MINUTES OF CITY COUNCIL PROCEEDINGS
MENNO, SOUTH DAKOTA
Mayor Darrell Mehlhaf called the city council to order at 7:30 p.m. on December 5, 2011 in the finance office at city hall. Roll Call: Darrell Mehlhaf, Ronald Diede, Jerry Fischer, Galen Guthmiller, Jerome Hoff, Jerome Kotalik and Scott Simonsen. Finance Officer Peggy Thranum, Superintendent Fred Sayler, City Engineer Vernon Arens, John Clem from District III, Aaron Matthaei and Erik Kaufman were also present.
Fischer moved to approve the agenda with the following additions: CDBG Authorizing Resolution and Certifying Officer. Guthmiller seconded; all ayes.
REGULAR MEETING ITEMS: Hoff moved to approve the minutes of the November 7 regular meeting. Simonsen seconded; all ayes.
Kotalik moved to approve the November finance report. Fischer seconded; all ayes.
FINANCE REPORT:
|
|
General |
Water |
Sewer |
Perpetual Care |
Totals |
|
Checking Balance 10/31/11 |
373,590.49 |
-1,703.57 |
75,034.23 |
1,321.95 |
448,243.10 |
|
Warrants: |
(87,283.99) |
(9,503.70) |
(3,711.85) |
0.00 |
(100,499.54) |
|
Receipts: |
88,601.63 |
40,320.12 |
7,390.41 |
0.00 |
136,312.16 |
|
Interest: |
14.75 |
1.14 |
3.08 |
|
18.97 |
|
Month End Checking Balance 11/30/11 |
374,922.88 |
29,113.99 |
78,715.87 |
1,321.95 |
484,074.69 |
|
Water Deposits Held |
|
(4,950.00) |
|
Restricted |
(4,950.00) |
|
Water Reserve $300/mo (1st 11/2010) |
(3,900.00) |
|
|
(3,900.00) |
|
|
General Purpose CD |
50,000.00 |
|
|
Account |
50,000.00 |
|
Designated Purpose CD's |
42,812.60 |
30,172.35 |
36,220.59 |
53,327.00 |
162,532.54 |
|
Total Cash Assets: |
467,735.48 |
50,436.34 |
114,936.46 |
54,648.95 |
687,757.23 |
|
Profit or (Loss) for the month |
1,332.39 |
30,817.56 |
3,681.64 |
0.00 |
35,831.59 |
Diede moved to approve the warrants. Hoff seconded; all ayes.
WARRANTS APPROVED: Payroll: Council 601.96; Mayor 267.95; Finance 1018.56; Building 130.18; Police 2820.14; Streets 2503.16; Garbage 817.55; Cemetery 126.39; Ambulance 417.38; Library 270.89; Development 151.79; Water 1082.46; Sewer 1082.43; Group Insurance: Wellmark BCBS, 2641.44; Principal Life 819.06; Avesis, vision 47.98; AFLAC 178.09; EFTPS, payroll taxes 2831.25-Galen Heckenlaible 08-11 442.12; SDRS, retirement Galen Heckenlaible 1/2011-10/2011 1463.42; SDRS, retirement 1619.98. Professional Services: Rocky Zeeb’s Garbage Service, 288 residential 3600.00. Utilities: Golden West, Phone 342.07; NorthWestern Energy, electricity 1343.57; Verizon Wireless, police cell phone 36.92; Kotalik Construction, east side drainage 18270.44; Card Member Services, conference room 218.00; Galen Heckenlaible, OT 08-11 police 1488.94, RU Site 682.11 Streets 233.58; SD State Treasurer, sales tax Oct 260.31-Nov 242.76; BDS, software support 869.00; Barnes & Noble, library books 212.98; Bertsch Law Office, legal fees 463.20; BPI, office supplies 57.88; B-Y Water, 1.096 million gallons 3968.00; Commercial Asphalt, 174.23T asphalt 14484.33; Dakota Contracting, curb & gutter 9360.54; Deposit Refund, Wanda Pond 100.00; Dept of Revenue; sewer samples 232.00; Kaiser Appliance, saw chain 24.99; Klaudt Service, fuel-R&M 1792.97; Luikens Repair, sweeper R&M 479.17; Menno Lumber, supplies 157.85; Mettler Implement, east side drainage 18.09; Petty Cash-General, postage 62.69; Reimbursement, Josh Wilcoxon, sign 300.00; Scotland Redi-Mix, concrete 117.50; SDWWA, dues 20.00; SDPI, publishing 157.52; Ulmer Farm Service, culverts 720.70; Walter Welding, water R&M 57.00; Western Office, police ink cartridges 38.58; DSG, lift station R&M 718.51.
