furnishing; Quill Corp, $613.71, lib. Furnishing.

            AMBULANCE SERVICE – Alltel, $64.30, util; BHP&L, $615.94, util; Boundtree Medical, $381.35, sup; Dakota Backup, $14.92, prof fees; DB Billing, $1,235.32, prof fees; MDU, $510.11, util; Morman Law Firm, $72.00, prof fees; Mountain Plains Health Consort, $14.00, travel; Pitney Bowes-Fire, $12.00, sup; Prairiewave, $42.44, util.

            SPECIAL SALES TAX – Chamber of Commerce, $7,500.00, chamber; SIEC, $8,333.33, industrial development.

            CAPITAL IMPROVEMENT – Morman Law Firm, $216.00, capital improvement.

            LIQUOR – Eagle Sales, $6,577.28, off sale beer; Fisher Beverage, $3,955.74, off sale beer; Frito-Lay, $52.54, snacks for resale; Jim Dandy Snack Food, $158.40, snacks for resale; Johnson Western Wholesale, $11,444.34, off sale liquor; Nash Finch, $45.00, other; Prairiewave, $193.43, util; Republic Beverage Co, $7,229.01, off sale liquor; Rushmore News, $27.30, snacks for resale; The Homeslice Group, $3,320.00, publishing; Wells Fargo Merchant Services, $7.50, other.

            WATER SYSTEM OPERATIONS – Alltel, $141.63, util; BHP&L, $9,046.28, util; Beverly Johnson, $250.00, group ins; MDU, $138.46, util; Morman Law Firm, $36.00, prof fees; Candy Morrell, $389.52, maint; Prairiewave, $153.72, util; Verizon, $59.70, util.

            WASTEWATER FACILITIES – Alltel, $141.86, util; BHP&L, $10.00, util; Morman Law Firm, $31.54, prof fees; Candy Morrell, $256.00, maint; Mike Plaggemeyer, $250.00, group ins; Turbiville Industrial Electric, $167.21, maint.

            SANITARY SERVICE – Alltel, $21.84, util; Candy Morrell, $256.00, maint; Qwest, $50.98, util; SDSWMA, $90.00, travel; West River International, $79.19, maint.

            RALLY – Alltel, $315.39, sup; Fedex, $19.52, sup; Lamar, $4,075.00, publishing; Priscilla Massey, $97.02, travel; Morman Law Firm, $1,500.41, prof fees; Candy Morrell, $256.90, maint; Pizza Ranch, $21.98, sup; Sand Creek Printing, $55.50, sup.

            COMM CENTER CHILDRENS FUND – Community Center Youth, $75.00, other.

           

This was the designated time for committee reports:

v      Public Safety—nothing

v      Public Works—discussed travel, bridge inspection, DME Railroad – 14A detour          

v      Community Center—Lowe Roofing is starting the roof replacement

v      Liquor—nothing to report

v      Legal and Finance—nothing to report  

v      Rally—CD and website update. Discuss Half Mile event.  Next meeting March 13, 2008

v      Park Board—nothing to report

v      Planning Commission—nothing to report

v      Library Board—nothing to report

v      Airport Board—Will meet March 11, 2008

City Manager Report:

·         Will discuss debt consolidation in new business

 

Moved by Chaplin, seconded by Hersrud, and carried with all members voting yes to continue the public hearing for Dean McNenny on a zoning amendment until the March 17, 2008 council meeting.

 

This was the time set upon application for a public hearing for a restaurant malt beverage license and wine license for Sturgis Coffee Company.  Motion by Ferguson, seconded by Scudder and carried with all members voting yes to approve application for the restaurant malt beverage license and wine license for Sturgis Coffee Company.

 

Motion by Anders, seconded by Chaplin and carried with all members voting yes to approve the request made by Kim Johnson to do a control burn on her property located at 2152 Dolan Creek to dispose of bug trees.

 

Motion by Chaplin, seconded by Scudder and carried with all members voting yes to approve the raffle request made by Tops SD #105 for a quilt; with the drawing to be held on August 15, 2008.

 

Motion by McVay, seconded by Scudder and carried with all members voting yes to approve the special events license for Loud American Roadhouse to be held at the Sturgis Auditorium on March 7, 2008 for the Turkey Federation Banquet.

 

Motion by Chaplin, seconded by Usera and carried with all members voting yes to approve first reading of Ordinance 2008-4, AN ORDINANCE AMENDING ORDINANCE NO. 2007-33 ANNUAL APPROPRIATIONS FOR THE YEAR 2008 “Supplemental ordinance for the Library”

 

At this time City Manager Dave Boone gave a presentation on refinancing of the sales tax bonds issued in 2002 and 3 USDA loans.

 

Motion by Chaplin, seconded by Scudder and carried with all members voting yes to authorize Dave Boone to sign the engagement agreement with Northland Securities for refunding bonds and loans.

 

Chaplin introduced the following written resolution and moved its adoption:

 

RESOLUTION NO 2008-09

Resolution authorizing the execution, terms, issuance, sale and payment of Sales Tax Refunding Bonds in the aggregate principal amount of not to exceed Six Million Five Hundred Thousand Dollars ($6,500,000) of the City of Sturgis, Meade County, South Dakota.

This was printed in the newspaper separate from the minutes.

