PROCEEDINGS OF THE STURGIS CITY COUNCIL – JULY 17, 2006

 

The Common Council of the City of Sturgis met in regular session on Monday, July 17, 2006 at 7:30 p.m. at the Sturgis Community Center.  Present:  Mayor Mark Zeigler, Alderpersons Roger Call, Penny Green, Sherry Scudder, Terry Jensen, Pokey Jacobson, Mark Chaplin, Steve Anders, and Bev Patterson.  Absent:  None.

 

Mayor Zeigler announced that Neighborhood Housing would be celebrating their 500th Homebuyer with a welcome on July 19, 2006 at noon at 1620 Spruce St.

 

Motion by Jensen, second by Chaplin & carried to approve the agenda with the addition of a personnel executive session.

 

Motion by Anders, second by Chaplin & carried to approve the minutes of July 5, 2006.

 

Motion by Jacobson, second by Anders & carried unanimously to approve the following claims:

            GENERAL FUND – 2XL Corp, $224.94, sup; 54 Printing, $160.00, sup; A&B Business, $102.30, maint; A&B Welding, $26.40, sup; A&J Surplus, $223.58, sup; Laurie Adkins, $78.00, cc prog exp; Alliance Medical, $189.00, sup; Amcon Distributing, $451.88, merch for resale; American Red Cross, $536.00, cc prog exp; Asphalt Specialties, $3,037.54, maint; Associated Supply, $518.86, sup; Best Business Products, $27.38, maint; BH Chemical, $597.77, sup; BHP&L, $18,373.11, util; BH Truck & Trailer, $243.45, maint; BH.com, $250.00, maint; Birdsall Sand & Gravel, $163.00, sup; Richard Borkovec, $78.00, cc prog exp; Campbell Supply, $350.47, sup; City of Belle Fourche, $10.00, prof fees; Bill Coacher, $234.00, cc prog exp; Coca Cola, $1,022.40, util; Community Center Petty Cash, $8.00, cc prog exp; Conrad’s Big “C” Signs, $388.81, maint; Lora Counts, $27.56, refunds; Dakota Steel & Supply, $307.78, maint; Diamond Vogel Paints, $927.00, sup; Ecolab, $144.00, maint; Elan-City, $2,510.45, maint; Energy Labs, $17.50, maint; Engineering Dept. Petty Cash, $30.13, sup; Farmers Union Oil, $15,160.35, sup; Freeman Electric, $623.30, maint; FSH Communications, $55.00, util; Hills Materials, $-8.30, sup; Hillyard, $731.24, sup; Tim Hoffman, $20.14, refunds; JB’s Computers, $210.00, sup; Dennis Johnson, $136.50, cc prog exp; Johnston Hardware, $166.46, sup; Lynn’s Dakotamart, $69.14, sup; Meade Co Auditor, $10,228.60, other; Meade Co Times, $428.59, publishing; Micro Solutions, $391.20, maint; Midwest Distributors, $33.72, other; MDU, $1,743.39, util; Morman Law Firm, $52.03, other; NAPA, $1,301.18, sup; Newman Traffic Signs, $372.50, sup; Northern Hills Vet Clinic, $65.68, prof fees; Michael O’Bryan, $500.00, group ins; Owens Interstate Sales, $327.64, maint; Pamida, $348.03, sup; Pet Giant, $146.69, sup; Phil Town, $114.70, other; Pitney Bowes-Finance, $342.00, maint; Pizza Hut, $23.38, sup; Powerplan-Parks, $32.44, maint; Prairiewave, $387.86, util; Quill Corp, $266.23, sup; Rapid City Journal, $225.50, publishing; Rapid City Police Dept, $55.00, prof fees; Rapid Delivery, $46.80, maint; Rose’s Sanitation, $19.00, maint; RPM Machine Shop, $20.00, sup; Rushmore Office Supplies, $506.28, sup; Safety Benefits, $10,875.00, prof fees; Sanitation Products, $4,734.87, maint; Servall Towel, $352.68, sup; Sign Express, $17.02, sup; Superior Lamp, $397.51, sup; Tee’s Plus, $18.00, other; Temperature Technology, $1,067.50, maint; Thomson West, $322.00, sup; Town-n-Country Plumbing, $109.70, sup; Vanway Trophy, $252.00, cc prog exp; Walco International, $7.77, sup; Joey Weiland, $60.00, sup; Weimer’s Diner, $15.00, sup; West River International, $51.54, maint; Alona Westberg, $24.00, refunds; Western Door Co, $48.00, prof fees.