SCHEDULED BUSINESS: The mayor opened the Community Development and Housing Needs Assessment public hearing as required by the Community Development Block Grant (CDBG) program. The mayor proceeded to explain that the City of Menno is proposing to make sewer system upgrades, primarily along Park Street and north of US Highway 18. John Clem, District III representative, explained that the State of South Dakota has administered the federally funded Community Development Block Grant Small Cities program since 1982. Only cities and counties with populations of fewer than 50,000 can participate in the Small Cities Program. The proposed project was explained and discussed with those in attendance. The city intends to request $515,000 from the CDBG program for construction activities. Other financing options that could be available to undertake the proposed projects were also discussed. Community development needs identified include the following: Continuing to upgrade the city’s water and wastewater system; continuing support of economic development; maintaining adequate transportation infrastructure and expanding housing opportunities. There being no further comments, the hearing was declared closed at 8:03 p.m. Clem left the meeting.
Hoff moved to approve the following resolution. Guthmiller seconded; roll call-all ayes.
AUTHORIZING RESOLUTION #09 – 12/5/2011
WHEREAS, the City of Menno has identified the need to upgrade the city’s wastewater infrastructure by upgrading sewer mains along Park Street and various other streets in the community; and
WHEREAS, the City of Menno proposes to apply for Community Development Block Grant funding assistance in order to meet local needs; and
WHEREAS, the City of Menno is eligible for federal assistance for the proposed project; and
WHEREAS, with the submission of this CDBG application, the City of Menno assures and certifies that all CDBG program requirements will be fulfilled; and
WHEREAS, the City of Menno has published the required public notice for this Community Development Block Grant application.
THEREFORE, BE IT RESOLVED, that the City of Menno duly authorizes the submission of this CDBG application requesting $515,000 to assist in making the wastewater improvements identified above; and
BE IT FURTHER RESOLVED, that the Mayor be authorized to execute the CDBG application for the City.
Dated this 5th day of December 2011.
ATTEST: Peggy Thranum, City Finance Officer SIGNED: Darrell J. Mehlhaf, Mayor
S E A L
Fischer moved to approve the following resolution. Diede seconded; roll call-all ayes.
RESOLUTION # 10 – 12/05/2011
DESIGNATING CDBG PROJECT CERTIFYING OFFICER
AND
ENVIRONMENTAL CERTIFYING OFFICER
WHEREAS, the City of Menno is applying for Community Development Block Grant funding from the U.S. Department of Housing and Urban Development as administered by the State of South Dakota, and;
WHEREAS, the City of Menno is required to designate a certifying officer for the purpose of signing required documents pertaining to this grant.
NOW THEREFORE, BE IT RESOLVED, that the Mayor be hereby designated as the City’s certifying officer for the purpose of signing correspondence, pay requests, and other required documents.
AND BE IT FURTHER RESOLVED, that the Mayor be hereby designated as the City’s environmental certifying officer for all environmental review procedures associated with this CDBG project.
DATED this 5th day of December 2011. BY: Darrell J. Mehlhaf, Mayor
(S E A L)
ATTEST: Peggy Thranum, City Finance Officer
No action was taken on the SRF loan application. The council prefers to wait until we hear how much we were awarded for the CDBG grant; then we will apply for the SRF loan.
Fischer moved to charge Schelske Acreage the minimum per month due to the city’s equipment failure. Diede seconded; all ayes.
Arens stated we will have a final change order for the highway project, approximately $300 sewer and $2000 water. He will have the bill ready for the year end meeting. Arens left at 8:27 p.m.
The MADC lot on High Street was seeded today. Maintenance is to check to see if there is hand seeding that still needs to be done.
The engineers estimate for the east and west side drainage projects was $269,000. The expenses to date are $73,880.72, a savings of $195,119.28 by doing it ourselves.
OLD BUSINESS: “To Do List” Fix collapsed sewer on Fifth Street. The mayor instructed maintenance to do an inventory of all water meters in the city so we know what we need before we go to bid.
NEW BUSINESS: Hoff moved to approve the following resolution. Diede seconded; roll call-all ayes.
RESOLUTION NO. 07 – 12/05/2011
RESOLUTION GIVING APPROVAL TO CERTAIN DRINKING WATER 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 system of waterworks for the purpose of providing water and water supply for municipal, industrial, and domestic purposes; 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 system of waterworks for the purpose of providing water and water supply for municipal, industrial, and domestic purposes and has determined that improvements to the waterworks are necessary for the conduct of its governmental programs and qualifies as an improvement, extension or addition to its waterworks system; and,
WHEREAS, the City has determined to issue its revenue bonds to finance the improvements to its waterworks system (the “System”) and has applied to the South Dakota Conservancy District (the “District”) for a Drinking Water State Revolving Fund Loan 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 the City of Menno water meter replacement project.
“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 waterworks for the purpose of providing water and water supply for municipal, industrial, and domestic purposes.
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-3A, and the federal Safe Drinking 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 $157,000 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, are 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 $157,000 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 set up bookkeeping accounts in accordance with South Dakota Legislative Audit guidelines for the segregation of the revenue.
