MINUTES OF CITY COUNCIL PROCEEDINGS
MENNO, SOUTH DAKOTA
Mayor Darrell Mehlhaf called the city council to order at 7:30 p.m. on October 4, 2010 in the finance office at city hall. Roll Call: Darrell Mehlhaf, Ronald Diede, Jerry Fischer, Galen Guthmiller, Jerome Hoff, Jerome Kotalik and Scott Simonsen; a quorum was present. Others present: Finance Officer Peggy Thranum, Superintendent Fred Sayler, Editor Erik Kaufman and Aaron Matthaei.
Hoff moved to approve the agenda with the following addition: Barking Dogs. Diede seconded; all ayes.
REGULAR MEETING ITEMS: Simonsen moved to approve the minutes of the September 8 regular meeting. Kotalik seconded; all ayes.
Fischer moved to approve the September finance report. Guthmiller seconded; all ayes.
FINANCE REPORT:
|
|
General |
Water |
Sewer |
Perpetual Care |
Totals |
|
Checking Balance 8/31/10 |
222,080.32 |
18,848.95 |
11,504.45 |
1,869.28 |
254,303.00 |
|
Warrants: |
(32,259.73) |
(9,438.97) |
(3,856.86) |
0.00 |
(45,555.56) |
|
Receipts: |
31,019.05 |
13,605.15 |
7,459.09 |
0.00 |
52,083.29 |
|
Interest: |
46.93 |
4.85 |
3.18 |
|
54.96 |
|
Month End Checking Balance 9/30/10 |
220,886.57 |
23,019.98 |
15,109.86 |
1,869.28 |
260,885.69 |
|
Water Deposits Held |
|
(4,650.00) |
|
Restricted |
(4,650.00) |
|
General Purpose CD |
50,000.00 |
|
|
Account |
50,000.00 |
|
Designated Purpose CD's |
118,151.96 |
53,079.07 |
58,114.54 |
50,981.48 |
280,327.05 |
|
Total Cash Assets: |
389,038.53 |
71,449.05 |
73,224.40 |
52,850.76 |
586,562.74 |
|
Profit or (Loss) for the month |
(1,193.75) |
4,171.03 |
3,605.41 |
0.00 |
6,582.69 |
Hoff moved to approve the following warrants. Kotalik seconded; all ayes.
WARRANTS APPROVED: Payroll: Council 503.72; Mayor 184.70; Finance 1084.63; Building 124.91; Police 2822.73; Streets 1978.37; Garbage 492.06; Cemetery 121.29; West Nile 116.44; Ambulance 326.17; Parks 414.30; Library 256.82; Development 136.88; Water 1009.27; Sewer 1015.64; Group Insurance: Wellmark BCBS, 2564.96; Principal Life 768.04; Avesis, vision 47.98; AFLAC 143.64; Menno State Bank, payroll taxes 2746.96; SDRS, retirement 1338.58. Professional Services: Bonnie Heirigs, 1 cemetery mowing 630.00; Rocky Zeeb’s Garbage Service, 289 residential 3612.50. Utilities: Golden West, Phone 319.80; NorthWestern Energy, electricity 1859.18; Verizon Wireless, police cell phone 36.42. SDML, conference 100.00; NSF, Jeremy Abma 171.50; Arens Engineering, wastewater study 750.00; Bertsch Law Office, legal fees 50.99; B-Y Water, 1.381 million gallons 4823.00; City of Sioux Falls, pool samples 34.34; Classic Collision, Ford pu tail light 32.00; Country Pride, fuel 69.60; Dept of Revenue, sewer samples 235.00; Ken’s Electric, city hall R&M 8.67; Klaudt Service, fuel 621.79; Maxwell Signs, sign board-stencils 552.00; Menno Food Market, supplies 43.72; Menno Lumber, street R&M 206.09; Mettler Implement MF tractor R&M 15.00; Petty Cash, supplies 19.90; SDML, attorney handbook 10.00; SD State Treasurer, sales tax garbage 283.51-gravel 7.08; SCPI, publishing 279.71; SD One Call, locates 43.45; Team Laboratory, lift station degreaser 678.15; Ulmer Farm Service, culverts 2870.50; Van Diest Supply, West Nile supply 1318.00; Vantek, battery 92.50; Western Office, ink cartridges 34.98; Walter Welding, R&M 104.60.