            PARK – A&B Welding, $6.60, sup; Nick Barbieri, $500.00, cap imp; BHP&L, $219.79, util; Campbell Supply, $190.38, sup; Farmers Union Oil, $315.68, sup; Freeman Electric, $56.32, sup; Johnston Hardware, $50.49, sup; Key City Glass, $14.00, sup; Maurie LaRue, $902.75, other; Lynn’s Dakotamart, $25.18, sup; Meade Co Times, $77.04, publishing; MDU, $22.04, util; NAPA, $274.36, maint; Northwest Pipe Fittings, $246.80, sup; Pamida, $16.98, sup; Powerplan-Parks, $41.41, maint; Rockingtree Floral, $4,650.57, other; Rockingtree Landscapes, $199.63, sup; Rose’s Sanitation, $566.00, maint; Rushmore Office Supplies, $10.40, sup; Town-n-Country Plumbing, $19.18, sup.

            BRICK PROJECT FUND – Elan-City, $27.15, sup; Glover Investments, $1,400.00, publishing.

            AMBULANCE SERVICE – Alliance Medical, $213.46, sup; DB Billing Co, $1,491.34, prof fees; Farmers Union Oil, $918.72, sup; Farmers Union-Union Center, $32.39, sup; Jacobsen Ford, $64.46, maint; Linweld, $133.35, sup; Brian Owen, $33.00, travel; Pamida, $31.95, travel; Prairiewave, $40.91, util; Sherry Spring, $33.00, travel.

            MAYOR’S RIDE – AMA Insurance Dept., $385.00, sup; Medtech Wristbands, $383.90, sup.

            CAPITAL IMPROVEMENT – Brosz Engineering, $1,315.00, cap imp; Campbell Supply, $110.88, cap imp; Iverson Construction, $27,550.80, cap imp; Meade Co Auditor, $2,837.93, principal; Northwest Pipe Fittings, $360.95, cap imp; Sturgis Tile Co, $35.00, cap imp; Swenson Plumbing, $5,000.00, cap imp; Town-n-Country Plumbing, $60.04, cap imp.

            2005 SERIES REVENUE BOND – Rural Development, $9,773.00, interest.

            CAPITAL PROJECTS – All Communications, $11,600.00, cap imp; Geiger Architecture, $7,647.50, cap imp.

            LIQUOR – BHP&L, $1,026.06, util; BH Rally & Gold, $604.50, merch for resale; BH Security & Systems, $174.49, maint; Coca Cola, $704.50, pop for resale; Eagle Sales, $13,759,38, off sale beer; Ecolab, $25.50, maint; Elan-City, $189.60, travel; Fisher Beverage, $6,255.96, off sale beer; Frito-Lay, $37.89, snacks for resale; Heartland Paper, $360.27, sup; Johnson Western Wholesale, $16,113.40, off sale liquor; Johnston Hardware, $5.79, maint; Lynn’s Dakotamart, $6.53, sup; M&B Enterprises, $60.30, snacks for resale; MDU, $11.20, util; NAPA, $234.86, maint; Nash Finch Co., $15,995.63, other; One-Way Service Pros, $156.93, maint; Pepsi Cola, $408.70, pop for resale; Rushmore Office Supplies, $101.51, sup; S. Ellwein, $419.34, merch for resale; Servall, $87.82, maint; Sodak, $7,817.26, off sale liquor; Homeslice, $3,664.00, publishing; Turkey Graphics, $318.00, merch for resale; Wells Fargo Merchant Services, $7.50, other.

            WATER SYSTEM OPERATIONS – BHP&L, $650.05, util; Brosz Engineering, $150.00, cap imp.

            WASTEWATER FACILITIES – American Engineering Testing, $1,280.65, maint; BHP&L, $1,821.60, util; Bierschbach Equipment, $289.00, maint; Brosz Engineering, $2,262.50, cap imp; Campbell Supply, $38.97, maint; City of Belle Fourche, $28.86, other; Energy Labs, $301.00, prof fees; Farmers Union Oil, $13.51, maint; Ferber Engineering, $15,887.01, cap imp; Hersrud, $143.85, maint; Hills Materials, $65.08, sup; Jim’s Auto Salvage, $45.00, maint; Meade County Times, $34.03, publishing; MDU, $478.81, maint; NAPA, $8.72, maint; Northwest Pipe Fittings, $847.24, sup; Owens Interstate Sales, $99.98, util; Specialty Technical Publishers, $990.00, maint; USA Blue Book, $34.40, maint; Wells Plumbing, $906.31, sup.