 

Anders seconded the motion for the adoption of the foregoing resolution.  All those present voted in favor of and the resolution was declared passed & adopted.

 

Hersrud introduced the following written resolution and moved its adoption.

Resolution 2008-09

Verified Statement

of

Maury LaRue

On behalf of the

City of Sturgis, South Dakota

 

            My name is Maury LaRue, and I am the Mayor of Sturgis, South Dakota.  On behalf of the City of Sturgis, I submit this verified statement to support the proposed acquisition of the Dakota, Minnesota & Eastern Railroad Corporation (“DM&E”) by the Canadian Pacific Railway Company (“Canadian Pacific”).  As a long time supporter of railroad prosperity and because of the multiple benefits Sturgis anticipates as a result of the acquisition, we strongly support this transaction. 

            Sturgis is a city located at the base of the northeastern Black Hills, in western South Dakota.  Sturgis’s businesses are diverse, and our economy is dependent on the success of all its businesses from firearms manufacturing to grain production.  Although Sturgis’s grain shipments are minimal in comparison to other South Dakota cities, we have been a long, strong supporter of the railroad industry, which is evident by the presence of Sturgis representatives on the Railroad Authority Board.  In addition, we have a grain elevator located nearby, which allows our shippers to compete in wheat and grain markets.  Access to an increased number of markets will tremendously benefit our City.

            Unlike other communities, however, the enhancement of the grain industry is not the primary reason we support the acquisition.  Instead Sturgis supports the acquisition because of the potential benefit that can be bestowed upon the city through the presence of a financially strong and vibrant Class I railroad.  The primary benefit Sturgis anticipates from the transaction is Canadian Pacific’s ability to make potential capital improvements to the DM&E.  We understand that Canadian Pacific, has promised to invest $300 million in rail improvements and infrastructure on the DM&E, and this investment will be critical to improve safety in our community and elsewhere in the state.  In addition, as a forward-looking city, we believe that the presence of a strong Class I railroad might create the potential to develop a commuter line as well as a tourist line to the Black Hills to see the majesty of Mount Rushmore.  Further, the rail line provides the most efficient and quickest route to Rapid City, and along that line lives a significant population which would benefit from a commuter line.  Although we understand that no plans to create such lines currently exist, we also know that the presence of and ability to access capital is the key to business expansion and growth, and this is why Sturgis supports this transaction. 

            For these reasons, the City of Sturgis supports the proposed transaction.

            I, Maury LaRue, declare under penalty of perjury that the foregoing is true and correct.  Further, I certify that I am qualified and authorized to file this verified statement. 

 

Executed on March 3, 2008.

 

McVay seconded the motion for the adoption of the foregoing resolution.  All those present voted in favor of and the resolution was declared passed and adopted.

 

Motion by Chaplin, seconded by Anders and carried with all members voting yes to approve the following wages and new hires: Rebecca Clausen increase from $6.25 to $6.50 – Community Center-Lifeguard, Laban Clement increase from $6.25 to $6.50 – Community Center – Lifeguard Jeremy Eckhart  from $6.25 to $6.50 – Community Center – Lifeguard, Veronica Grosek from $6.25 to $6.50 – Community Center – Lifeguard, Josh Harris from $6.25 to $6.50 – Community Center – Lifeguard, Ashley Johnson from $7.25 to $7.50 – Community Center – Lifeguard/WSI

Rebecca Larson from $6.25 to $7.00 – Community Center – Lifeguard/WSI, Rachel Moken from $6.25 to $6.50 – Community Center – Lifeguard, Nolan Schneider from $6.25 to $6.50 – Community Center – Lifeguard, Chase Williamson from $6.25 to $6.50 – Community Center – Lifeguard.  New Hire: Joshua O’Dea -$6.25 – Community Center – Lifeguard, Markus Heinrich - $6.25 – Community Center – Lifeguard, Matthew Neiger - $6.25 – Community Center – Lifeguard. Gene Lucas - $7.50 – Seasonal - Parks

 

Other items discussed:

 

The Kiwanis will be having a pasty feed on March 29, 2008 at the Community Center

 

The Mayor discussed four items that were brought up at the Mayors meeting held in Deadwood on February 28.  Water issues: we may need to manage the recharge areas that lay within the federal jurisdiction in a different manor.  (Eric Tibbetts, Water Superintendent and the mayor will meet with the Elk Creek Conservation District on March 11, 2008)  Tax issues: the registration of all businesses within the municipality and county; this will help with the collection of sales tax.  Liquor license issues: new laws being proposed and passed.  Transportation issues: DM & E merging with Canadian Pacific.

 

The Mayor discussed the ABC Coalition and the fine work that they are doing in the areas of child learning, parenting, child abuse and drug and alcohol issues.

 

The pumping of the water from the shafts at Homestake Mining Company was discussed and the issues that might arise from this.  

 

Motion by Chaplin, seconded by Usera and carried with all members voting yes to go into executive session for legal advice, contracts and personnel at 8:15 pm.

 

Motion by Scudder, seconded by Ferguson and carried with all members voting yes to return to regular session at 9:30 pm.

 

Motion by Usera, seconded by Anders, and carried with all members voting yes to adjourn the meeting at 9:30 p.m.

 

 

ATTEST: ___________________________ APPROVED: ______________________________

               Fay Bueno, Finance Officer                                   Maury LaRue, Mayor