SCHEDULED BUSINESS: Diede moved to approve a Temporary Malt Beverage Permit for the Sodak-Stamm Chapter GRHS Oktoberfest for October 16, 2010 at the Menno City-School Gym. Guthmiller seconded; roll call-all ayes.
OLD BUSINESS: “To Do List”: The mayor will find a contractor to fix the leaking roof at city hall, fix the front door so it closes, insulate the ceiling in the back room and fix the rotted window. Maintenance will fix the water leak in front of city hall.
Thus far, no one has been able to determine where the pipes run for the baby pool.
Our loan coverage as determined by DENR is 89% at our current rate. We need to be at 110% to secure a loan. Hoff moved that sewer rates beginning January 1, 2011 be $12 0-1000 gallons and $3.00 every 1000 gallons thereafter. Simonsen seconded; roll call-all ayes. This will bring our loan coverage to 114%.
Diede moved to use the average amount of water used in January, February and March as a sewer average in the watering months of June, July, August and September only. The other eight months of the year you will not use an average for sewer, but pay what you use. Guthmiller seconded; roll call-all ayes.
Hoff moved to table further discussion on the picnic tables to next month to allow time for more information to be gathered. Kotalik seconded; all ayes.
NEW BUSINESS: Kotalik moved to approve the following resolution. Fischer seconded; all ayes.
A resolution of the City Council of Menno declaring its support for, and adoption of, the Hutchinson County
Multi-Jurisdiction Pre-Disaster Mitigation Plan.
WHEREAS a Pre-Disaster Mitigation Plan for Hutchinson County (the Plan) has been developed; and
WHEREAS the City of Menno participated in the development of the Plan; and
WHEREAS the Plan will be used as a disaster mitigation planning tool as deemed appropriate by the Menno City Council.
NOW THEREFORE BE IT RESOLVED that the Menno City Council hereby adopts and supports the Plan, and will take action to ensure that the Plan is implemented.
Adopted and approved this 4th day of October, 2010.
ATTEST: Peggy Thranum, Finance Officer SIGNED: Darrell J. Mehlhaf, Mayor
Councilman Jerome Hoff introduced the following resolution and moved for its adoption:
RESOLUTIONS for ORDINANCES #08/10-04-2010
WHEREAS, the City of Menno has adopted the 2005 Revised Ordinances of the City of Menno; and
WHEREAS, the 2005 Revised Ordinances of the City of Menno state that various dates, fees, etc. will be set by resolution of the city council;
THEREFORE BE IT RESOLVED that the City of Menno adopts the following resolutions to wit:
1. Chapter 3, Section 2: The council will meet at 7:30 p.m.
2. Chapter 3, Section 15: Compensation for council members and mayor will be as published in the annual salary listing at the first meeting in January of each year.
3. Chapter 3, Section 79: Compensation for officers and employees will be as published in the annual salary listing at the first meeting in January of each year.
4. Fees for on and off sale malt beverage/liquor licenses will be as follows:
a. Package off-sale liquor $400
b. Package off-sale malt beverage $200 ½ to the City & ½ to the Dept. of Revenue
c. On-sale liquor $1200
d. Retail On-sale liquor (American Legion)$100
e. Retail On-sale liquor/Sunday $200
f. Retail On-Off-sale malt beverage $300 ½ to the City & ½ to the Dept. of Revenue
5. Chapter 11, Section 13: Compensation for election officials will be as published in the annual salary listing at the first meeting in January of each year.
6. Chapter 17, Section 12: The finance officer will be designated as the flood control officer.
7. Chapter 24-8, Section 8: A fee of $10 per day will be paid by any person camping at the city park. From July 2, 2008 minutes: Huber moved to charge $10 per day for camping fee and electricity at the city park. Aisenbrey seconded; all in favor. From July 2, 2010 minutes: Diede moved to adjust the daily rate of $10 a day to $8 a day for camping at the city park if you stay 30 consecutive days or more, which would waive the 10 day camping limit. The $240 must be paid in advance. Hoff seconded; roll call-all ayes.
8. Chapter 28. Section 7: All private residences will pay $15 per month for garbage collection. From July 2, 2007 minutes: Aisenbrey made a motion to set residential garbage rates at $15 per month. ($14.15 plus $.85 sales tax) This includes the restricted use site fee. Kotalik seconded; all present in favor.