            SANITARY SERVICE – BHP&L, $20.39, util; City of Belle Fourche, $16,872.45, other; Farmers Union Oil, $2,387.49, maint; FSH Communications, $55.00, util; M&W Towing, $286.00, maint; Meade Co Times, $468.84, publishing; NAPA, $302.06, maint; Northern Truck Equipment, $14,146.00, maint; Owens Interstate Sales, $157.83, maint; Rapid City Journal, $248.90, publishing; Rushmore Communications, $47.04, maint; Sanitation Products, $6,670.00, maint; Stern Oil Co, $2,517.50, sup.

            RALLY – A&B Business, $77.72, maint; Alpine Impressions, $15.00, sup; Beechmont Press, $1,164.60, publishing; Beyond Basil, $13,075.00, sup; Black Swamp Choppers, $1,920.00, rally rentals; Campbell Supply, $185.56, sup; Coca Cola, $31.90, rent; Dataform, $1,091.87, sup; Dethmeters Manufacturing, $45,950.98, publishing; Elan-City, $433.63, sup; Farmers Union Oil, $307.91, sup; Fedex, $1,025.71, sup; Heartland Paper, $119.87, sup; Johnston Hardware, $9.99, sup; Lynn’s Dakotamart, $77.87, sup; Meade Co Times, $47.50, publishing; Gary Moore, $125.00, maint; Northern Hills Homes, $227.96, maint; Outlaw’s Ltd, $1,434.36, other; Outsource Solutions, $6,000.00, prof fees; Pizza Hut, $30.84, sup; Pizza Ranch, $22.47, sup; Quill Corp, $293.85, sup; Rushmore Office Supplies, $149.75, sup; Tom’s T’s, $130.00, sup.

 

Green introduced the following written resolution and moved its adoption:

RESOLUTION 2006-28

RESOLUTION APPROVING PLAT

 

            WHEREAS, the statutes of the State of South Dakota require that plats of property within the City of Sturgis be submitted to the governing body for approval before the same are recorded in the Office of the Register of Deeds; and

            WHEREAS, Meade County Housing Authority has presented to the Common Council of the City of Sturgis a plat of the following described real property:

 

PLAT OF LOTS 1 THRU 6 OF LOT A-3 OF HURLEY SUBDIVISION, FORMERLY LOT A-3 OF HURLEY SUBDIVISION, LOCATED IN THE SE1/4SW1/4, SECTION 9, T5N, R5E, BHM, CITY OF STURGIS, MEADE COUNTY SOUTH DAKOTA

 

WHEREAS, said plat meets the requirements of the statutes in all things, now

therefore,

            BE IT RESOLVED by the Common Council of the City Of Sturgis, South Dakota, that the within and foregoing plat is hereby approved.

 

            Dated this 17th day of July 2006.

 

Call duly seconded the motion for the adoption of the foregoing resolution.

 

Patterson arrived.

 

All those present voted in favor of the resolution, with the exception of Scudder, who abstained, and the motion was declared passed and adopted.

 

Motion by Chaplin, second by Patterson & carried to set a public hearing date of August 21, 2006 for a use on review for Northern Hills Drug & Alcohol to allow for a treatment center in a residential zoned area.

 

Motion by Green, second by Chaplin & carried to set a public hearing date of August 21, 2006 to vacate the right-of-way described as follows: A portion of 13th Street Right-of-Way, Located in the SW1/4SW1/4, Section 4, T5N, R5E, BHM, City of Sturgis, Meade County, South Dakota.

 

City Engineer Bob Kaufman gave a brief update on the Exit 32 project.  The contractor is still on schedule.  It will be tight but they will be done by rally time.  There will be some seeding and clean-up that will need to be completed after the rally but the traffic should be able to flow as normal.  They paved Junction Ave south last week and they are waiting for DM&E to reconstruct the railroad crossing.

 

City Engineer Kaufman gave a brief update on the Whitewood Service Road project.  The utilities are currently being worked on and they are completing the relocation of the water line.  They will be pressure testing this line on July 18, 2006.  After this is complete, they will still have a little sewer work to finish before the rally.  After the rally, they will complete the sewer work and start on the bridges/roadways.