4.4. Periodic review. The water 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 Sections 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 water 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 5th day of December 2011.
APPROVED: CITY OF MENNO, SOUTH DAKOTA
(Seal) Darrel J. Mehlhaf, Mayor
ATTEST: Peggy Thranum, City Finance Officer
Published: December 14, 2011 Effective: January 3, 2012
Fischer moved to approve the following resolution. Guthmiller seconded; roll call-all ayes.
Resolution NO. 8 – 12-05-2011
A resolution providing for a Surcharge for Improvements to WATER System, for payment of A Borrower bond and yearly review of THE SURCHARGE
1. Surcharge for Bond Issue. There shall be charged a monthly surcharge for the services provided by the improvement financed by the DW-01 Conservancy District Loan. The surcharge for the loan shall be segregated from other revenues of the city and shall be used for the payment of the borrower bond DW-01 (the “Borrower Bond”). Provided that such surcharge shall create net income, remaining from time to time after first paying all reasonable and current expenses of maintenance, repairs, replacements and operation, sufficient to fund interest, reserve and debt service fund annual requirements.
2. Rates and collection. The City does hereby establish the special charge or surcharge payable by each customer of its system who receives or benefits from the services of the project financed with the Borrower Bond. Such charge or surcharge shall be set at a level which, assuming a 10% delinquency rate, will produce income at the times and in amounts sufficient to pay when due the principal of and interest on the Borrower Bond and the administrative expense surcharges and all other payments as may be required under the loan agreements and Borrower Bond. The collection of the Surcharge will start on a date prior to the Initial Loan Amortization Date, as defined in the Loan Agreement, that will allow the City to collect funds sufficient to pay the accrued interest on the Initial Loan Amortization Date. The City Council shall determine said date with consultation with City personnel.
3. Borrower Bonds. The following initial surcharge shall be applicable to all customers served until adjusted under paragraph 5:
Borrower Bond DW-01 Surcharge: $3.50 per user beginning July 1, 2012.
The surcharge shall remain in effect until such time as the Borrower Bond is paid in full. The surcharge shall be collected at the same time as other charges of the system. The surcharge is found to be equitable for the services provided by the improvements.
4. Segregation. The debt service surcharge shall be segregated from other income of the system in a separate book keeping account and is pledged to the South Dakota Conservancy District for the payment of the loan payments on the Borrower Bond.
5. Yearly review. The amount of the surcharge shall be reviewed from year to year and may be modified in order to provide such funds as are set forth herein. The charges shall be reviewed yearly by the City Council and administratively adjusted, upwards or downwards, to such amounts as may be necessary to pay principal, interest, administrative surcharge and other charges as may become due and owing under the loan agreement or Borrower Bond.
6. Billing and Accounting. The surcharge shall be included in the monthly user bill. Nothing contained herein requires the surcharge be indicated on the billing, however, the surcharge segregation shall be indicated on the books of the City.
7. Automatic Repeal. The surcharge for the Borrower Bond shall be automatically repealed when the Borrower Bond is paid in full.
8. Partial Invalidity. If any one or more of the provisions of this Resolution shall be held invalid, illegal, or unenforceable in any respect, by final decree of any court of lawful jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other provision hereof.
Dated: December 5, 2011
ATTEST: Peggy Thranum, Finance Officer Darrell J. Mehlhaf, Mayor
Diede moved to hold a special meeting December 28 at 6 p.m. to conclude business for 2011. Hoff seconded; all ayes.
Simonsen moved to hold the next regular council meeting Wednesday, January 4 at 7 p.m. Kotalik seconded; all ayes.
.
Hoff moved to table a decision on the request for funds by the fire department to purchase a different rescue truck to the January meeting. Guthmiller seconded; all ayes.
The council reviewed personnel policies 1-7. Changes will be made as suggested. When the complete policy is finished it will be presented to the council for adoption.
For Your Information: A copy of the evaluation DENR did on our drinking water system October 26 was given to the council for their information.
The November MADC packet and SEFP report were distributed to the council.
We have received information from Verizon Wireless indicating they will be erecting a cell tower and equipment building east of the city limits
Fischer moved to enter executive session at 9:43 p.m. to discuss personnel. Diede seconded; all ayes.
The mayor declared us out of executive session at 10 p.m.
Guthmiller moved the council has determined that by South Dakota law, regular part-time employee Galen Heckenlaible would be eligible to be a contributing member of South Dakota Retirement as of January 1, 2011. Simonsen seconded; all ayes.
Diede moved to adjourn at 10:02 p.m. until Wednesday, January 4, 2012 at 7:00 p.m. Kotalik seconded; all ayes
ATTEST: CITY OF MENNO, SOUTH DAKOTA
Peggy Thranum, Finance Officer Darrell J. Mehlhaf, Mayor
Published once at the approximate cost of $________.