9. Chapter 29, Section 1: Sewer fees for all users will be $12 for the 1st 1000 gallons and $2.50 per thousand thereafter. From July 2, 2010 minutes: Hoff moved to comply with the minimum required rates for wastewater so we qualify for grants. Sewer rates beginning September 1, 2010 will be $12 0-1000 gallons and $2.50 every 1000 gallons thereafter. Simonsen seconded; roll call-all ayes.
10. Chapter 29, Section 2: Sewer taps will be $175 each, plus applicable taxes.
11. Chapter 29, Section 5-B: Permit & fee for private wastewater disposal system will be $250.
12. Chapter 29, Section 7 (H-5): Limits for wastes containing iron, chromium, copper, zinc, and similar objectionable or toxic substances shall be as required by the ARSD (Administrative Rules of South Dakota) and the NPDES Permit held the by the city.
13. Chapter 29, Section 7 (H-6): Limits for wastes containing odor-producing substances shall be as required by the ARSD (Administrative Rules of South Dakota) and the NPDES Permit held the by the city
14. Chapter 31, Section 1: Towing and storage charges for towed property shall be the actual amount charged by the towing company.
15. Chapter 38, Section 3: The rate of pay for the water superintendent will be as published in the annual salary listing at the first meeting in January of each year.
16. Chapter 38, Section 5: Water deposits will be $100.
17. Chapter 38, Section 9: Water taps will be cost plus 15% for supplies, plus applicable taxes. From May 4 2009 minutes: Kotalik moved to charge cost plus 15% for supplies for water taps effective immediately. Hoff seconded; all ayes.
18. Chapter 38, Section 25: Penalty for neglect or refusal to pay on demand shall be $50.
19. Chapter 38, Section 31: Water rates for all consumers will be $12 for the 1st 1000 gallons and $5 per thousand thereafter. From June 1, 2009 minutes: Mehlhaf moved to keep the $12 minimum for the first 1000 gallons of water and to charge $5.00 per thousand thereafter. Fischer seconded; all ayes. (Rates will be effective September 1, 2009.) On-Off Fees $10, Reconnect during working hours $25, reconnect after working hours $50.
20. Chapter 38, Section 33: Late payment charge $5.
21. Chapter 38, Section 34-D: for terminated utility service – Reconnect fee - $25 during normal working hours and $50 after hours.
22. Chapter 38, Section 40: After hours service calls will be $50.
Councilman Galen Guthmiller seconded the motion. Roll call vote-all ayes. The resolution was declared adopted.
Dated this 4th day of October 2010.
Attest: Peggy Thranum, Finance Officer Signed: Darrell J. Mehlhaf, Mayor
Scott Simonsen introduced the following resolution and moved for its adoption. Ron Diede seconded; roll call-all ayes.
RESOLUTION NO. #9 / 10-04-2010
RESOLUTION GIVING APPROVAL TO CERTAIN SEWER FACILITIES IMPROVEMENTS; GIVING APPROVAL TO THE ISSUANCE AND SALE OF A REVENUE BOND TO FINANCE, DIRECTLY OR INDIRECTLY, THE IMPROVEMENTS TO THE FACILITIES; APPROVING THE FORM OF THE LOAN AGREEMENT AND THE REVENUE BOND AND PLEDGING REVENUES AND COLLATERAL TO SECURE THE PAYMENT OF THE REVENUE BOND; AND CREATING SPECIAL FUNDS AND ACCOUNTS FOR THE ADMINISTRATION OF FUNDS FOR OPERATION OF THE SYSTEM AND RETIREMENT OF THE REVENUE BOND.
WHEREAS, one of the purposes of SDCL Chapter 9-40 (the “Act”) as found and determined by the Legislature is to provide for financing the acquisition, maintenance, operation, extension or improvement of any system or part of any system for the collection, treatment and disposal of sewage and other domestic, commercial and industrial wastes; or any system for the control of floods and drainage; or any combination thereof, together with extensions, additions, and necessary appurtenances; and,
WHEREAS, a municipality is authorized to issue revenue bonds to defray the cost of extensions, additions and improvements to any utility previously owned and is authorized to pledge the net income or revenues from the system in accordance with Section 15 of the Act; and,
WHEREAS, the City of Menno (the “City”) currently operates a sewer system for the collection, treatment and disposal of sewage and other domestic, commercial and industrial wastes; and for the control of floods and drainage and has determined that improvements to the sewer facilities are necessary for the conduct of its governmental programs and qualifies as an improvement, extension or addition to its sewer system; and,
WHEREAS, the City has determined to issue its revenue bonds to finance the improvements to its sewer system for the purpose of collecting, treating and disposing of sewage and other domestic, commercial and industrial wastes (the “System”) and has applied to the South Dakota Conservancy District (the “District”) for funding assistance to finance the improvements;
WHEREAS, the City will adopt rates and charges to be pledged, segregated and used for the payment of the Revenue Bond.