 

City Engineer Kaufman gave a brief update on the Woodle Field concession stand.  The contractor is a little behind but the building has been framed and the sheeting has been placed on the roof.  The electrician & plumber will be going in to complete the rough in and the facility should be open in time for the first event on August 18, 2006.

 

There was no update on the Lion’s Club Park shelter, as the bid for the concrete & restrooms was going to be awarded later during this meeting.

 

City Engineer Kaufman gave a brief update on the Library/ Municipal Offices Complex.  The upstairs is complete with the exception of counter top for the librarian desk & the windowsills and for the archive room.  The cabinets should be in next week.  On the main floor, the contractor is continuing to work on baseboard.  The cabinets are done but we are waiting on the countertops.  The elevator does work.

 

Motion by Scudder, second by Anders & carried to approve the request of the Assembly of God Church to hold a kids rally in the park during the motorcycle museum.  The clergy man that is coming from the Denver area to assist in the ministry will be staying overnight in the park for security of different items that they will be bringing in, such as blow-up bouncers, etc.  They are going to work with City Attorney Keith Smit for insurance requirements.

 

Motion by Patterson, second by Anders & carried to approve the video sign request of Sheree Schriver dba Jambonz, 2214 Junction Ave.  This sign will be in place during the rally only and she will work with Police Chief Jim Bush regarding the placement.

 

This was the time set to award the bid on the SIEC Industrial Park Loop.  The following bids were received:

            Hills Materials                                    $  914,493.05

            Simon Contractors                 $  985,600.57

            Site Work Specialists              $1,004,805.33

            Rapid Construction                $  963,153.70

            Spearfish Excavating             $  949,018.65

 

Motion by Chaplin, second by Patterson & carried unanimously to award the bid to Hills Materials in the amount of $914,493.05.

 

Motion by Anders, second by Jensen & carried unanimously to authorize the City participation for the Industrial Park Loop in the amount of $40,000 out of the water fund and $80,000 out of the wastewater fund.

 

This was the time set to award the bid on the Lion’s Club Park gazebo & foundation.  The only bid received was from Iverson Construction in the amount of $101,100.  Motion by Chaplin, second by Patterson & carried, with Jacobson abstaining, to award the bid to Iverson Construction.

 

Motion by Chaplin, second by Anders & carried unanimously to approve the raffle request of the SD Farmers Union Foundation.  They will be raffling a 2007 e-85 Chevy truck on February 11, 2007 in Huron.  This has also been submitted for a statewide raffle.

Chaplin introduced the following written resolution and moved its adoption:

RESOLUTION 2006 - 30

A RESOLUTION OBJECTING TO LOTTERY

 

            WHEREAS the City of Sturgis has received a request for a lottery from F.W. Jr., Inc.; and

 

            WHEREAS the City of Sturgis has been unable to determine whether or not the above referred applicant qualifies as a bona fide congressional chartered veterans organization; a religious, charitable, educational, fraternal organization; a local civic or service club; a political party; volunteer fire department; or a political action committee or a political committee on behalf of any candidate for political office which exists under the laws of the State of South Dakota; and

 

            WHEREAS pursuant to SDCL 22-25-25(6) and the City of Sturgis Ordinances, the City has been given notice of such intent to conduct a lottery; and

 

            NOW THEREFORE pursuant to the above referred to statutes and the petition which has been filed herein the City does hereby object to and deny the request for a lottery within the City limits of the City of Sturgis, Meade County, South Dakota.

 

            Dated this 17th day of July, 2006.

           

Published:  July 29, 2006

Effective:  August 9, 2006

 

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

 

Motion by Anders, second by Chaplin & carried unanimously to hire Teri Bertness to complete the job description updates for $3,500.  This is for approximately 60 different job descriptions.

 

Motion by Anders, second by Patterson & carried to approve the BLM prescribed burn of the knoll, which would exclude the hill on the south end of Barry Stadium.  The burn will be completed in October and consist of an area of about 300 ft wide, with a total burn of approximately 103 acres.  Fire Chief Ron Koan will work with them regarding an exact date.

 

Motion by Scudder, second by Jensen & carried to table the first reading of Ordinance 2006-17 – Ordinance Amending Title 31, Chapter 31.02, Section 31.02.03.3 Fee and Duration of License.

 

Motion by Anders, second by Patterson & carried to approve first reading of Ordinance 2006-18 – Revised Ordinance Replacing Title 9 Fire Prevention and Regulation.

 

Motion by Chaplin, second by Scudder & carried to approve first reading of Ordinance 2006-19 – Revised Ordinance Amending Title 30, Chapter 30.04, Section 30.04.09 Video Signs.

 

Motion by Chaplin, second by Patterson & carried to approve the following special events licenses for the Nite Owl:  a) Harter/Fink Wedding reception to be held on July 22, 2006 at the Armory; b) Harwood Wedding Reception to be held on August 26, 2006 at the Armory; c) Stout/Cobb Wedding Reception to be held on September 17, 2006 at the Armory; d) Schneider Wedding Reception to be held on October 7, 2006 at the Community Center.

 

Motion by Chaplin, second by Green & carried to approve the special events license for the Firehouse Saloon August 5-10, 2006, to be served at the City Reception tent.

 

Chaplin introduced the following written resolution and moved its adoption:

RESOLUTION NO. 2006-29

RESOLUTION, GIVING APPROVAL TO THE ISSUANCE OF SALES TAX REVENUE BONDS TO FINANCE A PORTION OF THE COSTS OF THE STURGIS CITY LIBRARY/MUNICIPAL OFFICES COMPLEX PROJECT AND AUTHORIZING THE SALE OF SAID SALES TAX REVENUE BONDS

 

            NOW, THEREFORE, BE IT RESOLVED by the City Common Council of the City of Sturgis as follows:         

1.                  Recitals.  The City of Sturgis (the "City") desires to make a capital improvement to and finance its Sturgis City Library/Municipal Offices Project (the "Project") which it has previously approved.  The City has requested the United States through Rural Development to purchase a portion of the bonds.  The City desires to privately place the bonds with Rural Development. 

2.                  Authority.  The City is authorized to issue its Sales Tax Revenue Bonds, Series 2006, to finance the capital improvements pursuant to Section 10-52-2.10 of the South Dakota Codified Laws.  Pursuant to Chapter 10-52 of the South Dakota Codified Laws (the "Act") the City proposes to issue municipal non ad valorem revenue bonds (as herein authorized, the Sales Tax Revenue Bonds, Series 2006, or the "Bonds") to finance the Project.  The City is authorized by the Sales Tax Act to levy a “non ad valorem tax” (as defined by the Act) on the sale, use, storage, and consumption of items taxed under Chapters 10-45 and 10-46 of the South Dakota Laws, subject to certain, as amended, exceptions.

3.                  Sales Tax Ordinance.  The City Common Council has adopted Ordinance No. 20 which constitutes the City's effective Sales Tax Ordinance (the "Sales Tax Ordinance").  The Sales Tax Ordinance has been duly adopted pursuant to the Act and effectively and validly imposes the sales and use tax authorized by the Act within the City, such tax being hereinafter referred to as the "Sales Tax".

4.                  Cost of the Project.  The cost of the Project is approximately $4,200,000. The City proposes to finance approximately $675,000 of the Project through the issuance of Sales Tax Revenue Bonds, Series 2006 (the "Bonds").  The Bonds shall be payable out of certain available sales tax receipts. 

5.                  Findings.  The City Common Council hereby finds and determines as follows:

5.1.            The Project constitutes improvements which qualify for the financing under and pursuant to SDCL Chapter 10-52, and the Sales Tax Ordinance; and

5.2.            The Sales Tax Revenue Bonds Authorized hereby are being issued to pay costs of the Project which have not been incurred or paid as of the date hereof and/or which the City has heretofore declared its intention to finance with bond proceeds and for which the City has no other available means or source of financing.

5.3.            It is in the best interests of the City to authorize the borrowing of funds to pay a portion of the costs of the Project by authorizing and issuing its Sales Tax Revenue Bonds, Series 2006.

6.                  Sale of Bonds.  It is hereby determined to be necessary and in the best interests of the City and its inhabitants that this City Common Council authorize, issue and sell the Bonds (the “Bonds”) in order to finance a portion of the cost of the Project.  The Mayor and Finance Officer are authorized to negotiate the sale of the Bonds.

7.                  No Election Required.  The Bonds may be issued by the City without an election pursuant to SDCL §10-52-2.10. 

8.                  Form of Bonds.  The Bonds shall be prepared in substantially the form on file with the Finance Officer and open to public inspection.