NOW THEREFORE BE IT RESOLVED by the City as follows:
Section 1. Definitions.
The terms when used in this Resolution shall have the following meanings set forth in this section unless the context clearly requires otherwise. All terms used in this Resolution which are not defined herein shall have the meanings assigned to them in the Loan Agreement unless the context clearly otherwise requires.
“Act” means South Dakota Codified Laws Chapter 9-40.
“Loan” means the Loan made by the South Dakota Conservancy District to the City pursuant to the terms of the Loan Agreement and as evidenced by the Revenue Bond.
“Project” means City of Menno Highway 18 Sewer Improvements.
“Revenue Bond” means the revenue bond or bonds issued the date of the Loan Agreement by the City to the South Dakota Conservancy District to evidence the City’s obligation to repay the principal of and pay interest and Administrative Expense Surcharge on the Loan.
“System” means the City’s system of collecting, treating and disposing of sewage and other domestic, commercial and industrial wastes.
Section 2. Declaration of Necessity and Findings.
2.1. Declaration of Necessity.
The City hereby determines and declares it is necessary to construct and finance improvements to its System described as the Project.
2.2. Findings. The City does hereby find as follows:
2.2.1. The City hereby expressly finds that if the Project is not undertaken, the System will pose a health hazard to the City and its inhabitants, and will make the City unable to comply with state and federal law.
2.2.2. Because of the functional interdependence of the various portions of the System, the fact that the System may not lawfully operate unless it complies with State and federal laws, including SDCL Chapter 34A-2, and the federal Clean Water Act, and the nature of the improvements financed, the City hereby finds and determines that the Project will substantially benefit the entire System and all of its users within the meaning of Sections 15 and 17 of the Act.
2.2.3. The City hereby determines and finds that for the purposes of the Act, including, in particular, Sections 15 and 17 of the Act, that only the net income from the system as improved, financed by the Revenue Bond, be pledged for its payment.
Section 3. Authorization of Loan, Pledge of Revenue and Security.
3.1. Authorization of Loan. The City hereby determines and declares it necessary to finance up to $240,000 of the costs of the Project through the issuance of bonds payable from net revenues of the system and other funds secured by the City. The City hereby determines that because the Revenue Bond is issued in connection with a financing agreement described in SDCL 46A-1-49, pursuant to Section 15 of the Act no election is required to issue the Revenue Bond.
3.2. Approval of Loan Agreement. The execution and delivery of the Revenue Obligation Loan Agreement (the “Loan Agreement”), the form of which is on file with the City Finance Officer (the “Finance Officer”) and open to public inspection, between the City as Borrower and the District, is hereby in all respects authorized, approved and confirmed, and the Mayor and Finance Officer are hereby authorized and directed to execute and deliver the Loan Agreement in the form and content attached hereto, with such changes as the Attorney for the City deems appropriate and approves, for and on behalf of the City. The Mayor and Finance Officer are hereby further authorized and directed to implement and perform the covenants and obligations of the City set forth in or required by the Loan Agreement. The Loan Agreement herein referred to and made a part of this Resolution is on file in the office of the Finance Officer and is available for inspection by any interested party.
3.3. Approval of Revenue Bond. The issuance of a revenue bond in a principal amount not to exceed $240,000 as determined according to the Loan Agreement in the form and content set forth in Appendix B attached to the form of Loan Agreement (the “Revenue Bond”) shall be and the same is, in all respects, hereby authorized, approved, and confirmed and the Mayor, Finance Officer, and other appropriate officials shall be and are hereby authorized and directed to execute and seal the Revenue Bond and deliver the Revenue Bond to the District, for and on behalf of the City, upon receipt of the purchase price, and to use the proceeds thereof in the manner set forth in the Loan Agreement. The Mayor and Finance Officer are hereby authorized to approve the final terms of the Revenue Bond and their execution and delivery thereof shall evidence that approval. The Revenue Bond shall be issued under the authority of SDCL Chapter 9-40 and SDCL Chapter 6-8B, and the provisions of the Act are hereby expressly incorporated herein as provided in Section 19 of the Act.