9.                  Terms of  Bonds.

9.1.            Date, Amount, Maturities and Interest Rates.  The City Common Council hereby authorizes the issuance of the Bonds.  The Bonds shall be dated in 2006.  The principal amount of the Bonds shall not exceed any statutory or constitutional debt limitation.  The Bonds shall have maturities and interest rates as negotiated by the Mayor and Finance Officer.  The Bonds shall be callable prior to maturity at the option of the City.

9.2.            Preparation and Delivery.  The Bonds shall be prepared under the direction of the Finance Officer and shall be executed on behalf of the City by the facsimile or manual signatures of the Mayor and the Finance Officer and countersigned by the facsimile or manual signature of an attorney actually residing in the State of South Dakota and duly licensed to practice therein.

9.3.            Security Provisions; Funds and Accounts and Other Covenants and Determinations.

9.3.1.      Sales Tax Revenue Bond Fund.  The Finance Officer is hereby authorized and directed to establish and shall maintain the Sales Tax Revenue Bond Fund as a separate and special fund in the financial records of the City until all Bonds issued and made payable therefrom, and interest due thereon, have been duly paid or discharged.  All collections of the Pledged Revenues, as hereinafter defined, shall be credited, as received, to the Sales Tax Revenue Bond Fund.  Within the Sales Tax Revenue Bond Fund are various separate accounts to be maintained by the City.  The following accounts may be established as sub accounts under an existing sub account of the Sales Tax Revenue Fund.

9.3.2.      Pledged Revenues.  Pursuant to the Act and the Sales Tax Ordinance, the City has levied the Sales Tax on the sale, use, storage and consumption of items taxes under Section 10-45 and 10-46 of South Dakota Codified Laws, subject to certain exception.  The proceeds of the Sales Tax are irrevocably pledged and appropriated to, and shall be deposited to the Sales Tax Revenue Bond Fund.  The total amount of Sales Taxes collected is referred to herein as the "Pledged Revenues".  For purposes of this Resolution, "Outstanding Bonds" shall mean these Bonds and any parity lien bonds hereafter issued pursuant to this Resolution.  The Pledged Revenues and the Sales Tax Revenue Bond Fund shall be used and applied only in the manner and order hereinafter set forth.

9.3.3.      Construction Account.  There is hereby created and established as an account of the Sales Tax Revenue Bond Fund, a "Construction Account".  There shall be credited to the Construction Account the proceeds from the sale of the Bonds remaining after payment of the expenses of issuing the Bonds.  All moneys credited to the Construction Account shall be applied solely to the payment of the costs of the Project.  For the purposes of this Resolution, "costs of the Project" shall include costs of acquiring, construction, and installing the Project including cost of labor, services, materials and supplies, financial, architectural, engineering, legal, accounting and other professional expenses relating to the Project, the costs of acquisition of properties, rights, easements, or other interest in properties, insurance premiums, and the costs of publishing, posting or mailing notices in connection with the Project and Bond issuance costs.  All sums derived from the investment of moneys in the Construction Account shall remain in and become part of such account.  Upon completion of the Project and when all costs of the Project have been paid, any balance remaining in the Construction Account shall be credited to the Principal and Interest Account hereinafter established.

9.4.            Principal and interest Account.  There is hereby created and established as an account of the Sales Tax Revenue Bond Fund, a "Principal and Interest Account or Revenue Account".  Immediately upon delivery of the Bonds, there shall be credited to the Principal and Interest Account the amount of any accrued interest received from the Purchaser.  Commencing on the first day of the month following the month in which the Bonds are delivered to the Purchaser, there shall be withdrawn from the Sales Tax Revenue Bond Fund, at least monthly and credited to the Principal and Interest Account an amount which will equal at least (one over the number of months between interest payments) the interest becoming due on the next succeeding interest payment date with respect to the Outstanding Bonds issued.  Commencing on the first day of the month following the month in which the Bonds are delivered to the Purchaser, there shall be withdrawn from the Sales Tax Revenue Bond Fund at least monthly and credited to the Principal and Interest Account, an amount which will equal at least (one over the number of months between principal payments) the principal becoming due on the next succeeding principal payment date with respect to the Outstanding Bonds.  In all events there shall be credited to the Principal and Interest Account amounts sufficient to pay the principal of and interest on the Outstanding Bonds as the same become due.