3.4. Pledge of Revenues. The Revenue Bond together with the interest thereon, shall not constitute a charge against the City's general credit or taxing power, but shall be a limited obligation of the City payable solely out of the Project Debt Service Account, which payments, revenues and receipts are hereby and in the Loan Agreement pledged and assigned for the equal and ratable payments of the Revenue Bond and shall be used for no other purpose than to pay the principal of, interest and Administrative Surcharge on the Revenue Bond, except as may be otherwise expressly authorized in the Loan Agreement (including the purpose of securing Additional Bonds issued as permitted by the terms thereof). The City hereby irrevocably pledges to the South Dakota conservancy District all income and revenues of the System, including, without limitation, fees, charges to users of the System, penalties and hook-up fees, sign-up fees, proceeds of business interruption insurance, proceeds from the sale of property constituting part of the System and investment income on all such revenues, but only to the extent that the revenues exceed the amounts necessary to operate and maintain the System, provided there shall be excluded from this pledge the proceeds of any federal or state grant or loan, and the investment income therefrom, to the extent such exclusion is a condition of such grant or loan. The City covenants and agrees to charge rates for all services from the System or establish charges or rates which will be sufficient to provide for the payments upon the Revenue Bond issued hereunder as and when the same become due, and as may be necessary to provide for the operation and maintenance and repairs of the System, and depreciation, and the Rate Ordinance shall be revised from time to time so as to produce these amounts. The City hereby reserves the right to determine on a periodic basis the appropriate allocation of operation and maintenance expenses, depreciation, repair and reserves associated with the facilities financed with the Revenue Bond, provided that such determination of allocable operation and maintenance expenses shall in no event abrogate, abridge or otherwise contravene the covenant of the City set forth in this Section 3 or any other covenant or agreement in the Loan Agreement.
Section 4. Rates, Certification, Segregation and Review.
4.1. Rates and collection There shall be charged rates for each fiscal year which shall ensure that its Net Revenues Available for Debt Service will equal at least 110% of its System Debt Service for such fiscal year.
4.2. Certification. In each fiscal year, or as soon as practicable, and in any event by the date of the delivery of the unaudited financial statements required in the Loan Agreement, the City shall (a) calculate its Net Revenues Available for Debt Service and System Debt Service for the fiscal year, and (b) certify such figures to the South Dakota Conservancy District. The certification described in clause (b) of the preceding sentence shall be substantially in the form of the certificate attached as Appendix E to the Loan Agreement. If the City fails to meet the Rate Covenant set forth in Section 6.4 of the Loan Agreement, the City shall supply the District with quarterly reports on the actions it is taking to correct its coverage deficiency until it delivers an annual coverage certificate showing compliance with the first sentence of this Section.
4.3. Segregation. The Finance Officer shall setup bookkeeping accounts in accordance with South Dakota Legislative Audit guidelines for the segregation of the revenue.
4.4. Periodic review. The sewer rates shall be reviewed from time to time, not less than yearly, and shall be modified in order to produce such funds as are necessary and required to comply with the Loan Agreement’s rate covenant and to pay principal of, interest and Administrative Surcharge on the Revenue Bond when due. The rates may be set by ordinance or resolution in accordance with this Section. The rate ordinance or resolution shall be necessary for the support of government and shall be effective upon passage.
Section 5. Additional Bonds. As permitted by Section 8 and 9 of the Act, Additional Bonds payable from revenues and income of the System may be issued, as permitted in the Loan Agreement, and no provision of this Resolution shall have the effect of restricting the issuance of, or impairing the lien of, such additional parity bonds with respect to the net revenues or income from the extensions, additions or improvements. The City shall have the right to issue additional bonds secured by a lien subordinate to the lien from the Revenue Bond pursuant to the Loan Agreement.
Section 6. Project Fund Accounts. For the purpose of application and proper allocation of net income of the System and to secure the payment of principal, Administrative Surcharge and interest on the Revenue Bond, the following mandatory asset segregations shall be included in the sewer system account of the City and shall be used solely for the following respective purposes until payment in full of the principal of and interest on the Revenue Bond:
6.1. Project Revenue Account. There shall be deposited periodically into the Project Revenue Account the net revenues as defined in Section 17 of the Act derived from the operation of the Project collected pursuant to the Ordinances and resolutions of the City of Menno, South Dakota (collectively the “Rate Ordinance”). Moneys from the Project Revenue Account shall be transferred periodically into separate funds and accounts as provided below.
6.2. Project Debt Service Account. Out of the revenues in the Project Revenue Account, there shall be set aside no later than the 25th day of each month into the account designated Project Debt Service Account, a sum sufficient to provide for the payment as the same become due of the next maturing principal of, interest and Administrative Surcharge on the Revenue Bonds and any reserve determined by the City’s governing body to be necessary. The amount set aside monthly shall be not less than one-third of the total principal, interest, and Administrative Surcharge payable on the following January 15, April 15, July 15, or October 15 and if there shall be any deficiency in the amount previously set aside, then the amount of such deficiency shall be added to the current requirement.
6.3. Depreciation Account. There shall be established a General Depreciation Account. Out of the revenues of the Project Revenue Account there shall be set aside each month into the General Depreciation Account an amount determined by the Common Council to be a proper and adequate amount for repair and depreciation of the Project.
6.4. Project Surplus Account. There shall be established the Project Surplus Account. Revenues remaining in the Project Revenue Account at the end of any fiscal year after all periodic transfers have been made therefrom as above required, shall be deemed to be surplus and shall be transferred to the Project Surplus Account. If at any time there shall exist any default in making any periodic transfer to the Project Debt Service Account, the Common Council shall authorize the City Finance Officer to rectify such default so far as possible by the transfer of money from the Project Surplus Account. If any such default shall exist as to more than one account or fund at any time, then such transfer shall be made in the order such funds and accounts are listed above.
When not required to restore a current deficiency in the Project Debt Service Account, moneys in the Project Surplus Account from time to time may be used for any of the following purposes and not otherwise:
(a) To redeem and prepay the Revenue Bond when and as such Revenue Bond becomes prepayable according to its terms;
(b) To pay for repairs of or for the construction and installation of improvements or additions to the System; and, if the balances in the Project Debt Service Account and the Project Depreciation Account are sufficient to meet all payments required or reasonably anticipated to be made there from prior to the end of the then current fiscal year, then:
(c) To be held as a reserve for redemption and prepayment of any bonds of the System which are not then but will later be prepayable according to their terms; or
(d) To be used for any other authorized municipal purpose designated by the Common Council.
(e) No moneys shall at any time be transferred from the Project Surplus Account or any other account of the Fund to any other fund of the City, nor shall such moneys at any time be loaned to other municipal funds or invested in warrants, special improvements bonds or other obligations payable from other funds, except as provided in this Section.
Section 7. Approval of Paying Agent/Registrar. The Revenue Bond shall be payable at the office of The First National Bank in Sioux Falls, Sioux Falls, South Dakota, hereby designated as paying agent and registrar.
Section 8. Approval of Bond Counsel. Meierhenry Sargent LLP is hereby retained as Bond Counsel with respect to the Revenue Bond.
Section 9. Tax Matters. The Interest on the Revenue Bond shall be excludable from gross income for federal income tax purposes under the Internal Revenue Code of 1986, as amended (“the Code”) and applicable Treasury Regulations (the “Regulations”).
Section 10. Covenants.
The City hereby covenants and agrees with the District and other owners of the Revenue Bond as follows:
10.1. The City will punctually perform all duties with reference to the Project, the System and the Revenue Bond required by the constitution and laws of the State of South Dakota and by this Resolution.
10.2. The City agrees and covenants that it will promptly construct the improvements included in the Project.
10.3. The City covenants and agrees that pursuant to Sections 25 through 27 of the Act, the lawful holders of the Revenue Bond shall have a statutory mortgage lien upon the Project and the extensions, additions and improvements thereto acquired pursuant to the Act, until the payment in full of the principal and interest on the Revenue Bond, and the City agrees not to sell or otherwise dispose of the System, the Project, or any substantial part thereof, except as provided in the Loan Agreement and shall not establish, authorize or grant a franchise for the operation of any other utility supplying like products or services in competition therewith, or permit any person, firm or corporation to compete with it in the distribution of water for municipal, industrial, and domestic purposes within the City.