9.5.            Reserve Account. 

 

Upon each monthly apportionment, there shall be set aside and credited to the Revenue Account out of the Pledged Revenues an amount equal to not less than one-twelfth of the total sum of the principal and interest to become due within the then next succeeding twelve months on all Bonds.  Moneys from time to time held in the Revenue Account shall be disbursed only to meet payments of principal and interest on Bonds as such payments become due; provided, that on any date when all outstanding Bonds are due or prepayable by their terms, if the amount then on hand in the Revenue Account, together with the balance then on hand in the Reserve Account, is sufficient, with other moneys available for the purpose, to pay all Bonds and the interest accrued thereon in full, it may be used for that purpose.  If any payment of principal or interest becomes due when moneys in the Revenue Account are temporarily insufficient therefor, such payment shall be advanced out of any Pledged Revenues theretofore segregated and then on hand in the Reserve Account, the Replacement and Depreciation Account or the Surplus Account.  In the event that sufficient moneys are not available from the aforementioned sources, the City, to the extent it may at the time legally do so, may, but shall not be required to, temporarily advance moneys to the Revenue Account from other funds of the City on hand and legally available for the purpose, but any such advance shall be repaid from Pledged Revenues within 24 months.

 

9.6.            Subordinate Lien Bonds.  After making the above required payments, any remaining Pledged Revenues shall be used for the payment of the principal of and interest on any additional sales tax revenue bonds having a lien which is subordinate to the lien of the Outstanding Bonds, and for a reserve fund as additional security for the payment of such subordinate lien bonds.

9.7.            Inter-fund Transfer.  So long as the revenues from the Sales Tax are sufficient to make all required deposits to the Principal and Interest Account, the City may deposit the excess revenues from the Sales Tax to the general fund or any other City fund as determined by the City and as permitted by law or by other resolutions of the City

9.8.            Additional Bonds.  Nothing herein prevents the City from issuing additional bonds payable from Sales Tax on a parity or subordinate basis.

9.9.            Covenants of the City.  The City hereby irrevocably covenants and agrees with each and every holder of the Bonds that so long as any of the Bonds remain outstanding:

9.9.1.      It will not amend or repeal the Sales Tax Ordinance relating to the Sales Tax by decreasing the Sales Tax rate or the allocation of revenues thereof to the Sales Tax Revenue Bond Fund, or in any way that would adversely affect the amount of Sales Tax Revenues which would otherwise be collected and deposited to the Sales Tax Revenue Bond Fund.  However, nothing shall prevent the City from amending the Sales Tax Ordinance in order to make certain changes in the administration, collection or enforcement of the Sales Tax, provided that such changes would not materially adversely affect the owners of the Bonds.

9.9.2.      It will administer, enforce, and collect, or cause to be administered, enforced or collected; the Sales Tax authorized by the Sales Tax Ordinance and shall take such necessary action to collect delinquent payments in accordance with law.

9.9.3.      It will keep or cause to be kept such books and records showing the proceeds of the Sales Tax, in which complete entries shall be made in accordance with standard principles of accounting, and any owner of any Bond shall have the right at all reasonable times to inspect the records and accounts relating to the collection and receipts of such Sales Tax.

9.9.4.      In the event the Sales Tax of the City is replaced and superseded by the state collected-locally shared sales tax or taxes, or is replaced and superseded in some other manner form other source or sources, the revenues derived by the City from the replacement source or sources, as received by the City shall be appropriated in the same manner as if the City had levied and imposed a sales tax.  From and after the date of a replacement, the Outstanding Bonds shall have a first and prior lien, but not necessarily an exclusive lien, upon such replacement revenues to the extent therein specified.

9.10.        Tax Matters; Certification of Proceedings and Miscellaneous.

9.10.1.  Tax Matters.  Interest on the Bonds is taxable for federal income tax purposes to the holder thereof.

9.11.        Certification of Proceedings.  The officers of the City are authorized and directed to prepare and furnish to the purchasers of the Bonds certified copies of all proceedings and records of the City relating to the authorization and issuance of the Bonds and such other affidavits and certificates as may reasonably be required to show the facts relating to the legality and marketability of the Bonds as such facts appear from the officer's books and records or are otherwise known to them.  All such certified copies, certificates and affidavits, including any heretofore furnished, shall constitute representations of the City as to the correctness of the facts recited therein and the action stated therein to have been taken.

9.12.        Resolution Becomes Effective Upon Passage.  This Resolution shall become effective upon passage.

Adopted:    July 17, 2006

Approved:   July 17, 2006

Published:  July 22, 2006

Effective:  August 12, 2006

 

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

 

Motion by Anders, second by Patterson & carried unanimously to authorize the Mayor to sign the Legal Services Agreement with Todd Meierhenry for the aforementioned bonds.

 

Motion by Green, second by Scudder & carried unanimously to authorize the Mayor to sign the Fosheim agreement with the stipulation that 1/2 of the money will be paid up front with the other half being paid after Fosheim completes the necessary work.  This work must be completed prior to November 1, 2006.  Also, the City will make sure the sewer line is clear & then it would be the responsibility of Fosheim to maintain the line all of the way to the main.

 

Motion by Patterson, second by Chaplin & carried to table the Right-of-Way permit with BH Power for a better defined legal description.

 

Motion by Chaplin, second by Green & carried unanimously to authorize the Mayor to sign the hostess agreements for the rally VIP area.  There are two hostesses who receive $800 for an 8 day period.

 

Motion by Chaplin, second by Anders & carried unanimously to authorize the Mayor to sign the VIP catering agreement with Beyond Basil.

 

Motion by Chaplin, second by Scudder & carried to approve the mayoral appointment of Dan Mayer to the water board for his (the Mayor’s) replacement, as he resigned July 15, 2006.

 

Motion by Chaplin, second by Anders & carried unanimously to approve the following salary matters:     Wages – a) Scott Rovere – Building Inspector, $1,500/yr increase to $34,500/yr, effective 6/26/06; b) Kathy Dykstra – Children’s Librarian, increase to $12.95/hr (from salary equivalent $12.50/hr), effective 6/26/06; c) Henry Logar – Cemetery, $.50/hr increase to $8.00/hr, effective Aug 1-15, 2006; d) Lawrence Hertel – Parks, $.75/hr increase to $8.00/hr, effective Aug 1-15, 2006; e) Gene Lucas, Melissa Haber, Julie Stone, Dallas Hughes – Parks, $1.00/hr increase to $8.00/hr, effective Aug 1-15, 2006; f) Wade Leatherman – Parks, $1.75/hr increase to $8.00/hr, effective Aug 1-15, 2006; g) McKenzie Bachand – Parks, $2.00/hr increase to $8.00/hr, effective Aug 1-15, 2006; New Hires – a) Temp Rally Special Officers & Reserves - $14.00/hr, effective 2006 rally; b) Temp Rally Team Leaders - $14.50/hr, effective 2006 rally; c) Temp Security at Community Center - $10.50/hr, effective 2006 rally; d) Temp Police Secretarial - $10.00/hr, effective 2006 rally; e) VIPS Assistants - $8.00/hr, effective 2006 rally; f) Tia Vencil & Ralph Vencil – CC Temp Rally Front Desk, $8.00/hr, effective Aug 3-13, 2006; g) Patty Sanderson, Bagel Gillette, Benton Rolfes, Alison Alston – CC Temp Rally Custodial, $8.00/hr, effective Aug 3-13, 2006; h) Dawn Rennie – Temp Rally Staff, $8.00/hr, effective 2006 rally; i) Miles Stansbury - Rubble Site Workers, Class 102, $9.83/hr, effective 7/19/06;  j) Dave Karas, Jean Kusser, Chris Collins, Lance Collins, Ben Wardell, Dale Burnell, Brandyn Crawford – Temp Rally, $8.00/hr, effective 2006 rally; Volunteers – a) Brad & Kary Stock – Parks.

 

OTHER MATTERS THAT MAY COME BEFORE COUNCIL

 

Mayor Zeigler announced that the BLM road would be staying open during the rally.  Both the Police Chief and Fire Chief agreed this was needed for emergency access.

 

City Engineer Kaufman advised that FEMA would like a public meeting regarding the flood mapping during the week of August 14-18, 2006.  Public Works requested that it be scheduled for August 17, 2006 at 7:00pm.

 

Motion by Anders, second by Chaplin & carried to adjourn to executive session for the purpose of discussing legal, personnel & contract matters.

 

Motion by Jensen, second by Anders & carried to return to regular session.

 

Motion by Chaplin, second by Anders & carried, with Green abstaining, to auth City Attorney Keith Smit to proceed with legal action against Gerald Langin/Langin Auto Salvage regarding his barbed wire fence.

 

Motion by Green, second by Patterson & carried to adjourn the meeting at 9:09pm until 5:30pm on July 24, 2006 for an executive session to discuss contract matters.

 

ATTEST: _______________________________ APPROVED: __________________________

            Pauline Sumption, Finance Officer                              Mark T. Zeigler, Mayor