10.4. The City covenants and agrees with the District and other owners of the Revenue Bond that it will maintain the System in good condition and operate the same in an efficient manner and at a reasonable cost, so long as any portion of the Revenue Bond remains outstanding; that it will maintain insurance on the System for the benefit of the holders of the Revenue Bond in an amount which usually would be carried by private companies in a similar type of business; that it will prepare, keep and file records, statements and accounts as provided for in this Resolution and the Loan Agreement. The Revenue Bond shall refer expressly to this Resolution and the Act and shall state that it is subject to all provisions and limitations thereof pursuant to Section 19 of the Act.
Section 11. Depositories. The Finance Officer shall cause all moneys pertaining to the Funds and Accounts to be deposited as received with one or more banks which are duly qualified public depositories under the provisions of SDCL Ch. 4-6A, in a deposit account or accounts, which shall be maintained separate and apart from all other accounts of the City, so long as any of the Bonds and the interest thereon shall remain unpaid. Any of such moneys not necessary for immediate use may be deposited with such depository banks in savings or time deposits. No money shall at any time be withdrawn from such deposit accounts except for the purposes of the Funds and Accounts as authorized in this Resolution; except that moneys from time to time on hand in the Funds and Accounts may at any time, in the discretion of the City’s governing body, be invested in securities permitted by the provisions of SDCL 4-5-6; provided, however, that the Depreciation Fund may be invested in such securities maturing not later than ten years from the date of the investment. Income received from the deposit or investment of moneys shall be credited to the Fund or Account from whose moneys the deposit was made or the investment was purchased, and handled and accounted for in the same manner as other moneys therein.
Section 12. Consent to Appointment. In the event of mismanagement of the Project, a default in the payment of the principal or interest of the Revenue Bond, or in any other condition thereof materially affecting the lawful holder of the Revenue Bond, or if the revenues of the Project are dissipated, wasted or diverted from their proper application as set forth in the Loan Agreement, Revenue Bond, or herein, the City hereby consents to the appointment of a receiver pursuant to Section 33 of the Act, and agrees that the receiver will have the powers set forth therein, and in Section 34 and 35 of the Act to operate and administer the Project, and charge and collect rates as described therein.
Section 13. Severability.
If any section, paragraph, clause or provision of this Resolution, the Loan Agreement, the Revenue Bond, or any other Loan Document shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this Resolution or said Loan Agreement, Revenue Bond, or any other Loan Document.
Section 14. Authorization of City Officials.
The Mayor, Finance Officer, City Attorney and City officials shall be and they are hereby authorized to execute and deliver for and on behalf of the City any and all other certificates, documents or other papers and to perform such other acts as they may deem necessary or appropriate in order to implement and carry out the actions authorized herein.
Section 15. Effective Date.
This Resolution shall take effect on the 20th day following its publication, unless suspended by a referendum.
Adopted at Menno, South Dakota, this 4th day of October 2010.
(Seal) APPROVED: Darrell J. Mehlhaf, Mayor
Attest: Peggy Thranum, City Finance Officer
Published: October 13, 2010 Effective: November 2, 2010
Diede moved to approve the Design Engineering Agreement with Arens Engineering for services rendered in connection with the US Highway 18 Water/Sanitary Sewer Project. Hoff seconded; roll call-all ayes. This agreement allows us to be reimbursed for the engineering of this project.
Fischer moved to raise the fee for a temporary malt beverage or spiking permit to $25. Guthmiller seconded; all ayes.
Guthmiller moved to pay expenses for Thranum to attend election school in Sioux Falls November 19. Fischer seconded; all ayes.
Guthmiller moved to approve the first reading of Ordinance #2010-2, an ordinance regulating the travel of golf carts in the City of Menno, with the following addition: 10. Golf carts will not be allowed to be operated on the sidewalks of the City. Simonsen seconded; roll call-all ayes. A city issued sticker costing $10 will need to be purchased January 1, 2011 and displayed on the front of the cart.
Fischer received a complaint concerning barking dogs. This would fall under the nuisance ordinance. A complaint will need to be filed with the police chief allowing him to act on it.
For Your Information: The packet from the September MADC meeting was distributed to the council.
Diede moved to adjourn at 9:17 p.m. until Monday, November 1, 2010 at 7:30 p.m. Kotalik seconded; all ayes.
Peggy Thranum, Finance Officer Darrell J. Mehlhaf, Mayor
Published once at the approximate cost of $_________.